Document:

Exhibit 4.1

 

EXECUTION VERSION

 

AMENDED AND RESTATED

REGISTRATION RIGHTS AGREEMENT

 

THIS AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Agreement”), effective as of February 27, 2017, is made and entered into by and among Hennessy Capital Acquisition Corp. II, a Delaware corporation (the “Company”), Hennessy Capital Partners II LLC, a Delaware limited liability company (the “Sponsor”), each of the undersigned parties that holds Founder Shares (as defined below) and is identified as an “Other Pre-IPO Holder” on the signature pages hereto (collectively, with the Sponsor, the “Pre-IPO Holders”), the Preferred Investors (as defined below), the Backstop Investors (as defined below), Don R. Daseke, The Walden Group, Inc., a Delaware corporation (“Walden Group”), Daniel Wirkkala and each of the former holders of shares of Daseke Series B Convertible Preferred Stock, par value $0.01 per share, that is a signatory hereto and identified as a “Daseke Former Series B Holder” on the signature pages hereto (collectively, the “Daseke Former Series B Holders”) (each of the foregoing parties (other than the Company) and any person or entity who hereafter becomes a party to this Agreement pursuant to Section 5.2 of this Agreement, a “Holder” and collectively, the “Holders”).

 

RECITALS

 

WHEREAS, each of the Company and the Pre-IPO Holders is a party to, and hereby consents to, this amendment and restatement of that certain Registration Rights Agreement, dated July 22, 2015 (the “Original Registration Rights Agreement”), pursuant to which the Company granted the Pre-IPO Holders certain registration rights with respect to certain securities of the Company, as set forth therein;

 

WHEREAS, the Company and the Sponsor previously entered into that certain Securities Purchase Agreement (the “Founder Shares Purchase Agreement”), dated as of April 29, 2015, pursuant to which the Sponsor purchased an aggregate of 5,031,250 shares (41,273 of which were subsequently forfeited) of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), which were issued in a private placement prior to the closing of the Company’s IPO (as defined below) (such pre-IPO shares being referred to herein as the “Founder Shares”);

 

WHEREAS, the Sponsor and certain of the officers, directors and advisors of the Company entered into that certain Securities Assignment Agreement, dated as of May 20, 2015, pursuant to which the Sponsor transferred an aggregate of 440,000 Founder Shares to such persons for an aggregate purchase price of $2,200.00;

 

WHEREAS, on May 11, 2015, the Company and the Sponsor entered into that certain Sponsor Warrants Purchase Agreement (the “Private Placement Warrants Purchase Agreement”), pursuant to which the Sponsor purchased 15,080,756 warrants (the “Private Placement Warrants”), in a private placement transaction occurring simultaneously with the closing of the Company’s initial public offering (the “IPO”);

 

WHEREAS, the Company, HCAC Merger Sub, Inc., a wholly-owned subsidiary of the Company (“Merger Sub”), Daseke, Inc. (“Daseke”), and Don R. Daseke, solely in his capacity

 

 

as the stockholders’ representative, have entered into that certain Agreement and Plan of Merger (as may be amended from time to time, the “Merger Agreement”), dated as of December 22, 2016, pursuant to which, on the Effective Date (as defined below), Merger Sub will merge with and into Daseke, with Daseke surviving the merger as a direct wholly-owned subsidiary of the Company (the “Daseke Merger”);

 

WHEREAS, pursuant to the Merger Agreement, holders of Daseke common stock that is outstanding immediately prior to the Effective Date (“Daseke Former Common Holders”) shall be entitled to receive shares of Common Stock as consideration payable upon closing of the Daseke Merger (such shares payable upon closing, together with the new shares issuable by the Company pursuant to Founder Share Forfeiture Agreement (as defined below), being referred to hereafter as the “Daseke Merger Shares”);

 

WHEREAS, on December 22, 2016, the Company and the Sponsor entered into that certain letter agreement (the “Founder Share Forfeiture Agreement”), pursuant to which the Sponsor agreed that, immediately prior to (and contingent upon) the consummation of the Daseke Merger, the Sponsor shall transfer to the Company for forfeiture a number of Founder Shares equal to 2,274,988 less 50% of any “Utilization Fee Shares” that may be issued to the Backstop Investors pursuant to the Backstop Subscription Agreements (each as defined below), and on the Effective Date, the Company shall issue an equivalent number of new shares of Common Stock to the Daseke Former Common Holders as part of the Daseke Merger Shares;

 

WHEREAS, the Company and each of the Preferred Investors have entered into those certain Subscription Agreements, each dated as of December 22, 2016 (the “Preferred Subscription Agreements”), pursuant to which, on the Effective Date, the Company will issue and sell to the Preferred Investors an aggregate of 650,000 shares (at a face value of $100.00 per share) of the Company’s 7.625% Series A Convertible Preferred Stock, par value $0.0001 per share (the “Preferred Stock”), each share of Preferred Stock being convertible into shares of Common Stock (the “Underlying Common Shares”) on the terms provided in the Certificate of Designations, Preferences, Rights and Limitations of the Preferred Stock;

 

WHEREAS, the Company and each of the Backstop Investors have entered into those certain Backstop and Subscription Agreements, each dated as of December 22, 2016 (the “Backstop Subscription Agreements” and together with the Preferred Subscription Agreements, the “Investor Agreements”), pursuant to which, on the Effective Date, the Company will issue to the Backstop Investors an aggregate of 391,892 shares of Common Stock as “Utilization Fee Shares” (as such term is used in the Backstop Subscription Agreements) and may issue to the Backstop Investors additional shares of Common Stock in a private placement (together with such Utilization Fee Shares, the “Backstop Shares”); and

 

WHEREAS, the Company and the Holders desire to enter into this Agreement in connection with the closing of the transactions contemplated by the Merger Agreement and the Investor Agreements, as applicable, to amend and restate the Original Registration Rights Agreement to provide certain registration rights with respect to certain securities of the Company, on the terms and conditions set forth in this Agreement.

 

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NOW, THEREFORE, in consideration of the representations, covenants and agreements contained herein, and certain other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

ARTICLE I
  DEFINITIONS

 

1.1                               Definitions.  The terms defined in this Article I shall, for all purposes of this Agreement, have the respective meanings set forth below:

 

“Adverse Disclosure” shall mean any public disclosure of material non-public information, which disclosure, in the good faith judgment of the Chief Executive Officer or principal financial officer of the Company, after consultation with an outside recognized securities law counsel to the Company, (a) would be required to be made in any Registration Statement or Prospectus in order for the applicable Registration Statement or Prospectus not to contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein (in the case of any prospectus and any preliminary prospectus, in the light of the circumstances under which they were made) not misleading, (b) would not be required to be made at such time if the Registration Statement were not being filed, and (c) the Company has a bona fide business purpose for not making such information public.

 

“Affiliate” shall mean when used with reference to any Person, any other Person directly or indirectly, through one or more intermediaries, controlling, controlled by or under common control with such first Person and, when used with reference to any natural person, shall also include such person’s spouse, parents and descendants (whether by blood or adoption, and including stepchildren) and the spouses of such persons.

 

“Agreement” shall have the meaning given in the Preamble.

 

“Backstop Investors” shall mean D. E. Shaw Valence Portfolios LLC, Coliseum Capital Partners, L.P., Coliseum Capital Partners II, L.P., Blackwell Partners, LLC, Series A, Pine River Master Fund Ltd. and Sunrise Partners Limited Partnership.

 

“Backstop Shares” shall have the meaning given in the Recitals hereto.

 

“Backstop Subscription Agreements” shall have the meaning given in the Recitals hereto.

 

“Blackout Period” shall have the meaning given in Section 2.3.

 

“Board” shall mean the Board of Directors of the Company.

 

“Commission” shall mean the Securities and Exchange Commission.

 

“Common Stock” shall have the meaning given in the Recitals hereto.

 

“Company” shall have the meaning given in the Preamble.

 

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“Daseke Demanding Holders” shall mean each of Don R. Daseke, Walden Group, Joseph Kevin Jordan, The Joy and Kevin Jordan Revocable Trust, The Jordan Family Irrevocable Trust, Daseke Trucking Preferred, LP, Gekabi Capital Management LP, VCA Daseke LP and Daniel Wirkkala.

 

“Daseke Former Common Holders” shall have the meaning given in the Recitals hereto.

 

“Daseke Former Series B Holders” shall have the meaning given in the Preamble.

 

“Daseke Merger” shall have the meaning given in the Recitals hereto.

 

“Daseke Merger Shares” shall mean the shares of Common Stock issued to existing Daseke stockholders pursuant to the Daseke Merger.

 

“Daseke Registrable Holders” shall mean the Daseke Demanding Holders and the Daseke Former Series B Holders.

 

“Demand Registration” shall have the meaning given in subsection 2.1.4.

 

“Demand Registration Requesting Holder” shall have the meaning given in subsection 2.1.4.

 

“Demand Right Holders” shall mean the Pre-IPO Demanding Holders, the PIPE Demanding Holders and the Daseke Demanding Holders.

 

“Demanding Holder” shall mean a Demand Right Holder who has made a written demand pursuant to subsection 2.1.3, 2.1.4 or 2.1.6, as applicable.

 

“Effective Date” shall mean the date the Company consummates the Daseke Merger.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as it may be amended from time to time.

 

“Form S-1” shall have the meaning given in subsection 2.1.4.

 

“Form S-3” shall have the meaning given in subsection 2.1.1.

 

“Founder Shares” shall have the meaning given in the Recitals hereto.

 

“Founder Shares Forfeiture Agreement” shall have the meaning given in the Recitals hereto.

 

“Founder Shares Purchase Agreement” shall have the meaning given in the Recitals hereto.

 

“Holders” shall have the meaning given in the Preamble.

 

“IPO” shall have the meaning given in the Recitals hereto.

 

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“Investor Agreements” shall have the meaning given in the Recitals hereto.

 

“Lock-Up Agreements” shall mean those certain Lock-Up Agreements, each effective as of the Effective Date, by and between certain Daseke Former Common Holders, on the one hand, the signatories thereto and the Company, on the other hand, entered into pursuant to the Merger Agreement.

 

“Lock-up Period” shall mean the applicable lock-up periods for the Holders set forth in the Investor Agreements, the Lock-Up Agreements and the Founder Shares Purchase Agreement.

 

“Material Adverse Change” shall mean (a) any general suspension of trading in, or limitation on prices for, securities on any national securities exchange or in the over-the-counter market in the United States; (b) the declaration of a banking moratorium or any suspension of payments in respect of banks in the United States; (c) a material outbreak or escalation of armed hostilities or other international or national calamity involving the United States or the declaration by the United States of a national emergency or war or a change in national or international financial, political or economic conditions; or (d) any event, change, circumstance or effect that is or is reasonably likely to be materially adverse to the business, properties, assets, liabilities, condition (financial or otherwise), operations, results of operations or prospects of the Company and its subsidiaries taken as a whole.

 

“Maximum Number of Securities” shall have the meaning given in subsection 2.1.4.

 

“Merger Agreement” shall have the meaning given in the Recitals hereto.

 

“Merger Sub” shall have the meaning given in the Recitals hereto.

 

“Misstatement” shall mean an untrue statement of a material fact or an omission to state a material fact required to be stated in a Registration Statement or Prospectus or necessary to make the statements in a Registration Statement or Prospectus in the light of the circumstances under which they were made not misleading.

 

“Original Registration Rights Agreement” shall have the meaning given in the Recitals hereto.

 

“Permitted Transferee” shall mean a person or entity to whom a Holder of Registrable Securities is permitted to transfer such Registrable Securities prior to the expiration of the applicable Lock-up Period under the Investor Agreements, the Lock-Up Agreements, the Founder Shares Purchase Agreement and any letter agreement with the Company, and in the case of the Sponsor, under the Sponsor’s limited liability company agreement, in each case in accordance with and without violating such agreement; provided, however, a person shall not be a Permitted Transferee under this Agreement unless and until such person has entered into a written agreement agreeing to be bound by the transfer restrictions set forth in the Investor Agreements, the Lock-Up Agreements, the Founder Shares Purchase Agreement and, if applicable, such other agreements.

 

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“Person” shall mean a company, a corporation, an association, a partnership, a limited liability company, an organization, a joint venture, a trust or other legal entity, an individual, a government or political subdivision thereof or a governmental agency.

 

“Piggyback Registration” shall have the meaning given in subsection 2.2.1.

 

“PIPE Demanding Holder” shall mean each PIPE Holder initiating a demand pursuant to subsection 2.1.3, 2.1.4 or 2.1.6, as applicable.

 

“PIPE Holder” shall mean the Preferred Investors and the Backstop Investors or any of their respective Affiliates or their respective Permitted Transferees, in each case who are Holders of Registrable Securities.

 

“Preferred Investors” shall mean Blackwell Partners, LLC, Series A, Coliseum Capital Partners, L.P., Coliseum Capital Partners II, L.P., the Osterweis Strategic Investment Fund and the Osterweis Strategic Income Fund.

 

“Preferred Stock” shall have the meaning given in the Recitals hereto.

 

“Preferred Subscription Agreements” shall have the meaning given in the Recitals hereto.

 

“Pre-IPO Demanding Holders” shall mean the Pre-IPO Holders (or any of their respective Affiliates or their respective Permitted Transferees, in each case who are Holders of Registrable Securities) initiating a demand pursuant to subsection 2.1.3, 2.1.4 or 2.1.6, as applicable, and representing at least a majority in interest of the then outstanding number of Registrable Securities held by the Pre-IPO Holders in the aggregate.

 

“Pre-IPO Holders” shall have the meaning given in the Preamble.

 

“Private Placement Lock-up Period” shall mean, with respect to Private Placement Warrants that are held by the initial purchasers of such Private Placement Warrants or their Permitted Transferees, and any of the Common Stock issued or issuable upon the exercise or conversion of the Private Placement Warrants and that are held by the initial purchasers of the Private Placement Warrants or their Permitted Transferees, the period ending 30 days after the completion of the Company’s initial business combination except in each case (a) to the Company’s officers or directors, any Affiliates or family members of any of the Company’s officers or directors, any members of the Sponsor, or any Affiliates of such person or the Sponsor, (b) in the case of an individual, by gift to a member of one of the members of the individual’s immediate family or to a trust, the beneficiary of which is a member of one of the individual’s immediate family, an Affiliate of such person or to a charitable organization; (c) in the case of an individual, by virtue of laws of descent and distribution upon death of the individual; (d) in the case of an individual, pursuant to a qualified domestic relations order; (e) by private sales or transfers made in connection with the consummation of a business combination at prices no greater than the price at which the securities were originally purchased; (f) in the event of the Company’s liquidation prior to its completion of its initial business combination; (g) by virtue of the laws of Delaware or the Sponsor’s limited liability company agreement upon dissolution of the Sponsor; or (h) in the event of the Company’s completion of a

 

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liquidation, merger, stock exchange or other similar transaction which results in all of its stockholders having the right to exchange their shares of common stock for cash, securities or other property subsequent to the Company’s completion of its initial business combination; provided, however, that in the case of clauses (a) through (e) these permitted transferees must enter into a written agreement agreeing to be bound by these transfer restrictions.

 

“Private Placement Warrants” shall have the meaning given in the Recitals hereto.

 

“Private Placement Warrants Purchase Agreement” shall have the meaning given in the Recitals hereto.

 

“Pro Rata” shall have the meaning given in subsection 2.1.7.

 

“Prospectus” shall mean the prospectus included in any Registration Statement (and the Shelf Prospectus in the case of the Shelf Registration Statement), as supplemented by any and all prospectus supplements and as amended by any and all post-effective amendments and including all material incorporated by reference in such prospectus.

 

“Registrable Security” shall mean (a) the Daseke Merger Shares, (b) the Founder Shares, (c) the Private Placement Warrants (including any shares of the Common Stock issued or issuable upon the exercise of any such Private Placement Warrants), (d) shares of Preferred Stock issued pursuant to the Preferred Subscription Agreements, (e) the Underlying Common Shares, (f) the Backstop Shares, (g) any outstanding shares of the Common Stock or any other equity security (including the shares of the Common Stock issued or issuable upon the exercise or exchange of any other equity security) of the Company held by a Holder as of the date of this Agreement, and (h) any other equity security of the Company issued or issuable with respect to any such share of the Common Stock by way of a stock dividend or stock split or in connection with a combination of shares, distribution, recapitalization, merger, consolidation, reorganization or other similar event; provided, however, that, as to any particular Registrable Security, such securities shall cease to be Registrable Securities when: (i) a Registration Statement with respect to the sale of such securities shall have become effective under the Securities Act and such securities shall have been sold, transferred, disposed of or exchanged in accordance with such Registration Statement; (ii) such securities shall have been otherwise transferred, new certificates for such securities not bearing a legend restricting further transfer shall have been delivered by the Company and subsequent public distribution of such securities shall not require registration under the Securities Act; (iii) such securities shall have ceased to be outstanding; (iv) such securities may be sold without registration pursuant to Rule 144 promulgated under the Securities Act (but with no volume or other restrictions or limitations); or (v) such securities have been sold to, or through, a broker, dealer or underwriter in a public distribution or other public securities transaction.

 

“Registration” shall mean a registration effected by preparing and filing a registration statement or similar document in compliance with the requirements of the Securities Act, and the applicable rules and regulations promulgated thereunder, and such registration statement becoming effective.

 

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“Registration Expenses” shall mean the out-of-pocket expenses of a Registration, including, without limitation, the following:

 

(a)                                 all registration and filing fees (including fees with respect to filings required to be made with the Financial Industry Regulatory Authority) and any securities exchange on which the Common Stock is then listed;

 

(b)                                 fees and expenses of compliance with securities or blue sky laws (including reasonable fees and disbursements of counsel for the Underwriters in connection with blue sky qualifications of Registrable Securities);

 

(c)                                  internal fees and expenses of the Company;

 

(d)                                 printing, messenger, telephone and delivery expenses;

 

(e)                                  reasonable fees and disbursements of counsel for the Company;

 

(f)                                   reasonable fees and disbursements of all independent registered public accountants of the Company incurred specifically in connection with such Registration; and

 

(g)                                  reasonable fees and expenses of one (1) legal counsel selected by the majority-in-interest of the Holders in connection with each Registration to represent the interests of the Holders, except, in connection with a Demand Registration, legal counsel shall be selected by the majority-in-interest of the Demanding Holders initiating the Demand Registration.

 

“Registration Statement” shall mean any registration statement (including the Shelf Registration Statement) that covers the Registrable Securities pursuant to the provisions of this Agreement, including the Prospectus included in such registration statement (and the Shelf Prospectus in the case of the Shelf Registration Statement), amendments (including post-effective amendments) and supplements to such registration statement, and all exhibits to and all material incorporated by reference in such registration statement.

 

“Requesting Holder” shall mean the Demand Registration Requesting Holders and the Underwritten Shelf Offering Requesting Holders, as applicable.

 

“SEC Comments” shall have the meaning given in subsection 2.1.1.

 

“Securities Act” shall mean the Securities Act of 1933, as amended from time to time.

 

“Shelf Prospectus” shall have the meaning given in subsection 2.1.1.

 

“Shelf Registration Statement” shall have the meaning given in subsection 2.1.1.

 

“Shelf Registration Statement Effective Period” shall have the meaning given in subsection 2.1.1.

 

“Shelf Takedown” shall have the meaning given in subsection 2.1.2.

 

“Shelf Takedown Notice” shall have the meaning given in subsection 2.1.2.

 

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“Sponsor” shall have the meaning given in the Preamble.

 

“Underlying Common Shares” shall have the meaning given in the Recitals hereto.

 

“Underwriter” shall mean a securities dealer who purchases any Registrable Securities as principal in an Underwritten Offering and not as part of such dealer’s market-making activities.

 

“Underwritten Offering” shall mean a Registration in which securities of the Company are sold to an Underwriter in a firm commitment underwriting for distribution to the public.

 

“Underwritten Shelf Offering Requesting Holder” shall have the meaning given in subsection 2.1.3.

 

“Walden Group” shall have the meaning given in the Preamble.

 

ARTICLE II
  REGISTRATIONS

 

2.1                               Shelf Registration Statement; Demand Registration.

 

2.1.1                     Shelf Registration Statement.  As soon as reasonably practicable, but in no event later than forty-five (45) days following the Effective Date, the Company shall (a) file with the Commission a shelf registration statement (the “Shelf Registration Statement”) under the Securities Act on Form S-3 (or any successor form or similar short-form registration involving a similar amount of disclosure constituting a “shelf” registration statement for a public offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act) (“Form S-3”) that covers all Registrable Securities then held by the Holders for a public offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act (or any successor rule thereto) and includes a Prospectus (the “Shelf Prospectus”) that permits the disposition of all Registrable Securities subject to the Shelf Registration Statement and (b) use its reasonable best efforts to cause such Shelf Registration Statement to become effective as promptly thereafter as practicable, but in any event not later than one hundred twenty (120) days after the Effective Date if the Company receives comments to the Shelf Registration Statement from the staff of the Commission (“SEC Comments”) or ninety (90) days after the Effective Date if the Company does not receive SEC Comments.  The Company shall use its reasonable best efforts to prepare and file with the Commission such amendments, post-effective amendments and supplements (including prospectus supplements) to such Shelf Registration Statement and the Shelf Prospectus as may be necessary to keep such Shelf Registration Statement effective and to comply with the provisions of the Securities Act to, subject to Section 3.4, permit the disposition of all Registrable Securities subject thereto during the period beginning on the date the staff of the Commission declares the Shelf Registration Statement effective and ending on the earliest to occur of (i) 36 months after the effective date of such Registration Statement, (ii) the date on which all the Registrable Securities subject thereto have been sold or distributed pursuant to such Shelf Registration Statement or (iii) the date when all Registrable Securities covered by the Shelf Registration Statement first become eligible for sale pursuant to Rule 144 under the Securities Act without volume limitation or other restrictions on transfer thereunder (such period, the “Shelf Registration Statement Effective Period”).

 

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2.1.2       Request for Shelf Takedown.  Subject to the provisions of subsection 2.1.7 and Section 2.3 hereof, at any time and from time to time on or after the Effective Date, at any time that the Shelf Registration Statement is effective, if a Holder of Registrable Securities covered by the Shelf Registration Statement delivers a notice to the Company (a “Shelf Takedown Notice”) stating that the Holder intends to effect an offering of all or part of its Registrable Securities included in the Shelf Registration Statement (a “Shelf Takedown”), the Company shall, subject to Section 3.4, as promptly as reasonably practicable, take all actions reasonably required, including amending or supplementing the Shelf Registration Statement, to enable such Registrable Securities to be offered and sold as contemplated by such Shelf Takedown Notice.  Each Shelf Takedown Notice shall specify the amount and type of Registrable Securities to be offered and sold in the Shelf Takedown and the intended method of distribution thereof.  Except as set forth in subsection 2.1.3 hereof, the Company shall not be obligated to effect requests set forth in a Shelf Takedown Notice through an Underwritten Offering.

 

2.1.3       Underwritten Offering pursuant to Shelf Takedown.  Any Demand Right Holder that has initiated a Shelf Takedown and delivered a Shelf Takedown Notice to the Company pursuant to subsection 2.1.2 shall have the right to demand as part of their Shelf Takedown Notice an offering in the form of an Underwritten Offering, provided that the aggregate offering price for any such offering is at least $5,000,000.00 in the aggregate. The Company shall, within ten (10) days of the Company’s receipt from such Demanding Holder of such Shelf Takedown Notice that includes a written demand for an Underwritten Offering, notify, in writing, all other Demand Right Holders of Registrable Securities, and all Daseke Former Series B Holders who hold Registrable Securities, of such demand, and such Holder who thereafter wishes to include all or a portion of such Holder’s Registrable Securities in such Underwritten Offering pursuant to a Shelf Takedown (each such Holder, an “Underwritten Shelf Offering Requesting Holder”) shall so notify the Company, in writing, within five (5) days after the receipt by such Holder of the notice from the Company.  Upon receipt by the Company of any such written notification from an Underwritten Shelf Offering Requesting Holder, such Holder shall be entitled, subject to subsection 2.1.7 and Section 2.3 hereof, to have its Registrable Securities included in the Underwritten Offering pursuant to the Shelf Takedown. All such Holders proposing to distribute their Registrable Securities through a Shelf Takedown under this subsection 2.1.3 shall, at the time of any such Shelf Takedown, enter into an underwriting agreement in customary form with the Underwriter(s) selected by the Demand Right Holder that initiated the Underwritten Offering pursuant to the Shelf Takedown (provided, however, that such Underwriter(s) is reasonably satisfactory to the Company); provided, further that any obligation of any such Holder to indemnify any Person pursuant to any such underwriting agreement shall be several, not joint and several, among such Holders selling Registrable Securities, and such liability shall be limited to the net amount received by any such Holder from the sale of his, her or its Registrable Securities pursuant to such Underwritten Offering, and the relative liability of each such Holder shall be in proportion to such net amounts. The number of Shelf Takedowns that the Demand Right Holders may initiate pursuant to subsection 2.1.2 shall not be limited, provided that the number of Underwritten Offerings that may be initiated hereunder shall be limited, in the case of Don R. Daseke and Walden Group (taken together), to a total of two (2) (less any Demand Registration requests initiated by such Demand Right Holders pursuant to subsection 2.1.4) and, in the case of the other Daseke Demanding Holders, the PIPE Demanding Holders or the Pre-IPO Demanding Holders, to one

 

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(1) each (less any Demand Registration requests initiated by any such Demand Right Holders pursuant to subsection 2.1.4).

 

2.1.4       Request for Demand Registration.  Subject to the provisions of subsection 2.1.7 and Section 2.3 hereof, at any time and from time to time on or after the Effective Date, if (a) the Shelf Registration Statement is not declared effective by the Commission on or prior to the date that is 180 days after the Effective Date or (b) at any time during the Shelf Registration Statement Effective Period, the Shelf Registration Statement is not available to the Holders (except for any unavailability resulting from information supplied by or on behalf of a Holder for use in the Shelf Registration Statement being incorrect or incomplete), any Demand Right Holder may make a written demand for Registration under the Securities Act of all or part of their Registrable Securities, which written demand shall describe the amount and type of securities to be included in such Registration and the intended method(s) of distribution thereof (such written demand a “Demand Registration”). Any such Demand Registration may (but shall not be required to be), at the election of the Demanding Holder, be a shelf registration pursuant to Rule 415 (or any successor rule promulgated thereafter by the Commission). The Company shall, within ten (10) days of the Company’s receipt of the Demand Registration, notify, in writing, all other Demand Right Holders of Registrable Securities and all Daseke Former Series B Holders of Registrable Securities of such demand, and each such Holder who thereafter wishes to include all or a portion of such Holder’s Registrable Securities in a Registration pursuant to the Demand Registration (each such Holder, a “Demand Registration Requesting Holder”) shall so notify the Company, in writing, within five (5) days after the receipt by such Holder of the notice from the Company. Upon receipt by the Company of any such written notification from a Demand Registration Requesting Holder to the Company, such Holder shall be entitled, subject to subsection 2.1.7 and Section 2.3 hereof, to have their Registrable Securities included in a Registration Statement pursuant to a Demand Registration, and the Company shall file a Registration Statement relating thereto within thirty (30) days after receipt by the Company of the Demand Registration and shall cause such Registration Statement to become effective as soon thereafter as reasonably practicable, providing for the Registration of all Registrable Securities requested by the Demanding Holders and Demand Registration Requesting Holders pursuant to such Demand Registration. The number of Registrations pursuant to a Demand Registration that the Demand Right Holders may initiate pursuant to the first sentence of this Section 2.1.4 shall be limited, (i) in the case of Don R. Daseke  and Walden Group (taken together), to a total of two (2) (less any Shelf Takedown Notice in the form of an Underwritten Offering initiated by such Demand Right Holders pursuant to Section 2.1.3), and (ii) in the case of the other Daseke Demanding Holders, the PIPE Demanding Holders or the Pre-IPO Demanding Holders, to one (1) each (less any Shelf Takedown Notice in the form of an Underwritten Offering initiated by any such Demand Right Holders pursuant to Section 2.1.3); provided, however, that a Registration shall not be counted for such purposes unless a Form S-1 or any similar long-form registration statement that may be available at such time (“Form S-1”) has become effective and all of the Registrable Securities requested by the Requesting Holders to be registered on behalf of the Requesting Holders in such Form S-1 Registration have been sold, in accordance with Section 3.1 of this Agreement.

 

2.1.5       Effective Registration.  Notwithstanding the provisions of subsection 2.1.4 above or any other part of this Agreement, a Registration pursuant to a Demand Registration shall not count as a Registration unless and until (a) the Registration Statement filed

 

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with the Commission with respect to a Registration pursuant to a Demand Registration has been declared effective by the Commission, (b) the Company has complied with all of its obligations under this Agreement with respect thereto and (c) the Registration Statement has remained effective continuously until the earlier of (x) one year after effectiveness or (y) the date on which all of the Registrable Securities requested by the Requesting Holders to be registered on behalf of the Requesting Holders in such Registration Statement have been sold; provided, further, that if, after such Registration Statement has been declared effective, an offering of Registrable Securities in a Registration pursuant to a Demand Registration is subsequently interfered with by any stop order or injunction of the Commission, federal or state court or any other governmental agency the Registration Statement with respect to such Registration shall be deemed not to have been declared effective, unless and until, (i) such stop order or injunction is removed, rescinded or otherwise terminated, and (ii) a majority-in-interest of the Demanding Holder(s) initiating such Demand Registration thereafter affirmatively elect to continue with such Registration and accordingly notify the Company in writing, but in no event later than five (5) days, of such election; provided, further, that the Company shall not be obligated or required to file another Registration Statement until the Registration Statement that has been previously filed with respect to a Registration pursuant to a Demand Registration becomes effective or is subsequently terminated.

 

2.1.6       Underwritten Offering pursuant to Demand Registration. Subject to the provisions of subsection 2.1.7 and Section 2.3 hereof, the Demanding Holder(s) may advise the Company as part of their Demand Registration that the offering of the Registrable Securities pursuant to such Demand Registration, or a portion thereof, may be in the form of an Underwritten Offering provided, however, that the aggregate offering price for any such Underwritten Offering may not be less than $25,000,000.00, unless the Company is eligible to register such shares of Common Stock on a Form S-3, or subsequent similar form, in a manner which does not require inclusion of any information concerning the Company other than to incorporate by reference its filings under the Exchange Act, in which case the aggregate offering price for any such Underwritten Offering may not be less than $5,000,000.00.  All such Demanding Holders and Requesting Holders (if any) proposing to distribute their Registrable Securities through an Underwritten Offering under this subsection 2.1.6 shall, at the time of any such Underwritten Offering, enter into an underwriting agreement in customary form with the Underwriter(s) selected by the Demanding Holder (provided, however, that such Underwriter(s) is reasonably satisfactory to the Company); provided, further that any obligation of any such Holder to indemnify any Person pursuant to any such underwriting agreement shall be several, not joint and several, among such Holders selling Registrable Securities, and such liability shall be limited to the net amount received by any such Holder from the sale of his, her or its Registrable Securities pursuant to such Underwritten Offering, and the relative liability of each such Holder shall be in proportion to such net amounts.

 

2.1.7       Reduction of Underwritten Offering in Connection with Shelf Takedown or Demand Registration.  If the managing Underwriter(s) in an Underwritten Offering effected pursuant to a Shelf Takedown or Demand Registration, as applicable, in good faith, advises the Company, the Demanding Holders and/or the Requesting Holders (as applicable) in writing that the dollar amount or number of Registrable Securities that the Demanding Holders and/or the Requesting Holders (as applicable) desire to sell exceeds the maximum dollar amount or maximum number of equity securities that can be sold in the Underwritten Offering without

 

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adversely affecting the proposed offering price, the timing, the distribution method, or the probability of success of such offering (such maximum dollar amount or maximum number of such securities, as applicable, the “Maximum Number of Securities”), then the Company shall include in such Underwritten Offering, as follows: (a) first, the Registrable Securities of the Demanding Holders (pro rata based on the respective number of Registrable Securities that each Demanding Holder has requested to be included in such Underwritten Offering (such proportion is referred to herein as “Pro Rata”)) up to the maximum amount that can be sold without exceeding the Maximum Number of Securities, (b) second, to the extent that the Maximum Number of Securities has not been reached under the foregoing clause (a), the Registrable Securities of the Daseke Demanding Holders and the PIPE Holders (Pro Rata, based on the respective number of Registrable Securities that each such Holder has requested to be included in such Underwritten Offering), (c) third, to the extent that the Maximum Number of Securities has not been reached under the foregoing clauses (a) and (b), the Registrable Securities of the Daseke Former Series B Holders that are not also Daseke Demanding Holders (Pro Rata, based on the respective number of Registrable Securities that each such Holder has requested to be included in such Underwritten Offering), (d) fourth, to the extent that the Maximum Number of Securities has not been reached under the foregoing clauses (a), (b) and (c), the Registrable Securities of the Pre-IPO Holders (Pro Rata, based on the respective number of Registrable Securities that each such Holder has so requested to be included in such Underwritten Offering without exceeding the Maximum Number of Securities); and (e) fifth, to the extent that the Maximum Number of Securities has not been reached under the foregoing clauses (a), (b), (c) and (d), the Registrable Securities of other Holders (Pro Rata, based on the respective number of Registrable Securities that each Holder has so requested exercising their rights to register their Registrable Securities pursuant to subsection 2.2.1 hereof, without exceeding the Maximum Number of Securities).

 

2.1.8       Demand Registration Withdrawal.

 

(a)           A Holder may withdraw all or any portion of its Registrable Securities included in a Demand Registration from such Demand Registration at any time prior to the effectiveness of the applicable Registration Statement; provided that such withdrawal shall be irrevocable and, after making such withdrawal, a Holder shall no longer have any right to include Registrable Securities in the Demand Registration as to which such withdrawal was made.  In the event the initiating Demanding Holder notifies the Company that it is withdrawing all of its Registrable Securities from the Demand Registration, the Company shall cease all efforts to secure effectiveness of the applicable Registration Statement.  Such registration nonetheless shall be deemed a Demand Registration with respect to such initiating Holder for purposes of subsection 2.1.4 unless (i) such Holder shall have paid or reimbursed the Company for its pro rata share of all reasonable and documented out-of-pocket fees and expenses incurred by the Company in connection with the withdrawn registration of such Registrable Securities (based on the number of securities such Holder sought to register, as compared to the total number of securities included in such Demand Registration) or (ii) the withdrawal is made following the occurrence of a Material Adverse Change or pursuant to the Company’s request for suspension.

 

(b)           In the case of any Underwritten Offering in connection with any Shelf Takedown or Demand Registration, any participating Holder shall have the right to withdraw their respective Registrable Securities, in whole or in part, from such Underwritten

 

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Offering prior to the pricing of such Underwritten Offering; provided that such withdrawal shall be irrevocable and, after making such withdrawal, a Holder shall no longer have any right to include Registrable Securities in the Underwritten Offering as to which such withdrawal was made. If the withdrawing Holder is the Holder who initiated the Underwritten Offering pursuant to subsection 2.1.3, such Underwritten Offering nonetheless shall be deemed a Shelf Takedown with respect to such withdrawing Holder for purposes of subsection 2.1.3 unless (i) such Holder shall have paid or reimbursed the Company for its pro rata share of all reasonable and documented out-of-pocket fees and expenses incurred by the Company in connection with the withdrawn Underwritten Offering (based on the number of securities such Holder sought to include in the Underwritten Offering, as compared to the total number of securities included in such Underwritten Offering) or (ii) the withdrawal is made following the occurrence of a Material Adverse Change or pursuant to the Company’s request for suspension.

 

(c)           Notwithstanding anything to the contrary in this Agreement, the Company shall be responsible for the Registration Expenses incurred in connection with a Registration pursuant to a Demand Registration or an Underwritten Offering prior to its withdrawal under this subsection 2.1.8.

 

2.2          Piggyback Registration.

 

2.2.1       Piggyback Rights.

 

(a)           If at any time on or after the Effective Date, (i) the Shelf Registration Statement is not declared effective by the Commission on or prior to the date that is 180 days after the Effective Date or (ii) at any time during the Shelf Registration Statement Effective Period, the Shelf Registration Statement is not available to the Holders (except for any unavailability resulting from information supplied by or on behalf of a Holder for use in the Shelf Registration Statement being incorrect or incomplete) and the Company proposes to file a Registration Statement under the Securities Act with respect to an offering of equity securities, or securities or other obligations exercisable or exchangeable for, or convertible into equity securities, for its own account or for the account of stockholders of the Company (or by the Company and by the stockholders of the Company), other than a Registration Statement (A) filed in connection with any employee stock option or other benefit plan, (B) for an exchange offer or offering of securities solely to the Company’s existing stockholders, or (C) for a dividend reinvestment plan, then the Company shall give written notice of such proposed filing to all of the Holders of Registrable Securities as soon as practicable but not less than ten (10) days before the anticipated effectiveness date of such Registration Statement, which notice shall (1) describe the amount and type of securities to be included in such offering, the intended method(s) of distribution, and the name of the proposed managing Underwriter or Underwriters, if any, in such offering, and (2) offer to all of the Holders of Registrable Securities the opportunity to register the sale of such number of Registrable Securities as such Holders may request in writing within five (5) days after receipt of such written notice (such Registration, a “Piggyback Registration”). The Company shall, in good faith, cause such Registrable Securities to be included in such Piggyback Registration.

 

(b)           If at any time on or after the Effective Date, the Company proposes to effect an Underwritten Offering for its own account or for the account of stockholders of the

 

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Company (a “Company Underwritten Offering”), the Company shall notify, in writing, all Holders of Registrable Securities of such demand, and such Holder who thereafter wishes to include all or a portion of such Holder’s Registrable Securities in such Underwritten Offering (each such Holder, a “Company Underwritten Shelf Offering Requesting Holder”) shall so notify the Company, in writing, within five (5) days after the receipt by such Holder of the notice from the Company.  Upon receipt by the Company of any such written notification from a Company Underwritten Shelf Offering Requesting Holder, such Holder shall be entitled, subject to subsection 2.2.2 and Section 2.3 hereof, to have its Registrable Securities included in the Company Underwritten Offering. All such Holders proposing to distribute their Registrable Securities through the Company Underwritten Offering shall enter into an underwriting agreement in customary form with the Underwriter(s) selected by the Company.  The Company shall use its best efforts to cause the managing Underwriter or Underwriters of any proposed Company Underwritten Offering to permit the Registrable Securities requested by the Holders pursuant to this subsection 2.2.1(b) to be included in such Company Underwritten Offering on the same terms and conditions as any similar securities of the Company included in such Company Underwritten Offering and to otherwise permit the sale or other disposition of such Registrable Securities in accordance with the intended method(s) of distribution thereof. All such Holders proposing to distribute their Registrable Securities through any Company Underwritten Offering under this subsection 2.2.1(b) shall enter into an underwriting agreement in customary form with the Underwriter(s) selected for such Underwritten Offering by the Company; provided, however that any obligation of any such Holder to indemnify any Person pursuant to any such underwriting agreement shall be several, not joint and several, among such Holders selling Registrable Securities, and such liability shall be limited to the net amount received by any such Holder from the sale of his, her or its Registrable Securities pursuant to such Underwritten Offering, and the relative liability of each such Holder shall be in proportion to such net amounts.

 

2.2.2       Reduction of Underwritten Offering in Connection with Piggyback Registration.  If the managing Underwriter(s) in any Underwritten Offering to be effected in connection with a Piggyback Registration, in good faith, advises the Company and the Holders of Registrable Securities participating in the Underwritten Offering in writing that the dollar amount or number of the Common Stock that the Company desires to sell in such Underwritten Offering, taken together with (i) the Common Stock, if any, as to which inclusion in such Underwritten Offering has been demanded pursuant to separate written contractual arrangements with persons or entities other than the Holders of Registrable Securities hereunder, (ii) the Registrable Securities as to which inclusion in such Underwritten Offering has been requested pursuant to subsection 2.2.1 hereof, and (iii) the Common Stock, if any, as to which inclusion in such Underwritten Offering has been requested pursuant to separate written contractual piggyback registration rights of other stockholders of the Company, exceeds the Maximum Number of Securities, then:

 

(a)           If the Company Underwritten Offering is undertaken for the Company’s account, the Company shall include in any such Underwritten Offering (A) first, the Common Stock or other equity securities that the Company desires to sell in such Underwritten Offering, which can be sold without exceeding the Maximum Number of Securities; (B) second, to the extent that the Maximum Number of Securities has not been reached under the foregoing clause (A), the Registrable Securities of Daseke Demanding Holders and PIPE Holders

 

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exercising their rights to include their Registrable Securities in such Underwritten Offering pursuant to subsection 2.2.1(b) hereof, Pro Rata, which can be sold without exceeding the Maximum Number of Securities; (C) third, to the extent that the Maximum Number of Securities has not been reached under the foregoing clauses (A) and (B), the Registrable Securities of Daseke Former Series B Holders that are not also Daseke Demanding Holders exercising their rights to include their Registrable Securities in such Underwritten Offering pursuant to subsection 2.2.1(b) hereof, Pro Rata, which can be sold without exceeding the Maximum Number of Securities; (D) fourth, to the extent the Maximum Number of Securities has not been reached under the foregoing clauses (A), (B) and (C), the Registrable Securities of the Pre-IPO Holders exercising their rights to include their Registrable Securities in such Underwritten Offering pursuant to subsection 2.2.1(b) hereof, Pro Rata, which can be sold without exceeding the Maximum Number of Securities; and (E) fifth, to the extent that the Maximum Number of Securities has not been reached under the foregoing clauses (A), (B), (C) and (D), the Common Stock, if any, as to which inclusion in such Underwritten Offering has been requested pursuant to written contractual piggyback registration rights of other stockholders of the Company, Pro Rata, which can be sold without exceeding the Maximum Number of Securities.

 

(b)           If the Company Underwritten Offering is pursuant to a request by persons or entities other than the Holders of Registrable Securities, then the Company shall include in any such Underwritten Offering (A) first, the Common Stock or other equity securities (if any), Pro Rata, of such requesting persons or entities, other than the Holders of Registrable Securities, which can be sold without exceeding the Maximum Number of Securities; (B) second, to the extent that the Maximum Number of Securities has not been reached under the foregoing clause (A), the Registrable Securities of Daseke Demanding Holders and PIPE Holders exercising their rights to include their Registrable Securities in such Underwritten Offering pursuant to subsection 2.2.1(b), Pro Rata, which can be sold without exceeding the Maximum Number of Securities; (C) third, to the extent that the Maximum Number of Securities has not been reached under the foregoing clauses (A) and (B), the Registrable Securities of Daseke Registrable Holders that are not also Daseke Demanding Holders exercising their rights to include their Registrable Securities in such Underwritten Offering pursuant to subsection 2.2.1(b), Pro Rata, which can be sold without exceeding the Maximum Number of Securities; (D) fourth, to the extent that the Maximum Number of Securities has not been reached under the foregoing clauses (A), (B) and (C), the Registrable Securities of the Pre-IPO Holders exercising their rights to include their Registrable Securities in such Underwritten Offering pursuant to subsection 2.2.1(b), Pro Rata, which can be sold without exceeding the Maximum Number of Securities; (E) fifth, to the extent that the Maximum Number of Securities has not been reached under the foregoing clauses (A), (B), (C) and (D), the Common Stock or other equity securities that the Company desires to sell in such Underwritten Offering, which can be sold without exceeding the Maximum Number of Securities; and (F) sixth, to the extent that the Maximum Number of Securities has not been reached under the foregoing clauses (A), (B), (C), (D) and (E), the Common Stock or other equity securities, Pro Rata, for the account of other persons or entities that the Company is obligated to include in such Underwritten Offering pursuant to separate written contractual arrangements with such persons or entities, which can be sold without exceeding the Maximum Number of Securities.

 

2.2.3       Piggyback Registration Withdrawal.  Any Holder of Registrable Securities shall have the right to withdraw from a Piggyback Registration for any or no reason whatsoever

 

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upon written notification to the Company and the Underwriter(s) (if any) of such Holder’s intention to withdraw from such Piggyback Registration prior to the effectiveness of the Registration Statement filed with the Commission with respect to such Piggyback Registration.  The Company (whether on its own good faith determination or as the result of a request for withdrawal by persons pursuant to separate written contractual obligations) may withdraw a Registration Statement filed with the Commission in connection with a Piggyback Registration at any time prior to the effectiveness of such Registration Statement. In the case of any Underwritten Offering in connection with any Piggyback Registration, any participating Holder shall have the right to withdraw their respective Registrable Securities from such Underwritten Offering prior to the pricing of such Underwritten Offering. Notwithstanding anything to the contrary in this Agreement, the Company shall be responsible for the Registration Expenses incurred in connection with the Piggyback Registration or Underwritten Offering prior to its withdrawal under this subsection 2.2.3.

 

2.2.4       Unlimited Piggyback Registration Rights.  For purposes of clarity, any Registration or Underwritten Offering effected pursuant to Section 2.2 hereof shall not be counted as a Registration pursuant to a Demand Registration effected under Section 2.1 hereof.

 

2.3          Restrictions on Registration Rights.  Notwithstanding anything to the contrary contained herein, the Company shall not be obligated to (a) effect any Demand Registration or an Underwritten Offering within sixty (60) days after the closing of an Underwritten Offering or (b) file a Registration Statement (or any amendment thereto) or effect an Underwritten Offering (or, if the Company has filed a Shelf Registration Statement and has included Registrable Securities therein, the Company shall be entitled to suspend the offer and sale of Registrable Securities pursuant to such Registration Statement) for a period of up to forty-five (45) days if the Company has determined in good faith that the sale of Registrable Securities pursuant a Registration Statement would require disclosure of material non-public information not otherwise required to be disclosed under applicable securities laws (i) which disclosure would have a material adverse effect on the Company or (ii) relating to a material  transaction involving the Company (any such period, a “Blackout Period”); provided, however, that in no event shall any Blackout Period together with other Blackout Periods exceed an aggregate of 90 days in any 12-month period. Any delivery by the Company of notice of a Blackout Period during the sixty (60) days immediately following effectiveness of any Registration Statement effected pursuant to Section 2.1 hereof shall give the Holders of a majority in aggregate amount of Registrable Securities being sold pursuant to such Registration Statement the right, by written notice to the Company within twenty (20) business days after the end of such Blackout Period, to cancel such registration. Notwithstanding the foregoing, the Company shall not exercise its rights under this Section 2.3 to invoke a Blackout Period unless it applies the same Blackout Period restrictions contained herein to all other securityholders of the Company with contractual registration rights.

 

ARTICLE III
 COMPANY PROCEDURES

 

3.1          General Procedures.  If at any time on or after the Effective Date the Company is required to effect the Registration of Registrable Securities, the Company shall use its best efforts to effect such Registration to permit the sale of such Registrable Securities in accordance

 

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with the intended plan of distribution thereof, and pursuant thereto the Company shall, as expeditiously as possible:

 

3.1.1       prepare and file with the Commission as soon as practicable a Registration Statement with respect to such Registrable Securities and use its reasonable best efforts to cause such Registration Statement to become effective and remain effective until all Registrable Securities covered by such Registration Statement have been sold;

 

3.1.2       prepare and file with the Commission such amendments and post-effective amendments to the Registration Statement, and such supplements to the Prospectus, as may be requested by the Holders or any Underwriter of Registrable Securities or as may be required by the rules, regulations or instructions applicable to the registration form used by the Company or by the Securities Act or rules and regulations thereunder to keep the Registration Statement effective until all Registrable Securities covered by such Registration Statement are sold in accordance with the intended plan of distribution set forth in such Registration Statement or supplement to the Prospectus;

 

3.1.3       prior to filing a Registration Statement or prospectus, or any amendment or supplement thereto, furnish without charge to the Underwriters, if any, and the Holders of Registrable Securities included in such Registration, and such Holders’ legal counsel, copies of such Registration Statement as proposed to be filed, each amendment and supplement to such Registration Statement (in each case including all exhibits thereto and documents incorporated by reference therein), the Prospectus included in such Registration Statement (including each preliminary Prospectus), and such other documents as the Underwriters and the Holders of Registrable Securities included in such Registration or the legal counsel for any such Holders may request in order to facilitate the disposition of the Registrable Securities owned by such Holders;

 

3.1.4       prior to any public offering of Registrable Securities, use its best efforts to (a) register or qualify the Registrable Securities covered by the Registration Statement under such securities or “blue sky” laws of such jurisdictions in the United States as the Holders of Registrable Securities included in such Registration Statement (in light of their intended plan of distribution) may request and (b) take such action necessary to cause such Registrable Securities covered by the Registration Statement to be registered with or approved by such other governmental authorities as may be necessary by virtue of the business and operations of the Company and do any and all other acts and things that may be necessary or advisable to enable the Holders of Registrable Securities included in such Registration Statement to consummate the disposition of such Registrable Securities in such jurisdictions; provided, however, that the Company shall not be required to qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify or take any action to which it would be subject to general service of process or taxation in any such jurisdiction where it is not then otherwise so subject;

 

3.1.5       notify each selling Holder promptly of any written comments by the SEC or any request by the SEC for the amending or supplementing of such Registration Statement or prospectus or for additional information;

 

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3.1.6       cause all such Registrable Securities to be listed on each securities exchange or automated quotation system on which similar securities issued by the Company are then listed;

 

3.1.7       provide a transfer agent or warrant agent, as applicable, and registrar for all such Registrable Securities no later than the effective date of such Registration Statement;

 

3.1.8       provide a CUSIP number for all Registrable Securities not later than the effective date of the Registration Statement with respect thereto;

 

3.1.9       advise each seller of such Registrable Securities, promptly after it shall receive notice or obtain knowledge thereof, of the issuance of any stop order by the Commission suspending the effectiveness of such Registration Statement or the initiation or threatening of any proceeding for such purpose and promptly use its reasonable best efforts to prevent the issuance of any stop order or to obtain its withdrawal if such stop order should be issued;

 

3.1.10     at least five (5) business days prior to the filing of any Registration Statement or Prospectus or any amendment or supplement to such Registration Statement or Prospectus, furnish a copy thereof to each seller of such Registrable Securities or its counsel;

 

3.1.11     notify the Holders at any time when a Prospectus relating to such Registration Statement is required to be delivered under the Securities Act, of the happening of any event as a result of which the Prospectus included in such Registration Statement, as then in effect, includes a Misstatement, and then to correct such Misstatement as set forth in Section 3.4 hereof;

 

3.1.12     permit a representative of the Holders, the Underwriters, if any, and any attorney or accountant retained by such Holders or Underwriter to participate, at each such person’s own expense, in the preparation of the Registration Statement, and cause the Company’s officers, directors and employees to supply all information reasonably requested by any such representative, Underwriter, attorney or accountant in connection with the Registration; provided, however, that such representatives or Underwriters enter into a confidentiality agreement, in form and substance reasonably satisfactory to the Company, prior to the release or disclosure of any such information;

 

3.1.13     obtain a “cold comfort” letter for the benefit of the Underwriters from the Company’s independent registered public accountants in the event of an Underwritten Offering, in customary form and covering such matters of the type customarily covered by “cold comfort” letters as the managing Underwriter may reasonably request;

 

3.1.14     on the date the Registrable Securities are delivered for sale pursuant to such Registration, obtain an opinion and negative assurance letter, dated such date, of counsel representing the Company for the purposes of such Registration, addressed to the Underwriters, if any, covering such legal matters with respect to the Registration in respect of which such opinion and negative assurance letter is being given as the Underwriters may reasonably request and as are customarily included in such opinions and negative assurance letters;

 

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3.1.15     in the event of any Underwritten Offering or Shelf Takedown, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing Underwriters of such offering;

 

3.1.16     make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve (12) months beginning with the first day of the Company’s first full calendar quarter after the effective date of the Registration Statement which satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder;

 

3.1.17     if the Registration involves the Registration of Registrable Securities involving gross proceeds in excess of $25,000,000.00, use its reasonable efforts to make available senior executives of the Company to participate in customary “road show” presentations that may be reasonably requested by the Underwriters in any Underwritten Offering or Shelf Takedown;

 

3.1.18     take no direct or indirect action prohibited by Regulation M under the Exchange Act; provided, that, to the extent that any prohibition is applicable to the Company, the Company will take all reasonable action to make any such prohibition inapplicable; and

 

3.1.19     otherwise, in good faith, cooperate reasonably with, and take such customary actions as may reasonably be requested by the Holders, in connection with such Registration.

 

3.2          Registration Expenses.  The Registration Expenses of all Registrations shall be borne by the Company.  It is acknowledged by the Holders that each Holder shall be responsible for any Underwriters’ commissions and discounts or brokerage fees in respect of the Registrable Securities sold by it and, other than as set forth in the definition of “Registration Expenses,” the fees and expenses of any legal counsel representing the Holders.

 

3.3          Requirements for Participation in Underwritten Offerings and Shelf Takedowns.  No person may participate in any Underwritten Offering or Shelf Takedown for equity securities of the Company pursuant to a  Registration initiated by the Company hereunder unless such person (a) agrees to sell such person’s securities on the basis provided in any underwriting arrangements approved by the Company and (b) completes and executes all customary questionnaires, powers of attorney, indemnities, lock-up agreements, underwriting agreements and other customary documents as may be reasonably required under the terms of such underwriting arrangements.

 

3.4          Suspension of Sales; Adverse Disclosure.  Upon receipt of written notice from the Company that a Registration Statement or Prospectus contains a Misstatement, each of the Holders shall forthwith discontinue disposition of Registrable Securities until it has received copies of a supplemented or amended Prospectus correcting the Misstatement (it being understood that the Company hereby covenants to prepare and file such supplement or amendment as soon as practicable after the time of such notice), or until it is advised in writing by the Company that the use of the Prospectus may be resumed. If the filing, initial effectiveness or continued use of a Registration Statement in respect of any Registration at any time would

 

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require the Company to make an Adverse Disclosure or would require the inclusion in such Registration Statement of financial statements that are unavailable to the Company for reasons beyond the Company’s control, the Company may, upon giving prompt written notice of such action to the Holders, delay the filing or initial effectiveness of, or suspend use of, such Registration Statement for the shortest period of time, but in no event more than thirty (30) days, determined in good faith by the Company to be necessary for such purpose. In the event the Company exercises its rights under the preceding sentence, the Holders agree to suspend, immediately upon their receipt of the notice referred to above, their use of the Prospectus relating to any Registration in connection with any sale or offer to sell Registrable Securities.  The Company shall immediately notify the Holders of the expiration of any period during which it exercised its rights under this Section 3.4.

 

3.5          Reporting Obligations.  As long as any Holder shall own Registrable Securities, the Company, at all times while it shall be reporting under the Exchange Act, covenants to file timely (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to Sections 13(a) or 15(d) of the Exchange Act and, if requested by Holders, to promptly furnish such Holders with true and complete copies of all such filings.  The Company covenants that, promptly after the Effective Date (but no later than four business days after the Effective Date), it shall file “Form 10 information” (as such term is defined in Rule 144(i) under the Securities Act) with the Commission.  The Company further covenants that it shall take such further action as any Holder may reasonably request, all to the extent required from time to time to enable such Holder to sell shares of the Common Stock held by such Holder without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 promulgated under the Securities Act, including providing any legal opinions.  Upon the request of any Holder, the Company shall deliver to such Holder a written certification of a duly authorized officer as to whether it has complied with such requirements.

 

ARTICLE IV
  INDEMNIFICATION AND CONTRIBUTION

 

4.1          Indemnification.

 

4.1.1       The Company agrees to indemnify, to the extent permitted by law, each Holder of Registrable Securities, its partners, officers, directors, employees and agents, and each person who controls such Holder (within the meaning of the Securities Act or the Exchange Act, as applicable) against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees) caused by any untrue or alleged untrue statement of material fact contained in (or incorporated by reference in) any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule thereto) or any amendment thereof or supplement thereto, or any filing under any state securities law required to be filed or furnished, or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, and shall reimburse such Holder for any legal or other expenses reasonably incurred by any of them in connection with investigating or defending any such loss, claim, action, damage, liability or proceeding, except insofar as the same are caused by or contained in any information furnished in writing to the Company by such Holder expressly stating that it is for use therein. The

 

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Company shall indemnify the Underwriters, their partners, officers, directors, employees and agents, and each person who controls such Underwriters (within the meaning of the Securities Act or the Exchange Act, as applicable), to the same extent as provided in the foregoing with respect to the indemnification of the Holders.

 

4.1.2       In connection with any Registration Statement in which a Holder of Registrable Securities is participating, such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus and, to the extent permitted by law, shall indemnify the Company, its partners, directors, officers, employees  and agents, and each other Holder and its respective partners, directors, officers, employees and agents, and each person who controls the Company or any other Holder (within the meaning of the Securities Act or Exchange Act, as applicable) against any losses, claims, damages, liabilities and expenses (including without limitation reasonable attorneys’ fees) resulting from any untrue statement of material fact contained in the Registration Statement, Prospectus or preliminary Prospectus or any amendment thereof or supplement thereto or any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or omission is contained in any information so furnished in writing by such Holder expressly stating that it is for use therein; provided, however, that the obligation to indemnify shall be several, not joint and several, among such Holders of Registrable Securities, and the liability of each such Holder of Registrable Securities shall be in proportion to and limited to the net proceeds received by such Holder from the sale of Registrable Securities pursuant to such Registration Statement. The Holders of Registrable Securities shall indemnify the Underwriters, their partners, officers, directors, employees and agents, and each person who controls such Underwriters (within the meaning of the Securities Act), to the same extent as provided in the foregoing with respect to indemnification of the Company.

 

4.1.3       Any person entitled to indemnification herein shall (a) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided that the failure to give prompt notice shall not impair any person’s right to indemnification hereunder to the extent such failure has not materially prejudiced the indemnifying party) and (b) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent shall not be unreasonably withheld).  An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel (and one applicable local counsel) for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim.  No indemnifying party shall, without the consent of the indemnified party, consent to the entry of any judgment or enter into any settlement which cannot be settled in all respects by the payment of money (and such money is so paid by the indemnifying party pursuant to the terms of such settlement) or which settlement does not include as an unconditional term thereof the giving by the claimant or

 

22

 

plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation.

 

4.1.4       The indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party or any partner, officer, director, employee, agent or controlling person of such indemnified party and shall survive the transfer of securities.  The Company and each Holder of Registrable Securities participating in an offering also agrees to make such provisions as are reasonably requested by any indemnified party for contribution to such party in the event the Company’s or such Holder’s indemnification is unavailable for any reason.

 

4.1.5       If the indemnification provided under Section 4.1 hereof from the indemnifying party is unavailable or insufficient to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities and expenses referred to herein, then the indemnifying party, in lieu of indemnifying the indemnified party, shall contribute to the amount paid or payable by the indemnified party as a result of such losses, claims, damages, liabilities and expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and indemnified party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, was made by, or relates to information supplied by, such indemnifying party or indemnified party, and the indemnifying party’s and indemnified party’s relative intent, knowledge, access to information and opportunity to correct or prevent such action; provided, however, that the liability of any Holder under this subsection 4.1.5 shall be limited to the amount of the net proceeds received by such Holder in such offering giving rise to such liability. The amount paid or payable by a party as a result of the losses or other liabilities referred to above shall be deemed to include, subject to the limitations set forth in subsections 4.1.1, 4.1.2 and 4.1.3 above, any legal or other fees, charges or expenses reasonably incurred by such party in connection with any investigation or proceeding.  The parties hereto agree that it would not be just and equitable if contribution pursuant to this subsection 4.1.5 were determined by pro rata allocation or by any other method of allocation, which does not take account of the equitable considerations referred to in this subsection 4.1.5.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution pursuant to this subsection 4.1.5 from any person who was not guilty of such fraudulent misrepresentation.

 

ARTICLE V
  MISCELLANEOUS

 

5.1          Notices.  Any notice or communication under this Agreement must be in writing and given by (a) deposit in the United States mail, addressed to the party to be notified, postage prepaid and registered or certified with return receipt requested, (b) delivery in person or by courier service providing evidence of delivery, or (c) transmission by hand delivery, electronic mail or facsimile.  Each notice or communication that is mailed, delivered, or transmitted in the manner described above shall be deemed sufficiently given, served, sent, and received, in the case of mailed notices, on the third business day following the date on which it is mailed and, in the case of notices delivered by courier service, hand delivery, electronic mail or facsimile, at

 

23

 

such time as it is delivered to the addressee (with the delivery receipt or the affidavit of messenger) or at such time as delivery is refused by the addressee upon presentation. Any notice or communication to the Company under this Agreement must be addressed to the Company at Daseke, Inc. (f/k/a Hennessy Capital Acquisition Corp. II), 15455 Dallas Parkway, Suite 440, Addison, Texas 75001. Any notice or communication to any Holder under this Agreement must be addressed to such Holder’s address as found in the Company’s books and records.  Any party may change its address for notice at any time and from time to time by written notice to the other parties hereto, and such change of address shall become effective thirty (30) days after delivery of such notice as provided in this Section 5.1.

 

5.2          Assignment; No Third Party Beneficiaries.

 

5.2.1       This Agreement and the rights, duties and obligations of the Company hereunder may not be assigned or delegated by the Company in whole or in part.

 

5.2.2       Prior to the expiration of the applicable Lock-up Period, no Holder may assign or delegate such Holder’s rights, duties or obligations under this Agreement, in whole or in part, except in connection with a transfer of Registrable Securities by such Holder to a Permitted Transferee (but only if, as set forth in the definition thereof, such person has agreed to become bound by the transfer restrictions set forth in the Investor Agreements, the Lock-Up Agreements, the Founder Shares Purchase Agreement and, if applicable, any other applicable letter agreements).

 

5.2.3       This Agreement and the provisions hereof shall be binding upon and shall inure to the benefit of each of the parties and its successors and the permitted assigns of the Holders, which shall include Permitted Transferees.

 

5.2.4       This Agreement shall not confer any rights or benefits on any persons that are not parties hereto, other than as expressly set forth in this Agreement and Section 5.2 hereof.

 

5.2.5       No assignment by any party hereto of such party’s rights, duties and obligations hereunder shall be binding upon or obligate the Company unless and until the Company shall have received (a) written notice of such assignment as provided in Section 5.1 hereof and (b) the written agreement of the assignee, in a form reasonably satisfactory to the Company, to be bound by the terms and provisions of this Agreement (which may be accomplished by an addendum or certificate of joinder to this Agreement). Any transfer or assignment made other than as provided in this Section 5.2 shall be null and void.

 

5.3          Counterparts.  This Agreement may be executed in multiple counterparts (including facsimile or PDF counterparts), each of which shall be deemed an original, and all of which together shall constitute the same instrument, but only one of which need be produced.

 

5.4          Governing Law.  NOTWITHSTANDING THE PLACE WHERE THIS AGREEMENT MAY BE EXECUTED BY ANY OF THE PARTIES HERETO, THE PARTIES EXPRESSLY AGREE THAT THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE OF DELAWARE AS APPLIED TO AGREEMENTS AMONG DELAWARE RESIDENTS ENTERED INTO AND TO BE

 

24

 

PERFORMED ENTIRELY WITHIN DELAWARE, WITHOUT REGARD TO THE CONFLICT OF LAW PROVISIONS OF SUCH JURISDICTION.

 

5.5          Amendments and Modifications.  Upon the written consent at the time in question of the Company and the Holders of at least a majority in interest of the Registrable Securities, compliance with any of the provisions, covenants and conditions set forth in this Agreement may be waived, or any of such provisions, covenants or conditions may be amended or modified; provided, however, that notwithstanding the foregoing, any amendment hereto or waiver hereof that adversely affects one Holder, solely in its capacity as a holder of the shares of capital stock of the Company, in a manner that is materially different from the other Holders (in such capacity) shall require the consent of the Holder so affected. No course of dealing between any Holder or the Company and any other party hereto or any failure or delay on the part of a Holder or the Company in exercising any rights or remedies under this Agreement shall operate as a waiver of any rights or remedies of any Holder or the Company.  No single or partial exercise of any rights or remedies under this Agreement by a party shall operate as a waiver or preclude the exercise of any other rights or remedies hereunder or thereunder by such party.

 

5.6          Other Registration Rights.  The Company represents and warrants that no person, other than a Holder of Registrable Securities, other than the shelf registration statement required to be filed for the benefit of securityholders of Daseke pursuant to Section 11.03 of the Merger Agreement and other than the holders of warrants issued to public investors pursuant to that certain Warrant Agreement, dated as of July 22, 2015, between the Company and Continental Stock Transfer & Trust Company, as warrant agent, has any right to require the Company to register any securities of the Company for sale or to include such securities of the Company in any Registration filed by the Company for the sale of securities for its own account or for the account of any other person.  Further, the Company represents and warrants that this Agreement supersedes and restates the Original Registration Rights Agreement or agreement with similar terms and conditions and in the event of a conflict between any such agreement or agreements and this Agreement, the terms of this Agreement shall prevail.  Except as required by a pre-existing registration rights agreement referenced in this Section 5.6, neither the Company nor any stockholder of the Company (other than the Holders) may include securities in any Registration made pursuant to Section 2.1 of this Agreement.

 

5.7          Term.  This Agreement shall terminate upon the date as of which (a) all of the Registrable Securities have been sold pursuant to a Registration Statement (but in no event prior to the applicable period referred to in Section 4(a)(3) of the Securities Act and Rule 174 thereunder) or (b) the Holders of all Registrable Securities are permitted to sell the Registrable Securities under Rule 144 (or any similar provision) under the Securities Act without limitation on the amount of securities sold or the manner of sale.  The provisions of Section 3.5, Article IV and Article V shall survive any termination.

 

[SIGNATURE PAGES FOLLOW]

 

25

 

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the date first written above.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
HENNESSY CAPITAL ACQUISITION   CORP. II
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel J. Hennessy
    
	
 
    	
 
    	
Name:   Daniel J. Hennessy
    
	
 
    	
 
    	
Title:   Chief   Executive Officer
    
	
 
    	
SPONSOR:
    
	
 
    	
 
    
	
 
    	
HENNESSY CAPITAL PARTNERS II LLC,   
    
	
 
    	
 
    
	
 
    	
By: Hennessy Capital LLC,   its managing member
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel J. Hennessy
    
	
 
    	
 
    	
Name:   Daniel J. Hennessy
    
	
 
    	
 
    	
Title:   Managing   Member
    
	
 
    	
 
    
	
 
    	
OTHER   PRE-IPO HOLDERS:
    
	
 
    	
 
    
	
 
    	
 
    	
/s/   Bradley Bell
    
	
 
    	
 
    	
Name:   Bradley Bell
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Richard Burns
    
	
 
    	
 
    	
Name:   Richard Burns
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Nicholas Petruska
    
	
 
    	
 
    	
Name:   Nicholas Petruska
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Peter Shea
    
	
 
    	
 
    	
Name:   Peter Shea
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Kevin Charlton
    
	
 
    	
 
    	
Name:   Kevin Charlton
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Charles B. Lowery II
    
	
 
    	
 
    	
Name:   Charles B. Lowery II
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Thomas J. Sullivan
    
	
 
    	
 
    	
Name:   Thomas J. Sullivan
    

 

[Signature Page to Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
PREFERRED INVESTORS:
    
	
 
    	
 
    
	
 
    	
THE   OSTERWEIS STRATEGIC INCOME FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bradley Kane
    
	
 
    	
 
    	
Name:   Bradley Kane
    
	
 
    	
 
    	
Title:   Assistant Vice President
    
	
 
    	
 
    
	
 
    	
THE OSTERWEIS STRATEGIC INVESTMENT FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bradley Kane
    
	
 
    	
 
    	
Name:   Bradley Kane
    
	
 
    	
 
    	
Title:   Assistant Vice President
    

 

[Signature Page to Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
PREFERRED INVESTORS AND BACKSTOP INVESTORS:
    
	
 
    	
 
    
	
 
    	
BLACKWELL   PARTNERS, LLC, SERIES A
    
	
 
    	
 
    
	
 
    	
By: Coliseum Capital Management, LLC, Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Chris Shackelton
    
	
 
    	
 
    	
Name:   Chris Shackelton
    
	
 
    	
 
    	
Title:   Manager
    
	
 
    	
 
    
	
 
    	
COLISEUM   CAPITAL PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By: Coliseum Capital, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Chris Shackelton
    
	
 
    	
 
    	
Name:   Chris Shackelton
    
	
 
    	
 
    	
Title:   Manager
    
	
 
    	
 
    
	
 
    	
COLISEUM   CAPITAL PARTNERS II, L.P.
    
	
 
    	
 
    
	
 
    	
By: Coliseum Capital, LLC, its general partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Chris Shackelton
    
	
 
    	
 
    	
Name:   Chris Shackelton
    
	
 
    	
 
    	
Title:   Manager
    

 

[Signature Page to Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
BACKSTOP INVESTORS:
    
	
 
    	
 
    
	
 
    	
PINE   RIVER MASTER FUND LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Pine   River Capital Management L.P.
    
	
 
    	
Its:
    	
Investment   Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nick Nusbaum
    
	
 
    	
 
    	
Nick   Nusbaum, Chief Financial Officer
    

 

[Signature Page to Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
BACKSTOP INVESTOR:
    
	
 
    	
 
    
	
 
    	
D. E.   SHAW VALENCE PORTFOLIOS LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Neil Cosgrove
    
	
 
    	
 
    	
Name:   Neil Cosgrove
    
	
 
    	
 
    	
Title:   Managing Director and Authorized Signatory
    
	
 
    	
 
    	
 
    

 

[Signature Page to Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
BACKSTOP INVESTOR:
    
	
 
    	
 
    
	
 
    	
SUNRISE PARTNERS LIMITED   PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By:
    	
Paloma   Partners Management Company, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Douglas W. Ambrose
    
	
 
    	
 
    	
Name:   Douglas W. Ambrose
    
	
 
    	
 
    	
Title:   Managing Director
    

 

[Signature Page to Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
DON R. DASEKE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Don R. Daseke
    
	
 
    	
 
    	
 
    
	
 
    	
THE WALDEN GROUP, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Don R. Daseke
    
	
 
    	
 
    	
Name:   Don R. Daseke
    
	
 
    	
 
    	
Title:   President
    

 

[Signature Page to Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
DANIEL WIRKKALA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Daniel Wirkkala
    

 

[Signature Page to Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
DASEKE FORMER SERIES B HOLDERS:
    
	
 
    	
 
    
	
 
    	
BARBARA S. BIGHAM
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Barbara Bigham
    
	
 
    	
 
    	
 
    
	
 
    	
BENNO   JOHN FISCHER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Benno John Fischer
    
	
 
    	
 
    	
 
    
	
 
    	
BOD,   LLC — THE DASEKE SERIES
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Don Reece
    
	
 
    	
Name:
    	
Don   Reece
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
BRIAN   J. BONNER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Brian J. Bonner
    
	
 
    	
 
    	
 
    
	
 
    	
BURNETT   C. HORNADY, II
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Chris Hornady
    
	
 
    	
 
    	
 
    
	
 
    	
CARLA   JONES SOUSA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Carla Jones Sousa
    
	
 
    	
 
    	
 
    
	
 
    	
CHARLES   A. MOSELEY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Charles A. Moseley
    
	
 
    	
 
    	
 
    
	
 
    	
CHERYL   H. NELSON
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Cheryl Nelson
    
	
 
    	
 
    	
 
    
	
 
    	
CHRIS   COOPER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

[Signature Page to Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
COZAD   INVESTMENTS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:                                                                      ,   its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DASEKE   TRUCKING PREFERRED, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:   EF Financial GP, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DENNIS   STONE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Dennis Stone
    
	
 
    	
 
    	
 
    
	
 
    	
DIANE   BECKETT
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Diane Beckett
    
	
 
    	
 
    	
 
    
	
 
    	
EQUITY   TRUST CO. CUSTODIAN FBO W. PAUL STEWART IRA
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William Paul Stewart
    
	
 
    	
Name:
    	
William   Paul Stewart
    
	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
ESTATE   OF FRANCES S. BOYD
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gail Cooper; /s/ Ginger Hartzog
    
	
 
    	
Name:
    	
Gail   Cooper; Ginger Hartzog
    
	
 
    	
Title:
    	
Co-Trustees
    
	
 
    	
 
    	
 
    
	
 
    	
FISHER   PROPERTIES OF INDIANA, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Tamara S. Phillips
    
	
 
    	
Name:
    	
Tamara   S. Phillips
    
	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
FRANK   W. REES, JR.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Frank W. Rees, Jr.
    

 

[Signature Page to Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
GAFFORD   INVESTMENTS, LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ron Gafford
    
	
 
    	
Name:
    	
Ron   Gafford
    
	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
GAIL   B COOPER CHILD TRUST F/B/O AMY C HOLLAND
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Amy C. Holland
    
	
 
    	
Name:
    	
Amy   C. Holland
    
	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
GAIL   B COOPER CHILD TRUST F/B/O CHRISTOPHER R COOPER
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Amy C. Holland
    
	
 
    	
Name:
    	
Amy   C. Holland
    
	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
GAIL   COOPER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Gail Cooper
    
	
 
    	
 
    	
 
    
	
 
    	
GEKABI   CAPITAL MANAGEMENT LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:   Gekabi Capital GP, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   George Bishop
    
	
 
    	
Name:
    	
George   H. Bishop
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
HAROLD   M. BRIERLEY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HELEN   L. POORMAN
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
J.   DOUGLAS RIPPETO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   J. Douglas Rippeto
    

 

[Signature Page to Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
JAMES   NIEMANN TRUST
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Jimmy Niemann
    
	
 
    	
 
    	
Name:
    	
Jimmy   Niemann
    
	
 
    	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
JAMES   RANDOLPH
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Jimmy Randolph
    
	
 
    	
 
    	
 
    
	
 
    	
JIM   BECKETT
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
JONATHAN   ANDREW GANNON
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Jonathan Andrew Gannon
    
	
 
    	
 
    	
 
    
	
 
    	
JOSEPH   KEVIN JORDAN
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Joseph Kevin Jordan
    
	
 
    	
 
    	
 
    
	
 
    	
THE   JORDAN FAMILY IRREVOCABLE TRUST
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Kevin Jordan
    
	
 
    	
 
    	
Name:
    	
Kevin   Jordan
    
	
 
    	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
THE   JOY AND KEVIN JORDAN REVOCABLE TRUST
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Kevin Jordan
    
	
 
    	
 
    	
Name:
    	
Kevin   Jordan
    
	
 
    	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
LAREE   PACAUD HULSHOFF
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Laree Hulshoff
    
	
 
    	
 
    	
 
    
	
 
    	
LAURA   H. WRIGHT
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Laura H. Wright
    
							

 

[Signature Page to Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
LEE   E. TENZER TRUST
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Mark McClain
    
	
 
    	
 
    	
Name:
    	
Mark   McClain
    
	
 
    	
 
    	
Title:
    	
Attorney-in-Fact   and Successor Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
LENOX   HILL CAPITAL, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MARK   RANDOLPH
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Mark Randolph
    
	
 
    	
 
    	
 
    
	
 
    	
MILLENNIUM   TRUST CO. LLC CUSTODIAN FBO STEVEN H DURHAM ROLLOVER IRA XXXX6U1N8
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PANABCO,   A PARTNERSHIP ACCOUNT #2406
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   J. Bradley Zellar
    
	
 
    	
 
    	
Name:
    	
J.   Bradley Zellar
    
	
 
    	
 
    	
Title:
    	
Partner
    
	
 
    	
 
    
	
 
    	
PATRICIA   STONE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Patricia Stone
    
	
 
    	
 
    	
 
    
	
 
    	
PAUL   H. COIL
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Paul H. Coil
    
	
 
    	
 
    	
 
    
	
 
    	
PHILIP   L. BYRD
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
					

 

[Signature Page to Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
POINT   CYPRESS INVESTMENTS, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Judson Green
    
	
 
    	
 
    	
Name:
    	
Judson   Green
    
	
 
    	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
Q   MANAGEMENT GROUP, LP
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Lee Bailey
    
	
 
    	
 
    	
Name:
    	
Lee   Bailey
    
	
 
    	
 
    	
Title:
    	
Managing   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
R.   SCOTT WHEELER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   R. Scott Wheeler
    
	
 
    	
 
    	
 
    
	
 
    	
RENDY   TAYLOR
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Rendy Taylor
    
	
 
    	
 
    	
 
    
	
 
    	
RICHARD   BAILEY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Richard Bailey
    
	
 
    	
 
    	
 
    
	
 
    	
RICK   WILLIAMS
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Rick Williams
    
	
 
    	
 
    	
 
    
	
 
    	
ROBERT   BIGHAM, JR.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Robert Bigham
    
	
 
    	
 
    	
 
    
	
 
    	
ROD   D. MOSELEY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Rod Moseley
    
	
 
    	
 
    	
 
    
	
 
    	
SCHEEF   CAPITAL COMPANY LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:   Scheef Capital Management, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
					

 

[Signature Page to Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
SUSAN   M. ANSEL
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Susan M. Ansel
    
	
 
    	
 
    	
 
    
	
 
    	
TENZER   FAMILY LIMITED PARTNERSHIP
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Mark McClain
    
	
 
    	
 
    	
Name:
    	
Mark   McClain
    
	
 
    	
 
    	
Title:
    	
Attorney-in-Fact   for General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
THE   ESTATE OF JAMES G. STEWART
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
THE   HUND FAMILY TRUST
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
THE   STEVEN H. DURHAM FAMILY FOUNDATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Steven Durham
    
	
 
    	
 
    	
Name:
    	
Steven   Durham
    
	
 
    	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
THE   SUZANNE A. HOOVER REVOCABLE TRUST
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
TIM   CURRAN
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Tim Curran
    
	
 
    	
 
    	
 
    
	
 
    	
TIMOTHY   H. UBBEN
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Timothy H. Ubben
    
	
 
    	
 
    	
 
    
	
 
    	
TRACY   M. FRIEDRICHS
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Tracy Friedrichs
    
						

 

[Signature Page to Amended and Restated Registration Rights Agreement]

 

 

	
 
    	
VCA   DASEKE, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:   ACH Management, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   O. Haynes Morris
    
	
 
    	
 
    	
Name:
    	
O.   Haynes Morris
    
	
 
    	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
WAYNE   I. ROGERS
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Wayne Rogers
    

 

[Signature Page to Amended and Restated Registration Rights Agreement]Exhibit 10.1

 

Execution Version

	
 
    

 

TERM LOAN AGREEMENT

 

Dated as of February 27, 2017

 

among

 

DASEKE, INC.(1), 
 as Holdings,

 

HCAC MERGER SUB, INC.
 (to be merged with and into Daseke, Inc., which is to be renamed as Daseke Companies, Inc.),
 as the Borrower,

 

THE FINANCIAL INSTITUTIONS PARTY HERETO,
 as Lenders,

 

and

 

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
 as Administrative Agent,

 

and

 

CREDIT SUISSE SECURITIES (USA) LLC,
 UBS SECURITIES LLC
 and
 PNC CAPITAL MARKETS LLC
 as Joint Lead Arrangers
 and
 Joint Bookrunners

 

(1)  Note:  HCAC Merger Sub will merge into the existing Daseke, Inc., which will then immediately be renamed as Daseke Companies, Inc.  Hennessy Capital Acquisition Corp. II will concurrently be renamed as the new Daseke, Inc.

 

 

Table of Contents

	
 
    	
 
    	
 
    
	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE 1        DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
Section 1.01
    	
Defined   Terms
    	
1
    
	
 
    	
 
    	
 
    
	
Section 1.02
    	
Classification   of Loans and Borrowings
    	
52
    
	
 
    	
 
    	
 
    
	
Section 1.03
    	
Terms   Generally
    	
52
    
	
 
    	
 
    	
 
    
	
Section 1.04
    	
Accounting   Terms; GAAP
    	
53
    
	
 
    	
 
    	
 
    
	
Section 1.05
    	
Effectuation   of Transactions
    	
53
    
	
 
    	
 
    	
 
    
	
Section 1.06
    	
Timing   of Payment of Performance
    	
54
    
	
 
    	
 
    	
 
    
	
Section 1.07
    	
Times   of Day
    	
54
    
	
 
    	
 
    	
 
    
	
Section 1.08
    	
Currency   Equivalents Generally
    	
54
    
	
 
    	
 
    	
 
    
	
Section 1.09
    	
Cashless   Rollovers
    	
55
    
	
 
    	
 
    	
 
    
	
Section 1.10
    	
Certain   Calculations and Tests
    	
55
    
	
 
    	
 
    	
 
    
	
ARTICLE 2        THE CREDITS
    	
56
    
	
 
    	
 
    	
 
    
	
Section 2.01
    	
Commitments
    	
56
    
	
 
    	
 
    	
 
    
	
Section 2.02
    	
Loans   and Borrowings
    	
57
    
	
 
    	
 
    	
 
    
	
Section 2.03
    	
Requests   for Borrowings
    	
57
    
	
 
    	
 
    	
 
    
	
Section 2.04
    	
Funding   of Borrowings
    	
58
    
	
 
    	
 
    	
 
    
	
Section 2.05
    	
Type;   Interest Elections
    	
59
    
	
 
    	
 
    	
 
    
	
Section 2.06
    	
Automatic   Termination and Reduction of Commitments
    	
59
    
	
 
    	
 
    	
 
    
	
Section 2.07
    	
Repayment   of Loans; Evidence of Debt
    	
60
    
	
 
    	
 
    	
 
    
	
Section 2.08
    	
Prepayment   of Loans
    	
61
    
	
 
    	
 
    	
 
    
	
Section 2.09
    	
Fees
    	
64
    
	
 
    	
 
    	
 
    
	
Section 2.10
    	
Interest
    	
65
    
	
 
    	
 
    	
 
    
	
Section 2.11
    	
Alternate   Rate of Interest
    	
66
    
	
 
    	
 
    	
 
    
	
Section 2.12
    	
Increased   Costs
    	
67
    
	
 
    	
 
    	
 
    
	
Section 2.13
    	
Break   Funding Payments
    	
68
    
	
 
    	
 
    	
 
    
	
Section 2.14
    	
Taxes
    	
68
    
	
 
    	
 
    	
 
    
	
Section 2.15
    	
Payments   Generally; Allocation of Proceeds; Sharing of Payments
    	
72
    
	
 
    	
 
    	
 
    
	
Section 2.16
    	
Mitigation   Obligations; Replacement of Lenders
    	
74
    
	
 
    	
 
    	
 
    
	
Section 2.17
    	
Illegality
    	
75
    
	
 
    	
 
    	
 
    
	
Section 2.18
    	
Defaulting   Lenders
    	
75
    
	
 
    	
 
    	
 
    
	
Section 2.19
    	
Incremental   Credit Extensions
    	
76
    
	
 
    	
 
    	
 
    
	
Section 2.20
    	
Extensions   of Loans
    	
78
    
	
 
    	
 
    	
 
    
	
ARTICLE 3        REPRESENTATIONS AND WARRANTIES
    	
80
    

 

i

 

	
Section 3.01
    	
Organization;   Powers
    	
80
    
	
 
    	
 
    	
 
    
	
Section 3.02
    	
Authorization;   Enforceability
    	
81
    
	
 
    	
 
    	
 
    
	
Section 3.03
    	
Governmental   Approvals; No Conflicts
    	
81
    
	
 
    	
 
    	
 
    
	
Section 3.04
    	
Financial   Condition; No Material Adverse Effect
    	
81
    
	
 
    	
 
    	
 
    
	
Section 3.05
    	
Properties
    	
81
    
	
 
    	
 
    	
 
    
	
Section 3.06
    	
Litigation   and Environmental Matters
    	
82
    
	
 
    	
 
    	
 
    
	
Section 3.07
    	
Compliance   with Laws
    	
82
    
	
 
    	
 
    	
 
    
	
Section 3.08
    	
Investment   Company Status
    	
82
    
	
 
    	
 
    	
 
    
	
Section 3.09
    	
Taxes
    	
82
    
	
 
    	
 
    	
 
    
	
Section 3.10
    	
ERISA
    	
83
    
	
 
    	
 
    	
 
    
	
Section 3.11
    	
Disclosure
    	
83
    
	
 
    	
 
    	
 
    
	
Section 3.12
    	
Security   Interest in Collateral
    	
83
    
	
 
    	
 
    	
 
    
	
Section 3.13
    	
Labor   Disputes
    	
83
    
	
 
    	
 
    	
 
    
	
Section 3.14
    	
Federal   Reserve Regulations
    	
84
    
	
 
    	
 
    	
 
    
	
Section 3.15
    	
Anti-Terrorism   Laws
    	
84
    
	
 
    	
 
    	
 
    
	
Section 3.16
    	
Solvency
    	
84
    
	
 
    	
 
    	
 
    
	
Section 3.17
    	
Capitalization   and Subsidiaries
    	
84
    
	
 
    	
 
    	
 
    
	
ARTICLE 4        CONDITIONS
    	
85
    
	
 
    	
 
    	
 
    
	
Section 4.01
    	
Closing   Date
    	
85
    
	
 
    	
 
    	
 
    
	
Section 4.02
    	
Conditions   to Delayed Draw Term Loans
    	
88
    
	
 
    	
 
    	
 
    
	
ARTICLE 5        AFFIRMATIVE COVENANTS
    	
88
    
	
 
    	
 
    	
 
    
	
Section 5.01
    	
Financial   Statements and Other Reports
    	
88
    
	
 
    	
 
    	
 
    
	
Section 5.02
    	
Existence
    	
91
    
	
 
    	
 
    	
 
    
	
Section 5.03
    	
Payment   of Taxes
    	
92
    
	
 
    	
 
    	
 
    
	
Section 5.04
    	
Maintenance   of Properties
    	
92
    
	
 
    	
 
    	
 
    
	
Section 5.05
    	
Insurance
    	
92
    
	
 
    	
 
    	
 
    
	
Section 5.06
    	
Inspections
    	
92
    
	
 
    	
 
    	
 
    
	
Section 5.07
    	
Maintenance   of Book and Records
    	
93
    
	
 
    	
 
    	
 
    
	
Section 5.08
    	
Compliance   with Laws
    	
93
    
	
 
    	
 
    	
 
    
	
Section 5.09
    	
Environmental
    	
93
    
	
 
    	
 
    	
 
    
	
Section 5.10
    	
Designation   of Subsidiaries
    	
94
    
	
 
    	
 
    	
 
    
	
Section 5.11
    	
Use   of Proceeds
    	
95
    
	
 
    	
 
    	
 
    
	
Section 5.12
    	
Covenant   to Guarantee Obligations and Give Security
    	
95
    
	
 
    	
 
    	
 
    
	
Section 5.13
    	
Maintenance   of Ratings
    	
97
    
	
 
    	
 
    	
 
    
	
Section 5.14
    	
Further   Assurances
    	
97
    

 

ii

 

	
Section 5.15
    	
Post-Closing   Obligations
    	
97
    
	
 
    	
 
    	
 
    
	
ARTICLE 6        NEGATIVE COVENANTS
    	
97
    
	
 
    	
 
    	
 
    
	
Section 6.01
    	
Indebtedness
    	
98
    
	
 
    	
 
    	
 
    
	
Section 6.02
    	
Liens
    	
102
    
	
 
    	
 
    	
 
    
	
Section 6.03
    	
No   Further Negative Pledges; Burdensome Agreements
    	
105
    
	
 
    	
 
    	
 
    
	
Section 6.04
    	
Restricted   Payments; Restricted Debt Payments
    	
106
    
	
 
    	
 
    	
 
    
	
Section 6.05
    	
Restrictions   on Subsidiary Distributions
    	
109
    
	
 
    	
 
    	
 
    
	
Section 6.06
    	
Investments
    	
110
    
	
 
    	
 
    	
 
    
	
Section 6.07
    	
Fundamental   Changes; Disposition of Assets
    	
113
    
	
 
    	
 
    	
 
    
	
Section 6.08
    	
Transactions   with Affiliates
    	
116
    
	
 
    	
 
    	
 
    
	
Section 6.09
    	
Amendments   or Waivers of Organizational Documents
    	
118
    
	
 
    	
 
    	
 
    
	
Section 6.10
    	
Amendments   of or Waivers with Respect to Restricted Debt
    	
118
    
	
 
    	
 
    	
 
    
	
Section 6.11
    	
Permitted   Activities of Holdings
    	
118
    
	
 
    	
 
    	
 
    
	
Section 6.12
    	
Financial   Covenant
    	
119
    
	
 
    	
 
    	
 
    
	
Section 6.13
    	
Conduct   of Business
    	
121
    
	
 
    	
 
    	
 
    
	
Section 6.14
    	
Use   of Proceeds
    	
121
    
	
 
    	
 
    	
 
    
	
ARTICLE 7        EVENTS OF DEFAULT
    	
121
    
	
 
    	
 
    	
 
    
	
Section 7.01
    	
Events   of Default
    	
121
    
	
 
    	
 
    	
 
    
	
ARTICLE 8        THE ADMINISTRATIVE AGENT
    	
124
    
	
 
    	
 
    	
 
    
	
ARTICLE 9        MISCELLANEOUS
    	
131
    
	
 
    	
 
    	
 
    
	
Section 9.01
    	
Notices
    	
131
    
	
 
    	
 
    	
 
    
	
Section 9.02
    	
Waivers;   Amendments
    	
133
    
	
 
    	
 
    	
 
    
	
Section 9.03
    	
Expenses;   Indemnity
    	
137
    
	
 
    	
 
    	
 
    
	
Section 9.04
    	
Waiver   of Claim
    	
139
    
	
 
    	
 
    	
 
    
	
Section 9.05
    	
Successors   and Assigns
    	
139
    
	
 
    	
 
    	
 
    
	
Section 9.06
    	
Survival
    	
146
    
	
 
    	
 
    	
 
    
	
Section 9.07
    	
Counterparts;   Integration; Effectiveness
    	
147
    
	
 
    	
 
    	
 
    
	
Section 9.08
    	
Severability
    	
147
    
	
 
    	
 
    	
 
    
	
Section 9.09
    	
Right   of Setoff
    	
147
    
	
 
    	
 
    	
 
    
	
Section 9.10
    	
Governing   Law; Jurisdiction; Consent to Service of Process
    	
147
    
	
 
    	
 
    	
 
    
	
Section 9.11
    	
Waiver   of Jury Trial
    	
149
    
	
 
    	
 
    	
 
    
	
Section 9.12
    	
Headings
    	
149
    
	
 
    	
 
    	
 
    
	
Section 9.13
    	
Confidentiality
    	
149
    
	
 
    	
 
    	
 
    
	
Section 9.14
    	
No   Fiduciary Duty
    	
150
    
	
 
    	
 
    	
 
    
	
Section 9.15
    	
Several   Obligations
    	
151
    

 

iii

 

	
Section 9.16
    	
USA   PATRIOT Act
    	
151
    
	
 
    	
 
    	
 
    
	
Section 9.17
    	
Disclosure   of Agent Conflicts
    	
151
    
	
 
    	
 
    	
 
    
	
Section 9.18
    	
Appointment   for Perfection
    	
151
    
	
 
    	
 
    	
 
    
	
Section 9.19
    	
Interest   Rate Limitation
    	
151
    
	
 
    	
 
    	
 
    
	
Section 9.20
    	
Conflicts
    	
151
    
	
 
    	
 
    	
 
    
	
Section 9.21
    	
Release   of Guarantors
    	
151
    
	
 
    	
 
    	
 
    
	
Section 9.22
    	
Intercreditor   Agreement
    	
152
    
	
 
    	
 
    	
 
    
	
Section 9.23
    	
Acknowledgement   and Consent to Bail-In of EEA Financial Institutions
    	
152
    

 

iv

 

	
SCHEDULES:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Schedule 1.01(a)
    	
 
    	
—
    	
 
    	
Commitment Schedule
    
	
Schedule 1.01(b)
    	
 
    	
 
    	
 
    	
Dutch Auction
    
	
Schedule 1.01(c)
    	
 
    	
—
    	
 
    	
Material Real Estate Assets
    
	
Schedule 3.17
    	
 
    	
—
    	
 
    	
Capitalization and Subsidiaries
    
	
Schedule 5.15
    	
 
    	
—
    	
 
    	
Post-Closing Requirements
    
	
Schedule 6.01
    	
 
    	
—
    	
 
    	
Existing Indebtedness
    
	
Schedule 6.02
    	
 
    	
—
    	
 
    	
Existing Liens
    
	
Schedule 6.06
    	
 
    	
—
    	
 
    	
Existing Investments
    
	
Schedule 6.07(bb)
    	
 
    	
—
    	
 
    	
Contemplated Dispositions
    
	
Schedule 6.07(dd)
    	
 
    	
—
    	
 
    	
Sale and Lease-Back Transactions
    
	
Schedule 6.08
    	
 
    	
—
    	
 
    	
Transactions with Affiliates
    
	
Schedule 9.01
    	
 
    	
—
    	
 
    	
Borrower’s Website Address for Electronic Delivery
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBITS:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Exhibit A-1
    	
 
    	
—
    	
 
    	
Form of Assignment and Assumption
    
	
Exhibit A-2
    	
 
    	
—
    	
 
    	
Form of Affiliated Lender Assignment and   Assumption
    
	
Exhibit B
    	
 
    	
—
    	
 
    	
Form of Borrowing Request
    
	
Exhibit C
    	
 
    	
—
    	
 
    	
Form of Compliance Certificate
    
	
Exhibit D
    	
 
    	
—
    	
 
    	
Form of Interest Election Request
    
	
Exhibit E
    	
 
    	
—
    	
 
    	
Form of Perfection Certificate
    
	
Exhibit F
    	
 
    	
—
    	
 
    	
Form of Perfection Certificate Supplement
    
	
Exhibit G-1
    	
 
    	
—
    	
 
    	
Form of Promissory Note
    
	
Exhibit G-2
    	
 
    	
—
    	
 
    	
Form of Delayed Draw Term Note
    
	
Exhibit H
    	
 
    	
—
    	
 
    	
Form of Intellectual Property Security   Agreement
    
	
Exhibit I
    	
 
    	
—
    	
 
    	
Form of Guaranty Agreement
    
	
Exhibit J
    	
 
    	
—
    	
 
    	
Form of Security Agreement
    
	
Exhibit K-1
    	
 
    	
—
    	
 
    	
Form of U.S. Tax Compliance Certificate (For   Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax   Purposes)
    
	
Exhibit K-2
    	
 
    	
—
    	
 
    	
Form of U.S. Tax Compliance Certificate (For   Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax   Purposes)
    
	
Exhibit K-3
    	
 
    	
—
    	
 
    	
Form of U.S. Tax Compliance Certificate (For   Foreign Participants That Are Partnerships For U.S. Federal Income Tax   Purposes)
    
	
Exhibit K-4
    	
 
    	
—
    	
 
    	
Form of U.S. Tax Compliance Certificate (For   Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)
    
	
Exhibit L
    	
 
    	
—
    	
 
    	
Form of Solvency Certificate
    
	
Exhibit M
    	
 
    	
—
    	
 
    	
Form of Intercreditor Agreement
    

 

v

 

TERM LOAN AGREEMENT

 

TERM LOAN AGREEMENT, dated as of February 27, 2017 (this “Agreement”), by and among Hennessy Capital Acquisition Corp. II., a Delaware corporation, which upon the effectiveness of the Merger (as defined below) will be renamed as the new Daseke, Inc., a Delaware corporation (“Holdings”), HCAC Merger Sub Inc., a Delaware corporation (“Merger Sub”), which upon the effectiveness of the Merger will be merged with and into the existing Daseke, Inc., a Delaware corporation, and be renamed as Daseke Companies, Inc. (the “Target”), the Lenders (as defined below) from time to time party hereto and Credit Suisse AG, Cayman Islands Branch (“Credit Suisse”), as administrative agent and collateral agent for the Lenders (in its capacity as administrative and collateral agent, the “Administrative Agent”).

 

RECITALS

 

A.                                    Pursuant to the terms of the Acquisition Agreement, on the Closing Date, Merger Sub, a wholly-owned subsidiary of Holdings, will merge (the “Merger”) with and into the Target, with the Target as the survivor of the Merger.

 

B.                                    To fund a portion of the consideration for the Acquisition, the Borrower (a) has requested that the Lenders extend Initial Term Loans under this Agreement on the Closing Date in an original aggregate principal amount equal to $250,000,000 and (b) intends to enter into an asset-based credit facility under the ABL Credit Agreement in an aggregate principal amount of $70,000,000, subject to increase as provided therein.

 

C.                                    The Borrower has also requested that the Lenders provide a Delayed Draw Term Commitment in an aggregate principal amount of $100,000,000, which may be utilized subject to the terms and conditions herein. The Delayed Draw Term Loans shall be deemed to be an issuance of Initial Term Loans and shall be part of the same Class of Term Loans as the Initial Term Loans.

 

D.                                    The Lenders are willing to extend such credit to the Borrower on the terms and subject to the conditions set forth herein.  Accordingly, the parties hereto agree as follows:

 

ARTICLE 1                              DEFINITIONS

 

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

 

“ABL Collateral Agent” means the collateral agent under any ABL Facility.

 

“ABL Credit Agreement” means the Fifth Amended and Restated Revolving Credit and Security Agreement, dated as of February 27, 2017, among, inter alios, Holdings, the Borrower, PNC Bank, National Association, as administrative agent, and the lenders from time to time party thereto, as the same may be amended, amended and restated, modified, replaced or refinanced as permitted under the Intercreditor Agreement.

 

“ABL Facility” means the asset based revolving credit facility governed by the ABL Credit Agreement, as the same may be amended, amended and restated, modified, replaced or refinanced as permitted in accordance with the Intercreditor Agreement.

 

“ABL Facility Priority Collateral” has the meaning set forth in the Intercreditor Agreement.

 

 

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

 

“Acceptable Intercreditor Agreement” means the Intercreditor Agreement or another intercreditor agreement that is reasonably satisfactory to the Administrative Agent.

 

“ACH” means automated clearing house transfers.

 

“Acquisition” means the Merger and the other transactions contemplated by the Acquisition Agreement.

 

“Acquisition Agreement” means that certain Agreement and Plan of Merger, dated as of December 22, 2016, by and among, inter alios, Holdings, Merger Sub, the Target and certain of the shareholders of the Target, including all annexes, exhibits and schedules thereto (including the disclosure letter in respect thereof), as the same may be amended, supplemented or otherwise modified from time to time, but without giving effect to any amendment, waiver or consent by Holdings or the Merger Sub that is materially adverse to the interests of the Arrangers or the Initial Lenders in their respective capacities as such without the consent of the Arrangers, such consent not to be unreasonably withheld, delayed or conditions.

 

“Additional Agreement” has the meaning assigned to such term in Article 8.

 

“Additional Lender” has the meaning assigned to such term in Section 2.19(b).

 

“Additional Term Lender” mean any Lender with an Additional Term Loan Commitment or an outstanding Additional Term Loan.

 

“Additional Term Loan Commitments” means any term commitment added pursuant to Section 2.19, 2.20 and/or 9.02(c).

 

“Additional Term Loans” means any term loan added pursuant to Section 2.19, 2.20 and/or 9.02(c)(i).

 

“Adjusted Eurodollar Rate” means, with respect to any Eurodollar Rate Borrowing for any Interest Period, an interest rate per annum equal to the greater of (i) the Eurodollar Rate determined under clause (a) of the definition of “Eurodollar Rate” for such Interest Period, multiplied by the Statutory Reserve Rate and (ii) 1.00% per annum.  The Adjusted Eurodollar Rate for any Eurodollar Rate Borrowing that includes the Statutory Reserve Rate as a component of the calculation will be adjusted automatically with respect to all such Eurodollar Rate Borrowings then outstanding as of the effective date of any change in the Statutory Reserve Rate.

 

“Administrative Agent” has the meaning assigned to such term in the preamble to this Agreement.

 

“Administrative Questionnaire” has the meaning assigned to such term in Section 2.19(d).

 

“Adverse Proceeding” means any action, suit, order, proceeding (whether administrative, judicial or otherwise), governmental investigation or arbitration (whether or not purportedly on behalf of the Borrower or any of its Restricted Subsidiaries), whether at law or in equity, or before or by any Governmental Authority, domestic or foreign (including any Environmental Claim), whether pending or,

 

2

 

to the knowledge of the Borrower or any of its Restricted Subsidiaries, threatened in writing, against or affecting the Borrower or any of its Restricted Subsidiaries or any property of the Borrower or any of its Restricted Subsidiaries.

 

“Affiliate” means, as applied to any Person, any other Person directly or indirectly Controlling, Controlled by, or under common Control with, that Person.  None of the Administrative Agent, the Arrangers, any Lender (other than any Affiliated Lender) or any of their respective Affiliates shall be considered an Affiliate of Holdings or any subsidiary thereof.

 

“Affiliated Lender” means any Affiliate of Holdings or the Borrower (other than Holdings, the Borrower and any subsidiary of the Borrower).

 

“Affiliated Lender Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Affiliated Lender (with the consent of any party whose consent is required by Section 9.05) and accepted by the Administrative Agent in the form of Exhibit A-2 or any other form approved by the Administrative Agent and the Borrower.

 

“Affiliated Lender Cap” has the meaning assigned to such term in Section 9.05(g)(iv).

 

“Agreement” has the meaning assigned to such term in the preamble to this Term Loan Agreement.

 

“Alternate Base Rate” means, for any day, a rate per annum equal to the highest of (a) the Federal Funds Effective Rate in effect on such day plus 0.50%, (b)  the Eurodollar Rate (as determined under clause (b) of the definition of “Eurodollar Rate”) plus 1.00%, (c) the Prime Rate and (d) 2.00%.  Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the Eurodollar Rate, as the case may be, shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or the Eurodollar Rate, as the case may be.

 

“Applicable Percentage” means, with respect to any Term Lender of any Class, a percentage equal to a fraction the numerator of which is the aggregate outstanding principal amount of the Term Loans and unused Additional Term Loan Commitments of such Term Lender under the applicable Class and the denominator of which is the aggregate outstanding principal amount of the Term Loans and unused Term Commitments of all Term Lenders under the applicable Class.

 

“Applicable Rate” means, for any day, with respect to an Initial Term Loan, a percentage per annum equal to 4.50% for ABR Loans and 5.50% for Eurodollar Rate Term Loans.

 

“Approved Fund” means, with respect to any Lender, any Person (other than a natural Person or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person) that is engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities and is administered, advised or managed by (a) such Lender, (b) any Affiliate of such Lender or (c) any entity or any Affiliate of any entity that administers, advises or manages such Lender.

 

“Arrangers” means Credit Suisse Securities (USA) LLC, UBS Securities LLC and PNC Bank, National Association.

 

“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 9.05), and accepted

 

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by the Administrative Agent in the form of Exhibit A-1 or any other form approved by the Administrative Agent and the Borrower.

 

“Available Amount” means, at any time, an amount equal to, without duplication:

 

(a)                     the sum of:

 

(i)                         $25,000,000; plus

 

(ii)                      the Retained Excess Cash Flow Amount; plus

 

(iii)                   the amount of any capital contribution or the proceeds of any issuance of Capital Stock (other than any amounts (x) constituting a Cure Amount, an Available Excluded Contribution Amount or proceeds of an issuance of Disqualified Capital Stock, (y) received from the Borrower or any Restricted Subsidiary or (z) otherwise applied to make Restricted Payments or Restricted Debt Payments hereunder) received as cash common equity by the Borrower, from and including the day immediately following the Closing Date; plus

 

(iv)                  the cash proceeds of any Indebtedness or Disqualified Capital Stock, in each case, of the Borrower or any of its Restricted Subsidiaries issued after the Closing Date (other than Indebtedness or such Disqualified Capital Stock issued to the Borrower or any of its Restricted Subsidiaries), which has been converted into or exchanged for Capital Stock of the Borrower or any Parent Company that does not constitute Disqualified Capital Stock, in each case, during the period from and including the day immediately following the Closing Date through and including such time; plus

 

(v)                     the net cash proceeds received by the Borrower or any Restricted Subsidiary during the period from and including the day immediately following the Closing Date through and including such time in connection with the Disposition to any Person (other than the Borrower or any Restricted Subsidiary) of any Investment made pursuant to Section 6.06(q)(i) (in an amount not to exceed the original amount of such Investment); plus

 

(vi)                  to the extent not already reflected as a return of capital with respect to such Investment for purposes of determining the amount of such Investment, the proceeds received by the Borrower of any of its Restricted Subsidiaries during the period from and including the day immediately following the Closing Date through and including such time in connection with cash returns, cash profits, cash distributions and similar cash amounts, including cash principal repayments of loans, in each case received in respect of any Investment made after the Closing Date pursuant to Section 6.06(q)(i) (in an amount not to exceed the original amount of such Investment); plus

 

(vii)               without duplication, (A) the amount of any Investments by the Borrower or any Restricted Subsidiary pursuant to Section 6.06(q)(i) in any Unrestricted Subsidiary (in an amount not to exceed the original amount of such Investment) that has been re-designated as a Restricted Subsidiary or has been merged, consolidated or amalgamated with or into, or is liquidated, wound up or dissolved into, the Borrower or any Restricted Subsidiary and (B) the fair market value (as reasonably determined by the Borrower) of the property or assets of any Unrestricted Subsidiary that have been

 

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transferred, conveyed or otherwise distributed (in an amount not to exceed the original amount of the Investment in such Unrestricted Subsidiary) to the Borrower or any Restricted Subsidiary, in each case, during the period from and including the day immediately following the Closing Date through and including such time; plus

 

(viii)            the amount of any Declined Proceeds; minus

 

(b)                     an amount equal to the sum of (i) Restricted Payments made pursuant to Section 6.04(a)(iii)(A), plus (ii) Investments made pursuant to Section 6.06(q)(i), in each case, after the Closing Date and prior to such time, or contemporaneously therewith;

 

provided that, except with respect to amounts described in clauses (a)(i) and (a)(iii) above, the use of any amounts hereunder shall not be available to the extent that (x) any Event of Default has occurred and is continuing or (y) the Borrower would not be in compliance, on a Pro Forma Basis following the utilization of such amounts, with a Total Leverage Ratio of 3.25:1.00 or lower.

 

“Available Excluded Contribution Amount” means, at any time, an amount equal to (a) the aggregate amount of Cash or Cash Equivalents, but excluding any Cure Amount, received by the Borrower or any of its Restricted Subsidiaries after the Closing Date from:

 

(1)                                 contributions in respect of Qualified Capital Stock (other than any amounts received from the Borrower), and

 

(2)                                 the sale of Qualified Capital Stock of the Borrower (other than (i) to the Borrower or pursuant to any management equity plan or stock option plan or any other management or employee benefit plan and (ii) any amounts otherwise applied to make Restricted Payments or Restricted Debt Payments hereunder),

 

in each case, designated as an Available Excluded Contribution Amount pursuant to a certificate of a Responsible Officer of the Borrower delivered to the Administrative Agent on or promptly after the date the relevant capital contribution is made or the relevant proceeds are received, as the case may be, and which are, for the avoidance of doubt, excluded from the calculation of the Available Amount; minus (b) an amount equal to the sum of (i) Restricted Payments made pursuant to Section 6.04(a)(iii)(B), plus (ii) Investments made pursuant to Section 6.06(q)(ii), in each case, after the Closing Date and prior to such time or contemporaneously therewith.

 

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

 

“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

“Banking Services” means each and any of the following bank services provided to any Loan Party: commercial credit cards,  stored value cards, purchasing cards, treasury management services, netting services, overdraft protections, check drawing services and automated payment services (including depository, overdraft, controlled disbursement, ACH transactions, return items and interstate depository network services) employee credit card programs, cash pooling services, dealer incentive, supplier finance or similar programs, current account facilities and arrangements or services similar to any of the foregoing and/or otherwise in connection with Cash management and Deposit Accounts.

 

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“Banking Services Obligations” means any and all obligations of any Loan Party, whether absolute or contingent and however and whenever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor) (a) under any arrangement that is in effect on the Closing Date between any Loan Party and a counterparty that is (or is an Affiliate of) the Administrative Agent, any Lender or any Arranger as of the Closing Date or (b) under any arrangement that is entered into after the Closing Date by any Loan Party with any counterparty that is (or is an Affiliate of) the Administrative Agent, any Lender or any Arranger at the time such arrangement is entered into, in each case, in connection with Banking Services, in each case, that have been designated to the Administrative Agent in writing by the Borrower as being Banking Services Obligations for the purposes of the Loan Documents, it being understood that each counterparty thereto shall be deemed (A) to appoint the Administrative Agent as its agent under the applicable Loan Documents and (B) to agree to be bound by the provisions of Article 8, Section 9.03, Section 9.10 and the Intercreditor Agreement as if it were a Lender.

 

“Bankruptcy Code” means Title 11 of the United States Code (11 U.S.C. § 101 et seq.).

 

“Bankruptcy Plan” has the meaning set forth in Section 9.05(g)(viii).

 

“Bona Fide Debt Fund” has the meaning set forth in the definition of “Disqualified Institution”.

 

“Borrower” means initially, Merger Sub, immediately after giving effect to the Merger, the Target, and any Successor Borrower from time to time party hereto.

 

“Borrower Materials” has the meaning set forth in Section 5.01.

 

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

 

“Borrowing Request” means a request by the Borrower for a Borrowing in accordance with Section 2.03 and substantially in the form attached hereto as Exhibit B or such other form that is reasonably acceptable to the Administrative Agent and the Borrower.

 

“Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by law to remain closed; provided that when used in connection with a Eurodollar Rate Loan, the term “Business Day” shall also exclude any day on which banks are not open for dealings in Dollars in the London interbank market.

 

“Capital Lease” means, as applied to any Person, any lease of any property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person.

 

“Capital Stock” means any and all shares, interests, participations, preferred equity certificates or other equivalents (however designated) of capital stock of a corporation or limited liability company (if applicable), any and all equivalent ownership interests in a Person (other than a corporation or limited liability company, if applicable), including partnership interests and membership interests, and any and all warrants, profit participation interests, rights or options to purchase or other arrangements or rights to acquire any of the foregoing, but excluding, for the avoidance of doubt, any Indebtedness convertible into or exchangeable for any of the foregoing.

 

“Captive Insurance Subsidiary” means any Restricted Subsidiary of the Borrower that is subject to regulation as an insurance company (or any Restricted Subsidiary thereof).

 

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“Cash” means money, currency or a credit balance in any Deposit Account.

 

“Cash Equivalents” means, as at any date of determination, (a) securities (i) issued or directly and unconditionally guaranteed or insured as to interest and principal by the U.S. government or (ii) issued by any agency or instrumentality of the U.S., the obligations of which are backed by the full faith and credit of the U.S., in each case maturing within one year after such date and, in each case, repurchase agreements and reverse repurchase agreements relating thereto; (b) direct obligations issued by any state of the U.S., or any political subdivision of any such state or any public instrumentality thereof, in each case maturing within one year after such date and having, at the time of the acquisition thereof, a rating of at least A-2 from S&P or at least P-2 from Moody’s (or, if at any time neither S&P nor Moody’s shall be rating such obligations, an equivalent rating from another nationally recognized statistical rating organization) and, in each case, repurchase agreements and reverse repurchase agreements relating thereto; (c) commercial paper maturing no more than one year from the date of creation thereof and having, at the time of the acquisition thereof, a rating of at least A-2 from S&P or at least P-2 from Moody’s (or, if at any time neither S&P nor Moody’s shall be rating such obligations, an equivalent rating from another nationally recognized statistical rating agency); (d) deposits, money market deposits, time deposit accounts, certificates of deposit or bankers’ acceptances (or similar instruments) maturing within one year after such date and issued or accepted by any Lender or by any bank or trust company organized under, or authorized to operate as a bank or trust company under, the laws of the U.S., any state thereof or the District of Columbia or any political subdivision thereof and that has capital and surplus of not less than $250,000,000 and, in each case, repurchase agreements and reverse repurchase agreements relating thereto; (e) shares of any money market mutual fund that has (i)  substantially all of its assets invested in the types of investments referred to in clauses (a) through (d) above, (ii) net assets of not less than $500,000,000 and (iii) a rating of at least A-2 from S&P or at least P-2 from Moody’s; and (f) solely with respect to any Captive Insurance Subsidiary, any investment that such Captive Insurance Subsidiary is not prohibited to make in accordance with applicable law.

 

“Cash Equivalents” shall also include (x) investments of the type and maturity described in clauses (a) through (f) above of foreign obligors, which investments or obligors (or the parent companies thereof) have the ratings described in such clauses or equivalent ratings from comparable foreign rating agencies and (y) other short-term investments utilized by Foreign Subsidiaries in accordance with normal investment practices for cash management in investments analogous to the foregoing investments described in clauses (a) through (f) and in this paragraph.

 

“CFC” means a “controlled foreign corporation” within the meaning of Section 957 of the Code.

 

“CFC Holdco” means any Domestic Subsidiary that has no material assets (held directly or indirectly) other than the Capital Stock or Indebtedness of one or more CFCs or CFC Holdcos.

 

“Change in Law” means (a) the adoption or taking effect of any law, rule or regulation after the Closing Date, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the Closing Date or (c) compliance by any Lender (or, for purposes of Section 2.12(b), by any lending office of such Lender or by such Lender’s holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the Closing Date (other than any such request, guideline or directive to comply with any law, rule or regulation that was in effect on the Closing Date).  For purposes of this definition and Section 2.12, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder or issued in connection therewith or in 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 U.S. regulatory authorities, in each case pursuant to Basel III, shall in each case

 

7

 

described in clauses (a), (b) and (c) above, be deemed to be a Change in Law, regardless of the date enacted, adopted, issued or implemented.

 

“Change of Control” means the earliest to occur of:

 

(a)                     the acquisition by any Person or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act), including any group acting for the purpose of acquiring, holding or disposing of Securities (within the meaning of Rule 13d-5(b)(1) under the Exchange Act, but excluding any employee benefit plan and/or Person acting as the trustee, agent or other fiduciary or administrator therefor), other than one or more Permitted Holders, of Capital Stock representing more than the greater of (x) 35% of the total voting power of all of the outstanding voting stock of Holdings and (y) the percentage of the total voting power of all the outstanding voting stock of Holdings owned, directly or indirectly, by the Permitted Holders;

 

(b)                     occupation of a majority of the seats (other than vacant seats) on the board of directors of the Borrower by Persons who were not directors of the Holdings on the date of this Agreement, or nominated or appointed by the board of directors of the Holdings; or

 

(c)                      the Borrower ceasing to be a direct or indirect Wholly-Owned Subsidiary of Holdings.

 

“Charge” means any loss (as defined under GAAP), charge, fee, expense, cost, accrual or reserve of any kind.

 

“Charged Amounts” has the meaning assigned to such term in Section 9.19.

 

“Class”, when used with respect to (a) any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Initial Term Loans, Additional Term Loans of any series established as a separate “Class” pursuant to Section 2.19, 2.20 and/or 9.02(c) (b) any Commitment, refers to whether such Commitment is an Initial Term Commitment, an Additional Term Loan Commitment of any series established as a separate “Class” pursuant to Section 2.19, 2.20 and/or 9.02(c), and (c) any Lender, refers to whether such Lender has a Loan or Commitment of a particular Class.

 

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

 

“Code” means the Internal Revenue Code of 1986.

 

“Collateral” means any and all property of any Loan Party subject to a Lien under any Collateral Document and any and all other property of any Loan Party, now existing or hereafter acquired, that is or becomes subject to a Lien pursuant to any Collateral Document to secure the Secured Obligations.

 

“Collateral and Guarantee Requirement” means, at any time, subject to (x) the applicable limitations set forth in this Agreement and/or any other Loan Document and (y) the time periods (and extensions thereof) set forth in Section 5.12, the requirement that:

 

(a)                                 the Administrative Agent shall have received in the case of any Restricted Subsidiary that is required to become a Loan Party after the Closing Date (including by ceasing to be an Excluded Subsidiary):

 

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(i)                         (A) a joinder to the Loan Guaranty in substantially the form attached as an exhibit thereto, (B) a supplement to the Security Agreement in substantially the form attached as an exhibit thereto, (C) if the respective Restricted Subsidiary required to comply with the requirements set forth in this definition pursuant to Section 5.12 owns registrations of or applications for U.S. Patents, Trademarks and/or Copyrights that constitute Collateral, an Intellectual Property Security Agreement in substantially the form attached as Exhibit H hereto, (D) a completed Perfection Certificate, (E) Uniform Commercial Code financing statements in appropriate form for filing in such jurisdictions as the Administrative Agent may reasonably request and (F) an executed joinder to the Intercreditor Agreement in substantially the form attached as an exhibit thereto;

 

(ii)                      each item of Collateral that such Restricted Subsidiary is required to deliver under Section 4.02 of the Security Agreement (which, for the avoidance of doubt, shall be delivered within the time periods set forth in Section 5.12(a));

 

(b)                                 the Administrative Agent shall have received with respect to any Material Real Estate Assets (other than any Excluded Real Property), a Mortgage and any necessary UCC fixture filing in respect thereof, in each case together with, to the extent customary and appropriate (as reasonably determined by the Administrative Agent and the Borrower):

 

(i)                         evidence that (A) counterparts of such Mortgage have been duly executed, acknowledged and delivered and such Mortgage and any corresponding UCC or equivalent fixture filing are in form suitable for filing or recording in all filing or recording offices that the Administrative Agent may deem reasonably necessary in order to create a valid and subsisting Lien on such Material Real Estate Asset in favor of the Administrative Agent for the benefit of the Secured Parties, (B) such Mortgage and any corresponding UCC or equivalent fixture filings have been duly recorded or filed, as applicable, and (C) all filing and recording taxes and fees have been paid or otherwise provided for in a manner reasonably satisfactory to the Administrative Agent;

 

(ii)                      customary legal opinions of local counsel for the relevant Loan Party in the jurisdiction in which such Material Real Estate Asset is located as the Administrative Agent may reasonably request;

 

(iii)                   environmental assessments in form and scope reasonably satisfactory to the Administrative Agent; and

 

(iv)                  surveys, appraisals (if required under the Financial Institutions Reform Recovery and Enforcement Act of 1989, as amended, as determined by the Administrative Agent in its reasonable discretion) and “Life-of-Loan” flood certifications and any required borrower notices under Regulation H (together with evidence of federal flood insurance for any such Flood Hazard Property located in a flood hazard area); provided that the Administrative Agent may in its reasonable discretion accept any such existing certificate, appraisal or survey so long as such existing certificate or appraisal satisfies any applicable local law requirements.

 

“Collateral Documents” means, collectively, (i) the Security Agreement, (ii) each Mortgage, (iii) each Intellectual Property Security Agreement, (iv) any supplement to any of the foregoing delivered to the Administrative Agent pursuant to the definition of “Collateral and Guarantee Requirement”, (v) the Perfection Certificate and any Perfection Certificate Supplement and (vi) each of the other instruments and documents pursuant to which any Loan Party grants a Lien on any Collateral as security for payment of the Secured Obligations.

 

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“Commercial Tort Claim” has the meaning set forth in Article 9 of the UCC.

 

“Commitment” means, with respect to each Lender, such Lender’s Initial Term Loan Commitment, Delayed Draw Term Commitment and Additional Term Loan Commitment, as applicable, in effect as of such time.

 

“Commitment Schedule” means the Schedule attached hereto as Schedule 1.01(a).

 

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.).

 

“Company Competitor” means any competitor of the Borrower and/or any of its subsidiaries and/or the Target and/or any of its subsidiaries.

 

“Compliance Certificate” means a Compliance Certificate substantially in the form of Exhibit C.

 

“Confidential Information” has the meaning assigned to such term in Section 9.13.

 

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

 

“Consolidated Adjusted EBITDA” means, as to any Person on a consolidated basis for any period, the sum of:

 

(a)                                 Consolidated Net Income for such period; plus

 

(b)                                 the sum, without duplication, of (to the extent deducted (and not added back) in calculating Consolidated Net Income, other than in respect of clauses (ix), (xv) and (xvi) below) the amounts of:

 

(i)                         Taxes paid and any provision for Taxes, including income, capital, state, franchise and similar Taxes, property Taxes and foreign withholding Taxes (including (i) penalties and interest related to any such Tax or arising from any Tax examination and (ii) pursuant to any Tax sharing arrangement, in each case as permitted by Section 6.04(a)(i)(A) or Section 6.04(a)(i)(B)) of such Person paid or accrued during such period;

 

(ii)                      consolidated interest expense whether paid or accrued and whether or not capitalized in respect of such period (including (A) fees and expenses paid or payable to the Administrative Agent in connection with its services hereunder (and to each agent under any ABL Facility in connection with its services thereunder), (B) amortization of debt issuance cost and/or original issue discount resulting from the issuance of Indebtedness at less than par and other bank, administrative agency (or trustee) and financing fees, (C) the interest component of Capital Lease obligations, (D) costs of surety bonds in connection with financing activities, (E) commissions, discounts and other fees and charges owed with respect to letters of credit, bank guarantees, bankers’ acceptances, ancillary facilities or any similar facilities or financing and hedging agreements and (F) any interest cost or expected return on any plan assets related to any post-employment benefit scheme or any other pension-related items and any curtailments or settlements related thereto);

 

(iii)                   (A) depreciation, amortization (including, without limitation, amortization of goodwill, software and other intangible assets), (B) any impairment Charge (including any non-cash Charge related to the impairment of goodwill and other assets) and (C)

 

10

 

any asset write-off and/or write-down (other than write-offs or write-downs of inventory and accounts receivable in the ordinary course of business);

 

(iv)                  (A) Transaction Costs (including costs in connection with payments related to the rollover, acceleration or payout of equity interest and stock options held by management and members of the board of the Target and its subsidiaries), (B) Charges incurred (1) in connection with the consummation of any transaction (or any transaction proposed and not consummated), not prohibited by this Agreement, including any issuance or offering of Capital Stock any Investment, any Disposition, any recapitalization, any merger, consolidation or amalgamation, any option buyout or any incurrence, repayment, refinancing, amendment or modification of Indebtedness (including any amortization or write-off of debt issuance or deferred financing costs, premiums and prepayment penalties) or similar transaction and/or (2) in connection with any Qualifying Offering (whether or not consummated) and (C) the amount of any Charge that is actually reimbursed or reimbursable by one or more third parties pursuant to indemnification or reimbursement provisions or similar agreements or insurance; provided that in respect of any Charge that is added back in reliance on clause (C) above, the relevant Person in good faith expects to receive reimbursement for such fee, cost, expense or reserve within the next four Fiscal Quarters (it being understood that to the extent any reimbursement amount is not actually received within such Fiscal Quarters, such reimbursement amount shall be deducted in calculating Consolidated Adjusted EBITDA for such Fiscal Quarters);

 

(v)                     any Charge attributable to the undertaking and/or implementation of cost savings, operating expense reductions and/or synergies (including, without limitation, in connection with any integration or transition, any reconstruction, decommissioning, recommissioning or reconfiguration of fixed assets for alternative uses, any facility opening and/or pre-opening, any inventory optimization program and/or any curtailment), any business optimization Charge, any restructuring Charge (including any Charge relating to any Tax restructuring), any Charge relating to the closure or consolidation of any facility (including but not limited to severance, rent termination costs, moving costs and legal costs), any systems implementation Charge, any Charge relating to entry into a new market, any Charge relating to any strategic initiative, any consulting Charge, any signing Charge, any retention or completion bonus, any expansion and/or relocation Charge, any Charge associated with any modification to any pension and post-retirement employee benefit plan, any Charge associated with new systems design, any implementation Charge and/or any project startup Charge; provided, that the aggregate amount of all such Charges under this clause (v) and the amounts under clause (ix) below that are included in Consolidated Adjusted EBITDA in any four consecutive Fiscal Quarter period shall not exceed 25% of Consolidated Adjusted EBITDA for such period (in each case, calculated before giving effect to any such add-backs);

 

(vi)                  other add-backs and adjustments reflected in the model delivered to the Arrangers on November 16, 2016;

 

(vii)               the amount of any Charge or deduction associated with any subsidiary of such Person attributable to non-controlling interests or minority interests of third parties;

 

(viii)            the amount of any loss from (i) extraordinary items and (ii) non-recurring (including non-recurring credit expense) or unusual items (including costs of, and payments of, (x) litigation expenses, actual or prospective legal settlements, fines, judgments or orders, (y) recruitment and hiring bonuses and legal fees and Taxes related to issuances of significant options and (z) corporate reorganizations);

 

11

 

(ix)                  the amount of any expected cost savings, operating expense reductions and synergies (collectively, “Expected Cost Savings”) (net of actual amounts realized) that are reasonably identifiable and factually supportable (in the good faith determination of such Person, as certified by a Responsible Officer of such Person) related to (A) the Transactions and (B) after the Closing Date, any permitted Investment, Disposition, operating improvement, restructuring, cost savings initiative, any similar initiative and/or specified transaction (any such operating improvement, restructuring, cost savings initiative or similar initiative or specified transaction, a “Cost Saving Initiative”); (I) such cost savings, operating expense reductions and synergies are reasonably expected to be realized within 18 months of the event giving rise thereto and (II) the aggregate amount of all such add-backs under this clause (ix) and clause (v) above, that are included in Consolidated Adjusted EBITDA in any four consecutive Fiscal Quarter period shall not exceed 25% of Consolidated Adjusted EBITDA for such period (in each case, calculated before giving effect to any such add-backs);

 

(x)                     (A) any Charge incurred as a result of, in connection with or pursuant to any management equity plan, profits interest or stock option plan or any other management or employee benefit plan or agreement, any pension plan (including any post-employment benefit scheme which has been agreed to with the relevant pension trustee), any stock subscription or shareholder agreement, any employee benefit trust, any employee benefit scheme or any similar equity plan or agreement, (B) any Charges in connection with the rollover (including any deferred compensation agreement), acceleration or payout (including in the form of dividends or distributions) of Capital Stock held by management and members of the board of directors of any Parent Company, Holdings, Borrower  and/or any of its subsidiaries, in each case, to the extent that (in the case of any Cash Charges) such Charges, are funded with net Cash proceeds contributed to the Subject Person as a capital contribution or as a result of the sale or issuance of Capital Stock (other than Disqualified Capital Stock) of the Subject Person and (C) the amount of travel expenses, payroll taxes, indemnification payments, director’s fees and any other Charges incurred in connection with, or amounts payable to, any director of the board of Holdings or its parent entities in connection with such director serving as a member of such board of directors and performing his or her duties in respect thereof;

 

(xi)                  any earn-out obligation incurred or accrued in connection with the Acquisition, any acquisition and/or other Investment permitted pursuant to Section 6.06 and paid or accrued during such period and on similar acquisitions and Investments completed prior to the Closing Date;

 

(xii)               Public Company Costs;

 

(xiii)            any non-cash Charge (provided that to the extent that any such non-cash Charge represents an accrual or reserve for any potential cash item in any future period, (A) such Person may elect not to add back such non-cash Charge in the current period or (B) to the extent such Person elects to add back such non-cash Charge, the cash payment in respect thereof in such future period shall be subtracted from Consolidated Adjusted EBITDA to such extent);

 

(xiv)           the amount of any Charge in connection with a single or one-time event, including, in connection with (A) the Acquisition, any acquisition or similar Investment permitted hereunder after the Closing Date (including without limitation, legal, accounting and other professional fees and expenses incurred in connection with acquisitions and other Investments made prior to the Closing Date), (B) the consolidation, closing or reconfiguration of any facility during such period and (C) one-time consulting costs;

 

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(xv)              to the extent not otherwise included in Consolidated Net Income, proceeds of business interruption insurance in an amount representing the earnings for the applicable period that such proceeds are intended to replace (whether or not received so long as such Person in good faith expects to receive the same within the next four Fiscal Quarters (it being understood that to the extent not actually received within such Fiscal Quarters, such proceeds shall be deducted in calculating Consolidated Adjusted EBITDA for such Fiscal Quarters)); and

 

(xvi)           Cash actually received (or any netting arrangements resulting in reduced Cash expenditures) during such period, and not included in Consolidated Net Income, to the extent that the non-Cash gain relating to such Cash receipt or netting arrangement was deducted in the calculation of Consolidated Adjusted EBITDA pursuant to clause (c)(i) below for any previous period and not added back; minus

 

(c)                                  to the extent such amounts increase Consolidated Net Income:

 

(i)                         non-Cash gains or income; provided that if any non-Cash gain or income relates to potential Cash items in any future period, such Person may determine not to deduct such non-Cash gain or income in the current period;

 

(ii)                      the amount added back to Consolidated Adjusted EBITDA pursuant to clause (b)(iv)(C) above (as described in such clause) to the extent such reimbursement amounts were not received within the time period required by such clause;

 

(iii)                   the amount added back to Consolidated Adjusted EBITDA pursuant to clause (b)(xv) above (as described in such clause) to the extent such business interruption insurance proceeds were not received within the time period required by such clause;

 

(iv)                  to the extent that such Person added back the amount of any non-Cash charge to Consolidated Adjusted EBITDA pursuant to clause (b)(xiii) above in respect of any previous period, the subsequent cash payment in respect thereof;

 

(v)                     the amount of any gain from (i) extraordinary items and (ii) non-recurring (including non-recurring credit expense) or unusual items (including costs of, and payments of, (x) litigation expenses, actual or prospective legal settlements, fines, judgments or orders, (y) recruitment and hiring bonuses and legal fees and Taxes related to issuances of significant options and (z) corporate reorganizations); and

 

(vi)                  the amount of any gain in connection with a single or one-time event.

 

Notwithstanding anything to the contrary, it is agreed, that for the purpose of calculating the Total Leverage Ratio, the First Lien Leverage Ratio and the Secured Leverage Ratio for any period that includes the Fiscal Quarters ended on or about March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016, (i) Consolidated Adjusted EBITDA for the Fiscal Quarter ended on or about March 31, 2016 shall be deemed to be $22,200,000, (ii) Consolidated Adjusted EBITDA for the Fiscal Quarter ended on or about June 30, 2016 shall be deemed to be $25,000,000, (iii) Consolidated Adjusted EBITDA for the Fiscal Quarter ended on or about September 30, 2016 shall be deemed to be $24,800,000, and (iv) Consolidated Adjusted EBITDA for the Fiscal Quarter ended on or about December 31, 2016 shall be deemed to be $16,600,000, in each case, as adjusted on a Pro Forma Basis, as applicable.

 

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Unless otherwise stated or context clearly dictates otherwise, references to Consolidated Adjusted EBITDA shall refer to the Consolidated Adjusted EBITDA of the Borrower and its Restricted Subsidiaries.

 

“Consolidated First Lien Debt” means, as to any Person at any date of determination, the aggregate principal amount of Consolidated Total Debt outstanding on such date that is secured by a Lien on any asset of such Person or its Restricted Subsidiaries that is not, by its terms, contractually subordinated to the Lien securing the Obligations (and including, for the avoidance of doubt, Consolidated Total Debt under any ABL Facility).

 

“Consolidated Net Income” means, as to any Person (the “Subject Person”) for any period, the net income (or loss) of the Subject Person on a consolidated basis for such period taken as a single accounting period determined in conformity with GAAP; provided that there shall be excluded, without duplication,

 

(a)                     the cumulative effect of any change in accounting principles during such period,

 

(b)                     any net gains or Charges with respect to (i) disposed, abandoned, closed and discontinued property or operation (other than, at the option of the Borrower, any asset, property or operation pending the disposal, abandonment, divestiture and/or termination thereof) and any accretion or accrual of discounted liabilities and on the disposal of disposed, abandoned, and discontinued operations, (ii) any disposal, abandonment, divestiture and/or discontinuation of any asset, property or operation and/or (iii) any facilities, plants or distribution centers that have been closed during such period,

 

(c)                      gains, income, losses, expenses or charges (less all fees and expenses chargeable thereto) attributable to any sales or dispositions of Capital Stock or assets (including asset retirement costs) or returned surplus assets of any employee benefit plan outside of the ordinary course of business,

 

(d)                     (i) the income of any Person (other than a subsidiary of the Subject Person) in which any other Person (other than the Subject Person or any of its subsidiaries) has a joint interest, except to the extent of the amount of dividends or distributions or other payments (including any ordinary course dividend, distribution or other payment) paid in Cash (or to the extent converted into Cash) to the Subject Person or any of its subsidiaries by such Person during such period and (ii) the loss of any Person (other than a subsidiary of the Subject Person) in which any other Person (other than the Subject Person or any of its subsidiaries) has a joint interest, other than to the extent that the Subject Person or any of its subsidiaries has contributed Cash or Cash Equivalents to such person in respect of such loss during such period,

 

(e)                      effects of adjustments (including the effects of such adjustments pushed down to the Subject Person and its Restricted Subsidiaries) in the Subject Person’s consolidated financial statements pursuant to GAAP (including in the inventory, property and equipment, software, goodwill, intangible assets, in-process research and development, deferred revenue, deferred rent and debt line items thereof) resulting from the application of recapitalization accounting or acquisition accounting, as the case may be, in relation to the Transactions or any consummated acquisition or the amortization or write-off of any amounts thereof,

 

(f)                       any net income or loss (less all fees and expenses or charges related thereto) attributable to the early extinguishment of Indebtedness (and the termination of any associated Hedge Agreements),

 

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(g)                      any (i) write-off or amortization made in such period of deferred financing costs and premiums paid or other expenses incurred directly in connection with any early extinguishment of Indebtedness, (ii) good will or other asset impairment charges, write-offs or write-downs or (iii) amortization of intangible assets,

 

(h)                     any non-cash compensation charge, cost, expense, accrual or reserve, including any such charge, cost, expense, accrual or reserve arising from the grant of stock appreciation or similar rights, stock options, restricted stock or other equity incentive programs, and any Cash charges associated with the rollover, acceleration or payment of management equity in connection with the Transactions,

 

(i)                         any fees, commissions and expenses incurred during such period, or any amortization or write-off thereof for such period in connection with any Investment, Disposition, incurrence or repayment of Indebtedness, issuance of Capital Stock, refinancing transaction or amendment or modification of any Indebtedness (in each case, including any such transaction consummated prior to the Closing Date and any such transaction undertaken but not completed) and any charges or non-recurring merger costs incurred during such period as a result of any such transaction,

 

(j)                        accruals and reserves that are established or adjusted within 12 months after (i) the Closing Date that are so required to be established or adjusted as a result of the Transactions and (ii) the date of any Permitted Acquisition or other similar Investment permitted pursuant to Section 6.06, in each case, in accordance with GAAP or as a result of the adoption or modification of accounting policies,

 

(k)                     any realized or unrealized foreign currency exchange gain or loss (including any currency re-measurement of Indebtedness, any net gain or loss resulting from Hedge Agreements for currency exchange risk associated with the foregoing or any other currency related risk and any gain or loss resulting from intercompany Indebtedness),

 

(l)                         any unrealized gain or loss in respect of the fair market value of (x) any obligation under any Hedge Agreement as determined in accordance with GAAP and/or (y) any other derivative instrument pursuant to, in the case of this clause (y), FASB ASC No. 815 — Derivatives and Hedging,

 

(m)                 solely for the purpose of determining the Available Amount, the net income for such period of any subsidiary (other than any Subsidiary Guarantor), to the extent the declaration or payment of dividends or similar distributions by that subsidiary of its net income is not at the date of determination permitted without any prior governmental approval (which has not been obtained) or, directly or indirectly, by the operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule, or governmental regulation applicable to that subsidiary or its stockholders, unless such restriction with respect to the payment of dividends or similar distributions has been legally waived; provided that Consolidated Net Income will be increased by the amount of dividends or other distributions or other payments actually paid in cash (or to the extent converted into cash) to the Subject Person or a subsidiary thereof in respect of such period, to the extent not already included therein, and

 

(n)                     solely for purposes of calculating Excess Cash Flow, the income or loss of any Person accrued prior to the date on which such Person becomes a Restricted Subsidiary of such Person or is merged into or consolidated with such Person or any Restricted Subsidiary of such

 

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Person or the date that such other Person’s assets are acquired by such Person or any Restricted Subsidiary of such Person.

 

Unless otherwise stated or context clearly dictates otherwise, references to Consolidated Net Income shall refer to the Consolidated Net Income of the Borrower and its Restricted Subsidiaries.

 

“Consolidated Secured Debt” means, as to any Person at any date of determination, the aggregate principal amount of Consolidated Total Debt outstanding on such date that is secured by a Lien on any asset or property of such Person or its Restricted Subsidiaries.

 

“Consolidated Total Assets” means, at any date, all amounts that would, in conformity with GAAP, be set forth opposite the caption “total assets” (or any like caption) on a consolidated balance sheet of the applicable Person at such date.

 

“Consolidated Total Debt” means, as to any Person at any date of determination, the aggregate principal amount of all (a) debt for borrowed money, (b) Capital Leases and (c) purchase money Indebtedness of such Person and its Restricted Subsidiaries on a consolidated basis; provided that “Consolidated Total Debt” shall be calculated (x) net of the Unrestricted Cash Amount and (y) excluding any obligation, liability or indebtedness of such Person if, upon or prior to the maturity thereof, such Person has irrevocably deposited with the proper Person in trust or escrow the necessary funds (or evidences of indebtedness) for the payment, redemption or satisfaction of such obligation, liability or indebtedness, and thereafter such funds and evidences of such obligation, liability or indebtedness or other security so deposited are not included in the calculation of the Unrestricted Cash Amount; provided further that “Consolidated Total Debt” shall not be reduced pursuant to clause (x) by more than $5,000,000.

 

“Consolidated Working Capital” means, as at any date of determination, the excess of Current Assets over Current Liabilities.

 

“Consolidated Working Capital Adjustment” means, for any period on a consolidated basis, the amount (which may be a negative number) by which Consolidated Working Capital as of the beginning of such period exceeds (or is less than) Consolidated Working Capital as of the end of such period; provided that there shall be excluded (a) the effect of reclassification during such period between current assets and long term assets and current liabilities and long term liabilities (with a corresponding restatement of the prior period to give effect to such reclassification), (b) the effect of any Disposition or acquisition of any Person, facility or business line, unit or division by such Person during such period, (c) the effect of any fluctuations in the amount of accrued and contingent obligations under any Hedge Agreement, and (d) the application of acquisition or recapitalization accounting.

 

“Contract Consideration” has the meaning assigned to such term in the definition of “Excess Cash Flow”.

 

“Contractual Obligation” means, as applied to any Person, any indenture, mortgage, deed of trust, contract, undertaking, agreement or other instrument to which that Person is a party or by which it or any of its properties is bound or to which it or any of its properties is subject.

 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.

 

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“Copyright” means any and all (a) copyrights, rights and interests in copyrights, works protectable by copyright whether published or unpublished, copyright registrations and copyright applications, (b) all renewals of any of the foregoing, (c)  income, royalties, damages, and payments now or hereafter due and/or payable under any of the foregoing, including, without limitation, damages or payments for past or future infringements for any of the foregoing, (d) rights to sue for past, present and future infringement of any of the foregoing, and (e) rights corresponding to any of the foregoing throughout the world.

 

“Cost Saving Initiative” has the meaning assigned to such term in the definition of “Consolidated Adjusted EBITDA”.

 

“Credit Suisse” has the meaning assigned to such term in the preamble to this Agreement.

 

“Cure Amount” has the meaning assigned to such term in Section 6.12(b).

 

“Cure Right” has the meaning assigned to such term in Section 6.12(b).

 

“Current Assets” means, at any date, all assets of the Borrower and its Restricted Subsidiaries which under GAAP would be classified as current assets (excluding any (a) Cash and Cash Equivalents, (b) the current portion of current and deferred Taxes, (c) permitted loans made to third parties, (d) assets held for sale, (e) pension assets, (f) deferred bank fees, (g) derivative financial instruments and (h) insurance claims).

 

“Current Liabilities” means, at any time, the consolidated current liabilities of the Borrower and its Restricted Subsidiaries at such time, but excluding, without duplication, (a) the current portion of any long-term Indebtedness,  (b) the current portion of interest expense, (c) the current portion of any Capital Lease, (d) the current portion of current and deferred Taxes based on income, profit or capital, (e) liabilities in respect of unpaid earn-outs, (f) the current portion of any other long-term liabilities, (g) accruals relating to restructuring reserves or other exceptional items, (h) liabilities in respect of funds of third parties on deposit with the Borrower or any of its Restricted Subsidiaries, (i) any liabilities recorded in connection with stock-based awards, partnership interest-based awards, awards of profits interests, deferred compensation awards and similar incentive based compensation awards or arrangements and liabilities related to any post-employment benefit schemes and (j) liabilities related to Restricted Payments declared but not yet paid.

 

“Debtor Relief Laws” means the Bankruptcy Code of the U.S., and all other liquidation, conservatorship, bankruptcy, general assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization or similar debtor relief laws of the U.S. or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

 

“Declined Proceeds” has the meaning assigned to such term in Section 2.08(b)(v).

 

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

 

“Defaulting Lender” means any Lender that has (a) become (or any parent company thereof has become) insolvent or been determined by any Governmental Authority having regulatory authority over such Person or its assets, to be insolvent, or the assets or management of which has been taken over by any Governmental Authority, (b) become (or any parent company thereof has become) the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or

 

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custodian, appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in, any such proceeding or appointment, unless in the case of any Lender subject to this clause (b), the Borrower and the Administrative Agent have each determined that such Lender intends, and has all approvals required to enable it (in form and substance satisfactory to each of the Borrower and the Administrative Agent), to continue to perform its obligations as a Lender hereunder; provided that no Lender shall be deemed to be a Defaulting Lender solely by virtue of the ownership or acquisition of any Capital Stock in such Lender or its parent by any Governmental Authority or (c) become the subject of a Bail-In Action; provided that such action does not result in or provide such Lender with immunity from the jurisdiction of courts within the U.S. or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contract or agreement to which such Lender is a party.

 

“Delayed Draw Term Borrowing” means a borrowing consisting of simultaneous Delayed Draw Term Loans of the same Class and Type made, converted or continued on the same date and, in the case of Eurodollar Rate Loans, having the same Interest Period made by each of the Delayed Draw Term Lenders pursuant to Section 2.01(b).

 

“Delayed Draw Term Commitment” means, with respect to each Delayed Draw Term Lender, the commitment of such Delayed Draw Term Lender to make Delayed Draw Term Loans hereunder in an aggregate amount not to exceed the amount set forth opposite such Delayed Draw Term Lender’s name on the Commitment Schedule under “Delayed Draw Term Commitment”, as the same may be (a) reduced from time to time pursuant to Section 2.06 and (b) reduced or increased from time to time pursuant to assignments by or to such Term Lender pursuant to Section 9.05.  The aggregate amount of the Delayed Draw Term Lenders’ Delayed Draw Term Commitment on the Closing Date is $100,000,000.

 

“Delayed Draw Term Commitment Fee” has the meaning specified in Section 2.09(a).

 

“Delayed Draw Term Commitment Fee Percentage” means a percentage per annum equal to: (a) from the Closing Date until the date that is thirty (30) days after the Closing Date, 0.00% per annum; (b) from the date that is thirty-one (31) days after the Closing Date until the date that is sixty (60) days after the Closing Date, 2.75% per annum and (c) thereafter, 6.50% per annum.

 

“Delayed Draw Term Commitment Termination Date” means February 27, 2018.

 

“Delayed Draw Term Lender” means any Lender with a Delayed Draw Term Commitment or an outstanding Delayed Draw Term Loan.

 

“Delayed Draw Term Loan” means term loans made by the Delayed Draw Lenders to the Borrower pursuant to Section 2.01(b).

 

“Delayed Draw Term Note” means a promissory note of the Borrower payable to any Delayed Draw Term Lender, in substantially the form of Exhibit G-2 hereto, evidencing the indebtedness of the Borrower to such Delayed Draw Term Lender resulting from the Delayed Draw Term Loans made or held by such Delayed Draw Term Lender.

 

“Deposit Account” means a demand, time, savings, passbook or like account with a bank, savings and loan association, credit union or like organization, other than an account evidenced by a negotiable certificate of deposit.

 

“Derivative Transaction” means (a) any interest-rate transaction, including any interest-rate swap, basis swap, forward rate agreement, interest rate option (including a cap, collar or floor), and any other

 

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instrument linked to interest rates that gives rise to similar credit risks (including when-issued securities and forward deposits accepted), (b) any exchange-rate transaction, including any cross-currency interest-rate swap, any forward foreign-exchange contract, any currency option, and any other instrument linked to exchange rates that gives rise to similar credit risks, (c) any equity derivative transaction, including any equity-linked swap, any equity-linked option, any forward equity-linked contract, and any other instrument linked to equities that gives rise to similar credit risk and (d) any commodity (including precious metal) derivative transaction, including any commodity-linked swap, any commodity-linked option, any forward commodity-linked contract, and any other instrument linked to commodities that gives rise to similar credit risks; provided, that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees, members of management, managers or consultants of Holdings or its subsidiaries shall be a Derivative Transaction.

 

“Designated Non-Cash Consideration” means the fair market value (as determined by the Borrower in good faith) of non-Cash consideration received by the Borrower or any Restricted Subsidiary in connection with any Disposition pursuant to Section 6.07(h) that is designated as Designated Non-Cash Consideration pursuant to a certificate of a Responsible Officer of the Borrower, setting forth the basis of such valuation (which amount will be reduced by the amount of Cash or Cash Equivalents received in connection with a subsequent sale or conversion of such Designated Non-Cash Consideration to Cash or Cash Equivalents).

 

“Disposition” or “Dispose” means the sale, lease, sublease, or other disposition of any property of any Person.

 

“Disqualified Capital Stock” means any Capital Stock which, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, (a) matures (excluding any maturity as the result of an optional redemption by the issuer thereof) or is mandatorily redeemable (other than for Qualified Capital Stock), pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof (other than for Qualified Capital Stock), in whole or in part, on or prior to 91 days following the Latest Maturity Date at the time such Capital Stock is issued (it being understood that if any such redemption is in part, only such part coming into effect prior to 91 days following the Latest Maturity Date shall constitute Disqualified Capital Stock), (b) is or becomes convertible into or exchangeable (unless at the sole option of the issuer thereof) for (i) debt securities or (ii) any Capital Stock that would constitute Disqualified Capital Stock, in each case at any time on or prior to 91 days following the Latest Maturity Date at the time such Capital Stock is issued, (c) contains any mandatory repurchase obligation or any other repurchase obligation at the option of the holder thereof (other than for Qualified Capital Stock), in whole or in part, which may come into effect prior to 91 days following the Latest Maturity Date at the time such Capital Stock is issued, or (d) provides for the scheduled payments of (but not accrual of) dividends required to be paid in Cash on or prior to 91 days following the Latest Maturity Date at the time such Capital Stock is issued (it being understood that if any such repurchase obligation is in part, only such part coming into effect prior to 91 days following the Latest Maturity Date shall constitute Disqualified Capital Stock); provided that any Capital Stock that would not constitute Disqualified Capital Stock but for provisions thereof giving holders thereof (or the holders of any security into or for which such Capital Stock is convertible, exchangeable or exercisable) the right to require the issuer thereof to redeem such Capital Stock upon the occurrence of any change of control, Qualifying Offering or any Disposition occurring prior to 91 days following the Latest Maturity Date at the time such Capital Stock is issued shall not constitute Disqualified Capital Stock, if such Capital Stock provides that the issuer thereof will not redeem any such Capital Stock pursuant to such provisions prior to the Termination Date.

 

Notwithstanding the preceding sentence, (A) if such Capital Stock is issued pursuant to any plan for the benefit of directors, officers, employees, members of management, managers or consultants or by

 

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any such plan to such directors, officers, employees, members of management, managers or consultants, in each case in the ordinary course of business of Holdings, the Borrower or any Restricted Subsidiary (or any Parent Company or any subsidiary), such Capital Stock shall not constitute Disqualified Capital Stock solely because it may be required to be repurchased by the issuer thereof in order to satisfy applicable statutory or regulatory obligations and (B) no Capital Stock held by any future, present or former employee, director, officer, manager, member of management or consultant (or their respective Affiliates or Immediate Family Members) of the Borrower (or any Parent Company or any subsidiary) shall be considered Disqualified Capital Stock solely because such stock is redeemable or subject to repurchase pursuant to any management equity subscription agreement, stock option, stock appreciation right or other stock award agreement, stock ownership plan, put agreement, stockholder agreement or similar agreement that may be in effect from time to time.

 

“Disqualified Institution” means:

 

(a)                                 (i) any Person identified to the Arrangers on or prior to December 22, 2016, (ii) any Affiliate of any Person described in clause (a)(i) above that is identified in a written notice to the Arrangers (if after December 22, 2016, and prior to the Closing Date) or the Administrative Agent (if after the Closing Date) and (iii) any other Affiliate of any Person described in clause (a)(i) above reasonably identifiable as such based solely on its name (other than any Bona Fide Debt Fund) (each such person, a “Disqualified Lending Institution”); and/or

 

(b)                                 (i) any Company Competitor and/or any Affiliate of any Company Competitor, in each case identified to the Arrangers on or prior to December 22, 2016, (ii) any Company Competitor that is identified in writing and reasonably acceptable to the Arrangers (if after December 22, 2016 and prior to the Closing Date) or the Administrative Agent (if after the Closing Date), (iii) any Affiliate of any Person described in clauses (b)(i) and/or (b)(ii) above reasonably identifiable as such based solely on its name (other than any Bona Fide Debt Fund) and (iv) any other Affiliate of any Person described in clauses (i) and/or (iii) above that is (x) identifiable based solely on the name of such Affiliate or (y) identified by a written notice to the Arrangers (or, after the Closing Date, to the Administrative Agent) after December 22, 2016 (it being understood and agreed that no Bona Fide Debt Fund may be designated as a Disqualified Institution pursuant to this clause (b)(iv));

 

it being understood and agreed that no written notice delivered pursuant to clauses (a)(iii), (b)(ii) and/or (b)(iv) above shall apply retroactively to disqualify any person that has previously acquired an assignment or participation interest in the Loans. For the purposes of the foregoing “Bona Fide Debt Fund” means a debt fund, investment vehicle, regulated bank entity or a regulated lending entity that is engaged in making, purchasing, holding, or otherwise investing in commercial loans or similar extensions of credit in the ordinary course of business.

 

“Disqualified Lending Institution” has the meaning assigned to such term in the definition of “Disqualified Institution”.

 

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

 

“Domestic Subsidiary” means any Restricted Subsidiary incorporated or organized under the laws of the U.S., any state thereof or the District of Columbia.

 

“Dutch Auction” has the meaning assigned to such term on Schedule 1.01(b).

 

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

 

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

 

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

 

“Effective Yield” means, as to any Indebtedness, the effective yield applicable thereto calculated by the Administrative Agent in consultation with the Borrower in a manner consistent with generally accepted financial practices, taking into account (a) interest rate margins, (b) interest rate floors (subject to the proviso set forth below), (c) any amendment to the relevant interest rate margins and interest rate floors prior to the applicable date of determination and (d) original issue discount and upfront or similar fees (based on an assumed four-year average life to maturity or lesser remaining average life to maturity), but excluding (i) any arrangement, commitment, structuring, underwriting and/or amendment fees (regardless of whether any such fees are paid to or shared in whole or in part with any lender) and (ii) any other fee that is not payable to all relevant lenders generally; provided, however, that (A) to the extent that the Eurodollar Rate or Alternate Base Rate (without giving effect to any floor specified in the definition thereof) is less than any floor applicable to the loans in respect of which the Effective Yield is being calculated on the date on which the Effective Yield is determined, the amount of the resulting difference will be deemed added to the interest rate margin applicable to the relevant Indebtedness for purposes of calculating the Effective Yield and (B) to the extent that the Eurodollar Rate (for a period of three months) or Alternate Base Rate (without giving effect to any floor specified in the definition thereof) is greater than any applicable floor on the date on which the Effective Yield is determined, the floor will be disregarded in calculating the Effective Yield.

 

“Eligible Assignee” means (a) any Lender, (b) any commercial bank, insurance company, or finance company, financial institution, any fund that invests in loans or any other “accredited investor” (as defined in Regulation D of the Securities Act), (c) any Affiliate of any Lender, (d) any Approved Fund of any Lender and (e) to the extent permitted under Section 9.05(g), any Affiliated Lender; provided that in any event, “Eligible Assignee” shall not include (i) any natural Person, or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person, (ii) any Disqualified Institution or (iii) except as permitted under Section 9.05(g), the Borrower or any of its Affiliates.

 

“Environmental Claim” means any investigation, notice, notice of violation, claim, action, suit, proceeding, demand, abatement order or other order or directive (conditional or otherwise), by any Governmental Authority or any other Person, arising (a) pursuant to or in connection with any actual or alleged violation of any Environmental Law or actual or alleged Environmental Liability; (b) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or (c) in connection with any actual or alleged damage, injury, threat or harm to health, safety, natural resources or the environment.

 

“Environmental Laws” means any and all applicable Requirements of Law and Governmental Authorizations relating to (a) environmental matters, including those relating to pollution or protection of

 

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the environment or to any Hazardous Materials Activity; or (b) the generation, use, storage, transportation or disposal of or exposure to hazardous or toxic wastes or materials.

 

“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), directly or indirectly resulting from, based upon or relating to (a) any Environmental Law, (b) any Hazardous Material Activities, (c) exposure to any Hazardous Materials, or (d) any contract pursuant to which liability is assumed or imposed with respect to any of the foregoing.

 

“Equity Contribution” means the cash contributions to Holdings in exchange for common equity, qualified preferred equity or other equity of Holdings, which, when combined (i) with cash proceeds of the initial public offering of Holdings that are released to Holdings from its trust account on or about the Closing Date, will be at least $85 million in the aggregate (determined on a gross basis) and (ii) with equity of the Target’s and Holdings’ existing equity holders and/or members of management prior to the Closing Date that will be retained, rolled over or converted, if any, will constitute an aggregate amount not less than 50%, of the sum of the total consolidated pro forma debt and equity of Holdings on the Closing Date

 

“ERISA” means the Employee Retirement Income Security Act of 1974.

 

“ERISA Affiliate” means, as applied to any Person, (a) any corporation which is a member of a controlled group of corporations within the meaning of Section 414(b) of the Code of which that Person is a member; (b) any trade or business (whether or not incorporated) which is a member of a group of trades or businesses under common control within the meaning of Section 414(c) of the Code of which that Person is a member; and (c) any member of an affiliated service group within the meaning of Section 414(m) or (o) of the Code of which that Person, any corporation described in clause (a) above or any trade or business described in clause (b) above is a member.  For the avoidance of doubt, when any provision of this Agreement relates to a past event or period of time, the term “ERISA Affiliate” includes any person who was, as to the time of such past event or period of time, an “ERISA Affiliate” within the meaning of the preceding sentence.

 

“ERISA Event” means (a) a “reportable event” within the meaning of Section 4043 of ERISA and the regulations issued thereunder with respect to any Pension Plan (excluding those for which the 30-day notice period has been waived); (b) the failure to meet the minimum funding standard of Sections 412 or 430 of the Code or Sections 302 or 303 of ERISA with respect to any Pension Plan (whether or not waived in accordance with Section 412(c) of the Code); (c) the occurrence of a non-exempt prohibited transaction within the meaning of Section 4975 of the Code or Section 406 of ERISA with respect to which the Borrower or any of its Restricted Subsidiaries is a “disqualified person” (within the meaning of Section 4975 of the Code) or a “party in interest” (within the meaning of Section 3(14) of ERISA); (d) the provision by the administrator of any Pension Plan pursuant to Section 4041(a)(2) or Section 302 of ERISA of a notice of intent to terminate such plan in a distress termination described in Section 4041(c) of ERISA; (e) the withdrawal by the Borrower or any of its Restricted Subsidiaries or any of their respective ERISA Affiliates from any Pension Plan with two or more contributing sponsors or the termination of any such Pension Plan resulting in liability to the Borrower or any of its Restricted Subsidiaries or any of their respective ERISA Affiliates pursuant to Section 4063 or 4064 of ERISA; (f) the institution by the PBGC of proceedings to terminate any Pension Plan or to appoint a trustee to administer any Pension Plan under Section 4042 of ERISA; (g) the imposition of liability on the Borrower or any of its Restricted Subsidiaries or any of their respective ERISA Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA; (h) a complete or partial withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) of the Borrower or any of its Restricted Subsidiaries or any of their respective ERISA Affiliates from any

 

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Multiemployer Plan if there is any potential liability therefor under Title IV of ERISA, or the receipt by the Borrower or any of its Restricted Subsidiaries or any of their respective ERISA Affiliates of notice from any Multiemployer Plan that it is “insolvent” (within the meaning of Section 4245 of ERISA) or in “endangered” or “critical” status (within the meaning of Section 432 of the Code or Section 305 of ERISA), or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA; (i) the incurrence of liability or the imposition of a Lien pursuant to Section 436 or 430(k) of the Code or pursuant to ERISA with respect to any Pension Plan; (j) any Foreign Benefit Event; or (k) any other event or condition with respect to a Pension Plan or Multiemployer Plan that could result in liability of the Borrower or any of its Restricted Subsidiaries.

 

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

 

“Eurodollar Rate” means, for any Interest Period:

 

(a)                     in the case of any Eurodollar Rate Loan:  means, for any Interest Period with respect to any Eurodollar Rate Loan, the rate per annum determined by the Administrative Agent at approximately 11:00 a.m. (London time) on the date that is two (2) Business Days prior to the commencement of such Interest Period by reference to the ICE Benchmark Administration London Interbank Offered Rate for deposits in Dollars (as set forth by any service selected by the Administrative Agent that has been nominated by the ICE Benchmark Administration (or the successor thereto if the ICE Benchmark Administration is no longer making a LIBOR rate available) as an authorized information vendor for the purpose of displaying such rates) for a period equal to such Interest Period; provided, that, if the Eurodollar Rate shall not be available at such time for such Interest Period (an “Impacted Interest Period”), then the Eurodollar Rate shall be the Interpolated Rate; and

 

(b)                     for any interest calculation with respect to an ABR Loan on any date:  means, on any day (or if such day is not a Business Day, the immediately preceding Business Day) the rate per annum determined by the Administrative Agent at approximately 11:00 a.m. (London time) on such date by reference to the ICE Benchmark Administration London Interbank Offered Rate for deposits in Dollars with a term of one month (as set forth by any service selected by the Administrative Agent that has been nominated by the ICE Benchmark Administration (or the successor thereto if the ICE Benchmark Administration is no longer making a LIBOR rate available) as an authorized information vendor for the purpose of displaying such rates) for a period equal to such Interest Period.

 

“Event of Default” has the meaning assigned to such term in Article 7.

 

“Excess Cash Flow” means, for any Test Period ending on the last day of any Fiscal Year commencing with the Fiscal Year ending December 31, 2018, an amount (if positive) equal to:

 

(a)                     the sum, without duplication, of the amounts for such period of the following:

 

(i)                         Consolidated Adjusted EBITDA of the Borrower and its Restricted Subsidiaries for such period without giving effect to clause (b)(ix) of the definition thereof, plus

 

(ii)                      the Consolidated Working Capital Adjustment for such period, plus

 

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(iii)                   cash gains of the type described in clauses (a), (c), (d), and (l) of the definition of “Consolidated Net Income”, to the extent not otherwise included in calculating Consolidated Adjusted EBITDA (except to the extent such gains consist of proceeds utilized in calculating Net Proceeds or Net Insurance/Condemnation Proceeds subject to Sections 2.08(b)(ii) and (iii)), plus

 

(iv)                  to the extent not otherwise included in the calculation of Consolidated Adjusted EBITDA for such period, cash payments received by the Borrower or any of its Restricted Subsidiaries with respect to amounts deducted from Excess Cash Flow in a prior period pursuant to clause (b)(vii) below, minus

 

(b)                     the sum, without duplication, of the amounts for such period of the following:

 

(i)                         (x) the aggregate amount of all principal payments of Indebtedness (including the Term Loans) of the Borrower and its Restricted Subsidiaries made during such period (other than any voluntary prepayments described under clause (B) of Section 2.08(b)(i)), and (y) except to the extent deducted pursuant to Section 2.08(b)(i)(B)(2), the amount of any reduction in the outstanding principal amount of the Term Loans resulting from assignments to Holdings, the Borrower or its subsidiaries pursuant to Section 9.05(g), in each case under this clause (y), in an amount equal to the lesser of the actual amount of Cash paid by Holdings, the Borrower or its subsidiaries in connection with such assignments and the applicable reduction (except, in each case, to the extent financed with Indebtedness), plus

 

(ii)                      without duplication of amounts deducted from Excess Cash Flow pursuant to this clause (ii) or clause (ix) below in respect of a prior period, all Cash payments in respect of capital expenditures as would be reported in Holdings’ consolidated statement of cash flows made during such period and, at the option of the Borrower, any Cash payments in respect of any such capital expenditures made after such period and prior to the date of the applicable Excess Cash Flow payment (except, in each case, to the extent financed with Indebtedness), plus

 

(iii)                   consolidated interest expense added back pursuant to clause (b)(ii) of the definition of “Consolidated Adjusted EBITDA” to the extent paid in Cash, plus

 

(iv)                  Taxes paid and any provision for Taxes, including income, capital, state, franchise and similar Taxes, property Taxes and foreign withholding Taxes (including (i) penalties and interest related to any such Tax or arising from any Tax examination and (ii) pursuant to any Tax sharing arrangement, in each case permitted by Section 6.04(a)(i)) of such Person paid or accrued during such period, to the extent payable in Cash with respect to such period, plus

 

(v)                     without duplication of amounts deducted from Excess Cash Flow pursuant to this clause (v) or clause (ix) below in respect of a prior period, Cash payments made during such period in respect of Permitted Acquisitions and other Investments (including Investments in joint ventures) permitted by Section 6.06 or otherwise consented to by the Required Lenders (other than Investments in (x) Cash and Cash Equivalents and (y) the Borrower or any of its Restricted Subsidiaries), and, at the option of the Borrower, any Cash payments in respect of Permitted Acquisitions and other Investments (including Investments in joint ventures) permitted by Section 6.06 or otherwise consented to by the Required Lenders (other than Investments in

 

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(x) Cash and Cash Equivalents and (y) the Borrower or any of its Restricted Subsidiaries) made after such period and prior to the date of the applicable Excess Cash Flow payment (except, in each case, to the extent financed with Indebtedness), plus

 

(vi)      the aggregate amount of all Restricted Payments made under Sections 6.04(a)(i), (ii) and (iv) or otherwise consented to by the Required Lenders in each case to the extent actually paid in Cash during such period, and, at the option of the Borrower, made after such period and prior to the date of the applicable Excess Cash Flow payment (except, in each case, to the extent financed with Indebtedness), plus

 

(vii)     amounts added back under clauses (b)(iv)(C) or (b)(xvi) of the definition of “Consolidated Adjusted EBITDA” to the extent such amounts have not yet been received by the Borrower or its Restricted Subsidiaries in Cash, plus

 

(viii)    an amount equal to all expenses, charges and losses either (A) excluded in calculating Consolidated Net Income or (B) added back in calculating Consolidated Adjusted EBITDA, in each case, to the extent paid or payable in Cash, plus

 

(ix)      without duplication of amounts deducted from Excess Cash Flow in respect of a prior period, at the option of the Borrower, the aggregate consideration required to be paid in Cash by the Borrower or its Restricted Subsidiaries pursuant to binding contracts (the “Contract Consideration”) entered into prior to or during such period relating to capital expenditures, acquisitions or Investments permitted by Section 6.06 or otherwise consented to by the Required Lenders (other than Investments in (x) Cash and Cash Equivalents and (y) the Borrower or any of its Restricted Subsidiaries) to be consummated or made during the period of four consecutive Fiscal Quarters of the Borrower following the end of such period (except, in each case, to the extent financed with Indebtedness); provided that to the extent the aggregate amount actually utilized to finance such capital expenditures, acquisitions or Investments during such subsequent period of four consecutive Fiscal Quarters is less than the Contract Consideration, the amount of such shortfall shall be added to the calculation of Excess Cash Flow at the end of such subsequent period of four consecutive Fiscal Quarters, plus

 

(x)       to the extent not expensed (or exceeding the amount expensed) during such period or not deducted (or exceeding the amount deducted) in calculating Consolidated Net Income, the aggregate amount of expenditures, fees, costs and expenses paid in Cash by the Borrower and its Restricted Subsidiaries during such period, other than to the extent financed with Indebtedness, plus

 

(xi)      Cash payments (other than in respect of Taxes, which are governed by clause (iv) above) made during such period for any liability the accrual of which in a prior period did not reduce Consolidated Adjusted EBITDA and therefore increased Excess Cash Flow in such prior period (provided there was no other deduction to Consolidated Adjusted EBITDA or Excess Cash Flow related to such payment), except to the extent financed with Indebtedness, plus

 

(xii)     Cash expenditures in respect of any Hedge Agreement during such period to the extent (A) not otherwise deducted in the calculation of Consolidated Net Income or Consolidated Adjusted EBITDA and (B) not financed with Indebtedness, plus

 

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(xiii)    Cash payments made by the Borrower or its Restricted Subsidiaries during such period in respect of long-term liabilities, including for purposes of clarity, the current portion of any such liabilities (other than Indebtedness) of the Borrower or its Restricted Subsidiaries, except to the extent such cash payments were (A) deducted in the calculation of Consolidated Net Income or Consolidated Adjusted EBITDA for such period or (B) financed with Indebtedness.

 

“Excess Cash Flow Period” means (i) the period commencing on the Closing Date and ending on the last day of the Fiscal Year ending on or about December 31, 2018 and (ii) each Fiscal Year thereafter.

 

“Exchange Act” means the Securities Exchange Act of 1934 and the rules and regulations of the SEC promulgated thereunder.

 

“Excluded Assets” means each of the following:

 

(a)       any asset the grant or perfection of a security interest in which would (i) be prohibited by enforceable anti-assignment provisions set forth in any contract that is permitted or otherwise not prohibited by the terms of this Agreement, (ii) violate the terms of any contract relating to such asset that is permitted or otherwise not prohibited by the terms of this Agreement or (iii) trigger termination of any contract relating to such asset that is permitted or otherwise not prohibited by the terms of this Agreement pursuant to any “change of control” or similar provision; it being understood that the term “Excluded Asset” shall not include proceeds or receivables arising out of any contract described in this clause (a) to the extent that the assignment of such proceeds or receivables is expressly deemed to be effective under the UCC or other applicable Requirements of Law notwithstanding the relevant prohibition, violation or termination right,

 

(b)       the Capital Stock of any (i) Captive Insurance Subsidiary, (ii) Unrestricted Subsidiary, (iii) not-for-profit subsidiary, (iv) Excluded Subsidiary qualifying as such pursuant to clause (i) in the definition thereof or (v) special purpose entity used for any securitization facility,

 

(c)       any intent-to-use (or similar) Trademark application prior to the filing and acceptance of a “Statement of Use”, “Amendment to Allege Use” or similar filing with respect thereto, to the extent, if any, that, and solely during the period, if any, in which the grant of a security interest therein may impair the validity or enforceability of such intent-to-use Trademark application under applicable law,

 

(d)       any asset, the grant or perfection of a security interest in which would (i) require any governmental consent, approval, license or authorization that has not been obtained, (ii) be prohibited by enforceable anti-assignment provisions of applicable Requirements of Law, except, in the case of this clause (ii), to the extent such requirement or prohibition would be rendered ineffective under the UCC or other applicable Requirements of Law notwithstanding such requirement or prohibition or (iii) result in material adverse tax consequences to any Loan Party as reasonably determined by the Borrower and specified in a written notice to the Administrative Agent,

 

(e)       (i) any leasehold Real Estate Asset and (ii) any Excluded Real Property,

 

(f)        any interest in any partnership, joint venture or non-Wholly-Owned Subsidiary which cannot be pledged without (i) the consent of one or more third parties other than

 

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Holdings, the Borrower or any of its Restricted Subsidiaries (after giving effect to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction or any other applicable Requirement of Law) or (ii) giving rise to a “right of first refusal”, a “right of first offer” or a similar right permitted or otherwise not prohibited by the terms of this Agreement that may be exercised by any third party other than Holdings, the Borrower or any of its Restricted Subsidiaries in accordance with the Organizational Documents (and/or shareholders’ or similar agreement) of such partnership, joint venture or non-Wholly-Owned Subsidiary,

 

(g)       any Margin Stock,

 

(h)       any Cash or Cash Equivalents maintained in or credited to any Deposit Account or Securities Account that are comprised solely of (i) funds used or to be used for payroll and payroll taxes and other employee benefit payments to or for the benefit of any Loan Party’s employees, (ii) funds used or to be used to pay all Taxes required to be collected, remitted or withheld (including U.S. federal and state withholding Taxes (including the employer’s share thereof)) and (iii) any other funds which any Loan Party holds as an escrow or fiduciary for the benefit of another Person in the ordinary course of business (collectively, “Trust Fund Accounts”),

 

(i)        any asset with respect to which the Administrative Agent and the Borrower have reasonably determined that the cost, burden, difficulty or consequence (including any effect on the ability of the relevant Loan Party to conduct its operations and business in the ordinary course of business) of obtaining or perfecting a security interest therein outweighs the benefit of a security interest to the relevant Secured Parties afforded thereby, which determination is evidenced in writing,

 

(j)        Commercial Tort Claims with a value (as reasonably estimated by the Borrower) of less than $2,500,000,

 

(k)       any lease, license or agreement or any asset subject to a purchase money security interest, Capital Lease or similar arrangement that is, in each case, permitted by this Agreement to the extent that the grant of a security interest therein would violate or invalidate such lease, license or agreement or purchase money, Capital Lease or similar arrangement or trigger a right of termination in favor of any other party thereto after giving effect to the applicable anti-assignment provisions the UCC or any other applicable Requirement of Law, and

 

(l)        the Capital Stock of (i) any Foreign Subsidiary and (ii) any CFC Holdco, in each case, in excess of 65% of the issued and outstanding voting Capital Stock and 100% of the issued and outstanding non-voting Capital Stock in any such Person.

 

Notwithstanding the foregoing, no such asset shall constitute an “Excluded Asset” unless it also constitutes an “Excluded Asset” (or equivalent term) for the purpose of any ABL Facility.

 

“Excluded Real Property” means any Real Estate Asset which is (a) not a Material Real Estate Asset or (b) is a Material Real Estate Asset which is subject to a mortgage, deed of trust or other similar instrument as of the Closing Date, the details of which are provided on Schedule 6.01(n), for so long as such Material Real Estate Asset is subject to such mortgage, deed of trust or security instrument or any other mortgage, deed of trust or security instrument in connection with any permitted refinancing in accordance with Section 6.01(m); provided that no Real Estate Asset acquired after the Closing Date which constitutes a Material Real Estate Asset shall be deemed to be Excluded Real Property.

 

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“Excluded Subsidiary” means

 

(a)           any Restricted Subsidiary that is not a Wholly-Owned Subsidiary,

 

(b)           any Restricted Subsidiary:

 

(i)        that (i) is prohibited by (A) any Requirement of Law or (B) any Contractual Obligation that, in the case of this clause (B), exists on the Closing Date or at the time such Restricted Subsidiary becomes a subsidiary (which Contractual Obligation was not entered into in contemplation of such Restricted Subsidiary becoming a subsidiary) from providing a Loan Guaranty,

 

(ii)       that would require a governmental consent, approval, license or authorization (including any regulatory consent, approval, license or authorization) to provide a Loan Guaranty (including any regulatory consent, approval, license or authorization) unless such consent, approval, license or authorization has been obtained,

 

(iii)      acquired by the Borrower or any Restricted Subsidiary that, at the time of the relevant acquisition, is an obligor in respect of assumed Indebtedness permitted by Section 6.01 to the extent (A) (and for so long as) the documentation governing the applicable assumed Indebtedness prohibits such Restricted Subsidiary from providing a Loan Guaranty and (B) the relevant prohibition was not incurred or otherwise implemented in contemplation of the applicable acquisition, or

 

(iv)      that is formed or acquired after the Closing Date where the provision by such Restricted Subsidiary of a Loan Guaranty would result in material adverse tax consequences as reasonably determined by the Borrower, written notice of which determination has been provided by the Borrower to the Administrative Agent,

 

(c)           any not-for-profit subsidiary,

 

(d)           any Captive Insurance Subsidiary,

 

(e)           any special purpose entity used for any permitted securitization or receivables facility or financing,

 

(f)            any Foreign Subsidiary,

 

(g)           (i) any CFC Holdco and/or (ii) any Domestic Subsidiary that is a direct or indirect subsidiary of (A) a Foreign Subsidiary that is a CFC or (B) a CFC Holdco,

 

(h)           any Unrestricted Subsidiary,

 

(i)            any Immaterial Subsidiary, and

 

(j)            any other Restricted Subsidiary with respect to which, in the reasonable judgment of the Administrative Agent and the Borrower, the burden or cost of providing a Loan Guaranty outweighs the benefits afforded thereby.

 

Notwithstanding the foregoing, no subsidiary shall be an “Excluded Subsidiary” unless it also constitutes an “Excluded Subsidiary” (or equivalent term) for the purpose of any ABL Facility.

 

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“Excluded Swap Obligation” means, with respect to any Loan Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Loan Guaranty of such Loan Guarantor of, or the grant by such Loan Guarantor of a security interest to secure, such Swap Obligation (or any Loan Guaranty thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Loan Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder (determined after giving effect to Section 3.20 of the Loan Guaranty and any other “keepwell”, support or other agreement for the benefit of such Loan Guarantor) at the time the Loan Guaranty of such Loan Guarantor or the grant of such security interest becomes effective with respect to such Swap Obligation.  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Loan Guaranty or security interest is or becomes illegal.

 

“Excluded Taxes” means, with respect to the Administrative Agent or any Lender or any other recipient of any payment to be made by or on account of any obligation of any Loan Party under any Loan Document, (a) Taxes imposed on (or measured by) its net or overall gross income or franchise Taxes (i) imposed as a result of such recipient being organized or having its principal office located in or, in the case of any Lender, having its applicable lending office located in, the applicable jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) any branch profits Taxes imposed under Section 884(a) of the Code or any similar Tax imposed by any jurisdiction described in clause (a), (c) in the case of a Lender, any U.S. federal withholding Taxes that are imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in the Loan or Commitment pursuant to a Requirement of Law in effect at the time such Lender (i) acquires such interest in the Loan or Commitment (other than pursuant to an assignment request under Section 2.16) or (ii) designates a new lending office, except in each case to the extent that the relevant Lender (or its assignor, if any) was entitled, immediately prior to the designation of a new lending office (or assignment), to receive additional amounts from any Loan Party with respect to such withholding tax pursuant to Section 2.14, (d) any tax imposed as a result of a failure by such Lender or Administrative Agent to comply with Section 2.14(f) or (g) and (e) any U.S. federal withholding tax under FATCA.

 

“Expected Cost Savings” has the meaning assigned to such term in the definition of “Consolidated Adjusted EBITDA”.

 

“Extended Term Loans” has the meaning assigned to such term in Section 2.20(a)(i).

 

“Extension” has the meaning assigned to such term in Section 2.20(a).

 

“Extension Amendment” means an amendment to this Agreement that is reasonably satisfactory to the Administrative Agent (for purposes of giving effect to Section 2.20) and the Borrower executed by each of (a) Holdings, the Borrower and the Subsidiary Guarantors, (b) the Administrative Agent and (c) each Lender that has accepted the applicable Extension Offer pursuant hereto and in accordance with Section 2.20.

 

“Extension Offer” has the meaning assigned to such term in Section 2.20(a).

 

“Facility” means any real property (including all buildings, fixtures or other improvements located thereon) now or hereafter owned or leased by the Borrower or any of its subsidiaries or any of their respective predecessors.

 

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“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 (or any amended or successor version described above), and any treaty, law, regulation or other official guidance enacted in any other jurisdiction pursuant to an intergovernmental agreement between the U.S. and such jurisdiction that facilitates the implementation of such sections of the Code.

 

“FCPA has the meaning assigned to such term in Section 3.15(b).

 

“Federal Funds Effective Rate” means, for any day, the rate calculated by the Federal Reserve Bank of New York based on such day’s federal funds transactions by depositary institutions (as determined in such manner as the Federal Reserve Bank of New York sets forth on its public website from time to time) and published on the next succeeding Business Day by the Federal Reserve Bank of New York as the federal funds effective rate.

 

“Fee Letter” means that certain Fee Letter, dated as of December 22, 2016, by and among, inter alios, the Borrower, the Arrangers and the Administrative Agent, as amended.

 

“Financial Plan” has the meaning assigned to such term in Section 5.01(h).

 

“First Lien Leverage Ratio” means the ratio, as of any date of determination, of (a) Consolidated First Lien Debt as of such date to (b) Consolidated Adjusted EBITDA for the Test Period then most recently ended, in each case of the Borrower and its Restricted Subsidiaries on a consolidated basis.

 

“Fiscal Quarter” means a fiscal quarter of any Fiscal Year.

 

“Fiscal Year” means the fiscal year of Holdings for financial reporting purposes hereunder ending on or about December 31 of each calendar year.

 

“Fixed Incremental Amount” means (a) $65,000,000 minus (b) the aggregate outstanding principal amount of all Incremental Facilities and/or Incremental Equivalent Debt incurred or issued in reliance on the Fixed Incremental Amount.

 

“Flood Hazard Property” means any parcel of any Material Real Estate Asset subject to a Mortgage located in the U.S. in an area designated by the Federal Emergency Management Agency as having special flood or mud slide hazards.

 

“Foreign Benefit Event” means, with respect to any Foreign Pension Plan, (a) the existence of unfunded liabilities in excess of the amount permitted under any applicable law, or in excess of the amount that would be permitted absent a waiver from a Governmental Authority, (b) the failure to make the required contributions or payments, under any applicable law, on or before the due date for such contributions or payments, (c) the receipt of a notice by a Governmental Authority relating to the intention to terminate any such Foreign Pension Plan or to appoint a trustee or similar official to administer any such Foreign Pension Plan, or alleging the insolvency of any such Foreign Pension Plan, (d) the incurrence of any liability by the Borrower or any of its Restricted Subsidiaries under applicable law on account of the complete or partial termination of such Foreign Pension Plan or the complete or partial withdrawal of any participating employer therein, or (e) the occurrence of any transaction that is prohibited under any applicable law and that could reasonably be expected to result in the incurrence of any liability by the Borrower or any of its Restricted Subsidiaries, or the imposition on the Borrower or

 

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any of its Restricted Subsidiaries of any fine, excise tax or penalty resulting from any noncompliance with any applicable law.

 

“Foreign Lender” means any Lender that is not a “United States person” within the meaning of Section 7701(a)(30) of the Code.

 

“Foreign Pension Plan” means any Plan that under applicable law other than the laws of the United States or any political subdivision thereof, is required to be funded through a trust or other funding vehicle other than a trust or funding vehicle maintained exclusively by a Governmental Authority.

 

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

 

“GAAP” means generally accepted accounting principles in the U.S. in effect and applicable to the accounting period in respect of which reference to GAAP is made.

 

“Governmental Authority” means any federal, state, municipal, national or other government, governmental department, commission, board, bureau, court, agency or instrumentality or political subdivision thereof or any entity or officer exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to any government or any court, in each case whether associated with a state or locality of the U.S. or a foreign government.

 

“Governmental Authorization” means any permit, license, approval, authorization, plan, directive, consent order or consent decree of or from any Governmental Authority.

 

“Granting Lender” has the meaning assigned to such term in Section 9.05(e).

 

“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 monetary obligation of any other Person (the “primary obligor”) in any manner and including any obligation of the guarantor (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other monetary 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 monetary 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 monetary obligation, (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or monetary obligation, (e) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other monetary obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part) or (f) secured by any Lien on any assets of such Guarantor securing any Indebtedness or other monetary obligation of any other Person, whether or not such Indebtedness or other monetary obligation is assumed by such guarantor (or any right, contingent or otherwise, of any holder of such Indebtedness or other monetary obligation to obtain any such Lien); provided that the term “Guarantee” shall not include endorsements for collection or deposit in the ordinary course of business, or customary and reasonable indemnity obligations in effect on the Closing Date or entered into in connection with any acquisition, Disposition or other transaction permitted under this Agreement (other than such obligations with respect to Indebtedness).  The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith.

 

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“Hazardous Materials” means any chemical, material, substance or waste, or any constituent thereof, (i) that is defined, listed or regulated as hazardous, toxic, a pollutant or a contaminant, or words or similar import under Environmental Law or (ii) exposure to which is prohibited, limited or regulated by any Environmental Law or any Governmental Authority.

 

“Hazardous Materials Activity” means any past, current, proposed or threatened activity, event or occurrence involving any Hazardous Material, including the use, manufacture, possession, storage, holding, presence, existence, location, Release, threatened Release, discharge, placement, generation, transportation, import, export, processing, construction, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Material, and any corrective action or response action with respect to any of the foregoing.

 

“Hedge Agreement” means any agreement with respect to any Derivative Transaction between the Borrower or any Restricted Subsidiary and any other Person.

 

“Hedging Obligations” means, with respect to any Person, the obligations of such Person under any Hedge Agreement.

 

“Holdings” has the meaning assigned to such term in the preamble to this Agreement and shall include any Successor Holdings.

 

“IFRS” means international accounting standards within the meaning of the IAS Regulation 1606/2002, as in effect from time to time (subject to the provisions of Section 1.04), to the extent applicable to the relevant financial statements.

 

“Immaterial Subsidiary” means, as of any date, any Restricted Subsidiary of the Borrower (i) the assets of which do not exceed 5% of the Consolidated Total Assets of the Borrower and its Restricted Subsidiaries and (ii) revenues of which do not exceed 5% of the consolidated revenue of the Borrower and its Restricted Subsidiaries, in each case, for the most recently ended Test Period; provided that, (i) the Consolidated Total Assets (as so determined) of all Immaterial Subsidiaries shall not exceed 10% of Consolidated Total Assets of the Borrower and its Restricted Subsidiaries and (ii) the revenue (as so determined) of all Immaterial Subsidiaries shall not exceed 10% of the consolidated revenue of the Borrower and its Restricted Subsidiaries, in each case, for the relevant Test Period; provided further that, at all times prior to the first delivery of financial statements pursuant to Section 5.01(a) or (b), this definition shall be applied based on the pro forma consolidated financial statements of the Holdings delivered pursuant to Section 4.01.

 

“Immediate Family Member” means, with respect to any individual, such individual’s child, stepchild, grandchild or more remote descendant, parent, stepparent, grandparent, spouse, former spouse, domestic partner, former domestic partner, sibling, mother-in-law, father-in-law, son-in-law and daughter-in-law (including adoptive relationships), any trust, partnership or other bona fide estate-planning vehicle the only beneficiaries of which are any of the foregoing individuals, such individual’s estate (or an executor or administrator acting on its behalf), heirs or legatees or any private foundation or fund that is controlled by any of the foregoing individuals or any donor-advised fund of which any such individual is the donor.

 

“Impacted Interest Period” has the meaning assigned to such term in the definition of “Eurodollar Rate”.

 

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“Incremental Cap” means

 

(a)           the Fixed Incremental Amount, plus

 

(b)           an unlimited amount so long as, in the case of this clause (b), after giving effect to the relevant Incremental Facility or Incremental Equivalent Debt, (1) if such Incremental Facility or Incremental Equivalent Debt is secured by a Lien on the Term Loan Priority Collateral that is pari passu with the Lien securing the Secured Obligations, the First Lien Leverage Ratio does not exceed 3.30:1.00, (2) if such Incremental Facility or Incremental Equivalent Debt is secured by a Lien on the Term Loan Priority Collateral that is junior to the Lien securing the Secured Obligations, the Secured Leverage Ratio does not exceed 3.30:1.00 and (3) if such Incremental Facility or Incremental Equivalent Debt is unsecured, the Total Leverage Ratio does not exceed 3.30:1.00, in each case described in this clause (b), calculated on a Pro Forma Basis, including the application of the proceeds thereof (without “netting” the cash proceeds of the applicable Incremental Facility or Incremental Equivalent Debt on the consolidated balance sheet of the Borrower).

 

It is understood and agreed that, unless the Borrower otherwise notifies the Administrative Agent, if all or any portion of Incremental Facility or Incremental Equivalent Debt would be permitted under clause (b) of this definition on the applicable date of determination, such Incremental Facility or Incremental Equivalent Debt (or the relevant portion thereof) shall be deemed to have been incurred in reliance on clause (b) of this definition prior to the utilization of any amount available under clause (a) of this definition.

 

“Incremental Commitment” means any commitment made by a lender to provide all or any portion of any Incremental Facility or Incremental Loans.

 

“Incremental Equivalent Debt” means Indebtedness in the form of secured or unsecured notes or loans or junior secured or unsecured notes or loans and/or commitments in respect of any of the foregoing issued, incurred or implemented in lieu of loans under an Incremental Facility; provided, that:

 

(a)           the aggregate outstanding amount thereof shall not exceed the Incremental Cap,

 

(b)           except as otherwise agreed by the lenders or holders providing such notes or loans, no Event of Default exists immediately prior to or after giving effect to such notes or loans,

 

(c)           the Weighted Average Life to Maturity applicable to such notes or loans (other than customary bridge loans with a maturity date of no longer than one year; provided, that any loans, notes, securities or other Indebtedness which are exchanged for or otherwise replace such bridge loans shall be subject to the requirements of this clause (c)) is no shorter than the Weighted Average Life to Maturity of the then-existing Term Loans,

 

(d)           the final maturity date with respect to such notes or loans (other than customary bridge loans with a maturity date of no longer than one year; provided, that any loans, notes, securities or other Indebtedness which are exchanged for or otherwise replace such bridge loans shall be subject to the requirements of this clause (d)) is no earlier than the Latest Term Loan Maturity Date on the date of the issuance or incurrence, as applicable, thereof,

 

(e)           in the case of any such Indebtedness in the form of term loans that are pari passu with the Initial Term Loans in right of payment and with respect to security, the Effective Yield applicable thereto will not be more than 0.50% per annum higher than the Effective Yield in respect of

 

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the Initial Term Loans unless the Effective Yield with respect to the Initial Term Loans is adjusted to be equal to the Effective Yield applicable to such Indebtedness, minus, 0.50% per annum,

 

(f)            any such Indebtedness may not participate on a greater than pro rata basis in any voluntary or mandatory prepayment in respect of the Initial Term Loans (and any Additional Term Loans then subject to ratable repayment requirements), and

 

(g)           no such Indebtedness may be (x) guaranteed by any Person which is not a Loan Party or (y) secured by any assets other than the Collateral.

 

“Incremental Facility” means any Incremental Term Facility.

 

“Incremental Facility Amendment” means an amendment to this Agreement that is reasonably satisfactory to the Administrative Agent (solely for purposes of giving effect to Section 2.19) and the Borrower executed by each of (a) Holdings and the Borrower, (b) the Administrative Agent and (c) each Lender that agrees to provide all or any portion of the Incremental Facility being incurred pursuant thereto and in accordance with Section 2.19.

 

“Incremental Loans” means any Incremental Term Loan.

 

“Incremental Term Facility” has the meaning assigned to such term in Section 2.19(a).

 

“Incremental Term Loans” has the meaning assigned to such term in Section 2.19(a).

 

“Incurrence-Based Amounts” has the meaning assigned to such term in Section 1.10(d).

 

“Indebtedness” as applied to any Person means, without duplication, (a) all indebtedness for borrowed money of such Person; (b) that portion of obligations with respect to Capital Leases to the extent recorded as a liability on a balance sheet (excluding the footnotes thereto) of such Person prepared in accordance with GAAP; (c) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments to the extent the same would appear as a liability on a balance sheet (excluding the footnotes thereto) of such Person prepared in accordance with GAAP; (d) any obligation owed for all or any part of the deferred purchase price of property or services which purchase price is (A) due more than six months from the date of incurrence of the obligation in respect thereof or (B) evidenced by a note or similar written instrument (excluding (i) any earn out obligation or purchase price adjustment until such obligation (A) becomes a liability on the statement of financial position or balance sheet (excluding the footnotes thereto) in accordance with GAAP and (B) has not been paid within 60 days after becoming due and payable, (ii) accrued expenses and trade accounts payable in the ordinary course of business (including on an inter-company basis) and (iii) liabilities associated with customer prepayments and deposits); (e) all Indebtedness of others secured by any Lien on any asset owned by such Person regardless of whether the Indebtedness secured thereby have been assumed by such Person or is non-recourse to the credit of such Person; (f) the face amount of any letter of credit issued for the account of such Person or as to which such Person is otherwise liable for reimbursement of drawings (except to the extent the relevant reimbursement obligations relate to trade payables and are satisfied within 3 days following the incurrence thereof); (g) the Guarantee by such Person of the Indebtedness of another; (h) all obligations of such Person in respect of any Disqualified Capital Stock and (i) all net obligations of such Person in respect of any Derivative Transaction, including any Hedge Agreement, whether or not entered into for hedging or speculative purposes; provided that (i) in no event shall obligations under any Derivative Transaction be deemed “Indebtedness” for any calculation of the First Lien Leverage Ratio, Total Leverage Ratio, the Secured Leverage Ratio or any other financial ratio under this Agreement and (ii) the amount of Indebtedness of any Person for purposes of clause (e) shall be deemed to be equal to the

 

34

 

lesser of (A) the aggregate unpaid amount of such Indebtedness and (B) the fair market value of the property encumbered thereby as determined by such Person in good faith.  For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any third person (including any partnership in which such Person is a general partner and any unincorporated joint venture in which such Person is a joint venturer) to the extent such Person would be liable therefor under applicable Requirements of Law or any agreement or instrument by virtue of such Person’s ownership interest in such Person, except to the extent the terms of such Indebtedness provided that such Person is not liable therefor; provided that notwithstanding anything herein to the contrary, the term “Indebtedness” shall not include, and shall be calculated without giving effect to, the effects of Accounting Standards Codification Topic 815 and related interpretations to the extent such effects would otherwise increase or decrease an amount of Indebtedness for any purpose hereunder as a result of accounting for any embedded derivatives created by the terms of such Indebtedness.

 

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

 

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

 

“Information” has the meaning set forth in Section 3.11(a).

 

“Information Memorandum” means the Confidential Information Memorandum posted to SyndTrak on January 19, 2017, relating to Holdings, the Borrower and their Restricted Subsidiaries and the Transactions.

 

“Initial Term Lender” means any Lender with an Initial Term Loan Commitment or an outstanding Initial Term Loan.

 

“Initial Term Loan Commitment” means, with respect to each Term Lender, the commitment of such Term Lender to make Initial Term Loans hereunder in an aggregate amount not to exceed the amount set forth opposite such Term Lender’s name on the Commitment Schedule under “Initial Term Commitment”, as the same may be (a) reduced from time to time pursuant to Section 2.06 and (b) reduced or increased from time to time pursuant to (i) assignments by or to such Term Lender pursuant to Section 9.05 or (ii) increased from time to time pursuant to Section 2.19.  The aggregate amount of the Term Lenders’ Initial Term Loan Commitments on the Closing Date is $250,000,000.

 

“Initial Term Loans” means the term loans made by the Initial Term Lenders to the Borrower pursuant to Section 2.01, provided, that, upon any Borrowing of Delayed Draw Term Loans pursuant to Section 2.01(b), such Delayed Draw Term Loans shall be deemed to be an increase to the amount of such Initial Term Loans for all purposes hereunder.

 

“Intellectual Property Security Agreement” means any agreement executed on or after the Closing Date confirming or effecting the grant of any Lien on IP Rights owned by any Loan Party to the Administrative Agent, for the benefit of the Secured Parties, in accordance with this Agreement and the Security Agreement substantially in the form of Exhibit H or the exhibit thereto.

 

“Intercreditor Agreement” means the Intercreditor Agreement substantially in the form of Exhibit M, dated as of the Closing Date, among, inter alios, the ABL Administrative Agent, as agent for the “ABL Secured Parties” referred to therein, the Administrative Agent, as agent for the “Term Loan Secured Parties” referred to therein, and the Loan Parties from time to time party thereto.

 

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“Interest Election Request” means a request by the Borrower in the form of Exhibit D or such other form reasonably acceptable to the Administrative Agent to convert or continue a Borrowing in accordance with Section 2.05.

 

“Interest Payment Date” means (a) with respect to any ABR Loan, the last Business Day of each Fiscal Quarter and the Latest Maturity Date applicable to such Loan and (b) with respect to any Eurodollar Rate Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of any Eurodollar Rate Borrowing with an Interest Period of more than three months’ duration, each day that would have been an Interest Payment Date had successive Interest Periods of three months’ duration been applicable to such Borrowing.

 

“Interest Period” means with respect to any Eurodollar Rate Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months (or, to the extent approved by all relevant affected Lenders, twelve months or a shorter period) thereafter, as the Borrower may elect; provided that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and (ii) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period.  For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.

 

“Interpolated Rate” means at any time, the rate per annum 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) pages LIBOR01 or LIBOR02 of the Reuters screen for the longest period (for which that Eurodollar Rate is available in Dollars) that is shorter than the Impacted Interest Period and (b) pages LIBOR01 or LIBOR02 of the Reuters screen for the shortest period (for which that Eurodollar Rate is available for Dollars) that exceeds the Impacted Interest Period, in each case, at such time; provided that if the Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Investment” means (a) any purchase or other acquisition by the Borrower or any of its Restricted Subsidiaries of any of the Securities of any other Person, (b) the acquisition by purchase or otherwise (other than any purchase or other acquisition of inventory, materials, supplies and/or equipment in the ordinary course of business) of all or a substantial portion of the business, property or fixed assets of any other Person or any division or line of business or other business unit of any other Person and (c) any loan, advance or capital contribution by the Borrower or any of its Restricted Subsidiaries to any other Person.  Subject to Section 5.10, the amount of any Investment shall be the original cost of such Investment, plus the cost of any addition thereto that would otherwise constitute an Investment, without any adjustments for increases or decreases in value, or write-ups, write-downs or write-offs with respect thereto, but giving effect to any repayments of principal in the case of any Investment in the form of a loan and any return of capital or return on Investment in the case of any equity Investment (whether as a distribution, dividend, redemption or sale but not in excess of the amount of the relevant initial Investment).

 

“IP Rights” has the meaning assigned to such term in Section 3.05(c).

 

“IRS” means the U.S. Internal Revenue Service.

 

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“Junior Indebtedness” means any Indebtedness (other than Indebtedness (i) among the Borrower and/or its Restricted Subsidiaries and (ii) under any ABL Facility) that is expressly subordinated in right of payment to the Obligations with an individual outstanding principal amount in excess of the Threshold Amount.

 

“Junior Lien Indebtedness” means any Indebtedness that is secured by a security interest on the Collateral (other than Indebtedness (i) among the Borrower and/or its Restricted Subsidiaries and (ii) under any ABL Facility) that is expressly junior or subordinated to the Lien securing the Term Facility with an individual outstanding principal amount in excess of the Threshold Amount.

 

“Latest Maturity Date” means, as of any date of determination, the latest maturity or expiration date applicable to any Loan or commitment hereunder at such time, including the latest maturity or expiration date of any Term Loan or Term Commitment.

 

“Latest Term Loan Maturity Date” means, as of any date of determination, the latest maturity or expiration date applicable to any term loan or term commitment hereunder at such time, including the latest maturity or expiration date of any Term Loan or any Additional Term Loan Commitment.

 

“LCA Election” has the meaning assigned to such term in Section 1.10(c)

 

“LCA Test Date” has the meaning assigned to such term in Section 1.10(c)

 

“Legal Reservations” means the application of relevant Debtor Relief Laws, general principles of equity and/or principles of good faith and fair dealing.

 

“Lenders” means the Term Lenders, any lender with an Additional Term Loan Commitment or an outstanding Additional Term Loan and any other Person that becomes a party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.

 

“Letter-of-Credit Right” has the meaning set forth in Article 9 of the UCC.

 

“Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any Capital Lease having substantially the same economic effect as any of the foregoing), in each case, in the nature of security; provided that in no event shall an operating lease in and of itself be deemed to constitute a Lien.

 

“Limited Conditionality Acquisition” means a Permitted Acquisition, which, pursuant to the terms of the applicable definitive acquisition agreement (the “Subject Acquisition Agreement”) in respect thereof, is not conditioned on the availability of financing.

 

“Loan Documents” means this Agreement, the Fee Letter, any Promissory Note, each Loan Guaranty, the Collateral Documents, any intercreditor agreement required to be entered into pursuant to the terms of this Agreement to which any Loan Party is a party, each Refinancing Amendment, each Incremental Facility Amendment, each Extension Amendment and any other document or instrument designated by the Borrower and the Administrative Agent as a “Loan Document.”  Any reference in this Agreement or any other Loan Document to a Loan Document shall include all appendices, exhibits or schedules thereto.

 

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“Loan Guaranty” means the Guaranty Agreement, substantially in the form of Exhibit I hereto, executed by each Loan Party thereto and the Administrative Agent for the benefit of the Secured Parties, as supplemented in accordance with the terms of Section 5.12 hereof.

 

“Loan Installment Date” has the meaning assigned to such term in Section 2.07(a).

 

“Loan Parties” means Holdings, the Borrower and each Subsidiary Guarantor.

 

“Loan Guarantor” means Holdings and any Subsidiary Guarantor.

 

“Loans” means any Initial Term Loan or any Additional Term Loan.

 

“London Banking Day” means any day on which dealings in Dollar deposits are conducted by and between banks in the London interbank market.

 

“Management Investors” means the officers, directors, managers, employees and members of management of Holdings, the Borrower, any Parent Company and/or any subsidiary of the Borrower (including those of the Target and its subsidiaries).

 

“Margin Stock” has the meaning assigned to such term in Regulation U.

 

“Material Adverse Effect” means (a) on the Closing Date, a “Material Adverse Effect” (as defined in the Acquisition Agreement) and (b) after the Closing Date, a material adverse effect on (i) the business, assets, financial condition or results of operations, in each case, of the Borrower and its Restricted Subsidiaries, taken as a whole, (ii) the rights and remedies (taken as a whole) of the Administrative Agent under the applicable Loan Documents or (iii) the ability of the Loan Parties (taken as a whole) to perform their payment obligations under the applicable Loan Documents.

 

“Material Debt Instrument” means any physical instrument evidencing any Indebtedness for borrowed money which is required to be pledged and delivered to the Administrative Agent (or its bailee) pursuant to the Security Agreement.

 

“Material Real Estate Asset” means (a) on the Closing Date, each Real Estate Asset listed on Schedule 1.01(c) and (b)  any “fee-owned” Real Estate Asset acquired by any Loan Party after the Closing Date having a fair market value (as reasonably determined by the Borrower after taking into account any liabilities with respect thereto that impact such fair market value) in excess of $2,500,000 as of the date of acquisition thereof.

 

“Maturity Date” means (a) with respect to the Initial Term Loans, the Term Loan Maturity Date, (b) with respect to any Replacement Term Loans, the final maturity date for such Replacement Term Loans, as the case may be, as set forth in the applicable Refinancing Amendment, (c) with respect to any Incremental Facility, the final maturity date set forth in the applicable Incremental Facility Amendment, and (d) with respect to Extended Term Loans, the final maturity date set forth in the applicable Extension Amendment.

 

“Maximum Rate” has the meaning assigned to such term in Section 9.19.

 

“Merger” has the meaning assigned to such term in the Recitals to this Agreement.

 

“Merger Sub” has the meaning assigned to such term in the preamble to this Agreement.

 

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“Minimum Extension Condition” has the meaning assigned to such term in Section 2.20(b).

 

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

 

“Mortgages” means any 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 relevant Secured Parties, on any Material Real Estate Asset constituting Collateral.

 

“Multiemployer Plan” means any employee benefit plan which is a “multiemployer plan” as defined in Section 3(37) of ERISA, that is subject to the provisions of Title IV of ERISA, and in respect of which the Borrower or any of its Restricted Subsidiaries, or any of their respective ERISA Affiliates, makes or is obligated to make contributions or with respect to which any of them has any obligation or liability, contingent or otherwise.

 

“Narrative Report” means, with respect to the financial statements in respect of which it is delivered, a customary narrative report describing the operations of Holdings, the Borrower and its Restricted Subsidiaries for the relevant Fiscal Quarter or Fiscal Year and for the period from the beginning of the then-current Fiscal Year to the end of the period to which the relevant financial statements relate.

 

“Net Insurance/Condemnation Proceeds” means an amount equal to: (a) any Cash payments or proceeds (including Cash Equivalents) received by the Borrower or any of its Restricted Subsidiaries (i) under any casualty insurance policy in respect of a covered loss thereunder of any assets of the Borrower or any of its Restricted Subsidiaries or (ii) as a result of the taking of any assets of the Borrower or any of its Restricted Subsidiaries by any Person pursuant to the power of eminent domain, condemnation or otherwise, or pursuant to a sale of any such assets to a purchaser with such power under threat of such a taking, minus (b) (i) any actual out-of-pocket costs incurred by the Borrower or any of its Restricted Subsidiaries in connection with the adjustment, settlement or collection of any claims of the Borrower or the relevant Restricted Subsidiary in respect thereof, (ii) payment of the outstanding principal amount of, premium or penalty, if any, and interest and other amounts on any Indebtedness (other than the Loans, Indebtedness under any ABL Facility and any Indebtedness secured by a Lien on the Collateral that is pari passu with or expressly subordinated to the Lien on the Collateral securing any Secured Obligation) that is secured by a Lien on the assets in question and that is required to be repaid or otherwise comes due or would be in default under the terms thereof as a result of such loss, taking or sale, (iii) in the case of a taking, the reasonable out-of-pocket costs of putting any affected property in a safe and secure position, (iv) any selling costs and out-of-pocket expenses (including reasonable broker’s fees or commissions, legal fees, transfer and similar Taxes and the Borrower’s good faith estimate of income Taxes paid or payable (including pursuant to Tax sharing arrangements)) in connection with any sale or taking of such assets as described in clause (a) of this definition and (v) any amounts provided as a reserve in accordance with GAAP against any liabilities under any indemnification obligation or purchase price adjustments associated with any sale or taking of such assets as referred to in clause (a) of this definition (provided that to the extent and at the time any such amounts are released from such reserve, such amounts shall constitute Net Insurance/Condemnation Proceeds).

 

“Net Proceeds” means (a) with respect to any Disposition (including any Prepayment Asset Sale), the Cash proceeds (including Cash Equivalents and Cash proceeds subsequently received (as and when received) in respect of non-cash consideration initially received) received by the Borrower or any Restricted Subsidiary, net of (i) selling costs and out-of-pocket expenses (including reasonable broker’s fees or commissions, legal fees, transfer and similar Taxes and the Borrower’s good faith estimate of income Taxes paid or payable (including pursuant to Tax sharing arrangements) in connection with such Disposition), (ii) amounts provided as a reserve in accordance with GAAP against any liabilities under

 

39

 

any indemnification obligation or purchase price adjustment associated with such Disposition (provided that to the extent and at the time any such amounts are released from such reserve, such amounts shall constitute Net Proceeds), (iii) the principal amount, premium or penalty, if any, interest and other amounts on any Indebtedness (other than the Loans, Indebtedness under any ABL Facility and any other Indebtedness secured by a Lien that is pari passu or expressly subordinated to the Lien on the Collateral securing the Secured Obligations) which is secured by the asset sold in such Disposition and which is required to be repaid or otherwise comes due or would be in default and is repaid (other than any such Indebtedness that is assumed by the purchaser of such asset) and (iv) Cash escrows (until released from escrow to the Borrower or any of its Restricted Subsidiaries) from the sale price for such Disposition; and (b) with respect to any issuance or incurrence of Indebtedness or Capital Stock, the Cash proceeds thereof, net of all Taxes and customary fees, commissions, costs, underwriting discounts and other fees and expenses incurred in connection therewith, in each case, less any withholding Taxes payable upon the distribution of such amounts to the Borrower or any of its Restricted Subsidiaries.

 

“Non-Consenting Lender” has the meaning assigned to such term in Section 2.16(b).

 

“Non-Loan Party Cap” means $10,000,000.

 

“Non-Loan Party Indebtedness” means Indebtedness incurred by Restricted Subsidiaries that are not Loan Parties pursuant to Sections 6.01(i), 6.01(k), and the proviso to 6.01(q).

 

“Non-Loan Party Investment Cap” means $15,000,000.

 

“Notice of Intent to Cure” has the meaning assigned to such term in Section 6.12(b).

 

“Obligations” means all unpaid principal of and accrued and unpaid interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans, all accrued and unpaid fees and all expenses, reimbursements, indemnities and all other advances to, debts, liabilities and obligations of any Loan Party to the Lenders or to any Lender, the Administrative Agent or any indemnified party arising under the Loan Documents in respect of any Loan, whether direct or indirect (including those acquired by assumption), absolute, contingent, due or to become due, now existing or hereafter arising.

 

“OFAC” has the meaning assigned to such term in Section 3.15(a).

 

“Organizational Documents” means (a) with respect to any corporation, its certificate or articles of incorporation or organization and its by-laws, (b) with respect to any limited partnership, its certificate of limited partnership and its partnership agreement, (c) with respect to any general partnership, its partnership agreement, (d) with respect to any limited liability company, its articles of organization or certificate of formation, and its operating agreement and (e) with respect to any other form of entity, such other organizational documents required by local Requirements of Law or customary under such jurisdiction to document the formation and governance principles of such type of entity.  In the event that any term or condition of this Agreement or any other Loan Document requires any Organizational Document to be certified by a secretary of state or similar governmental official, the reference to any such “Organizational Document” shall only be to a document of a type customarily certified by such governmental official.

 

“Other Applicable Indebtedness” has the meaning assigned to such term in Section 2.08(b)(ii).

 

“Other Connection Taxes” means, with respect to any Lender or Administrative Agent, Taxes imposed as a result of a present or former connection between such recipient and the jurisdiction

 

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imposing such Tax (other than connections arising solely from such recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, or engaged in any other transaction pursuant to or enforced any Loan Document or sold or assigned an interest in any Loan or Loan Document).

 

“Other Taxes” means all present or future stamp, court, documentary, intangible, recording, filing or similar Taxes arising from any payment made under any Loan Document or from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, but excluding (i) any Excluded Taxes or (ii) any Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.16).

 

“Parent Company” means (a) Holdings and (b) any other Person of which the Borrower is an indirect Wholly-Owned Subsidiary.

 

“Participant” has the meaning assigned to such term in Section 9.05(c)(i).

 

“Participant Register” has the meaning assigned to such term in Section 9.05(c)(iii).

 

“Patent” means any and all (a) patents and patent applications; (b) inventions described and claimed therein, (c)  reissues, divisions, continuations, renewals, extensions, and continuations-in-part thereof, (d)  income, royalties, damages, claims and payments now or hereafter due or payable under and with respect thereto, including, without limitation, damages and payments for past and future infringements thereof, (e)  rights to sue for past, present and future infringements thereof, and (f)  rights corresponding to any of the foregoing throughout the world.

 

“PBGC” means the Pension Benefit Guaranty Corporation.

 

“Pension Plan” means any employee pension benefit plan, as defined in Section 3(2) of ERISA (other than a Multiemployer Plan), which is subject to the provisions of Title IV of ERISA or Sections 412 or 430 of the Code or Sections 302 or 303 of ERISA and which the Borrower or any of its Restricted Subsidiaries, or any of their respective ERISA Affiliates, sponsors, maintains or contributes to or has an obligation to contribute to, or with respect to which any of them has any liability, contingent or otherwise.

 

“Perfection Certificate” means a certificate substantially in the form of Exhibit E.

 

“Perfection Certificate Supplement” means a supplement to the Perfection Certificate substantially in the form of Exhibit F.

 

“Perfection Requirements” means the filing of appropriate financing statements with the office of the Secretary of State or other appropriate office of the state of organization of each Loan Party, the filing of appropriate grants, assignments or notices with the U.S. Patent and Trademark Office and the U.S. Copyright Office, the proper recording or filing, as applicable, of Mortgages and fixture filings with respect to any Material Real Estate Asset constituting Collateral, in each case in favor of the Administrative Agent for the benefit of the Secured Parties and the delivery to the Administrative Agent of any stock certificate or promissory note required to be delivered pursuant to the applicable Loan Documents, together with instruments of transfer executed in blank.

 

“Permitted Acquisition” means any acquisition made by the Borrower or any of its Restricted Subsidiaries, whether by purchase, merger or otherwise, of all or substantially all of the assets of, or any business line, unit or division of, any Person or of all of the outstanding Capital Stock of any Person who

 

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is engaged in a Similar Business and becomes a Restricted Subsidiary; provided that the total consideration paid by Persons that are Loan Parties (a) for the Capital Stock of any Person that does not become a Loan Party or is not a Loan Party, and (b) in the case of an asset acquisition, assets that are not acquired by any Loan Party, when taken together with the total consideration for all such Persons and assets so acquired after the Closing Date and all Investments made since the Closing Date pursuant to Section 6.06(b)(iii), shall not exceed the sum of (i) the Non-Loan Party Investment Cap and (ii) amounts otherwise available under Section 6.06 to be invested in non-Loan Parties (it being understood that amounts utilized under this clause (ii) shall be deemed a utilization of the applicable basket or exception in Section 6.06); provided that (A) the limitation described in this proviso shall not apply to any acquisition to the extent (1) any such consideration is financed with the proceeds of sales of the Qualified Capital Stock of, or common equity capital contributions to, the Borrower or any Restricted Subsidiary (but only to the extent not otherwise applied as a Cure Amount, to increase the Available Amount or Available Excluded Contribution Amount, or to make Restricted Payments or Restricted Debt Payments hereunder) or (2) the Person so acquired (or the Person owning the assets so acquired) becomes a Subsidiary Guarantor even though such Person owns Capital Stock in Persons that are not otherwise required to become Subsidiary Guarantors, if, in the case of this clause (2), at least 70.0% of the Consolidated Adjusted EBITDA of the Person(s) acquired in such acquisition (or the Persons owning the assets so acquired) (for this purpose and for the component definitions used in the definition of “Consolidated Adjusted EBITDA”, determined on a consolidated basis for such Person(s) and their respective Restricted Subsidiaries) is generated by Person(s) that will become Subsidiary Guarantors (i.e., disregarding any Consolidated Adjusted EBITDA generated by Restricted Subsidiaries of such Persons that are not (or will not become) Subsidiary Guarantors) and (B) in the event that the amount available under the Non-Loan Party Investment Cap is reduced as a result of any acquisition of any Restricted Subsidiary that does not become a Loan Party or any assets that are not transferred to a Loan Party and such Restricted Subsidiary subsequently becomes a Loan Party or such assets are subsequently transferred to a Loan Party, as the case may be, the amount available under the Non-Loan Party Investment Cap shall be proportionately increased as a result thereof based upon the amount of the Non-Loan Party Investment Cap utilized with respect to the acquisition of such Person or assets, as the case may be; provided further that (x) the Borrower shall be in compliance with the financial covenant set forth in Section 6.12(a) calculated on a Pro Forma Basis as of the last day of the most recently ended Test Period and (y) no Event of Default then exists or would result after giving pro forma effect to such acquisition, provided, further, that if such purchase or other acquisition is a Limited Conditionality Acquisition which is financed with the proceeds of Incremental Term Loans, Incremental Equivalent or Indebtedness incurred under Section 6.01(q), and the Borrower makes an LCA Election with respect to such Limited Conditionality Acquisition, the foregoing condition shall be tested as of the LCA Test Date, so  long as  upon  the effectiveness  of such  Indebtedness, no  Event of Default under Section 7.01(a), 7.01(f) or 7.01(g) shall exist.

 

“Permitted Holders” means, collectively, Hennessy Capital LLC, Don R. Daseke, Barbara Daseke, family trusts controlled by Don Daseke or Barbara Daseke, the Walden Group, Inc. and R. Scott Wheeler (or, in each case, within sixty (60) days after their death or incapacity, one or more successors acceptable to the Administrative Agent).

 

“Permitted Liens” means Liens permitted pursuant to Section 6.02.

 

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

 

“Plan” means an “employee benefit plan” as defined in Section 3(3) of ERISA regardless of whether such plan is subject to ERISA that the Borrower or any of its Restricted Subsidiaries sponsors,

 

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maintains or contributes to or has an obligation to contribute to, or otherwise has liability, contingent or otherwise.

 

“Platform” has the meaning set forth in Section 5.01.

 

“Prepayment Asset Sale” means any Disposition by the Borrower or any of its Restricted Subsidiaries made pursuant to Section 6.07(h), Section 6.07(o) and Section 6.07(x); provided that so long as any ABL Facility is in effect, any such sale or disposition of any ABL Facility Priority Collateral to the extent the net proceeds of which are required to be applied to repay the loans under any ABL Facility shall not be considered a “Prepayment Asset Sale” for any purpose under this Agreement.

 

“primary obligor” has the meaning assigned to such term in the definition of “Guarantee”.

 

“Prime Rate” means the rate of interest per annum determined from time to time by Credit Suisse as its prime rate in effect at its principal office in New York City and notified to the Borrower.

 

“Pro Forma Basis” or “pro forma effect” means, with respect to any determination of the First Lien Leverage Ratio, the Total Leverage Ratio, the Secured Leverage Ratio or Consolidated Adjusted EBITDA (including component definitions thereof) that all Subject Transactions shall be deemed to have occurred as of the first day of the applicable Test Period with respect to any test or covenant for which such calculation is being made and that:

 

(a)           (i) in the case of (A) any Disposition of all or substantially all Capital Stock of any Restricted Subsidiary of the Borrower or any division or product line of the Borrower or any of its Restricted Subsidiaries, (B) any designation of a Restricted Subsidiary as an Unrestricted Subsidiary and (C) the implementation of any Cost Saving Initiative, income statement items (whether positive or negative and including any Expected Cost Savings) attributable to the property or Person subject to such Subject Transaction, shall be excluded as of the first day of the applicable Test Period with respect to any test or covenant for which the relevant determination is being made and (ii) in the case of any Permitted Acquisition, Investment and/or designation of an Unrestricted Subsidiary as a Restricted Subsidiary described in the definition of the term “Subject Transaction”, income statement items (whether positive or negative) attributable to the property or Person subject to such Subject Transaction shall be included as of the first day of the applicable Test Period with respect to any test or covenant for which the relevant determination is being made; provided that the foregoing pro forma adjustments may be applied to any such test or covenant solely to the extent that such adjustments are consistent with the definition of “Consolidated Adjusted EBITDA”,

 

(b)           any retirement or repayment of Indebtedness shall be deemed to have occurred as of the first day of the applicable Test Period with respect to any test or covenant for which the relevant determination is being made, and

 

(c)           any Indebtedness incurred by the Borrower or any of its Restricted Subsidiaries in connection therewith shall be deemed to have occurred as of the first day of the applicable Test Period with respect to any test or covenant for which the relevant determination is being made; provided that, (x) if such Indebtedness has a floating or formula rate, such Indebtedness shall have an implied rate of interest for the applicable Test Period for purposes of this definition determined by utilizing the rate that is or would be in effect with respect to such Indebtedness at the relevant date of determination (taking into account any interest hedging arrangements applicable to such Indebtedness), (y) interest on any obligation with respect to any Capital Lease shall be deemed to accrue at an interest rate reasonably determined by a Responsible Officer of the Borrower to be the rate of interest implicit in such obligation in accordance with GAAP and (z) interest on any Indebtedness that may optionally be determined at an interest rate

 

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based upon a factor of a prime or similar rate, a Eurodollar interbank offered rate or other rate shall be determined to have been based upon the rate actually chosen, or if none, then based upon such optional rate chosen by the Borrower.

 

Notwithstanding anything to the contrary set forth in this definition, for the avoidance of doubt, when calculating the Total Leverage Ratio for purposes of Section 6.12(a) (other than for the purpose of determining pro forma compliance with Section 6.12(a) as a condition to taking any action under this Agreement), or when calculating the First Lien Leverage Ratio for the purpose of calculating the Required Excess Cash Flow Percentage, the events described in the immediately preceding paragraph that occurred subsequent to the end of the applicable Test Period shall not be given pro forma effect.

 

“Proceeding” has the meaning assigned to such term in Section 9.03(b).

 

“Projections” means the financial projections and pro forma financial statements of the Borrower and its subsidiaries included in the Information Memorandum (or a supplement thereto).

 

“Promissory Note” means a promissory note of the Borrower payable to any Lender or its registered assigns, in substantially the form of Exhibit G hereto, evidencing the aggregate outstanding principal amount of Loans of the Borrower to such Lender resulting from the Loans made by such Lender.

 

“Public Company Costs” means Charges of Holdings, the Borrower or its subsidiaries associated with, or in anticipation of, or preparation for, compliance with the requirements of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith and Charges relating to compliance with the provisions of the Securities Act and the Exchange Act (and, in each case, similar Requirements of Law under other jurisdictions), as applicable to companies with equity or debt securities held by the public, the rules of national securities exchange companies with listed equity or debt securities, directors’ or managers’ compensation, fees and expense reimbursement, disbursements, Charges relating to investor relations, shareholder meetings and reports to shareholders or debtholders, directors’ and officers’ insurance and other executive costs, legal and other professional fees and listing fees.

 

“Public Lender” has the meaning set forth in Section 5.01.

 

“Qualified Capital Stock” of any Person means any Capital Stock of such Person that is not Disqualified Capital Stock.

 

“Qualifying Offering” means the issuance and sale by the Borrower or any Parent Company of its common Capital Stock in a primary offering (other than a public offering pursuant to a registration statement on Form S-8) pursuant to which Net Proceeds are received by any Parent Company and contributed to the Borrower.

 

“Real Estate Asset” means, at any time of determination, all right, title and interest (fee, leasehold or otherwise) of any Loan Party in and to real property (including, but not limited to, land, improvements and fixtures thereon).

 

“Refinancing Amendment” means an amendment to this Agreement that is reasonably satisfactory to the Administrative Agent and the Borrower executed by (a) Holdings and the Borrower, (b) the Administrative Agent and (c) each Lender that agrees to provide all or any portion of the Replacement Term Loans, as applicable, being incurred pursuant thereto and in accordance with Section 9.02(c).

 

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

 

“Register” has the meaning assigned to such term in Section 9.05(b)(iv).

 

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

 

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

 

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

 

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

 

“Related Funds” means with respect to any Lender that is an Approved Fund, any other Approved Fund that is managed by the same investment advisor as such Lender or by an Affiliate of such investment advisor.

 

“Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the respective directors, managers, officers, trustees, employees, partners, agents, advisors and other representatives of such Person and such Person’s Affiliates (other than, in any case, any Disqualified Institution).

 

“Release” means any release, spill, emission, leaking, pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material into the indoor or outdoor environment (including the abandonment or disposal of any barrels, containers or other closed receptacles containing any Hazardous Material), including the movement of any Hazardous Material through the air, soil, sediment, surface water or groundwater.

 

“Replaced Term Loans” has the meaning assigned to such term in Section 9.02(c).

 

“Replacement Term Loans” has the meaning assigned to such term in Section 9.02(c).

 

“Representative” has the meaning assigned to such term in Section 9.13.

 

“Repricing Transaction” means each of (a) the prepayment, repayment, refinancing, substitution, repricing or replacement of all or a portion of the Initial Term Loans substantially concurrently with the incurrence or guarantee by any Loan Party of any secured term loans (including any Replacement Term Loans) having an Effective Yield that is less than the Effective Yield applicable to the Initial Term Loans so prepaid, repaid, refinanced, substituted, repriced or replaced and (b) any amendment, waiver or other modification to this Agreement that would have the effect of reducing the Effective Yield applicable to the Initial Term Loans; provided that the primary purpose of such prepayment, repayment, refinancing, substitution, replacement, amendment, waiver or other modification was to reduce the Effective Yield applicable to the Initial Term Loans; provided, further, that in no event shall any such prepayment, repayment, refinancing, substitution, replacement, amendment, waiver or other modification in connection with a Change of Control, Qualifying Offering or Permitted Acquisition or similar Investment (including any Investment in a Similar Business) constitute a Repricing Transaction.  Any determination by the Administrative Agent of the Effective Yield for purposes of the definition shall be conclusive and

 

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binding on all Lenders, and the Administrative Agent shall have no liability to any Person with respect to such determination absent bad faith, gross negligence or willful misconduct.

 

“Required Excess Cash Flow Percentage” means, as of the most recent Test Period prior to the date of determination, (a) if the First Lien Leverage Ratio is greater than to 2.75:1.00, 50%, (b) if the First Lien Leverage Ratio is less than or equal to 2.75:1.00 and greater than 2.00:1.00, 25%, and (c) if the First Lien Leverage Ratio is less than or equal to 2.00:1.00, 0%; provided, for the Excess Cash Flow Period ending on or about December 31, 2018, the Required Excess Cash Flow Percentage shall be 50%.

 

“Required Delayed Draw Term Lenders” means, as of any date of determination, Delayed Draw Term Lenders holding more than 50% of the sum of (x) the aggregate amount of all Delayed Draw Term Loans then outstanding and (y) the aggregate Delayed Draw Term Commitments.

 

“Required Lenders” means, at any time, Lenders having Loans or unused Commitments representing more than 50% of the sum of the total Loans and such unused commitments at such time.

 

“Requirements of Law” means, with respect to any Person, collectively, the common law and all federal, state, local, foreign, multinational or international laws, statutes, codes, treaties, rules and regulations, guidelines, ordinances, orders, judgments, writs, injunctions, decrees (including administrative or judicial precedents or authorities) and the interpretation or administration thereof by, and other determinations, directives, requirements of any Governmental Authority, in each case that are applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

 

“Responsible Officer” means, with respect to any Person, the chief executive officer, the president, the chief financial officer, the treasurer, any assistant treasurer, any executive vice president, any senior vice president, any vice president or the chief operating officer of such Person and any other individual or similar official thereof responsible for the administration of the obligations of such Person in respect of this Agreement, and, as to any document delivered on the Closing Date, shall include any secretary or assistant secretary or any other individual or similar official thereof with substantially equivalent responsibilities of a Loan Party.  Any document delivered hereunder that is signed by a Responsible Officer of any Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party, and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.

 

“Responsible Officer Certification” means, with respect to the financial statements for which such certification is required, the certification of a Responsible Officer of Holdings that such financial statements fairly present, in all material respects, in accordance with GAAP, the consolidated financial condition of Holdings as at the dates indicated and its consolidated income and cash flows for the periods indicated, subject to changes resulting from audit and normal year-end adjustments.

 

“Restricted Amount” has the meaning set forth in Section 2.08(b)(iv)(B).

 

“Restricted Debt” has the meaning set forth in Section 6.04(b).

 

“Restricted Debt Payment” has the meaning set forth in Section 6.04(b).

 

“Restricted Payment” means (a) any dividend or other distribution on account of any shares of any class of the Capital Stock of the Borrower, except a dividend payable solely in shares of Qualified Capital Stock to the holders of such class; (b) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value of any shares of any class of the Capital Stock of the

 

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Borrower and (c) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire shares of any class of the Capital Stock of the Borrower now or hereafter outstanding.

 

“Restricted Subsidiary” means, as to any Person, any subsidiary of such Person that is not an Unrestricted Subsidiary.  Unless otherwise specified, “Restricted Subsidiary” shall mean any Restricted Subsidiary of the Borrower.

 

“Retained Excess Cash Flow Amount” means, at any date of determination, an amount, not less than zero and determined on a cumulative basis, that is equal to the aggregate cumulative sum of Excess Cash Flow that is not required to be applied as a mandatory prepayment under Section 2.08(b)(i) (without giving effect to clause (B) thereof or to Section 2.08(b)(v)) for all Excess Cash Flow Periods ending after the Closing Date and prior to such date of determination.

 

“S&P” means Standard & Poor’s Ratings Services or any successor by merger or consolidation to its business.

 

“Sale and Lease-Back Transaction” means any transaction under which the Borrower or any of its Restricted Subsidiaries shall, directly or indirectly, become or remain liable as lessee or as a guarantor or other surety with respect to any lease of any property (whether real, personal or mixed), whether now owned or hereafter acquired, which the Borrower or the relevant Restricted Subsidiary (a) is to sell or to transfer to any other Person (other than the Borrower or any of its Restricted Subsidiaries) and (b) intends to use for substantially the same purpose as the property which has been or is to be sold or transferred by the Borrower or such Restricted Subsidiary to any Person (other than the Borrower or any of its Restricted Subsidiaries) in connection with such lease.

 

“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.

 

“Sanctioned Country” means, at any time, a country, region or territory which is itself the subject or target of any Sanctions (on the Closing Date, Crimea, Cuba, Iran, North Korea, Sudan and Syria).

 

“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any or all of its functions.

 

“Secured Hedging Obligations” means all Hedging Obligations (other than any Excluded Swap Obligation) under each Hedge Agreement that (a) is in effect on the Closing Date between any Loan Party and a counterparty that is the Administrative Agent, a Lender or an Arranger or any Affiliate of the Administrative Agent, a Lender or an Arranger as of the Closing Date or (b) is entered into after the Closing Date between any Loan Party and any counterparty that is (or is an Affiliate of) the Administrative Agent, any Lender or any Arranger at the time such Hedge Agreement is entered into, for which such Loan Party agrees to provide security and in each case that has been designated to the Administrative Agent in writing by the Borrower as being a Secured Hedging Obligation for purposes of the Loan Documents, it being understood that each counterparty thereto shall be deemed (A) to appoint the Administrative Agent as its agent under the applicable Loan Documents and (B) to agree to be bound by the provisions of Article 8, Section 9.03, Section 9.10 and the Intercreditor Agreement as if it were a Lender.

 

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“Secured Leverage Ratio” means the ratio, as of any date of determination, of (a) Consolidated Secured Debt as of such date to (b) Consolidated Adjusted EBITDA for the Test Period then most recently ended, in each case of the Borrower and its Restricted Subsidiaries on a consolidated basis.

 

“Secured Obligations” means all Obligations, together with (a) all Banking Services Obligations and (b) all Secured Hedging Obligations; provided that Banking Services Obligations and Secured Hedging Obligations shall cease to constitute Secured Obligations on and after the Termination Date.

 

“Secured Parties” means (i) the Lenders, (ii) the Administrative Agent, (iii) each counterparty to a Hedge Agreement with a Loan Party the obligations under which constitute Secured Hedging Obligations, (iv) each provider of Banking Services to any Loan Party the obligations under which constitute Banking Services Obligations and (v) the beneficiaries of each indemnification obligation undertaken by any Loan Party under any Loan Document.

 

“Securities” means any stock, shares, partnership interests, voting trust certificates, certificates of interest or participation in any profit-sharing agreement or arrangement, options, warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in temporary or interim certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing; provided that “Securities” shall not include any earn-out agreement or obligation or any employee bonus or other incentive compensation plan or agreement.

 

“Securities Act” means the Securities Act of 1933 and the rules and regulations of the SEC promulgated thereunder.

 

“Security Agreement” means the Term Loan Pledge and Security Agreement, substantially in the form of Exhibit J, among the Loan Parties and the Administrative Agent for the benefit of the Secured Parties.

 

“Similar Business” means any Person the majority of the revenues of which are derived from a business that would be permitted by Section 6.13 if the references to “Restricted Subsidiaries” in Section 6.13 were read to refer to such Person.

 

“SPC” has the meaning assigned to such term in Section 9.05(e).

 

“Specified Acquisition Agreement Representations” means the representations made by or on behalf of the Target, its subsidiaries or their respective businesses in the Acquisition Agreement as are material to the interests of the Lenders, but only to the extent that the Borrower or the Borrower’s applicable Affiliate shall have the right to terminate the Borrower’s (or such Affiliate’s) obligations under the Acquisition Agreement or to decline to consummate the Acquisition as a result of a breach of such representations in the Acquisition Agreement.

 

“Specified Representations” mean the representations and warranties set forth in Section 3.01(a) (as it relates to organizational existence of the Loan Parties), Section 3.02 (as it relates to corporate or organizational power or authority (in connection with the due authorization, execution, delivery and performance of the Loan Documents) and the enforceability thereof), Section 3.03(b), Section 3.08, Section 3.12 (as it relates to the creation, validity and perfection of the security interests in the Collateral), Section 3.14, Section 3.15 and Section 3.16.

 

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“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the Administrative Agent is subject with respect to the Adjusted Eurodollar Rate, for Eurodollar funding (currently referred to as “Eurodollar Liabilities” in Regulation D).  Such reserve percentages shall include those imposed pursuant to such Regulation D.  Eurodollar Rate Loans shall be deemed to constitute Eurodollar funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D or any comparable regulation.  The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

 

“Subject Acquisition Agreement” has the meaning specified in the definition of “Limited Conditionality Acquisition”.

 

“Subject Loans” has the meaning assigned to such term in Section 2.08(b)(ii).

 

“Subject Person” has the meaning assigned to such term in the definition of “Consolidated Net Income”.

 

“Subject Proceeds” has the meaning assigned to such term in Section 2.08(b)(ii).

 

“Subject Transaction” means, with respect to any Test Period, (a) the Transactions, (b) any Permitted Acquisition or any other acquisition, whether by purchase, merger or otherwise, of all or substantially all of the assets of, or any business line, unit or division of, any Person or of a majority of the outstanding Capital Stock of any Person in each case that is permitted by this Agreement, (c) any Disposition of all or substantially all of the assets or Capital Stock of any subsidiary (or any business unit, line of business or division of the Borrower or a Restricted Subsidiary) not prohibited by this Agreement, (d) the designation of a Restricted Subsidiary as an Unrestricted Subsidiary or an Unrestricted Subsidiary as a Restricted Subsidiary in accordance with Section 5.10 hereof, (e) any incurrence or repayment of Indebtedness in connection with a transaction that would otherwise constitute a Subject Transaction, (f) the implementation of any Cost Savings Initiative and/or (g) any other event that by the terms of the Loan Documents requires pro forma compliance with a test or covenant hereunder or requires such test or covenant to be calculated on a Pro Forma Basis.

 

“subsidiary” means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which more than 50% of the total voting power of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers, trustees or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other subsidiaries of such Person or a combination thereof; provided that in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interests in the nature of a “qualifying share” of the former Person shall be deemed to be outstanding.  Unless otherwise specified, “subsidiary” shall mean any subsidiary of the Borrower.

 

“Subsidiary Guarantor” means (x) on the Closing Date, each subsidiary of the Borrower (other than any such subsidiary that is an Excluded Subsidiary on the Closing Date) and (y) thereafter, each subsidiary of the Borrower that becomes a guarantor of the Secured Obligations pursuant to the terms of this Agreement, in each case, until such time as the relevant subsidiary is released from its obligations under the Loan Guaranty in accordance with the terms and provisions hereof.

 

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“Successor Borrower” has the meaning assigned to such term in Section 6.07(a).

 

“Successor Holdings” has the meaning assigned to such term in Section 6.11(d).

 

“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.

 

“Target” has the meaning assigned to such term in the Recitals to this Agreement.

 

“Target Refinancing” has the meaning assigned to such term in Section 4.01(l).

 

“Taxes” means any and all present and 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.

 

“Term Commitment” means any Initial Term Commitment, any Delayed Draw Term Commitment and any Additional Term Loan Commitment.

 

“Term Facility” means the Term Loans provided to or for the benefit of the Borrower pursuant to the terms of this Agreement.

 

“Term Lender” means any Initial Term Lender and any Additional Term Lender.

 

“Term Loan” means the Initial Term Loans and if applicable, any Additional Term Loans.

 

“Term Loan Maturity Date” means the date that is seven years after the Closing Date.

 

“Term Loan Priority Collateral” has the meaning assigned to such term in the Intercreditor Agreement.

 

“Termination Date” has the meaning assigned to such term in the lead-in to Article 5.

 

“Test Period” means, as of any date, the period of four consecutive Fiscal Quarters then most recently ended for which financial statements under Section 5.01(a) or (b), as applicable, have been delivered (or are required to have been delivered); it being understood and agreed that prior to the first delivery of financial statements of Section 5.01(a), “Test Period” means the period of four consecutive Fiscal Quarters in respect of which financial statements for the Target are available and have been delivered to the Administrative Agent.

 

“Threshold Amount” means $10,000,000.

 

“Total Leverage Ratio” means the ratio, as of any date of determination, of (a) Consolidated Total Debt outstanding as of the last day of the Test Period then most recently ended to (b) Consolidated Adjusted EBITDA for the Test Period then most recently ended, in each case of the Borrower and its Restricted Subsidiaries on a consolidated basis.

 

“Trademark” means any and all (a) trademarks (including service marks), common law marks, trade names, trade dress, and logos, slogans and other indicia of origin under the Requirements of Laws of any jurisdiction in the world, and the registrations and applications for registration thereof and the goodwill of the business symbolized by the foregoing, (b) renewals of the foregoing, (c)  income, royalties, damages, and payments now or hereafter due or payable with respect thereto, including, without

 

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limitation, damages, claims, and payments for past and future infringements thereof, (d) rights to sue for past, present and future infringements of the foregoing, including the right to settle suits involving claims and demands for royalties owing, and (e) rights corresponding to any of the foregoing throughout the world.

 

“Transaction Costs” means fees, premiums, expenses and other transaction costs (including original issue discount or upfront fees) payable or otherwise borne by Holdings and/or its subsidiaries in connection with the Transactions and the transactions contemplated thereby.

 

“Transactions” means, collectively, (a) the execution and delivery by the Loan Parties of the Loan Documents to which they are a party and the borrowing of Initial Term Loans hereunder on the Closing Date, (b) the Merger and the other transactions contemplated by the Acquisition Agreement, (c)  the Equity Contribution, (d) the Target Refinancing, (e) the execution and delivery by the Loan Parties of the Loan Documents (as defined in the ABL Credit Agreement) to which they are a party and (f) the payment of Transaction Costs.

 

“Trust Fund Accounts” has the meaning assigned to such term in the definition of “Excluded Assets”.

 

“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 Eurodollar 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 any other state the laws of which are required to be applied in connection with the creation or perfection of security interests.

 

“Unrestricted Cash Amount” means, as of any date of determination, the amount of (a) unrestricted Cash and Cash Equivalents of the Borrower and its Restricted Subsidiaries whether or not held in a Deposit Account pledged to secure the Secured Obligations and (b) Cash and Cash Equivalents of the Borrower and its Restricted Subsidiaries restricted in favor of the Term Facility (which may also include Cash and Cash Equivalents securing other Indebtedness that is secured by a Lien on the Collateral along with the Term Facility, including any ABL Facility).

 

“Unrestricted Subsidiary” means any subsidiary of the Borrower designated by the Borrower as an Unrestricted Subsidiary after the Closing Date pursuant to Section 5.10.

 

“U.S.” means the United States of America.

 

“U.S. Tax Compliance Certificate” has the meaning assigned to such term in Section 2.14(f).

 

“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. No. 107-56 (signed into law October 26, 2001)).

 

“Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing: (a) the sum of the products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof, by (ii) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by (b) the then outstanding principal amount of such Indebtedness.

 

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“Wholly-Owned Subsidiary” of any Person means a subsidiary of such Person, 100% of the Capital Stock of which (other than directors’ qualifying shares or shares required by Requirements of Law to be owned by a resident of the relevant jurisdiction) shall be owned by such Person or by one or more Wholly-Owned Subsidiaries of such Person.

 

“Withholding Agent” means any Loan Party and the Administrative Agent.

 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

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

 

Section 1.03          Terms Generally.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein or in any Loan Document (including any Loan Document and the ABL Credit Agreement) shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, amended and restated, supplemented or otherwise modified or extended, replaced or refinanced (subject to any restrictions or qualifications on such amendments, restatements, amendment and restatements, supplements or modifications or extensions, replacements or refinancings set forth herein), (b) any reference to any Requirement of Law in any Loan Document shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Requirement of Law, (c) any reference herein or in any Loan Document to any Person shall be construed to include such Person’s successors and permitted assigns, (d) the words “herein,” “hereof” and “hereunder,” and words of similar import, when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular provision hereof, (e) all references herein or in any Loan Document to Articles, Sections, clauses, paragraphs, Exhibits and Schedules shall be construed to refer to Articles, Sections, clauses and paragraphs of, and Exhibits and Schedules to, such Loan Document, (f) in the computation of periods of time in any Loan Document from a specified date to a later specified date, the word “from” means “from and including”, the words “to” and “until” mean “to but excluding” and the word “through” means “to and including” and (g) the words “asset” and “property”, when used in any Loan Document, shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including Cash, Cash Equivalents, securities, accounts and contract rights.  For purposes of determining compliance at any time with Sections 6.01, 6.02, 6.03, 6.04, 6.05, 6.06, 6.07 and 6.08, in the event that any Indebtedness, Lien, contractual restriction, Restricted Payment, Restricted Debt Payment, Investment, Disposition or Affiliate transaction, as applicable, meets the criteria of more than one of the categories of transactions or items permitted pursuant to any clause of such Sections 6.01 (other than Sections 6.01(a), (r) and (s)), 6.02 (other than Sections 6.02(a) and (r)), 6.03, 6.04, 6.05, 6.06, 6.07 and 6.08, the Borrower, in its sole discretion, may, from time to time, classify (but not later reclassify) such transaction or item (or portion thereof) and will only be required to include the amount and type of such transaction (or portion thereof) in any one category.  It is understood and agreed that any Indebtedness, Lien, contractual restriction, Restricted Payment, Restricted Debt Payment,

 

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Investment, Disposition and/or Affiliate transaction need not be permitted solely by reference to one category of permitted Indebtedness, Lien, Restricted Payment, Restricted Debt Payment, Investment, Disposition and/or Affiliate transaction under Sections 6.01, 6.02, 6.03, 6.04, 6.05, 6.06, 6.07 or 6.08, respectively, but may instead be permitted in part under any combination thereof.

 

Section 1.04          Accounting Terms; GAAP.

 

(a)           All financial statements to be delivered pursuant to this Agreement shall be prepared in accordance with GAAP as in effect from time to time and, except as otherwise expressly provided herein, all terms of an accounting or financial nature that are used in calculating the First Lien Leverage Ratio, Total Leverage Ratio, the Secured Leverage Ratio or Consolidated Adjusted EBITDA shall be construed and interpreted in accordance with GAAP, as in effect from time to time; provided that if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date of delivery of the financial statements described in Section 3.04(a) in GAAP or in the application thereof (including the conversion to IFRS as described below) on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change becomes effective until such notice shall have been withdrawn or such provision amended in accordance herewith; provided, further, that if such an amendment is requested by the Borrower or the Required Lenders, then the Borrower and the Administrative Agent shall negotiate in good faith to enter into an amendment of the relevant affected provisions (without the payment of any amendment or similar fee to the Lenders) to preserve the original intent thereof in light of such change in GAAP or the application thereof; provided, further, that all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made without giving effect to (i) any election under Accounting Standards Codification 825-10-25 (previously referred to as Statement of Financial Accounting Standards 159) (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the Borrower or any subsidiary at “fair value,” as defined therein and (ii) any treatment of Indebtedness in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof.  If the Borrower notifies the Administrative Agent that Holdings is required to report under IFRS or has elected to do so through an early adoption policy, “GAAP” shall mean international financial reporting standards pursuant to IFRS (provided that after such conversion, Holdings cannot elect to report under GAAP).

 

(b)           Notwithstanding anything to the contrary contained in paragraph (a) above or in the definition of “Capital Lease,” in the event of an accounting change requiring all leases to be capitalized, only those leases (assuming for purposes hereof that such leases were in existence on the date hereof) that would constitute Capital Leases in conformity with GAAP on the Closing Date shall be considered Capital Leases and all calculations and deliverables under this Agreement or any other Loan Document shall be made or delivered, as applicable, in accordance therewith.

 

Section 1.05          Effectuation of Transactions.  Each of the representations and warranties contained in this Agreement (and all corresponding definitions) are made after giving effect to the Transactions, unless the context otherwise requires.

 

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Section 1.06          Timing of Payment of Performance.  When payment of any obligation or the performance of any covenant, duty or obligation is stated to be due or required on a day which is not a Business Day, the date of such payment (other than as described in the definition of Interest Period) or performance shall extend to the immediately succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension.

 

Section 1.07          Times of Day.  Unless otherwise specified herein, all references herein to times of day shall be references to New York City time (daylight or standard, as applicable).

 

Section 1.08          Currency Equivalents Generally.

 

(a)           For purposes of any determination under Section 2.19, Article 5, Article 6 (other than Section 6.12(a) and the calculation of compliance with any financial ratio for purposes of taking any action hereunder) or Article 6 with respect to the amount of any Indebtedness, Lien, Restricted Payment, Restricted Debt Payment, Investment, Disposition, Sale and Lease-Back Transaction, affiliate transaction or other transaction, event or circumstance, or any determination under any other provision of this Agreement, (any of the foregoing, a “specified transaction”), in a currency other than Dollars, (i) the Dollar equivalent amount of a specified transaction in a currency other than Dollars shall be calculated based on the rate of exchange quoted by the Bloomberg Foreign Exchange Rates & World Currencies Page (or any successor page thereto, or in the event such rate does not appear on any Bloomberg Page, by reference to such other publicly available service for displaying exchange rates as may be agreed upon by the Administrative Agent and the Borrower) for such foreign currency, as in effect at 11:00 a.m. (London time) on the date of such specified transaction (which, in the case of any Restricted Payment, shall be deemed to be the date of the declaration thereof and, in the case of the incurrence of Indebtedness, shall be deemed to be on the date first committed); provided, that if any Indebtedness is incurred (and, if applicable, associated Lien granted) to refinance or replace other Indebtedness denominated in a currency other than Dollars, and the relevant refinancing or replacement would cause the applicable Dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing or replacement, such Dollar-denominated restriction shall be deemed not to have been exceeded so long as the principal amount of such refinancing or replacement Indebtedness (and, if applicable, associated Lien granted) does not exceed an amount sufficient to repay the principal amount of such Indebtedness being refinanced or replaced, except by an amount equal to (x) unpaid accrued interest and premiums (including tender premiums) thereon plus other reasonable and customary fees and expenses (including upfront fees and original issue discount) incurred in connection with such refinancing or replacement, (y) any existing commitments unutilized thereunder and (z) additional amounts permitted to be incurred under Section 6.01 (it being understood that amounts utilized under this clause (z) shall be deemed a utilization of the applicable basket or exception to Section 6.01) and (ii) for the avoidance of doubt, no Default or Event of Default shall be deemed to have occurred solely as a result of a change in the rate of currency exchange occurring after the time of any specified transaction so long as such specified transaction was permitted at the time incurred, made, acquired, committed, entered or declared as set forth in clause (i).  For purposes of Section 6.12(a) and the calculation of compliance with any financial ratio for purposes of taking any action hereunder, on any relevant date of determination, amounts denominated in currencies other than Dollars shall be translated into Dollars at the applicable currency exchange rate used in preparing the financial statements delivered pursuant to Section 5.01(a) or (b) (or, prior to the first such delivery, the financial statements referred to in Section 3.04), as applicable, for the relevant Test Period and will, with respect to any Indebtedness, reflect the currency translation effects, determined in accordance with GAAP, of any Hedge Agreement permitted hereunder in respect of currency exchange risks with respect to the applicable currency in effect on the date of determination for the Dollar equivalent amount of such Indebtedness.  Notwithstanding the foregoing or anything to the contrary herein, to the extent that the Borrower would not be in compliance with Section 6.12(a) if any Indebtedness denominated in a currency other than in Dollars were to be translated into Dollars on the

 

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basis of the applicable currency exchange rate used in preparing the financial statements delivered pursuant to Section 5.01(a) or (b), as applicable, for the relevant Test Period, but would be in compliance with Section 6.12(a) if such Indebtedness that is denominated in a currency other than in Dollars were instead translated into Dollars on the basis of the average relevant currency exchange rates over such Test Period (taking into account the currency translation effects, determined in accordance with GAAP, of any Hedge Agreement permitted hereunder in respect of currency exchange risks with respect to the applicable currency in effect on the date of determination for the Dollar equivalent amount of such Indebtedness), then, solely for purposes of compliance with Section 6.12(a), the Total Leverage Ratio as of the last day of such Test Period shall be calculated on the basis of such average relevant currency exchange rates.

 

(b)           Each provision of this Agreement shall be subject to such reasonable changes of construction as the Administrative Agent may from time to time specify with the Borrower’s consent to appropriately reflect a change in currency of any country and any relevant market convention or practice relating to such change in currency.

 

Section 1.09          Cashless Rollovers.  Notwithstanding anything to the contrary contained in this Agreement or in any other Loan Document, to the extent that any Lender extends the maturity date of, or replaces, renews or refinances, any of its then-existing Loans with Incremental Loans, Replacement Term Loans, Extended Term Loans or loans incurred under a new credit facility, in each case, to the extent that such extension, replacement, renewal or refinancing is effected by means of a “cashless roll” by such Lender, such extension, replacement, renewal or refinancing shall be deemed to comply with any requirement hereunder or any other Loan Document that such payment be made “in Dollars”, “in immediately available funds”, “in Cash” or any other similar requirement.

 

Section 1.10          Certain Calculations and Tests.

 

(a)           Notwithstanding anything to the contrary herein, all financial ratios and tests (including the First Lien Leverage Ratio, the Total Leverage Ratio, the Secured Leverage Ratio and Consolidated Adjusted EBITDA) contained in this Agreement that are calculated with respect to any Test Period during which any Subject Transaction occurs shall be calculated with respect to such Test Period and such Subject Transaction on a Pro Forma Basis.  Further, if since the beginning of any such Test Period and on or prior to the date of any required calculation of any financial ratio or test (x) any Subject Transaction has occurred or (y) any Person that subsequently became a Restricted Subsidiary or was merged, amalgamated or consolidated with or into the Borrower or any of its Restricted Subsidiaries or any joint venture since the beginning of such Test Period has consummated any Subject Transaction, then, in each case, any applicable financial ratio or test shall be calculated on a Pro Forma Basis for such Test Period as if such Subject Transaction had occurred at the beginning of the applicable Test Period (it being understood, for the avoidance of doubt, that solely for purposes of calculating quarterly compliance with Section 6.12(a), the date of the required calculation shall be the last day of the Test Period, and no Subject Transaction occurring thereafter shall be taken into account).

 

(b)           For purposes of determining the permissibility of any action, change, transaction or event that requires a calculation of any financial ratio or test (including, without limitation, Section 6.12(a), any First Lien Leverage Ratio test, any Secured Leverage Ratio test, any Total Leverage Ratio test and/or the amount of Consolidated Adjusted EBITDA), such financial ratio or test shall be calculated at the time such action is taken (subject to clause (a) above), such change is made, such transaction is consummated or such event occurs, as the case may be, and no Default or Event of Default shall be deemed to have occurred solely as a result of a change in such financial ratio or test occurring after the time such action is taken, such change is made, such transaction is consummated or such event occurs, as the case may be.

 

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(c)           Notwithstanding anything to the contrary herein, in connection with any action required to be taken in connection with a Limited Conditionality Acquisition, for purposes of:

 

(i)        calculating the First Lien Leverage Ratio, the Secured Leverage Ratio, the Total Leverage Ratio and other financial calculations (including, but not limited to, for purposes of Section 2.19);

 

(ii)       testing  availability  under  covenant  baskets  set  forth  in  this Agreement (including covenant baskets measured as a percentage of Consolidated Adjusted EBITDA); or

 

(iii)      determining whether any default or event of default (or any type of default or event of default) has occurred or is continuing,

 

in each case, at the option of the Borrower (the Borrower’s election to exercise such option in connection with any Limited Conditionality Acquisition, an “LCA Election”), the date of determination shall be deemed to be the date of the Subject Acquisition Agreement (the “LCA Test Date”), and if, after giving Pro Forma Effect to the Limited Conditionality Acquisition and the other transactions required to be entered into in connection therewith (including any incurrence or repayment of Indebtedness and the use of proceeds thereof) as of the LCA Test Date, the Borrower would have been permitted to take such action on the relevant LCA Test Date in compliance with such ratio, test or basket, such ratio, test or basket shall be deemed to have been complied with. For the avoidance of doubt, if the Borrower has made an LCA Election and any of the ratios, tests or baskets for which compliance was determined or tested as of the LCA Test Date are exceeded as a result of fluctuations in any such ratio, test or basket, including due to fluctuations in Consolidated Adjusted EBITDA of the Borrower or the Person subject to such Limited Conditionality Acquisition, at or prior to the consummation of the relevant transaction or action, such baskets, tests or ratios will not be deemed to have been exceeded as a result of such fluctuations. If the Borrower has made an LCA Election for any Limited Conditionality Acquisition, then in connection with any calculation of any ratio, test or basket availability with respect to any transaction following the relevant LCA Test Date and prior to the earlier of the date on which such Limited Conditionality Acquisition is consummated or the date that the Subject Acquisition Agreement is terminated or expires without consummation of such Limited Conditionality Acquisition, for purposes of determining whether any such required transaction is permitted under this Agreement, any such ratio, test or basket shall be calculated on a Pro Forma Basis assuming such Limited Conditionality Acquisition and such other required transaction (including any incurrence of Indebtedness and the use of proceeds thereof) have been consummated.

 

ARTICLE 2          THE CREDITS

 

Section 2.01          Commitments.

 

(a)           Subject to the terms and conditions set forth herein, each Initial Term Lender severally, and not jointly, agrees to make Initial Term Loans to the Borrower on the Closing Date in Dollars in a principal amount equal to its Initial Term Loan Commitment.  Amounts paid or prepaid in respect of the Initial Term Loans may not be reborrowed.

 

(b)           Subject to the terms and conditions set forth herein, each Delayed Draw Term Lender severally, and not jointly, agrees to make “Delayed Draw Term Loans” to the Borrower in Dollars from time to time (but in any event limited to three drawings, each in a minimum aggregate principal amount of at least $10,000,000), on any Business Day until the Delayed Draw Term Commitment Termination Date, in a principal amount not to exceed its Delayed Draw Term Commitment. Amounts

 

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paid or prepaid in respect of Delayed Draw Term Loans may not be reborrowed. Once funded, Delayed Draw Term Loans will initially be of the same Type and will have the same Interest Period as the Initial Term Loans (allocated pro rata if multiple Interest Periods shall be in effect at such time) outstanding at the time of the borrowing of such Delayed Draw Term Loan.

 

(c)           Subject to the terms and conditions of this Agreement and any applicable Refinancing Amendment or Incremental Facility Amendment, each Lender with an Additional Term Loan Commitment of a given Class, severally and not jointly, agrees to make Additional Term Loans of such Class to the Borrower, which Additional Term Loans shall not exceed for any such Lender at the time of any incurrence thereof the Additional Term Loan Commitment of such Class of such Lender as set forth in the applicable Refinancing Amendment or Incremental Facility Amendment.

 

Section 2.02          Loans and Borrowings.

 

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

 

(b)           Subject to Section 2.01 and Section 2.11, each Borrowing shall be comprised entirely of ABR Loans or Eurodollar Rate Loans as the Borrower may request in accordance herewith.  Each Lender at its option may make any Eurodollar Rate Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that (i) any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement, (ii) such Eurodollar Rate Loan shall be deemed to have been made and held by such Lender, and the obligation of the Borrower to repay such Loan shall nevertheless be to such Lender for the account of such domestic or foreign branch or Affiliate of such Lender and (iii) in exercising such option, such Lender shall use reasonable efforts to minimize increased costs to the Borrower resulting therefrom (which obligation of such Lender shall not require it to take, or refrain from taking, actions that it determines would result in increased costs for which it will not be compensated hereunder or that it otherwise determines would be disadvantageous to it and in the event of such request for costs for which compensation is provided under this Agreement, the provisions of Section 2.12 shall apply).

 

(c)           At the commencement of each Interest Period for any Eurodollar Rate Borrowing, such Borrowing shall comprise an aggregate principal amount that is an integral multiple of $100,000 and not less than $500,000.  Each ABR Borrowing when made shall be in a minimum principal amount of $100,000.  Borrowings of more than one Type and Class may be outstanding at the same time; provided that there shall not at any time be more than a total of four (4) different Interest Periods in effect for Eurodollar Rate Borrowings at any time outstanding (or such greater number of different Interest Periods as the Administrative Agent may agree from time to time).

 

(d)           Notwithstanding any other provision of this Agreement, the Borrower shall not, nor shall it be entitled to, request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date applicable to the relevant Loans.

 

Section 2.03          Requests for Borrowings.  Each Borrowing, each conversion of Loans from one Type to the other, and each continuation of Eurodollar Rate Loans shall be made upon irrevocable notice by the Borrower to the Administrative Agent.  Each such notice must be in the form of a written Borrowing Request, appropriately completed and signed by a Responsible Officer of the Borrower or by telephone (and promptly confirmed by delivery of a written Borrowing Request, appropriately completed and signed by a Responsible Officer of the Borrower) and must be received by the Administrative Agent (by hand delivery, fax or other electronic transmission (including “.pdf” or “.tif”)) not later than 1:00 p.m.

 

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(i) three Business Days prior to the requested day of any Borrowing, conversion or continuation of Eurodollar Rate Loans (or one Business Day in the case of any Eurodollar Rate Loans to be made on the Closing Date) and (ii) 11:00 a.m. one Business Day prior to the requested date of any Borrowing of ABR Loans (or, in each case, such later time as shall be acceptable to the Administrative Agent); provided, however, that if the Borrower wishes to request Eurodollar Rate Loans having an Interest Period of other than one, two, three or six months in duration as provided in the definition of “Interest Period,” (A) the applicable notice from the Borrower must be received by the Administrative Agent not later than 1:00 p.m. four Business Days prior to the requested date of the relevant Borrowing, conversion or continuation, whereupon the Administrative Agent shall give prompt notice to the appropriate Lenders of such request and determine whether the requested Interest Period is approved by each Lender and (B) not later than 12:00 p.m. three Business Days before the requested date of the relevant Borrowing, conversion or continuation, the Administrative Agent shall notify the Borrower whether or not the requested Interest Period is approved by each of the appropriate Lenders.

 

If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing.  If no Interest Period is specified with respect to any requested Eurodollar Rate Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.  The Administrative Agent shall advise each Lender of the details and amount of any Loan to be made as part of the relevant requested Borrowing (x) in the case of any ABR Borrowing, on the same Business Day of receipt of a Borrowing Request in accordance with this Section 2.03 or (y) in the case of any Eurodollar Rate Borrowing, no later than one Business Day following receipt of a Borrowing Request in accordance with this Section 2.03.

 

Section 2.04          Funding of Borrowings.

 

(a)           Each Lender shall make each Loan to be made by it hereunder not later than  1:00 p.m. on the Business Day specified in the applicable Borrowing Request by wire transfer of immediately available funds to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders in an amount equal to such Lender’s respective Applicable Percentage.  The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to the account designated in the relevant Borrowing Request or as otherwise directed by the Borrower.

 

(b)           Unless the Administrative Agent has received notice from any Lender that such Lender will not make available to the Administrative Agent such Lender’s share of any Borrowing prior to the proposed date of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with Section 2.04(a) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount.  In such event, if any Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand (without duplication) such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate applicable to Loans comprising such Borrowing at such time.  If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing and the obligation of the Borrower to repay the Administrative Agent such corresponding amount pursuant to this Section 2.04(b) shall cease.  If the Borrower pays such amount to the Administrative Agent, the amount so paid shall constitute a repayment of such Borrowing by such amount.  Nothing herein shall be deemed to relieve any Lender from its obligation to fulfill its Commitment or to prejudice any rights which the

 

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Administrative Agent or the Borrower or any other Loan Party may have against any Lender as a result of any default by such Lender hereunder.

 

Section 2.05          Type; Interest Elections.

 

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

 

(b)           To make an election pursuant to this Section 2.05, the Borrower shall (i) deliver an Interest Election Request, appropriately completed and signed by a Responsible Officer of the Borrower or (ii) provide telephonic notice (promptly confirmed in writing by delivery of a written Interest Election Request, appropriately completed and signed by a Responsible Officer of the Borrower) of the applicable election to the Administrative Agent.  If any such Interest Election Request requests a Eurodollar Rate Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.

 

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

 

(d)           If the Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Rate Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, such Borrowing shall be converted at the end of such Interest Period to a Eurodollar Rate Borrowing with an Interest Period of one month.  Notwithstanding anything to the contrary herein, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a Eurodollar Rate Borrowing and (ii) unless repaid, each Eurodollar Rate Borrowing shall be converted to an ABR Borrowing at the end of the then-current Interest Period applicable thereto.

 

Section 2.06          Automatic Termination and Reduction of Commitments.  Unless previously terminated, (a) the Initial Term Commitments on the Closing Date shall automatically terminate upon the making of the Initial Term Loans on the Closing Date (b) the aggregate Delayed Draw Term Commitments on the Closing Date shall (i) automatically be reduced upon the making of any Delayed Draw Term Loans by an amount equal to the Delayed Draw Term Loans so made and (ii) automatically and permanently be reduced to zero on the Delayed Draw Term Commitment Termination Date and (c) the Additional Term Loan Commitments of any Class shall automatically terminate upon the making of the Additional Term Loans of such Class and, if any such Additional Term Loan Commitment is not drawn on the date that such Additional Term Loan Commitment is required to be drawn pursuant to the applicable Refinancing Amendment or Incremental Facility Amendment, the undrawn amount thereof shall automatically terminate.

 

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Section 2.07          Repayment of Loans; Evidence of Debt.

 

(a)           (i)            The Borrower hereby unconditionally promises to repay the outstanding principal amount of the Initial Term Loans to the Administrative Agent for the account of each Term Lender (A) commencing at the end of the first full Fiscal Quarter ended after the Closing Date, and payable at the end of such Fiscal Quarter and each Fiscal Quarter thereafter (prior to the Term Loan Maturity Date), in a quarterly amount equal to 0.25% of the original principal amount of the Initial Term Loans (each such date being referred to as a “Loan Installment Date”), as such payments may be (x) reduced from time to time as a result of the application of prepayments in accordance with Section 2.08 or repurchases in accordance with Section 9.05(g), (y) increased as a result of any increase in the amount of such Initial Term Loans pursuant to Section 2.19(a)) or (z) adjusted pursuant to clause (iii) below and (B) on the Term Loan Maturity Date, in an amount equal to the remainder of the principal amount of the Initial Term Loans outstanding on such date, together in each case with accrued and unpaid interest on the principal amount to be paid to but excluding the date of such payment.

 

(ii)       The Borrower shall repay the Additional Term Loans of any Class in such scheduled amortization installments and on such date or dates as shall be specified therefor in the applicable Refinancing Amendment, Incremental Facility Agreement or Extension Amendment (as such payments may be reduced from time to time as a result of the application of prepayments in accordance with Section 2.08 or repurchases in accordance with Section 9.05(g)).

 

(iii)      From the making of any Delayed Draw Term Loan, subject to adjustments identified by clauses (a)(i)(A)(x) and (y) above, the Initial Term Loans (as increased by such Delayed Draw Term Loans) shall be entitled to quarterly scheduled amortization payments that represent the same percentage as the amortization, expressed as a percentage, that is applicable to the Initial Term Loans immediately prior to such Borrowing of Delayed Draw Term Loans (it being understood that, for the avoidance of doubt, no such making of any Delayed Draw Term Loans shall result in a decrease in the amortization applicable to any Term Loans outstanding immediately prior to such Borrowing of Delayed Draw Term Loan).

 

(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 (if any) applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.

 

(d)           The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein (absent manifest error); provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any manifest 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; provided, further, that in the event of any inconsistency between the accounts maintained by the Administrative Agent pursuant to paragraph (d) of this Section and any Lender’s records, the accounts of the Administrative Agent shall govern.

 

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(e)           Any Lender may request that any Loan made by it be evidenced by a Promissory Note (or Delayed Dram Term Note, as the case may be).  In such event, the Borrower shall prepare, execute and deliver a Promissory Note payable to such Lender and its registered assigns; it being understood and agreed that such Lender (and/or its applicable assign) shall be required to return such Promissory Note or Delayed Draw Term Note to the Borrower in accordance with Section 9.05(b)(iii) and upon the occurrence of the Termination Date (or as promptly thereafter as practicable).  If any Lender loses the original copy of its Promissory Note or Delayed Draw Term Note, it shall execute an affidavit of loss containing an indemnification provision reasonably satisfactory to the Borrower.

 

Section 2.08          Prepayment of Loans.

 

(a)           Optional Prepayments.

 

(i)        Upon prior notice in accordance with paragraph (a)(ii) of this Section, the Borrower shall have the right at any time and from time to time to (x) reduce the aggregate principal amount of the unused Delayed Draw Term Commitments or (y) prepay any Borrowing of Loans of any Class in whole or in part without premium or penalty (but subject (A) in the case of Borrowings of Initial Term Loans only, to Section 2.09(d) and (B) if applicable, to Section 2.13).  Each such prepayment shall be paid to the Lenders in accordance with their respective Applicable Percentages of the relevant Class.

 

(ii)       The Borrower shall notify the Administrative Agent by telephone (promptly confirmed in writing) of any prepayment under this Section 2.08(a) (i) in the case of any prepayment of a Eurodollar Rate Borrowing, not later than 1:00 p.m. three Business Days before the date of prepayment or (ii) in the case of any prepayment of an ABR Borrowing, not later than 11:00 a.m. one Business Day before the date of prepayment (or, in the case of clauses (i) and (ii), such later time as to which the Administrative Agent may agree).  Each such notice shall be irrevocable (except as set forth in the proviso to this sentence) and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that any notice of prepayment delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other transactions, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.  Promptly following receipt of any such notice relating to any Borrowing, the Administrative Agent shall advise the applicable Lenders of the contents thereof.  Each partial prepayment of any Borrowing shall be in an amount at least equal to the amount that would be permitted in the case of a Borrowing of the same Type and Class as provided in Section 2.02(c) or such lesser amount that is then outstanding with respect to such Borrowing being repaid (and in increments of $100,000 in excess thereof or such lesser incremental amount that is then outstanding with respect to such Borrowing being repaid).  Each prepayment of Term Loans shall be applied to the Class of Term Loans specified in the applicable prepayment notice, and each prepayment of Term Loans of such Class made pursuant to this Section 2.08(a) shall be applied against the remaining scheduled installments of principal due in respect of the Term Loans of such Class in the manner specified by the Borrower or, in the absence of any such specification on or prior to the date of such optional prepayment, in direct order of maturity.

 

(b)           Mandatory Prepayments.

 

(i)        No later than the fifth Business Day after the date on which the financial statements with respect to each Fiscal Year of Holdings are required to be delivered pursuant to Section 5.01(b), commencing with the Fiscal Year ending on or about December 31, 2018, the

 

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Borrower shall prepay the outstanding principal amount of Term Loans in accordance with clause (vii) of this Section 2.08(b) below in an aggregate principal amount equal to:

 

(A)          the Required Excess Cash Flow Percentage of Excess Cash Flow of the Borrower and its Restricted Subsidiaries for the Excess Cash Flow Period then ended, minus

 

(B)          at the option of the Borrower, without duplication of any amount deducted in calculating Excess Cash Flow for such Excess Cash Flow Period and excluding any such payment that reduced the amount required to be prepaid pursuant to this Section 2.08(b)(i) in the prior Excess Cash Flow Period, the aggregate principal amount of,

 

(1)           any Initial Term Loans prepaid pursuant to Section 2.08(a)  and Additional Term Loans prepaid that rank pari passu in right of payment and security with the Initial Term Loans, solely (to the extent that such prepayments were not financed with the proceeds of other Indebtedness of the Borrower or its Restricted Subsidiaries) prior to such date, and

 

(2)           except to the extent deducted in the calculation of Excess Cash Flow, the amount of any reduction in the outstanding amount of any Term Loans resulting from any assignment made in accordance with Section 9.05(g) of this Agreement (including in connection with any Dutch Auction) prior to such date, in an amount equal to the lesser of the actual amount of cash paid in connection with the relevant assignment and the applicable reduction;

 

(ii)       No later than the fifth Business Day following the receipt of Net Proceeds in respect of any Prepayment Asset Sale or Net Insurance/Condemnation Proceeds, in each case, in excess of (x) $3,500,000 in a single transaction or series of related transactions or (y) the Threshold Amount in any Fiscal Year, the Borrower shall apply an amount equal to 100% of the Net Proceeds or Net Insurance/Condemnation Proceeds received with respect thereto in excess of such thresholds (the “Subject Proceeds”) to prepay the outstanding principal amount of Initial Term Loans and Additional Term Loans then subject to ratable prepayment requirements (the “Subject Loans”) in accordance with Section 2.09(e) below; provided that (A) if prior to the date any such prepayment is required to be made, no Event of Default then exists, the Borrower shall not be required to make a mandatory prepayment under this clause (ii) in respect of the Subject Proceeds to the extent (x) the Subject Proceeds are so reinvested within 12 months following receipt thereof, or (y) the Borrower or any of its subsidiaries has committed to so reinvest the Subject Proceeds during such 12-month period and the Subject Proceeds are so reinvested within six months after the expiration of such 12-month period; it being understood that if the Subject Proceeds have not been so reinvested prior to the expiration of the applicable period, the Borrower shall promptly prepay the Subject Loans with the amount of the Subject Proceeds not so reinvested as set forth above (without regard to the immediately preceding proviso); and (B) if, at the time that any such prepayment would be required hereunder, the Borrower or any of its Restricted Subsidiaries is required to repay or repurchase any other Indebtedness (or offer to repay or repurchase any Indebtedness) that is secured on a pari passu basis with any Secured Obligation pursuant to the terms of the documentation governing such Indebtedness with the Subject Proceeds (such Indebtedness required to be so repaid or repurchased (or offered to be repaid or repurchased), the “Other Applicable Indebtedness”), then the relevant Person may apply the Subject Proceeds on a pro rata basis to the prepayment of the Subject Loans and to the repurchase or repayment of the

 

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Other Applicable Indebtedness (determined on the basis of the aggregate outstanding principal amount of the Subject Loans and the Other Applicable Indebtedness (or accreted amount if such Other Applicable Indebtedness is issued with original issue discount) at such time); it being understood that (1) the portion of the Subject Proceeds allocated to the Other Applicable Indebtedness shall not exceed the amount of the Subject Proceeds required to be allocated to the Other Applicable Indebtedness pursuant to the terms thereof (and the remaining amount, if any, of the Subject Proceeds shall be allocated to the Subject Loans in accordance with the terms hereof), and the amount of the prepayment of the Subject Loans that would have otherwise been required pursuant to this Section 2.08(b)(ii) shall be reduced accordingly and (2) to the extent the holders of the Other Applicable Indebtedness decline to have such Indebtedness prepaid or repurchased, the declined amount shall promptly (and in any event within ten Business Days after the date of such rejection) be applied to prepay the Subject Loans in accordance with the terms hereof.

 

(iii)      In the event that the Borrower or any of its Restricted Subsidiaries receives Net Proceeds from the issuance or incurrence of Indebtedness by the Borrower or any of its Restricted Subsidiaries (other than Indebtedness that is permitted under Section 6.01, except to the extent the relevant Indebtedness constitutes (A) Refinancing Indebtedness incurred to refinance all or a portion of the Term Loans pursuant to Section 6.01(m) or Replacement Term Loans incurred to refinance Term Loans or Additional Term Loans in accordance with the requirements of Section 9.02(c), (B) Incremental Loans incurred to refinance all or a portion of the Term Loans pursuant to Section 2.19 and/or (C) Incremental Equivalent Debt incurred to finance all or a portion of the Loans in accordance with the requirements of Section 6.01(s)) the Borrower shall, substantially simultaneously with (and in any event not later than the next succeeding Business Day) the receipt of such Net Proceeds by the Borrower or its applicable Restricted Subsidiary, apply an amount equal to 100% of such Net Proceeds to prepay the outstanding principal amount of the relevant Term Loans in accordance with Section 2.09(e) below.

 

(iv)      Notwithstanding any provision under this Section 2.08(b) to the contrary:

 

(A)          the Borrower shall not be required to prepay any amount that would otherwise be required to be paid pursuant to Sections 2.08(b)(i) or (ii) above to the extent that the relevant Excess Cash Flow is generated by any Foreign Subsidiary, the relevant Prepayment Asset Sale is consummated by any Foreign Subsidiary or the relevant Net Insurance/Condemnation Proceeds are received by any Foreign Subsidiary, as the case may be, for so long as the repatriation to the Borrower of any such amount would be prohibited under any Requirement of Law or conflict with the fiduciary duties of such Foreign Subsidiary’s directors, or result in, or could reasonably be expected to result in, a material risk of personal or criminal liability for any officer, director, employee, manager, member of management or consultant of such Foreign Subsidiary (the Borrower hereby agreeing to cause the applicable Foreign Subsidiary to promptly take all commercially reasonable actions required by applicable Requirements of Law to permit such repatriation); it being understood that if the repatriation of the relevant affected Subject Proceeds or Excess Cash Flow, as the case may be, is permitted under the applicable Requirement of Law and, to the extent applicable, would no longer conflict with the fiduciary duties of such director, or result in, or be reasonably expected to result in, a material risk of personal or criminal liability for such Persons described above, the Borrower shall be required to mandatorily prepay the Term Loans (net of additional Taxes payable or reserved against as a result thereof) pursuant to this Section 2.08(b) to the extent required herein (without regard to this clause (iv)); and

 

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(B)          if the Borrower determines in good faith that the repatriation to the Borrower as a distribution or dividend of any amounts required to mandatorily prepay the Term Loans pursuant to Sections 2.08(b)(i) or (ii) above that are attributable to Foreign Subsidiaries would result in a material and adverse Tax liability (including any withholding Tax) (such amount, a “Restricted Amount”), as reasonably determined by the Borrower, the amount that the Borrower shall be required to mandatorily prepay pursuant to Sections 2.08(b)(i) or (ii) above, as applicable, shall be reduced by the Restricted Amount until such time as it may repatriate to the Borrower the Restricted Amount without incurring such material and adverse Tax liability; provided that to the extent that the repatriation of any Subject Proceeds or Excess Cash Flow, as the case may be, from the relevant Foreign Subsidiary would no longer have a material and adverse Tax consequence, an amount equal to the Subject Proceeds or Excess Cash Flow, as applicable and to the extent available, not previously applied pursuant to this clause (B), shall be promptly applied to the repayment of the Term Loans pursuant to Section 2.08(b) as otherwise required above (without regard to this clause (iv)).

 

(v)       Any Term Lender may elect, by notice to the Administrative Agent at or prior to the time and in the manner specified by the Administrative Agent, prior to any prepayment of Term Loans required to be made by the Term Borrower pursuant to this Section 2.08(b), to decline all (but not a portion) of its Applicable Percentage of such prepayment (such declined amounts, the “Declined Proceeds”), in which case such Declined Proceeds may be retained by the Borrower; provided that for the avoidance of doubt, no Lender may reject any prepayment made under Section 2.08(b)(iii) above to the extent that such prepayment is made with the Net Proceeds of (w) Refinancing Indebtedness incurred to refinance all or a portion of the Term Loans pursuant to Section 6.01(m), (x) Incremental Loans incurred to refinance all or a portion of the Term Loans pursuant to Section 2.19, (y) Replacement Term Loans incurred to refinance all or any portion of the Term Loans in accordance with the requirements of Section 9.02(c) and/or (z) Incremental Equivalent Debt incurred to finance all or a portion of the Loans in accordance with the requirements of Section 6.01(s).  If any Term Lender fails to deliver a notice to the Administrative Agent of its election to decline receipt of its Applicable Percentage of any mandatory prepayment within the time frame specified by the Administrative Agent, such failure will be deemed to constitute an acceptance of such Term Lender’s Applicable Percentage of the total amount of such mandatory prepayment of Term Loans.

 

Section 2.09          Fees.

 

(a)           The Borrower shall pay to the Administrative Agent for the account of each Delayed Draw Term Lender that is not a Defaulting Lender in accordance with its Pro Rata Share, a commitment fee (the “Delayed Draw Term Commitment Fee”) in Dollars equal to the Delayed Draw Term Commitment Fee Percentage times the actual daily amount by which the aggregate Delayed Draw Term Commitments exceed the outstanding principal amount of the Delayed Draw Term Loans for the fiscal quarter then ending. The Delayed Draw Term Commitment Fee shall accrue at all times from the Closing Date until the Delayed Draw Term Commitment Termination Date, including at any time during which one or more of the conditions in Article V is not met, and shall be due and payable quarterly in arrears on the last Business Day of each March, June, September and December occurring prior to the Delayed Draw Term Commitment Termination Date, commencing with the first such date to occur after the Closing Date, and on the Delayed Draw Term Commitment Termination Date. The Commitment Fee shall be calculated quarterly in arrears.

 

(b)           The Borrower agrees to pay to the Administrative Agent, for its own account, the annual administration fee described in the Fee Letter.

 

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(c)                                  All fees payable hereunder shall be paid on the dates due, in Dollars and in immediately available funds, to the Administrative Agent.  Fees paid shall not be refundable under any circumstances except as otherwise provided in the Fee Letter.

 

(d)                                 If, on or prior to the date that is six months from the Closing Date, a Repricing Transaction occurs, the Borrower will pay to the Administrative Agent for the ratable account of each Lender with outstanding Term Loans which are repaid or prepaid pursuant to such Repricing Transaction, a premium in an amount equal to 1.0% of the principal amount of the Term Loans prepaid or, in the case of any amendment, the principal amount of the Term Loans outstanding prior to such amendment (including each Lender that withholds its consent to such Repricing Transaction and is replaced or repaid as a Non-Consenting Lender under Section 2.16(b)), a fee in an amount equal to 1.0% of (x) in the case of a Repricing Transaction of the type described in clause (a) of the definition thereof, the aggregate principal amount of all Term Loans prepaid (or converted) in connection with such Repricing Transaction and (y) in the case of a Repricing Transaction described in clause (b) of the definition thereof, the aggregate principal amount of all Term Loans outstanding on such date pursuant to such Repricing Transaction.

 

(e)                                  Unless otherwise indicated herein, all computations of fees shall be made on the basis of a 360-day year and shall be payable for the actual days elapsed (including the first day but excluding the last day).  Each determination by the Administrative Agent of a fee hereunder shall be conclusive and binding for all purposes, absent manifest error.

 

(i)                         Except to the extent less than pro rata treatment with the Initial Term Loans is provided for in any Refinancing Amendment, any Incremental Facility Amendment or any Extension Amendment, each prepayment of Term Loans pursuant to Section 2.08(b) shall be applied ratably to each Class of Term Loans then outstanding (provided that any prepayment of Term Loans with the Net Proceeds of any Refinancing Indebtedness, Incremental Term Facility or Replacement Term Loans shall be applied to the applicable Class of Term Loans being refinanced or replaced).  With respect to each Class of Term Loans, in connection with any mandatory prepayments by the Borrower of the Initial Term Loans pursuant to Section 2.08(b), such prepayments shall be applied on a pro rata basis to the then outstanding Term Loans being prepaid irrespective of whether such outstanding Term Loans are Base Rate Loans or Eurodollar Rate Loans; provided, that, if no Lenders exercise the right to waive a given mandatory prepayment of the Term Loans pursuant to Section 2.08(b)(v), then, with respect to such mandatory prepayment, the amount of such mandatory prepayment shall be applied first to Term Loans that are Base Rate Loans to the full extent thereof before application to Term Loans that are Eurodollar Rate Loans in a manner that minimizes the amount of any payments required to be made by the Borrower pursuant to Section 2.13.

 

(ii)                      Prepayments made under Section 2.08(b) shall be (A) accompanied by accrued interest as required by Section 2.10, (B) subject to Section 2.13 and (C) in the case of prepayments of Initial Term Loans under Section 2.08(b)(iii)(A) above as part of a Repricing Transaction, subject to Section 2.09(d), but shall otherwise be without premium or penalty.

 

Section 2.10                             Interest.

 

(a)                                 The Term Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable Rate.

 

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(b)                                 The Term Loans comprising each Eurodollar Rate Borrowing shall bear interest at the Adjusted Eurodollar Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.

 

(c)                                  Notwithstanding the foregoing, if any principal of or interest on any Term Loan or any fee payable by the Borrower hereunder is not, in each case, paid or reimbursed when due, whether at stated maturity, upon acceleration or otherwise, the relevant overdue amount shall bear interest, to the fullest extent permitted by applicable Requirements of Law, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal or interest of any Term Loan, 2.00% plus the rate otherwise applicable to such Term Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any fees, 2.00% plus the rate applicable to Term Loans that are ABR Loans as provided in paragraph (a) of this Section.

 

(d)                                 Accrued interest on each Term Loan shall be payable in arrears on each Interest Payment Date for such Term Loan and on the Maturity Date applicable to such Loan; provided that (A) interest accrued pursuant to paragraph (d) of this Section shall be payable on demand, (B) in the event of any repayment or prepayment of any Term Loan, accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (C) in the event of any conversion of any Eurodollar Rate Loan prior to the end of the current Interest Period therefor, accrued interest on such Term Loan shall be payable on the effective date of such conversion.

 

(e)                                  All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Alternate Base Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day).  The applicable Alternate Base Rate or Adjusted Eurodollar Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.  Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid; provided that any Loan that is repaid on the same day on which it is made shall bear interest for one day.

 

Section 2.11                             Alternate Rate of Interest.  If prior to the commencement of any Interest Period for a Eurodollar Rate Borrowing:

 

(a)                                 the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted Eurodollar Rate for such Interest Period; or

 

(b)                                 the Administrative Agent is advised by the Required Lenders that the Adjusted Eurodollar Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period;

 

then the Administrative Agent shall promptly give notice thereof to the Borrower and the Lenders by telephone or facsimile as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, which the Administrative Agent agrees promptly to do, (i) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Rate Borrowing shall be ineffective and such Borrowing shall be converted to an ABR Borrowing on the last day of the Interest Period applicable thereto, and (ii) if any Borrowing Request requests a Eurodollar Rate Borrowing, such Borrowing shall be made as an ABR Borrowing.

 

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Section 2.12                             Increased Costs.

 

(a)                                 If any Change in Law:

 

(i)                         imposes, modifies or deems applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted Eurodollar Rate);

 

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

 

(iii)                   imposes on any Lender or the London interbank market any other condition affecting this Agreement or Eurodollar Rate Loans made by such Lender;

 

and the result of any of the foregoing is to increase the cost to the relevant Lender of making or maintaining any Loan (or of maintaining its obligation to make any such Loan) or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, interest or otherwise) in respect of any Eurodollar Rate Loan in an amount deemed by such Lender to be material, then, within 30 days after the Borrower’s receipt of the certificate contemplated by paragraph (c) of this Section, the Borrower will pay to such Lender for such additional costs incurred or reduction suffered; provided that the Borrower shall not be liable for such compensation if (w) the relevant Change in Law occurs on a date prior to the date such Lender becomes a party hereto, (x) such Lender invokes Section 2.17, (y) in the case of requests for reimbursement under clause (iii) above resulting from a market disruption, (A) the relevant circumstances are not generally affecting the banking market or (B) the applicable request has not been made by Lenders constituting Required Lenders or (z) such Lender is not generally charging such amounts to similarly situated borrowers under comparable syndicated credit facilities.

 

(b)                                 If any Lender determines that any Change in Law regarding liquidity or capital requirements has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement or the Loans made by such Lender to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy and liquidity), then within 30 days of receipt by the Borrower of the certificate contemplated by paragraph (c) of this Section, the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered; provided that the Borrower shall not be liable for such compensation if  the relevant Change in Law occurs on a date prior to the date such Lender becomes a party hereto.

 

(c)                                  Any Lender requesting compensation under this Section 2.12 shall be required to deliver a certificate to the Borrower that (i)  sets forth the amount or amounts necessary to compensate such Lender or its holding company, as applicable, as specified in paragraph (a) or (b) of this Section and (ii) sets forth in reasonable detail the manner in which such amount or amounts was determined and (iii) certifies that such Lender is generally charging such amounts to similarly situated borrowers, which shall be conclusive absent manifest error.

 

(d)                                 Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s right to demand such compensation; provided, however, that the Borrower shall not be required to compensate a Lender pursuant to this Section for any

 

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increased costs or reductions incurred more than 180 days prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s intention to claim compensation therefor; provided, further, that if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof.

 

Section 2.13                             Break Funding Payments.  In the event of (a) the conversion or prepayment of any principal of any Eurodollar Rate Loan other than on the last day of an Interest Period applicable thereto (whether voluntary, mandatory, automatic, by reason of acceleration or otherwise), (b) the failure to borrow, convert, continue or prepay any Eurodollar Rate Loan on the date or in the amount specified in any notice delivered pursuant hereto or (c) the assignment of any Eurodollar Rate Loan of any Lender other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.16, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense incurred by such Lender that is attributable to such event (other than loss of profit).  In the case of a Eurodollar Rate Loan, the loss, cost or expense of any Lender shall be the amount reasonably determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the Eurodollar Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for deposits in the applicable currency of a comparable amount and period from other banks in the Eurodollar market; it being understood that such loss, cost or expense shall in any case exclude any interest rate floor and all administrative, processing or similar fees.  Any Lender requesting compensation under this Section 2.13 shall be required to deliver a certificate to the Borrower that (i) sets forth any amount or amounts that such Lender is entitled to receive pursuant to this Section, the basis therefor and, in reasonable detail, the manner in which such amount or amounts were determined and (ii) certifies that such Lender is generally charging the relevant amounts to similarly situated borrowers under comparable syndicated credit facilities, which certificate shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within 30 days after receipt thereof.

 

Section 2.14                             Taxes.

 

(a)                                 Any and all payments by or on account of any obligation of any Loan Party under any Loan Document shall be made free and clear of and without deduction for any Taxes, except as required by applicable Requirements of Law.  If any applicable Requirement of Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then (i) if such Tax is an Indemnified Tax, the amount payable by the applicable Loan Party shall be increased as necessary so that after all required deductions or withholdings have been made (including deductions and withholdings of Indemnified Taxes applicable to additional sums payable under this Section 2.14) each Lender (or, in the case of payments made to the Administrative Agent for its own account, the Administrative Agent) receives an amount equal to the sum it would have received had no such deductions or withholdings been made, (ii) the applicable Withholding Agent shall make such deductions or withholdings and (iii) the applicable Withholding Agent shall timely pay the full amount deducted to the relevant Governmental Authority in accordance with applicable Requirements of Law.

 

(b)                                 In addition, the Loan Parties shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable Requirements of Law.

 

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(c)                                  The Loan Parties shall, jointly and severally, indemnify the Administrative Agent and each Lender within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 2.14) payable or paid by the Administrative Agent or such Lender, as applicable, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted  A certificate to the Borrower setting forth, in reasonable detail, the basis and calculation of the amount of the relevant payment or liability shall be conclusive absent manifest error.

 

(d)                                 Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes imposed on or with respect to any payment under any Loan Document that is attributable to such Lender (but only to the extent that no Loan Party has already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Loan Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 9.05(c) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes that are attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to any Lender under any Loan Document or otherwise payable by the Administrative Agent to any Lender from any other source against any amount due to the Administrative Agent under this clause (d).

 

(e)                                  As soon as practicable after any payment of Taxes by any Loan Party to a Governmental Authority as contemplated in this Section 2.14, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment that is reasonably satisfactory to the Administrative Agent.

 

(f)                                   Status of Lenders.

 

(i)                         Any Lender that is entitled to an exemption from or reduction of any withholding Tax with respect to any payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation as the Borrower or the Administrative Agent may reasonably request to permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable Requirements of Law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.14(f)(ii)(A), (B) and (D) below) shall not be required if in the Lender’s reasonable judgment such completion execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

 

(ii)                      Without limiting the generality of the foregoing,

 

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(A)                               each Lender that is not a Foreign Lender shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of IRS Form W-9 (or any successor form) certifying that such Lender is exempt from U.S. federal backup withholding tax;

 

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

 

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

 

(2)                                 executed originals of IRS Form W-8ECI or W-8EXP (or any successor form);

 

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

 

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

 

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

 

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

 

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.  Notwithstanding anything to the contrary in this Section 2.14(f), no Lender shall be required to provide any form or certification that such Lender is not legally entitled to deliver.

 

(g)                                  On or before the Closing Date, the Administrative Agent (or any successor or replacement Administrative Agent shall, on or before the date on which it becomes the Administrative Agent hereunder), deliver to the Borrower two duly executed copies of either (i) IRS Form W-9, or (ii) IRS Form W-8ECI (with respect to any payments to be received on its own behalf) and IRS Form W-8IMY (for all other payments), establishing that the Borrower can make payments to the Administrative Agent without deduction or withholding of any Taxes imposed by the United States, including Taxes imposed under FATCA

 

(h)                                 If the Administrative Agent or any Lender determines, in its sole discretion exercised in good faith, that it has received a refund of any Indemnified Taxes as to which it has been indemnified by any Loan Party or with respect to which such Loan Party has paid additional amounts pursuant to this Section 2.14, it shall pay over such refund to such Loan Party (but only to the extent of indemnity payments made, or additional amounts paid, by such Loan Party under this Section 2.14 with respect to the Indemnified Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or such Lender (including any Taxes imposed with respect to such refund), and without interest (other than any interest paid by the relevant Governmental Authority with respect to such

 

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refund); provided that such Loan Party, upon the request of the Administrative Agent or such Lender, agrees to repay the amount paid over to such Loan Party (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (h), in no event will the Administrative Agent or any Lender be required to pay any amount to any Loan Party pursuant to this paragraph (h) to the extent that the payment thereof would place the Administrative Agent or such Lender in a less favorable net after-Tax position than the position that the Administrative Agent or such Lender would have been in if the Tax subject to indemnification had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts giving rise to such refund had never been paid.  This Section 2.14 shall not be construed to require the Administrative Agent or any Lender to make available its Tax returns (or any other information relating to its Taxes which it deems confidential) to the relevant Loan Party or any other Person.

 

(i)                                     For purposes of this Section 2.14, the term “Requirements of Law” includes FATCA.

 

(j)                                    Survival.  Each party’s obligations under this Section 2.14 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, any Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

 

Section 2.15                             Payments Generally; Allocation of Proceeds; Sharing of Payments.

 

(a)                                 Unless otherwise specified, the Borrower shall make each payment required to be made by it hereunder (whether of principal, interest or fees or of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to 3:00 p.m. on the date when due, in immediately available funds, without set-off (except as otherwise provided in Section 2.14) or counterclaim.  Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon.  All such payments shall be made to the Administrative Agent to the applicable account designated by the Administrative Agent to the Borrower, except that payments pursuant to Sections 2.12, 2.13, 2.14 and 9.03 shall be made directly to the Person or Persons entitled thereto.  The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof.  Except as provided in Sections 2.16(b) and 2.17, each Borrowing, each payment or prepayment of principal of any Borrowing, each payment of interest on the Loans of a given Class and each conversion of any Borrowing to or continuation of any Borrowing as a Borrowing of any Type (and of the same Class) shall be allocated pro rata among the Lenders in accordance with their respective Applicable Percentages of the applicable Class.  Each Lender agrees that in computing such Lender’s portion of any Borrowing to be made hereunder, the Administrative Agent may, in its discretion, round each Lender’s percentage of such Borrowing to the next higher or lower whole Dollar amount.  All payments hereunder shall be made in Dollars.  Any payment required to be made by the Administrative Agent hereunder shall be deemed to have been made by the time required if the Administrative Agent shall, at or before such time, have taken the necessary steps to make such payment in accordance with the regulations or operating procedures of the clearing or settlement system used by the Administrative Agent to make such payment.

 

(b)                                 Subject in all respects to the provisions of the Intercreditor Agreement, all proceeds of Collateral received by the Administrative Agent while an Event of Default exists and all or any portion of the Loans have been accelerated hereunder pursuant to Section 7.01, shall be applied, first, to the payment of all costs and expenses then due incurred by the Administrative Agent in connection

 

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with any collection, sale or realization on Collateral or otherwise in connection with this Agreement, any other Loan Document or any of the Secured Obligations, including all court costs and the fees and expenses of agents and legal counsel, the repayment of all advances made by the Administrative Agent hereunder or under any other Loan Document on behalf of any Loan Party and any other costs or expenses incurred in connection with the exercise of any right or remedy hereunder or under any other Loan Document, second, on a pro rata basis, to pay any fees, indemnities or expense reimbursements then due to the Administrative Agent (other than those covered in clause first above) from the Borrower constituting Secured Obligations, third, on a pro rata basis in accordance with the amounts of the Secured Obligations (other than contingent indemnification obligations for which no claim has yet been made) owed to the Secured Parties on the date of any such distribution, to the payment in full of the Secured Obligations; fourth, as provided in the Intercreditor Agreement, and fifth, to, or at the direction of, the Borrower or as a court of competent jurisdiction may otherwise direct.

 

(c)                                  If any Lender obtains payment (whether voluntary, involuntary, through the exercise of any right of set-off or otherwise) in respect of any principal of or interest on any of its Loans of any Class held by it resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans of such Class and accrued interest thereon than the proportion received by any other Lender with Loans of such Class, then the Lender receiving such greater proportion shall purchase (for Cash at face value) participations in the Loans of such Class of other Lenders of such Class at such time outstanding to the extent necessary so that the benefit of all such payments shall be shared by the Lenders of such Class ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans of such Class; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not apply to (x) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or (y) any payment obtained by any Lender as consideration for the assignment of or sale of a participation in any of its Loans to any permitted assignee or participant, including any payment made or deemed made in connection with Sections 2.19, 2.20 and 9.02(c).  Each Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable Requirements of Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.  The Administrative Agent will keep records (which shall be conclusive and binding in the absence of manifest error) of participations purchased under this Section 2.15(c) and will, in each case, notify the Lenders following any such purchases or repayments.  Each Lender that purchases a participation pursuant to this Section 2.15(c) shall from and after such purchase have the right to give all notices, requests, demands, directions and other communications under this Agreement with respect to the portion of the Obligations purchased to the same extent as though the purchasing Lender were the original owner of the Obligations purchased.

 

(d)                                 Unless the Administrative Agent has received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of any Lender hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the applicable Lender the amount due.  In such event, if the Borrower has not in fact made such payment, then each Lender severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

 

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(e)                                  If any Lender fails to make any payment required to be made by it pursuant to Section 2.04(b) or Section 2.15(d), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid.

 

Section 2.16                             Mitigation Obligations; Replacement of Lenders.

 

(a)                                 If any Lender requests compensation under Section 2.12 or such Lender determines it can no longer make or maintain Eurodollar Rate Loans pursuant to Section 2.17, or such Lender requires any Loan Party to pay any additional amount to or indemnify any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.14, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder, or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.12 or 2.14, as applicable, in the future or mitigate the impact of Section 2.17, as the case may be, and (ii) would not subject such Lender to any unreimbursed out-of-pocket cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

 

(b)                                 If (i) any Lender requests compensation under Section 2.12 or such Lender determines it can no longer make or maintain Eurodollar Rate Loans pursuant to Section 2.17, (ii) any Lender requires any Loan Party to pay any additional amount to or indemnify any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.11 and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with Section 2.13(a), (iii) any Lender is a Defaulting Lender, or (iv) in connection with any proposed amendment, waiver or consent requiring the consent of “each Lender” or “each Lender directly affected thereby” (or any other Class or group of Lenders other than the Required Lenders) with respect to which Required Lender (or the consent of Lenders holding loans or commitments of such Class or lesser group representing more than 50% of the sum of the total loans and unused commitments of such Class or lesser group at such time) has been obtained, as applicable, any Lender is a non-consenting Lender (each such Lender described in this clause (iv), a “Non-Consenting Lender”), then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, (x) terminate the applicable Commitments of such Lender, and repay all Obligations of the Borrower owing to such Lender relating to the applicable Loans and participations held by such Lender as of such termination date or (y) replace such Lender by requiring such Lender to assign and delegate (and such Lender shall be obligated to assign and delegate), without recourse (in accordance with and subject to the restrictions contained in Section 9.05), all of its interests, rights (other than its existing rights to payments pursuant to Section 2.12 or Section 2.14) and obligations under this Agreement to an Eligible Assignee that shall assume such obligations (which Eligible Assignee may be another Lender, if any Lender accepts such assignment); provided that (A) such Lender has received payment of an amount equal to the outstanding principal amount of its Loans of such Class of Loans and/or Commitments, accrued interest thereon, accrued fees and all other amounts payable to it hereunder with respect to such Class of Loans and/or Commitments, (B) in the case of any assignment resulting from a claim for compensation under Section 2.12 or payments required to be made pursuant to Section 2.14, such assignment would result in a reduction in such compensation or payments and (C) such assignment does not conflict with applicable Requirements of Law.  No Lender (other than a Defaulting Lender) shall be required to make any such assignment and delegation, and the Borrower may not repay the Obligations of such Lender or terminate its Commitments, 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 Lender agrees that

 

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if it is replaced pursuant to this Section 2.16, it shall execute and deliver to the Administrative Agent an Assignment and Assumption to evidence such sale and purchase and shall deliver to the Administrative Agent any Promissory Note (if the assigning Lender’s Loans are evidenced by one or more Promissory Notes) subject to such Assignment and Assumption (provided that the failure of any Lender replaced pursuant to this Section 2.16 to execute an Assignment and Assumption or deliver any such Promissory Note shall not render such sale and purchase (and the corresponding assignment) invalid), such assignment shall be recorded in the Register and any such Promissory Note shall be deemed cancelled.  Each Lender hereby irrevocably appoints the Administrative Agent (such appointment being coupled with an interest) as such Lender’s attorney-in-fact, with full authority in the place and stead of such Lender and in the name of such Lender, from time to time in the Administrative Agent’s discretion, with prior written notice to such Lender, to take any action and to execute any such Assignment and Assumption or other instrument that the Administrative Agent may deem reasonably necessary to carry out the provisions of this clause (b).  To the extent that any Lender is replaced pursuant to Section 2.16(b)(iv) in connection with a Repricing Transaction requiring payment of a fee pursuant to Section 2.09(d), the Borrower shall pay to each Lender being replaced as a result of such Repricing Transaction the fee set forth in Section 2.09(d).

 

Section 2.17                             Illegality.  If any Lender reasonably determines that any Change in Law has made it unlawful, or that any Governmental Authority has asserted after the Closing Date that it is unlawful, for such Lender or its applicable lending office to make, maintain or fund Loans whose interest is determined by reference to Adjusted Eurodollar Rate, or to determine or charge interest rates based upon the Adjusted Eurodollar Rate, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the applicable interbank market, then, on notice thereof by such Lender to the Borrower through the Administrative Agent, (i) any obligation of such Lender to make or continue Eurodollar Rate Loans or to convert ABR Loans to Eurodollar Rate Loans shall be suspended and (ii) if such notice asserts the illegality of such Lender making or maintaining ABR Loans the interest rate on which is determined by reference to the Eurodollar Rate component of the Alternate Base Rate, the interest rate on which ABR Loans of such Lender, shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to the Eurodollar Rate component of the Alternate Base Rate, in each case until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist (which notice such Lender agrees to give promptly).  Upon receipt of such notice, (x) the Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, convert all of such Lender’s Eurodollar Rate Loans to ABR Loans (the interest rate on which ABR Loans of such Lender shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to the Eurodollar Rate component of the Alternate Base Rate) either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Rate Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Eurodollar Rate Loans (in which case the Borrower shall not be required to make payments pursuant to Section 2.13 in connection with such payment) and (y) if such notice asserts the illegality of such Lender determining or charging interest rates based upon the Eurodollar Rate, the Administrative Agent shall during the period of such suspension compute the Alternate Base Rate applicable to such Lender without reference to the Eurodollar Rate component thereof until the Administrative Agent is advised in writing by such Lender that it is no longer illegal for such Lender to determine or charge interest rates based upon the Eurodollar Rate.  Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted.  Each Lender agrees to designate a different lending office if such designation will avoid the need for such notice and will not, in the determination of such Lender, otherwise be materially disadvantageous to such Lender.

 

Section 2.18                             Defaulting Lenders.  Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then for so long as such Lender is a Defaulting

 

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Lender, the Loans and the Commitments of such Defaulting Lender shall not be included in determining whether all Lenders, each affected Lender, the Required Lenders or such other number of Lenders as may be required hereby or under any other Loan Document have taken or may take any action hereunder (including any consent to any waiver, amendment or modification pursuant to Section 9.02); provided that any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender which affects such Defaulting Lender disproportionately and adversely relative to other affected Lenders shall require the consent of such Defaulting Lender.

 

Section 2.19                             Incremental Credit Extensions.

 

(a)                                 The Borrower may, at any time, on one or more occasions pursuant to an Incremental Facility Amendment add one or more new tranches of term facilities and/or increase the principal amount of the Term Loans (other than the Delayed Draw Term Loans) of any existing Class by requesting new commitments to provide such Term Loans (any such new tranche or increase, an “Incremental Term Facility” and any loans made pursuant to an Incremental Term Facility, “Incremental Term Loans”) in an aggregate outstanding principal amount not to exceed the Incremental Cap; provided that:

 

(i)                         no Incremental Commitment in respect of any Incremental Term Facility may be in an amount that is less than $5,000,000 (or such lesser amount to which the Administrative Agent may reasonably agree),

 

(ii)                      except as the Borrower and any Lender may separately agree, no Lender shall be obligated to provide any Incremental Commitment, and the determination to provide such commitments shall be within the sole and absolute discretion of such Lender,

 

(iii)                   no Incremental Facility or Incremental Loan (nor the creation, provision or implementation thereof) shall require the approval of any existing Lender other than in its capacity, if any, as a lender providing all or part of any Incremental Commitment or Incremental Loan,

 

(iv)                  except as otherwise permitted herein, the terms of any Incremental Term Facility (other than any terms which are applicable only after the Maturity Date of any then-existing tranche of Term Loans) must be substantially consistent with those applicable to any then-existing Term Loans or otherwise reasonably acceptable to the Administrative Agent,

 

(v)                     the Effective Yield (and the components thereof) applicable to any Incremental Facility may be determined by the Borrower and the lender or lenders providing such Incremental Facility; provided that, in the case of any Incremental Term Facility that is pari passu with the Initial Term Loans in right of payment and with respect to security, the Effective Yield applicable thereto may not be more than 0.50% higher than the Effective Yield applicable to the Initial Term Loans unless the Applicable Rate with respect to the Initial Term Loans is adjusted to be equal to the Effective Yield with respect to such Incremental Facility, minus, 0.50%,

 

(vi)                  the final maturity date with respect to any Incremental Term Loans shall be no earlier than the Latest Term Loan Maturity Date at the time of incurrence thereof,

 

(vii)               the Weighted Average Life to Maturity of any Incremental Term Facility shall be no shorter than the remaining Weighted Average Life to Maturity of any then-existing tranche of Term Loans (without giving effect to any prepayments thereof),

 

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(viii)            (A) any Incremental Term Facility may rank pari passu with or junior to any then-existing tranche of Term Loans, as applicable, in right of payment and/or security or may be unsecured (and to the extent the relevant Incremental Facility is pari passu with or subordinated to any then-existing tranche of Term Loans in right of payment or security and documented in a separate agreement, it shall be subject to an Acceptable Intercreditor Agreement) and (B) no Incremental Facility may be (x) guaranteed by any Person which is not a Loan Party or (y) secured by any assets other than the Collateral,

 

(ix)                  (A) any prepayment (other than any scheduled amortization payment) of Incremental Term Loans that are pari passu in right of payment and security with any then-existing Term Loans shall be made on a pro rata basis with such existing Term Loans and (B) any prepayment (other than any scheduled amortization payment) of Incremental Term Loans that are subordinated in right of payment or security with any existing Term Loans shall be made on a junior basis with respect to such existing Term Loans, except that the Borrower and the lenders providing the relevant Incremental Term Loans shall be permitted, in their sole discretion, to elect to prepay or receive, as applicable, any such prepayment on a less than pro rata basis (but not on a greater than pro rata basis),

 

(x)                     subject to Section 2.19(f), no Event of Default shall exist immediately prior to or after giving effect to the effectiveness of such Incremental Facility,

 

(xi)                  the proceeds of any Incremental Facility may be used for working capital and other general corporate purposes (including acquisitions, Investments and Restricted Payments) and any other use not prohibited by this Agreement, and

 

(xii)               on the date of the Borrowing of any Incremental Term Loans that will be of the same Class as any then-existing Class of Term Loans, and notwithstanding anything to the contrary set forth in Sections 2.05 or 2.10 above, such Incremental Term Loans shall be added to (and constitute a part of, be of the same Type as and, at the election of the Borrower, have the same Interest Period as) each Borrowing of outstanding Term Loans of such Class on a pro rata basis (based on the relative sizes of such Borrowings), so that each Term Lender providing such Incremental Term Loans will participate proportionately in each then-outstanding Borrowing of Term Loans of such Class; it being acknowledged that the application of this clause (a)(xii) may result in new Incremental Term Loans having Interest Periods (the duration of which may be less than one month) that begin during an Interest Period then applicable to outstanding Eurodollar Rate Loans of the relevant Class and which end on the last day of such Interest Period.

 

(b)                                 Incremental Commitments may be provided by any existing Lender (in its sole discretion), or by any other Eligible Assignee (any such other lender being called an “Additional Lender”); provided that the Administrative Agent shall have consented (such consent not to be unreasonably withheld) to the relevant Additional Lender’s provision of Incremental Commitments if such consent would be required under Section 9.05(b) for an assignment of Loans to such Additional Lender; provided, further, that any Additional Lender that is an Affiliated Lender shall be subject to the provisions of Section 9.05(g), mutatis mutandis, to the same extent as if the relevant Incremental Commitments and related Obligations had been acquired by such Lender by way of assignment.

 

(c)                                  Each Lender or Additional Lender providing a portion of any Incremental Commitment shall execute and deliver to the Administrative Agent and the Borrower all such documentation (including the relevant Incremental Facility Amendment) as may be reasonably required by the Administrative Agent to evidence and effectuate such Incremental Commitment.  On the effective

 

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date of such Incremental Commitment, each Additional Lender shall become a Lender for all purposes in connection with this Agreement.

 

(d)                                 As conditions precedent to the effectiveness of any Incremental Facility or the making of any Incremental Loans, (i) upon its request, the Administrative Agent shall have received customary written opinions of counsel, as well as such reaffirmation agreements, supplements and/or amendments as it shall reasonably require, (ii) the Administrative Agent shall have received, from each Additional Lender, an administrative questionnaire, in the form provided to such Additional Lender by the Administrative Agent (the “Administrative Questionnaire”) and such other documents as it shall reasonably require from such Additional Lender, (iii) the Administrative Agent and Lenders shall have received all fees required to be paid in respect of such Incremental Facility or Incremental Loans, (iv) subject to Section 2.19(f), the Administrative Agent shall have received a Borrowing Request as if the relevant Incremental Loans were subject to Section 2.03 or another written request, the form of which is reasonably acceptable to the Administrative Agent and (v) the Administrative Agent shall have received a certificate of the Borrower signed by a Responsible Officer thereof:

 

(A)                               certifying and attaching a copy of the resolutions adopted by the governing body of the Borrower approving or consenting to such Incremental Facility or Incremental Loans, and

 

(B)                               to the extent applicable, certifying that the condition set forth in clause (a)(x) above has been satisfied.

 

(e)                                  The Lenders hereby irrevocably authorize the Administrative Agent to enter into any Incremental Facility Amendment and/or any amendment to any other Loan Document as may be necessary in order to establish new Classes or sub-Classes in respect of Loans or Commitments pursuant to this Section 2.19 and such technical amendments as may be necessary or appropriate in the reasonable opinion of the Administrative Agent and the Borrower in connection with the establishment of such new Classes or sub-Classes, in each case on terms consistent with this Section 2.19.

 

(f)                                   Notwithstanding anything to the contrary in this Section 2.19 or any other provision of any Loan Document, if the proceeds of any Incremental Term Facility will be used to consummate a Limited Conditionality Acquisition and the Borrower has made an LCA Election with respect to such Limited Conditionality Acquisition, the condition that, at the time of the effectiveness of any Incremental Term Facility (and after giving effect thereto), no Event of Default shall exist, may be tested and satisfied as of the LCA Test Date; provided, that, (x) upon the effectiveness of any Incremental Term Facility, no Event of Default under Section 7.01(a), 7.01(f) or 7.01(g) shall exist and (y) the availability of such Incremental Term Facility shall nevertheless be subject to customary “specified” and “acquisition agreement” representations.

 

(g)                                  This Section 2.19 shall supersede any provision in Section 2.15 or 9.02 to the contrary.

 

Section 2.20                             Extensions of Loans.

 

(a)                                 Notwithstanding anything to the contrary in this Agreement, pursuant to one or more offers (each, an “Extension Offer”) made from time to time by the Borrower to all Lenders holding Loans or Commitments of any Class, in each case on a pro rata basis (based on the aggregate outstanding principal amount of the respective Loans of such Class) and on the same terms to each such Lender, the Borrower is hereby permitted to consummate transactions with any individual Lender who accepts the terms contained in the relevant Extension Offer to extend the Maturity Date of such Lender’s Loans of

 

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such Class and otherwise modify the terms of such Loans pursuant to the terms of the relevant Extension Offer (including by increasing the interest rate or fees payable in respect of such Loans and/or Commitments (and related outstandings) and/or modifying the amortization schedule, if any, in respect of such Loans) (each, an “Extension”, and each group of Loans or Commitments, as applicable, in each case as so extended, and the original Loans and the original Commitments (in each case not so extended), being a “tranche”); it being understood that any Extended Term Loans shall constitute a separate tranche of Loans from the tranche of Loans from which they were converted, so long as the following terms are satisfied:

 

(i)                         except as to (A) interest rates, fees, amortization, final maturity date, premiums, required prepayment dates and participation in prepayments (which shall, subject to immediately succeeding clauses (iii), (iv) and (v), be determined by the Borrower and any Lender who agrees to an Extension of its Term Loans and set forth in the relevant Extension Offer) and (B) any covenants or other provisions applicable only to periods after the Latest Maturity Date (in each case, as of the date of such Extension), the Term Loans of any Lender extended pursuant to any Extension (any such extended Term Loans, the “Extended Term Loans”) shall have the same terms (or terms not less favorable to existing Lenders) as the tranche of Term Loans subject to the relevant Extension Offer; provided, however, that any representations and warranties, affirmative and negative covenants (including financial covenants) and events of default applicable to such tranche of Extended Term Loans that also expressly apply to (and for the benefit of) the tranche of Term Loans subject to the Extension Offer and each other Class of Term Loans hereunder may be more favorable to the lenders of the applicable tranche of Extended Term Loans than those originally applicable to the tranche of Term Loans subject to the Extension Offer;

 

(ii)                      the final Maturity Date of any Extended Term Loans may be no earlier than the then applicable Latest Maturity Date at the time of Extension;

 

(iii)                   the Weighted Average Life to Maturity of any Extended Term Loans shall be no shorter than the remaining Weighted Average Life to Maturity of any then-existing Term Loans;

 

(iv)                  any Extended Term Loans may participate on a pro rata basis or a less than pro rata basis (but not greater than a pro rata basis) in any voluntary or mandatory repayments or prepayments (but, for purposes of clarity, not scheduled amortization payments) in respect of the Term Loans, in each case as specified in the relevant Extension Offer;

 

(v)                     if the aggregate principal amount of Loans in respect of which Lenders have accepted the relevant Extension Offer exceed the maximum aggregate principal amount of Loans offered to be extended by the Borrower pursuant to such Extension Offer, then the Loans of such Lenders shall be extended ratably up to such maximum amount based on the respective principal amounts (but not to exceed the applicable Lender’s actual holdings of record) with respect to which such Lenders have accepted such Extension Offer;

 

(vi)                  unless the Administrative Agent otherwise agrees, any Extension must be in a minimum amount of $5,000,000;

 

(vii)               any applicable Minimum Extension Condition must be satisfied or waived by the Borrower; and

 

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(viii)            any documentation in respect of any Extension shall be consistent with the foregoing.

 

(b)                                 (i) No Extension consummated in reliance on this Section 2.20, shall constitute a voluntary or mandatory prepayment for purposes of Section 2.08, (ii) the scheduled amortization payments (insofar as such schedule affects payments due to Lenders participating in the relevant Class) set forth in Section 2.07 shall be adjusted to give effect to any Extension of any Class of Loans and (iii) except as set forth in clause (a)(vi) above, no Extension Offer is required to be in any minimum amount or any minimum increment; provided that the Borrower may, at its election, specify as a condition (a “Minimum Extension Condition”) to the consummation of any Extension that a minimum amount (to be specified in the relevant Extension Offer in the Borrower’s sole discretion) of Loans or Commitments (as applicable) of any or all applicable tranches be tendered; it being understood that the relevant Borrower may, in its sole discretion, waive any such Minimum Extension Condition.  The Administrative Agent and the Lenders hereby consent to the transactions contemplated by this Section 2.20 (including, for the avoidance of doubt, the payment of any interest, fees or premium in respect of any Extended Term Loans on such terms as may be set forth in the relevant Extension Offer) and hereby waive the requirements of any provision of this Agreement (including Sections 2.07, 2.08 or 2.15) or any other Loan Document that may otherwise prohibit any Extension or any other transaction contemplated by this Section.

 

(c)                                  No consent of any Lender or the Administrative Agent shall be required to effectuate any Extension, other than the consent of each Lender agreeing to such Extension with respect to one or more of its Loans of any Class (or a portion thereof).  All Extended Term Loans and all obligations in respect thereof shall constitute Secured Obligations under this Agreement and the other Loan Documents that are secured by the Collateral and guaranteed on a pari passu basis with all other applicable Secured Obligations under this Agreement and the other Loan Documents.  The Lenders hereby irrevocably authorize the Administrative Agent to enter into any Extension Amendment and any amendments to any of the other Loan Documents with the Loan Parties as may be necessary in order to establish new Classes or sub-Classes in respect of Loans or Commitments so extended and such technical amendments as may be necessary or appropriate in the reasonable opinion of the Administrative Agent and the Borrower in connection with the establishment of such new Classes or sub-Classes, in each case on terms consistent with this Section 2.20.

 

(d)                                 In connection with any Extension, the Borrower shall provide the Administrative Agent at least five Business Days’ (or such shorter period as may be agreed by the Administrative Agent) prior written notice thereof, and shall agree to such procedures (including regarding timing, rounding and other adjustments and to ensure reasonable administrative management of the credit facilities hereunder after such Extension), if any, as may be established by, or acceptable to, the Administrative Agent, in each case acting reasonably to accomplish the purposes of this Section 2.20.

 

ARTICLE 3                              REPRESENTATIONS AND WARRANTIES

 

On the Closing Date and on the other dates required pursuant to Article IV, Holdings (solely with respect to Sections 3.01, 3.02, 3.03, 3.07, 3.08, 3.09, 3.13, 3.14, 3.16 and 3.17) and the Borrower, represent and warrant to the Lenders that:

 

Section 3.01                             Organization; Powers.  Holdings, the Borrower and each of its Restricted Subsidiaries (a) is (i) duly organized and validly existing and (ii) in good standing (to the extent such concept exists in the relevant jurisdiction) under the Requirements of Law of its jurisdiction of organization, (b) has all requisite organizational power and authority to own its assets and to carry on its business as now conducted and (c) is qualified to do business in, and is in good standing (to the extent

 

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such concept exists in the relevant jurisdiction) in, every jurisdiction where the ownership, lease or operation of its properties or conduct of its business requires such qualification, except, in each case referred to in this Section 3.01 (other than clause (a)(i) and clause (b) with respect to the Borrower) where the failure to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

 

Section 3.02                             Authorization; Enforceability.  The execution, delivery and performance by each Loan Party of each Loan Document to which such Loan Party is a party are within such Loan Party’s corporate or other organizational power and have been duly authorized by all necessary corporate or other organizational action of such Loan Party.  Each Loan Document to which any Loan Party is a party has been duly executed and delivered by such Loan Party and is a legal, valid and binding obligation of such Loan Party, enforceable in accordance with its terms, subject to the Legal Reservations.

 

Section 3.03                             Governmental Approvals; No Conflicts.  The execution and delivery of each Loan Document by each Loan Party party thereto and the performance by such Loan Party thereof (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except (i) such as have been obtained or made and are in full force and effect, (ii) in connection with the Perfection Requirements and (iii) such consents, approvals, registrations, filings, or other actions the failure to obtain or make which could not be reasonably expected to have a Material Adverse Effect, (b) will not violate any (i) of such Loan Party’s Organizational Documents or (ii) Requirement of Law applicable to such Loan Party which violation, in the case of this clause (b)(ii), could reasonably be expected to have a Material Adverse Effect and (c) will not violate or result in a default under any Contractual Obligation to which such Loan Party is a party which violation, in the case of this clause (c), could reasonably be expected to result in a Material Adverse Effect.

 

Section 3.04                             Financial Condition; No Material Adverse Effect.

 

(a)                                 The financial statements (i) of Target provided pursuant to Section 4.01(c)(i) and (ii) after the Closing Date, most recently provided pursuant to Section 5.01(a) or (b), as applicable, present fairly, in all material respects, the financial position and results of operations and cash flows of Holdings on a consolidated basis as of such dates and for such periods in accordance with GAAP, subject, in the case of financial statements provided pursuant to Section 5.01(a), to the absence of footnotes and normal year-end adjustments.

 

(b)                                 Since December 31, 2015, there have been no events, developments or circumstances that have had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

Section 3.05                             Properties.

 

(a)                                 As of the Closing Date, Schedule 1.01(c) sets forth the address of each Real Estate Asset (or each set of such assets that collectively comprise one operating property) having a fair market value in excess of $2,500,000 that is owned in fee simple by any Loan Party.

 

(b)                                 The Borrower and each of its Restricted Subsidiaries have good and valid fee simple title to or rights to purchase, or valid leasehold interests in, or easements or other limited property interests in, all of their respective Real Estate Assets and have good title to their personal property and assets, in each case, except (i) for defects in title that do not materially interfere with their ability to conduct their business as currently conducted or to utilize such properties and assets for their intended purposes or (ii)  where the failure to have such title or rights would not reasonably be expected to have a Material Adverse Effect.

 

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(c)                                  The Borrower and its Restricted Subsidiaries solely and exclusively own or otherwise have a valid license or right to use all rights in any and all intellectual property or other similar proprietary rights throughout the world, including any and all Patents, Trademarks, Copyrights, domain names, design rights, technology, software, trade secrets, know-how, database rights and all related documentation, registrations, additions, improvements or accessions, and all goodwill associated with the foregoing (collectively, “IP Rights”) that are used in, held for use in or otherwise necessary for their respective businesses as presently conducted without any infringement, dilution, misappropriation or other violation of the IP Rights of third parties, except to the extent the failure to own or have a license or have rights to use would not, or where such infringement, dilution, misappropriation or other violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.  No claim or litigation regarding any IP Rights is pending or, to the knowledge of Borrower, threatened against Borrower or any Restricted Subsidiary, that would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

Section 3.06                             Litigation and Environmental Matters.

 

(a)                                 There are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened in writing against or affecting the Borrower or any of its subsidiaries which would reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.

 

(b)                                 Except for any matters that, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect, (i) neither the Borrower nor any of its subsidiaries is subject to or has received notice of any Environmental Claim or knows of any basis for any Environmental Claim against the Borrower or its subsidiaries and (ii) neither the Borrower nor any of its subsidiaries (A) has failed to comply with any Environmental Law or to obtain, maintain or comply with any Governmental Authorization required under any Environmental Law or (B) is subject to, or knows of any basis for, any Environmental Liability.

 

(c)                                  Neither the Borrower nor any of its subsidiaries has conducted any Hazardous Materials Activities in a manner that would reasonably be expected to have a Material Adverse Effect.

 

Section 3.07                             Compliance with Laws.  Each of Holdings, the Borrower and each of its Restricted Subsidiaries is in compliance with all Requirements of Law applicable to it or its property, except, in each case, where the failure to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect; it being understood and agreed that this Section 3.07 shall not apply to the Requirements of Law covered by Section 3.15.

 

Section 3.08                             Investment Company Status.  None of Holdings, the Borrower or any of its Restricted Subsidiaries is an “investment company” as defined in, or is required to be registered under, the Investment Company Act of 1940.

 

Section 3.09                             Taxes.  Each of Holdings, the Borrower and each of its Restricted Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it that are due and payable (including in its capacity as a withholding agent), except (a) Taxes (or any requirement to file Tax returns with respect thereto) that are being contested in good faith by appropriate proceedings and for which Holdings, the Borrower or such Restricted Subsidiary, as applicable, has set aside on its books adequate reserves in accordance with GAAP or (b) to the extent that the failure to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

 

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Section 3.10                             ERISA.

 

(a)                                 Each Plan is in compliance in form and operation with its terms and with ERISA and the Code and all other applicable Requirements of Law, except where any failure to comply would not reasonably be expected to result in a Material Adverse Effect.  There are no pending, or to the knowledge of the Borrower or any of its Subsidiaries, threatened material claims (other than claims for benefits in the ordinary course), sanctions, actions, suits, or proceedings asserted or instituted by any Person against any Plan or any Person as fiduciary or sponsor of any Plan, except as would not result in a Material Adverse Effect.

 

(b)                                 No ERISA Event has occurred and is continuing or is reasonably expected to occur that, when taken together with all other such ERISA Events, would reasonably be expected to result in a Material Adverse Effect.

 

Section 3.11                             Disclosure.

 

(a)                                 As of the Closing Date, and with respect to information relating to the Target and its subsidiaries, to the knowledge of the Borrower, all written information (other than the Projections, other forward-looking and/or projected information and information of a general economic or industry-specific nature) concerning Holdings, the Borrower and its subsidiaries that was included in the Information Memorandum or otherwise prepared by or on behalf of Holdings, the Borrower and its subsidiaries or their respective representatives and made available to any Initial Lender or the Administrative Agent in connection with the Transactions on or before the Closing Date (the “Information”), when taken as a whole, did not, when furnished, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made (after giving effect to all supplements and updates thereto from time to time).

 

(b)                                 The Projections have been prepared in good faith based upon assumptions believed by the Borrower to be reasonable at the time furnished (it being recognized that such Projections are not to be viewed as facts and are subject to significant uncertainties and contingencies, many of which are beyond the Borrower’s control, that no assurance can be given that any particular financial projections will be realized, that actual results may differ from projected results and that such differences may be material).

 

Section 3.12                             Security Interest in Collateral.  Subject to the terms of the last paragraph of Section 4.01, the Legal Reservations, the Perfection Requirements, the Intercreditor Agreement and the provisions of this Agreement and the other relevant Loan Documents, the Collateral Documents create legal, valid and enforceable Liens on all of the Collateral in favor of the Administrative Agent, for the benefit of itself and the other Secured Parties, and upon the satisfaction of the applicable Perfection Requirements, such Liens constitute perfected Liens (with the priority that such Liens are expressed to have under the relevant Collateral Documents) on the Collateral (to the extent such Liens are required to be perfected under the terms of the Loan Documents) securing the Secured Obligations, in each case as and to the extent set forth therein.

 

Section 3.13                             Labor Disputes.  As of the Closing Date, except as individually or in the aggregate would not reasonably be expected to have a Material Adverse Effect, (a) there are no strikes, lockouts or slowdowns against the Borrower or any of its Restricted Subsidiaries pending or, to the knowledge of the Borrower, threatened and (b) the hours worked by and payments made to employees of the Borrower and its Restricted Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable Requirements of Law dealing with such matters.

 

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Section 3.14                             Federal Reserve Regulations.

 

(a)                                 None of Holdings, the Borrower nor any of their respective Restricted Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of buying or carrying Margin Stock.

 

(b)                                 No part of the proceeds of any Loan has been or will be used, whether directly or indirectly, and whether immediately, incidentally or ultimately, for any purpose that results in a violation of the provisions of Regulation T, U or X.

 

Section 3.15                             Anti-Terrorism Laws.

 

(a)                                 None of Holdings, the Borrower, any of their respective Subsidiaries, any of their respective directors, officers, or employees nor, to the knowledge of the Borrower, any of their respective agents or Affiliates is (i) a Person on the list of “Specially Designated Nationals and Blocked Persons” maintained by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”) or any other sanctions-related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, Her Majesty’s Treasury of the United Kingdom, the European Union or any European Union member state, (ii) located, organized or resident in a Sanctioned Country, (iii) owned or controlled by any Person or Persons described in the foregoing clauses (i) or (ii), or (iv) a Person otherwise currently the target of any Sanctions.

 

(b)                                 Each of Holdings, the Borrower, and each of their respective Subsidiaries is in compliance, in all material respects, with (i) applicable Sanctions, (ii) the USA PATRIOT Act, to the extent applicable, and (c) the U.S. Foreign Corrupt Practices Act of 1977 (the “FCPA”) and all other applicable anti-corruption laws (collectively with the FCPA, “Anti-Corruption Laws”).  No Borrowing, use of proceeds or other transaction contemplated by this Agreement will violate any Anti-Corruption Law or applicable Sanctions.

 

Section 3.16                             Solvency.

 

As of the Closing Date and immediately after the consummation of the Transactions to occur on the Closing Date and the incurrence of indebtedness and obligations being incurred in connection with this Agreement and the Transactions on the Closing Date; (i) the sum of the debt (including contingent liabilities) of the Borrower and its subsidiaries, taken as a whole, does not exceed the fair value of the assets (on an ongoing basis) of the Borrower and its subsidiaries, taken as a whole; (ii) the present fair saleable value of the assets of the Borrower and its subsidiaries, taken as a whole, is not less than the amount that will be required to pay the probable liabilities (including contingent liabilities) of the Borrower and its subsidiaries, taken as a whole, on their debts as they become absolute and matured; (iii) the capital of the Borrower and its subsidiaries, taken as a whole, is not unreasonably small in relation to the business of the Borrower and its subsidiaries, taken as a whole, contemplated as of the Closing Date; and (iv) the Borrower and its subsidiaries, taken as a whole, do not intend to incur, or believe that they will incur, debts (including current obligations and contingent liabilities) beyond their ability to pay such debt as they mature in the ordinary course of business.  For the purposes hereof, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

Section 3.17                             Capitalization and Subsidiaries.  Schedule 3.17 sets forth as of the Closing Date (immediately after giving to the Transactions) a correct and complete list containing (a) the name of each

 

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subsidiary of Holdings and the ownership interest therein held by Holdings or its applicable subsidiary, and (b) the type of entity of Holdings and each of its subsidiaries.

 

ARTICLE 4                              CONDITIONS

 

Section 4.01                             Closing Date.  The obligations of each Lender to make Initial Term Loans on the Closing Date, hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02):

 

(a)                                 Term Loan Agreement and Loan Documents.  The Administrative Agent (or its counsel) shall have received (i) from each Loan Party party thereto, a counterpart signed by such Loan Party (or written evidence satisfactory to the Administrative Agent (which may include a facsimile or other electronic transmission) that such party has signed a counterpart) of (A) this Agreement, (B) the Security Agreement, (C) any Intellectual Property Security Agreement, (D) the Loan Guaranty, (E) the Intercreditor Agreement and (F) each Promissory Note requested by a Lender at least three Business Days prior to the Closing Date and (ii) a Borrowing Request as required by Section 2.03.

 

(b)                                 Legal Opinions.  The Administrative Agent shall have received, on behalf of itself and the Lenders on the Closing Date, a customary written opinion of Vinson & Elkins LLP, in its capacity as special counsel to the Loan Parties, dated the Closing Date and addressed to the Administrative Agent and the Lenders.

 

(c)                                  Financial Statements.  The Administrative Agent shall have received (i) an audited consolidated balance sheet and audited consolidated statements of income, stockholders’ equity and cash flows of the Target as of and for the Fiscal Years ended on or about December 31, 2014 and December 31, 2015, (ii) unaudited consolidated balance sheets and related statements of income and cash flows of the Target for the Fiscal Quarter ended on or about September 30, 2016 and (iii) a pro forma consolidated balance sheet and related pro forma statement of income of the Borrower as of the last day of and for the four Fiscal Quarters ended on or about September 30, 2016, prepared after giving effect to the Transactions as if the Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of the statement of income); provided, that each such pro forma financial statement shall be prepared in good faith by the Borrower.

 

(d)                                 Secretary’s Certificate and Good Standing Certificates.  The Administrative Agent shall have received (i) a certificate of each Loan Party, dated the Closing Date and executed by a secretary, assistant secretary or other Responsible Officer thereof, which shall (A) certify that attached thereto are (x) a true and complete copy of the certificate or articles of incorporation, formation or organization of such Loan Party certified by the relevant authority of its jurisdiction of organization, which certificate or articles of incorporation, formation or organization of such Loan Party attached thereto have not been amended (except as attached thereto) since the date reflected thereon, (y) a true and correct copy of the by-laws or operating, management, partnership or similar agreement of such Loan Party, together with all amendments thereto as of the Closing Date and such by-laws or operating, management, partnership or similar agreement are in full force and effect and (z) a true and complete copy of the resolutions or written consent, as applicable, of its board of directors, board of managers, sole member or other applicable governing body authorizing the execution, delivery and performance of the Loan Documents, and, in the case of the Borrower, the borrowings and other obligations thereunder, which resolutions or consent have not been modified, rescinded or amended (other than as attached thereto) and are in full force and effect, and (B) identify by name and title and bear the signatures of the officers, managers, directors or authorized signatories of such Loan Party authorized to sign the Loan Documents to which such Loan Party is a party on the Closing Date and (ii) a good standing (or

 

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equivalent) certificate as of a recent date for such Loan Party from the relevant authority of its jurisdiction of organization.

 

(e)                                  Representations and Warranties.  The (i) Specified Acquisition Agreement Representations shall be true and correct to the extent required by the terms of the definition thereof and (ii) the Specified Representations shall be true and correct in all material respects on and as of the Closing Date; provided that (A) in the case of any Specified Representation which expressly relates to a given date or period, such representation and warranty shall be true and correct in all material respects as of the respective date or for the respective period, as the case may be and (B) if any Specified Representation is  qualified by or subject to a “material adverse effect”, “material adverse change” or similar term or qualification, (1) the definition thereof shall be the definition of “Material Adverse Effect” for purposes of the making or deemed making of such Specified Representation on, or as of, the Closing Date (or any date prior thereto) and (2) such Specified Representation shall be true and correct in all respects.

 

(f)                                   Fees.  Prior to or substantially concurrently with the funding of the Initial Term Loans hereunder, the Administrative Agent shall have received (i) all fees required to be paid by the Borrower on the Closing Date pursuant to the Fee Letter and (ii) all expenses required to be paid by the Borrower for which invoices have been presented at least three Business Days prior to the Closing Date or such later date as the Borrower may agree (including the documented reasonable fees and expenses of legal counsel), in each case on or before the Closing Date, which amounts may be offset against the proceeds of the Loans.

 

(g)                                  Solvency.  The Administrative Agent shall have received a certificate dated as of the Closing Date substantially in the form of Exhibit L from the chief financial officer (or other person with reasonably equivalent responsibilities) of the Borrower certifying as to the matters set forth therein.

 

(h)                                 Pledged Stock and Pledged Notes.  Subject to the final paragraph of this Section 4.01, the Administrative Agent shall have received (i) the certificates representing the Capital Stock required to be pledged pursuant to the Security Agreement, together with an undated stock power or similar instrument of transfer for each such certificate endorsed in blank by a duly authorized officer of the pledgor thereof, and (ii) each Material Debt Instrument (if any) endorsed (without recourse) in blank (or accompanied by a transfer form endorsed in blank) by the pledgor thereof.

 

(i)                                     Perfection Certificate.  The Administrative Agent shall have received a completed Perfection Certificate dated the Closing Date and signed by a Responsible Officer of each Loan Party, together with all attachments contemplated thereby.

 

(j)                                    Filings, Registrations and Recordings.  Subject to the last paragraph of this Section 4.01 and the terms of each applicable Collateral Document, each document (including any UCC (or similar) financing statement) required by the applicable Collateral Documents or under applicable Requirements of Law to be filed, registered or recorded in order to create in favor of the Administrative Agent, for the benefit of the Secured Parties, a perfected Lien on the Collateral required to be delivered pursuant to such Collateral Documents, prior and superior in right to any other Person (other than with respect to Permitted Liens and subject to the Intercreditor Agreement), shall be in proper form for filing, registration or recordation.

 

(k)                                 Closing Date Material Adverse Effect.  Except as otherwise contemplated by the Acquisition Agreement, since December 22, 2016, no Material Adverse Effect shall have occurred.

 

(l)                                     Refinancing.  Prior to or substantially concurrently with the funding of the Initial Term Loans hereunder,  all existing third party debt for borrowed money of the Target and its

 

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subsidiaries, other than (A) Indebtedness outstanding under any ABL Facility, (B) ordinary course capital leases, purchase money indebtedness, equipment financings, real estate financings, letters of credit and surety bonds; provided , that, the amounts permitted to survive under this clause (B) shall not exceed an aggregate amount of up to $45,000,000 and (C) other Indebtedness described on Schedule 6.01 hereto, will be repaid, redeemed, defeased, discharged, refinanced or terminated (or irrevocable notice for the repayment or redemption thereof will be given to the extent accompanied by any prepayments or deposits required to defease, terminate and satisfy in full the obligations under any related indentures or notes) and all commitments thereunder shall have been terminated (the actions described in this Section 4.01(l), the “Target Refinancing”).

 

(m)                             USA PATRIOT Act.  No later than three Business Days in advance of the Closing Date, the Administrative Agent shall have received all documentation and other information reasonably requested by it in writing at least ten Business Days in advance of the Closing Date, which documentation or other information has been reasonably determined by the Administrative Agent to be required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act.

 

(n)                                 Acquisition.  Substantially concurrently with the funding of the Initial Term Loans hereunder, the Acquisition shall be consummated in accordance with the terms of the Acquisition Agreement.

 

(o)                                 Equity Contribution.  Prior to, or substantially concurrently with the funding of the Initial Term Loans hereunder, Holdings shall have received the Equity Contribution.

 

(p)                                 ABL Credit Agreement.  The “Loan Documents” (as defined in the ABL Credit Agreement) required by the terms of the ABL Credit Agreement to be executed on the Closing Date shall have been, or substantially concurrently with the making of the Initial Term Loans hereunder on the Closing Date shall be, duly executed and delivered by each Loan Party that is party thereto.

 

(q)                                 Closing Certificate.  The Administrative Agent shall have received a certificate signed by a Responsible Officer of the Borrower attesting to the matters set forth in Sections 4.01(e) and (k).

 

For purposes of determining whether the conditions specified in this Section 4.01 have been satisfied on the Closing Date, by funding the Loans hereunder, the Administrative Agent and each Lender shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document or other matter required hereunder to be consented to or approved by or acceptable or satisfactory to the Administrative Agent or such Lender, as the case may be.

 

Notwithstanding the foregoing, to the extent that the Lien on any Collateral is not or cannot be created or perfected on the Closing Date (other than (a) execution and delivery of the Security Agreement by the Loan Parties, (b) a Lien on Collateral that is of the type that may be perfected solely by the filing of a financing statement under the UCC and (c) a Lien on the Capital Stock of the Borrower and each Subsidiary Guarantor (other than any subsidiary of the Target the certificate evidencing the Capital Stock of which has not been delivered to Merger Sub at least two Business Days prior to the Closing Date, to the extent Merger Sub has used commercially reasonable efforts to procure delivery thereof) that may be perfected on the Closing Date by the delivery of a stock or equivalent certificate (together with a stock power or similar instrument endorsed in blank for the relevant certificate)), in each case after the Merger Sub’s use of commercially reasonable efforts to do so without undue burden or expense, then the creation and/or perfection of such Lien shall not constitute a condition precedent to the availability or initial funding of the Term Facility on the Closing Date.

 

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Section 4.02                             Conditions to Delayed Draw Term Loans.  The obligation of each Lender to honor any Borrowing Request in connection with a Delayed Draw Term Borrowing is subject to the following conditions precedent:

 

(a)                                 The representations and warranties of the Borrower and each other Loan Party contained in Article V or any other Loan Document shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) on and as of the date of such Borrowing, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) as of such earlier date, and except that for purposes of this Section 4.02, the representations and warranties contained in Sections 3.04(a) shall be deemed to refer to the most recent statements furnished pursuant to Sections 5.01(a) and (b);

 

(b)                                 No Default or Event of Default shall exist, or would result from, such proposed Borrowing or from the application of the proceeds therefrom;

 

(c)                                  The Administrative Agent shall have received a Borrowing Request in accordance with the requirements hereof; and

 

(d)                                 A certificate, dated as of the date of such Borrowing, duly executed by a Responsible Officer of Holdings that (i) represents and warrants that the proceeds of such Delayed Draw Term Borrowing shall be used to consummate a Permitted Acquisition and (ii) sets forth calculations in reasonable detail demonstrating compliance with the Total Leverage Ratio of 3.50:1.00, after giving effect on a Pro Forma Basis to the Delayed Draw Term Loans to be borrowed on such date; provided, that, the condition set forth in this clause (d) may be tested as of the applicable LCA Test Date if so elected by the Borrower.

 

Each Borrowing Request (other than a Borrowing Request requesting only a conversion of Loans to the other Type or a continuation of Eurodollar Rate Loans) submitted by the Borrower shall be deemed to be a representation and warranty that the  conditions  specified  in Sections 4.02(a) and (b) have been satisfied on and as of the date of the applicable Borrowing.

 

ARTICLE 5                              AFFIRMATIVE COVENANTS

 

From the Closing Date until the date that all Commitments have expired or 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 indemnification obligations for which no claim or demand has been made) have been paid in full in Cash (such date, the “Termination Date”), Holdings (solely with respect to Section 5.01(a), 5.01(b), 5.02, 5.03, 5.12 and 5.14)  and the Borrower hereby covenant and agree with the Lenders that:

 

Section 5.01                             Financial Statements and Other Reports.  The Borrower will deliver to the Administrative Agent for delivery to each Lender:

 

(a)                                 Quarterly Financial Statements.  As soon as available, and in any event within 45 days after the end of each of the first three Fiscal Quarters of each Fiscal Year, the consolidated balance sheet of Holdings as at the end of such Fiscal Quarter and the related consolidated statements of operations and cash flows of Holdings for such Fiscal Quarter and for the period from the beginning of the then current Fiscal Year to the end of such Fiscal Quarter, and setting forth, in reasonable detail, in comparative form the corresponding figures for the corresponding periods of the previous Fiscal Year, all in reasonable detail, together with a Responsible Officer Certification (which may be included in the

 

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applicable Compliance Certificate) with respect thereto; provided, that any comparison to a prior period will be a comparison between the entity or entities, as applicable, that issued the financial statements at the applicable time;

 

(b)                                 Annual Financial Statements.  As soon as available, and in any event within 90 days after the end of each Fiscal Year, (i) the consolidated balance sheet of Holdings as at the end of such Fiscal Year and the related consolidated statements of operations, stockholders’ equity and cash flows of Holdings for such Fiscal Year and, commencing after the completion of the second full Fiscal Year ended after the Closing Date, setting forth, in reasonable detail, in comparative form the corresponding figures for the previous Fiscal Year and (ii) with respect to such consolidated financial statements, a report thereon of an independent certified public accountant of recognized national standing (which report shall be unqualified as to “going concern” and scope of audit (except for any such qualification pertaining to the maturity of any of the Term Facility and/or any ABL Facility occurring within 12 months of the date of the relevant audit opinion or the impending breach of any financial covenant), and shall state that such consolidated financial statements fairly present, in all material respects, the consolidated financial position of the Borrower as at the dates indicated and the results of its operations and cash flows for the periods indicated in conformity with GAAP);

 

(c)                                  Compliance Certificate.  Together with each delivery of financial statements of Holdings pursuant to Sections 5.01(a) and (b), (i) a duly executed and completed Compliance Certificate and (ii) (A) a summary of the pro forma adjustments necessary to eliminate the accounts of Unrestricted Subsidiaries (if any) from such financial statements and (B) a list identifying each subsidiary of the Borrower as a Restricted Subsidiary or an Unrestricted Subsidiary as of the date of delivery of such Compliance Certificate or confirming that there is no change in such information since the later of the Closing Date and the date of the last such list;

 

(d)                                 Narrative Report.  Simultaneously with the delivery of each set of consolidated financial statements referred to in Sections 5.01(a) and (b) above, a Narrative Report;

 

(e)                                  Notice of Default.  Promptly upon any Responsible Officer of the Borrower obtaining knowledge of (i) any Default or Event of Default or (ii) the occurrence of any event or change that has caused or evidences, either individually or in the aggregate, a Material Adverse Effect, a reasonably-detailed notice specifying the nature and period of existence of such condition, event or change and what action the Borrower has taken, is taking and proposes to take with respect thereto;

 

(f)                                   Notice of Litigation.  Promptly upon any Responsible Officer of the Borrower obtaining knowledge of (i) the institution of, or threat of, any Adverse Proceeding not previously disclosed in writing by the Borrower to the Lenders, or (ii) any material development in any Adverse Proceeding that, in the case of either clause (i) or (ii), could reasonably be expected to have a Material Adverse Effect, written notice thereof from the Borrower together with such other non-privileged information as may be reasonably available to the Loan Parties to enable the Lenders to evaluate such matters;

 

(g)                                  ERISA.  Promptly upon any Responsible Officer of the Borrower becoming aware that any ERISA Event has occurred or is reasonably expected to occur that, alone or together with any other ERISA Event that has occurred or is reasonably expected to occur, could reasonably be expected to have a Material Adverse Effect, a written notice specifying the nature thereof;

 

(h)                                 Financial Plan.  As soon as available and in any event no later than 90 days after the beginning of each Fiscal Year, an annual budget prepared by management of the Borrower, consisting

 

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of condensed income statements on an annual basis for such Fiscal Year (such budget, the “Financial Plan”);

 

(i)                                     Information Regarding Collateral.  Prompt (and, in any event, within 15 days of the relevant change) written notice of any change (i) in any Loan Party’s legal name, (ii) in any Loan Party’s type of organization or (iii) in any Loan Party’s jurisdiction of organization, in each case to the extent such information is necessary to enable the Administrative Agent to perfect or maintain the perfection and priority of its security interest in the Collateral of the relevant Loan Party;

 

(j)                                    Collateral Verification.  Together with the delivery of each Compliance Certificate provided with the financial statements required to be delivered pursuant to Section 5.01(b), a Perfection Certificate Supplement;

 

(k)                                 Other Notices.  Promptly after furnishing thereof, copies of any notice of default or other material notices, including notices of cash dominion, a weekly reporting triggering event, an inspection triggering event and copies of each borrowing base certificate delivered with respect to any ABL Facility;

 

(l)                                     Certain Reports.  Promptly upon their becoming available and without duplication of any obligations with respect to any such information that is otherwise required to be delivered under the provisions of any Loan Document, copies of all regular and periodic reports and all registration statements (other than on Form S-8 or a similar form) and prospectuses, if any, filed by Holdings, the Borrower or its applicable Parent Company with any securities exchange or with the SEC or any analogous governmental or private regulatory authority with jurisdiction over matters relating to securities; and

 

(m)                             Other Information.  Such other certificates, reports and information (financial or otherwise) as the Administrative Agent may reasonably request from time to time in connection with the financial condition or business of Holdings, the Borrower and its Restricted Subsidiaries; provided, however, that none of Holdings, the Borrower nor any Restricted Subsidiary shall be required to disclose or provide any information (i) that constitutes non-financial trade secrets or non-financial proprietary information of Holdings, the Borrower or any of its subsidiaries or any of their respective customers and/or suppliers, (ii) in respect of which disclosure to the Administrative Agent or any Lender (or any of their respective representatives) is prohibited by applicable Requirements of Law, (iii) that is subject to attorney-client or similar privilege or constitutes attorney work product or (iv) in respect of which Holdings, the Borrower or any Restricted Subsidiary owes confidentiality obligations to any third party (provided such confidentiality obligations were not entered into in contemplation of the requirements of this Section 5.01(m)); provided, further to the extent any certificates, reports or other information are withheld or otherwise not provided in reliance on any of the foregoing clauses (i) through (iv), the Borrower will provide notice to the Administrative Agent that such information is being withheld and the Borrower shall use commercially reasonable efforts to obtain the relevant consents under such obligations of confidentiality to permit the provision of such information.

 

Documents required to be delivered pursuant to 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 the Borrower (or a representative thereof) (x) posts or files such documents or (y) provides a link thereto, in each case, on EDGAR at www.sec.gov (or other successor government website that is freely and readily available to the Administrative Notice) or at the website address listed on Schedule 9.01; provided that, other than with respect to items required to be delivered pursuant to Section 5.01(m) above, the Borrower shall promptly notify (which notice may be by facsimile or electronic mail) the Administrative Agent of the posting of any such documents at the foregoing website addresses and provide to the Administrative

 

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Agent by electronic mail electronic versions (i.e., soft copies) of such documents; (ii) on which such documents are delivered by the Borrower to the Administrative Agent for posting on behalf of the Borrower on IntraLinks/SyndTrak or another relevant website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); or (iii) on which such documents are faxed to the Administrative Agent (or electronically mailed to an address provided by the Administrative Agent).

 

The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arrangers will make available to the Lenders materials and/or information provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and (b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive MNPI with respect to the Borrower and its Restricted Subsidiaries, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to any such Persons’ securities.  The Borrower hereby agrees that it will use commercially reasonable efforts to identify that portion of the Borrower Materials that may be distributed to the Public Lenders and that (w) all such Borrower Materials shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have authorized the Administrative Agent, the Arrangers, the L/C Issuers and the Lenders to treat such Borrower Materials as not containing any MNPI (although it may be sensitive and proprietary) (provided, however, that to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 9.13); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Side Information;” and (z) the Administrative Agent and the Arrangers shall treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Side Information.”  Notwithstanding the foregoing, the Borrower shall not be under any obligation to mark any Borrower Materials “PUBLIC.”  The Borrower agrees that (i) any Loan Documents, (ii) any financial statements delivered pursuant to Section 5.01 and (iii) any Compliance Certificates (excluding any annual budget required to be delivered pursuant to Section 5.01(h) to the extent attached to any Compliance Certificate) delivered pursuant to Section 5.01(c) will, in each case, be deemed to be “public-side” Borrower Materials and may be made available to Public Lenders; provided, however, that to the extent the Borrower believes in good faith that any Compliance Certificate (excluding any annual budget) contains MNPI, and the Borrower so advises the Administrative Agent in writing at the time of delivery of such Compliance Certificate, such Compliance Certificate shall not be deemed to be “public-side” Borrower Materials, but the Borrower shall promptly provide the Administrative Agent with a version of such Compliance Certificate that redacts any portions thereof that contain MNPI so that such redacted version may be “public-side” Borrower Material.

 

Section 5.02                             Existence.  Except as otherwise permitted under Section 6.07 or Section 6.11, Holdings and the Borrower will, and the Borrower will cause each of its Restricted Subsidiaries to, at all times preserve and keep in full force and effect its existence and all rights and franchises, licenses and permits material to its business except, other than with respect to the preservation of the existence of the Borrower, to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect; provided that, neither Holdings nor the Borrower nor any of its Restricted Subsidiaries shall be required to preserve any such existence (other than with respect to the preservation of existence of the Borrower), right, franchise, license or permit if a Responsible Officer of such Person or such Person’s board of directors (or similar governing body) determines that the preservation thereof is no longer desirable in the conduct of the business of such Person, and that the loss thereof is not disadvantageous in any material respect to such Person or to the Lenders.

 

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Section 5.03                             Payment of Taxes.  Each of Holdings and the Borrower will, and the Borrower will cause each of its Restricted Subsidiaries to, pay all Taxes imposed upon it or any of its properties or assets or in respect of any of its income or businesses or franchises before any penalty or fine accrues thereon; provided, however, that no such Tax need be paid if (a) it is being contested in good faith by appropriate proceedings, so long as (i) adequate reserves or other appropriate provisions, as are required in conformity with GAAP, have been made therefor and (ii) in the case of a Tax which has resulted or may result in the creation of a Lien on any of the Collateral, such contest proceedings conclusively operate to stay the sale of any portion of the Collateral to satisfy such Tax or (b) failure to pay or discharge the same could not reasonably be expected to result in a Material Adverse Effect.

 

Section 5.04                             Maintenance of Properties.  The Borrower will, and the Borrower will cause each of its Restricted Subsidiaries to, maintain or cause to be maintained in good repair, working order and condition, ordinary wear and tear excepted, all property (including all IP Rights) reasonably necessary to the normal conduct of business of the Borrower and its Restricted Subsidiaries and from time to time will make or cause to be made all needed and appropriate repairs, renewals and replacements thereof except as expressly permitted by this Agreement or where the failure to maintain such properties or make such repairs, renewals or replacements could not reasonably be expected to have a Material Adverse Effect.  In addition, the Borrower will, and will cause each of its Restricted Subsidiaries to take all reasonable actions to preserve, protect, enforce, renew and keep in full force and effect all IP Rights material to the conduct of each of their respective businesses.

 

Section 5.05                             Insurance.  The Borrower will maintain or cause to be maintained, with financially sound and reputable insurers, such insurance coverage with respect to liabilities, losses or damage in respect of the assets, properties and businesses of the Borrower and its Restricted Subsidiaries as may customarily be carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses, in each case in such amounts (giving effect to self-insurance), with such deductibles, covering such risks and otherwise on such terms and conditions as shall be customary for such Persons, including flood insurance with respect to each Flood Hazard Property, in each case in compliance with the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973 (where applicable).  Each such policy of insurance maintained shall, subject to Section 5.15, (i) name the Administrative Agent on behalf of the Secured Parties as an additional insured thereunder as its interests may appear and (ii) to the extent available from the relevant insurance carrier, in the case of each casualty insurance policy (excluding any business interruption insurance policy, workers’ compensation policy or employee liability policy), contain a loss payable clause or endorsement that names the Administrative Agent, on behalf of the Lenders as the loss payee thereunder and, to the extent available, provide for at least 30 days’ prior written notice (or 10 days’ prior written notice for any cancellation due to non-payment of premiums) to the Administrative Agent of any modification or cancellation of such policy or the failure to pay any premiums thereunder.

 

Section 5.06                             Inspections.  The Borrower will, and the Borrower will cause each of its Restricted Subsidiaries to, permit any authorized representative designated by the Administrative Agent to visit and inspect any of the properties of the Borrower or any of its Restricted Subsidiaries at which the principal financial records and executive officers of the applicable Person are located, to inspect, copy and take extracts from its and their respective financial and accounting records, and to discuss its and their respective affairs, finances and accounts with its and their Responsible Officers (provided that the Borrower (or any of its subsidiaries) may, if it so chooses, be present at or participate in any such discussion), all upon reasonable notice and at reasonable times during normal business hours; provided that, (a) only the Administrative Agent on behalf of the Lenders may exercise the rights of the Administrative Agent and the Lenders under this Section 5.06 and (b) except as expressly set forth in the proviso below during the continuance of an Event of Default, (i) the Administrative Agent shall not exercise such rights more often than one time during any calendar year and (ii) only one such time per

 

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calendar year shall be at the expense of the Borrower; provided, further, that when an Event of Default exists, the Administrative Agent (or any of its representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and upon reasonable advance notice; provided, further, that notwithstanding anything to the contrary herein, neither the Borrower nor any Restricted Subsidiary shall be required to disclose, permit the inspection, examination or making of copies of or taking abstracts from, or discuss any document, information, or other matter (A) that constitutes non-financial trade secrets or non-financial proprietary information of the Borrower and its subsidiaries and/or any of its customers and/or suppliers, (B) in respect of which disclosure to the Administrative Agent or any Lender (or any of their respective representatives or contractors) is prohibited by applicable Requirements of Law, (C) that is subject to attorney-client or similar privilege or constitutes attorney work product or (D) in respect of which Holdings, the  Borrower or any Restricted Subsidiary owes confidentiality obligations to any third party (provided such confidentiality obligations were not entered into in contemplation of the requirements of this Section 5.06); provided, to the extent any documents, information or other matters are withheld or otherwise not made available for inspection in reliance on any of the foregoing clauses (A) through (D), the Borrower will provide notice to the Administrative Agent that such information is being withheld and the Borrower shall use commercially reasonable efforts to obtain the relevant consents under such obligations of confidentiality to permit the provision or inspection of such documents, information or other matters.

 

Section 5.07                             Maintenance of Book and Records.  The Borrower will, and the Borrower will cause each of its Restricted Subsidiaries to, maintain proper books of record and account containing entries of all material financial transactions and matters involving the assets and business of the Borrower and its Restricted Subsidiaries that are full, true and correct in all material respects and permit the preparation of consolidated financial statements in accordance with GAAP.

 

Section 5.08                             Compliance with Laws.  The Borrower will, and the Borrower will cause each of its Restricted Subsidiaries to, comply with the requirements of (i) all applicable Requirements of Law (including all applicable Environmental Laws and ERISA, but excluding OFAC, the USA PATRIOT Act and the FCPA), except to the extent the failure of the Borrower or the relevant Restricted Subsidiary to comply could not reasonably be expected to have a Material Adverse Effect and (ii) OFAC, the USA PATRIOT Act and the FCPA in all material respects.

 

Section 5.09                             Environmental.

 

(a)                                 Environmental Disclosure.  The Borrower will deliver to the Administrative Agent:

 

(i)                         as soon as practicable following receipt thereof, copies of all environmental audits, investigations, analyses and reports of any kind or character, whether prepared by personnel of the Borrower or any of its subsidiaries or by independent consultants, Governmental Authorities or any other Persons, with respect to environmental matters at the Borrower’s or its subsidiaries’ real property or with respect to any Environmental Claims or Environmental Liabilities that, in each case might reasonably be expected to have a Material Adverse Effect;

 

(ii)                      promptly upon the occurrence thereof, written notice describing in reasonable detail (A) any Release that could reasonably be expected to have a Material Adverse Effect, (B) any action taken by the Borrower or any of its subsidiaries or any other Persons of which the Borrower has knowledge in response to (1) any Hazardous Materials Activities, (2) any Environmental Claim or (3) any Environmental Liability that in each case could

 

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reasonably be expected to have a Material Adverse Effect, or (C) discovery by the Borrower or any of its subsidiaries of any occurrence or condition on or at any Facility or any real property adjoining or in the vicinity of any Facility that reasonably could be expected, individually or in the aggregate, to have a Material Adverse Effect;

 

(iii)                   as soon as practicable following the sending or receipt thereof by the Borrower or any of its subsidiaries, a copy of any and all written communications with respect to any of the following that could reasonably be expected to have a Material Adverse Effect: (A) any Environmental Claim, (B) any Release, (C) any Environmental Liability and (D) any request made to the Borrower or any of its subsidiaries for information from any Governmental Authority that suggests such Governmental Authority is investigating whether the Borrower or any of its subsidiaries may be potentially responsible for any Hazardous Materials Activity;

 

(iv)                  prompt written notice describing in reasonable detail (A) any proposed acquisition of stock, assets, or property by the Borrower or any of its subsidiaries that could reasonably be expected to expose the Borrower or any of its subsidiaries to, or result in, Environmental Claims against the Borrower or any of its subsidiaries or any Environmental Liability that could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and (B) any proposed action to be taken by the Borrower or any of its subsidiaries to modify their operations in a manner that could subject the Borrower or any of its subsidiaries to (x) any additional obligations or requirements under any Environmental Law or (y) Environmental Liability, in each case, that could reasonably be expected to have a Material Adverse Effect; and

 

(v)                     with reasonable promptness, such other documents and information as from time to time may be reasonably requested by the Administrative Agent in relation to any matters disclosed pursuant to this Section 5.09(a).

 

(b)                                 Hazardous Materials Activities, Etc.  The Borrower shall promptly take, and shall cause each of its subsidiaries promptly to take, any and all actions necessary to (i) cure any violation of applicable Environmental Laws by the Borrower or its subsidiaries, and address with appropriate corrective or remedial action any Release or threatened Release of Hazardous Materials, in each case, that could reasonably be expected to have a Material Adverse Effect and (ii) make an appropriate response to any Environmental Claim against or Environmental Liability related to the Borrower or any of its subsidiaries and discharge any obligations it may have to any Person thereunder, in each case, where failure to do so could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

Section 5.10                             Designation of Subsidiaries.  The Borrower may at any time after the Closing Date designate (or redesignate) any subsidiary as an Unrestricted Subsidiary or any Unrestricted Subsidiary as a Restricted Subsidiary; provided that (i) immediately before and after such designation, no Event of Default shall have occurred and be continuing (including after giving effect to the reclassification of Investments in, Indebtedness of and Liens on the assets of, the applicable Restricted Subsidiary or Unrestricted Subsidiary), (ii) the Borrower shall be in compliance with Section 6.12 calculated on a Pro Forma Basis as of the last day of the most recently ended Test Period immediately prior to giving effect to the relevant designation, (iii) no subsidiary may be designated as an Unrestricted Subsidiary if it is a “Restricted Subsidiary” for purposes of the ABL Credit Agreement and (iv) as of the date of designation thereof, no Unrestricted Subsidiary shall own any Capital Stock in any Restricted Subsidiary of the Borrower.  The designation of any subsidiary as an Unrestricted Subsidiary shall constitute an Investment by the Borrower therein at the date of designation in an amount equal to the portion of the fair market value of the net assets of such Restricted Subsidiary attributable to the

 

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Borrower’s equity interest therein (whether direct or indirect) as reasonably estimated by the Borrower (and such designation shall only be permitted to the extent such Investment is permitted under Section 6.06).  The designation of any Unrestricted Subsidiary as a Restricted Subsidiary shall constitute the making, incurrence or granting as applicable, at the time of designation of any then-existing Investment, Indebtedness or Lien of such Restricted Subsidiary, as applicable; provided that upon any re-designation of any Unrestricted Subsidiary as a Restricted Subsidiary, the Borrower shall be deemed to continue to have an Investment in the resulting Restricted Subsidiary in an amount (if positive) equal to (a) the Borrower’s “Investment” in such subsidiary as calculated at the time re-designated as a Restricted Subsidiary, less (b) the portion of the fair market value of the net assets of such Restricted Subsidiary attributable to the Borrower’s equity therein (whether direct or indirect) as reasonably estimated by the Borrower at the time of such re-designation.

 

Section 5.11                             Use of Proceeds.  (a) The Borrower shall use the proceeds of the Initial Term Loans made on the Closing Date solely to finance a portion of the Transactions (including the payment of Transaction Costs) and (b) the Borrower shall use the proceeds of any Delayed Draw Term Borrowing solely to consummate Permitted Acquisitions on or after the Closing Date.

 

Section 5.12                             Covenant to Guarantee Obligations and Give Security.

 

(a)                                 Upon (i) the formation or acquisition after the Closing Date of any Restricted Subsidiary that is a Domestic Subsidiary, (ii) the designation of any Unrestricted Subsidiary that is a Domestic Subsidiary as a Restricted Subsidiary, (iii) any Restricted Subsidiary that is a Domestic Subsidiary ceasing to be an Immaterial Subsidiary or (iv) any Restricted Subsidiary that was an Excluded Subsidiary ceasing to be an Excluded Subsidiary, (x) if the event giving rise to the obligation under this Section 5.12(a) occurs during the first three Fiscal Quarters of any Fiscal Year, on or before the date on which financial statements are required to be delivered pursuant to Section 5.01(a) for the Fiscal Quarter in which the relevant formation, acquisition, designation or cessation occurred or (y) if the event giving rise to the obligation under this Section 5.12(a) occurs during the fourth Fiscal Quarter of any Fiscal Year, on or before the date that is 45 days after the end of such Fiscal Quarter (or, in the cases of clauses (x) and (y), such longer period as the Administrative Agent may reasonably agree), the Borrower shall (A) cause such Restricted Subsidiary (other than any Excluded Subsidiary) to comply with the requirements set forth in clause (a) of the definition of “Collateral and Guarantee Requirement”, (B) upon the reasonable request of the Administrative Agent, cause the relevant Restricted Subsidiary to deliver to the Administrative Agent a signed copy of a customary opinion of counsel for such Restricted Subsidiary, addressed to the Administrative Agent and the other relevant Lender and (C) cause any applicable Loan Party to comply with the requirements set forth in clause (b) of the definition of “Collateral and Guarantee Requirement”.

 

(b)                                 Within 90 days after the acquisition by any Loan Party of any Material Real Estate Assets other than any Excluded Asset (or such longer period as the Administrative Agent may reasonably agree), the Borrower shall cause such Loan Party to comply with the requirements set forth in clause (b) of the definition of “Collateral and Guarantee Requirement”; it being understood and agreed that, with respect to any Material Real Estate Asset owned by any Restricted Subsidiary at the time such Restricted Subsidiary is required to become a Loan Party under Section 5.12(a) above, such Material Real Estate Asset shall be deemed to have been acquired by such Restricted Subsidiary on the first day of the time period within which such Restricted Subsidiary is required to become a Loan Party under Section 5.12(a).

 

(c)                                  Notwithstanding anything to the contrary herein or in any other Loan Document, it is understood that:

 

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(i)                         the Administrative Agent may grant extensions of time for the creation and perfection of security interests in, or obtaining of legal opinions or other deliverables with respect to, particular assets or the provision of any Loan Guaranty by any Restricted Subsidiary (in connection with assets acquired, or Restricted Subsidiaries formed or acquired, after the Closing Date), and each Lender hereby consents to any such extension of time,

 

(ii)                      any Lien required to be granted from time to time pursuant to the definition of “Collateral and Guarantee Requirement” shall be subject to the exceptions and limitations set forth in the Collateral Documents,

 

(iii)                   perfection by control shall not be required with respect to assets requiring perfection through control agreements or other control arrangements, including deposit accounts, securities accounts and commodities accounts (other than control of pledged Capital Stock (to the extent certificated) and/or Material Debt Instruments and to the extent required by the ABL Credit Agreement and subject to the Intercreditor Agreement),

 

(iv)                  no Loan Party shall be required to seek any landlord lien waiver, bailee letter, estoppel, warehouseman waiver or other collateral access or similar letter or agreement;

 

(v)                     no Loan Party will be required to (A) take any action outside of the U.S. in order to grant or perfect any security interest in any asset located outside of the U.S., (B) execute any foreign law security agreement, pledge agreement, mortgage, deed or charge or (C) make any foreign intellectual property filing, conduct any foreign intellectual property search or prepare any foreign intellectual property schedule;

 

(vi)                  in no event will the Collateral include any Excluded Asset,

 

(vii)               no action shall be required to perfect any Lien with respect to (1) any vehicle or other asset subject to a certificate of title, (2) Letter-of-Credit Rights, (3) the Capital Stock of any Immaterial Subsidiary and/or (4) the Capital Stock of any Person that is not a subsidiary, which Person, if a subsidiary, would constitute an Immaterial Subsidiary, in each case except to the extent that a security interest therein can be perfected by filing a Form UCC-1 (or similar) financing statement under the UCC,

 

(viii)            no action shall be required to perfect a Lien in any asset in respect of which the perfection of a security interest therein would (1) be prohibited by enforceable anti-assignment provisions set forth in any contract that is permitted or otherwise not prohibited by the terms of this Agreement, (2) violate the terms of any contract relating to such asset that is permitted or otherwise not prohibited by the terms of this Agreement or (3) trigger termination of any contract relating to such asset that is permitted or otherwise not prohibited by the terms of this Agreement pursuant to any “change of control” or similar provision,

 

(ix)                  no Loan Party shall be required to perfect a security interest in any asset to the extent the perfection of a security interest in such asset would (A) be prohibited under any applicable Requirement of Law and/or (B) result in material adverse tax consequences to any Loan Party as reasonably determined by the Borrower and specified in a written notice to the Administrative Agent,

 

(x)                     any joinder or supplement to any Loan Guaranty, any Collateral Document and/or any other Loan Document executed by any Restricted Subsidiary that is required to become a Loan Party pursuant to Section 5.12(a) above may, with the consent of the

 

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Administrative Agent (not to be unreasonably withheld or delayed), include such schedules (or updates to schedules) as may be necessary to qualify any representation or warranty set forth in any Loan Document to the extent necessary to ensure that such representation or warranty is true and correct to the extent required thereby or by the terms of any other Loan Document, and

 

(xi)                  the Administrative Agent shall not require the taking of a Lien on, or require the perfection of any Lien granted in, those assets as to which the cost of obtaining or perfecting such Lien (including any mortgage, stamp, intangibles or other tax or expenses relating to such Lien) is excessive in relation to the benefit to the Lenders of the security afforded thereby as reasonably determined by the Borrower and the Administrative Agent.

 

Section 5.13                   Maintenance of Ratings.  The Borrower shall use commercially reasonable efforts to maintain (i) a public facility rating from each of S&P and Moody’s and (ii) a public corporate credit rating and public corporate family rating (as applicable) from each of S&P and Moody’s; provided that in no event shall the Borrower be required to maintain any specific rating with any such agency.

 

Section 5.14                   Further Assurances.  Promptly upon request of the Administrative Agent and subject to the limitations described in Section 5.12:

 

(a)                                 Holdings and the Borrower will, and will cause each other Loan Party to, execute any and all further documents, financing statements, agreements, instruments, certificates, notices and acknowledgments and take all such further actions (including the filing and recordation of financing statements, fixture filings, Mortgages and/or amendments thereto and other documents), that may be required under any applicable Requirements of Law and which the Administrative Agent may reasonably request to cause to ensure the creation, perfection and priority of the Liens created or intended to be created under the Collateral Documents, all at the expense of the relevant Loan Parties.

 

(b)                                 Holdings and the Borrower will, and will cause each other Loan Party to, promptly (i) correct any material defect or error that may be discovered in the execution, acknowledgment, filing or recordation of any Collateral Document or other document or instrument relating to any Collateral and (ii) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments, in each case under this clause (b), as the Administrative Agent may reasonably request from time to time to create, perfect and maintain the priority of the security interests intended to be granted under the relevant Collateral Documents.

 

Section 5.15                   Post-Closing Obligations.

 

(a)                                 Within 90 days of the Closing Date, with respect to the Real Estate Assets listed on Schedule 1.01(c) (other than Excluded Real Property), the Borrower shall comply with the requirements set forth in clause (b) of the definition of “Collateral and Guarantee Requirement”.

 

(b)                                 No later than the time periods after the Closing Date set forth therein (or such longer period as the Administrative Agent may reasonably agree), the items set forth on Schedule 5.15 shall be satisfied.

 

ARTICLE 6                              NEGATIVE COVENANTS

 

From the Closing Date and until the Termination Date has occurred, each of Holdings (solely with respect to Sections 6.11 and 6.13(i)) and the Borrower covenant and agree with the Lenders that:

 

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Section 6.01                   Indebtedness.  The Borrower shall not, nor shall it permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume or otherwise become or remain liable with respect to any Indebtedness, except:

 

(a)                                 the Secured Obligations (including any Additional Term Loans), so long as, with respect to Derivatives Transactions, that such Secured Obligations are not entered into for speculative purposes;

 

(b)                                 Indebtedness of the Borrower owed to any Restricted Subsidiary and/or of any Restricted Subsidiary or the Borrower owed to Holdings, the Borrower and/or any other Restricted Subsidiary; provided that in the case of any Indebtedness of any Restricted Subsidiary that is not a Loan Party owing to the Borrower or any Subsidiary Guarantor, such Indebtedness shall be permitted as an Investment under Section 6.06; provided, further, that any Indebtedness of any Loan Party to any Restricted Subsidiary that is not a Loan Party must be expressly subordinated to the Obligations of such Loan Party on terms that are reasonably acceptable to the Administrative Agent;

 

(c)                                  unsecured Indebtedness arising from any agreement providing for indemnification, adjustment of purchase price or similar obligations (including seller notes and contingent earn-out obligations) incurred in connection with any Disposition permitted hereunder or any Permitted Acquisition, in an aggregate principal amount not to exceed $30,000,000 outstanding at any time;

 

(d)                                 Indebtedness of the Borrower and/or any Restricted Subsidiary (i) pursuant to tenders, statutory obligations, bids, leases, governmental contracts, trade contracts, surety, stay, customs, appeal, performance and/or return of money bonds or other similar obligations incurred in the ordinary course of business and (ii) in respect of any letters of credit, bank guaranties, surety bonds, performance bonds or similar instruments to support any of the foregoing items;

 

(e)                                  Indebtedness of the Borrower and/or any Restricted Subsidiary in respect of commercial credit cards, stored value cards, purchasing cards, treasury management services, netting services, overdraft protections, check drawing services, automated payment services (including depository, overdraft, controlled disbursement, ACH transactions, return items and interstate depository network services), employee credit card programs, cash pooling services and any arrangements or services similar to any of the foregoing and/or otherwise in connection with Cash management and Deposit Accounts, including Banking Services Obligations and incentive, supplier finance or similar programs;

 

(f)                                   (i) Guarantees by the Borrower or any of its Restricted Subsidiaries of the obligations of suppliers, customers and licensees in the ordinary course of business, (ii) Indebtedness incurred in the ordinary course of business in respect of obligations of the Borrower and/or any Restricted Subsidiary to pay the deferred purchase price of goods or services or progress payments in connection with such goods and services and (iii) Indebtedness in respect of letters of credit, bankers’ acceptances, bank guaranties or similar instruments supporting trade payables, warehouse receipts or similar facilities entered into in the ordinary course of business;

 

(g)                                  Guarantees by the Borrower and/or any Restricted Subsidiary of Indebtedness or other obligations of the Borrower, any Restricted Subsidiary with respect to Indebtedness otherwise permitted to be incurred pursuant to this Section 6.01 or other obligations not prohibited by this Agreement; provided that in the case of any Guarantee by any Loan Party of the obligations of any non-Loan Party, the related Investment is permitted under Section 6.06;

 

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(h)                                 Indebtedness of the Borrower and/or any Restricted Subsidiary existing, or pursuant to commitments existing, on the Closing Date and described on Schedule 6.01 and intercompany Indebtedness outstanding on the Closing Date;

 

(i)                                     Indebtedness of Restricted Subsidiaries that are not Loan Parties; provided that the aggregate principal amount at any time outstanding of such Non-Loan Party Indebtedness shall not exceed the Non-Loan Party Cap;

 

(j)                                    Indebtedness of the Borrower and/or any Restricted Subsidiary with respect to Capital Leases and purchase money Indebtedness incurred prior to or within 270 days of the acquisition, lease, completion of construction, repair of, replacement, improvement to or installation of the assets acquired, leased, constructed, repaired, replaced, improved or installed in connection with the incurrence of such Indebtedness in an aggregate outstanding principal amount not to exceed fifty percent (50%) of the Consolidated Adjusted EBITDA for the four Fiscal Quarter period ended immediately prior to the incurrence of such Indebtedness;

 

(k)                                 Indebtedness of any Person that becomes a Restricted Subsidiary or Indebtedness assumed in connection with an acquisition permitted hereunder after the Closing Date; provided that (i) such Indebtedness (A) existed at the time such Person became a Restricted Subsidiary or the assets subject to such Indebtedness were acquired and (B) was not created or incurred in anticipation thereof, (ii)  no Event of Default exists or would result from such acquisition, (iii) the Borrower is in compliance with Section 6.12(a), calculated on a Pro Forma Basis as of the last day of the most recently ended Test Period and (iv) after giving effect to the assumption thereof, the outstanding principal amount of Non-Loan Party Indebtedness does not exceed the Non-Loan Party Cap;

 

(l)                                     Indebtedness consisting of promissory notes issued by the Borrower or any Restricted Subsidiary to any stockholder of any Parent Company or any current or former director, officer, employee, member of management, manager or consultant of any Parent Company, the Borrower or any subsidiary (or their respective Immediate Family Members) to finance the purchase or redemption of Capital Stock of any Parent Company permitted by Section 6.04(a);

 

(m)                             the Borrower and any of its Restricted Subsidiaries may become and remain liable for any Indebtedness refinancing, refunding or replacing any Indebtedness permitted under this clause (m) and clauses (a), (h), (i), (j), (k), (n), (o), (q), (s) and (w) of this Section 6.01 (in any case, including any refinancing Indebtedness incurred in respect thereof, “Refinancing Indebtedness”) and any subsequent Refinancing Indebtedness in respect thereof; provided that any refinancing, refunding or replacement of Indebtedness permitted under Section 6.01(i), (j), (n), (o), (s) or (w) shall continue to constitute utilization of the applicable basket; provided further that:

 

(i)                         the principal amount of such Indebtedness does not exceed the principal amount of the Indebtedness being refinanced, refunded or replaced, except by (A) an amount equal to unpaid accrued interest and premiums (including tender premiums) thereon plus underwriting discounts, other reasonable and customary fees, commissions and expenses (including upfront fees, original issue discount or initial yield payments) incurred in connection with the relevant refinancing, refunding or replacement and (B) additional amounts permitted to be incurred pursuant to this Section 6.01 (so long as such Indebtedness is permitted to be incurred pursuant to a subsection of this Section 6.01, other than this Section 6.01(m), and, to the extent secured by Liens, such Liens are permitted to secure such Indebtedness pursuant to a subsection of Section 6.02, other than Section 6.02(k) and is deemed to constitute a utilization of the relevant basket or exception pursuant to which such additional amount is permitted),

 

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(ii)                      other than in the case of Refinancing Indebtedness with respect to clauses (h), (j), (k), and/or (o) of this Section 6.01 (A) such Indebtedness has a final maturity equal to or later than (and, in the case of revolving Indebtedness, does not require mandatory commitment reductions, if any, prior to) the final maturity of the Indebtedness being refinanced, refunded or replaced and (B) other than with respect to revolving Indebtedness, a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of the Indebtedness being refinanced, refunded or replaced,

 

(iii)                   the terms of any Refinancing Indebtedness (excluding pricing, fees, premiums, rate floors, optional prepayment or redemption terms (and, if applicable, subordination terms) and, with respect to Refinancing Indebtedness incurred in respect of Indebtedness permitted under clause (a) above, security), are not, taken as a whole (as reasonably determined by the Borrower), more favorable to the lenders providing such Indebtedness than those applicable to the Indebtedness being refinanced, refunded or replaced (other than any covenants or any other provisions applicable only to periods after the Latest Maturity Date as of such date or any covenants or provisions which are then-current market terms for the applicable type of Indebtedness),

 

(iv)                  except in the case of Refinancing Indebtedness incurred in respect of Indebtedness permitted under clause (a) of this Section 6.01, (A) such Indebtedness, if secured, is secured only by Permitted Liens at the time of such refinancing, refunding or replacement (it being understood that such secured Indebtedness may go from being secured to being unsecured), and, in the case of Refinancing Indebtedness incurred in respect of Indebtedness permitted under clause (n) of this Section 6.01, shall be secured solely by Excluded Real Property (B) such Indebtedness is incurred by the obligor or obligors in respect of the Indebtedness being refinanced, refunded or replaced, except to the extent otherwise permitted pursuant to Sections 6.01, 6.02 and 6.06 and (C) if the Indebtedness being refinanced, refunded or replaced was originally contractually subordinated to the Obligations in right of payment (or the Liens securing such Indebtedness were originally contractually subordinated to the Liens on the Collateral securing the Initial Term Loans), such Indebtedness is contractually subordinated to the Obligations in right of payment (or the Liens securing such Indebtedness are subordinated to the Liens on the Collateral securing the Initial Term Loans) on terms not materially less favorable (as reasonably determined by the Borrower), taken as a whole, to the Lenders than those applicable to the Indebtedness (or Liens, as applicable) being refinanced, refunded or replaced, taken as a whole,

 

(v)                     in the case of Refinancing Indebtedness incurred in respect of Indebtedness permitted under clause (a) of this Section 6.01, (A) such Indebtedness is pari passu or junior in right of payment and secured by the Collateral on a pari passu or junior basis with respect to the remaining Obligations hereunder, or is unsecured; provided that any such Indebtedness that is pari passu or junior with respect to the Collateral shall be subject to an Acceptable Intercreditor Agreement, (B) if the Indebtedness being refinanced, refunded or replaced is secured, it is not secured by any assets other than the Collateral, (C) if the Indebtedness being refinanced, refunded or replaced is Guaranteed, it shall not be Guaranteed by any Person other than one or more Loan Parties and (D) such Indebtedness is incurred under (and pursuant to) documentation other than this Agreement; it being understood and agreed that any such Indebtedness may not participate on a greater than pro rata basis in any voluntary or mandatory prepayment in respect of the Initial Term Loans (and any Additional Term Loans then subject to ratable repayment requirements); and

 

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(vi)                  intercompany Indebtedness under Section 6.01(h) may only be refinanced, refunded or replaced with other intercompany Indebtedness;

 

(n)                                 Indebtedness secured solely by a lien on any Excluded Real Property;

 

(o)                                 Indebtedness of the Borrower and/or any Restricted Subsidiary in an aggregate outstanding principal amount not to exceed $25,000,000;

 

(p)                                 to the extent constituting Indebtedness, obligations arising under the Acquisition Agreement;

 

(q)                                 additional Indebtedness of the Borrower and/or any Restricted Subsidiary so long as, after giving effect thereto, including the application of the proceeds thereof (but without “netting” cash proceeds of the applicable Indebtedness), (i) (A) if such Indebtedness is secured by a Lien on the Collateral that is pari passu with the Lien on the Collateral securing the Secured Obligations, the First Lien Leverage Ratio does not exceed 3.30:1.00, (2) if such Indebtedness is secured by a Lien on the Collateral that is junior to the Lien on the Collateral securing the Secured Obligations, the Secured Leverage Ratio does not exceed 3.30:1.00 and (3) the Total Leverage Ratio does not exceed 3.30:1.00, (ii) any such Indebtedness that is subordinated to the Obligations in right of payment or collateral shall be subject to an Acceptable Intercreditor Agreement, (iii) the Weighted Average Life to Maturity applicable to such Indebtedness (other than customary bridge loans with a maturity date of no longer than one year; provided that any Indebtedness exchanged for such bridge loans shall be subject to the requirements of this clause (iii)) is no shorter than the Weighted Average Life to Maturity of the then-existing Term Loans, (iv) the final maturity date with respect to such Indebtedness (other than customary bridge loans with a maturity date of no longer than one year; provided that any Indebtedness exchanged for such bridge loans shall be subject to the requirements of this clause (iv)) is no earlier than the Latest Term Loan Maturity Date on the date of the issuance or incurrence, as applicable, thereof and (v) in the case of any such Indebtedness in the form of term loans (other than customary bridge loans) that are pari passu with the Initial Term Loans in right of payment and with respect to security, the Effective Yield applicable thereto will not be more than 0.50% per annum higher than the Effective Yield in respect of the Initial Term Loans unless the Effective Yield with respect to the Initial Term Loans is adjusted to be equal to the Effective Yield applicable to such Indebtedness, minus, 0.50% per annum; provided, however, that the aggregate outstanding principal amount of Non-Loan Party Indebtedness shall not, at any time, exceed the Non-Loan Party Cap;

 

(r)                                    Indebtedness of the Borrower and/or any Restricted Subsidiary incurred in respect of any ABL Facility in an aggregate outstanding principal or committed amount that does not exceed $100,000,000;

 

(s)                                   Incremental Equivalent Debt;

 

(t)                                    Indebtedness (including obligations in respect of letters of credit, bank guaranties, surety bonds, performance bonds or similar instruments with respect to such Indebtedness) incurred by the Borrower and/or any Restricted Subsidiary in respect of workers compensation claims, unemployment insurance (including premiums related thereto), other types of social security, pension obligations, vacation pay, health, disability or other employee benefits;

 

(u)                                 Indebtedness of the Borrower and/or any Restricted Subsidiary representing (i) deferred compensation to current or former directors, officers, employees, members of management, managers, and consultants of Holdings, the Borrower and/or any Restricted Subsidiary in the ordinary

 

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course of business and (ii) deferred compensation or other similar arrangements in connection with the Transactions, any Permitted Acquisition or any other Investment permitted hereby;

 

(v)                                 Indebtedness of the Borrower and/or any Restricted Subsidiary to the extent supported by any Letter of Credit (as defined in the ABL Credit Agreement or any equivalent term under any ABL Facility);

 

(w)                               Indebtedness incurred by any Foreign Subsidiary that is either unsecured or is secured solely by the assets directly owned by such Foreign Subsidiary, in an aggregate outstanding principal amount not to exceed $15,000,000 for all Foreign Subsidiaries; and

 

(x)                                 without duplication of any other Indebtedness, all premiums (if any), interest (including post-petition interest and payment in kind interest), accretion or amortization of original issue discount, fees, expenses and charges with respect to Indebtedness of the Borrower and/or any Restricted Subsidiary permitted under this Section 6.01.

 

Section 6.02                   Liens.  The Borrower shall not, nor shall it permit any of its Restricted Subsidiaries to, create, incur, assume or permit or suffer to exist any Lien on or with respect to any property of any kind owned by it, whether now owned or hereafter acquired, or any income or profits therefrom, except:

 

(a)                                 Liens securing the Secured Obligations created pursuant to the Loan Documents;

 

(b)                                 Liens for Taxes which are (i) not then due, (ii) if due, not at such time required to be paid pursuant to Section 5.03 or (iii) being contested in accordance with Section 5.03;

 

(c)                                  statutory Liens (and rights of set-off) of landlords, banks, carriers, warehousemen, mechanics, repairmen, workmen and materialmen, and other Liens imposed by applicable Requirements of Law, in each case incurred in the ordinary course of business (i) for amounts not yet overdue by more than 30 days, (ii) for amounts that are overdue by more than 30 days and that are being contested in good faith by appropriate proceedings, so long as any reserves or other appropriate provisions required by GAAP have been made for any such contested amounts or (iii) with respect to which the failure to make payment could not reasonably be expected to have a Material Adverse Effect;

 

(d)                                 Liens incurred (i) in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security laws and regulations, (ii) in the ordinary course of business to secure the performance of tenders, statutory obligations, surety, stay, customs and appeal bonds, bids, leases, government contracts, trade contracts, performance and return-of-money bonds and other similar obligations (exclusive of obligations for the payment of borrowed money), (iii) pursuant to pledges and deposits of Cash or Cash Equivalents in the ordinary course of business securing (x) any liability for reimbursement or indemnification obligations of insurance carriers providing property, casualty, liability or other insurance to Holdings, the Borrower and its subsidiaries or (y) leases or licenses of property otherwise permitted by this Agreement and (iv) to secure obligations in respect of letters of credit, bank guaranties, surety bonds, performance bonds or similar instruments posted with respect to the items described in clauses (i) through (iii) above;

 

(e)                                  Liens consisting of easements, rights-of-way, restrictions, encroachments, and other minor defects or irregularities in title, in each case which do not, in the aggregate, materially interfere with the ordinary conduct of the business of the Borrower and its Restricted Subsidiaries, taken as a whole, or the use of the affected property for its intended purpose;

 

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(f)                                   Liens consisting of any (i) interest or title of a lessor or sub-lessor under any lease of real estate permitted hereunder, (ii) landlord lien permitted by the terms of any lease, (iii) restriction or encumbrance to which the interest or title of such lessor or sub-lessor may be subject or (iv) subordination of the interest of the lessee or sub-lessee under such lease to any restriction or encumbrance referred to in the preceding clause (iii);

 

(g)                                  Liens solely on any Cash earnest money deposits made by the Borrower and/or any of its Restricted Subsidiaries in connection with any letter of intent or purchase agreement with respect to any Investment permitted hereunder;

 

(h)                                 purported Liens evidenced by the filing of UCC financing statements relating solely to operating leases entered into in the ordinary course of business;

 

(i)                                     Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods;

 

(j)                                    Liens in connection with any zoning, building or similar Requirement of Law or right reserved to or vested in any Governmental Authority to control or regulate the use of any or dimensions of real property or the structure thereon, including Liens in connection with any condemnation or eminent domain proceeding or compulsory purchase order;

 

(k)                                 Liens securing Indebtedness permitted pursuant to Section 6.01(m) (solely with respect to the permitted refinancing of (x) Indebtedness permitted pursuant to Sections 6.01(a), (j), (k), (n), (s) and (w) and (y) Indebtedness that is secured in reliance on Section 6.02(s) (without duplication of any amount outstanding thereunder, and which shall continue to constitute utilization of the basket set forth therein)); provided that (i) no such Lien extends to any asset not covered by the Lien securing the Indebtedness that is being refinanced and (ii) if the Lien securing the Indebtedness being refinanced was subject to intercreditor arrangements, then (A) the Lien securing any refinancing Indebtedness in respect thereof shall be subject to intercreditor arrangements that are not materially less favorable to the Secured Parties, taken as a whole, than the intercreditor arrangements governing the Lien securing the Indebtedness that is refinanced or (B) the intercreditor arrangements governing the Lien securing the relevant refinancing Indebtedness shall be set forth in an Acceptable Intercreditor Agreement;

 

(l)                                     Liens described on Schedule 6.02 and any modification, replacement, refinancing, renewal or extension thereof; provided that (i) no such Lien extends to any additional property other than (A) after-acquired property that is affixed or incorporated into the property covered by such Lien and (B) proceeds and products thereof, accessions thereto and improvements thereon (it being understood that individual financings of the type permitted under Section 6.01(j) provided by any lender may be cross-collateralized to other financings of such type provided by such lender or its affiliates) and (ii) such modification, replacement, refinancing, renewal or extension of the obligations secured or benefited by such Liens, if constituting Indebtedness, is permitted by Section 6.01;

 

(m)                             Liens securing Indebtedness permitted pursuant to Section 6.01(j); provided that any such Lien shall encumber only the asset acquired with the proceeds of such Indebtedness and proceeds and products thereof, accessions thereto and improvements thereon (it being understood that individual financings of the type permitted under Section 6.01(j) provided by any lender may be cross-collateralized to other financings of such type provided by such lender or its affiliates);

 

(n)                                 Liens securing Indebtedness permitted pursuant to Section 6.01(k) on the relevant acquired assets or on the Capital Stock and assets of the relevant newly acquired Restricted Subsidiary; provided that no such Lien (x) extends to or covers any other assets (other than the proceeds

 

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or products thereof, accessions or additions thereto and improvements thereon) or (y) was created in contemplation of the applicable acquisition of assets or Capital Stock;

 

(o)                                 (i) Liens that are contractual rights of setoff or netting relating to (A) the establishment of depositary relations with banks not granted in connection with the issuance of Indebtedness, (B) pooled deposit or sweep accounts of the Borrower and/or any Restricted Subsidiary to permit satisfaction of overdraft or similar obligations incurred in the ordinary course of business of the Borrower and/or any Restricted Subsidiary, (C) purchase orders and other agreements entered into with customers of the Borrower and/or any Restricted Subsidiary in the ordinary course of business and (D) commodity trading or other brokerage accounts incurred in the ordinary course of business, (ii) Liens encumbering reasonable customary initial deposits and margin deposits, (iii) bankers Liens and rights and remedies as to Deposit Accounts and (iv) Liens on the proceeds of any Indebtedness incurred in connection with any transaction permitted hereunder, which proceeds have been deposited into an escrow account on customary terms to secure such Indebtedness pending the application of such proceeds to finance such transaction;

 

(p)                                 Liens securing obligations (other than obligations representing Indebtedness for borrowed money) under operating, reciprocal easement or similar agreements entered into in the ordinary course of business of the Borrower and/or its Restricted Subsidiaries;

 

(q)                                 [Reserved];

 

(r)                                    Liens securing Indebtedness incurred pursuant to Sections 6.01(r) and (s), in each case, subject to an Acceptable Intercreditor Agreement;

 

(s)                                   other Liens on assets securing Indebtedness or other obligations in an aggregate principal amount at any time outstanding not to exceed $10,000,000;

 

(t)                                    Liens on assets securing judgments, awards, attachments and/or decrees and notices of lis pendens and associated rights relating to litigation being contested in good faith not constituting an Event of Default under Section 7.01(h);

 

(u)                                 leases, licenses, subleases or sublicenses granted to others in the ordinary course of business which do not secure any Indebtedness;

 

(v)                                 Liens on Securities that are the subject of repurchase agreements constituting Investments permitted under Section 6.06 arising out of such repurchase transaction;

 

(w)                               Liens securing obligations in respect letters of credit, bank guaranties, surety bonds, performance bonds or similar instruments permitted under Sections 6.01(d), (f), and (t);

 

(x)                                 Liens arising (i) out of conditional sale, title retention, consignment or similar arrangements for the sale of any asset in the ordinary course of business and permitted by this Agreement or (ii) by operation of law under Article 2 of the UCC (or similar Requirements of Law of any jurisdiction);

 

(y)                                 Liens (i) in favor of any Loan Party and/or (ii) granted by any non-Loan Party in favor of any Restricted Subsidiary that is not a Loan Party, in the case of each of clauses (i) and (ii), securing intercompany Indebtedness permitted under Section 6.01;

 

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(z)           Liens on insurance policies and the proceeds thereof securing the financing of the premiums with respect thereto;

 

(aa)         Liens on specific items of inventory or other goods and the proceeds thereof securing the relevant Person’s obligations in respect of documentary letters of credit or banker’s acceptances issued or created for the account of such Person to facilitate the purchase, shipment or storage of such inventory or goods;

 

(bb)         Liens that secure Indebtedness permitted under Section 6.01(w);

 

(cc)         (i) Liens on Capital Stock of joint ventures or Unrestricted Subsidiaries securing capital contributions to, or obligations of, such Persons and (ii) customary rights of first refusal and tag, drag and similar rights in joint venture agreements and agreements with respect to non-Wholly-Owned Subsidiaries;

 

(dd)         Liens on cash, Cash Equivalents or other property arising in connection with the defeasance, discharge or redemption of Indebtedness;

 

(ee)         Liens securing Indebtedness incurred in reliance on, and subject to the provisions set forth in, Section 6.01(q); provided, that any Lien that is granted in reliance on this clause (ee) on the Collateral and is pari passu or junior to the Lien securing the Secured Obligations shall be subject to an Acceptable Intercreditor Agreement; and

 

(ff)          Liens on Excluded Real Property securing Indebtedness permitted under Section 6.01(n).

 

Section 6.03          No Further Negative Pledges; Burdensome Agreements.  The Borrower shall not, nor shall it permit any of its Restricted Subsidiaries to enter into any agreement prohibiting the creation or assumption of any Lien upon its properties, whether now owned or hereafter acquired, for the benefit of the Secured Parties with respect to the Obligations, except with respect to:

 

(a)           specific property to be sold pursuant to any Disposition permitted by Section 6.07;

 

(b)           restrictions contained in any agreement with respect to Indebtedness permitted by Section 6.01 that is secured by a Permitted Lien, but only if such restrictions apply only to the Person or Persons obligated under such Indebtedness and its or their Restricted Subsidiaries or the property or assets securing such Indebtedness;

 

(c)           restrictions contained in the documentation governing Indebtedness permitted by clauses (j), (n), (o), (q), (r), (s) and/or (w) of Section 6.01 (and clause (m) of Section 6.01 to the extent relating to any refinancing, refunding or replacement of Indebtedness incurred in reliance on clauses (a), (j), (n), (o), (q), (r), (s) and/or (w)) of Section 6.01);

 

(d)           restrictions by reason of customary provisions restricting assignments, subletting or other transfers (including the granting of any Lien) contained in leases, subleases, licenses, sublicenses and other agreements entered into in the ordinary course of business (provided that such restrictions are limited to the relevant leases, subleases, licenses, sublicenses or other agreements and/or the property or assets secured by such Liens or the property or assets subject to such leases, subleases, licenses, sublicenses or other agreements, as the case may be);

 

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(e)           Permitted Liens and restrictions in the agreements relating thereto that limit the right of the Borrower and/or any Restricted Subsidiary to Dispose of, or encumber the assets subject to such Liens;

 

(f)            provisions limiting the Disposition or distribution of assets or property in joint venture agreements, sale-leaseback agreements, stock sale agreements and other similar agreements, which limitation is applicable only to the assets that are the subject of such agreements (or the Persons the Capital Stock of which is the subject of such agreement);

 

(g)           any encumbrance or restriction assumed in connection with an acquisition of the property or Capital Stock of any Person, so long as such encumbrance or restriction relates solely to the property so acquired (or to the Person or Persons (and its or their subsidiaries) bound thereby) and was not created in connection with or in anticipation of such acquisition;

 

(h)           restrictions imposed by customary provisions in partnership agreements, limited liability company organizational governance documents, joint venture agreements and other similar agreements that restrict the transfer of the assets of, or ownership interests in, the relevant partnership, limited liability company, joint venture or any similar Person;

 

(i)            restrictions on Cash or other deposits imposed by Persons under contracts entered into in the ordinary course of business or for whose benefit such Cash or other deposits exist;

 

(j)            restrictions set forth in documents which exist on the Closing Date;

 

(k)           restrictions contained in documents governing Indebtedness permitted hereunder of any Restricted Subsidiary that is not a Loan Party;

 

(l)            restrictions set forth in any Loan Document, any Hedge Agreement and/or any agreement relating to any Banking Service Obligation; and

 

(m)          other restrictions or encumbrances imposed by any amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing of the contracts, instruments or obligations referred to in clauses (a) through (l) above; provided that no such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing is, in the good faith judgment of the Borrower, may be more restrictive with respect to such encumbrances and other restrictions, taken as a whole, than those in effect prior to the relevant amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing.

 

Section 6.04          Restricted Payments; Restricted Debt Payments.

 

(a)           The Borrower shall not pay or make, directly or indirectly, any Restricted Payment, except that:

 

(i)        the Borrower may make Restricted Payments to the extent necessary to permit any Parent Company:

 

(A)          to (i) pay general administrative and operating costs and expenses (including corporate overhead, legal or similar expenses and customary salary, bonus and other benefits payable to directors, officers, employees, members of management, managers, employees and/or consultants of any Parent Company (and/or any Immediate Family Member of any of the foregoing)) and franchise fees, franchise

 

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Taxes and similar fees, Taxes and expenses required to maintain the organizational existence of such Parent Company, in each case, which are reasonable and customary and incurred in the ordinary course of business, plus any reasonable and customary indemnification claims made by directors, officers, members of management, managers, employees or consultants of any Parent Company, in each case, to the extent attributable to the ownership or operations of Holdings (but excluding, for the avoidance of doubt, the portion of any such amount, if any, that is attributable to the ownership or operations of any subsidiary of Holdings other than the Borrower and/or its subsidiaries), the Borrower and its Restricted Subsidiaries; provided, that Restricted Payments made pursuant to this Section 6.04(a)(i)(A)(i) shall not exceed $5,000,000 in any Fiscal Year and (ii) pay costs and expenses associated with the compliance by Holdings of the requirements and/or regulations applicable to public companies, including, without limitation, the “Sarbanes-Oxley” legislation and related regulatory rules and regulations promulgated thereunder;

 

(B)          to pay Taxes due and payable by such Parent Company to any taxing authority and that are attributable to the income or operation of the Borrower or its Restricted Subsidiaries, including any consolidated, combined or similar income tax liabilities attributable to taxable income of Borrower and its Restricted Subsidiaries;

 

(C)          to pay audit and other accounting and reporting expenses of such Parent Company to the extent attributable to Holdings (but excluding, for the avoidance of doubt, the portion of any such expenses, if any, attributable to the ownership or operations of any subsidiary of Holdings other than the Borrower and/or its subsidiaries), the Borrower and its Restricted Subsidiaries;

 

(D)          for the payment of insurance premiums to the extent attributable to Holdings (but excluding, for the avoidance of doubt, the portion of any such premiums, if any, attributable to the ownership or operations of any subsidiary of Holdings other than the Borrower and/or its subsidiaries), the Borrower and its Restricted Subsidiaries; and

 

(E)           to finance any Investment permitted under Section 6.06 (provided that (x) any Restricted Payment under this clause (a)(i)(E) shall be made substantially concurrently with the closing of such Investment and (y) the relevant Parent Company shall, promptly following the closing thereof, cause (I) all property acquired to be contributed to the Borrower or one or more of its Restricted Subsidiaries, or (II) the merger, consolidation or amalgamation of the Person formed or acquired into the Borrower or one or more of its Restricted Subsidiaries, in order to consummate such Investment in compliance with the applicable requirements of Section 6.06 as if undertaken as a direct Investment by the Borrower or the relevant Restricted Subsidiary).

 

(ii)       the Borrower may (or may make Restricted Payments to allow any Parent Company to) repurchase, redeem or otherwise acquire or retire for value the Capital Stock of any Parent Company or any subsidiary held by any future, present or former employee, director, member of management, officer or consultant (or any Affiliate or Immediate Family Member thereof) of any Parent Company, the Borrower or any Restricted Subsidiary of the Borrower:

 

(A)          with Cash and Cash Equivalents (and including, to the extent constituting a Restricted Payment, amounts paid in respect of promissory notes issued to evidence any obligation to repurchase, redeem, retire or otherwise acquire or retire for

 

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value the Capital Stock of any Parent Company or any Restricted Subsidiary held by any future, present or former employee, director, member of management, officer or consultant (or any Affiliate or Immediate Family Member thereof) of any Parent Company, the Borrower or any subsidiary of the Borrower) in an amount not to exceed $10,000,000 in any Fiscal Year, which, if not used in such Fiscal Year, may be carried forward to the next succeeding Fiscal Year;

 

(B)          with the proceeds of any sale or issuance of the Capital Stock of the Borrower or any Parent Company (to the extent such proceeds are contributed in respect of Qualified Capital Stock to the Borrower or any Restricted Subsidiary), but only to the extent such proceeds have not otherwise been applied to increase the Available Amount or Available Excluded Contribution Amount, to make Restricted Payments or Restricted Debt Payments hereunder, or as all or a portion of any Cure Amount; or

 

(C)          with the net proceeds of any key-man life insurance policies;

 

(iii)      the Borrower may make additional Restricted Payments in an amount not to exceed (A) the portion, if any, of the Available Amount on such date that the Borrower elects to apply to this clause (iii)(A) and/or (B) the portion, if any, of the Available Excluded Contribution Amount on such date that the Borrower elects to apply to this clause (iii)(B);

 

(iv)      the Borrower may make Restricted Payments (i) to any Parent Company to enable such Parent Company to make Cash payments in lieu of the issuance of fractional shares in connection with the exercise of warrants, options or other securities convertible into or exchangeable for Capital Stock of such Parent Company and (ii) consisting of (A) payments made or expected to be made in respect of withholding or similar Taxes payable by any future, present or former officers, directors, employees, members of management, managers or consultants of the Borrower, any Restricted Subsidiary or any Parent Company or any of their respective Immediate Family Members and/or (B) repurchases of Capital Stock in consideration of the payments described in sub-clause (A) above;

 

(v)       the Borrower may make Restricted Payments to repurchase (or make Restricted Payments to any Parent Company to enable it to repurchase) Capital Stock upon the exercise of warrants, options or other securities convertible into or exchangeable for Capital Stock if such Capital Stock represents all or a portion of the exercise price of such warrants, options or other securities convertible into or exchangeable for Capital Stock as part of a “cashless” exercise;

 

(vi)      the Borrower may make Restricted Payments, the proceeds of which are applied on the Closing Date, solely to effect the consummation of the Transactions; and

 

(vii)     to the extent constituting a Restricted Payment, the Borrower may consummate any transaction permitted by Section 6.06 (other than Sections 6.06(i) and (s)), Section 6.07 (other than Section 6.07(g)) and Section 6.08 (other than Section 6.08(d)).

 

(b)           The Borrower shall not, nor shall the Borrower permit any Restricted Subsidiary to, make any payment in Cash on or in respect of principal of or interest on any (x) Junior Lien Indebtedness, (y) Junior Indebtedness and (z) unsecured Indebtedness (the Indebtedness described in clauses (x), (y) and (z), the “Restricted Debt”), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any Restricted Debt prior to the scheduled maturity (collectively, “Restricted Debt Payments”), except:

 

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(i)        any purchase, defeasance, redemption, repurchase, repayment or other acquisition or retirement thereof made by exchange for, or out of the proceeds of, Refinancing Indebtedness permitted to be incurred pursuant to Section 6.01(m);

 

(ii)       payments of regularly scheduled interest and payments of fees, expenses and indemnification obligations as and when due (other than payments with respect to Junior Indebtedness that are prohibited by the subordination provisions thereof);

 

(iii)      (A) Restricted Debt Payments in exchange for, or with proceeds of any issuance of, Qualified Capital Stock of the Borrower and/or any capital contribution in respect of Qualified Capital Stock of the Borrower, but only to the extent such proceeds have not otherwise been applied to increase the Available Amount or Available Excluded Contribution Amount, to make Restricted Payments or Restricted Debt Payments hereunder, or as all or a portion of any Cure Amount, (B) Restricted Debt Payments as a result of the conversion of all or any portion of any Restricted Debt into Qualified Capital Stock of the Borrower or any Parent Company and (C) to the extent constituting a Restricted Debt Payment, payment-in-kind interest with respect to any Restricted Debt that is permitted under Section 6.01; and

 

(iv)      Restricted Debt Payments in an aggregate amount not to exceed (A) the portion, if any, of the Available Amount on such date that the Borrower elects to apply to this clause (iv)(A) and (B) the portion, if any, of the Available Excluded Contribution Amount on such date that the Borrower elects to apply to this clause (iv)(B).

 

Section 6.05          Restrictions on Subsidiary Distributions.  Except as provided herein or in any other Loan Document, any ABL Facility, any document with respect to any Incremental Equivalent Debt, and/or in agreements with respect to refinancings, renewals or replacements of such Indebtedness that are permitted by Section 6.01, the Borrower shall not, nor shall it permit any of its Restricted Subsidiaries to, enter into or cause to exist any agreement restricting the payment of dividends or other distributions or the making of cash loans or advances by any Restricted Subsidiary to any Loan Party, except restrictions:

 

(a)           set forth in any agreement evidencing (i) Indebtedness of a Restricted Subsidiary that is not a Loan Party permitted by Section 6.01, (ii) Indebtedness permitted by Section 6.01 that is secured by a Permitted Lien if the relevant restriction applies only to the Person obligated under such Indebtedness and its Restricted Subsidiaries or the property or assets intended to secure such Indebtedness and (iii) Indebtedness permitted pursuant to clauses (j), (m) (as it relates to Indebtedness in respect of clauses (a), (j), (o), (p), (q), (s) and/or (w) of Section 6.01) (o), (q), (s) and/or (w) of Section 6.01;

 

(b)           arising under customary provisions restricting assignments, subletting or other transfers (including the granting of any Lien) contained in leases, subleases, licenses, sublicenses, joint venture agreements and similar agreements entered into in the ordinary course of business;

 

(c)           that are or were created by virtue of any Lien granted upon, transfer of, agreement to transfer or grant of, any option or right with respect to any assets or Capital Stock not otherwise prohibited under this Agreement;

 

(d)           that are assumed in connection with any acquisition of property or the Capital Stock of any Person, so long as the relevant encumbrance or restriction relates solely to the Person and its subsidiaries (including the Capital Stock of the relevant Person or Persons) and/or property so acquired and was not created in connection with or in anticipation of such acquisition;

 

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(e)           set forth in any agreement for any Disposition of any Restricted Subsidiary (or all or substantially all of the property and/or assets thereof) that restricts the payment of dividends or other distributions or the making of cash loans or advances by such Restricted Subsidiary pending such Disposition;

 

(f)            set forth in provisions in agreements or instruments which prohibit the payment of dividends or the making of other distributions with respect to any class of Capital Stock of a Person other than on a pro rata basis;

 

(g)           imposed by customary provisions in partnership agreements, limited liability company organizational governance documents, joint venture agreements and other similar agreements;

 

(h)           on Cash, other deposits or net worth or similar restrictions imposed by any Person under any contract entered into in the ordinary course of business or for whose benefit such Cash, other deposits or net worth or similar restrictions exist;

 

(i)            set forth in documents which exist on the Closing Date;

 

(j)            arising pursuant to an agreement or instrument relating to any Indebtedness permitted to be incurred after the Closing Date if such restrictions, taken as a whole, are not materially less favorable to the Lenders than the restrictions contained in this Agreement, taken as a whole (as determined in good faith by the Borrower);

 

(k)           arising under or as a result of applicable Requirements of Law or the terms of any license, authorization, concession or permit;

 

(l)            arising in any Hedge Agreement and/or any agreement relating to any Banking Services Obligation and/or Banking Services Obligation (as defined in the ABL Credit Agreement (or any equivalent term under any ABL Facility));

 

(m)          relating to any asset (or all of the assets) of and/or the Capital Stock of the Borrower and/or any Restricted Subsidiary which is imposed pursuant to an agreement entered into in connection with any Disposition of such asset (or assets) and/or all or a portion of the Capital Stock of the relevant Person that is permitted or not restricted by this Agreement;

 

(n)           set forth in any agreement relating to any Permitted Lien that limits the right of the Borrower or any Restricted Subsidiary to Dispose of or encumber the assets subject thereto; and/or

 

(o)           imposed by any amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing of any contract, instrument or obligation referred to in clauses (a) through (n) above; provided that such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing is, in the good faith judgment of the Borrower, no more restrictive with respect to such restrictions, taken as a whole, than those in existence prior to such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing.

 

Section 6.06          Investments.  The Borrower shall not, nor shall the Borrower permit any Restricted Subsidiary to, make or own any Investment in any other Person except:

 

(a)           Cash or Investments that were Cash Equivalents at the time made;

 

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(b)           (i) Investments existing on the Closing Date in the Borrower or in any subsidiary, (ii) Investments made after the Closing Date among the Borrower and/or one or more Restricted Subsidiaries that are Loan Parties, (iii) Investments made after the Closing Date by any Loan Party in Holdings and/or any Restricted Subsidiary that is not a Loan Party, together with Permitted Acquisitions to the extent permitted by clause (c)(i) of the definition thereof in an aggregate outstanding amount not to exceed the Non-Loan Party Investment Cap, (iv) Investments made by any Restricted Subsidiary that is not a Loan Party in any Loan Party and/or any other Restricted Subsidiary that is not a Loan Party and (v) Investments made by any Loan Party and/or any Restricted Subsidiary that is not a Loan Party in the form of any contribution or Disposition of the Capital Stock of any Person that is not a Loan Party;

 

(c)           Investments (i) constituting deposits, prepayments and/or other credits to suppliers, (ii) made in connection with obtaining, maintaining or renewing client and customer contracts and/or (iii) in the form of advances made to distributors, suppliers, licensors and licensees, in each case, in the ordinary course of business or to the extent necessary to maintain the ordinary course of supplies to the Borrower or any Restricted Subsidiary;

 

(d)           (i) Permitted Acquisitions and (ii) any Investment in any Restricted Subsidiary that is not a Loan Party in an amount required to permit such Restricted Subsidiary to consummate a Permitted Acquisition (in compliance, if applicable, with any cap on Investments in non-Loan Parties that is set forth in the relevant carve-out from this Section 6.06), which amount is actually applied by such Restricted Subsidiary to consummate such Permitted Acquisition;

 

(e)           Investments (i) existing on, or contractually committed to as of, the Closing Date and described on Schedule 6.06 and (ii) any modification, replacement, renewal or extension of any Investment described in clause (i) above so long as no such modification, renewal or extension thereof increases the amount of such Investment except by the terms thereof or as otherwise permitted by this Section 6.06;

 

(f)            Investments received in lieu of Cash in connection with any Disposition permitted by Section 6.07;

 

(g)           loans or advances to present or former employees, directors, members of management, officers, managers or consultants or independent contractors (or their respective Immediate Family Members) of any Parent Company, the Borrower, its subsidiaries and/or any joint venture to the extent permitted by Requirements of Law, in connection with such Person’s purchase of Capital Stock of any Parent Company, either (i) in an aggregate principal amount not to exceed $5,000,000 at any one time outstanding or (ii) so long as the proceeds of such loan or advance are substantially contemporaneously contributed to the Borrower for the purchase of Capital Stock;

 

(h)           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;

 

(i)            Investments consisting of (or resulting from) Indebtedness permitted under Section 6.01 (other than Indebtedness permitted under Sections 6.01(b) and (g)), Permitted Liens, Restricted Payments permitted under Section 6.04 (other than Section 6.04(a)(vii)), Restricted Debt Payments permitted by Section 6.04 and mergers, consolidations, amalgamations, liquidations, windings up, dissolutions or Dispositions permitted by Section 6.07 (other than Section 6.07(a) (if made in reliance on subclause (ii)(y) of the proviso thereto), Section 6.07(b) (if made in reliance on clause (ii) therein), Section 6.07(c)(ii) (if made in reliance on clause (B) therein) and Section 6.07(g));

 

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(j)            Investments in the ordinary course of business consisting of endorsements for collection or deposit and customary trade arrangements with customers;

 

(k)           Investments (including debt obligations and Capital Stock) received (i) in connection with the bankruptcy, restructuring or reorganization of any Person, (ii) in settlement of delinquent obligations of, or other disputes with, customers, suppliers and other account debtors arising in the ordinary course of business, (iii) upon foreclosure with respect to any secured Investment or other transfer of title with respect to any secured Investment and/or (iv) as a result of the settlement, compromise, resolution of litigation, arbitration or other disputes;

 

(l)            loans and advances of (x) payroll payments or other compensation and (y) moving, entertainment and travel expenses, drawing accounts and similar expenditures, in each case under this clause (l) to present or former employees, directors, members of management, officers, managers or consultants of any Parent Company (to the extent such payments or other compensation relate to services provided to such Parent Company (but excluding, for the avoidance of doubt, the portion of any such amount, if any, attributable to the ownership or operations of any subsidiary of any Parent Company other than the Borrower and/or its subsidiaries)), the Borrower and/or any subsidiary of the Borrower in the ordinary course of business;

 

(m)          Investments to the extent that payment therefor is made solely with Capital Stock of any Parent Company or Qualified Capital Stock of the Borrower or any Restricted Subsidiary, in each case, to the extent not resulting in a Change of Control;

 

(n)           (i) Investments of any Restricted Subsidiary acquired after the Closing Date, or of any Person acquired by, or merged into or consolidated or amalgamated with, the Borrower or any Restricted Subsidiary after the Closing Date, in each case as part of an Investment otherwise permitted by this Section 6.06 to the extent that such Investments were not made in contemplation of or in connection with such acquisition, merger, amalgamation or consolidation and were in existence on the date of the relevant acquisition, merger, amalgamation or consolidation and (ii) any modification, replacement, renewal or extension of any Investment permitted under clause (i) of this Section 6.06(n) so long as no such modification, replacement, renewal or extension thereof increases the amount of such Investment except as otherwise permitted by this Section 6.06;

 

(o)           Investments made in connection with the Transactions;

 

(p)           Investments made after the Closing Date by the Borrower and/or any of its Restricted Subsidiaries in an aggregate amount at any time outstanding not to exceed $10,000,000;

 

(q)           Investments made after the Closing Date by the Borrower and/or any of its Restricted Subsidiaries in an aggregate outstanding amount not to exceed (i) the portion, if any, of the Available Amount on such date that the Borrower elects to apply to this clause (q)(i) and/or (ii) the portion, if any, of the Available Excluded Contribution Amount on such date that the Borrower elects to apply to this clause (q)(ii);

 

(r)            to the extent not constituting Indebtedness, (i) Guarantees of leases (other than Capital Leases) or of other obligations and (ii) Guarantees of the lease obligations of suppliers, customers, franchisees and licensees of the Borrower and/or its Restricted Subsidiaries, in each case, in the ordinary course of business;

 

(s)            Investments in any Parent Company in amounts and for purposes for which Restricted Payments to such Parent Company are permitted under Section 6.04(a); provided that any

 

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Investment made as provided above in lieu of any such Restricted Payment shall reduce availability under the applicable Restricted Payment basket under Section 6.04(a);

 

(t)            Investments under any Derivative Transaction of the type permitted under Section 6.01(a);

 

(u)           Investments (i) in joint ventures and Unrestricted Subsidiaries, or (ii) in any Restricted Subsidiary to enable such Restricted Subsidiary to make Investments in joint ventures and Unrestricted Subsidiaries, in an aggregate outstanding amount not to exceed $15,000,000;

 

(v)           Investments made in joint ventures or non-Wholly-Owned Subsidiaries as required by, or made pursuant to, customary buy/sell arrangements between the joint venture parties set forth in joint venture agreements and similar binding arrangements entered into in the ordinary course of business;

 

(w)          unfunded pension fund and other employee benefit plan obligations and liabilities to the extent that the same are permitted to remain unfunded under applicable Requirements of Law;

 

(x)           Investments in Holdings, the Borrower, any subsidiary and/or any joint venture in connection with intercompany cash management arrangements and related activities in the ordinary course of business; and

 

(y)           Investments in Foreign Subsidiaries in an aggregate outstanding amount not to exceed $15,000,000;

 

Section 6.07          Fundamental Changes; Disposition of Assets.  The Borrower shall not, nor shall the Borrower permit any of its Restricted Subsidiaries to, enter into any transaction of merger, consolidation or amalgamation or liquidate, wind up or dissolve themselves (or suffer any liquidation or dissolution), or make any Disposition of any assets having a fair market value in excess of $2,500,000, in a single transaction or in a series of related transactions, except:

 

(a)           any Restricted Subsidiary may be merged, consolidated or amalgamated with or into the Borrower or another Restricted Subsidiary; provided that (i) in the case of any such merger, consolidation or amalgamation with or into the Borrower, (A) the Borrower shall be the continuing or surviving Person or (B) if the Person formed by or surviving any such merger, consolidation or amalgamation is not the Borrower (any such Person, the “Successor Borrower”), (w) the Successor Borrower shall provide the documentation and other information reasonably requested in writing by the Lenders that they reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money-laundering rules and regulations, including the PATRIOT Act, in each case at least three Business Days prior to the effectiveness of such merger, consolidation or amalgamation (or such shorter period as the Administrative Agent shall otherwise agree), (x) the Successor Borrower shall be an entity organized or existing under the laws of the U.S., any state thereof or the District of Columbia, (y) the Successor Borrower shall expressly assume the Obligations of the Borrower in a manner reasonably satisfactory to the Administrative Agent and (z) except as the Administrative Agent may otherwise agree, each Guarantor, unless it is the other party to such merger, consolidation or amalgamation, shall have executed and delivered a reaffirmation agreement with respect to its obligations under the Loan Guaranty and the other Loan Documents; it being understood that if the foregoing conditions under clauses (w) through (z) are satisfied, the Successor Borrower will succeed to, and be substituted for, the Borrower under this Agreement and the other Loan Documents, and (ii) in the case of any such merger, consolidation or amalgamation with or into any Subsidiary Guarantor or sale of assets by any Subsidiary Guarantor, either (x) such Subsidiary Guarantor shall be the continuing or surviving

 

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Person or the continuing or surviving Person shall expressly assume the obligations of the Subsidiary Guarantor in a manner reasonably satisfactory to the Administrative Agent or (y) the relevant transaction shall be treated as an Investment and shall comply with Section 6.06;

 

(b)           Dispositions (including of Capital Stock) among the Borrower and/or any Restricted Subsidiary (upon voluntary liquidation or otherwise); provided that any such Disposition made by any Loan Party to a Person that is not a Loan Party shall be (i) for fair market value (as reasonably determined by such Person) with at least 75% of the consideration for such Disposition consisting of Cash or Cash Equivalents at the time of such Disposition or (ii) treated as an Investment and otherwise made in compliance with Section 6.06 (other than in reliance on clause (j) thereof);

 

(c)           (i) the liquidation or dissolution of any Restricted Subsidiary if the Borrower reasonably determines in good faith that such liquidation, dissolution is in the best interests of the Borrower, is not materially disadvantageous to the Lenders and the Borrower or any Restricted Subsidiary receives any assets of the relevant dissolved or liquidated Restricted Subsidiary; provided that in the case of any liquidation or dissolution of any Loan Party that results in a distribution of assets to any Restricted Subsidiary that is not a Loan Party, such distribution shall be treated as an Investment and shall comply with Section 6.06 (other than in reliance on clause (j) thereof); (ii) any merger, amalgamation, dissolution, liquidation or consolidation, the purpose of which is to effect (A) any Disposition otherwise permitted under this Section 6.07 (other than clause (a), clause (b) or this clause (c)) or (B) any Investment permitted under Section 6.06 (other than in reliance on clause (ii) thereof); and (iii) the conversion of the Borrower or any Restricted Subsidiary into another form of entity so long as such conversion does not adversely affect the value of the Loan Guaranty or Collateral, if any;

 

(d)           the leasing or subleasing of real property in the ordinary course of business;

 

(e)           Dispositions in the ordinary course of business of surplus, obsolete, used or worn out property or other property that, in the reasonable judgment of the Borrower, is (i) no longer useful in its business (or in the business of any Restricted Subsidiary) or (ii) otherwise economically impracticable to maintain;

 

(f)            Dispositions of Cash and/or Cash Equivalents and/or other assets that were Cash Equivalents when the relevant original Investment was made;

 

(g)           Dispositions, mergers, amalgamations, consolidations or conveyances that constitute Investments permitted pursuant to Section 6.06 (other than Section 6.06(i), Permitted Liens and Restricted Payments permitted by Section 6.04(a) (other than Section 6.04(a)(vii));

 

(h)           Dispositions for fair market value; provided that with respect to any such Disposition with a purchase price in excess of $10,000,000, at least 75% of the consideration for such Disposition shall consist of Cash or Cash Equivalents (provided that for purposes of the 75% Cash consideration requirement, (x) the amount of any Indebtedness or other liabilities (other than Indebtedness or other liabilities that are subordinated to the Obligations or that are owed to the Borrower or any Restricted Subsidiary) of the Borrower and any Restricted Subsidiary (as shown on such Person’s most recent balance sheet or statement of financial position (or in the notes thereto)) that are assumed by the transferee of any such assets and for which the Borrower and/or its applicable Restricted Subsidiary have been validly released by all relevant creditors in writing, (y) any Securities received by the Borrower or any Restricted Subsidiary from such transferee that are converted by such Person into Cash or Cash Equivalents (to the extent of the Cash or Cash Equivalents received) within 180 days following the closing of the applicable Disposition and (z) any Designated Non-Cash Consideration received in respect of such Disposition having an aggregate fair market value, taken together with all other Designated Non-

 

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Cash Consideration received pursuant to this clause (z) that is at that time outstanding, not in excess of $20,000,000 shall be deemed to be Cash); provided, further, that (x) immediately prior to and after giving effect to such Disposition, as determined on the date on which the agreement governing such Disposition is executed, no Event of Default exists and (y) the Net Proceeds of such Disposition shall be applied and/or reinvested as (and to the extent) required by Section 2.08(b)(ii);

 

(i)                                     to the extent that (i) the relevant property is exchanged for credit against the purchase price of similar replacement property or (ii) the proceeds of the relevant Disposition are promptly applied to the purchase price of such replacement property;

 

(j)                                    Dispositions of Investments in joint ventures or any subsidiary that is not a Wholly-Owned Subsidiary to the extent required by, or made pursuant to, buy/sell arrangements between joint venture or similar parties set forth in the relevant joint venture arrangements and/or similar binding arrangements;

 

(k)                                 Dispositions of accounts receivable in the ordinary course of business (including any discounting or forgiveness thereof) or in connection with the collection or compromise thereof;

 

(l)                                     Dispositions and/or terminations of leases, subleases, licenses or sublicenses (including the provision of software under any open source license), which do not materially interfere with the business of the Borrower and its Restricted Subsidiaries;

 

(m)                             (i) any termination of any lease in the ordinary course of business, (ii) any expiration of any option agreement in respect of real or personal property and (iii) any surrender or waiver of contractual rights or the settlement, release or surrender of contractual rights or litigation claims (including in tort) in the ordinary course of business;

 

(n)                                 Dispositions of property subject to foreclosure, casualty, eminent domain or condemnation proceedings (including in lieu thereof or any similar proceeding);

 

(o)                                 Dispositions of non-core assets acquired in connection with any acquisition permitted hereunder and sales of Real Estate Assets acquired in any acquisition permitted hereunder which, within 90 days of the date of such acquisition, are designated in writing to the Administrative Agent as being held for sale and not for the continued operation of the Borrower or any of its Restricted Subsidiaries or any of their respective businesses; provided that (i) the Net Proceeds received in connection with any such Disposition shall be applied and/or reinvested as (and to the extent required) by Section 2.08(b)(ii), (ii) no Event of Default exists on the date on which the definitive agreement governing the relevant Disposition is executed and (iii) the amount of all Dispositions made in reliance of this Section 6.07(o) shall not exceed $15,000,000;

 

(p)                                 exchanges or swaps, including transactions covered by Section 1031 of the Code (or any comparable provision of any foreign jurisdiction), of assets so long as any such exchange or swap is made for fair value (as reasonably determined by the Borrower) for like assets; provided that upon the consummation of any such exchange or swap by any Loan Party, to the extent the assets received do not constitute an Excluded Asset, the Administrative Agent has a perfected Lien with the same priority as the Lien held on the Real Estate Assets so exchanged or swapped;

 

(q)                                 other Dispositions for fair market value in an aggregate amount since the Closing Date of not more than $30,000,000;

 

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(r)                                    (i) non-exclusive licensing arrangements involving any IP Rights of the Borrower or any Restricted Subsidiary in the ordinary course of business consistent with past practice and (ii) Dispositions, abandonments, cancellations or lapses of IP Rights, or issuances or registrations, or applications for issuances or registrations, of IP Rights, in the ordinary course of business consistent with past practice, which, in the reasonable good faith determination of the Borrower, are not material to the conduct of the business of the Borrower or any Restricted Subsidiary, or are no longer economical to maintain in light of its use;

 

(s)                                   terminations or unwinds of Derivative Transactions;

 

(t)                                    Dispositions of Capital Stock of, or sales of Indebtedness or other Securities of, Unrestricted Subsidiaries;

 

(u)                                 any merger, consolidation, Disposition or conveyance the sole purpose of which is to reincorporate or reorganize (i) any Domestic Subsidiary in another jurisdiction in the U.S. and/or (ii) any Foreign Subsidiary in the U.S. or any other jurisdiction;

 

(v)                                 Dispositions contemplated on the Closing Date and described on Schedule 6.07(v);

 

(w)                               Dispositions of letters of credit and/or bank guarantees (and/or the rights thereunder) to banks or other financial institutions in the ordinary course of business in exchange for Cash and/or Cash Equivalents; and

 

(x)                                 Sale and Lease-Back Transactions, so long as the aggregate fair market value of the assets sold subject to all Sale and Lease-Back Transactions under this clause (x) shall not exceed $15,000,000.

 

To the extent any Collateral is Disposed of as expressly permitted by this Section 6.07 to any Person other than a Loan Party, such Collateral shall automatically be sold free and clear of the Liens created by the Loan Documents, and the Administrative Agent shall be authorized to take, and shall take, any actions deemed appropriate in order to effect the foregoing.

 

Section 6.08                             Transactions with Affiliates.  The Borrower shall not, nor shall it permit any of its Restricted Subsidiaries to, enter into any transaction (including the purchase, sale, lease or exchange of any property or the rendering of any service) involving payment in excess of $2,500,000 with any of their respective Affiliates on terms that are less favorable to the Borrower or such Restricted Subsidiary, as the case may be (as reasonably determined by the Borrower), than those that might be obtained at the time in a comparable arm’s-length transaction from a Person who is not an Affiliate; provided that the foregoing restriction shall not apply to:

 

(a)                                 any transaction between or among the Borrower and/or one or more Restricted Subsidiaries (or any entity that becomes a Restricted Subsidiary as a result of such transaction) to the extent permitted or not restricted by this Agreement;

 

(b)                                 any issuance, sale or grant of securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of employment arrangements, stock options and stock ownership plans approved by the board of directors (or equivalent governing body) of any Parent Company or of the Borrower or any Restricted Subsidiary;

 

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(c)                                  (i) any collective bargaining agreement, employment agreement, severance agreement or compensatory (including profit sharing) arrangement entered into by the Borrower or any of its Restricted Subsidiaries with their respective current or former officers, directors, members of management, managers, employees, consultants or independent contractors or those of any Parent Company, (ii) any subscription agreement or similar agreement pertaining to the repurchase of Capital Stock pursuant to put/call rights or similar rights with current or former officers, directors, members of management, managers, employees, consultants or independent contractors and (iii) transactions pursuant to any employee compensation, benefit plan, stock option plan or arrangement, any health, disability or similar insurance plan which covers current or former officers, directors, members of management, managers, employees, consultants or independent contractors or any employment contract or arrangement;

 

(d)                                 (i) transactions permitted by Sections 6.01(c), (l) and (u), 6.04 and 6.06(g), (l), (n), (p) and (u) (to the extent the relevant transaction is an Investment of the type described in Section 6.06(g)), (s), (u), (v), (w) and (x) and (ii) issuances of Capital Stock and issuances or incurrences of Indebtedness not restricted by this Agreement;

 

(e)                                  transactions in existence on the Closing Date and described on Schedule 6.08 and any amendment, modification or extension thereof to the extent such amendment, modification or extension, taken as a whole, is not adverse to the Lenders in any material respect;

 

(f)                                   the payment of all indemnification obligations and expenses owed to any Management Investor and any of their respective directors, officers, members of management, managers, employees and consultants whether currently due or paid in respect of accruals from prior periods;

 

(g)                                  the Transactions, including the payment of Transaction Costs and other payments required under the Acquisition Agreement;

 

(h)                                 Guarantees permitted by Section 6.01 or Section 6.06;

 

(i)                                     the payment of customary fees and reasonable out-of-pocket costs to, and indemnities provided on behalf of, members of the board of directors (or similar governing body), officers, employees, members of management, managers, consultants and independent contractors of the Borrower and/or any of its Restricted Subsidiaries in the ordinary course of business and, in the case of payments to such Person in such capacity on behalf of any Parent Company, to the extent attributable to the operations of the Borrower or its subsidiaries;

 

(j)                                    transactions with customers, clients, suppliers, joint ventures, purchasers or sellers of goods or services or providers of employees or other labor entered into in the ordinary course of business, which are (i) fair to the Borrower and/or its applicable Restricted Subsidiaries in the good faith determination of the board of directors (or similar governing body) of the Borrower or the senior management thereof or (ii) on terms at least as favorable to the Borrower and/or its applicable Restricted Subsidiary as might reasonably be obtained from a Person other than an Affiliate;

 

(k)                                 the payment of reasonable out-of-pocket costs and expenses related to registration rights and customary indemnities provided to shareholders under any shareholder agreement;

 

(l)                                     any purchase by Holdings of the Capital Stock of (or contribution to the equity capital of) the Borrower;

 

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(m)                             any transaction in respect of which the Borrower delivers to the Administrative Agent a letter addressed to the board of directors (or equivalent governing body) of the Borrower from an accounting, appraisal or investment banking firm of nationally recognized standing stating that such transaction is on terms that are no less favorable to the Borrower or the applicable Restricted Subsidiary than might be obtained at the time in a comparable arm’s length transaction from a Person who is not an Affiliate; and

 

(n)                                 any issuance, sale or grant of Qualified Capital Stock or other payments, awards or grants in Cash, Qualified Capital Stock or otherwise pursuant to, or the funding of employment arrangements, stock options and stock ownership plans approved by a majority of the members of the board of directors (or similar governing body) or a majority of the disinterested members of the board of directors (or similar governing body) of the Borrower or the applicable Restricted Subsidiary in good faith.

 

Section 6.09                             Amendments or Waivers of Organizational Documents.  The Borrower shall not, nor shall it permit any Subsidiary Guarantor to, amend or modify their respective Organizational Documents, in each case in a manner that is materially adverse to the Lenders (in their capacities as such) without obtaining the prior written consent of the Administrative Agent.

 

Section 6.10                             Amendments of or Waivers with Respect to Restricted Debt.  The Borrower shall not, nor shall it permit any of its Restricted Subsidiaries to, amend or otherwise modify the terms of any Restricted Debt (or the documentation governing any Restricted Debt) (a) if the effect of such amendment or modification, together with all other amendments or modifications made, is materially adverse to the interests of the Lenders (in their capacities as such) or (b) in violation of any intercreditor agreement related to such debt entered into with the Administrative Agent or the subordination terms set forth in the definitive documentation governing any Restricted Debt.

 

Section 6.11                             Permitted Activities of Holdings.  Holdings shall not:

 

(a)                                 incur any Indebtedness for borrowed money other than the Secured Obligations and other Guarantees of Indebtedness or other obligations of the Borrower and/or any Restricted Subsidiary that are otherwise permitted hereunder;

 

(b)                                 create or suffer to exist any Lien on any asset now owned or hereafter acquired by it other than (i) the Liens created under the Collateral Documents and, subject to an Acceptable Intercreditor Agreement, the collateral documents related to any ABL Facility, to which it is a party, (ii) any other Lien created in connection with the Transactions, (iii) Permitted Liens on the Collateral that are secured on a pari passu or junior basis with the Secured Obligations, so long as such Permitted Liens secure Guarantees permitted under clause (a) above and the underlying Indebtedness subject to such Guarantee is permitted to be secured on the same basis pursuant to Section 6.02 and (iv) Liens of the type permitted under Section 6.02 (other than in respect of debt for borrowed money);

 

(c)                                  engage in any business activity or own any material assets other than (i) holding the Capital Stock of any of its direct or indirect subsidiaries; (ii) performing its obligations under the Loan Documents, any ABL Facility, other Indebtedness, Liens (including the granting of Liens) and Guarantees permitted hereunder; (iii) any grants, issuances, repurchases or withholdings by Holdings of its own Capital Stock (including, the making of any dividend or distribution on account of, or any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value of, any shares of any class of Capital Stock), stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-based awards and performance awards pursuant to any equity incentive plans of Holdings; (iv) filing Tax reports and paying Taxes and other customary obligations in the ordinary course (and

 

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contesting any Taxes); (v) preparing reports to Governmental Authorities and to its shareholders; (vi) holding director and shareholder meetings, preparing organizational records and other organizational activities required to maintain its separate organizational structure or to comply with applicable Requirements of Law; (vii) effecting any public offering of its Capital Stock and/or any transaction in connection therewith; (viii) holding Cash, Cash Equivalents and other assets received in connection with Restricted Payments received from, or Investments made by, the Borrower and/or any Restricted Subsidiary or any of their direct or indirect subsidiaries or contributions to the capital of, or proceeds from the issuance of, Capital Stock of Holdings, in each case, pending the application thereof; (ix) providing indemnification for its officers, directors, members of management, managers, employees and advisors or consultants; (x) participating in tax, accounting and other administrative matters; (xi) making payments of the type permitted under Section 6.08(f) and the performance of its obligations under the Acquisition Agreement and any other document, agreement and/or Investment contemplated by the Transactions and other transactions expressly contemplated under this Agreement; (xii) complying with applicable Requirements of Law (including with respect to the maintenance of its existence); and (xiii) activities incidental to any of the foregoing or effecting any transaction permitted under this Agreement, including, without limitation, the Transactions; and

 

(d)                                 consolidate or amalgamate with, or merge with or into, or convey, sell or otherwise transfer all or substantially all of its assets to, any Person; provided that, so long as no Default or Event of Default exists or would result therefrom, (A) Holdings may consolidate or amalgamate with, or merge with or into, any other Person (other than the Borrower or any of its Restricted Subsidiaries.) so long as (i) Holdings is the continuing or surviving Person or (ii) if the Person formed by or surviving any such consolidation, amalgamation or merger is not Holdings, (w) the successor Person (such successor Person, “Successor Holdings”) expressly assumes all obligations of Holdings under this Agreement and the other Loan Documents to which Holdings is a party pursuant to a supplement hereto and/or thereto in a form reasonably satisfactory to the Administrative Agent, (x) Successor Holdings shall provide the documentation and other information reasonably requested in writing by the Lenders that they reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money-laundering rules and regulations, including the PATRIOT Act, in each case at least three Business Days prior to the effectiveness of such merger, consolidation or amalgamation (or such shorter period as the Administrative Agent shall otherwise agree), (x) Successor Holdings shall be an entity organized or existing under the laws of the U.S., any state thereof or the District of Columbia, and (z) the Borrower delivers a certificate of a Responsible Officer with respect to the satisfaction of the conditions set forth in clause (w) of this clause (A) and (B) Holdings may otherwise convey, sell or otherwise transfer all or substantially all of its assets to any other Person (other than the Borrower and any of its subsidiaries) so long as (x) no Change of Control results therefrom, (y) the Person acquiring such assets expressly assumes all of the obligations of Holdings under this Agreement and the other Loan Documents to which Holdings is a party pursuant to a supplement hereto and/or thereto in a form reasonably satisfactory to the Administrative Agent and (z) the Borrower delivers a certificate of a Responsible Officer with respect to the satisfaction of the conditions under clause (x) set forth in this clause (B); provided, further, that (1) if the conditions set forth in the preceding proviso are satisfied, Successor Holdings will succeed to, and be substituted for, Holdings under this Agreement and (2) it is understood and agreed that Holdings may convert into another form of entity so long as such conversion does not adversely affect the value of the Loan Guaranty or the Collateral.

 

Section 6.12                             Financial Covenant.

 

(a)                                 Financial Covenant:

 

(i)                         Total Leverage Ratio.  On the last day of any Test Period (it being understood and agreed that this Section 6.12(a)(i) shall not apply until the last day of the first

 

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full Fiscal Quarter ending after the Closing Date), the Borrower shall not permit the Total Leverage Ratio to be greater than the ratio set forth below for such Test Period:

 

	
Test Period ending on
   or about:
    	
 
    	
Total Leverage Ratio
    
	
June 30, 2017
    	
 
    	
4.25:1.00
    
	
September 30, 2017
    	
 
    	
4.25:1.00
    
	
December 31, 2017
    	
 
    	
4.25:1.00
    
	
March 31, 2018
    	
 
    	
4.25:1.00
    
	
June 30, 2018
    	
 
    	
4.25:1.00
    
	
September 30, 2018
    	
 
    	
4.25:1.00
    
	
December 31, 2018
    	
 
    	
4.25:1.00
    
	
March 31, 2019
    	
 
    	
4.00:1.00
    
	
June 30, 2019
    	
 
    	
4.00:1.00
    
	
September 30, 2019
    	
 
    	
4.00:1.00
    
	
December 31, 2019
    	
 
    	
4.00:1.00
    
	
March 31, 2020
    	
 
    	
4.00:1.00
    
	
June 30, 2020
    	
 
    	
4.00:1.00
    
	
September 30, 2020
    	
 
    	
4.00:1.00
    
	
December 31, 2020
    	
 
    	
4.00:1.00
    
	
March 31, 2021 and   the
   last day of each Test
   Period thereafter:
    	
 
    	
3.75:1.00
    

 

(b)                                 Financial Cure.  Notwithstanding anything to the contrary in this Agreement (including Article 7), upon the Borrower’s failure to comply with Section 6.12(a) above for any Fiscal Quarter, Holdings shall have the right (the “Cure Right”) (at any time during such Fiscal Quarter or thereafter until the date that is 15 Business Days after the date on which financial statements for such Fiscal Quarter are required to be delivered pursuant to Section 5.01(a) or (b), as applicable) to issue Qualified Capital Stock or other equity (such other equity to be on terms reasonably acceptable to the Administrative Agent) for Cash or otherwise receive Cash contributions in respect of Qualified Capital Stock (the “Cure Amount”) which is promptly contributed to the Borrower in Cash and thereupon the Borrower’s compliance with Section 6.12(a) shall be recalculated giving effect to a pro forma increase in the amount of Consolidated Adjusted EBITDA by an amount equal to the Cure Amount (notwithstanding the absence of a related addback in the definition of “Consolidated Adjusted EBITDA”) solely for the purpose of determining compliance with Section 6.12(a) as of the end of such Fiscal Quarter and applicable subsequent periods that include such Fiscal Quarter, but only to the extent such Cash or Cash contributions have not otherwise been applied to increase the Available Amount or Available Excluded Contribution Amount, or to make Restricted Payments or Restricted Debt Payments hereunder.  If, after giving effect to the foregoing recalculation (but not, for the avoidance of doubt, taking into account any repayment of Indebtedness in connection therewith), the requirements of Section 6.12(a) would be

 

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satisfied, then the requirements of Section 6.12(a) shall be deemed satisfied as of the end of the relevant Fiscal Quarter with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach of Section 6.12(a) that had occurred (or would have occurred) shall be deemed cured for the purposes of this Agreement.  Notwithstanding anything herein to the contrary, (i) in each four consecutive Fiscal Quarter period there shall be at least two Fiscal Quarters (which may, but are not required to be, consecutive) in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for the purpose of complying with Section 6.12(a), (iv) upon the Administrative Agent’s receipt of a written notice from the Borrower that the Borrower intends to exercise the Cure Right (a “Notice of Intent to Cure”), until the 15th Business Day following the date on which financial statements for the Fiscal Quarter to which such Notice of Intent to Cure relates are required to be delivered pursuant to Section 5.01(a) or (b) as applicable, none of the Administrative Agent (nor any sub-agent therefor) nor any Lender or Secured Party shall exercise any right to foreclose on or take possession of the Collateral or any other right or remedy under the Loan Documents solely on the basis of the relevant failure to comply with Section 6.12(a), (v) there shall be no pro forma or other reduction of the amount of Indebtedness by the amount of any Cure Amount (including the netting of cash) for purposes of determining compliance with Section 6.12(a) for the Fiscal Quarter in respect of which the Cure Right was exercised (other than, with respect to any future period, to the extent of any portion of such Cure Amount that is actually applied to repay Indebtedness), (vi) during any Test Period in which any Cure Amount is included in the calculation of Consolidated Adjusted EBITDA as a result of any exercise of the Cure Right, such Cure Amount shall be (A) counted solely as an increase to Consolidated Adjusted EBITDA for the purpose of determining compliance with Section 6.12(a) and (B) disregarded for all other purposes of determining whether any financial ratio-based condition has been satisfied, pricing or the availability of any carve-out set forth in Article 6 of this Agreement has been satisfied.

 

Section 6.13                             Conduct of Business.  From and after the Closing Date, (i) neither Holdings nor the Borrower shall change its Fiscal Year-end and (ii) the Borrower shall not, nor shall it permit any of its Restricted Subsidiaries to, engage in any material line of business other than (a) the businesses engaged in by the Borrower or any of its Restricted Subsidiaries on the Closing Date and similar, complementary, ancillary or related businesses and (b) such other lines of business as may be consented to by the Required Lenders.

 

Section 6.14                             Use of Proceeds.  No part of the proceeds of any Loan, will be used, directly or, to the Borrower’s knowledge, indirectly, (i) in furtherance of an offer, payment, promise to pay or authorization of the payment or giving of money, or anything else of value, to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of Anti-Corruption Laws, (ii) to fund any activities or business of or with any Person, that, at the time of such funding, is the subject of Sanctions or in any country that, at the time of such funding, is a Sanctioned Country, or (iii) in any other manner that would result in a violation of Sanctions by any Person (including any Person participating in the Loans, whether as lender, underwriter, advisor, investor, or otherwise).

 

ARTICLE 7                              EVENTS OF DEFAULT

 

Section 7.01                             Events of Default.  If any of the following events (each, an “Event of Default”) shall occur:

 

(a)                                 Failure To Make Payments When Due.  Failure by the Borrower to pay (i) any installment of principal of any Loan when due, whether at stated maturity, by acceleration, by notice of

 

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voluntary prepayment, by mandatory prepayment or otherwise; or (ii) any interest on any Loan or any fee or any other amount due hereunder within five Business Days after the date due; or

 

(b)                                 Default in Other Agreements.  (i) Failure by any Loan Party or any of its Restricted Subsidiaries to pay when due any principal of or interest on or any other amount payable in respect of one or more items of Indebtedness (other than Indebtedness referred to in clause (a) above) with an aggregate outstanding principal amount exceeding the Threshold Amount; or (ii) breach or default by any Loan Party or any of its Restricted Subsidiaries with respect to any other term of such Indebtedness described under the foregoing clause (i) (other than Indebtedness under any ABL Facility) pursuant to any loan agreement, mortgage, indenture or other agreement relating to such item(s) of Indebtedness (other than, for the avoidance of doubt, with respect to Indebtedness consisting of Hedging Obligations, termination events or equivalent events pursuant to the terms of the relevant Hedge Agreement which are not the result of any default thereunder by any Loan Party or any Restricted Subsidiary), in each case under the foregoing clauses (i) and (ii), beyond the grace period, if any, provided therefor, if the effect of such breach or default is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause, such Indebtedness to become or to be declared due and payable (or redeemable) or require that an offer to repurchase, prepay, defease or redeem such Indebtedness be made prior to its stated maturity or the stated maturity of any underlying obligation, as the case may be; provided that clause (ii) of this paragraph (b) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property securing such Indebtedness if such sale or transfer is permitted hereunder; provided, further, that any failure under clauses (i) or (ii) above is unremedied and is not waived by the holders of such Indebtedness prior to any termination of the Commitments or acceleration of the Loans pursuant to Article 7.  A breach or default by any Loan Party with respect to the ABL Credit Agreement or with respect to any ABL Facility (other than any payment default thereunder which is subject to clause (i) herein), will not constitute an Event of Default unless the agent and/or lenders thereunder have demanded repayment of, or otherwise accelerated, all of the Indebtedness and terminated commitments thereunder; or

 

(c)                                  Breach of Certain Covenants.  Failure of any Loan Party, as required by the relevant provision, to perform or comply with any term or condition contained in Section 5.01(e)(i) (provided that delivery of any notice of default required to be delivered therein at any time will cure any Event of Default arising from the failure to timely deliver such notice), Section 5.02 (with respect to the Borrower) or Article 6; provided that any breach of Section 6.12(a) is subject to cure as provided therein, and following the delivery of a Notice of Intent to Cure, no Event of Default shall arise under Section 6.12(a) until the 15th Business Day after the day on which financial statements are required to be delivered for the relevant Fiscal Quarter under Section 5.01(a) or (b), as applicable, and then only to the extent the Cure Amount has not been received on or prior to such date; or

 

(d)                                 Breach of Representations, Etc.  Any representation, warranty or certification made or deemed made by any Loan Party in any Loan Document or in any certificate required to be delivered in connection herewith or therewith (including, for the avoidance of doubt, any Perfection Certificate and any Perfection Certificate Supplement) being untrue in any material respect as of the date made or deemed made; or

 

(e)                                  Other Defaults Under Loan Documents.  Default by any Loan Party in the performance of or compliance with any term contained herein or any of the other Loan Documents, other than any such term referred to in any other Section of this Article 7, which default has not been remedied or waived within 30 days after receipt by the Borrower of written notice thereof from the Administrative Agent; or

 

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(f)                                   Involuntary Bankruptcy; Appointment of Receiver, Etc.  (i) The entry by a court of competent jurisdiction of a decree or order for relief in respect of Holdings, the Borrower or any of its Restricted Subsidiaries (other than any Immaterial Subsidiary) in an involuntary case under any Debtor Relief Law now or hereafter in effect, which decree or order is not stayed; or any other similar relief shall be granted under any applicable federal, state or local Requirements of Law; or (ii) the commencement of an involuntary case against Holdings, the Borrower or any of its Restricted Subsidiaries (other than any Immaterial Subsidiary) under any Debtor Relief Law; or the entry by a court having jurisdiction in the premises of a decree or order for the appointment of a receiver, receiver and manager, administrator, examiner, (preliminary) insolvency receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over Holdings, the Borrower or any of its Restricted Subsidiaries (other than any Immaterial Subsidiary), or over all or a substantial part of its or their property; or the involuntary appointment of an interim receiver, trustee or other custodian of Holdings, the Borrower or any of its Restricted Subsidiaries (other than any Immaterial Subsidiary) for all or a substantial part of its property, which remains undismissed, unvacated, unbonded or unstayed pending appeal for 60 consecutive days; or

 

(g)                                  Voluntary Bankruptcy; Appointment of Receiver, Etc.  (i) The entry against Holdings, the Borrower or any of its Restricted Subsidiaries (other than any Immaterial Subsidiary) of an order for relief, the commencement by Holdings, the Borrower or any of its Restricted Subsidiaries (other than any Immaterial Subsidiary) of a voluntary case under any Debtor Relief Law, or the consent by Holdings, the Borrower or any of its Restricted Subsidiaries (other than any Immaterial Subsidiary) to the entry of an order for relief in an involuntary case or to the conversion of an involuntary case to a voluntary case, under any Debtor Relief Law, or the consent by Holdings, the Borrower or any of its Restricted Subsidiaries (other than any Immaterial Subsidiary) to the appointment of or taking possession by a receiver, receiver and manager, trustee or other custodian for all or a substantial part of its property; (ii) the making by Holdings, the Borrower or any of its Restricted Subsidiaries (other than any Immaterial Subsidiary) of a general assignment for the benefit of creditors; or (iii) the admission by Holdings, the Borrower or any of its Restricted Subsidiaries (other than any Immaterial Subsidiary) in writing of their inability to pay their respective debts as such debts become due; or

 

(h)                                 Judgments and Attachments.  The entry or filing of one or more final money judgments, writs or warrants of attachment or similar process against Holdings, the Borrower or any of its Restricted Subsidiaries or any of their respective assets involving in the aggregate at any time an amount in excess of the Threshold Amount (in either case to the extent not adequately covered by self-insurance (if applicable) or by insurance as to which the relevant third party insurance company has been notified and not denied coverage), which judgment, writ, warrant or similar process remains unpaid, undischarged, unvacated, unbonded or unstayed pending appeal for a period of 60 days; or

 

(i)                                     Employee Benefit Plans.  The occurrence of one or more ERISA Events, which individually or in the aggregate result in liability of Holdings, the Borrower or any of its Restricted Subsidiaries, or any of their respective ERISA Affiliates, in an aggregate amount which would reasonably be expected to result in a Material Adverse Effect; or

 

(j)                                    Change of Control.  The occurrence of a Change of Control; or

 

(k)                                 Guaranties, Collateral Documents and Other Loan Documents.  At any time after the execution and delivery thereof, (i) any material Loan Guaranty for any reason, other than the occurrence of the Termination Date, shall cease to be in full force and effect (other than in accordance with its terms) or shall be declared to be null and void or any Guarantor shall repudiate in writing its obligations thereunder (other than as a result of the discharge of such Guarantor in accordance with the terms thereof), (ii) this Agreement or any material Collateral Document ceases to be in full force and effect or shall be declared null and void (other than by reason of (x)  a release of Collateral in accordance

 

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with the terms hereof or thereof or (y) the occurrence of the Termination Date or any other termination of such Collateral Document in accordance with the terms thereof) or (iii) any Loan Party shall contest in writing the validity or enforceability of any Loan Document or any material provision of any Loan Document or deny in writing that it has any further liability (other than by reason of the occurrence of the Termination Date), including with respect to future advances by the Lenders, under any Loan Document to which it is a party; it being understood and agreed that the failure of the Administrative Agent to maintain possession of any Collateral actually delivered to it or file any UCC (or equivalent) continuation statement shall not result in an Event of Default under this clause (k) or any other provision of any Loan Document; or

 

(l)                                     Subordination.  The Obligations ceasing or the assertion in writing by any Loan Party that the Obligations cease to constitute senior indebtedness under the subordination provisions of any document or instrument evidencing any Junior Indebtedness or Junior Lien Indebtedness in excess of the Threshold Amount or any such subordination provision being invalidated or otherwise ceasing, for any reason, to be valid, binding and enforceable obligations of the parties thereto; or

 

then, and in every such event (other than an event with respect to the Borrower described in clause (f) or (g) of this Article), and at any time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take any of the following actions, at the same or different times: declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower.  Upon the occurrence and during the continuance of an Event of Default, the Administrative Agent may, and at the request of the Required Lenders shall, exercise any rights and remedies provided to the Administrative Agent under the Loan Documents or at law or equity, including all remedies provided under the UCC.

 

ARTICLE 8                              THE ADMINISTRATIVE AGENT

 

Each of the Lenders hereby irrevocably appoints Credit Suisse (or any successor appointed pursuant hereto) as Administrative Agent and authorizes the Administrative Agent to take such actions on its behalf, including execution of the other Loan Documents, and to exercise such powers as are delegated to the Administrative Agent by the terms of the Loan Documents, together with such actions and powers as are reasonably incidental thereto.

 

Any Person serving as Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, unless the context otherwise requires or unless such Person is in fact not a Lender, include each Person serving as Administrative Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with any Loan Party or any subsidiary of any Loan Party or other Affiliate thereof as if it were not the Administrative Agent hereunder.  The Lenders acknowledge that, pursuant to such activities, the Administrative Agent or its Affiliates may receive information regarding any Loan Party or any of its Affiliates (including information that may be subject to confidentiality obligations in favor of such Loan Party or such Affiliate) and acknowledge that the Administrative Agent shall not be under any obligation to provide such information to them.

 

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The Administrative Agent shall not have any duties or obligations except those expressly set forth in the Loan Documents.  Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default or Event of Default exists and  the use of the term “agent” herein and in the other Loan Documents with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Requirements of Law; it being understood that such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties, (b) the Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary power, except discretionary rights and powers that are expressly contemplated by the Loan Documents and which the Administrative Agent is required to exercise in writing as directed by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the relevant circumstances as provided in Section 9.02); provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable Requirements of Law, and (c) except as expressly set forth in the Loan Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to Holdings or the Borrower or any of its Restricted Subsidiaries that is communicated to or obtained by the Person serving as Administrative Agent or any of its Affiliates in any capacity.  The Administrative Agent shall not be liable to the Lenders or any other Secured Parties for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as is necessary, or as the Administrative Agent believes in good faith shall be necessary, under the relevant circumstances as provided in Section 9.02) or in the absence of its own gross negligence or willful misconduct as determined by the final judgment of a court of competent jurisdiction, in connection with its duties expressly set forth herein.  The Administrative Agent shall not be deemed to have knowledge of any Default or Event of Default unless and until written notice thereof is given to the Administrative Agent by the Borrower or any Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or in connection with any Loan Document, (iii) the performance or observance of any covenant, agreement or other term or condition set forth in any Loan Document or the occurrence of any Default or Event of Default, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document, (v) the creation, perfection or priority of any Lien on the Collateral or the existence, value or sufficiency of the Collateral, (vi) the satisfaction of any condition set forth in Article 4 or elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent or (vii) any property, book or record of any Loan Party or any Affiliate thereof.

 

The Administrative Agent shall not be responsible or have any liability for, or have any duty to ascertain, inquire into, monitor or enforce, compliance with the provisions hereof relating to Disqualified Institutions by any other Lender.  Without limiting the generality of the foregoing, the Administrative Agent shall not (x) be obligated to ascertain, monitor or inquire as to whether any other Lender or participant or prospective Lender or Participant is a Disqualified Institution or (y) have any liability with respect to or arising out of any assignment or participation of Loans, or disclosure of confidential information, to any Disqualified Institution by any other Lender.

 

Each Lender agrees that, except with the written consent of the Administrative Agent, it will not take any enforcement action hereunder or under any other Loan Document, accelerate the Obligations under any Loan Document, or exercise any right that it might otherwise have under applicable Requirements of Law or otherwise to credit bid at any foreclosure sale, UCC sale, any sale under Section 363 of the Bankruptcy Code or any other similar Disposition of Collateral, whether under other Debtor

 

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Relief Laws or otherwise.  Notwithstanding the foregoing, a Lender may take action to preserve or enforce its rights against a Loan Party where a deadline or limitation period is applicable that would, absent such action, bar enforcement of the Obligations held by such Lender, including the filing of a proof of claim in a case under the Bankruptcy Code.

 

Notwithstanding anything to the contrary contained herein or in any of the other Loan Documents, the Borrower, the Administrative Agent and each Secured Party agree that (i) no Secured Party shall have any right individually to realize upon any of the Collateral or to enforce the Loan Guaranty; it being understood and agreed that all powers, rights and remedies hereunder may be exercised solely by the Administrative Agent, on behalf of the Secured Parties in accordance with the terms hereof and all powers, rights and remedies under the other Loan Documents may be exercised solely by the Administrative Agent, and (ii) in the event of a foreclosure by the Administrative Agent on any of the Collateral pursuant to a public or private sale or in the event of any other Disposition (including pursuant to Section 363 of the Bankruptcy Code), (A) the Administrative Agent, as agent for and representative of the Secured Parties, shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such sale, to use and apply all or any portion of the Obligations as a credit on account of the purchase price for any Collateral payable by the Administrative Agent at such Disposition and (B) the Administrative Agent or any Lender may be the purchaser or licensor of all or any portion of such Collateral at any such Disposition.

 

No holder of any Secured Hedging Obligation or Banking Services Obligation in its respective capacity as such shall have any rights in connection with the management or release of any Collateral or of the obligations of any Loan Party under this Agreement.

 

Each of the Lenders hereby irrevocably authorizes (and by entering into a Hedge Agreement with respect to any Secured Hedging Obligation and/or by entering into documentation in connection with any Banking Services Obligation, each of the other Secured Parties hereby authorizes and shall be deemed to authorize) the Administrative Agent, on behalf of all Secured Parties to take any of the following actions upon the instruction of the Required Lenders:

 

(a)                                 consent to the Disposition of all or any portion of the Collateral free and clear of the Liens securing the Secured Obligations in connection with any Disposition pursuant to the applicable provisions of the Bankruptcy Code, including Section 363 thereof or any similar provision in any other Debtor Relief Laws;

 

(b)                                 credit bid all or any portion of the Secured Obligations, or purchase all or any portion of the Collateral (in each case, either directly or through one or more acquisition vehicles), in connection with any Disposition of all or any portion of the Collateral pursuant to the applicable provisions of the Bankruptcy Code, including under Section 363 thereof;

 

(c)                                  credit bid all or any portion of the Secured Obligations, or purchase all or any portion of the Collateral (in each case, either directly or through one or more acquisition vehicles), in connection with any Disposition of all or any portion of the Collateral pursuant to the applicable provisions of the UCC, including pursuant to Sections 9-610 or 9-620 of the UCC;

 

(d)                                 credit bid all or any portion of the Secured Obligations, or purchase all or any portion of the Collateral (in each case, either directly or through one or more acquisition vehicles), in connection with any foreclosure or other Disposition conducted in accordance with applicable Requirements of Law following the occurrence of an Event of Default, including by power of sale, judicial action or otherwise; and/or

 

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(e)                                  estimate the amount of any contingent or unliquidated Secured Obligations of such Lender or other Secured Party;

 

it being understood that no Lender shall be required to fund any amount in connection with any purchase of all or any portion of the Collateral by the Administrative Agent pursuant to the foregoing clauses (b), (c) or (d) without its prior written consent.

 

Each Secured Party agrees that the Administrative Agent is under no obligation to credit bid any part of the Secured Obligations or to purchase or retain or acquire any portion of the Collateral; provided that, in connection with any credit bid or purchase described under clauses (b), (c) or (d) of the preceding paragraph, the Secured Obligations owed to all of the Secured Parties (other than with respect to contingent or unliquidated liabilities as set forth in the next succeeding paragraph) may be, and shall be, credit bid by the Administrative Agent on a ratable basis.

 

With respect to each contingent or unliquidated claim that is a Secured Obligation, the Administrative Agent is hereby authorized, but is not required, to estimate the amount thereof for purposes of any credit bid or purchase described in the second preceding paragraph.  In the event that the Administrative Agent, in its sole and absolute discretion, elects not to estimate any such contingent or unliquidated claim, then any contingent or unliquidated claims not so estimated shall be disregarded, shall not be credit bid, and shall not be entitled to any interest in the portion or the entirety of the Collateral purchased by means of such credit bid.

 

Each Secured Party whose Secured Obligations are credit bid under clauses (b), (c) or (d) of the third preceding paragraph is entitled to receive interests in the Collateral or any other asset acquired in connection with such credit bid (or in the Capital Stock of the acquisition vehicle or vehicles that are used to consummate such acquisition) on a ratable basis in accordance with the percentage obtained by dividing (x) the amount of the Secured Obligations of such Secured Party that were credit bid in such credit bid or other Disposition, by (y) the aggregate amount of all Secured Obligations that were credit bid in such credit bid or other Disposition.

 

In addition, in case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, each Secured Party agrees that the Administrative Agent (irrespective of whether the principal of any Loan is then due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:

 

(i)                         to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts to the extent due to the Lenders and the Administrative Agent under Sections 2.09 and 9.03) allowed in such judicial proceeding; and

 

(ii)                      to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same.

 

Any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the

 

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Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amount to the extent due to the Administrative Agent under Sections 2.09 and 9.03.

 

Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

 

The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) that it believes to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender unless the Administrative Agent has received notice to the contrary from such Lender prior to the making of such Loan.  The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

 

The Administrative Agent may perform any and all of its duties and exercise its rights and powers by or through any one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any and all of their respective duties and exercise their respective rights and powers through their respective Related Parties.  The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as the Administrative Agent.

 

The Administrative Agent may resign at any time by giving ten days written notice to the Lenders and the Borrower. If the Administrative Agent is a Defaulting Lender or an Affiliate of a Defaulting Lender, either the Required Lenders or the Borrower may, upon ten days’ notice to the Lenders and the Administrative Agent, remove the Administrative Agent.  Upon receipt of any such notice of resignation or delivery of any such notice of removal, the Required Lenders shall have the right, with the consent of the Borrower (not to be unreasonably withheld or delayed), to appoint a successor Administrative Agent which shall be a commercial bank or trust company with offices in the U.S. having combined capital and surplus in excess of $1,000,000,000; provided that during the existence and continuation of an Event of Default under Section 7.01(a) or, with respect to the Borrower, Section 7.01(f) or (g), no consent of the Borrower shall be required.  If no successor shall have been so appointed as provided above and accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation or the Administrative Agent receives notice of removal, then (a) in the case of a retirement, the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above (including, for the avoidance of doubt, consent of the Borrower) or (b) in the case of a removal, the Borrower may, after consulting with the Required Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above; provided that (x) in the case of a retirement, if the Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has accepted such appointment or (y) in the case of a removal, the

 

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Borrower notifies the Required Lenders that no qualifying Person has accepted such appointment, then, in each case, such resignation or removal shall nonetheless become effective in accordance with such notice and (i) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Administrative Agent in its capacity as collateral agent for the Secured Parties for purposes of maintaining the perfection of the Lien on the Collateral securing the Secured Obligations, the retiring Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed) and (ii) all payments, communications and determinations required to be made by, to or through the Administrative Agent shall instead be made by or to each Lender (and each Lender will cooperate with the Borrower to enable the Borrower to take such actions), until such time as the Required Lenders or the Borrower, as applicable, appoint a successor Administrative Agent, as provided for above in this Article 8.  Upon the acceptance of its appointment as Administrative Agent hereunder as a successor Administrative Agent, the successor Administrative Agent shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments owed to the retiring Administrative Agent), and the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder (other than its obligations under Section 9.13).  The fees payable by the Borrower to any successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor Administrative Agent.  After the Administrative Agent’s resignation or removal hereunder, the provisions of this Article and Section 9.03 shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any action taken or omitted to be taken by any of them while the relevant Person was acting as Administrative Agent (including for this purpose holding collateral security following retirement or removal of the Administrative Agent).  Notwithstanding anything to the contrary herein, no Disqualified Institution may be appointed as a successor Administrative Agent.

 

Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their respective Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or related agreement or any document furnished hereunder or thereunder.  Except for notices, reports and other documents expressly required to be furnished to the Lenders by the Administrative Agent herein, the Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of any of the Loan Parties or any of their respective Affiliates which may come into the possession of the Administrative Agent or any of its Related Parties.

 

Notwithstanding anything to the contrary herein, the Arrangers shall not have any right, power, obligation, liability, responsibility or duty under this Agreement, except in their respective capacities, as applicable, as the Administrative Agent or a Lender hereunder.

 

Each Lender irrevocably authorizes and instructs the Administrative Agent to, and the Administrative Agent shall (in the case of clauses (c) and (d), promptly after the reasonable request of the Borrower),

 

(a)                                 release any Lien on any property granted to or held by Administrative Agent under any Loan Document (i) upon the occurrence of the Termination Date, (ii) that is sold or to be sold or transferred as part of or in connection with any Disposition permitted under the Loan Documents to a

 

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Person that is not a Loan Party, (iii) constitutes (or becomes) an “Excluded Asset” (iv) if the property subject to such Lien is owned by a Subsidiary Guarantor, upon the release of such Subsidiary Guarantor from its Loan Guaranty otherwise in accordance with the Loan Documents, (v) as required under clause (d) below or (vi) if approved, authorized or ratified in writing by the Required Lenders in accordance with Section 9.02;

 

(b)                                 release any Subsidiary Guarantor from its obligations under the Loan Guaranty if such Person ceases to be a Restricted Subsidiary (or becomes an Excluded Subsidiary (other than pursuant to clause (a) of the definition thereof)) as a result of a single transaction or series of related transactions permitted hereunder;

 

(c)                                  subordinate any Lien on any property granted to or held by the Administrative Agent under any Loan Document to the holder of any Lien on such property that is permitted by Sections 6.02(d), 6.02(e), 6.02(g), 6.02(m), 6.02(o), 6.02(p), 6.02(y), 6.02(w), 6.02(x)(i), 6.02(z), 6.02(aa) and 6.02(cc) (and Liens securing Refinancing Indebtedness in respect of any thereof incurred in reliance on Section 6.02(k)); and

 

(d)                                 enter into subordination, intercreditor and/or similar agreements with respect to Indebtedness (including any Acceptable Intercreditor Agreement) that is (i) required or permitted to be subordinated hereunder and/or (ii) secured by Liens, and with respect to which Indebtedness, this Agreement contemplates an intercreditor, subordination, collateral trust agreement or similar agreement.

 

provided, that any documentation contemplated by clauses (c) and/or (d) above shall be reasonably satisfactory to the Administrative Agent (it being understood and agreed that any such documentation that is on current market terms shall be deemed to be satisfactory to the Administrative Agent).

 

Upon the request of the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Loan Party from its obligations under the Loan Guaranty pursuant to this Article 8.  In each case as specified in this Article 8, the Administrative Agent will (and each Lender hereby authorizes the Administrative Agent to), at the Borrower’ expense, execute and deliver to the applicable Loan Party such documents as such Loan Party may reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted under the Collateral Documents or to subordinate its interest therein, or to release such Loan Party from its obligations under the Loan Guaranty, in each case in accordance with the terms of the Loan Documents and this Article 8.

 

The Administrative Agent is authorized to enter into the Intercreditor Agreement and any other Acceptable Intercreditor Agreement, any other intercreditor agreement, collateral trust or similar agreement contemplated hereby with respect to any (a) Indebtedness (i) that is (A) required or permitted to be subordinated hereunder and/or (B) secured by Liens and which contemplates an intercreditor, subordination or collateral trust agreement and/or (b) Secured Hedging Obligations and/or Secured Banking Services Obligations, whether or not constituting Indebtedness (any such other intercreditor agreement, an “Additional Agreement”) and the Secured Parties party hereto acknowledge that the Intercreditor Agreement and any Additional Agreement is binding upon them.  Each Secured Party party hereto (a)  agrees that it will be bound by, and will not take any action contrary to, the provisions of the Intercreditor Agreement and/or any Additional Agreement and (b)  authorizes and instructs the Administrative Agent to enter into the Intercreditor Agreement and/or any Additional Agreement and to subject the Liens on the Collateral securing the Secured Obligations to the provisions thereof.  The foregoing provisions are intended as an inducement to the Secured Parties to extend credit to the Borrower, and the Secured Parties are intended third-party beneficiaries of such provisions and the provisions of the Intercreditor Agreement and/or any Additional Agreement.

 

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To the extent that the Administrative Agent (or any Affiliate thereof) is not reimbursed and indemnified by the Borrower in accordance with and to the extent required by Section 9.03(b), the Lenders will reimburse and indemnify the Administrative Agent (and any Affiliate thereof) in proportion to their respective Applicable Percentages (determined as if there were no Defaulting Lenders) for and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, judgments, costs, expenses or disbursements of whatsoever kind or nature which may be imposed on, asserted against or incurred by the Administrative Agent (or any Affiliate thereof) in performing its duties hereunder or under any other Loan Document or in any way relating to or arising out of this Agreement or any other Loan Document; provided that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, claims, actions, judgments, suits, costs, expenses or disbursements resulting from the Administrative Agent’s (or such affiliate’s) gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision).

 

Each counterparty to a Hedge Agreement that constitutes a Secured Hedging Obligation and each provider of Banking Services that constitutes Banking Services Obligations acknowledges and agrees that neither the Administrative Agent nor any Lender owes such Person, solely by virtue of its interest in Banking Services Obligations and Hedging Obligations, any duty under the Loan Documents (except that any payments in respect of the Obligations and proceeds of Collateral, in each case received by the Administrative Agent, shall be applied as provided in Section 2.15(b)) and such Person, solely by virtue of its interest in such Hedging Obligations, has no voting or consent rights under the Loan Documents (including Section 9.02).  The Administrative Agent shall be entitled to assume no amounts are due or owing in respect of Banking Services Obligations and Hedging Obligations to any Person with an interest in any Banking Services Obligations and Hedging Obligations unless such Person has provided a written certification (setting forth a reasonably detailed calculation) to the Administrative Agent as to the amounts that are due and owing to it and such written certification is received by the Administrative Agent a reasonable period of time prior to the making of any distribution pursuant to Section 2.15(b).  The Administrative Agent shall have no obligation to calculate the amount due and payable with respect to any Banking Services Obligations and Hedging Obligations, but may rely upon the written certification of the amount due and payable from the applicable counterparty to a Hedge Agreement that constitutes a Secured Hedging Obligation or the applicable provider of Banking Services that constitutes Banking Services Obligations, as the case may be.  In the absence of an updated certification, the Administrative Agent shall be entitled to assume that the amount due and payable to such Person is the amount last certified to the Administrative Agent by such Person as being due and payable (less any distributions made by the Administrative Agent to such Person on account thereof).

 

ARTICLE 9                              MISCELLANEOUS

 

Section 9.01                   Notices.

 

(a)                                 Except in the case of notices and other communications expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile or email, as follows:

 

(i)                         if to any Loan Party, to such Loan Party in the care of the Borrower at:

 

	
Daseke, Inc.
    
	
15455 Dallas Parkway, Suite 440
    
	
Addison, Texas 75001
    
	
Attn: Don R. Daseke
    
	
Tel.: (972) 248-1322
    

 

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Fax: (972) 248-0942
    	
 
    
	
Email: don@daseke.com
    	
 
    
	
 
    	
 
    
	
with copy to:
    	
 
    
	
 
    	
 
    
	
Daseke, Inc.
    	
 
    
	
15455 Dallas Parkway, Suite 440
    	
 
    
	
Addison, Texas 75001
    	
 
    
	
Attn: Scott Wheeler
    	
 
    
	
Tel.: (214) 751-8989
    	
 
    
	
Fax: (972) 248-0942
    	
 
    
	
Email: scott@daseke.com
    	
 
    
	
 
    	
 
    
	
with additional copy to (which shall not constitute   notice to any Loan Party):
    
	
 
    	
 
    
	
Vinson & Elkins LLP
    	
 
    
	
2001 Ross Avenue, Suite 3700
    	
 
    
	
Dallas, Texas 75201
    	
 
    
	
Attn: Christopher Dawe
    	
 
    
	
Tel.: (214) 220-7837
    	
 
    
	
Fax: (214) 999-7837
    	
 
    
	
Email: cdawe@velaw.com
    	
 
    
	
 
    	
 
    
	
(ii)    if   to the Administrative Agent, at:
    	
 
    
	
 
    	
 
    
	
Credit Suisse AG, Cayman Islands Branch
    	
 
    
	
Eleven Madison Avenue., 9th Floor
    	
 
    
	
New York, NY 10010
    	
 
    
	
Tel.: 919-994-6369
    	
 
    
	
Attn: Loan Operations — Agency Manager
    	
 
    
	
Fax: 212-322-2291
    	
 
    
	
Email: agency.loanops@credit-suisse.com
    	
 
    
	
 
    	
 
    
	
with copy to (which shall not constitute notice to any Loan Party):
    	
 
    
	
 
    	
 
    
	
Davis Polk & Wardwell, LLP
    	
 
    
	
450 Lexington Avenue
    	
 
    
	
New York, NY 10017
    	
 
    
	
Attn: Jason Kyrwood
    	
 
    
	
Tel.: (212) 450-4653
    	
 
    
	
Fax: (212) 701-5653
    	
 
    
	
Email: jason.kyrwood@davispolk.com
    	
 
    

 

(iii)                   if to any Lender, to it at its address or facsimile number set forth in its Administrative Questionnaire.

 

All such notices and other communications (A) sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when delivered in person or by courier service and signed for against receipt thereof or three Business Days after dispatch if sent by certified or registered mail, in each case, delivered, sent or mailed (properly addressed) to the relevant party as provided in this Section 9.01 or in accordance with the latest unrevoked direction from such party given

 

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in accordance with this Section 9.01 or (B) sent by facsimile shall be deemed to have been given when sent and when receipt has been confirmed by telephone; provided that notices and other communications sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, such notices or other communications shall be deemed to have been given at the opening of business on the next Business Day for the recipient).  Notices and other communications delivered through electronic communications to the extent provided in clause (b) below shall be effective as provided in such clause (b).

 

(b)                                 Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications (including e-mail and Internet or Intranet websites) pursuant to procedures set forth herein or otherwise approved by the Administrative Agent.  The Administrative Agent or the Borrower (on behalf of any Loan Party) may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures set forth herein or otherwise approved by it; provided that approval of such procedures may be limited to particular notices or communications.  All such notices and other communications (i) sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement); provided that any such notice or communication not given during the normal business hours of the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient, and (ii) posted to an Internet or Intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (b)(i) of notification that such notice or communication is available and identifying the website address therefor.

 

(c)                                  Any party hereto may change its address or facsimile number for notices and other communications hereunder by written notice to the other parties hereto.

 

Section 9.02                   Waivers; Amendments.

 

(a)                                 No failure or delay by the Administrative Agent or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent and the Lenders hereunder and under any other Loan Document are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of any Loan Document or consent to any departure by any party hereto therefrom shall in any event be effective unless the same is permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  Without limiting the generality of the foregoing, to the extent permitted by applicable Requirements of Law, the making of any Loan shall not be construed as a waiver of any Default or Event of Default, regardless of whether the Administrative Agent or any Lender may have had notice or knowledge of such Default or Event of Default at the time.

 

(b)                                 Subject to clauses (A) and (B) of this Section 9.02(b) and Sections 9.02(c) and (d) below, neither this Agreement nor any other Loan Document nor any provision hereof or thereof may be waived, amended or modified, except (i) in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders (or the Administrative Agent with the consent of the Required Lenders) or (ii) in the case of any other Loan Document (other than any waiver, amendment or modification to effectuate any modification thereto expressly contemplated by the terms of such other Loan Document), pursuant to an agreement or agreements in writing entered into by the Administrative Agent and each Loan Party that is party thereto, with the consent of the Required Lenders; provided that, notwithstanding the foregoing:

 

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(A)                               the consent of each Lender directly and adversely affected thereby shall be required for any waiver, amendment or modification that:

 

(1)                                 increases the Commitment of such Lender (other than with respect to any Incremental Facility pursuant to Section 2.10 in respect of which such Lender has agreed to be an Additional Lender); it being understood that no amendment, modification or waiver of, or consent to departure from, any condition precedent, representation or warranty, covenant, Default, Event of Default, mandatory prepayment or mandatory reduction of the Commitments shall constitute an increase of any Commitment of such Lender;

 

(2)                                 reduces the principal amount of any Loan owed to such Lender or any amount due to such Lender on any Loan Installment Date;

 

(3)                                 (x) extends the scheduled final maturity of any Loan or (y) postpones any Loan Installment Date or any Interest Payment Date with respect to Loans held by such Lender or the date of any scheduled payment of any fee payable to such Lender hereunder;

 

(4)                                 reduces the rate of interest (other than to waive any Default or Event of Default or any obligation of the Borrower to pay interest to such Lender at the default rate of interest under Section 2.04(d), which shall only require the consent of the Required Lenders) or the amount of any fee owed to such Lender; it being understood that no change in the definition of “First Lien Leverage Ratio”, “Total Leverage Ratio”, “Secured Leverage Ratio” or any other ratio used in the calculation of any interest or fee due hereunder (including any component definition thereof) shall constitute a reduction in any rate of interest or fee hereunder;

 

(5)                                 extends the expiry date of such Lender’s Commitment; it being understood that no amendment, modification or waiver of, or consent to departure from, any condition precedent, representation, warranty, covenant, Default, Event of Default, mandatory prepayment or mandatory reduction of any Commitment shall constitute an extension of any Commitment of any Lender; and

 

(6)                                 waives, amends or modifies the provisions of Sections 2.15(b) or 2.15(c) of this Agreement in a manner that would by its terms alter the pro rata sharing of payments required thereby (except in connection with any transaction permitted under Sections 2.19, 2.20, 9.02(c) and/or 9.05(g) or as otherwise provided in this Section 9.02);

 

(B)                               no such agreement shall:

 

(1)                                 change any of the provisions of Section 9.02(a) or (b) or the definition of “Required Lenders” or “Required Delayed Draw Term Lenders” to reduce any voting percentage required to waive, amend or modify any right thereunder or make any determination or grant any consent thereunder, without the prior written consent of each Lender;

 

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(2)           release all or substantially all of the Collateral from the Lien granted pursuant to the Loan Documents (except as otherwise permitted herein or in the other Loan Documents, including pursuant to Article 8 or Section 9.21 hereof), without the prior written consent of each Lender; or

 

(3)           release all or substantially all of the value of the Guarantees under the Loan Guaranty (except as otherwise permitted herein or in the other Loan Documents, including pursuant to Section 9.18 hereof), without the prior written consent of each Lender;

 

(C)          Only the consent of the Borrower and the Required Delayed Draw Term Lenders shall be necessary to amend, waive or modify the terms and provisions of Section 4.02;

 

provided, further, that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent hereunder in a manner directly and adversely affecting such Person, without the prior written consent of the Administrative Agent.

 

(c)           Notwithstanding the foregoing, this Agreement may be amended with the written consent of the Borrower and the Lenders providing the relevant Replacement Term Loans to permit the refinancing or replacement of all or any portion of the outstanding Term Loans under any Class (any such loans being refinanced or replaced, the “Replaced Term Loans”) with one or more replacement term loans hereunder (“Replacement Term Loans”) pursuant to a Refinancing Amendment; provided that

 

(i)        the aggregate principal amount of any Replacement Term Loans shall not exceed the aggregate principal amount of the Replaced Term Loans (plus (1) any additional amounts permitted to be incurred under Section 6.01(a), (o), (q) and/or (s) and, to the extent any such additional amounts are secured, the related Liens are permitted under Section 6.02(k) (with respect to Liens securing Indebtedness permitted by Section 6.01(a), (o), (q) and/or (s)) plus (2) the amount of accrued interest and premium (including tender premium) thereon and underwriting discounts, fees (including upfront fees and original issue discount), commissions and expenses associated therewith),

 

(ii)       any Replacement Term Loans must have a final maturity date that is equal to or later than the final maturity date of, and have a Weighted Average Life to Maturity that is equal to or greater than the Weighted Average Life to Maturity of, the relevant Replaced Term Loans at the time of the relevant refinancing,

 

(iii)      any Replacement Term Loans may be pari passu with or junior to any then-existing Term Loans in right of payment and pari passu with or junior to such Term Loans with respect to the Collateral (provided that any Replacement Term Loans that are pari passu with or junior to any then-existing Term Loans shall be subject to an Acceptable Intercreditor Agreement and may be, at the option of the Administrative Agent and the Borrower, documented in a separate agreement or agreements), or be unsecured,

 

(iv)      any Replacement Term Loans that are secured may not be secured by any assets other than the Collateral,

 

(v)       any Replacement Term Loans that are guaranteed may not be guaranteed by any Person other than the Loan Parties,

 

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(vi)      any Replacement Term Loans may not participate on a greater than pro rata basis in any voluntary or mandatory repayment or prepayment in respect of the Term Loans (and any Additional Term Loans then subject to ratable repayment requirements),

 

(vii)     any Replacement Term Loans may have pricing (including interest, fees and premiums) and, subject to preceding clause (F), optional prepayment and redemption terms as may be agreed by the Borrower and the lenders providing such Replacement Term Loans, and

 

(viii)    either (i) the other terms and conditions of any Replacement Term Loans (excluding pricing, interest, fees, rate floors, premiums, optional prepayment or redemption terms, security and maturity, subject to preceding clauses (B) through (G)) are substantially identical to, or (taken as a whole) no more favorable (as reasonably determined by the Borrower) to the lenders providing such Replacement Term Loans than those applicable to the relevant Replaced Term Loans (other than covenants or other provisions applicable only to periods after the Latest Term Loan Maturity Date (in each case, as of the date of incurrence of such Replacement Term Loans)) or (ii) such Replacement Term Loans are provided on then-current market terms (as reasonably determined by the Borrower) for the applicable type of Indebtedness.

 

(d)           Notwithstanding anything to the contrary contained in this Section 9.02 or any other provision of this Agreement or any provision of any other Loan Document:

 

(i)        the Borrower and the Administrative Agent may, without the input or consent of any Lender, amend, supplement and/or waive any guaranty, collateral security agreement, pledge agreement and/or related document (if any) executed in connection with this Agreement to (A) comply with any Requirement of Law or the advice of counsel or (B) cause any such guaranty, collateral security agreement, pledge agreement or other document to be consistent with this Agreement and/or the relevant other Loan Documents,

 

(ii)       the Borrower and the Administrative Agent may, without the input or consent of any other Lender (other than the relevant Lenders (including Additional Lenders) providing Loans under such Sections), effect amendments to this Agreement and the other Loan Documents as may be necessary in the reasonable opinion of the Borrower and the Administrative Agent to (1) effect the provisions of Sections 2.19, 2.20, 5.12, 6.13(i) or 9.02(c), or any other provision specifying that any waiver, amendment or modification may be made with the consent or approval of the Administrative Agent and/or (2) to add terms (including representations and warranties, conditions, prepayments, covenants or events of default), in connection with the addition of any Loan or Commitment hereunder, that are favorable to the then-existing Lenders, as reasonably determined by the Administrative Agent,

 

(iii)      the Administrative Agent and the Borrower may amend, restate, amend and restate or otherwise modify the Intercreditor Agreement and/or any other Intercreditor Agreement, as provided therein, in connection with a transaction permitted hereunder,

 

(iv)      the Administrative Agent may amend the Commitment Schedule to reflect assignments entered into pursuant to Section 9.05, Commitment reductions or terminations pursuant to Section 2.06, implementations of Additional Term Loan Commitments or incurrences of Additional Term Loans pursuant to Sections 2.19, 2.20 or 9.02(c) and reductions or terminations of any such Additional Term Loan Commitments or Additional Term Loans,

 

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(v)       no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except as permitted pursuant to Section 2.18 and except that the Commitment and any Additional Commitment of any Defaulting Lender may not be increased without the consent of such Defaulting Lender (it being understood that any Commitment or Loan held or deemed held by any Defaulting Lender shall be excluded from any vote hereunder that requires the consent of any Lender, except as expressly provided in Section 2.18),

 

(vi)      this Agreement may be amended (or amended and restated) with the written consent of the Required Lenders, the Administrative Agent and the Borrower (i) to add one or more additional credit facilities to this Agreement and to permit any extension of credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the relevant benefits of this Agreement and the other Loan Documents and (ii) to include appropriately the Lenders holding such credit facilities in any determination of the Required Lenders on substantially the same basis as the Lenders prior to such inclusion; and

 

(vii)     this Agreement and any other Loan Document may be amended solely with the consent of the Administrative Agent and the Borrower without the need to obtain the consent of any other Lender if such amendment is delivered in order to implement the “market flex” provisions set forth in the Fee Letter; provided however, that notwithstanding the foregoing or any other provision hereof, if the Borrower shall fail to execute any amendment that the Requisite Lead Arrangers (as defined in the Fee Letter) reasonably determine to be necessary to effect the changes contemplated by the Flex Provisions (as defined in the Fee Letter) within three Business Days from the date of delivery to the Borrower of a draft thereof, then the Administrative Agent is and shall be authorized to execute such amendment on behalf of the Borrower and such amendment shall become effective without further action by any Person.

 

Section 9.03          Expenses; Indemnity.

 

(a)           The Borrower shall pay (i) all reasonable and documented out-of-pocket expenses incurred by each Arranger, the Administrative Agent and their respective Affiliates (but limited, in the case of legal fees and expenses, to the actual reasonable and documented out-of-pocket fees, disbursements and other charges of one firm of outside counsel to all such Persons taken as a whole and, if necessary, of one local counsel in any relevant jurisdiction to all such Persons, taken as a whole) in connection with the syndication and distribution (including via the Internet or through a service such as Intralinks) of the Term Facility, the preparation, execution, delivery and administration of the Loan Documents and any related documentation, including in connection with any amendment, modification or waiver of any provision of any Loan Document (whether or not the transactions contemplated thereby are consummated) and (ii) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent, the Arrangers or the Lenders or any of their respective Affiliates (but limited, in the case of legal fees and expenses, to the actual reasonable and documented out-of-pocket fees, disbursements and other charges of one firm of outside counsel to all such Persons taken as a whole and, if necessary, of one local counsel in any relevant jurisdiction to all such Persons, taken as a whole) in connection with the enforcement, collection or protection of their respective rights in connection with the Loan Documents, including their respective rights under this Section, or in connection with the Loans made hereunder.  Other than to the extent required to be paid on the Closing Date, all amounts due under this paragraph (a) shall be payable by the Borrower within 30 days of receipt of an invoice setting forth such expenses in reasonable detail.

 

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(b)           The Borrower shall indemnify each Arranger, the Administrative Agent, each Lender, and each Related Party of any of the foregoing Persons, in each case, other than Disqualified Institutions (each such Person, together with their successors and assigns, an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages and liabilities to which such Indemnitee may become subject arising out of or in connection with (i) the preparation, execution, delivery or administration of the Loan Documents or any agreement or instrument contemplated thereby or the syndication of the Term Facility, the performance by the parties hereto of their respective obligations thereunder or the consummation of the Transactions or any other transactions contemplated hereby or thereby, (ii) the use of the proceeds of the Loans or (iii) any actual or alleged presence or Release of Hazardous Materials at, on, under or from any currently or formerly owned, leased or operated real property or facility, or any Environmental Liability or Environmental Claim related in any way to any Loan Party or any of their respective subsidiaries or (iv) any claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto (a “Proceeding”), regardless of whether such matter is initiated by a third party or by the Borrower, any other Loan Party or any of their respective Affiliates, and to reimburse each Indemnitee within 30 days following written demand therefor (together with customary backup documentation in reasonable detail supporting such reimbursement request) for any reasonable and documented legal or other out-of-pocket expenses incurred in connection with investigating or defending a Proceeding (but limited, in the case of legal fees and expenses, to the actual reasonable and documented out-of-pocket fees, disbursements and other charges of one counsel to all Indemnitees taken as a whole and, if reasonably necessary, one local counsel in any relevant jurisdiction to all Indemnitees, taken as a whole and solely in the case of an actual or perceived conflict of interest where an Indemnitee informs the Borrower of such conflict, (x) one additional counsel to all affected Indemnitees, taken as a whole, and (y) one additional local counsel to all affected Indemnitees, taken as a whole), incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that any such loss, claim, damage, or liability (i) is determined by a final and non-appealable judgment of a court of competent jurisdiction to have resulted from the gross negligence, bad faith or willful misconduct of such Indemnitee or, to the extent such judgment finds that any such loss, claim, damage, or liability has resulted from such Person’s material breach of the Loan Documents or (ii) arises out of any claim, litigation, investigation or proceeding brought by such Indemnitee solely against one or more other Indemnitees (other than any claim, litigation, investigation or proceeding that is brought by or against the Administrative Agent or any Arranger, acting in its capacity as the Administrative Agent or an Arranger) that does not involve any act or omission of Holdings, the Borrower or any of their respective subsidiaries. All amounts due under this paragraph (b) shall be payable by the Borrower within 30 days (x) after written demand therefor, in the case of any indemnification obligations and (y) in the case of reimbursement of costs and expenses, after receipt by the Borrower of an invoice setting forth such costs and expenses in reasonable detail, together with customary backup documentation supporting the relevant reimbursement request.  This Section 9.03(b) shall not apply to Taxes other than any Taxes that represent losses, claims, damages or liabilities in respect of a non-Tax claim.

 

(c)           The Borrower shall not be liable for any settlement of any proceeding effected without its written consent (which consent shall not be unreasonably withheld or delayed), but if any proceeding is settled with the written consent of the Borrower, or if there is a final judgment against any Indemnitee in any such proceeding, the Borrower agrees to indemnify and hold harmless each Indemnitee to the extent and in the manner set forth above.  No Borrower shall, without the prior written consent of the affected Indemnitee (which consent shall not be unreasonably withheld or delayed), effect any settlement of any pending or threatened proceeding in respect of which indemnity could have been sought hereunder by such Indemnitee unless (i) such settlement includes an unconditional release of such Indemnitee from all liability or claims that are the subject matter of such proceeding and (ii) such settlement does not include any statement as to any admission of fault or culpability.

 

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Section 9.04          Waiver of Claim.  To the extent permitted by applicable Requirements of Law, no party to this Agreement shall assert, and each hereby waives, any claim against any other party hereto, any Loan Party and/or any Related Party of any thereof, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement or any agreement or instrument contemplated hereby, the Transactions, any Loan or the use of the proceeds thereof, except, in the case of any claim by any Indemnitee against the Borrower, to the extent such damages would otherwise be subject to indemnification pursuant to the terms of Section 9.03.

 

Section 9.05          Successors and Assigns.

 

(a)           The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns; provided that (i) except as provided under Section 6.07, the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with the terms of this Section 9.05 (any attempted assignment or transfer not complying with the terms of this Section 9.05 shall be null and void except as otherwise provided herein).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and permitted assigns, to the extent provided in paragraph (e) of this Section, Participants and, to the extent expressly contemplated hereby, the Related Parties of each of the Arrangers, the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

(b)           (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of any Loan or Additional Term Loan Commitment added pursuant to Sections 2.19, 2.20 or 9.02(c) at the time owing to it) with the prior written consent of:

 

(A)          the Borrower (such consent not to be unreasonably withheld); provided, that the Borrower shall be deemed to have consented to any such assignment unless it has objected thereto by written notice to the Administrative Agent within 15 Business Days after receipt of written notice thereof provided, further, that the Borrower’s consent shall not be required for any assignment (1) to any Term Lender or any Affiliate of any Term Lender or an Approved Fund or (2) at any time when an Event of Default under Section 7.01(f) or (g) (with respect to the Borrower) exists; and

 

(B)          the Administrative Agent (not to be unreasonably withheld or delayed); provided, that no consent of the Administrative Agent shall be required for any assignment to another Lender, any Affiliate of a Lender, an Arranger, any Affiliate of an Arranger, or any Approved Fund.

 

(ii)       Assignments shall be subject to the following additional conditions:

 

(A)          except in the case of any assignment to another Lender, any Affiliate of any Lender or any Approved Fund or any assignment of the entire remaining amount of the relevant assigning Lender’s Loans or Commitments of any Class, the principal amount of Loans or Commitments of the assigning Lender subject to the relevant assignment (determined as of the date on which the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent and determined on an aggregate basis in the event of concurrent assignments to Related Funds or by

 

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Related Funds) shall not be less than $1,000,000, unless the Borrower and the Administrative Agent otherwise consent;

 

(B)          any partial assignment shall be made as an assignment of a proportionate part of all the relevant assigning Lender’s rights and obligations under this Agreement;

 

(C)          the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption via an electronic settlement system acceptable to the Administrative Agent (or, if previously agreed with the Administrative Agent, manually), and shall pay to the Administrative Agent a processing and recordation fee of $3,500 (which fee may be waived or reduced in the sole discretion of the Administrative Agent); and

 

(D)          the relevant Eligible Assignee, if it is not a Lender, shall deliver on or prior to the effective date of such assignment, to the Administrative Agent (1) an Administrative Questionnaire and (2) any Internal Revenue Service form or other document required under Section 2.14.

 

(iii)      Subject to the acceptance and recording thereof pursuant to paragraph (b)(iv) of this Section, from and after the effective date specified in any Assignment and Assumption, the Eligible Assignee thereunder shall be a party hereto and, to the extent of the interest assigned pursuant to such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be (A) entitled to the benefits of Sections 2.12, 2.13, 2.14 and 9.03 with respect to facts and circumstances occurring on or prior to the effective date of such assignment and (B) subject to its obligations thereunder and under Section 9.13).  If any assignment by any Lender holding any Promissory Note is made after the issuance of such Promissory Note, the assigning Lender shall, upon the effectiveness of such assignment or as promptly thereafter as practicable, surrender such Promissory Note to the Administrative Agent for cancellation, and, following such cancellation, if requested by either the assignee or the assigning Lender, the Borrower shall issue and deliver a new Promissory Note to such assignee and/or to such assigning Lender, with appropriate insertions, to reflect the new commitments and/or outstanding Loans of the assignee and/or the assigning Lender.

 

(iv)      The Administrative Agent, acting for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders and their respective successors and assigns, and the commitment of, and principal amount of and interest on the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  Failure to make any such recordation, or any error in such recordation, shall not affect the Borrower’s obligations in respect of such Loans.  The entries in the Register shall be conclusive, absent manifest error, and the Borrower, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Borrower and each Lender (but only as to its own holdings), at any reasonable time and from time to time upon reasonable prior notice.

 

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(v)       Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an Eligible Assignee, the Eligible Assignee’s completed Administrative Questionnaire and any tax certification required by Section 9.05(b)(ii)(D)(2) (unless the assignee is already a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section, if applicable, and any written consent to the relevant assignment required by paragraph (b) of this Section, the Administrative Agent shall promptly accept such Assignment and Assumption and record the information contained therein in the Register.  No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph.

 

(vi)      By executing and delivering an Assignment and Assumption, the assigning Lender and the Eligible Assignee thereunder shall be deemed to confirm and agree with each other and the other parties hereto as follows: (A) the assigning Lender warrants that it is the legal and beneficial owner of the interest being assigned thereby free and clear of any adverse claim and that the amount of its commitments, and the outstanding balances of its Loans, in each case without giving effect to any assignment thereof which has not become effective, are as set forth in such Assignment and Assumption, (B) except as set forth in clause (A) above, the assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statement, warranty or representation made in or in connection with this Agreement, or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement, any other Loan Document or any other instrument or document furnished pursuant hereto, or the financial condition of the Borrower or any Restricted Subsidiary or the performance or observance by the Borrower or any Restricted Subsidiary of any of its obligations under this Agreement, any other Loan Document or any other instrument or document furnished pursuant hereto; (C) such assignee represents and warrants that it is an Eligible Assignee, legally authorized to enter into such Assignment and Assumption; (D) the assignee confirms that it has received a copy of this Agreement and the Intercreditor Agreement, together with copies of the most recent financial statements referred to in Section 4.01(c) or the most recent financial statements delivered pursuant to Section 5.01 and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and Assumption; (E) the assignee will independently and without reliance upon the Administrative Agent, the assigning Lender or any other Lender and based on such documents and information as it deems appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement; (F) the assignee appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers under this Agreement as are delegated to the Administrative Agent, by the terms hereof, together with such powers as are reasonably incidental thereto; and (G) the assignee agrees that it will perform in accordance with their terms all the obligations which by the terms of this Agreement are required to be performed by it as a Lender.

 

(c)           (i) Any Lender may, without the consent of the Borrower, the Administrative Agent or any other Lender, sell participations to any bank or other entity (other than to any Disqualified Institution, any natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person)  as if the limitation applied to such participations), the Borrower or any of its Affiliates) (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its commitments and the Loans owing to it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) the Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.

 

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Any agreement or instrument pursuant to which any Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the relevant Participant, agree to any amendment, modification or waiver described in (x) clause (A) of the first proviso to Section 9.02(b) that directly and adversely affects the Loans or commitments in which such Participant has an interest and (y) clauses (B)(1), (2) or (3) of the first proviso to Section 9.02(b).  Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.12, 2.13 and 2.14 (subject to the limitations and requirements of such Sections and Section 2.16) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section (it being understood that the documentation required under Section 2.14(f) shall be delivered to the participating Lender).  To the extent permitted by applicable Requirements of Law, each Participant also shall be entitled to the benefits of Section 9.09 as though it were a Lender; provided that such Participant shall be subject to Section 2.15(c) as though it were a Lender.

 

(ii)       No Participant shall be entitled to receive any greater payment under Section 2.12, 2.13 or 2.14 than the participating Lender would have been entitled to receive with respect to the participation sold to such Participant, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after such Participant acquired the applicable participation.

 

(iii)      Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and their respective successors and registered assigns, and the principal and interest amounts of each Participant’s interest in the Loans or other obligations under the Loan Documents (a “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and each Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

 

(d)           Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (other than to any Disqualified Institution or any natural Person, or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person) to secure obligations of such Lender, including without limitation any pledge or assignment to secure obligations to any Federal Reserve Bank or other central bank having jurisdiction over such Lender, and this Section 9.05 shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release any Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

(e)           Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding vehicle (an “SPC”), identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower, the option to provide to the Borrower all or any part of any Loan that such Granting Lender would otherwise

 

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be obligated to make to the Borrower pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any SPC to make any Loan, (ii) if an SPC elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof and (iii) in no event may any Lender grant any option to provide the Borrower all or any part of any Loan that such Granting Lender would have otherwise been obligated to make to the Borrower pursuant to this Agreement to any Disqualified Institution.  The making of any Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender.  Each party hereto hereby agrees that (i) neither the grant to any SPC nor the exercise by any SPC of such option shall increase the costs or expenses or otherwise increase or change the obligations of the Borrower under this Agreement (including its obligations under Section 2.12, 2.13 or 2.14) and no SPC shall be entitled to any greater amount under Section 2.10, 2.13 or 2.14 or any other provision of this Agreement or any other Loan Document that the Granting Lender would have been entitled to receive, (ii) no SPC shall be liable for any indemnity or similar payment obligation under this Agreement (all liability for which shall remain with the Granting Lender) and (iii) the Granting Lender shall for all purposes including approval of any amendment, waiver or other modification of any provision of the Loan Documents, remain the Lender of record hereunder.  In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior indebtedness of any SPC, it will not institute against, or join any other Person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the Requirements of Law of the U.S. or any State thereof; provided that (i) such SPC’s Granting Lender is in compliance in all material respects with its obligations to the Borrower hereunder and (ii) each Lender designating any SPC hereby agrees to indemnify, save and hold harmless each other party hereto for any loss, cost, damage or expense arising out of its inability to institute such a proceeding against such SPC during such period of forbearance.  In addition, notwithstanding anything to the contrary contained in this Section 9.05, any SPC may (i) with notice to, but without the prior written consent of, the Borrower or the Administrative Agent and without paying any processing fee therefor, assign all or a portion of its interests in any Loan to the Granting Lender and (ii) disclose on a confidential basis any non-public information relating to its Loans to any rating agency, commercial paper dealer or provider of any surety, guaranty or credit or liquidity enhancement to such SPC.

 

(f)            (i)            Upon the request of any Lender, the Borrower shall make available to such Lender the list of Disqualified Institutions (other than Affiliates identifiable solely on the basis of their name referred to in the definition of “Disqualified Institutions”) at the relevant time and such Lender may provide the list to any potential assignee or participant on a confidential basis in accordance with Section 9.13 hereof for the purpose of verifying whether such Person is a Disqualified Institution.

 

(ii)           If any assignment or participation under this Section 9.05 is made to any Disqualified Institution without the Borrower’s prior written consent (any such person, a “Disqualified Person”), then, such assignment or participation shall not be null and void, but the Borrower may, at its sole expense and effort, upon notice to the applicable Disqualified Person and the Administrative Agent, (A) terminate any Commitment of such Disqualified Person and repay all obligations of the Borrower owing to such Disqualified Person, (B) in the case of any outstanding Term Loans, held by such Disqualified Person, purchase such Term Loans by paying the lesser of (x) par and (y) the amount that such Disqualified Person paid to acquire such Term Loans, plus accrued interest thereon, accrued fees and all other amounts payable to it hereunder and/or (C) require such Disqualified Person to assign, without recourse (in accordance with and subject to the restrictions contained in this Section 9.05), all of its interests, rights and obligations under this Agreement to one or more Eligible Assignees; provided, that (I) in the case of clause (B), the applicable Disqualified Person has received

 

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payment of an amount equal to the lesser of (1) par and (2) the amount that such Disqualified Person paid for the applicable Loans, plus accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the Borrower, (II) in the case of clauses (A) and (B), the Borrower shall be liable to the relevant Disqualified Person under Section 2.13 if any Eurocurrency Rate Loan owing to such Disqualified Person is repaid or purchased other than on the last day of the Interest Period relating thereto and (III) in the case of clause (C), the relevant assignment shall otherwise comply with this Section 9.05 (except that no registration and processing fee required under this Section 9.05 shall be required with any assignment pursuant to this paragraph). Nothing in this Section 9.05(f) shall be deemed to prejudice any right or remedy that Holdings or the Borrower may otherwise have at law or equity.

 

(iii)      Notwithstanding anything to the contrary contained in this Agreement, Disqualified Persons (A) will not (x) have the right to receive information, reports or other materials provided to Lenders by the Borrower, the Administrative Agent or any other Lender, (y) attend or participate in meetings attended by the Lenders and the Administrative Agent, or (z) access any electronic site established for the Lenders or confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders and (B) (x) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) under this Agreement or any other Loan Document, each Disqualified Institution will be deemed to have consented in the same proportion as the Lenders that are not Disqualified Institutions consented to such matter, and (y) for purposes of voting on any Bankruptcy Plan, each Disqualified Institution party hereto hereby agrees (1) not to vote on such Bankruptcy Plan, (2) if such Disqualified Institution does vote on such Bankruptcy Plan notwithstanding the restriction in the foregoing clause (1), such vote will be deemed not to be in good faith and shall be “designated” pursuant to Section 1126(e) of the Bankruptcy Code (or any similar provision in any other Debtor Relief Laws), and such vote shall not be counted in determining whether the applicable class has accepted or rejected such Bankruptcy Plan in accordance with Section 1126(c) of the Bankruptcy Code (or any similar provision in any other Debtor Relief Laws) and (3) not to contest any request by any party for a determination by the Bankruptcy Court (or other applicable court of competent jurisdiction) effectuating the foregoing clause (2).

 

(g)           Notwithstanding anything to the contrary contained herein, any Lender may, at any time, assign all or a portion of its rights and obligations under this Agreement in respect of its Term Loans to any Affiliated Lender, Holdings, the Borrower, as any Subsidiary of the Borrower, on a non-pro rata basis (A) through Dutch Auctions open to all Lenders holding the relevant Term Loans on a pro rata basis or (B) through open market purchases, in each case with respect to clauses (A) and (B), without the consent of the Administrative Agent; provided that:

 

(i)        any Term Loans acquired by Holdings, the Borrower or any of its subsidiaries shall be retired and cancelled immediately upon the acquisition thereof; provided that upon any such retirement and cancellation, the aggregate outstanding principal amount of the Term Loans shall be deemed reduced by the full par value of the aggregate principal amount of the Term Loans so retired and cancelled, and each principal repayment installment with respect to the Term Loans pursuant to Section 2.07(a) shall be reduced on a pro rata basis by the full par value of the aggregate principal amount of Term Loans so cancelled;

 

(ii)       any Term Loans acquired by any Affiliated Lender may (but shall not be required to) be contributed to the Borrower or any of its subsidiaries (it being understood that any such Term Loans shall be retired and cancelled immediately upon such contribution);

 

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provided that upon any such cancellation, the aggregate outstanding principal amount of the Term Loans shall be deemed reduced, as of the date of such contribution, by the full par value of the aggregate principal amount of the Term Loans so contributed and cancelled, and each principal repayment installment with respect to the Term Loans pursuant to Section 2.07(a) shall be reduced pro rata by the full par value of the aggregate principal amount of Term Loans so contributed and cancelled;

 

(iii)      the relevant Affiliated Lender, Holdings, the Borrower or applicable subsidiary (as applicable) and assigning Lender shall have executed and delivered an Affiliated Lender Assignment and Assumption;

 

(iv)      after giving effect to the relevant assignment and to all other assignments to all Affiliated Lenders, the aggregate principal amount of all Term Loans then held by all Affiliated Lenders shall not exceed 25% of the aggregate principal amount of the Term Loans then outstanding (after giving effect to any substantially simultaneous cancellations thereof) (the “Affiliated Lender Cap”); provided that each party hereto acknowledges and agrees that the Administrative Agent shall not be liable for any losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses and disbursements of any kind or nature whatsoever incurred or suffered by any Person in connection with any compliance or non-compliance with this clause (g)(iv) or any purported assignment exceeding the Affiliated Lender Cap (it being understood and agreed that the Affiliated Lender Cap is intended to apply to any Loans made available to Affiliated Lenders by means other than formal assignment (e.g., as a result of an acquisition of another Lender by any Affiliated Lender or the provision of Additional Term Loans by any Affiliated Lender); provided, further, that to the extent that any assignment to any Affiliated Lender would result in the aggregate principal amount of Term Loans held by Affiliated Lenders exceeding the Affiliated Lender Cap (after giving effect to any substantially simultaneous cancellations thereof), the assignment of the relevant excess amount shall be null and void;

 

(v)       in connection with any assignment effected pursuant to a Dutch Auction and/or open market purchase conducted by Holdings, the Borrower or any of its subsidiaries, no Event of Default shall exist at the time of acceptance of bids for the Dutch Auction or the confirmation of such open market purchase, as applicable;

 

(vi)      by its acquisition of Term Loans, each relevant Affiliated Lender shall be deemed to have acknowledged and agreed that:

 

(A)          the Term Loans held by such Affiliated Lender shall be disregarded in both the numerator and denominator in the calculation of any Required Lender or other Lender vote (and the Term Loans held by such Affiliated Lender shall be deemed to be voted pro rata along with the other Lenders that are not Affiliated Lenders); provided that (x) such Affiliated Lender shall have the right to vote (and the Term Loans held by such Affiliated Lender shall not be so disregarded) with respect to any amendment, modification, waiver, consent or other action that requires the vote of all Lenders or all Lenders directly and adversely affected thereby, as the case may be, and (y) no amendment, modification, waiver, consent or other action shall (1) disproportionately affect such Affiliated Lender in its capacity as a Lender as compared to other Lenders of the same Class that are not Affiliated Lenders or (2) deprive any Affiliated Lender of its share of any payments which the Lenders are entitled to share on a pro rata basis hereunder, in each case without the consent of such Affiliated Lender; and

 

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(B)          such Affiliated Lender, solely in its capacity as an Affiliated Lender, will not be entitled to (i) attend (including by telephone) or participate in any meeting or discussion (or portion thereof) among the Administrative Agent or any Lender or among Lenders to which the Loan Parties or their representatives are not invited or (ii) receive any information or material prepared by the Administrative Agent or any Lender or any communication by or among the Administrative Agent and one or more Lenders, except to the extent such information or materials have been made available by the Administrative Agent or any Lender to any Loan Party or its representatives (and in any case, other than the right to receive notices of Borrowings, prepayments and other administrative notices in respect of its Term Loans required to be delivered to Lenders pursuant to Article 2);

 

(vii)     no Affiliated Lender shall be required to represent or warrant that it is not in possession of material non-public information with respect to Holdings, the Borrower and/or its subsidiaries and/or their respective securities in connection with any assignment permitted by this Section 9.05(g);

 

(viii)    (A) For the purpose of voting on any plan of reorganization or plan of liquidation pursuant to any Debtor Relief Laws (a “Bankruptcy Plan”), each Affiliated Lender hereby agrees (x) not to vote on such Bankruptcy Plan, (y) if such Affiliated Lender does vote on such Bankruptcy Plan notwithstanding the restriction in the foregoing clause (x), such vote will be deemed not to be in good faith and shall be “designated” pursuant to Section 1126(e) of the Bankruptcy Code (or any similar provision in any other Debtor Relief Laws), and such vote shall not be counted in determining whether the applicable class has accepted or rejected such Bankruptcy Plan in accordance with Section 1126(e) of the Bankruptcy Code (or any similar provision in any other Debtor Relief Laws) and (z) not to contest any request by any party for a determination by the Bankruptcy Court (or other applicable court of competent jurisdiction) effectuating the foregoing clause (y), in each case under this clause (viii)(A) unless such Bankruptcy Plan adversely affects such Affiliated Lender more than other Term Lenders in any material respect and (B) each Affiliated Lender hereby irrevocably appoints the Administrative Agent (such appointment being coupled with an interest) as such Affiliated Lender and in the name of such Affiliated Lender (solely in respect of Loans therein and not in respect of any other claim or status such Affiliated Lender may otherwise have), from time to time in the Administrative Agent’s discretion to take any action and to execute any instrument that the Administrative Agent may deem reasonably necessary or appropriate to carry out the provisions of this clause (viii), including to ensure that any vote of such Affiliated Lender on any Bankruptcy Plan is withdrawn or otherwise not counted.

 

Section 9.06          Survival.  All covenants, agreements, representations and warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents and the making of any Loan, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent may have had notice or knowledge of any Default or Event of Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect until the Termination Date.  The provisions of Sections 2.12, 2.13 2.14, 9.03 and 9.13 and Article 8 shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the occurrence of the Termination Date or the termination of this Agreement or any provision hereof but in each case, subject to the limitations set forth in this Agreement.

 

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Section 9.07          Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement, the other Loan Documents, the Intercreditor Agreement, the Fee Letter and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire agreement among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  This Agreement shall become effective when it has been executed by Holdings, the Borrower and the Administrative Agent and when the Administrative Agent has received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile or by email as a “.pdf” or “.tif” attachment shall be effective as delivery of a manually executed counterpart of this Agreement.

 

Section 9.08          Severability.  To the extent permitted by applicable Requirements of Law, any provision of any Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

 

Section 9.09          Right of Setoff.  At any time when an Event of Default exists, upon the written consent of the Administrative Agent, the Administrative Agent and each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable Requirements of Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations (in any currency) at any time owing by the Administrative Agent or such Lender (including by branches and agencies of the Administrative Agent or such Lender, wherever located) to or for the credit or the account of the Borrower or any Loan Party against any of and all the Secured Obligations held by the Administrative Agent or such Lender, irrespective of whether or not the Administrative Agent or such Lender shall have made any demand under the Loan Documents and although such obligations may be contingent or unmatured or are owed to a branch or office of such Lender different than the branch or office holding such deposit or obligation on such Indebtedness.  Any applicable Lender shall promptly notify the Borrower and the Administrative Agent of such set-off or application; provided that any failure to give or any delay in giving such notice shall not affect the validity of any such set-off or application under this Section.  The rights of each Lender and the Administrative Agent under this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender or the Administrative Agent may have.

 

Section 9.10          Governing Law; Jurisdiction; Consent to Service of Process.

 

(a)           THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (OTHER THAN AS EXPRESSLY SET FORTH IN ANY OTHER LOAN DOCUMENT) AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (OTHER THAN AS EXPRESSLY SET FORTH IN ANY OTHER LOAN DOCUMENT), WHETHER IN TORT, CONTRACT (AT LAW OR IN EQUITY) OR OTHERWISE, SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK; PROVIDED, THAT (I) THE INTERPRETATION OF THE DEFINITION OF “MATERIAL ADVERSE EFFECT” AS DEFINED IN THE ACQUISITION AGREEMENT AND THE DETERMINATION OF WHETHER A MATERIAL ADVERSE EFFECT (AS DEFINED IN THE ACQUISITION AGREEMENT) HAS OCCURRED, (II) THE DETERMINATION OF THE ACCURACY OF ANY SPECIFIED ACQUISITION AGREEMENT

 

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REPRESENTATION AND WHETHER AS A RESULT OF ANY INACCURACY THEREOF MERGER SUB OR ITS APPLICABLE AFFILIATE HAS A RIGHT TO TERMINATE ITS OBLIGATIONS UNDER THE ACQUISITION AGREEMENT OR DECLINE TO CONSUMMATE THE ACQUISITION AND (III) THE DETERMINATION OF WHETHER THE ACQUISITION HAS BEEN CONSUMMATED IN ACCORDANCE WITH THE TERMS OF THE ACQUISITION AGREEMENT AND, IN ANY CASE, ANY CLAIM OR DISPUTE ARISING OUT OF ANY SUCH INTERPRETATION OR DETERMINATION OR ANY ASPECT THEREOF, SHALL IN EACH CASE BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE REGARDLESS OF THE LAWS THAT MIGHT OTHERWISE GOVERN UNDER APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS.

 

(b)           EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL OR NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK (OR ANY APPELLATE COURT THEREFROM) OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING SHALL (EXCEPT AS PERMITTED BELOW) BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR, TO THE EXTENT PERMITTED BY APPLICABLE REQUIREMENTS OF LAW, FEDERAL COURT.  EACH PARTY HERETO AGREES THAT SERVICE OF ANY PROCESS, SUMMONS, NOTICE OR DOCUMENT BY REGISTERED MAIL ADDRESSED TO SUCH PERSON SHALL BE EFFECTIVE SERVICE OF PROCESS AGAINST SUCH PERSON FOR ANY SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT; PROVIDED THAT WITH RESPECT TO ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE ACQUISITION AGREEMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY WHICH DOES NOT INVOLVE ANY CLAIMS AGAINST THE AGENT, THE ARRANGERS, THE LENDERS OR ANY INDEMNIFIED PERSON, THIS SENTENCE SHALL NOT OVERRIDE ANY JURISDICTION PROVISION IN THE ACQUISITION AGREEMENT.  EACH PARTY HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY APPLICABLE REQUIREMENTS OF LAW.  EACH PARTY HERETO AGREES THAT THE ADMINISTRATIVE AGENT RETAINS THE RIGHT TO BRING PROCEEDINGS AGAINST ANY LOAN PARTY IN THE COURTS OF ANY OTHER JURISDICTION SOLELY IN CONNECTION WITH THE EXERCISE OF ANY RIGHTS UNDER ANY COLLATERAL DOCUMENT.

 

(c)           EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY CLAIM OR DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION, SUIT OR PROCEEDING IN ANY SUCH COURT.

 

(d)           TO THE EXTENT PERMITTED BY APPLICABLE REQUIREMENTS OF LAW, EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL) DIRECTED TO IT AT ITS ADDRESS FOR NOTICES AS PROVIDED FOR IN SECTION

 

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9.01.  EACH PARTY HERETO HEREBY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY LOAN DOCUMENT THAT SERVICE OF PROCESS WAS INVALID AND INEFFECTIVE.  NOTHING IN THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE REQUIREMENTS OF LAW.

 

Section 9.11          Waiver of Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE REQUIREMENTS OF LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY) DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH PARTY HERETO (a) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (b) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

Section 9.12          Headings.  Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

 

Section 9.13          Confidentiality.  Each of the Administrative Agent, each Lender and each Arranger agrees (and each Lender agrees to cause its SPC, if any) to maintain the confidentiality of the Confidential Information (as defined below), except that Confidential Information may be disclosed (a) to its and its Affiliates’ directors (or equivalent managers), officers, employees, independent auditors or other experts and advisors, including accountants, legal counsel and other advisors (collectively, the “Representatives”) on a “need to know” basis solely in connection with the transactions contemplated hereby and who are informed of the confidential nature of the Confidential Information and are or have been advised of their obligation to keep the Confidential Information of this type confidential; provided that such Person shall be responsible for its Affiliates’ and their Representatives’ compliance with this paragraph; provided, further, that unless the Borrower otherwise consents, no such disclosure shall be made by the Administrative Agent, any Arranger, any Lender or any Affiliate or Representative thereof to any Affiliate or Representative of the Administrative Agent, any Arranger or any Lender that (i) is engaged as a principal primarily in private equity, mezzanine financing or venture capital or (ii) is a Disqualified Institution, (b) upon the demand or request of any regulatory or governmental authority (including any self-regulatory body) purporting to have jurisdiction over such Person or its Affiliates (in which case such Person shall, (i) except with respect to any audit or examination conducted by bank accountants or any Governmental Authority or regulatory or self-regulatory authority exercising examination or regulatory authority, to the extent permitted by law, inform the Borrower promptly in advance thereof and (ii) use commercially reasonable efforts to ensure that any such information so disclosed is accorded confidential treatment), (c) to the extent compelled by legal process in, or reasonably necessary to, the defense of such legal, judicial or administrative proceeding, in any legal, judicial or administrative proceeding or otherwise as required by applicable Requirements of Law, rule or regulation (in which case such Person shall (i) to the extent permitted by law, inform the Borrower promptly in advance thereof and (ii) use commercially reasonable efforts to ensure that any such information so disclosed is accorded confidential treatment), (d) to any other party to this Agreement, (e) subject to an acknowledgment and agreement by the relevant recipient that the Confidential

 

149

 

Information is being disseminated on a confidential basis (on substantially the terms set forth in this paragraph or as otherwise reasonably acceptable to the Borrower and the Administrative Agent, including as set forth in the Information Memorandum) in accordance with the standard syndication process of the Arrangers or market standards for dissemination of the relevant type of information, which shall in any event require “click through” or other affirmative action on the part of the recipient to access the Confidential Information and acknowledge its confidentiality obligations in respect thereof, to (i) any Eligible Assignee of or Participant in, or any prospective Eligible Assignee of or prospective Participant in, any of its rights or obligations under this Agreement, including any SPC (in each case other than a Disqualified Institution), (ii) any pledgee referred to in Section 9.05, (iii) any actual or prospective, direct or indirect contractual counterparty (or its advisors) to any Derivative Transaction (including any credit default swap) or similar derivative product (other than a Disqualified Institution) relating to the Loan Parties and their obligations and (iv) subject to the Borrower’s prior approval of the information to be disclosed (not to be unreasonably withheld), to Moody’s or S&P in connection with obtaining or maintaining ratings as required under Section 5.13, (f) with the prior written consent of the Borrower, (g) to the extent the Confidential Information becomes publicly available other than as a result of a breach of this Section by such Person, its Affiliates or their respective Representatives and (h) to the CUSIP bureau, solely to the extent such Confidential Information is necessary to obtain CUSIP numbers in respect of the Term Facility and in consultation with the Borrower.  For purposes of this Section, “Confidential Information” means all information relating to Holdings, the Borrower and/or any of its subsidiaries and their respective businesses or the Transactions (including any information obtained by the Administrative Agent, any Lender, or any Arranger, or any of their respective Affiliates or Representatives, based on a review of the books and records relating to Holdings, the Borrower and/or any of its subsidiaries and their respective Affiliates from time to time, including prior to the date hereof) other than any such information that is publicly available to the Administrative Agent or any Arranger, or Lender on a non-confidential basis prior to disclosure by Holdings, the Borrower or any of its subsidiaries.  In addition, the Administrative Agent or any Arranger may disclose the existence of this Agreement and the information consisting of the Closing Date, the identity of the Borrower, the structure, type and amount of the Term Facility and the allotted roles to market data collectors and similar service providers to the lending industry.  For the avoidance of doubt, in no event shall any disclosure of the Confidential Information be made to any Disqualified Institution (which was a Disqualified Institution at the time such disclosure was made).

 

Section 9.14          No Fiduciary Duty.  Each of the Administrative Agent, the Arrangers, each Lender and their respective Affiliates (collectively, solely for purposes of this paragraph, the “Lenders”), may have economic interests that conflict with those of the Loan Parties, their stockholders and/or their respective affiliates.  Each Loan Party agrees that nothing in the Loan Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Lender, on the one hand, and such Loan Party, its respective stockholders or its respective affiliates, on the other.  Each Loan Party acknowledges and agrees that:  (i) the transactions contemplated by the Loan Documents (including the exercise of rights and remedies hereunder and thereunder) are arm’s-length commercial transactions between the Lenders, on the one hand, and the Loan Parties, on the other, and (ii) in connection therewith and with the process leading thereto, (x) no Lender, in its capacity as such, has assumed an advisory or fiduciary responsibility in favor of any Loan Party, its respective stockholders or its respective affiliates with respect to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Lender has advised, is currently advising or will advise any Loan Party, its respective stockholders or its respective Affiliates on other matters) or any other obligation to any Loan Party except the obligations expressly set forth in the Loan Documents and (y) each Lender, in its capacity as such, is acting solely as principal and not as the agent or fiduciary of such Loan Party, its respective management, stockholders, creditors or any other Person.  Each Loan Party acknowledges and agrees that such Loan Party has consulted its own legal, tax and financial advisors to the extent it deemed appropriate and that it is

 

150

 

responsible for making its own independent judgment with respect to such transactions and the process leading thereto.

 

Section 9.15          Several Obligations.  The respective obligations of the Lenders hereunder are several and not joint and the failure of any Lender to make any Loan or perform any of its obligations hereunder shall not relieve any other Lender from any of its obligations hereunder.

 

Section 9.16          USA PATRIOT Act.  Each Lender that is subject to the requirements of the USA PATRIOT Act hereby notifies the Loan Parties that pursuant to the requirements of the USA PATRIOT Act, it is required to obtain, verify and record information that identifies each Loan Party, which information includes the name and address of such Loan Party and other information that will allow such Lender to identify such Loan Party in accordance with the USA PATRIOT Act.

 

Section 9.17          Disclosure of Agent Conflicts.  Each Loan Party and each Lender hereby acknowledge and agree that the Administrative Agent and/or its Affiliates from time to time may hold investments in, make other loans to or have other relationships with any of the Loan Parties and their respective Affiliates.

 

Section 9.18          Appointment for Perfection.  Each Lender hereby appoints each other Lender as its agent for the purpose of perfecting Liens for the benefit of the Administrative Agent and the Lenders, in assets which, in accordance with Article 9 of the UCC or any other applicable law can be perfected only by possession.  If any Lender (other than the Administrative Agent) obtains possession of any Collateral, such Lender shall notify the Administrative Agent thereof and, promptly upon the Administrative Agent’s request therefor, shall deliver such Collateral to the Administrative Agent or otherwise deal with such Collateral in accordance with the Administrative Agent’s instructions.

 

Section 9.19          Interest Rate Limitation.  Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the “Charged Amounts”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable Requirements of Law, the rate of interest payable in respect of such Loan hereunder, together with all Charged Amounts payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charged Amounts that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charged Amounts payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

 

Section 9.20          Conflicts.  Notwithstanding anything to the contrary contained herein or in any other Loan Document, in the event of any conflict or inconsistency between this Agreement and any other Loan Document, the terms of this Agreement shall govern and control; provided that in the case of any conflict or inconsistency between the Intercreditor Agreement and any Loan Document, the terms of the Intercreditor Agreement shall govern and control.

 

Section 9.21          Release of Guarantors.  Notwithstanding anything in Section 9.02(b) to the contrary, (a) any Subsidiary Guarantor shall automatically be released from its obligations hereunder (and its Loan Guaranty shall be automatically released) (i) upon the consummation of any permitted transaction or series of related transactions if as a result thereof such Subsidiary Guarantor ceases to be a Restricted Subsidiary (or becomes an Excluded Subsidiary (other than pursuant to clause (a) of the definition thereof) as a result of a single transaction or series of related transactions permitted hereunder)

 

151

 

and/or (ii) upon the occurrence of the Termination Date.  In connection with any such release, the Administrative Agent shall promptly execute and deliver to the relevant Loan Party, at such Loan Party’s expense, all documents that such Loan Party shall reasonably request to evidence termination or release.  Any execution and delivery of any document pursuant to the preceding sentence of this Section 9.21 shall be without recourse to or warranty by the Administrative Agent (other than as to the Administrative Agent’s authority to execute and deliver such documents).

 

Section 9.22          Intercreditor Agreement.  REFERENCE IS MADE TO THE INTERCREDITOR AGREEMENT.  EACH LENDER HEREUNDER AGREES THAT IT WILL BE BOUND BY AND WILL TAKE NO ACTIONS CONTRARY TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT AND AUTHORIZES AND INSTRUCTS THE ADMINISTRATIVE AGENT TO ENTER INTO THE INTERCREDITOR AGREEMENT AS “TERM LOAN ADMINISTRATIVE AGENT” AND ON BEHALF OF SUCH LENDER.  THE PROVISIONS OF THIS SECTION 9.22 ARE NOT INTENDED TO SUMMARIZE ALL RELEVANT PROVISIONS OF THE INTERCREDITOR AGREEMENT, THE FORM OF WHICH IS ATTACHED AS AN EXHIBIT TO THIS AGREEMENT.  REFERENCE MUST BE MADE TO THE INTERCREDITOR AGREEMENT ITSELF TO UNDERSTAND ALL TERMS AND CONDITIONS THEREOF.  EACH LENDER IS RESPONSIBLE FOR MAKING ITS OWN ANALYSIS AND REVIEW OF THE INTERCREDITOR AGREEMENT AND THE TERMS AND PROVISIONS THEREOF, AND NEITHER THE ADMINISTRATIVE AGENT NOR ANY OF ITS AFFILIATES MAKES ANY REPRESENTATION TO ANY LENDER AS TO THE SUFFICIENCY OR ADVISABILITY OF THE PROVISIONS CONTAINED IN THE INTERCREDITOR AGREEMENT.  THE FOREGOING PROVISIONS ARE INTENDED AS AN INDUCEMENT TO THE LENDERS UNDER THE ABL CREDIT AGREEMENT TO EXTEND CREDIT THEREUNDER AND SUCH LENDERS ARE INTENDED THIRD PARTY BENEFICIARIES OF SUCH PROVISIONS AND THE PROVISIONS OF THE INTERCREDITOR AGREEMENT.

 

NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, THE LIENS AND SECURITY INTERESTS GRANTED TO THE ADMINISTRATIVE AGENT PURSUANT TO THE LOAN DOCUMENTS IN ANY COLLATERAL AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE ADMINISTRATIVE AGENT WITH RESPECT TO ANY COLLATERAL ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT.  IN THE EVENT OF ANY CONFLICT BETWEEN THE TERMS OF THE INTERCREDITOR AGREEMENT AND THIS AGREEMENT, THE TERMS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN AND CONTROL.

 

Section 9.23          Acknowledgement and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in this Agreement or in any other agreement, arrangement or understanding between the parties hereto, each party hereto acknowledges that that any liability of such EEA Financial Institution  under this Agreement, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and each party hereto agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)           the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by Buyer or Seller (as applicable); 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;

 

152

 

(ii)       a conversion of all, or a portion of, such liability into shares or other instruments of ownership in Buyer or Seller, as applicable, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement; or

 

(iii)      the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

 

[Signature Pages Follow]

 

153

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

 

	
 
    	
HENNESSY ACQUISITION CORP. II. (which on   the Closing Date shall be renamed as DASEKE, INC.), as Holdings
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Kevin Charlton
    
	
 
    	
Name:
    	
Kevin Charlton
    
	
 
    	
Title:
    	
President and Chief Operating Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HCAC MERGER SUB   INC. (which on the   Closing Date shall be merged with and into the existing DASEKE, INC.,   with DASEKE, INC. as the surviving company, which shall then be renamed   as DASEKE COMPANIES, INC.), as the Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Kevin Charlton
    
	
 
    	
Name:
    	
Kevin Charlton
    
	
 
    	
Title:
    	
Vice President and Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
The undersigned hereby confirms that, as a   result of its merger with HCAC MERGER SUB INC., it hereby assumes all of the   rights and obligations of HCAC MERGER SUB INC. under this Credit Agreement   (which assumption is in furtherance of, and not in lieu of, its assumption or   deemed assumption by operation of law), and hereby agrees to be joined to the   Credit Agreement as the Borrower thereunder and that all references to the   “Borrower” shall be deemed to be references to the undersigned.
    
	
 
    	
 
    
	
 
    	
DASEKE COMPANIES, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 /s/ R. Scott Wheeler
    
	
 
    	
Name:
    	
R. Scott Wheeler
    
	
 
    	
Title:
    	
Executive Vice President and Corporate Chief Financial Officer
    
				

 

[Signature Page to Project Cognac Credit Agreement]

 

 

	
 
    	
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as Administrative Agent and   as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Vipul Dhadda
    
	
 
    	
Name:
    	
Vipul Dhadda
    
	
 
    	
Title:
    	
Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Joan Park
    
	
 
    	
Name:
    	
Joan Park
    
	
 
    	
Title:
    	
Authorized Signatory
    
				

 

[Signature Page to Project Cognac Credit Agreement]

 

 

	
 
    	
B. C. HORNADY AND ASSOCIATES, INC.
    
	
 
    	
BOYD BROS. TRANSPORTATION INC.
    
	
 
    	
BOYD LOGISTICS, L.L.C.
    
	
 
    	
BOYD LOGISTICS PROPERTIES, LLC
    
	
 
    	
BOYD INTERMODAL, LLC
    
	
 
    	
BROS. LLC
    
	
 
    	
BULLDOG HIWAY EXPRESS
    
	
 
    	
CENTRAL OREGON TRUCK COMPANY, INC.
    
	
 
    	
DASEKE LOGISTICS, LLC
    
	
 
    	
DASEKE LONE STAR, INC.
    
	
 
    	
E. W. WYLIE CORPORATION
    
	
 
    	
HORNADY LOGISTICS, LLC
    
	
 
    	
HORNADY TRANSPORTATION, L. L.C.
    
	
 
    	
HORNADY TRUCK LINE, INC.
    
	
 
    	
J. GRADY RANDOLPH, INC.
    
	
 
    	
JGR LOGISTICS, LLC
    
	
 
    	
LONE STAR HEAVY HAUL, INC.
    
	
 
    	
LONE STAR PROJECT SPECIALISTS, INC.
    
	
 
    	
LONE STAR TRANSPORTATION, LLC
    
	
 
    	
LST HOLDINGS, INC.
    
	
 
    	
LST EQUIPMENT, INC.
    
	
 
    	
MASHBURN TRUCKING, INC.
    
	
 
    	
MID SEVEN TRANSPORTATION COMPANY
    
	
 
    	
NATIONAL RIGGING, INC.
    
	
 
    	
RANDOLPH BROTHERS, LLC
    
	
 
    	
SMOKEY POINT DISTRIBUTING, INC.
    
	
 
    	
SPD TRUCKING, LLC
    
	
 
    	
TEXR ASSETS, L.L.C.
    
	
 
    	
TEXR ASSETS 2, L.L.C.
    
	
 
    	
TEXR EQUIPMENT, LLC
    
	
 
    	
WTI TRANSPORT, INC.
    

 

	
 
    	
By:
    	
 /s/ Scott Wheeler
    
	
 
    	
Name:
    	
Scott Wheeler
    
	
 
    	
Title:
    	
Vice President
    
				

 

[Signature Page to Project Cognac Credit Agreement]

 

 

Schedule 1.01(a)
 Commitment Schedule

 

Term Loan Commitments

 

	
Lender
    	
 
    	
Initial Term Loan Commitment
    	
 
    
	
Credit Suisse   AG, Cayman Islands Branch
    	
 
    	
$
    	
250,000,000
    	
 
    
	
Total:
    	
 
    	
$
    	
250,000,000
    	
 
    

 

Delayed Draw Commitments

 

	
Lender
    	
 
    	
Initial Term Loan Commitment
    	
 
    
	
Credit Suisse   AG, Cayman Islands Branch
    	
 
    	
$
    	
45,000,000
    	
 
    
	
UBS Securities   LLC
    	
 
    	
$
    	
45,000,000
    	
 
    
	
PNC Bank,   National Association
    	
 
    	
$
    	
10,000,000
    	
 
    
	
Total:
    	
 
    	
$
    	
100,000,000
    	
 
    

 

 

Schedule 1.01(b)
 Dutch Auction

 

“Dutch Auction” means an auction (an “Auction”) conducted by any Affiliated Lender or any Debt Fund Affiliate (any such Person, the “Auction Party”) in order to purchase Term Loans, in accordance with the following procedures; provided that no Auction Party shall initiate any Auction unless (I) at least five Business Days have passed since the consummation of the most recent purchase of Term Loans pursuant to an Auction conducted hereunder; or (II) at least three Business Days have passed since the date of the last Failed Auction which was withdrawn pursuant to clause (c)(i) below:

 

(a)           Notice Procedures.  In connection with any Auction, the Auction Party will provide notification to the Auction Agent (as defined below) (for distribution to the relevant Lenders) of the Term Loans that will be the subject of the Auction (an “Auction Notice”).  Each Auction Notice shall be in a form reasonably acceptable to the Auction Agent and shall (i) specify the maximum aggregate principal amount of the Term Loans subject to the Auction, in a minimum amount of $5,000,000 and whole increments of $1,000,000 in excess thereof (or, in any case, such lesser amount of such Term Loans then outstanding or which is otherwise reasonably acceptable to the Auction Agent and the Administrative Agent (if different from the Auction Agent)) (the “Auction Amount”), (ii) specify the discount to par (which may be a range (the “Discount Range”) of percentages of the par principal amount of the Term Loans subject to such Auction), that represents the range of purchase prices that the Auction Party would be willing to accept in the Auction, (iii) be extended, at the sole discretion of the Auction Party, to (x) each Lender and/or (y) each Lender with respect to any Term Loan on an individual Class basis and (iv) remain outstanding through the Auction Response Date.  The Auction Agent will promptly provide each appropriate Lender with a copy of the Auction Notice and a form of the Return Bid to be submitted by a responding Lender to the Auction Agent (or its delegate) by no later than 5:00 p.m. on the date specified in the Auction Notice (or such later date as the Auction Party may agree with the reasonable consent of the Auction Agent) (the “Auction Response Date”).

 

(b)           Reply Procedures.  In connection with any Auction, each Lender holding the relevant Term Loans subject to such Auction may, in its sole discretion, participate in such Auction and may provide the Auction Agent with a notice of participation (the “Return Bid”) which shall be in a form reasonably acceptable to the Auction Agent, and shall specify (i) a discount to par (that must be expressed as a price at which it is willing to sell all or any portion of such Term Loans) (the “Reply Price”), which (when expressed as a percentage of the par principal amount of such Term Loans) must be within the Discount Range, and (ii) a principal amount of such Term Loans, which must be in whole increments of $1,000,000 (or, in any case, such lesser amount of such Term Loans of such Lender then outstanding or which is otherwise reasonably acceptable to the Auction Agent) (the “Reply Amount”).  Lenders may only submit one Return Bid per Auction, but each Return Bid may contain up to three bids only one of which may result in a Qualifying Bid.  In addition to the Return Bid, the participating Lender must execute and deliver, to be held in escrow by the Auction Agent, an Assignment and Assumption with the dollar amount of the Term Loans to be assigned to be left in blank, which amount shall be completed by the Auction Agent (but in no such event shall the amount be in excess of the principal amount of Term Loans such Lender has indicated it is willing to sell) in accordance with the final determination of such Lender’s Qualifying Bid pursuant to clause (c) below.  Any Lender whose Return Bid is not received by the Auction Agent by the Auction Response Date shall be deemed to have declined to participate in the relevant Auction with respect to all of its Term Loans.

 

 

(c)           Acceptance Procedures.  Based on the Reply Prices and Reply Amounts received by the Auction Agent prior to the applicable Auction Response Date, the Auction Agent, in consultation with the Auction Party, will determine the applicable price (the “Applicable Price”) for the Auction, which will be the lowest Reply Price for which the Auction Party can complete the Auction at the Auction Amount; provided that, in the event that the Reply Amounts are insufficient to allow the Auction Party to complete a purchase of the entire Auction Amount (any such Auction, a “Failed Auction”), the Auction Party shall either, at its election, (i) withdraw the Auction or (ii) complete the Auction at an Applicable Price equal to the highest Reply Price.  The Auction Party shall purchase the relevant Term Loans (or the respective portions thereof) from each Lender with a Reply Price that is equal to or lower than the Applicable Price (“Qualifying Bids”) at the Applicable Price; provided that if the aggregate proceeds required to purchase all Term Loans subject to Qualifying Bids would exceed the Auction Amount for such Auction, the Auction Party shall purchase such Term Loans at the Applicable Price ratably based on the principal amounts of such Qualifying Bids (subject to rounding requirements specified by the Auction Agent in its discretion).  If a Lender has submitted a Return Bid containing multiple bids at different Reply Prices, only the bid with the lowest Reply Price that is equal to or less than the Applicable Price will be deemed to be the Qualifying Bid of such Lender (e.g., a Reply Price of $100 with a discount to par of 2%, when compared to an Applicable Price of $100 with a 1% discount to par, will not be deemed to be a Qualifying Bid, while, however, a Reply Price of $100 with a discount to par of 2.50% would be deemed to be a Qualifying Bid).  The Auction Agent shall promptly, and in any case within five Business Days following the Auction Response Date with respect to an Auction, notify (I) the Borrower of the respective Lenders’ responses to such solicitation, the effective date of the purchase of Term Loans pursuant to such Auction, the Applicable Price, and the aggregate principal amount of the Term Loans and the tranches thereof to be purchased pursuant to such Auction, (II) each participating Lender of the effective date of the purchase of Term Loans pursuant to such Auction, the Applicable Price, and the aggregate principal amount and the tranches of Term Loans to be purchased at the Applicable Price on such date, (III) each participating Lender of the aggregate principal amount and the tranches of the Term Loans of such Lender to be purchased at the Applicable Price on such date and (IV) if applicable, each participating Lender of any rounding and/or proration pursuant to the second preceding sentence.  Each determination by the Auction Agent of the amounts stated in the foregoing notices to the Borrower and Lenders shall be conclusive and binding for all purposes absent manifest error.

 

(d)           Additional Procedures.

 

(i)            Once initiated by an Auction Notice, the Auction Party may not withdraw an Auction other than a Failed Auction.  Furthermore, in connection with any Auction, upon submission by a Lender of a Qualifying Bid, such Lender (each, a “Qualifying Lender”) will be obligated to sell the entirety or its allocable portion of the Reply Amount, as the case may be, at the Applicable Price.

 

(ii)           To the extent not expressly provided for herein, each purchase of Term Loans pursuant to an Auction shall be consummated pursuant to procedures consistent with the provisions in this definition, established by the Auction Agent acting in its reasonable discretion and as reasonably agreed by the Borrower.

 

(iii)          In connection with any Auction, the Borrower and the Lenders acknowledge and agree that the Auction Agent may require as a condition to any Auction, the payment of customary fees and expenses by the Auction Party in connection therewith as agreed between the Auction Party and the Auction Agent.

 

3

 

(iv)          Notwithstanding anything in any Loan Document to the contrary, for purposes of this definition, each notice or other communication required to be delivered or otherwise provided to the Auction Agent (or its delegate) shall be deemed to have been given upon the Auction Agent’s (or its delegate’s) actual receipt during normal business hours of such notice or communication; provided that any notice or communication actually received outside of normal business hours shall be deemed to have been given as of the opening of business on the next Business Day.

 

(v)           the Borrower and the Lenders acknowledge and agree that the Auction Agent may perform any and all of its duties under this definition by itself or through any Affiliate of the Auction Agent and expressly consent to any such delegation of duties by the Auction Agent to such Affiliate and the performance of such delegated duties by such Affiliate.  The exculpatory provisions pursuant to this Agreement shall apply to each Affiliate of the Auction Agent and its respective activities in connection with any purchase of Term Loans provided for in this definition as well as activities of the Auction Agent.

 

“Auction Agent” means (a) the Administrative Agent or any of its Affiliates or (b) any other financial institution or advisor engaged by the Borrower (whether or not an Affiliate of the Administrative Agent) to act as an arranger in connection with any Dutch Auction; provided, that the Borrower shall not designate the Administrative Agent as the Auction Agent without the prior written consent of the Administrative Agent (it being understood that the Administrative Agent shall be under no obligation to agree to act as the Auction Agent); provided, further, that neither Holdings nor any of its subsidiaries may act as the Auction Agent.

 

4

 

Schedule 1.01(c)
 Material Real Estate Assets

 

	
State
    	
 
    	
City
    	
 
    	
Street
    	
 
    	
Owner
    
	
Washington 98223
    	
 
    	
Arlington
    	
 
    	
19201 63rd Avenue NE
    	
 
    	
Smokey Point   Distributing, Inc.
    
	
Washington 98223
    	
 
    	
Arlington
    	
 
    	
17305 59th Avenue NE
    	
 
    	
Smokey Point   Distributing, Inc.
    
	
Oregon 97756
    	
 
    	
Redmond
    	
 
    	
394 NE Hemlock Avenue
    	
 
    	
Central Oregon Truck   Company, Inc.
    
	
Alabama 35214
    	
 
    	
Birmingham
    	
 
    	
3900 ACIPCO Industrial   Drive
    	
 
    	
Boyd Bros.   Transportation, Inc.
    
	
Texas 77032
    	
 
    	
Houston
    	
 
    	
3002 Aldine Bender
    	
 
    	
LST   Equipment, Inc.
    

 

 

Schedule 3.17 
 Capitalization and Subsidiaries

 

	
Subsidiary
    	
 
    	
Type
    	
 
    	
Holder
    	
 
    	
Type
    	
 
    	
% of Issued and 
   Outstanding Shares
    
	
HCAC Merger Sub, Inc.
    	
 
    	
Corporation
    	
 
    	
N/A - dissolves
    	
 
    	
 
    	
 
    	
 
    
	
Daseke Companies, Inc.
    	
 
    	
Corporation
    	
 
    	
Daseke, Inc.   (formerly Hennessy Capital Acquisition Corp. II)
    	
 
    	
Corporation
    	
 
    	
100%
    
	
SPD Trucking, LLC
    	
 
    	
Limited liability   company
    	
 
    	
Daseke   Companies, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Smokey Point Distributing, Inc.
    	
 
    	
Corporation
    	
 
    	
Daseke   Companies, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
E. W. Wylie Corporation
    	
 
    	
Corporation
    	
 
    	
Daseke   Companies, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
J. Grady Randolph, Inc.
    	
 
    	
Corporation
    	
 
    	
Daseke   Companies, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Central Oregon Truck Company, Inc.
    	
 
    	
Corporation
    	
 
    	
Daseke   Companies, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Boyd Logistics, L.L.C.
    	
 
    	
Limited liability   company
    	
 
    	
Daseke   Companies, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Boyd Bros. Transportation Inc.
    	
 
    	
Corporation
    	
 
    	
Daseke   Companies, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Daseke Lone Star, Inc.
    	
 
    	
Corporation
    	
 
    	
Daseke   Companies, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
TexR Assets, L.L.C.
    	
 
    	
Limited liability   company
    	
 
    	
Daseke   Companies, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Bulldog Hiway Express
    	
 
    	
Corporation
    	
 
    	
Daseke   Companies, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Hornady Truck Line, Inc.
    	
 
    	
Corporation
    	
 
    	
Daseke   Companies, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
B. C. Hornady and Associates, Inc.
    	
 
    	
Corporation
    	
 
    	
Daseke   Companies, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Daseke Logistics, LLC
    	
 
    	
Limited liability   company
    	
 
    	
Daseke   Companies, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Bros. LLC
    	
 
    	
Limited liability   company
    	
 
    	
J. Grady   Randolph, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Randolph Brothers, LLC
    	
 
    	
Limited liability   company
    	
 
    	
J. Grady   Randolph, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
JGR Logistics, LLC
    	
 
    	
Limited liability   company
    	
 
    	
J. Grady   Randolph, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Boyd Logistics Properties, LLC
    	
 
    	
Limited liability   company
    	
 
    	
Boyd Logistics, L.L.C.
    	
 
    	
Limited liability   company
    	
 
    	
100%
    
	
Boyd Intermodal, LLC
    	
 
    	
Limited liability   company
    	
 
    	
Boyd Logistics, L.L.C.
    	
 
    	
Limited liability   company
    	
 
    	
100%
    
	
WTI Transport, Inc.
    	
 
    	
Corporation
    	
 
    	
Boyd Bros.   Transportation Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Mid Seven Transportation Company
    	
 
    	
Corporation
    	
 
    	
Boyd Bros.   Transportation Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Lone Star Transportation, LLC
    	
 
    	
Limited liability   company
    	
 
    	
Daseke Lone Star, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    

 

 

 

	
Subsidiary
    	
 
    	
Type
    	
 
    	
Holder
    	
 
    	
Type
    	
 
    	
% of Issued and 
   Outstanding Shares
    
	
TexR Equipment, LLC
    	
 
    	
Limited liability   company
    	
 
    	
Daseke Lone   Star, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
TexR Assets 2. L.L.C.
    	
 
    	
Limited liability   company
    	
 
    	
Daseke Lone   Star, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
LST Holdings, Inc.
    	
 
    	
Corporation
    	
 
    	
TexR Assets, L.L.C.
    	
 
    	
Limited liability   company
    	
 
    	
100%
    
	
Lone Star Heavy Haul, Inc.
    	
 
    	
Corporation
    	
 
    	
LST Holdings, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Lone Star Project Specialists, Inc.
    	
 
    	
Corporation
    	
 
    	
LST Holdings, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
LST Equipment Inc.
    	
 
    	
Corporation
    	
 
    	
LST Holdings, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
National Rigging, Inc.
    	
 
    	
Corporation
    	
 
    	
Lone Star Project   Specialists, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Mashburn Trucking, Inc.
    	
 
    	
Corporation
    	
 
    	
Lone Star Project   Specialists, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Hornady Transportation, L. L. C.
    	
 
    	
Limited liability   company
    	
 
    	
Hornady Truck   Line, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    
	
Hornady Logistics, LLC
    	
 
    	
Limited liability   company
    	
 
    	
Hornady Truck   Line, Inc.
    	
 
    	
Corporation
    	
 
    	
100%
    

 

7

 

Schedule 5.15
 Post-Closing Obligations

 

1.              Within ten (10) Business Days after the Closing Date (as may be extended by the Collateral Agent in its sole discretion), the Borrower shall deliver, or cause to be delivered, to the Collateral Agent an endorsement naming the Collateral Agent as (i) loss payee (in the case of property insurance) or (ii) additional insured on behalf of the Secured Parties (in the case of liability insurance), in each case in a manner acceptable to the Collateral Agent, with respect to each insurance policy required to be maintained under Section 5.05 of the Credit Agreement

 

2.              Within forty-five (45) days after the Closing Date (as may be extended by the Collateral Agent in its sole discretion), the Borrower shall file, or cause to be filed, the UCC-3 financing statements or, with respect to any mortgage liens, mortgage releases in appropriate form for recordation in the relevant jurisdictions, in each case to evidence the release of record of each of the Liens marked “**” in Schedule 6.02 to this Agreement with respect to any Indebtedness that (i) has been paid in full in connection with the Target Refinancing, or (ii) has otherwise been paid in full on or prior to the Closing Date:

 

3.              Within ninety (90) days after the Closing Date (as may be extended by the Administrative Agent in its sole discretion), the Administrative Agent shall have received, with respect to all Material Real Estate Assets listed on Schedule 1.01(c), a Mortgage and any necessary UCC fixture filing in respect thereof, in each case together with, to the extent customary and appropriate (as reasonably determined by the Administrative Agent and the Borrower), all documentation and evidence described in the definition of “Collateral and Guarantee Requirement”.

 

 

Schedule 6.01
 Existing Indebtedness(1)

 

	
 
    	
 
    	
Borrower
    	
 
    	
Lender
    	
 
    	
Loan Agreement
    	
 
    	
Date
    	
 
    	
Original
   Principal
    	
 
    	
Outstanding
    Principal
    	
 
    
	
1.
    	
 
    	
Smokey Point Distributing, Inc.
    	
 
    	
Texas Capital Bank, NA
    	
 
    	
Master Equipment Lease Agreement 001354 and related Pricing   Payment Addendums as follows‡
    	
 
    	
NA
    	
 
    	
NA
    	
 
    	
NA
    	
 
    
	
 
    	
 
    	
a.
    	
 
    	
 
    	
 
    	
001354-7
    	
 
    	
6/12/2015
    	
 
    	
$
    	
975,242.09
    	
 
    	
$
    	
65,3039.87
    	
 
    
	
 
    	
 
    	
b.
    	
 
    	
 
    	
 
    	
001354-8
    	
 
    	
7/20/2015
    	
 
    	
$
    	
2,688,901.88
    	
 
    	
$
    	
1,843,885.92
    	
 
    
	
 
    	
 
    	
c.
    	
 
    	
 
    	
 
    	
001354-11
    	
 
    	
3/17/2016
    	
 
    	
$
    	
184,975.00
    	
 
    	
$
    	
150,398.90
    	
 
    
	
 
    	
 
    	
d.
    	
 
    	
 
    	
 
    	
001354-12
    	
 
    	
7/17/2016
    	
 
    	
$
    	
32,571.38
    	
 
    	
$
    	
28,725.98
    	
 
    
	
 
    	
 
    	
e.
    	
 
    	
 
    	
 
    	
001354-13
    	
 
    	
9/1/2016
    	
 
    	
$
    	
129,737.20
    	
 
    	
$
    	
113,404.05
    	
 
    
	
 
    	
 
    	
f.
    	
 
    	
 
    	
 
    	
001354-14
    	
 
    	
12/14/2016
    	
 
    	
$
    	
267,580.60
    	
 
    	
$
    	
233,729.67
    	
 
    
	
2.
    	
 
    	
Smokey Point Distributing, Inc.
    	
 
    	
Volvo Financial Services, a division of VFS US LLC
    	
 
    	
Master Loan and Security Agreement No. 500-7630534
    	
 
    	
08/08/2013
    	
 
    	
NA
    	
 
    	
NA
    	
 
    
	
 
    	
 
    	
a.
    	
 
    	
 
    	
 
    	
500-7630534 — Schedule 003‡
    	
 
    	
7/1/2013
    	
 
    	
$
    	
1,318,783.26
    	
 
    	
$
    	
421,159.43
    	
 
    
	
2.
    	
 
    	
E.W. Wylie Corporation
    	
 
    	
De Lage Laden Financial Services, Inc.
    	
 
    	
Equipment Lease Agreement‡
    	
 
    	
7/10/2012
    	
 
    	
$
    	
365,000.00
    	
 
    	
$
    	
141,767.58
    	
 
    
	
3.
    	
 
    	
E.W. Wylie Corporation
    	
 
    	
Mack Financial Services, a division of VFS US LLC
    	
 
    	
Master Loan and Security Agreement‡
    	
 
    	
4/3/2013
    	
 
    	
NA
    	
 
    	
NA
    	
 
    
	
 
    	
 
    	
a.
    	
 
    	
Volvo Financial Services
    	
 
    	
501-7521931 - Schedule 028
    	
 
    	
7/23/2014
    	
 
    	
$
    	
427,031.00
    	
 
    	
$
    	
284,055.69
    	
 
    
	
 
    	
 
    	
b.
    	
 
    	
Volvo Financial Services
    	
 
    	
501-7521931 - Schedule 029
    	
 
    	
7/29/2014
    	
 
    	
$
    	
142,607.00
    	
 
    	
$
    	
94,806.30
    	
 
    
	
 
    	
 
    	
c.
    	
 
    	
Mack Financial Services
    	
 
    	
501-7521931 - Schedule 030
    	
 
    	
7/31/2014
    	
 
    	
$
    	
254,159.00
    	
 
    	
$
    	
169,497.88
    	
 
    
	
 
    	
 
    	
d.
    	
 
    	
Mack Financial Services
    	
 
    	
501-7521931 - Schedule 031
    	
 
    	
8/14/2014
    	
 
    	
$
    	
268,554.56
    	
 
    	
$
    	
178,966.89
    	
 
    
	
 
    	
 
    	
e.
    	
 
    	
Mack Financial Services
    	
 
    	
501-7521931 - Schedule 032
    	
 
    	
8/20/2014
    	
 
    	
$
    	
126,672.00
    	
 
    	
$
    	
85,839.19
    	
 
    
	
 
    	
 
    	
f.
    	
 
    	
Mack Financial Services
    	
 
    	
501-7521931 - Schedule 033
    	
 
    	
8/27/2014
    	
 
    	
$
    	
268,554.56
    	
 
    	
$
    	
182,289.74
    	
 
    
	
 
    	
 
    	
g.
    	
 
    	
Volvo Financial Services
    	
 
    	
501-7521931 - Schedule 034
    	
 
    	
9/16/2014
    	
 
    	
$
    	
853,667.00
    	
 
    	
$
    	
588,709.99
    	
 
    
	
 
    	
 
    	
h.
    	
 
    	
Mack Financial Services
    	
 
    	
501-7521931 - Schedule 042
    	
 
    	
4/10/2015
    	
 
    	
$
    	
125,884.00
    	
 
    	
$
    	
94,882.25
    	
 
    
	
 
    	
 
    	
i.
    	
 
    	
Volvo Financial Services
    	
 
    	
501-7521931 - Schedule 043
    	
 
    	
5/22/2015
    	
 
    	
$
    	
377,407.00
    	
 
    	
$
    	
298,522.96
    	
 
    
	
 
    	
 
    	
j.
    	
 
    	
Volvo Financial Services
    	
 
    	
501-7521931 - Schedule 047
    	
 
    	
7/31/2015
    	
 
    	
$
    	
144,619.00
    	
 
    	
$
    	
115,816.84
    	
 
    

 

(1)  Instruments marked “‡” represent secured indebtedness.

 

 

	
 
    	
 
    	
Borrower
    	
 
    	
Lender
    	
 
    	
Loan Agreement
    	
 
    	
Date
    	
 
    	
Original
   Principal
    	
 
    	
Outstanding
    Principal
    	
 
    
	
4.
    	
 
    	
E.W. Wylie Corporation
    	
 
    	
PACCAR
    	
 
    	
Direct Loan Security Agreement‡
    	
 
    	
11/14/2016
    	
 
    	
$
    	
2,964,340.00
    	
 
    	
$
    	
2,869,779.03
    	
 
    
	
5.
    	
 
    	
J. Grady Randolph, Inc.
    	
 
    	
Webster Capital
    	
 
    	
Master Loan and Security Agreement No. 64862‡
    	
 
    	
3/4/2010
    	
 
    	
NA
    	
 
    	
NA
    	
 
    
	
 
    	
 
    	
a.
    	
 
    	
 
    	
 
    	
64862-06
    	
 
    	
2/1/2016
    	
 
    	
$
    	
3,014,086.48
    	
 
    	
$
    	
2,418,656.37
    	
 
    
	
 
    	
 
    	
b.
    	
 
    	
 
    	
 
    	
64862-07
    	
 
    	
5/11/2016
    	
 
    	
$
    	
657,195.60
    	
 
    	
$
    	
580,066.75
    	
 
    
	
6.
    	
 
    	
J. Grady Randolph, Inc.
    	
 
    	
J Grady Randolph
    	
 
    	
Pledge Agreement‡
    	
 
    	
3/2/2005
    	
 
    	
$
    	
780,000.00
    	
 
    	
$
    	
49,042
    	
 
    
	
7.
    	
 
    	
J. Grady Randolph, Inc.
    	
 
    	
Branch Banking and Trust Company
    	
 
    	
Retail Installment Sale Contract Simple Finance Charge
    	
 
    	
9/13/2013
    	
 
    	
$
    	
70,618.22
    	
 
    	
$
    	
23,819.03
    	
 
    
	
8.
    	
 
    	
J. Grady Randolph, Inc.
    	
 
    	
Key Equipment Finance
    	
 
    	
Installment Payment Agreement
    	
 
    	
12/24/2012
    	
 
    	
$
    	
163,409.00
    	
 
    	
$
    	
19,602.22
    	
 
    
	
9.
    	
 
    	
Central Oregon Truck Company
    	
 
    	
City of Redmond
    	
 
    	
Promissory Note‡
    	
 
    	
4/1/2013
    	
 
    	
$
    	
112,500
    	
 
    	
$
    	
22,500.00
    	
 
    
	
10.
    	
 
    	
Central Oregon Truck Company
    	
 
    	
Columbia State Bank
    	
 
    	
1309005957‡
    	
 
    	
10/30/2013
    	
 
    	
$
    	
3,000,000
    	
 
    	
$
    	
2,732,678.99
    	
 
    
	
11.
    	
 
    	
Central Oregon Truck Company
    	
 
    	
Columbia State Bank
    	
 
    	
1409004623‡
    	
 
    	
10/27/2014
    	
 
    	
$
    	
1,100,000
    	
 
    	
$
    	
1,133,156.00
    	
 
    
	
12.
    	
 
    	
Bulldog Hiway Express
    	
 
    	
TD Equipment Finance, Inc.
    	
 
    	
Master Lease Agreement‡
    	
 
    	
9/27/2011
    	
 
    	
NA
    	
 
    	
NA
    	
 
    
	
 
    	
 
    	
a.
    	
 
    	
 
    	
 
    	
Schedule No. 40100848
    	
 
    	
6/24/2013
    	
 
    	
$
    	
1,238,729.50
    	
 
    	
$
    	
329,376.75
    	
 
    
	
 
    	
 
    	
b.
    	
 
    	
 
    	
 
    	
Schedule No. 40110833
    	
 
    	
5/21/2014
    	
 
    	
$
    	
1,275,883.20
    	
 
    	
$
    	
586,606.02
    	
 
    
	
 
    	
 
    	
c.
    	
 
    	
 
    	
 
    	
Schedule No. 40102434
    	
 
    	
7/18/2013
    	
 
    	
$
    	
1,238,729.50
    	
 
    	
$
    	
350,594.24
    	
 
    
	
 
    	
 
    	
d.
    	
 
    	
 
    	
 
    	
Schedule No. 40103122
    	
 
    	
8/7/2013
    	
 
    	
$
    	
1,858,094.25
    	
 
    	
$
    	
558,625.44
    	
 
    
	
 
    	
 
    	
e.
    	
 
    	
 
    	
 
    	
Schedule No. 40110383
    	
 
    	
5/14/2014
    	
 
    	
$
    	
637,941.60
    	
 
    	
$
    	
294,334.56
    	
 
    
	
 
    	
 
    	
f.
    	
 
    	
 
    	
 
    	
Schedule No. 40110249
    	
 
    	
4/23/2014
    	
 
    	
$
    	
637,941.60
    	
 
    	
$
    	
235,613.82
    	
 
    
	
18.
    	
 
    	
Lone Star Transportation, LLC
    	
 
    	
BBVA Compass Financial Corp.
    	
 
    	
Loan and Security Agreement No. 567‡
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
a.
    	
 
    	
 
    	
 
    	
Promissory Note No. 002
    	
 
    	
6/2/2016
    	
 
    	
$
    	
3,700,000.00
    	
 
    	
$
    	
3,388,597.52
    	
 
    
	
19.
    	
 
    	
TexR Equipment, LLC
    	
 
    	
Wells Fargo Equipment Finance, Inc.
    	
 
    	
Combination Loan and Security Agreement‡
    	
 
    	
NA
    	
 
    	
NA
    	
 
    	
NA
    	
 
    
	
 
    	
 
    	
a.
    	
 
    	
 
    	
 
    	
Contract No.: 149236-737
    	
 
    	
4/18/2016
    	
 
    	
$
    	
493,845.60
    	
 
    	
$
    	
416,075.79
    	
 
    
	
 
    	
 
    	
b.
    	
 
    	
 
    	
 
    	
Contract No.:149236-738
    	
 
    	
5/5/2016
    	
 
    	
$
    	
152,419.11
    	
 
    	
$
    	
130,864.45
    	
 
    
	
 
    	
 
    	
c.
    	
 
    	
 
    	
 
    	
Contract No.:149236-739
    	
 
    	
5/12/2016
    	
 
    	
$
    	
316,489.00
    	
 
    	
$
    	
271,732.02
    	
 
    

 

10

 

	
 
    	
 
    	
Borrower
    	
 
    	
Lender
    	
 
    	
Loan Agreement
    	
 
    	
Date
    	
 
    	
Original
   Principal
    	
 
    	
Outstanding
    Principal
    	
 
    
	
20.
    	
 
    	
Lone Star Transportation, LLC
    	
 
    	
Wells Fargo Equipment Finance, Inc.
    	
 
    	
Combination Loan and Security Agreement‡
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
a.
    	
 
    	
 
    	
 
    	
Contract No.: 83564-702
    	
 
    	
5/19/2016
    	
 
    	
$
    	
1,351,920.59
    	
 
    	
$
    	
1,221,150.89
    	
 
    
	
 
    	
 
    	
b.
    	
 
    	
 
    	
 
    	
Contract No.: 83564-703
    	
 
    	
6/1/2016
    	
 
    	
$
    	
2,182,440.89
    	
 
    	
$
    	
1,995,043.50
    	
 
    
	
21.
    	
 
    	
Boyd Bros. Transportation Inc.
    	
 
    	
GE Capital Corp.
    	
 
    	
Loan and Security Agreement  9789329-001‡
    	
 
    	
12/16/2014
    	
 
    	
$
    	
3,336,071.40
    	
 
    	
$
    	
2,651,602.01
    	
 
    
	
22.
    	
 
    	
Boyd Bros. Transportation Inc.
    	
 
    	
GE Capital Corp.
    	
 
    	
Loan and Security Agreement  9793370-001‡
    	
 
    	
1/16/2015
    	
 
    	
$
    	
4,918,311.00
    	
 
    	
$
    	
2,755,972.82
    	
 
    
	
23.
    	
 
    	
Boyd Bros. Transportation Inc.
    	
 
    	
BMO Harris Bank N.A.
    	
 
    	
Loan and Security Agreement  9861489-001‡
    	
 
    	
4/18/2016
    	
 
    	
$
    	
542,762.40
    	
 
    	
$
    	
422,593.22
    	
 
    
	
24.
    	
 
    	
Boyd Bros. Transportation Inc.
    	
 
    	
GE Capital Corp.
    	
 
    	
Loan and Security Agreement  9793354-001‡
    	
 
    	
1/16/2015
    	
 
    	
$
    	
3,058,816.20
    	
 
    	
$
    	
1,714,109.30
    	
 
    
	
25.
    	
 
    	
Boyd Bros. Transportation Inc.
    	
 
    	
Regions Commercial Equipment Finance, LLC
    	
 
    	
Master Agreement 015-003595‡
    	
 
    	
NA
    	
 
    	
NA
    	
 
    	
NA
    	
 
    
	
 
    	
 
    	
a.
    	
 
    	
 
    	
 
    	
EFA — 16
    	
 
    	
8/28/2015
    	
 
    	
$
    	
258,108.00
    	
 
    	
$
    	
198,966.57
    	
 
    
	
 
    	
 
    	
b.
    	
 
    	
 
    	
 
    	
EFA — 18
    	
 
    	
9/30/2015
    	
 
    	
$
    	
259,015.26
    	
 
    	
$
    	
201,979.61
    	
 
    
	
 
    	
 
    	
c.
    	
 
    	
 
    	
 
    	
EFA — 20
    	
 
    	
11/30/2015
    	
 
    	
$
    	
259,015.26
    	
 
    	
$
    	
209,593.34
    	
 
    
	
 
    	
 
    	
d.
    	
 
    	
 
    	
 
    	
EFA — 22
    	
 
    	
4/1/2016
    	
 
    	
$
    	
304,463.76
    	
 
    	
$
    	
222,367.22
    	
 
    
	
 
    	
 
    	
e.
    	
 
    	
 
    	
 
    	
EFA — 24
    	
 
    	
6/9/2016
    	
 
    	
$
    	
282,492.02
    	
 
    	
$
    	
222,109.16
    	
 
    
	
26.
    	
 
    	
WTI Transportation, Inc.
    	
 
    	
BMO Harris Bank N.A.
    	
 
    	
Loan and Security Agreement  9867396001‡
    	
 
    	
6/10/2016
    	
 
    	
$
    	
631,056.70
    	
 
    	
$
    	
544,142.99
    	
 
    
	
27.
    	
 
    	
WTI Transportation, Inc.
    	
 
    	
BMO Harris Bank N.A.
    	
 
    	
Loan and Security Agreement  9867396001‡
    	
 
    	
05/25/2016
    	
 
    	
$
    	
1,009,690.72
    	
 
    	
$
    	
886,508.85
    	
 
    
	
28.
    	
 
    	
Hornady Truck Line, Inc.
    	
 
    	
Regions Commercial Equipment Finance, LLC
    	
 
    	
Promissory Note and Commercial Security Agreement  015-0001715-   032‡
    	
 
    	
6/12/2015
    	
 
    	
$
    	
1,289,881.60
    	
 
    	
$
    	
859,921.00
    	
 
    
	
29.
    	
 
    	
Hornady Truck Line, Inc.
    	
 
    	
Regions Commercial Equipment Finance, LLC
    	
 
    	
Promissory Note and Commercial Security Agreement  015-0001715-   033‡
    	
 
    	
8/4/2015
    	
 
    	
$
    	
1,300,809.86
    	
 
    	
$
    	
910,566.98
    	
 
    

 

11

 

	
 
    	
 
    	
Borrower
    	
 
    	
Lender
    	
 
    	
Loan Agreement
    	
 
    	
Date
    	
 
    	
Original
   Principal
    	
 
    	
Outstanding
    Principal
    	
 
    
	
30.
    	
 
    	
Hornady Transportation, LLC
    	
 
    	
PACCAR Financial Corp.
    	
 
    	
Security Agreement 292‡
    	
 
    	
10/21/2015
    	
 
    	
$
    	
1,406,488
    	
 
    	
$
    	
1,054,866.04
    	
 
    
	
31.
    	
 
    	
Hornady Transportation, LLC
    	
 
    	
PACCAR Financial Corp.
    	
 
    	
Security Agreement 293‡
    	
 
    	
10/21/2015
    	
 
    	
$
    	
1,366,187.70
    	
 
    	
$
    	
1,024,641
    	
 
    
	
32.
    	
 
    	
Hornady Transportation, LLC
    	
 
    	
PACCAR Financial Corp.
    	
 
    	
Security Agreement 294‡
    	
 
    	
12/2/2015
    	
 
    	
$
    	
$
    	
1,381,417.70
    	
 
    	
$
    	
1,059,086.88
    	
 
    
	
33.
    	
 
    	
Hornady Transportation, LLC
    	
 
    	
First Tennessee Bank
    	
 
    	
Promissory Note Loan   No. 30090170‡
    	
 
    	
9/2/2016
    	
 
    	
$
    	
3,414,922.00
    	
 
    	
$
    	
3,150,550.59
    	
 
    
	
34.
    	
 
    	
Hornady Truck Line, Inc.
    	
 
    	
Ally Financial
    	
 
    	
Retail Installment Sale Contract   Simple Finance Charge
    	
 
    	
7/31/2014
    	
 
    	
$
    	
56,575.52
    	
 
    	
$
    	
25,701.21
    	
 
    
	
35.
    	
 
    	
Hornady Transportation, LLC
    	
 
    	
Ally Financial
    	
 
    	
Retail Installment Sale Contract   Simple Finance Charge
    	
 
    	
10/28/2015
    	
 
    	
$
    	
29,367.84
    	
 
    	
$
    	
14,523.20
    	
 
    
	
36.
    	
 
    	
Hornady Transportation, LLC
    	
 
    	
Ally Financial
    	
 
    	
Retail Installment Sale Contract   Simple Finance Charge
    	
 
    	
10/28/2015
    	
 
    	
$
    	
29,218.40
    	
 
    	
$
    	
13,095.34
    	
 
    
	
37.
    	
 
    	
Hornady Truck Line, Inc.
    	
 
    	
Ally Financial
    	
 
    	
Retail Installment Sale Contract   Simple Finance Charge
    	
 
    	
6/19/2014
    	
 
    	
$
    	
38,002.40
    	
 
    	
$
    	
17,216.43
    	
 
    
	
38.
    	
 
    	
Hornady Truck Line, Inc.
    	
 
    	
Ally Financial
    	
 
    	
Retail Installment Sale Contract   Simple Finance Charge
    	
 
    	
2/8/2015
    	
 
    	
$
    	
20,961.28
    	
 
    	
$
    	
12,485.96
    	
 
    
	
39.
    	
 
    	
Hornady Truck Line, Inc.
    	
 
    	
Ally Financial
    	
 
    	
Retail Installment Sale Contract   Simple Finance Charge
    	
 
    	
2/8/2015
    	
 
    	
$
    	
20,271.36
    	
 
    	
$
    	
9,728.74
    	
 
    
	
40.
    	
 
    	
Hornady Truck Line, Inc.
    	
 
    	
BBVA Compass Financial Corp.
    	
 
    	
Loan and Security Agreement   No. 546‡
    	
 
    	
11/4/2014
    	
 
    	
NA
    	
 
    	
NA
    	
 
    
	
 
    	
 
    	
a.
    	
 
    	
 
    	
 
    	
Promissory Note No. 0002
    	
 
    	
12/5/2014
    	
 
    	
$
    	
638,970.80
    	
 
    	
$
    	
632,085.42
    	
 
    
	
 
    	
 
    	
b.
    	
 
    	
 
    	
 
    	
Promissory Note No. 0003
    	
 
    	
05/05/2015
    	
 
    	
$
    	
1,294,081.60
    	
 
    	
$
    	
757,041.54
    	
 
    
																	

 

12

 

Schedule 6.01(n)
 Indebtedness Secured by Excluded Real Property

 

	
Loan Agreement
    	
 
    	
Mortgage
    	
 
    	
City
    	
 
    	
County
    	
 
    	
Address
    	
 
    	
Loan Party
    
	
Loan Agreement dated as of April 1, 2013, by   and between Central Oregon Truck Company, Inc., as borrower, and the   City of Redmond, a municipal corporation of the State of Oregon acting by and   through the Redmond Urban Renewal Agency, as Lender
    	
 
    	
Line of Credit Trust Deed, Security Agreement,   Fixture Filing and Assignment of Leases and Rents dated as of April 1,   2013, by Central Oregon Truck Company, Inc., as grantor, and the City of   Redmond acting through the Redmond Urban Renewal Agency, as beneficiary
    	
 
    	
Redmond
    	
 
    	
Deschutes
    	
 
    	
394 NE Hemlock Avenue
   Redmond, Oregon 97756
    	
 
    	
Central Oregon Truck   Company, Inc.
    
	
Promissory Note dated as of October 30, 2013,   by and between Central Oregon Truck Company, Inc., as borrower, and   Columbia State Bank, as Lender.
    	
 
    	
Deed of Trust, Assignment of Leases and Rents,   Security Agreement and Fixture Filing dated as of October 30, 2013, by   Central Oregon Truck Company, Inc., as grantor, and Columbia State Bank,   as beneficiary.
    	
 
    	
Redmond
    	
 
    	
Deschutes
    	
 
    	
394 NE Hemlock Avenue
   Redmond, Oregon 97756
    	
 
    	
Central Oregon Truck   Company, Inc.
    

 

 

Schedule 6.02
 Existing Liens(2)

 

Liens securing indebtedness identified on Schedule 6.01 as being secured.

 

B. C. Hornady and Associates, Inc.

 

1.                                      Lien evidenced by the UCC-1 Financing Statement with B. C. Hornady and Associates, Inc., as Debtor, and ServisFirst Bank, as Secured Party, recorded with the Secretary of State of the State of Alabama on November 26, 2013, as File Number: 13-7433641.**

 

Boyd Bros. Transportation, Inc.

 

1.                                      Lien evidenced by the judgment lien with Angela Pratt c/o Boyd Brothers, as Debtor, and QHG of Alabama (Flowers Hosp), as Secured Party, recorded with the Barbour County of the State of Alabama on September 25, 2003, as File Number: C113 P 561.

 

2.                                      Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation, Inc., as Debtor, and General Electric Capital Corporation, as Secured Party, recorded with the Secretary of State of the State of Delaware on March 5, 2007, as File Number: 2007 0909613.**

 

3.                                      Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation, Inc., as Debtor, and BMO Harris Bank N.A, as Secured Party, recorded with the Secretary of State of the State of Delaware on April 2, 2007, as File Number: 2007 1322824.**

 

4.                                      Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and FCC Equipment Financing, Inc., as Secured Party, recorded with the Secretary of State of the State of Delaware on October 3, 2008, as File Number: 2008 3355417.**

 

5.                                      Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and Compass Bank, as Secured Party, recorded with the Secretary of State of the State of Delaware on November 18, 2008, as File Number: 2008 3854864.**

 

6.                                      Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and Capital One Equipment Leasing & Finance, as Secured Party, recorded with the Secretary of State of the State of Delaware on August 16, 2011, as File Number: 2011 3183244.**

 

7.                                      Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and People’s Capital and Leasing Corp., as Secured Party, recorded with the Secretary of State of the State of Delaware on December 1, 2011, as File Number: 2011 4580034.**

 

(2)  Liens marked as “**” are subject to compliance with the post-closing requirements set forth in item 2 of Schedule 5.15 to this Agreement.

 

 

8.                                      Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and Compass Bank, as Secured Party, recorded with the Secretary of State of the State of Delaware on March 6, 2012, as File Number: 2012 0867814.**

 

9.                                      Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and Regions Equipment Finance Corporation, as Secured Party, recorded with the Secretary of State of the State of Delaware on April 18, 2012, as File Number: 2012 1602400.**

 

10.                               Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and BancorpSouth Equipment Finance, A Division of BancorpSouth Bank, as Secured Party, recorded with the Secretary of State of the State of Delaware on May 15, 2012, as File Number: 2012 1865437.**

 

11.                               Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and Compass Bank, as Secured Party, recorded with the Secretary of State of the State of Delaware on May 22, 2012, as File Number: 2012 1969056.**

 

12.                               Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and Capital One Equipment Leasing & Finance, as Secured Party, recorded with the Secretary of State of the State of Delaware on June 7, 2012, as File Number: 2012 2186791.**

 

13.                               Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and Compass Bank, as Secured Party, recorded with the Secretary of State of the State of Delaware on June 11, 2012, as File Number: 2012 2226316.**

 

14.                               Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and Compass Bank, as Secured Party, recorded with the Secretary of State of the State of Delaware on June 28, 2012, as File Number: 2012 2514034.**

 

15.                               Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and IBM Credit LLC, as Secured Party, recorded with the Secretary of State of the State of Delaware on December 24, 2012, as File Number: 2012 5023173.**

 

16.                               Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and CIT Finance LLC, as Secured Party, recorded with the Secretary of State of the State of Delaware on February 24, 2014, as File Number: 2014 0702373.**

 

17.                               Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and CIT Finance LLC, as Secured Party, recorded with the Secretary of State of the State of Delaware on February 24, 2014, as File Number: 2014 0702597.**

 

18.                               Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and CIT Finance LLC, as Secured Party, recorded with the Secretary of State of the State of Delaware on February 24, 2014, as File Number: 2014 0702761.**

 

15

 

19.                               Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation, Inc., as Debtor, and ServisFirst Bank, as Secured Party, recorded with the Secretary of State of the State of Delaware on March 7, 2014, as File Number: 2014 0891689.**

 

20.                               Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation, Inc., as Debtor, and EpicVue Capital LLC, as Secured Party, recorded with the Secretary of State of the State of Delaware on July 28, 2014, as File Number: 2014 3153137.**

 

21.                               Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and Thompson Tractor Co., Inc., as Secured Party, recorded with the Secretary of State of the State of Delaware on December 31, 2014, as File Number: 2014 5320056.**

 

22.                               Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc. and Boyd Intermodal, LLC, as Debtors, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Delaware on August 31, 2015, as File Number: 2015 3818613.

 

23.                               Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc. and Boyd Intermodal, LLC, as Debtors, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Delaware on December 3, 2015, as File Number: 2015 5786016.

 

24.                               Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc., as Debtor, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Delaware on June 15, 2016, as File Number: 2016 3609508.

 

Boyd Intermodal, LLC

 

1.                                      Lien evidenced by the UCC-1 Financing Statement with Boyd Intermodal, LLC, as Debtor, and Webster Capital Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Delaware on October 9, 2013, as File Number: 2013 3956696.**

 

2.                                      Lien evidenced by the UCC-1 Financing Statement with Boyd Intermodal, LLC, as Debtor, and Webster Capital Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Delaware on December 16, 2013, as File Number: 2013 4968815.**

 

3.                                      Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc. and Boyd Intermodal, LLC, as Debtors, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Delaware on August 31, 2015, as File Number: 2015 3818613.

 

4.                                      Lien evidenced by the UCC-1 Financing Statement with Boyd Bros. Transportation Inc. and Boyd Intermodal, LLC, as Debtors, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Delaware on February 25, 2017, as File Number: 2015 5786016.

 

16

 

Boyd Logistics Properties, LLC

 

1.                                      Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc. and Boyd Logistics, L.L.C., as Debtors, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Alabama on September 1, 2015, as File Number: 15-0464192.

 

2.                                      Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc. and Boyd Logistics, L.L.C., as Debtors, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Alabama on December 4, 2015, as File Number: 15-0636838.**

 

Bros. LLC

 

1.                                      Lien evidenced by the UCC-1 Financing Statement with Bros., LLC, as Debtor, and BancorpSouth Equipment Finance, a division of BancorpSouth Bank, as Secured Party, recorded with the Secretary of State of the State of South Carolina on July 18, 2012, as File Number: 120718-1218389.**

 

2.                                      Lien evidenced by the UCC-1 Financing Statement with Bros., LLC, as Debtor, and BancorpSouth Equipment Finance, a division of BancorpSouth Bank, as Secured Party, recorded with the Secretary of State of the State of South Carolina on December 27, 2012, as File Number: 121227-1158113.**

 

3.                                      Lien evidenced by the UCC-1 Financing Statement with Bros., LLC and J. Grady Randolph, Inc., as Debtors, and BBVA Compass Financial Corporation, as Secured Party, recorded with the Secretary of State of the State of South Carolina on September 30, 2013, as File Number: 130930-1519224.

 

Bulldog Hiway Express

 

1.                                      Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and TD Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of South Carolina on February 22, 2012, as File Number: 120222-1340118.**

 

2.                                      Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and ServisFirst Bank, as Secured Party, recorded with the Secretary of State of the State of South Carolina on October 7, 2015, as File Number: 151007-1100418.**

 

3.                                      Lien evidenced by the UCC-1 Financing Statement with Bulldog Highway Express, as Debtor, and Pugh Oil Co Inc, as Secured Party, recorded with the Secretary of State of the State of South Carolina on December 30, 2015, as File Number: 151230-1708480.**

 

4.                                      Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and TD Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of South Carolina on September 19, 2011, as File Number: 110919-1025355.**

 

17

 

5.                                      Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and TD Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of South Carolina on February 22, 2012, as File Number: 120222-1340118.**

 

6.                                      Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and TD Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of South Carolina on June 27, 2013, as File Number: 130627-1522107.

 

7.                                      Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and TD Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of South Carolina on May 27, 2014, as File Number: 140527-1246191.

 

8.                                      Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and TD Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of South Carolina on August 5, 2013, as File Number: 130805-1358023.

 

9.                                      Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and Webster Capital Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of South Carolina on August 26, 2013, as File Number: 130826-1933376.

 

10.                               Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and TD Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of South Carolina on August 28, 2013, as File Number: 130828-1321356.

 

11.                               Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and TD Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of South Carolina on May 6, 2014, as File Number: 140506-1024596.

 

12.                               Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and TD Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of South Carolina on May 19, 2014, as File Number: 140519-1452306.

 

13.                               Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and TD Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of South Carolina on May 27, 2014, as File Number: 140527-1246191.**

 

14.                               Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and Corporation Service Company, As Representative, as Secured Party,

 

18

 

recorded with the Secretary of State of the State of South Carolina on March 23, 2015, as File Number: 150323-1346277.**

 

15.                               Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and Corporation Service Company, As Representative, as Secured Party, recorded with the Secretary of State of the State of South Carolina on May 26, 2015, as File Number: 150526-1529433.**

 

16.                               Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and ServisFirst Bank, as Secured Party, recorded with the Secretary of State of the State of South Carolina on October 7, 2015, as File Number: 151007-1100418.**

 

17.                               Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and C T Corporation System, as representative, as Secured Party, recorded with the Secretary of State of the State of South Carolina on May 9, 2016, as File Number: 160509-1207161.**

 

18.                               Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and ServisFirst Bank, as Secured Party, recorded with the Secretary of State of the State of South Carolina on June 15, 2016, as File Number: 160615-1144471.**

 

19.                               Lien evidenced by the UCC-1 Financing Statement with Bulldog Hiway Express, as Debtor, and Fifth Third Equipment Finance Company, its successors and/or assigns, as Secured Party, recorded with the Secretary of State of the State of South Carolina on July 11, 2016, as File Number: 160711-1144116.**

 

Central Oregon Truck Company, Inc.

 

1.                                      Lien evidenced by the UCC-1 Financing Statement with Central Oregon Truck Company, Inc., as Debtor, and Les Schwab Warehouse Center, Inc., as Secured Party, recorded with the Secretary of State of the State of Oregon on June 30, 2011, as File Number: 8824606.**

 

2.                                      Lien evidenced by the UCC-1 Financing Statement with Central Oregon Truck Company, Inc., as Debtor, and Columbia State Bank, as Secured Party, recorded with the Secretary of State of the State of Oregon on November 6, 2013, as File Number: 89879750.

 

3.                                      Lien evidenced by the UCC-1 Financing Statement with Central Oregon Truck Company, Inc., as Debtor, and Columbia State Bank, as Secured Party, recorded with the Secretary of State of the State of Oregon on September 12, 2014, as File Number: 90228609.**

 

4.                                      Lien evidenced by the judgment lien against Central Oregon Truck Company, Inc., as Debtor, and Michael T. Brown, as Secured Party, recorded with the US District Court of the State of Oregon on June 16, 2018, as Case Number: 6:08-cv-06178-TC.

 

5.                                      Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing dated as of October 30, 2013, by Central Oregon Truck Company, Inc., as grantor, and Columbia State Bank, as beneficiary.

 

19

 

6.                                      Line of Credit Trust Deed, Security Agreement, Fixture Filing and Assignment of Leases and Rents dated as of April 1, 2013, by Central Oregon Truck Company, Inc., as grantor, and the City of Redmond acting through the Redmond Urban Renewal Agency, as beneficiary

 

Daseke Logistics, LLC

 

1.                                      N/A

 

Daseke Lone Star, Inc.

 

1.                                      Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing, from Daseke Lone Star, Inc., as mortgagor to Origin Bank, as mortgagee, dated effective April 26, 2016 and recorded Webb County, Texas, as Document No. 1263341, Volume 4038, Page 563 on April 28, 2016.**

 

Daseke, Inc.

 

1.                                      N/A

 

E. W. Wylie Corporation

 

1.                                      Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and FPC Funding II, LLC, as Secured Party, recorded with the Secretary of State of the State of North Dakota on May 15, 2008, as File Number: 08-000463342-9.**

 

2.                                      Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and Capital One, N.A., as Secured Party, recorded with the Secretary of State of the State of North Dakota on April 16, 2012, as File Number: 12-000740472-3.**

 

3.                                      Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and De Lage Landen Financial Services, Inc., as Secured Party, recorded with the Secretary of State of the State of North Dakota on July 26, 2012, as File Number: 12-000762268-1.

 

4.                                      Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and De Lage Landen Financial Services, Inc., as Secured Party, recorded with the Secretary of State of the State of North Dakota on January 4, 2013, as File Number: 13-000795498-0.**

 

5.                                      Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and U.S. Bank Equipment Finance, a division of U.S. Bank National Association, as Secured Party, recorded with the Secretary of State of the State of North Dakota on April 9, 2013, as File Number: 13-000819763-4.**

 

6.                                      Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and U.S. Bank Equipment Finance, as Secured Party, recorded with the Secretary

 

20

 

of State of the State of North Dakota on August 1, 2013, as File Number: 13-000847616-5.**

 

7.                                      Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and State Bank & Trust of Kenmare, as Secured Party, recorded with the Secretary of State of the State of North Dakota on February 12, 2014, as File Number: 14-000888413-8.**

 

8.                                      Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and Citizens State Bank, as Secured Party, recorded with the Secretary of State of the State of North Dakota on February 12, 2014, as File Number: 14-000888422-9.**

 

9.                                      Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and U.S. Bank Equipment Finance, as Secured Party, recorded with the Secretary of State of the State of North Dakota on July 24, 2014, as File Number: 14-000925293-2.**

 

10.                               Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and Marco, Inc., as Secured Party, recorded with the Secretary of State of the State of North Dakota on January 9, 2015, as File Number: 15-000956133-6.**

 

11.                               Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and Citizens State Bank, as Secured Party, recorded with the Secretary of State of the State of North Dakota on February 17, 2015, as File Number: 15-000963974-8.**

 

12.                               Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and Northwestern Bank, as Secured Party, recorded with the Secretary of State of the State of North Dakota on February 27, 2015, as File Number: 15-000966238-3.**

 

13.                               Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and Winona National Bank, as Secured Party, recorded with the Secretary of State of the State of North Dakota on March 9, 2015, as File Number: 15-000968244-5. **

 

14.                               Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and State Bank of Chandler, as Secured Party, recorded with the Secretary of State of the State of North Dakota on March 9, 2015, as File Number: 15-000968248-9.**

 

15.                               Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and Citizens National Bank, as Secured Party, recorded with the Secretary of State of the State of North Dakota on March 19, 2015, as File Number: 15-000969377-7.**

 

16.                               Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and Valley Premier Bank, as Secured Party, recorded with the Secretary of State of the State of North Dakota on March 27, 2015, as File Number: 15-000972353-6.**

 

21

 

17.                               Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and Corporation Service Company, As Representative, as Secured Party, recorded with the Secretary of State of the State of North Dakota on April 7, 2015, as File Number: 15-000974757-8.**

 

18.                               Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and Marco, Inc., as Secured Party, recorded with the Secretary of State of the State of North Dakota on May 7, 2015, as File Number: 15-000981990-6.**

 

19.                               Lien evidenced by the UCC-1 Financing Statement with E. W. Wylie Corporation, as Debtor, and Corporation Service Company, As Representative, as Secured Party, recorded with the Secretary of State of the State of North Dakota on October 14, 2015, as File Number: 15-001014905-5.**

 

HCAC Merger Sub, Inc.

 

1.                                      N/A

 

Hennessy Capital Acquisition Corp. II

 

1.                                      N/A

 

Hornady Logistics, LLC

 

1.                                      N/A

 

Hornady Truck Line, Inc.

 

1.                                      Lien evidenced by the UCC-1 Financing Statement with Hornady Truck Line, Inc., as Debtor, and First Continental Leasing, a division of BancorpSouth Bank, as Secured Party, recorded with the Secretary of State of the State of Alabama on September 21, 2001, as File Number: 2001-36718.**

 

2.                                      Lien evidenced by the UCC-1 Financing Statement with Hornady Truck Line, Inc., as Debtor, and Regions Equipment Finance Corporation, as Secured Party, recorded with the Secretary of State of the State of Alabama on February 1, 2012, as File Number: 12-0079265.**

 

3.                                      Lien evidenced by the UCC-1 Financing Statement with Hornady Truck Line, Inc., as Debtor, and Regions Equipment Finance Corporation, as Secured Party, recorded with the Secretary of State of the State of Alabama on March 12, 2012, as File Number: 12-7057133.**

 

4.                                      Lien evidenced by the UCC-1 Financing Statement with Hornady Truck Line, Inc., as Debtor, and Regions Equipment Finance Corporation, as Secured Party, recorded with the Secretary of State of the State of Alabama on March 28, 2012, as File Number: 12-7073754.**

 

22

 

5.                                      Lien evidenced by the UCC-1 Financing Statement with Hornady Truck Line, Inc., as Debtor, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Alabama on May 8, 2012, as File Number: 12-7122279.**

 

6.                                      Lien evidenced by the UCC-1 Financing Statement with Hornady Truck Line, Inc., as Debtor, and ServisFirst Bank, as Secured Party, recorded with the Secretary of State of the State of Alabama on January 2, 2013, as File Number: 13-0018992.**

 

7.                                      Lien evidenced by the UCC-1 Financing Statement with Hornady Truck Line, Inc., as Debtor, and ServisFirst Bank, as Secured Party, recorded with the Secretary of State of the State of Alabama on April 15, 2013, as File Number: 13-0178840.**

 

8.                                      Lien evidenced by the UCC-1 Financing Statement with Hornady Truck Line, Inc., as Debtor, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Alabama on July 29, 2013, as File Number: 13-7259000.**

 

9.                                      Lien evidenced by the UCC-1 Financing Statement with Hornady Truck Line, Inc., as Debtor, and BancorpSouth Equipment Finance, a division of BancorpSouth Bank, as Secured Party, recorded with the Secretary of State of the State of Alabama on August 5, 2014, as File Number: 14-0333094.**

 

10.                               Lien evidenced by the UCC-1 Financing Statement with Hornady Truck Line, Inc., as Debtor, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Alabama on June 15, 2015, as File Number: 15-0301020.

 

11.                               Lien evidenced by the UCC-1 Financing Statement with Hornady Truck Line, Inc., as Debtor, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Alabama on August 7, 2015, as File Number: 15-0410253.

 

12.                               Lien evidenced by the UCC-1 Financing Statement with Hornady Truck Line, Inc., as Debtor, and ServisFirst Bank, as Secured Party, recorded with the Secretary of State of the State of Alabama on November 9, 2015, as File Number: 15-0589331.**

 

13.                               Lien evidenced by the UCC-1 Financing Statement with HORNADY TRUCK LINE, INC., as Debtor, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Alabama on July 26, 2016, as File Number: 16-0395159.**

 

14.                               Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing, from Hornady Truck Line, Inc., as mortgagor to Origin Bank, as mortgagee, dated effective April 26, 2016 and recorded in Monroe County, Alabama, in Book 820, Page 92 on May 9, 2016.**

 

23

 

J. Grady Randolph, Inc.

 

1.                                      Lien evidenced by the UCC-1 Financing Statement with J. Grady Randolph, Inc., as Debtor, and Branch Banking and Trust Company of SC, as Secured Party, recorded with the Secretary of State of the State of South Carolina on June 3, 2013, as File Number: 130603-1352443.

 

2.                                      Lien evidenced by the UCC-1 Financing Statement with Bros., LLC and J. Grady Randolph, Inc., as Debtors, and BBVA Compass Financial Corporation, as Secured Party, recorded with the Secretary of State of the State of South Carolina on September 30, 2013, as File Number: 130930-1519224.**

 

3.                                      Lien evidenced by the UCC-1 Financing Statement with J. Grady Randolph, Inc., as Debtor, and Webster Capital Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of South Carolina on November 7, 2013, as File Number: 131107-0845493.

 

4.                                      Lien evidenced by the UCC-1 Financing Statement with J. Grady Randolph, Inc., as Debtor, and Signature Financial LLC, as Secured Party, recorded with the Secretary of State of the State of South Carolina on January 24, 2014, as File Number: 140424-1811064.**

 

5.                                      Lien evidenced by the UCC-1 Financing Statement with J. Grady Randolph, Inc., as Debtor, and Susquehanna Commercial Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of South Carolina on April 15, 2014, as File Number: 140415-1459024.

 

6.                                      Lien evidenced by the UCC-1 Financing Statement with J. Grady Randolph, Inc., as Debtor, and Texas Capital Bank, N.A., as Secured Party, recorded with the Secretary of State of the State of South Carolina on August 26, 2014, as File Number: 140826-1326485.**

 

7.                                      Lien evidenced by the UCC-1 Financing Statement with J. Grady Randolph, Inc., as Debtor, and EpicVue Capital LLC, as Secured Party, recorded with the Secretary of State of the State of South Carolina on October 16, 2014, as File Number: 141016-1928441.**

 

8.                                      Lien evidenced by the UCC-1 Financing Statement with J. Grady Randolph, Inc., as Debtor, and Webster Capital Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of South Carolina on December 1, 2014, as File Number: 141201-1040045.

 

JGR Logistics, LLC

 

1.                                      N/A

 

Lone Star Heavy Haul, Inc.

 

1.                                      N/A

 

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Lone Star Project Specialists, Inc.

 

1.                                      N/A

 

Lone Star Transportation, LLC

 

1.                                      Lien evidenced by the UCC-1 Financing Statement with Lone Star Transportation, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on March 7, 2008, as File Number: 08-0008281330.**

 

2.                                      Lien evidenced by the UCC-1 Financing Statement with Lone Star Transportation, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on March 21, 2008, as File Number: 08-0009937137.**

 

3.                                      Lien evidenced by the UCC-1 Financing Statement with Lone Star Transportation, LLC, as Debtor, and EverBank Commercial Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on June 7, 2011, as File Number: 11-0016746218.**

 

4.                                      Lien evidenced by the UCC-1 Financing Statement with Lone Star Transportation, LLC, as Debtor, and EverBank Commercial Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on December 10, 2012, as File Number: 12-0038281893.**

 

5.                                      Lien evidenced by the UCC-1 Financing Statement with Lone Star Transportation, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on May 19, 2016, as File Number: 16-0016224183.

 

6.                                      Lien evidenced by the UCC-1 Financing Statement with Lone Star Transportation, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on May 1, 2016, as File Number: 16-0017694569.

 

7.                                      Lien evidenced by the UCC-1 Financing Statement with Lone Star Transportation and MHC Kenworth Truck Dealership (additional debtor name missing from Certified Listing), as Debtors, and Convoy Servicing Company, as Secured Party, recorded with the Secretary of State of the State of Texas on July 25, 2016, as File Number: 16-0024288738.**

 

8.                                      Lien evidenced by the UCC-1 Financing Statement with Lone Star Transportation and MHC Kenworth Truck Dealership (additional debtor name missing from Certified Listing), as Debtors, and Convoy Servicing Company, as Secured Party, recorded with the Secretary of State of the State of Texas on July 25, 2016, as File Number: 16-0024292056.**

 

9.                                      Lien evidenced by the UCC-1 Financing Statement with Lone Star Transportation and MHC Kenworth Truck Dealership (additional debtor name missing from Certified Listing), as Debtors, and Convoy Servicing Company, as Secured Party, recorded with

 

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the Secretary of State of the State of Texas on August 2, 2016, as File Number: 16-0025215305.**

 

10.                               Lien evidenced by the UCC-1 Financing Statement with Lone Star Transportation and MHC Kenworth Truck Dealership (additional debtor name missing from Certified Listing), as Debtors, and Convoy Servicing Company, as Secured Party, recorded with the Secretary of State of the State of Texas on September 6, 2016, as File Number: 16-0029440177.**

 

11.                               Lien evidenced by the UCC-1 Financing Statement with Lone Star Transportation and MHC Kenworth Truck Dealership (additional debtor name missing from Certified Listing), as Debtors, and Convoy Servicing Company, as Secured Party, recorded with the Secretary of State of the State of Texas on September 27, 2016, as File Number: 16-0031939901.**

 

12.                               Lien evidenced by the UCC-1 Financing Statement with Lone Star Transportation LLC and MHC Kenworth Truck Dealership (additional debtor name missing from Certified Listing), as Debtors, and Convoy Servicing Company, as Secured Party, recorded with the Secretary of State of the State of Texas on October 25, 2016, as File Number: 16-0035138138.**

 

13.                               Lien evidenced by the UCC-1 Financing Statement with Lone Star Transportation, LLC, as Debtor, and Texas Star Bank, as Secured Party, recorded with the Secretary of State of the State of Texas on October 28, 2016, as File Number: 16-0035599846.**

 

14.                               Lien evidenced by the UCC-1 Financing Statement with Lone Star Transportation LLC and MHC Kenworth Truck Dealership (additional debtor name missing from Certified Listing), as Debtors, and Convoy Servicing Company, as Secured Party, recorded with the Secretary of State of the State of Texas on November 14, 2016, as File Number: #16-0037068748.

 

15.                               Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing, from J. Grady Randolph, Inc., as mortgagor to Origin Bank, as mortgagee, dated effective April 26, 2016 and recorded in Cherokee County, South Carolina, as Document No. 201600001796, Volume 84, Page 2200 on April 28, 2016.**

 

LST Equipment, Inc.

 

1.                                      Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing, from LST Equipment, Inc., as mortgagor to Origin Bank, as mortgagee, dated effective April 26, 2016 and recorded in Tulsa County, Oklahoma, as Document No. 2016039948 on April 29, 2016.**

 

2.                                      Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing, from LST Equipment, Inc., as mortgagor to Origin Bank, as mortgagee, dated effective April 26, 2016 and recorded in Cooke County, Texas, as Document No. 2016-65183 on April 28, 2016.**

 

26

 

3.                                      Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing, from LST Equipment, Inc., as mortgagor to Origin Bank, as mortgagee, dated effective April 26, 2016 and recorded in Harris County, Texas, as Document No. RP-2016-176550 on April 28, 2016.**

 

LST Holdings, Inc.

 

1.                                      N/A

 

Mashburn Trucking, Inc.

 

1.                                      N/A

 

Mid Seven Transportation Company

 

1.                                      Lien evidenced by the judgment lien with Mid Seven Transportation Company, as Debtor, and Charles R. Coffey, as Secured Party, recorded with the Polk County Recorder of the State of Iowa on July 25, 2013, as Case Number: 05771 CVCV008403.

 

2.                                      Lien evidenced by the judgment lien with Mid Seven Transportation Company, as Debtor, and Charles R. Coffey, as Secured Party, recorded with the Polk County Recorder of the State of Iowa on November 9, 2011, as Case Number: 05771 CVCV008898.

 

3.                                      Lien evidenced by the UCC-1 Financing Statement with Mid Seven Transportation Company, as Debtor, and EpicVue Capital LLC, as Secured Party, recorded with the Secretary of State of the State of Iowa on August 13, 2014, as File Number: X14024978-6.**

 

4.                                      Lien evidenced by the UCC-1 Financing Statement with Mid Seven Transportation Company, as Debtor, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Iowa on September 1, 2015, as File Number: P15004717-0.

 

5.                                      Lien evidenced by the UCC-1 Financing Statement with Mid Seven Transportation Company, as Debtor, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Iowa on October 1, 2015, as File Number: P15005299-5.

 

6.                                      Lien evidenced by the UCC-1 Financing Statement with Mid Seven Transportation Company, as Debtor, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Iowa on December 4, 2015, as File Number: P15006493-2.

 

National Rigging, Inc.

 

1.                                      N/A

 

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Randolph Brothers, LLC

 

1.                                      N/A

 

Smokey Point Distributing, Inc.

 

1.                                      Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and PNC Equipment Finance, LLC, as Secured Party, recorded with the Department of Licensing of the State of Washington on May 26, 2011, as File Number: 2011-146-8660-3.**

 

2.                                      Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and PNC Equipment Finance, LLC, as Secured Party, recorded with the Department of Licensing of the State of Washington on June 7, 2011, as File Number: 2011-158-0994-0.**

 

3.                                      Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Tom McLeod Software, Inc., as Secured Party, recorded with the Department of Licensing of the State of Washington on January 27, 2012, as File Number: 2012-030-7271-3.**

 

4.                                      Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Washington Federal, as Secured Party, recorded with the Department of Licensing of the State of Washington on June 18, 2014, as File Number: 2014-169- 2893-7.**

 

5.                                      Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Washington Federal, as Secured Party, recorded with the Department of Licensing of the State of Washington on July 3, 2014, as File Number: 2014-184-6879-0.**

 

6.                                      Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and EpicVue Capital LLC, as Secured Party, recorded with the Department of Licensing of the State of Washington on July 25, 2014, as File Number: 2014-206-1628-8.**

 

7.                                      Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Texas Capital Bank, N.A., as Secured Party, recorded with the Department of Licensing of the State of Washington on August 1, 2014, as File Number: 2014-213-3368-9.**

 

8.                                      Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and U.S. Bank Equipment Finance, A Division of U.S. Bank National Association, as Secured Party, recorded with the Department of Licensing of the State of Washington on August 22, 2014, as File Number: 2014-234-8412-9.**

 

9.                                      Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Transportation Alliance Bank Inc. dba TAB Bank, as Secured Party,

 

28

 

recorded with the Department of Licensing of the State of Washington on September 30, 2014, as File Number: 2014-273-6095-5.

 

10.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Washington Federal, as Secured Party, recorded with the Department of Licensing of the State of Washington on September 30, 2014, as File Number: 2014-273-6259-1. **

 

11.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Texas Capital Bank, N.A., as Secured Party, recorded with the Department of Licensing of the State of Washington on December 30, 2014, as File Number: 2014-364-6254-1.**

 

12.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Texas Capital Bank, N.A., as Secured Party, recorded with the Department of Licensing of the State of Washington on March 30, 2015, as File Number: 2015-089-1069-7.**

 

13.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Texas Capital Bank, N.A., as Secured Party, recorded with the Department of Licensing of the State of Washington on April 30, 2015, as File Number: 2015-120-9020-0.**

 

14.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Texas Capital Bank, N.A., as Secured Party, recorded with the Department of Licensing of the State of Washington on May 28, 2015, as File Number: 2015-148-5684-2.**

 

15.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Texas Capital Bank, N.A., as Secured Party, recorded with the Department of Licensing of the State of Washington on June 22, 2015, as File Number: 2015-173-1505-6.

 

16.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Texas Capital Bank, N.A., as Secured Party, recorded with the Department of Licensing of the State of Washington on July 22, 2015, as File Number: 2015-203-9044-6.

 

17.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Texas Capital Bank, N.A., as Secured Party, recorded with the Department of Licensing of the State of Washington on August 18, 2015, as File Number: 2015-230-5441-3.**

 

18.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Texas Capital Bank, N.A., as Secured Party, recorded with the Department of Licensing of the State of Washington on January 21, 2016, as File Number: 2016-021-2210-1.

 

29

 

19.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Texas Capital Bank, N.A., as Secured Party, recorded with the Department of Licensing of the State of Washington on May 4, 2016, as File Number: 2016-125-8120-2.**

 

20.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Fifth Third Equipment Finance Company, its successors and/or assigns, as Secured Party, recorded with the Department of Licensing of the State of Washington on May 24, 2016, as File Number: 2016-145- 3107-6.**

 

21.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Texas Capital Bank, N.A., as Secured Party, recorded with the Department of Licensing of the State of Washington on September 7, 2016, as File Number: 2016-251-8185-7.

 

22.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Fifth Third Equipment Finance Company, its successors and/or assigns, as Secured Party, recorded with the Department of Licensing of the State of Washington on September 12, 2016, as File Number: 2016-256-9320-6.**

 

23.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Fifth Third Equipment Finance Company, its successors and/or assigns, as Secured Party, recorded with the Department of Licensing of the State of Washington on October 26, 2016, as File Number: 2016-300-9944-4.**

 

24.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Texas Capital Bank, N.A., as Secured Party, recorded with the Department of Licensing of the State of Washington on December 19, 2016, as File Number: 2016-354-2669-6.

 

25.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Glasair Aviation LLC, as Secured Party, recorded with the Snohomish County District Court of the State of Washington on February 12, 2008, as File Number: S08-00028.

 

26.                               Lien evidenced by the UCC-1 Financing Statement with Smokey Point Distributing, Inc., as Debtor, and Sovereign Bank, as Secured Party, recorded with the Department of Licensing of the State of Washington on March 4, 2015, as File Number: 2015-063-4826-3.**

 

27.                               Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing (Washington), from Smokey Point Distributing, Inc., as grantor to First American Title Insurance Company, as trustee, for the benefit of Sovereign Bank, as beneficiary, dated effective February 19, 2015 and recorded in Snohomish County, Washington, as Document No. 2015022603 on February 26, 2015.**

 

28.                               Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing, from Smokey Point Distributing, Inc., as mortgagor to Origin Bank, as mortgagee, dated

 

30

 

effective April 26, 2016 and recorded Snohomish County, Washington, as Document No. 201604280467 on April 28, 2016.**

 

SPD Trucking, LLC

 

1.                                      N/A

 

TexR Assets 2, L.L.C.

 

1.                                      N/A

 

TexR Assets, L.L.C.

 

1.                                      N/A

 

TexR Equipment, LLC

 

1.                                      Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on March 17, 2011, as File Number: 11-0008022054.**

 

2.                                      Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on March 23, 2011, as File Number: 11-0008671983.**

 

3.                                      Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on April 12, 2011, as File Number: 11-0010856608.**

 

4.                                      Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on April 26, 2011, as File Number: 11-0012427533.**

 

5.                                      Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on April 26, 2011, as File Number: 11-0012427775.**

 

6.                                      Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on May 24, 2011, as File Number: 11-0015384336.**

 

31

 

7.                                      Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on March 8, 2012, as File Number: 12-0007357116.**

 

8.                                      Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on March 12, 2012, as File Number: 12-0007760588.**

 

9.                                      Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on May 8, 2012, as File Number: 12-0014564932.**

 

10.                               Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on July 24, 2013, as File Number: 13-0023523332.**

 

11.                               Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on June 30, 2014, as File Number: 14-0020737377.**

 

12.                               Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on August 11, 2014, as File Number: 14-0025658930.**

 

13.                               Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on August 20, 2014, as File Number: 14-0026753270.**

 

14.                               Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on September 5, 2014, as File Number: 14-0028472199.**

 

15.                               Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on September 24, 2014, as File Number: 14-0030502479.**

 

16.                               Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the 

 

32

 

Secretary of State of the State of Texas on October 9, 2014, as File Number: #14-0032356317.**

 

17.                               Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on April 20, 2016, as File Number: 16-0012595443.

 

18.                               Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on May 6, 2016, as File Number: 16-0014686123.

 

19.                               Lien evidenced by the UCC-1 Financing Statement with TexR Equipment, LLC, as Debtor, and Wells Fargo Equipment Finance, Inc., as Secured Party, recorded with the Secretary of State of the State of Texas on May 13, 2016, as File Number: 16-0015701768.

 

WTI Transport, Inc.

 

1.                                      Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc., as Debtor, and FCC Equipment Financing, Inc., as Secured Party, recorded with the Secretary of State of the State of Alabama on October 3, 2008, as File Number: 08-7088430.**

 

2.                                      Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc., as Debtor, and Compass Bank, as Secured Party, recorded with the Secretary of State of the State of Alabama on October 17, 2008, as File Number: 08-7096739.**

 

3.                                      Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc., as Debtor, and People’s Capital and Leasing Corp., as Secured Party, recorded with the Secretary of State of the State of Alabama on March 15, 2012, as File Number: 12-0154352.**

 

4.                                      Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc., as Debtor, and BancorpSouth Equipment Finance, a division of BancorpSouth Bank, as Secured Party, recorded with the Secretary of State of the State of Alabama on May 16, 2012, as File Number: 12-0269955.**

 

5.                                      Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc., as Debtor, and Capital One Equipment Leasing & Finance, as Secured Party, recorded with the Secretary of State of the State of Alabama on June 7, 2012, as File Number: 12-7152023.**

 

6.                                      Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc., as Debtor, and BancorpSouth Equipment Finance, a division of BancorpSouth Bank, as Secured Party, recorded with the  Secretary of State of the State of Alabama on September 14, 2012, as File Number: 12-7251857.**

 

7.                                      Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc., as Debtor, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the 

 

33

 

Secretary of State of the State of Alabama on February 20, 2014, as File Number: 14-0062639.**

 

8.                                      Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc., as Debtor, and ServisFirst Bank, as Secured Party, recorded with the Secretary of State of the State of Alabama on March 10, 2014, as File Number: 14-0086434.**

 

9.                                      Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc., as Debtor, and U.S. Bank Equipment Finance, a division of U.S. Bank National Association, as Secured Party, recorded with the Secretary of State of the State of Alabama on August 4, 2014, as File Number: 14-7602107.**

 

10.                               Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc., as Debtor, and EpicVue Capital LLC, as Secured Party, recorded with the Secretary of State of the State of Alabama on August 13, 2014, as File Number: 14-7630147.**

 

11.                               Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc., as Debtor, and Thompson Tractor Co., Inc., as Secured Party, recorded with the Secretary of State of the State of Alabama on September 28, 2014, as File Number: 14-7745801.**

 

12.                               Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc., as Debtor, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Alabama on September 1, 2015, as File Number: 15-0464192.

 

13.                               Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc., as Debtor, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Alabama on October 4, 2015, as File Number: 15-0636830.

 

14.                               Lien evidenced by the UCC-1 Financing Statement with WTI Transport, Inc., as Debtor, and Regions Commercial Equipment Finance, LLC, as Secured Party, recorded with the Secretary of State of the State of Alabama on April 7, 2016, as File Number: 16-0166192.

 

15.                               Lien evidenced by the judgment lien with WTI Transport Inc, James Anthony Eaton and Country Preferred Insurance Company, as Debtors, and Colleen S Williams, as Secured Party, recorded with the Tuscaloosa County Circuit Court of the State of Alabama on November 28, 2016, as Case Number: CV-2016-000286.00.

 

16.                               Lien evidenced by the judgment lien with WTI Transport, Inc., as Debtor, and Joseph Jones, as Secured Party, recorded with the Tuscaloosa County Circuit Court of the State of Alabama on June 6, 2016, as Case Number: CV-2016-900620.00.

 

17.                               Lien evidenced by the judgment lien with WTI Transport Inc, as Debtor, and John Anthony Witherspoon, as Secured Party, recorded with the USDC - Northern of the State of Alabama on December 23, 2014, as Case Number: 7:14-cv-02462-JHE.

 

34

 

Schedule 6.06
 Existing Investments

 

None.

 

 

Schedule 6.07(bb)
 Contemplated Dispositions

 

None.

 

 

Schedule 6.07(dd)
 Sale and Lease-Back Transactions

 

None.

 

 

Schedule 6.08
 Transactions with Affiliates

 

None.

 

 

Schedule 9.01
 Website Address for Electronic Deliveries

 

https://daseke.securevdr.com

 

 

EXECUTION VERSION

 

EXHIBIT A-1

 

[FORM OF]
 ASSIGNMENT AND ASSUMPTION

 

This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein shall have the meanings given to them in the Term Loan Agreement identified below (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex I attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.  Attached as Annex II is the form of Administrative Questionnaire.

 

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Term Loan Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below, (i) all of the Assignor’s rights and obligations in its capacity as a Lender under the Term Loan Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below and (ii) to the extent permitted to be assigned under applicable Requirements of Law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Term Loan Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”).  In the case where the Assigned Interest covers all of the Assignor’s rights and obligations under the Term Loan Agreement, the Assignor shall cease to be a party thereto but shall continue to be entitled to the benefits of Sections 2.12, 2.13, 2.14 and 9.03 of the Term Loan Agreement with respect to facts and circumstances occurring on or prior to the Effective Date and subject to its obligations hereunder and under Section 9.13 of the Term Loan Agreement.  Such sale and assignment is (i) subject to acceptance and recording thereof in the Register by the Administrative Agent pursuant to Section 9.05(b)(v) of the Term Loan Agreement, (ii) without recourse to the Assignor and (iii) except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.

 

1.             Assignor:               [·]

 

2.             Assignee:               [·]
                 [which is an Affiliate/Approved Fund of [identify Lender](1)]

 

3.             Borrower:              Daseke Companies, Inc., formerly known as Daseke, Inc. and successor by merger of HCAC Merger Sub, Inc.

 

4.             Administrative Agent:        Credit Suisse AG, Cayman Islands Branch, as administrative agent under the Term Loan Agreement

 

(1)  Select as applicable.

 

A-1-1

 

5.             Term Loan Agreement:      That certain Term Loan Agreement dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “Term Loan Agreement”), by and among, inter alios, Daseke, Inc., a Delaware corporation formerly known as Hennessy Capital Acquisition Corp. II, as Holdings, Daseke Companies, Inc., a Delaware corporation formerly known as Daseke, Inc. and the successor by merger of HCAC Merger Sub, Inc., as the Borrower, the Lenders from time to time party thereto and Credit Suisse AG, Cayman Islands Branch, in its capacities as administrative agent and collateral agent for the Lenders.

 

6.             Assigned Interest:

 

	
Aggregate Amount of
   Commitment/Loans
    	
 
    	
Class of
   Loans
   Assigned
    	
 
    	
Amount of
   Commitment/Loans
   Assigned(2)
    	
 
    	
Percentage Assigned of
   Commitment/Loans under
   Relevant Class(3)
    	
 
    	
CUSIP Number
    
	
$
    	
 
    	
 
    	
 
    	
 
    	
$
    	
 
    	
 
    	
%
    	
 
    
	
$
    	
 
    	
 
    	
 
    	
 
    	
$
    	
 
    	
 
    	
%
    	
 
    
	
$
    	
 
    	
 
    	
 
    	
 
    	
$
    	
 
    	
 
    	
%
    	
 
    

 

Effective Date:  [·] [·], 20[·] [TO BE INSERTED BY THE ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR].

 

7.             THE PARTIES HERETO ACKNOWLEDGE THAT ANY ASSIGNMENT TO ANY DISQUALIFIED INSTITUTION WITHOUT OBTAINING THE REQUIRED CONSENT OF THE BORROWER OR, TO THE EXTENT THE BORROWER’S CONSENT IS REQUIRED UNDER SECTION 9.05 OF THE TERM LOAN AGREEMENT BUT IS NOT OBTAINED, TO ANY OTHER PERSON, SHALL BE SUBJECT TO THE REMEDIES DESCRIBED IN SECTION 9.05 OF THE TERM LOAN AGREEMENT.

 

[Signature Page Follows]

 

(2)  Not to be less than $1,000,000 in the case of Term Loans unless the Borrower and the Administrative Agent otherwise consent.

 

(3)  Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

 

A-1-2

 

The terms set forth in this Assignment and Assumption are hereby agreed to:

 

	
 
    	
ASSIGNOR 
    
	
 
    	
 
    
	
 
    	
[NAME OF ASSIGNOR]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

A-1-3

 

o            ASSIGNEE HAS EXAMINED THE LIST OF DISQUALIFIED INSTITUTIONS AND (I) REPRESENTS AND WARRANTS THAT (A) IT IS NOT IDENTIFIED ON SUCH LIST AND (B) IT IS NOT AN AFFILIATE OF ANY INSTITUTION IDENTIFIED ON SUCH LIST [OTHER THAN, IN THE CASE OF THIS CLAUSE (B), A BONA FIDE DEBT FUND](4) AND (II) ACKNOWLEDGES THAT ANY ASSIGNMENT MADE TO AN AFFILIATE OF A DISQUALIFIED INSTITUTION (OTHER THAN A BONA FIDE DEBT FUND) SHALL BE SUBJECT TO SECTION 9.05 OF THE TERM LOAN AGREEMENT.(5)

 

	
 
    	
ASSIGNEE 
    
	
 
    	
 
    
	
 
    	
[NAME   OF ASSIGNEE]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
[Consented to and Accepted:] (6)
    

 

	
 
    	
CREDIT   SUISSE AG, CAYMAN ISLANDS
   BRANCH, as Administrative Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
[Consented   to:](7)
    

 

	
 
    	
DASEKE   COMPANIES, INC.,
   as the Borrower
    

 

(4)  Insert bracketed language if Assignee is a Bona Fide Debt Fund.

 

(5)  To be completed by Assignee.

 

(6)  To be added only if the consent of the Administrative Agent is required.

 

(7)  To be added only if the consent of the Borrower is required by Section 9.05(b)(i)(A) of the Term Loan Agreement.

 

A-1-4

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
     Name:
    
	
 
    	
 
    	
     Title:
    

 

A-1-5

 

ANNEX I TO EXHIBIT A-1

 

STANDARD TERMS AND CONDITIONS FOR
 ASSIGNMENT AND ASSUMPTION

 

1.             Representations and Warranties.

 

(a)           Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim, (iii) its Commitment, and the outstanding balances of its Loans, in each case without giving effect to assignments thereof which have not become effective, are as set forth herein and (iv) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) makes no representation or warranty and assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Term Loan Agreement, any other Loan Document or any other instrument or document furnished pursuant thereto (other than this Assignment and Assumption) or any collateral thereunder, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents, any other instrument or document furnished in connection therewith or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Restricted Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by Holdings, the Borrower, any of its Restricted Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document or any other instrument or document furnished pursuant thereto.

 

(b)           Assignee.  The Assignee (a) represents and warrants that (i) it is an Eligible Assignee and has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Term Loan Agreement, (ii) it is not an Affiliated Lender, (iii) it satisfies the requirements, if any, specified in the Term Loan Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iv) from and after the Effective Date, it shall be bound by the provisions of the Term Loan Agreement and the other Loan Documents as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (v) it has received a copy of the Term Loan Agreement and the Intercreditor Agreement, together with copies of the most recent financial statements referred to in Section 4.01(c) or the most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, (vi) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (vii) it has delivered a true and complete Administrative Questionnaire, (viii) it has examined the list of Disqualified Institutions and it is not (A) a Disqualified Institution or (B) an Affiliate of a Disqualified Institution [(other than, in the case of this Clause (B), a Bona Fide Debt Fund)](8) and (ix) if it is a Foreign Lender, attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to Section 2.14 of the Term Loan Agreement, duly completed and executed by the Assignee and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it deems appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, (ii) it appoints and authorizes the Administrative Agent to take such action on its behalf and to exercise such powers and discretion 

 

(8)  Insert bracketed language if Assignee is a Bona Fide Debt Fund Affiliate and not otherwise identified on the list of Disqualified Institutions.

 

Annex I to Exhibit A-1-1

 

under the Term Loan Agreement, the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto as are delegated to the Administrative Agent by the terms thereof, together with such powers as are reasonably incidental thereto, and (iii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

 

2.             Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.

 

3.             General Provisions.  This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and permitted assigns.  This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this Assignment and Assumption by facsimile or by email or other electronic transmission as a “.pdf” or “.tif” attachment shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be construed in accordance with and governed by the laws of the State of New York.

 

A-1-2

	

    	
ANNEX II TO EXHIBIT A-1
    

 

ADMINISTRATIVE QUESTIONNAIRE

 

Daseke Companies, Inc.

 

	
Agent Information
    	
 
    	
Agent Closing Contact
    
	
Credit Suisse AG
    	
 
    	
Jason Golz
    
	
Eleven Madison Avenue
    	
 
    	
Tel: (919) 994-6378
    
	
New York, NY 10010
    	
 
    	
Fax: (212) 322-2291
    
	
 
    	
 
    	
E-Mail: Jason.golz@credit-suisse.com
    

 

Agent Wire Instructions

The Bank of New York Mellon

ABA 021000018

Account Name:  CS Agency Cayman Account

Account Number:  8900492627

 

It is very important that all of the requested information be completed accurately and that this questionnaire be returned promptly.  If your institution is sub-allocating its allocation, please fill out an administrative questionnaire for each legal entity.

 

Legal Name of Lender to appear in Documentation:

 

	
 
    

 

	
Signature   Block Information:
    	
 
    

 

	
·                  Signing Credit Agreement
    	
o Yes    o No
    
	
·                  Coming in via Assignment
    	
o Yes    o No
    

 

	
Type   of Lender:
    	
 
    

 

(Bank, Asset Manager, Broker/Dealer, CLO/CDO; Finance Company, Hedge Fund, Insurance, Mutual Fund, Pension Fund, Other Regulated Investment Fund, Special Purpose Vehicle, Other-please specify)

 

Lender Parent:

	
Lender Domestic Address
    	
 
    	
Lender Eurodollar   Address
    
	
 
    	
 
    	
 
    

 

Annex II to Exhibit A-1-1

 

 

Contacts/Notification Methods:  Borrowings, Paydowns, Interest, Fees, etc.

 

	
 
    	
Primary Credit Contact
    	
Secondary Credit Contact
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Company:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Telephone:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
E-Mail Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Primary Operations Contact
    	
 
    	
Secondary Operations Contact
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Company:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Telephone:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
E-Mail Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Lender’s Domestic Wire Instructions
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Bank Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ABA/Routing No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Account Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Account No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
FFC Account Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
FFC Account No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Reference:
    	
 
    	
 
    

 

Annex II to Exhibit A-1-2

 

2

 

Tax Documents

 

NON-U.S. LENDER INSTITUTIONS:

 

I. Corporations:

If your institution is incorporated outside of the United States for U.S. federal income tax purposes, and is the beneficial owner of the interest and other income it receives, you must complete one of the following three tax forms, as applicable to your institution: a.) Form W-8BEN (Certificate of Foreign Status of Beneficial Owner), b.) Form W-8ECI (Income Effectively Connected to a U.S. Trade or Business), or c.) Form W-8EXP (Certificate of Foreign Government or Governmental Agency).

 

A U.S. taxpayer identification number is required for any institution submitting Form W-8ECI.  It is also required on Form W-8BEN for certain institutions claiming the benefits of a tax treaty with the U.S.  Please refer to the instructions when completing the form applicable to your institution.  In addition, please be advised that U.S. tax regulations do not permit the acceptance of faxed forms.  An original tax form must be submitted.

 

II. Flow-Through Entities:

If your institution is organized outside the U.S., and is classified for U.S. federal income tax purposes as either a Partnership, Trust, Qualified or Non-Qualified Intermediary, or other non-U.S. flow-through entity, an original Form W-8IMY (Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding) must be completed by the intermediary together with a withholding statement.  Flow-through entities other than Qualified Intermediaries are required to include tax forms for each of the underlying beneficial owners.

 

Please refer to the instructions when completing this form.  In addition, please be advised that U.S. tax regulations do not permit the acceptance of faxed forms.  Original tax form(s) must be submitted.

 

U.S. LENDER INSTITUTIONS:

 

If your institution is incorporated or organized within the United States, you must complete and return Form W-9 (Request for Taxpayer Identification Number and Certification).  Please be advised that we request that you submit an original Form W-9.

 

Pursuant to the language contained in the tax section of the Credit Agreement, the applicable tax form for your institution must be completed and returned prior to the first payment of income.  Failure to provide the proper tax form when requested may subject your institution to U.S. tax withholding.

 

Annex II to Exhibit A-1-3

 

 

EXHIBIT A-2

 

[FORM OF]
 AFFILIATED LENDER
 ASSIGNMENT AND ASSUMPTION

 

This Affiliated Lender Assignment and Assumption (the “Affiliated Lender Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Affiliated Lender] (the “Assignee”).  Capitalized terms used but not defined herein shall have the meanings given to them in the Term Loan Agreement identified below (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex I attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Affiliated Lender Assignment and Assumption as if set forth herein in full.  Attached as Annex II is the form of Administrative Questionnaire.

 

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Term Loan Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below, (i) all of the Assignor’s rights and obligations in its capacity as a Term Lender under the Term Loan Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below and (ii) to the extent permitted to be assigned under applicable Requirements of Law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Term Lender) against any Person, whether known or unknown, arising under or in connection with the Term Loan Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”).  In the case where the Assigned Interest covers all of the Assignor’s rights and obligations under the Term Loan Agreement, the Assignor shall cease to be a party thereto but shall continue to be entitled to the benefits of Sections 2.12, 2.13, 2.14 and 9.03 of the Term Loan Agreement with respect to facts and circumstances occurring on or prior to the Effective Date and subject to its obligations hereunder and under Section 9.13 of the Term Loan Agreement.  Such sale and assignment is (i) subject to acceptance and recording thereof in the Register by the Administrative Agent pursuant to Section 9.05(b)(v) of the Term Loan Agreement, (ii) without recourse to the Assignor and (iii) except as expressly provided in this Affiliated Lender Assignment and Assumption, without representation or warranty by the Assignor.

 

1.             Assignor:               [·]

 

2.             Assignee:               [·] and is an Affiliated Lender [that is a Non-Debt Fund Affiliate / Holdings, the Borrower or a subsidiary thereof].

 

3.             Borrower:              Daseke Companies, Inc., formerly known as Daseke, Inc. and successor by merger of HCAC Merger Sub, Inc.

 

4.             Administrative Agent:  Credit Suisse AG, Cayman Islands Branch, as administrative agent under the Term Loan Agreement

 

A-2-1

 

5.             Term Loan Agreement:      That certain Term Loan Agreement dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “Term Loan Agreement”), by and among, inter alios, Daseke, Inc., a Delaware corporation formerly known as Hennessy Capital Acquisition Corp. II, as Holdings, Daseke Companies, Inc., a Delaware corporation formerly known as Daseke, Inc. and the successor by merger of HCAC Merger Sub, Inc., as the Borrower, the Lenders from time to time party thereto and Credit Suisse AG, Cayman Islands Branch, in its capacities as administrative agent and collateral agent for the Lenders.

 

6.             Assigned Interest:

 

	
Aggregate Amount of
   Commitment/Loans
    	
 
    	
Class of
   Loans Assigned
    	
 
    	
Amount of
   Commitment/Loans
   Assigned(9)
    	
 
    	
Percentage Assigned of
   Commitment/Loans under
   Relevant Class(10)
    	
 
    	
CUSIP
   Number
    	
 
    
	
$
    	
 
    	
 
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    	
 
    	
 
    
	
$
    	
 
    	
 
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    	
 
    	
 
    
	
$
    	
 
    	
 
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    	
 
    	
 
    

 

7.                                      THE PARTIES HERETO ACKNOWLEDGE THAT ANY ASSIGNMENT TO AN AFFILIATED LENDER WHICH RESULTS IN THE AGGREGATE PRINCIPAL AMOUNT OF TERM LOANS THEN HELD BY ALL AFFILIATED LENDERS EXCEEDING THE AFFILIATED LENDER CAP (AFTER GIVING EFFECT TO ANY SUBSTANTIALLY SIMULTANEOUS CANCELLATION OF TERM LOANS) SHALL BE NULL AND VOID WITH RESPECT TO THE AMOUNT IN EXCESS OF THE AFFILIATED LENDER CAP (SUBJECT TO SECTION 9.05(g)(ii) OF THE TERM LOAN AGREEMENT).

 

Effective Date:  [·] [·], 20[·] [TO BE INSERTED BY THE ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR].

 

[Signature Page Follows]

 

(9)  Not to be less than $1,000,000 unless the Borrower and the Administrative Agent otherwise consent.

 

(10)  Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

 

A-2-2

 

The terms set forth in this Affiliated Lender Assignment and Assumption are hereby agreed to:

 

	
 
    	
ASSIGNOR
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[NAME   OF ASSIGNOR]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

A-2-3

 

	
 
    	
ASSIGNEE
    
	
 
    	
 
    
	
 
    	
[NAME   OF ASSIGNEE]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

	
 
    	
[Consented   to:](11)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DASEKE   COMPANIES, INC.,
   as the Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

(11)  To be added only if the consent of the Borrower is required by Section 9.05(b)(i)(A) of the Term Loan Agreement.

 

A-2-4

 

ANNEX I TO EXHIBIT A-2

 

STANDARD TERMS AND CONDITIONS FOR
 AFFILIATED LENDER ASSIGNMENT AND ASSUMPTION

 

1.             Representations and Warranties.

 

(a)           Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim, (iii) its Commitment in respect of Term Loans, and the outstanding balances of its Term Loans, in each case without giving effect to assignments thereof which have not become effective, are as set forth herein, and (iv) it has full power and authority, and has taken all action necessary, to execute and deliver this Affiliated Lender Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) makes no representation or warranty and assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Term Loan Agreement, any other Loan Document or any other instrument or document furnished pursuant thereto (other than this Affiliated Lender Assignment and Assumption) or any collateral thereunder, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents, any other instrument or document furnished in connection therewith or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Restricted Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by Holdings, the Borrower, any of its subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document or any other instrument or document furnished pursuant thereto.  In connection with any Dutch Auction, the Assignor acknowledges and agrees that in connection with this Affiliated Lender Assignment and Assumption, (1) the applicable Affiliated Lender or its Affiliates may have, and later may come into possession of, material non-public information with respect to Holdings, the Borrower and/or any subsidiary thereof and/or their respective Securities “MNPI”), (2) the Assignor has independently, without reliance on the applicable Affiliated Lender, the Investors, Holdings, the Borrower, any of their respective subsidiaries, the Administrative Agent, the Arrangers or any of their respective Affiliates, made its own analysis and determination to participate in such assignment notwithstanding the Assignor’s lack of knowledge of the MNPI, (3) none of the applicable Affiliated Lenders, the Investors, Holdings, the Borrower, any of their respective subsidiaries, the Administrative Agent, the Arrangers or any of their respective Affiliates shall have any liability to the Assignor, and the Assignor hereby waives and releases, to the extent permitted by applicable Requirements of Law, any claims it may have against the applicable Affiliated Lender, the Investors, Holdings, the Borrower, each of its respective subsidiaries, the Administrative Agent, the Arrangers and their respective Affiliates, under applicable Requirements of Law or otherwise, with respect to the nondisclosure of the MNPI and (4) the MNPI may not be available to the Administrative Agent, the Arrangers or the other Lenders.

 

(b)           Assignee.  The Assignee (a) represents and warrants that (i) it is an Affiliated Lender and has full power and authority, and has taken all action necessary, to execute and deliver this Affiliated Lender Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Term Loan Agreement, (ii) it satisfies the requirements, if any, specified in the Term Loan Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Term Loan Agreement and the other Loan Documents as a Lender (including as an Affiliated Lender) thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender (including as an Affiliated Lender) thereunder, (iv) it has received a copy of the Term Loan Agreement and the Intercreditor Agreement, together with copies of the most recent financial statements referred to in Section 4.01(c) or delivered pursuant to Section 5.01 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Affiliated Lender Assignment and Assumption and to purchase the Assigned Interest on the basis of

 

Annex I to Exhibit A-2-1

 

 

which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, (v) if it is a Foreign Lender, attached to the Affiliated Lender Assignment and Assumption is any documentation required to be delivered by it pursuant to Section 2.14 of the Term Loan Agreement, duly completed and executed by the Assignee, (vi) after giving effect to this Affiliated Lender Assignment and Assumption and subject to the provisions of Section 9.05(g)(ii), the aggregate principal amount of all Term Loans then held by all Affiliated Lenders does not exceed the Affiliated Lender Cap (after giving effect to any substantially simultaneous cancellations thereof), and (vii) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (viii) it has delivered a true and complete Administrative Questionnaire and (ix) in the case of Holdings, the Borrower or any of its subsidiaries, (1) no Indebtedness incurred under any Additional Revolving Facility has been utilized to fund the purchase of the Assigned Interest, (2) no Event of Default exists at the time of acceptance of bids for any Dutch Auction or the confirmation of any open market purchase and (3) the Term Loans in respect of such Assigned Interest shall be retired and cancelled promptly after the Effective Date; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, (ii) it appoints and authorizes the Administrative Agent to take such action on its behalf and to exercise such powers and discretion under the Term Loan Agreement, the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto as are delegated to the Administrative Agent, by the terms thereof, together with such powers as are reasonably incidental thereto, and (iii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.  The Assignee agrees that, solely in its capacity as an Affiliated Lender, it will not be entitled to (a) attend (including by telephone) or participate in any meeting or discussions (or portion thereof) among the Administrative Agent or any Lender or among Lenders to which the Loan Parties or their representatives are not invited or (b) receive any information or material prepared by the Administrative Agent or any Lender or any communication by or among the Administrative Agent and one or more Lenders, except to the extent such information or materials have been made available by the Administrative Agent or any Lender to any Loan Party or its representatives (and in any case, other than the right to receive notices of Borrowings, prepayments and other administrative notices in respect of its Term Loans required to be delivered to Lenders pursuant to Article 2 of the Term Loan Agreement).

 

2.             Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (other than Assigned Interests assigned to Holdings, the Borrower or any of its subsidiaries) (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.

 

3.             General Provisions.  This Affiliated Lender Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and permitted assigns.  This Affiliated Lender Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this Affiliated Lender Assignment and Assumption by facsimile or by email or other electronic transmission as a “.pdf” or “.tif” attachment shall be effective as delivery of a manually executed counterpart of this Affiliated Lender Assignment and Assumption.  This Affiliated Lender Assignment and Assumption shall be construed in accordance with and governed by the laws of the State of New York.

 

Annex I to Exhibit A-2-2

 

	

    	
ANNEX II TO EXHIBIT A-2
    

 

ADMINISTRATIVE QUESTIONNAIRE

 

[Daseke, Inc.][Daseke Companies, Inc.]

 

	
Agent Information
    	
 
    	
Agent Closing Contact
    
	
Credit Suisse AG
    	
 
    	
Jason Golz
    
	
Eleven Madison Avenue
    	
 
    	
Tel: (919) 994-6378
    
	
New York, NY 10010
    	
 
    	
Fax: (212) 322-2291
    
	
 
    	
 
    	
E-Mail: Jason.golz@credit-suisse.com
    

 

Agent Wire Instructions

The Bank of New York Mellon

ABA 021000018

Account Name:  CS Agency Cayman Account

Account Number:  8900492627

 

It is very important that all of the requested information be completed accurately and that this questionnaire be returned promptly.  If your institution is sub-allocating its allocation, please fill out an administrative questionnaire for each legal entity.

 

Legal Name of Lender to appear in Documentation:

 

	
 
    

 

	
Signature   Block Information:
    	
 
    

 

	
·      Signing Credit Agreement
    	
o Yes    o No
    
	
·      Coming in via Assignment
    	
o Yes    o No
    

 

	
Type of Lender:
    	
 
    

 

(Bank, Asset Manager, Broker/Dealer, CLO/CDO; Finance Company, Hedge Fund, Insurance, Mutual Fund, Pension Fund, Other Regulated Investment Fund, Special Purpose Vehicle, Other-please specify)

 

Lender Parent:

 

	
Lender Domestic Address
    	
Lender Eurodollar Address
    
	
 
    	
 
    

 

Annex II to Exhibit A-2-1

 

 

Contacts/Notification Methods:  Borrowings, Paydowns, Interest, Fees, etc.

 

	
 
    	
Primary Credit Contact
    	
Secondary Credit Contact
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Company:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Telephone:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
E-Mail Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Primary Operations Contact
    	
 
    	
Secondary Operations Contact
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Company:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Telephone:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
E-Mail Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Lender’s Domestic Wire Instructions
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Bank Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ABA/Routing No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Account Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Account No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
FFC Account Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
FFC Account No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Reference:
    	
 
    	
 
    

 

Annex II to Exhibit A-2-3

 

2

 

Tax Documents

 

NON-U.S. LENDER INSTITUTIONS:

 

I. Corporations:

If your institution is incorporated outside of the United States for U.S. federal income tax purposes, and is the beneficial owner of the interest and other income it receives, you must complete one of the following three tax forms, as applicable to your institution: a.) Form W-8BEN (Certificate of Foreign Status of Beneficial Owner), b.) Form W-8ECI (Income Effectively Connected to a U.S. Trade or Business), or c.) Form W-8EXP (Certificate of Foreign Government or Governmental Agency).

 

A U.S. taxpayer identification number is required for any institution submitting Form W-8ECI.  It is also required on Form W-8BEN for certain institutions claiming the benefits of a tax treaty with the U.S.  Please refer to the instructions when completing the form applicable to your institution.  In addition, please be advised that U.S. tax regulations do not permit the acceptance of faxed forms.  An original tax form must be submitted.

 

II. Flow-Through Entities:

If your institution is organized outside the U.S., and is classified for U.S. federal income tax purposes as either a Partnership, Trust, Qualified or Non-Qualified Intermediary, or other non-U.S. flow-through entity, an original Form W-8IMY (Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding) must be completed by the intermediary together with a withholding statement.  Flow-through entities other than Qualified Intermediaries are required to include tax forms for each of the underlying beneficial owners.

 

Please refer to the instructions when completing this form.  In addition, please be advised that U.S. tax regulations do not permit the acceptance of faxed forms.  Original tax form(s) must be submitted.

 

U.S. LENDER INSTITUTIONS:

 

If your institution is incorporated or organized within the United States, you must complete and return Form W-9 (Request for Taxpayer Identification Number and Certification).  Please be advised that we request that you submit an original Form W-9.

 

Pursuant to the language contained in the tax section of the Credit Agreement, the applicable tax form for your institution must be completed and returned prior to the first payment of income.  Failure to provide the proper tax form when requested may subject your institution to U.S. tax withholding.

 

Annex II to Exhibit A-2-3

 

3

 

EXHIBIT B

 

[FORM OF]
 BORROWING REQUEST

 

Credit Suisse AG, Cayman Islands Branch, 
 as Administrative Agent for the Lenders referred to below
 Eleven Madison Avenue., 6th Floor

New York, NY 10010

Tel.: 919-994-6369

Attn: Loan Operations — Agency Manager

Fax: 212-322-2291

Email: agency.loanops@credit-suisse.com

 

[·] [·], 20[·](12)

Ladies and Gentlemen:

 

Reference is hereby made to that certain Term Loan Agreement dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “Term Loan Agreement”), by and among, inter alios, Hennessy Acquisition Corp. II, a Delaware corporation, to be renamed as new Daseke, Inc., as Holdings, HCAC Merger Sub Inc., a Delaware corporation, which will be merged with and into the existing Daseke, Inc., a Delaware corporation, to be renamed as Daseke Companies, Inc., a Delaware corporation, as the Borrower, the Lenders from time to time party thereto and Credit Suisse AG, Cayman Islands Branch, in its capacities as administrative agent and collateral agent for the Lenders.  Terms defined in the Term Loan Agreement are used herein with the same meanings unless otherwise defined herein.

 

The undersigned hereby gives you notice pursuant to Section 2.03 of the Term Loan Agreement that it requests the Borrowings under the Term Loan Agreement to be made on [·] [·], 20[·], and in that connection sets forth below the terms on which the Borrowings are requested to be made:

 

	
(A)
    	
Borrower: [Daseke, Inc.](13)   [Daseke Companies, Inc.](14)
    	
 
    
	
 
    	
 
    	
 
    
	
(B)
    	
Date of Borrowing (which shall be a Business Day)
    	
[·]
    
	
 
    	
 
    	
 
    
	
(C)
    	
Aggregate Amount of Borrowing(15)
    	
$[·]
    

 

(12)  The Administrative Agent must be notified in writing or by telephone (with such telephonic notification to be promptly confirmed in writing), which must be received by the Administrative Agent (by hand delivery, fax or other electronic transmission (including “.pdf” or “.tif”)) not later than (i) 1:00 p.m. three Business Days prior to the requested day of any Borrowing of Eurocurrency Rate Loans (or one Business Day in the case of any Borrowing of Eurocurrency Rate Loans to be made on the Closing Date) and (ii) 11:00 a.m. one Business Day prior to the date of any Borrowing of ABR Loans (or, in each case, such later time as is acceptable to the Administrative Agent); provided, however, that if the Borrower wishes to request Eurocurrency Rate Loans having an Interest Period of other than one, two, three or six months in duration as provided in the definition of “Interest Period,” (A) the applicable notice from the Borrower must be received by the Administrative Agent not later than 1:00 p.m. four Business Days prior to the requested date of such Borrowing (or such later time as is acceptable to the Administrative Agent), whereupon the Administrative Agent shall give prompt notice to the appropriate Lenders of such request and determine whether the requested Interest Period is available to them and (B) not later than 12:00 p.m. three Business Days before the requested date of such Borrowing, the Administrative Agent shall notify the Borrower whether or not the requested Interest Period is available to the appropriate Lenders.

 

(13)  To be used for Borrowings on the Closing Date.

 

(14)  To be used for Borrowings after the Closing Date.

 

(15)  Subject to Section 2.02(c) of Term Loan Agreement.

 

B-1

 

	
(D)
    	
Type of Borrowing(16)
    	
[·]
    
	
 
    	
 
    	
 
    
	
(E)
    	
Class of Borrowing
    	
[·]
    
	
 
    	
 
    	
 
    
	
(F)
    	
Interest Period(17) (in the case of a Eurocurrency Rate Borrowing)
    	
[·]
    
	
 
    	
 
    	
 
    
	
(G)
    	
Amount, Account Number and Location
    	
 
    

 

	
Wire   Transfer Instructions:
    	
 
    
	
Amount
    	
$[·]
    	
 
    
	
Bank:
    	
 [·]
    	
 
    
	
ABA No.:
    	
 [·]
    	
 
    
	
Account No.:
    	
 [·]
    	
 
    
	
Account Name:
    	
 [·]
    	
 
    

 

[Signature Page Follows]

 

(16)  State whether a Eurocurrency Rate Borrowing or ABR Borrowing.  If no Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing.

 

(17)  Must be a period contemplated by the definition of “Interest Period”.  If no Interest Period is specified, then the Interest Period shall be of one-month’s duration.

 

B-2

 

	
 
    	
[DASEKE, INC.](18) [DASEKE   COMPANIES, INC.](19)
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

(18)  To be used for Borrowings on the Closing Date.

 

(19)  To be used for Borrowings after the Closing Date.

 

B-3

 

EXHIBIT C

 

[FORM OF]
 COMPLIANCE CERTIFICATE

 

[·] [·], 20[·]

 

To:          The Administrative Agent and each of the Lenders parties to the
                 Term Loan Agreement described below

 

This Compliance Certificate is furnished pursuant to that certain Term Loan Agreement dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “Term Loan Agreement”), by and among, inter alios, Daseke, Inc., a Delaware corporation, as Holdings, Daseke Companies, Inc., a Delaware corporation, as the Borrower, the Lenders from time to time party thereto and Credit Suisse AG, Cayman Islands Branch, in its capacities as administrative agent and collateral agent for the Lenders.  Unless otherwise defined herein, capitalized terms used in this Compliance Certificate have the meanings ascribed thereto in the Term Loan Agreement.

 

THE UNDERSIGNED HEREBY CERTIFIES, AS A RESPONSIBLE OFFICER OF THE BORROWER, IN SUCH CAPACITY AND NOT IN AN INDIVIDUAL CAPACITY, THAT:

 

1.             I am the duly elected [•] of the Borrower and a Responsible Officer of the Borrower;

 

2.             I have reviewed the terms of the Term Loan Agreement and I have made, or have caused to be made under my supervision, a review in reasonable detail of the transactions and conditions of the Borrower and its subsidiaries, on a consolidated basis, during the [Fiscal Quarter][Fiscal Year] covered by the attached financial statements;

 

3.             [The attached financial statements fairly present, in all material respects, in accordance with GAAP, the consolidated financial condition of Holdings as at the dates indicated and its income and cash flows for the periods indicated, subject to the absence of footnotes and changes resulting from audit and normal year-end adjustments; provided that any comparison to a prior period is a comparison between the entity or entities, as applicable, that issued the financial statements at the applicable time.](20)

 

4.             [Except as described in the disclosure set forth below, the][The] examinations described in paragraph 2 did not disclose, and I have no knowledge of the existence of any condition or event which constitutes a Default or Event of Default that exists as of the date of this Compliance Certificate [and the disclosure set forth below specifies, in reasonable detail, the nature of any such condition or event and any action taken or proposed to be taken with respect thereto.]

 

5.             Attached as Schedule 1 hereto are calculations in reasonable detail demonstrating compliance with the covenants set forth in Section 6.12(a)(i) of the Term Loan Agreement.

 

6.             [Schedule 2 attached hereto sets forth reasonably detailed calculations of Excess Cash Flow for such Fiscal Year.](21)

 

(20)  Include to the extent the relevant Compliance Certificate is delivered in connection with unaudited quarterly financials.

 

(21)  Only required to the extent the relevant Compliance Certificate is delivered in connection with audited annual financial statements (commencing with the Fiscal Year ending on or about December 31, 2018).

 

C-1

 

7.             [Attached as Schedule 3 hereto is a list of the subsidiaries of the Borrower that identifies each subsidiary as a Restricted Subsidiary or an Unrestricted Subsidiary as of the date hereof.](22) [There is no change in the list of Restricted Subsidiaries and Unrestricted Subsidiaries since the later of the Closing Date and the date of the last Compliance Certificate.]

 

8.             [Attached as Schedule 4 hereto is a summary of the pro forma adjustments necessary to eliminate the accounts of Unrestricted Subsidiaries from the attached financial statements.](23)

 

9.             [The description below sets forth the exceptions to paragraph 2 by listing, in reasonable detail, the nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

 

 

[Signature Page Follows]

 

(22)  Only required if a subsidiary has been designated as an Unrestricted Subsidiary since delivery of the last Compliance Certificate.

 

(23)  Only required if a subsidiary of the Borrower is or has been designated as an Unrestricted Subsidiary at the time of delivery of the applicable Compliance Certificate.

 

C-2

 

The foregoing certifications, together with the information set forth in the Schedules hereto and the financial statements delivered with this Compliance Certificate in support hereof, are made and delivered as of the date first written above. (24)

 

	
 
    	
DASEKE COMPANIES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

(24)  Please note the deadlines for satisfaction of the following requirements correspond with the delivery of each Compliance Certificate (unless otherwise indicated):

 

1.              The delivery of documents and deliverables required under Section 4.02(a) of the Security Agreement relating to any (i) certificated Securities and/or (ii) Tangible Chattel Paper and/or Instruments having a face amount in excess of $2,500,000 in each case acquired during the Fiscal Quarter covered by the attached financial statements.  NOTE:  If any Loan Party acquires (i) certificated Securities and/or (ii) Tangible Chattel Paper and/or Instruments having a face amount in excess of $2,500,000 during the fourth Fiscal Quarter of any Fiscal Year, the documents and deliverables required under Section 4.02(a) of the Security Agreement must be delivered within 90 days after the end of such Fiscal Quarter.

 

2.              The delivery of documents and deliverables required under Section 4.03(d) of the Security Agreement relating to any registration (or any application for registration of) any Patent, Trademark, Copyright or Exclusive Copyright License with the United States Patent and Trademark Office or the United States Copyright Office, as applicable, filed or acquired during the Fiscal Quarter covered by the attached financial statements.  NOTE:  If any Loan Party acquires any registration (or files any application for registration) of any Parent, Trademark, Copyright, or Exclusive Copyright License with the United States Patent and Trademark Office or the United States Copyright Office, as applicable, during the fourth Fiscal Quarter of any Fiscal Year, the documents and deliverables required under Section 4.03(c) of the Security Agreement must be delivered within 90 days after the end of such Fiscal Quarter.

 

3.              The delivery of the documents required under Section 4.04 of the Security Agreement relating to any Commercial Tort Claim with an individual value (as reasonably estimated by the Borrower) in excess of $2,500,000 acquired after the Closing Date.  NOTE:  If any Loan Party acquires any Commercial Tort Claim with an individual value (as reasonably estimated by the Borrower) in excess of $2,500,000 during the fourth Fiscal Quarter of any Fiscal Year, the documents and deliverables required under Section 4.04 of the Security Agreement must be delivered within 90 days after the end of such Fiscal Quarter.

 

4.              To the extent the relevant Compliance Certificate is delivered in connection with audited annual financial statements, delivery of the Perfection Certificate Supplement required by Section 5.01(j) of the Term Loan Agreement.

 

5.              The delivery of the documents required to be delivered under Section 5.12(a) of the Term Loan Agreement as a result of (i) the formation or acquisition after the Closing Date of any Restricted Subsidiary that is a Domestic Subsidiary (other than an Excluded Subsidiary), (ii) the designation of any Unrestricted Subsidiary as a Restricted Subsidiary (other than an Excluded Subsidiary), (iii) any Restricted Subsidiary that is a Domestic Subsidiary ceasing to be an Immaterial Subsidiary and/or (iv) any Restricted Subsidiary that was an Excluded Subsidiary ceasing to be an Excluded Subsidiary, in each case during the Fiscal Quarter covered by the attached financial statements.  NOTE: upon the taking of any action or the occurrence of any event described in clauses (i) through (iv) during the fourth Fiscal Quarter of any Fiscal Year, the documents required to be delivered under Section 5.12(a) of the Term Loan Agreement must be delivered within 45 days after the end of such Fiscal Quarter.

 

C-3

 

SCHEDULE 1

 

Calculation of Total Leverage Ratio and Minimum Liquidity

 

Schedule 1 to Exhibit C

 

 

SCHEDULE 2

 

Calculation of Excess Cash Flow

 

Schedule 2 to Exhibit C

 

 

SCHEDULE 3

 

List of Restricted Subsidiaries and Unrestricted Subsidiaries

 

Schedule 3 to Exhibit C

 

 

SCHEDULE 4

 

Summary of Pro Forma Adjustments

 

Schedule 4 to Exhibit C

 

 

EXHIBIT D

[FORM OF]
 INTEREST ELECTION REQUEST

 

Credit Suisse AG, Cayman Islands Branch, 
 as Administrative Agent for the Lenders referred to below
 Eleven Madison Avenue., 6th Floor

New York, NY 10010

Tel.: 919-994-6369

Attn: Loan Operations — Agency Manager

Fax: 212-322-2291

Email: agency.loanops@credit-suisse.com

 

[·] [·], 20[·](25)

 

Ladies and Gentlemen:

 

Reference is hereby made to that certain Term Loan Agreement dated as of Febrary 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “Term Loan Agreement”), by and among, inter alios, Hennessy Acquisition Corp. II, a Delaware corporation, which will be renamed the new Daseke, Inc., as Holdings, HCAC Merger Sub Inc., a Delaware corporation, which will be merged with and into the existing Daseke, Inc., a Delaware corporation, and be renamed as Daseke Companies, Inc., as the Borrower, the Lenders from time to time party thereto and Credit Suisse AG, Cayman Islands Branch, in its capacities as administrative agent and collateral agent for the Lenders.  Terms defined in the Term Loan Agreement are used herein with the same meanings unless otherwise defined herein.

 

The undersigned hereby gives you notice pursuant to Section 2.08 of the Term Loan Agreement of an interest rate election, and in that connection sets forth below the terms thereof:

 

(A)          [on [insert applicable date] (which is a Business Day), the undersigned will convert $[•](26) of the aggregate outstanding principal amount of the [Term][Additional Revolving] Loans, bearing interest at the [ABR][Eurocurrency] Rate, into a [Eurocurrency Rate][ABR] Loan [and, in the case of a Eurocurrency Rate Loan, having an Interest Period of [•] month(s)](27)[; and][.]]

 

(25)  The Administrative Agent must be notified in writing or by telephone (with such telephonic notification to be promptly confirmed in writing), which must be received by the Administrative Agent (by hand delivery, fax or other electronic transmission (including “.pdf” or “.tif”)) not later than 1:00 p.m. (i) three Business Days prior to the requested day of any conversion or continuation of Eurocurrency Rate Loans (or one Business Day in the case of any conversion or continuation of Eurocurrency Rate Loans on the Closing Date) and (ii) one Business Day prior to the date of any conversion of any Borrowing to ABR Loans or any continuation of any Borrowing as ABR Loans (or, in each case, such later time as is acceptable to the Administrative Agent); provided, however, that if the Borrower wishes to request a conversion or continuation of Eurocurrency Rate Loans with an Interest Period of other than one, two, three or six months in duration as provided in the definition of “Interest Period,” (A) the applicable notice from the Borrower must be received by the Administrative Agent not later than 1:00 p.m. four Business Days prior to the requested date of such conversion or continuation, whereupon the Administrative Agent shall give prompt notice to the appropriate Lenders of such request and determine whether the requested Interest Period is available to them and (B) not later than 12:00 p.m. three Business Days before the requested date of such conversion or continuation, the Administrative Agent shall notify the Borrower whether or not the requested Interest Period is available to the appropriate Lenders.

 

(26)  Subject to Section 2.02(c) of the Term Loan Agreement.

 

(27)  Must be a period contemplated by the definition of “Interest Period”.

 

D-1

 

(B)          [on [insert applicable date] (which is a Business Day), the undersigned will continue $[•] of the aggregate outstanding principal amount of the [Term][Additional Revolving] Loans bearing interest at the Eurocurrency Rate, as Eurocurrency Rate Loans having an Interest Period of [•] month(s)(28).]

 

[Signature Page Follows]

 

(28)  Must be a period contemplated by the definition of “Interest Period”.

 

D-2

 

	
 
    	
[DASEKE, INC.][DASEKE   COMPANIES, INC.](29)
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    

 

(29)  To be updated in line with the then-existing Borrower entity.

 

D-3

 

EXECUTION VERSION

 

[FORM OF]
 PERFECTION CERTIFICATE

 

February 27, 2017

 

Reference is hereby made to (i) that certain Term Loan Agreement, dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “Term Loan Agreement”), by and among, inter alios, Hennessy Capital Acquisition Corp. II, a Delaware corporation, which upon the consummation of the Merger will be renamed as Daseke, Inc., as Holdings (“Holdings”), HCAC Merger Sub Inc., a Delaware corporation (“Merger Sub”), which will be merged with and into Daseke Companies, Inc., a Delaware corporation (“Daseke”), as the Borrower, the lenders from time to time party thereto, Credit Suisse AG, Cayman Islands Branch, in its capacities as the administrative agent and collateral agent (the “Term Loan Administrative Agent”) for the Lenders, (ii) that certain Pledge and Security Agreement, dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “Term Loan Security Agreement”), by and among the Loan Parties from time to time party thereto and the Term Loan Administrative Agent, (iii) that certain Fifth Amended and Restated Revolving Credit and Security Agreement, dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified in effect on the date hereof, the “ABL Credit Agreement” and, together with the Term Loan Agreement, each, a “Credit Agreement” and, collectively, the “Credit Agreements”), by and among, inter alios, Holdings, Daseke, the other borrowers from time to time party thereto, the lenders from time to time party thereto and PNC Bank, National Association, in its capacities as administrative agent for the lenders (the “ABL Administrative Agent” and, together with the Term Loan Administrative Agent, each, an “Administrative Agent” and collectively, the “Administrative Agents”), and  (iv) that certain Security Agreement, dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “ABL Security Agreement” and, together with the Term Loan Security Agreement, each, a “Security Agreement” and collectively, the “Security Agreements”), by and among the Loan Parties from time to time party thereto and the ABL Administrative Agent.  Capitalized terms used but not defined herein have the meanings assigned to such terms in the relevant Security Agreement.

 

As used herein, the term “Grantor” means each Loan Party.

 

As of the date hereof, the undersigned hereby represents and warrants to each Administrative Agent as follows:

 

10.          Names.  (a) The exact legal name of each Grantor, as such name appears in its respective Organizational Documents filed with the Secretary of State of such Grantor’s jurisdiction of organization is set forth in Schedule 1(a).  Each Grantor is the type of entity disclosed next to its name in Schedule 1(a).  Also set forth in Schedule 1(a) is the Federal Taxpayer Identification Number of each Grantor and the jurisdiction of organization of each Grantor.

 

(b)           Except as otherwise disclosed in Schedule 1(c) or Schedule 1(d), set forth in Schedule 1(b) hereto is any other legal name that any, together with the date of the relevant change, in the past five years.

 

(c)           Set forth in Schedule 1(c) is a list of the information required by Section 1(a) (excluding the Federal Taxpayer Identification Number) of this certificate for any other Person (i) to which any Grantor became the successor by merger, consolidation or acquisition or (ii) that has been liquidated into, or transferred all or substantially all of its assets to, any Grantor, at any time within the past five years.

 

1

 

(d)           Except as set forth in Schedule 1(d), or as otherwise disclosed in Schedule 1(c), no Grantor has changed its jurisdiction of organization or form of entity at any time during the past four months.

 

11.          Locations.  (a)    The chief executive office of each Grantor is currently located at the address set forth for such Grantor in Schedule 2(a).

 

(b)           Except as otherwise disclosed in Schedule 2(a), set forth in Schedule 2(b) are all other locations where any Grantor currently maintains any Collateral consisting of Inventory (including property in possession of a third party (e.g., a warehouseman or other bailee or on consignment), other than Inventory in transit, in each case with a value (at cost) exceeding $2,500,000.

 

12.          Stock Ownership and Other Equity Interests.  Attached hereto as Schedule 3 is a true and correct list of all of the issued and outstanding stock, partnership interests, limited liability Grantor membership interests or other equity interests owned by any Grantor other than Excluded Assets, the beneficial owners of such stock, partnership interests, membership interests or other equity interests and the percentage of the total issued and outstanding stock, partnership interests, membership interests or other equity interests of the relevant issuer represented thereby.

 

13.          Instruments and Tangible Chattel Paper.  Attached hereto as Schedule 4 is a true and correct list of all Instruments (other than checks to be deposited in the ordinary course of business) and Tangible Chattel Paper, in each case having a face amount exceeding $2,500,000, held by any Grantor as of the date hereof, including the names of the obligors, the amounts owing and the due dates.

 

14.          Intellectual Property.  (a) Attached hereto as Schedule 5(a) is a schedule setting forth all of each Grantor’s United States Patents and United States Trademarks registered with and published by (or applied for in) the United States Patent and Trademark Office (excluding, for the avoidance of doubt, any United States Patent or United States Trademark that has expired or been abandoned, but including United States Trademarks that would constitute Collateral upon the filing of a “Statement of Use” or an “Amendment to Allege Use” with respect thereto), including the name of the registered owner and the registration or publication number (or, if applicable, the applicant and the application number) of each such United States Patent and United States Trademark.

 

(b)             Attached hereto as Schedule 5(b)(i) is a schedule setting forth all of each Grantor’s Copyrights registered with (or applied for in) the United States Copyright Office (the “USCO”) (excluding, for the avoidance of doubt, any Copyright that has expired or been abandoned), including the name of the registered owner and the registration number (or, if applicable, the applicant and the application number) of each such Copyright.

 

(c)           Attached hereto as Schedule 5(b)(ii) is a schedule setting forth all of each Grantor’s exclusive licenses to Copyrights recorded with the USCO, including, but not limited to, the relevant signatories to each such license along with the date of execution thereof and the recordation number of the licensed Copyright.

 

15.          Commercial Tort Claims.  Attached hereto as Schedule 6 is a true and correct list of all Commercial Tort Claims asserting damages with an individual value of at least $2,500,000 (as reasonably determined by the Borrower), held by any Grantor, including a brief description thereof.

 

2

 

16.          Real Property.

 

(a)           Attached hereto as Schedule 7(a) is a list of all (i) real property owned or leased by each Loan Party, and (ii) addresses and uses of each parcel of real property. Except as described on Schedule 7(a) attached hereto, no Loan Party has entered into any mortgages, leases, subleases, tenancies, franchise agreements, licenses or other occupancy arrangements as owner, mortgagor, lessor, sublessor, licensor, franchisor or grantor with respect to any of the real property described on Schedule 7(a).

 

(b)           Schedule 7(b) attached hereto sets forth all third parties (other than any third party locations used for maintenance and repair in the ordinary course of business) (“Bailees”) with possession of any Collateral (including equipment) of the Loan Parties, including the name and address of such Bailee, a description of the equipment in each Bailee’s possession and the location of such equipment (if none please so state).

 

17.          Motor Vehicles. Attached hereto as Schedule 8 is a true and correct list as of February [·], 2017 of all motor vehicles (including, for the avoidance of doubt, all tractors, trailers and equipment used for transport of inventory) and other goods covered or represented (or required to be covered or represented) by a certificate of title issued under the laws of a State in the United States owned by any Loan Party, together with (a) a description of such vehicles or equipment (including make, model and VIN, if applicable), (b) applicable state of registration in respect of such vehicles or equipment and (c) the net book value of such motor vehicle or equipment.

 

18.          Other Assets: A Loan Party owns the following kinds of assets:

 

	
Aircraft:
    	
Yes o
    	
No o
    
	
 
    	
 
    	
 
    
	
Vessels, boats or ships:
    	
Yes o
    	
No o
    
	
 
    	
 
    	
 
    
	
Railroad rolling stock:
    	
Yes o
    	
No o
    

 

If the answer is yes to any of these other types of assets, please describe on Schedule 9.

 

19.          Letter of Credit Rights. Letter-of-Credit Rights. Attached hereto as Schedule 10 is a true and correct list of all letters of credit issued in favor of any Loan Party, as beneficiary.

 

20.          Extraordinary Transactions. Except for those purchases, mergers, amalgamations, acquisitions, continuations, consolidations, and other transactions described in Schedule 11 attached hereto in the five years immediately preceding the date hereof, all of the Collateral has been originated by each Grantor in the ordinary course of business or consists of goods which have been acquired by such Grantor in the ordinary course of business.

 

21.          Other Collateral. Attached hereto as Schedule 12 is a true and correct list of all of the following types of collateral, if any, owned or held by each Grantor: all agreements and contracts with any Governmental Authority, in each case to the extent the value thereof is in excess of $2,500,000.

 

[Signature Page Follows]

 

3

 

IN WITNESS WHEREOF, the undersigned has hereunto signed this Perfection Certificate as of the date first written of above.

 

	
 
    	
HENNESSY CAPITAL ACQUISITION CORP. II
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HCAC MERGER SUB INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
After giving effect to the Acquisition and the Merger:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DASEKE COMPANIES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

E-4

 

SCHEDULE 1(A)

 

LEGAL NAMES

 

	
Legal Name
    	
 
    	
Jurisdiction
    	
 
    	
Type
    	
 
    	
Federal Taxpayer 
   Identification Number
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

E-5

 

SCHEDULE 1(B)

 

PRIOR ORGANIZATIONAL NAMES

 

	
Company
    	
 
    	
Prior Legal Name
    	
 
    	
Date of Change
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

E-6

 

SCHEDULE 1(C)

 

PREDECESSOR ENTITIES

 

	
Company
    	
 
    	
Action
    	
 
    	
Legal Name of 
   Predecessor 
   Entity
    	
 
    	
Jurisdiction of 
   Organization of 
   Predecessor Entity
    	
 
    	
Date
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

E-7

 

SCHEDULE 1(D)

 

CHANGES IN JURISDICTION OR FORM; OTHER NAMES

 

Changes in Jurisdiction or Form

 

	
Company
    	
 
    	
Current Jurisdiction
   of Organization/Form
    	
 
    	
Prior Jurisdiction of
    Organization/Form
    	
 
    	
Date of Change
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

E-8

 

SCHEDULE 2(A)

 

CHIEF EXECUTIVE OFFICE ADDRESSES

 

	
Company
    	
 
    	
Address
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    

 

E-9

 

SCHEDULE 2(B)

 

LOCATIONS OF INVENTORY

 

	
Company
    	
 
    	
Address
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    

 

E-10

 

SCHEDULE 3

 

PLEDGED STOCK

 

	
Issuer
    	
 
    	
Holder
    	
 
    	
Certificate No.
    	
 
    	
No. Shares/Interest
    	
 
    	
% of Issued and
    Outstanding
    Shares
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

E-11

 

SCHEDULE 4

 

INSTRUMENTS AND TANGIBLE CHATTEL PAPER

 

1.                                      Promissory Notes/Instruments:

 

	
Obligee
    	
 
    	
Obligor
    	
 
    	
Principal Amount
    	
 
    	
Maturity
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

2.                                      Tangible Chattel Paper:

 

E-12

 

SCHEDULE 5(A)

 

PATENTS AND TRADEMARKS

 

PATENTS

 

	
Register Owner
    	
 
    	
Serial Number
    	
 
    	
Description
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

PATENT APPLICATIONS

 

	
Applicant
    	
 
    	
Application Number
    	
 
    	
Description
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

TRADEMARKS

 

	
Registered Owner
    	
 
    	
Registration Number
    	
 
    	
Trademark
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

TRADEMARK APPLICATIONS

 

	
Applicant
    	
 
    	
Application Number
    	
 
    	
Trademark
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

E-13

 

SCHEDULE 5(B)(i)

 

OWNED COPYRIGHTS

 

COPYRIGHTS

 

	
Registered Owner
    	
 
    	
Registration Number
    	
 
    	
Title
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

COPYRIGHT APPLICATIONS

 

	
Applicant
    	
 
    	
Application Number
    	
 
    	
Title
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

E-14

 

SCHEDULE 5(B)(ii)

 

LICENSED COPYRIGHTS

 

COPYRIGHT LICENSES

 

	
Licensee
    	
 
    	
Registered Owner
    	
 
    	
Date of
   Execution
    	
 
    	
Recordation
   Number
    	
 
    	
Title
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

E-15

 

SCHEDULE 6

 

COMMERCIAL TORT CLAIMS

 

E-16

 

SCHEDULE 7(A)

 

REAL PROPERTY

 

	
State
    	
 
    	
City
    	
 
    	
Street
    	
 
    	
Country
    	
 
    	
Owned/Leased
    	
 
    	
Owner/Lessee
    	
 
    	
Primary Use
    	
 
    	
Encumbered
   by Mortgage
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

E-17

 

SCHEDULE 7(A)

 

REAL PROPERTY (CONT.)

 

Leases, Subleases, Tenancies, Franchise Agreements, Licenses or Other Occupancy Agreements Pursuant to which any Loan Party holds Landlord’s / Pledgor’s Interest

 

E-18

 

SCHEDULE 7(B)

 

BAILEES

 

E-19

 

SCHEDULE 8

 

MOTOR VEHICLES AND OTHER TITLED EQUIPMENT

 

[Attached]

 

E-20

 

SCHEDULE 9

 

OTHER ASSETS

 

E-21

 

SCHEDULE 10

 

LETTER OF CREDIT RIGHTS

 

E-22

 

SCHEDULE 11

 

EXTRAORDINARY TRANSACTIONS

 

	
Loan Party
    	
 
    	
Description of Transaction
   Including Parties Thereto
    	
 
    	
Date of Transaction
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

E-23

 

SCHEDULE 12

 

OTHER COLLATERAL

 

E-24

 

EXHIBIT F

[FORM OF]
 PERFECTION CERTIFICATE SUPPLEMENT

 

[·] [·], 20[·]

 

Reference is hereby made to (i) that certain Term Loan Agreement, dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “Term Loan Agreement”), by and among, inter alios, Hennessy Capital Acquisition Corp. II, a Delaware corporation, which upon the consummation of the Merger will be renamed as Daseke, Inc., as Holdings (“Holdings”), HCAC Merger Sub Inc., a Delaware corporation (“Merger Sub”), which will be merged with and into Daseke Companies, Inc., a Delaware corporation (“Daseke”), as the Borrower, the lenders from time to time party thereto, Credit Suisse AG, Cayman Islands Branch, in its capacities as the administrative agent and collateral agent (the “Term Loan Administrative Agent”) for the Lenders, (ii) that certain Pledge and Security Agreement, dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “Term Loan Security Agreement”), by and among the Loan Parties from time to time party thereto and the Term Loan Administrative Agent, (iii) that certain Fifth Amended and Restated Revolving Credit and Security Agreement dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified in effect on the date hereof, the “ABL Credit Agreement” and, together with the Term Loan Agreement, each, a “Credit Agreement” and, collectively, the “Credit Agreements”), by and among, inter alios, Holdings, Daseke, the other borrowers from time to time party thereto, the lenders from time to time party thereto and PNC Bank, National Association, in its capacities as administrative agent for the lenders (the “ABL Administrative Agent” and, together with the Term Loan Administrative Agent, each, an “Administrative Agent” and collectively, the “Administrative Agents”), and (iv) that certain Security Agreement, dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “ABL Security Agreement” and, together with the Term Loan Security Agreement, each, a “Security Agreement” and collectively, the “Security Agreements”), by and among the Loan Parties from time to time party thereto and the ABL Administrative Agent, and (v) the Perfection Certificate, dated as of February 27, 2017 (as supplemented by any perfection certificate and/or perfection certificate supplement delivered prior to the date hereof, the “Prior Perfection Certificate”), executed by the Loan Parties signatory thereto.  Capitalized terms used but not defined herein have the meanings assigned to such terms in the relevant Security Agreement.

 

As used herein, the term “Grantor” means the Loan Parties party to the Security Agreements as of the date hereof.

 

As of the date hereof, the undersigned hereby represents and warrants to each Administrative Agent as follows:

 

1.                                      Names.  (a) The exact legal name of each Grantor, as such name appears in its respective Organizational Documents filed with the Secretary of State of such Grantor’s jurisdiction of organization is set forth in Schedule 1(a).  Each Grantor is the type of entity disclosed next to its name in Schedule 1(a).  Also set forth in Schedule 1(a) is the Federal Taxpayer Identification Number of each Grantor and the jurisdiction of organization of each Grantor

 

(b)                                 Except as otherwise disclosed in Schedule 1(c) or Schedule 1(d), set forth in Schedule 1(b) hereto is any other legal name that any, together with the date of the relevant change, in the past five years, except for any such change already disclosed in the Prior Perfection Certificate.

 

(c)                                  Set forth in Schedule 1(c) is a list of the information required by Section 1(a) (excluding the Federal Taxpayer Identification Number) of this certificate for any other Person (i) to which any

 

F-1

 

Grantor became the successor by merger, consolidation or acquisition or (ii) that has been liquidated into, or transferred all or substantially all of its assets to, any Grantor, at any time within the past five years, except for any such information already disclosed in the Prior Perfection Certificate.

 

(d)                                 Except as set forth in Schedule 1(d), or as otherwise disclosed in Schedule 1(c), no Grantor has changed its jurisdiction of organization or form of entity at any time during the past four months.

 

2.                                      Locations.  (a) The chief executive office of each Grantor is currently located at the address set forth for such Grantor in Schedule 2(a).

 

(b)                                 Except as otherwise disclosed in Schedule 2(a), set forth in Schedule 2(b) are all other locations where any Grantor currently maintains any Collateral consisting of Inventory (including property in possession of a third party (e.g., a warehouseman or other bailee or on consignment), other than Inventory in transit, in each case with a value (at cost) exceeding $2,500,000.

 

3.                                      Stock Ownership and Other Equity Interests.  Attached hereto as Schedule 3 is a true and correct list of all of the issued and outstanding stock, partnership interests, limited liability membership interests or other equity interests owned by any Grantor other than Excluded Assets, the beneficial owners of such stock, partnership interests, membership interests or other equity interests and the percentage of the total issued and outstanding stock, partnership interests, membership interests or other equity interests of the relevant issuer represented thereby.

 

4.                                      Instruments and Tangible Chattel Paper.  Attached hereto as Schedule 4 is a true and correct list of all Instruments (other than checks to be deposited in the ordinary course of business) and Tangible Chattel Paper, in each case having a face amount exceeding $2,500,000, held by any Grantor as of the date hereof, including the names of the obligors, the amounts owing and the due dates.

 

5.                                      Intellectual Property.  (a) Attached hereto as Schedule 5(a) is a schedule setting forth all of each Grantor’s United States Patents and United States Trademarks registered with and published by (or applied for in) the United States Patent and Trademark Office (excluding, for the avoidance of doubt, any United States Patent or United States Trademark that has expired or been abandoned, but including United States Trademarks that would constitute Collateral upon the filing of a “Statement of Use” or an “Amendment to Allege Use” with respect thereto), including the name of the registered owner and the registration or publication number (or, if applicable, the applicant and the application number) of each such United States Patent and United States Trademark.

 

(b)                                 Attached hereto as Schedule 5(b) is a schedule setting forth all of each Grantor’s Copyrights registered with (or applied for in) the United States Copyright Office (the “USCO”) (excluding, for the avoidance of doubt, any Copyright that has expired or been abandoned), including the name of the registered owner and the registration number (or, if applicable, the applicant and the application number) of each such Copyright.

 

(c)                                  Attached hereto as Schedule 5(c) is a schedule setting forth all of each Grantor’s exclusive licenses to Copyrights recorded with the USCO, including, but not limited to, the relevant signatories to each such license along with the date of execution thereof and the recordation number of the licensed Copyright.

 

6.                                      Commercial Tort Claims.  Attached hereto as Schedule 6 is a true and correct list of all Commercial Tort Claims asserting damages with an individual value of at least $2,500,000 (as reasonably determined by the Borrower), held by any Grantor, including a brief description thereof.

 

F-2

 

7.                                      Real Property.

 

(b)                                 Attached hereto as Schedule 7(a) is a list of all (i) real property owned or leased by each Loan Party, and (ii) addresses and uses of each parcel of real property. Except as described on Schedule 7(a) attached hereto, no Loan Party has entered into any mortgages, leases, subleases, tenancies, franchise agreements, licenses or other occupancy arrangements as owner, mortgagor, lessor, sublessor, licensor, franchisor or grantor with respect to any of the real property described on Schedule 7(a).

 

(c)                                  Schedule 7(b) attached hereto sets forth all third parties (other than any third party locations used for maintenance and repair in the ordinary course of business) (“Bailees”) with possession of any Collateral (including equipment) of the Loan Parties, including the name and address of such Bailee, a description of the equipment in each Bailee’s possession and the location of such equipment (if none please so state).

 

8.                                      Motor Vehicles. Attached hereto as Schedule 8 is a true and correct list as of February [•], 2017 of all motor vehicles (including, for the avoidance of doubt, all tractors, trailers and equipment used for transport of inventory) and other goods covered or represented (or required to be covered or represented) by a certificate of title issued under the laws of a State in the United States owned by any Loan Party, together with (a) a description of such vehicles or equipment (including make, model and VIN, if applicable), (b) applicable state of registration in respect of such vehicles or equipment and (c) the net book value of such motor vehicle or equipment.

 

9.                                      Other Assets: A Loan Party owns the following kinds of assets:

 

	
Aircraft:
    	
Yes o
    	
No o
    
	
 
    	
 
    	
 
    
	
Vessels, boats or ships:
    	
Yes o
    	
No o
    
	
 
    	
 
    	
 
    
	
Railroad rolling stock:
    	
Yes o
    	
No o
    

 

If the answer is yes to any of these other types of assets, please describe on Schedule 9.

 

10.                               Letter of Credit Rights. Letter-of-Credit Rights. Attached hereto as Schedule 10 is a true and correct list of all letters of credit issued in favor of any Loan Party, as beneficiary.

 

11.                               Extraordinary Transactions. Except for those purchases, mergers, amalgamations, acquisitions, continuations, consolidations, and other transactions described in Schedule 11 attached hereto and those described in the Prior Perfection Certificate, in the five years immediately preceding the date hereof, all of the Collateral has been originated by each Grantor in the ordinary course of business or consists of goods which have been acquired by such Grantor in the ordinary course of business.

 

12.                               Other Collateral. Attached hereto as Schedule 12 is a true and correct list of all of the following types of collateral, if any, owned or held by each Grantor: all agreements and contracts with any Governmental Authority, in each case to the extent the value thereof is in excess of $2,500,000.

 

[Signature Page Follows]

 

F-3

 

IN WITNESS WHEREOF, the undersigned have signed this Perfection Certificate as of the date first written of above.

 

	
 
    	
[·]
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:[·]
    
	
 
    	
 
    	
Title:[·]
    

 

F-4

 

SCHEDULE 1(A)

 

LEGAL NAMES

 

Prior to the Acquisition and the Merger:

 

	
Legal Name
    	
 
    	
Jurisdiction
    	
 
    	
Type
    	
 
    	
Federal Taxpayer
   Identification Number
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

After the Acquisition and the Merger:

 

	
Legal Name
    	
 
    	
Jurisdiction
    	
 
    	
Type
    	
 
    	
Federal Taxpayer
   Identification Number
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

SCHEDULE 1(B)

 

PRIOR ORGANIZATIONAL NAMES

 

 

SCHEDULE 1(C)

 

PREDECESSOR ENTITIES

 

Prior to the Acquisition and the Merger:

 

	
Grantor
    	
 
    	
Action
    	
 
    	
Legal Name of
   Predecessor
   Entity
    	
 
    	
Jurisdiction of
   Organization of
   Predecessor Entity
    	
 
    	
Date
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

After the Acquisition and the Merger:

 

	
Grantor
    	
 
    	
Action
    	
 
    	
Legal Name of
   Predecessor
   Entity
    	
 
    	
Jurisdiction of
   Organization of
   Predecessor Entity
    	
 
    	
Date
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

SCHEDULE 1(D)

 

CHANGES IN JURISDICTION OR FORM; OTHER NAMES

 

 

SCHEDULE 2(A)

 

CHIEF EXECUTIVE OFFICE ADDRESSES

 

Prior to the Acquisition and the Merger:

 

	
Grantor
    	
 
    	
Address
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

After the Acquisition and the Merger:

 

	
Grantor
    	
 
    	
Address
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

 

SCHEDULE 2(B)

 

LOCATIONS OF INVENTORY

 

Prior to the Acquisition and the Merger:

 

	
Grantor
    	
 
    	
Address
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

After the Acquisition and the Merger:

 

	
Grantor
    	
 
    	
Address
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

 

SCHEDULE 3

 

PLEDGED STOCK

 

Prior to the Acquisition and the Merger:

 

	
Issuer
    	
 
    	
Holder
    	
 
    	
Certificate No.
    	
 
    	
No. Shares/Interest
    	
 
    	
% of Issued and
   Outstanding
   Shares
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

After the Acquisition and the Merger:

 

	
Issuer
    	
 
    	
Holder
    	
 
    	
Certificate No.
    	
 
    	
No. Shares/Interest
    	
 
    	
% of Issued and
   Outstanding
   Shares
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

SCHEDULE 4

 

INSTRUMENTS AND TANGIBLE CHATTEL PAPER

 

3.             Promissory Notes/Instruments:

 

4.             Tangible Chattel Paper:

 

 

SCHEDULE 5(A)

 

PATENTS AND TRADEMARKS

 

PATENTS

 

PATENT APPLICATIONS

 

TRADEMARKS

 

	
Registered Owner
    	
 
    	
Registration Number
    	
 
    	
Trademark
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

TRADEMARK APPLICATIONS

 

 

SCHEDULE 5(B)

OWNED COPYRIGHTS

 

COPYRIGHTS

 

COPYRIGHT APPLICATIONS

 

 

SCHEDULE 5(C)

 

LICENSED COPYRIGHTS

 

COPYRIGHT LICENSES

 

 

SCHEDULE 6

 

COMMERCIAL TORT CLAIMS

 

 

SCHEDULE 7(A)

 

REAL PROPERTY

 

	
State
    	
 
    	
City
    	
 
    	
Street
    	
 
    	
Country
    	
 
    	
Owned/Leased
    	
 
    	
Owner/Lessee
    	
 
    	
Primary Use
    	
 
    	
Encumbered
   by Mortgage
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

SCHEDULE 7(A)

 

REAL PROPERTY (CONT.)

 

Leases, Subleases, Tenancies, Franchise Agreements, Licenses or Other Occupancy Agreements Pursuant to which any Loan Party holds Landlord’s / Pledgor’s Interest

 

 

SCHEDULE 7(B)

 

BAILEES

 

 

SCHEDULE 8

 

MOTOR VEHICLES AND OTHER TITLED EQUIPMENT

 

[Attached]

 

 

SCHEDULE 9

 

OTHER ASSETS

 

 

SCHEDULE 10

 

LETTER OF CREDIT RIGHTS

 

 

SCHEDULE 11

 

EXTRAORDINARY TRANSACTIONS

 

	
Loan Party
    	
 
    	
Description of Transaction
   Including Parties Thereto
    	
 
    	
Date of Transaction
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

SCHEDULE 12

 

OTHER COLLATERAL

 

F-24

 

EXHIBIT G

[FORM OF]
 PROMISSORY NOTE

 

	
$[·]
    	
New York, New York
    
	
 
    	
[·] [·], 20[·]
    

 

FOR VALUE RECEIVED, the undersigned Daseke Companies, Inc., a Delaware corporation formerly known as Daseke, Inc. and successor by merger of HCAC Merger Sub, Inc (the “Borrower”), promises to pay on demand to [•] (the “Lender”) or its registered assigns, at the office of Credit Suisse AG, Cayman Islands Branch (“Credit Suisse”) at [•], Term Loans in the principal amount of $[•] or such lesser amount as is outstanding from time to time, on the dates and in the amounts set forth in the Term Loan Agreement dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “Term Loan Agreement”), by and among, inter alios, Daseke, Inc., a Delaware corporation formerly known as Hennessy Acquisition Corp. II, as Holdings, the Borrower, the Lenders from time to time party thereto and Credit Suisse, in its capacities as administrative agent and collateral agent for the Lenders (the “Administrative Agent”).  The Borrower also promises to pay interest from the date of such Loans on the principal amount thereof from time to time outstanding, in like Dollars, at such office, in each case, in the manner and at the rate or rates per annum and payable on the dates provided in the Term Loan Agreement.  Terms used but not defined herein shall have the meanings assigned to such terms in the Term Loan Agreement.

 

The Borrower promises to pay interest on any overdue principal and, to the extent permitted by applicable Requirements of Law, overdue interest from the relevant due dates, in each case, in the manner, at the rate or rates and under the circumstances provided in the Term Loan Agreement.

 

The Borrower hereby waives diligence, presentment, demand, protest and notice of any kind to the extent possible under any applicable Requirements of Law.  The non-exercise by the holder hereof of any of its rights hereunder in any particular instance shall not constitute a waiver thereof in that or any subsequent instance.

 

All Borrowings evidenced by this promissory note and all payments and prepayments of the principal hereof and interest hereon and the respective dates thereof shall be endorsed by the holder hereof on the schedules attached hereto and made a part hereof or on a continuation thereof which shall be attached hereto and made a part hereof, or otherwise recorded by such holder in its internal records; provided, however, that the failure of the holder hereof to make such a notation or any error in such notation shall not affect the obligations of the Borrower under this Note.

 

This promissory note is one of the promissory notes referred to in the Term Loan Agreement that, among other things, contains provisions for the acceleration of the maturity hereof upon the happening of certain events, for optional and mandatory prepayment of the principal hereof prior to the maturity hereof and for the amendment or waiver of certain provisions of the Term Loan Agreement, all upon the terms and conditions therein specified.  This promissory note is entitled to the benefit of the Term Loan Agreement, and the obligations hereunder are guaranteed and secured as provided therein and in the other Loan Documents referred to in the Term Loan Agreement.

 

If any assignment by the Lender holding this promissory note occurs after the date of the issuance hereof, the Lender agrees that it shall, upon the effectiveness of such assignment or as promptly thereafter as practicable, surrender this promissory note to the Administrative Agent for cancellation.

 

THE ASSIGNMENT OF THIS PROMISSORY NOTE AND ANY RIGHTS WITH RESPECT THERETO ARE SUBJECT TO THE PROVISIONS OF THE TERM LOAN AGREEMENT,

 

G-1

 

INCLUDING THE PROVISIONS GOVERNING THE REGISTER AND THE PARTICIPANT REGISTER.

 

THIS PROMISSORY NOTE AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS PROMISSORY NOTE, WHETHER IN TORT, CONTRACT (AT LAW OR IN EQUITY) OR OTHERWISE, SHALL BE GOVERNED BY, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.

 

[Remainder of Page Intentionally Left Blank]

 

G-2

 

	
 
    	
DASEKE COMPANIES, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

G-3

 

SCHEDULE A

LOANS, CONVERSIONS AND REPAYMENTS OF ABR LOANS

 

	
Date
    	
 
    	
Amount of ABR
   Loans
    	
 
    	
Amount Converted to ABR
   Loans
    	
 
    	
Amount of Principal
   of ABR Loans Repaid
    	
 
    	
Amount of ABR
   Loans Converted to
   Eurocurrency Rate
   Loans
    	
 
    	
Unpaid Principal
   Balance of ABR
   Loans
    	
 
    	
Notation Made
   By
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Schedule A to Note

 

 

SCHEDULE B

 

LOANS, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF EUROCURRENCY RATE LOANS

 

	
Date
    	
 
    	
Amount of
   Eurocurrency
   Rate Loans
    	
 
    	
Amount Converted to
   Eurocurrency Rate
   Loans
    	
 
    	
Interest Period and
   Eurocurrency Rate
   with Respect Thereto
    	
 
    	
Amount of
   Principal of

Eurocurrency Rate
   Loans Repaid
    	
 
    	
Amount of
   Eurocurrency
   Rate Loans
   Converted to

ABR Loans
    	
 
    	
Unpaid
   Principal
   Balance of
   Eurocurrency
   Rate Loans
    	
 
    	
Notation
   Made By
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Schedule B to Note

 

 

SCHEDULE B

 

[FORM OF]
 FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT

 

This INTELLECTUAL PROPERTY SECURITY AGREEMENT is entered into as of [  ], 2017, (this “Agreement”), by the undersigned Loan Party (as defined in the Term Loan Agreement) (the “Grantor”), in favor of Credit Suisse AG, Cayman Islands Branch (“Credit Suisse”), as collateral agent (in such capacity, the “Collateral Agent”) for the Secured Parties.

 

Reference is made to that certain Term Loan Pledge and Security Agreement, dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time and in effect on the date hereof, the “Security Agreement”), among the Loan Parties from time to time party thereto and the Collateral Agent.  The Lenders (as defined in the Term Loan Agreement) have extended credit to the Borrower (as defined in Term Loan Agreement) subject to the terms and conditions set forth in that certain Term Loan Agreement, dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time and in effect on the date hereof, the “Term Loan Agreement”), by and among, inter alios, Daseke, Inc. (formerly known as Hennessy Acquisition Corp. II), a Delaware corporation, as Holdings, Daseke Companies, Inc. (formerly known as HCAC Merger Sub, Inc.), a Delaware corporation, as the Borrower, the Lenders from time to time party thereto and Credit Suisse, in its capacities as administrative agent and collateral agent for the Lenders.  The parties hereto agree as follows:

 

SECTION 1.  Terms.  Capitalized terms used in this Agreement and not otherwise defined herein have the meanings specified in the Security Agreement.

 

SECTION 2.  Grant of Security Interest.  As security for the prompt and complete payment or performance, as the case may be, in full of the Secured Obligations, the Grantor, pursuant to the Security Agreement, did and hereby does pledge, collaterally assign, mortgage, transfer and grant to the Collateral Agent, its successors and permitted assigns, on behalf of and for the ratable benefit of the Secured Parties, a continuing security interest in all of its right, title and interest in, to or under all of the following assets, whether now owned or at any time hereafter acquired by or arising in favor of the Grantor and regardless of where located (collectively, the “IP Collateral”):

 

A.            all Trademarks, including the Trademark registrations and applications for registration with the United States Patent and Trademark Office listed on Schedule I hereto;

 

B.            all Patents, including the issued Patents and pending Patent applications with the United States Patent and Trademark Office listed on Schedule II hereto

 

C.            all Copyrights, including the Copyright registrations and applications for registration with the United States Copyright Office and all Exclusive Copyright Licenses, in each case, listed on Schedule III hereto; and

 

D.            all proceeds and goodwill associated with any of the foregoing;

 

in each case to the extent the foregoing items constitute Collateral.  For avoidance of doubt, the security interest created hereby shall not extend to, and term “Collateral” shall not include any Excluded Assets (as defined by the Term Loan Agreement) including, any intent-to-use (or similar) Trademark application prior to the filing and acceptance of a “Statement of Use,” “Amendment to Allege Use” or similar filing with respect thereto, to the extent, if any, that, and solely during the period, if any, in which the grant of a security interest therein may impair the validity or enforceability of such intent-to-use Trademark application under applicable law.

 

B-1

 

SECTION 3.  Security Agreement.  The security interests granted to the Collateral Agent herein are granted in furtherance, and not in limitation of, the security interests granted to the Collateral Agent pursuant to the Security Agreement.  The Grantor hereby acknowledges and affirms that the rights and remedies of the Collateral Agent with respect to the IP Collateral are more fully set forth in the Security Agreement, the terms and provisions of which are hereby incorporated herein by reference as if fully set forth herein.  In the event of any conflict between the terms of this Agreement and the Security Agreement, the terms of the Security Agreement shall govern.

 

SECTION 4.  Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall constitute an original but all of which when taken together shall constitute but one contract.  Delivery of an executed counterpart to this Agreement by facsimile or other electronic transmission shall be as effective as delivery of a manually signed original.

 

SECTION 5.  Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

[Signature Pages Follow]

 

B-2

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.

 

	
 
    	
[PARTY NAME[S]]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

[Signature Page to Intellectual Property Security Agreement (Term Loan)]

 

 

SCHEDULE I

 

REGISTERED TRADEMARKS

 

TRADEMARK APPLICATIONS

 

Schedule I

 

 

SCHEDULE II

 

ISSUED PATENTS

 

PATENT APPLICATIONS

 

 

SCHEDULE III

 

REGISTERED COPYRIGHTS

 

COPYRIGHT APPLICATIONS

 

EXCLUSIVE COPYRIGHT LICENSES

 

 

EXHIBIT A

 

[FORM OF]
 INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT

 

This INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT is entered into as of [·] [·], 20[·] (this “IP Security Agreement Supplement”), by [·] ([each, a][the] “Grantor”) in favor of Credit Suisse AG, Cayman Islands Branch (“Credit Suisse”), as collateral agent (in such capacity, the “Collateral Agent”) for the Secured Parties.

 

Reference is made to that certain Pledge and Security Agreement, dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time and in effect on the date hereof, the “Security Agreement”), among the Loan Parties party thereto and the Collateral Agent.  The Lenders (as defined below) have extended credit to the Borrower (as defined in Term Loan Agreement (as defined below)) subject to the terms and conditions set forth in that certain Term Loan Agreement, dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time and in effect on the date hereof, the “Term Loan Agreement”), by and among, inter alios, Hennessy Acquisition Corp. II, a Delaware corporation, to be renamed as the new Daseke, Inc., as Holdings, HCAC Merger Sub Inc., a Delaware corporation, which will be merged with and into the existing Daseke, Inc., a Delaware corporation, and renamed Daseke Companies, Inc., a Delaware corporation, the Lenders from time to time party thereto and Credit Suisse, in its capacities as administrative agent and collateral agent for the Lenders.  Consistent with the requirements set forth in Sections 4.01 and 5.12 of the Term Loan Agreement, the [Grantor][Grantors] and the Collateral Agent have entered into that certain Intellectual Property Security Agreement, dated as of [·] [·], 20[·] (as amended, restated, amended and restated, supplemented or otherwise modified from time to time and in effect on the date hereof, the “IP Security Agreement”).  Under the terms of the Security Agreement, the Grantor has granted to the Collateral Agent for the benefit of the Secured Parties a security interest in the Additional Trademark Collateral (as defined below) and have agreed to execute this IP Security Agreement Supplement.  Now, therefore, the parties hereto agree as follows:

 

SECTION 1.  Terms.  Capitalized terms used in this IP Security Agreement Supplement and not otherwise defined herein have the meanings specified in the Security Agreement.

 

SECTION 2.  Grant of Security Interest.  As security for the prompt and complete payment or performance, as the case may be, in full of the Secured Obligations, [each][the] Grantor, pursuant to the Security Agreement, did and hereby does pledge, collaterally assign, mortgage, transfer and grant to the Collateral Agent, its successors and permitted assigns, on behalf of and for the ratable benefit of the Secured Parties, a continuing security interest in all of its right, title and interest in, to or under all of the following assets, whether now owned or at any time hereafter acquired by or arising in favor of the [such][the] Grantor and regardless of where located (collectively, the “Additional IP Collateral”):

 

A.            the Trademark registrations and registration applications in the United States Patent and Trademark Office listed on Schedule I hereto;

 

B.            the Patent registrations and pending applications in the United States Patent and Trademark Office listed on Schedule II hereto

 

C.            the Copyright registrations and pending applications for registration in the United States Copyright Office and all Exclusive Copyright Licenses, in each case, listed on Schedule III; and

 

Exhibit A to Exhibit H

 

 

D.            all proceeds of the foregoing;

 

in each case to the extent the foregoing items constitute Collateral.

 

SECTION 3.  Security Agreement.  The security interests granted to the Collateral Agent herein are granted in furtherance, and not in limitation of, the security interests granted to the Collateral Agent pursuant to the Security Agreement.  [Each][The] Grantor hereby acknowledges and affirms that the rights and remedies of the Collateral Agent with respect to the Additional IP Collateral are more fully set forth in the Security Agreement, the terms and provisions of which are hereby incorporated herein by reference as if fully set forth herein.  In the event of any conflict between the terms of this IP Security Agreement Supplement and the Security Agreement, the terms of the Security Agreement shall govern.

 

SECTION 4.  Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall constitute an original but all of which when taken together shall constitute but one contract.  Delivery of an executed counterpart to this Agreement by facsimile or other electronic transmission shall be as effective as delivery of a manually signed original.

 

SECTION 5.  Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

[Signature Pages Follow]

 

 

IN WITNESS WHEREOF, the parties hereto have duly executed this IP Security Agreement Supplement as of the day and year first above written.

 

	
 
    	
[·]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
[·]
    
	
 
    	
 
    	
Title:
    	
[·]
    

 

 

SCHEDULE I

 

TRADEMARKS

 

	
REGISTERED OWNER
    	
 
    	
REGISTRATION NUMBER
    	
 
    	
TRADEMARK
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

TRADEMARK APPLICATIONS

 

	
APPLICANT
    	
 
    	
APPLICATION NO.
    	
 
    	
TRADEMARK
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

SCHEDULE II

 

PATENTS

 

	
REGISTERED OWNER
    	
 
    	
SERIAL NUMBER
    	
 
    	
DESCRIPTION
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

PATENT APPLICATIONS

 

	
APPLICANT
    	
 
    	
APPLICATION NO.
    	
 
    	
DESCRIPTION
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

SCHEDULE III

 

COPYRIGHTS

 

	
REGISTERED OWNER
    	
 
    	
REGISTRATION NUMBER
    	
 
    	
TITLE
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

COPYRIGHT APPLICATIONS

 

	
APPLICANT
    	
 
    	
APPLICATION NUMBER
    	
 
    	
TITLE
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

EXCLUSIVE COPYRIGHT LICENSES

 

	
LICENSOR
    	
 
    	
LICENSEE
    	
 
    	
REGISTRATION
   NUMBER
    	
 
    	
TITLE
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

EXHIBIT I

 

[FORM OF]
 GUARANTY AGREEMENT

 

[CIRCULATED SEPARATELY]

 

1-1

 

EXHIBIT J

 

[FORM OF]
 PLEDGE AND SECURITY AGREEMENT

 

[CIRCULATED SEPARATELY]

 

J-1

 

EXHIBIT K-1

 

[FORM OF]
 U.S. TAX COMPLIANCE CERTIFICATE

 

 

 

(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to that certain Term Loan Agreement dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “Term Loan Agreement”), by and among HCAC Merger Sub, Inc. to be merged with and into the existing Daseke, Inc., a Delaware corporation and renamed as Daseke Companies, Inc., a Delaware corporation, as the Borrower, the Lenders from time to time party thereto and Credit Suisse AG, Cayman Islands Branch, in its capacities as administrative agent and collateral agent for the Lenders. Unless otherwise defined herein, terms defined in the Term Loan Agreement and used herein shall have the meanings given to them in the Term Loan Agreement.

 

Pursuant to the provisions of Section 2.14(f)(ii)(B)(3) of the Term Loan Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Promissory Notes evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a “10 percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The undersigned has furnished the Administrative Agent and the Borrower with a duly executed certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E (or any successor form).  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, or if a lapse in time or change in circumstances renders the information on this certificate obsolete, expired or inaccurate in any respect, the undersigned shall promptly so inform each of the Borrower and the Administrative Agent in writing and deliver promptly to the Borrower and the Administrative Agent an updated certificate or other appropriate documentation (including any new documentation reasonably requested by the Borrower or the Administrative Agent) or promptly notify the Borrower and the Administrative Agent in writing of its inability to do so, and (2) the undersigned shall have at all times furnished each of the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

	
[NAME OF LENDER]
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
Date: [·] [·], 20[·]
    	
 
    

 

K-1-1

 

EXHIBIT K-2

 

[FORM OF]
 U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to that certain Term Loan Agreement dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “Term Loan Agreement”), by and among HCAC Merger Sub, Inc. to be merged with and into the existing Daseke, Inc., a Delaware corporation and renamed as Daseke Companies, Inc., a Delaware corporation, as the Borrower, the Lenders from time to time party thereto and Credit Suisse AG, Cayman Islands Branch, in its capacities as administrative agent and collateral agent for the Lenders. Unless otherwise defined herein, terms defined in the Term Loan Agreement and used herein shall have the meanings given to them in the Term Loan Agreement.

 

Pursuant to the provisions of Section 2.14(f)(ii)(B)(4) of the Term Loan Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a “10 percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The undersigned has furnished its participating Lender with a duly executed certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E (or any successor form).  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, or if a lapse in time or change in circumstances renders the information on this certificate obsolete, expired or inaccurate in any respect, the undersigned shall promptly so inform such Lender in writing and deliver promptly to such Lender an updated certificate or other appropriate documentation (including any new documentation reasonably requested by such Lender) or promptly notify such Lender in writing of its inability to do so, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

	
[NAME OF PARTICIPANT]
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
Date: [·] [·], 20[·]
    	
 
    

 

K-2-1

 

EXHIBIT K-3

 

[FORM OF]
 U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to that certain Term Loan Agreement dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “Term Loan Agreement”), by and among HCAC Merger Sub, Inc. to be merged with and into the existing Daseke, Inc., a Delaware corporation and renamed as Daseke Companies, Inc., a Delaware corporation, as the Borrower, the Lenders from time to time party thereto and Credit Suisse AG, Cayman Islands Branch, in its capacities as administrative agent and collateral agent for the Lenders. Unless otherwise defined herein, terms defined in the Term Loan Agreement and used herein shall have the meanings given to them in the Term Loan Agreement.

 

Pursuant to the provisions of Section 2.14(f)(ii)(B)(4) of the Term Loan Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect to such participation, neither the undersigned nor any of its direct or indirect partners/members that is claiming the portfolio interest exemption is a “bank” extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members that is claiming the portfolio interest exemption is a “10 percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (v) none of its direct or indirect partners/members that is claiming the portfolio interest exemption is a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The undersigned has furnished its participating Lender with a duly executed IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E (or any successor form) or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E (or any successor form) from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, or if a lapse in time or change in circumstances renders the information on this certificate obsolete, expired or inaccurate in any respect, the undersigned shall promptly so inform such Lender in writing and deliver promptly to such Lender an updated certificate or other appropriate documentation (including any new documentation reasonably requested by such Lender) or promptly notify such Lender in writing of its inability to do so, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

	
[NAME OF PARTICIPANT]
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
Date: [·] [·], 20[·]
    	
 
    

 

K-3-1

 

EXHIBIT K-4

 

[FORM OF]
 U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to that certain Term Loan Agreement dated as of February 27, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “Term Loan Agreement”), by and among HCAC Merger Sub, Inc. to be merged with and into the existing Daseke, Inc., a Delaware corporation and renamed as Daseke Companies, Inc., a Delaware corporation, as the Borrower, the Lenders from time to time party thereto and Credit Suisse AG, Cayman Islands Branch, in its capacities as administrative agent and collateral agent for the Lenders. Unless otherwise defined herein, terms defined in the Term Loan Agreement and used herein shall have the meanings given to them in the Term Loan Agreement.

 

Pursuant to the provisions of Section 2.14(f)(ii)(B)(4) of the Term Loan Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Promissory Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any Promissory Note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Term Loan Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members that is claiming the portfolio interest exemption is a “bank” extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members that is claiming the portfolio interest exemption is a “10 percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (v) none of its direct or indirect partners/members that is claiming the portfolio interest exemption is a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The undersigned has furnished the Administrative Agent and the Borrower with a duly executed IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E (or any successor form) or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E (or any successor form) from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, or if a lapse in time or change in circumstances renders the information on this certificate obsolete, expired or inaccurate in any respect, the undersigned shall promptly so inform the Borrower and the Administrative Agent in writing and deliver promptly to the Borrower and the Administrative Agent an updated certificate or other appropriate documentation (including any new documentation reasonably requested by the Borrower or the Administrative Agent) or promptly notify the Borrower and the Administrative Agent in writing of its inability to do so, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

[Signature Page Follows]

 

K-4-1

 

	
[NAME OF LENDER]
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
Date: [·] [·], 20[·]
    	
 
    

 

K-4-2

 

[FORM OF]
  SOLVENCY CERTIFICATE

February 27, 2017

 

This Solvency Certificate (this “Solvency Certificate”) is being executed and delivered pursuant to Section 4.01(g) of that certain Term Loan Agreement dated as of February 27, 2017 (the “Term Loan Agreement”), by and among, inter alios, Hennessy Acquisition Corp. II, a Delaware corporation, to be renamed as the new Daseke, Inc., as Holdings, HCAC Merger Sub Inc., a Delaware corporation, which will be merged with the existing Daseke, Inc., a Delaware corporation and then renamed as Daseke Companies, Inc., a Delaware corporation (the “Borrower”), the Lenders from time to time party thereto and Credit Suisse AG, Cayman Islands Branch, in its capacities as administrative agent and collateral agent for the Lenders.  Capitalized terms used herein but not otherwise defined herein shall have the meanings assigned to such terms in the Term Loan Agreement.

 

I, R. Scott Wheeler, the Executive Vice President and Corporate Chief Financial Officer of the Borrower, in such capacity and not in an individual capacity, hereby certify as follows:

 

1.                                I am generally familiar with the businesses, financial position and assets of the Borrower and its subsidiaries, taken as a whole, and am duly authorized to execute this Solvency Certificate on behalf of the Borrower pursuant to the Term Loan Agreement; and

 

2.                                As of the date hereof and after giving effect to the Transactions and the incurrence of the indebtedness and obligations being incurred in connection with the Term Loan Agreement and the Transactions, that, (i) the sum of the debt (including contingent liabilities) of the Borrower and its subsidiaries, taken as a whole, does not exceed the fair value of the assets (on a going concern basis) of the Borrower and its subsidiaries, taken as a whole; (ii) the present fair saleable value of the assets of the Borrower and its subsidiaries, taken as a whole, is not less than the amount that will be required to pay the probable liabilities (including contingent liabilities) of the Borrower and its subsidiaries, taken as a whole, on their debts as they become absolute and matured; (iii) the capital of the Borrower and its subsidiaries, taken as a whole, is not unreasonably small in relation to the business of the Borrower and its subsidiaries, taken as a whole, contemplated as of the date hereof; and (iv) the Borrower and its subsidiaries, taken as a whole, do not intend to incur, or believe that they will incur, debts (including current obligations and contingent liabilities) beyond their ability to pay such debt as they mature in the ordinary course of business.  For the purposes hereof, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, I have executed this Solvency Certificate on the date first written above.

 

	
 
    	
DASEKE COMPANIES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
R. Scott Wheeler
    
	
 
    	
Title: 
    	
Executive   Vice President and Corporate Chief Financial Officer
    

 

[Signature Page To Solvency Certificate (Term Loan)]

 

 

EXHIBIT M

INTERCREDITOR AGREEMENT

 

[CIRCULATED SEPARATELY]

 

M-1

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