Document:

ex1012022creditagreement

EXECUTION Published CUSIP Number: 08930FAA2  Revolving Credit CUSIP Number: 08930FAC8  CREDIT AGREEMENT dated as of September 21, 2022 among  BIG LOTS, INC., as the Company,  the Subsidiaries from time to time party hereto as Subsidiary Borrowers, The other LOAN PARTIES from time to time party hereto,   The LENDERS from time to time party hereto,  and  PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent PNC CAPITAL MARKETS, LLC, HUNTINGTON NATIONAL BANK, TRUIST SECURITIES, INC., U.S. BANK NATIONAL ASSOCIATION and WELLS FARGO BANK, NATIONAL ASSOCIATION,  as Joint Bookrunners and Joint Lead Arrangers   and  PNC BANK, NATIONAL ASSOCIATION, HUNTINGTON NATIONAL BANK, TRUIST BANK, U.S. BANK NATIONAL ASSOCIATION and WELLS FARGO BANK, NATIONAL ASSOCIATION,  As Joint Syndication Agents and Co-Documentation Agents  10961936 

 

TABLE OF CONTENTS (continued)  i  Page ARTICLE I. DEFINITIONS ........................................................................................................................ 1 SECTION 1.01 Defined Terms .......................................................................................... 1 SECTION 1.02 Classification of Loans and Borrowings ................................................. 57 SECTION 1.03 Terms Generally ..................................................................................... 58 SECTION 1.04 Accounting Terms; GAAP...................................................................... 58 SECTION 1.05 Benchmark Replacement Notification .................................................... 59 SECTION 1.06 Status of Obligations ............................................................................... 59 SECTION 1.07 Exchange Rates ....................................................................................... 59 SECTION 1.08 Divisions ................................................................................................. 59 ARTICLE II. THE CREDITS ..................................................................................................................... 60 SECTION 2.01 Commitments .......................................................................................... 60 SECTION 2.02 Loans and Borrowings ............................................................................ 60 SECTION 2.03 Requests for Borrowings ........................................................................ 61 SECTION 2.04 Protective Advances ............................................................................... 62 SECTION 2.05 Swingline Loans and Overadvances ....................................................... 62 SECTION 2.06 Letters of Credit ...................................................................................... 64 SECTION 2.07 Funding of Borrowings ........................................................................... 71 SECTION 2.08 Interest Elections .................................................................................... 72 SECTION 2.09 Termination and Reduction of Commitments; Increase in  Commitments .......................................................................................... 74 SECTION 2.10 Repayment and Amortization of Loans; Evidence of Debt .................... 76 SECTION 2.11 Prepayment of Loans .............................................................................. 76 SECTION 2.12 Fees ......................................................................................................... 77 SECTION 2.13 Interest .................................................................................................... 78 SECTION 2.14 Rate Unascertainable; Increased Costs; Deposits Not Available;  Illegality; Benchmark Replacement Setting ........................................... 79 SECTION 2.15 Increased Costs ....................................................................................... 86 SECTION 2.16 Break Funding Payments ........................................................................ 87 SECTION 2.17 Withholding of Taxes; Gross-Up ............................................................ 88 SECTION 2.18 Payments Generally; Allocation of Proceeds; Sharing of Set-offs ......... 91 SECTION 2.19 Mitigation Obligations; Replacement of Lenders ................................... 94 SECTION 2.20 Defaulting Lenders ................................................................................. 94 SECTION 2.21 Returned Payments ................................................................................. 96 SECTION 2.22 Banking Services and Swap Agreements ............................................... 97 ARTICLE III. REPRESENTATIONS AND WARRANTIES ................................................................... 97 SECTION 3.01 Organization and Qualification; Power and Authority;  Compliance With Laws; Event of Default .............................................. 97 SECTION 3.02 Capitalization; Subsidiaries and Joint Ventures; Investment  Companies .............................................................................................. 97 SECTION 3.03 Validity and Binding Effect .................................................................... 98 SECTION 3.04 No Conflict; Material Agreements; Consents ......................................... 98 SECTION 3.05 Litigation................................................................................................. 98 SECTION 3.06 Financial Statements; No Material Adverse Effect; Beneficial  Ownership Certification .......................................................................... 98 SECTION 3.07 Margin Stock .......................................................................................... 99 SECTION 3.08 Full Disclosure ...................................................................................... 100 SECTION 3.09 Taxes ..................................................................................................... 100 SECTION 3.10 Properties, Patents, Trademarks, Copyrights, Licenses, Etc ................. 100 

 

TABLE OF CONTENTS (continued)  ii SECTION 3.11 Insurance ............................................................................................... 101 SECTION 3.12 ERISA Compliance .............................................................................. 101 SECTION 3.13 Environmental Matters ......................................................................... 101 SECTION 3.14 Labor Matters ........................................................................................ 101 SECTION 3.15 Solvency ............................................................................................... 102 SECTION 3.16 Anti-Terrorism Laws and Sanctions ..................................................... 102 SECTION 3.17 EEA Financial Institutions .................................................................... 102 SECTION 3.18 Security Interest in Collateral ............................................................... 102 SECTION 3.19 Credit Card Agreements ....................................................................... 102 SECTION 3.20 Plan Assets; Prohibited Transactions .................................................... 102 ARTICLE IV. CONDITIONS .................................................................................................................. 103 SECTION 4.01 Closing Date ......................................................................................... 103 SECTION 4.02 Each Credit Event ................................................................................. 106 ARTICLE V. AFFIRMATIVE COVENANTS ........................................................................................ 107 SECTION 5.01 Financial Statements; Borrowing Base and Other Information ............ 107 SECTION 5.02 Notices of Material Events and Delivery of Other Reports .................. 109 SECTION 5.03 Preservation of Existence, Etc .............................................................. 112 SECTION 5.04 Payment of Liabilities, Including Taxes, Etc ........................................ 112 SECTION 5.05 Maintenance of Insurance ..................................................................... 112 SECTION 5.06 Maintenance of Properties .................................................................... 113 SECTION 5.07 Inspection Rights; Appraisals ............................................................... 113 SECTION 5.08 Keeping of Records and Books of Account .......................................... 114 SECTION 5.09 Compliance with Laws and Material Contractual Obligations ............. 114 SECTION 5.10 Use of Proceeds .................................................................................... 114 SECTION 5.11 Anti-Terrorism Laws; International Trade Law Compliance ............... 114 SECTION 5.12 Casualty ................................................................................................ 114 SECTION 5.13 [Reserved] ............................................................................................. 115 SECTION 5.14 Additional Collateral; Further Assurances............................................ 115 SECTION 5.15 Environmental Laws ............................................................................. 115 SECTION 5.16 Post-Closing Covenants ........................................................................ 116 ARTICLE VI. NEGATIVE COVENANTS ............................................................................................. 116 SECTION 6.01 Indebtedness ......................................................................................... 116 SECTION 6.02 Restricted Payments .............................................................................. 121 SECTION 6.03 Limitations on Restrictive Agreements ................................................ 125 SECTION 6.04 Sale of Equity Interests and Assets ....................................................... 127 SECTION 6.05 Affiliate Transactions ........................................................................... 130 SECTION 6.06 Amendments of Certain Documents; Line of Business ........................ 132 SECTION 6.07 Liens ..................................................................................................... 132 SECTION 6.08 Mergers, Amalgamations, Fundamental Changes, Etc ......................... 132 SECTION 6.09 Sanctions; Anti-Terrorism Laws ........................................................... 134 SECTION 6.10 [Reserved] ............................................................................................. 134 SECTION 6.11 [Reserved] ............................................................................................. 134 SECTION 6.12 Fixed Charge Coverage Ratio ............................................................... 134 ARTICLE VII. EVENTS OF DEFAULT ................................................................................................. 134 ARTICLE VIII. THE ADMINISTRATIVE AGENT .............................................................................. 137 SECTION 8.01 Appointment ......................................................................................... 137 SECTION 8.02 Rights as a Lender ................................................................................ 138 SECTION 8.03 Duties and Obligations.......................................................................... 138 

 

TABLE OF CONTENTS (continued)  iii SECTION 8.04 Reliance ................................................................................................ 139 SECTION 8.05 Actions through Sub-Agents ................................................................. 139 SECTION 8.06 Resignation ........................................................................................... 139 SECTION 8.07 Non-Reliance ........................................................................................ 140 SECTION 8.08 Other Agency Titles .............................................................................. 141 SECTION 8.09 Not Partners or Co-Venturers; Administrative Agent as  Representative of the Secured Parties ................................................... 141 SECTION 8.10 Flood Laws ........................................................................................... 141 SECTION 8.11 No Reliance on Administrative Agent’s Customer Identification  Program................................................................................................. 141 SECTION 8.12 Erroneous Payments ............................................................................. 142 ARTICLE IX. MISCELLANEOUS ......................................................................................................... 144 SECTION 9.01 Notices .................................................................................................. 144 SECTION 9.02 Waivers; Amendments .......................................................................... 146 SECTION 9.03 Expenses; Indemnity; Damage Waiver ................................................. 150 SECTION 9.04 Successors and Assigns ........................................................................ 152 SECTION 9.05 Survival ................................................................................................. 156 SECTION 9.06 Counterparts; Integration; Effectiveness; Electronic Execution ........... 157 SECTION 9.07 Severability ........................................................................................... 157 SECTION 9.08 Right of Setoff ...................................................................................... 157 SECTION 9.09 Governing Law; Jurisdiction; Consent to Service of Process ............... 158 SECTION 9.10 WAIVER OF JURY TRIAL................................................................. 158 SECTION 9.11 Headings ............................................................................................... 159 SECTION 9.12 Confidentiality ...................................................................................... 159 SECTION 9.13 Several Obligations; Nonreliance; Violation of Law ............................ 160 SECTION 9.14 USA PATRIOT Act .............................................................................. 160 SECTION 9.15 Reserved ............................................................................................... 160 SECTION 9.16 Disclosure ............................................................................................. 160 SECTION 9.17 Appointment for Perfection .................................................................. 160 SECTION 9.18 Interest Rate Limitation ........................................................................ 160 SECTION 9.19 No Advisory or Fiduciary Responsibility ............................................. 161 SECTION 9.20 Authorization to Distribute Certain Materials to Public-Siders ............ 161 SECTION 9.21 Obligations of Non-Loan Party Excluded Domestic Subsidiaries  and Foreign Subsidiaries ....................................................................... 161 SECTION 9.22 Judgment Currency ............................................................................... 162 SECTION 9.23 Waiver of Immunity ............................................................................. 162 SECTION 9.24 [Reserved] ............................................................................................. 162 SECTION 9.25 Termination and Release of Collateral ................................................. 162 SECTION 9.26 Publicity ................................................................................................ 163 SECTION 9.27 Acknowledgement and Consent to Bail-In of Affected Financial  Institutions ............................................................................................ 163 SECTION 9.28 Certain ERISA Matters ......................................................................... 163 SECTION 9.29 Acknowledgement Regarding Any Supported QFCs ........................... 164 ARTICLE X. LOAN GUARANTY ......................................................................................................... 165 SECTION 10.01 Guaranty ............................................................................................... 165 SECTION 10.02 Guaranty of Payment ............................................................................ 166 SECTION 10.03 No Discharge or Diminishment of Loan Guaranty ............................... 166 SECTION 10.04 Defenses Waived .................................................................................. 166 SECTION 10.05 Rights of Subrogation ........................................................................... 167 SECTION 10.06 Reinstatement; Stay of Acceleration ..................................................... 167 

 

TABLE OF CONTENTS (continued)  iv SECTION 10.07 Information ........................................................................................... 167 SECTION 10.08 [Reserved.] ............................................................................................ 167 SECTION 10.09 [Reserved.] ............................................................................................ 167 SECTION 10.10 Maximum Liability ............................................................................... 167 SECTION 10.11 Contribution .......................................................................................... 168 SECTION 10.12 Liability Cumulative ............................................................................. 168 SECTION 10.13 Keepwell ............................................................................................... 168 SECTION 10.14 Common Enterprise .............................................................................. 168 ARTICLE XI. [Reserved] ......................................................................................................................... 169 ARTICLE XII. THE BORROWER REPRESENTATIVE ...................................................................... 169 SECTION 12.01 Appointment; Nature of Relationship ................................................... 169 SECTION 12.02 Powers................................................................................................... 169 SECTION 12.03 Employment of Agents ......................................................................... 169 SECTION 12.04 Notices .................................................................................................. 169 SECTION 12.05 Successor Borrower Representative ..................................................... 169 SECTION 12.06 Execution of Loan Documents; Borrowing Base Certificate ............... 170 SECTION 12.07 Reporting .............................................................................................. 170 

 

TABLE OF CONTENTS (continued)  v SCHEDULES: Schedule 1.01(a) – Commitment Schedule  Schedule 1.01(b) – Existing Letters of Credit Schedule 1.01(c) – Immaterial Subsidiaries  Schedule 3.02 – Capitalization; Subsidiaries; Joint Ventures Schedule 3.10(a) – Real Property  Schedule 3.10(b)  – Intellectual Property Schedule 3.11 – Insurance  Schedule 3.19 – Credit Card Arrangements  Schedule 5.16 – Post-Closing Covenants  Schedule 6.01 – Existing Indebtedness  Schedule 6.02 – Existing Investments  Schedule 6.03 – Existing Contractual Encumbrances and Restrictions  Schedule 6.05 – Existing Affiliate Transactions Schedule 6.07 – Existing Liens  EXHIBITS: Exhibit A – Form of Assignment and Assumption  Exhibit B – Form of Borrowing Base Certificate  Exhibit C – Form of Borrowing Request  Exhibit D – Form of Compliance Certificate  Exhibit E – Form of Interest Election Request  Exhibit F – Form of Joinder Agreement  Exhibit G-1 – Form of U.S. Tax Certificate (For Foreign Lenders that are not Partnerships for  U.S. Federal Income Tax Purposes)  Exhibit G-2 – Form of U.S. Tax Certificate (For Foreign Participants that are not Partnerships for  U.S. Federal Income Tax Purposes)  Exhibit G-3 – Form of U.S. Tax Certificate (For Foreign Participants that are Partnerships for  U.S. Federal Income Tax Purposes)  Exhibit G-4 – Form of U.S. Tax Certificate (For Foreign Lenders that are Partnerships for U.S.  Federal Income Tax Purposes) 

 

CREDIT AGREEMENT dated as of September 21, 2022, among BIG LOTS, INC., an Ohio  corporation (the “Company”), each of the Subsidiary Borrowers from time to time party hereto, the other  Loan Parties from time to time party hereto, the Lenders from time to time party hereto, and PNC BANK,  NATIONAL ASSOCIATION, as Administrative Agent. WITNESSETH: The Company has requested that the Lenders provide an asset-based revolving credit facility in an  initial aggregate maximum principal amount not to exceed $900,000,000, and the Lenders have indicated  their willingness to lend, and the Issuing Banks hereunder have indicated their willingness to issue Letters  of Credit, in each case on the terms and conditions set forth herein.  In consideration of the mutual covenants and agreements herein contained, the parties hereto  covenant and agree as follows: ARTICLE I. DEFINITIONS SECTION 1.01 Defined Terms.  As used in this Agreement, the following terms have the meanings  specified below: “ABL Intercreditor Agreement” means an Intercreditor Agreement, in form and substance  reasonably satisfactory to the Company and satisfactory to the Administrative Agent in its Permitted  Discretion, entered into after the date hereof among the Administrative Agent and an Other Secured Debt Agent, and acknowledged by the Loan Parties, as the same may be amended, restated, supplemented or  otherwise modified from time to time.  “ABL Priority Collateral” has the meaning specified in any ABL Intercreditor Agreement;  provided, that, if, as of any date, no ABL Intercreditor Agreement exists, “ABL Priority Collateral” shall  mean “Collateral” as defined herein. “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. “Account” means an “Account” as defined in Article 9 of the UCC. “Account Debtor” means any Person that is or may become obligated to any Loan Party under,  with respect to or on account of an Account or Credit Card Account.  “Acquired Indebtedness” means, with respect to any specified Person: (1) Indebtedness of any  other Person existing at the time such other Person is merged, consolidated or amalgamated with or into or  became a Restricted Subsidiary of such specified Person, and (2) Indebtedness secured by a Lien  encumbering any asset acquired by such specified Person.  Acquired Indebtedness will be deemed to have  been Incurred, with respect to clause (1) of the preceding sentence, on the date such Person becomes a  Restricted Subsidiary and, with respect to clause (2) of the preceding sentence, on the date of consummation  of such acquisition of such assets. “Acquisition” means any transaction, or any series of related transactions, consummated on or after  the date hereof, by which any Loan Party or Restricted Subsidiary (a) acquires any business or division of  

 

2 a business or all or substantially all of the assets of any Person, whether through the purchase of assets,  merger or otherwise or (b) directly or indirectly acquires (in one transaction or as the most recent transaction  in a series of transactions) at least a majority (in number of votes) of the Equity Interests of a Person which  has ordinary voting power for the election of directors or other similar management personnel of a Person  (other than Equity Interests having such power only by reason of the happening of a contingency) or a  majority of the outstanding Equity Interests of a Person.  “Additional Refinancing Amount” means, in connection with the Incurrence of any Refinancing  Indebtedness, the aggregate principal amount of additional Indebtedness, Disqualified Stock or Preferred  Stock Incurred to pay accrued and unpaid interest, premiums (including tender premiums), expenses,  defeasance costs and fees in respect thereof. “Administrative Agent” means PNC Bank, National Association, in its capacity as administrative  agent hereunder and under the other Loan Documents, and including any of its Affiliates performing any  of the functions of the Administrative Agent at any time, and their successors in such capacity as provided  in Article VIII. “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the  Administrative Agent. “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial  Institution.  “Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly  through one or more intermediaries, Controls or is Controlled by or is under common Control with the  specified Person. “Affiliate Transaction” has the meaning specified in Section 6.05.  “Agreement” means this Credit Agreement, as amended, restated, supplemented or otherwise  modified from time to time. “Aggregate Commitments” means, at any time, the aggregate Commitments of all Lenders. “Aggregate Credit Exposure” means, at any time, the aggregate Revolving Exposure of all the  Lenders at such time. “Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime  Rate in effect on such day, (b) the Overnight Bank Funding Rate in effect on such day plus 1⁄2 of 1% and  (c) Daily Simple SOFR plus 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate,  the Overnight Bank Funding Rate or Daily Simple SOFR shall be effective from and including the effective  date of such change in the Prime Rate, the Overnight Bank Funding Rate or Daily Simple SOFR, respectively. Any change in the Alternate Base Rate (or any component thereof) shall take effect at the opening of business on the day such change occurs. Notwithstanding anything to the contrary contained  herein, in the case of any event specified in Section 2.14, to the extent any such determination affects the  calculation of Alternate Base Rate, the definition hereof shall be calculated without reference to clause (c)  until the circumstances giving rise to such event no longer exist.  If the Alternate Base Rate determined as  above would be less than 0.00%, then such rate shall be deemed to be 0.00%. 

 

3 “Alternative Currency” means Canadian Dollars, Euro and any other currency approved by the  Administrative Agent and all of the Lenders, in each case, as long as there is a published RFR, Eurocurrency  Rate, or a Benchmark Replacement effected pursuant to Section 2.14 with respect thereto.   “Alternative Currency Borrowing” means a Borrowing comprising of Alternative Currency Loans. “Alternative Currency Equivalent” means, at any time, with respect to any amount denominated in  U.S. Dollars, the equivalent amount thereof in the applicable Alternative Currency as determined by the  Administrative Agent or the Issuing Bank, as the case may be, by reference to the applicable Bloomberg  page (or such other publicly available service for displaying exchange rates as determined by the  Administrative Agent from time to time), to be the exchange rate for the purchase of such Alternative  Currency with U.S. Dollars on the date that is (i) with respect to RFR Loans, the applicable Daily Simple  RFR Lookback Day, (ii) with respect to any Alternative Currency Loans denominated in Canadian Dollars,  the Eurocurrency Rate Lookback Period and (iii) otherwise, on the date which is two (2) Business Days  immediately preceding the date of determination, or otherwise with respect to Loans to which any other  Interest Period option applies, the lookback date applicable thereto, in each case, prior to the date as of  which the foreign exchange computation is made; provided, however, that if no such rate is available, the  “Alternative Currency Equivalent” shall be determined by the Administrative Agent or the Issuing Bank, as the case may be, using any reasonable method of determination it deems appropriate in its sole discretion  (and such determination shall be conclusive absent manifest error). “Alternative Currency Loan” means any Loans denominated in an Alternative Currency. “Anti-Money Laundering Laws” means applicable laws or regulations in any jurisdiction in which  any Loan Party or any of its Subsidiaries or its Controlled Affiliates is located or is doing material business  that relates to money laundering, any predicate crime to money laundering, or any financial record keeping  and reporting requirements related thereto.   “Anti-Terrorism Laws” means any laws relating to terrorism, trade sanctions programs and  embargoes, import/export licensing, money laundering or bribery, and any regulation, order, or directive  promulgated, issued or enforced pursuant to such laws, all as amended, supplemented or replaced from time  to time (including, without limitation, any Anti-Money Laundering Laws), in each case in any jurisdiction  in which any Loan Party or any of its Subsidiaries is located or is doing material business.  “Applicable Percentage” means, with respect to any Lender, a percentage equal to a fraction the  numerator of which is such Lender’s Commitment and the denominator of which is the Aggregate  Commitments; provided that, if the Commitments have terminated or expired, the Applicable Percentages  shall be determined based upon such Lender’s share of the Aggregate Credit Exposure at that time; provided  further that, in accordance with Section 2.20, so long as any Lender shall be a Defaulting Lender, such  Defaulting Lender’s Commitment shall be disregarded in the calculations in this definition.  “Applicable Rate” means, for any day, with respect to any Loan, the applicable rate per annum set  forth below, as the case may be, based upon the daily average Availability (the “Average Availability”) for  the fiscal quarter of the Company ending on the most recent Determination Date (as defined below),  provided that for the period from the Closing Date through and including January 28, 2023, the “Applicable  Rate” shall be the applicable rate per annum set forth below in Level II: 

 

4 Level Average Availability Term SOFR Rate Loans, Daily Simple  SOFR Loans and  Alternative  Currency Loans ABR Loans  I % of the Aggregate Commitments 1.250% 0.250%  II < 66% of the Aggregate Commitments the Aggregate Commitments 1.375% 0.375%  III < 33% of the Aggregate Commitments 1.500% 0.500%  For purposes of the foregoing, (a) the Applicable Rate shall be determined as of the end of each  fiscal quarter of the Company (each a “Determination Date”) based upon the Borrowing Base Certificate(s)  delivered with respect to such Determination Date and (b) each change in the Applicable Rate resulting  from a change in the Average Availability shall be effective during the period commencing on and including the due date of the consolidated financial statements for the most recent Determination Date and ending on  the date immediately preceding the effective date of the next such change; provided that if the Borrowers  shall fail to deliver any Borrowing Base Certificate with respect to any Determination Date as and when  due, at the option of the Administrative Agent or at the request of the Required Lenders, Average  Availability shall be deemed to be in Level III during the period from the expiration of the time for delivery  thereof until the date five (5) days after such Borrowing Base Certificate is delivered. If any Borrowing Base Certificate shall prove to have been inaccurate (regardless of whether any  Revolving Commitments are in effect or any amounts are outstanding hereunder when such inaccuracy is  discovered), and such inaccuracy shall have resulted in the payment or accrual of any interest at rates lower  than those that would have been paid or accrued for any period, then the applicable Borrowers shall pay to  the Administrative Agent, for distribution to the Lenders or Issuing Banks (or former Lenders or Issuing  Banks) as their interests may appear, the interest that would have accrued and would have been required to  be paid but were not accrued or paid as a result of such inaccuracy. “Approved Fund” has the meaning assigned to such term in Section 9.04.  “Assignment and Assumption” means an assignment and assumption entered into by a Lender and  an assignee (other than an Ineligible Institution) (with the consent of any party whose consent is required  by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form  approved by the Administrative Agent.  “Availability” means, at any time, an amount equal to the lesser of (a) the Aggregate Commitments  minus the Aggregate Credit Exposure, and (b) the Borrowing Base minus the Aggregate Credit Exposure. 

 

5 “Availability Period” means the period from and including the Closing Date through but excluding  the earlier of the Maturity Date and the date of termination of the Commitments.  “Available Commitment” means, at any time, the Aggregate Commitments minus the Aggregate  Credit Exposure (calculated, with respect to any Defaulting Lender, as if such Defaulting Lender had funded  its Applicable Percentage of all outstanding Borrowings). “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable  Resolution Authority in respect of any liability of an Affected Financial Institution. “Bail-In Legislation” means (a) with respect to any EEA Member Country implementing Article 55  of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the  implementing law, regulation or requirement for such EEA Member Country from time to time which is  described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the  United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule  applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms  or other financial institutions or their affiliates (other than through liquidation, administration or other  insolvency proceedings).  “Banking Services” means all cash management and bank services provided to any Loan Party or  its Restricted Subsidiaries by any Lender or any of its Affiliates, including, without limitation, the  following: (i) credit cards for commercial customers (including, without limitation, “commercial credit  cards” and purchasing cards), (ii) stored value cards, (iii) merchant processing services, (iv) treasury  management services (including, without limitation, controlled disbursement, automated clearinghouse  transactions, return items, overdrafts and interstate depository network services), and (v) foreign exchange  and currency management services.   “Banking Services Obligations” means any and all obligations of the Loan Parties and their  Restricted Subsidiaries, whether absolute or contingent and howsoever and whensoever created, arising,  evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions  therefor) in connection with Banking Services.  “Banking Services/Swap Reserves” means, in respect of a specified Banking Services Obligation  or Swap Agreement Obligation, all reserves, if any, that the Borrower Representative and the applicable  provider of such Banking Services Obligation or Swap Agreement Obligation agree shall be established  with respect thereto, to the extent the Administrative Agent receives a written notice of such Banking  Services Obligations or Swap Agreement Obligations in accordance with Section 2.22 specifying the amount of such agreed reserves. “Bankruptcy Code” means title 11 of the United States Code, as amended. “Bankruptcy Event” means, with respect to any Person, when such Person becomes the subject of  a bankruptcy or insolvency proceeding, or has had a receiver, interim receiver, monitor, conservator,  trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged with the  reorganization or liquidation of its business, appointed for it, or, in the good faith determination of the  Administrative Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or  acquiescence in, any such proceeding or appointment, provided that a Bankruptcy Event shall not result  solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such Person by a  Governmental Authority or instrumentality thereof, unless such ownership interest results in or provides  such Person with immunity from the jurisdiction of courts within the United States or from the enforcement  of judgments or writs of attachment on its assets or permits such Person (or such Governmental Authority  

 

6 or instrumentality), to reject, repudiate, disavow or disaffirm any contracts or agreements made by such  Person. “Beneficial Owner” means, with respect to any U.S. Federal withholding Tax, the beneficial owner,  for U.S. Federal income tax purposes, to whom such Tax relates.  “Beneficial Ownership Certification” means a certification regarding beneficial ownership as  required by the Beneficial Ownership Regulation.  “Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.    “BHC Act Affiliate” has the meaning set forth in Section 9.29.  “Billing Statement” has the meaning assigned to such term in Section 2.18(g).    “Bloomberg” means Bloomberg Index Services Limited (or a successor administrator).  “Board” means the Board of Governors of the Federal Reserve System of the U.S. “Borrower” or “Borrowers” means, individually and collectively as the context may require, the  Company and each Subsidiary Borrower.  “Borrower Representative” has the meaning assigned to such term in Section 12.01.    “Borrowing” means (a) Revolving Loans of the same Type or Currency, made, converted or  continued on the same date and, in the case of in the case of Term SOFR Rate Loans or Alternative Currency  Loans (other than an RFR Loan), as to which a single Interest Period is in effect, (b) a Swingline Loan,  (c) a Protective Advance and (d) an Overadvance. “Borrowing Base” means:  (a) the product of (i) 90% multiplied by (ii) the Eligible Credit Card Accounts of the Loan  Parties at such time, plus  (b) the product of (i) the Inventory Advance Rate multiplied by (ii) the Net Orderly  Liquidation Value percentage identified in the most recent inventory appraisal ordered and received by the  Administrative Agent multiplied by (iii) the Loan Parties’ Eligible Inventory (other than Eligible In-Transit  Inventory) at such time, valued at the lower of average cost or market, determined utilizing the retail  method, as appropriate, or such other method approved in writing by the Administrative Agent at the request  of the Borrower Representative (the amount resulting from the foregoing calculation, the “Inventory  Availability”), plus (c) the lesser of (i) 15% of the Inventory Availability or (ii) the product of (x) the Inventory  Advance Rate multiplied by (y) the Net Orderly Liquidation Value percentage identified in the most recent  inventory appraisal ordered and received by the Administrative Agent multiplied by (z) the Loan Parties’  Eligible In-Transit Inventory at such time, valued at the lower of average cost or market, determined  utilizing the retail method, as appropriate, or such other method approved in writing by the Administrative  Agent at the request of the Borrower Representative, minus  (d) applicable Reserves.  

 

7 Subject to the provisions hereof expressly permitting the Administrative Agent to adjust Reserves, the  Borrowing Base at any time shall be determined by reference to the most recent Borrowing Base Certificate  delivered to the Administrative Agent pursuant to Section 5.01(e) (or, prior to the first such delivery,  delivered to the Administrative Agent pursuant to Section 4.01(r)). “Borrowing Base Certificate” means a certificate, signed and certified as accurate and complete by  a Financial Officer of the Borrower Representative, in substantially the form of Exhibit B (with such  changes thereto as may be required by the Administrative Agent in its Permitted Discretion from time to  time to reflect the components of and reserves against the Borrowing Base as provided for hereunder) or  another form that is acceptable to the Administrative Agent in its Permitted Discretion. “Borrowing Base Reporting Date” means twenty-five (25) days after the end of each fiscal quarter  of the Company (or, if such day is not a Business Day, on the next succeeding Business Day); provided,  however, during any Monthly BBC Reporting Period, the Borrowing Base Reporting Date shall mean  twenty-five (25) days after the end of each fiscal month of the Company (or, if such day is not a Business  Day, on the next succeeding Business Day; provided, further, during any Weekly BBC Reporting Period,  the Borrowing Base Reporting Date shall mean Wednesday of each week (or, if such day is not a Business  Day, on the next succeeding Business Day).  “Borrowing Request” means a request by the Borrower Representative for a Borrowing in  accordance with Section 2.03, which shall be, in the case of any such written request, in the form of Exhibit  C or any other form approved by the Administrative Agent.  “Business Day” means any day other than Saturday or Sunday or a legal holiday on which  commercial banks are authorized or required by Law to be closed for business in Pittsburgh, Pennsylvania  provided that for purposes of any direct or indirect calculation or determination of, or when used in  connection with any interest rate settings, fundings, disbursements, settlements, payments, or other dealings  with respect to any (i) Term SOFR Rate Loan or Daily Simple SOFR Loan, the term “Business Day” means  any such day that is also a U.S. Government Securities Business Day; (ii) Eurocurrency Rate Loan, the term  “Business Day” means any such date that is also a Eurocurrency Banking Day, and (iii) RFR Loan, the  term “Business Day” means any such day that is also an RFR Business Day. “Canadian Dollar” means the single currency of Canada. “Capital Expenditures” means expenditures made or liabilities incurred for the acquisition of any  fixed assets or improvements (or of any replacements or substitutions thereof or additions thereto) which  have a useful life of more than one year and which, in accordance with GAAP, would be classified as capital  expenditures.  “Cash Collateralize” has the meaning assigned to such term in Section 2.06(j).  Derivatives of such  term have corresponding meanings.   “Cash Equivalents” means: (a) direct obligations of the United States of America or any agency or  instrumentality thereof or obligations backed by the full faith and credit of the United States of America  maturing in twelve (12) months or less from the date of acquisition; (b) commercial paper maturing in one  (1) year or less rated not lower than A-1, by S&P or P-1 by Moody’s on the date of acquisition; (c) demand  deposits, time deposits or certificates of deposit maturing within one year in commercial banks whose  obligations are rated A-1, A or the equivalent or better by S&P on the date of acquisition; (d) money market  or mutual funds whose investments are limited to those types of investments described in clauses (a)-(c)  above; and (e) fully collateralized repurchase agreements with a term of not more than one hundred eighty  

 

8 (180) days for securities described in clause (a) above and entered into with commercial banks whose  obligations are rated A-1, A or the equivalent or better by S&P on the date of acquisition.  “Casualty” has the meaning assigned to such term in Section 5.12.  “CFC” means each Person that is a “controlled foreign corporation” within the meaning of Section  957(a) of the Code.  “CFC Holdco” means a Domestic Subsidiary owning, directly or indirectly, no material assets other  than equity interests of one or more CFCs.  “Change in Control” means (i) any “person” or “group” (as such terms are used in Sections 13(d)  and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) shall have acquired  beneficial ownership of (within the meaning of Rule 13d-3 promulgated by the SEC under the Exchange  Act), directly or indirectly, of more than thirty-three percent (33%) of the voting Equity Interests of the  Company, (ii) the Company ceases to own, directly or indirectly, one hundred percent (100%) of the fully  diluted Equity Interests of any other Loan Party except with respect to this clause (ii), in any transaction  permitted hereunder, or (iii) a “Change in Control” (or words of similar import) shall have occurred under  an Other Secured Debt Loan Agreement (if any).  “Change in Law” means the occurrence, after the date of this Agreement, of any of the following:  (i) the adoption or taking effect of any law, rule, regulation or treaty, (ii) any change in any law, rule,  regulation or treaty or in the administration, interpretation, implementation or application thereof by any  Governmental Authority or (iii) the making or issuance of any request, rule, guideline or directive (whether  or not having the force of law) by any Governmental Authority; provided that notwithstanding anything  herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all  requests, rules, regulations, guidelines, interpretations or directives thereunder or issued in connection  therewith (whether or not having the force of law) and (y) all requests, rules, regulations, guidelines,  interpretations or directives promulgated by the Bank for International Settlements, the Basel Committee  on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory  authorities (whether or not having the force of law), in each case pursuant to Basel III, shall in each case be  deemed to be a Change in Law regardless of the date enacted, adopted, issued, promulgated or implemented. “Charges” has the meaning assigned to such term in Section 9.18.  “CIP Regulations” shall have the meaning set forth in Section 8.11 hereof. “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, as amended from time to time.   “Collateral” means any and all property owned, leased or operated by a Person covered by the  Collateral Documents and any and all other property of any Loan Party, now existing or hereafter acquired,  that may at any time be, become or be intended to be, subject to a security interest or Lien in favor of the  Administrative Agent, on behalf of itself and the Lenders and other Secured Parties, to secure the Secured  Obligations.  “Collateral Access Agreement” means any landlord waiver or other agreement, in form and  substance satisfactory to the Administrative Agent in its Permitted Discretion, between the Administrative  Agent and any third party (including any bailee, consignee, customs broker, or other similar Person) in  

 

9 possession of any Collateral or any landlord of any real property where any Collateral is or may be located,  as such landlord waiver or other agreement may be amended, restated, supplemented or otherwise modified  from time to time. “Collateral and Guaranty Requirement” means, at any time, the requirement that: (a) the Administrative Agent shall have received from the Company and each other Loan Party  either (i) (A) a counterpart of this Agreement and the Security Agreement, duly executed and delivered on  behalf of such Person, or (ii) in the case of any Person that becomes a Subsidiary (other than Excluded  Subsidiary) after the date hereof, (A) a Joinder Agreement, duly executed and delivered on behalf of such  Person, and (B) instruments in the form or forms specified in the Security Agreement, duly executed and  delivered on behalf of such Person, together with such certificates, documents and opinions with respect to  such Subsidiary as may reasonably be requested by the Administrative Agent; (b) The Administrative Agent shall have received all deposit account control agreements,  securities account control agreements and other Collateral Documents required to be provided to it  hereunder or under the Security Agreement;  (c) all documents and instruments, including UCC financing statements required by the  Collateral Documents or this Agreement with the priority required by the Collateral Documents shall have  been filed, registered or recorded or delivered to the Administrative Agent for filing, registration or  recording; and  (d) each Loan Party shall have obtained all material consents and approvals required in  connection with the execution and delivery of all Collateral Documents to which it is a party and the  performance of its obligations thereunder.  Notwithstanding the foregoing, any Subsidiary formed or acquired after the date hereof and  required to become a Loan Party shall not be required to comply with the foregoing requirements prior to  the time specified in Section 5.14. The foregoing definition shall not require the creation or perfection of  pledges of or security interests in, or legal opinions or other deliverables with respect to, particular assets  of the Loan Parties, or the provision of Guarantees by any Subsidiary, if and for so long as the  Administrative Agent, in consultation with the Company, determines that the cost of creating or perfecting  such pledges or security interests in such assets, or obtaining legal opinions or other deliverables in respect  of such assets, or providing such Guarantees, shall be excessive in view of the benefits to be obtained by  the Lenders therefrom. The Administrative Agent may in its Permitted Discretion grant extensions of time  for the creation and perfection of security interests in, or the delivery of legal opinions or other deliverables  with respect to, particular assets or the provision of any Guarantee by any Subsidiary (including extensions  beyond the Closing Date or in connection with assets acquired, or Subsidiaries formed or acquired, after  the date hereof) where it determines that such action cannot be accomplished without unreasonable effort  or expense by the time or times at which it would otherwise be required to be accomplished by this  Agreement or the Collateral Documents. Notwithstanding the foregoing, no action required to be taken by  any Person to effect compliance by the Administrative Agent and the Lenders with any applicable  Requirement of Law shall be deemed to cause unreasonable effort or expense hereunder. “Collateral Documents” means, collectively, the Security Agreement, any ABL Intercreditor  Agreement (if any), any deposit account control agreement, any securities account control agreement, and  any other agreements, instruments and documents executed in connection with this Agreement that are  intended to create, perfect or evidence Liens to secure the Obligations, including, without limitation, all  other security agreements, pledge agreements, mortgages, deeds of trust, the Loan Guaranty or any joinder  or supplement hereto or any other Guarantee of all or any portion of the Obligations, subordination  

 

10 agreements, pledges, and collateral assignments, whether theretofore, now or hereafter executed by any  Borrower or any other Loan Party and delivered to the Administrative Agent.  “Commercial LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of  all outstanding commercial Letters of Credit plus (b) the aggregate amount of all LC Disbursements relating  to commercial Letters of Credit that have not yet been reimbursed by or on behalf of the Borrowers.  The  Commercial LC Exposure of an Issuing Bank (in its capacity as such) shall be the Commercial LC Exposure  in respect of commercial Letters of Credit issued by such Issuing Bank.  The Commercial LC Exposure of  any Lender at any time shall be its Applicable Percentage of the aggregate Commercial LC Exposure at  such time. “Commitment” means, with respect to each Lender, the commitment, if any, of such Lender to  make Revolving Loans and to acquire participations in Letters of Credit, Overadvances, Protective  Advances and Swingline Loans hereunder, expressed as an amount representing the maximum aggregate permitted amount of such Lender’s Revolving Exposure hereunder, as such commitment may be reduced  or increased from time to time pursuant to (a) Section 2.09 and (b) assignments by or to such Lender  pursuant to Section 9.04. The initial amount of each Lender’s Commitment is set forth on the Commitment  Schedule, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its  Commitment, as applicable. The initial aggregate amount of all of the Lenders’ Commitments is  $900,000,000.  “Commitment Fee” has the meaning assigned to such term in Section 2.12(a). “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.), as  amended from time to time, and any successor statute. “Communications” has the meaning assigned to such term in Section 9.01(d).   “Company” has the meaning assigned to such term in the introductory paragraph hereof.  “Company on a Consolidated Basis” means the consolidation of the Company and its Restricted  Subsidiaries in accordance with GAAP. “Competitor” means any Person that is an operating company and is engaged primarily in the same  or similar business as the Company. “Compliance Certificate” means a certificate executed by a Financial Officer of the Borrower  Representative in substantially the form of Exhibit D.  “Concentration Account” has the meaning given to such term in the Security Agreement. “Conforming Changes” means, with respect to the Term SOFR Rate or Daily Simple SOFR, Daily  Simple RFR or Term RFR, Eurocurrency Rate, or any Benchmark Replacement in relation thereto, any  technical, administrative or operational changes (including changes to the definition of “Alternate Base  Rate,” the definition of “Business Day,” the definition of “Interest Period,” the definition of “U.S.  Government Securities Business Day,” timing and frequency of determining rates and making payments of  interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability  and length of lookback periods, the applicability of breakage provisions, and other technical, administrative  or operational matters) that the Administrative Agent reasonably decides may be appropriate to reflect the  

 

11 adoption and implementation of the Term SOFR Rate or Daily Simple SOFR, Daily Simple RFR, Term  RFR, Eurocurrency Rate or such Benchmark Replacement and to permit the administration thereof by the  Administrative Agent in  a manner substantially consistent with market practice (or, if the Administrative  Agent decides that adoption of any portion of such market practice is not administratively feasible or if the  Administrative Agent determines that no market practice for the administration of the Term SOFR Rate or  Daily Simple SOFR, Daily Simple RFR, Term RFR, Eurocurrency Rate or the Benchmark Replacement  exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary  in connection with the administration of this Agreement and the other Loan Documents). “Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by  net income or capital (however denominated) or that are franchise Taxes or branch profits Taxes. “Consideration” means with respect to any Permitted Acquisition, the aggregate of (without  duplication) (i) the cash paid by any of the Loan Parties, directly or indirectly, to the seller in connection  therewith, (ii) the Indebtedness incurred or assumed by any of the Loan Parties, whether in favor of the  seller or otherwise and whether fixed or contingent, in connection therewith, (iii) any Guarantee given or  incurred by any Loan Party in connection therewith, and (iv) any other cash or equity consideration given  or obligation incurred by any of the Loan Parties in connection therewith, as each of the foregoing is  recorded by the Loan Parties in accordance with GAAP. “Consolidated EBITDA” means, for any period of determination, without duplication, consolidated  net income of the Company on a Consolidated Basis, plus (i) the following (to the extent deducted from  such calculation of consolidated net income): (a) depreciation, (b) amortization, (c) non-cash expenses  related to stock based compensation, (d) other non-cash charges, non-cash expenses, or non-cash losses to  net income (provided, however that cash payments made in such period or in any future period in respect  of such non-cash charges, expenses or losses shall be subtracted from consolidated net income in calculating  Consolidated EBITDA), (e) interest expense, (f) income tax expense, and (g) restructuring charges or  expenses (including integration costs, restructuring costs and severance costs related to acquisitions and to  closure or consolidation of plants, facilities or locations and any expense related to any reconstruction,  recommissioning or reconfiguration of fixed assets for alternate use) incurred prior to the date hereof not  to exceed $50,000,000.00 in the aggregate, minus (ii) non-cash credits or non-cash gains (to the extent  included in such calculation of consolidated net income), in each case determined and consolidated for the  Company and its Restricted Subsidiaries in accordance with GAAP; provided that the foregoing shall  exclude the income (or deficit) of any Person (other than a Restricted Subsidiary) in which the Company  or any of its Restricted Subsidiaries has an ownership interest, except to the extent that any such income is  actually received by the Company or such Restricted Subsidiary in the form of dividends or similar  distributions.  “Contingent Obligations” means, with respect to any Person, any obligation of such Person  guaranteeing any leases, dividends or other obligations that do not constitute Indebtedness (“primary  obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly,  including, without limitation, any obligation of such Person, whether or not contingent:  (1) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (2) to advance or supply funds:  (a) for the purchase or payment of any such primary obligation; or  

 

12 (b) to maintain working capital or equity capital of the primary obligor or  otherwise to maintain the net worth or solvency of the primary obligor; or  (3) to purchase property, securities or services primarily for the purpose of assuring  the owner of any such primary obligation of the ability of the primary obligor to make payment of  such primary obligation against loss in respect thereof. “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. “Covenant Compliance Event” means either (a) that a Specified Event of Default has occurred and  is continuing, or (b) Availability at any time is less than the greater of (i) 10% of the Maximum Credit  Amount or (ii) $67,500,000; provided, however, that once a Covenant Compliance Event has commenced,  it shall only be discontinued on the first date thereafter that (i) no Specified Event of Default exists, and (ii)  Availability has been greater than the greater of (1) 10% of the Maximum Credit Amount or (2) $67,500,000  for thirty (30) consecutive days.  For the avoidance of doubt, if a Covenant Compliance Event is  discontinued at any time during a fiscal quarter, then the Loan Parties shall not be required to maintain the  Fixed Charge Coverage Ratio as of the last day of such fiscal quarter. “Covered Entity” has the meaning set forth in Section 9.29.  “Covered Party” has the meaning set forth in Section 9.29. “Credit Card Accounts” means any “payment intangibles,” as defined in the UCC, receivables or  other rights to payment of a monetary obligation due to any Loan Party in connection with purchases of  Inventory of such Loan Party in the ordinary course of business from (1) a credit card issuer or a credit card  processor with respect to (a) credit cards issued by Visa, MasterCard, American Express, Discover, each of  their respective Affiliates, and any other credit card issuers that are reasonably acceptable to the  Administrative Agent, (b) private label credit cards of any Loan Party issued under non-recourse  arrangements substantially similar to those in effect on the date hereof or (c) debit cards issued by issuers  or providers that are reasonably acceptable to the Administrative Agent, (2) PayPal, Inc., Stripe, Square,  Venmo, Apple Pay, AfterPay, Klarna or any other similar “Buy Now, Pay Later” product, or any other e- commerce service providers or electronic payment services providers that are reasonably acceptable to the  Administrative Agent, or (3) subject to the approval of the Administrative Agent in its Permitted Discretion, Progressive Leasing under the Progressive Leasing Documents, in each case, which have been earned by  performance by such Loan Party but not yet paid to such Loan Party by such credit card issuer, credit card  processor, or other service provider. “Credit Card Agreement” means any agreement between (i) on the one hand, a Loan Party, and (ii)  on the other hand (a) a credit card issuer or a credit card processor (including any credit card processor that  processes purchases of Inventory from a Loan Party through debit cards) or (b) PayPal, Inc., Stripe, Square,  Venmo, Apple Pay, AfterPay, Klarna or any other similar “Buy Now, Pay Later” product, or any other e- commerce service providers or electronic payment services providers reasonably acceptable to the  Administrative Agent or Progressive Leasing, in each case, relating to any Credit Card Account included  or intended to be included in the Borrowing Base.  “Credit Card Notifications” means each Credit Card Notification, in form and substance reasonably  satisfactory to the Administrative Agent, executed by one or more Loan Parties and delivered by such Loan  Parties to credit card issuers, credit card processors, or other applicable processors or providers that are  party to any Credit Card Agreement. 

 

13 “Credit Party” means the Administrative Agent, the Issuing Bank, the Swingline Lender or any  other Lender.  “Currency” means U.S. Dollars or any Alternative Currency and “Currencies” shall mean,  collectively, U.S. Dollars and each Alternative Currency. “Customs Broker/Carrier Agreement” has the definition set forth in the definition of “Eligible In- Transit Inventory”. “Daily Rate Loan” means a Loan that bears interest at a rate based on (i) the Alternate Base Rate,  (ii) Daily Simple RFR or (iii) Daily Simple SOFR. “Daily Rate Loan Option” means the option of the Borrower to have Loans bear interest at the rate  and under the terms specified in Section 2.08(b). “Daily Simple RFR” means, for any day (an “RFR Day”), a rate per annum determined by the  Administrative Agent, for any Obligations, interest, fees, commissions or other amounts denominated in,  or calculated with respect to any applicable Daily Simple RFR below by dividing (the resulting quotient   rounded upwards, at the Administrative Agent’s discretion, to the nearest 1/100 of 1%) (a) the applicable  Daily Simple RFR set forth below by (b) a number equal to 1.00 minus the RFR Reserve Percentage: Euro,  €STR for the day (such day, adjusted as applicable as set forth herein, the “€STR Lookback Day”) that is  two (2) Business Days prior to (A) if such RFR Day is a Business Day, such RFR Day or (B) if such RFR  Day is not a Business Day, the Business Day immediately preceding such RFR Day, in each case, as such  €STR is published by the €STR Administrator on the €STR Administrator’s Website; provided that if the  adjusted rate as determined above would be less than the Floor, such rate shall be deemed to be the Floor  for purposes of this Agreement. The adjusted Daily Simple RFR rate for each outstanding Daily Simple  RFR Loan shall be adjusted automatically as of the effective date of any change in the RFR Reserve  Percentage. The Administrative Agent shall give prompt notice to the Borrower of the adjusted Daily  Simple RFR Rate as determined or adjusted in accordance herewith, which determination shall be  conclusive absent manifest error.  If by 5:00 pm (local time for the applicable RFR) on the second (2nd) Business Day immediately following any Daily Simple RFR Lookback Day, the RFR in respect of such  Daily Simple RFR Lookback Day has not been published on the applicable RFR Administrator’s Website  and a Benchmark Replacement Date with respect to the applicable Daily Simple RFR has not occurred,  then the RFR for such Daily Simple RFR Lookback Day will be the RFR as published in respect of the first  preceding Business Day for which such RFR was published on the RFR Administrator’s Website; provided  that any RFR determined pursuant to this sentence shall be utilized for purposes of calculation of Daily  Simple RFR for no more than three (3) consecutive RFR Days. Any change in Daily Simple RFR due to a  change in the applicable RFR shall be effective from and including the effective date of such change in the  RFR without notice to the Borrowers.  “Daily Simple RFR Loan” means a Loan that bears interest at a rate based on Daily Simple RFR. “Daily Simple RFR Lookback Days” means the €STR Lookback Day.  “Daily Simple RFR Option” means the option of the Borrowers to have Loans bear interest at the  rate and under the terms specified in Section 2.08(b)(B).  “Daily Simple SOFR” means, for any day (a “SOFR Rate Day”), the interest rate per annum  determined by the Administrative Agent by dividing (the resulting quotient rounded upwards, at the  Administrative Agent’s discretion, to the nearest 1/100th of 1%) (A) SOFR for the day (the “SOFR  Determination Date”) that is 2 Business Days prior to (i) such SOFR Rate Day if such SOFR Rate Day is a  

 

14 Business Day or (ii) the Business Day immediately preceding such SOFR Rate Day if such SOFR Rate Day  is not a Business Day, by (B) a number equal to 1.00 minus the SOFR Reserve Percentage, in each case, as  such SOFR is published by the Federal Reserve Bank of New York (or a successor administrator of the  secured overnight financing rate) on the website of the Federal Reserve Bank of New York, currently at  http://www.newyorkfed.org, or any successor source identified by the Federal Reserve Bank of New York or its successor administrator for the secured overnight financing rate from time to time. If Daily Simple  SOFR as determined above would be less than the SOFR Floor, then Daily Simple SOFR shall be deemed  to be the SOFR Floor.  If SOFR for any SOFR Determination Date has not been published or replaced with  a Benchmark Replacement by 5:00 p.m. (Pittsburgh, Pennsylvania time) on the second Business Day  immediately following such SOFR Determination Date, then SOFR for such SOFR Determination Date  will be SOFR for the first Business Day preceding such SOFR Determination Date for which SOFR was  published in accordance with the definition of “SOFR”; provided that SOFR determined pursuant to this  sentence shall be used for purposes of calculating Daily Simple SOFR for no more than three (3)  consecutive SOFR Rate Days.  If and when Daily Simple SOFR as determined above changes, any  applicable rate of interest based on Daily Simple SOFR will change automatically without notice to the  Borrower, effective on the date of any such change.  “Daily Simple SOFR Loan” means a Loan that bears interest based on Daily Simple SOFR.  “Default” means any event or condition which constitutes an Event of Default or which upon notice,  lapse of time or both would, unless cured or waived, become an Event of Default.  “Default Right” has the meaning set forth in Section 9.29. “Defaulting Lender” means any Lender that (a) has failed, within two Business Days of the date  required to be funded or paid, to (i) fund any portion of its Loans, (ii) fund any portion of its participations  in Letters of Credit or Swingline Loans or (iii) pay over to any Credit Party any other amount required to  be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies the Administrative  Agent and the Borrower Representative in writing that such failure is the result of such Lender’s good faith  determination that a condition precedent to funding (specifically identified and including the particular  Default, if any) has not been satisfied; (b) has notified any Borrower or any Credit Party in writing, or has  made a public statement, to the effect that it does not intend or expect to comply with any of its funding  obligations under this Agreement (unless such writing or public statement indicates that such position is  based on such Lender’s good faith determination that a condition precedent (specifically identified and  including the particular Default, if any) to funding a Loan under this Agreement cannot be satisfied) or  generally under other agreements in which it commits to extend credit, (c) has failed, within three Business  Days after request by a Credit Party or any Borrower, in each case, acting in good faith, to provide a  certification in writing from an authorized officer of such Lender that it will comply with its obligations  (and is financially able to meet such obligations) to fund prospective Loans and participations in then  outstanding Letters of Credit and Swingline Loans under this Agreement, provided that such Lender shall  cease to be a Defaulting Lender pursuant to this clause (c) upon receipt by such Credit Party and such  Borrower of such certification in form and substance satisfactory to them and the Administrative Agent, or  (d) has become the subject of a Bankruptcy Event or a Bail-In Action.  “Designated Non-cash Consideration” means the Fair Market Value (as determined in good faith  by the Company) of non-cash consideration received by the Company or a Restricted Subsidiary in  connection with a Disposition that is so designated as Designated Non-cash Consideration pursuant to an  officer’s certificate signed by a Financial Officer of the Company, setting forth such valuation, less the  amount of Cash Equivalents received in connection with a subsequent sale of such Designated Non-cash  Consideration.  

 

15 “Disposition” means with respect to any property, any sale, lease, sublease (as lessor or sublessor)  license, sale and leaseback, assignment, conveyance, transfer, license or other disposition thereof (including  by means of a “plan of division” under the Delaware Limited Liability Company Act or any comparable transaction under any similar law).  The terms “Dispose” and “Disposed of” shall have correlative  meanings. “Disqualified Institution” means, on any date, (a) any Person designated by the Company as a  “Disqualified Institution” by written notice delivered to the Administrative Agent on or prior to the date  hereof and (b) any other Person that is a Competitor of the Company or any of its Subsidiaries, which  Person has been designated by the Company as a “Disqualified Institution” by written notice to the  Administrative Agent not less than five (5) Business Days prior to such date; provided that “Disqualified  Institutions” shall exclude any Person that the Company has designated as no longer being a “Disqualified  Institution” by written notice delivered to the Administrative Agent from time to time; provided further  that, for the avoidance of doubt, a Competitor shall not include any bona fide debt fund or investment  vehicle that is primarily engaged in making, purchasing, holding or otherwise investing in commercial loans  and similar extensions of credit in the ordinary course of business which is managed, sponsored or advised  by any person controlling, controlled by or under common control with such Competitor or affiliate thereof,  as applicable, and for which no personnel involved with the investment of such Competitor, as applicable,  (1) makes any investment decisions or (2) has access to any information (other than information publicly  available) relating to the Company or any entity that forms a part of the Company’s business (including  Subsidiaries of the Company).  “Disqualified Stock” means any Equity Interests 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, pursuant to a sinking fund obligation or otherwise (other than as a result of a change of control  or asset sale), or is redeemable at the option of the holder thereof, in whole or in part (other than as a result  of a change of control or asset sale), in each case at any time on or prior to the date that is 91 days after the  Maturity Date, or (b) is convertible into or exchangeable (unless at the sole option of the issuer thereof) for  (i) Indebtedness or (ii) any Equity Interests referred to in (a) above, in each case at any time prior to the  date that is 91 days after the Maturity Date; provided, however, that only the portion of such Equity Interests  which so matures or is mandatorily redeemable, is so redeemable at the option of the holder or is so  convertible or exchangeable thereof prior to such date shall be deemed to be Disqualified Stock; provided,  further, however, that if such Equity Interests are issued to any employee or to any plan for the benefit of  employees of the Company or their Subsidiaries or by any such plan to such employees, such Equity  Interests shall not constitute Disqualified Stock solely because it may be required to be repurchased by such  Person in order to satisfy applicable statutory or regulatory obligations or as a result of such employee’s  termination, death or disability; provided, further, that any class of Equity Interests of such Person that by  its terms authorizes such Person to satisfy its obligations thereunder by delivery of Equity Interests that are  not Disqualified Stock shall not be deemed to be Disqualified Stock.  “Dollar Amount” means (a) with regard to any calculation denominated in U.S. Dollars, the amount  thereof, (b) if such amount is expressed in an Alternative Currency, the equivalent of such amount in U.S.  Dollars determined by using the rate of exchange for the purchase of U.S. Dollars with the Alternative  Currency last provided (either by publication or otherwise provided to the Administrative Agent or the  Issuing Bank, as applicable) by the applicable Bloomberg source (or such other publicly available source  for displaying exchange rates as determined by the Administrative Agent or the Issuing Bank, as applicable, from time to time) on the date that is the Eurocurrency Lookback Date (for amounts relating to Eurocurency  Loans denominated in an Alternative Currency to which the Eurocurrency Rate would apply; the applicable  Daily Simple RFR Lookback Day (for amounts relating to RFR Loans and Letters of Credit denominated  in an Alternative Currency to which Daily Simple RFR would apply) immediately preceding the date of  

 

16 determination, or otherwise on the date which is two (2) Business Days immediately preceding the date of  determination or otherwise with respect to Loans to which any other Interest Rate Option applies, the  lookback date applicable thereto (or if such service ceases to be available or ceases to provide such rate of  exchange, the equivalent of such amount in U.S. Dollars as determined by the Administrative Agent or the  Issuing Bank, as applicable using any method of determination it deems appropriate in its sole discretion)  and (c) if such amount is denominated in any other currency, the equivalent of such amount in U.S. Dollars  as determined by the Administrative Agent or the Issuing Bank, as applicable, using any method of  determination it deems appropriate in its sole discretion. Any determination by the Administrative Agent  or the Issuing Bank pursuant to clauses (b) or (c) above shall be conclusive absent manifest error.  “Document” has the meaning assigned to such term in the Security Agreement. “Domestic Subsidiary” means a Subsidiary organized under the laws of a jurisdiction located in the  U.S. “Dominion Period” means (a) any period during which any Event of Default has occurred and is  continuing or (b) any period (i) commencing at any time when Availability shall be less than the greater of  (x) $90,000,000 and (y) 12.5% of the Maximum Credit Amount, in either case, for a period of five (5) consecutive Business Days and (ii) ending when Availability shall have been greater than or equal to the  greater of (x) $90,000,000 and (y) 12.5% of the Maximum Credit Amount, in either case, for a period of  thirty (30) consecutive Business Days. “DQ List” has the meaning specified in Section 9.04(e).  “ECP” means an “eligible contract participant” as defined in Section 1(a)(18) of the Commodity  Exchange Act or any regulations promulgated thereunder and the applicable rules issued by the Commodity  Futures Trading Commission and/or the SEC.  “EEA Financial Institution” means (a) any credit institution or investment firm established in any  EEA Member Country that is subject to the supervision of an EEA Resolution Authority, (b) any entity  established in an EEA Member Country that is a parent of an institution described in clause (a) of this  definition, or (c) any financial institution established in an EEA Member Country that 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.  “Electronic Signature” means an electronic sound, symbol, or process attached to, or associated  with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such  contract or record. “Electronic System” means any electronic system, including email, Syndtrak, e-fax, Intralinks®,  ClearPar® and any other Internet or extranet-based site, whether such electronic system is owned, operated  or hosted by the Administrative Agent and the Issuing Bank and any of its respective Related Parties or any  other Person, providing for access to data protected by passcodes or other security system.  

 

17 “Eligible Credit Card Accounts” means at the time of any determination thereof, each Credit Card  Account of a Loan Party that at the time of creation and continuing to the time of such determination is not  ineligible for inclusion in the calculation of the Borrowing Base pursuant to any of clauses (a) through (o) below. Without limiting the foregoing, to qualify as an Eligible Credit Card Account, such Credit Card  Account shall indicate no Person other than a Loan Party as payee or remittance party.  In determining the  amount to be so included, the face amount of a Credit Card Account shall be reduced by, without  duplication, to the extent not reflected in such face amount or reflected in a Reserve, (i) the amount of all  accrued and actual fees and charges due to the credit card issuer or credit card processor by any Loan Party,  discounts, claims, credits or credits pending, promotional program allowances, price adjustments, finance  charges or other allowances (including any amount that a Loan Party may be obligated to rebate to a  customer, a credit card issuer or credit card processor pursuant to the terms of any agreement or  understanding), and (ii) the aggregate amount of all cash received in respect of such Credit Card Account  but not yet applied by the Loan Parties to reduce the amount of such Credit Card Account. Any Credit Card  Account included within any of the following categories shall not constitute an Eligible Credit Card  Account:  (a) which is not earned or does not represent the bona fide amount due to a Loan Party from a  credit card processor, a credit card issuer, debit card issuer or other applicable service provider that  originated in the ordinary course of business of the applicable Loan Party;  (b) which is not owned by a Loan Party or to which a Loan Party does not have good title;  (c) in which the payee of such Credit Card Account is a Person other than a Loan Party; (d) which does not constitute an “Account” (as defined in the UCC) or a “payment intangible”  (as defined in the UCC); (e) which has been outstanding for more than five (5) Business Days from the date of sale; (f) with respect to which the applicable credit card issuer, credit card processor, debit card  issuer or other applicable service provider has (i) applied for, suffered, or consented to the appointment of  any receiver, interim receiver, custodian, trustee, monitor, administrator, sequestrator or liquidator of its  assets, (ii) has had possession of all or a material part of its property taken by any receiver, interim receiver,  custodian, trustee, monitor, administrator, sequestrator or liquidator, (iii) filed, or had filed against it (but  only so long as any such involuntary filing has not been stayed or vacated), any request or petition for  liquidation, reorganization, arrangement, adjustment of debts, adjudication as bankrupt, winding-up, or  voluntary or involuntary case under any Insolvency Law, (iv) has admitted in writing its inability, or is  generally unable to, pay its debts as they become due, (v) become insolvent or (vi) ceased operation of its  business; (g) which is not a valid, legally enforceable obligation of the applicable credit card issuer or  credit card processor or debit card issuer or other applicable service provider with respect thereto; (h) which is not subject to a duly perfected first priority security interest in favor of the  Administrative Agent (for the benefit of the Secured Parties) (other than Permitted Liens set forth in  clauses (2)(a), (3), (22), (25) and (28)(i) of the definition thereof to the extent such Permitted Liens arise  under and have priority by operation of law);  (i) which is subject to any Lien, other than (i) a Lien in favor of the Administrative Agent (for  the benefit of the Secured Parties), (ii) any Permitted Liens contemplated by the applicable processor  agreements and for which appropriate Reserves (as determined by the Administrative Agent in its Permitted  

 

18 Discretion) have been established, and (iii) Liens securing any Other Secured Debt Obligations (if any) that  are subject to an ABL Intercreditor Agreement and which do not have priority over the Lien in favor of the  Administrative Agent; (j) with respect to which (i)  any covenant has been breached in any material respect or (ii) any  representation or warranty is not true in all material respects, in each case of (i) and (ii) to the extent  contained in this Agreement or the Security Agreement; provided that each such representation and  warranty shall be true and correct in all respects to the extent already qualified by a materiality standard; (k) to the extent not reflected in a Reserve, which is subject to risk of set-off, recoupment, non- collection or not being processed due to unpaid and/or accrued credit card processor fee balances, to the  extent of the lesser of the balance of the applicable Credit Card Account or the unpaid credit card processor  fees; (l) which is evidenced by “chattel paper” or an “instrument” of any kind unless such “chattel  paper” or “instrument” is in the possession of the Administrative Agent, and to the extent necessary or  appropriate, endorsed to the Administrative Agent;  (m) which the Administrative Agent, after consultation with the Borrower Representative, in  its Permitted Discretion to be uncertain of collection; (n) which represents a deposit or partial payment in connection with the purchase of Inventory  of such Loan Party; or  (o) which is not subject to a Credit Card Notification (subject to Section 5.16).  “Eligible In-Transit Inventory” means, as of the date of determination thereof, without duplication,  In-Transit Inventory of a Loan Party that, except as otherwise agreed by the Administrative Agent in its  Permitted Discretion, meets each of the following criteria, subject to Schedule 5.16:  (a) the Administrative Agent shall have received (1) a true and correct copy of the bill of lading  and, if requested by the Administrative Agent, other shipping documents for such Inventory and (2)  evidence of satisfactory marine cargo and casualty insurance naming the Administrative Agent as lender  loss payee and otherwise covering such risks as the Administrative Agent may reasonably request, (b) the Administrative Agent shall have received(1) reasonable confirmation that one of the  Loan Parties (or at the request of the Administrative Agent, the Administrative Agent) is named as  consignee on the bill of lading or seaway bill, (2) a reasonably acceptable agreement has been executed  with such Loan Party’s customs broker, freight forwarder, consolidator or carrier, as applicable, in which each of the customs broker, freight forwarder, consolidator or carrier, as applicable, agrees that it holds the  bill of lading or seaway bill as agent for the Administrative Agent and has agreed to follow the instructions  of the Administrative Agent in respect of the Inventory (a “Customs Broker/Carrier Agreement”), and (3) if so requested by the Administrative Agent, an acceptable waiver letter from the seller of any such goods  disclaiming any stoppage in transit rights and lien rights as against the applicable goods and Loan Parties,  (c) the common carrier is not an Affiliate of the applicable vendor or supplier,  (d) the customs broker is not an Affiliate of any Loan Party,  (e) such Inventory has not been in-transit for more than 75 days from the date such Inventory  first became Eligible Inventory (without regard to clause (g) of the definition of “Eligible Inventory”), and  

 

19 (f) such Inventory satisfies all of the criteria for Eligible Inventory (except the criteria in  clause (g) of the definition of “Eligible Inventory”);  provided that the Administrative Agent may, in its Permitted Discretion, exclude any particular Inventory  from the definition of “Eligible In-Transit Inventory” in the event that the Administrative Agent determines  that such Inventory is subject to any Person’s right of reclamation, repudiation, stoppage in transit or any  event has occurred or is reasonably anticipated by the Administrative Agent to arise which may otherwise  adversely impact the ability of the Administrative Agent to realize upon such Inventory.  “Eligible Inventory” means, as of the date of determination thereof, without duplication, items of  Inventory of a Loan Party that are finished goods inventory, merchantable and readily saleable in the  ordinary course of such Loan Party’s business (provided that, for the avoidance of doubt, “saleable in the  ordinary course of a Loan Party’s business” shall include, without limitation, clearance and bulk inventory  sales in the ordinary course), in each case that is not excluded as ineligible by virtue of one or more of the  criteria set forth below. Eligible Inventory shall not include any Inventory:  (a) which is not subject to a first priority perfected Lien in favor of the Administrative Agent  (for the benefit of the Secured Parties) (other than, so long as the Administrative Agent shall have  implemented any applicable Reserve in its Permitted Discretion in respect thereof, Permitted Liens set forth  in clauses (2), (3) and (22) of the definition thereof to the extent such Liens arise under and have priority  by operation of law);  (b) which is subject to any Lien other than (i) a Lien in favor of the Administrative Agent (for  the benefit of the Secured Parties), (ii) a Permitted Lien arising by operation of law which does not have  priority over the Lien in favor of the Administrative Agent (for the benefit of the Secured Parties) unless  the Administrative Agent shall have implemented a Reserve in its Permitted Discretion in respect thereof,  and (iii) Liens securing any Other Secured Debt Obligations (if any) that are subject to an ABL Intercreditor  Agreement and which do not have priority over the Lien in favor of the Administrative Agent;  (c) which is unmerchantable, defective, used, unfit for sale, unacceptable due to age, type,  category and/or quantity or with respect to which a liquidation value could not be obtained (such as special  order Inventory, samples, Inventory located at corporate offices, and other Inventory which is not of the  type usually sold in the ordinary course of the Loan Parties’ business); (d) with respect to which any covenant, representation or warranty contained in this Agreement  or in any Security Agreement has been breached in any material respect or is not true in any material respect  (or with respect to any representation or warranty that is already qualified by materiality, such  representation and warranty is untrue) and which does not conform in all material respects to all standards  imposed by any Governmental Authority;  (e) in which any Person other than such Loan Party shall (i) have any direct or indirect  ownership, interest or title or (ii) be indicated on any purchase order or invoice with respect to such  Inventory as having or purporting to have an interest therein;  (f) which is not finished goods or which constitutes packaging and shipping material,  manufacturing supplies, samples, prototypes, displays or display items, bill-and-hold or ship-in-place  goods, goods that are returned to the vendor or marked for return to the vendor, repossessed goods, defective  or damaged goods, goods held on consignment, or goods which are not of a type held for sale in the ordinary  course of business (for the avoidance of doubt, sales in the ordinary course of business includes clearance  sales and bulk inventory sales in the ordinary course);  

 

20 (g) which (i) is not located in the U.S. or (ii) is In-Transit Inventory; (h) which is located at any location that is not (i) an operating retail store location, (ii) a  temporary locations under the control of a Loan Party, (iii) a distribution center owned or leased by a Loan  Party or (iv) a third party warehouse or otherwise in the possession of a bailee that has been disclosed to  the Administrative Agent, in each case, other than (x) Inventory in transit between any of the foregoing  locations, and (y) Eligible In-Transit Inventory;  (i) which is located in any location leased by such Loan Party (other than any retail store of  such Loan Party located in a jurisdiction that does not provide for a common law or statutory landlord’s  lien on the personal property of tenants that would be prior or superior to the Liens of the Administrative  Agent) unless, subject to Section 5.16, (i) the lessor has delivered to the Administrative Agent a Collateral  Access Agreement or (ii) a Rent Reserve has been established by the Administrative Agent in its Permitted  Discretion; (j) which is (A) located in any third party warehouse or is in the possession of a bailee (other  than a third party processor) unless, subject to Section 5.16, (i) such warehouseman or bailee has delivered  to the Administrative Agent a Collateral Access Agreement and such other documentation as the  Administrative Agent may require or (ii) an appropriate Reserve has been established by the Administrative  Agent in its Permitted Discretion; (k) which is being processed offsite at a third party location or outside processor, unless,  subject to Section 5.16, (i) such third party processor has delivered to the Administrative Agent a Collateral  Access Agreement and such other documentation as the Administrative Agent may require or (ii) an  appropriate Reserve has been established by the Administrative Agent in its Permitted Discretion; (l) which is the subject of a consignment by such Loan Party as consignor;  (m) which contains or bears any Intellectual Property rights licensed to such Loan Party unless  the Administrative Agent is satisfied that it may sell or otherwise Dispose of such Inventory without  (i) infringing the rights of such licensor, (ii) violating any contract with such licensor, or (iii) incurring any liability with respect to payment of royalties other than royalties incurred pursuant to sale of such Inventory  under the current licensing agreement; (n) which is not reflected in a current perpetual inventory report of such Loan Party (unless  such Inventory is reflected in a report to the Administrative Agent as “in transit” Inventory; (o) for which reclamation rights have been asserted by the seller; (p) which does not meet such other eligibility criteria for Inventory as the Administrative  Agent in its Permitted Discretion may determine from time to time; provided, however, that the  Administrative Agent shall not add any additional eligibility criteria (or amend any then-existing eligibility  criteria to make the same more restrictive) without giving at least five (5) Business Days’ prior notice to  the Borrower Representative; provided further that, if after the delivery of such notice the Borrower  Representative notifies the Administrative Agent that it desires to discuss the changes described therein,  then the Administrative Agent will discuss such changes with the Borrower Representative, provided that  nothing in this proviso shall obligate the Administrative Agent to eliminate, reduce, or delay any such  changes;  (q) which has been designated or demanded to be returned to or retained by the applicable  vendor or which has been recognized as damaged or off quality by the applicable Loan Party; or  

 

21 (r) Inventory acquired in a Permitted Acquisition or which is not of the type usually sold in  the ordinary course of the Loan Parties’ business (for the avoidance of doubt, sales in the ordinary course  of business includes clearance sales and bulk inventory sales in the ordinary course), unless and until the  Administrative Agent has completed or received (or, with respect to Inventory in an aggregate amount not  to exceed $25,000,000, waived) (i) an appraisal of such Inventory from an appraiser acceptable to the  Administrative Agent in its Permitted Discretion and establishes an advance rate and Reserves (if  applicable) therefor, and otherwise agrees that such Inventory shall be deemed Eligible Inventory, and (ii) upon the request of the Administrative Agent in its Permitted Discretion, a commercial field examination,  all of the results of the foregoing to be satisfactory to the Administrative Agent in its Permitted Discretion;  provided further that in determining the value of the Eligible Inventory, such value shall be reduced by,  without duplication of amounts already accounted for in determining such value, any amounts representing  (i) vendor rebates; (ii) costs included in Inventory relating to advertising; (iii) a shrink reserve, an  obsolescence reserve, and a reserve based on markdowns (both permanent and point of sale), and (iv) the  unreconciled discrepancy between the general inventory ledger and the perpetual inventory ledger, to the  extent the general inventory ledger reflects less Inventory than the perpetual inventory ledger. “Environment” means any surface water, groundwater, drinking water supply, land surface or  subsurface strata or ambient air. “Environmental Laws” means all laws, rules, regulations, codes, ordinances, and all binding orders,  decrees, judgments, injunctions, notices or agreements passed, adopted, issued, promulgated or entered into  by any Governmental Authority, relating to protection of the environment, preservation or reclamation of  natural resources, the management, Release or threatened Release of any Hazardous Material or to health  and safety matters to the extent related to exposure to Hazardous Materials. “Environmental Liability” means (i) any obligation or responsibility of any Loan Party or any  Restricted Subsidiary to comply with the terms of any order, decree, injunction, claim, notice or obligation  of an agreement; or (ii) any obligation or responsibility of any Loan Party or any Restricted Subsidiary for  damages, costs of environmental investigations or remediation, fines, or penalties of any Loan Party or any  Restricted Subsidiary, either of which is resulting from or based upon (a) a violation of any Environmental  Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous  Materials, (c) any exposure to any Hazardous Materials resulting in physical injury or property damage or  a claim of such injury or property damage, (d) the Release or threatened Release of any Hazardous Materials  into the Environment, or (e) any contract, agreement or other consensual arrangement pursuant to which  liability is assumed by or imposed upon any Loan Party or any Restricted Subsidiary with respect to the  foregoing clauses (i) or (ii). “Equity Interests” means shares of capital stock, partnership interests, membership interests in a  limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and  any warrants, options or other rights entitling the holder thereof to purchase or acquire any of the foregoing  (but excluding any debt security that is convertible into, or exchangeable for, Equity Interests).  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to  time. “ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with a  Loan Party, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes  of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of  the Code.  

 

22 “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the  regulations issued thereunder, with respect to a Plan (other than an event for which the 30-day notice period  is waived); (b) the failure to satisfy the “minimum funding standard” (as defined in Section 412 of the Code  or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(c) of the Code or  Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to  any Plan; (d) the incurrence by any Loan Party or any ERISA Affiliate of any liability under Title IV of  ERISA with respect to the termination or partial termination of any Plan; (e) the receipt by any Loan Party  or any ERISA Affiliate from the PBGC of any notice relating to an intention to terminate any Plan or Plans  or to appoint a trustee to administer any Plan; (f) the incurrence by any Loan Party or any ERISA Affiliate  of any liability with respect to the withdrawal or partial withdrawal of any Loan Party or any ERISA  Affiliate from any Multiemployer Plan; (g) the receipt by any Loan Party or any ERISA Affiliate of any  notice, or the receipt by any Multiemployer Plan from any Loan Party or any ERISA Affiliate of any notice,  concerning the imposition upon any Loan Party or any ERISA Affiliate of Withdrawal Liability or a  determination that a Multiemployer Plan is, or is expected to be, insolvent (within the meaning of Title IV  of ERISA), “endangered” or “critical” status (within the meaning of Section 432 of the Code or Section 305 of ERISA);  (h) the failure to timely make a contribution required to be made with respect to any Plan or Multiemployer  Plan; or (i) the conditions for imposition of a lien under Section 303(k) of ERISA shall have been met with  respect to any Plan.  “Erroneous Payment” has the meaning assigned to it in Section 8.12(a).  “Erroneous Payment Deficiency Assignment” has the meaning assigned to it in Section 8.12(d).  “Erroneous Payment Impacted Class” has the meaning assigned to it in Section 8.12(d). “Erroneous Payment Return Deficiency” has the meaning assigned to it in Section 8.12(d). “Erroneous Payment Subrogation Rights” has the meaning assigned to it in Section 8.12(d). “ESG” has the meaning specified in Section 9.02.  “ESG Ratings” has the meaning specified in Section 9.02.  “ESG Amendment” has the meaning specified in Section 9.02.  “ESG Pricing Provisions” has the meaning specified in Section 9.02.  “€STR” means a rate equal to the Euro Short Term Rate as administered by the €STR  Administrator.  “€STR Administrator” means the European Central Bank (or any successor administrator of the  Euro Short Term Rate). “€STR Administrator’s Website” means the European Central Bank’s website, currently at  http://www.ecb.europa.eu, or any successor source for the Euro Short Term Rate identified as such by the  €STR Administrator from time to time. “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. 

 

23 “Euro” and “€” mean the single currency of the Participating Member States. “Eurocurrency Banking Day” means any day which is, as applicable, for Obligations, interest, fees,  commissions or other amounts denominated in, or calculated with respect to Canadian Dollars, any day on  which banks are open for business in Canada.   “Eurocurrency Rate” means, with respect to any Eurocurrency Rate Borrowing for any Interest  Period, an interest rate per annum determined by Administrative Agent by dividing (the resulting quotient   rounded upwards, at the Administrative Agent’s discretion, to the nearest 1/100 of 1%)(a) the applicable  Eurocurrency Rate below for such Interest Period by (b) a number equal to 1.00 minus the Eurocurrency  Reserve Percentage: denominated in Canadian Dollars, the rate per annum (the “CDOR Rate”) as  determined by the Administrative Agent, equal to the arithmetic average rate applicable to Canadian Dollar  bankers’ acceptances (C$BAs) for the applicable Interest Period appearing on the Bloomberg page BTMM  CA, rounded upwards, at the Administrative Agent’s discretion, to the nearest 1/100 of 1% per annum, at  approximately 11:00 a.m. Eastern Time, two (2) Eurocurrency Banking Days prior to the commencement  of such Interest Period; provided that if by such time such rate does not appear on the Bloomberg page  BTMM CA, the CDOR Rate on such day shall be the rate for such period applicable to Canadian Dollar  bankers’ acceptances quoted by a bank listed in Schedule I of the Bank Act (Canada), as selected by the  Administrative Agent, as of 11:00 a.m. Eastern Time on such day or, if such day is not a Business Day, then on the immediately preceding Business Day; provided further that any CDOR Rate so determined  based on the immediately preceding Business Day shall be utilized for purposes of calculation of the  Eurocurrency Rate for no more than three (3) consecutive Business Days (collectively, the “CDOR  Lookback Day”); provided that  if the adjusted Eurocurrency Rate as determined above would be less than  the Floor, such rate shall be deemed to be the Floor for purposes of this Agreement. The Eurocurrency Rate  for any Loans shall be based upon the Eurocurrency Rate for the Currency in which such Loans are  requested. The Eurocurrency Rate for each outstanding Eurocurrency Rate Loan shall be adjusted  automatically as of the effective date of any change in the Eurocurrency Reserve Percentage. The  Administrative Agent shall give prompt notice to the Borrower of the Eurocurrency Rate as determined or  adjusted in accordance herewith, which determination shall be conclusive absent manifest error. “Eurocurrency Rate Lookback Days” means the CDOR Lookback Day and each such day is a  “Eurocurrency Rate Lookback Day”. “Eurocurrency Rate Borrowing” means, as to any Borrowing, a Eurocurrency Rate Loan .  “Eurocurrency Rate Loan” means a Loan that bears interest at a rate based on the Eurocurrency  Rate. “Eurocurrency Rate Option” means the option of the Borrowers to have Loans bear interest at the  rate and under the terms specified in Section 2.08(a)(i)(B). “Eurocurrency Reserve Percentage” means, for any day during any Interest Period, the reserve  percentage in effect on such day, whether or not applicable to any Lender, under regulations issued from  time to time by the Board for determining the maximum reserve requirement (including any emergency,  special, supplemental or other marginal reserve requirement) with respect to eurocurrency funding  (currently referred to as “Eurocurrency liabilities” in Regulation D) or any other reserve ratio or analogous  requirement of any central banking or financial regulatory authority imposed in respect of the maintenance  of the Commitments or the funding of the Loans.  

 

24 “European Union” means the region comprised of member states of the European Union pursuant  to the Treaty of Rome of March 25, 1957, as amended by the Single European Act 1986 and the Maastricht  Treaty (signed February 7, 1992), as amended from time to time.  “Event of Default” has the meaning assigned to such term in Article VII.  “Excluded Asset” has the meaning assigned to such term in the Security Agreement. “Excluded Domestic Subsidiary” means, collectively, (i) any CFC Holdco, (ii) any Domestic  Subsidiary that is a direct or indirect Subsidiary of a CFC and (iii) any other Domestic Subsidiary of any  Loan Party formed or otherwise acquired after the date hereof if the execution of a Joinder Agreement and  the Guarantee of the Obligations would cause material adverse tax consequences to any Loan Party or any  Affiliate of a Loan Party in the reasonable good faith determination of the Company, in consultation with  the Administrative Agent. “Excluded Subsidiary” means each (a) Immaterial Subsidiary, (b) Unrestricted Subsidiary,  (c) Excluded Domestic Subsidiary, (d) Foreign Subsidiary, (e) Subsidiary that is not a Wholly Owned  Subsidiary, (f) Subsidiary that is prohibited by applicable law, rule or regulation or by any contractual  obligation (if, with respect to any such contractual obligations, such contractual obligations were existing  on the date hereof or existing at the time of acquisition thereof after the date hereof), in each case from  guaranteeing the Obligations or that would require governmental (including regulatory) consent, approval,  license or authorization to provide a guarantee unless such consent, approval, license or authorization has  been received, (g) any other Subsidiary if in the reasonable good faith determination of the Company, in  consultation with the Administrative Agent, a guarantee by such Subsidiary would result in materially  adverse tax consequences to the Company or any of its Subsidiaries and (h) any other Subsidiary with  respect to which, in the reasonable judgment of the Administrative Agent (confirmed in writing by notice  to the Company), the cost or other consequences of becoming a Guarantor shall be excessive in view of the  benefits to be obtained by the Lenders therefrom; provided that any Subsidiary of the Company that is a  guarantor of any Other Secured Debt Obligations (if any) shall become a Guarantor hereunder.  “Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to  the extent that, all or a portion of the Guarantee of such Guarantor of, or the grant by such Guarantor of a  security interest to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the  Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission  (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any  reason to constitute an ECP at the time the Guarantee of such Guarantor or the grant of such security interest  becomes or would become effective with respect to such Swap Obligation. If a Swap Obligation arises  under a master agreement governing more than one swap, such exclusion shall apply only to the portion of  such Swap Obligation that is attributable to swaps for which such Guarantee or security interest is or  becomes illegal. “Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or  required to be withheld or deducted from a payment to a Recipient: (a) Taxes imposed on or measured by  net income or capital (however denominated), franchise Taxes, and branch profits Taxes, in each case,  (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office  or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or  any political subdivision thereof) or (ii) that are Other Connection Taxes; (b) in the case of a Lender, U.S.  federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect  to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such  Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by  the Borrowers under Section 2.19(b)) or (ii) such Lender changes its lending office, except in each case to  

 

25 the extent that, pursuant to Section 2.17, amounts with respect to such Taxes were payable either to such  Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately  before it changed its lending office; (c) Taxes attributable to such Recipient’s failure to comply with Section  2.17(f); and (d) any U.S. Federal withholding Taxes imposed under FATCA, (i) is a person with which a  Loan Party does not deal at arm’s length (for the purposes of the ITA), or (ii) is a “specified shareholder”  (as defined in subsection 18(5) of the ITA) of a Loan Party or does not deal at arm’s length (for the purposes  of the ITA) with such a “specified shareholder” (other than where the non-arm’s length relationship arises,  or where the Recipient is a “specified shareholder” or does not deal at arm’s length with a “specified  shareholder”, in connection with or as a result of the Recipient having become a party to, received or  perfected a security interest under or received or enforced any rights under, a Loan Document).  “Existing Credit Agreement” means that certain Second Amended and Restated Credit Agreement,  dated as of September 22, 2021, by and among the Company, certain Subsidiaries of the Company, PNC  Bank, National Association, as administrative agent, and a syndicate of lenders, as amended. “Existing Letters of Credit” means each of the letters of credit described on Schedule 1.01(b).  “Fair Market Value” means, with respect to any asset or property, the price which could be  negotiated in an arm’s-length transaction, for cash, between a willing seller and a willing and able buyer,  with neither party being compelled to buy or sell.  “FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any  amended or successor version that is substantively comparable and not materially more onerous to comply  with), any current or future regulations or official interpretations thereof, any agreements entered into  pursuant to Section 1471(b)(1) of the Code, and any fiscal or regulatory legislation, rules or practices  adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental  Authorities entered into in connection with the implementation of the foregoing. “Fee Letter” means that certain amended and restated fee letter, dated as of the date hereof, executed  by the Company, the Administrative Agent, and PNC Capital Markets, LLC.  “Finance Lease” means, with respect to any Person, any lease of any real or personal property by  such Person as lessee that, in conformity with GAAP, is accounted for as a finance lease on the balance  sheet of such Person.  “Finance Lease Obligations” means, with respect to any Person and a Finance Lease, the amount  of the obligation of such Person as the lessee under such Finance Lease which would, in accordance with  GAAP, appear as a liability on a balance sheet of such Person. “Financial Officer” means with respect to the Company, its President, Chief Executive Officer,  Chief Financial Officer, Treasurer or Controller, or other duly elected or appointed officer of the Borrower  Representative reasonably acceptable to the Administrative Agent. “Fixed Charge Coverage Ratio” means, for any period of determination with respect to the  Company on a Consolidated Basis, the ratio of (a) Consolidated EBITDA for such period minus the sum  of (i) Unfinanced Capital Expenditures plus (ii) the portion of taxes based on income actually paid in cash  and provisions for cash income taxes, to (b) Fixed Charges for such period.  “Fixed Charges” means, for any period of determination, the sum of (a) any scheduled amortization  payments paid or payable during such period on all Indebtedness of the Company and its Restricted  Subsidiaries (including the principal component of all obligations in respect of all Finance Lease  

 

26 Obligations), plus (b) consolidated cash Interest Expense of the Company and its Restricted Subsidiaries  for such period.  “Flood Laws” has the meaning assigned to such term in Section 8.10.   “Floor” means 0.00% per annum. “Foreign Lender” means a Lender that is not a U.S. Person.  “Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary.   “Funding Accounts” means the deposit account(s) of the Borrowers to which the Administrative  Agent or the Swingline Lender is authorized by the Borrowers (or by the Borrower Representative on their  behalf) to transfer the proceeds of any Borrowings requested or authorized pursuant to this Agreement. “GAAP” means accounting principles generally accepted in the U.S., consistently applied. “Governmental Authority” means the government of the United States of America, any other nation  or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality,  regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing,  regulatory or administrative powers or functions of or pertaining to government (including any supra- national body exercising such powers or functions, such as the European Union or the European Central  Bank). “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise,  of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other  obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and  including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply  funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance  or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property,  securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the  payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition  or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other  obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support  such Indebtedness or obligation; provided, that the term Guarantee shall not include (i) warranties or  indemnities made in trade contracts, asset sale agreements, acquisition agreements, commitment letters,  engagement letters and brokerage and deposit agreements in the ordinary course of business, and warranties  and indemnities to lenders in any documents evidencing Indebtedness permitted pursuant to Section 6.01 with respect to the guarantor, (ii) any indemnities made in connection with liability of a Person’s directors,  officers and employees in their capacities as such as permitted by applicable law, (iii) any contingent  liability arising from the endorsement of negotiable or other instruments for deposit or collection in the  ordinary course of business, and (iv) any continuing liability of the Company or its Subsidiaries as a lessee  under a lease after such lease has been assigned or subleased by such Person. “Guaranteed Obligations” has the meaning set forth in Section 10.01.  “Guarantors” means each Domestic Subsidiary of a Borrower that is listed on the signature pages  hereto as a Guarantor or that becomes a party hereto as a Guarantor pursuant to Section 5.14, in each case,  until such Subsidiary’s Guaranty is released in accordance herewith. 

 

27 “Hazardous Material” means: (a) any substance, material, or waste that is included within the  definitions of “hazardous substances,” “hazardous materials,” “hazardous waste,” “toxic substances,”  “toxic materials,” “toxic waste,” or words of similar import in any Environmental Law; (b) those substances  listed as hazardous substances by the United States Department of Transportation (or any successor agency)  (49 C.F.R. 172.101 and amendments thereto) or by the Environmental Protection Agency (or any successor  agency) (40 C.F.R. Part 302 and amendments thereto); and (c) any substance, material, or waste that is  (i) petroleum, petroleum derivative or fraction, or a petroleum by-product, (ii) asbestos or asbestos- containing material, (iii) polychlorinated biphenyls, (iv) ozone depleting substances, (v) radon gas, or (vi) a pesticide, herbicide, or other substance regulated under the Federal Insecticide, Fungicide and Rodentide  Act (“FIFRA”), 7 U.S.C. §136 et seq.  “Immaterial Subsidiary” means any Subsidiary (other than a Borrower) designated by the Borrower  Representative to the Administrative Agent as an “Immaterial Subsidiary” and that meets each of the  following criteria as of the last day of the most recent fiscal quarter for which financial statements have  been delivered to the Administrative Agent pursuant to Sections 5.01(a) or (b): (a) such Subsidiary and its  Subsidiaries accounted for less than (x) 2.5% of Total Assets at such date and (y) 2.5% of the consolidated  revenues of the Company and its Subsidiaries for the most recent four fiscal quarter period ending on such  date, (b) all Immaterial Subsidiaries and their respective Subsidiaries accounted for less than (x) 5.0% of  Total Assets at such date and (y) 5.0% of the consolidated revenues of the Company and its Subsidiaries  for the most recent four fiscal quarter period ending on such date, and (c) such Subsidiary and its  Subsidiaries do not own any Material Intellectual Property; provided, that no Subsidiary shall be or be  designated as an “Immaterial Subsidiary” if such Subsidiary has provided a Guaranty of, or pledged any  Collateral as security for, any Other Secured Debt Obligations (if any) (unless such Guaranty or pledge, as  applicable, is released prior to or substantially concurrently with such designation).  Each Immaterial  Subsidiary as of the date hereof shall be set forth in Schedule 1.01(c), and the Borrower Representative  shall update such Schedule from time to time after the date hereof as necessary to reflect all Immaterial  Subsidiaries at such time (the selection of Subsidiaries to be added to or removed from such Schedule to be  made as the Borrower may determine). “Incur” means issue, assume, guarantee, incur or otherwise be or become liable for; provided,  however, that any Indebtedness or Equity Interests of a Person existing at the time such person becomes a  Subsidiary (whether by merger, amalgamation, consolidation, acquisition or otherwise) shall be deemed to  be Incurred by such Person at the time it becomes a Subsidiary. “Incurred” and “Incurrence” shall have like  meanings. “Indebtedness” means, with respect to any Person: (1) the principal amount of any indebtedness of such Person, whether or not contingent, (a) in  respect of borrowed money, (b) evidenced by bonds, notes, debentures or similar instruments or letters of  credit, bankers’ acceptances, or similar facilities (or, without duplication, reimbursement agreements in  respect thereof), (c) representing the deferred and unpaid purchase price of any property (except any such  balance that constitutes (i) a trade payable or similar obligation to a trade creditor Incurred in the ordinary  course of business, (ii) any earn-out obligations until such obligation becomes a liability on the balance  sheet of such Person in accordance with GAAP, (iii) obligations accounted for as an operating lease in  conformity with GAAP, and (iv) liabilities accrued in the ordinary course of business), (d) in respect of  Finance Lease Obligations; and (e) all monetary obligations that qualify as indebtedness on the balance  sheet of such Person in accordance with GAAP under any receivables factoring, receivable sales or similar  transactions and all attributable indebtedness calculated in accordance with GAAP under any synthetic  lease, tax ownership/operating lease, off-balance sheet financing or similar financing;  

 

28 (2) to the extent not otherwise included, any obligation of such Person to be liable for, or to  pay, as obligor, guarantor or otherwise, the obligations referred to in clause (1) of another Person (other  than by endorsement of negotiable instruments for collection in the ordinary course of business); and  (3) to the extent not otherwise included, Indebtedness of another Person secured by a Lien on  any asset owned by such Person (whether or not such Indebtedness is assumed by such Person); provided,  however, that the amount of such Indebtedness will be the lesser of:  (a) the Fair Market Value (as  determined in good faith by the Company) of such asset at such date of determination, and (b) the amount  of such Indebtedness of such other Person;  provided, however, that, notwithstanding the foregoing, Indebtedness shall be deemed not to  include (1) Contingent Obligations incurred in the ordinary course of business and not in respect of  borrowed money; (2) deferred or prepaid revenues; (3) purchase price holdbacks in respect of a portion of  the purchase price of an asset to satisfy warranty or other unperformed obligations of the respective seller;  (4) trade and other ordinary course payables and accrued expenses arising in the ordinary course of  business; (5) in the case of the Company and the Subsidiaries, (x) all intercompany Indebtedness solely  among the Company and the Restricted Subsidiaries made in the ordinary course of business and  (y) intercompany liabilities in connection with cash management, tax and accounting operations of the  Company and the Subsidiaries; and (6) any Swap Agreement Obligations; provided that such agreements  are entered into for bona fide hedging purposes of the Company and the Subsidiaries (as determined in  good faith by the board of directors or senior management of the Company, whether or not accounted for  as a hedge in accordance with GAAP) and, in the case of any foreign exchange contract, currency swap  agreement, futures contract, option contract or other similar agreement, such agreements are related to  business transactions of the Company and the Subsidiaries entered into in the ordinary course of business  and, in the case of any interest rate protection agreement, interest rate future agreement, interest rate option  agreement, interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest  rate hedge agreement or other similar agreement or arrangement, such agreements substantially correspond  in terms of notional amount, duration and interest rates, as applicable, to Indebtedness of the Company or  the Subsidiaries Incurred without violation of this Agreement.  Notwithstanding anything in this Agreement to the contrary, Indebtedness shall not include, and  shall be calculated without giving effect to, the effects of Financial Accounting Standards Board  Accounting Standards Codification 815 (or any other Accounting Standards Codification or Financial  Accounting Standards having a similar result or effect or any successor thereto) to the extent such effects  would otherwise increase or decrease an amount of Indebtedness for any purpose under this Agreement as  a result of accounting for any embedded derivatives created by the terms of such Indebtedness; and any  such amounts that would have constituted Indebtedness under this Agreement but for the application of this  sentence shall not be deemed an Incurrence of Indebtedness under this Agreement. “Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to  any payment made by, or on account of any obligation of any Loan Party under any Loan Document and  (b) to the extent not otherwise described in subsection (a), Other Taxes.  “Indemnitee” has the meaning assigned to such term in Section 9.03(b).    “Independent Financial Advisor” means an accounting, appraisal or investment banking firm or  consultant, in each case of nationally recognized standing, that is, in the good faith determination of the  Company, qualified to perform the task for which it has been engaged.  “Ineligible Institution” has the meaning assigned to such term in Section 9.04(b). 

 

29 “Information” has the meaning assigned to such term in Section 9.12.  “Insolvency Laws” means each of the Bankruptcy Code, as amended, and any other applicable  state, provincial, territorial or federal bankruptcy laws, each as now and hereafter in effect, any successors  to such statutes and any other applicable insolvency or other similar law of any jurisdiction, including any  corporate law of any jurisdiction permitting a debtor to obtain a stay or a compromise of the claims of its  creditors against it and including any rules and regulations pursuant thereto.  “Intellectual Property” means all present and future: trade secrets, know-how and other proprietary  information; trademarks, trademark applications, internet domain names, service marks, trade dress, trade  names, business names, designs, logos, slogans (and all translations, adaptations, derivations and  combinations of the foregoing) indicia and other source and/or business identifiers, and all registrations or  applications for registrations which have heretofore been or may hereafter be issued thereon throughout the  world; copyrights and copyright applications (including copyrights for computer programs) and all tangible  and intangible property embodying the copyrights, unpatented inventions (whether or not patentable);  patents and patent applications; industrial design applications and registered industrial designs; license  agreements related to any of the foregoing and income therefrom; books, customer lists, records, writings,  computer tapes or disks, flow diagrams, specification sheets, computer software, source codes, object codes,  executable code, data, databases and other physical manifestations, embodiments or incorporations of any  of the foregoing; all other intellectual property; and all common law and other rights throughout the world  in and to all of the foregoing. “Intercompany Subordination Agreement” means the Intercompany Subordination Agreement,  dated as of the Closing Date, among the Company and its Subsidiaries, in form and substance reasonably  satisfactory to the Administrative Agent and the Lenders, as amended, restated, supplemented or otherwise  modified from time to time in accordance with the terms thereof.  “Interest Election Request” means a request by the Borrower Representative to convert or continue  a Borrowing in accordance with Section 2.08, which shall be, in the case of any such written request, in the  form of Exhibit E or any other form approved by the Administrative Agent.  “Interest Expense” means, with respect to any Person for any fiscal period, interest expense of such  Person determined in accordance with GAAP for the relevant period ended on such date.  “Interest Payment Date” means (a) with respect to any Loan with an Interest Period applicable  thereto, the last day of the Interest Period applicable to such Borrowing of which such Loan is a part and,  in the case of any such Borrowing with an Interest Period of more than three months’ duration, also at the  end of each three-month period during such Interest Period, (b) with respect to all other Loans (including  the Swingline Loans), the first Business Day of each calendar quarter and the Maturity Date, and (c) the  Maturity Date. “Interest Period” means the period of time selected by the Borrowers in connection with (and to  apply to) any election permitted hereunder by the Borrower to have Revolving Loans bear interest under a  Term Rate Loan Option.  Subject to the last sentence of this definition and subject to availability for the  interest rate applicable to the relevant Currency, such period shall be one-month, three-months, or six- months.  Such Interest Period shall commence on the effective date of such Term Rate Loan Option, which  shall be (i) the Borrowing Date if the Borrowers are requesting new Loans, or (ii) the date of renewal of or  conversion to a Term Rate Loan Option if the Borrowers are renewing or converting to a Term Rate Loan  Option applicable to outstanding Loans.  Notwithstanding the second sentence hereof: (A) any Interest  Period which would otherwise end on a date which is not a Business Day shall be extended to the next  succeeding Business Day unless such Business Day falls in the next calendar month, in which case such  

 

30 Interest Period shall end on the next preceding Business Day, (B) the Borrowers shall not select, convert to  or renew an Interest Period for any portion of the Loans that would end after the Expiration Date, and (C)  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.  “Interest Rate Option” means any Term Rate Loan Option or Daily Rate Loan Option.  “In-Transit Inventory” means Inventory of a Loan Party which is in transit with a common carrier  from vendors or suppliers of the Loan Party.  “Inventory” has the meaning assigned to such term in the Security Agreement. “Inventory Advance Rate” means ninety percent (90%); provided that the Borrower Representative  may elect, upon at least thirty (30) days’ prior written notice to the Administrative Agent, in each calendar  year, a period of four consecutive calendar months (any such four month period, an “Increased Advance  Rate Period”), in which such amount shall be equal to ninety-two and one-half percent (92.5%); provided,  further, that, there shall be a period of at least three (3) consecutive months between each Increased Advance  Rate Period; provided, further, that, an Increased Advance Rate Period shall be in effect as of the Closing  Date.  “Investments” means, with respect to any Person, all investments by such Person in other Persons  (including Affiliates) in the form of loans (including guarantees), advances or capital contributions,  repayments of intercompany Indebtedness pursuant to clauses (a) and (b) of the definition of “Junior  Indebtedness”, purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other  securities issued by any other Person and investments that are required by GAAP to be classified on the  balance sheet of such Person in the same manner as the other investments included in this definition to the  extent such transactions involve the transfer of cash or other property.  For purposes of the definition of  “Unrestricted Subsidiary” and Section 6.02:  (1) “Investments” shall include the portion (proportionate to the Company’s direct or indirect equity  interest in such Subsidiary) of the Fair Market Value (as determined in good faith by the Company) of the  net assets of such Subsidiary at the time that such Subsidiary is designated an Unrestricted Subsidiary;  provided, however, that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Company  shall be deemed to continue to have a permanent “Investment” in an Unrestricted Subsidiary equal to an  amount (if positive) equal to:  (a) its “Investment” in such Subsidiary at the time of such redesignation less (b) the portion (proportionate to its direct or indirect equity interest in such Subsidiary)  of the Fair Market Value (as determined in good faith by the Company) of the net assets of such  Subsidiary at the time of such redesignation; and  (2) any property transferred to or from an Unrestricted Subsidiary shall be valued at its Fair Market  Value (as determined in good faith by the Company) at the time of such transfer.  “IRS” means the United States Internal Revenue Service. “Issuing Bank” means (a) PNC, (b) U.S. Bank and (c) any other Lender from time to time  designated by the Borrower Representative as an Issuing Bank, with the consent of such Lender and upon  notice to the Administrative Agent, in which case the term “Issuing Bank” shall mean PNC and each such  

 

31 Lender, individually or collectively as the context shall require and their respective successors.  The Issuing  Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by its Affiliates, in which  case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by  such Affiliate (it being agreed that such Issuing Bank shall, or shall cause such Affiliate to, comply with  the requirements of Section 2.06 with respect to such Letters of Credit). At any time there is more than one  Issuing Bank, all singular references to the Issuing Bank shall mean any Issuing Bank, either Issuing Bank,  each Issuing Bank, the Issuing Bank that has issued the applicable Letter of Credit, or both (or all) Issuing  Banks, as the context may require. “Joinder Agreement” means a Joinder Agreement in substantially the form of Exhibit F. “Joint Venture” means a corporation, partnership, limited liability company or other entity  (excluding any Subsidiary) in which any Person other than a Loan Party or any Restricted Subsidiary holds,  directly or indirectly, an equity interest. “Joint Venture Equity Interests” has the meaning given to such term in Section 3.02.  “Junior Indebtedness” means (a) unsecured Indebtedness for borrowed money (other than  intercompany Indebtedness owing to the Company or to a Subsidiary if an Investment in such Subsidiary  by the obligor of such Indebtedness in such amount would be permitted at such time; provided that any  repayment of such Indebtedness will be deemed an Investment in such Subsidiary in such amount), (b) any  Indebtedness which is by its terms subordinated in right of payment or lien priority to the Obligations (other  than (x) intercompany Indebtedness owing to the Company or to a Subsidiary if an Investment in such  Subsidiary by the obligor of such Indebtedness in such amount would be permitted at such time; provided  that any repayment of such Indebtedness will be deemed an Investment in such Subsidiary in such amount, and (y) Other Secured Debt Obligations), and (c) Indebtedness arising from agreements of a Loan Party or  any Subsidiary providing for the adjustment of acquisition or purchase price or similar obligations  (including earn-outs), in each case, Incurred or assumed in connection with any Investments or any  acquisition or disposition of any business, assets or a Subsidiary.  “KPIs” has the meaning specified in Section 9.02.  “LC Collateral Account” has the meaning assigned to such term in Section 2.06(j).  “LC Disbursement” means any payment made by an Issuing Bank pursuant to a Letter of Credit. “LC Exposure” means, at any time, the sum of the Commercial LC Exposure and the Standby LC  Exposure.  “LC Individual Sublimit” means, with respect to any Issuing Bank, an amount equal to (a) with  respect to Letters of Credit issued by the Issuing Banks as of the Closing Date, the respective amounts set  forth on the Commitment Schedule, and (b) with respect to Letters of Credit issued by any other Issuing  Bank, the amount agreed to by the Issuing Bank and the Borrower Representative upon notice to the  Administrative Agent, in each case, as such amount may be increased for an Issuing Bank as agreed to by  such Issuing Bank and the Borrower Representative upon notice to the Administrative Agent. “Lenders” means the Persons listed on the Commitment Schedule and any other Person that shall  have become a Lender hereunder pursuant to Section 2.09 or an Assignment and Assumption, other than  any such Person that ceases to be a Lender hereunder pursuant to an Assignment and Assumption.  Unless  the context otherwise requires, the term “Lenders” includes the Swingline Lender and the Issuing Bank. 

 

32 “Letter of Credit Fees” has the meaning assigned to such term in Section 2.12(b).  “Letters of Credit” has the meaning assigned to such term in Section 2.06, and the term “Letter of  Credit” means any one of them or each of them singularly, as the context may require. “Lien” means, with respect to any asset, any mortgage, lien, pledge, hypothecation, charge, security  interest or similar encumbrance of any kind in respect of such asset, whether or not filed, recorded or  otherwise perfected under applicable law (including any conditional sale or other title retention agreement  or any lease in the nature thereof); provided that in no event shall an operating lease or an agreement to sell  be deemed to constitute a Lien. “Loan Documents” means, collectively, this Agreement, any promissory notes issued pursuant to  this Agreement, any Letter of Credit applications, the Collateral Documents, the Loan Guaranty, the  Intercompany Subordination Agreement, each Compliance Certificate, the Fee Letter, any Borrowing Base  Certificate, any promissory notes issued hereunder, and any and all other instruments, agreements,  documents and writings executed in connection with the foregoing which the Company and the  Administrative Agent agree in writing is a “Loan Document.”  Any reference in this Agreement or any  other Loan Document to a Loan Document shall include all amendments, restatements, supplements or  other modifications thereto, and shall refer to this Agreement or such Loan Document as the same may be  in effect at any and all times such reference becomes operative.  “Loan Guaranty” means Article X of this Agreement. “Loan Parties” means, collectively, the Borrowers and the Guarantors and any other Person who  becomes a party to this Agreement pursuant to a Joinder Agreement and their successors and assigns, and  the term “Loan Party” shall mean any one of them or all of them individually, as the context may require.  “Loans” means the loans and advances made by the Lenders or the Administrative Agent pursuant  to this Agreement, including Revolving Loans, Swingline Loans, Overadvances and Protective Advances. “Material Adverse Effect” means any set of circumstances or events which (a) is material and  adverse to the business, properties, assets or financial condition of the Loan Parties and their Subsidiaries  taken as a whole, (b) impairs materially the rights and remedies of the Administrative Agent, the Issuing  Bank or any Lender under any Loan Document, or the ability of the Loan Parties taken as a whole to duly  and punctually pay or perform any of the Obligations, (c) has a material adverse effect upon the legality,  validity, binding effect or enforceability against any Loan Party of any Loan Document to which it is a  party, (d) has a material adverse effect upon the Collateral, or (e) has a material adverse effect upon the  Administrative Agent’s Liens (on behalf of itself and other Secured Parties) on the Collateral or the priority  of such Liens.  “Material Agreement” means any agreement to which any Loan Party or any Restricted Subsidiary  is a party that, if terminated or if breached by any Loan Party or any Restricted Subsidiary, would be  reasonably expected to have a Material Adverse Effect. “Material Intellectual Property” means trademarks, trademark applications, service marks, trade  dress, trade names, business names, designs, logos, slogans (and all translations, adaptations, derivations  and combinations of the foregoing) indicia and other source and/or business identifiers, and all registrations  or applications for registrations which have heretofore been or may hereafter be issued thereon throughout  the world; copyrights and copyright applications (including copyrights for computer programs) and all  tangible and intangible property embodying the copyrights, unpatented inventions (whether or not  patentable); patents and patent applications; industrial design applications and registered industrial designs;  

 

33 customer lists; license agreements related to any of the foregoing and income therefrom; in each case, (i)  which are reasonably necessary in connection with the exercise of any rights or remedies with respect to  the ABL Priority Collateral or (ii) the Disposition of which (including, without limitation, by means of a  Restricted Payment or an Investment thereof) would otherwise materially adversely affect the Net Orderly  Liquidation Value of the ABL Priority Collateral. “Maturity Date” means the earliest to occur of (i) the date that is five (5) years after the Closing  Date, (ii) the date that is 91 days prior to the stated maturity date of any Other Secured Debt Loans (if any)  or any Refinancing Indebtedness which refinances any Other Secured Debt Loans and (iii) the date on  which the Commitments are reduced to zero or otherwise terminated pursuant to the terms hereof.  “Maximum Credit Amount” means the lesser of (i) the Aggregate Commitments and (ii) the Borrowing Base.  “Monthly BBC Reporting Period” means any period (i) commencing (a) at any time when  Availability shall be less than 80% of the Maximum Credit Amount for a period of five (5) consecutive  Business Days or (b) the day on which a Weekly BBC reporting Period ends, and (ii) ending on the first  day of the fiscal quarter beginning immediately after Availability shall have been greater than or equal  to 80% of the Maximum Credit Amount for a period of thirty (30) consecutive Business Days.  “Maximum Rate” has the meaning assigned to such term in Section 9.18.    “Moody’s” means Moody’s Investors Service, Inc. “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.  “Net Orderly Liquidation Value” means, with respect to Inventory of any Person, the monthly  orderly liquidation value thereof as determined in a manner reasonably acceptable to the Administrative  Agent (after consultation with the Company) by an appraiser reasonably acceptable to the Administrative  Agent, net of all costs of liquidation thereof. “Net Proceeds” means, with respect to any Casualty, (a) the cash proceeds received in respect of  such event including (i) any cash received in respect of any non-cash proceeds (including any cash  payments received by way of deferred payment of principal pursuant to a note or installment receivable or  purchase price adjustment receivable or otherwise, but excluding any interest payments), but only as and  when received and (ii)  insurance proceeds, minus (b) the sum of (i) all reasonable fees and out-of-pocket  expenses paid to third parties (other than Affiliates) in connection with such event, (ii) the amount of all  payments required to be made as a result of such event to repay Indebtedness (other than Loans) that is  secured by a Lien in such asset that is not Collateral or is senior to the Liens securing the Secured  Obligations or, other than with respect to assets that are Collateral in which the Administrative Agent has  a first priority Lien, otherwise subject to mandatory prepayment as a result of such event and (iii) the  amount of all taxes paid (or reasonably estimated to be payable) and the amount of any reserves established  to fund contingent liabilities reasonably estimated to be payable, in each case during the year that such  event occurred or the next succeeding year and that are directly attributable to such event (as determined  reasonably and in good faith by a Financial Officer of the Borrower Representative).  “Non-Consenting Lender” has the meaning assigned to such term in Section 9.02(d).    “Obligated Party” has the meaning set forth in Section 10.02.  

 

34 “Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans to the  Borrowers, all LC Exposure, all accrued and unpaid fees and all expenses, reimbursements (including  pursuant to Section 2.06(a)), indemnities and other obligations of the Loan Parties to the Lenders or to any  Lender, the Administrative Agent, any Issuing Bank or any indemnified party arising under the Loan  Documents (including guarantee obligations and interest, costs, fees and other amounts accruing during the  pendency of any proceeding under any Insolvency Laws, regardless of whether allowed or allowable in  such proceeding).  “OFAC” means the Office of Foreign Assets Control of the United States Department of the  Treasury. “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a  present or former connection between such Recipient and the jurisdiction imposing such Taxes (other than  a connection arising from such Recipient having executed, delivered, become a party to, performed its  obligations under, received payments under, received or perfected a security interest under, engaged in any  other transaction pursuant to, or enforced, any Loan Document, or sold or assigned an interest in any Loan,  Letter of Credit or any Loan Document).  “Other Secured Debt Agent” means the administrative agent or collateral agent under any Other  Secured Debt Loan Agreement, and any successor or permitted assign thereof (or any Person acting in an  analogous role). “Other Secured Debt Documents” has the meaning given to such term in Section 6.01(b).  “Other Secured Debt Loan Agreement” has the meaning given to such term in Section 6.01(b).  “Other Secured Debt Loans” means the “Loans” (or any analogous term) as defined in any Other  Secured Debt Loan Agreement. “Other Secured Debt Obligations” means the “Obligations” (or any analogous term) as defined in  any Other Secured Debt Loan Agreement. “Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing  or similar Taxes that arise from any payment made under, from the execution, delivery, performance,  enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with  respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with  respect to an assignment (other than an assignment made pursuant to Section 2.19). “Overadvance” has the meaning assigned to such term in Section 2.05(b).  “Overnight Bank Funding Rate” means for any day, (a) with respect to any amount denominated  in U.S. Dollars, the rate comprising both overnight federal funds and overnight eurocurrency borrowings  by U.S.-managed banking offices of depository institutions, as such composite rate shall be determined by  the Federal Reserve Bank of New York, as set forth on its public website from time to time, and as published  on the next succeeding Business Day as the overnight bank funding rate by the Federal Reserve Bank of  New York (or by such other recognized electronic source (such as Bloomberg) selected by the  Administrative Agent for the purpose of displaying such rate); provided, that if such day is not a Business  Day, the Overnight Bank Funding Rate for such day shall be such rate on the immediately preceding  Business Day; provided, further, that if such rate shall at any time, for any reason, no longer exist, a  comparable replacement rate determined by the Administrative Agent at such time (which determination  shall be conclusive absent manifest error); and (b) with respect to any amount denominated in an Alternative  

 

35 Currency, an overnight rate determined by the Administrative Agent or the Issuing Bank, as the case may  be, in accordance with banking industry rules on interbank compensation (which determination shall be  conclusive absent manifest error), provided, that if the Overnight Bank Funding Rate as determined in  accordance with either clause (a) or (b) above would be less than zero, then such rate shall be deemed to be  zero,. The rate of interest charged shall be adjusted as of each Business Day based on changes in the  Overnight Bank Funding Rate without notice to the Borrowers.  “PACA” means the Perishable Agriculture Commodities Act, 1930 and all regulations promulgated  thereunder, as amended from time to time. “Parent” means, with respect to any Lender, any Person as to which such Lender is, directly or  indirectly, a subsidiary.  “Participant” has the meaning assigned to such term in Section 9.04(c).   “Participant Register” has the meaning assigned to such term in Section 9.04(c).  “Participation Advance” shall have the meaning set forth in Section 2.06(d) hereof. “Payment Conditions” means, at the time of determination with respect to any specified transaction  or payment, that:  (a) no Default or Event of Default then exists or would arise as a result of  entering into such transaction or the making such payment;  (b) immediately after giving effect to such transaction or payment, one of the  following tests shall be satisfied: (i) (1) Availability for the thirty (30) consecutive day period  immediately preceding such specified transaction or payment shall not have been less than the greater of  $112,500,000 and 15% of the Maximum Credit Amount, and (2) Availability on the date of such specified  transaction or payment shall not be less than the greater of such amounts; or (ii) (1) no Revolving Loans shall have been outstanding for the 30  consecutive day period immediately preceding such specified transaction or payment, and (2) such  transaction or payment is to be funded solely with cash on hand; and  (c) the Administrative Agent shall have received a certificate from a  Responsible Officer of the Borrower Representative, including an updated Borrowing Base Certificate (as  applicable), certifying as to compliance with the preceding clauses and demonstrating (in reasonable detail)  the calculations required thereby; provided that no such certificate shall be required for any transaction  made in reliance on the Payment Conditions with a value of less than $11,250,000.  “Payment Office” means initially PNC Firstside Center, 500 First Ave., 4th Floor, Pittsburgh, PA  15219, REF: BIG LOTS STORES LLC; thereafter, such other office of Administrative Agent, if any, which  it may designate by written notice to the Borrower Representative and to each Lender to be the Payment  Office. “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and  any successor entity performing similar functions. 

 

36 “Permitted Acquisition” means any Acquisition by the Company or any Restricted Subsidiary in a  transaction that satisfies each of the following requirements: (a) if a Loan Party is acquiring the ownership interests in a Domestic Subsidiary (other than  an Excluded Subsidiary), such Person shall execute a Joinder Agreement and such other documents required  by Section 5.14 and join this Agreement as a Borrower or Guarantor pursuant to Section 5.14;  (b) the board of directors or other equivalent governing body of such Person shall have  approved such Acquisition and the Loan Parties also shall have delivered to the Administrative Agent and  the Lenders written evidence of the approval of the board of directors (or equivalent body) of such Person  for such Acquisition; (c) each applicable Governmental Authority shall have approved such Acquisition to the  extent necessary to consummate such Acquisition and the Loan Parties shall have delivered to the  Administrative Agent and the Lenders written evidence of the approval of such Governmental Authority or  such Acquisition;  (d) the business, division, product line or line of business acquired, or the business conducted  by the Person whose ownership interests are being acquired, as applicable, shall be engaged in a business  otherwise permitted to be engaged in by a Loan Party under this Agreement;  (e) as of the date of the execution of the definitive acquisition agreement, no Default exists,  will exist, or would result therefrom; (f) excluding Acquisitions with respect to which the Consideration less than $56,250,000, the  Loan Parties shall deliver to the Administrative Agent at least five (5) days before (or such shorter  timeframe as may be agreed to by the Administrative Agent in its sole discretion) such Acquisition (i) notice  of such Acquisition and (ii) copies of (x) any agreements entered into or proposed to be entered into by  such Loan Parties in connection with such Acquisition, (y) such other information about such Person or its  assets as the Administrative Agent or any Lender may reasonably require; (g) if such Acquisition is an acquisition of Equity Interests, such Acquisition will not result in  any violation of Regulation U; and  (h) either (i) the Loan Parties shall have satisfied the Payment Conditions before and  immediately after giving effect to such Acquisition or (ii) the aggregate Consideration for all such Permitted  Acquisitions in reliance on this sub-clause (ii) does not exceed $45,000,000 after the Closing Date.  “Permitted Discretion” means a determination made by the Administrative Agent in the exercise  of its reasonable (from the perspective of a secured asset-based lender) credit judgment, exercised in good  faith in accordance with customary business practices in the retail industry. “Permitted Investments” means: (1) any Investment in the Company or any Restricted Subsidiary; provided that the  aggregate amount of Investments by Loan Parties in Restricted Subsidiaries that are not Loan Parties in  reliance on this Clause (1) shall not exceed (when combined with Investments made by Loan Parties in  Subsidiaries that are not (or do not become in connection with such transaction) Loan Parties in reliance on  Clauses (3), (21) and (22) of the definition of Permitted Investments) $30,000,000; provided that, upon  written notice from a Responsible Officer of the Borrower Representative to the Administrative Agent, the  dollar amounts set forth in the foregoing proviso shall be reset at $30,000,000 on any such date as the  

 

37 Payment Conditions become satisfied (it being understood that such written notice shall include an updated  Borrowing Base Certificate (as applicable) and calculations (in reasonable detail) demonstrating  compliance with the Payment Conditions); provided, further that, with respect to any such Investment (in  a single transaction or a series of related transactions) consisting of assets constituting ABL Priority  Collateral of the type eligible to be included in the Borrowing Base that decreases the Borrowing Base by  $5,625,000 or more (after giving effect thereto), the Borrower Representative shall have first delivered an  updated Borrowing Base Certificate to the Administrative Agent giving pro forma effect to such Investment and demonstrating pro forma compliance with Section 6.12;  (2) any Investment in (A) cash, (B) Cash Equivalents, (C) short term tax-exempt  securities rated not lower than BBB by S&P, Baa2 by Moody’s or an equivalent rating by Fitch with  provisions for liquidity or maturity accommodations of two (2) years or less; (D) investments in other  readily marketable securities (excluding any equity or equity-linked securities other than auction rate  preferred securities) which are rated P1 or P2 by Moody’s, A1 or A2 by S&P or F1 or F2 by Fitch (in lieu  of a short term rating, a long term rating of not less than A2 by Moody’s, A by S&P or an equivalent rating  by Fitch would qualify under this sub-clause (vii), provided that no such security position shall exceed five  percent (5%) of the invested cash portfolio of the Loan Parties); and (E) in the case of investments by any  Foreign Subsidiary, obligations of a credit quality and maturity comparable to that of the items referred to  in clauses (B) through (D) above that are available in local markets; (3) any Permitted Acquisition; provided that the aggregate amount of Investments by  Loan Parties in Restricted Subsidiaries that are not Loan Parties (or do not merge into a Loan Party in  connection with such transaction) in reliance on this Clause (3) shall not exceed (when combined with  Investments made by Loan Parties in Subsidiaries that are not (or do not become in connection with such  transaction) Loan Parties in reliance on Clauses (1), (21) and (22) of the definition of Permitted  Investments) $30,000,000; provided, further that, upon written notice from a Responsible Officer of the  Borrower Representative to the Administrative Agent, the dollar amount set forth in the foregoing proviso  shall be reset at $30,000,000 on any such date as the Payment Conditions become satisfied (it being  understood that such written notice shall include an updated Borrowing Base Certificate (as applicable) and  calculations (in reasonable detail) demonstrating compliance with the Payment Conditions); provided,  further that, with respect to any such Investment (in a single transaction or a series of related transactions)  consisting of assets constituting ABL Priority Collateral of the type eligible to be included in the Borrowing  Base that decreases the Borrowing Base by $5,625,000 or more (after giving effect thereto), the Borrower  Representative shall have first delivered an updated Borrowing Base Certificate to the Administrative Agent  giving pro forma effect to such Investment and demonstrating pro forma compliance with Section 6.12;  (4) any Investment in securities or other assets not constituting cash or Cash  Equivalents and received in connection with any disposition of assets permitted by Section 6.04;  (5) any Investment existing on the date hereof or an Investment consisting of any  extension, modification or renewal of any Investment existing on the date hereof; provided that the amount  of any such Investment may be increased (x) as required by the terms of such Investment as in existence on  the date hereof to the extent set forth Schedule 6.02 or (y) as otherwise permitted under this Agreement; (6) loans and advances to officers, directors, employees or consultants of the Company  or any of its Subsidiaries (i) in the ordinary course of business in an aggregate outstanding amount (valued  at the time of the making thereof, and without giving effect to any write-downs or write-offs thereof) not  to exceed $11,250,000 at the time of Incurrence, (ii) in respect of payroll payments and expenses in the  ordinary course of business and (iii) in connection with such Person’s purchase of Equity Interests of the  Company or any direct or indirect parent of the Company solely to the extent that the amount of such loans  and advances shall be contributed to the Company in cash as common equity;  

 

38 (7) any Investment acquired by the Company or any Restricted Subsidiary (a) in  exchange for any other Investment or accounts receivable held by the Company or such Restricted  Subsidiary in connection with or as a result of a bankruptcy, workout, reorganization or recapitalization of  the issuer of such other Investment or accounts receivable, or (b) as a result of a foreclosure by the Company  or any Restricted Subsidiary with respect to any secured Investment or other transfer of title with respect  to any secured Investment in default, or as a result of a Bail-In Action with respect to any contractual  counterparty of the Company or any Restricted Subsidiary;  (8) any Investment acquired by the Company or any Subsidiary in the settlement of  overdue Indebtedness and accounts payable owed to a Loan Party or a Subsidiary in the ordinary course of  business and for amounts which, individually and in the aggregate, are not material to the Loan Parties or  their Subsidiaries; (9) Swap Agreement Obligations permitted under Section 6.01(j);  (10) additional Investments by the Company or any Restricted Subsidiary having an  aggregate Fair Market Value (as determined in good faith by the Company), taken together with all other  Investments made pursuant to this clause (10) that are at that time outstanding, not to exceed $30,000,000;  provided, however, that if any Investment pursuant to this clause (10) is made in any Person that is not a  Loan Party at the date of the making of such Investment and such Person becomes a Loan Party after such  date, such Investment shall thereafter be deemed to have been made pursuant to clause (1) above and shall  cease to have been made pursuant to this clause (10) for so long as such Person continues to be a Loan  Party; (11) [Reserved]; (12) Investments the payment for which consists of Equity Interests of the Company  (other than Disqualified Stock);  (13) any transaction to the extent it constitutes an Investment that is permitted by and  made in accordance with the provisions of Section 6.05 (except transactions described in clauses (a), (b),  (c), (e), (f), (g), (i) or (m) of Section 6.05); (14) guarantees issued in accordance with Section 6.01, including, without limitation,  any guarantee or other obligation issued or incurred under this Agreement in connection with any letter of  credit issued for the account of the Company or any of its Restricted Subsidiaries (including with respect  to the issuance of, or payments in respect of drawings under, such letters of credit); (15) Investments consisting of purchases and acquisitions of inventory, supplies,  materials, services or equipment or purchases of contract rights or licenses or leases of in-bound intellectual  property (including, without limitation, Investments made in connection with a Similar Business), in each  case, in the ordinary course of business;  (16) [Reserved]; (17) [Reserved]; (18) Investments of a Restricted Subsidiary acquired after the date hereof or of an entity  merged into, amalgamated with, or consolidated with a Loan Party or a Restricted Subsidiary in a  transaction that is not prohibited by Section 6.08 after the date hereof to the extent that such Investments  

 

39 were not made in contemplation of such acquisition, merger, amalgamation or consolidation and were in  existence on the date of such acquisition, merger, amalgamation or consolidation;   (19) Investments in the ordinary course of business consisting of UCC Article 3  endorsements for collection or deposit and UCC Article 4 customary trade arrangements with customers; (20) advances in the form of a prepayment of expenses in the ordinary course of  business, so long as such expenses are being paid in accordance with customary trade terms of the Company  or the Restricted Subsidiaries; (21) Investments in Joint Ventures or Unrestricted Subsidiaries having an aggregate  Fair Market Value (as determined in good faith by the Company), taken together with all other Investments  made pursuant to this clause (21) that are at that time outstanding, not to exceed (x) $30,000,000, plus (y)  an amount equal to any returns (including dividends, interest, distributions, returns of principal, profits on  sale, repayments, income and similar amounts) actually received in respect of any such Investment (with  the Fair Market Value of each Investment being measured at the time made and without giving effect to  subsequent changes in value); provided that the aggregate amount of Investments made by Loan Parties in  reliance on this Clause (21) shall not exceed (when combined with Investments made by Loan Parties in  Subsidiaries that are not (or do not become in connection with such transaction) Loan Parties in reliance on  Clauses (1), (3) and (22) of the definition of Permitted Investments) $30,000,000; provided, further that,  upon written notice from a Responsible Officer of the Borrower Representative to the Administrative  Agent, the dollar amount set forth in the foregoing proviso shall be reset at $30,000,000 on any such date  as the Payment Conditions become satisfied (it being understood that such written notice shall include an  updated Borrowing Base Certificate (as applicable) and calculations (in reasonable detail) demonstrating  compliance with the Payment Conditions); provided, however, that if any Investment pursuant to this clause  (21) is made in any Person that is not a Loan Party at the date of the making of such Investment and such  Person becomes a Loan Party after such date, such Investment shall thereafter be deemed to have been  made pursuant to clause (1) above and shall cease to have been made pursuant to this clause (21) for so  long as such Person continues to be a Loan Party; provided, further that, with respect to any such Investment  (in a single transaction or a series of related transactions) consisting of assets constituting ABL Priority  Collateral of the type eligible to be included in the Borrowing Base that decreases the Borrowing Base by  $5,625,000 or more (after giving effect thereto), the Borrower Representative shall have first delivered an  updated Borrowing Base Certificate to the Administrative Agent giving pro forma effect to such Investment and demonstrating pro forma compliance with Section 6.12;  (22) any Investment in any Subsidiary of the Company or any Joint Venture in  connection with intercompany cash management arrangements or related activities arising in the ordinary  course of business; provided that the aggregate amount of Investments made by Loan Parties in Subsidiaries  or joint ventures that are not Loan Parties in reliance on this Clause (22) shall not exceed (when combined  with Investments made by Loan Parties in Subsidiaries that are not (or do not become in connection with  such transaction) Loan Parties in reliance on Clauses (1), (3) and (21) of the definition of Permitted  Investment) $30,000,000; provided, further that, upon written notice from a Responsible Officer of the  Borrower Representative to the Administrative Agent, the dollar amount set forth in the foregoing proviso  shall be reset at $30,000,000 on any such date as the Payment Conditions become satisfied (it being  understood that such written notice shall include an updated Borrowing Base Certificate (as applicable) and  calculations (in reasonable detail) demonstrating compliance with the Payment Conditions); provided,  however, that if any Investment pursuant to this clause (22) is made in any Person that is not a Loan Party  at the date of the making of such Investment and such Person becomes a Loan Party after such date, such  Investment shall thereafter be deemed to have been made pursuant to clause (1) above and shall cease to  have been made pursuant to this clause (22) for so long as such Person continues to be a Loan Party;  

 

40 (23) trade credit extended on usual and customary terms in the ordinary course of  business; (24) Guarantees of any Loan Party or any Restricted Subsidiary of leases or of other  obligations that do not constitute Indebtedness, in each case entered into in the ordinary course of business;  and  (25) subject to Pro Forma Compliance with the Payment Conditions, any other  Investments. “Permitted Liens” means, with respect to any Person: (1) pledges, bonds or deposits and other Liens granted by such Person under  workmen’s compensation laws, unemployment or employment insurance laws, old age pensions or similar  legislation or programs, or good faith deposits in connection with bids, tenders, contracts (other than for  the payment of Indebtedness (it being understood that Indebtedness permitted pursuant to Section 6.01(cc)  and other obligations in respect of cash management services shall not constitute Indebtedness for purposes  of this clause (1))) or leases to which such Person is a party, or deposits to secure public or statutory  obligations of such Person or deposits of cash or U.S. government bonds to secure surety or appeal bonds,  performance and return of money bonds, or deposits as security for contested Taxes or import duties or  payments of rent, in each case Incurred in the ordinary course of business;  (2) (a) Liens imposed by law and landlords’, carriers’, warehousemen’s, mechanics’,  materialmen’s, repairmen’s, construction, or other like Liens, (b) Liens of customs brokers, freight  forwarders and common carriers, (c) [reserved], and (d) statutory and common law Liens of landlords, in  each case securing obligations that are not overdue by more than forty-five (45) days or that are being  contested in good faith by appropriate proceedings or other Liens arising out of judgments or awards against  such Person with respect to which such Person shall then be proceeding with an appeal or other proceedings  for review; (3) Liens for Taxes not yet overdue by more than forty-five (45) days (or, with respect  to real estate Taxes, any longer period before delinquency), or that are being contested in good faith by  appropriate proceedings, if adequate reserves with respect thereto have been provided in accordance with  GAAP; (4) deposits or escrows to secure performance and surety bonds or bid bonds or with  respect to other regulatory requirements or letters of credit, bankers’ acceptances or similar obligations  (other than Indebtedness for borrowed money (it being understood that Indebtedness permitted pursuant to  Section 6.01(cc) and other obligations in respect of cash management services shall not constitute  Indebtedness for purposes of this clause (4))) issued pursuant to the request of and for the account of any  Person in the ordinary course of business; (5) any state of facts as shown by any professional survey or physical inspection of  any owned or leased real property, minor encumbrances, minor encroachments, trackage rights, special and  supplemental assessments, easements or reservations of, or rights of others for licenses, rights-of-way,  sewers, electric lines, telegraph and telephone lines, communication towers, other utilities and other similar  purposes, servicing agreements, development agreements, site plan agreements, land use and air rights  agreements, reservations, restrictions and leases for mineral and water rights, all title exceptions, exclusions  and encumbrances in existence with respect to all owned or leased real property as of the date of this Agreement at the time of acquisition of any interest in real property acquired after the date of this Agreement  and in existence at the time of such acquisition, and other similar liens, charges and encumbrances incurred  

 

41 in the ordinary course of business, or title defects or irregularities that are of a minor nature or zoning or  other restrictions as to the use of real properties or Liens incidental to the conduct of the business of such  Person or to the ownership of its properties which were not Incurred in connection with Indebtedness and  in each case which do not in the aggregate with respect to any particular real property materially adversely  affect the value of said properties and materially impair their use in the operation of the business of such  Person as of the date of this Agreement or the date of any future acquisition as the case may be; (6) (A) Liens on assets of a Subsidiary that is not a Loan Party securing Indebtedness  of a Subsidiary that is not a Loan Party permitted to be Incurred pursuant to Section 6.01;  (B) [Reserved]; (C) Liens securing obligations in respect of Indebtedness permitted to be Incurred  pursuant to clause (d) or (m) (to the extent such guarantees are issued in respect of any Indebtedness) of  Section 6.01; provided that, in the case of clause (m) any Lien on the Collateral in reliance on this  clause (6)(C) shall be junior to the Liens on the Collateral securing the Obligations pursuant to any ABL  Intercreditor Agreement and/or a junior lien intercreditor agreement or collateral trust agreement reasonably  satisfactory to the Administrative Agent and the Required Lenders reflecting the junior-lien status of the  Liens securing such Indebtedness as it relates to Collateral; (D) [Reserved];  (E) Liens created pursuant to the Collateral Documents or otherwise securing the  Obligations;  (7) any Lien existing on the date of this Agreement and described on Schedule 6.07, provided that the principal amount secured thereby is not hereafter increased, and no additional assets  become subject to such Lien (except pursuant to the terms of the agreements governing such Lien as in  effect on the date of this Agreement); (8) Liens on assets, property or shares of stock of a Person at the time such Person  becomes a Subsidiary; provided, however, that such Liens are not created or Incurred in connection with,  or in contemplation of, such other Person becoming such a Subsidiary; provided, further, however, that  such Liens may not extend to any other property owned by the Company or any Restricted Subsidiary (other  than pursuant to after-acquired property clauses in effect with respect to such Lien at the time of acquisition  on property of the type that would have been subject to such Lien notwithstanding the occurrence of such  acquisition);  (9) Liens on assets or property at the time the Company or a Restricted Subsidiary  acquired the assets or property, including any acquisition by means of a merger, amalgamation or  consolidation with or into the Company or any Restricted Subsidiary; provided, however, that such Liens  are not created or Incurred in connection with, or in contemplation of, such acquisition; provided, further,  however, that the Liens may not extend to any other property owned by the Company or any Restricted  Subsidiary (other than pursuant to after-acquired property clauses in effect with respect to such Lien at the  time of acquisition on property of the type that would have been subject to such Lien notwithstanding the  occurrence of such acquisition); (10) [Reserved]; (11) Liens on not more than $22,500,000 of deposits securing Swap Agreement  Obligations which were not incurred in violation of this Agreement; 

 

42 (12) [Reserved]; (13) leases, subleases, licenses and sublicenses of real property which do not materially  interfere with the ordinary conduct of the business of the Company or any of the Subsidiaries, and all Liens  created or purported to be created by any lessee, sublesse, licensee or sublicensee of any Loan Parties in  violation of any applicable lease, sublease, licensee or sublicensee, without the express permission of such  Loan Parties; (14) Liens arising from UCC financing statement filings regarding operating leases or  other obligations not constituting Indebtedness (it being understood that Indebtedness permitted pursuant  to Section 6.01(cc) and other obligations in respect of cash management services shall not constitute  Indebtedness for purposes of this clause (14)); (15) Liens in favor of any Loan Party; (16) [Reserved]; (17) pledges and deposits made in the ordinary course of business to secure liability to  insurance carriers;  (18) Liens on the Equity Interests of Unrestricted Subsidiaries; (19) (a) leases or subleases, and licenses or sublicenses (including with respect to  intellectual property) granted to others in the ordinary course of business, in all such cases, not interfering  in any material respect with the business of the Company and the Subsidiaries, taken as a whole and (b) and  Liens on real property which is not owned but is leased or subleased by the Company or any Restricted  Subsidiary; (20) Liens to secure any refinancing, future advance, increase, cross-collateralization,  refunding, extension, renewal or replacement (or successive refinancings, refundings, extensions, renewals or replacements) as a whole, or in part, of any Indebtedness secured by any Lien referred to in clauses 6(C),  (7), (8), (9), (11), and (35) of this definition; provided, however, that (x) such new Lien shall be limited to  all or part of the same property (including any after acquired property to the extent it would have been  subject to the original Lien) that secured the original Lien (plus improvements on and accessions to such  property, proceeds and products thereof, customary security deposits and any other assets pursuant to the  after-acquired property clauses to the extent such assets secured (or would have secured) the Indebtedness  being refinanced, refunded, extended, renewed or replaced), and (y) the Indebtedness secured by such Lien  at such time is not increased to any amount greater than the sum of (A) the outstanding principal amount  (or accreted value, if applicable) described under clauses 6(C), (7), (8), (9), (11) and (35) of this definition  at the time the original Lien became a Permitted Lien under this Agreement and, in the case of any Lien on  Collateral, shall not have a greater priority level with respect to Liens securing the Obligations that the  Liens securing the Indebtedness so refinanced, refunded, extended, renewed or replaced, (B) unpaid  accrued interest and premiums (including tender premiums), and (C) an amount necessary to pay any  underwriting discounts, defeasance costs, commissions, fees and expenses related to such refinancing,  refunding, extension, renewal or replacement; provided, further, however, that in the case of Liens to secure  any refinancing, refunding, extension or renewal of Indebtedness secured by a Lien referred to in clause (8)  or (9), such new Lien shall have priority equal to or more junior than the Lien securing such refinanced,  refunded, extended or renewed Indebtedness; (21) [Reserved]; 

 

43 (22) judgment and attachment Liens not giving rise to an Event of Default and notices  of lis pendens and associated rights related to litigation being contested in good faith by appropriate  proceedings and for which adequate reserves have been made; (23) Liens arising out of conditional sale, title retention, consignment or similar  arrangements for the sale or purchase of goods entered into in the ordinary course of business or in  connection with a Similar Business;  (24) Liens incurred to secure cash management services or to implement cash pooling  arrangements in the ordinary course of business;  (25) Liens in favor of credit card issuers or credit card processors pursuant to  agreements therewith; (26) any encumbrance or restriction (including put and call arrangements) with respect  to Equity Interests of any Joint Venture or similar arrangement securing obligations of such Joint Venture  or pursuant to any joint venture agreement or similar agreement; (27) any amounts held by a trustee in the funds and accounts under any indenture issued  in escrow pursuant to customary escrow arrangements pending the release thereof, or under any indenture  pursuant to customary discharge, redemption or defeasance provisions;  (28) Liens (i) arising by virtue of any statutory or common law provisions relating to  banker’s Liens, rights of set-off or similar rights and remedies as to deposit accounts or other funds  maintained with a depository or financial institution, (ii) attaching to commodity trading accounts or other  commodity brokerage accounts incurred in the ordinary course of business or (iii) encumbering reasonable  customary initial deposits and margin deposits and similar Liens attaching to brokerage accounts incurred  in the ordinary course of business and not for speculative purposes; (29) Liens that are contractual rights of set-off relating to pooled deposits, sweep  accounts, reserve accounts or similar accounts of the Company or any Restricted Subsidiary to permit  satisfaction of overdraft or similar obligations incurred in the ordinary course of business of the Company  or any Restricted Subsidiary, including with respect to credit card charge-backs and similar obligations;  (30) Liens disclosed by the title reports, commitments or title insurance policies  delivered pursuant to (a) an Other Secured Debt Loan Agreement (if any), and, in each case, any  replacement, modification, date down, extension or renewal of any such Lien; provided that such  replacement, modification, date down, extension or renewal Lien shall not cover any property other than  the property that was subject to such Lien prior to such replacement, modification, date down, extension or  renewal; provided, further, that the Indebtedness and other obligations secured by such replacement,  modification, date down, extension or renewal Lien are permitted as security for Other Secured Debt  Obligations under this Agreement; and (b) the acquisition of any interest of any Loan Party in real property  acquired after the date of this Agreement and in existence at the time of such acquisition (and not created  or suffered expressly in anticipation of such acquisition);  (31) Liens that are contractual rights of set-off relating to purchase orders and other  agreements entered into with customers, suppliers or service providers of the Company or any Restricted  Subsidiary in the ordinary course of business;  (32) in the case of real property that constitutes a leasehold or subleasehold interest,  (x) any Lien to which the fee simple interest (or any superior leasehold interest) is or may become subject  

 

44 and any subordination of such leasehold or subleasehold interest to any such Lien in accordance with the  terms and provisions of the applicable leasehold or subleasehold documents, and (y) any right of first  refusal, right of first negotiation or right of first offer which is granted to the lessor or sublessor; (33) agreements to subordinate any interest of the Company or any Restricted  Subsidiary in any accounts receivable arising from inventory consigned by the Company or any such  Restricted Subsidiary pursuant to an agreement entered into in the ordinary course of business;  (34) Liens securing insurance premium financing arrangements; provided that such  Liens are limited to the applicable unearned insurance premiums; (35) Liens on the Collateral securing any Other Secured Debt Obligations (if any) and  the related Guarantees, which Liens shall have the priority set forth in any ABL Intercreditor Agreement; (36) Liens on securities that are the subject of repurchase agreements constituting Cash  Equivalents under clause (e) of the definition thereof;  (37) Liens upon real or personal property, including any attachment thereof, prior to  adjudication of a dispute on the merits; (38) [Reserved];  (39) Liens in favor of landlords on leasehold improvements financed by allowances or  advances provided by such landlords pursuant to lease arrangements; (40) Liens on proceeds in an aggregate amount not to exceed $11,250,000 at any one  time outstanding granted in connection with securities lending transactions or reverse repurchase  agreements involving United States Treasury bonds;   (41) Liens securing other obligations of the Loan Parties and their Restricted  Subsidiaries in an aggregate amount not to exceed $45,000,000 at any one time outstanding;  (42) [Reserved]; and  (43) Liens created in connection with any Sale/Leaseback Transaction permitted by  Section 6.04.  “Person” means any natural person, corporation, limited liability company, unlimited liability  company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.  “Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the  provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of  which any Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069  of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.  “Plan Asset Regulations” means 29 CFR § 2510.3-101 et seq., as modified by Section 3(42) of  ERISA, as amended from time to time. “PNC” means PNC Bank, National Association, a national banking association, and shall include  its branches, as applicable, and its successors. 

 

45 “Preferred Stock” means any Equity Interest with preferential right of payment of dividends or  upon liquidation, dissolution, or winding up.  “Prime Rate” means the base commercial lending rate of PNC (or any successor Administrative  Agent as provided herein) as publicly announced to be in effect from time to time. Each change in the Prime  Rate shall be adjusted automatically, without notice, and effective from and including the date such change  is publicly announced as being effective. This rate of interest is determined from time to time by PNC or  the successor Administrative Agent, as applicable, as a means of pricing some loans to its customers and is  neither tied to any external rate of interest or index nor does it necessarily reflect the lowest rate of interest  actually charged by PNC or the successor Administrative Agent, as applicable, to any particular class or  category of customers of PNC or the successor Administrative Agent, as applicable. “Pro Forma Compliance” means, with respect to any determination for any period and any  transaction, that such determination shall be made by giving pro forma effect to each such transaction, as  if each such transaction had been consummated on the first day of such period, based on, in the case of  determinations made in reliance on pro-forma financial statement calculations only, historical results  accounted for in accordance with GAAP and, to the extent applicable, reasonable assumptions that are  specified in detail in the relevant compliance certificate, financial statement or other document provided to  the Administrative Agent or any Lender in connection herewith (which shall be prepared by the Company  in good faith (subject to the approval of the Administrative Agent, not to be unreasonably withheld)) and  for such purposes historical financial statements shall be recalculated as if such transaction had been  consummated at the beginning of the applicable period, and any Indebtedness or other liabilities to be  incurred, assumed or repaid had been incurred, assumed or repaid at the beginning of such period (and  assuming that such Indebtedness to be incurred bears interest during any portion of the applicable  measurement period prior to the relevant acquisition at the weighted average of the interest rates applicable  to such Indebtedness incurred during such period) and, to the extent pro forma financial statements are  required to be prepared by the Company under Regulation S-X of the Securities Act of 1933 (“Reg. S-X”)  reflecting such transaction for any period, all pro forma calculations made hereunder with respect to such  transaction and for such period shall be in conformity with Reg. S-X at all times after such pro-forma  financial statements reflecting such transactions are required to be filed by the Company under Reg. S-X. “Progressive Leasing” means Prog Finance, LLC (or any successor thereto or assignee thereof).  “Progressive Leasing Documents” means that certain Amended and Restated Merchant Agreement  dated as of March 27, 2014, between Big Lots Stores, LLC and Progressive Leasing and any other  documents delivered in connection therewith, as the same may be amended, modified supplemented or  restated from time to time. “Projections” has the meaning assigned to such term in Section 3.06(b).   “Protective Advance” has the meaning assigned to such term in Section 2.04.  “Public-Sider” means any representative of a Lender that does not want to receive material non- public information within the meaning of federal and state securities laws.  “QFC” has the meaning set forth in Section 9.29.  “QFC Credit Support” has the meaning set forth in Section 9.29.  “Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Loan Party that has  assets exceeding $10,000,000 at the time the relevant Loan Guaranty or grant of the relevant security  

 

46 interest becomes or would become effective with respect to such Swap Obligation or such other person as  constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations  promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such  time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.  “Qualified Counterparties” means each Administrative Agent, each Lender and each Affiliate of a  Lender.  “Real Estate” means all leases and all land, together with the buildings, structures, parking areas,  and other improvements thereon, now or hereafter owned by any Loan Party or any Restricted Subsidiary,  as the context may require, including all easements, rights-of-way, and similar rights relating thereto and  all leases, tenancies, and occupancies thereof. “Recipient” means, as applicable, (a) the Administrative Agent, (b) any Lender and (c) any Issuing  Bank, or any combination thereof (as the context requires).  “Register” has the meaning assigned to such term in Section 9.04.  “Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the  respective directors, officers, partners, members, trustees, employees, agents, administrators, managers,  representatives and advisors of such Person and such Person’s Affiliates. “Release” means any releasing, spilling, leaking, pumping, pouring, emitting, emptying,  discharging, injecting, escaping, leaching, migrating, disposing or dumping of any Hazardous Material into  the Environment.  “Relevant Entity” means (a) each Loan Party and each Subsidiary of any Loan Party, and (b) each  Person that, directly or indirectly, is in control of a Person described in clause (a) above.  For purposes of  this definition, control of a Person means the direct or indirect (x) ownership of, or power to vote, twenty- five percent (25%) or more of the issued and outstanding equity interests having ordinary voting power for  the election of directors of such Person or other Persons performing similar functions for such Person, or  (y) power to direct or cause the direction of the management and policies of such Person whether by  ownership of equity interests, contract or otherwise. “Relevant Governmental Body” means (a) with respect to a Benchmark Replacement in respect of  Loans denominated in U.S. Dollars, the Board and/or the Federal Reserve Bank of New York, or a committee  officially endorsed or convened by the Board or the Federal Reserve Bank of New York, or any successor thereto, and (b) with respect to a Benchmark Replacement in respect of Loans denominated in any  Alternative Currency, (1) the central bank for the Currency in which such Benchmark Replacement is  denominated or any central bank or other supervisor which is responsible for supervising either (A) such  Benchmark Replacement or (B) the administrator of such Benchmark Replacement or (2) any working  group or committee officially endorsed or convened by (A) the central bank for the Currency in which such  Benchmark Replacement is denominated, (B) any central bank or other supervisor that is responsible for  supervising either (i) such Benchmark Replacement or (ii) the administrator of such Benchmark  Replacement, (C) a group of those central banks or other supervisors or (D) the Financial Stability Board  or any part thereof.  “Relevant Plan” has the meaning set forth in Section 9.04(e).  “Rent Reserve” means, with respect to any store, warehouse distribution center, regional  distribution center or depot where any Inventory subject to Liens arising by operation of law is located and,  

 

47 at all times after the ninetieth (90th) day after the Closing Date (subject to the extension under Section 5.16), no Collateral Access Agreement for such location has been obtained, a reserve equal to two (2) months’  rent at such store, warehouse distribution center, regional distribution center or depot.  “Report” means reports prepared by the Administrative Agent or another Person showing the  results of appraisals, field examinations or audits pertaining to the assets of the Loan Parties from  information furnished by or on behalf of the Borrowers, after the Administrative Agent has exercised its  rights of inspection pursuant to this Agreement, which Reports may be distributed to the Lenders by the  Administrative Agent. “Reportable Compliance Event” means that any Relevant Entity becomes a Sanctioned Person, or  is charged by indictment, criminal complaint or similar charging instrument, arraigned, or custodially  detained in connection with any Anti-Terrorism Law or any predicate crime to any Anti-Terrorism Law, or  has knowledge of facts or circumstances to the effect that it is reasonably likely that any aspect of its  operations is in actual or probable violation of any Anti-Terrorism Law. “Required Lenders” means, at any time, Lenders (other than Defaulting Lenders) having Revolving  Exposures and unused Commitments representing more than 50% of the sum of the Aggregate Credit  Exposure and unused Commitments at such time.  “Requirement of Law” means, with respect to any Person, (a) the charter, articles or certificate of  organization or incorporation and bylaws or other organizational or governing documents of such Person and (b) any statute, law (including common law), treaty, rule, regulation, code, ordinance, order, decree,  writ, judgment, injunction or determination of any arbitrator or court or other Governmental Authority  (including Environmental Laws), in each case applicable to or binding upon such Person or any of its  property or to which such Person or any of its property is subject.  “Reserves” means (a) without duplication of any other Reserves or items that are otherwise  addressed through eligibility criteria, any reserves which the Administrative Agent deems necessary, in its  Permitted Discretion, (i) to reflect impediments to the Administrative Agent’s ability to realize upon the  Collateral, (ii) to reflect claims and liabilities that the Administrative Agent determines will need to be  satisfied in connection with the realization upon the ABL Priority Collateral of the type eligible to be  included in the Borrowing Base, or (iii) to reflect criteria, events, conditions, contingencies or risks which  adversely affect any component of the Borrowing Base, or the assets, business, financial performance or  financial condition of any Loan Party, including, for example, reserves for accrued and unpaid interest on  the Obligations, Rent Reserves, reserves for loyalty programs, reserves for outstanding gift certificates and  gift cards of the Loan Parties entitling the holder thereof to use all or a portion of the certificate or gift card  to pay all or a portion of the purchase price for any Inventory, reserves for consignee’s, warehousemen’s,  mortgagee’s and bailee’s charges, reserves for deferred, unpaid rent obligations with respect to the Loan  Parties’ leases of real property to the extent the applicable Loan Party and Landlord have not entered into  a written agreement providing for a payment plan for, or waiver of, such deferred rent obligations, reserves  for dilution of Credit Card Accounts, reserves for layaway deposits, reserves for payables to vendors  entitled to the benefits of PACA or any similar statute or regulation, reserves for customs charges and  shipping charges and other foreign landing costs related to any Inventory in transit, reserves for expenses  associated with merchandise repurpose processing, and reserves for outstanding taxes, fees, assessments,  and other governmental charges, (b) Banking Services/Swap Reserves, and (c) reserves with respect to  obligations under the Synthetic Lease Agreement and, as determined by the Administrative Agent in  Permitted Discretion, the Supply Chain Financing Agreement. Notwithstanding anything to the contrary  contained herein, unless otherwise agreed to by the Administrative Agent and all Lenders who are  participants in the Synthetic Lease Agreement, Reserves shall, at all times, include a Reserve in the amount  of the obligations then owing under the Synthetic Lease Agreement.  

 

48 The Administrative Agent may, in its Permitted Discretion and with no less than five (5) Business  Days’ prior written notice to the Borrower Representative (other than during a Dominion Period in which  case notice shall not be required), adjust Reserves, provided that, if after the delivery of such notice the  Borrower Representative notifies the Administrative Agent that it desires to discuss the Reserves described  therein, then the Administrative Agent will discuss such Reserves with the Borrower Representative,  provided that nothing in this proviso shall obligate the Administrative Agent to eliminate, reduce, or delay  any such Reserves; provided, that no Borrowings shall be permitted (or Letters of Credit issued) against the  newly proposed Reserves during any such five (5) Business Day period.  “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial  Institution, a UK Resolution Authority.  “Responsible Officer” means, with respect to any Loan Party, the Chief Executive Officer,  President, Chief Financial Officer, Treasurer or Assistant Treasurer of such Loan Party, any other executive  officer, including any Executive Vice President or Senior Vice President of such Loan Party, any Vice  President of any Restricted Subsidiary of such Loan Party, any manager or the members (as applicable) in  the case of any Loan Party which is a limited liability company, and such other individuals, designated by  written notice to the Administrative Agent from the Borrower Representative, authorized to execute notices,  reports and other documents on behalf of such Loan Party required hereunder.  The Borrower  Representative may amend such list of individuals from time to time by giving written notice of such  amendment to the Administrative Agent.  Any document delivered hereunder that is signed by a  Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all  necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible  Officer shall be conclusively presumed to have acted on behalf of such Loan Party in their capacity as an  officer of such Loan Party and not in any individual capacity.  “Refinancing Indebtedness” has the meaning specified in Section 6.01(n).  “Restricted Investment” means any Investment that is not a Permitted Investment. “Restricted Payments” has the meaning specified in Section 6.02(a).  “Restricted Subsidiary” means, with respect to any Person, any Subsidiary of such Person other  than an Unrestricted Subsidiary of such Person.  Unless the context otherwise requires, the term “Restricted  Subsidiary” shall mean a Restricted Subsidiary of the Company.  Each Loan Party (other than the Company)  shall constitute a Restricted Subsidiary. “Revaluation Date” means (a) with respect to each Borrowing of a Term Rate Loan denominated  in an Alternative Currency, (i) each date of a borrowing, renewal, and conversion pursuant to the terms of  this Agreement and (ii) such additional dates as the Administrative Agent shall determine or the Required  Lenders shall require; and (b) with respect to each Borrowing of a Daily Rate Loan denominated in an  Alternative Currency, each date such Daily Rate Loan is outstanding. “Revolving Exposure” means, with respect to any Lender at any time, the sum of (a) the  outstanding principal amount of such Lender’s Revolving Loans, LC Exposure, Participation Advances,  and Swingline Exposure at such time, plus (b) an amount equal to its Applicable Percentage of the aggregate  principal amount of Overadvances and Protective Advances outstanding at such time. “Revolving Exposure Limitations” has the meaning set forth in Section 2.01. 

 

49 “Revolving Loan” means a Loan made pursuant to Section 2.01(a).  “RFR” means, for any Obligations, interest, fees, commissions or other amounts denominated in,  or calculated with respect to, Euro, €STR.  “RFR Adjustment” means with respect to RFR Loans or Term RFR Loans, the adjustment set forth  in the table below corresponding to such Alternative Currency for the corresponding Daily Simple RFR  Option or Term RFR Option: Currency Adjustment to  Daily Simple RFR Adjustment to  Term RFR  Euros 0.0456% 0.0456% “RFR Administrator” means the €STR Administrator.  “RFR Business Day” means as applicable, for any Obligations, interest, fees, commissions or other  amounts denominated in, or calculated with respect to Euro, a TARGET Day. “RFR Day” has the meaning specified in the definition of “Daily Simple RFR”. “RFR Loan” means a Loan that bears interest at a rate based on Daily Simple RFR or, after the  replacement of the then-current Benchmark for any Currency for all purposes hereunder or under any Loan  Document with Term RFR pursuant to Section 2.14(d), Term RFR for such Currency, as the context may  require.   “RFR Reserve Percentage” means as of any day, the maximum effective percentage in effect on  such day, if any, as prescribed by the Board (or any successor) for determining the reserve requirements  (including, without limitation, supplemental, marginal and emergency reserve requirements) with respect  to RFR Loans. “S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC  business. “Sale/Leaseback Transaction” means an arrangement relating to property now owned or hereafter  acquired by a Loan Party or a Restricted Subsidiary whereby such Loan Party or Restricted Subsidiary  transfers such property to a Person and such Loan Party or Restricted Subsidiary leases it from such Person,  other than leases between any Loan Party and a Restricted Subsidiary or between Restricted Subsidiaries. “Sanctioned Country” means, at any time, a country, region or territory which is the subject or  target of any Sanctions.  “Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of  designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the  Treasury, the U.S. Department of State, or by the United Nations Security Council, Her Majesty’s Treasury  of the United Kingdom, the European Union or any EU member state, or (b) any Person otherwise the  subject of any Sanctions.  “Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or  enforced from time to time (a) by the U.S. government, including those administered by the Office of  Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or (b) by  

 

50 the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United  Kingdom.  “Same Day Funds” means (a) with respect to disbursements and payments in U.S. Dollars,  immediately available funds, and (b) with respect to disbursements and payments in an Alternative  Currency, same day or other funds as may be determined by the Administrative Agent or the Issuing Bank, as the case may be, to be customary in the place of disbursement or payment for the settlement of  international banking transactions in the relevant Alternative Currency.  “SEC” means the Securities and Exchange Commission of the U.S. “Secured Obligations” means all Obligations, together with all (a) Banking Services Obligations  of the Borrowers or any Restricted Subsidiary of a Borrower; (b) Swap Agreement Obligations of the  Borrowers or any Restricted Subsidiary of a Borrower owing to one or more Qualified Counterparties; and  (c) all obligations owed under the Synthetic Lease Agreement and Supply Chain Financing Agreement;  provided that Excluded Swap Obligations with respect to any Loan Party shall not be Secured Obligations  of such Loan Party.  “Secured Parties” means (a) the Administrative Agent, (b) the Lenders, (c) each Issuing Bank,  (d) Qualified Counterparties to whom any Banking Services Obligations are owing, (e) Qualified  Counterparties to whom Swap Agreement Obligations constituting Secured Obligations hereunder are  owing, (f) the counterparties to the Synthetic Lease Agreement and Supply Chain Financing Agreement,  and (g) the successors and assigns of each of the foregoing. “Security Agreement” means that certain Security Agreement, in form and substance reasonably  satisfactory to the Administrative Agent and the Lenders, dated as of the Closing Date, among the Loan  Parties and the Administrative Agent, and, as the context requires, any other pledge or security agreement  entered into, after the Closing Date by any other Loan Party (as required by this Agreement or any other  Loan Document), or any other Person, as the same may be amended, restated, supplemented or otherwise  modified from time to time. “Senior Representative” means, with respect to any Indebtedness, the trustee, administrative agent,  collateral agent, security agent or similar agent under the indenture or agreement pursuant to which such  Indebtedness is issued, incurred or otherwise obtained, as the case may be, and each of their successors in  such capacities. “Settlement” has the meaning assigned to such term in Section 2.05(d).    “Settlement Date” has the meaning assigned to such term in Section 2.05(d).  “Similar Business” has the meaning specified in Section 6.06.  “SOFR” means, for any day, a rate equal to the secured overnight financing rate as administered  by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing  rate).   “SOFR Adjustment” means, for Daily Simple SOFR, ten (10) basis points (0.10%) and for Term  SOFR, the percentages set forth in the below table: SOFR Adjustment Interest Period ten (10) basis points (0.10%) For a 1-month Interest Period 

 

51 or  a 3-month Interest Period twenty-five (25) basis points (0.25%) For a 6-month Interest Period “SOFR Floor” means a rate of interest per annum equal to 0.00% per annum.  “SOFR Reserve Percentage” means, for any day, the maximum effective percentage in effect on  such day, if any, as prescribed by the Board (or any successor) for determining the reserve requirements  (including, without limitation, supplemental, marginal and emergency reserve requirements) with respect  to SOFR funding.  “Solvent” means, with respect to any Person on any date of determination, taking into account any  right of reimbursement, contribution or similar right available to such Person from other Persons, that on  such date (i) the fair value of the property of such Person is greater than the total amount of liabilities,  including contingent liabilities, of such Person, (ii) the present fair saleable value of the assets of such  Person is not less than the amount that will be required to pay the probable liability of such Person on its  debts as they become absolute and matured, (iii) such Person is able to realize upon its assets and pay its  debts and other liabilities, contingent obligations and other commitments as they mature in the normal  course of business, (iv) such Person does not intend to, and does not believe that it will, incur debts or  liabilities beyond such Person’s ability to pay as such debts and liabilities mature, and (v) such Person is  not engaged in business or a transaction, and is not about to engage in business or a transaction, for which  such Person’s property would constitute unreasonably small capital after giving due consideration to the  prevailing practice in the industry in which such Person is engaged.  In computing the amount of contingent  liabilities at any time, it is intended that such liabilities will be computed at the amount which, in light of  all the facts and circumstances existing at such time, represents the amount that can reasonably be expected  to become an actual or matured liability.  “Specified Event of Default” means the occurrence of any Event of Default described in any of  Sections 7(a), 7(b) (but solely with respect to a misrepresentation made in any Borrowing Base Certificate), 7(c)(i) (but solely with respect to Sections 5.01(a), 5.01(b), 5.01(d), 5.01(e) and Article VI) or 7(e).  “Standby LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all  standby Letters of Credit outstanding at such time plus (b) the aggregate amount of all LC Disbursements  relating to standby Letters of Credit that have not yet been reimbursed by or on behalf of the Borrowers at  such time.  The Standby LC Exposure of an Issuing Bank (in its capacity as such) shall be the Standby  Exposure in respect of standby Letters of Credit issued by such Issuing Bank.  The Standby LC Exposure  of any Lender at any time shall be its Applicable Percentage of the aggregate Standby LC Exposure at such  time. “Statements” has the meaning given to such term in Section 3.06(a).  “Subordinated Indebtedness” of a Person means any Indebtedness of such Person the payment of  which is subordinated to payment of the Secured Obligations to the written satisfaction of the  Administrative Agent. “subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited  liability company, partnership, association or other business entity (a) of which securities or other  ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting  power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such  

 

52 date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or  more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.  “Subsidiary” means any direct or indirect subsidiary of the Company or a Loan Party, as applicable.   “Subsidiary Borrowers” means, collectively (i) each Domestic Subsidiary of the Company that is  a party to this Agreement as a “Borrower” on the date hereof and (ii) each Domestic Subsidiary of the  Company that becomes a party to this Agreement as a “Borrower” after the date hereof pursuant to Section  5.14, in each case, until such time as such Domestic Subsidiary is released from its obligations under the  Loan Documents in accordance with this Agreement. “Subsidiary Equity Interests” has the meaning specified in Section 3.02.  “Supported QFC” has the meaning set forth in Section 9.29.  “Supply Chain Financing Agreement” means, collectively, (a) that certain Funding Program  Documentation, dated as of December 7, 2018, between, among others, Big Lots Stores, Inc., as customer,  and PNC Bank, National Association, as provider, as amended and in effect on the Closing Date and as  may be further amended in accordance with the terms of this Agreement, and the other documents executed  in connection therewith, and (b) any similar agreement between a Loan Party and any Lender or any of its  Affiliates to the extent the Administrative Agent receives a written notice thereof within thirty (30) days of  execution of any such similar agreement.  “Sustainability Structuring Agent” means PNC Capital Markets LLC. “Swap Agreement” means any agreement with respect to any swap, forward, spot, future, credit  default or derivative transaction or option or similar agreement involving, or settled by reference to, one or  more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or  pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any  combination of these transactions; provided that no phantom stock or similar plan providing for payments  only on account of services provided by current or former directors, officers, employees or consultants of  the Borrowers or the Restricted Subsidiaries shall be a Swap Agreement. “Swap Agreement Obligations” means any and all obligations of the Loan Parties and their  Restricted Subsidiaries, whether absolute or contingent and howsoever and whensoever created, arising,  evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions  therefor), under (a) any and all Swap Agreements permitted hereunder with a Lender or an Affiliate of a  Lender, and (b) any and all cancellations, buy backs, reversals, terminations or assignments of any such  Swap Agreement transaction. “Swap Obligation” means, with respect to any Guarantor, any obligation to pay or perform under  any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the  Commodity Exchange Act or any rules or regulations promulgated thereunder.  “Swingline Exposure” means, at any time, the aggregate principal amount of all Swingline Loans  outstanding at such time. The Swingline Exposure of any Lender at any time shall be its Applicable  Percentage of the aggregate Swingline Exposure at such time. “Swingline Lender” means PNC, in its capacity as lender of Swingline Loans hereunder. Any  consent required of the Administrative Agent or the Issuing Bank shall be deemed to be required of the  

 

53 Swingline Lender and any consent given by PNC in its capacity as Administrative Agent or Issuing Bank  shall be deemed given by PNC in its capacity as Swingline Lender. “Swingline Loan” has the meaning assigned to such term in Section 2.05(a).   “Synthetic Lease Agreement” means the Operative Agreements, as the term “Operative  Agreements” is defined in Appendix A to that certain Participation Agreement by and among one or more  of the Loan Parties, Wells Fargo Bank, National Association, as agent, and the lease participants party  thereto from time, dated as of November 30, 2017, as amended and in effect on the Closing Date and as  may be further amended in accordance with the terms of this Agreement, and the other documents executed  in connection therewith.    “TARGET2” means the Trans-European Automated Real-time Gross Settlement Express Transfer  payment system which utilizes a single shared platform and which was launched on November 19, 2007.  “TARGET Day” means any day on which TARGET2 is open for the settlement of payments in  Euros.  “Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, withholdings,  (including backup withholding), assessments, fees or other charges imposed by any Governmental  Authority, including any interest, additions to tax or penalties applicable thereto. “Term Rate Loan” means a Loan that bears interest at a rate based on the Term SOFR Rate or Term  RFR. “Term Rate Loan Option” means the option of the Borrower to have Loans bear interest at the rate  and under the terms specified in Section 2.08(a)(i). “Term RFR” means, with respect to Euros for any Interest Period, a rate per annum determined by  the Administrative Agent, for any Obligations, interest, fees, commissions or other amounts denominated  in, or calculated with respect to any applicable Term RFR Forward Looking Rate by dividing (the resulting  quotient  rounded upwards, at the Administrative Agent’s discretion, to the nearest 1/100 of 1%) (a) the  applicable Term RFR Forward Looking Rate by (b) a number equal to 1.00 minus the RFR Reserve  Percentage; provided that  if the adjusted rate as determined above would be less than the Floor, such rate  shall be deemed to be the Floor for purposes of this Agreement. The adjusted Term RFR for each  outstanding Term RFR Loan shall be adjusted automatically as of the effective date of any change in the  RFR Reserve Percentage. The Administrative Agent shall give prompt notice to the Borrower of the  adjusted Term RFR rate as determined or adjusted in accordance herewith, which determination shall be  conclusive absent manifest error. “Term RFR Forward Looking Rate” means, with respect to Euros for any Interest Period, the  forward-looking term rate for a period comparable to such Interest Period based on the RFR for such  Currency that is published by an authorized benchmark administrator and is displayed on a screen or other  information service, each as identified or selected by the Administrative Agent in its reasonable discretion  at approximately a time and as of a date prior to the commencement of such Interest Period determined by  the Administrative. “Term RFR Loan” means a Loan that bears interest based on Term RFR. “Term RFR Notice” means a notification by the Administrative Agent to the Lenders and the  Borrower of the occurrence of a Term RFR Transition Event.  

 

54 “Term RFR Option” means the option of the Borrower to have Loans bear interest at the rate and  under the terms specified in Section 2.08(a)(i)(C).  “Term RFR Transition Date” means, in the case of a Term RFR Transition Event, the date that is  set forth in the Term RFR Notice provided to the Lenders and the Borrower pursuant to Section 2.14(d)  which date shall be at least 30 (thirty) calendar days from the date of the Term RFR Notice. “Term RFR Transition Event” means, with respect to Euros for any Interest Period, the  determination by the Administrative Agent that (a) the applicable Term RFR for such Currency is  determinable for each Available Tenor, (b) the administration of such Term RFR is administratively feasible  for the Administrative Agent, (c) the RFR Administrator publishes, publicly announces or makes publicly  available that such Term RFR is administered in accordance with the IOSCO Principles, (d) such Term  RFR is used as a benchmark rate in at least five currently outstanding syndicated credit facilities  denominated in the applicable Currency (and such syndicated credit facilities are identified and are publicly  available for review), and (e) such Term RFR is recommended for use by a Relevant Governmental Body. “Term SOFR Administrator” means CME Group Benchmark Administration Limited (CBA) (or a  successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its  reasonable discretion). “Term SOFR Rate” means, with respect to any amount to which the Term SOFR Rate Option  applies, for any Interest Period, the interest rate per annum determined by the Administrative Agent by  dividing (the resulting quotient rounded upwards, at the Administrative Agent’s discretion, to the nearest  1/100th of 1%) (A) the Term SOFR Reference Rate for a tenor comparable to such Interest Period, as such  rate is published by the Term SOFR Administrator on the day (the “Term SOFR Determination Date”) that  is two (2) Business Days prior to the first day of such Interest Period, by (B) a number equal to 1.00 minus  the SOFR Reserve Percentage.  If the Term SOFR Reference Rate for the applicable tenor has not been  published or replaced with a Benchmark Replacement by 5:00 p.m. (Pittsburgh, Pennsylvania time) on the  Term SOFR Determination Date, then the Term SOFR Reference Rate, for purposes of clause (A) in the  preceding sentence, shall be the Term SOFR Reference Rate for such tenor on the first Business Day  preceding such Term SOFR Determination Date for which such Term SOFR Reference Rate for such tenor  was published in accordance herewith, so long as such first preceding Business Day is not more than three  (3) Business Days prior to such Term SOFR Determination Date.  If the Term SOFR Rate, determined as  provided above, would be less than the SOFR Floor, then the Term SOFR Rate shall be deemed to be the  SOFR Floor. The Term SOFR Rate shall be adjusted automatically without notice to the Borrower on and  as of (i) the first day of each Interest Period, and (ii) the effective date of any change in the SOFR Reserve  Percentage.  “Term SOFR Rate Loan” means a Loan that bears interest based on the Term SOFR Rate. “Term SOFR Rate Option” means the option of the Borrower to have Loans bear interest at the rate  and under the terms specified in Section 2.08(a)(i)(A).  “Term SOFR Reference Rate” means the forward-looking term rate based on SOFR.  “Test Period” means, as of any date of determination, the most recently completed four (4) fiscal  quarters of the Loan Parties ended on or prior to such time (taken as one accounting period) for which  financial statements have been delivered (or are required to have been delivered) to the Administrative  Agent. 

 

55 “Total Assets” means, at any date of determination, the consolidated total assets of the Company  and its Restricted Subsidiaries as of the last day of the most recent fiscal quarter of the Company for which  financial statements have been delivered pursuant to Section 5.01(a) or (b) as adjusted to give effect to any  acquisition or Disposition of a Person or assets that may have occurred on or after the last day of such fiscal  quarter. “Trade Date” has the meaning set forth in Section 9.04(e).  “Transactions” means the execution, delivery and performance by the Loan Parties of this  Agreement and the other Loan Documents, the borrowing of Loans and other credit extensions, the use of  the proceeds thereof and the issuance of Letters of Credit hereunder. “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on  such Loan, or on the Loans comprising such Borrowing, is determined by reference to (a) the Alternate Base Rate, (b) Term SOFR Rate, (c) prior to the Term RFR Transition Date with respect to Euros, the Daily  Simple RFR for such Currency  or, on and after the Term RFR Transition Date  with respect to any such  Currency, the Term RFR for such Currency, (d) Daily Simple SOFR or (e) Eurocurrency Rate.  “UCC” means the Uniform Commercial Code as in effect from time to time in the State of Ohio or  in any other state the laws of which are required to be applied in connection with the issue of perfection of  security interests. “UK Financial Institution” means any BRRD Undertaking (as such term is defined under the PRA  Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation  Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time)  promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions  and investment firms, and certain affiliates of such credit institutions or investment firms.  “UK Resolution Authority” means the Bank of England or any other public administrative authority  having responsibility for the resolution of any UK Financial Institution.  “Unfinanced Capital Expenditures” means for any period, Capital Expenditures of the Company  and its Restricted Subsidiaries made in cash during such period, except to the extent financed with the  proceeds of Finance Lease Obligations or other Indebtedness (other than Loans incurred hereunder),  common Equity Interests or Disqualified Stock, or casualty proceeds, condemnation proceeds, or other  proceeds that would not be included in Consolidated EBITDA, less cash received from the sale of any fixed  assets of the Company and its Restricted Subsidiaries (including, without limitation, equipment) during  such period; provided that the aggregate amount of Unfinanced Capital Expenditures during such period  may not be less than zero. “Unliquidated Obligations” means, at any time, any Secured Obligations (or portion thereof) that  are contingent in nature or unliquidated at such time, including any Secured Obligation that is: (i) an  obligation to reimburse a bank for drawings not yet made under a letter of credit issued by it; (ii) any other  obligation (including any guarantee) that is contingent in nature at such time; or (iii) an obligation to provide  collateral to secure any of the foregoing types of obligations.  “Unrestricted Subsidiary” means:  (1) any Subsidiary of the Company that at the time of determination shall be  designated an Unrestricted Subsidiary by the Board of Directors of the Company in the manner  provided below; and  

 

56 (2) any Subsidiary of an Unrestricted Subsidiary.  The Company may designate any Subsidiary of the Company (including any newly acquired or  newly formed Subsidiary of the Company) to be an Unrestricted Subsidiary by written notice to the  Administrative Agent unless at the time of such designation such Subsidiary or any of its Subsidiaries owns  any Equity Interests or Indebtedness of, or owns or holds any Lien on any property of, the Company or any  other Restricted Subsidiary that is not a Subsidiary of the Subsidiary to be so designated, in each case at the  time of such designation; provided, however, that the Subsidiary to be so designated and its Subsidiaries  do not at the time of designation have and do not thereafter Incur any Indebtedness pursuant to which the  lender has recourse to any of the assets of the Company or any of the Restricted Subsidiaries unless  otherwise permitted under Section 6.02; provided, further, however, that either:  (a) the Subsidiary to be so designated has total consolidated assets of $2,250 or less;  or  (b) if such Subsidiary has consolidated assets greater than $2,250, then such  designation would be permitted under Section 6.02.  Notwithstanding the foregoing, no Unrestricted Subsidiary may own any Material Intellectual  Property unless such Material Intellectual Property is subject to a non-exclusive, irrevocable (until the  Secured Obligations (other than contingent or indemnity obligations for which no claim has been made by  the Person entitled thereof) have been paid in full and all Commitments have terminated), royalty-free  license of such Material Intellectual Property and applications in favor of the Administrative Agent for use  in connection with the exercise of rights and remedies of the Secured Parties under the Loan Documents  with respect to the ABL Priority Collateral, which license shall be substantially similar to the license  described in Section 8(c) of the Security Agreement (or otherwise reasonably satisfactory to the  Administrative Agent).  The Company may designate any Unrestricted Subsidiary to be a Restricted Subsidiary by written  notice to the Administrative Agent; provided, however, that immediately after giving effect to such  designation, the Company shall be in Pro Forma Compliance with the Payment Conditions.  In no event may any Subsidiary that is  a “Restricted Subsidiary” (or an analogous concept) under  an Other Secured Debt Loan Agreement be designated an Unrestricted Subsidiary (unless such Subsidiary  is designated an “Unrestricted Subsidiary” under an Other Secured Debt Loan Agreement prior or  substantially concurrently with such designation).  As of the date hereof, no entity is an Unrestricted  Subsidiary. “U.S.” means the United States of America. “U.S. Benefit Plan” means any of (a) an “employee benefit plan” (as defined in Section 3(3) of  ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code to which  Section 4975 of the Code applies, and (c) any Person whose assets include (for purposes of the Plan Asset  Regulations or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any  such “employee benefit plan” or “plan”.  “U.S. Dollar” or “$”means the lawful money of the United States of America.  “U.S. Government Securities Business Day” means any day except for (a) a Saturday or Sunday or  (b) a day on which the Securities Industry and Financial Markets Association recommends that the fixed  

 

57 income departments of its members be closed for the entire day for purposes of trading in United States  government securities. “U.S. Person” means a “United States person” within the meaning of Section 7701(a)(30) of the  Code.  “U.S. Special Resolution Regimes” has the meaning set forth in Section 9.29.  “U.S. Tax Compliance Certificate” has the meaning assigned to such term in  Section 2.17(f)(ii)(B)(3).  “USA PATRIOT Act” means the Uniting and Strengthening America by Providing Appropriate  Tools Required to Intercept and Obstruct Terrorism Act of 2001.  “Weighted Average Life to Maturity” means, when applied to any Indebtedness or Disqualified  Stock or Preferred Stock, as the case may be, at any date, the quotient obtained by dividing (1) the sum of  the products of the number of years from the date of determination to the date of each successive scheduled  principal payment of such Indebtedness or redemption or similar payment with respect to such Disqualified  Stock or Preferred Stock multiplied by the amount of such payment, by (2) the sum of all such payments. “Weekly BBC Reporting Period” means any period (i) commencing at any time when Availability  shall be less than the greater of (x) $90,000,000 and (y) 12.5% of the Maximum Credit Amount, in either case, for a period of five (5) consecutive Business Days and (ii) ending when Availability shall have been  greater than or equal to the greater of (x) $90,000,000 and (y) 12.5% of the Maximum Credit Amount, in  either case, for a period of thirty (30) consecutive Business Days; provided however that, upon the end of  any Weekly BBC Reporting Period, the Borrowers shall immediately be deemed to have commenced a  Monthly BBC Reporting Period irrespective of Availability at such time.  “Wholly Owned Subsidiary” of any Person means a Restricted Subsidiary of such Person 100% of  the outstanding Equity Interests or other ownership interests of which (other than directors’ qualifying  shares or shares required pursuant to applicable Requirements of Law) shall at the time be owned by such  Person or by one or more Wholly Owned Subsidiaries of such Person.  “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial  withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of  ERISA. “Write-Down and Conversion Powers” means (a) with respect to any EEA Resolution Authority,  the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail- In Legislation for the applicable EEA Member Country, which write-down and conversion powers are  described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, any powers  of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change  the form of a liability of any UK Financial Institution or any contract or instrument under which that liability  arises, to convert all or part of that liability into shares, securities or obligations of that person or any other  person, to provide that any such contract or instrument is to have effect as if a right had been exercised  under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In  Legislation that are related to or ancillary to any of those powers. SECTION 1.02 Classification of Loans and Borrowings.  For purposes of this Agreement, Loans  and Borrowings may be classified and referred to by Type.  

 

58 SECTION 1.03 Terms Generally.  The definitions of terms herein shall apply equally to the  singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include  the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including”  shall be deemed to be followed by the phrase “without limitation”. The word “law” shall be construed as  referring to all statutes, rules, regulations, codes and other laws (including official rulings and  interpretations thereunder having the force of law or with which affected Persons customarily comply) and  all judgments, orders and decrees of all Governmental Authorities. The word “will” shall be construed to  have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any  definition of or reference to any agreement, instrument or other document herein shall be construed as  referring to such agreement, instrument or other document as from time to time amended, restated,  supplemented or otherwise modified (subject to any restrictions on such amendments, restatements,  supplements or modifications set forth herein or in the other Loan Documents), (b) any definition of or  reference to any statute, rule or regulation shall be construed as referring thereto as from time to time  amended, supplemented or otherwise modified (including by succession of comparable successor laws),  (c) any reference herein to any Person shall be construed to include such Person’s successors and assigns  (subject to any restrictions on assignments set forth herein) and, in the case of any Governmental Authority,  any other Governmental Authority that shall have succeeded to any or all functions thereof, (d) the words  “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this  Agreement in its entirety and not to any particular provision hereof, (e) all references herein to Articles,  Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and  Schedules to, this Agreement, (f) any reference in any definition to the phrase “at any time” or “for any  period” shall refer to the same time or period for all calculations or determinations within such definition,  and (g) the words “asset” and “property” shall be construed to have the same meaning and effect and to  refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and  contract rights.  SECTION 1.04 Accounting Terms; GAAP.  Except as otherwise expressly provided herein, all  terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from  time to time; provided that, if after the date hereof there occurs (a) any change in GAAP or in the application  thereof on the operation of any provision hereof or (b) any change in the historical accounting practices,  systems or reserves relating to the components of the Borrowing Base that is adverse to the Lenders in any  material respect, and the Borrower Representative notifies the Administrative Agent that the Borrowers  request an amendment to any provision hereof to eliminate the effect of such change (or if the  Administrative Agent notifies the Borrower Representative 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, then the provisions herein shall be interpreted on the basis of GAAP as in effect and  applied, or based on the historical accounting practices, systems or reserves in effect, in each case,  immediately before such change shall have become effective until such notice shall have been withdrawn  or such provision amended in accordance herewith, and the Borrower Representative, the Administrative  Agent and the Lenders agree to negotiate in good faith with respect to any proposed amendment to eliminate  or adjust for the effect of any such change. Notwithstanding any other provision contained herein, all terms  of an accounting or financial nature used herein shall be construed, and all computations of amounts and  ratios referred to herein shall be made (i) without giving effect to any election under Financial Accounting  Standards Board Accounting Standards Codification 825-10-25 (or any other Accounting Standards  Codification or Financial Accounting Standard having a similar result or effect or any successor thereto) to  value any Indebtedness or other liabilities of the Company or any Subsidiary at “fair value”, as defined  therein and (ii) without giving effect to any treatment of Indebtedness in respect of convertible debt  instruments under Financial Accounting Standards Board 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.  

 

59 SECTION 1.05 Benchmark Replacement Notification. Section 2.14(d) of this Agreement  provides a mechanism for determining an alternative rate of interest in the event that the Term SOFR Rate,  Daily Simple SOFR, Daily Simple RFR or Term RFR for any applicable Currency is no longer available  or in certain other circumstances. The Administrative Agent does not warrant or accept any responsibility  for and shall not have any liability with respect to, the administration, submission or any other matter related  to the Term SOFR Rate, Daily Simple SOFR, Daily Simple RFR or Term RFR for any applicable Currency,  or with respect to any alternative or successor rate thereto, or replacement rate therefor.   SECTION 1.06 Status of Obligations.  In the event that any Borrower or any other Loan Party shall  at any time issue or have outstanding any Subordinated Indebtedness, such Borrower shall take or cause  such other Loan Party to take all such actions as shall be necessary to cause the Secured Obligations to  constitute senior indebtedness (however denominated) in respect of such Subordinated Indebtedness and to  enable the Administrative Agent and the Lenders to have and exercise any payment blockage or other  remedies available or potentially available to holders of senior indebtedness under the terms of such  Subordinated Indebtedness, in each case, to the extent set forth in the applicable subordination agreement.  Without limiting the foregoing, the Secured Obligations are hereby designated as “senior indebtedness”  and as “designated senior indebtedness” and words of similar import under and in respect of any indenture  or other agreement or instrument under which such Subordinated Indebtedness is outstanding and are  further given all such other designations as shall be required under the terms of any such Subordinated  Indebtedness in order that the Lenders may have and exercise any payment blockage or other remedies  available or potentially available to holders of senior indebtedness under the terms of such Subordinated  Indebtedness, in each case, to the extent set forth in the applicable subordination agreement. SECTION 1.07 Exchange Rates. Without limiting the other terms of this Agreement, the  calculations and determinations under this Agreement of any amount in any currency other than U.S.  Dollars shall be deemed to refer to the Dollar Amount thereof, as the case may be, and all Borrowing Base  Certificates delivered under this Agreement shall express such calculations or determinations in U.S. Dollars or the Dollar Amount thereof, as the case may be. The Administrative Agent or the Issuing Bank,  as applicable, shall determine the Dollar Amount amounts of Loans and Letters of Credit denominated in  Alternative Currencies. Such Dollar Amount shall become effective as of the Revaluation Date and shall  be the Dollar Amount of such amounts until the next Revaluation Date to occur. Except for purposes of  financial statements delivered by Loan Parties hereunder or calculating financial covenants hereunder or  except as otherwise provided herein, the applicable amount of any currency (other than U.S. Dollars) for  purposes of the Loan Documents shall be such Dollar Amount amount as so determined by the  Administrative Agent or the Issuing Bank, as applicable. Wherever in this Agreement in connection with  the initial advance, or the conversion, continuation or prepayment, of a Loan or the issuance, amendment  or extension of a Letter of Credit, an amount, such as a required minimum or multiple amount, is expressed  in U.S. Dollars, but such Loan or Letter of Credit is denominated in an Alternative Currency, such amount  shall be the relevant Alternative Currency Equivalent of such U.S. Dollar amount (the resulting quotient   rounded upwards, at the Administrative Agent’s discretion, to the nearest 1/100 of 1%), as determined by  the Administrative Agent or the Issuing Bank, as the case may be. All financial statements and Compliance  Certificates shall be set forth in U.S. Dollars. For purposes of preparing financial statements, calculating  financial covenants, and determining compliance with covenants expressed in U.S. Dollars, Alternative  Currencies shall be converted into U.S. Dollars in accordance with GAAP. SECTION 1.08 Divisions.  For all purposes under the Loan Documents, in connection with any  division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s  laws):  (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or  liability of a different Person, then it shall be deemed to have been transferred from the original Person to  the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed  to have been organized on the first date of its existence by the holders of its Equity Interests at such time. 

 

60 ARTICLE II. THE CREDITS SECTION 2.01 Commitments.  Subject to the terms and conditions set forth herein, each Lender  severally agrees, from time to time during the Availability Period, to make Revolving Loans denominated  in U.S. Dollars or Alternative Currencies to the Borrowers in an aggregate principal amount that will not  result in: (i) such Lender’s Revolving Exposure exceeding such Lender’s Commitment;  (ii) the Aggregate Credit Exposure exceeding the Aggregate Commitments; or  (iii) the Aggregate Credit Exposure of all Lenders exceeding the Borrowing Base.  subject to the Administrative Agent’s authority, in its sole discretion, to make Protective Advances  and Overadvances pursuant to the terms of Sections 2.04 and 2.05. The limitations on Borrowings referred  to in clauses (i) through (v) are referred to collectively as the “Revolving Exposure Limitations.” Within  the foregoing limits and subject to the terms and conditions set forth herein, the Borrowers may borrow,  prepay and reborrow Revolving Loans.  SECTION 2.02 Loans and Borrowings.    (a) Each Loan (other than a Swingline Loan) shall be made as part of a Borrowing consisting  of Loans of the same Type made by the Lenders ratably in accordance with their respective Commitments.  The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of  its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall  be responsible for any other Lender’s failure to make Loans as required. Any Protective Advance, any  Overadvance and any Swingline Loan shall be made in accordance with the procedures set forth in Sections  2.04 and 2.05.  (b) All Borrowings (other than Swingline Borrowings) shall be denominated in U.S. Dollars or in Alternative Currencies. Subject to Section 2.14, each Borrowing shall be comprised entirely of ABR Loans, Term SOFR Rate Loans or Alternative Currency Loans as the Borrower Representative may request  in accordance herewith, provided that, subject to a funding indemnity letter in form and substance  reasonably satisfactory to the Administrative Agent, all Borrowings made on the Closing Date will be made  as SOFR Borrowings. Each Swingline Loan shall be a Daily Simple SOFR Loan. Each Lender at its option  may make any Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such  Loan (and in the case of an Affiliate, the provisions of Sections 2.14, 2.15, 2.16 and 2.17 shall apply to such  Affiliate to the same extent as to such Lender); provided, however, (i) the exercise of such option shall be  recorded in the Register in accordance with Section 9.04(b)(iv) and such Affiliate shall have provided the  tax forms required by 2.17(f) to the Administrative Agent, and (ii) any that any exercise of such option shall  not affect the obligation of the Borrowers to repay such Loan in accordance with the terms of this  Agreement. (c) At the commencement of each Interest Period for any Term Rate Loan Option or SOFR  Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and  not less than $1,000,000. At the time that each ABR Revolving Borrowing is made, such Borrowing shall  be in an aggregate amount that is an integral multiple of $100,000 and not less than $1,000,000; provided  that an ABR Borrowing may be in an aggregate amount that is equal to the entire unused balance of the  Aggregate Commitments or that is required to finance the reimbursement of an LC Disbursement as  

 

61 contemplated by Section 2.06(d).  Each Swingline Loan shall be in an amount that is an integral multiple  of $100,000 and not less than $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, collectively, more than a total of twelve (12) SOFR Borrowings and Term Rate Loan Option Loans outstanding. (d) Notwithstanding any other provision of this Agreement, the Borrower Representative shall  not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested  with respect thereto would end after the Maturity Date. SECTION 2.03 Requests for Borrowings.    (a) To request a Borrowing (other than a Swingline Loan), the Borrower Representative shall  notify the Administrative Agent of such request in writing (whether through Administrative Agent’s  pinnacle system or other form of electronic submission acceptable to the Administrative Agent) in a form  approved by the Administrative Agent and signed by the Borrower Representative not later than 1:00 p.m., New York time: (i) three (3) Business Days prior to the proposed Borrowing Date with respect to the  making of Revolving Loans denominated in U.S. Dollars to which the Term SOFR Rate Option  applies or the conversion to or the renewal of any such Interest Rate Option for any Revolving  Loans denominated in U.S. Dollars; (ii) four (4) Business Days prior to the proposed Borrowing Date with respect to the  making of Revolving Loans denominated in Alternative Currencies to which the Daily Simple RFR  Option or  Term RFR Option applies, or the conversion to or renewal of a Daily Simple RFR Option  or Term RFR Option for any Revolving Loans denominated in Alternative Currencies; and/or  (iii) the same Business Day of the proposed Borrowing Date with respect to the making  of a Revolving Loan to which the Alternate Base Rate applies or the last day of the preceding  Interest Period with respect to the conversion to the Alternate Base Rate for any Revolving Loan, (b) Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed  promptly by hand delivery, facsimile, or emailed pdf to the Administrative Agent of a written Borrowing  Request signed by the Borrower Representative. Each such telephonic and written Borrowing Request shall  specify the following information in compliance with Section 2.02:  (i) the name of the applicable Borrower(s);  (ii) the aggregate amount of the requested Borrowing and a breakdown of the separate  wires comprising such Borrowing;  (iii) the date of such Borrowing, which shall be a Business Day;  (iv) the Type and Currency of such Borrowing; and  (v) if applicable, the initial Interest Period to be applicable thereto, which shall be a  period contemplated by the definition of the term “Interest Period.”  Any Borrowing Request that shall fail to specify any of the information required by the preceding  provisions of this paragraph may be rejected by the Administrative Agent if such failure is not corrected  promptly after the Administrative Agent shall give written or telephonic notice thereof to the Borrower  

 

62 Representative and, if so rejected, will be of no force or effect. Promptly following receipt of a Borrowing  Request in accordance with this Section, the Administrative Agent shall advise each Lender of the details  thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing.   SECTION 2.04 Protective Advances.   (a) Subject to the limitations set forth below, after the Closing Date, the Administrative Agent  is authorized by the Borrowers and the Lenders, from time to time in the Administrative Agent’s sole  discretion (but shall have absolutely no obligation to), to make Loans to the Borrowers on behalf of all  Lenders, which the Administrative Agent, in its Permitted Discretion, deems necessary or desirable (i) to preserve or protect the applicable Collateral, or any portion thereof, (ii) to enhance the likelihood of, or  maximize the amount of, repayment of the applicable Loans and other applicable Obligations, or (iii) to  pay any other amount chargeable to or required to be paid by the applicable Borrower pursuant to the terms  of this Agreement, including payments of reimbursable expenses (including costs, fees, and expenses as  described in Section 9.03) and other sums payable under the Loan Documents (any of such Loans are herein  referred to as “Protective Advances”); provided that (i) the aggregate principal amount of outstanding  Protective Advances shall not, at any time, exceed (x) 5% of the Aggregate Commitments then in effect or  (y) when aggregated with the aggregate outstanding principal amount of Overadvances, 10% of the  Aggregate Commitments then in effect; provided further that no Protective Advance shall be made if after  giving effect thereto, any Lender’s Revolving Exposure shall exceed such Lender’s Commitment.  Protective Advances may be made even if the conditions precedent set forth in Section 4.02 have not been  satisfied.  The Protective Advances shall be secured by the Liens in favor of the Administrative Agent in  and to the applicable Collateral and shall constitute Obligations hereunder. All Protective Advances shall  be in U.S. Dollars and ABR Borrowings. The Administrative Agent’s authorization to make Protective  Advances may be revoked at any time by the Required Lenders. Any such revocation must be in writing  and shall become effective prospectively upon the Administrative Agent’s receipt thereof. At any time the  making of such Revolving Loan would not violate the Revolving Exposure Limitations and the conditions  precedent set forth in Section 4.02 have been satisfied, the Administrative Agent may request the Lenders  to make a Revolving Loan to repay a Protective Advance. At any other time the Administrative Agent may  require the Lenders to fund their risk participations described in Section 2.04(b).  (b) Upon the making of a Protective Advance by the Administrative Agent (whether before or  after the occurrence of a Default), each Lender shall be deemed, without further action by any party hereto,  to have unconditionally and irrevocably purchased from the Administrative Agent, without recourse or  warranty, an undivided interest and participation in such Protective Advance in proportion to its Applicable  Percentage. From and after the date, if any, on which any Lender is required to fund its participation in any  Protective Advance purchased hereunder, the Administrative Agent shall promptly distribute to such  Lender, such Lender’s Applicable Percentage of all payments of principal and interest and all proceeds of  Collateral received by the Administrative Agent in respect of such Protective Advance; provided that no  Lender holding a Commitment shall be obligated in any event to make Revolving Loans in an amount in  excess of its Commitment minus its Applicable Percentage (taking into account any reallocations under  Section 2.20) of the LC Exposure of all outstanding Letters of Credit. SECTION 2.05 Swingline Loans and Overadvances.  (a) The Administrative Agent, the Swingline Lender and the Lenders agree that in order to  facilitate the administration of this Agreement and the other Loan Documents, promptly after the Borrower  Representative requests a Daily Simple SOFR Loan, the Swingline Lender may, at its election and option  made in its sole discretion cancelable at any time for any reason whatsoever, have the terms of this Section  2.05(a) apply to such Borrowing Request by advancing, on behalf of the Lenders and in the amount  requested, same day funds to the applicable Borrowers, on the date of the applicable Borrowing to the  

 

63 applicable Funding Account(s) (each such Loan made solely by the Swingline Lender pursuant to this  Section 2.05(a) is referred to in this Agreement as a “Swingline Loan”), with settlement among them as to  the Swingline Loans to take place on a periodic basis as set forth in Section 2.05(d). Each Swingline Loan  shall be subject to all the terms and conditions applicable to other Loans funded by the Lenders, except that  all payments thereon shall be payable to the Swingline Lender solely for its own account and such interest  shall be based on Daily Simple SOFR. The aggregate Dollar Amount of Swingline Loans outstanding at  any time drawn under the Borrowing Base, shall not exceed ten percent (10%) of the then applicable  Aggregate Commitments.  The Swingline Lender shall not make any Swingline Loan if, after giving effect  thereto, the Borrowers would not be in compliance with the Revolving Exposure Limitations or if, after  giving effect to such request, the aggregate Dollar Amount of all Swingline Loans outstanding after giving  effect thereto would be greater than the Maximum Credit Amount as in effect on such date. All Swingline  Loans shall be Daily Simple SOFR Loan in U.S. Dollars.  Swingline Lender’s agreement to make Swingline  Loans under this Agreement is cancelable at any time for any reason whatsoever and the making of  Swingline Loans by Swingline Lender from time to time shall not create any duty or obligation, or establish  any course of conduct, pursuant to which Swingline Lender shall thereafter be obligated to make Swingline  Loans in the future.  (b) Any provision of this Agreement to the contrary notwithstanding, at the request of the  Borrower Representative, the Administrative Agent may in its sole discretion (but with absolutely no  obligation), make Revolving Loans to the Borrowers, on behalf of the Lenders, in amounts that exceed  Availability (any such excess Revolving Loans are herein referred to collectively as “Overadvances”);  provided that, no Overadvance shall result in a Default due to Borrowers’ failure to comply with Section  2.01 for so long as such Overadvance remains outstanding in accordance with the terms of this paragraph,  but solely with respect to the amount of such Overadvance; provided, further that the aggregate amount of  outstanding Overadvances shall not, at any time, exceed (x) 5% of the Aggregate Commitments then in  effect or (y) when aggregated with the aggregate outstanding amount of Protective Advances then  outstanding, 10% of the Aggregate Commitments then in effect; provided further that no Overadvance shall  be made if after giving effect thereto, any Lender’s Revolving Exposure shall exceed such Lender’s  Commitment. Overadvances may be made even if the condition precedent set forth in Section 4.02(c) has  not been satisfied. All Overadvances shall be in U.S. Dollars and ABR Borrowings. The Borrowers shall  be required to repay each Overadvance no later than the 30th day after the date of the making thereof. The  Administrative Agent’s authorization to make Overadvances may be revoked at any time by the Required  Lenders. Any such revocation must be in writing and shall become effective prospectively upon the  Administrative Agent’s receipt thereof. (c) Upon the making of a Swingline Loan or an Overadvance (whether before or after the  occurrence of a Default and regardless of whether a Settlement has been requested with respect to such  Swingline Loan or Overadvance), each Lender shall be deemed, without further action by any party hereto,  to have unconditionally and irrevocably purchased from the Swingline Lender or the Administrative Agent,  as the case may be, without recourse or warranty, an undivided interest and participation in such Swingline  Loan or Overadvance in proportion to its Applicable Percentage of the Commitment. The Swingline Lender  or the Administrative Agent may, at any time, require the Lenders to fund their participations. From and  after the date, if any, on which any Lender is required to fund its participation in any Swingline Loan or  Overadvance purchased hereunder, the Administrative Agent shall promptly distribute to such Lender, such  Lender’s Applicable Percentage of all payments of principal and interest and all proceeds of Collateral  received by the Administrative Agent in respect of such Loan; provided that no Lender holding a  Commitment shall be obligated in any event to make Revolving Loans in an amount in excess of its  Commitment minus its Applicable Percentage (taking into account any reallocations under Section 2.20) of the LC Exposure of all outstanding Letters of Credit.  

 

64 (d) The Administrative Agent, on behalf of the Swingline Lender, shall request settlement (a  “Settlement”) with the Lenders on at least a weekly basis or on any date that the Administrative Agent  elects or that Swingline Lender at its own option exercisable for any reason may request, by notifying the  Lenders of such requested Settlement by facsimile, telephone, or electronic transmission no later than 3:00  p.m. on the date of such requested Settlement (the “Settlement Date”). Each Lender (other than the  Swingline Lender, in the case of the Swingline Loans) shall transfer the amount of such Lender’s Applicable  Percentage of the outstanding principal amount of the applicable Loan (plus interest accrued thereon to the  extent requested by Administrative Agent) with respect to which Settlement is requested to the  Administrative Agent, to such account of the Administrative Agent as the Administrative Agent may  designate, not later than 5:00 p.m. on such Settlement Date if requested by 3:00 p.m., otherwise not later  than 5:00 p.m. the next Business Day. Settlements may occur during the existence of a Default and whether  or not the applicable conditions precedent set forth in Section 4.02 have then been satisfied or the  Commitments have otherwise been terminated. Such amounts transferred to the Administrative Agent shall  be applied against the amounts of the Swingline Lender’s Swingline Loans and, together with Swingline  Lender’s Applicable Percentage of such Swingline Loan, shall constitute Revolving Loans of such Lenders,  respectively. If any such amount is not transferred to the Administrative Agent by any Lender on such  Settlement Date, the Swingline Lender shall be entitled to recover from such Lender on demand such  amount, together with interest thereon, as specified in Section 2.07.  SECTION 2.06 Letters of Credit.  (a) General.  Subject to the terms and conditions hereof, on and after the Closing Date, an  Issuing Bank shall issue or cause the issuance of standby and/or commercial letters of credit denominated  in U.S. Dollars (“Letters of Credit”) for the account of any Borrower, either for its support or the support  of any of its Restricted Subsidiaries’ obligations, so long as, after the issuance thereof, (i) the LC Exposure  shall not exceed $90,000,000, (ii) LC Exposure of any Issuing Bank shall not exceed such Issuing Bank’s  LC Individual Sublimit, and (iii) the Borrowers will be in compliance with the Revolving Exposure  Limitations.  All disbursements or payments related to Letters of Credit shall be deemed to be Revolving  Loans and shall bear interest at the Applicable Rate for ABR Loans.  Letters of Credit that have not been  drawn upon shall not bear interest (but fees shall accrue in respect of outstanding Letters of Credit as  provided in Section 2.12(b) hereof). Notwithstanding any other provision of this Agreement, no Issuing  Bank shall be under any obligation to issue any Letter of Credit if (i) any order, judgment or decree of any  Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the Issuing Bank from  issuing any Letter of Credit, or any law applicable to the Issuing Bank or any request or directive (whether  or not having the force of law) from any Governmental Authority with jurisdiction over the Issuing Bank  shall prohibit, or request that the Issuing Bank refrain from, the issuance of letters of credit generally or the  Letter of Credit in particular or shall impose upon the Issuing Bank with respect to the Letter of Credit any  restriction, reserve or capital requirement (for which the Issuing Bank is not otherwise compensated  hereunder) not in effect on the date of this Agreement, or shall impose upon the Issuing Bank any  unreimbursed loss, cost or expense which was not applicable on the date of this Agreement, and which the  Issuing Bank in good faith deems material to it, or (ii) the issuance of the Letter of Credit would violate one or more policies of the Issuing Bank applicable to letters of credit generally. Each Borrower unconditionally  and irrevocably agrees that, in connection with any Letter of Credit issued for the support of any Restricted  Subsidiary’s obligations as provided in the first sentence of this paragraph, such Borrower will be fully  responsible for the reimbursement of LC Disbursements in accordance with the terms hereof, the payment  of interest thereon and the payment of fees due under this Agreement to the same extent as if it were the  sole account party in respect of such Letter of Credit (such Borrower hereby irrevocably waiving any  defenses that might otherwise be available to it as a guarantor or surety of the obligations of such Restricted  Subsidiary that is an account party in respect of any such Letter of Credit). (b) Issuance of Letters of Credit. 

 

65 (i) Borrower Representative, on behalf of any Borrower, either for the support of any  obligations of any Borrower’s or any Restricted Subsidiary thereof, may request an Issuing Bank  to issue or cause the issuance, amendment, or extension of a Letter of Credit by delivering to the  Issuing Bank, with a copy to Administrative Agent at the Payment Office, prior to 1:00 p.m., at  least five (5) Business Days prior to the proposed date of issuance, amendment, or extension (or  such shorter period as may be agreed to by the Issuing Bank and Administrative Agent), such  Issuing Bank’s form of Letter of Credit Application (the “Letter of Credit Application”) completed  to the satisfaction of Administrative Agent and the Issuing Bank (which shall include, among other  things, the amount of such Letter of Credit); and, such other certificates, documents and other  papers and information as Administrative Agent or the Issuing Bank may reasonably request.  No  Issuing Bank shall issue any requested Letter of Credit if such Issuing Bank has received notice at  least one day prior to the requested date of issuance, amendment or extension of the applicable  Letter of Credit, from Administrative Agent or any Lender that one or more of the applicable  conditions set forth in Section 4.02 of this Agreement have not been satisfied or the commitments  of Lenders to make Revolving Loans hereunder have been terminated for any reason. (ii) Each Letter of Credit shall, among other things, (i) provide for the payment of sight  drafts, other written demands for payment, or acceptances of usance drafts when presented for  honor thereunder in accordance with the terms thereof and when accompanied by the documents  described therein and (ii) have an expiry date not later than twelve (12) months after such Letter of  Credit’s date of issuance, provided that a Letter of Credit may include a provision for the automatic  extension of the Letter of Credit, but in no event expire later than the Maturity Date (except that a  Letter of Credit may expire up to one year beyond the Expiration Date if such Letter of Credit has  been Cash Collateralized on or prior to date of issuance thereof).  Each standby Letter of Credit  shall be subject either to the Uniform Customs and Practice for Documentary Credits as most  recently published by the International Chamber of Commerce at the time a Letter of Credit is  issued (the “UCP”) or the International Standby Practices (International Chamber of Commerce  Publication Number 590) (the “ISP98 Rules”), or any subsequent revision thereof at the time a  standby Letter of Credit is issued, as determined by Issuing Bank, and each commercial Letter of  Credit shall be subject to the UCP. In addition, no commercial Letter of Credit may permit the  presentation of an ocean bill of lading that includes a condition that the original bill of lading is not  required to claim the goods shipped thereunder. (iii) Administrative Agent shall use its reasonable efforts to notify Lenders of the  request by Borrower Representative for a Letter of Credit hereunder. (c) Requirements For Issuance of Letters of Credit. (i) Borrower Representative shall authorize and direct any Issuing Bank to name the  applicable Borrower as the “Applicant” or “Account Party” of each Letter of Credit.  If  Administrative Agent is not the Issuing Bank of any Letter of Credit, Borrower Representative shall  authorize and direct the applicable Issuing Bank to deliver to Administrative Agent all instruments,  documents, and other writings and property received by such Issuing Bank pursuant to the Letter  of Credit and to accept and rely upon Administrative Agent’s instructions and agreements with  respect to all matters arising in connection with the Letter of Credit, and the application therefor. (ii) In connection with all commercial Letters of Credit issued or caused to be issued  by an Issuing Bank under this Agreement, each Borrower hereby appoints the Issuing Bank, or its  designee, as its attorney, with full power and authority if an Event of Default shall have occurred  and for as long as such Event of Default is continuing: (i) to sign and/or endorse such Borrower’s  name upon any warehouse or other receipts, and acceptances; (ii) to sign such Borrower’s name on  

 

66 bills of lading; (iii) to clear Inventory through the United States of America Customs Department  (“Customs”) in the name of such Borrower or Issuing Bank or Issuing Bank’s designee, and to sign  and deliver to Customs officials powers of attorney in the name of such Borrower for such purpose;  and (iv) to complete in such Borrower’s name or Issuing Bank’s, or in the name of Issuing Bank’s  designee, any order, sale or transaction, obtain the necessary documents in connection therewith,  and collect the proceeds thereof.  Neither Administrative Agent, Issuing Bank nor their attorneys  will be liable for any acts or omissions nor for any error of judgment or mistakes of fact or law  taken in accordance with this Section 2.06, except for Administrative Agent’s, Issuing Bank’s or  their respective attorney’s gross negligence or willful misconduct (as determined by a court of  competent jurisdiction in a final non-appealable judgment).  This power, being coupled with an  interest, is irrevocable as long as any Letters of Credit remain outstanding. (d) Disbursements, Reimbursement. (i) Immediately upon the issuance of each Letter of Credit, each Lender shall be  deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Issuing Bank  a participation in such Letter of Credit and each drawing thereunder in an amount equal to such  Lender’s Applicable Percentage of the LC Exposure (as in effect from time to time) and the amount  of such drawing, respectively. (ii) In the event of any request for a drawing under a Letter of Credit by the beneficiary  or transferee thereof, the Issuing Bank will promptly notify Administrative Agent and Borrower  Representative.  Regardless of whether Borrower Representative shall have received such notice,  Borrowers shall reimburse (such obligation to reimburse Issuing Bank shall sometimes be referred  to as a “Reimbursement Obligation”) Issuing Bank prior to 1:00 p.m., New York time, on each date  that an amount is paid by Issuing Bank under any Letter of Credit (each such date, a “Drawing  Date”) in an amount equal to such LC Disbursement so paid by the Issuing Bank.  In the event the  Borrowers fail to reimburse Issuing Bank for the full amount of any drawing under any Letter of  Credit by 1:00 p.m., New York time, on the Drawing Date, Issuing Bank will promptly notify  Administrative Agent and each Lender holding a Commitment thereof, and Borrowers shall be  automatically deemed to have requested that a Revolving Loan in an amount equal to such payment  to be maintained as an ABR Loan be made by Lenders to be disbursed on the Drawing Date under  such Letter of Credit, and Lenders holding the Commitments shall be unconditionally obligated to  fund such Revolving Loan (all whether or not the conditions specified in Section 4.02 are then  satisfied or the commitments of Lenders to make Revolving Loans hereunder have been terminated  for any reason) as provided for in Section 2.06(d)(iii) below.  Any notice given by Issuing Bank  pursuant to this Section 2.06(d)(ii) may be oral if promptly confirmed in writing; provided that the  lack of such a confirmation shall not affect the conclusiveness or binding effect of such notice. (iii) Each Lender holding a Commitment shall upon any notice pursuant to Section  2.06(d)(ii) make available to Issuing Bank through Administrative Agent at the Payment Office an  amount in immediately available funds equal to its Applicable Percentage (subject to any contrary  provisions of Section 2.20) of the amount of the drawing, whereupon the participating Lenders  shall (subject to Section 2.06(d)(iv)) each be deemed to have made a Revolving Loan maintained  as an ABR Loan to Borrowers in that amount.  If any Lender holding a Commitment so notified  fails to make available to Administrative Agent, for the benefit of Issuing Bank, the amount of such  Lender’s Applicable Percentage of such amount by 2:00 p.m. on the Drawing Date, then interest  shall accrue on such Lender’s obligation to make such payment, from the Drawing Date to the date  on which such Lender makes such payment (1) at a rate per annum equal to the Overnight Bank  Funding Rate during the first three (3) days following the Drawing Date and (2) at a rate per annum  equal to the rate applicable to Revolving Loans maintained as an ABR Loan on and after the fourth  

 

67 day following the Drawing Date.  Administrative Agent and Issuing Bank will promptly give notice  of the occurrence of the Drawing Date, but failure of Administrative Agent or Issuing Bank to give  any such notice on the Drawing Date or in sufficient time to enable any Lender holding a  Commitment to effect such payment on such date shall not relieve such Lender from its obligations  under this Section 2.06(d)(iii), provided that such Lender shall not be obligated to pay interest as  provided in Section 2.06(d)(iii)(1) and (2) until and commencing from the date of receipt of notice  from Administrative Agent or Issuing Bank of a drawing. (iv) With respect to any unreimbursed drawing that is not converted into a Revolving  Loan maintained as an ABR Loan to Borrowers in whole or in part as contemplated by Section  2.06(d)(ii), for any reason, Borrowers shall be deemed to have incurred from Administrative Agent  a borrowing (each a “Letter of Credit Borrowing”) in the amount of such drawing.  Such Letter of  Credit Borrowing shall be due and payable on demand (together with interest) and shall bear  interest at the rate per annum applicable to a Revolving Loan maintained as an ABR Loan.  Each  applicable Lender’s payment to Administrative Agent pursuant to Section 2.06(d)(iii) shall be  deemed to be a payment in respect of its participation in such Letter of Credit Borrowing and shall  constitute a “Participation Advance” from such Lender in satisfaction of its obligation to participate  in respect of the applicable Letter of Credit under this Section 2.06(d). (v) Each applicable Lender’s obligations hereunder to participate in respect of the  Letters of Credit shall continue until the last to occur of any of the following events: (x) Issuing  Bank ceases to be obligated to issue or cause to be issued Letters of Credit hereunder; (y) no Letter  of Credit issued or created hereunder remains outstanding and uncancelled; and (z) all Persons have  been fully reimbursed for all payments made under or relating to Letters of Credit. (e) Repayment of Participation Advances.  Upon (and only upon) receipt by Administrative  Agent for the account of Issuing Bank of immediately available funds from Borrowers (i) in reimbursement  of any payment made by Issuing Bank or Administrative Agent under the Letter of Credit with respect to  which any Lender has made a Participation Advance to Administrative Agent, or (ii) in payment of interest  on such a payment made by Issuing Bank or Administrative Agent under such a Letter of Credit,  Administrative Agent will pay to each Lender holding a Commitment, in the same funds as those received  by Administrative Agent, the amount of such Lender’s Applicable Percentage of such funds, except  Administrative Agent shall retain the amount of the Applicable Percentage of such funds of any Lender  holding a Commitment that did not make a Participation Advance in respect of such payment by  Administrative Agent (and, to the extent that any of the other Lender(s) holding the Commitment have  funded any portion of such Defaulting Lender’s Participation Advance in accordance with the provisions  of Section 2.20, Administrative Agent will pay over to such non-Defaulting Lenders a pro rata portion of  the funds so withheld from such Defaulting Lender).  If Issuing Bank or Administrative Agent is required  at any time to return to any such Borrower, or to a trustee, receiver, liquidator, custodian, or any official in  any insolvency proceeding, any portion of the payments made by such Borrowers to Issuing Bank or  Administrative Agent pursuant to Section 2.06(e) in reimbursement of a payment made under the Letter of  Credit or interest or fee thereon, each applicable Lender shall, on demand of Administrative Agent,  forthwith return to Issuing Bank or Administrative Agent the amount of its Applicable Percentage of any  amounts so returned by Issuing Bank or Administrative Agent plus interest at the Overnight Bank Funding Rate. (f) Documentation.  Each Borrower agrees to be bound by the terms of the Letter of Credit  Application and by Issuing Bank’s interpretations of any Letter of Credit issued on behalf of such Borrower  and by Issuing Bank’s written regulations and customary practices relating to letters of credit, though  Issuing Bank’s interpretations may be different from such Borrower’s own.  In the event of a conflict  between the Letter of Credit Application and this Agreement, this Agreement shall govern.  It is understood  

 

68 and agreed that, except in the case of gross negligence or willful misconduct (as determined by a court of  competent jurisdiction in a final non-appealable judgment), Issuing Bank shall not be liable for any error,  negligence and/or mistakes, whether of omission or commission, in following Borrower Representative’s  or any Borrower’s instructions or those contained in the Letters of Credit or any modifications, amendments  or supplements thereto. (g) Determination to Honor Drawing Request.  In determining whether to honor any request  for drawing under any Letter of Credit by the beneficiary thereof, Issuing Bank shall be responsible only to  determine that the documents and certificates required to be delivered under such Letter of Credit have been  delivered and that they comply on their face with the requirements of such Letter of Credit and that any  other drawing condition appearing on the face of such Letter of Credit has been satisfied in the manner so  set forth. (h) Nature of Participation and Reimbursement Obligations.  The obligation of each Lender  holding a Revolving Commitment in accordance with this Agreement to make the Revolving Loans or  Participation Advance as a result of a drawing under a Letter of Credit, and the obligations of Borrowers to  reimburse Issuing Bank upon a draw under a Letter of Credit, shall be absolute, unconditional and  irrevocable, and shall be performed strictly in accordance with the terms of this Section 2.06(h) under all  circumstances, including the following circumstances: (i) any set-off, counterclaim, recoupment, defense or other right which such Lender  or any Borrower, as the case may be, may have against Issuing Bank, Administrative Agent, any  Borrower or Lender, as the case may be, or any other Person for any reason whatsoever; (ii) the failure of any Borrower or any other Person to comply, in connection with a  Letter of Credit Borrowing, with the conditions set forth in this Agreement for the making of a  Revolving Loan, it being acknowledged that such conditions are not required for the making of a  Letter of Credit Borrowing and the obligation of Lenders to make Participation Advances under  Section 2.06(d);  (iii) any lack of validity or enforceability of any Letter of Credit; (iv) any claim of breach of warranty that might be made by any Borrower,  Administrative Agent, Issuing Bank or any Lender against the beneficiary of a Letter of Credit, or  the existence of any claim, set-off, recoupment, counterclaim, cross-claim, defense or other right  which any Borrower, Administrative Agent, Issuing Bank or any Lender may have at any time  against a beneficiary, any successor beneficiary or any transferee of any Letter of Credit or assignee  of the proceeds thereof (or any Persons for whom any such transferee or assignee may be acting),  Issuing Bank, Administrative Agent or any Lender or any other Person, whether in connection with  this Agreement, the transactions contemplated herein or any unrelated transaction (including any  underlying transaction between any Borrower or any Restricted Subsidiaries of such Borrower and  the beneficiary for which any Letter of Credit was procured); (v) the lack of power or authority of any signer of (or any defect in or forgery of any  signature or endorsement on) or the form of or lack of validity, sufficiency, accuracy, enforceability  or genuineness of any draft, demand, instrument, certificate or other document presented under or  in connection with any Letter of Credit, or any fraud or alleged fraud in connection with any Letter  of Credit, or the transport of any property or provision of services relating to a Letter of Credit, in  each case even if Issuing Bank or any of Issuing Bank’s Affiliates has been notified thereof; 

 

69 (vi) payment by Issuing Bank under any Letter of Credit against presentation of a  demand, draft or certificate or other document which is forged or does not fully comply with the  terms of such Letter of Credit (provided that the foregoing shall not excuse Issuing Bank from any  obligation under the terms of any applicable Letter of Credit to require the presentation of  documents that on their face appear to satisfy any applicable requirements for drawing under such  Letter of Credit prior to honoring or paying any such draw);  (vii) the solvency of, or any acts or omissions by, any beneficiary of any Letter of  Credit, or any other Person having a role in any transaction or obligation relating to a Letter of  Credit, or the existence, nature, quality, quantity, condition, value or other characteristic of any  property or services relating to a Letter of Credit; (viii) any failure by Issuing Bank or any of Issuing Bank’s Affiliates to issue any Letter  of Credit in the form requested by Borrower Representative, unless Administrative Agent and  Issuing Bank have each received written notice from Borrower Representative of such failure  within six (6) Business Days after Issuing Bank shall have furnished Administrative Agent and  Borrower Representative a copy of such Letter of Credit and such error is material and no drawing  has been made thereon prior to receipt of such notice;  (ix) the occurrence of any Material Adverse Effect; (x) any breach of this Agreement or any other Loan Document by any party thereto;  (xi) the occurrence or continuance of an insolvency proceeding with respect to any  Borrower or any Guarantor;  (xii) the fact that a Default or an Event of Default shall have occurred and be continuing; (xiii) the fact that it may be past the Maturity Date, or the fact that this Agreement or the  obligations of Lenders to make Revolving Loans have been terminated; and (xiv) any other circumstance or happening whatsoever, whether or not similar to any of  the foregoing. (i) Liability for Acts and Omissions. (i) As between Borrowers and Issuing Bank, Swingline Lender, Administrative Agent  and Lenders, each Borrower assumes all risks of the acts and omissions of, or misuse of the Letters  of Credit by, the respective beneficiaries of such Letters of Credit.  In furtherance and not in  limitation of the foregoing, Issuing Bank shall not be responsible for: (i) the form, validity,  sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in  connection with the application for an issuance of any such Letter of Credit, even if it should in  fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged (even if  Issuing Bank or any of its Affiliates shall have been notified thereof); (ii) the validity or sufficiency  of any instrument transferring or assigning or purporting to transfer or assign any such Letter of  Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove  to be invalid or ineffective for any reason; (iii) the failure of the beneficiary of any such Letter of  Credit, or any other party to which such Letter of Credit may be transferred, to comply fully with  any conditions required in order to draw upon such Letter of Credit or any other claim of any  Borrower against any beneficiary of such Letter of Credit, or any such transferee, or any dispute  between or among any Borrower and any beneficiary of any Letter of Credit or any such transferee;  

 

70 (iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail,  cable, facsimile, telex or otherwise, whether or not they be in cipher; (v) errors in interpretation of  technical terms; (vi) any loss or delay in the transmission or otherwise of any document required  in order to make a drawing under any such Letter of Credit or of the proceeds thereof; (vii) the  misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under  such Letter of Credit; or (viii) any consequences arising from causes beyond the control of Issuing  Bank, including any act or omission, whether rightful or wrongful, of any present or future de jure  or de facto Governmental Authority, and none of the above shall affect or impair, or prevent the  vesting of, any of Issuing Bank’s rights or powers hereunder.  Nothing in the preceding sentence  shall relieve Issuing Bank from liability for Issuing Bank’s gross negligence or willful misconduct  (as determined by a court of competent jurisdiction in a final non-appealable judgment) in  connection with actions or omissions described in such clauses (i) through (viii) of such sentence.   In no event shall Issuing Bank or Issuing Bank’s Affiliates be liable to any Borrower for any  indirect, consequential, incidental, punitive, exemplary or special damages or expenses (including  without limitation attorneys’ fees), or for any damages resulting from any change in the value of  any property relating to a Letter of Credit. (ii) Without limiting the generality of the foregoing, Issuing Bank and each of its  Affiliates:  (i) may rely on any oral or other communication believed in good faith by Issuing Bank  or such Affiliate to have been authorized or given by or on behalf of the applicant for a Letter of  Credit; (ii) may honor any presentation if the documents presented appear on their face  substantially to comply with the terms and conditions of the relevant Letter of Credit; (iii) may  honor a previously dishonored presentation under a Letter of Credit, whether such dishonor was  pursuant to a court order, to settle or compromise any claim of wrongful dishonor, or otherwise,  and shall be entitled to reimbursement to the same extent as if such presentation had initially been  honored, together with any interest paid by Issuing Bank or its Affiliates; (iv) may honor any  drawing that is payable upon presentation of a statement advising negotiation or payment, upon  receipt of such statement (even if such statement indicates that a draft or other document is being  delivered separately), and shall not be liable for any failure of any such draft or other document to  arrive, or to conform in any way with the relevant Letter of Credit; (v) may pay any paying or  negotiating bank claiming that it rightfully honored under the laws or practices of the place where  such bank is located; and (vi) may settle or adjust any claim or demand made on Issuing Bank or  its Affiliate in any way related to any order issued at the applicant’s request to an air carrier, a letter  of guarantee or of indemnity issued to a steamship agent or carrier or any document or instrument  of like import (each an “Order”) and honor any drawing in connection with any Letter of Credit  that is the subject of such Order, notwithstanding that any drafts or other documents presented in  connection with such Letter of Credit fail to conform in any way with such Letter of Credit.  (iii) In furtherance and extension and not in limitation of the specific provisions set  forth above, any action taken or omitted by Issuing Bank under or in connection with the Letters  of Credit issued by it or any documents and certificates delivered thereunder, if taken or omitted in  good faith and without gross negligence or willful misconduct (as determined by a court of  competent jurisdiction in a final non-appealable judgment), shall not put Issuing Bank under any  resulting liability to any Borrower, Administrative Agent or any Lender.  (j) Cash Collateral. If any Event of Default shall occur and be continuing, on the Business  Day that the Borrower Representative receives notice from the Administrative Agent or the Required  Lenders demanding the deposit of cash collateral pursuant to this paragraph, the Borrowers shall Cash  Collateralize all Letters of Credit; provided that the obligation to Cash Collateralize all Letters of Credit  shall become effective immediately, without demand or other notice of any kind, upon the occurrence of  any Event of Default with respect to any Borrower described in clause (e) of Article VII. For the purposes  

 

71 of this Agreement, “Cash Collateralize” shall mean, with respect to any Letter of Credit, the deposit in U.S.  Dollars in an account with the Administrative Agent, in the name of the Administrative Agent and for the  benefit of the Lenders (the “LC Collateral Account”), an amount in cash equal to 105% of the amount of  the LC Exposure in respect of such Letter of Credit issued and outstanding on such date plus accrued and  unpaid interest thereon. Such deposit shall be held by the Administrative Agent as collateral for the payment  and performance of the Secured Obligations. The Administrative Agent shall have exclusive dominion and  control, including the exclusive right of withdrawal, over the LC Collateral Account and the Borrowers  hereby grant the Administrative Agent a security interest in the LC Collateral Account. Other than any  interest earned on the investment of such deposits, which investments shall be made at the option and sole  discretion of the Administrative Agent and at the Borrowers’ risk and expense, such deposits shall not bear  interest. Interest or profits, if any, on such investments shall accumulate in the LC Collateral Account.  Moneys in the LC Collateral Account shall be applied by the Administrative Agent to reimburse the Issuing  Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be  held for the satisfaction of the reimbursement obligations of the Borrowers for the LC Exposure at such  time or, if the maturity of the Loans has been accelerated (but subject to the consent of the Required  Lenders), be applied to satisfy other Secured Obligations. If the Borrowers are required to Cash  Collateralize Letters of Credit solely as a result of the occurrence of an Event of Default, the cash collateral  (to the extent not applied as aforesaid) shall be returned to the Borrowers within three (3) Business Days  after all such Events of Default have been waived as confirmed in writing by the Administrative Agent. (k) Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of Credit issued or  outstanding hereunder is in support of any obligations of, or is for the account of, a Restricted Subsidiary,  the Borrowers shall be obligated to reimburse the applicable Issuing Bank hereunder for any and all  drawings under such Letter of Credit. Each Borrower hereby acknowledges that the issuance of Letters of  Credit requested by such Borrower for the account of Restricted Subsidiaries inures to the benefit of such  Borrower, and that such Borrower’s business derives substantial benefits from the businesses of such  Restricted Subsidiaries. (l) Existing Letters of Credit. Each Existing Letter of Credit shall be deemed to be a Letter of  Credit issued for the account of the Borrowers on the Closing Date for all purposes hereof and of the other  Loan Documents (whether or not a Borrower was the applicant with respect thereto or otherwise responsible  for reimbursement obligations with respect thereto prior to the Closing Date), and no issuance or similar  fees (as distinguished from ongoing participation or fronting fees) will be required in connection with the  deemed issuance of the Existing Letters of Credit on the Closing Date. SECTION 2.07 Funding of Borrowings.  (a) Each Lender shall make each Loan to be made by such Lender hereunder on the proposed  date thereof by wire transfer of immediately available funds by 3:00 p.m., New York time, to the account  of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders in an  amount equal to such Lender’s Applicable Percentage. The Administrative Agent will make such Loans  available to the applicable Borrower by promptly crediting the amounts so received, in like funds, to the  applicable Funding Account; provided that ABR Loans made to finance the reimbursement of (i) an LC  Disbursement as provided in Section 2.06(d) shall be remitted by the Administrative Agent to the applicable  Issuing Bank and (ii) a Protective Advance shall be retained by the Administrative Agent. (b) Unless the Administrative Agent shall have received notice from a Lender prior to the  proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such  Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such  share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon  such assumption, make available to the applicable Borrower a corresponding amount. In such event, if a  

 

72 Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent,  then the applicable Lender and the applicable Borrowers severally agree to pay to the Administrative Agent  forthwith on demand such corresponding amount with interest thereon, for each day from and including the  date such amount is made available to the applicable Borrower to but excluding the date of payment to the  Administrative Agent, at (i) in the case of such Lender, the rate reasonably determined by the  Administrative Agent to be the cost to it of funding such amount or (ii) in the case of the Borrowers, the  interest rate applicable to ABR Loans.  If such Lender does not pay such amount forthwith upon the  Administrative Agent’s demand therefor, the Administrative Agent may make a demand therefor upon the  applicable Borrower, and the applicable Borrower shall pay such interest at the interest rate applicable to  ABR Loans. If such Lender pays such amount to the Administrative Agent, then such amount shall  constitute such Lender’s Loan included in such Borrowing.  Any payment by the applicable Borrower shall  be without prejudice to any claim such Borrower may have against a Lender that shall have failed to make  such payment to the Administrative Agent. SECTION 2.08 Interest Elections. The Borrowers shall pay interest in respect of the outstanding  unpaid principal amount of the Loans as selected by them from the applicable Interest Rate Options  specified below applicable to the Revolving Loans or the Swingline Loans, respectively, it being understood  that, subject to the provisions of this Agreement, the Borrowers may select different Interest Rate Options  and different Interest Periods to apply simultaneously to the Loans comprising different Borrowings and  may convert to or renew one or more Interest Period options with respect to all or any portion of the Loans  comprising any Type; provided that if an Event of Default or Default exists and is continuing, the Borrowers  may not request, convert to, or renew the Term Rate Loan Option, or Daily Simple RFR Option for any  Loans and the Required Lenders may demand that all existing Borrowings (i) denominated in U.S. Dollars  bearing interest under shall be converted immediately to an ABR Loan and (ii) denominated in an  Alternative Currency shall either (x) in relation to Term Rate Loans, (A) be converted to an ABR Loan  denominated in U.S. Dollars (in an amount equal to the Dollar Amount of such Alternative Currency) at  the end of the Interest Period therefor or (B) be prepaid at the end of the applicable Interest Period in full,  subject to the obligation of the Borrowers to pay any indemnity under Section 2.16 in connection with such  conversion; or (y) in relation to Daily Rate Loans, be converted immediately to an ABR Loan denominated  in U.S. Dollars (in an amount equal to the Dollar Amount of such Alternative Currency).  If at any time the  designated rate applicable to any Loan made by any Lender exceeds such Lender’s highest lawful rate, the  rate of interest on such Lender’s Loan shall be limited to such Lender’s highest lawful rate. The applicable  Alternate Base Rate, Term SOFR Rate, Daily Simple SOFR, Daily Simple RFR, or Term RFR shall be  determined by the Administrative Agent in accordance with this Agreement, and such determination shall  be conclusive absent manifest error. Interest on the principal amount of each Loan denominated in an  Alternative Currency shall be paid by the Borrowers in such Alternative Currency. (a) Revolving Credit Interest Rate Options.  The Borrowers shall have the right to select  from the following Interest Rate Options applicable to the Revolving Loans: (i) Revolving Loan Term Rate Loan Options:  (A) Term SOFR Rate Option. In the case of Term SOFR Rate Loans  denominated in U.S. Dollars, a rate per annum (computed on the basis of a year of 360  days and actual days elapsed) equal to the Term SOFR Rate as determined for each  applicable Interest Period plus the SOFR Adjustment for the applicable Interest Period plus  the Applicable Rate; or  (B) Eurocurrency Rate Option. In the case of Eurocurrency Rate  Loans denominated in Canadian Dollars, a rate per annum (computed on the basis of a year  of 360 days and actual days elapsed, except that interest on Eurocurrency Rate Loans  

 

73 denominated in Canadian Dollars as to which market practice differs from the foregoing  shall be computed in accordance with market practice for such Loans) equal to the  Eurocurrency Rate for such Currency as determined for each applicable Interest Period  plus the Applicable Rate;  (C) Term RFR Option. On and after the Term RFR Transition Date  with respect to any applicable Alternative Currency, in the case of Loans denominated in  any Alternative Currency that bear interest based on Term RFR, a rate per annum  (computed on the basis of a year of 360 days and actual days elapsed, except that interest  on Loans denominated in Alternative Currencies as to which market practice differs from  the foregoing shall be computed in accordance with market practice for such Loans) equal  to the Term RFR for such Alternative Currency as determined for each applicable Interest  Period plus the RFR Adjustment plus the Applicable Rate.  (b) Revolving Loan Daily Rate Loan Options: (A) ABR Loans. In the case of ABR Loans denominated in U.S.  Dollars, a fluctuating rate per annum (computed on the basis of a year of 365 or 366 days,  as the case may be, and actual days elapsed) equal to the Alternate Base Rate plus the  Applicable Rate, such interest rate to change automatically from time to time effective as  of the effective date of each change in the Alternate Base Rate; or (B) Daily Simple RFR Option. Prior to the Term RFR Transition Date  with respect to Loans that bear interest at a rate based on Daily Simple RFR denominated  in Euro, a fluctuating rate per annum (computed on the basis of a year of 360 days and  actual days elapsed, except that interest on Loans denominated in Euro, as to which market  practice differs from the foregoing shall be computed in accordance with market practice  for such Loans) equal to the Daily Simple RFR for such Currency plus the RFR Adjustment  plus the Applicable Rate, such interest rate to change automatically from time to time  effective as of the effective date of each change in the applicable Daily Simple RFR. (c) Swingline Loan Interest Rate.  All Swingline Loans shall be denominated in U.S. Dollars, and accrue interest at a fluctuating rate per annum (computed on the basis of a year of 360 days and actual  days elapsed) equal to the Daily Simple SOFR plus the SOFR Adjustment plus the Applicable Rate, such  interest rate to change automatically from time to time effective as of the effective date of each change in  Daily Simple SOFR. (d) Rate Quotations.  The Borrowers may call the Administrative Agent on or before the date  on which an Interest Election Request is to be delivered to receive an indication of the rates then in effect,  but it is acknowledged that such projection shall not be binding on the Administrative Agent or the Lenders  nor affect the rate of interest which thereafter is actually in effect when the election is made.  (e) Conforming Changes Relating to Term SOFR, Daily Simple SOFR, Daily Simple RFR  or Term RFR. With respect to the Term SOFR, Daily Simple SOFR, the Eurocurrency Rate, Daily Simple  RFR or Term RFR, the Administrative Agent will have the right to make Conforming Changes from time  to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any  amendments implementing such Conforming Changes will become effective without any further action or  consent of any other party to this Agreement or any other Loan Document; provided that, the Administrative  Agent shall provide notice to the Borrowers and the Lenders of each such amendment implementing such  Conforming Changes reasonably promptly after such amendment becomes effective. 

 

74 (f) At any time when the Borrowers shall convert to or renew a Term Rate Loan Option, the  Borrowers shall notify the Administrative Agent thereof by delivering an Interest Election Request at least  (i) for a Term SOFR Rate Option with respect to Revolving Loans denominated in U.S. Dollars, three (3)  Business Days prior to the effective date, and (ii) for a Eurocurrency Rate Option or a Term RFR Option, in all cases, with respect to Revolving Loans denominated in Alternative Currencies, four (4) Business  Days prior to the effective date.  The notice shall specify an Interest Period during which such Interest Rate  Option shall apply.  Notwithstanding the preceding sentence, the following provisions shall apply to any  selection of, renewal of, or conversion to a Term Rate Loan Option:  (g) Renewals.  In the case of the renewal of a Term Rate Loan Option at the end of an Interest  Period, the first day of the new Interest Period shall be the last day of the preceding Interest Period, without  duplication in payment of interest for such day. (h) No Conversion of Alternative Currency Loans. No Loan denominated in any Currency may  be converted into a Loan of a different Interest Period, Type, or a Loan denominated in a different Currency, except as otherwise provided herein.  SECTION 2.09 Termination and Reduction of Commitments; Increase in Commitments.  (a) Unless previously terminated the Commitments shall terminate on the Maturity Date. (b) The Borrowers may at any time terminate the Commitments upon (i) the payment in full  in cash of all outstanding Loans, together with accrued and unpaid interest thereon and on any LC Exposure,  (ii) the cancellation and return of all outstanding Letters of Credit (or alternatively, with respect to each  such Letter of Credit, the Cash Collateralization (or, at the discretion of the Administrative Agent, a back- up standby letter of credit satisfactory to the Administrative Agent and the Issuing Bank) of all outstanding  Letters of Credit, (iii) the payment in full in cash of the accrued and unpaid fees, and (iv) the payment in  full in cash of all reimbursable expenses and other Secured Obligations, together with accrued and unpaid  interest thereon. (c) The Borrowers may from time to time reduce the Commitments; provided that (i) each  reduction of the Commitments shall be in an amount that is an integral multiple of $5,000,000 and (ii) the  Borrowers shall not terminate or reduce the Commitments if, after giving effect to any concurrent  prepayment of the Revolving Loans in accordance with Section 2.11, the Borrowers would not be in  compliance with the Revolving Exposure Limitations.  (d) The Borrower Representative shall notify the Administrative Agent of any election to  terminate or reduce the Commitments under paragraph (b) or (c) of this Section at least three (3) Business  Days prior to the effective date of such termination or reduction, specifying such election and the effective  date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders  of the contents thereof. Each notice delivered by the Borrower Representative pursuant to this Section shall  be irrevocable; provided that a notice of termination of the Commitments delivered by the Borrower  Representative may state that such notice is conditioned upon the effectiveness of other credit facilities, in  which case such notice may be revoked by the Borrower Representative (by notice to the Administrative  Agent on or prior to the specified effective date) if such condition is not satisfied. Any termination or  reduction of the Commitments shall be permanent. Each reduction of the Commitments shall be made  ratably among the Lenders in accordance with their respective Commitments. (e) The Borrowers shall have the right to increase the Commitments by obtaining additional  Commitments, either from one or more of the Lenders or another lending institution provided that (i) any  such request for an increase shall be in a minimum amount of $10,000,000, (ii) the Commitments may be  

 

75 increased pursuant hereto on no more than five (5) occasions, (iii) the aggregate amount of all additional  Commitments obtained under this clause (e) shall not exceed $300,000,000, (iv)  the identity of any such  new Lender shall be acceptable to the Administrative Agent, such approval not to be unreasonably withheld  or delayed, (v) any such new Lender assumes all of the rights and obligations of a “Lender” hereunder, and  (vi) the procedure described in Section 2.09(f) have been satisfied. Nothing contained in this Section 2.09 shall constitute, or otherwise be deemed to be, a commitment on the part of any Lender to increase its  Commitment hereunder at any time.  (f) Any amendment hereto for such an increase or addition shall be in form and substance  reasonably satisfactory to the Administrative Agent and shall only require the written signatures of the  Administrative Agent, the Borrowers and each Lender being added or increasing its Commitment, subject  only to the approval of the Required Lenders if any such increase or addition would cause the Aggregate  Commitments to exceed $1,200,000,000. As a condition precedent to such an increase or addition, the  Borrowers shall deliver to the Administrative Agent (i) a certificate of each Loan Party signed by an  Responsible Officer of such Loan Party (A) certifying and attaching the resolutions adopted by such Loan  Party approving or consenting to such increase, and (B) in the case of the Borrowers, certifying that, before  and after giving effect to such increase or addition, (1) the representations and warranties contained in  Article III and the other Loan Documents are true and correct in all material respects (except that any  representation or warranty which by its terms is made as of a specified date shall be required to be true and  correct in all material respects only as of such specified date, and that any representation or warranty which  is subject to any materiality qualifier shall be required to be true and correct in all respects) and (2) no  Default exists, and (ii) legal opinions and documents consistent with those delivered on the Closing Date,  to the extent reasonably requested by the Administrative Agent. (g) On the effective date of any such increase or addition, (i) any Lender increasing (or, in the  case of any newly added Lender, extending) its Commitment shall make available to the Administrative  Agent such amounts in immediately available funds as the Administrative Agent shall determine, for the  benefit of the other Lenders, as being required in order to cause, after giving effect to such increase or  addition and the use of such amounts to make payments to such other Lenders, each Lender’s portion of  the outstanding Revolving Loans of all the Lenders to equal its revised Applicable Percentage of such  outstanding Revolving Loans, and the Administrative Agent shall make such other adjustments among the  Lenders with respect to the Revolving Loans then outstanding and amounts of principal, interest,  commitment fees and other amounts paid or payable with respect thereto as shall be necessary, in the  opinion of the Administrative Agent, in order to effect such reallocation and (ii) the Borrowers shall be deemed to have repaid and reborrowed all outstanding Revolving Loans as of the date of any increase (or  addition) in the Commitments (with such reborrowing to consist of the Types of Revolving Loans, with  related Interest Periods, if applicable, specified in a notice delivered by the Borrower Representative, in  accordance with the requirements of Section 2.03). The deemed payments made pursuant to clause (ii) of  the immediately preceding sentence shall be accompanied by payment of all accrued interest on the amount  prepaid and shall be subject to indemnification by the Borrowers pursuant to the provisions of Section 2.16 if the deemed payment occurs other than on the last day of the related Interest Periods. Within a reasonable  time after the effective date of any increase or addition, the Administrative Agent shall, and is hereby  authorized and directed to, revise the Commitment Schedule to reflect such increase or addition and shall  distribute such revised Commitment Schedule to each of the Lenders and the Borrower Representative,  whereupon such revised Commitment Schedule shall replace the old Commitment Schedule and become  part of this Agreement.  Additionally, on the effective date of any such increase or addition, the following  dollar floors shall be automatically and proportionately increased (such that the percentage yielded by  dividing such existing dollar floor by the aggregate Commitments, in each case as in effect prior to the  effectiveness of such increased or additional Commitments, is the same as the percentage yielded by  dividing such increased dollar floor by the aggregate Commitments, in each case immediately following  the effectiveness of such increased or additional Commitments):  (i) the dollar floors set forth in the  

 

76 definition of “Covenant Compliance Event”; (ii) the dollar floors set forth in clause (b) of the definition of  “Dominion Period”; (iii) the dollar floors set forth in clauses (i) and (ii) of the definition of “Weekly BBC  Reporting Period”; (iv) the dollar floors set forth in clause (b)(i) of the definition of “Payment Conditions”;  and (v) the dollar floors set forth in Sections 5.07(a) and 5.07(b).  SECTION 2.10 Repayment and Amortization of Loans; Evidence of Debt.  (a) The Borrowers hereby unconditionally promise to pay (i) to the Administrative Agent for  the account of each Lender the then unpaid principal amount of each Revolving Loan on the Maturity Date,  (ii) to the Administrative Agent the then unpaid amount of each Protective Advance on the earlier of the  Maturity Date and demand by the Administrative Agent, and (iii) to the Administrative Agent the then  unpaid principal amount of each Overadvance on the earlier of the Maturity Date and the 30th day after  such Overadvance is made. (b) On each Business Day during any Dominion Period, the Administrative Agent shall apply  all funds credited to a Concentration Account of the Borrowers on such Business Day or the immediately  preceding Business Day (at the discretion of the Administrative Agent, whether or not immediately  available), first, to prepay any Protective Advances and Overadvance that may be outstanding, second, to  prepay the Revolving Loans and Swingline Loans, and third, as the Borrower Representative may direct.  (c) Each Lender shall maintain in accordance with its usual practice an account or accounts  evidencing the Indebtedness of the Borrowers 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.  (d) The Administrative Agent shall maintain accounts in which it shall record (i) the amount  of each Loan made hereunder, the Type thereof and the Interest Period applicable thereto, (ii) the amount  of any principal or interest due and payable or to become due and payable from the Borrowers 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. (e) The entries made in the accounts maintained pursuant to paragraph (c) or (d) of this Section  shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein  shall not in any manner affect the obligation of the Borrowers to repay the Loans in accordance with the  terms of this Agreement. (f) Any Lender (including the Swingline Lender) may request that Loans made by it be  evidenced by a promissory note. In such event, the Borrowers shall execute and deliver to such Lender a  promissory note payable to such Lender (or, if requested by such Lender, to such Lender and its registered  assigns) and in a form approved by the Administrative Agent. Thereafter, the Loans evidenced by such  promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more promissory notes in such form payable to the order of the payee named  therein (or to such payee and its registered assigns). SECTION 2.11 Prepayment of Loans.  (a) The Borrowers shall have the right at any time and from time to time to prepay any  Borrowing in whole or in part, subject to prior notice in accordance with paragraph (c) of this Section and,  if applicable, payment of any break funding expenses under Section 2.16.  

 

77 (b) Except for Overadvances permitted under Section 2.05, in the event and on each occasion  that the Borrowers are not in compliance with the Revolving Exposure Limitations, the Borrowers shall severally prepay the Revolving Loans and/or Swingline Loans (or, if no such Loans are outstanding, Cash  Collateralize outstanding Letters of Credit) of such Borrower(s) in an aggregate amount that, after giving  effect to such prepayments or Cash Collateralization the Borrowers shall be in compliance with the Revolving Exposure Limitations.  (c) The Borrower Representative shall notify the Administrative Agent (and, in the case of  prepayment of a Swingline Loan, the Swingline Lender) by telephone (confirmed by facsimile or email) of  any prepayment hereunder not later than (i) 1:00 p.m., New York time, (i) at least one (1) Business Day  prior to the date of prepayment of the Revolving Loans that bear interest at the rate for ABR Loans; (ii) at  least three (3) Business Days prior to the date of prepayment of the Revolving Loans denominated in U.S.  Dollars that bear interest at the Term SOFR Rate; (iii) at least four (4) Business Days prior to the date of  prepayment of the Revolving Loans denominated in Alternative Currencies that bear interest at the Daily  Simple RFR Option, Term RFR Option or Eurocurrency Rate Option; or (iv) no later than 1:00 p.m. Eastern  Time on the date of prepayment of Swingline Loans. Each such notice shall be irrevocable and shall specify  the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid, as well  as a statement indicating the application of the prepayment among Loans to which the rate for ABR Loans,  the Term SOFR Rate, Daily Simple SOFR, the Daily Simple RFR Option, the Term RFR Option and the  Eurocurrency Rate Option applies; provided if the Borrowers prepay any Loans pursuant to this Section  and fail to specify the application of same, such prepayment shall be applied first to Loans to which the rate  for an ABR Loan applies, then to other Loans denominated in U.S. Dollars, then to Term RFR Loans  denominated in an Alternative Currency, then to all other Loans; provided  further that, if a notice of  prepayment is given in connection with a conditional notice of termination of the Commitments as  contemplated by Section 2.09, then such notice of prepayment may be revoked if such notice of termination  is revoked in accordance with Section 2.09. Promptly following receipt of any such notice relating to a  Revolving Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Each  partial prepayment of any Revolving Borrowing shall be in an amount that would be permitted in the case  of an advance of a Revolving Borrowing of the same Type as provided in Section 2.02. Each prepayment  of a Revolving Borrowing shall be applied ratably to the Revolving Loans included in the prepaid  Borrowing. Prepayments shall be accompanied by (i) accrued interest to the extent required by Section 2.13 and (ii) break funding payments, if any, pursuant to Section 2.16.  (d) Application Among Interest Rate Options. All prepayments required pursuant to this  Section 2.11 shall first be applied among the Interest Rate Options to the principal amount of the Loans  subject to the rate applicable to an ABR Loan, then to other Loans denominated in U.S. Dollars, then to  Loans subject to the Term RFR Option denominated in an Alternative Currency, then to Loans subject to  Daily Simple RFR denominated in an Alternative Currency, then to other Loans denominated in an  Alternative Currency.  In accordance with Section 2.17, the Borrowers shall indemnify the Lenders for any  loss or expense, including loss of margin, incurred with respect to any such prepayments applied against  Loans subject to a Term Rate Option on any day other than the last day of the applicable Interest Period.    SECTION 2.12 Fees.  (a) The Borrowers agree to pay to the Administrative Agent, for the account of each Lender  in accordance with its Applicable Percentage, a commitment fee equal to the 0.20% per annum (the  “Commitment Fee”) multiplied by the actual daily amount of the Available Commitment during the period  from and including the Closing Date to but excluding the date on which the Commitments terminate.  Accrued commitment fees shall be payable in arrears on the first Business Day of each fiscal quarter of the  Company and on the date on which the Commitments terminate, commencing on the first such date to occur  

 

78 after the Closing Date. All commitment fees shall be computed on the basis of a year of 360 days and shall  be payable for the actual number of days elapsed (including the first day but excluding the last day).  (b) The Borrowers shall pay (x) to Administrative Agent, for the ratable benefit of Lenders  holding Commitments, fees for each Letter of Credit for the period from and excluding the date of issuance  of same to and including the date of expiration or termination, equal to with respect to LC Exposure, the  same Applicable Rate used to determine the interest rate applicable to Term SOFR Rate Loans on the  aggregate daily amount of such Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements), to be calculated on the basis of a 360-day year for the actual number of  days elapsed and to be payable quarterly in arrears on the first day of each calendar quarter and on the  Maturity Date, and (y) to Issuing Bank, a fronting fee of 0.125% per annum times the aggregate daily face  amount of each outstanding Letter of Credit for the period from and excluding the date of issuance of same  to and including the date of expiration or termination, to be payable quarterly in arrears on the first day of  each calendar quarter and on the Maturity Date (all of the foregoing fees, the “Letter of Credit Fees”).  In  addition, the Borrowers shall pay to Issuing Bank, for the benefit of such Issuing Bank customary fees and  administrative expenses payable with respect to the Letters of Credit as such Issuing Bank may generally  charge or incur from time to time in connection with the issuance, maintenance, amendment (if any),  assignment or transfer (if any), negotiation, and administration of Letters of Credit, to be payable on  demand.  All such charges shall be deemed earned in full on the date when the same are due and payable  hereunder and shall not be subject to rebate or pro-ration upon the termination of this Agreement for any  reason.  Any such charge in effect at the time of a particular transaction shall be the charge for that  transaction, notwithstanding any subsequent change in Issuing Bank’s prevailing charges for that type of  transaction.  Upon and after the occurrence of an Event of Default, and during the continuation thereof, at  the option of the Administrative Agent or at the direction of Required Lenders (or, in the case of any Event  of Default under clause (e) of Article VII, immediately and automatically upon the occurrence of any such  Event of Default without the requirement of any affirmative action by any party), the Letter of Credit Fees  described in clause (x) of this Section 2.12(b) shall be increased by an additional two percent (2.0%) per  annum; provided that all such fees shall be payable on the date on which the Commitments terminate and  any such fees accruing after the date on which the Commitments terminate shall be payable on demand.  Any other fees payable to the Issuing Bank pursuant to this paragraph shall be payable within 30 days after  demand. (c) The Borrowers agree to pay to the Administrative Agent, for its own account, fees payable  in the amounts and at the times separately agreed upon between the Borrowers and the Administrative  Agent. (d) All fees payable hereunder shall be paid on the dates due and shall be paid in U.S. Dollars,  in immediately available funds, to the Administrative Agent (or to an Issuing Bank, in the case of fees  payable to it) for distribution, in the case of commitment fees and participation fees, to the Lenders.  (e) Upon payment, such fees in this Section 2.12 shall not be refundable under any  circumstances, absent manifest error in calculation. SECTION 2.13 Interest.  (a) Each Revolving Loan and each Swingline Loan shall bear interest at the rate applicable to  the relevant Interest Rate Option for such Loan in accordance with Section 2.08.  (b) Each Protective Advance and each Overadvance shall bear interest at the rate applicable to  ABR Loans denominated in U.S. Dollars in accordance with Section 2.08.  

 

79 (c) Notwithstanding the foregoing, upon the occurrence and during the continuance of an  Event of Default, the Administrative Agent or the Required Lenders may, at their option, by notice to the  Borrower Representative, declare that (i) all Loans shall bear interest at 2% plus the rate otherwise  applicable to such Loans as provided in the preceding paragraphs of this Section or (ii) in the case of any  Letter of Credit Fees outstanding hereunder, such amount shall accrue at 2% plus the rate applicable to such  Letter of Credit Fees as provided hereunder, in each case, from the date such Event of Default occurred  until the date such Event of Default is waived in writing in accordance herewith; provided, that (x) the  default rate of interest set forth in this clause (d) shall apply automatically and without notice to the  Borrower Representative upon the occurrence and during the continuance of any Event of Default under  clauses (a) or (e) of Article VII and (y) application of the default rate of interest pursuant to this clause (d)  may be revoked at the option of the Required Lenders notwithstanding any provision of Section 9.02 requiring the consent of “each Lender affected thereby” for reductions in interest rates. (d) As to all Loans, interest shall be due and payable in arrears on each Interest Payment Date; provided that (i) interest accrued pursuant to paragraph (e) of this Section shall be payable on demand,  (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Loan  prior to the end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall  be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any  Loans prior to the end of the current Interest Period therefor, if applicable, accrued interest on such Loan  shall be payable on the effective date of such conversion). Interest shall be computed to, but excluding, the  date payment is due.  (e) If the Borrower Representative fails to select a new Interest Period to apply to any  Borrowing of Loans in U.S. Dollars under any Term Rate Loan Option at the expiration of an existing  Interest Period applicable to such Borrowing in accordance with the provisions of Section 2.08, the  Borrower Representative shall be deemed to have converted such Borrowing to the an ABR Loan, as  applicable to Revolving Loans, commencing upon the last day of the existing Interest Period. If the  Borrower Representative fails to select a new Interest Period to apply to any Borrowing of Loans in an  Alternative Currency under any Term Rate Loan Option at the expiration of an existing Interest Period  applicable to such Borrowing in accordance with the provisions of Section 2.08 then, unless such Borrowing  is repaid as provided herein, the Borrower Representative shall be deemed to have selected that such  Borrowing shall automatically be continued under the applicable Term Rate Loan Option in its original  Currency with an Interest Period of one (1) month at the end of such Interest Period. If the Borrower  Representative provides any Borrowing Request related to a Loan at the Term SOFR Rate Option, or on  and after the Term RFR Transition Date with respect to any Alternative Currency, the Term RFR Option  for such Alternative Currency, but fails to identify an Interest Period therefor, such Borrowing Request  shall be deemed to request an Interest Period of one (1) month. Any Borrowing Request that fails to select  an Interest Rate Option shall be deemed to be a request for an ABR Loan. If no election as to Currency is  specified in the applicable Borrowing Request, then the requested Loans shall be made in U.S. Dollars. SECTION 2.14 Rate Unascertainable; Increased Costs; Deposits Not Available; Illegality;  Benchmark Replacement Setting. (a) Unascertainable; Increased Costs; Deposits Not Available. If at any time:  (i) on or prior to the first day of an Interest Period, the Administrative Agent shall  have determined (which determination shall be conclusive and binding absent manifest error) that  (x) the Term SOFR Rate, Daily Simple SOFR, Daily Simple RFR, Eurocurrency Rate or Term  RFR applicable to a Loan (in each case whether in U.S. Dollars or an Alternative Currency) cannot  be determined pursuant to the definition thereof, including, without limitation, because such rate  for the corresponding applicable Currency is not available or published on a current basis or (y) a  

 

80 fundamental change has occurred in the foreign exchange or interbank markets with respect to such  Currency or with respect to such rate (including, without limitation, changes in national or  international financial, political or economic conditions or currency exchange rates or exchange  controls), or  (ii) the Administrative Agent determines (which determination shall be conclusive and  binding absent manifest error) that the Term SOFR Rate, Daily Simple SOFR, prior to the Term  RFR Transition Date with respect to any Loans that bear interest based on Daily Simple RFR  denominated in any Alternative Currency, or Daily Simple RFR with respect to any Currency,  cannot be determined pursuant to the definition thereof  or, on and after the Term RFR Transition  Date with respect to any Loans that bear interest based Term RFR denominated in any Currency,  Term RFR for such Currency cannot be determined pursuant to the definition thereof on or prior to  the first day of any Interest Period, or  (iii) on or prior to the first day of an Interest Period, any Lender determines that for any  reason in connection with any request for a Term Rate Loan (in each case whether denominated in  U.S. Dollars or an Alternative Currency) or a conversion thereto or a continuation thereof that  (A) deposits in the applicable Currency are not available to any Lender in connection with such  Term Rate Loan, or are not being offered to banks in the market for the applicable Currency,  amount, and Interest Period of such Term Rate Loan, or (B) the Term Rate Loan Option for any  requested Currency or Interest Period with respect to a proposed Term Rate Loan, as applicable,  does not adequately and fairly reflect the cost to such Lender of funding, establishing or  maintaining such Loan and, in each case, such Lender has provided notice of such determination  to the Administrative Agent,  then the Administrative Agent shall have the rights specified in Section 2.14(d). (b) Illegality.  If at any time any Lender shall have determined, or any Governmental Body shall have asserted, that the making, maintenance or funding of any Loan to which any Interest Rate Option  applies, or the determination or charging of interest rates based upon any Interest Rate Option has been  made impracticable or unlawful, by compliance by such Lender in good faith with any Law or any  interpretation or application thereof by any Governmental Body or with any request or directive of any such  Governmental Body (whether or not having the force of Law), or any Governmental Body has imposed  material restrictions on the authority of such Lender to purchase, sell, or take deposits of any Currency in  the applicable interbank market for the applicable Currency, then the Administrative Agent shall have the rights specified in Section 2.14(d). (c) Administrative Agent’s and Lender’s Rights.  In the case of any event specified in  Section 2.14(a) above, the Administrative Agent shall promptly so notify the Lenders and the Borrowers  thereof, and in the case of an event specified in Section 2.14(b) above, such Lender shall promptly so notify  the Administrative Agent and endorse a certificate to such notice as to the specific circumstances of such  notice, and the Administrative Agent shall promptly send copies of such notice and certificate to the other  Lenders and the Borrowers. (i) Upon such date as shall be specified in such notice (which shall not be earlier than  the date such notice is given), the obligation of (A) the Lenders, in the case of such notice given by  the Administrative Agent, or (B) such Lender, in the case of such notice given by such Lender, to  allow the Borrower to select, convert to or renew a Loan under the affected Interest Rate Option in  each such Currency shall be suspended (to the extent of the affected Interest Rate Option, or the  applicable Interest Periods) until the Administrative Agent shall have later notified the Borrower,  

 

81 or such Lender shall have later notified the Administrative Agent, of the Administrative Agent’s or  such Lender’s, as the case may be, determination that the circumstances giving rise to such previous  determination no longer exist.   (ii) If at any time the Administrative Agent makes a determination under Section  2.14(a): (a) if the Borrower Representative has previously notified the Administrative Agent of its  selection of, conversion to or renewal of a an affected Interest Rate Option, and such Interest Rate  Option has not yet gone into effect, such notification shall (i) with regard to any such pending  request for Loans  denominated in U.S. Dollars, be deemed to provide for selection of, conversion  to or renewal of an ABR Loan otherwise available with respect to such Loans in the amount  specified therein and (ii) with regard to any such pending request for Loans denominated in an  Alternative Currency, be deemed ineffective (in each case to the extent of the affected Interest Rate  Option or the applicable Interest Periods), (b) any outstanding affected Loans denominated in U.S.  Dollars shall be deemed to have been converted into ABR Loans immediately or, in the case of  Term Rate Loans, at the end of the applicable Interest Period, and (c) any outstanding affected  Loans denominated in an Alternative Currency shall, at the Borrower’s election, either be converted  into ABR Loans denominated in U.S. Dollars (in an amount equal to the Dollar Amount of such  Alternative Currency) immediately or, in the case of Term Rate Loans, at the end of the applicable  Interest Period or prepaid in full immediately or, in the case of Term Rate Loans, at the end of the  applicable Interest Period; provided, however that absent notice from the Borrower Representative  of conversion or prepayment, such Loans shall automatically be converted to ABR Loans (in an  amount equal to the Dollar Amount of such Alternative Currency).  (iii) If any Lender notifies the Administrative Agent of a determination under Section  2.14(b), the Borrowers shall, subject to the Borrowers’ indemnification Obligations under Section  2.16, as to any Loan of the Lender to which an affected Interest Rate Option applies, on the date  specified in such notice either convert such Loan to an ABR Loan otherwise available with respect  to such Loan (which shall be, with respect to Loans denominated in an Alternative Currency, in an  amount equal to the Dollar Amount of such Alternative Currency) or prepay such Loan in  accordance with Section 2.11.  Absent due notice from the Borrower Representative of conversion  or prepayment, such Loan shall automatically be converted to an ABR Loan otherwise available  with respect to such Loan (which shall be, with respect to Loans denominated in an Alternative  Currency, in an amount equal to the Dollar Amount of such Alternative Currency) upon such  specified date. (d) Benchmark Replacement Setting. (i) Benchmark Replacement.  (1) Notwithstanding anything to the contrary herein or in any other  Loan Document (and any agreement executed in connection with an Interest Rate Hedge  shall be deemed not to be a “Loan Document” for purposes of this Section titled  “Benchmark Replacement Setting”), if a Benchmark Transition Event and its related  Benchmark Replacement Date have occurred prior to any setting of the then-current  Benchmark for any Currency, then (A) if a Benchmark Replacement is determined in  accordance with clause (1) of the definition of “Benchmark Replacement” for such  Benchmark Replacement Date, such Benchmark Replacement will replace such  Benchmark for all purposes hereunder and under any Loan Document in respect of such  Benchmark setting and subsequent Benchmark settings without any amendment to, or  further action or consent of any other party to, this Agreement or any other Loan Document  and (B) if a Benchmark Replacement is determined in accordance with clause (2), (3), or 

 

82 (4) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date,  such Benchmark Replacement will replace such Benchmark for all purposes hereunder and  under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New  York City time) on the fifth (5th) Business Day after the date notice of such Benchmark  Replacement is provided to the Lenders without any amendment to, or further action or  consent of any other party to, this Agreement or any other Loan Document so long as the  Administrative Agent has not received, by such time, written notice from Lenders  comprising the Required Lenders of objection to (i) with respect to a Benchmark  Replacement determined in accordance with clause (2) or (3) of the definition of  “Benchmark Replacement”, the related Benchmark Replacement Adjustment and (ii) with  respect to a Benchmark Replacement determined in accordance with clause (4) of the  definition of “Benchmark Replacement”, such Benchmark Replacement.  (2) Notwithstanding anything to the contrary herein or in any other  Loan Document and subject to the proviso below in this paragraph, if a Term RFR  Transition Date has occurred prior to the Reference Time in respect of any setting of the  then-current Benchmark consisting of a Daily Simple RFR for the applicable Currency,  then the applicable Benchmark Replacement will replace such Benchmark for all purposes  hereunder or under any Loan Document in respect of such Benchmark for the applicable  Currency setting and subsequent Benchmark settings, without any amendment to, or further  action or consent of any other party to, this Agreement or any other Loan Document;  provided that this clause (2) shall not be effective unless the Administrative Agent has  delivered to the Lenders and the Borrowers a Term RFR Notice with respect to the  applicable Term RFR Transition Event.  For the avoidance of doubt, the Administrative  Agent shall not be required to deliver a Term RFR Notice after a Term RFR Transition  Event and may elect or not elect to do so in its sole discretion.  (ii) Benchmark Replacement Conforming Changes. In connection with the use,  administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent  may make Conforming Changes from time to time and, notwithstanding anything to the contrary  herein or in any other Loan Document, any amendments implementing such Conforming Changes  will become effective without any further action or consent of any other party to this Agreement or  any other Loan Document.   (iii) Notices; Standards for Decisions and Determinations. The Administrative  Agent will promptly notify the Borrowers and the Lenders of (A) the implementation of any  Benchmark Replacement, and (B) the effectiveness of any Conforming Changes in connection with  the use, administration, adoption, or implementation of a Benchmark Replacement.  The  Administrative Agent will notify the Borrowers of (x) the removal or reinstatement of any tenor of  a Benchmark pursuant to paragraph (iv) below and (y) the commencement of any Benchmark  Unavailability Period. Any determination, decision or election that may be made by the  Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section,  including any determination with respect to a tenor, rate or adjustment or of the occurrence or non- occurrence of an event, circumstance or date and any decision to take or refrain from taking any  action or any selection, will be conclusive and binding absent manifest error and may be made in its  or their sole discretion and without consent from any other party to this Agreement or any other  Loan Document except, in each case, as expressly required pursuant to this Section. (iv) Unavailability of Tenor of Benchmark. Notwithstanding anything to the  contrary herein or in any other Loan Document, at any time (including in connection with the  implementation of a Benchmark Replacement), (A) if the then-current Benchmark is a term rate and  

 

83 either (I) any tenor for such Benchmark is not displayed on a screen or other information service  that publishes such rate from time to time as selected by the Administrative Agent in its reasonable  discretion or (II) the regulatory supervisor for the administrator of such Benchmark has provided a  public statement or publication of information announcing that any tenor for such Benchmark is not  or will not be representative, then the Administrative Agent may modify the definition of “Interest  Period” (or any similar or analogous definition) for any Benchmark settings at or after such time to  remove such unavailable or non-representative tenor; and (B) if a tenor that was removed pursuant  to clause (A) above either (I) is subsequently displayed on a screen or information service for a  Benchmark (including a Benchmark Replacement) or (II) is not, or is no longer, subject to an  announcement that it is not or will not be representative for a Benchmark (including a Benchmark  Replacement), then the Administrative Agent may modify the definition of “Interest Period” (or any  similar or analogous definition) for all Benchmark settings at or after such time to reinstate such  previously removed tenor.  (v) Benchmark Unavailability Period. Upon the Borrower Representative’s  receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower  Representative may revoke any pending request for a Loan bearing interest based on the Term SOFR  Rate, Daily Simple SOFR, Eurocurrency Rate or RFR, conversion to or continuation of Loans  bearing interest based on such Interest Rate Option to be made, converted or continued during any  Benchmark Unavailability Period and, failing that, the Borrower Representative will be deemed to  have converted any such request into a request for a Loan of or conversion to Loans bearing interest  under for ABR Loans. During a Benchmark Unavailability Period or at any time that a tenor for the  then-current Benchmark is not an Available Tenor, the component of the Alternate Base Rate based  upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used  in any determination of the Alternate Base Rate. (vi) Definitions. As used in this Section:   “Available Tenor” means, as of any date of determination and with respect to the  then-current Benchmark for any Currency, as applicable, (x) if such Benchmark for such  Currency is a term rate or is based on a term rate, any tenor for such Benchmark (or  component thereof) that is or may be used for determining the length of an interest period  pursuant to this Agreement or (y) otherwise, any payment period for interest calculated  with reference to such Benchmark (or component thereof) for such Currency that is or may  be used for determining any frequency of making payments of interest calculated with  reference to such Benchmark pursuant to this Agreement, in each case, as of such date and  not including, for the avoidance of doubt, any tenor of such Benchmark that is then- removed from the definition of “Interest Period” pursuant to clause (iv) of this Section. For  the avoidance of doubt, the Available Tenor for Daily Simple RFR is one month.  “Benchmark” means, initially, with respect to Obligations, interest, fees,  commissions, or other amounts denominated in, or calculated with respect to, (a) U.S.  Dollars, the Term SOFR Rate, (b) Euros, the Daily Simple RFR applicable for such Currency, or (c) Canadian Dollars, the Eurocurrency Rate applicable for such Currency; provided that if a Benchmark Transition Event has occurred with respect to the then-current  Benchmark or upon the occurrence of a Term RFR Transition Event, then “Benchmark”  means the applicable Benchmark Replacement to the extent that such Benchmark  Replacement has replaced such prior benchmark rate pursuant to this Section.  

 

84 “Benchmark Replacement” means, with respect to any Benchmark Transition  Event, the first applicable alternative set forth in the order below that can be determined by  the Administrative Agent for the applicable Benchmark Replacement Date: (1) Where the Benchmark is Term SOFR, the sum of: (A) Daily Simple  SOFR and (B) the SOFR Adjustment for a 1-month Interest Period; and   (2) Where the Benchmark is EURIBOR,   (i) the sum of (A) Term RFR for €STR and (B) the related Benchmark  Replacement Adjustment; and (ii) the sum of: (A) Daily Simple RFR for €STR and (B) the related  Benchmark Replacement Adjustment; (3) [Reserved];   (4) the sum of (A) the alternate benchmark rate that has been selected  by the Administrative Agent and the Borrower, giving due consideration to (x) any selection  or recommendation of a replacement benchmark rate or the mechanism for determining  such a rate by the Relevant Governmental Body or (y) any evolving or then-prevailing  market convention for determining a benchmark rate as a replacement to the then-current  Benchmark for syndicated credit facilities denominated in the applicable Currency at such  time and (B) the related Benchmark Replacement Adjustment;  provided, that if the Benchmark Replacement as determined pursuant to clause (2)  or (4) above would be less than the Floor, the Benchmark Replacement will be deemed to  be the Floor for the purposes of this Agreement and the other Loan Documents; and  provided further, that any Benchmark Replacement shall be administratively feasible as  determined by the Administrative Agent in its sole discretion.  “Benchmark Replacement Adjustment” means, with respect to any  replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement  , the spread adjustment, or method for calculating or determining such spread adjustment,  (which may be a positive or negative value or zero) that has been selected by the  Administrative Agent and the Borrower, giving due consideration to (A) any selection or  recommendation of a spread adjustment, or method for calculating or determining such  spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted  Benchmark Replacement by the Relevant Governmental Body or (B) any evolving or then- prevailing market convention for determining a spread adjustment, or method for  calculating or determining such spread adjustment, for the replacement of such Benchmark  with the applicable Unadjusted Benchmark Replacement for syndicated credit facilities  denominated in the applicable Currency at such time.  “Benchmark Replacement Date” means a date and time determined by the  Administrative Agent, which date shall be no later than the earliest to occur of the following  events with respect to the then-current Benchmark for any Currency:   (1) in the case of clause (1) or (2) of the definition of “Benchmark  Transition Event,” the later of (A) the date of the public statement or publication of  information referenced therein and (B) the date on which the administrator of such  

 

85 Benchmark (or the published component used in the calculation thereof) permanently or  indefinitely ceases to provide all Available Tenors of such Benchmark (or such component  thereof); or  (2) in the case of clause (3) of the definition of “Benchmark Transition  Event,” the date determined by the Administrative Agent, which date shall promptly follow  the date of the public statement or publication of information referenced therein;   For the avoidance of doubt, the “Benchmark Replacement Date” will be deemed to have  occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence  of the applicable event or events set forth therein with respect to all then-current Available  Tenors of such Benchmark (or the published component used in the calculation thereof).   “Benchmark Transition Event” means, the occurrence of one or more of the  following events, with respect to the then-current Benchmark for any Currency:  (1) a public statement or publication of information by or on behalf  of the administrator of such Benchmark (or the published component used in the  calculation thereof) announcing that such administrator has ceased or will cease to provide  all Available Tenors of such Benchmark (or such component thereof), permanently or  indefinitely, provided that, at the time of such statement or publication, there is no  successor administrator that will continue to provide any Available Tenor of such  Benchmark (or such component thereof);  (2) a public statement or publication of information by a Governmental Authority having jurisdiction over the Administrative Agent, the regulatory  supervisor for the administrator of such Benchmark (or the published component used in  the calculation thereof), the Board, the Federal Reserve Bank of New York, the central  bank for the Currency applicable to such Benchmark, an insolvency official with  jurisdiction over the administrator for such Benchmark (or such component), a resolution  authority with jurisdiction over the administrator for such Benchmark (or such component)  or a court or an entity with similar insolvency or resolution authority over the administrator  for such Benchmark (or such component), which states that the administrator of such  Benchmark (or such component) has ceased or will cease to provide all Available Tenors  of such Benchmark (or such component thereof) permanently or indefinitely, provided that,  at the time of such statement or publication, there is no successor administrator that will  continue to provide any Available Tenor of such Benchmark (or such component thereof);  or  (3) a public statement or publication of information by the regulatory  supervisor for the administrator of such Benchmark (or the published component used in  the calculation thereof) or a Governmental Authority having jurisdiction over the  Administrative Agent announcing that all Available Tenors of such Benchmark (or such  component thereof) are not, or as of a specified future date will not be, representative. For the avoidance of doubt, a “Benchmark Transition Event” will be  deemed to have occurred with respect to any Benchmark if a public statement or  publication of information set forth above has occurred with respect to each then-current  Available Tenor of such Benchmark (or the published component used in the calculation  thereof). 

 

86 “Benchmark Unavailability Period” means the period (if any) (x) beginning at the time that  a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement  has replaced the then-current Benchmark for any Currency for all purposes hereunder and  under any Loan Document in accordance with this Section 2.14(d), and (y) ending at the  time that a Benchmark Replacement has replaced the then-current Benchmark for such  Currency for all purposes hereunder and under any Loan Document in accordance with this  Section 2.14(d). “Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement  excluding the related Benchmark Replacement Adjustment. SECTION 2.15 Increased Costs.  (a) If any Change in Law shall: (i) impose, modify or deem applicable any reserve, special deposit, or similar  requirement (including any compulsory loan requirement, insurance charge or other assessment)  against assets of, deposits with or for the account of, or credit extended by, any Lender or the  Issuing Bank;  (ii) impose on any Lender or the Issuing Bank or the London interbank market any  other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by  such Lender or any Letter of Credit or participation therein; or (iii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes  described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income  Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its  deposits, reserves, other liabilities or capital attributable thereto;  and the result of any of the foregoing shall be to increase the cost to such Lender or such other  Recipient of making, continuing, converting into or maintaining any Loan (or of maintaining its obligation  to make any such Loan) or to increase the cost to such Lender, the Issuing Bank or such other Recipient of  participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or  receivable by such Lender, the Issuing Bank or such other Recipient hereunder (whether of principal,  interest or otherwise), then, upon request of such Lender, the Issuing Bank or such other Recipient, the  applicable Borrowers will pay to such Lender, the Issuing Bank or such other Recipient, as the case may  be, such additional amount or amounts as will compensate such Lender, the Issuing Bank or such other  Recipient, as the case may be, for such additional costs incurred or reduction suffered. (b) If any Lender or the Issuing Bank determines that any Change in Law regarding capital or  liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s or the  Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding company, if any, as  a consequence of this Agreement, the Commitment of, or the Loans made by, or participations in Letters  of Credit or Swingline Loans held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to  a level below that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding  company could have achieved but for such Change in Law (taking into consideration such Lender’s or the  Issuing Bank’s policies and the policies of such Lender’s or the Issuing Bank’s holding company with  respect to capital adequacy and liquidity), then from time to time the Borrowers will pay to such Lender or  the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender  or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company for any such reduction  suffered. 

 

87 (c) A certificate of a Lender or the Issuing Bank setting forth the amount or amounts necessary  to compensate such Lender or the Issuing Bank or its holding company, as the case may be, as specified in  paragraph (a) or (b) of this Section shall be delivered to the Borrower Representative accompanied by a  certificate setting forth in reasonable detail any amount or amounts and upon such delivery of such items,  shall be conclusive absent manifest error. The Borrowers shall pay such Lender or the Issuing Bank, as the  case may be, the amount shown as due on any such certificate within 10 days after receipt thereof.  (d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation  pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to demand  such compensation; provided that the Borrowers shall not be required to compensate a Lender or the Issuing  Bank pursuant to this Section for any increased costs or reductions incurred more than nine (9) months prior  to the date that such Lender or the Issuing Bank, as the case may be, notifies the Borrower Representative  of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or the Issuing  Bank’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to  such increased costs or reductions is retroactive, then the 9-month period referred to above shall be extended  to include the period of retroactive effect thereof. (e) Without duplication of any such reserves which have been compensated as a result of the  Overnight Bank Funding Rate, the Borrowers shall pay to each Lender (i) as long as such Lender shall be  required to maintain reserves with respect to liabilities or assets consisting of or including eurocurrency  funds or deposits, additional interest on the unpaid principal amount of each such Loan equal to the actual  costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith,  which determination shall be conclusive absent manifest error), and (ii) as long as such Lender shall be  required to comply with any reserve ratio requirement under Regulation D or under any similar, successor  or analogous requirement of the Board (or any successor) or any other central banking or financial  regulatory authority imposed in respect of the maintenance of the Commitments or the funding of such Loans, such additional costs (expressed as a percentage per annum and rounded upwards, if necessary, to  the nearest five decimal places) equal to the actual costs allocated to such Commitment or Loan by such  Lender (as determined by such Lender in good faith, which determination shall be conclusive absent  manifest error), which in each case shall be due and payable on each date on which interest is payable on  such Loan; provided that in each case the Borrower Representative shall have received at least ten days’  prior notice (with a copy to the Administrative Agent) of such additional interest or costs from such Lender.   SECTION 2.16 Break Funding Payments.  In the event of (a) the payment of any principal of any  Term Rate Loan other than on the last day of an Interest Period applicable thereto or any Daily Rate Loan  on a day other than the Interest Payment Date therefor (in all cases including as a result of an Event of  Default or as a result of any prepayment pursuant to Section 2.11), (b) the conversion of any Term Rate  Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert,  continue or prepay any Term Rate Loan on the date specified in any notice delivered pursuant hereto  (regardless of whether such notice may be revoked under Section 2.09(d) and is revoked in accordance  therewith), or (d) the assignment of any Term Rate Loan other than on the last day of the Interest Period  applicable thereto as a result of a request by the Borrower Representative pursuant to Section 2.19 or  9.02(d), then, in any such event, the Borrowers shall compensate each Lender for the loss, cost and expense  (excluding any loss of margin or profit therefrom) attributable to such event which in the reasonable  judgment of such Lender, such Lender incurred. Such loss, cost or expense to any Lender shall be deemed  to include an amount determined by such Lender to be the excess, if any, of (i) with respect to a Term Rate  Loan, the amount of interest which would have accrued on the principal amount of such Loan had such  event not occurred, at the SOFR Rate or Term RFR, as applicable, that would have been applicable to such  Loan (but not including the Applicable Rate, margin or profit applicable thereto), 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  

 

88 (ii) the amount of interest that 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 London, European or  Canadian interbank market. A certificate of any Lender setting forth in reasonable detail any amount or  amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower  Representative and upon delivery of such items shall be conclusive absent manifest error. The Borrowers  shall pay such Lender the amount shown as due on any such certificate within 30 days after receipt thereof. SECTION 2.17 Withholding of Taxes; Gross-Up.  (a) Payments Free of Taxes. Any and all payments by or on account of any obligation of any  Loan Party under any Loan Document shall be made without deduction or withholding for any Taxes,  except as required by applicable law. If any applicable law (as determined in the good faith discretion of an applicable withholding agent) requires the deduction or withholding of any Tax from any such payment by  a withholding agent, then the applicable withholding agent shall be entitled to make such deduction or  withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental  Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable  by the applicable Loan Party shall be increased as necessary so that after such deduction or withholding has  been made (including such deductions and withholdings applicable to additional sums payable under this  Section 2.17) the applicable Recipient receives an amount equal to the sum it would have received had no  such deduction or withholding been made. (b) Payment of Other Taxes by the Loan Parties. The Loan Parties shall timely pay to the  relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative  Agent timely reimburse it for the payment of, any Other Taxes. (c) Evidence of Payment. As soon as practicable after any payment of Taxes by any Loan Party  to a Governmental Authority pursuant to this Section 2.17, such Loan Party shall deliver to the  Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority  evidencing such payment, a copy of the return reporting such payment or other evidence of such payment  reasonably satisfactory to the Administrative Agent. (d) Indemnification by the Loan Parties. The Loan Parties shall jointly and severally indemnify  each Recipient, within 10 days after demand therefor, for the full amount of any Indemnified Taxes  (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient  and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified  Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate  setting forth in reasonable detail the calculation of the amount of such payment or liability delivered to the  Borrower Representative by a Lender (with a copy to the Administrative Agent), or by the Administrative  Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.  (e) Indemnification by the Lenders. Each Lender shall severally indemnify the Administrative  Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender  (but only to the extent that any Loan Party has not already indemnified the Administrative Agent for such  Indemnified Taxes and without limiting the obligation of the Loan Parties to do so), (ii) any Taxes  attributable to such Lender’s failure to comply with the provisions of Section 9.04(c) relating to the  maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each  case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any  reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or  legally imposed or asserted by the relevant Governmental Authority. A certificate setting forth in reasonable  

 

89 detail the calculation of the amount of such payment or liability delivered to any Lender by the  Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the  Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any  Loan Document or otherwise payable by the Administrative Agent to such Lender from any other source  against any amount due to the Administrative Agent under this paragraph (e).  (f) Status of Lenders. (i) Any Lender that is entitled to an exemption from or reduction of  withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower  Representative and the Administrative Agent, at the time or times reasonably requested by the Borrower  Representative or the Administrative Agent and at the time or times prescribed by applicable law, such  properly completed and executed documentation reasonably requested by the Borrower Representative or  the Administrative Agent or prescribed by applicable law as will permit such payments to be made without  withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the  Borrower Representative or the Administrative Agent, shall deliver such other documentation prescribed  by applicable law or reasonably requested by the Borrower Representative or the Administrative Agent as  will enable the Borrowers or the Administrative Agent to determine whether or not such Lender is subject  to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in  the preceding two sentences, the completion, execution and submission of such documentation (other than  such documentation set forth in Section 2.17(f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in  the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to  any material unreimbursed cost or expense or would materially prejudice the legal or commercial position  of such Lender. (ii) Without limiting the generality of the foregoing, in the event that any Borrower is  a U.S. Person,  (A) any Lender that is a U.S. Person shall deliver to the Borrower  Representative 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 Representative or the Administrative Agent), executed  copies of IRS Form W-9 (or successor form) certifying that such Lender is exempt from  U.S. Federal backup withholding tax;  (B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver  to the Borrower Representative 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 Representative or the Administrative Agent),  whichever of the following is applicable: (1) in the case of a Foreign Lender claiming the benefits of an income  tax treaty to which the United States is a party (x) with respect to payments of  interest under any Loan Document, executed copies of IRS Form W-8BEN or W- 8BEN-E, as applicable (or 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, IRS Form W-8BEN or W-8BEN-E, as applicable (or 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; 

 

90 (2) in the case of a Foreign Lender claiming that its extension of credit  will generate U.S. effectively connected income, executed copies of IRS Form W- 8ECI (or successor form); (3) in the case of a Foreign Lender claiming the benefits of the  exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate  substantially in the form of Exhibit G-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 a 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 copies of IRS  Form W- 8BEN or W-8BEN-E, as applicable (or successor form); or (4) to the extent a Foreign Lender is not the Beneficial Owner,  executed copies of IRS Form W-8IMY (or successor form), accompanied by IRS  Form W-8ECI (or successor form), IRS Form W- 8BEN or W-8BEN-E, as  applicable (or successor form), a U.S. Tax Compliance Certificate substantially in  the form of Exhibit G-2 or Exhibit G-3, IRS Form W-9 (or successor form), and/or  other certification documents from each Beneficial Owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect  partners of such Foreign Lender are claiming the portfolio interest exemption, such  Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in  the form of Exhibit G-4 on behalf of each such direct and indirect partner;  (C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver  to the Borrower Representative 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 Representative or the Administrative Agent), executed  copies of any other form prescribed by applicable law as a basis for claiming exemption  from or a reduction in U.S. Federal withholding Tax, duly completed, together with such  supplementary documentation as may be prescribed by applicable law to permit the  Borrowers or the Administrative Agent to determine the withholding or deduction required  to be made; and  (D) if a payment made to a Lender under any Loan Document would be subject  to U.S. Federal withholding Tax imposed by FATCA if such Lender were to fail to comply  with the applicable reporting requirements of FATCA (including those contained in  Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the  Borrower Representative and the Administrative Agent at the time or times prescribed by  law and at such time or times reasonably requested by the Borrower Representative or the  Administrative Agent such documentation prescribed by applicable law (including as  prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation  reasonably requested by the Borrower Representative or the Administrative Agent as may  be necessary for the Borrowers and the Administrative Agent to comply with their  obligations under FATCA and to determine that such Lender has complied with such  Lender’s obligations under FATCA or to determine the amount to deduct and withhold  from such payment. Solely for purposes of this clause (D), “FATCA” shall include any  amendments made to FATCA after the date of this Agreement. 

 

91 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 Representative and the Administrative Agent in writing of its legal inability to do so. (g) Treatment of Certain Refunds. If any party determines in its sole discretion exercised in  good faith that it has received a refund of any Taxes as to which it has been indemnified pursuant to this  Section 2.17 (including by the payment of additional amounts pursuant to this Section 2.17), it shall pay to  the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made  under this Section 2.17 with respect to the Taxes giving rise to such refund), net of all out-of-pocket  expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by  the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the  request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to  this paragraph (g) (plus any penalties, interest or other charges imposed by the relevant Governmental  Authority) in the event that such indemnified party is required to repay such refund to such Governmental  Authority. Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified  party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment  of which would place the indemnified party in a less favorable net after-Tax position than the indemnified  party would have been in if the Tax subject to indemnification and giving rise to such refund had not been  deducted, withheld or otherwise imposed and the indemnification payments or additional amounts giving rise to such refund had never been paid. This paragraph (g) shall not be construed to require any indemnified  party to make available its Tax returns (or any other information relating to its Taxes that it deems  confidential) to the indemnifying party or any other Person.  (h) Survival. Each party’s obligations under this Section 2.17 shall survive the resignation or  replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender,  the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under  any Loan Document.  (i) Defined Terms. For purposes of this Section 2.17, the term “Lender” includes any Issuing  Bank and the term “applicable law” includes FATCA.  SECTION 2.18 Payments Generally; Allocation of Proceeds; Sharing of Set-offs.   (a) The Borrowers shall make each payment required to be made by them hereunder (whether  of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under  Sections 2.15, 2.16 or 2.17, or otherwise) prior to 3:00 p.m., New York time, on the date when due, in  immediately available funds, without set-off or counterclaim. Any amounts received after such time on any  date may, in the discretion of the Administrative Agent, be deemed to have been received on the next  succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to  the Administrative Agent at the Administrative Agent’s Payment Office, or as otherwise directed by the  Administrative Agent, except payments to be made directly to an Issuing Bank or Swingline Lender as  expressly provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be  made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments  received by it for the account of any other Person to the appropriate recipient promptly following receipt  thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment  shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest,  interest thereon shall be payable for the period of such extension. All payments hereunder of principal or  interest in respect of any Loan, and all payments in respect of LC Disbursements and all other payments  hereunder and under each other Loan Document, shall be made in U.S. Dollars.  

 

92 (b) Any proceeds of Collateral received by the Administrative Agent (i) not constituting either  (A) a specific payment of principal, interest, fees or other sum payable under the Loan Documents (which  shall be applied as specified by the Borrowers) or (B) amounts to be applied from a Concentration Account  during a Dominion Period (which shall be applied in accordance with Section 2.10(b)) or (ii) after an Event  of Default has occurred and is continuing and the Administrative Agent so elects or the Required Lenders  so direct, shall be applied ratably first, to pay any fees, indemnities, or expense reimbursements including  amounts then due to the Administrative Agent and the Issuing Banks from the Borrowers (other than in  connection with Banking Services Obligations, Swap Agreement Obligations, Supply Chain Financing or  the Synthetic Lease Agreement), second, to pay any fees or expense reimbursements then due to the Lenders  from the Borrowers (other than in connection with Banking Services Obligations or Swap Agreement  Obligations), third, to pay interest due in respect of the Overadvances and Protective Advances, fourth, to  pay the principal of the Overadvances and Protective Advances, fifth, to pay interest then due and payable  on the Loans (other than the Overadvances and Protective Advances) ratably, sixth, to prepay principal on  the Loans (other than the Overadvances and Protective Advances) and unreimbursed LC Disbursements  ratably, seventh, to Cash Collateralize all outstanding Letters of Credit, eighth, ratably to the payment of  any amounts owing with respect to (y) Banking Services Obligations arising from Banking Services (other  than those described in clauses (ii), (iii) and (iv) of the definition of Banking Services) and Swap Agreement  Obligations, in each case under this sub-clause (y), for which Banking Services/Swap Reserves have been  established but only up to the amount of such Banking Services/Swap Reserves, and (z) the Synthetic Lease  Agreement and Supply Chain Financing Agreement, ninth, ratably to payment of any amounts owing with respect Banking Services Obligations arising from Banking Services described in clauses (ii), (iii) and (iv)  of the definition of Banking Services, tenth, to Banking Services Obligations and Swap Agreement  Obligations not paid pursuant to clauses eighth and ninth above up to and including the amount most  recently provided to the Administrative Agent pursuant to Section 2.22, and eleventh, to the payment of  any other Secured Obligation. Notwithstanding the foregoing, amounts received from any Loan Party shall  not be applied to any Excluded Swap Obligation of such Loan Party. Notwithstanding anything to the  contrary contained in this Agreement, unless so directed by the Borrower Representative, or unless an Event  of Default is in existence, neither the Administrative Agent nor any Lender shall apply any payment which  it receives to any Loan with a Term Rate Loan Option, except (a) on the expiration date of the Interest  Period applicable thereto or (b) in the event, and only to the extent, that there are no outstanding ABR Loans  or Daily Rate Loans and, in any such event, the Borrowers shall pay the break funding payment required in  accordance with Section 2.16. The Administrative Agent and the Lenders shall have the continuing and  exclusive right to apply and reverse and reapply any and all such proceeds and payments to any portion of  the Secured Obligations.  (c) At the election of the Administrative Agent, all payments of principal, interest, LC  Disbursements, fees, premiums, reasonable and documented reimbursable expenses (including, without  limitation, all reimbursement for fees, costs and expenses pursuant to Section 9.03), and other sums payable  under the Loan Documents, may be paid from the proceeds of Borrowings made hereunder whether made  following a request by the Borrower Representative pursuant to Section 2.03 or a deemed request as  provided in this Section, provided that, in the case of any deemed request (other than a payment of principal,  interest, LC Disbursements, and fees due under this Agreement), the Administrative Agent shall have  provided the Borrower Representative prior written notice that such sums are due and payable, the amount  thereof and the date payment is requested to be made. Each Borrower hereby irrevocably authorizes the  Administrative Agent to make a Borrowing for the purpose of paying each payment referred to in the  preceding sentence on or after the date any of the same becomes due and payable and agrees that all such  amounts charged shall constitute Loans (including Swingline Loans and Overadvances, but such a  Borrowing may only constitute a Protective Advance if it is to reimburse costs, fees and expenses as  described in Section 2.04 and Section 9.03) and that all such Borrowings shall be deemed to have been  requested pursuant to Section 2.03, 2.04 or 2.05, as applicable. 

 

93 (d) If, except as otherwise expressly provided herein, any Lender shall, by exercising any right  of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of  its Loans or participations in LC Disbursements resulting in such Lender receiving payment of a greater  proportion of the aggregate amount of its Loans and participations in LC Disbursements and Swingline  Loans and accrued interest thereon than its applicable proportion as provided herein, then the Lender  receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and  participations in LC Disbursements and Swingline Loans of other Lenders to the extent necessary so that  the benefit of all such payments shall be shared by all such Lenders ratably in accordance with the aggregate  amount of principal of and accrued interest on their respective Loans and participations in LC  Disbursements and Swingline Loans; provided that (i) if any such participations are purchased and all or  any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the  purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this  paragraph shall not be construed to apply to any payment made by the Borrowers pursuant to and in  accordance with the express terms of this Agreement (including the application of funds arising from the  existence of a Defaulting Lender or a Disqualified Institution), or any payment obtained by a Lender as  consideration for the assignment of or sale of a participation in any of its Loans or participations in LC  Disbursements or Swingline Loans to any assignee or participant, other than to the Borrowers or any  Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). Each Borrower  consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any  Lender acquiring a participation pursuant to the foregoing arrangements may, subject to Section 9.08, exercise against such Borrower rights of set-off and counterclaim with respect to such participation as fully  as if such Lender were a direct creditor of such Borrower in the amount of such participation. (e) Unless the Administrative Agent shall have received notice from the Borrower  Representative prior to the date on which any payment is due to the Administrative Agent for the account  of the Lenders or the Issuing Bank hereunder that the Borrowers will not make such payment, the  Administrative Agent may assume that the Borrowers have made such payment on such date in accordance  herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the  case may be, the amount due. In such event, if the Borrowers have not in fact made such payment, then  each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative  Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon,  for each day from and including the date such amount is distributed to it to but excluding the date of payment  to the Administrative Agent, at a rate determined by the Administrative Agent in accordance with banking  industry rules on interbank compensation.  (f) If any Lender shall fail to make any payment required to be made by it hereunder, then the  Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), (i) apply any  amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such  Lender’s obligations hereunder until all such unsatisfied obligations are fully paid and/or (ii) hold any such  amounts in a segregated account as cash collateral for, and application to, any future funding obligations of  such Lender hereunder. Application of amounts pursuant to (i) and (ii) above shall be made in any order  determined by the Administrative Agent in its discretion. (g) The Administrative Agent may from time to time provide the Borrowers with billing  statements or invoices with respect to any of the Secured Obligations (the “Billing Statements”). The  Administrative Agent is under no duty or obligation to provide Billing Statements, which, if provided, will  be solely for the Borrowers’ convenience. The Billing Statements may contain estimates of the amounts  owed during the relevant billing period, whether of principal, interest, fees or other Secured Obligations. If  the Borrowers pay the full amount indicated on a Billing Statement on or before the due date indicated on  such Billing Statement, the Borrowers shall not be in default; provided, that acceptance by the  Administrative Agent, on behalf of the Lenders, of any payment that is less than the payment due at that  

 

94 time shall not constitute a waiver of the Administrative Agent’s or the Lenders’ right to receive payment in  full at another time. SECTION 2.19 Mitigation Obligations; Replacement of Lenders.  (a) If any Lender requests compensation under Section 2.15, or if the Borrowers are required  to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the  account of any Lender pursuant to Section 2.17, then such Lender shall use reasonable efforts to designate  a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations  hereunder to another of its offices, branches or affiliates, if, in the reasonable judgment of such Lender,  such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or  2.17, as the case may be, in the future and (ii) would not subject such Lender to any material unreimbursed  cost or expense and would not otherwise be materially disadvantageous to such Lender.  (b) If any Lender requests compensation under Section 2.15, or if the Borrowers are required  to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the  account of any Lender pursuant to Section 2.17, and, in each case, such Lender has declined or is unable to  designate a different lending office in accordance with paragraph (a) of this Section, or if any Lender  becomes a Defaulting Lender, then the Borrowers may, at their sole expense and effort, upon notice to such  Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in  accordance with and subject to the restrictions contained in Section 9.04), all its interests, rights (other than  its existing rights to payments pursuant to Section 2.15 or 2.17) and obligations under this Agreement and  other Loan Documents to an assignee that shall assume such obligations (which assignee may be another  Lender, if a Lender accepts such assignment); provided that (i) if the assignee is not already a Lender, an  Affiliate of a Lender or an Approved Fund, the Borrowers shall have received the prior written consent of  the Administrative Agent (and in circumstances where its consent would be required under Section 9.04, the Issuing Bank and the Swingline Lender), which consent shall not unreasonably be withheld or delayed,  (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans  and funded participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued fees  and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal  and accrued interest and fees) or the Borrowers (in the case of all other amounts) and (iii) in the case of any  such assignment resulting from a claim for compensation under Section 2.15 or payments required to be  made pursuant to Section 2.17, such assignment will result in a reduction in such compensation or  payments. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as  a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrowers to require such  assignment and delegation cease to apply. SECTION 2.20 Defaulting Lenders. Notwithstanding any provision of this Agreement to the  contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long  as such Lender is a Defaulting Lender: (a) fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting  Lender pursuant to Section 2.12(a);  (b) such Defaulting Lender shall not have the right to vote on any issue on which voting is  required (other than to the extent expressly provided in Section 9.02(b)) and the Commitment and  Revolving Exposure of such Defaulting Lender shall not be included in determining whether the Required  Lenders have taken or may take any action hereunder (including any consent to any amendment, waiver or  other modification pursuant to Section 9.02) or under any other Loan Document; provided, that, except as  otherwise provided in Section 9.02, this clause (b) shall not apply to the vote of a Defaulting Lender in the  

 

95 case of an amendment, waiver or other modification requiring the consent of such Lender or each Lender  directly affected thereby; (c) if any Swingline Exposure or LC Exposure exists at the time a Lender becomes a  Defaulting Lender then: (i) all or any part of the Swingline Exposure and LC Exposure of such Defaulting  Lender shall be reallocated among the non-Defaulting Lenders in accordance with their respective  Applicable Percentages (calculated without regard to such Defaulting Lender’s Commitment) but  only to the extent that (x) the conditions set forth in Section 4.02 are satisfied at the time of such  reallocation and (y) the sum of all non-Defaulting Lenders’ Revolving Exposures plus such  Defaulting Lender’s Swingline Exposure and LC Exposure does not exceed the total of all non- Defaulting Lenders’ Commitments; (ii) if the reallocation described in clause (i) above cannot, or can only partially, be  effected, then within one (1) Business Day following notice by the Administrative Agent (x) first,  the Borrowers shall prepay such Swingline Exposure, and (y) second, the Borrowers shall Cash  Collateralize, for the benefit of the Issuing Bank, the Borrowers’ obligations corresponding to such  Defaulting Lender’s LC Exposure (after giving effect to any partial reallocation pursuant to  clause (i) above) for so long as such LC Exposure is outstanding;  (iii) if the Borrowers Cash Collateralize any portion of such Defaulting Lender’s LC  Exposure pursuant to clause (ii) above, the Borrowers shall not be required to pay any fees to such  Defaulting Lender pursuant to Section 2.12(b) with respect to such Defaulting Lender’s LC  Exposure during the period such Defaulting Lender’s LC Exposure is Cash Collateralized; (iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to  clause (i) above, then the fees payable to the Lenders pursuant to Sections 2.12(a) and 2.12(b) shall  be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages; and (v) if all or any portion of such Defaulting Lender’s LC Exposure is neither reallocated  nor Cash Collateralized pursuant to clause (i) or (ii) above, then, without prejudice to any rights or  remedies of the Issuing Bank or any other Lender hereunder, all letter of credit fees payable under  Section 2.12(b) with respect to such Defaulting Lender’s LC Exposure shall be payable to the  Issuing Bank until and to the extent that such LC Exposure is reallocated and/or Cash  Collateralized; and (d) so long as such Lender is a Defaulting Lender, the Swingline Lender shall not be required  to fund any Swingline Loan and no Issuing Bank shall be required to issue, amend, renew, extend or  increase any Letter of Credit, unless it is satisfied that the related exposure and such Defaulting Lender’s  then outstanding LC Exposure will be 100% covered by the Commitments of the non-Defaulting Lenders  and/or cash collateral will be provided by the Borrowers in accordance with Section 2.20(c), and  participating interests in any such newly made Swingline Loan or newly issued or increased Letter of Credit  shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.20(c)(i) (and such  Defaulting Lender shall not participate therein). (e) Any payment of principal, interest, fees or other amounts received by the Administrative  Agent for the account of any Defaulting Lender or received by the Administrative Agent from a Defaulting  Lender pursuant to Section 9.08 shall be applied at such time or times as may be determined by the  Administrative Agent as follows: first, to the payment of any amounts owing by such Defaulting Lender to  the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by  

 

96 such Defaulting Lender to the Issuing Bank or Swingline Lender hereunder; third, to Cash Collateralize the  Issuing Bank’s LC Exposure with respect to such Defaulting Lender in accordance with Section 2.20(c), fourth, as the Borrower Representative may request (so long as no Default or Event of Default exists), to  the funding of any Revolving Loan in respect of which such Defaulting Lender has failed to fund its portion  thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined  by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order  to (x) satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this  Agreement and (y) Cash Collateralize the Issuing Banks’ future LC Exposure with respect to such  Defaulting Lender with respect to future Letters of Credit issued under this Agreement; sixth, to the  payment of any amounts owing to the Lenders, the Issuing Bank or Swingline Lender as a result of any  judgment of a court of competent jurisdiction obtained by any Lender, the Issuing Bank or Swingline  Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations  under this Agreement; seventh, so long as no Default or Event of Default exists, to the payment of any  amounts owing to the Borrower Representative as a result of any judgment of a court of competent  jurisdiction obtained by the Borrower Representative or any other Loan Party against such Defaulting  Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if  (x) such payment is a payment of the principal amount of any Revolving Loans or LC Disbursements in  respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Revolving  Loans were made or the related Letters of Credit were issued at a time when the conditions set forth in  Section 4.02 were satisfied or waived, such payment shall be applied solely to pay the Loans of, and LC  Disbursements owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment  of any Revolving Loans of, or LC Disbursements owed to, such Defaulting Lender until such time as all  Revolving Loans and funded and unfunded participations in LC Disbursements and Swingline Loans are  held by the Lenders pro rata in accordance with the Commitments without giving effect to sub-section (c)  above. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied  (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section  2.20(e) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably  consents hereto. In the event that each of the Administrative Agent, the Borrowers, the Issuing Bank and the  Swingline Lender agrees in writing that a Defaulting Lender has adequately remedied all matters that caused  such Lender to be a Defaulting Lender, then the Swingline Exposure and LC Exposure of the Lenders shall  be readjusted to reflect the inclusion of such Lender’s Commitment and on the date of such readjustment  such Lender shall purchase at par such of the Loans of the other Lenders (other than Swingline Loans) as  the Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans in  accordance with its Applicable Percentage; provided that no adjustments will be made retroactively with  respect to fees accrued or payments made by or on behalf of any Borrower while that Lender was a  Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the  affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release  of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.  SECTION 2.21 Returned Payments. If after receipt of any payment which is applied to the payment  of all or any part of the Obligations (including a payment effected through exercise of a right of setoff), the  Administrative Agent or any Lender is for any reason compelled to surrender such payment or proceeds to  any Person because such payment or application of proceeds is invalidated, declared fraudulent, set aside,  determined to be void or voidable as a preference, impermissible setoff, or a diversion of trust funds, or for  any other reason (including pursuant to any settlement entered into by the Administrative Agent or such  Lender in its discretion), then the Obligations or part thereof intended to be satisfied shall be revived and  continued and this Agreement shall continue in full force as if such payment or proceeds had not been  received by the Administrative Agent or such Lender. The provisions of this Section 2.21 shall be and  

 

97 remain effective notwithstanding any contrary action which may have been taken by the Administrative  Agent or any Lender in reliance upon such payment or application of proceeds. The provisions of this  Section 2.21 shall survive the termination of this Agreement. SECTION 2.22 Banking Services and Swap Agreements. Each Lender or Affiliate (other than  Lenders that are Affiliates of the Administrative Agent) thereof providing Banking Services for, or having  Swap Agreements with, any Loan Party or any Restricted Subsidiary shall deliver to the Administrative  Agent, promptly after entering into such Banking Services or Swap Agreements, written notice setting forth  the aggregate amount (to the extent quantifiable) of all Banking Services Obligations and the notional  amount and the current mark-to-market value of the Swap Agreement Obligations of such Loan Party or  Restricted Subsidiary to such Lender or Affiliate (whether matured or unmatured, absolute or contingent).  In addition, each such Lender or Affiliate thereof shall deliver to the Administrative Agent, from time to  time after a significant change therein or upon a request therefor, a summary of the amounts due or to  become due (to the extent quantifiable) in respect of such Banking Services Obligations and Swap  Agreement Obligations. The most recent information provided to the Administrative Agent shall be used  in determining the amounts to be applied in respect of such Banking Services Obligations and/or Swap  Agreement Obligations pursuant to Section 2.18(b).  ARTICLE III. REPRESENTATIONS AND WARRANTIES Each Loan Party represents and warrants to the Lenders that: SECTION 3.01 Organization and Qualification; Power and Authority; Compliance With Laws;  Event of Default. Each Loan Party and each Restricted Subsidiary of each Loan Party (i) is a corporation,  partnership, limited liability company or unlimited liability company duly organized, validly existing and  in good standing under the laws of its jurisdiction of organization, (ii) has the lawful power to own or lease  its properties and to engage in the business it presently conducts or proposes to conduct, (iii) is duly licensed  or qualified and in good standing in each jurisdiction where the property owned or leased by it or the nature  of the business transacted by it or both makes such licensing or qualification necessary, except where the  failure to be so licensed or qualified and in good standing would not constitute a Material Adverse Effect,  (iv) has full power to enter into, execute, deliver and carry out this Agreement and the other Loan  Documents to which it is a party, to incur the Indebtedness contemplated by the Loan Documents and to  perform its Obligations under the Loan Documents to which it is a party, and all such actions have been  duly authorized by all necessary proceedings on its part, and (v) is in compliance with all applicable  Requirements of Law (other than Environmental Laws which are specifically addressed in Section 3.13 and  Anti-Terrorism Laws which are specifically addressed in Section 3.16) in all jurisdictions in which any  Loan Party or Restricted Subsidiary of any Loan Party is presently or will be doing business except where  the failure to do so would not constitute a Material Adverse Effect.  No Event of Default or Default exists  or is continuing.  No Loan Party is a Covered Entity.  SECTION 3.02 Capitalization; Subsidiaries and Joint Ventures; Investment Companies. Schedule 3.02 states (i) the name of each of the Company’s Subsidiaries, its jurisdiction of organization  and the amount, percentage and type of equity interests in such Subsidiary (the “Subsidiary Equity  Interests”), (ii) all Joint Ventures in which the Company or any Restricted Subsidiary owns any Equity  Interests (the “Joint Venture Equity Interests”) and (iii) any options, warrants or other rights outstanding to  purchase any such Subsidiary Equity Interests or Joint Venture Equity Interests.  The Company and each  Restricted Subsidiary of the Company has good and marketable title to all of the Subsidiary Equity Interests  and Joint Venture Equity Interests it purports to own, free and clear in each case of any Lien (other than  Permitted Liens) and all such Subsidiary Equity Interests and Joint Venture Equity Interests have been  

 

98 validly issued and fully paid and are nonassessable (if applicable).  None of the Loan Parties or Subsidiaries  of any Loan Party is an “investment company” registered or required to be registered under the Investment  Company Act of 1940 or under the “control” of an “investment company” as such terms are defined in the  Investment Company Act of 1940 and shall not become such an “investment company” or under such  “control.”   SECTION 3.03 Validity and Binding Effect.  This Agreement and each of the other Loan  Documents (i) has been duly and validly executed and delivered by each Loan Party that is a party thereto  and (ii) constitutes, or will constitute, legal, valid and binding obligations of each Loan Party that is a party  thereto, enforceable against such Loan Party in accordance with its terms, except to the extent that enforceability of this Agreement or any other Loan Document may be limited by bankruptcy, insolvency,  reorganization, moratorium or other similar laws affecting the enforceability of creditors’ rights generally  or limiting the right of specific performance or by general principles of equity. SECTION 3.04 No Conflict; Material Agreements; Consents.  Neither the execution and delivery  of this Agreement or the other Loan Documents by any Loan Party nor the consummation of the transactions  herein or therein contemplated or compliance with the terms and provisions hereof or thereof by any of  them will conflict with, constitute a default under or result in any breach of (i) the terms and conditions of  the articles or certificate of incorporation, code of regulations, bylaws, certificate of limited partnership,  partnership agreement, certificate of formation, operating agreement, limited liability company agreement  or other organizational documents of any Loan Party, (ii) any Requirement of Law or any agreement or  instrument or order, writ, judgment, injunction or decree to which any Loan Party or any of its Restricted  Subsidiaries is a party or by which it or any of its Restricted Subsidiaries is bound or to which it is subject,  in each case under clause (ii), except as would not result in a Material Adverse Effect, or (iii) result in the  creation or enforcement of any Lien, charge or encumbrance whatsoever upon any property (now or  hereafter acquired) of any Loan Party or any of its Restricted Subsidiaries (except Liens created pursuant  to the Loan Documents).  None of the Loan Parties or their Restricted Subsidiaries is bound by any  contractual obligation, or subject to any restriction in any organization document, or any Requirement of  Law which results in a Material Adverse Effect.  No consent, approval, exemption, order or authorization  of, or a registration or filing with, any Governmental Authority or any other Person is required by any  Requirement of Law or any agreement in connection with the execution, delivery and carrying out of this  Agreement and the other Loan Documents other than those which have been obtained or made and are in  full force and effect and except for filings necessary to perfect Liens created pursuant to the Loan  Documents.  SECTION 3.05 Litigation.  There are no actions, suits, proceedings or investigations pending or,  to the knowledge of any Loan Party, threatened against such Loan Party or any Restricted Subsidiary of  such Loan Party at law or in equity before any arbitrator or any Governmental Authority which (i) involve  any Loan Document or the Transactions or (ii) individually or in the aggregate would reasonably be  expected to result in a Material Adverse Effect.  None of the Loan Parties or any Restricted Subsidiaries of  any Loan Party is in violation of any order, writ, injunction or any decree of any Governmental Authority  which constitutes a Material Adverse Effect. SECTION 3.06 Financial Statements; No Material Adverse Effect; Beneficial Ownership  Certification.  (a) Historical Statements.  The Loan Parties have delivered or caused to be delivered to the  Administrative Agent copies of the (i) audited consolidated year-end financial statements of the Company  and its Subsidiaries for and as of the end of the fiscal year ended January 29, 2022 and (ii) unaudited  consolidated interim financial statements of the Company and its Subsidiaries for and as of the fiscal quarter  ended on July 30, 2022 (such annual and interim statements being collectively referred to as the  

 

99 “Statements”).  The Statements were compiled from the books and records maintained by the Loan Parties’  management, are correct and complete in all material respects and fairly represent in all material respects  the consolidated financial condition of the Company and its Subsidiaries as of the respective dates thereof and the results of operations for the fiscal periods then ended and have been prepared in accordance with  GAAP consistently applied, subject (in the case of the interim statements) to normal year-end audit  adjustments. (b) Financial Projections.  The Loan Parties have delivered to the Administrative Agent  summary projected financial statements (including, without limitation, balance sheets, income statements,  statements of cash flow and projected Borrowing Base, together with a detailed explanation of the  assumptions used in preparing such projected financial statements) of the Company and its Subsidiaries on  a quarterly basis for the first four (4) fiscal quarters following the Closing Date and may be on an annual  basis thereafter through fiscal year 2026 derived from various assumptions of the Loan Parties’  management (the “Projections”).  The Projections have been prepared in good faith based on assumptions  believed by the Company to be reasonable at the time such Projections were prepared and information  believed by the Company to have been accurate based upon the information available to the Company at  the time such Projections were furnished to the Lenders, and the Company is not be aware of any facts or  information that would lead it to believe that such Projections are incorrect or misleading in any material  respect; it being understood that (a) the Projections represent a reasonable range of possible results in light  of the history of the business, present and foreseeable conditions and the intentions of the Loan Parties’  management, it being understood that such Projections (i) are as to future events and not to be viewed as  facts, (ii) are subject to significant uncertainties and contingencies, many of which are beyond the control  of the Loan Parties and their Subsidiaries, and (iii) no assurance can be given that the Projections will be  realized, (b) actual results may significantly vary from the Projections and such variations may be adverse  and material and (c) the Projections should not be regarded as a representation by the Loan Parties or its  management that the projected results or financial condition of the Loan Parties will be achieved. (c) Accuracy of Financial Statements; No Material Adverse Effect.  As of the respective dates  of the Statements, no Loan Party nor any Subsidiary thereof has any liabilities, contingent or otherwise, or  forward or long-term commitments that are not disclosed in the Statements or in the notes thereto, and  except as disclosed therein there are no unrealized or anticipated losses from any commitments of any Loan  Party or any Subsidiary thereof and, in each case, which constitutes a Material Adverse Effect.  Since July  30, 2022, no Material Adverse Effect has occurred. (d) Beneficial Ownership.  As of the date hereof, the information included in the Beneficial  Ownership Certification is true and correct in all material respects. SECTION 3.07 Margin Stock.  None of the Loan Parties or any Subsidiaries of any Loan Party  engages or intends to engage principally, or as one of its important activities, in the business of extending  credit for the purpose, immediately, incidentally or ultimately, of purchasing or carrying margin stock  (within the meaning of Regulation U, T or X as promulgated by the Board).  No part of the proceeds of any  Loan or Letter of Credit has been or will be used, immediately, incidentally or ultimately, to purchase or  carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any margin  stock or which is inconsistent with the provisions of the regulations of the Board.  None of the Loan Parties  or any Subsidiary of any Loan Party holds or intends to hold or, after giving effect to the use of proceeds  of any Loan or drawing of any Letter of Credit, will hold, margin stock in such amounts that more than  twenty-five (25%) of the reasonable value of the assets of any Loan Party or Subsidiary of any Loan Party  are or will be represented by margin stock.  As of the Closing Date, none of the Loan Parties holds any  margin stock. 

 

100 SECTION 3.08 Full Disclosure.  Neither this Agreement nor any other Loan Document, nor any  certificate, statement, agreement or other documents furnished to the Administrative Agent or any Lender  in connection herewith or therewith, taken as a whole, contains any untrue statement of a material fact or  omits to state a material fact necessary in order to make the statements contained herein and therein, in light  of the circumstances under which they were made, not misleading.  There is no fact known to any Loan  Party which would reasonably be expected to constitute a Material Adverse Effect which has not been set  forth in this Agreement or in the certificates, statements, agreements or other documents furnished in  writing to the Administrative Agent and the Lenders prior to or at the date hereof in connection with the  transactions contemplated hereby. SECTION 3.09 Taxes.  All federal and other material Tax returns required to have been filed with  respect to each Loan Party and each Restricted Subsidiary of each Loan Party have been filed, and payment  or adequate provision has been made for the payment of all Taxes, fees, assessments and other governmental  charges which have or may become due pursuant to said returns or to assessments received, except to the  extent that (a) the amount thereof is not individually or in the aggregate material or (b) such Taxes, fees,  assessments and other charges are being contested in good faith by appropriate proceedings diligently  conducted and for which such reserves or other appropriate provisions, if any, as shall be required by GAAP  shall have been made.  Each Loan Party and each of its respective Restricted Subsidiaries has withheld all  employee withholdings and has made all employer contributions to be withheld and made by it pursuant to  applicable law on account of employment insurance and employee income Taxes, except where the failure  to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse  Effect. SECTION 3.10 Properties, Patents, Trademarks, Copyrights, Licenses, Etc.    (a) As of the date hereof, Schedule 3.10(a) hereto sets forth the address of each parcel of real  property that is owned or leased by any Loan Party. Except as set forth on Schedule 3.10(a), (i) each of  such leases and subleases of each Loan Party is valid and enforceable in accordance with its terms and is  in full force and effect, except to the extent that enforceability thereof may be limited by bankruptcy,  insolvency, reorganization, moratorium or other similar laws affecting the enforceability of creditors’ rights  generally or limiting the right of specific performance or by general principles of equity, (ii) no default by  any party to any such lease or sublease exists, and (iii) each of the Loan Parties and each of its Restricted  Subsidiaries has good and indefeasible title to, or valid leasehold interests in, all of its material real and  personal property, free of all Liens other than Permitted Liens except, in the case of (i), (ii) or (iii), to the  extent that the failure of the foregoing to be true would result in a Material Adverse Effect. (b) Each Loan Party and each Restricted Subsidiary of each Loan Party owns or possesses all  the material patents, trademarks, service marks, trade names, copyrights, licenses, registrations, franchises,  permits and rights necessary to own and operate its properties and to carry on its business as presently  conducted and planned to be conducted by such Loan Party or Restricted Subsidiary, without known  possible, alleged or actual conflict with the rights of others, except with respect to any conflict that does  not, individually or in the aggregate, result in a Material Adverse Effect.  Except as set forth on Schedule  3.10(b), each Loan Party’s and each Restricted Subsidiary’s rights with respect to such material patents,  trademarks, service marks, trade names, copyrights, and other Intellectual Property necessary to own and  operate its properties and to carry on its business as presently conducted and planned to be conducted are  not subject to any licensing agreement or similar arrangement (other than (A) restrictions relating to  software licenses that may limit such Loan Party’s ability to transfer or assign any such agreement to a third  party and (B) licensing agreements or similar agreements that do not materially impair the ability of the  Administrative Agent or the Lenders to avail themselves of their rights of disposal and other rights granted  under the Collateral Documents in respect of Inventory).  

 

101 SECTION 3.11 Insurance.  Schedule 3.11 hereto sets forth a description of all insurance  maintained by or on behalf of the Loan Parties as of the date hereof. As of the date hereof, no premiums in  respect of such insurance are overdue.  The properties of each Loan Party and each of its Restricted  Subsidiaries are insured pursuant to policies and other bonds which are valid and in full force and effect  and which provide adequate coverage from reputable and financially sound insurers in amounts sufficient  to insure the assets and risks of each such Loan Party and Restricted Subsidiary in accordance with prudent  business practice in the industry of such Loan Parties and Restricted Subsidiaries.   SECTION 3.12 ERISA Compliance.    (i) Each Plan is in compliance in all respects with the applicable provisions of ERISA,  the Code and other federal or state law, except where the failure to comply does not result in a  Material Adverse Effect.  Each Plan that is intended to qualify under Section 401(a) of the Code  has received from the IRS a favorable determination or opinion letter, which has not by its terms  expired, that such Plan is so qualified, or such Plan is entitled to rely on an IRS advisory or opinion  letter with respect to an IRS-approved master and prototype or volume submitter plan, or a timely  application for such a determination or opinion letter is currently being processed by the IRS with  respect thereto; and, to the best knowledge of the Company, nothing has occurred which would  prevent, or cause the loss of, such qualification.  Except as would not result in a Material Adverse  Effect, (a) the Company and each ERISA Affiliate have made all required contributions to each  Plan subject to Sections 412 or 430 of the Code, and (b) no application for a funding waiver or an  extension of any amortization period pursuant to Sections 412 or 430 of the Code has been made  with respect to any Plan. (ii) Except as would not, either individually or in the aggregate, result in a Material  Adverse Effect, (a) no ERISA Event has occurred or is reasonably expected to occur; (b) no Plan  has any unfunded pension liability (i.e., excess of benefit liabilities over the current value of that  Plan’s assets, determined pursuant to the assumptions used for funding the Plan for the applicable  plan year in accordance with Section 430 of the Code); (c) neither the Company nor any of its ERISA Affiliates has incurred, or reasonably expects to incur, any liability under Title IV of ERISA  with respect to any Plan (other than premiums due and not delinquent under Section 4007 of  ERISA); (d) neither the Company nor any of its ERISA Affiliates has incurred, or reasonably  expects to incur, any liability (and no event has occurred which, with the giving of notice under  Section 4219 of ERISA, would result in such liability) under Section 4201 of ERISA, with respect  to a Multiemployer Plan; (e) neither the Company nor any of its ERISA Affiliates has received  notice that a Multiemployer Plan is insolvent or in critical or endangered status and that additional  contributions are due to the Multiemployer Plan; and (f) neither the Company nor any of its ERISA  Affiliates has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA. SECTION 3.13 Environmental Matters.  Each Loan Party and each Restricted Subsidiary of each  Loan Party is and has been in compliance with applicable Environmental Laws except to the extent that any  non-compliance would not in the aggregate constitute a Material Adverse Effect.  No Loan Party or any  Restricted Subsidiary (i) has incurred an Environmental Liability, (ii) has received notice of any claim with  respect to any Environmental Liability or (iii) has knowledge of any Environmental Liability except, in any  case of (i), (ii) or (iii), where such failure or liability, as the case may be, would not reasonably be expected  to result in a Material Adverse Effect. SECTION 3.14 Labor Matters.  Except as would not reasonably be expected, individually or in the  aggregate, to result in a Material Adverse Effect, (i) there are no strikes, lockouts, slowdowns or any other  labor disputes against Company or any Restricted Subsidiary pending or, to the knowledge of Company,  threatened, (ii) the hours worked by and payments made to employees of Company and the Restricted  

 

102 Subsidiaries have not been in violation of the Fair Labor Standards Act of 1938 or any other applicable  federal, state, provincial, territorial, local or foreign law dealing with such matters and (iii) all payments  due from Company or any Restricted Subsidiary, or for which any claim may be made against Company or  any Restricted Subsidiary, on account of wages and employee health and welfare insurance and other  benefits, have been paid or accrued as a liability on the books of Company or such Restricted Subsidiary to  the extent required by GAAP. The consummation of the Transactions do not give rise to any right of  termination or right of renegotiation on the part of any union under any collective bargaining agreement to  which Company or any Restricted Subsidiary is bound.  SECTION 3.15 Solvency. Before and after giving effect to the transactions contemplated by this  Agreement and the other Loan Documents, including all Indebtedness incurred thereby and the payment of  all fees related thereto, the Loan Parties, taken as a whole are Solvent. SECTION 3.16 Anti-Terrorism Laws and Sanctions. Each Loan Party has implemented and  maintains in effect policies and procedures designed to ensure compliance by such Loan Party, its  Subsidiaries and their respective directors, officers, employees and agents with Anti-Terrorism Laws and  applicable Sanctions, and such Loan Party, its Subsidiaries and their respective officers and directors and,  to the knowledge of such Loan Party, its employees and agents, are in compliance with Anti-Terrorism  Laws and applicable Sanctions in all material respects and are not knowingly engaged in any activity that  would reasonably be expected to result in any Loan Party being designated as a Sanctioned Person. None  of (a) any Loan Party, any Subsidiary or any of their respective directors, officers or, to the knowledge of  any such Loan Party or Subsidiary, employees, or (b) to the knowledge of any such Loan Party or  Subsidiary, any agent of such Loan Party or any Subsidiary that will act in any capacity in connection with  or benefit from the credit facility established hereby, is a Sanctioned Person.  No Borrowing or Letter of  Credit, use of proceeds, Transaction or other transaction contemplated by this Agreement or the other Loan  Documents will violate Anti-Terrorism Laws or applicable Sanctions.  SECTION 3.17 EEA Financial Institutions. No Loan Party is an EEA Financial Institution.  SECTION 3.18 Security Interest in Collateral. The provisions of the Security Agreements create  legal, valid and enforceable (except to the extent that enforceability thereof may be limited by bankruptcy,  insolvency, reorganization, moratorium or other similar laws affecting the enforceability of creditors’ rights  generally or limiting the right of specific performance or by general principles of equity) Liens on the  Collateral granted by the Loan Parties in favor of the Administrative Agent (for the benefit of the Secured  Parties), securing the Secured Obligations.  SECTION 3.19 Credit Card Agreements. All Credit Card Agreements relating to Eligible Credit  Card Accounts are in full force and effect, currently binding upon each Loan Party that is a party thereto  and, to the knowledge of the Loan Parties, binding upon other parties thereto in accordance with their terms  (except to the extent that enforceability thereof may be limited by bankruptcy, insolvency, reorganization,  moratorium or other similar laws affecting the enforceability of creditors’ rights generally or limiting the  right of specific performance or by general principles of equity). The Loan Parties are in compliance in all  material respects with each such Credit Card Agreement.  Annexed hereto as Schedule 3.19 is a list  describing all arrangements as of the date hereof to which any Loan Party is a party with respect to the  processing and/or payment to such Loan Party of the proceeds of any credit card charges, debit card charges,  and other e-commerce charges contemplated by the definition of “Credit Card Accounts” for sales made by  such Loan Party.  SECTION 3.20 Plan Assets; Prohibited Transactions. No Loan Party or any of its Subsidiaries is  an entity deemed to hold “plan assets” (within the meaning of the Plan Asset Regulations), and neither the  execution, delivery or performance of the transactions contemplated under this Agreement, including the  

 

103 making of any Loan and the issuance of any Letter of Credit hereunder, will give rise to a non-exempt  prohibited transaction under Section 406 of ERISA or Section 4975 of the Code.  Should any of the information or disclosures provided on any of the Schedules attached hereto become  outdated or incorrect in any material respect, the Company shall promptly provide the Administrative Agent  in writing with such revisions or updates to such Schedule as may be necessary or appropriate to update or  correct same.  No Schedule shall be deemed to have been amended, modified or superseded by any such  correction or update, nor shall any breach of warranty or representation resulting from the inaccuracy or  incompleteness of any such Schedule be deemed to have been cured thereby, unless and until the Required  Lenders, in their sole and absolute discretion, shall have accepted in writing such revisions or updates to  such Schedule; provided however, that the Company may update Schedule 3.02 without any Lender  approval in connection with any transaction permitted under Sections 6.04 and Section 6.08.  ARTICLE IV. CONDITIONS SECTION 4.01 Closing Date.  This Agreement shall not become effective, and the obligations of  the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become  effective, until the date on which each of the following conditions is satisfied:  (a) Credit Agreement; Fee Letter. The Administrative Agent (or its counsel) shall have  received from each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or  (ii) written evidence satisfactory to the Administrative Agent (which may include facsimile or other  electronic transmission of a signed signature page of this Agreement) that such party has signed a  counterpart of this Agreement.  The Administrative Agent (or its counsel) shall have received from each  person party to the Fee Letter either (A) a counterpart of the Fee Letter signed on behalf of such party or  (B) written evidence satisfactory to the Administrative Agent (which may include facsimile or other  electronic transmission of a signed signature page of this Agreement) that such party has signed a  counterpart of the Fee Letter. (b) Other Loan Documents. The Administrative Agent (or its counsel) shall have received  either (A) a counterpart of each Collateral Document, the Intercompany Subordination Agreement, and any  promissory notes request pursuant to Section 2.10(f), in each case, signed on behalf of each party thereto  or (B) written evidence satisfactory to the Administrative Agent (which may include facsimile or other  electronic transmission of a signed signature page thereof) that each such party has signed a counterpart of  each such Collateral Document, the Intercompany Subordination Agreement, and promissory note.  (c) Lien Searches. The Administrative Agent shall have received the results of a recent lien  search (1) in each jurisdiction where the Loan Parties are organized and (2) in the jurisdiction of each such  entity’s principal place of business, and such searches shall reveal no Liens on any of the assets of the Loan  Parties except for Permitted Liens or subject to satisfactory estoppel letters discharged on or prior to the  Closing Date pursuant to a pay-off letter or other documentation satisfactory to the Administrative Agent. (d) Corporate Structure. The corporate structure, capital structure and other material debt  instruments, material accounts and governing documents of the Borrowers and their Subsidiaries shall be  reasonably acceptable to the Administrative Agent in its Permitted Discretion. (e) Tax Withholding. The Administrative Agent shall have received a properly completed and  signed IRS Form W-8 or W-9, as applicable, for each Loan Party.  

 

104 (f) Legal Due Diligence. The Administrative Agent and its counsel shall have completed all  legal due diligence, the results of which shall be satisfactory to Administrative Agent in its Permitted  Discretion. (g) USA PATRIOT Act, Etc. The Administrative Agent and the Lenders shall have received  (i) all documentation and other information required by bank regulatory authorities under applicable “know  your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act, for  each Loan Party, and (ii) to the extent requested by any Lender or the Administrative Agent from the  Borrower Representative directly at least five (5) Business Days prior to the date hereof, each Borrower, to  the extent qualifying as a “legal entity customer” under the Beneficial Ownership Regulation, shall deliver  to each such Lender or Administrative Agent a Beneficial Ownership Certification at least three (3)  Business Days prior to the date hereof. (h) Opinions. The Administrative Agent shall have received a written opinion of (a) Vorys,  Sater, Seymour and Pease LLP, counsel to the Loan Parties, (b) Morgan, Lewis & Bockius LLC, California  counsel to the Loan Parties, (c) Bradley, Arant, Boult Cummings LLP, Alabama counsel to the Loan Parties,  and (d) Nevada counsel to the Loan Parties, in each case, addressed to the Administrative Agent, the Issuing  Bank and the Lenders and in form and substance reasonably satisfactory to the Administrative Agent and  its counsel.   (i) Financial Statements and Projections. The Lenders shall have received the Statements and  the Projections. (j) Closing Certificates; Certified Certificate of Incorporation; Good Standing Certificates. The Administrative Agent shall have received (i) a certificate of each Loan Party, dated as of the Closing  Date and executed by its Secretary or Assistant Secretary, which shall (A) certify the resolutions of its  Board of Directors, members or other body authorizing the execution, delivery and performance of the Loan  Documents to which it is a party, (B) identify by name and title and bear the signatures of the Responsible  Officers of such Loan Party authorized to sign the Loan Documents to which it is a party, and (C) contain  appropriate attachments, including the certificate or articles of incorporation or organization of each Loan  Party certified by the relevant authority of the jurisdiction of organization of such Loan Party and a true  and correct copy of its by-laws or operating, management or partnership agreement, and (ii) a good standing  certificate for each Loan Party from its jurisdiction of organization or the substantive equivalent available  in the jurisdiction of organization for each Loan Party from the appropriate governmental officer in such  jurisdiction. (k) Collateral and Guaranty Requirement; Perfection Certificate. Subject to Section 5.16, the  Collateral and Guaranty Requirement shall have been satisfied with respect to all Loan Parties as of the  Closing Date and the Administrative Agent shall have received a completed perfection certificate, in form  and substance reasonably satisfactory to the Administrative Agent, dated as of the Closing Date and signed  by a Responsible Officer of the Borrower, together with all attachments contemplated thereby.  (l) Officer’s Certificate. The Administrative Agent shall have received a certificate, signed by  a Responsible Officer of the Borrower Representative, dated as of the Closing Date (i) stating that no  Default has occurred and is continuing, (ii) stating that the representations and warranties contained in the  Loan Documents are true and correct in all material respects as of such date (it being understood and agreed  that any representation or warranty which is subject to any materiality qualifier shall be required to be true  and correct in all respects), (iii) certifying any other factual matters as may be reasonably requested by the  Administrative Agent, (iv) certifying that all regulatory approvals, licenses and consents required for the  delivery and performance by any Loan Party of any Loan Document and the enforceability of any Loan  Document against such Loan Party is in full force and effect and none other is so required or necessary, (v)  

 

105 certifying that each Loan Party is in material compliance with all applicable federal, state, local or territorial  regulations, and (vi) certifying that no default or event of default exists, or will arise after giving effect to  the Transactions on the Closing Date, under the Synthetic Lease Agreement, the Supply Chain Financing  Agreement or the sale leaseback arrangement among the Company and certain of its Subsidiaries and  Affiliates of Oak Street, a division of Blue Owl Capital Inc.  (m) Fees and Expenses. The Lenders and the Administrative Agent shall have received all fees  required to be paid, and all expenses for which invoices have been presented at least one (1) Business Day  prior to the Closing Date (including the reasonable and documented fees and expenses of legal counsel), on  or before the Closing Date. (n) Payoff. The Administrative Agent shall have received a payoff letter from PNC Bank,  National Association, as administrative agent under the Existing Credit Agreement, reasonably satisfactory  in form and substance to the Administrative Agent evidencing that the Existing Credit Agreement has been  or concurrently with the Closing Date is being terminated, all obligations thereunder are being paid in full  (other than the Existing Letters of Credit).  (o) Control Agreements. Subject to Section 5.16, the Administrative Agent shall have received  each deposit account control agreement and securities account control agreement, in form and substance  reasonably satisfactory to the Administrative Agent, required to be provided pursuant to the Security  Agreements. (p) Credit Card Notifications. Subject to Section 5.16, the Administrative Agent shall have  received copies of the Credit Card Notifications duly executed by the applicable Loan Parties with respect  to all Eligible Credit Card Accounts. (q) Solvency. The Administrative Agent shall have received a solvency certificate from a  Financial Officer of the Company. (r) Borrowing Base Certificate. The Administrative Agent shall have received a Borrowing  Base Certificate which calculates the Borrowing Base as of September 21, 2022.  (s) Closing Availability. After giving effect to all Borrowings to be made on the Closing Date,  the issuance (or deemed issuance) of any Letters of Credit on the Closing Date and the payment of all fees  and expenses due hereunder, the Administrative Agent shall be reasonably satisfied that Availability shall not be less than $400,000,000.  (t) Filings, Registrations and Recordings. Each document (including any UCC financing  statement) required by the Collateral Documents or under law or reasonably requested by the  Administrative Agent to be filed, registered or recorded in order to create in favor of the Administrative  Agent, for the benefit of itself, the Lenders and the other Secured Parties, a perfected Lien on the Collateral  described therein, prior and superior in right to any other Person (other than with respect to Permitted  Liens), shall be in proper form for filing, registration or recordation.  (u) Insurance. The Administrative Agent shall have received evidence of insurance coverage  in form, scope, and substance reasonably satisfactory to the Administrative Agent and otherwise in compliance with the terms of Section 5.05 hereof.  (v) [Reserved] 

 

106 (w) No Proceedings.  There shall not be any action, suit, investigation or proceeding pending  or, to the knowledge of the Loan Parties, threatened in any court or before any arbitrator or Governmental  Authority that is reasonably likely to be adversely determined, and if, adversely determined would  reasonably be expected to have a Material Adverse Effect.  (x) Material Adverse Effect. No Material Adverse Effect shall have occurred since January 29, 2022.   (y) Synthetic Lease. The Administrative Agent shall have received a duly executed copy of  an amendment to the Synthetic Lease Agreement (including a waiver or forbearance of all existing events  of default thereunder (if any)), which shall be in full force and effect as of the Closing Date, and in form  and substance reasonably acceptable to the Administrative Agent.  (z) Business Diligence. The Administrative Agent shall have received the final results of a  field examination and inventory appraisal of the Loan Parties’ inventory prepared by third parties  satisfactory to the Administrative Agent, which final reports shall be in form and substance reasonably  satisfactory to the Administrative Agent. For purposes of determining compliance with the conditions specified in this Section 4.01, each  Lender and Issuing Bank that has signed this Agreement shall be deemed to have consented to, approved  or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or  approved by or acceptable or satisfactory to a Lender or Issuing Bank, as applicable, unless the  Administrative Agent shall have received notice from such Lender or Issuing Bank prior to the proposed  Closing Date specifying its objection thereto. The Administrative Agent shall notify the Borrowers, the  Lenders and the Issuing Bank of the Closing Date, and such notice shall be conclusive and binding. SECTION 4.02 Each Credit Event. The obligation of each Lender to make a Loan on the occasion  of any Borrowing, and of the Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject  to the satisfaction of the following conditions: (a) at the time of and immediately after giving effect to such Borrowing or the issuance,  amendment, renewal or extension of such Letter of Credit, as applicable, the representations and warranties  of the Loan Parties set forth in the Loan Documents shall be true and correct in all material respects with  the same effect as though made on and as of the date of such Borrowing or the date of issuance, amendment,  renewal or extension of such Letter of Credit, as applicable (it being understood and agreed that any  representation or warranty which by its terms is made as of a specified date shall be required to be true and  correct in all material respects only as of such specified date, and that any representation or warranty which  is subject to any materiality qualifier shall be required to be true and correct in all respects); (b) at the time of and immediately after giving effect to such Borrowing or the issuance,  amendment, renewal or extension of such Letter of Credit, as applicable, no Default or Event of Default  shall have occurred and be continuing;  (c) after giving effect to any Borrowing or the issuance, amendment, renewal or extension of  any Letter of Credit, the Borrowers shall be in compliance with the Revolving Exposure Limitations; and   (d) the Administrative Agent shall have received any Borrowing requests for such Borrowing  in accordance with the terms and conditions of this Agreement.  

 

107 Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be  deemed to constitute a representation and warranty by the Borrowers on the date thereof as to the matters  specified in paragraphs (a), (b), and (c) of this Section.  Notwithstanding the failure to satisfy the conditions precedent set forth in paragraphs (a) or (b) of  this Section, unless otherwise directed by the Required Lenders, the Administrative Agent may, but shall  have no obligation to, continue to make Loans, and an Issuing Bank may, but shall have no obligation to,  issue, amend, renew or extend, or cause to be issued, amended, renewed or extended, any Letter of Credit  for the ratable account and risk of the Lenders from time to time if the Administrative Agent believes that  making such Loans or issuing, amending, renewing or extending, or causing the issuance, amendment,  renewal or extension of, any such Letter of Credit is in the best interests of the Lenders. ARTICLE V. AFFIRMATIVE COVENANTS  Until the Commitments shall have expired or been terminated and the principal of and interest on  each Loan and all fees, expenses and other amounts payable under any Loan Document or Secured  Obligation (other than contingent or indemnity obligations for which no claim has been made by the Person  entitled thereto) shall have been paid in full and all Letters of Credit shall have expired or have been Cash  Collateralized pursuant to the terms hereof, or terminated, in each case without any pending draw, and all  LC Disbursements shall have been reimbursed, each Loan Party executing this Agreement covenants and  agrees, jointly and severally with all of the other Loan Parties, with the Lenders that: SECTION 5.01 Financial Statements; Borrowing Base and Other Information. The Borrower  Representative will furnish to the Administrative Agent, for distribution to each Lender:  (a) Within ninety (90) calendar days after the end of each fiscal year, financial statements of  the Company and its Subsidiaries consisting of an audited consolidated balance sheet as of the end of such  fiscal year, and related consolidated statements of income, shareholders’ equity and cash flows for the fiscal  year then ended, all in reasonable detail and setting forth in comparative form the financial statements as  of the end of and for the preceding fiscal year, and certified by independent certified public accountants of  nationally recognized standing reasonably satisfactory to the Administrative Agent.  The certificate or  report of accountants shall be free of qualifications (other than any consistency qualification that may result  from a change in the method used to prepare the financial statements as to which such accountants concur)  and shall not indicate the occurrence or existence of any event, condition or contingency which would  materially impair the prospect of payment or performance of any covenant, agreement or duty of any Loan  Party under any of the Loan Documents.   (b) For each of the first three fiscal quarters of each fiscal year of the Company, within forty- five (45) calendar days after the end of any such fiscal quarter, financial statements of the Company and its  Subsidiaries, consisting of a consolidated balance sheet as of the end of such fiscal quarter and related  consolidated statements of income, shareholders’ equity and cash flows for the fiscal quarter then ended  and the fiscal year through that date, all in reasonable detail and certified (subject to normal year-end audit  adjustments and the absence of footnotes) by a Financial Officer of the Company as presenting fairly in all material respects the financial condition and results of operations of the Company and its Subsidiaries on a  consolidated basis in accordance with GAAP, consistently applied, and setting forth in comparative form  the respective financial statements for the corresponding date and period in the previous fiscal year.  (c) [Reserved].  

 

108 (d) Concurrently with any delivery of financial statements under clause (a) or (b) above, a  Compliance Certificate, which shall (i) when delivered concurrently with the delivery of the financial  statements delivered under clause (b), certify that such financial statements present fairly in all material  respects the financial condition and results of operations of the Company and its consolidated Subsidiaries  on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit  adjustments and the absence of footnotes, (ii) certify as to whether a Default has occurred and, if a Default  has occurred, specifying the details thereof and any action taken or proposed to be taken with respect  thereto, (iii) state whether any change in GAAP or in the application thereof has occurred since the date of  the audited financial statements referred to in Section 3.06 and, if any such change has occurred, specifying  the effect of such change on the financial statements accompanying such certificate, (iv) describe whether,  since the later of the date hereof and the date of the last Compliance Certificate, any Loan Party shall have  (A) changed its name as it appears in official filings in the state or province of incorporation or organization,  (B) changed its chief executive office, (C) changed the type of entity that it is, (D) changed its organization  identification number, if any, issued by its state or province of incorporation or other organization, or  (E) changed its state of incorporation or organization, (v) certifying a list of names of all Immaterial  Subsidiaries, that each Subsidiary set forth on such list individually qualifies as an Immaterial Subsidiary  and that all such Subsidiaries in the aggregate do not exceed the limitation set forth in clause (b) of the  definition of the term “Immaterial Subsidiary” and (vi) solely during a Covenant Compliance Event, certify  as to, and contain a calculation of, the Fixed Charge Coverage Ratio for the applicable measurement period  required by Section 6.12.  (e) On or before each Borrowing Base Reporting Date, a Borrowing Base Certificate setting  forth a computation of the Borrowing Base as of the most recently ended fiscal quarter, month or week, as  applicable, to which such Borrowing Base Reporting Date relates, together with supporting information  and any additional reports with respect to the Borrowing Base that the Administrative Agent may  reasonably request. (f) On or before each Borrowing Base Reporting Date, the following information as of the  most recently ended fiscal month or week, as applicable, to which such Borrowing Base Reporting Date  relates, all delivered electronically in a text formatted file in form reasonably acceptable to the  Administrative Agent:  (i) a reasonably detailed aging of the Loan Parties’ Credit Card Accounts; (ii) a schedule detailing the Loan Parties’ Inventory; (iii) a worksheet of calculations prepared by the Loan Parties to determine Eligible  Credit Card Accounts, Eligible Inventory, and Eligible In-Transit Inventory, such worksheets  detailing the Credit Card Accounts and Inventory excluded from Eligible Credit Card Accounts,  Eligible Inventory, and Eligible In-Transit Inventory and the reason for such exclusion;  (iv) a reconciliation of the Loan Parties’ Credit Card Accounts and Inventory between  (A) the amounts shown in the Loan Parties’ general ledger and financial statements and the reports  delivered pursuant to clauses (i) and (ii) above and (B) the amounts and dates shown in the reports  delivered pursuant to clauses (i) and (ii) above and the Borrowing Base Certificate delivered  pursuant to clause (e) above as of such date; and (v) such other information regarding the Collateral or Loan Parties as the  Administrative Agent may from time to time reasonably request. 

 

109 (g) Concurrent with any field exam permitted under Section 5.07 (or at such other times as  agreed upon by the Administrative Agent and the Company), the Borrower Representative shall provide  notice to the Administrative Agent of any removal or addition of any credit card issuer or credit card  processor to the extent that (i) in the case of a removal, Credit Card Accounts of such credit card issuer or  credit card processor were included in any previous Borrowing Base or (ii) in the case of an addition, the  Borrower Representative desires to include the Credit Card Accounts of such credit card issuer or credit  card processor in the Borrowing Base, and concurrently with any such notice of an addition, the Company  shall provide to the Administrative Agent (A) evidence reasonably satisfactory to the Administrative Agent  that a Credit Card Notification shall have been delivered to such credit card issuer or credit card processor,  (B) a true and complete copy of each Credit Card Agreement with respect thereto, together with all material  amendments, waivers and other modifications thereto, and (C) such other information with respect thereto  as may be reasonably requested by the Administrative Agent; for the avoidance of doubt, unless otherwise  agreed by the Administrative Agent, no Credit Card Accounts of an added credit card issuer or credit card  processor may be included in the Borrowing Base until a field exam with respect thereto has been  completed.  (h) Concurrent with delivery thereof to an Other Secured Debt Agent, any additional (or more  frequent) information or reports provided to an Other Secured Debt Agent pursuant to an Other Secured  Debt Loan Agreement (without duplication of reports delivered under this Agreement). The Borrower Representative shall be deemed to have furnished to the Administrative Agent the  financial statements and certificates required to be delivered pursuant to Sections 5.01(a) and (b) and the  reports and other material required by Section 5.02(p)(iv) upon the filing of such financial statements or  material by the Company through the SEC’s EDGAR system (or any successor electronic gathering system)  or the publication by the Company of such financial statements on its website, so long as such system or  website is publicly available; provided that, the Borrower Representative shall, at the reasonable request of  the Administrative Agent or any Lender, promptly deliver electronic or paper copies of such filings together  all accompanying exhibits, attachments, calculations, or other supporting documentation included with such  filing. SECTION 5.02 Notices of Material Events and Delivery of Other Reports. The Borrower  Representative will furnish to the Administrative Agent (for distribution to each Lender) prompt (but in any  event within any time period after such Responsible Officer has such knowledge that may be specified  below) written notice of the following:  (a) Promptly after any Responsible Officer of any Loan Party has learned of the occurrence of  an Event of Default or a Default (and in any event within five (5) Business Days after knowledge thereof),  a certificate signed by a Responsible Officer setting forth the details of such Event of Default or Default  and the action which such Loan Party proposes to take with respect thereto.  (b) Promptly after the commencement thereof (and in any event within five (5) Business Days  after knowledge by a Responsible Officer of the Borrower Representative thereof), notice of all actions,  suits, proceedings or investigations before or by any Governmental Authority or any other Person against  any Loan Party or any Restricted Subsidiary which involve a claim or series of claims that, individually or  in the aggregate would reasonably be expected to have a Material Adverse Effect.  (c) Promptly in the event that any Loan Party or its accountants conclude or advise that any  previously issued financial statement, audit report or interim review should no longer be relied upon or that  disclosure should be made or action should be taken to prevent future reliance.  (d) Promptly upon the occurrence of any ERISA Event.  

 

110 (e) Promptly after any request therefor by the Administrative Agent or any Lender, copies of  (i) any documents described in Section 101(k)(1) of ERISA that any Loan Party or any ERISA Affiliate  may request with respect to any Multiemployer Plan and (ii) any notices described in Section 101(l)(1) of  ERISA that any Loan Party or any ERISA Affiliate may request with respect to any Multiemployer Plan;  provided that if a Loan Party or any ERISA Affiliate has not requested such documents or notices from the  administrator or sponsor of the applicable Multiemployer Plan and is eligible to request such documents or  notices, the applicable Loan Party or the applicable ERISA Affiliate shall promptly make a request for such  documents and notices from such administrator or sponsor and shall provide copies of such documents and  notices promptly after receipt thereof. (f) Within five (5) Business Days after knowledge by a Responsible Officer of the Borrower  Representative of the occurrence of any Casualty with respect to Collateral having a value in the amount of  $22,500,000 or more, whether or not covered by insurance.  (g) Within ten (10) Business Days after knowledge by a Responsible Officer of the Borrower  Representative of the receipt by any Loan Party or any Restricted Subsidiary thereof, any default notice  received under or with respect to any leased location or public warehouse where Collateral in the amount  of $22,500,000 or more is located. (h) Within five (5) Business Days after knowledge by a Responsible Officer of the Borrower  Representative of any dispute, litigation, investigation, proceeding or suspension between any Loan Party  or any Restricted Subsidiary thereof and any Governmental Authority or the commencement of, or any  material development in, any litigation or proceeding affecting any Loan Party or any Subsidiary thereof,  including pursuant to any applicable Environmental Laws, in any case, which would reasonably be expected  to have a Material Adverse Effect;  (i) Within five (5) Business Days after knowledge by a Responsible Officer of the Borrower  Representative of the occurrence of any default or event of default under an Other Secured Debt Loan  Agreement (if any), or receipt of any notice asserting a default or event of default thereunder (together with  a copy of such notice), as well as copies of any amendments to the documents related to such Other Secured  Debt Loan Agreement, as applicable. (j) (A) Within five (5) Business Days after knowledge by a Responsible Officer of the  Borrower Representative (1) of the occurrence of any default or event of default by any Person under any  Credit Card Agreement relating to Credit Cards Accounts contained in the Borrowing Base, (2) the  establishment of, or receipt by any Loan Party of a notice of any proposed establishment of, a reserve or  reserve account (or similar concept), whether in the form of an actual deposit account, book entry or  otherwise, in connection with any Credit Card Agreement for the purposes of securing all or any portion of  any Loan Party’s existing or potential obligations to the applicable credit card issuer or processor under  such Credit Card Agreement, or (3) that any credit card issuer, credit card processor or debit card issuer or  provider with respect to Credit Card Accounts ceases to meet the requirements of clause (f) of the definition  of “Eligible Credit Card Accounts” and (B) on and at the time of submission to the Administrative Agent  of the Borrowing Base Certificate after a Responsible Officer of the Borrower Representative has  knowledge that any Loan Party has entered into a material amendment, waiver or other modification of a  Credit Card Agreement applicable to any Credit Card Account included in the Borrowing Base.  (k) Within five (5) Business Days after knowledge by a Responsible Officer of the Borrower  Representative of the filing of any Lien against any Loan Party with respect to any delinquent Taxes in  excess of $4,500,000.  

 

111 (l) Within five (5) Business Days after knowledge by a Responsible Officer of the Borrower  Representative of any change in the information provided in the Beneficial Ownership Certification that  would result in a change to the list of the beneficial owners identified in parts (c) or (d) of such certification. (m) Promptly after knowledge by a Responsible Officer of the Borrower Representative of any  other development that results, or would reasonably be expected to result in, a Material Adverse Effect. (n) Promptly after knowledge by a Responsible Officer of a Loan Party, report to  Administrative Agent all matters materially affecting the value, enforceability or collectability of any  portion of the Collateral, including any Loan Parties’ reclamation or repossession of, or the return to any  Loan Party of, a material amount of goods or claims or disputes asserted by any customer or other obligor.  (o) (i) Concurrently with the delivery of each Compliance Certificate pursuant to Section  5.01(d), an up-to-date report summarizing the Loan Parties’ stores, offices and other places of business that  have been (x) closed during the most recently ended fiscal quarter and (y) opened during the most recently  ended fiscal quarter, (ii) if the Loan Parties close a net amount (taking into account new store openings in  the applicable calendar quarter) of ten (10) or more stores in any fiscal quarter as part of a single transaction  or series of related transactions, prompt notice thereof and (iii) promptly after knowledge by a Responsible  Officer of a Loan Party, notice of any labor dispute to which any Loan Party may become a party, any  strikes or walkouts relating to any of its plants or other facilities, and the expiration of any labor contract to  which any Loan Party is a party or by which any Loan Party is bound.  (p) No later than sixty (60) days after the first day of each fiscal year, the annual budget and a  copy of the plan and forecast (including monthly projected consolidated balance sheets, income statements  and cash flow statements) of the Company and its Subsidiaries for each quarter of such fiscal year.  (q) Promptly upon their becoming available to the Loan Parties:  (i) Any reports including management letters submitted to any Loan Party by  independent accountants in connection with any annual or interim audit of financial statements;  and  (ii) Reports, including Forms 10-K, 10-Q and 8-K, registration statements and  prospectuses and other shareholder communications, filed by any Loan Party with the SEC, or with  any national securities exchange, or distributed by the Company to its shareholders generally, as  the case may be. (r) Promptly following any request therefor, information and documentation reasonably  requested by the Administrative Agent or any Lender for purposes of compliance with applicable “know  your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act and  the Beneficial Ownership Regulation. (s) Promptly upon receipt thereof, the receipt of any notice from a supplier, seller, or agent  pursuant to PACA. (t) [Reserved].  (u) Promptly following any request therefor, such other information regarding the operations,  business affairs and financial condition of any Loan Party or any Restricted Subsidiary, or compliance with  the terms of this Agreement, as the Administrative Agent or any Lender may reasonably request. 

 

112 SECTION 5.03 Preservation of Existence, Etc. Each Loan Party shall, and shall cause each of its  Restricted Subsidiaries to, maintain its legal existence as a corporation, limited partnership, limited liability  company or unlimited liability company, as applicable, and its license or qualification and good standing  (a) in its jurisdiction of incorporation or organization, and (b) in each jurisdiction in which its ownership or  lease of property or the nature of its business makes such license or qualification necessary, except with  respect to clause (b), except where the failure to so maintain any license or qualification would not  reasonably be expected to result in a Material Adverse Effect; provided that the foregoing shall not prohibit  any merger, amalgamation, consolidation, liquidation, dissolution, disposition or other transaction  permitted under Section 6.04 or Section 6.08.  SECTION 5.04 Payment of Liabilities, Including Taxes, Etc. Each Loan Party shall, and shall  cause each of its Restricted Subsidiaries to, duly pay and discharge all liabilities to which it is subject or  which are asserted against it, promptly as and when the same shall become due and payable, including all  Taxes and governmental charges upon it or any of its properties, assets, income or profits, prior to the date  on which penalties attach thereto, unless such liabilities, including Taxes or similar charges, are being  contested in good faith and by appropriate and lawful proceedings diligently conducted and for which such  reserve or other appropriate provisions, if any, as shall be required by GAAP shall have been made, except  to the extent that the failure to pay or discharge any such liabilities would not reasonably be expected to  result in a Material Adverse Effect. SECTION 5.05 Maintenance of Insurance.  Each Loan Party shall, and shall cause each of its  Restricted Subsidiaries to, insure its properties and assets against loss or damage by fire and such other  insurable hazards as such assets are commonly insured (including fire, extended coverage, property  damage, workers’ compensation, public liability and business interruption insurance) and against other risks  (including errors and omissions) in such amounts as similar properties and assets are insured by prudent  companies in similar circumstances carrying on similar businesses, and with reputable and financially  sound insurers having a financial strength rating of at least A- by A.M. Best Company (or otherwise  reasonably satisfactory to the Administrative Agent) and including self-insurance to the extent customary  (but not with respect to insurance on the ABL Priority Collateral), all as reasonably acceptable by the  Administrative Agent and as may be required pursuant to the terms of the Collateral Documents.  At the  request of the Administrative Agent, the Loan Parties shall deliver to the Administrative Agent (x) annually  a certificate of insurance signed by the Loan Parties’ independent insurance broker describing and certifying  as to the existence of the insurance on the Collateral required to be maintained by this Agreement and the  other Loan Documents, (y) copies of the endorsements described in the next two (2) sentences attached to  such certificate, and (z) from time to time a summary schedule indicating all insurance then in force with  respect to each of the Loan Parties.  All insurance policies required in this clause shall name the  Administrative Agent (for the benefit of the Administrative Agent and the Secured Parties) as an additional insured, as applicable, and with respect to casualty policies covering Collateral, as mortgagee or as lender’s loss payee, as applicable, and shall contain lender loss payable clauses or mortgagee clauses, as applicable,  through endorsements in form and substance reasonably satisfactory to the Administrative Agent.   Additionally, such policies of insurance shall provide that it shall not be canceled, modified or not renewed  (i) by reason of nonpayment of premium except upon not less than ten (10) days’ prior written notice thereof  by the insurer to the Administrative Agent or (ii) for any other reason except upon not less than thirty (30)  days’ prior written notice thereof by the insurer to the Administrative Agent.  The applicable Loan Parties  shall notify the Administrative Agent promptly of any occurrence causing a material loss or decline in value  of the Collateral and the estimated (or actual, if available) amount of such loss or decline.  Subject in all  cases to the provisions of this Agreement (including, without limitation, Section 5.12), any monies received  by the Administrative Agent constituting insurance proceeds may, at the option of the Administrative  Agent, be applied by the Administrative Agent to the payment of the Obligations in accordance with the  terms of this Agreement. 

 

113 SECTION 5.06 Maintenance of Properties. Each Loan Party shall, and shall cause each of its  Restricted Subsidiaries to, maintain in good repair, working order and condition (ordinary wear and tear  excepted) in accordance with the general practice of other businesses of similar character and size, all of  those properties useful or necessary to its business, and from time to time, such Loan Party will make or  cause to be made all appropriate repairs, renewals or replacements thereof, except where the failure to do  so would not reasonably be expected to have a Material Adverse Effect.  SECTION 5.07 Inspection Rights; Appraisals.  (a) Each Loan Party shall, and shall cause each of its Restricted Subsidiaries to, permit any of  the officers or authorized employees or representatives of the Administrative Agent (including any  consultants, accountants, and agents retained by the Administrative Agent), as and when determined by the  Administrative Agent in its Permitted Discretion, upon reasonable prior notice and during normal business  hours of the Loan Parties, to visit and inspect its properties, to conduct at such Loan Party’s premises field  examinations of such Loan Party’s assets, liabilities, books and records, including examining and making  extracts from its books and records, and to discuss its affairs, finances and condition with its officers and  independent accountants, all at such reasonable times and as often as reasonably requested.  So long as  Availability is greater than seventy-five percent (75%) of the Maximum Credit Amount (and no Event of  Default has occurred and is continuing), the Administrative Agent may not conduct any such field  examinations pursuant to this Section 5.07(a); provided, however, if, at any time during any twelve (12)  month period, Availability is less than or equal to seventy-five percent (75%) of the Maximum Credit  Amount for a period of five (5) consecutive Business Days, the field examinations contemplated by this  Section 5.07(a) shall be limited to one per such twelve (12) month period (excluding the field examination  conducted prior to the Closing Date) unless (1) an Event of Default has occurred and is continuing (during  which time there shall be no limit on the number of field examinations) or (2) Availability is at any time  during such twelve (12) month period is less than the greater of (a) $112,500,000 and (b) 15% of the  Maximum Credit Amount for five (5) consecutive Business Days, in which case of clause (2), one additional  field examination per such twelve (12) month period (excluding the field examination conducted prior to  the Closing Date) may be done at the expense of the Loan Parties. For the avoidance of doubt, all such  examinations and evaluations conducted during an Event of Default shall be at the expense of the Loan Parties. Each Loan Party acknowledges that the Administrative Agent, after exercising its rights of  inspection, may prepare and distribute to the Lenders certain Reports pertaining to such Loan Party’s assets  for internal use by the Administrative Agent and the Lenders. (b) At the Administrative Agent’s request in its Permitted Discretion, the Borrower  Representative will provide the Administrative Agent (for distribution to each Lender) with appraisals or  updates thereof of the Loan Parties’ Inventory from an appraiser engaged by Administrative Agent, and  prepared on a basis reasonably satisfactory to the Administrative Agent, such appraisals and updates to  include, without limitation, information required by any applicable Requirement of Law.  So long as  Availability is greater than seventy-five percent (75%) of the Maximum Credit Amount (and no Event of  Default has occurred and is continuing), the Administrative Agent may not conduct any such inventory  appraisals pursuant to this Section 5.07(b); provided, however, if, at any time during any twelve (12) month  period, Availability is less than or equal to seventy-five percent (75%) of the Maximum Credit Amount for  a period of five (5) consecutive Business Days, the inventory appraisals contemplated by this Section  5.07(b) shall be limited to one per such twelve (12) month period (excluding the inventory appraisal  conducted prior to the Closing Date) unless (1) an Event of Default has occurred and is continuing (during  which time there shall be no limit on the number of inventory appraisal) or (2) Availability is at any time  during such twelve (12) month period is less than the greater of (a) $112,500,000 and (b) 15% of the  Maximum Credit Amount for five (5) consecutive Business Days, in which case of clause (2), one additional  inventory appraisal per such twelve (12) month period (excluding the inventory appraisal conducted prior  to the Closing Date) may be done at the expense of the Loan Parties.  For the avoidance of doubt, all such  

 

114 appraisals commenced during the existence of an Event of Default shall be at the expense of the Loan  Parties.    SECTION 5.08 Keeping of Records and Books of Account.  Each Loan Party shall, and shall cause  each Restricted Subsidiary of such Loan Party to, maintain and keep proper books of record and account  which enable such Loan Party and its Restricted Subsidiaries to issue financial statements in accordance  with GAAP and as otherwise required by applicable Laws of any Governmental Authority having  jurisdiction over such Loan Party or any Restricted Subsidiary of such Loan Party, and in which full, true  and correct entries shall be made in all material respects of all its dealings and business and financial affairs. SECTION 5.09 Compliance with Laws and Material Contractual Obligations. Each Loan Party  shall, and shall cause each of its Restricted Subsidiaries to, comply with all applicable Requirements of  Law, including all Environmental Laws, in all respects, except, where the failure to do so, individually or  in the aggregate, would not reasonably be expected to result in a Material Adverse Effect (except in the  case of Anti-Terrorism Laws and Sanctions, with respect to which compliance shall be governed by Section  5.11). Each Loan Party will, and will cause each Restricted Subsidiary to perform in all material respects  its obligations under material agreements to which it is a party, except (A) where the validity or amount  thereof is being contested in good faith by appropriate proceedings, or (B) where the failure to do so,  individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect. The Company will maintain in effect and enforce policies and procedures designed to ensure compliance  by the Company, its Restricted Subsidiaries and their respective directors, officers, employees and agents  with Anti-Terrorism Laws and applicable Sanctions. SECTION 5.10 Use of Proceeds.  The Loan Parties will use the Letters of Credit and the proceeds  of the Loans to (a) refinance existing Indebtedness on the Closing Date and to pay fees and expenses  incurred in connection with the Transactions, (b) provide working capital to the Borrowers, and (c) for  general corporate purposes of the Borrowers, in each case to the extent not prohibited under the terms of  this Agreement or any other Loan Document.  No part of the proceeds of any Loan and no Letter of Credit  will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations  of the Board, including Regulations T, U and X.  SECTION 5.11 Anti-Terrorism Laws; International Trade Law Compliance.  (a) No Relevant  Entity will become a Sanctioned Person, (b) no Relevant Entity, either in its own right or through any third  party, will (i) have any of its assets in a Sanctioned Country or in the possession, custody or control of a  Sanctioned Person in violation of any Anti-Terrorism Law; (ii) do business in or with, or directly derive  any of its income from investments in or transactions with, any Sanctioned Country or Sanctioned Person  in violation of any Anti-Terrorism Law; (iii) engage in any dealings or transactions prohibited by any Anti- Terrorism Law; or (iv) use the Loans or Letters of Credit or any proceeds therefrom to fund any operations  in, finance any investments or activities in, or, make any payments to, a Sanctioned Country or Sanctioned  Person in violation of any Anti-Terrorism Law or would otherwise result in any violation of any Anti- Terrorism Laws or Sanctions; (c) the funds used to repay the Obligations will not be derived from any  unlawful activity or in any manner that would cause a party to this Agreement to be in breach of any Anti- Terrorism Laws or Sanctions, (d) each Relevant Entity shall comply with all Anti-Terrorism Laws, and (e) the Company shall promptly notify the Administrative Agent in writing upon the occurrence of a  Reportable Compliance Event. SECTION 5.12 Casualty.  In respect of any loss or damage to the Collateral resulting from fire,  vandalism, malicious mischief or any other casualty or physical harm (a “Casualty”) which affects a  material portion of the Inventory included in the Borrowing Base, the Borrower Representative will and  will cause each applicable Loan Party to comply in all respects with the provisions of this Section 5.12. The Borrower Representative shall comply with its notice obligations in respect of Casualties relating to  

 

115 Inventory pursuant to Section 5.02(f).  Except during the existence of an Event of Default, the Company or  such Loan Party may adjust, settle and compromise any such insurance claim or any proposed  condemnation award and shall collect the Net Proceeds thereof and have the right to repair, refurbish,  restore, replace or rebuild any asset affected by such Casualty (for the avoidance of doubt, without the  obligation to make any mandatory prepayment of the Revolving Loans under Section 2.11(b) as a result  thereof during the period beginning on the day of such Casualty and ending on the date that any such repair,  refurbishment, restoration, replacement or rebuilding is complete). The Company and such Loan Party will  in good faith file and prosecute all claims necessary to obtain any such Net Proceeds. If an Event of Default  exists and is continuing, then the Administrative Agent may appear in any such proceedings and  negotiations and effect such settlement and such collection of any Net Proceeds, and the Borrower  Representative and the applicable Loan Party each hereby authorizes the Administrative Agent, at its  option, to adjust, settle, compromise and collect any Net Proceeds under any insurance with respect to such  Collateral and any Net Proceeds pursuant to any Casualty with respect to such Collateral, and, until such  time as such Event of Default no longer exists, each such Loan Party hereby irrevocably appoints the  Administrative Agent as its attorney-in-fact, coupled with an interest, for such purposes. SECTION 5.13 [Reserved].    SECTION 5.14 Additional Collateral; Further Assurances.  (a) Subject to applicable law, each Loan Party will cause each Restricted Subsidiary that is formed or acquired after the date of this Agreement (and is not an Excluded Subsidiary), that becomes a  Restricted Subsidiary after the date hereof (and is not an Excluded Subsidiary) or that ceases to be an  Excluded Subsidiary after the date hereof in accordance with the terms of this Agreement within sixty (60)  days (in each case, as such time may be extended in the Administrative Agent’s sole discretion) to become  a Borrower or a Guarantor pursuant to a Joinder Agreement and take all such further actions (including  authorizing the filing and recording of financing statements, fixture filings, and other documents) that are  required under the Collateral Documents or this Agreement to cause the Collateral and Guaranty  Requirement to be satisfied with respect to such Subsidiary. Upon execution and delivery thereof, each  such Person (i) shall automatically become a Borrower or Guarantor, as applicable hereunder and thereupon  shall have all of the rights, benefits, duties, and obligations in such capacity under the Loan Documents and  (ii) will grant Liens to the Administrative Agent, for the benefit of the Administrative Agent and the Secured  Parties, in any property of such Loan Party which constitutes Collateral, under the Security Agreement.   With respect to any Excluded Subsidiary formed or acquired after the date of this Agreement and the Equity  Interests of which are directly owned by a Loan Party and required to be pledged to the Administrative  Agent pursuant to the Security Agreement, the applicable Loan Party shall, within sixty (60) days (in each  case, as such time may be extended in the Administrative Agent’s sole discretion) of the formation or  acquisition of such Excluded Subsidiary notify the Administrative Agent thereof.  (b) The Loan Parties will execute any and all further documents, agreements and instruments,  and take all such further actions (including authorizing the filing and recording of financing statements,  fixture filings, and other documents) which may be required by any Requirement of Law or which the  Administrative Agent may, from time to time, reasonably request, to cause the Collateral and Guaranty  Requirement to be and remain satisfied at all times.   SECTION 5.15 Environmental Laws.  Except where the failure to do so would not reasonably be  expected to have Material Adverse Effect, the Company and each Restricted Subsidiary shall (i) conduct  its operations and keep and maintain all of its real property in compliance with all Environmental Laws;  (ii) obtain and renew all environmental permits necessary for its operations and properties; and  (iii) implement any and all investigation, remediation, removal and response actions that are necessary to comply with Environmental Laws pertaining to the presence, generation, treatment, storage, use, disposal,  

 

116 transportation or Release of any Hazardous Materials into, on, at, under, above or from any of its Real  Estate, provided, however, that neither a Loan Party nor any of its Restricted Subsidiaries shall be required  to undertake any such cleanup, removal, remedial or other action to the extent that its obligation to do so is  being contested in good faith and by proper proceedings and adequate reserves have been set aside and are  being maintained by the Loan Parties with respect to such circumstances in accordance with GAAP. SECTION 5.16 Post-Closing Covenants. The Loan Parties will execute and deliver the documents  and complete the tasks set forth on Schedule 5.16, in each case within the time limits specified on such  schedule (or such longer period as the Administrative Agent may agree in its sole discretion). ARTICLE VI. NEGATIVE COVENANTS Until the Commitments shall have expired or been terminated and the principal of and interest on  each Loan and all fees, expenses and other amounts payable under any Loan Document or Secured  Obligation (other than contingent or indemnity obligations for which no claim has been made by the Person  entitled thereto) shall have been paid in full and all Letters of Credit shall have expired or have been Cash  Collateralized pursuant to the terms hereof, or terminated, in each case without any pending draw, and all  LC Disbursements shall have been reimbursed, each Loan Party executing this Agreement covenants and  agrees, jointly and severally with all of the other Loan Parties, with the Lenders that: SECTION 6.01 Indebtedness. No Loan Party will, nor will it permit any Restricted Subsidiary to,  directly or indirectly, Incur any Indebtedness (including Acquired Indebtedness) or issue any shares of  Disqualified Stock; and the Company shall not permit any of the Restricted Subsidiaries (other than any  Loan Party) to issue any shares of Preferred Stock, except: (a) the Incurrence by the Company or any Restricted Subsidiary of Indebtedness pursuant to  any Loan Document;  (b) Indebtedness under any secured loan agreement, indenture, note purchase agreement or  other facility (“Other Secured Debt Loan Agreement”) and related documentation, in each case, such  documentation acceptable to the Administrative Agent in its Permitted Discretion (the documents under  this clause (b) and solely to the extent the applicable Indebtedness thereunder is incurred in reliance on this  clause (b), collectively, the “Other Secured Debt Documents”), in an aggregate original principal amount  under this clause (b) not to exceed $600,000,000 (collectively, the “Other Secured Debt”); provided that,  in the case of any Other Secured Debt, (1) any Lien on the ABL Priority Collateral shall be junior to the  Liens on the ABL Priority Collateral securing the Secured Obligations and (2) the Collateral Documents  shall be amended and/or supplemented, in any such case in a form reasonably satisfactory to the  Administrative Agent, to provide for a Lien in favor of the Administrative Agent on any additional assets  (other than Real Estate) used to secure the Other Secured Debt Obligations, which Lien shall be junior to  the Lien of the agent under any Other Secured Debt Documents on such assets, in all cases, pursuant to any ABL Intercreditor Agreement and/or a junior lien intercreditor agreement or collateral trust agreement  reasonably satisfactory to the Administrative Agent and the Required Lenders reflecting the junior-lien  status of the Liens securing such Indebtedness as it relates to ABL Priority Collateral; (c) Indebtedness, Preferred Stock and Disqualified Stock existing on the date hereof (other  than Indebtedness described in clauses (a) and (b) above) and, if such Indebtedness is for borrowed money  and is in excess of $22,500,000, individually or in the aggregate, in such amounts outstanding on the date  hereof and set forth in Schedule 6.01;  

 

117 (d) Indebtedness (including Finance Lease Obligations) Incurred by any Loan Party or any  Restricted Subsidiary, Disqualified Stock issued by any Loan Party or any Restricted Subsidiary and  Preferred Stock issued by any Restricted Subsidiary to finance (whether prior to or within 180 days after)  the acquisition, lease, construction, repair, replacement or improvement of property (real or personal) or  equipment (whether through the direct purchase of assets or the Equity Interests of any Person owning such  assets); provided that, (x) the principal amount of such Indebtedness does not exceed the cost of acquiring,  constructing or improving such property (real or personal) or equipment and (y) the principal amount of  such Indebtedness, Disqualified Stock and Preferred Stock, when aggregated with the principal amount or  liquidation preference of all other Indebtedness, Disqualified Stock and Preferred Stock then outstanding  and Incurred or issued pursuant to this clause (d), together with any Refinancing Indebtedness in respect  thereof Incurred pursuant to clause (n) below, does not exceed at any one time outstanding the greater of  $35,000,000 and 14% of Consolidated EBITDA, calculated on a pro forma basis giving effect to such  Indebtedness, Disqualified Stock, or Preferred Stock, as applicable, and based on the most recently  completed Test Period (plus, in the case of any Refinancing Indebtedness, the Additional Refinancing  Amount);  (e) Indebtedness Incurred by any Loan Party or any Restricted Subsidiary constituting  reimbursement obligations with respect to letters of credit and bank guarantees issued in the ordinary course  of business, including, without limitation, letters of credit in respect of workers’ compensation claims,  health, disability or other benefits to employees or former employees or their families or property, casualty  or liability insurance or self-insurance and letters of credit in connection with the maintenance of, or  pursuant to the requirements of, Environmental Law, and other Indebtedness with respect to reimbursement  type obligations regarding workers’ compensation claims;  (f) unsecured Indebtedness arising from agreements of a Loan Party or any Restricted  Subsidiary providing for indemnification, adjustment of acquisition or purchase price or similar obligations  (including earn-outs), in each case, Incurred or assumed in connection with the any Investments or any  acquisition or disposition of any business, assets or a Subsidiary not prohibited by this Agreement, other  than guarantees of Indebtedness Incurred by any Person acquiring all or any portion of such business, assets  or Subsidiary for the purpose of financing such acquisition;  (g) shares of Preferred Stock of a Restricted Subsidiary issued to the Company or another  Restricted Subsidiary; provided that any subsequent issuance or transfer of any Equity Interests or any other  event which results in any Restricted Subsidiary that holds such shares of Preferred Stock of another  Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent transfer of any such  shares of Preferred Stock (except to the Company or another Restricted Subsidiary) shall be deemed, in  each case, to be an issuance of shares of Preferred Stock not permitted by this clause (g); (h) without in any way limiting the applicability of Section 6.02, Indebtedness of the Company  or a Restricted Subsidiary to the Company or a Restricted Subsidiary; provided that if a Loan Party incurs  such Indebtedness to a Restricted Subsidiary that is not a Loan Party (except in respect of intercompany  current liabilities incurred in the ordinary course of business in connection with the cash management, tax  and accounting operations of the Company and its Subsidiaries), such Indebtedness is subordinated in right  of payment to the Secured Obligations pursuant to the Intercompany Subordination Agreement; provided,  further, that any subsequent issuance or transfer of any Equity Interests or any other event which results in  any Restricted Subsidiary holding such Indebtedness ceasing to be a Restricted Subsidiary or any other  subsequent transfer of any such Indebtedness (except to the Company or another Restricted Subsidiary or  any pledge of such Indebtedness constituting a Permitted Lien but not the transfer thereof upon foreclosure)  shall be deemed, in each case, to be an Incurrence of such Indebtedness not permitted by this clause (h); (i) [Reserved];  

 

118 (j) Swap Agreement Obligations that are not incurred for speculative purposes but (A) for the  purpose of fixing or hedging interest rate risk with respect to any Indebtedness that is permitted by the terms  of this Agreement to be outstanding; (B) for the purpose of fixing or hedging currency exchange rate risk  with respect to any currency exchanges; or (C) for the purpose of fixing or hedging commodity price risk  with respect to any commodity purchases or sales and, in each case, extensions or replacements thereof; (k) obligations (including reimbursement obligations with respect to letters of credit, bank  guarantees, warehouse receipts and similar instruments) in respect of indemnities, warranties, statutory  obligations, performance, bid, appeal and surety bonds, completion guarantees and similar obligations  provided by a Loan Party or any Restricted Subsidiary, in each case incurred in the ordinary course of  business or consistent with past practice or industry practice;  (l) Indebtedness or Disqualified Stock of the Company or Indebtedness, Disqualified Stock or  Preferred Stock of any Restricted Subsidiary in an aggregate principal amount or liquidation preference,  which when aggregated with the principal amount and liquidation preference of all other Indebtedness,  Disqualified Stock and Preferred Stock then outstanding and Incurred pursuant to this clause (l), together  with any Refinancing Indebtedness in respect thereof incurred pursuant to clause (n) below, does not exceed  at any one time outstanding the greater of $100,000,000 and 40% of Consolidated EBITDA, calculated on  a pro forma basis giving effect to such Indebtedness, Disqualified Stock or Preferred Stock, as applicable,  and based on the most recently completed Test Period (plus, in the case of any Refinancing Indebtedness,  the Additional Refinancing Amount);  (m) any guarantee by a Loan Party or any Restricted Subsidiary of Indebtedness or other  obligations of a Loan Party or any Restricted Subsidiary so long as the Incurrence of such Indebtedness  Incurred by such Loan Party or such Restricted Subsidiary is not prohibited under the terms of this  Agreement; provided that (A) if such Indebtedness is by its express terms subordinated in right of payment  to the Secured Obligations by such Restricted Subsidiary, as applicable, any such guarantee with respect to  such Indebtedness shall be subordinated in right of payment to the Secured Obligations, substantially to the  same extent as such Indebtedness is subordinated to the Secured Obligations, and (B) the aggregate  principal amount of Indebtedness or other obligations of a Restricted Subsidiary that is not a Loan Party  guaranteed by a Loan Party in reliance on this clause (m) shall not exceed at any one time outstanding the  greater of $25,000,000 and 10% of Consolidated EBITDA, calculated on a pro forma basis giving effect to  such Indebtedness and based on the most recently completed Test Period; (n) the Incurrence by a Loan Party or any Restricted Subsidiary of Indebtedness or Disqualified  Stock, or by any Restricted Subsidiary of Preferred Stock, that serves to refund, refinance or defease any  Indebtedness Incurred or Disqualified Stock or Preferred Stock issued as permitted under clauses (b), (c),  (d), (l) and (n) of this Section 6.01 up to the outstanding principal amount (or, if applicable, the liquidation  preference, face amount, or the like) or, if greater, committed amount (only to the extent the committed  amount could have been Incurred on the date of initial Incurrence and was deemed Incurred at such time  for the purposes of this Section 6.01) of such Indebtedness, Disqualified Stock or Preferred Stock, in each  case at the time such Indebtedness was Incurred or Disqualified Stock or Preferred Stock was issued  pursuant to clauses (b), (c), (d), (l) and (n) of this Section 6.01, or any Indebtedness, Disqualified Stock or  Preferred Stock Incurred or issued to so refund or refinance such Indebtedness, Disqualified Stock or  Preferred Stock plus any additional Indebtedness, Disqualified Stock or Preferred Stock Incurred or issued  to pay premiums (including tender premiums), accrued and unpaid interest, expenses, defeasance costs and  fees in connection therewith (subject to the following proviso, “Refinancing Indebtedness”) prior to its  respective maturity; provided, however, that: (i) such Refinancing Indebtedness has a Weighted Average Life to Maturity at the  time such Refinancing Indebtedness is Incurred which is not less than the shorter of (x) the  

 

119 remaining Weighted Average Life to Maturity of the Indebtedness, Disqualified Stock or Preferred  Stock being refunded, refinanced or defeased and (y) the Weighted Average Life to Maturity that  would result if all payments of principal on the Indebtedness, Disqualified Stock or Preferred Stock  being refunded or refinanced that were due on or after the date that is one year following the  Maturity Date were instead due on such date;  (ii) to the extent such Refinancing Indebtedness refinances (a) Indebtedness junior in  right of payment to the Secured Obligations, such Refinancing Indebtedness is junior in right of  payment to the Secured Obligations, (b) Disqualified Stock or Preferred Stock, such Refinancing  Indebtedness is Disqualified Stock or Preferred Stock, (c) Indebtedness secured by a Lien on the  Collateral that is pari passu with or junior to the Lien on the Collateral securing the Secured  Obligations, such Refinancing Indebtedness (if secured) is secured by a Lien on the Collateral that  is, as applicable, pari passu with or junior to the Lien on the Collateral securing the Secured  Obligations to the same extent as such Indebtedness being refinanced (or that is junior thereto), and  a Senior Representative of such Refinancing Indebtedness acting on behalf of the holders of such  Indebtedness shall have become party to or otherwise subject to the provisions of any ABL Intercreditor Agreement and/or a junior lien intercreditor agreement or collateral trust agreement  reasonably satisfactory to the Administrative Agent and the Required Lenders reflecting the junior- lien status of the Liens securing such Indebtedness as it relates to Collateral, or (d) obligations  under an Other Secured Debt Loan Agreement (if any), the Lien on the Collateral securing such  Indebtedness shall have the priorities contemplated by, as applicable, any ABL Intercreditor  Agreement (or priorities junior thereto), and a Senior Representative of such Refinancing  Indebtedness acting on behalf of the holders of such Indebtedness shall have become party to or  otherwise subject to the provisions of any ABL Intercreditor Agreement; and (iii) such Refinancing Indebtedness shall not include Indebtedness of a Restricted  Subsidiary that is not a Loan Party that refinances Indebtedness of the Company or another Loan  Party or (y) Indebtedness of the Company or a Restricted Subsidiary that refinances Indebtedness  of an Unrestricted Subsidiary; (o) unsecured Indebtedness of the Company that is equity-linked (including, without  limitation, Indebtedness that is convertible into Equity Interests of the Company) and not guaranteed by  any Subsidiary of the Company in an amount not to exceed $225,000,000 at any time outstanding;  (p) [Reserved]; (q) Indebtedness arising from the honoring by a bank or other financial institution of a check,  draft or similar instrument drawn against insufficient funds in the ordinary course of business; provided  that such Indebtedness is extinguished within five (5) Business Days of its Incurrence; (r) Indebtedness of a Loan Party or any Restricted Subsidiary supported by a Letter of Credit,  in a principal amount not in excess of the stated amount of such Letter of Credit; (s) [Reserved]; (t) Indebtedness of any Loan Party or any Restricted Subsidiary consisting of (A) the financing  of insurance premiums or (B) take-or-pay obligations contained in supply arrangements, in each case, in  the ordinary course of business; (u) Indebtedness consisting of Indebtedness of the Company or a Restricted Subsidiary to  current or former officers, directors and employees thereof or any direct or indirect parent thereof, their  

 

120 respective estates, spouses or former spouses, in each case to finance the purchase or redemption of Equity  Interests of the Company or any direct or indirect parent of the Company to the extent described in Section  6.02(b)(iv);  (v) Indebtedness in respect of obligations of the Company or any Restricted Subsidiary to pay  the deferred purchase price of goods or services or progress payments in connection with such goods and  services; provided that such obligations are incurred in connection with open accounts extended by  suppliers on customary trade terms in the ordinary course of business and not in connection with the  borrowing of money or any Swap Agreement Obligations;  (w) [Reserved]; (x) [Reserved]; (y) Indebtedness of any Person that becomes a Restricted Subsidiary after the date hereof;  provided that such Indebtedness exists at the time such Person becomes a Restricted Subsidiary and is not  created in contemplation of or in connection with such Person becoming a Restricted Subsidiary;  (z) Indebtedness in respect of the financing of insurance premiums in the ordinary course of  business or consistent with past practice or industry practice; (aa) Indebtedness to customs brokers, freight forwarders, common carriers, landlords and  similar Persons, in each case incurred in the ordinary course of business or consistent with past practice; (bb) [Reserved];  (cc) Indebtedness owed on a short-term basis to banks and other financial institutions incurred  in the ordinary course of business of the Company and its Restricted Subsidiaries with such banks or  financial institutions that arises in connection with ordinary banking arrangements, including cash  management, cash pooling arrangements and related activities to manage cash balances of the Company  and its Subsidiaries, including treasury, depository, overdraft, credit, purchasing or debit card, electronic  funds transfer and other cash management arrangements and Indebtedness in respect of netting services,  overdraft protection, credit card programs, automatic clearinghouse arrangements and similar  arrangements. For purposes of determining compliance with this Section 6.01, at the time of incurrence, the  Company will be entitled to divide and classify an item of Indebtedness in more than one of the categories  of Indebtedness described above (or any portion thereof) (other than clause (b) with respect to Other  Secured Debt Obligations) without giving pro forma effect to the Indebtedness Incurred pursuant to any  other clause or paragraph of this Section (or any portion thereof) when calculating the amount of  Indebtedness that may be Incurred pursuant to any such clause or paragraph (or any portion thereof).  Accrual of interest, the accretion of accreted value, the payment of interest or dividends in the form  of additional Indebtedness, Disqualified Stock or Preferred Stock, as applicable, amortization of original  issue discount, the accretion of liquidation preference and increases in the amount of Indebtedness  outstanding solely as a result of fluctuations in the exchange rate of currencies will not be deemed to be an  Incurrence of Indebtedness, Disqualified Stock or Preferred Stock for purposes of this Section 6.01.  In  addition, Guaranties of, or obligations in respect of letters of credit relating to, Indebtedness which is  otherwise included in the determination of a particular amount of Indebtedness shall not be included in the  determination of such amount of Indebtedness; provided that the Incurrence of the Indebtedness represented  by such guarantee or letter of credit, as the case may be, was in compliance with this Section 6.01.  

 

121 For purposes of determining compliance with any U.S. Dollar-denominated restriction on the  Incurrence of Indebtedness, the Dollar-equivalent principal amount of Indebtedness denominated in a  foreign currency shall be calculated based on the relevant currency exchange rate in effect on the date such  Indebtedness was Incurred, in the case of term debt, or first committed or first Incurred (whichever yields  the lower U.S. Dollar equivalent), in the case of revolving credit debt.  However, if the Indebtedness is  Incurred to refinance other Indebtedness denominated in a foreign currency, and the refinancing would  cause the applicable U.S. Dollar-denominated restriction to be exceeded if calculated at the relevant  currency exchange rate in effect on the date of the refinancing, the U.S. Dollar-denominated restriction will  be deemed not to have been exceeded so long as the principal amount of the refinancing Indebtedness does  not exceed the principal amount of the Indebtedness being refinanced.  Notwithstanding any other provision of this Section 6.01, the maximum amount of Indebtedness  that the Loan Parties and Restricted Subsidiaries may Incur pursuant to this Section 6.01 shall not be deemed  to be exceeded, with respect to any outstanding Indebtedness, solely as a result of fluctuations in the  exchange rate of currencies.  The principal amount of any Indebtedness Incurred to refinance other  Indebtedness, if Incurred in a different currency from the Indebtedness being refinanced, will be calculated  based on the currency exchange rate applicable to the currencies in which the respective Indebtedness is  denominated that is in effect on the date of the refinancing. SECTION 6.02 Restricted Payments. (a) No Loan Party shall, and no Loan Party shall permit any of the Restricted Subsidiaries to,  directly or indirectly:  (i) declare or pay any dividend or make any distribution on account of any Loan  Party’s or any of the Restricted Subsidiaries’ Equity Interests, including any payment made in  connection with any merger, amalgamation or consolidation involving the Company (other than  (A) dividends or distributions payable solely in Equity Interests (other than Disqualified Stock) of  the Company; or (B) dividends or distributions by a Restricted Subsidiary so long as, in the case of  any dividend or distribution payable on or in respect of any class or series of securities issued by a  Restricted Subsidiary that is not a Wholly Owned Subsidiary, a Loan Party or the Restricted  Subsidiary which owns the equity interests of such non-Wholly Owned Subsidiary receives at least  its pro rata share of such dividend or distribution in accordance with its Equity Interests in such  class or series of securities)); (ii) purchase or otherwise acquire or retire for value any Equity Interests of the  Company or any direct or indirect parent of the Company;  (iii) make any principal payment on, or redeem, repurchase, defease or otherwise  acquire or retire for value, in each case prior to any scheduled repayment or scheduled maturity,  any Junior Indebtedness of the Company or any Loan Party (other than the payment, redemption,  repurchase, defeasance, acquisition or retirement of (A) Junior Indebtedness in anticipation of  satisfying a sinking fund obligation or principal installment to the extent not prohibited by the terms  of any applicable subordination provisions and (B) Indebtedness permitted under clause (h) of  Section 6.01) or (y) in the case of Junior Indebtedness of the type described in clause (c) of the  definition of Junior Indebtedness, make any payment on such Indebtedness;  (iv) make any payment on, or redeem, repurchase, defease or otherwise acquire or  retire for value any Other Secured Debt Obligations; or (v) make any Restricted Investment; 

 

122 (all such payments and other actions set forth in subclauses (i) through (v) above being collectively  referred to as “Restricted Payments”). (b) The provisions of Section 6.02(a) shall not prohibit: (i) the payment of any dividend or distribution or the consummation of any  irrevocable redemption within sixty (60) days after the date of declaration thereof, if at the date of  declaration or the giving of notice of such irrevocable redemption, as applicable, such payment  would have complied with the provisions of this Agreement; provided that if such dividend,  distribution or redemption is being made pursuant to Section 6.02(b)(xx), a Reserve shall be  established by the Administrative Agent in an amount equal to the Restricted Payment so declared; (ii) (A) the redemption, repurchase, retirement or other acquisition of any Equity  Interests (“Retired Capital Stock”), Other Secured Debt Obligations or Junior Indebtedness of the  Company or any Loan Party solely in exchange for, or solely out of the proceeds of, the  substantially concurrent sale of, Equity Interests of the Company or contributions to the equity  capital of the Company (other than any Disqualified Stock or any Equity Interests sold to a  Subsidiary of the Company) (collectively, including any such contributions, “Refunding Capital  Stock”); and (B) the declaration and payment of dividends on the Retired Capital Stock solely  out of the proceeds of the substantially concurrent sale (other than to a Subsidiary of the  Company) of Refunding Capital Stock;  (iii) the redemption, repurchase, defeasance, or other acquisition or retirement of any Other Secured Debt Obligations or any Junior Indebtedness of any Loan Party made by exchange  for, or out of the proceeds of the substantially concurrent sale of, new Indebtedness of a Loan Party,  which is Incurred in accordance with Section 6.01 so long as:  (A) the principal amount (or accreted value, if applicable) of such new  Indebtedness does not exceed the principal amount (or accreted value, if applicable), plus  any accrued and unpaid interest, of any Other Secured Debt Obligations or Junior  Indebtedness being so redeemed, repurchased, defeased, acquired or retired for value (plus  the amount of any premium required to be paid under the terms of the instrument governing  any Other Secured Debt Obligations or Junior Indebtedness being so redeemed,  repurchased, acquired or retired, plus any tender premiums, plus any defeasance or other  costs, fees and expenses incurred in connection therewith); (B) such Indebtedness is subordinated as to right of payment and lien priority  to the Secured Obligations or the related Guarantee of such Loan Party, as the case may  be, at least to the same extent as the applicable Other Secured Debt Obligations or Junior  Indebtedness so purchased, exchanged, redeemed, repurchased, defeased, acquired or  retired for value (it being understood that if the Junior Indebtedness so purchased,  exchanged, redeemed, repurchased, defeased, acquired or retired for value is unsecured,  such Indebtedness shall be unsecured); (C) such Indebtedness has a final scheduled maturity date equal to or later than  the earlier of (x) the final scheduled maturity date of the applicable Other Secured Debt  Obligations or Junior Indebtedness being so redeemed, repurchased, acquired or retired  and (y) ninety-one (91) days following the Maturity Date; and  

 

123 (D) such Indebtedness has a Weighted Average Life to Maturity at the time  Incurred which is not less than the shorter of (x) the remaining Weighted Average Life to  Maturity of the applicable Other Secured Debt Obligations or Junior Indebtedness being  so redeemed, repurchased, defeased, acquired or retired and (y) the Weighted Average Life  to Maturity that would result if all payments of principal on the applicable Other Secured  Debt Obligations or Junior Indebtedness being redeemed, repurchased, defeased, acquired  or retired that were due on or after the date that is one year following the Maturity Date; (iv) so long as no Dominion Period is continuing immediately before or after the  making of such Restricted Payment and so long as no Event of Default is continuing immediately  before or after the making of such Restricted Payment, a Restricted Payment to pay for the  repurchase, retirement or other acquisition for value of Equity Interests of the Company or any  direct or indirect parent of the Company held by any future, present or former employee, director,  officer or consultant of the Company or any Restricted Subsidiary of the Company or any direct or  indirect parent of the Company pursuant to any management equity plan or stock option plan or  any other management or employee benefit plan or other agreement or arrangement; provided,  however, that the aggregate Restricted Payments made under this clause (iv) do not exceed in any  calendar year an amount equal to (x) $11,250,000 plus (y) the value of any shares surrendered by  any such employee, director, officer or consultant, or otherwise withheld by the Company, in  connection with any tax obligation of such employee, director, officer or consultant (or the payment  thereof by the Company or any Restricted Subsidiary) in an amount not to exceed $4,500,000, with  unused amounts in any calendar year being permitted to be carried over to the next succeeding  calendar year; provided further, however, that such amount in any calendar year may be increased  by an amount not to exceed: (A) the cash proceeds received by the Company or any of the Restricted  Subsidiaries from the sale of Equity Interests (other than Disqualified Stock) of the  Company or any direct or indirect parent of the Company (to the extent contributed to the  Company) to employees, directors, officers or consultants of the Company and the  Restricted Subsidiaries or any direct or indirect parent of the Company that occurs after the  date hereof and during such calendar year; plus (B) the cash proceeds of key man life insurance policies received by the  Company or any direct or indirect parent of the Company (to the extent contributed to the  Company) or the Restricted Subsidiaries after the date hereof and during such calendar  year; (v) [Reserved]; (vi) [Reserved]; (vii) [Reserved]; (viii) other Restricted Payments that, when taken together with all other Restricted  Payments made pursuant to this clause (viii), would not exceed $30,000,000 after the date hereof;  provided, that no Dominion Period exists, in each case, after giving pro forma effect to such  Restricted Payment; (ix) the distribution, as a dividend or otherwise, of shares of Equity Interests of  Unrestricted Subsidiaries; 

 

124 (x) [Reserved]: (xi) with respect to any Other Secured Debt Obligations (if any):  (A) the making of regularly scheduled payments of interest in accordance with  the terms of the applicable Other Secured Loan Agreement at a rate not prohibited by the  terms of the applicable ABL Intercreditor Agreement;  (B) the making of regularly scheduled amortization payments, mandatory  prepayments and other mandatory payments in accordance with the terms of the applicable Other Secured Debt Loan Agreement to the extent not prohibited by the terms of the  applicable ABL Intercreditor Agreement; or (C) the making of voluntary prepayments or voluntary redemptions of  Indebtedness under the applicable Other Secured Debt Loan Agreement (including,  without limitation, pursuant to any loan buyback or repurchase mechanisms) so long as the  Payment Conditions have been satisfied at the time of such prepayment or redemption;  (xii) payment of Indebtedness created under the Loan Documents;  (xiii) payment of regularly scheduled interest and principal payments or reimbursement  obligations under letters of credit, in each case, as and when due in respect of any Indebtedness permitted by this Agreement, other than payments in respect of the Subordinated Indebtedness  prohibited by the subordination provisions thereof;  (xiv) payments constituting the refinancings of Indebtedness to the extent such  refinanced Indebtedness is permitted by Section 6.01;  (xv) payment of secured Indebtedness (other than Other Secured Debt Obligations) that  becomes due as a result of (A) any voluntary sale or transfer of any assets (other than assets  included in any Borrowing Base) securing such Indebtedness or (B) any casualty or condemnation  proceeding (including a disposition in lieu thereof) of any assets (other than assets included in any  Borrowing Base) securing such Indebtedness;  (xvi) subject to the terms of the Intercompany Subordination Agreement, payments of  intercompany Indebtedness permitted under Section 6.01 and owed to any Loan Party;  (xvii) repurchases of Equity Interests that occur or are deemed to occur upon exercise of  stock options or warrants if such Equity Interests represent a portion of the exercise price of such  options or warrants;  (xviii) Restricted Payments by the Company or any Restricted Subsidiary to allow the  payment of cash in lieu of the issuance of fractional shares upon the exercise of options or warrants  or upon the conversion or exchange of Equity Interests of any such Person;   (xix) payments or distributions to dissenting stockholders pursuant to applicable law,  pursuant to or in connection with a consolidation, amalgamation, merger or transfer of all or  substantially all of the assets of the Company and the Restricted Subsidiaries, taken as a whole, that  complies with Section 6.08; provided that if such consolidation, amalgamation, merger or transfer  of assets constitutes a Change in Control, all Secured Obligations shall have been repaid in full (or  the Event of Default specified in Section 7.01(g) shall have been waived); and 

 

125 (xx) any Loan Party or their Restricted Subsidiaries may make Restricted Payments so  long as the Borrowers are in Pro Forma Compliance with the Payment Conditions.  Notwithstanding anything herein to the contrary, nothing in this Agreement shall prohibit the Loan Parties  from paying the indebtedness and obligations under the Existing Credit Agreement on the Closing Date.  Notwithstanding anything else set forth in this Section 6.02 or the definition of “Permitted Investments” to  the contrary, no Restricted Payment or Investment (other than an Investment in another Loan Party) of any  Material Intellectual Property owned by the Company or another Loan Party shall be permitted under this  Agreement unless such Material Intellectual Property is subject to a non-exclusive, irrevocable (until the  Secured Obligations (other than contingent or indemnity obligations for which no claim has been made by  the Person entitled thereof) have been paid in full and all Commitments have terminated), royalty-free  license of such Material Intellectual Property in favor of the Administrative Agent for use in connection  with the exercise of rights and remedies of the Secured Parties under the Loan Documents with respect to  the ABL Priority Collateral, which license shall be substantially similar to the license described in Section  8(c) of the Security Agreement (or otherwise reasonably satisfactory to the Administrative Agent). As of the date hereof, all of the Subsidiaries of the Company will be Restricted Subsidiaries.  For purposes  of designating any Restricted Subsidiary as an Unrestricted Subsidiary, all outstanding Investments by the  Company and the Restricted Subsidiaries (except to the extent repaid) in the Subsidiary so designated will  be deemed to be Investments in an amount determined as set forth in the last sentence of the definition of  “Investments.” Such designation will only be permitted if a Restricted Payment or Permitted Investment in  such amount would be permitted at such time and if such Subsidiary otherwise meets the definition of an  Unrestricted Subsidiary. SECTION 6.03 Limitations on Restrictive Agreements.  No Loan Party shall, or shall permit any  of its Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to exist any  consensual encumbrance or consensual restriction which prohibits or limits the ability of:  (a) any Loan Party or Restricted Subsidiary to pay dividends or make any other distributions  to the Company or any Restricted Subsidiary (1) on its Equity Interests; or (2) with respect to any other  interest or participation in, or measured by, its profits;  (b) any Loan Party or Restricted Subsidiary to make loans or advances to the Company or any  Restricted Subsidiary that is a direct or indirect parent of such Subsidiary;  (c) any Loan Party to create, incur or permit to exist any Lien in favor of the Administrative  Agent upon the Collateral;  except in each case for such encumbrances or restrictions existing under or by reason of:  (i) (A) contractual encumbrances or restrictions in effect on the date hereof and, with  respect to any such encumbrances in described in Section 6.03(c) which are in a Material  Agreement, as set forth on Schedule 6.03 and (B) contractual encumbrances or restrictions pursuant  to this Agreement, the other Loan Documents, and, in each case, similar contractual encumbrances  effected by any amendments, modifications, restatements, renewals, supplements, refundings,  replacements or refinancings of such agreements or instruments; (ii) (A) this Agreement, (B) if applicable, an Other Secured Debt Loan Agreement and  the other relevant Other Secured Debt Documents, and (C) if applicable, any ABL Intercreditor  Agreement;  

 

126 (iii) applicable law or any applicable rule, regulation or order; (iv) any agreement or other instrument of a Person acquired by a Loan Party or any  Restricted Subsidiary which was in existence at the time of such acquisition (but not created in  contemplation thereof or to provide all or any portion of the funds or credit support utilized to  consummate such acquisition), which encumbrance or restriction is not applicable to any Person,  or the properties or assets of any Person, other than the Person and its Subsidiaries, or the property  or assets of the Person and its Subsidiaries, so acquired; (v) contracts or agreements for the sale of assets to the extent such sale is not  prohibited pursuant to the terms hereof, including any restriction with respect to a Restricted  Subsidiary imposed pursuant to an agreement entered into for the sale or disposition of the Equity  Interests or assets of such Restricted Subsidiary; (vi) (A) secured Indebtedness otherwise permitted to be Incurred pursuant to  Section 6.01 and Section 6.07 that limits the right of the debtor to dispose of or grant Liens on the  assets securing such Indebtedness and (B) contractual encumbrances or restrictions under any  agreement governing any Indebtedness existing as of the Closing Date;  (vii) customary net worth provisions contained in real property leases entered into by  any Loan Party or Restricted Subsidiary, so long as the Company has determined in good faith that  such net worth provisions would not reasonably be expected to impair the ability of the Company  and its Restricted Subsidiaries to meet their ongoing obligations;  (viii) customary provisions in joint venture agreements and other similar agreements  entered into in the ordinary course of business and relating solely to the applicable Joint Venture;  (ix) purchase money obligations to the extent not prohibited hereunder for property  acquired and Finance Lease Obligations in the ordinary course of business; (x) customary provisions contained in leases, licenses and other similar agreements  entered into in the ordinary course of business;  (xi) any encumbrance or restriction that restricts in a customary manner the subletting,  assignment or transfer of any property or asset that is subject to a lease, license or similar contract,  or the assignment or transfer of any such lease, license (including without limitation, licenses of  intellectual property) or other contracts;  (xii) other Indebtedness, Disqualified Stock or Preferred Stock of the Company or any  Restricted Subsidiary, in each case, so long as such encumbrances and restrictions contained in any  agreement or instrument will not materially affect any Loan Party’s ability to make anticipated  principal or interest payments on the Loans (as determined in good faith by the Company), provided  that such Indebtedness, Disqualified Stock or Preferred Stock is permitted pursuant to Section 6.01;  (xiii) any Investment not prohibited by Section 6.02;  (xiv) customary restrictions and conditions contained in the document relating to any  Lien, so long as (1) such Lien is a Permitted Lien and such restrictions or conditions relate only to  the specific asset subject to such Lien, and (2) such restrictions and conditions are not created for  the purpose of avoiding the restrictions imposed by this Section 6.03;  

 

127 (xv) [Reserved]; (xvi) any encumbrances or restrictions of the type referred to in Section 6.03(a), (b), or  (c) above imposed by any amendments, modifications, restatements, renewals, increases,  supplements, refundings, replacements or refinancings of the contracts, instruments or obligations  referred to in clauses (i) through (xiv) above; provided that such amendments, modifications,  restatements, renewals, increases, supplements, refundings, replacements or refinancings are, in the  good faith judgment of the Company, no more restrictive with respect to such dividend and other  payment restrictions than those contained in the dividend or other payment restrictions prior to such  amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or  refinancing. For purposes of determining compliance with this Section 6.03, (i) the priority of any Preferred  Stock in receiving dividends or liquidating distributions prior to dividends or liquidating  distributions being paid on common stock shall not be deemed a restriction on the ability to make  distributions on Equity Interests and (ii) the subordination of loans or advances made to the  Company or a Restricted Subsidiary to other Indebtedness Incurred by the Company or any such  Restricted Subsidiary shall not be deemed a restriction on the ability to make loans or advances.  SECTION 6.04 Sale of Equity Interests and Assets.  Except as set forth herein, no Loan Party shall,  or shall permit any of its Restricted Subsidiaries to, sell, transfer, convey, assign or otherwise Dispose of  any of its properties or other assets, including the Equity Interests of any of its Subsidiaries (whether in a  public or a private offering or otherwise), other than:  (a) (x) the Disposition of obsolete, no longer used or useful, surplus, uneconomic, negligible  or worn out machinery, equipment or other fixed assets; and (y) the Disposition of Intellectual Property  (including the abandonment thereof or surrender or transfer for no consideration), in each case under this  clause (y): (i) in the ordinary course of business, including pursuant to non-exclusive licenses of Intellectual  Property or otherwise as may be required pursuant to the terms of any lease, sublease, license or sublicense,  or (ii) which, in the reasonable judgment of the Company or any Subsidiary, are determined to be no longer  used or useful, surplus, uneconomical, negligible or obsolete in the conduct of business;  (b) (x) the sale of inventory and other assets in the ordinary course of business and (y) in  addition to sales of Inventory under the preceding clause (x), the sale of slow moving inventory outside of  the ordinary course (including in respect of a liquidation thereof); provided that the amount of inventory  Disposed of pursuant to this clause (y) shall be capped in an amount not to exceed $56,250,000 during any  fiscal year; provided, further that, with respect to any such sale pursuant to this clause (y) which (in a single  transaction or a series of related transactions) decreases the Borrowing Base by $5,625,000 or more (after  giving effect thereto), the Borrower Representative shall have first delivered an updated Borrowing Base  Certificate to the Administrative Agent giving pro forma effect to such sale and demonstrating pro forma  compliance with Section 6.12;  (c) Dispositions permitted by Sections 6.02, 6.07 (solely to the extent such Liens constitute  “Dispositions” as a result of the applicable security interest), and 6.08;  (d) (1) the sale or issuance of any Subsidiary’s Equity Interests to the Company or any  Restricted Subsidiary; provided, however, with respect to any such sale, such Investment shall not be  prohibited by Section 6.02 and (2) the sale or issuance of Equity Interests of the Company to any employee  (and, where required by law, to any officer or director) under any employment or compensation plans or to  qualify such officers and directors; 

 

128 (e) the sale of assets that do not constitute Eligible Inventory, Eligible In-Transit Inventory, or  Eligible Credit Card Accounts subsequent to the date hereof, so long as (1) no Default or Event of Default  then exists or would result therefrom, (2) each such sale or other disposition is in an arm’s-length transaction  and the respective Borrower or Restricted Subsidiary receives at least fair market value, and (3) the  consideration received by such Borrower or such Restricted Subsidiary consists of at least 75% cash and is  paid at the time of the closing of such sale; provided, however, that the following shall be deemed to be  cash in respect of assets that are not ABL Priority Collateral: (A) the assumption by the transferee of  Indebtedness or other liabilities contingent or otherwise of the Company or any of its Restricted Subsidiaries  (other than Junior Indebtedness and Other Secured Debt Obligations) and the valid release of the Company  or such Restricted Subsidiary, by all applicable creditors in writing, from all liability on such Indebtedness  or other liability in connection with such Disposition, (B) Indebtedness (other than Junior Indebtedness and  Other Secured Debt Obligations) of any Restricted Subsidiary that is no longer a Restricted Subsidiary as  a result of such Disposition, to the extent that the Company and each other Restricted Subsidiary are  released from any guarantee of payment of such Indebtedness in connection with such Disposition, and (C)  any Designated Non-cash Consideration received by the Company or any Restricted Subsidiary in such  asset sale having an aggregate Fair Market Value (as determined in good faith by the Company), taken  together with all other Designated Non-cash Consideration received pursuant to this clause (e) that is at that  time outstanding, not to exceed the greater of $25,000,000 and 10% of Consolidated EBITDA, calculated  on a pro forma basis giving effect to such asset disposition and Designated Non-cash Consideration and  based on the most recently completed Test Period (with the Fair Market Value of each item of Designated  Non-cash Consideration being measured at the time received and without giving effect to subsequent  changes in value); provided, however, with respect a Disposition (in a single transaction or a series of  related transactions) consisting of assets constituting ABL Priority Collateral of the type eligible to be  included in the Borrowing Base that decreases the Borrowing Base by $5,625,000 or more (after giving  effect thereto), the Borrower Representative shall have first delivered an updated Borrowing Base  Certificate to the Administrative Agent giving pro forma effect to such Disposition and demonstrating pro  forma compliance with Section 6.12;  (f) subject to compliance with Payment Conditions, the sale of assets that constitute Eligible  Inventory, Eligible In-Transit Inventory or Eligible Credit Card Accounts subsequent to the date hereof, so  long as (1) each such sale or other disposition is in an arm’s-length transaction and the respective Borrower  or Restricted Subsidiary receives at least fair market value, and (2) the consideration received by the  Company and its Restricted Subsidiaries in connection with such sale consists of at least 75% cash and is  paid at the time of the closing of such sale; provided that, with respect to any such sale (in a single  transaction or a series of related transactions) consisting of assets constituting ABL Priority Collateral of  the type eligible to be included in the Borrowing Base that decreases the Borrowing Base by $5,625,000 or more (after giving effect thereto), the Borrower Representative shall have first delivered an updated  Borrowing Base Certificate to the Administrative Agent giving pro forma effect to such sale and  demonstrating pro forma compliance with Section 6.12;  (g) the Disposition of cash and Cash Equivalents in connection with the Company’s and its  Restricted Subsidiaries’ business needs, as determined in the reasonable business judgment of the Company  or the applicable Restricted Subsidiary; (h) Dispositions of Accounts in connection with compromise, write down or collection thereof  in the ordinary course of business and consistent with past practice; (i) leases, subleases, licenses or sublicenses of property which do not materially interfere with  the business of Borrowers and their Restricted Subsidiaries and the termination of such leases, subleases,  licenses or sublicenses in the ordinary course of business; 

 

129 (j) Dispositions of Equity Interests to directors where required by applicable Requirements of  Law or to satisfy other requirements of applicable Requirements of Law with respect to the ownership of  Equity Interests of Foreign Subsidiaries; (k) Dispositions of Equity Interests of any Joint Venture to the extent required by the terms of  customary buy/sell type arrangements entered into in connection with the formation of such Joint Venture; (l) transfer or disposition of property subject to or as a result of a casualty or condemnation  (or agreement in lieu of condemnation) (1) upon receipt of net cash proceeds of such casualty or (2) to a  Governmental Authority as a result of condemnation (or agreement in lieu of condemnation);   (m) bulk sales or other Dispositions of inventory of a Restricted Subsidiary not in the ordinary  course of business in connection with store closings, at arm’s length; provided, that the Loan Parties and  their Restricted Subsidiaries shall not close a net amount (taking into account new store openings after the  Closing Date) of more than one hundred fifty (150) stores during the term of this Agreement;  (n) (1) any Loan Party may Dispose of its property to another Loan Party, (2) any Restricted  Subsidiary that is not a Loan Party may Dispose of its property to the Company or any other Restricted  Subsidiary; provided that any Disposition to a Loan Party in reliance of this clause (2) shall be for no more  than Fair Market Value (as determined in good faith by the Company), and (3) any Loan Party may Dispose  of its property to a Restricted Subsidiary that is not a Loan Party; provided that any Disposition in reliance  on this clause (3) for less than Fair Market Value (as determined in good faith by the Company) shall be  deemed an Investment and must be made in compliance with clause (1) of the definition of Permitted  Investments; provided, however, with respect a Disposition (in a single transaction or a series of related  transactions) consisting of assets constituting ABL Priority Collateral of the type eligible to be included in  the Borrowing Base that decreases the Borrowing Base by $5,625,000 or more (after giving effect thereto),  the Borrower Representative shall have first delivered an updated Borrowing Base Certificate to the  Administrative Agent giving pro forma effect to such Disposition and demonstrating pro forma compliance  with Section 6.12; (o) Dispositions of any property to the extent that (1) (x) such property is exchanged for credit  against the purchase price of similar replacement property or (y) such Disposition represents an exchange  of assets (including a combination of Cash Equivalents and assets) for assets related to a Similar Business  of comparable or greater market value or usefulness to the business of the Company and the Restricted  Subsidiaries as a whole, as determined in good faith by the Company or (z) such Disposition represents a  swap of assets or lease, assignment or sublease of any real of personal property in exchange for services  (including in connection with any outsourcing arrangements) or comparable or greater value or usefulness  to the business of the Company and its Restricted Subsidiaries as a whole, as determined in good faith by  the Company, or (2) the proceeds of such Disposition are reasonably promptly applied to the purchase price  of such replacement property; (p) Dispositions of assets which constitute Investments or Restricted Payments, in each case,  not prohibited by Section 6.02;  (q) Dispositions of property (other than ABL Priority Collateral) in connection with  (i) Sale/Leaseback Transactions for fair value (as determined at the time of the consummation thereof in  good faith by the applicable Loan Party or Restricted Subsidiary) so long as 75% of the consideration  received by such Loan Party or Restricted Subsidiary from such Sale/Leaseback Transaction is in the form  of cash and (ii) any Sale/Leaseback Transactions between Excluded Subsidiaries;  (r) [Reserved]; 

 

130 (s) Dispositions of assets or issuances of the Company or any Restricted Subsidiary or sale of  Equity Interests of the Company or any Restricted Subsidiary which assets or Equity Interests so Disposed  or issued, in any single transaction or related series of transactions, have a fair market value (as determined  in good faith by the Company) of less than $11,250,000 per fiscal year; (t) Dispositions arising from foreclosure or any similar action with respect to any property or  other asset of the Company or any of its Restricted Subsidiaries;  (u) any Disposition of Equity Interests in, or Indebtedness or other securities of, an  Unrestricted Subsidiary; (v) any Disposition of Equity Interests of a Restricted Subsidiary pursuant to an agreement or  other obligation with or to a Person (other than the Company or a Restricted Subsidiary) from whom such  Restricted Subsidiary was acquired or from whom such Restricted Subsidiary acquired its business and  assets (having been newly formed in connection with such acquisition), in each case following the date  hereof, made as part of such acquisition and in each case comprising all or a portion of the consideration in  respect of such sale or acquisition; (w) Dispositions of receivables in connection with the compromise, settlement or collection  thereof in the ordinary course of business or in bankruptcy or similar proceedings and exclusive of factoring  or similar arrangements; (x) to the extent constituting a Disposition, any surrender, expiration or waiver of contract  rights or the settlement, release, recovery on or surrender of contract, tort or other claims of any kind; (y) Dispositions of owned real property on an arm’s length basis;  (z) any Disposition of assets (other than Eligible Inventory, Eligible In-Transit Inventory, or  Eligible Credit Card Accounts) in the ordinary course of business to the extent replaced by substitute assets; provided, that any Disposition of Material Intellectual Property of the Loan Parties to any Person that is not  a Loan Party shall be made expressly subject to a non-exclusive, irrevocable (until the Secured Obligations  (other than contingent or indemnity obligations for which no claim has been made by the Person entitled  thereto) have been paid in full and all Commitments have terminated), royalty-free license of such Material  Intellectual Property in favor of the Administrative Agent for use in connection with the exercise of rights  and remedies of the Secured Parties under the Loan Documents with respect to the ABL Priority Collateral, which license shall be substantially similar to the license described in Section 8(c) of the Security  Agreement (or otherwise reasonably satisfactory to the Administrative Agent). SECTION 6.05 Affiliate Transactions.  No Loan Party shall, and no Loan Party shall permit any  of the Restricted Subsidiaries to, directly or indirectly, make any payment to, or sell, lease, transfer or  otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into  or make or amend any transaction or series of transactions, contract, agreement, understanding, loan,  advance or guarantee with, or for the benefit of, any Affiliate of the Company (each of the foregoing, an  “Affiliate Transaction”) involving aggregate consideration in excess of $11,250,000 or services and goods  with a market value (as determined in good faith by the Company) in excess of $11,250,000, provided that,  the foregoing shall not apply to the following:  (a) Affiliate Transactions on terms that are not materially less favorable to the relevant Loan  Party or the Restricted Subsidiary than those that could have been obtained in a comparable transaction by  the relevant Loan Party or such Restricted Subsidiary with an unrelated Person;  

 

131 (b) transactions between or among the Company and/or any of the Restricted Subsidiaries (or  any entity that becomes a Restricted Subsidiary as a result of such transaction); (c) Restricted Payments permitted by Section 6.02 and Permitted Investments; (d) the payment of reasonable and customary fees and reimbursement of out-of-pocket  expenses paid to, and indemnity provided on behalf of, officers, directors, employees or consultants of the  Company, any Restricted Subsidiary, or any direct or indirect parent of the Company;  (e) transactions in which the Company or any Restricted Subsidiary, as the case may be,  delivers to the Administrative Agent a letter from an Independent Financial Advisor stating that such  transaction is fair to the Company or such Restricted Subsidiary from a financial point of view or meets the  requirements of clause (a) of this Section 6.05;  (f) payments or loans (or cancellation of loans) to officers, directors, employees or consultants  which are approved by a majority of the Board of Directors of the Company in good faith;  (g) any agreements or transactions disclosed on Schedule 6.05 hereto and any amendment  thereto (so long as any such agreement together with all amendments thereto, taken as a whole, is not more  disadvantageous to the Lenders in any material respect than the original agreement as in effect on the date  hereof) or any transaction contemplated thereby as determined in good faith by the Company;  (h) the issuance of Equity Interests (other than Disqualified Stock) of the Company to any  Person; (i) (A) transactions with customers, clients, suppliers or purchasers or sellers of goods or  services, or transactions otherwise relating to the purchase or sale of goods or services, in each case in the  ordinary course of business and otherwise in compliance with the terms of this Agreement, which are fair  to the Company and the Restricted Subsidiaries in the reasonable determination of the Board of Directors  or the senior management of the Company, or are on terms at least as favorable as might reasonably have been obtained at such time from an unaffiliated party or (B) transactions with Joint Ventures or Unrestricted  Subsidiaries entered into in the ordinary course of business and consistent with past practice; provided,  however, with respect to any consideration made to a Loan Party or its Restricted Subsidiaries by Joint  Ventures, the applicable Loan Party or Restricted Subsidiary shall receive at least Fair Market Value for  the goods or services of such transaction;  (j) the issuances of securities or other payments, awards or grants in cash, securities or  otherwise pursuant to, or the funding of, employment arrangements, management equity plans, stock option  and stock ownership plans or similar employee benefit plans approved by the Board of Directors of the  Company, or the Board of Directors of a Restricted Subsidiary, as applicable, in good faith;  (k) any contribution to the capital of the Company;  (l) transactions permitted by, and complying with, Section 6.08;  (m) transactions between the Company or any Restricted Subsidiary and any Person, a director  of which is also a director of the Company or any direct or indirect parent of Company; provided, however, that such director abstains from voting as a director of the Company or such direct or indirect parent of the  Company, as the case may be, on any matter involving such other Person;  (n) pledges of Equity Interests of Unrestricted Subsidiaries;  

 

132 (o) the formation and maintenance of any consolidated group or subgroup for tax, accounting  or cash pooling or management purposes in the ordinary course of business and not for the purpose of  circumventing any covenant set forth in this Agreement; (p) any employment agreements entered into by the Company or any Restricted Subsidiary  and their respective officers and employees in the ordinary course of business;   (q) transactions undertaken in good faith (as certified by a responsible financial or accounting  officer of the Company in an Officer’s Certificate) for the purpose of improving the consolidated tax  efficiency of the Company and its Subsidiaries and not for the purpose of circumventing any covenant set  forth in this Agreement;   (r) non-exclusive licenses of Intellectual Property to or among Borrowers, their respective  Subsidiaries and their Affiliates; and (s) advances for commissions, travel and similar purposes in the ordinary course of business  to directors, officers and employees. SECTION 6.06 Amendments of Certain Documents; Line of Business.  No Loan Party shall amend  its charter, bylaws or other organizational documents in any manner materially adverse to the interest of  the Lenders or such Loan Party’s duty or ability to repay the Obligations.  No Loan Party shall amend any  Other Secured Debt Documents (if applicable) in a manner prohibited by the applicable ABL Intercreditor. No Loan Party shall amend the Synthetic Lease Agreement or Supply Chain Finance Agreement if such  amendment, modification or waiver would have an adverse effect on the Lenders’ or Secured Parties’ rights  hereunder.  No Loan Party shall engage in any business other than the distribution of, and the wholesale  and retail sale of, general merchandise and ancillary or value-added activities and functions in support of  or as an enhancement to the foregoing businesses, substantially as conducted and operated by such Loan  Party during the present fiscal year as of the Closing Date (“Similar Business”). SECTION 6.07 Liens.  No Loan Party shall, and no Loan Party shall permit any of its Restricted  Subsidiaries to, directly or indirectly, create, Incur or suffer to exist any Lien securing Indebtedness of such Loan Party or any Restricted Subsidiary, other than Permitted Liens, on any asset or property of such Loan  Party or Restricted Subsidiary.  With respect to any Lien securing Indebtedness that was permitted to secure such Indebtedness at the time  of the Incurrence of such Indebtedness, such Lien shall also be permitted to secure any Increased Amount  of such Indebtedness.  The “Increased Amount” of any Indebtedness shall mean any increase in the amount  of such Indebtedness in connection with any accrual of interest, the accretion of accreted value, the  amortization of original issue discount, the payment of interest in the form of additional Indebtedness with  the same terms or in the form of common stock of the Company, the payment of dividends on Preferred  Stock in the form of additional shares of Preferred Stock of the same class, accretion of original issue  discount or liquidation preference and increases in the amount of Indebtedness outstanding solely as a result  of fluctuations in the exchange rate of currencies or increases in the value of property securing Indebtedness  described in clause (3) of the definition of “Indebtedness.”  SECTION 6.08 Mergers, Amalgamations, Fundamental Changes, Etc. (a) No Loan Party shall, or shall permit any of its Restricted Subsidiaries to, directly or  indirectly, by operation of law or otherwise, enter into any merger, consolidation or amalgamation, or  liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or Dispose of all or  substantially all of its property or business, except that: 

 

133 (i) any Loan Party may consolidate, amalgamate or merge into (x) another Loan Party  (y) a Subsidiary that is not a Loan Party, or (z) another Person pursuant to a Permitted Acquisition;  provided that, in the case of the foregoing clauses (y) and (z), no Event of Default has occurred or  would result therefrom and such Subsidiary or other Person, as applicable, becomes a Loan Party  and provides the Administrative Agent and Lenders with the applicable documentation described  in Section 5.02(r) (provided, however, with respect to any such consolidation, amalgamation or  merger involving the Company, the Company shall be the surviving person);  (ii) any Domestic Subsidiary may be merged, amalgamated or consolidated with or  into a Borrower (provided that a Borrower shall be the continuing or surviving entity) or with or  into any Guarantor (provided that a Borrower or Guarantor shall be the continuing or surviving  entity); (iii) any Subsidiary that is not a Loan Party may be merged, amalgamated or  consolidated with or into any other Subsidiary that is not a Loan Party; provided that if one  Subsidiary to such merger, amalgamation or consolidation is a Wholly Owned Subsidiary, the  Wholly Owned Subsidiary shall be the continuing or surviving entity;  (iv) (x) any Loan Party may Dispose of any or all of its assets to another Loan Party, and (y) any Subsidiary which is not a Loan Party may Dispose of any or all of its assets to, or enter  into any merger, amalgamation or consolidation with, (1) a Borrower or any Guarantor (upon  voluntary liquidation or otherwise); provided in the case of a Disposition by a non-Loan Party to a  Loan Party of assets that is not a part of a liquidation, such sale shall be for no more than Fair  Market Value (as determined by the Company), or (2) a Subsidiary that is not a Guarantor if the  Subsidiary making the Disposition is not a Guarantor; provided that any such Disposition by a  Wholly Owned Subsidiary must be to a Wholly Owned Subsidiary;  (v) any Investment not prohibited by Section 6.02 may be structured as a merger,  consolidation or amalgamation; (vi) any Subsidiary may be dissolved or liquidated so long the Dispositions of assets  of such Person in connection with such liquidation or dissolution are to Persons entitled to receive  such assets in accordance with Section 6.04; (vii) any Subsidiary may enter into any merger, amalgamation or consolidation in  connection with, or to effectuate, a Disposition not otherwise prohibited by Section 6.04; and (viii) any Restricted Subsidiary may Dispose of any or all of its assets in connection  with, or to effectuate, a Disposition not otherwise prohibited by Section 6.04.  (b) No Loan Party shall (a) change its name as it appears in official filings in the state or  province of incorporation or organization, (b) change its chief executive office, (c) change the type of entity  that it is, (d) change its organization identification number, if any, issued by its state or province of  incorporation or other organization, or (e) change its state or province of incorporation or organization, in  each case, unless the Administrative Agent shall have received written notice of such change within 10  days (or such longer period as the Administrative Agent may agree in its sole discretion) following such  change  and any reasonable action requested by the Administrative Agent in connection with such change  to continue at all times following such change for the Administrative Agent to have a valid, legal and  perfected security interest in all the Collateral in which a security interest may be perfected by a filing under  the UCC (or its equivalent in any applicable jurisdiction), for the benefit of the Secured Parties have been  

 

134 made or will have been made within 10 days (or such longer period as the Administrative Agent may agree  in its sole discretion) following such change. (c) No Loan Party shall change its fiscal year from the basis in effect on the date hereof without  having first provided to the Administrative Agent and each Lender thirty (30) days’ prior written notice  thereof. (d) No Loan Party will change the basis of accounting upon which its financial statements are  prepared for purposes of this Agreement, other than changes to comply with changes in GAAP, without  providing to the Administrative Agent and each Lender prompt notice thereof; it being acknowledged that  with respect to calculations of the applicable Borrowing Base pursuant to this Agreement (but not for any  other purpose, including any financial reporting pursuant to any Requirement of Law) such change must be  approved in writing by the Administrative Agent (and, solely to the extent such change shall result in the  amounts available to be borrowed by the Borrowers would be increased, each Lender), not to be  unreasonably withheld.  SECTION 6.09 Sanctions; Anti-Terrorism Laws.  No Loan Party shall, directly or indirectly, nor  shall any Loan Party permit any Subsidiary to directly or indirectly, use the proceeds of any Loans or Letters  of Credit, or lend, contribute or otherwise make available such proceeds to any Subsidiary, (i) to fund, finance or facilitate any activities of or business with any individual or entity, or in any Sanctioned Country,  that, at the time of such funding, is the subject of Sanctions except (A) as otherwise permitted pursuant to  a license granted by the Office of Foreign Assets Control of the U.S. Department of the Treasury or (B)  otherwise to the extent permissible for a Person required to comply with Sanctions, or (ii) in any other  manner that will result in a violation of Sanctions by any party hereto.  No Loan Party shall, directly or  indirectly, nor shall any Loan Party permit any Subsidiary to directly or indirectly, use the proceeds of any  Loans or Letters of Credit for any purpose which would breach any Anti-Terrorism Laws applicable to any  Loan Party or Subsidiary, including the United States Foreign Corrupt Practices Act of 1977, the Corruption  of Foreign Public Officials Act (Canada), the UK Bribery Act 2010, and other similar anti-corruption  legislation in any jurisdiction in which any Loan Party or any of its Subsidiaries is located or is doing  material business. SECTION 6.10 [Reserved] SECTION 6.11 [Reserved] SECTION 6.12 Fixed Charge Coverage Ratio. At all times during a Covenant Compliance Event,  the Company will not permit the Fixed Charge Coverage Ratio, as of the end of any fiscal quarter, calculated  on a trailing four (4) fiscal quarter basis, to be less than 1.0 to 1.0.   ARTICLE VII. EVENTS OF DEFAULT If any of the following events shall occur and shall not have been waived in accordance with  Section 9.02, it shall constitute an “Event of Default” (it being understood and agreed that such events shall  give effect to the grace period, if any, explicitly provided for such event as set forth below): (a) any Loan Party (i) shall fail to pay any principal of any Loan or any reimbursement  obligation in respect of any LC Disbursement when and as the same shall become due and payable, and in  the currency required hereunder or (ii) shall fail to pay any interest on any Loan, fees or any other amounts  

 

135 hereunder or under any other Loan Document within three (3) Business Days after the same become due  and payable by it; or  (b) any representation or warranty made or deemed made by or on behalf of any Loan Party in  any Loan Document (whether made on behalf of itself or otherwise) or by any Loan Party (or any of its  officers) in connection with any Loan Document, or in any certificate, other instrument or statement  furnished pursuant to the provisions hereof or thereof (including, without limitation, any representation  made in any Borrowing Base Certificate), shall prove to have been incorrect in any material respect when  made or deemed made (other than a representation, warranty, certification or statement qualified by  materiality or reference to the absence of a Material Adverse Effect, in which event such representation,  warranty, certification or statement shall prove to have been false or misleading in any respect); or (c) (i) any Loan Party shall fail to perform or observe any covenant contained in Section 5.01, 5.02(a), 5.03 (solely as to the existence of each Borrower), 5.07, 5.10, 5.11, 5.16, Article VI, Section 6(j) of the Security Agreement, (ii) any Loan Party shall fail to perform or observe any covenant contained in  Section 5.02 (other than 5.02(a)), 5.05 or 5.15 if the failure to perform or observe such covenant shall  continue unremedied for five (5) Business Days; and (iii) any Loan Party shall fail to perform or observe  such other term, covenant or agreement contained in any other Section of this Agreement or any Loan  Document on its part to be performed or observed if the failure to perform or observe such other term,  covenant or agreement shall remain unremedied for 30 days after the earlier to occur of (x) the  Administrative Agent’s (given at the request of any Lender) notifying a Responsible Officer of the  Borrower Representative of such default, or (y) the obtaining of knowledge of such default by any  Responsible Officer of any Loan Party; or (d) a default or breach shall occur under any (i) Other Secured Debt Document, (ii) the  Synthetic Lease Agreement, or (iii) other agreement, document or instrument to which any Loan Party is a  party that is not cured within any applicable grace period therefor, and such default or breach (A) involves  the failure to make any payment when due in respect of any Indebtedness (other than the Obligations) of  any Loan Party in an aggregate amount of not less than $67,500,000, or (B) causes or permits any holder  of such Indebtedness or a trustee thereof, with the giving of notice, if required, to cause such Indebtedness  or a portion thereof in excess of $67,500,000 in the aggregate outstanding principal amount to become due  prior to its stated maturity, or cash collateral in respect thereof (in excess of $67,500,000) is demanded as  a result of any such breach or default, in each case, regardless of whether such right is exercised, by such  holder or trustee; provided that this clause (d)(iii)(B) shall not apply to secured Indebtedness that becomes  due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness, if such  sale or transfer is permitted hereunder and under the documents providing for such Indebtedness; or as a  result of damage destruction or taking by fire, casualty or eminent domain or agreement in lieu thereof; or  (e) any Loan Party shall generally not pay its debts as such debts become due, or shall admit  in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of  creditors; or any proceeding shall be instituted by or against any Loan Party seeking to adjudicate it  bankrupt or insolvent, or seeking receivership, interim receivership, liquidation, winding up,  reorganization, arrangement, adjustment, rescheduling, protection, relief, or composition, of it or its debts  under any Insolvency Laws, or seeking the entry of an order for relief or the appointment of a receiver,  interim receiver, monitor, trustee, custodian, sequestrator, conservator or other similar official for it or for  any substantial part of its property and, in the case of any such proceeding instituted against it (but not  instituted by it), either such proceeding shall remain undismissed or unstayed for a period of sixty (60) days,  or any of the actions sought in such proceeding (including, without limitation, the entry of an order for  relief against, or the appointment of a receiver, interim receiver, monitor, trustee, custodian or other similar  official for, it or for any substantial part of its property) shall occur; or any Loan Party shall take any  corporate action to authorize any of the actions set forth above in this subsection (e); or  

 

136 (f) one or more judgments or orders for the payment of money in excess of $67,500,000 in the  aggregate shall be rendered against any Loan Party and either (i) enforcement proceedings shall have been  commenced by any creditor upon such judgment or order or (ii) there shall be any period of forty-five (45)  consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending  appeal or otherwise, shall not be in effect; provided, however, that any such judgment or order shall not  give rise to an Event of Default under this subsection (f) if and so long as (A) the amount of such judgment  or order which remains unsatisfied is covered by a valid and binding policy of insurance between the  respective Loan Party and a third-party insurer covering full payment of such unsatisfied amount and  (B) such insurer has been notified, and has not disputed the claim made for payment, of the amount of such  judgment or order; or  (g) a Change in Control shall have occurred; or  (h) any of the following events or conditions shall have occurred and such event or condition,  when aggregated with any and all other such events or conditions set forth in this subsection (h), has resulted  or is reasonably expected to result in liabilities of the Loan Parties and/or the ERISA Affiliates in an  aggregate amount that would have a Material Adverse Effect: (i) any ERISA Event shall have occurred with respect to a Plan; or (ii) any of the Loan Parties or any of the ERISA Affiliates shall have been notified by  the sponsor of a Multiemployer Plan that it has incurred Withdrawal Liability to such  Multiemployer Plan; or  (iii) any of the Loan Parties or any of the ERISA Affiliates shall have been notified by  the sponsor of a Multiemployer Plan that such Multiemployer Plan is insolvent or is being  terminated, within the meaning of Title IV of ERISA, or has been determined to be in “endangered”  or “critical” status within the meaning of Section 432 of the Code or Section 305 of ERISA and, as  a result of such insolvency, termination or determination, the aggregate annual contributions of the  Loan Parties and the ERISA Affiliates to all of the Multiemployer Plans that are insolvent, being  terminated or in endangered or critical status at such time have been or will be increased over the  amounts contributed to such Multiemployer Plans for the plan years of such Multiemployer Plans  immediately preceding the plan year in which such reorganization, insolvency or termination  occurs; or (iv) any failure to satisfy the applicable minimum funding standards under Section  412(a) of the Code or Section 302(a) of ERISA, whether or not waived, shall exist with respect to one or more of the Plans; or  (v) any Lien shall exist on the property and assets of any of the Loan Parties or any of  the ERISA Affiliates in favor of the PBGC;  (i) (i) any provision of any Loan Document, at any time after its execution and delivery and  for any reason, ceases to be in full force and effect (other than as a result of the gross negligence or willful  misconduct of the Administrative Agent); or any Loan Party or any Affiliate thereof contests in writing the  validity or enforceability of any provision of any Loan Document; or any Loan Party denies in writing that  it has any or further liability or obligation under any provision of any Loan Document, or purports to revoke,  terminate or rescind in writing any provision of any Loan Document or seeks to avoid or limit any Lien  purported to be created under any Collateral Document; or (ii) any Lien purported to be created under any  Collateral Document shall cease to be, or shall be asserted by any Loan Party or any Affiliate thereof not  to be, a valid and perfected Lien on a material portion of the Collateral, with the priority required by the  

 

137 applicable Collateral Document (other than as a result of the gross negligence or willful misconduct of the  Administrative Agent); or (j) there shall occur any material uninsured damage (for the avoidance of doubt, for purposes  hereof, any loss insured by self-insurance or subject to a deductible or combination of deductibles not in  excess of $5,625,000 with respect to any otherwise insured occurrence shall not constitute uninsured  damage) to or loss, theft or destruction of any of the Collateral with a book value (determined in accordance  with GAAP) in excess of $22,500,000 in the aggregate, as to which the Loan Parties do not repair, restore  or replace the damaged or destroyed property within 180 days after the occurrence of such damaged or  destruction, or any of the Loan Parties’ assets with a book value (determined in accordance with GAAP) in  excess of $22,500,000 in the aggregate are attached, seized, levied upon or subjected to a writ or distress  warrant; or such come within the possession of any receiver, manager, receiver and manager, trustee,  custodian or assignee for the benefit of creditors and the same is not cured within forty-five (45) days  thereafter;   then, and in every such Event of Default (other than an Event of Default with respect to the Loan  Parties described in clause (e) of this Article), and at any time thereafter during the continuance of such  Event of Default, the Administrative Agent may, and at the request of the Required Lenders shall, by notice  to the Borrower Representative, take either or both of the following actions, at the same or different times:  (i) terminate the Commitments, whereupon the Commitments shall terminate immediately, and (ii) declare  the Loans then outstanding to be due and payable in whole, whereupon 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 Loan Parties accrued hereunder, shall become due and payable immediately, in each case without  presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Loan  Parties; and in the case of any event with respect to the Loan Parties described in clause (e) of this Article,  the Commitments shall automatically terminate and the principal of the Loans then outstanding, together  with accrued interest thereon and all fees and other obligations of the Loan Parties accrued hereunder, shall  automatically become due and payable, in each case without presentment, demand, protest or other notice  of any kind, all of which are hereby waived by the Loan Parties. Upon the occurrence and during the  continuance of an Event of Default, the Administrative Agent may, and at the request of the Required  Lenders shall, increase the rate of interest applicable to the Loans and other Obligations to the extent set  forth in this Agreement and exercise any rights and remedies provided to the Administrative Agent under  the Loan Documents or at law or equity, including all remedies provided under the UCC.  ARTICLE VIII. THE ADMINISTRATIVE AGENT SECTION 8.01 Appointment. Each of the Lenders, on behalf of itself and any of its Affiliates that  are Secured Parties and the Issuing Bank hereby irrevocably appoints the Administrative Agent as its 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. In  addition, to the extent required under the laws of any jurisdiction other than the U.S., each of the Lenders  and the Issuing Bank hereby grants to the Administrative Agent any required powers of attorney to execute  any Collateral Document governed by the laws of such jurisdiction on such Lender’s or Issuing Bank’s  behalf. The provisions of this Article are solely for the benefit of the Administrative Agent and the Lenders  (including the Swingline Lender and the Issuing Bank), and the Loan Parties shall not have rights as a third  party beneficiary of any of such provisions.  It is understood and agreed that the use of the term “agent” as  used herein or in any other Loan Documents (or any similar term) with reference to the Administrative  Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency  

 

138 doctrine of any applicable law. Instead, such term is used as a matter of market custom, and is intended to  create or reflect only an administrative relationship between independent contracting parties. The Lenders and the other Secured Parties hereby irrevocably authorize and instruct the  Administrative Agent to, without any further consent of any Lender or any other Secured Party, enter into  any ABL Intercreditor Agreement and any other intercreditor agreement with the collateral agent or other  representatives of the holders of Indebtedness that is permitted to be secured by a Lien on the Collateral  that is permitted (including with respect to priority) under this Agreement and to subject the Liens on the  Collateral securing the Obligations to the provisions thereof (any of the foregoing, an “Intercreditor  Agreement”).  The Lenders and the other Secured Parties irrevocably agree that (x) the Administrative  Agent may rely exclusively on a certificate of a Responsible Officer of the Borrower Representative as to  whether any such other Liens are permitted and (y) any ABL Intercreditor Agreement or any other  Intercreditor Agreement referred to in the foregoing sentence, entered into by the Administrative Agent,  shall be binding on the Secured Parties, and each Lender and other Secured Party hereby agrees that it will  take no actions contrary to the provisions of, if entered into and if applicable, any ABL Intercreditor  Agreement or other Intercreditor Agreement. SECTION 8.02 Rights as a Lender. The bank serving as the Administrative Agent hereunder shall  have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same  as though it were not the Administrative Agent, and such bank and its Affiliates may accept deposits from,  lend money to and generally engage in any kind of business with any Loan Party or any Subsidiary or any  Affiliate thereof as if it were not the Administrative Agent hereunder.  SECTION 8.03 Duties and Obligations. 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 has occurred and is continuing, (b) the Administrative Agent shall not have  any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights  and powers expressly contemplated by the Loan Documents that the Administrative Agent is required to  exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders  as shall be necessary under the circumstances as provided in Section 9.02), 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 any Loan Party or any Subsidiary that is  communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any  capacity. The Administrative Agent shall not be liable for any action taken or not taken by it with the  consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as  shall be necessary under the circumstances as provided in Section 9.02) or in the absence of its own gross  negligence or willful misconduct as determined by a final nonappealable judgment of a court of competent  jurisdiction. The Administrative Agent shall be deemed not to have knowledge of any Default unless and  until written notice thereof is given to the Administrative Agent by the Borrower Representative or a  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 of the covenants, agreements or other terms or  conditions set forth in any Loan Document, (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 Liens on the Collateral or the existence of the Collateral, or (vi) the satisfaction of any condition  set forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt of items expressly  required to be delivered to the Administrative Agent.  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.  Without limiting the generality of the foregoing,  

 

139 the Administrative Agent shall not (x) be obligated to ascertain, monitor or inquire as to whether any 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.  SECTION 8.04 Reliance. The Administrative Agent shall be entitled to rely upon, and shall not  incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument,  document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed  by it to be made by the proper Person, and shall not incur any liability for relying thereon. The  Administrative Agent may consult with legal counsel (who may be counsel for the Borrowers), 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.  SECTION 8.05 Actions through Sub-Agents. The Administrative Agent may perform any and all  of its duties and exercise its rights and powers hereunder or under any other Loan Documents by or through  any one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any  such sub-agent may perform any and all of its duties and exercise its rights and powers through their  respective Related Parties. The exculpatory provisions of the preceding paragraphs shall apply to any such  sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply  to their respective activities in connection with the syndication of the credit facilities provided for herein as  well as activities as the Administrative Agent. SECTION 8.06 Resignation. Subject to the appointment and acceptance of a successor  Administrative Agent as provided in this paragraph, the Administrative Agent may resign at any time by  notifying the Lenders, the Issuing Bank and the Borrower Representative. Upon receipt of any such  resignation, the Required Lenders shall have the right, in consultation with the Borrower Representative  and with the consent of the Borrower Representative (unless an Event of Default shall have occurred and  be continuing), to appoint a successor; provided, however, in no event shall any successor Administrative  Agent be a Disqualified Institution without the prior written consent of the Borrower Representative. If no  successor shall have been so appointed by the Required Lenders and shall have accepted such appointment  within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring  Administrative Agent may, on behalf of the Lenders and the Issuing Bank, appoint a successor  Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any  such bank. Upon the acceptance of its appointment as Administrative Agent hereunder by its successor,  such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the  retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and  obligations hereunder and under the other Loan Documents. The fees payable by the Borrowers to a  successor Administrative Agent shall be the same as those payable to its predecessor, unless otherwise  agreed by the Borrowers and such successor. Notwithstanding the foregoing, in the event no successor  Administrative Agent shall have been so appointed and shall have accepted such appointment within 30  days after the retiring Administrative Agent gives notice of its intent to resign, the retiring Administrative  Agent may give notice of the effectiveness of its resignation to the Lenders, the Issuing Banks and the  Borrowers, whereupon, on the date of effectiveness of such resignation stated in such notice, (a) the retiring  Administrative Agent shall be discharged from its duties and obligations hereunder and under the other  Loan Documents, provided that, solely for purposes of maintaining any security interest granted to the  Administrative Agent under any Collateral Document for the benefit of the Secured Parties, the retiring  Administrative Agent shall continue to be vested with such security interest as collateral agent for the  benefit of the Secured Parties and, in the case of any Collateral in the possession of the Administrative  Agent, shall continue to hold such Collateral, in each case until such time as a successor Administrative  Agent is appointed and accepts such appointment in accordance with this paragraph (it being understood  

 

140 and agreed that the retiring Administrative Agent shall have no duty or obligation to take any further action  under any Collateral Document, including any action required to maintain the perfection of any such  security interest) and (b) the Required Lenders shall succeed to and become vested with all the rights,  powers, privileges and duties of the retiring Administrative Agent, provided that until the time the Required  Lenders appoint a successor Administrative Agent as provided herein, (i) all payments required to be made  hereunder or under any other Loan Document to the Administrative Agent for the account of any Person  other than the Administrative Agent shall be made directly to such Person and (ii) all notices and other  communications required or contemplated to be given or made to the Administrative Agent shall also  directly be given or made to each Lender and each Issuing Bank. Following the effectiveness of the  Administrative Agent’s resignation from its capacity as such, the provisions of this Article, Section 2.17(d) and Section 9.03, as well as any exculpatory, reimbursement and indemnification provisions set forth in  any other Loan Document, shall continue in effect for the benefit of such retiring Administrative Agent, its  sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any  of them while it was acting as Administrative Agent and in respect of the matters referred to in the proviso  under clause (a) above.  SECTION 8.07 Non-Reliance.  (a) Each Lender acknowledges and agrees that the extensions of credit made hereunder are  commercial loans and letters of credit and not investments in a business enterprise or securities. Each  Lender further represents that it is engaged in making, acquiring or holding commercial loans in the  ordinary course of its business and has, independently and without reliance upon the Administrative Agent  or any other Lender and based on such documents and information as it has deemed appropriate, made its  own credit analysis and decision to enter into this Agreement as a Lender, and to make, acquire or hold  Loans hereunder. Each Lender shall, independently and without reliance upon the Administrative Agent or  any other Lender and based on such documents and information (which may contain material, non-public  information within the meaning of the United States securities laws concerning the Borrowers and their  Affiliates) as it shall from time to time deem appropriate, continue to make its own decisions in taking or  not taking action under or based upon this Agreement, any other Loan Document, any related agreement or  any document furnished hereunder or thereunder and in deciding whether or to the extent to which it will  continue as a Lender or assign or otherwise transfer its rights, interests and obligations hereunder. (b) Each Lender hereby agrees that (i) it has requested a copy of each Report prepared by or  on behalf of the Administrative Agent; (ii) the Administrative Agent (A) makes no representation or warranty, express or implied, as to the completeness or accuracy of any Report or any of the information  contained therein or any inaccuracy or omission contained in or relating to a Report and (B) shall not be  liable for any information contained in any Report; (iii) the Reports are not comprehensive audits or  examinations, and that any Person performing any field examination will inspect only specific information  regarding the Loan Parties and will rely significantly upon the Loan Parties’ books and records, as well as  on representations of the Loan Parties’ personnel and that the Administrative Agent undertakes no  obligation to update, correct or supplement the Reports; (iv) it will keep all Reports confidential and strictly  for its internal use and it will not share the Report with any Loan Party or any other Person except as  otherwise permitted pursuant to this Agreement; and (v) without limiting the generality of any other  indemnification provision contained in this Agreement, (A) it will hold the Administrative Agent and any  such other Person preparing a Report harmless from any action the indemnifying Lender may take or  conclusion the indemnifying Lender may reach or draw from any Report in connection with any extension  of credit that the indemnifying Lender has made or may make to the Borrower, or the indemnifying Lender’s  participation in, or the indemnifying Lender’s purchase of, a Loan or Loans; and (B) it will pay and protect,  and indemnify, defend, and hold the Administrative Agent and any such other Person preparing a Report  harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts  (including reasonable attorneys’ fees) incurred by the Administrative Agent or any such other Person as the  

 

141 direct or indirect result of any third parties who might obtain all or part of any Report through the  indemnifying Lender.  SECTION 8.08 Other Agency Titles. The joint bookrunners and joint lead arrangers, syndication  agent(s), and co-documentation agents shall not have any right, power, obligation, liability, responsibility  or duty under this Agreement other than those applicable to all Lenders as such. Without limiting the  foregoing, none of such Lenders shall have or be deemed to have a fiduciary relationship with any Lender.  Each Lender hereby makes the same acknowledgments with respect to the relevant Lenders in their  respective capacities as joint bookrunners and joint lead arrangers, syndication agent(s), and co- documentation agents, as applicable, as it makes with respect to the Administrative Agent in the preceding  paragraph.  SECTION 8.09 Not Partners or Co-Venturers; Administrative Agent as Representative of the  Secured Parties.  (a) The Lenders are not partners or co-venturers, and no Lender shall be liable for the acts or  omissions of, or (except as otherwise set forth herein in case of the Administrative Agent) authorized to act  for, any other Lender. The Administrative Agent shall have the exclusive right on behalf of the Lenders to  enforce the payment of the principal of and interest on any Loan after the date such principal or interest has  become due and payable pursuant to the terms of this Agreement. (b) In its capacity, the Administrative Agent is a “representative” of the Secured Parties within  the meaning of the term “secured party” as defined in the Ohio Uniform Commercial Code. Each Lender  authorizes the Administrative Agent to enter into each of the Collateral Documents to which it is a party  and to take all action contemplated by such documents. Each Lender agrees that no Secured Party (other  than the Administrative Agent) shall have the right individually to seek to realize upon the security granted  by any Collateral Document, it being understood and agreed that such rights and remedies may be exercised  solely by the Administrative Agent for the benefit of the Secured Parties upon the terms of the Collateral  Documents. In the event that any Collateral is hereafter pledged by any Person as collateral security for the  Secured Obligations, the Administrative Agent is hereby authorized, and hereby granted a power of  attorney, to execute and deliver on behalf of the Secured Parties any Loan Documents necessary or  appropriate to grant and perfect a Lien on such Collateral in favor of the Administrative Agent on behalf of  the Secured Parties. SECTION 8.10 Flood Laws. PNC has adopted internal policies and procedures that address  requirements placed on federally regulated lenders under (i) the National Flood Insurance Reform Act of  1994 (which comprehensively revised the National Flood Insurance Act of 1968 and the Flood Disaster  Protection Act of 1973) as now or hereafter in effect or any successor statute thereto, (ii) the Flood Disaster  Reform Act of 2004 as now or hereafter in effect or any successor statute thereto, (iii) the Biggert-Waters  Flood Insurance Reform Act of 2012 as now or hereafter in effect or any successor statute thereto, and  (iv) related legislation (collectively, the “Flood Laws”). PNC, as administrative agent or collateral agent on  a syndicated facility, will post on the applicable electronic platform (or otherwise distribute to each Lender  in the syndicate) documents that it receives in connection with the Flood Laws. However, PNC reminds  each Lender and Participant in the facility that, pursuant to the Flood Laws, each federally regulated Lender  (whether acting as a Lender or Participant in the facility) is responsible for assuring its own compliance  with the flood insurance requirements.  SECTION 8.11 No Reliance on Administrative Agent’s Customer Identification Program. Each  Lender acknowledges and agrees that neither such Lender, nor any of its Affiliates, participants or  assignees, may rely on Administrative Agent to carry out such Lender’s, Affiliate’s, participant’s or  assignee’s customer identification program, or other obligations required or imposed under or pursuant to  

 

142 the USA PATRIOT Act or the regulations thereunder, including the regulations contained in 31 CFR  103.121 (as hereafter amended or replaced, the “CIP Regulations”), or any Sanctions or other Anti- Terrorism Law, including any programs involving any of the following items relating to or in connection  with any of their Borrowers, their Affiliates or their agents, the other Loan Documents or the transactions  hereunder or contemplated hereby: (i) any identity verification procedures, (ii) any recordkeeping,  (iii) comparisons with government lists, (iv) customer notices or (v) other procedures required under the  CIP Regulations or such Sanctions or Anti-Terrorism Laws. SECTION 8.12 Erroneous Payments.  (a) If the Administrative Agent notifies a Lender, Issuing Bank or Secured Party, or  any Person who has received funds on behalf of a Lender, Issuing Bank or Secured Party such Lender or  Issuing Bank (any such Lender, Issuing Bank, Secured Party or other recipient, a “Payment Recipient”) that  the Administrative Agent has determined in its sole discretion (whether or not after receipt of any notice  under immediately succeeding clause (b)) that any funds received by such Payment Recipient from the  Administrative Agent or any of its Affiliates were erroneously transmitted to, or otherwise erroneously or  mistakenly received by, such Payment Recipient (whether or not known to such Lender, Issuing Bank, Secured Party or other Payment Recipient on its behalf) (any such funds, whether received as a payment,  prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively,  an “Erroneous Payment”) and demands the return of such Erroneous Payment (or a portion thereof), such  Erroneous Payment shall at all times remain the property of the Administrative Agent and shall be  segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and such  Lender, Issuing Bank or Secured Party shall (or, with respect to any Payment Recipient who received such  funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two (2)  Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment  (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received),  together with interest thereon in respect of each day from and including the date such Erroneous Payment  (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the  Administrative Agent in same day funds at the greater of the Overnight Bank Funding Rate and a rate  determined by the Administrative Agent in accordance with banking industry rules on interbank  compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient  under this clause (a) shall be conclusive, absent manifest error.  (b) Without limiting immediately preceding clause (a), each Lender, Issuing Bank or  Secured Party, or any Person who has received funds on behalf of a Lender, Issuing Bank or Secured Party  such Lender or Issuing Bank, hereby further agrees that if it receives a payment, prepayment or repayment  (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or  otherwise) from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or  on a different date from, that specified in a notice of payment, prepayment or repayment sent by the  Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y)  that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the  Administrative Agent (or any of its Affiliates), or (z) that such Lender, Issuing Bank or Secured Party, or  other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole  or in part) in each case: (i) (A) in the case of immediately preceding clauses (x) or (y), an error shall  be presumed to have been made (absent written confirmation from the Administrative Agent to the  

 

143 contrary) or (B) an error has been made (in the case of immediately preceding clause (z)), in each  case, with respect to such payment, prepayment or repayment; and (ii) such Lender, Issuing Bank or Secured Party shall (and shall cause any  other recipient that receives funds on its respective behalf to) promptly (and, in all events, within  one Business Day of its knowledge of such error) notify the Administrative Agent of its receipt of  such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so  notifying the Administrative Agent pursuant to this Section 8.12(b). (c) Each Lender, Issuing Bank or Secured Party hereby authorizes the Administrative  Agent to set off, net and apply any and all amounts at any time owing to such Lender, Issuing Bank or  Secured Party under any Loan Document, or otherwise payable or distributable by the Administrative Agent  to such Lender, Issuing Bank or Secured Party from any source, against any amount due to the  Administrative Agent under immediately preceding clause (a) or under the indemnification provisions of  this Agreement. (d) In the event that an Erroneous Payment (or portion thereof) is not recovered by the  Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance  with immediately preceding clause (a), from any Lender or Issuing Bank that has received such Erroneous  Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment  (or portion thereof) on its respective behalf)  (such unrecovered amount, an “Erroneous Payment Return  Deficiency”), upon the Administrative Agent’s notice to such Lender or Issuing Bank at any time, (i) such  Lender or Issuing Bank shall be deemed to have assigned its Loans (but not its Commitments) of the  relevant Class with respect to which such Erroneous Payment was made (the “Erroneous Payment Impacted  Class”) in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the  Administrative Agent may specify) (such assignment of the Loans (but not Commitments) of the Erroneous  Payment  Impacted Class, the “Erroneous Payment Deficiency Assignment”) at par plus any accrued and  unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance), and is  hereby (together with the Borrowers) deemed to execute and deliver an Assignment and Assumption with  respect to such Erroneous Payment Deficiency Assignment, and such Lender or Issuing Bank shall deliver  any Notes evidencing such Loans to the Borrowers or the Administrative Agent, (ii) the Administrative  Agent as the assignee Lender shall be deemed to acquire the Erroneous Payment Deficiency Assignment,  (iii) upon such deemed acquisition, the Administrative Agent as the assignee Lender shall become a Lender  or Issuing Bank, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment  and the assigning Lender or assigning Issuing Bank shall cease to be a Lender or Issuing Bank, as  applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the  avoidance of doubt, its obligations under the indemnification provisions of this Agreement and its  applicable Commitments which shall survive as to such assigning Lender or assigning Issuing Bank and  (iv) the Administrative Agent may reflect in the Register its ownership interest in the Loans subject to the  Erroneous Payment Deficiency Assignment. The Administrative Agent may, in its discretion, sell any  Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of the proceeds  of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender or Issuing Bank shall be reduced by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative  Agent shall retain all other rights, remedies and claims against such Lender or Issuing Bank (and/or against  any recipient that receives funds on its respective behalf). For the avoidance of doubt, no Erroneous  Payment Deficiency Assignment will reduce the Commitments of any Lender or Issuing Bank and such  Commitments shall remain available in accordance with the terms of this Agreement.  In addition, each  party hereto agrees that, except to the extent that the Administrative Agent has sold a Loan (or portion  

 

144 thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and irrespective of whether  the Administrative Agent may be equitably subrogated, the Administrative Agent shall be contractually  subrogated to all the rights and interests of the applicable Lender, Issuing Bank or Secured Party under the  Loan Documents with respect to each Erroneous Payment Return Deficiency (the “Erroneous Payment  Subrogation Rights”). (e) The parties hereto agree that an Erroneous Payment shall not pay, prepay, repay,  discharge or otherwise satisfy any Obligations owed by the Borrower or any other Loan Party, except, in  each case, to the extent such Erroneous Payment is, and solely with respect to the amount of such Erroneous  Payment that is, comprised of funds received by the Administrative Agent from the Borrowers or any other  Loan Party for the purpose of making such Erroneous Payment.   (f) To the extent permitted by applicable Law, no Payment Recipient shall assert any  right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim,  counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim  by the Administrative Agent for the return of any Erroneous Payment received, including without limitation  waiver of any defense based on “discharge for value” or any similar doctrine.  (g) Each party’s obligations, agreements and waivers under this Section 8.12 shall  survive the resignation or replacement of the Administrative Agent, the termination of the Commitments  and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan  Document.  ARTICLE IX. MISCELLANEOUS SECTION 9.01 Notices.  (a) Except in the case of notices and other communications expressly permitted to be given by  telephone or otherwise, all notices and other communications provided for herein shall be in writing and  shall be delivered by Electronic Systems (and subject in each case to paragraph (b) below) or by hand or  overnight courier service, mailed by certified or registered mail or sent by facsimile, as follows: (i) if to any Loan Party, to the Borrower Representative at:  Big Lots, Inc.  4900 E. Dublin-Granville Road Columbus, OH 43081  Attention: Rocky Robins, General Counsel  Email: rrobins@biglots.com  with a copy to (which shall not constitute notice):  Vorys, Sater, Seymour and Pease LLP  52 E. Gay Street  Columbus, Ohio 43215  Attention: Nici Workman, Esq. Email: nnworkman@vorys.com  

 

145 (ii) if to the Administrative Agent, the Swingline Lender, or PNC Bank, National  Association as Issuing Bank, at: For Borrowing Requests,  Interest Election Requests: and Notices to Issuing Bank : PNC Bank, National Association PNC Business Credit, Retail Finance 7121 Fairway Drive  Suite 300  Palm Beach Gardens, FL Attention: Paul Starman Email: paul.starman@pnc.com  For All Other Notices:  PNC Bank, National Association  PNC Business Credit, Retail Finance 7121 Fairway Drive  Suite 300  Palm Beach Gardens, FL Attention: Paul Starman Email: paul.starman@pnc.com  with a copy to (which shall not constitute notice):  Choate, Hall & Stewart LLP Two International Place, 34th Floor  Boston, MA 02110 Attention: John F. Ventola Office No: 617-248-5085  Facsimile: 617-502-5085  Email: jventola@choate.com (iii) if to any other Lender, to it at its address or facsimile number set forth in its  Administrative Questionnaire. All such notices and other communications (i) sent by hand or overnight courier service, or mailed  by certified or registered mail, shall be deemed to have been given when received, (ii) sent by facsimile  shall be deemed to have been given when sent, provided that if not given during normal business hours of  the recipient, such notice or communication shall be deemed to have been given at the opening of business  on the next Business Day of the recipient, or (iii) delivered through Electronic Systems to the extent  provided in paragraph (b) below shall be effective as provided in such paragraph.  (b) Notices and other communications to the Lenders hereunder may be delivered or furnished  by Electronic Systems pursuant to procedures approved by the Administrative Agent. Each of the  Administrative Agent and the Borrower Representative (on behalf of the Loan Parties) may, in its  discretion, agree to accept notices and other communications to it hereunder by Electronic Systems pursuant  to procedures approved by it; provided that approval of such procedures may be limited to particular notices  or communications. In the case of notices from the Borrower Representative to the Administrative Agent,  such acceptable and approved Electronic Systems include email to the Administrative Agent at the email  addresses identified above or as otherwise designated in writing pursuant to Section 9.01(c) below. All such  notices and other communications (i) sent to an email address shall be deemed received upon the sender’s  

 

146 receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested”  function, as available, return email or other written acknowledgement), and (ii) posted to an Internet or  intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its email  address as described in the foregoing clause (i), of notification that such notice or communication is  available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if  such notice, email or other communication is not sent during the normal business hours of the recipient,  such notice or communication shall be deemed to have been sent at the opening of business on the next  Business Day of the recipient. (c) Any party hereto may change its address, facsimile number or email address for notices  and other communications hereunder by notice to the other parties hereto. All notices and other  communications given to any party hereto in accordance with the provisions of this Agreement shall be  deemed to have been given on the date of receipt.  (d) Electronic Systems. (i) Each Loan Party agrees that the Administrative Agent may, but shall not be  obligated to, make Communications (as defined below) available to the Issuing Bank and the other  Lenders by posting the Communications on Debt Domain, Intralinks, Syndtrak, ClearPar or a  substantially similar Electronic System. (ii) Any Electronic System used by the Administrative Agent is provided “as is” and  “as available.” The Agent Parties (as defined below) do not warrant the adequacy of such Electronic  Systems and expressly disclaim liability for errors or omissions in the Communications. No  warranty of any kind, express, implied or statutory, including any warranty of merchantability,  fitness for a particular purpose, non-infringement of third- party rights or freedom from viruses or  other code defects, is made by any Agent Party in connection with the Communications or any  Electronic System. In no event shall the Administrative Agent or any of its Related Parties  (collectively, the “Agent Parties”) have any liability to the Borrowers or the other Loan Parties, any  Lender, the Issuing Bank or any other Person or entity for damages of any kind, including direct or  indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract  or otherwise) arising out of any Borrower’s, any Loan Party’s or the Administrative Agent’s  transmission of communications through an Electronic System (other than for direct or actual  damages resulting from the gross negligence, bad faith or willful misconduct of, or the material  breach of the Loan Documents by, such Person, in each case, as determined by a final and non- appealable judgment of a court of competent jurisdiction).  “Communications” means, collectively,  any notice, demand, communication, information, document or other material provided by or on  behalf of any Loan Party pursuant to any Loan Document or the transactions contemplated therein  which is distributed by the Administrative Agent, any Lender or the Issuing Bank by means of  electronic communications pursuant to this Section, including through an Electronic System.  SECTION 9.02 Waivers; Amendments. (a) No failure or delay by the Administrative Agent, the Issuing Bank or any Lender in  exercising any right or power hereunder or under any other Loan Document shall operate as a waiver  thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or  discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or  the exercise of any other right or power. The rights and remedies of the Administrative Agent, the Issuing  Bank and the Lenders hereunder and under any other Loan Document are cumulative and are not exclusive  of any rights or remedies that they would otherwise have. No waiver of any provision of any Loan  Document or consent to any departure by any Loan Party therefrom shall in any event be effective unless  

 

147 the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be  effective only in the specific instance and for the purpose for which given. Without limiting the generality  of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver  of any Default, regardless of whether the Administrative Agent, any Lender or the Issuing Bank may have  had notice or knowledge of such Default at the time.  (b) Except as provided in the first sentence of Section 2.09(f) (with respect to any commitment  increase), neither this Agreement nor any other Loan Document nor any provision hereof or thereof may  be waived, amended or modified except (x) in the case of this Agreement, pursuant to an agreement or  agreements in writing entered into by the Borrowers and the Required Lenders (or the Administrative Agent  acting at the direction of the Required Lenders) or (y) in the case of any other Loan Document, pursuant to  an agreement or agreements in writing entered into by the Administrative Agent and the Loan Party or Loan Parties that are parties thereto, with the consent of the Required Lenders; provided that no such agreement  shall (i) increase the Commitment of any Lender without the written consent of such Lender (including any  such Lender that is a Defaulting Lender), (ii) reduce or forgive the principal amount of any Loan or LC  Disbursement or reduce the rate of interest thereon, or reduce or forgive any interest or fees payable  hereunder, without the written consent of each Lender (including any such Lender that is a Defaulting  Lender) directly affected thereby (except (1) in connection with the waiver of applicability of any post- default increase in interest rates, which waiver shall be effective with the consent of the Required Lenders  and (2) that any amendment or modification of defined terms used in the determination of the Borrowing  Base shall not constitute a reduction in the rate of interest or fees for purposes of this clause (ii)),  (iii) postpone any scheduled date of payment of the principal amount of any Loan or LC Disbursement, or  any date for the payment of any interest, fees or other Obligations payable hereunder, or reduce the amount  of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment,  without the written consent of each Lender (including any such Lender that is a Defaulting Lender) directly  affected thereby (except (1) in connection with the waiver of applicability of any post-default increase in  interest rates, which waiver shall be effective with the consent of the Required Lenders and (2) that any  amendment or modification of defined terms used in the determination of the Borrowing Base shall not  constitute a reduction in the rate of interest or fees for purposes of this clause (iii)), (iv) change Section 2.10(b), 2.18(b) or 2.18(d) in a manner that would alter the manner in which payments are shared or the  order of payments, without the written consent of each Lender (other than any Defaulting Lender),  (v) increase the advance rates set forth in the definition of either Borrowing Base or change the definition  of the term “Borrowing Base” or any component definition thereof if as a result thereof the amounts  available to be borrowed by the Borrowers would be increased without the written consent of each of the  Lenders, provided that the foregoing shall not limit the discretion of the Administrative Agent to change,  establish or eliminate any Reserves, (vi) change any of the provisions of this Section or the definition of  “Required Lenders” or any other provision of any Loan Document specifying the number or percentage of  Lenders required to waive, amend or modify any rights thereunder or make any determination or grant any  consent thereunder, without the written consent of each Lender (other than any Defaulting Lender) directly  affected thereby, (vii) change Section 2.20, without the consent of each Lender (other than any Defaulting  Lender), (viii) release any Borrower from the Obligations or Loan Party from its obligation under its Loan  Guaranty (except as otherwise permitted herein or in the other Loan Documents), without the written  consent of each Lender (other than any Defaulting Lender), or (ix) except as provided in clause (c) of this  Section or in any Collateral Document, release or subordinate any Liens granted to the Administrative  Agent for the benefit of the Secured Parties on all or substantially all of the Collateral or subordinate the  Obligations without the written consent of each Lender (other than any Defaulting Lender); provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative  Agent, any Issuing Bank or the Swingline Lender hereunder without the prior written consent of the  Administrative Agent, such Issuing Bank or the Swingline Lender, as the case may be (it being understood  that any amendment to Section 2.20 shall require the consent of the Administrative Agent, the Issuing Banks  and the Swingline Lender). The Administrative Agent may also amend the Commitment Schedule to reflect  

 

148 assignments entered into pursuant to Section 9.04, and this Agreement may be amended without any  additional consents to provide for increased or additional Commitments in the manner contemplated by  Section 2.09 and in connection with a successor Benchmark Replacement in the manner contemplated by  Section 2.14(d).  Additionally, without the consent of any Lender or any Issuing Bank, the Loan Parties and  the Administrative Agent may (in their respective sole discretion, or shall, to the extent required by any  Loan Document) enter into any amendment, modification or waiver of any Loan Document, or enter into  any new agreement or instrument, to effect the granting, perfection, protection, expansion or enhancement  of any security interest in any Collateral or additional property to become Collateral for the benefit of the  Secured Parties, or as required by local law to give effect to, or protect any security interest for the benefit  of the Secured Parties, in any property or so that the security interests therein comply with applicable law  or this Agreement or in each case to otherwise enhance the rights or benefits of any Lender under any Loan  Document.  Notwithstanding the foregoing, the Fee Letter and any other fee letters entered into after the  date hereof may be amended in accordance with the terms thereof. (c) The Secured Parties hereby irrevocably authorize the Administrative Agent, without any  further consent of the Secured Parties, (i) to release any Liens granted to the Administrative Agent by the  Loan Parties on any Collateral (A) upon the termination of all the Commitments, payment and satisfaction  in full in cash of all Secured Obligations (other than Unliquidated Obligations) and the Cash Collateralization (or, at the discretion of the Administrative Agent, the providing of a backup standby letter  of credit satisfactory to the Administrative Agent and the Issuing Banks) of all outstanding Letters of Credit,  (B) constituting property being sold or disposed of to a Person that is not (and is not required to become) a  Loan Party in a transaction permitted by this Agreement (and the Administrative Agent may rely  conclusively on any certificate to that effect, without further inquiry), and, to the extent that the property  being sold or disposed of constitutes 100% of the Equity Interest of a Subsidiary, the Administrative Agent  is authorized to release any Loan Guaranty provided by such Subsidiary, (C) constituting property leased  to a Loan Party under a lease which has expired or been terminated in a transaction not prohibited under  this Agreement, (D) as required to effect any sale or other disposition of such Collateral in connection with  any exercise of remedies of the Administrative Agent and the Lenders pursuant to Article VII,  (E) constituting property of a Loan Party that is being released as a Loan Party as provided below, and (F)  constituting property which is or becomes an Excluded Asset, and (ii) to release any Loan Guaranty  provided by any Loan Party (A) that is dissolved as permitted under Section 6.08 in connection with a  voluntary liquidation or dissolution thereof permitted by such Section, (B) upon the disposition of all of the  outstanding Equity Interests of a Subsidiary of the Company to a Person other than a Borrower or a  Subsidiary in a transaction permitted by Section 6.05 (and the Administrative Agent may rely conclusively  on any such certificate to that effect provided by any Loan Party without further inquiry), or (C) that  becomes an Excluded Subsidiary, so long as such Person becomes an Excluded Subsidiary pursuant to  transaction or series of related transactions permitted hereunder consummated for a bona fide business  purpose and not in contemplation of adversely affecting the Secured Parties’ interests in the Guarantees and  Collateral (and the Administrative Agent may rely conclusively on any such certificate to that effect  provided by any Loan Party without further inquiry). Any such release shall not in any manner discharge,  affect, or impair the Obligations or any Liens (other than those expressly being released) upon (or  obligations of the Loan Parties in respect of) all interests retained by the Loan Parties, including the  proceeds of any sale, all of which shall continue to constitute part of the Collateral.  In connection with the  foregoing, the Lenders, the Issuing Banks and the other Secured Parties hereby authorize the Administrative  Agent to execute and deliver any instruments, documents, and agreements necessary or desirable to  evidence and confirm the release of any Loan Party or Collateral pursuant to the foregoing provisions of  this Section 9.02(c), all without the further consent or joinder of any Lender, any Issuing Bank or any other  Secured Party.  In connection with any release hereunder, the Administrative Agent shall promptly (and the  Lenders, the Issuing Banks and the Secured Parties hereby authorize the Administrative Agent to) take such  action and execute any such documents as may be reasonably requested by the Loan Parties and at the Loan  Parties’ expense in connection with the release of any Liens created by any Loan Document in respect of  

 

149 such Subsidiary, property or asset, as applicable; provided, that the Administrative Agent shall have  received a certificate of a Responsible Officer of the Borrower Representative containing such certifications  as the Administrative Agent shall reasonably request (d) If, in connection with any proposed amendment, waiver or consent requiring the consent  of “each Lender” or “each Lender affected thereby,” the consent of the Required Lenders is obtained, but  the consent of other necessary Lenders is not obtained (any such Lender whose consent is necessary but  has not been obtained being referred to herein as a “Non-Consenting Lender”), then the Borrowers may  elect to replace a Non-Consenting Lender as a Lender party to this Agreement, provided that, concurrently  with such replacement, (i) another bank or other entity which is reasonably satisfactory to the Borrowers,  the Administrative Agent and the Issuing Bank shall agree, as of such date, to purchase for cash the Loans  and other Obligations due to the Non-Consenting Lender pursuant to an Assignment and Assumption and  to become a Lender for all purposes under this Agreement and to assume all obligations of the Non- Consenting Lender to be terminated as of such date and to comply with the requirements of clause (b) of  Section 9.04, and (ii) the Borrowers shall pay to such Non-Consenting Lender in same day funds on the  day of such replacement (1) all interest, fees and other amounts then accrued but unpaid to such Non- Consenting Lender by the Borrowers hereunder to and including the date of termination, including without  limitation payments due to such Non-Consenting Lender under Sections 2.15 and 2.17, and (2) an amount,  if any, equal to the payment which would have been due to such Lender on the day of such replacement  under Section 2.16 had the Loans of such Non-Consenting Lender been prepaid on such date rather than  sold to the replacement Lender. (e) Notwithstanding anything to the contrary herein the Administrative Agent may, with the  consent of the Borrower Representative only, amend, modify or supplement this Agreement or any of the  other Loan Documents to cure any ambiguity, omission, mistake, defect or inconsistency.  (f) Notwithstanding anything to the contrary herein, after the Closing Date, the Company, in  consultation with the Sustainability Structuring Agent, shall be entitled to either (a) establish specified Key  Performance Indicators (“KPIs”) with respect to certain Environmental, Social and Governance (“ESG”)  targets of the Company and its Subsidiaries or (b) establish external ESG ratings (“ESG Ratings”) targets  to be mutually and reasonably agreed between the Company and the Sustainability Structuring Agent.  The  Sustainability Structuring Agent, the Administrative Agent and the Company may amend this Agreement  (such amendment, the “ESG Amendment”) solely for the purpose of incorporating either the KPIs or ESG  Ratings and other related provisions (the “ESG Pricing Provisions”) into this Agreement; provided that  such amendment shall become effective upon the written consent of the Required Lenders.  Upon  effectiveness of any such ESG Amendment, based on either the Borrower’s performance against the KPIs  or its obtainment of the target ESG Ratings, certain adjustments to the Applicable Commitment Fee and  Applicable Rate may be made; provided that the amount of any such adjustments made pursuant to an ESG  Amendment shall not result in a decrease or increase of more than (a) 1.00 basis point in the Commitment  Fee and/or (b) 5.00 basis points in the Applicable Rate; provided that neither the Commitment Fee nor the  Applicable Rate shall be less than zero in any event.  If KPIs are utilized, the pricing adjustments will  require, among other things, reporting and validation of the measurement of the KPIs in a manner that is  aligned with the Sustainability Linked Loan Principles (as published and maintained by the Loan Market  Association, Asia Pacific Loan Market Association and Loan Syndications & Trading Association) and is  to be agreed between the Company and the Sustainability Structuring Agent (each acting reasonably).   Following the effectiveness of the ESG Amendment, any modification agreed to by the Sustainability  Structuring Agent, the Administrative Agent and the Company to the ESG Pricing Provisions which does  not have the effect of reducing the Commitment Fee or Applicable Rate to a level not otherwise permitted  by this paragraph shall become effective upon the written consent of the Required Lenders.  The  Sustainability Structuring Agent will (i) assist the Company in determining the ESG Pricing Provisions in  

 

150 connection with the ESG Amendment and (ii) assist the Borrower in preparing informational materials  focused on ESG to be used in connection with the ESG Amendment.  SECTION 9.03 Expenses; Indemnity; Damage Waiver.   (a) Except as otherwise provided in this Agreement, the Loan Parties shall, jointly and  severally, pay all (i) reasonable and documented out-of-pocket expenses incurred by the Administrative  Agent and its Affiliates, including the reasonable and documented fees, charges and disbursements of  counsel (in each case limited to one primary law firm in the U.S. and one law firm in any other relevant  jurisdiction, except in the case of actual or perceived conflicts of interest, in which case, such additional  counsel for the affected persons) for the Administrative Agent, in connection with the syndication and  distribution (including, without limitation, via the internet or through an Electronic System) of the credit  facilities provided for herein, the preparation and administration of the Loan Documents and any  amendments, modifications or waivers of the provisions of the Loan Documents (whether or not the  transactions contemplated hereby or thereby shall be consummated), (ii) reasonable and documented out- of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or  extension of any Letter of Credit or any demand for payment thereunder and (iii) reasonable and  documented out-of-pocket expenses incurred by the Administrative Agent, the Issuing Bank or any Lender,  including the reasonable fees, charges and disbursements of any counsel (in each case limited to one  primary law firm in the U.S., one primary law firm in Canada, and one law firm in any other relevant  jurisdiction, except in the case of actual or perceived conflicts of interest, in which case, such additional  counsel for the affected persons) for the Administrative Agent, the Issuing Bank or any Lender, in  connection with the enforcement, collection or protection of its rights in connection with the Loan  Documents, including its rights under this Section, or in connection with the Loans made or Letters of  Credit issued hereunder, including all such reasonable and documented out-of-pocket expenses incurred  during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit (in each case  limited to one primary law firm in the U.S., one primary law firm in Canada, and one law firm in any other  relevant jurisdiction, except in the case of actual or perceived conflicts of interest, in which case, such  additional counsel for the affected persons). Subject to Section 5.07, such reasonable and documented out- of-pocket expenses being reimbursed by the Loan Parties under this Section may include, without limiting  the generality of the foregoing, fees, costs and expenses incurred in connection with:  (i) appraisals and insurance reviews; (ii) field examinations and the preparation of Reports based on the fees charged by a  third party retained by the Administrative Agent or the reasonable and documented internally  allocated fees for each Person employed by the Administrative Agent with respect to each field  examination;  (iii) fees and other charges for lien and title searches, filing financing statements and  continuations, and other actions to perfect, protect, and continue the Administrative Agent’s Liens; (iv) sums paid or incurred to take any action required of any Loan Party under the Loan  Documents that such Loan Party fails to pay or take; and (v) forwarding loan proceeds, collecting checks and other items of payment, and  establishing and maintaining the accounts and lock boxes, and costs and expenses of preserving  and protecting the Collateral.  All of the foregoing fees, costs and expenses may be charged to the Borrowers as Revolving Loans or to  another deposit account, all as described in Section 2.18(c).  

 

151 (b) The Loan Parties shall, jointly and severally, indemnify the Administrative Agent, the  Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons (each such Person  being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims,  damages, liabilities and related expenses, including the reasonable and documented fees, charges and  disbursements of any outside counsel for any Indemnitee (in each case limited to one primary law firm in  the U.S. and one law firm in any other relevant jurisdiction, except in the case of actual or perceived  conflicts of interest, in which case, such additional counsel for the affected persons), incurred by any  Indemnitee or asserted against any Indemnitee by any Person arising out of, in connection with, or as a  result of (i) the execution or delivery of this Agreement and the other Loan Documents or any agreement  or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective  obligations hereunder or thereunder or the consummation of the Transactions or any other transactions  contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom  (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the  documents presented in connection with such demand do not strictly comply with the terms of such Letter  of Credit), (iii) any actual or alleged presence or Release of Hazardous Materials on or from any property  owned or operated by a Loan Party or a Subsidiary, or any Environmental Liability related in any way to a  Loan Party or a Subsidiary, or (iv) any actual or prospective claim, litigation, investigation or proceeding  relating to any of the foregoing, whether or not such claim, litigation, investigation or proceeding is brought  by the Loan Parties or their respective equity holders, Affiliates, creditors or any other third Person and  whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party  thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such  losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent  jurisdiction by final and nonappealable judgment to have resulted from the gross negligence, bad faith, or  willful misconduct of such Indemnitee or (y) arise from any claim, litigation, investigation, arbitration or  proceeding (a “Proceeding”) that does not directly or primarily involve an act or omission of the Company  or any of its Affiliates and that is brought by an Indemnitee against any other Indemnitee (other than any  Proceeding against any Indemnitee solely in its capacity or in fulfilling its role as the Administrative Agent,  Swingline Lender, Issuing Bank, bookrunner, arranger or any similar role hereunder). This Section 9.03(b) shall not apply with respect to Taxes other than any Taxes that represent losses or damages arising from  any non-Tax claim. (c) To the extent that any Loan Party fails to pay any amount required to be paid by it to the  Administrative Agent (or any sub-agent thereof), the Swingline Lender or the Issuing Bank (or any Related  Party of any of the foregoing) under paragraph (a) or (b) of this Section, each Lender severally agrees to  pay to the Administrative Agent, the Swingline Lender or the Issuing Bank (or any Related Party of any of  the foregoing), as the case may be, such Lender’s Applicable Percentage (determined as of the time that the  applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount (it being  understood that the Loan Parties’ failure to pay any such unpaid amount shall not relieve any Loan Party  of any default in the payment thereof); provided that the unreimbursed expense or indemnified loss, claim,  damage, liability or related expense, as the case may be, was incurred by or asserted against the  Administrative Agent, the Swingline Lender or the Issuing Bank in its capacity as such or against any  Related Party of any of the foregoing acting for the Administrative Agent, the Swingline Lender or the  Issuing Bank in connection with such capacity.  (d) To the extent permitted by applicable law, no Loan Party shall assert, and each Loan Party  hereby waives, any claim against any Indemnitee (i) for any damages arising from the use by others of  information or other materials obtained through telecommunications, electronic or other information  transmission systems (including the Internet) (other than for direct or actual damages resulting from the  gross negligence, bad faith or willful misconduct of, or the material breach of the Loan Documents by, such  Indemnitee, in each case, as determined by a final and non-appealable judgment of a court of competent  jurisdiction) or (ii) on any theory of liability, for special, indirect, consequential or punitive damages (as  

 

152 opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement,  any other Loan Document or any agreement or instrument contemplated hereby or thereby, the  Transactions, any Loan or Letter of Credit or the use of the proceeds thereof; provided that, nothing in this  paragraph (d) shall relieve any Loan Party of any obligation it may have to indemnify an Indemnitee against  special, indirect, consequential or punitive damages asserted against such Indemnitee by a third party. (e) All amounts due under this Section shall be payable not later than ten (10) days after written  demand therefor.  SECTION 9.04 Successors and Assigns.   (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the  parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of the  Issuing Bank that issues any Letter of Credit), except that (i) no Loan Party may 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 any Loan Party without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this  Section. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person  (other than the parties hereto, their respective successors and assigns permitted hereby (including any  Affiliate of the Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in  paragraph (c) of this Section) and, to the extent expressly contemplated hereby, the Related Parties of each  of the Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or  claim under or by reason of this Agreement.  (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to  one or more Persons (other than an Ineligible Institution) all or a portion of its rights and obligations under  this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it) with  the prior written consent (in each case, such consent not to be unreasonably withheld or delayed) of:  (A) the Borrower Representative, provided that the Borrower Representative  shall be deemed to have consented to any such assignment unless it shall object thereto by  written notice to the Administrative Agent within ten (10) Business Days after having  received notice thereof, and provided further that no consent of the Borrower  Representative shall be required for an assignment to a Lender, an Affiliate of a Lender, an  Approved Fund or, if an Event of Default has occurred and is continuing, any other  assignee; (B) the Administrative Agent shall be required for assignments in respect of  the Revolving Loan if such assignment is to a Person that is not a Lender with a  Commitment in respect of such Revolving Loan, an Affiliate of such Lender or an  Approved Fund with respect to such Lender;  (C) each Issuing Bank; and (D) the Swingline Lender.  (ii) Assignments shall be subject to the following additional conditions:  (A) except in the case of an assignment to a Lender or an Affiliate of a Lender  or an Approved Fund or an assignment of the entire remaining amount of the assigning  Lender’s Commitment or Loans of any Class, the amount of the Commitment or Loans of  

 

153 the assigning Lender subject to each such assignment (determined as of the date the  Assignment and Assumption with respect to such assignment is delivered to the  Administrative Agent) shall not be less than $5,000,000 unless each of the Borrower  Representative and the Administrative Agent otherwise consent, provided that no such  consent of the Borrower Representative shall be required if an Event of Default has  occurred and is continuing; (B) each partial assignment shall be made as an assignment of a proportionate  part of all the assigning Lender’s rights and obligations under this Agreement;  (C) the parties to each assignment shall execute and deliver to the  Administrative Agent an Assignment and Assumption, together with a processing and  recordation fee of $3,500 and the tax forms required by Section 2.17(f); and (D) the assignee, if it shall not be a Lender, shall deliver to the Administrative  Agent an Administrative Questionnaire in which the assignee designates one or more credit  contacts to whom all syndicate-level information (which may contain material non-public  information about the Company, the other Loan Parties and their Related Parties or their  respective securities) will be made available and who may receive such information in  accordance with the assignee’s compliance procedures and applicable laws, including  Federal and state securities laws. For the purposes of this Section 9.04(b), the terms “Approved Fund” and “Ineligible Institution”  have the following meanings:  “Approved Fund” means any Person (other than a natural person) that is engaged in making,  purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its  business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity  or an Affiliate of an entity that administers or manages a Lender. “Ineligible Institution” means a (a) natural person, (b) Defaulting Lender, (c) holding company,  investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person or  relative(s) thereof; provided that, such holding company, investment vehicle or trust shall not constitute an  Ineligible Institution if it (x) has not been established for the primary purpose of acquiring any Loans or  Commitments, (y) is managed by a professional advisor, who is not such natural person or a relative thereof,  having significant experience in the business of making or purchasing commercial loans, and (z) has assets  greater than $25,000,000 and a significant part of its activities consist of making or purchasing commercial  loans and similar extensions of credit in the ordinary course of its business, (d) a Loan Party or a Subsidiary  or other Affiliate of a Loan Party, or (e) subject to Section 9.04(e) below, a Disqualified Institution.  (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this  Section, from and after the effective date specified in each Assignment and Assumption, the  assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such  Assignment and Assumption, have the rights and obligations of a Lender under this Agreement,  and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment  and Assumption, be released from its obligations under this Agreement (and, in the case of an  Assignment and Assumption covering all of the assigning Lender’s rights and obligations under  this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the  benefits of Sections 2.15, 2.16, 2.17 and 9.03 with respect to facts and circumstances occurring  prior to the effective date of such assignment; provided, that except to the extent otherwise  expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a  

 

154 waiver or release of any claim of any part hereunder arising from that Lender’s having been a  Defaulting Lender). Any assignment or transfer by a Lender of rights or obligations under this  Agreement that does not comply with this Section 9.04 shall be treated for purposes of this  Agreement as a sale by such Lender of a participation in such rights and obligations in accordance  with paragraph (c) of this Section. (iv) The Administrative Agent, acting solely for this purpose as a non-fiduciary agent  of the Borrowers, shall maintain at one of its U.S. offices a copy of each Assignment and  Assumption delivered to it and a register for the recordation of the names and addresses of the  Lenders, and the Commitment of, and principal amount of and stated interest on the Loans and LC  Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the  “Register”). The entries in the Register shall be conclusive absent manifest error, and the  Borrowers, the Administrative Agent, the Issuing Bank and the Lenders shall treat each Person  whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all  purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available  for inspection by the Borrowers, the Issuing Bank and any Lender, at any reasonable time and from  time to time upon reasonable prior notice.  (v) Upon its receipt of a duly completed Assignment and Assumption executed by an  assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless  the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in  paragraph (b) of this Section and any written consent to such assignment required by paragraph (b)  of this Section, the Administrative Agent shall accept such Assignment and Assumption and record  the information contained therein in the Register; provided that if either the assigning Lender or  the assignee shall have failed to make any payment required to be made by it pursuant to Section  2.05, 2.06(d) or (e), 2.07(b), 2.18(d) or 9.03(c), the Administrative Agent shall have no obligation  to accept such Assignment and Assumption and record the information therein in the Register  unless and until such payment shall have been made in full, together with all accrued interest  thereon. No assignment shall be effective for purposes of this Agreement unless it has been  recorded in the Register as provided in this paragraph. (c) Any Lender may, without the consent of the Borrowers, the Administrative Agent, the  Issuing Bank or the Swingline Lender, sell participations to one or more banks or other entities (a  “Participant”) other than an Ineligible Institution in all or a portion of such Lender’s rights and obligations  under this Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged; (B) such Lender shall  remain solely responsible to the other parties hereto for the performance of such obligations; and (C) the  Borrowers, the Administrative Agent, the Issuing Bank and the other Lenders shall continue to deal solely  and directly with such Lender in connection with such Lender’s rights and obligations under this  Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide  that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment,  modification or waiver of any provision of this Agreement; provided that such agreement or instrument  may provide that such Lender will not, without the consent of the Participant, agree to any amendment,  modification or waiver described in the first proviso to Section 9.02(b) that affects such Participant. The  Borrowers agree that each Participant shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17  (subject to the requirements and limitations therein, including the requirements under Section 2.17(f) and  (g) (it being understood that the documentation required under Section 2.17(f) shall be delivered to the  participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment  pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the  provisions of Sections 2.18 and 2.19 as if it were an assignee under paragraph (b) of this Section; and  (B) shall not be entitled to receive any greater payment under Section 2.15 or 2.17, with respect to any  

 

155 participation, than its participating Lender would have been entitled to receive, except to the extent such  entitlement to receive a greater payment results from a Change in Law that occurs after the Participant  acquired the applicable participation.  Each Lender that sells a participation agrees, at the Borrowers’ request and expense, to use  reasonable efforts to cooperate with the Borrowers to effectuate the provisions of Section 2.19(b) with  respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the  benefits of Section 9.08 as though it were a Lender, provided such Participant agrees to be subject to Section  2.18(c) as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose  as a non-fiduciary agent of the Borrowers, maintain a register on which it enters the name and address of  each Participant and the principal amounts of (and stated interest on) each Participant’s interest in the Loans  or other obligations under this Agreement or any other Loan Document (the “Participant Register”);  provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register  (including the identity of any Participant or any information relating to a Participant’s interest in any  Commitments, Loans, Letters of Credit or its other obligations under any Loan Document) to any Person  except to the extent that such disclosure is necessary to establish that such Commitment, Loan, Letter of  Credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury  Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such  Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such  participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the  avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no  responsibility for maintaining a Participant Register. (d) Any Lender may at any time pledge or assign a security interest in all or any portion of its  rights under this Agreement to secure obligations of such Lender, including without limitation any pledge  or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such  pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest  shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for  such Lender as a party hereto.  (e) Without limiting the foregoing, with respect to Disqualified Institutions: (i) No assignment or participation shall be made to any Person that was a Disqualified  Institution as of the date (the “Trade Date”) on which the assigning Lender entered into a binding  agreement to sell and assign all or a portion of its rights and obligations under this Agreement to  such Person (unless the Company has consented to such assignment in writing in its sole and  absolute discretion, in which case such Person will not be considered a Disqualified Institution for  the purpose of such assignment or participation).  For the avoidance of doubt, with respect to any  assignee that becomes a Disqualified Institution after the applicable Trade Date (including as a  result of the delivery of a notice pursuant to, and/or the expiration of the notice period referred to  in, the definition of “Disqualified Institution”), (x) such assignee shall not retroactively be  disqualified from becoming a Lender and (y) the execution by the Borrowers of an Assignment and  Assumption with respect to such assignee will not by itself result in such assignee no longer being  considered a Disqualified Institution. Any assignment in violation of this Section 9.04(e) shall not  be void, but the other provisions of this Section 9.04(e) shall apply. (ii) If any assignment or participation is made to any Disqualified Institution without  the Company’s prior written consent in violation of clause (i) above, or if any Person becomes a  Disqualified Institution after the applicable Trade Date, the Borrowers may, at their sole expense  and effort, upon notice to the applicable Disqualified Institution and the Administrative Agent,  (A) terminate any Commitment of such Disqualified Institution and repay all obligations of the  

 

156 Borrowers owing to such Disqualified Institution in connection with such Commitment, and/or  (B) require such Disqualified Institution to assign, without recourse (in accordance with and subject  to the restrictions contained in this Section 9.04), all of its interest, rights and obligations under this  Agreement to one or more assignees permitted under this Section 9.04 at the lesser of (x) the  principal amount thereof and (y) the amount that such Disqualified Institution paid to acquire such  interests, rights and obligations, in each case plus accrued interest, accrued fees and all other  amounts (other than principal amounts) payable to it hereunder.  (iii) Notwithstanding anything to the contrary contained in this Agreement,  Disqualified Institutions (A) will not (x) have the right to receive information, reports or other  materials provided to the Lenders by the Borrowers, 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 any  plan of reorganization or plan of liquidation pursuant to any Insolvency Laws (a “Relevant Plan”),  each Disqualified Institution party hereto hereby agrees (1) not to vote on such Relevant Plan, (2) if  such Disqualified Institution does vote on such Relevant 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 U.S. Bankruptcy Code (or any similar provision in any other  Insolvency Laws), and such vote shall not be counted in determining whether the applicable class  has accepted or rejected such Relevant Plan in accordance with Section 1126(c) of the U.S.  Bankruptcy Code (or any similar provision in any other Insolvency Laws) and (3) not to contest  any request by any party for a determination by the applicable bankruptcy court (or other applicable  court of competent jurisdiction) effectuating the foregoing clause (2). (iv) The Administrative Agent shall have the right, and the Company hereby expressly  authorizes the Administrative Agent, to (A) post the list of Disqualified Institutions provided by  the Company and any updates thereto from time to time (collectively, the “DQ List”) on Syndtrak  or a substantially similar electronic transmission system, including that portion of such electronic  transmission system that is designated for “public side” Lenders and/or (B) provide the DQ List to  each Lender requesting the same. SECTION 9.05 Survival. All covenants, agreements, representations and warranties made by the  Loan Parties in the Loan Documents and in the certificates or other instruments delivered in connection  with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied  upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents and  the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any  such other party or on its behalf and notwithstanding that the Administrative Agent, the Issuing Bank or  any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the  time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of  or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is  outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not  expired or terminated. The provisions of Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive  and remain in full force and effect regardless of the consummation of the transactions contemplated hereby,  the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or  the termination of this Agreement or any other Loan Document or any provision hereof or thereof.  

 

157 SECTION 9.06 Counterparts; Integration; Effectiveness; Electronic Execution.  (a) This Agreement may be executed in counterparts (and by different parties hereto on  different counterparts), each of which shall constitute an original, but all of which when taken together shall  constitute a single contract. This Agreement, the other Loan Documents and any separate letter agreements  with respect to fees payable to the Administrative Agent constitute the entire contract among the parties  relating to the subject matter hereof and supersede any and all previous agreements and understandings,  oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement  shall become effective when it shall have been executed by the Administrative Agent and when the  Administrative Agent shall have received counterparts hereof which, when taken together, bear the  signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit  of the parties hereto and their respective successors and assigns. (b) Delivery of an executed counterpart of a signature page of this Agreement by telecopy,  emailed pdf or any other electronic means that reproduces an image of the actual executed signature page  shall be effective as delivery of a manually executed counterpart of this Agreement. The words “execution,”  “signed,” “signature,” “delivery,” and words of like import in or relating to any document to be signed in  connection with this Agreement and the transactions contemplated hereby or thereby shall be deemed to  include Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall  be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery  thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided  for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce  Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on  the Uniform Electronic Transactions Act. SECTION 9.07 Severability. Any provision of any Loan Document held to be invalid, illegal or  unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity,  illegality or unenforceability without affecting the validity, legality and enforceability of the remaining  provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate  such provision in any other jurisdiction.  SECTION 9.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each  Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent  permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional  or final) at any time held and other obligations at any time owing by such Lender or Affiliate to or for the  credit or the account of any Loan Party against any of and all the Secured Obligations held by such Lender,  irrespective of whether or not such Lender shall have made any demand under the Loan Documents and  although such obligations may be unmatured; provided that the foregoing authorization shall not entitle any  Lender to apply any deposits to the extent that such deposit constitutes an Excluded Asset. The applicable  Lender shall notify the Borrower Representative and the Administrative Agent promptly after any 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 under this Section  are in addition to other rights and remedies (including other rights of setoff) which such Lender may have.  In the event that any Defaulting Lender shall exercise any right of setoff under this Section, (x) all amounts  so set off shall be paid over immediately to the Administrative Agent for further application in accordance  with the provisions in Section 2.20 and pending such payment, shall be segregated by such Defaulting  Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing  Bank, and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent  and Borrower Representative a statement describing in reasonable detail the Secured Obligations owing to  such Defaulting Lender as to which it exercised such right of setoff.  NOTWITHSTANDING THE  FOREGOING, NO LENDER, NO ISSUING BANK AND NO PARTICIPANT SHALL EXERCISE ANY  

 

158 RIGHT OF SETOFF, BANKER’S LIEN, OR THE LIKE AGAINST ANY DEPOSIT ACCOUNT OR  PROPERTY OF ANY LOAN PARTY HELD OR MAINTAINED BY SUCH LENDER WITHOUT THE  WRITTEN CONSENT OF THE ADMINISTRATIVE AGENT. SECTION 9.09 Governing Law; Jurisdiction; Consent to Service of Process.  (a) The Loan Documents (other than those containing a contrary express choice of law  provision) shall be governed by and construed in accordance with the internal laws (and not the law of  conflicts) of the State of Ohio, but giving effect to federal laws applicable to national banks; provided, however, that if the laws of any jurisdiction other than Ohio shall govern in regard to the validity, perfection  or effect of perfection of any lien or in regard to procedural matters affecting enforcement of any liens in  collateral, such laws of such other jurisdictions shall continue to apply to that extent.  (b) Each Loan Party hereby irrevocably and unconditionally submits, for itself and its property,  to the exclusive jurisdiction of any U.S. Federal or Ohio State court sitting in Franklin County, Ohio and of  the United States District Court for the Southern District of Ohio in any action or proceeding arising out of  or relating to any Loan Documents, or for recognition or enforcement of any judgment, and each of the  parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or  proceeding may be heard and determined in such Ohio State or, to the extent permitted by law, in such  Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall  be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner  provided by law. Nothing in this Agreement or any other Loan Document shall affect any right that the  Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any action or  proceeding relating to this Agreement or any other Loan Document against any Loan Party or its properties  in the courts of any jurisdiction.  (c) Each Loan Party hereby irrevocably and unconditionally waives, to the fullest extent it may  legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of  any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in  any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives,  to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such  action or proceeding in any such court.  (d) Each party to this Agreement irrevocably consents to service of process in the manner  provided for notices in Section 9.01. Nothing in this Agreement or any other Loan Document will affect  the right of any party to this Agreement to serve process in any other manner permitted by law.  SECTION 9.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO  THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A  TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF  OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE  TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON  CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT  NO REPRESENTATIVE, OTHER AGENT (INCLUDING ANY ATTORNEY) OF ANY OTHER  PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY  WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER  AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN  INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL  WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

 

159 SECTION 9.11 Headings. Article and Section headings and the Table of Contents used herein are  for convenience of reference only, are not part of this Agreement and shall not affect the construction of,  or be taken into consideration in interpreting, this Agreement.  SECTION 9.12 Confidentiality. Each of the Administrative Agent, the Issuing Bank and the  Lenders agrees to maintain the confidentiality of the Information (as defined below), except that  Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents,  including accountants, legal counsel and other advisors (it being understood that the Persons to whom such  disclosure is made will be informed of the confidential nature of such Information and instructed to keep  such Information confidential), (b) to the extent requested by any regulatory authority purporting to have  jurisdiction over such Person (including any self-regulatory authority, such as the National Association of  Insurance Commissioners), (c) to the extent required by any Requirement of Law or by any subpoena or  similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any  remedies under this Agreement or any other Loan Document or any suit, action or proceeding relating to  this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder,  (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any  assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations  under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or  derivative transaction relating to the Loan Parties and their obligations, (g) with the consent of the Borrower  Representative or (h) to the extent such Information (i) becomes publicly available other than as a result of  a breach of this Section or (ii) becomes available to the Administrative Agent, the Issuing Bank or any  Lender on a non-confidential basis from a source other than any Loan Party and, as far as such recipient is  aware, has not been made available as a result of a breach of any obligation of confidentiality of such source  with respect to such information; provided that, in the case of clause (c), the party disclosing such  information shall provide to the Borrower Representative prior written notice (except where prohibited by  applicable law or where not reasonably commercially practicable, in which case, prompt written notice  shall be provided) of such disclosure to the extent permitted by applicable law and, in the case of a  subpoena, the applicable Governmental Authority has not otherwise requested that the disclosing party  refrain from disclosing to the Borrower Representative the existence of such subpoena, and, in each case if  requested by the Borrower Representative in writing, such disclosing party shall cooperate with the  Borrower Representative to the extent commercially reasonable with respect to a protective order for, or  other confidential treatment of, such disclosure.  For the purposes of this Section, “Information” means all  information received from the Loan Parties relating to the Loan Parties or their business, other than any  such information that is available to the Administrative Agent, the Issuing Bank or any Lender on a non- confidential basis prior to disclosure by the Loan Parties under circumstances in which, as far as such  recipient is aware, such information has not been made available as a result of a breach of any obligation  of confidentiality of such source with respect to such information. Any Person required to maintain the  confidentiality of Information as provided in this Section shall be considered to have complied with its  obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of  such Information as such Person would accord to its own confidential information. EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN SECTION 9.12  FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON- PUBLIC INFORMATION CONCERNING THE COMPANY, AND ITS AFFILIATES AND THEIR  RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS  DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON- PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC  INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW,  INCLUDING FEDERAL AND STATE SECURITIES LAWS. 

 

160 ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS,  FURNISHED BY THE LOAN PARTIES OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR  IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL  INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT  THE COMPANY, THE LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE  SECURITIES. ACCORDINGLY, EACH LENDER REPRESENTS TO THE LOAN PARTIES AND THE  ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE  QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY  CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS  COMPLIANCE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE  SECURITIES LAWS. SECTION 9.13 Several Obligations; Nonreliance; Violation of Law. The respective obligations of  the Lenders hereunder are several and not joint and the failure of any Lender to make any Loan or perform  any of its obligations hereunder shall not relieve any other Lender from any of its obligations hereunder.  Each Lender hereby represents that it is not relying on or looking to any margin stock (as defined in  Regulation U of the Board) for the repayment of the Borrowings provided for herein. Anything contained  in this Agreement to the contrary notwithstanding, neither the Issuing Bank nor any Lender shall be  obligated to extend credit to the Borrowers in violation of any Requirement of Law.  SECTION 9.14 USA PATRIOT Act. Each Lender that is subject to the requirements of the USA  PATRIOT Act hereby notifies each Loan Party that pursuant to the requirements of the USA PATRIOT  Act, it is required to obtain, verify and record information that identifies such Loan Party, which information  includes the name and address of such Loan Party and other information that will allow such Lender to identify such Loan Party in accordance with the USA PATRIOT Act.  SECTION 9.15 Reserved.  SECTION 9.16 Disclosure. Each Loan Party, each Lender and the Issuing Bank hereby  acknowledges and agrees that the Administrative Agent and/or its Affiliates from time to time may hold  investments in, make other loans to or have other relationships with any of the Loan Parties and their  respective Affiliates.  SECTION 9.17 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 other Secured  Parties, in assets which, in accordance with Article 9 of the UCC or any other applicable law can be  perfected only by possession or control. Should any Lender (other than the Administrative Agent) obtain possession or control of any such Collateral, such Lender shall notify the Administrative Agent thereof,  and, promptly upon the Administrative Agent’s request therefor shall deliver such Collateral to the  Administrative Agent or otherwise deal with such Collateral in accordance with the Administrative Agent’s  instructions.  SECTION 9.18 Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any  time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are  treated as interest on such Loan under applicable law (collectively the “Charges”), shall exceed the  maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or  reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in  respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the  Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect  of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the  interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not  

 

161 above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the  Overnight Bank Funding Rate to the date of repayment, shall have been received by such Lender.  SECTION 9.19 No Advisory or Fiduciary Responsibility. In connection with all aspects of each  transaction contemplated hereby (including in connection with any amendment, waiver or other  modification hereof or of any other Loan Document), each Loan Party acknowledges and agrees that:  (i) (A) the arranging and other services regarding this Agreement provided by the Lenders are arm’s-length  commercial transactions between such Borrower and its Affiliates, on the one hand, and the Lenders and  their Affiliates, on the other hand, (B) such Loan Party has consulted its own legal, accounting, regulatory  and tax advisors to the extent it has deemed appropriate, and (C) such Loan Party is capable of evaluating,  and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and  by the other Loan Documents; (ii) (A) each of the Lenders and their Affiliates is and has been acting solely  as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and  will not be acting as an advisor, agent or fiduciary for such Loan Party or any of its Affiliates, or any other  Person and (B) no Lender or any of its Affiliates has any obligation to such Loan Party or any of its  Affiliates with respect to the transactions contemplated hereby except, in the case of a Lender, those  obligations expressly set forth herein and in the other Loan Documents; and (iii) each of the Lenders and  their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ  from those of such Loan Party and its Affiliates, and no Lender or any of its Affiliates has any obligation  to disclose any of such interests to such Loan Party or its Affiliates. To the fullest extent permitted by law,  each Loan Party hereby waives and releases any claims that it may have against each of the Lenders and  their Affiliates with respect to any breach or alleged breach of agency or fiduciary duty in connection with  any aspect of any transaction contemplated hereby. SECTION 9.20 Authorization to Distribute Certain Materials to Public-Siders. The Borrowers  hereby acknowledge that (a) the Administrative Agent will make available to the Lenders and each Issuing  Bank materials and/or information provided by or on behalf of the Borrowers hereunder (collectively,  “Borrower Materials”) and (b) Public-Siders may have personnel who do not wish to receive material non- public information with respect to the Borrower or its Affiliates, or the respective securities of any of the  foregoing, and who may be engaged in investment and other market-related activities with respect to such  Persons’ securities.  The Loan Parties shall be deemed to have authorized the Administrative Agent and its  Affiliates and the Lenders to treat Borrower Materials marked by an authorized representative of the  Borrower Representative as “PUBLIC” or otherwise at any time filed with the SEC as not containing any  material non-public information with respect to the Loan Parties or their securities for purposes of United  States federal and state securities laws.  All Borrower Materials marked “PUBLIC” are permitted to be  made available by the Administrative Agent or its Affiliates on Syndtrak or a substantially similar electronic  transmission system, including that portion of such electronic transmission system that is designated for  Public-Siders.  The Administrative Agent and its Affiliates and the Lenders shall be entitled to treat any  Borrower Materials that are not marked “PUBLIC” or that are not at any time filed with the SEC as being  suitable only for posting on a portion of Syndtrak or a substantially similar electronic transmission system  which is not marked as being available for “Public Investors” or “Public-Siders” (or such other similar  terms).   Notwithstanding the foregoing, the Borrower shall be under no obligation to mark any Borrower  Materials “PUBLIC.” SECTION 9.21 Obligations of Non-Loan Party Excluded Domestic Subsidiaries and Foreign  Subsidiaries. Notwithstanding anything in this Agreement or any other Loan Document to the contrary,  none of any Excluded Domestic Subsidiary nor any Foreign Subsidiary of the Company (which entities,  for the avoidance of doubt, shall not be Loan Parties) shall be liable or in any manner responsible for, or be  deemed to have guaranteed, directly or indirectly, whether as a primary obligor, guarantor, indemnitor, or  otherwise, and none of their assets shall secure, directly or indirectly, any obligations (including principal,  interest, fees, penalties, premiums, expenses, charges, reimbursements, indemnities or any other  

 

162 Obligations) in respect of any Loan Party under this Agreement, any other Loan Document, any document  with respect to Banking Services Obligations or Swap Agreement Obligations or any other agreement  executed and/or delivered in connection with any of the foregoing.  SECTION 9.22 Judgment Currency. If for the purpose of obtaining judgment in any court it is  necessary to convert an amount due hereunder in the currency in which it is due (the “Original Currency”)  into another currency (the “Second Currency”), the rate of exchange applied shall be that at which, in  accordance with normal banking procedures, the Administrative Agent could purchase the Original  Currency with the Second Currency at the Dollar Amount or Alternative Currency Equivalent, as  applicable, on the date two Business Days preceding that on which judgment is given. Each Loan Party  agrees that its obligation in respect of any Original Currency due from it hereunder shall, notwithstanding  any judgment or payment in such other currency, be discharged only to the extent that, on the Business Day  following the date the Administrative Agent receives payment of any sum so adjudged to be due hereunder  in the Second Currency, the Administrative Agent may, in accordance with normal banking procedures,  purchase, in the New York foreign exchange market, the Original Currency with the amount of the Second  Currency so paid; and if the amount of the Original Currency so purchased or could have been so purchased  is less than the amount originally due in the Original Currency as a result of such judgment, each Loan  Party agrees as a separate obligation and notwithstanding any such payment or judgment to indemnify the  Administrative Agent against such loss. The term “rate of exchange” in this Section means the Dollar  Amount or Alternative Currency Equivalent, as applicable, on the relevant date, and shall include any  premium and costs of exchange payable in connection with such purchase.  SECTION 9.23 Waiver of Immunity. To the extent that any Loan Party has, or hereafter may be  entitled to claim or may acquire, for itself, any Collateral or other assets of the Loan Parties, any immunity  (whether sovereign or otherwise) from suit, jurisdiction of any court or from any legal process (whether  through service of notice, attachment prior to judgment, attachment in aid of execution or otherwise) with  respect to itself, any Collateral or any other assets of the Loan Parties, such Loan Party hereby waives such  immunity in respect of its obligations hereunder and under any promissory notes evidencing the Loans  hereunder and any other Loan Document to the fullest extent permitted by applicable law and, without  limiting the generality of the foregoing, agrees that the waivers set forth in this Section shall be effective to  the fullest extent now or hereafter permitted under the Foreign Sovereign Immunities Act of 1976 (as  amended, and together with any successor legislation) and are, and are intended to be, irrevocable for  purposes thereof.  SECTION 9.24 [Reserved].  SECTION 9.25 Termination and Release of Collateral.    (a) Liens in Collateral will be released, and applicable Loan Parties shall be released of their  obligations under the Loan Documents, in accordance with the terms of Section 9.02(c) hereof. (b) In connection with the termination of all Commitments, payment and satisfaction in full in  cash of all Secured Obligations (other than Unliquidated Obligations) and the Cash Collateralization (or, at  the discretion of the Administrative Agent, the providing of a backup standby letter of credit satisfactory to  the Administrative Agent and the Issuing Banks) of all outstanding Letters of Credit, the Administrative  Agent, on behalf of the Lenders, agrees to negotiate in good faith with the Borrower Representative, and to  execute and deliver, a customary payoff letter in form and substance reasonably satisfactory to the  Administrative Agent and the Borrower Representative, which payoff letter shall provide for, among other things, (i) an acknowledgment of the termination of all Loan Documents, other than any terms thereunder  that expressly survive termination, (ii) delivery to the Borrower Representative or its designee of all  property pledged to the Administrative Agent or any Lender (including without limitation stock or other  

 

163 certificates, notes receivable, certificates of title, change of address forms and other instruments) or, if  applicable, lost collateral affidavits with respect thereto, (iii) delivery to the Borrower Representative of the  original promissory notes executed in connection with the Obligations marked “CANCELLED”,  (iv) delivery to the Borrower Representative or its designee of mortgage or deed of trust releases against  any real property of any Loan Party or property subject to any title laws and other like releases, revocations  of direct pay notices to account debtors, Credit Card Notifications, releases of deposit account control  agreements, Collateral Access Agreements and similar instruments or documents, (v) delivery to the  Borrower Representative or its designee of UCC-3 termination statements with respect to the UCC  discharge filings made by the Administrative Agent in respect of each Loan Party, as applicable, and (vi) a release of liability from the Loan Parties in favor of the Secured Parties. SECTION 9.26 Publicity.  Each Loan Party and each Lender hereby authorizes the Administrative  Agent, at its sole expense, after providing prior notice thereof to the Borrower Representative, to reference  this Agreement and the syndication and arrangement of the loan facility contemplated herein (but not the  individual Lenders, bookrunners or arrangers) in connection with marketing, press release or other  transactional announcements or updates; provided that the content of any such marketing, press release or  other transactional announcements or updates shall be reasonably acceptable to the Borrower  Representative (it being understood that tombstones used in pitchbooks by Administrative Agent (as  opposed to public announcements) referencing the syndication and arrangement of this Agreement and the  loan facility contemplated herein, or inclusion of same on lists or in other formats (other than public  announcements), in each case providing the same information as is typically included on tombstones, shall  not require prior notice thereof to, or acceptance by, the Borrower Representative).  SECTION 9.27 Acknowledgement and Consent to Bail-In of Affected Financial Institutions. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement  or understanding among any such parties, each party hereto acknowledges that any liability of any Affected  Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be  subject to the write-down and conversion powers of an Affected Resolution Authority and agrees and  consents to, and acknowledges and agrees to be bound by:  (a) the application of any Write-Down and Conversion Powers by the applicable Resolution  Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an  Affected Financial Institution; and (b) the effects of any Bail-In Action on any such liability, including, if applicable (i) a reduction in full or in part or cancellation of any such liability, (ii) a conversion of all, or a portion of, such  liability into shares or other instruments of ownership in such Affected Financial Institution, its parent  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 any other Loan Document or (iii) the variation of the terms of such liability  in connection with the exercise of the write-down and conversion powers of the applicable Resolution  Authority.  SECTION 9.28 Certain ERISA Matters.  Each Lender (x) represents and warrants, as of the date  such Person became a Lender party hereto, and (y) covenants, from the date such Person became a Lender  party hereto to the date such Person ceases being a Lender party hereto, to and for the benefit of the  Administrative Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit of the  Borrower or any other Loan Party, that at least one of the following is and will be true:  

 

164 (i) such Lender is not using “plan assets” (within the meaning of the Plan Asset  Regulations) of one or more U.S. Benefit Plans in connection with the Loans, the Letters of Credit  or the Commitments, (ii) the transaction exemption set forth in one or more prohibited transaction  exceptions (or “PTEs”), such as PTE 84-14 (a class exemption for certain transactions determined  by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain  transactions involving insurance company general accounts), PTE 90-1 (a class exemption for  certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class  exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a  class exemption for certain transactions determined by in-house asset managers), is applicable with  respect to such Lender’s entrance into, participation in, administration of and performance of the  Loans, the Letters of Credit, the Commitments and this Agreement, and the conditions for  exemptive relief thereunder are and will continue to be satisfied in connection therewith,  (iii) (A) such Lender is an investment fund managed by a “Qualified Professional Asset  Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset  Manager made the investment decision on behalf of such Lender to enter into, participate in,  administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement,  (C) the entrance into, participation in, administration of and performance of the Loans, the Letters  of Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b)  through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements  of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into,  participation in, administration of and performance of the Loans, the Letters of Credit, the  Commitments and this Agreement, or  (iv) such other representation, warranty and covenant as may be agreed in writing  between the Administrative Agent, in its sole discretion, and such Lender.  SECTION 9.29 Acknowledgement Regarding Any Supported QFCs.  To the extent that the Loan  Documents provide support, through a guarantee or otherwise, for Swap Agreement Obligations or any  other agreement or instrument that is a QFC (such support, “QFC Credit Support” and each such QFC a  “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of  the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the  Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated  thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit  Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported  QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States  or any other state of the United States): (a) In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”)  becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported  QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported  QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC  Credit Support) from such Covered Party will be effective to the same extent as the transfer would be  effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support  (and any such interest, obligation and rights in property) were governed by the laws of the United States or  a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes  subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents  that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against  such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be  

 

165 exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were  governed by the laws of the United States or a state of the United States. Without limitation of the foregoing,  it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall  in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit  Support.  (b) As used in this Section 9.29, the following terms have the following meanings:  “BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under,  and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.  “Covered Entity” means any of the following:  a “covered entity” as that term is defined in, and interpreted in  accordance with, 12 C.F.R. §252.82(b);  a “covered bank” as that term is defined in, and interpreted in  accordance with, 12 C.F.R. §47.3(b); or  a “covered FSI” as that term is defined in, and interpreted in  accordance with, 12 C.F.R. §382.2(b).  “Default Right” has the meaning assigned to that term in, and shall be interpreted  in accordance with, 12 C.F.R. §§252.81, 47.2 or 382.1, as applicable.  “QFC” has the meaning assigned to the term “qualified financial contract” in, and  shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).  ARTICLE X. LOAN GUARANTY SECTION 10.01 Guaranty. Each Loan Party hereby agrees that it is jointly and severally  liable for, and, as a primary obligor and not merely as surety, absolutely, unconditionally and irrevocably  guarantees to the Secured Parties, the prompt payment and performance when due, whether at stated  maturity, upon acceleration or otherwise, and at all times thereafter, of the Secured Obligations and all  reasonable and documented costs and expenses, including, without limitation, all court costs and attorneys’  and paralegals’ fees (subject to the limitations set forth in Section 9.03) and expenses paid or incurred by  the Administrative Agent, the Issuing Bank and the Lenders in endeavoring to collect all or any part of the  Secured Obligations from, or in prosecuting any action against, any Borrower, any Loan Party or any other  guarantor of all or any part of the Secured Obligations (such costs and expenses, together with the Secured  Obligations, collectively the “Guaranteed Obligations”; provided, however, that the definition of  “Guaranteed Obligations” shall not create any guarantee by any Loan Party of (or grant of security interest  by any Loan Party to support, as applicable) any Excluded Swap Obligations of such Loan Party for  purposes of determining any obligations of any Loan Party). Each Loan Party further agrees that the  Guaranteed Obligations may be extended or renewed in whole or in part without notice to or further assent  from it, and that it remains bound upon its guarantee notwithstanding any such extension or renewal. All  terms of this Guaranty apply to and may be enforced by or on behalf of any domestic or foreign branch or  Affiliate of any Lender or Issuing Bank that extended any portion of the Guaranteed Obligations.  

 

166 SECTION 10.02 Guaranty of Payment. This Guaranty is a guaranty of payment and not of  collection. Each Loan Party waives any right to require the Administrative Agent, the Issuing Bank or any  Lender to sue any other Loan Party, any other guarantor of, or any other Person obligated for, all or any  part of the Guaranteed Obligations (each, an “Obligated Party”), or to enforce its rights against any  collateral securing all or any part of the U.S. Guaranteed Obligations.  SECTION 10.03 No Discharge or Diminishment of Loan Guaranty. Except as otherwise  provided for herein, the obligations of each Loan Party hereunder are unconditional and absolute and not  subject to any reduction, limitation, impairment or termination for any reason (other than the indefeasible  payment in full in cash of the Guaranteed Obligations), including: (i) any claim of waiver, release,  extension, renewal, settlement, surrender, alteration or compromise of any of the Guaranteed Obligations,  by operation of law or otherwise; (ii) any change in the corporate existence, structure or ownership of any  Loan Party or any other Obligated Party liable for any of the Guaranteed Obligations; (iii) any insolvency,  bankruptcy, reorganization or other similar proceeding affecting any Obligated Party or their assets or any  resulting release or discharge of any obligation of any Obligated Party; or (iv) the existence of any claim,  setoff or other rights which any Loan Party may have at any time against any Obligated Party, the  Administrative Agent, the Issuing Bank, any Lender or any other Person, whether in connection herewith  or in any unrelated transaction. (a) The obligations of each Loan Party hereunder are not subject to any defense or setoff,  counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or  unenforceability of any of the Guaranteed Obligations or otherwise, or any provision of applicable law or  regulation purporting to prohibit payment by any Obligated Party, of the Guaranteed Obligations or any  part thereof. (b) Further, the obligations of any Loan Party hereunder are not discharged or impaired or  otherwise affected by: (i) the failure of the Administrative Agent, the Issuing Bank or any Lender to assert  any claim or demand or to enforce any remedy with respect to all or any part of the Guaranteed Obligations;  (ii) any waiver or modification of or supplement to any provision of any agreement relating to the  Guaranteed Obligations; (iii) any release, non- perfection or invalidity of any indirect or direct security for  the obligations of any Loan Party for all or any part of the Guaranteed Obligations or any obligations of  any other Obligated Party liable for any of the Guaranteed Obligations; (iv) any action or failure to act by  the Administrative Agent, the Issuing Bank or any Lender with respect to any collateral securing any part  of the Guaranteed Obligations; or (v) any default, failure or delay, willful or otherwise, in the payment or  performance of any of the Guaranteed Obligations, or any other circumstance, act, omission or delay that  might in any manner or to any extent vary the risk of such Loan Party or that would otherwise operate as a  discharge of any Loan Party as a matter of law or equity (other than the indefeasible payment in full in cash  of the Guaranteed Obligations). SECTION 10.04 Defenses Waived. To the fullest extent permitted by applicable law, each  Loan Party hereby waives any defense based on or arising out of any defense of any Loan Party or the  unenforceability of all or any part of the Guaranteed Obligations from any cause, or the cessation from any  cause of the liability of any Loan Party or any other Obligated Party, other than the indefeasible payment  in full in cash of the Guaranteed Obligations. Without limiting the generality of the foregoing, each Loan  Party irrevocably waives acceptance hereof, presentment, demand, protest and, to the fullest extent  permitted by law, any notice not provided for herein, as well as any requirement that at any time any action  be taken by any Person against any Obligated Party or any other Person. Each Loan Party confirms that it  is not a surety under any state law and shall not raise any such law as a defense to its obligations hereunder.  The Administrative Agent may, at its election, foreclose on any Collateral securing all or a part of the  Guaranteed Obligations and held by it by one or more judicial or nonjudicial sales, accept an assignment  of any such Collateral in lieu of foreclosure or otherwise act or fail to act with respect to any such Collateral,  

 

167 compromise or adjust any part of the Guaranteed Obligations, make any other accommodation with any  Obligated Party or exercise any other right or remedy available to it against any Obligated Party, without  affecting or impairing in any way the liability of such Loan Party under this Guaranty except to the extent  the Guaranteed Obligations have been fully and indefeasibly paid in cash. To the fullest extent permitted  by applicable law, each Loan Party waives any defense arising out of any such election even though that  election may operate, pursuant to applicable law, to impair or extinguish any right of reimbursement or  subrogation or other right or remedy of any Loan Party against any Obligated Party or any security.   SECTION 10.05 Rights of Subrogation. No Loan Party will assert any right, claim or cause  of action, including, without limitation, a claim of subrogation, contribution or indemnification, that it has  against any Obligated Party or any Collateral, until the Loan Parties have fully performed all their  obligations to the Administrative Agent, the Issuing Bank, the Lenders, and the other Secured Parties.  SECTION 10.06 Reinstatement; Stay of Acceleration. If at any time any payment of any  portion of the Guaranteed Obligations (including a payment effected through exercise of a right of setoff)  is rescinded, or must otherwise be restored or returned upon the insolvency, bankruptcy or reorganization  of any Loan Party or otherwise (including pursuant to any settlement entered into by a Secured Party in its  discretion), each Loan Party’s obligations under this Guaranty with respect to that payment shall be  reinstated at such time as though the payment had not been made and whether or not the Administrative  Agent, the Issuing Bank, the Lenders, or the other Secured Parties are in possession of this Guaranty. If  acceleration of the time for payment of any of the Guaranteed Obligations is stayed upon the insolvency,  bankruptcy or reorganization of any Loan Party, all such amounts otherwise subject to acceleration under  the terms of any agreement relating to the Guaranteed Obligations shall nonetheless be payable by the Loan  Parties forthwith on demand by the Administrative Agent.  SECTION 10.07 Information. Each Loan Party assumes all responsibility for being and  keeping itself informed of each Loan Party’s financial condition and assets, and of all other circumstances  bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope and extent of the  risks that each Loan Party assumes and incurs under this Guaranty, and agrees that none of the  Administrative Agent, the Issuing Bank or any Lender shall have any duty to advise any Loan Party of  information known to it regarding those circumstances or risks.  SECTION 10.08 [Reserved.] SECTION 10.09 [Reserved.] SECTION 10.10 Maximum Liability. The provisions of this Guaranty are severable, and in  any action or proceeding involving any state corporate law, or any state, federal or foreign bankruptcy,  insolvency, reorganization or other law affecting the rights of creditors generally, if the obligations of any  Loan Party under this Guaranty would otherwise be held or determined to be avoidable, invalid or  unenforceable on account of the amount of Loan Party’s liability under this Guaranty, then, notwithstanding  any other provision of this Guaranty to the contrary, the amount of such liability shall, without any further  action by the Loan Party or the Lenders, be automatically limited and reduced to the highest amount that is  valid and enforceable as determined in such action or proceeding (such highest amount determined  hereunder being the relevant Loan Party’s “Maximum Liability”). This Section with respect to the  Maximum Liability of each Loan Party is intended solely to preserve the rights of the Lenders to the  maximum extent not subject to avoidance under applicable law, and no Loan Party nor any other Person or  entity shall have any right or claim under this Section with respect to such Maximum Liability, except to  the extent necessary so that the obligations of any Loan Party hereunder shall not be rendered voidable  under applicable law. Each Loan Party agrees that the Guaranteed Obligations may at any time and from  time to time exceed the Maximum Liability of each Loan Party without impairing this Guaranty or affecting  

 

168 the rights and remedies of the Lenders hereunder; provided that nothing in this sentence shall be construed  to increase any Loan Party’s obligations hereunder beyond its Maximum Liability.  SECTION 10.11 Contribution. In the event any Loan Party (a “Paying Loan Party”) shall  make any payment or payments under this U.S. Guaranty or shall suffer any loss as a result of any  realization upon any collateral granted by it to secure its obligations under this U.S. Guaranty, each other  Loan Party (each a “Non-Paying Loan Party”) shall contribute to such Paying Loan Party an amount equal  to such Non-Paying Loan Party’s Applicable Share of such payment or payments made, or losses suffered,  by such Paying Loan Party. For purposes of this Section, each Non-Paying Loan Party’s “Applicable Share”  with respect to any such payment or loss by a Paying Loan Party shall be determined as of the date on which  such payment or loss was made by reference to the ratio of (a) such Non-Paying Loan Party’s Maximum  Liability as of such date (without giving effect to any right to receive, or obligation to make, any  contribution hereunder) or, if such Non-Paying Loan Party’s Maximum Liability has not been determined,  the aggregate amount of all monies received by such Non-Paying Loan Party from the other Loan Parties  after the date hereof (whether by loan, capital infusion or by other means) to (b) the aggregate Maximum  Liability of all Loan Party hereunder (including such Paying Loan Party) as of such date (without giving  effect to any right to receive, or obligation to make, any contribution hereunder), or to the extent that a  Maximum Liability has not been determined for any Loan Party, the aggregate amount of all monies  received by such Loan Parties from the other Loan Parties after the date hereof (whether by loan, capital  infusion or by other means). Nothing in this provision shall affect any Loan Party’s several liability for the  entire amount of the Guaranteed Obligations (up to such Loan Party’s Maximum Liability). Each of the  Loan Parties covenants and agrees that its right to receive any contribution under this Guaranty from a Non- Paying Loan Party shall be subordinate and junior in right of payment to the payment in full in cash of the  Guaranteed Obligations. This provision is for the benefit of both the Administrative Agent, the Issuing  Banks, the Lenders and Loan Parties and may be enforced by any one, or more, or all of them in accordance  with the terms hereof.  SECTION 10.12 Liability Cumulative. The liability of each Loan Party under this Article  X is in addition to and shall be cumulative with all liabilities of each Loan Party to the Administrative  Agent, the Issuing Bank and the Lenders under this Agreement and the other Loan Documents to which  such Loan Party is a party or in respect of any obligations or liabilities of the other Loan Parties, without  any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability  specifically provides to the contrary.  SECTION 10.13 Keepwell. Each Qualified ECP Guarantor hereby jointly and severally  absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be  needed from time to time by each other Loan Party to honor all of its obligations under this Guaranty in  respect of a Swap Obligation (provided, however, that each such Qualified ECP Guarantor shall only be  liable under this Section 10.13 for the maximum amount of such liability that can be hereby incurred without  rendering its obligations under this Section 10.13 or otherwise under this Guaranty voidable under  applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount).  Except as otherwise provided herein, the obligations of each such Qualified ECP Guarantor under this  Section 10.13 shall remain in full force and effect until the termination of all Swap Obligations. Each such  Qualified ECP Guarantor intends that this Section 10.13 constitute, and this Section 10.13 shall be deemed  to constitute, a “keepwell, support, or other agreement” for the benefit of each other Loan Party for all  purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.  SECTION 10.14 Common Enterprise.  Each Loan Party represents and warrants that the  successful operation and condition of each of the Loan Parties is dependent on the continued successful  performance of the functions of the group of the Loan Parties as a whole and the successful operation of  each of the Loan Parties is dependent on the successful performance and operation of each other Loan Party.  

 

169 Each Loan Party expects to derive benefit (and its board of directors or other governing body has determined  that it may reasonably be expected to derive benefit), directly and indirectly, from (i) successful operations  of each of the other Loan Parties and (ii) the credit extended by the Lenders to the Borrowers hereunder,  both in their separate capacities and as members of the group of companies. Each Loan Party has determined  that execution, delivery, and performance of this Agreement and any other Loan Documents to be executed  by such Loan Party is within its purpose, in furtherance of its direct and/or indirect business interests, will  be of direct and/or indirect benefit to such Loan Party, and is in its best interest. ARTICLE XI. [RESERVED] ARTICLE XII. THE BORROWER REPRESENTATIVE SECTION 12.01 Appointment; Nature of Relationship. The Company is hereby appointed  by each of the Borrowers as its contractual representative (herein referred to as the “Borrower  Representative”) hereunder and under each other Loan Document, and each of the Borrowers irrevocably  authorizes the Borrower Representative to act as the contractual representative of such Borrower with the  rights and duties expressly set forth herein and in the other Loan Documents. The Borrower Representative  agrees to act as such contractual representative upon the express conditions contained in this Article XII.  Additionally, the Borrowers hereby appoint the Borrower Representative as their agent to receive all of the  proceeds of the Loans in the Funding Account(s), at which time the Borrower Representative shall promptly  disburse such Loans to the appropriate Borrower(s), provided that, in the case of a Revolving Loan, such  amount shall not result in a violation of the Revolving Exposure Limitations. The Administrative Agent  and the Lenders, and their respective officers, directors, agents or employees, shall not be liable to the  Borrower Representative or any Borrower for any action taken or omitted to be taken by the Borrower  Representative or the Borrowers pursuant to this Section 12.01.  SECTION 12.02 Powers. The Borrower Representative shall have and may exercise such  powers under the Loan Documents as are specifically delegated to the Borrower Representative by the  terms of each thereof, together with such powers as are reasonably incidental thereto. The Borrower  Representative shall have no implied duties to the Borrowers, or any obligation to the Lenders to take any  action thereunder except any action specifically provided by the Loan Documents to be taken by the  Borrower Representative. SECTION 12.03 Employment of Agents. The Borrower Representative may execute any of  its duties as the Borrower Representative hereunder and under any other Loan Document by or through  Responsible Officers.  SECTION 12.04 Notices. Each Loan Party shall promptly notify the Borrower  Representative of the occurrence of any Default or Event of Default hereunder referring to this Agreement  describing such Default or Event of Default and stating that such notice is a “notice of default”. In the event  that the Borrower Representative receives such a notice, the Borrower Representative shall give notice  thereof to the Administrative Agent and the Lenders pursuant to Section 5.02.    SECTION 12.05 Successor Borrower Representative.  Upon the prior written consent of the  Administrative Agent, the Borrower Representative may resign at any time, such resignation to be effective  upon the appointment of a successor Borrower Representative (it being understood that such successor must  

 

170 be a Borrower). The Administrative Agent shall give prompt written notice of such resignation to the  Lenders. SECTION 12.06 Execution of Loan Documents; Borrowing Base Certificate. The  Borrowers hereby empower and authorize the Borrower Representative, on behalf of the Borrowers, to  execute and deliver to the Administrative Agent and the Lenders the Loan Documents and all related  agreements, certificates, documents, or instruments as shall be necessary or appropriate to effect the  purposes of the Loan Documents, including, without limitation, the Borrowing Base Certificates and the  Compliance Certificates. Each Borrower agrees that any action taken by the Borrower Representative or  the Borrowers in accordance with the terms of this Agreement or the other Loan Documents, and the  exercise by the Borrower Representative of its powers set forth therein or herein, together with such other  powers that are reasonably incidental thereto, shall be binding upon all of the Borrowers.  SECTION 12.07 Reporting. Each Borrower hereby agrees that such Borrower shall furnish  promptly after each fiscal month to the Borrower Representative a copy of its Borrowing Base Certificate  and any other certificate or report required hereunder or requested by the Borrower Representative on which  the Borrower Representative shall rely to prepare the Borrowing Base Certificates and Compliance  Certificate required pursuant to the provisions of this Agreement. (Signature Pages Follow) 

 

[Signature Page to Credit Agreement]  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.        BORROWERS:  BIG LOTS, INC., an Ohio corporation  By: /s/ Jonathan E. Ramsden Name: Jonathan E. Ramsden   Title: Executive Vice President, Chief Financial and  Administrative Officer  BIG LOTS STORES, LLC,  an Ohio limited liability company  By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden   Title: Executive Vice President, Chief Financial and  Administrative Officer  

 

[Signature Page to Credit Agreement]  OTHER LOAN PARTIES: CONSOLIDATED PROPERTY   HOLDINGS, INC., a Nevada corporation  By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden Title: President  BROYHILL, LLC,   an Ohio limited liability company  By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden   Title: Executive Vice President, Chief Financial and  Administrative Officer  BIG LOTS MANAGEMENT, LLC, an Ohio  limited liability company  By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden   Title: Executive Vice President, Chief Financial and  Administrative Officer  BIG LOTS STORES – PNS, LLC, a California  limited liability company  By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden Title: Executive Vice President, Chief Financial and  Administrative Officer  BIG LOTS STORES – CSR, LLC, an Ohio  limited liability company  By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden   Title: Executive Vice President, Chief Financial and  Administrative Officer  

 

[Signature Page to Credit Agreement]  CSC DISTRIBUTION LLC, an Alabama limited  liability company  By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden   Title: Executive Vice President, Chief Financial and  Administrative Officer  CLOSEOUT DISTRIBUTION, LLC, a  Pennsylvania limited liability company   By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden   Title: Executive Vice President, Chief Financial and  Administrative Officer  DURANT DC, LLC, an Ohio limited liability  company  By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden   Title: Executive Vice President, Chief Financial and  Administrative Officer  GAFDC LLC, an Ohio limited liability company  By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden Title: Executive Vice President, Chief Financial and  Administrative Officer  PAFDC LLC, an Ohio limited liability company  By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden   Title: Executive Vice President, Chief Financial and  Administrative Officer  

 

[Signature Page to Credit Agreement] INFDC, LLC, an Ohio limited liability company By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden Title: Executive Vice President, Chief Financial and  Administrative Officer  GREAT BASIN LLC, a Delaware limited liability  company   By: /s/ Jonathan E. Ramsden Name: Jonathan E. Ramsden   Title: Executive Vice President, Chief Financial and  Administrative Officer  BIG LOTS ECOMMERCE LLC, an Ohio limited  liability company   By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden   Title: Executive Vice President, Chief Financial and  Administrative Officer  BIG LOTS F&S, LLC, an Ohio limited liability  company  By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden   Title: Executive Vice President, Chief Financial and  Administrative Officer  AVDC, LLC, an Ohio limited liability company  By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden   Title: Executive Vice President, Chief Financial and  Administrative Officer  WAFDC, LLC, an Ohio limited liability company  By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden   Title: Executive Vice President, Chief Financial and  Administrative Officer 

 

[Signature Page to Credit Agreement]  PNC BANK, NATIONAL ASSOCIATION,  Individually as a Lender and as Administrative  Agent, an Issuing Bank and Swingline Lender  By: /s/ Jeffrey Penno  Name: Jeffrey Penno   Title: Senior Vice President  

 

[Signature Page to Credit Agreement]  HUNTINGTON NATIONAL BANK, as a Lender  By: /s/ Patricia Scudder Name: Patricia Scudder   Title: ABL Relationship Manager/Vice President  

 

[Signature Page to Credit Agreement]  TRUIST BANK, as a Lender  By: /s/ Scott Wheeler Name: Scott Wheeler  Title: Vice President 

 

[Signature Page to Credit Agreement]  U.S. BANK NATIONAL ASSOCIATION, as a  Lender and as an Issuing Bank   By: /s/ Daniel Yu  Name: Daniel Yu   Title: Senior Vice President  

 

[Signature Page to Credit Agreement]  WELLS FARGO BANK, NATIONAL  ASSOCIATION, as a Lender   By: /s/ Cory Loftus  Name: Cory Loftus   Title: Managing Director  

 

[Signature Page to Credit Agreement]  BANK OF AMERICA, N.A., as a Lender  By: /s/ Nicholas J Balta  Name: Nicholas J Balta  Title: Vice President 

 

[Signature Page to Credit Agreement]  FIFTH THIRD BANK, NATIONAL  ASSOCIATION, as a Lender   By: /s/ Mark Pienkos  Name: Mark Pienkos   Title: Managing Director  

 

[Signature Page to Credit Agreement]  MUFG BANK, LTD., as a Lender  By: /s/ Edward Dridge  Name: Edward Dridge  Title: Director  

 

EXECUTION  SCHEDULE 1.01(A)  COMMITMENT SCHEDULE  Lender Commitment Applicable Percentage  PNC Bank, National Association $250,000,000.00 27.77777778%  Huntington National Bank $125,000,000.00 13.88888889%  Truist Bank $125,000,000.00 13.88888889%  U.S. Bank National Association $125,000,000.00 13.88888889%  Wells Fargo Bank, National Association $125,000,000.00 13.88888889%  Bank of America, N.A. $50,000,000.00 5.55555556%  Fifth Third Bank, National Association $50,000,000.00 5.55555556%  MUFG Bank, Ltd. $50,000,000.00 5.55555556%  Total: $900,000,000.00 100.00000000%  LC INDIVIDUAL SUBLIMITS Issuing Bank LC Individual  Sublimit PNC Bank, National  Association  No LC Individual  Sublimit applies for  PNC Bank, National  Association as Issuing  Bank U.S. Bank National  Association  $15,000,000.00  11024511  

 

SCHEDULE 1.01(B) EXISTING LETTERS OF CREDIT  

 

SCHEDULE 1.01(C) IMMATERIAL SUBSIDIARIES  

 

SCHEDULE 3.02 CAPITALIZATION; SUBSIDIARIES; JOINT VENTURES  

 

SCHEDULE 3.10(A) REAL PROPERTY  

 

SCHEDULE 3.10(B) INTELLECTUAL PROPERTY  

 

SCHEDULE 3.11  INSURANCE  

 

SCHEDULE 3.19 CREDIT CARD ARRANGEMENTS  

 

SCHEDULE 5.16 POST-CLOSING COVENANTS  1. On or before the date that is ten (10) Business Days after the Closing Date, the Loan Parties shall deliver, or cause to be delivered, to the Administrative Agent each original promissory note dated as of the date hereof. 2. On or before the date that is ten (10) Business Days after the Closing Date, the Loan Parties shall deliver, or cause to be delivered, to the Administrative Agent a favorable written opinion from the counsel of Consolidated Property Holdings, Inc., in form and substance reasonably acceptable to the Administrative Agent. 3. On or before the date that is sixty (60) days after the Closing Date, the Loan Parties shall deliver, or cause to be delivered, to the Administrative Agent (i) a lender’s loss payable endorsement and notice of cancellation endorsement in favor of the Administrative Agent with respect to the Loan Parties’ property insurance policy, (ii) an additional insured endorsement and notice of cancellation endorsement in favor of the Administrative Agent with respect to the Loan Parties’ liability insurance policy and (iii) a banker’s endorsement and notice of cancellation endorsement in favor of the Administrative Agent with respect to the Loan Parties’ marine cargo insurance policy, in each case, in form and substance reasonably acceptable to the Administrative Agent. 4. On or before the date that is ninety (90) days after the Closing Date, the Loan Parties shall deliver, or cause to be delivered, to the Administrative Agent duly executed Deposit Account Control Agreements (as defined in the Security Agreement) and Securities Account Control Agreements (as defined in the Security Agreement), as applicable, for each Deposit Account and Securities Account as requested by the Administrative Agent. 5. Inventory that is in-transit from a foreign location as of the Closing Date that does not satisfy all of the criteria for the definition of “Eligible In-Transit Inventory” may be included in the Borrowing Base for a period of ninety (90) days after the Closing Date, which may be extended in the Administrative Agent’s sole discretion; provided, however, nothing shall be deemed to limit the Administrative Agent’s right to impose Reserves with respect to such Inventory in accordance with the terms of this Agreement, whether before or after the expiration of such ninety (90) day period, which may be extended in the Administrative Agent’s sole discretion. 6. On or before the date that is ninety (90) days after the Closing Date, the Loan Parties shall use commercially reasonable efforts to deliver, or cause to be delivered, to the Administrative Agent duly executed Collateral Access Agreements for each location with eligible inventory in accordance with the definition of “Eligible Inventory”. Notwithstanding anything in this Schedule 5.16 or Section 5.16 of the Agreement to the contrary, the  Administrative Agent shall not extend any of the above listed deadlines more than an additional sixty (60)  days without the consent of the Required Lenders.  

 

SCHEDULE 6.01 EXISTING INDEBTEDNESS  

 

SCHEDULE 6.02 EXISTING INVESTMENTS  

 

SCHEDULE 6.03  EXISTING CONTRACTUAL ENCUMBRANCES AND RESTRICTIONS1 

 

SCHEDULE 6.05 EXISTING AFFILIATE TRANSACTIONS  

 

SCHEDULE 6.07 EXISTING LIENS  

 

EXECUTION  EXHIBIT A  [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 [ ] (the  “Assignor”) and [ ] (the “Assignee”).  Capitalized terms used but not  defined herein shall have the meanings given to them in the Credit Agreement identified below (as  amended, restated, supplemented, or otherwise modified from time to time, the “Credit  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.  For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the  Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject  to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the  Effective Date inserted by the Administrative Agent as contemplated below, (i) all of the  Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any  other documents or instruments delivered pursuant thereto to the extent related to the amount and  percentage interest identified below of all of such outstanding rights and obligations of the  Assignor under the respective facilities identified below (including any Letters of Credit,  guarantees, Swingline Loans, Protective Advances and Overadvances included in such facilities)  and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of  action and other rights of the Assignor (in its capacity as a Lender) against any Person, whether  known or unknown, arising under or in connection with the Credit Agreement, any other  documents or instruments delivered pursuant thereto or the loan transactions governed thereby or  in any way based on or related to any of the foregoing, including contract claims, tort claims,  malpractice claims, statutory claims and all other claims at law or in equity related to the rights  and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and  assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned  Interest”).  Such sale and assignment is without recourse to the Assignor and, except as expressly  provided in this Assignment and Assumption, without representation or warranty by the Assignor.  Assignor: Assignee: [and is a Lender, an Affiliate/Approved Fund of [ ]]1 Borrower Representative:  Big Lots, Inc.  Administrative Agent:  PNC Bank, National Association, as the administrative agent  under the Credit Agreement  1 Select as applicable.  10978925  

 

Credit Agreement: The Credit Agreement dated as of September 21, 2022 among  Big Lots, Inc., the other Loan Parties from time to time party  thereto, the Lenders from time to time party thereto, and PNC  Bank, National Association, as Administrative Agent  Assigned Interest:  Aggregate Amount of  Commitment/Loans for  all Lenders  Amount of  Commitment/Loans  Assigned2 Percentage Assigned of Commitment/Loans3 CUSIP Number  $ $ % $ $ % $ $ % [Trade Date:  [_____________, 20__]4 Effective Date:  [____________, 20__]5 The Assignee agrees to deliver to the Administrative Agent a completed Administrative  Questionnaire in which the Assignee designates one or more credit contacts to whom all syndicate- level information (which may contain material non-public information about the Company, the  other Loan Parties and their Related Parties or their respective securities) will be made available  and who may receive such information in accordance with the Assignee’s compliance procedures  and applicable laws, including federal and state securities laws.   2 Amounts in this column and in the column immediately to the right to be adjusted to take into account any  payments or prepayments made between the Trade Date and the Effective Date.  3 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.  4 To be completed as the Assignor and Assignee intend that the minimum assignment amount is to be determined as  of the Trade Date.  5 To be inserted by Administrative Agent and which shall be the effective date of recordation of transfer in the  register therefor.  

 

[Signature Page to Assignment and Assumption]  The terms set forth in this Assignment and Assumption are hereby agreed to:  ASSIGNOR [NAME OF ASSIGNOR]  By: Name:    Title:      ASSIGNEE [NAME OF ASSIGNEE]  By: _____________________________  Name:    Title:      

 

[Signature Page to Assignment and Assumption]  Consented to and Accepted:  PNC BANK, NATIONAL ASSOCIATION, as  Administrative Agent, Issuing Bank and Swingline Lender  By:  ________________________________  Name:    Title:      Consented to:  [_____________]6 By:  ________________________________  Name:    Title:      [Consented to:]7 BIG LOTS, INC.  By:  ________________________________  Name:    Title:      6 Add additional Issuing Banks, as applicable.  7 To be added only if the consent of the Borrower Representatives required by the terms of the Credit Agreement.  

 

ANNEX I  ASSIGNMENT AND ASSUMPTION  STANDARD TERMS AND CONDITIONS FOR  ASSIGNMENT AND ASSUMPTION  Representations and Warranties.   Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and  beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien,  encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all  action necessary, to execute and deliver this Assignment and Assumption and to consummate the  transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any  statements, warranties or representations made in or in connection with the Credit Agreement or  any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,  sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial  condition of any Borrower, any Subsidiaries of the Borrowers or Affiliates or any other Person  obligated in respect of any Loan Document or (iv) the performance or observance by any  Borrower, any Subsidiaries of the Borrowers or Affiliates or any other Person of any of their  respective obligations under any Loan Document.  Assignee.  The Assignee (a) represents and warrants that (i) it has full power and  authority, and has taken all action necessary, to execute and deliver this Assignment and  Assumption and to consummate the transactions contemplated hereby and to become a Lender  under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit  Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and  become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the  Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the  obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together  with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as  applicable, and such other documents and information as it has deemed appropriate to make its  own credit analysis and decision to enter into this Assignment and Assumption and to purchase  the Assigned Interest on the basis of which it has made such analysis and decision independently  and without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign  Lender, attached to the Assignment and Assumption is any documentation required to be delivered  by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee;  and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the  Assignor or any other Lender, and based on such documents and information as it shall deem  appropriate at the time, continue to make its own credit decisions in taking or not taking action  under the Loan Documents, and (ii) it will perform in accordance with their terms all of the  obligations which by the terms of the Loan Documents are required to be performed by it as a  Lender. 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.  General Provisions.  This Assignment and Assumption shall be binding upon, and inure to  the benefit of, the parties hereto and their respective successors and assigns.  This Assignment and  Assumption may be executed in any number of counterparts, which together shall constitute one  instrument.  Acceptance of the terms of this Assignment and Assumption by the Assignee and the  Assignor by Electronic Signature or delivery of an executed counterpart of a signature page of this  Assignment and Assumption by any Electronic System shall be effective as delivery of a manually  executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall  be governed by, and construed in accordance with the internal laws (and not the law of conflicts)  of the State of Ohio, but giving effect to federal laws applicable to national banks.  

 

EXHIBIT B  [FORM OF] BORROWING BASE CERTIFICATE  [See attached]  

 

1 2 Ineligible CC A/R per Attached 3 4 Advance Rate 5 6 Gross Inventory as of: 7 Ineligible Inventory as of: 8 Net Eligible Inventory 9 Advance Rate (per appraisal tab) 10 11 Aggregate Inventory Sub-limit 12 13 Gross Inventory as of: 14 Ineligible Inventory as of: 15 Net Eligible Inventory 16 Advance Rate (per appraisal tab) 17 18 Aggregate Inventory Sub-limit 19 20 Total Gross Inventory 21 Total Ineligible Inventory 22 23 Combined Inventory Availability before Aggregate Sublimit 24 Inventory Sub limit on Aggregate Inventory Availability 25 26 27 Less Gift Cards (50%) 28 Less Merchandise Credits (50%) 29 Less Customer Deposits (100%) 30 Less Accrued Freight 31 Less Landlord Lien (PA, VA, WA) 32 Less 3PL Reserve 33 Less TX Property Tax 34 Less TX Sales Tax 35 Less Returns Reserve  36 Less Warehouse Rent 37 Less Synthetic Lease 38 Less Other Reserve 39 Less Other Reserve 40 41 Revolver Limit 42 43 Revolver Loan Balance Per Previous Certificate 44 Net Collections Since Last Certificate 45 Advances 46 Misc. Loan Adjustment 47 48 Outstanding Letters of Credit - PNC 49 Outstanding Letters of Credit - US Bank 50 Other Reserve 51 Other Reserve 52 Other Reserve 53 54 Revolver Loans & Reserves  55 Term Loans (if included in Revolver Limit) 56 57 58 Remaining Revolver Availability 59 Remaining Line Availability The undersigned hereby represents and warrants that (i) the information set forth above and the supporting documentation delivered in connection herewith are true and correct and subject to all conditions  of the Agreement (as amended, restated, supplemented or otherwise modified and in effect from time to time), (ii) no Default or Event of Default (as such terms are defined in the  Agreement)  has occurred and is continuing, and (iii) all Taxes (as defined in the  Agreement) are being paid within stated terms or when due. 

 

EXHIBIT C  [FORM OF] BORROWING REQUEST  BIG LOTS, INC.  Borrowing Request Date:  PNC Bank, National Association  PNC Business Credit  7121 Fairway Drive  Palm Beach Gardens, FL 33418-3766  Attention: Paul Starman  Email: paul.starman@pnc.com  Ladies and Gentlemen:  This Borrowing Request is furnished pursuant to Section 2.03 of that certain Credit Agreement  dated as of September 21, 2022 (as amended, restated, supplemented, modified, renewed or  extended from time to time, the “Credit Agreement”) among (i) Big Lots, Inc. and each Subsidiary  Borrower from time to time party thereto (each a “Borrower” and collectively, the “Borrowers”),  (ii) the other Loan Parties from time to time party thereto, (iii) the Lenders from time to time party thereto, and (iv) PNC Bank, National Association as Administrative Agent.  Unless otherwise defined herein, capitalized terms used in this Borrowing Request have the meanings ascribed thereto in the Credit Agreement.  The Borrower represents that, as of this date, the conditions precedent set forth in Section 4.018 or 4.02 (as applicable) of the Credit Agreement are satisfied. The Borrower Representative hereby notifies the Administrative Agent of its request for the  following Borrowing:  1. On (a Business Day) __________________ 2. On behalf of ________________ 3. In the following Currency9, for the following amount and of the following Type: Revolving Loans in U.S. Dollars bearing interest based on the Term SOFR Rate with an Interest Period of [one][three][six] months in the amount of $[________]. Revolving Loans in U.S. Dollars bearing interest based on the Alternate Base Rate in the amount of $[________]. 8 To be added for any Borrowings to be made on the Closing Date.  9 If an Alternative Currency has been approved by the Administrative Agent and all of the Lenders, this form of  Borrowing Request will need to be updated accordingly.  

 

Swingline Borrowings in U.S. Dollars bearing interest based on Daily Simple SOFR in the amount of $[________]. Revolving Loans in Euros bearing interest based on Daily Simple RFR in the amount of [________] Euros.10 Revolving Loans in Euros bearing interest based on Term RFR with an Interest Period of [one][three][six] months in the amount of [________] Euros. Revolving Loans in Canadian Dollars bearing interest based on the Eurocurrency Rate with an Interest Period of [one][three][six] months in the amount of [________] Canadian Dollars. 4. The Borrowing shall be directed to the account(s) set forth in Exhibit A attached hereto.  10 Only available prior to the Term RFR Transition Date.  

 

[Signature Page to Borrowing Request]   BIG LOTS, INC.  By: Name:    Title:     

 

EXHIBIT A  WIRE BREAKDOWN  [See Attached] 

 

EXHIBIT D  [FORM OF] COMPLIANCE CERTIFICATE11 [_________ __], 20[__]  To: The Administrative Agent and Lenders party to the Credit Agreement described below  This Compliance Certificate is furnished pursuant to that certain Credit Agreement dated  as of September 21, 2022 (as amended, modified, renewed or extended from time to time, the  “Credit Agreement”) among (i) Big Lots, Inc. and each Subsidiary Borrower from time to time  party thereto (each a “Borrower” and collectively, the “Borrowers”), (ii) the other Loan Parties  from time to time party thereto, (iii) the Lenders from time to time party thereto and (iv) PNC  Bank, National Association, as Administrative Agent. Unless otherwise defined herein, capitalized  terms used in this Compliance Certificate have the meanings ascribed thereto in the Credit  Agreement.  The undersigned hereby certifies, on his/her behalf as an officer of the Borrower  Representative and not in his/her individual capacity, and on behalf of the Loan Parties, that: 1. I am the duly elected [_____________]12 of the Borrower Representative; [2. The financial statements of the Company and its Subsidiaries delivered concurrently herewith for the quarterly accounting period ending on [______] [_], 20[_] present fairly in all material respects the financial condition and results of operations of the Company and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP, consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;]13 [2./3.] I have no knowledge of, in each case except as set forth on Schedule I attached  hereto, (i) the occurrence of any Default during or at the end of the accounting period covered by  the financial statements delivered concurrently herewith or as of the date of this Compliance  Certificate or (ii) any change in GAAP or in the application thereof that has occurred since the  date of the audited financial statements referred to in Section 3.06 of the Credit Agreement;  [3./4.] Except as set forth on Schedule II attached hereto, since the later of the Closing  Date and the date of the last Compliance Certificate, no Loan Party has (i) changed its name as it  appears in official filings in the state or province of incorporation or organization, (ii) changed its  chief executive office, (iii) changed the type of entity that it is, (iv) changed its organization  identification number, if any, issued by its state or province of incorporation or other organization,  or  (v) changed its state of incorporation or organization; and 11 This form of Compliance Certificate has been prepared for convenience only, and is not to affect, or to be taken into  consideration in interpreting, the terms of the Credit Agreement referred to below.  The obligations of the Loan Parties  under the Credit Agreement are as set forth in the Credit Agreement, and nothing in this form of Compliance  Certificate shall modify such obligations or constitute a waiver of compliance therewith in accordance with the terms  of the Credit Agreement.  In the event of any conflict between the terms of this form of Compliance Certificate and  the terms of the Credit Agreement, the terms of the Credit Agreement shall govern and control, and the terms of this  form of Compliance Certificate are to be modified accordingly.  12 To be completed by a Financial Officer.  13 For certificate accompanying quarterly financial statements only.   

 

[4./5.] [There has been no change in the list of Immaterial Subsidiaries since the later of the  Closing Date and the date of the last Compliance Certificate.][Schedule III attached hereto lists and  describes each Immaterial Subsidiary.]  Each of the Immaterial Subsidiaries qualifies as an Immaterial  Subsidiary and all such Subsidiaries in the aggregate do not exceed the limitation set forth in clause  (b) of the definition of the term “Immaterial Subsidiary” in the Credit Agreement.  [In regards to Subsidiaries which were previously Immaterial Subsidiaries and which no longer qualify as Immaterial Subsidiaries and are not otherwise Excluded Subsidiaries, the Borrower Representative certifies that it has or will take the actions required under Section 5.14(a) of the Credit Agreement to cause such Immaterial Subsidiary to be a Loan Party.] [5./6.] [Schedule [III/IV] attached hereto is a calculation of the Fixed Charge Coverage Ratio  for the four (4) quarter period ending on [______] [__], 20[_].]14 [[5./6./7.] Schedule [III/IV/V] attached hereto is an up-to-date report summarizing the  Loan Parties’ stores, offices and other places of business that have been (i) closed during the most  recently ended fiscal quarter and (ii) opened during the most recently ended fiscal quarter as required  by Section 5.02(o) of the Credit Agreement.]15 [Signature Page Follows]  14 To be included only during the continuance of a Covenant Compliance Event.  15 For certificate accompanying quarterly financial statements only.  

 

[Signature Page to Compliance Certificate]   The foregoing certifications are made and delivered as of the date first written above.  BIG LOTS, INC.  By: Name:    Title:      

 

SCHEDULE I  Defaults and Changes to GAAP  Described below are the exceptions, if any, to paragraph [2/3] by listing, in detail, the (i) nature of the  occurrence of any Default during or at the end of the accounting period covered by the attached  financial statements or as of the date of this Certificate and the action which the Borrowers have taken,  are taking, or propose to take with respect to the occurrence of such Default or (ii) the change in GAAP  or the application thereof and the effect of such change on the attached financial statements:  [ ] 

 

SCHEDULE II  Changes to Loan Parties  [ ] 

 

SCHEDULE III  Immaterial Subsidiaries  [ ] 

 

SCHEDULE III/IV16 Fixed Charge Coverage Ratio  Fixed Charge Coverage Ratio for the trailing four (4) fiscal quarters ending on [_______]  [__], 20[__] (the “period”)  (1) Consolidated EBITDA17  (a) Company’s consolidated net income on a Consolidated Basis: $______  (b)  (to the extent deducted from the calculation of the Company’s  consolidated net income for the period (without duplication)):   (i) depreciation: $_____   (ii) amortization: $_____   (iii) non-cash expenses related to stock based compensation: $_____   (iv) other non-cash charges, non-cash expenses, or non-cash losses  to net income (provided, however that cash payments made in  the period or in any future period in respect of such non-cash  charges, expenses or losses shall be subtracted from  consolidated net income in calculating Consolidated  EBITDA): $_____   (v) interest expense: $_____   (vi) income tax expense: $_____   (vii) restructuring charges or expenses (including integration costs,  restructuring costs and severance costs related to acquisitions  and to closure or consolidation of plants, facilities or locations  and any expense related to any reconstruction,  recommissioning or reconfiguration of fixed assets for  alternate use) incurred prior to September 21, 2022 not to  exceed $50,000,000 in the aggregate: $_____  (c) :   (i) non-cash credits or non-cash gains (to the extent included in  such calculation of consolidated net income), in each case  determined and consolidated for the Company and its  Restricted Subsidiaries in accordance with GAAP: $_____ 16 To be included only during the continuance of a Covenant Compliance Event.  17 Consolidated EBITDA to exclude the income (or deficit) of any Person (other than a Restricted Subsidiary) in  which the Company or any of its Restricted Subsidiaries has an ownership interest, except to the extent that any such  income is actually received by the Company or such Restricted Subsidiary in the form of dividends or similar  distributions.  

 

 (d) Consolidated EBITDA ((x) Line (1)(a)  (y) the  Lines  (1)(b)(i) through (vii)  (z) Line (1)(c)(i)):  $______ (2) Unfinanced Capital Expenditures (i.e., Capital Expenditures of the  Company and its Restricted Subsidiaries made in cash during the period,  except to the extent financed with the proceeds of Finance Lease  Obligations or other Indebtedness (other than Loans incurred under the  Credit Agreement), common Equity Interests or Disqualified Stock, or  casualty proceeds, condemnation proceeds, or other proceeds that would  not be included in Consolidated EBITDA, less cash received from the sale  of any fixed assets of the Company and its Restricted Subsidiaries  (including, without limitation, equipment) during the period (which  amount, in aggregate, may not be less than $0 for the period)): $_____ (3) the portion of taxes based on income actually paid in cash and provisions  for cash income taxes: $_____ (4) Fixed Charges for the period:   (a) all scheduled amortization payments paid or payable during the period  on all Indebtedness of the Company and its Restricted Subsidiaries  (including the principal component of all obligations in respect of all  Finance Lease Obligations): $_____  (b) consolidated cash Interest Expense of the Company and its Restricted  Subsidiaries for the period: $_____  (c)   Fixed Charges (the  of Lines (4)(a) and (4)(b)): $______ Fixed Charge Coverage Ratio:  (w) Numerator: (a) Line (1)(d)  (b) the  of Lines (2) and (3) $______  (x) Denominator: Line (4)(c) $______  (y) FCCR: Line (w)  Line (x) ____: 1.00   (z) Minimum Required: 1.00 : 1.00  

 

SCHEDULE [III/IV/V]  Real Estate Status Report  [ ] 

 

EXHIBIT E  [FORM OF] INTEREST ELECTION REQUEST  [__________ __], 20[__]  PNC Bank, National Association  PNC Business Credit  7121 Fairway Drive  Palm Beach Gardens, FL 33418-3766  Attention: Paul Starman  Email: paul.starman@pnc.com  Ladies and Gentlemen:  Reference is made to that certain Credit Agreement dated as of September 21, 2022 (as amended,  restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among  (i) Big Lots, Inc. and each Subsidiary Borrower from time to time party thereto (each a “Borrower”  and collectively, the “Borrowers”), (ii) the other Loan Parties party from time to time thereto, (iii)  the Lenders from time to time party thereto, and (iv) PNC Bank, National Association, as  Administrative Agent.  Capitalized terms used but not otherwise defined herein shall have the  meanings specified in the Credit Agreement.  This notice constitutes an Interest Election Request and the Borrower Representative hereby gives  you notice, pursuant to Section 2.08 of the Credit Agreement, that it requests the [conversion  to][renewal of] a Term Rate Loan Option under the Credit Agreement, and in connection therewith  the Borrower Representative specifies the following information with respect to such Borrowing  and each resulting Borrowing:  (1) This Interest Election Request is being made on behalf of the Borrowers.  (2) Existing Borrowing to which this Interest Election Request applies, 18, 19 20:   Revolving Loans in U.S. Dollars bearing interest based on Term SOFR with an  Interest Period of [one][three][six] months in the amount of $[________].    Revolving Loans in U.S. Dollars bearing interest based on the Alternate Base  Rate in the amount of $[________].    Revolving Loans in Euros bearing interest based on Term RFR with an Interest  Period of [one][three][six] months in the amount of [________] Euros.  18 If Term Rate Loan is converted other than on the last day of an Interest Period applicable thereto, Section 2.16  (Break Fund Payments) will apply.  19 If an Alternative Currency has been approved by the Administrative Agent and all of the Lenders, this form of  Interest Election Request will need to be updated accordingly.  20 No Loan denominated in any Currency may be converted into a Loan denominated in a different Currency, except  as otherwise expressly provided in the Credit Agreement.  

 

 Revolving Loans in Canadian Dollars bearing interest based on the Eurocurrency  Rate with an Interest Period of [one][three][six] months in the amount of [________]  Canadian Dollars.  (3) Multiple interest elections being made with respect hereto: [Yes][No]21 (4) Effective date of this election(s) (must be a Business Day): ________________ (5) Resulting Borrowing(s):    Revolving Loans in U.S. Dollars bearing interest based on Term SOFR with an  Interest Period of [one][three][six] months in the amount of $[________].    Revolving Loans in U.S. Dollars bearing interest based on the Alternate Base  Rate in the amount of $[________].    Revolving Loans in Euros bearing interest based on Term RFR with an Interest  Period of [one][three][six] months in the amount of [________] Euros.   Revolving Loans in Canadian Dollars bearing interest based on the  Eurocurrency Rate with an Interest Period of [one][three][six] months in the  amount of [________] Canadian Dollars.  [Signature Page Follows] 21 If multiple interest elections are being requested hereto, resulting Borrowings in line (5) below to specify such  multiple interest election requests.  

 

[Signature Page to Interest Election Request]  BIG LOTS, INC.  By:    Name:    Title:      

 

EXHIBIT F  [FORM OF] JOINDER AGREEMENT  THIS JOINDER AGREEMENT (this “Agreement”), dated as of [_______ __], 20[__], is  entered into between [__________], a [__________] (the “New Subsidiary”) and PNC Bank,  National Association, in its capacity as administrative agent (the “Administrative Agent”) under  that certain Credit Agreement dated as of September 21, 2022 (as the same may be amended,  restated, supplemented, modified, extended or restated from time to time, the “Credit Agreement”)  among (i) Big Lots, Inc. and each Subsidiary Borrower from time to time party thereto (each a  “Borrower” and collectively, the “Borrowers”), (ii) the other Loan Parties from time to time party  thereto, (iii) the Lenders from time to time party thereto and (iv) the Administrative Agent.  All  capitalized terms used herein and not otherwise defined herein shall have the meanings set forth  in the Credit Agreement or, if not defined in the Credit Agreement, then in the Security Agreement.  The New Subsidiary and the Administrative Agent, for the benefit of the Lenders, hereby  agree as follows:  1. The New Subsidiary hereby acknowledges, agrees and confirms that, by its execution  of this Agreement, the New Subsidiary will be deemed to be a Loan Party under the Credit Agreement  and shall have all of the obligations of a [Borrower][Guarantor] thereunder as if it had executed the  Credit Agreement.  The New Subsidiary hereby ratifies, as of the date hereof, and agrees to be bound  by, all of the applicable terms, provisions and conditions contained in the Credit Agreement, including  without limitation (a) all of the applicable representations and warranties of the Loan Parties set forth  in Article III of the Credit Agreement, (b) all of the applicable covenants set forth in Articles V and VI  of the Credit Agreement, and (c) all of the applicable guaranty obligations set forth in Article X of the  Credit Agreement.  Without limiting the generality of the foregoing terms of this paragraph 1, the New  Subsidiary, subject to the limitations set forth in Sections 10.10 and 10.13 of the Credit Agreement,  hereby guarantees, jointly and severally with the other Loan Parties, to the Administrative Agent and  the Lenders, as provided in Article X of the Credit Agreement, the prompt payment and performance  of the Guaranteed Obligations in full when due (whether at stated maturity, as a mandatory  prepayment, by acceleration or otherwise) strictly in accordance with the terms thereof and agrees that  if any of the Guaranteed Obligations are not paid or performed in full when due (whether at stated  maturity, as a mandatory prepayment, by acceleration or otherwise), the New Subsidiary will, jointly  and severally together with the other Loan Parties, promptly pay and perform the same, without any  demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of  any of the Guaranteed Obligations, the same will be promptly paid in full when due (whether at  extended maturity, as a mandatory prepayment, by acceleration or otherwise) in accordance with the  terms of such extension or renewal.  2. Effective as of the date of this Agreement:  a. The New Subsidiary hereby:  i. acknowledges and agrees that it has received and reviewed a copy of  the Credit Agreement, the Security Agreement, and each of the other Loan Documents;  

 

ii. in addition to joining in the execution of, and becoming a party to the  Credit Agreement, joins in the execution of, and becomes a party to the Security Agreement, the  Intercompany Subordination Agreement, and each of the other Loan Documents to which the  [Borrowers][Guarantors] are party (and in the same capacities and to the same extent as the  [Borrowers][Guarantors]); and  iii. assumes and agrees to perform all applicable duties and Obligations of  a [Borrower][Guarantor] and Loan Party under the Credit Agreement, the Security Agreement, and  each of the other Loan Documents to which the [Borrowers][Guarantors] are a party.  b. Without in any manner limiting the generality of clause (a) above, the New  Subsidiary hereby covenants and agrees that to secure the prompt and complete payment, performance  and observance of all of the Secured Obligations, and in accordance with the Security Agreement, the  New Subsidiary hereby pledges and grants to the Administrative Agent for the benefit of the Secured  Parties, a continuing security interest in, all of the rights, title and interest in personal property of the  New Subsidiary, wherever located and whether now or hereafter existing and whether now owned or  hereafter acquired, of every kind and description, tangible or intangible, specifically limited to and  solely to the extent as follows: (a) all Accounts (including all Credit Card Accounts); (b) all Inventory;  (c) all Deposit Accounts, Commodity Accounts, and Securities Accounts, and all cash and all other  property from time to time deposited therein or otherwise credited thereto, and all lockboxes associated  with any of the foregoing and the monies and property in the possession or under the control of the  Agent or any Lender; (d) all of the following, solely to the extent arising from the Specified Collateral  (as defined in the Security Agreement): (i) all Chattel Paper (whether tangible or electronic); (ii) the  Commercial Tort Claims, including, without limitation, those specified on Schedule IV to the Security  Agreement (as supplemented pursuant to Schedule A hereof); (iii) all Documents; (iv) all General  Intangibles (including, without limitation, all Payment Intangibles but excluding Intellectual Property)  (v) all Instruments (including, without limitation, Promissory Notes) and Goods (but excluding  Equipment and Fixtures) (vi) all Investment Property (vii) all Letter-of-Credit Rights (viii) all  Supporting Obligations (ix) all other tangible and intangible personal property of the New Subsidiary  arising from, or related to, the foregoing (whether or not subject to the UCC), including, without  limitation, all bank and other accounts and all cash and all investments therein, all proceeds, products,  offspring, accessions, rents, profits, income, benefits, substitutions and replacements of and to any of  the property of the New Subsidiary described in the preceding clauses of this sentence (including,  without limitation, any proceeds of insurance thereon and all causes of action, claims and warranties  now or hereafter held by the New Subsidiary in respect of any of the items listed above), and all books,  correspondence, files and other Records arising from, or related to, the foregoing, including, without  limitation, all tapes, disks, cards, Software, data and computer programs in the possession or under the  control of the New Subsidiary or any other Person from time to time acting for the New Subsidiary  that at any time evidence or contain information relating to any of the property described in the  preceding clauses of this sentence or are otherwise necessary or helpful in the collection or realization  thereof; and (x) all Proceeds arising from the foregoing, including all Cash Proceeds and Noncash  Proceeds, and products of any and all of the foregoing Collateral; in each case howsoever the New  Subsidiary’s interest therein may arise or appear (whether by ownership, security interest, claim or  otherwise).  Notwithstanding anything herein to the contrary, the Collateral shall not include, and the  New Subsidiary is not pledging, nor granting a security interest hereunder in, any Excluded Assets.   The New Subsidiary hereby authorizes the Administrative Agent and/or its representatives to file such  

 

UCC financing statements necessary or advisable to perfect the security interest granted in this  paragraph by the New Subsidiary in accordance with the Security Agreement.   3. To the extent that any changes in any representations, warranties, and covenants (other  than representations, warranties, and covenants that relate solely to an earlier date) require any  amendments to the Schedules to the Credit Agreement or any of the other Loan Documents to reflect  the joinder of the New Subsidiary, such Schedules are hereby amended or supplemented as set forth  in the Schedules annexed to this Agreement at Schedule A.  4. If required, the New Subsidiary is, simultaneously with the execution of this  Agreement, executing and delivering such Collateral Documents (and such other documents and  instruments) as requested by the Administrative Agent in accordance with the Credit Agreement.  5. 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.  Delivery of an executed counterpart of a signature page of this  Agreement by telecopy, emailed pdf or any other electronic means that reproduces an image of the  actual executed signature page shall be effective as delivery of a manually executed counterpart of this  Agreement.  6. This Agreement is a “Loan Document”.  Any provision of this Agreement held to be  invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the  extent of such invalidity, illegality or unenforceability without affecting the validity, legality and  enforceability of the remaining provisions thereof; and the invalidity of a particular provision in a  particular jurisdiction shall not invalidate such provision in any other jurisdiction.  7. This Agreement shall be governed by and construed in accordance with the internal  laws (and not the law of conflicts) of the State of Ohio, but giving effect to federal laws applicable to  national banks.  [Signature Page Follows]  

 

[Signature Page to Joinder Agreement]  IN WITNESS WHEREOF, the New Subsidiary has caused this Agreement to be duly  executed by its authorized officer, and the Administrative Agent, for the benefit of the Lenders,  has caused the same to be accepted by its authorized officer, as of the day and year first above  written.  [NEW SUBSIDIARY]  By: Name:    Title:      Acknowledged and accepted:  PNC BANK, NATIONAL  ASSOCIATION, as Administrative Agent  By:    Name:    Title:      

 

Schedule A [See attached]22 22 Amendments or supplements to Schedules (if any).  

 

EXHIBIT G-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 Credit Agreement dated as of September 21, 2022 (as  amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among  Big Lots, Inc. and certain of its subsidiaries from time to time party thereto (collectively, the “Borrowers”),  the other Loan Parties from time to time party thereto, the Lenders from time to time party thereto, and  PNC Bank, National Association, in its capacity as Administrative Agent.  Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies  that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any note(s) evidencing such  Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of  Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of any Borrower within the  meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to  any Borrower as described in Section 881(c)(3)(C) of the Code.  The undersigned has furnished the Administrative Agent and the Borrower Representative with a  certificate of its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E, as applicable.  By executing  this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the  undersigned shall promptly so inform the Borrower Representative and the Administrative Agent, and  (2) the undersigned shall have at all times furnished the Borrower Representative and the Administrative  Agent with a properly completed and currently effective certificate in either the calendar year in which each  payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.  Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have  the meanings given to them in the Credit Agreement.  [NAME OF LENDER]  By:   Name:  Title: Date: [__________ __], 20[__] 

 

EXHIBIT G-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 Credit Agreement dated as of September 21, 2022 (as  amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among  Big Lots, Inc. and certain of its subsidiaries from time to time party thereto (collectively, the “Borrowers”),  the other Loan Parties from time to time party thereto, the Lenders from time to time party thereto, and  PNC Bank, National Association, in its capacity as Administrative Agent.  Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies  that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this  certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten  percent shareholder of any Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (iv) it is  not a controlled foreign corporation related to any Borrower as described in Section 881(c)(3)(C) of the  Code. The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person  status on IRS Form W-8BEN or W-8BEN-E, as applicable.  By executing this certificate, the undersigned  agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so  inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with  a properly completed and currently effective certificate in either the calendar year in which each payment  is to be made to the undersigned, or in either of the two calendar years preceding such payments.  Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have  the meanings given to them in the Credit Agreement.  [NAME OF PARTICIPANT]  By:   Name:  Title: Date: [__________ __], 20[__] 

 

EXHIBIT G-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 Credit Agreement dated as of September 21, 2022 (as  amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among  Big Lots, Inc. and certain of its subsidiaries from time to time party thereto (collectively, the “Borrowers”),  the other Loan Parties from time to time party thereto, the Lenders from time to time party thereto, and  PNC Bank, National Association, in its capacity as Administrative Agent.  Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies  that (i) it is the sole record owner of the participation in respect of which it is providing this certificate,  (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with  respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a  bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or  business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect  partners/members is a ten percent shareholder of any Borrower within the meaning of Section 871(h)(3)(B)  of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related  to any Borrower as described in Section 881(c)(3)(C) of the Code.  The undersigned has furnished its participating Lender with 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 W-8BEN-E, as applicable or (ii) an IRS Form W-8IMY  accompanied by an IRS Form W-8BEN or W-8BEN-E, as applicable 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, the undersigned shall  promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with  a properly completed and currently effective certificate in either the calendar year in which each payment  is to be made to the undersigned, or in either of the two calendar years preceding such payments.  Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have  the meanings given to them in the Credit Agreement.  [NAME OF PARTICIPANT]  By:   Name:  Title: Date: [__________ __], 20[__]  

 

EXHIBIT G-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 Credit Agreement dated as of September 21, 2022 (as  amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among  Big Lots, Inc. and certain of its subsidiaries from time to time party thereto (collectively, the “Borrowers”),  the other Loan Parties from time to time party thereto, the Lenders from time to time party thereto, and  PNC Bank, National Association, in its capacity as Administrative Agent.  Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies  that (i) it is the sole record owner of the Loan(s) (as well as any note(s) evidencing such Loan(s)) in respect  of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial  owners of such Loan(s) (as well as any note(s) evidencing such Loan(s)), (iii) with respect to the extension  of credit pursuant to the Credit Agreement or any other Loan Document, neither the undersigned nor any  of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered  into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code,  (iv) none of its direct or indirect partners/members is a ten percent shareholder of any Borrower within the  meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a  controlled foreign corporation related to any Borrower as described in Section 881(c)(3)(C) of the Code.  The undersigned has furnished the Administrative Agent and the Borrower Representative with  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 W-8BEN-E, as applicable or (ii) an  IRS Form W-8IMY accompanied by an IRS Form W-8BEN or W-8BEN-E, as applicable 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, the  undersigned shall promptly so inform the Borrower Representative and the Administrative Agent, and  (2) the undersigned shall have at all times furnished the Borrower Representative and the Administrative  Agent with a properly completed and currently effective certificate in either the calendar year in which each  payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.  Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have  the meanings given to them in the Credit Agreement.  [NAME OF LENDER]  By:   Name:  Title: Date: [__________ __], 20[__]ex102fourthamendmenttoav

CHAR1\1917164v13  FOURTH AMENDMENT TO CERTAIN OPERATIVE AGREEMENTS  THIS FOURTH AMENDMENT TO CERTAIN OPERATIVE AGREEMENTS (this  “Amendment”) dated as of September 21, 2022 is by and among AVDC, LLC (formerly, AVDC, Inc.), an  Ohio limited liability company (the “Construction Agent” or “Lessee”); the various entities which are  parties to the Participation Agreement (hereinafter defined) from time to time as guarantors (individually,  a “Guarantor” and collectively, the “Guarantors”); WACHOVIA SERVICE CORPORATION, a Delaware  corporation (the “Lessor”); the various banks and other lending institutions which are parties to the  Participation Agreement from time to time as lease participants (individually, a “Lease Participant” and  collectively, the “Lease Participants”); and WELLS FARGO BANK, NATIONAL ASSOCIATION, a  national banking association, as the agent for the Lessor Parties and, respecting the Security Documents, as  the agent for the Secured Parties (in such capacity, the “Agent”).  W I T N E S S E T H  WHEREAS, the Lessee, the Guarantors party thereto, the Lessor, the Lease Participants party  thereto and the Agent are party to that certain Participation Agreement dated as of November 30, 2017, as  amended by that certain First Amendment to Certain Operative Agreements dated as of August 31, 2018,  as further amended by that certain Second Amendment to Certain Operative Agreements dated as of  August 2, 2019, as further amended by that certain Third Amendment to Certain Operative Agreements  dated as of September 22, 2021, and subject to that certain Letter Agreement dated July 27, 2022 (as  amended, modified, extended, supplemented, restated and/or replaced from time to time, the “Participation  Agreement”);  WHEREAS, various of the parties to this Amendment are parties to certain other Operative  Agreements, other than the Participation Agreement;  WHEREAS, the Lessee has requested that the Lessor Parties and the Agent approve certain  amendments and modifications to the Participation Agreement and the other Operative Agreements; and  WHEREAS, the Lessor Parties and the Agent have approved the amendments and modifications  to the Participation Agreement and the other Operative Agreements requested by the Lessee on the terms  and conditions set forth herein.  NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable  consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as  follows:  1. Defined Terms.  Capitalized terms used herein but not otherwise defined herein shall have  the meanings provided to such terms in Appendix A to the Participation Agreement.  2. Amendments to Participation Agreement and Lease.  Subject to the satisfaction of the  condition set forth in Section 3:  (a) the Participation Agreement, the Exhibits thereto, the Schedules thereto and  Appendix A thereto are hereby amended in their entirety and replaced by Exhibit A hereto, the  Exhibits thereto, the Schedules thereto and Appendix A thereto, and all Advances thereunder  accruing interest based on the London interbank offered rate shall begin to accrue interest based on  the Adjusted Term SOFR Rate for the first Lessor Yield Period which begins immediately  following the date hereof; and   

 

2  CHAR1\1917164v13 (b) the Lease is hereby amended by:  (i) deleting Section 2.2 thereto and replacing such section with the following:  “2.2 Lease Term.  The basic term of this Lease with respect to the Property (the  “Basic Term”) shall begin upon the Property Closing Date (the  “Commencement Date”) and shall end on June 1, 2023 (the “Basic Term  Expiration Date”), unless the Basic Term is earlier terminated in  accordance with the provisions of this Lease and the other Operative  Agreements.  Notwithstanding the foregoing, Lessee shall not be obligated  to pay Basic Rent until the Rent Commencement Date.”;  (ii) deleting the parenthetical phrase from the first sentence of Section 3.4  thereto and replacing such phrase with “(except to the extent Basic Rent is then being  calculated based on the Adjusted Term SOFR Rate and such next succeeding Business Day  falls in the next succeeding calendar month, then on the next preceding Business Day)”;  and  (ii) deleting Section 17.1(c) and replacing such section with the following:  “(c) Any Credit Party shall default in the observance or performance  of any covenant, acknowledgement or agreement contained in Article XIV of this Lease  (other than the requirement to deliver annual certificates), Sections 8.3A(c), 8.3A(f), 8.3B  or the third paragraph of Section 12.4 of the Participation Agreement;”;  (iii) (A) deleting the reference to “Revolving Credit Agreement” contained  therein and replacing it with a reference to “ABL Credit Agreement”, (B) deleting the  reference to “Revolving Credit Agreement Permitted Lien” contained therein and replacing  it with a reference to “Additional Permitted Lien”, and (C) deleting the references to  “Revolving Credit Agreement US Borrowers” contained therein and replacing them with  references to “ABL Credit Agreement Loan Parties”; and  (iv) deleting Section 20.1 thereto and replacing such section with the  following:   “20.1 Purchase Option or Sale Option- General Provisions.  Not less than 210 days prior to the Expiration Date (or, respecting  the Purchase Option only with respect to a purchase by Lessee (or its  designee) prior to the Expiration Date, not less than 30 days prior to the  applicable Payment Date or such later date prior to the applicable Payment  Date as agreed by Lessor) (such Expiration Date or, respecting the  Purchase Option only, any such applicable Payment Date being hereinafter  referred to as the “Election Date”), Lessee may give Lessor irrevocable  written notice (the “Election Notice”) that Lessee is electing to exercise  either (a) (i) in the case of the Expiration Date, the option for Lessee (or  any designee of Lessee) to purchase the Property on the Expiration Date  or (ii) in the case of any Payment Date, the option for Lessee (or any  designee of Lessee), subject to Section 5.13 of the Participation  

 

3  CHAR1\1917164v13 Agreement, to purchase the Property on the applicable Payment Date (each  of (a)(i) and (ii), the “Purchase Option”) or (b) with respect to an Election  Notice given in connection with the Expiration Date only, the option to  remarket the Property to a Person other than Lessee or any Affiliate of  Lessee and cause a sale of the Property to occur on the Expiration Date  pursuant to the terms of Section 21.1 (the “Sale Option”).  If Lessee does  not give an Election Notice indicating the Purchase Option or the Sale  Option at least 210 days prior to the Expiration Date, then Lessee shall be  deemed to have elected for the Purchase Option to apply, and for the  purchase of the Property to occur, on the Expiration Date.  If Lessee shall  elect (or be deemed to have elected) to exercise the Purchase Option then  Lessee shall pay, or cause to be paid, to Lessor on the date on which such  purchase is scheduled to occur an amount equal to the Termination Value  for the Property and, upon receipt of such amounts and satisfaction of such  obligations, Lessor shall transfer to Lessee (or any designee of Lessee) all  of Lessor’s right, title and interest in and to the Property in accordance  with Section 20.2.  The designation of another Person to purchase the Property on behalf of  Lessee pursuant to the Purchase Option shall be subject to the provisions  of the second sentence of the first paragraph of Section 20.2.”  3. Conditions Precedent.  The provisions of Section 2 of this Amendment shall not become  effective until the Agent shall have received the following items, each in form and substance acceptable to  the Agent and its counsel:  (a) this Amendment, duly executed by the Lessee, the Construction Agent, each  Guarantor and the Majority Secured Parties;  (b) the Intercompany Subordination Agreement, duly executed by the Credit Parties;  (c) payment by the Credit Parties of all fees and expenses owed to the Agent and its  counsel in connection with this Amendment;  (d) written or oral confirmation or other evidence regarding the prior or concurrent  effectiveness of that certain Credit Agreement dated as of or about the date hereof by and among  the Parent, BLS, the other ABL Credit Agreement Loan Parties party thereto, the ABL Credit  Agreement Banks party thereto and the ABL Credit Agreement Administrative Agent; and  (e) such other documents as may be reasonably requested by the Agent.  4. Post-Closing Amendment Fee.  If on or prior to the date ninety (90) days immediately  following the date of this Amendment (the “Amendment Fee Payment Date”) the Lessee has not (a)  exercised the Purchase Option, (b) purchased the Property or caused the Property to be purchased by a  designee of the Lessee pursuant to the Purchase Option (in either case, by payment of the Termination  Value to the Agent and otherwise in accordance with Article XX of the Lease) and (c) satisfied (or caused  to be satisfied) all other obligations of the Credit Parties pursuant to the Operative Agreements as of such  purchase date, then on the Amendment Fee Payment Date the Lessee shall pay an amendment fee for the  ratable benefit of the Lessor Parties (which fee shall be paid to the Agent for subsequent distribution to such  parties) in an amount equal to 0.05% (5 basis points) of the outstanding Lessor Advances as of the effective  date of this Amendment.  

 

4  CHAR1\1917164v13 5. Amendment is an “Operative Agreement”.  This Amendment is an Operative Agreement  and all references to an “Operative Agreement” in the Participation Agreement and the other Operative  Agreements (including, without limitation, all such references in the representations and warranties in the  Participation Agreement (as amended by this Amendment) and the other Operative Agreements) shall be  deemed to include this Amendment.  6. Reaffirmation of Representations and Warranties.  Each Credit Party represents and  warrants as of the effective date of this Amendment that (a) each of the representations and warranties set  forth in the Operative Agreements as amended by this Amendment are true and correct in all material  respects as of the effective date of this Amendment (except representations and warranties which (x)  expressly relate solely to an earlier date or time, in which case such representations and warranties were  true and correct as of such earlier date or time or (y) are qualified by materiality or references to Material  Adverse Effect, in which case such representations and warranties shall be true and correct in all respects  as of the effective date of this Amendment) and (b) both before and immediately following the  consummation of the transactions contemplated by this Amendment, no Lease Default or Lease Event of  Default has occurred and is continuing.  7. Reaffirmation of Obligations.  Each Credit Party (a) acknowledges and consents to all of  the terms and conditions of this Amendment, (b) affirms all of its obligations, including, without limitation,  all applicable guaranty obligations, under the Operative Agreements and (c) agrees that this Amendment  and all documents executed in connection herewith do not operate to reduce or discharge such Credit Party’s  obligations under the Operative Agreements.  8. Additional Representations and Warranties.  Each Credit Party hereby represents and  warrants to the Lessor Parties and the Agent that (a) it has the legal power and authority to execute and  deliver this Amendment, (b) the officer of such Credit Party executing this Amendment has been duly  authorized to execute and deliver the same and bind such Credit Party with respect to the provisions hereof,  (c) the execution and delivery hereof by the Credit Parties and the performance and observance by the  Credit Parties of the provisions hereof and of the Operative Agreements (as amended hereby), do not violate  or conflict with (i) the terms and conditions of the certificate or articles of incorporation, bylaws, certificate  of limited partnership, partnership agreement, certificate of formation, limited liability company agreement  or other organizational documents of any Credit Party or (ii) any material Law or any material agreement  or instrument or order, writ, judgment, injunction or decree to which any Credit Party is a party or by which  it is bound or to which it is subject, or result in the creation or enforcement of any Lien, charge or  encumbrance, whatsoever upon any property (now or hereafter acquired) of any Credit Party, and (d) this  Amendment and the documents executed or to be executed by any Credit Party in connection herewith or  therewith constitute valid and binding obligations of such Credit Party which is or will be a party thereto  on and after its date of delivery thereof, enforceable in accordance with their respective terms, except to the  extent that enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or  other similar Laws affecting the enforceability of creditors’ rights generally or limiting the right of specific  performance and general concepts of equity.  9. Reaffirmation of Security Interests.  Each Credit Party (a) affirms that each of the Liens  granted in or pursuant to the Operative Agreements are valid and subsisting and (b) agrees that this  Amendment shall in no manner impair or otherwise adversely affect any of the Liens granted in or pursuant  to the Operative Agreements.  10. No Other Changes.  Except as modified by this Amendment, all of the terms and provisions  of the Operative Agreements shall remain in full force and effect.  The execution, delivery and performance  of this Amendment shall not constitute a waiver of any provision of, or operate as a waiver of any right,  power or remedy of any Financing Party under any of the Operative Agreements.    

 

5  CHAR1\1917164v13 11. Counterparts; Delivery.  This Amendment may be executed in any number of counterparts,  each of which when so executed and delivered shall be an original, but all of which shall constitute one and  the same instrument.  It shall not be necessary in making proof of this Amendment to produce or account  for more than one such counterpart for each of the parties hereto. Delivery by facsimile or other electronic  imaging means by any of the parties hereto of an executed counterpart of this Amendment shall be as  effective as an original executed counterpart hereof and shall be deemed a representation that an original  executed counterpart hereof will be delivered.  12. Governing Law.  This Amendment shall be a contract under the internal Laws of the State  of New York and for all purposes shall be construed in accordance with the internal Laws of the State of  New York without giving effect to its principles of conflict of laws, except to the extent that local law is  properly applicable for matters of real property.  [Signature Pages Follow]  

 

  FOURTH AMENDMENT TO CERTAIN OPERATIVE AGREEMENTS  BIG LOTS  CHAR1\1917164    IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment  to be duly executed and delivered as of the date first above written.      CONSTRUCTION AGENT AND LESSEE:    AVDC, LLC (formerly, AVDC, Inc.), as the  Construction Agent and the Lessee      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer             (signature pages continue)       

 

  FOURTH AMENDMENT TO CERTAIN OPERATIVE AGREEMENTS  BIG LOTS  CHAR1\1917164    GUARANTORS:    BIG LOTS STORES, LLC (formerly, Big Lots Stores,  Inc.), as a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer      BIG LOTS, INC., as a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer      BIG LOTS ECOMMERCE LLC, as a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer      BIG LOTS F&S, LLC (formerly, Big Lots F&S, Inc.), as  a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer      BIG LOTS MANAGEMENT, LLC (formerly, BLHQ  LLC), as a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer    (signature pages continue)     

 

  FOURTH AMENDMENT TO CERTAIN OPERATIVE AGREEMENTS  BIG LOTS  CHAR1\1917164    BROYHILL, LLC, as a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer      CLOSEOUT DISTRIBUTION, LLC (formerly,  Closeout Distribution, Inc.), as a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer      CONSOLIDATED PROPERTY HOLDINGS, INC., as  a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: President      CSC DISTRIBUTION LLC (formerly, CSC  Distribution, Inc.), as a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer      BIG LOTS STORES – CSR, LLC (formerly, C.S. Ross  Company), as a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer    (signature pages continue)     

 

  FOURTH AMENDMENT TO CERTAIN OPERATIVE AGREEMENTS  BIG LOTS  CHAR1\1917164    DURANT DC, LLC, as a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer      GAFDC LLC, as a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer        GREAT BASIN LLC, as a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer        PAFDC LLC, as a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer        BIG LOTS STORES – PNS, LLC (formerly, PNS  Stores, Inc.), as a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer        (signature pages continue)  

 

  FOURTH AMENDMENT TO CERTAIN OPERATIVE AGREEMENTS  BIG LOTS  CHAR1\1917164    WAFDC, LLC, as a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer        INFDC, LLC, as a Guarantor      By: /s/ Jonathan E. Ramsden     Name: Jonathan E. Ramsden      Title: Executive Vice President, Chief Financial and   Administrative Officer        (signature pages continue)         

 

  FOURTH AMENDMENT TO CERTAIN OPERATIVE AGREEMENTS  BIG LOTS  CHAR1\1917164    LESSOR PARTIES:    WACHOVIA SERVICE CORPORATION, as the  Lessor      By: /s/ John G McGowan     Name: John G McGowan      Title: Vice President           (signature pages continue)       

 

  FOURTH AMENDMENT TO CERTAIN OPERATIVE AGREEMENTS  BIG LOTS  CHAR1\1917164      BANKERS COMMERCIAL CORPORATION, as a  Lease Participant      By: /s/ Manuel Gonzalez     Name: Manuel Gonzalez  Title: Vice President      (signature pages continue)       

 

  FOURTH AMENDMENT TO CERTAIN OPERATIVE AGREEMENTS  BIG LOTS  CHAR1\1917164      PNC BANK, NATIONAL ASSOCIATION (successor- by-merger to PNC Equipment Finance, LLC), as a Lease  Participant      By: /s/ Craig A Zimmerman     Name: Craig A Zimmerman      Title: Senior Vice President          (signature pages continue)         

 

  FOURTH AMENDMENT TO CERTAIN OPERATIVE AGREEMENTS  BIG LOTS  CHAR1\1917164    AGENT:    WELLS FARGO BANK, NATIONAL ASSOCIATION,  as the Agent      By: /s/ Andre Hester      Name: Andre Hester       Title: Director            (signature pages end)    

 

CHAR1\1917164v13  EXHIBIT A  PARTICIPATION AGREEMENT  Dated as of November 30, 2017  among  AVDC, LLC (formerly, AVDC, Inc.),  as the Construction Agent and the Lessee,  THE VARIOUS ENTITIES WHICH ARE PARTIES HERETO FROM TIME TO TIME,  as the Guarantors,  WACHOVIA SERVICE CORPORATION,  as the Lessor,  THE VARIOUS BANKS AND OTHER LENDING INSTITUTIONS  WHICH ARE PARTIES HERETO FROM TIME TO TIME,  as the Lease Participants,  and  WELLS FARGO BANK, NATIONAL ASSOCIATION,  as the Agent  

 

i  CHAR1\1917164v13 TABLE OF CONTENTS  Page  SECTION 1. THE FINANCING. ................................................................................................................. 1 1.1 General ................................................................................................................................ 1 1.2 Absolute and True Sale; No Fiduciary Duty of the Lessor ................................................. 2 SECTION 2. [Reserved]. .............................................................................................................................. 2 SECTION 3. SUMMARY OF TRANSACTIONS. ...................................................................................... 2 3.1 Operative Agreements ........................................................................................................ 2 3.2 Property Purchase ............................................................................................................... 3 3.3 Construction of Improvements; Commencement of Basic Rent......................................... 3 3.4 Title to the Property ............................................................................................................ 3 SECTION 4. THE CLOSINGS. ................................................................................................................... 3 4.1 Initial Closing Date ............................................................................................................. 3 4.2 Initial Closing Date; Property Closing Date; Acquisition Advances;  Construction Advances ....................................................................................................... 3 SECTION 5. FUNDING OF LESSOR ADVANCES; CONDITIONS PRECEDENT;  REPORTING REQUIREMENTS ON COMPLETION DATE; THE LESSEE’S  DELIVERY OF NOTICES; RESTRICTIONS ON LIENS. ........................................................... 4 5.1 General ................................................................................................................................ 4 5.2 Procedures for Funding ....................................................................................................... 5 5.3 Conditions Precedent for the Lessor Parties and the Agent Relating to the Initial  Closing Date and the Lessor Advances of Funds for the Acquisition of the  Property ............................................................................................................................... 7 5.4 Conditions Precedent for the Lessor Parties and the Agent Relating to the  Lessor Advances of Funds after the Acquisition Advance ............................................... 11 5.5 Additional Reporting and Delivery Requirements on Completion Date .......................... 12 5.6 Restrictions on Liens ........................................................................................................ 14 5.7 Payments ........................................................................................................................... 14 5.8 Unilateral Right to Increase the Lessor Parties Commitment ........................................... 15 5.9 Maintenance of the Lessee as a Wholly-Owned Entity .................................................... 15 5.10 Percentage Share ............................................................................................................... 15 5.11 Final Advance for Punch List Items ................................................................................. 15 5.12 Limitation on Requested Lessor Advances regarding Available Lessor Parties  Commitment ..................................................................................................................... 16 5.13 Limitation on Purchase Option under the Lease and the Agency Agreement .................. 16 5.14 Environmental Closure Reporting .................................................................................... 16 5.15 Final Certificate of Occupancy ......................................................................................... 17 5.16 Special Provision Regarding the Funding of Uninsured Force Majeure Losses............... 17 5.17 Construction Consultant ................................................................................................... 17 5.18 Off-Site Construction Costs .............................................................................................. 19 5.19 Notices from the Construction Agent/the Lessee ............................................................. 19 5.20 Ratable Reduction of Lessor Parties Commitments ......................................................... 19 SECTION 5A. LESSOR ADVANCE ........................................................................................................ 19 5A.1 Procedure for Lessor Advance. ......................................................................................... 19 5A.2 Computation of Lessor Yield; Payment Dates. ................................................................. 22 

 

ii  CHAR1\1917164v13 5A.3 Scheduled Return of Lessor Advance. .............................................................................. 23 5A.4 Early Return of Lessor Advances; Maturity Date Payment of Lessor Advances. ............ 23 5A.5 Lessor Yield Rates and Payment Dates. ........................................................................... 24 5A.6 Termination or Reduction of Lessor Parties Commitments. ............................................. 24 5A.7 Notice of Amounts Payable; Mandatory Assignment. ...................................................... 25 5A.8 Pro Rata Treatment and Payments. ................................................................................... 25 5A.9 Conversion and Continuation Options Respecting the Lessor Advances. ........................ 26 5A.10 Excess Yield. .................................................................................................................... 27 5A.11 Conversion and Continuation Options Respecting the Lessor Advances. ........................ 27 5A.12 Initial Benchmark Conforming Changes. ......................................................................... 28 5A.13 Illegality. ........................................................................................................................... 28 SECTION 6. REPRESENTATIONS AND WARRANTIES. .................................................................... 29 6.1 Representations and Warranties of Each Credit Party ...................................................... 29 6.1A Updates to Schedules ........................................................................................................ 39 6.2 Representations and Warranties of the Lessor Parties ...................................................... 39 SECTION 6B. GUARANTY ...................................................................................................................... 41 6B.1. Guaranty of Payment and Performance. ........................................................................... 41 6B.2 Obligations Unconditional. ............................................................................................... 41 6B.3 Modifications. ................................................................................................................... 42 6B.4 Waiver of Rights. .............................................................................................................. 43 6B.5 Reinstatement. ................................................................................................................... 43 6B.6 Remedies. .......................................................................................................................... 43 6B.7 Limitation of Guaranty. .................................................................................................... 43 6B.8 Payment of Amounts to the Agent. ................................................................................... 44 6B.9 Joinder of Guarantors. ....................................................................................................... 44 6B.10 Additional Waivers and Provisions. ................................................................................. 44 6B.11 Representations; Separateness. ......................................................................................... 45 SECTION 7. PAYMENT OF CERTAIN EXPENSES. ............................................................................. 45 7.1 Transaction Expenses ....................................................................................................... 45 7.2 Fee Calculation ................................................................................................................. 46 7.3 Certain Fees and Expenses................................................................................................ 46 7.4 Lessor Parties Unused Fee ................................................................................................ 46 7.5 Lessor Parties Upfront Fee................................................................................................ 47 7.6 Administrative Agency Fee .............................................................................................. 47 7.7 Structuring Fee .................................................................................................................. 47 SECTION 8. OTHER COVENANTS AND AGREEMENTS. .................................................................. 47 8.1 Cooperation with the Lessee ............................................................................................. 47 8.2 Covenants of the Lessor Parties ........................................................................................ 48 8.3 Credit Party Covenants, Consent and Acknowledgment .................................................. 48 8.3A Additional Credit Party Affirmative Covenants. .............................................................. 51 8.3B Additional Credit Party Negative Covenants. ................................................................... 53 8.3C Additional Credit Party Reporting Requirements. ............................................................ 60 8.4 Sharing of Certain Payments ............................................................................................ 64 8.5 Grant of Easements, Agreement regarding Restrictive Covenants, etc ............................ 64 8.6 The Agent ......................................................................................................................... 65 8.7 Collection and Allocation of Payments and Other Amounts ............................................ 67 8.8 Release of Property, etc .................................................................................................... 71 

 

iii  CHAR1\1917164v13 8.9 Sharing of Lessor Expenses After Rent Commencement Date ........................................ 71 SECTION 9. RIGHTS UNDER SECTION 5A OF THIS AGREEMENT. ............................................... 72 9.1 [Reserved] ......................................................................................................................... 72 9.2 [Reserved] ......................................................................................................................... 72 9.3 The Construction Agent’s and the Lessee’s Rights under Section 5A of this  Agreement ......................................................................................................................... 72 SECTION 10. TRANSFER OF INTEREST. ............................................................................................. 72 10.1 Restrictions on Transfer .................................................................................................... 72 10.2 Effect of Transfer .............................................................................................................. 74 10.3 Successor Agent ................................................................................................................ 74 10.4 Participations .................................................................................................................... 75 10.5 Assignments ...................................................................................................................... 75 10.6 The Register; Disclosure ................................................................................................... 77 SECTION 11. INDEMNIFICATION. ........................................................................................................ 78 11.1 General Indemnity ............................................................................................................ 78 11.2 General Tax Indemnity ..................................................................................................... 81 11.3 Yield Protection Amount .................................................................................................. 86 11.4 Funding/Contribution Indemnity ...................................................................................... 88 11.5 EXPRESS INDEMNIFICATION FOR ORDINARY NEGLIGENCE, STRICT  LIABILITY, ETC ............................................................................................................. 88 11.6 Indemnity Prior to Completion Date / Construction Period Termination Date ................ 89 11.7 Additional Provisions Regarding Environmental Indemnification ................................... 89 11.8 Increase of Lessor Advances ............................................................................................ 90 11.9 Survival ............................................................................................................................. 90 SECTION 12. MISCELLANEOUS. .......................................................................................................... 90 12.1 Survival of Agreements .................................................................................................... 90 12.2 Notices .............................................................................................................................. 90 12.3 Counterparts ...................................................................................................................... 91 12.4 Terminations, Amendments, Waivers, Etc; Unanimous Vote Matters ............................. 91 12.5 Headings, etc ..................................................................................................................... 93 12.6 Parties in Interest .............................................................................................................. 93 12.7 GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF  JURY TRIAL; VENUE .................................................................................................... 93 12.8 Severability ....................................................................................................................... 94 12.9 Liability Limited ............................................................................................................... 94 12.10 Rights of the Credit Parties ............................................................................................... 95 12.11 Further Assurances ........................................................................................................... 95 12.12 Calculations under Operative Agreements ....................................................................... 95 12.13 Confidentiality .................................................................................................................. 95 12.14 Financial Reporting/Tax Characterization ........................................................................ 96 12.15 Set-off ............................................................................................................................... 96 12.16 Limited Obligation of the Lessee to Pay on behalf of the Lessor ..................................... 97 12.17 Limitation on Commitments ............................................................................................. 97 12.18 USA Patriot Act Notice .................................................................................................... 98 12.19 Acknowledgement and Consent to Bail-In of Affected Financial Institutions ................. 98 12.20 UCC Filing Authorization ................................................................................................ 98 12.21 [Reserved] ......................................................................................................................... 98 

 

iv  CHAR1\1917164v13 12.22 Lessee to Cause Performance of Obligations by Identified Big Lots Entities .................. 98 12.23 Erroneous Payments ......................................................................................................... 98 12.24 ERISA Matters ................................................................................................................ 101 12.25 Notification to the Lessor Parties .................................................................................... 103 12.26 Rates ............................................................................................................................... 103 12.27 No Advisory or Fiduciary Responsibility ....................................................................... 104 

 

v  CHAR1\1917164v13 EXHIBITS  A Form of Requisition - Section 4.2  B Form of Officer’s Certificate - Section 5.3(t)  C Form of Secretary’s Certificate - Section 5.3(u)  D Form of Officer’s Certificate - Section 5.3(v)  E Form of Secretary’s Certificate - Section 5.3(w)  F-1 Form of Officer’s Certificate (Completion - First Certification) – Section 5.5  F-2 Form of Officer’s Certificate (Completion - Second Certification) – Section 5.5  G Form of Construction Agent Certificate – Section 5.17(b)(i)(A)  H Form of Guarantor Joinder and Assumption Agreement – Section 6B.9  I Form of Officer’s Certificate (Permitted Acquisition) – Section 8.3B(e)(iii)(E)  J Form of Officer’s Certificate (Compliance) – Section 8.3C(c)  K Form of Intercompany Subordination Agreement – Appendix A definition of “Intercompany  Subordination Agreement”  

 

vi  CHAR1\1917164v13 SCHEDULES  Schedule I Lessor Parties Commitment  Schedule II Capitalization  Schedule III Credit Parties  Schedule IV [Reserved]  Schedule V Owned Real Estate  Schedule VI Consents and Approvals  Schedule VII Insurance Policies  Schedule VIII Employee Benefit Plan Disclosure  Schedule IX Environmental Disclosure  Schedule X Permitted Indebtedness  Schedule XI Existing Guaranties  Schedule XII Excluded Active Subsidiaries  Schedule XIII Excluded Inactive Subsidiaries  Schedule XIV Permitted Investments  Schedule XV Additional Permitted Liens  Schedule XVI Notice Information for Lessor Parties  Schedule XVII Settlement Amounts  Schedule XVIII Guarantors as of the Fourth Amendment Closing Date  

 

vii  CHAR1\1917164v13 APPENDICES  Appendix A - Rules of Usage and Definitions  

 

CHAR1\1917164v13  PARTICIPATION AGREEMENT THIS PARTICIPATION AGREEMENT dated as of November 30, 2017 (as amended, modified,  extended, supplemented, restated and/or replaced from time to time, this “Agreement”) is by and among  AVDC, LLC (formerly, AVDC, Inc.), an Ohio limited liability company (the “Construction Agent” or  “Lessee”); the various entities which are parties hereto from time to time as guarantors (individually, a  “Guarantor” and collectively, the “Guarantors”); WACHOVIA SERVICE CORPORATION, a Delaware  corporation (the “Lessor”); the various banks and other lending institutions which are parties hereto from  time to time as lease participants (individually, a “Lease Participant” and collectively, the “Lease  Participants”); and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking  association, as the agent for the Lessor Parties and, respecting the Security Documents, as the agent for the  Secured Parties (in such capacity, the “Agent”).  Capitalized terms used but not otherwise defined in this  Agreement shall have the meanings set forth in Appendix A hereto.  WITNESSETH:  A. WHEREAS, subject to the terms and conditions of the Lessor Assignment Agreement  (which agreement is effective concurrent with the effectiveness of this Agreement) and the other Operative  Agreements, the Lessor shall irrevocably sell and assign to each Lease Participant, and each Lease  Participant shall irrevocably purchase and assume from the Lessor, its Lessor Parties Interest;  B. WHEREAS, subject to the terms and conditions of this Agreement, the Agency Agreement  and the other Operative Agreements, (i) the Lessor shall purchase a parcel of real property, which will (or  may) have existing Improvements thereon, from one (1) or more third parties designated by the  Construction Agent and (ii) the Lessor Parties shall fund the acquisition, installation, testing, use,  development, construction, operation, maintenance, repair, refurbishment and restoration of the Property  by the Construction Agent; and  C. WHEREAS, the Lessor desires to lease to the Lessee, and the Lessee desires to lease from  the Lessor, the Property pursuant to this Agreement, the Lease and the other Operative Agreements;  NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good  and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby agree  as follows:  SECTION 1.  THE FINANCING.  1.1 General.  Subject to the terms and conditions of the Lessor Assignment Agreement (which agreement is  effective concurrent with the effectiveness of this Agreement) and the other Operative Agreements, the  Lessor shall irrevocably sell and assign to each Lease Participant, and each Lease Participant shall  irrevocably purchase and assume from the Lessor, its Lessor Parties Interest; provided, after the  effectiveness of the Lessor Assignment Agreement, the Lessor shall still retain its own Lessor Parties  Interest.  Subject to the terms and conditions of this Agreement and the other Operative Agreements and in  reliance on the representations and warranties of each of the parties hereto contained herein or made  pursuant hereto, (x) each Lessor Party has agreed, respectively, to make its Lessor Advances from time to  time in an aggregate amount of up to its Lessor Parties Commitment to permit the Lessor to acquire and  develop the Property and (y) each Lessor Party has acquired (or in the case of the Lessor, has retained),  

 

2  CHAR1\1917164v13 respectively, its Percentage Share in the aggregate Lessor Parties Ownership Interests of all the Lessor  Parties.  1.2 Absolute and True Sale; No Fiduciary Duty of the Lessor.  The sale by the Lessor to the Lease Participants of the respective Lessor Parties Interests shall be  an absolute and true sale.  The obligations of the Lessor Parties are several obligations, not joint obligations.   As a clarification and not in limitation of the foregoing, the Credit Parties shall have no recourse to any  Lessor Party which funds its Lessor Advances and otherwise performs it obligations pursuant to the  Operative Agreements regarding the failure by any other Lessor Party to fund its Lessor Advances or  otherwise to perform its obligations pursuant to the Operative Agreements.  Further, the Lease Participants  shall have (a) no recourse to the Lessor in the event of failure of any Credit Party to pay Rent or any other  amounts of any kind or type pursuant to any of the Operative Agreements and (b) no right to require the  Lessor to repurchase any Lessor Parties Interest in any event.  Notwithstanding any provision to the contrary in any of the Operative Agreements and  notwithstanding that the Lessor is a party to various of the Operative Agreements as the “Lessor” and is the  holder of legal title to the Property, the Lessor shall not have any duties or responsibilities, except those  expressly set forth in the Operative Agreements, or any fiduciary relationship with any Lease Participant,  and no implied covenants, functions, responsibilities, duties, obligations or liabilities of the Lessor shall be  read into this Agreement or any of the other Operative Agreements, or shall otherwise exist against the  Lessor.  Each Lessor Party hereby appoints and authorizes the Lessor to take such action on its behalf and  to exercise such powers under the Operative Agreements as are delegated to the Lessor by the terms hereof  and thereof, together with such powers as are reasonably incidental thereto.  As to any matters not expressly  provided for by the Operative Agreements (including, without limitation, enforcement of the Operative  Agreements), the Lessor shall not be required to exercise any discretion or take any action, but shall be  required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting)  upon the instructions of the Majority Secured Parties, and such instructions shall be binding upon all Lessor  Parties; provided, however, that the Lessor shall not be required to take any action which exposes the Lessor  to personal liability or which is contrary to the Operative Agreements or Applicable Law.  Regarding its Lessor Parties Ownership Interests, the Lessor shall have the same rights and powers  as the other Lessor Parties have regarding their respective Lessor Parties Ownership Interests.  SECTION 2.  [Reserved].  SECTION 3.  SUMMARY OF TRANSACTIONS.  3.1 Operative Agreements. On the date hereof, each of the respective parties hereto and thereto shall execute and deliver this  Agreement, the Agency Agreement, the Lease, the Lessor Assignment Agreement, each applicable  Mortgage Instrument and such other documents, instruments, certificates and opinions of counsel as agreed  to by the parties hereto.  

 

3  CHAR1\1917164v13 3.2 Property Purchase. On the Property Closing Date and subject to the terms and conditions of this Agreement (a)  each  Lessor Party will make its Lessor Advance in accordance with Sections 1 and 5 of this Agreement, (b) the  Lessor will purchase (to the extent not already owned by the Lessor) and acquire good and marketable title  to a fee interest in the Property, pursuant to a Deed or Bill of Sale, as the case may be, (c) the Lessee and  the Lessor shall execute and deliver the Lease and (d) the Term shall commence with respect to the  Property.  3.3 Construction of Improvements; Commencement of Basic Rent. Construction Advances will be made with respect to particular Improvements to be constructed and  with respect to ongoing Work regarding the Equipment and construction of particular Improvements, in  each case, pursuant to the terms and conditions of this Agreement, the Lessor Assignment Agreement and  the Agency Agreement.  The Construction Agent will act as a construction agent on behalf of the Lessor  respecting the Work regarding the Equipment, the construction of such Improvements and the expenditures  of the Construction Advances related to the foregoing.  During the Construction Period, the Construction  Agent shall have sole management responsibility over, and shall be solely responsible for, the construction,  means, methods, sequences and procedures with respect to the Property.  The Construction Agent shall  promptly notify the Lessor upon Completion of the Improvements and the Lessee shall commence to pay  Basic Rent as of the Rent Commencement Date.  3.4 Title to the Property. For the avoidance of doubt, the title of the Lessor in and to the Property shall be held by and in the  name of the Lessor and not as trustee or as agent for the Lessor Parties; provided, however, in the event of  any sale or other disposition of the Property (including to the Lessee, its designee or a third party, including  pursuant to any exercise of remedies pursuant to the Operative Agreements), the Lessor shall provide the  proceeds from such sale or other disposition received by the Lessor to the Agent and the Agent shall apply  such proceeds in accordance with the applicable provisions of Section 8.7 of the Participation Agreement.  SECTION 4.  THE CLOSINGS.  4.1 Initial Closing Date. All documents and instruments required to be delivered on the Initial Closing Date shall be  delivered at the offices of Moore & Van Allen, PLLC, Charlotte, North Carolina, or at such other location  as may be determined by the Lessor, the Agent and the Lessee.  4.2 Initial Closing Date; Property Closing Date; Acquisition Advances; Construction  Advances. The Construction Agent shall deliver to the Agent a requisition (a “Requisition”), in the form  attached hereto as EXHIBIT A or in such other form as is satisfactory to the Agent, in its reasonable  discretion, no later than 12:00 noon (Charlotte, North Carolina time) (a) as of the Initial Closing Date  regarding the Initial Closing Date Advance, (b) at least three (3) Business Days prior to the date of any  proposed Lessor Advance in connection with each Acquisition Advance pursuant to Section 5.3 (except  with respect to any Acquisition Advance made as of the Initial Closing Date, as such shall be subject to the  consent of the Lessor Parties, in their reasonable discretion (as such consent from each Lessor Party shall  be evidenced by its funding of its portion of the Acquisition Advance on the Initial Closing Date), in which  

 

4  CHAR1\1917164v13 case such Requisition shall be delivered as of the Initial Closing Date) and (c) at least ten (10) days prior to  the proposed Lessor Advance, in each case in connection with each Construction Advance pursuant to  Section 5.4, including the Punchlist Advance pursuant to Section 5.11 (and in any event the delivery date  for such Requisition shall be concurrent with or after the date as of which the Construction Agent has  complied with the other delivery requirements of Section 5.17(b)(i)); provided, notwithstanding the  foregoing provisions of this subsection (c) or any other provision of the Operative Agreements, (x) the  Construction Agent shall not submit any Requisition for any Construction Advance until such time as (i)  the Construction Consultant shall have completed its review of the initial Plans and Specifications and  found the budget and the construction timeline contained in such Plans and Specifications to be satisfactory,  as determined in the reasonable discretion of the Construction Consultant, and (ii) the Lessor Parties shall  have completed their review of the initial Plans and Specifications, such that the Majority Secured Parties  shall have found the budget and the construction timeline contained in such Plans and Specifications to be  satisfactory, as determined in the reasonable discretion of the Majority Secured Parties, and (y) any  Requisition for a Construction Advance submitted prior to the approval by the Construction Consultant and  the Majority Secured Parties of the budget and the construction timeline contained in the initial Plans and  Specifications (as referenced in the foregoing subsection (x)) shall be null and void and of no force or effect  and the Lessor Parties shall have no obligation to fund any such Construction Advance as so requested  pursuant to such a Requisition.  Each Requisition shall (i) specify the desired amount of such Lessor  Advance which in the aggregate must be in a minimum amount of $500,000 and (ii) specify the date of  such Lessor Advance.  Delivery of a Requisition shall be deemed to be a certification by the Lessee that all  applicable conditions precedent (except those relating to performance by the Financing Parties) under  Sections 5.3 and/or 5.4 of this Agreement shall have been satisfied by the date of the particular Lessor  Advance, unless waived by the Agent (pursuant to instructions from the Majority Secured Parties).  No  Requisition shall be required for the funding by the Lessor Parties of Lessor Advances to pay Transaction  Expenses or for the increase of Lessor Advances described in Section 5.1(b).  As a clarification of the  foregoing and not in limitation thereof, the Construction Agent shall be permitted to submit Requisitions  (and the Lessor Parties shall fund Lessor Advances therefor, subject to the terms of the Operative  Agreements) during the Construction Period for Property Costs, including with regard to (w) the costs and  expenses required for construction of the Improvements in accordance with the Construction Documents,  (x) certain amounts of Supplemental Rent (including, regarding the Property, for Taxes, utilities, insurance  premiums, Casualty occurrences and  Condemnation occurrences), (y) capitalized Lessor Yield on the  Lessor Advances and (z) the Transaction Expenses.  The Credit Parties shall ensure that no Requisition  shall request any Lessor Advance for the acquisition of, or otherwise in any manner regarding, any Excluded  Equipment.  SECTION 5.  FUNDING OF LESSOR ADVANCES; CONDITIONS PRECEDENT;  REPORTING REQUIREMENTS ON COMPLETION DATE; THE LESSEE’S DELIVERY OF  NOTICES; RESTRICTIONS ON LIENS.  5.1 General. (a) When the Lessor Parties fund their respective Lessor Advances to the Agent  pursuant to this Section 5 and Section 5A or if Agent elects to make such Lessor Advances available  to the Construction Agent under Section 5A.8(b)(i), then, subject to the final sentence of this  Section 5.1(a), the Agent shall distribute the Lessor Advances to the Construction Agent for  application by the Construction Agent, in accordance with the Operative Agreements, as follows:  (i) from time to time at the direction of the Construction Agent to allow the Lessor to acquire the  Property, (ii) to permit the acquisition, testing, engineering, installation, development,  construction, modification, design, and renovation, as applicable, of the Property (or components  thereof) (including construction of the Improvements and acquisition and installation of the  

 

5  CHAR1\1917164v13 Equipment), (iii) to pay Transaction Expenses and (iv) otherwise to pay such other amounts payable  pursuant to the terms of the Operative Agreements.  Notwithstanding the foregoing, if Lessor  Advances have been made to the Agent to pay Transaction Expenses (including pursuant to Section  4.2 at a time when no Requisition has been submitted for such items), then (without funding such  amounts to the Construction Agent) the Agent may pay such Transaction Expenses as the Agent  shall reasonably determine or, if the Agent so desires, as directed by the Majority Secured Parties.  (b) On each Payment Date during the period prior to the Rent Commencement Date,  and as long as no Event of Default shall have occurred and be continuing the Lessor Parties’ Lessor  Advances shall automatically be increased by the amount of Lessor Yield accrued and unpaid on  the Lessor Advances for such period (except to the extent that at any time such increase would  cause the Lessor Advances to exceed the Lessor Parties Commitment, in which case the Lessee  shall pay such excess amount to the Lessor Parties in immediately available funds on the date the  Lessor Parties Commitment was exceeded), and the Property Cost shall be automatically increased  by such amount (for the avoidance of doubt, there shall be no such increase in the Property Cost  regarding any such amounts otherwise paid by the Lessee in accordance with the foregoing).  5.2 Procedures for Funding. (a) The Construction Agent shall designate the date for Lessor Advances hereunder in  accordance with the terms and provisions hereof; provided, however, it is understood and agreed  that no more than one (1) Lessor Advance (excluding any conversion and/or continuation of any  Lessor Advances) may be requested during any calendar month and that no such designation shall  be required for the funding of Transaction Expenses or for the increase of Lessor Advances  described in Section 5.1(b); provided, further, except with respect to the Initial Closing Date  Advance and any Acquisition Advance concurrent therewith, if any, the funding of Transaction  Expenses or the increase of Lessor Advances described in Section 5.1(b), no Lessor Advance shall  be requested on a date that is not a Payment Date; provided, further, the Initial Closing Date  Advance and any concurrent Acquisition Advance must be approved by the Agent, in its reasonable  discretion.  The Construction Agent shall deliver a Requisition to the Agent in connection with  each Lessor Advance, as specified in more detail in Section 4.2.  (b) Each Requisition shall:  (i) be irrevocable, (ii) request funds in an amount that is  not in excess of the total aggregate of the Available Lessor Parties Commitment at such time, and  (iii) request that the Lessor Parties make Lessor Advances for the payment of Property Costs that  (except with respect to the Punchlist Advance (as defined in Section 5.11)), have previously been  incurred or are to be incurred on the date of such Lessor Advances to the extent such were not  subject to a prior Requisition, in each case as specified in the Requisition.  (c) (i) Subject to the satisfaction of the conditions precedent set forth in  Section 5.3 or 5.4, as applicable, unless waived by the Agent (pursuant to instructions from the  Majority Secured Parties), and subject to Section 5.16 hereof with respect to the funding of  Uninsured Force Majeure Losses, on the Initial Closing Date and on the Property Closing Date or  the date on which the Construction Advance (other than as specified in Section 5.2(c)(ii) or, for the  avoidance of doubt, such later date as is requested by the Agent pursuant to Section 5A.8(b)(i)) is  to be made, as applicable, (A) each Lessor Party shall make a Lessor Advance to the Agent based  on its Lessor Party Commitment in an amount such that the aggregate of all Lessor Advances at  such time shall be one hundred percent (100%) of the Requested Funds specified in such  Requisition plus (to the extent not so specified) any additional amount of Transaction Expenses,  and (B) the total amount of the Lessor Advances made on such date shall (x) be advanced by the  Agent to the Construction Agent and used to pay Property Costs (including Transaction Expenses)  

 

6  CHAR1\1917164v13 within three (3) Business Days of the receipt by the Construction Agent of such Lessor Advance,  (y) be advanced by the Agent on the date of such Lessor Advances to the Construction Agent to  pay Property Costs (including Transaction Expenses), as applicable, previously incurred by the  Construction Agent or the Lessee or (z) be applied by the Agent in accordance with the last sentence  of Section 5.1(a).  (ii) Notwithstanding the foregoing, with respect to the final Construction  Advance regarding the Construction Period Property only and subject to the satisfaction of  the conditions precedent set forth in Section 5.4, each Lessor Party shall make a Lessor  Advance such that the aggregate of its funded Property Cost following such final  Construction Advance shall be an amount equal to its Commitment Percentage multiplied  by one hundred percent (100%) of the aggregate Property Cost (exclusive of any amount  of Property Cost attributable to any Lessor Advance for Transaction Expenses to the extent  the funding of such Transaction Expenses was effected pursuant to the increase by any  Lessor Party of its Lessor Parties Commitment pursuant to Section 5.8) for the Property,  up to an aggregate advance amount equal to the aggregate of the Lessor Parties  Commitments (exclusive of any amount of Property Cost attributable to any Lessor  Advance for Transaction Expenses to the extent the funding of such Transaction Expenses  was effected pursuant to the increase by any Lessor Party of its Lessor Parties Commitment  pursuant to Section 5.8); provided, in the event that any Lessor Party shall have previously  funded an amount in excess of the amount otherwise required to be funded by such Lessor  Party under this Section 5.2(c)(ii) (any such amount, an “Overfunded Amount”), the  Construction Agent shall pay (from amounts received in connection with such final  Construction Advance) to such Lessor Party an amount equal to such Overfunded Amount.  (d) With respect to a Lessor Advance made to the Construction Agent to pay for  Property Costs and not expended for such purpose on the date such Lessor Advance was made by  the Lessor Parties to the Agent, such amounts shall be held by the Construction Agent until the  applicable Property Closing Date or, if such Property Closing Date does not occur within three (3)  Business Days of the date of the Construction Agent’s receipt of such Lessor Advance, the  Construction Agent shall return such amounts (together with Breakage Costs, if not returned on the  applicable Payment Date) to the Agent and such amounts then shall be applied regarding the  applicable Lessor Advances to repay the Lessor Parties and, subject to the terms hereof, thereafter  such amounts so returned shall remain available for future Lessor Advances.  Any such Lessor  Advances held by the Construction Agent shall be subject to the Lien of the Lease and shall accrue  Lessor Yield as a Lessor Advance from the date advanced to the Construction Agent until such  amounts are repaid to the Lessor Parties.  With respect to that portion of the purchase price for the  Property constituting the Holdback Amount that is initially funded by Lessor Advances and  thereafter disbursed by the escrow holder from time to time to reimburse the Construction Agent  for amounts paid by the Construction Agent for ordnance-related matters (as more specifically  described in Section 10(b) of the Purchase Agreement), the Construction Agent shall return such  amounts (together with Breakage Costs, if not returned on the applicable Payment Date) to the  Agent and such amounts then shall be applied regarding the applicable Lessor Advances to repay  the Lessor Parties.  Thereafter such amounts so returned shall remain available for future Lessor  Advances in accordance with the terms of the Operative Agreements.  Any such Lessor Advances  held by the Construction Agent shall be subject to the Lien of the Lease and shall accrue Lessor  Yield as a Lessor Advance from the date advanced to the Construction Agent until such amounts  are repaid to the Lessor Parties.  The foregoing provisions of this Section 5.2(d) shall not impair  the right of the Construction Agent, in its final Requisition, to request the Punchlist Advance, as  more particularly described in Section 5.11.  

 

7  CHAR1\1917164v13 (e) All Operative Agreements which are to be delivered to any Lessor Party or the  Agent shall be delivered to the Agent, on behalf of the Lessor Parties and the Agent, and such items  (except for Bills of Sale, Deeds and chattel paper originals, with respect to which in each case there  shall be only one original) shall be delivered with originals sufficient for the Lessor Parties and the  Agent.  All other items which are to be delivered to any Lessor Party or the Agent shall be delivered  to the Agent, on behalf of the Lessor Parties and the Agent, and such other items shall be held by  the Agent.  To the extent any such other items are requested in writing from time to time by any  Lessor Party, the Agent shall provide a copy of such item to the party requesting it.  (f) Notwithstanding the completion of any closing under this Agreement pursuant to  Section 5.3 or 5.4, each condition precedent in connection with any such closing may be  subsequently enforced by the Agent (unless such has been expressly waived in writing by the Agent  (pursuant to instructions from the Majority Secured Parties)). 5.3 Conditions Precedent for the Lessor Parties and the Agent Relating to the Initial  Closing Date and the Lessor Advances of Funds for the Acquisition of the  Property. The obligations (i) on the Initial Closing Date of the Lessor Parties and the Agent to enter into the  transactions contemplated by this Agreement, including the obligation to execute and deliver the applicable  Operative Agreements to which each is a party on the Initial Closing Date, (ii) on the Initial Closing Date  of the Lessor Parties to make Lessor Advances in order to pay Property Costs constituted as Transaction  Expenses (individually, an “Initial Closing Date Advance”) and (iii) on the Property Closing Date of the  Lessor Parties to make Lessor Advances in order to pay (or reimburse the Construction Agent or the Lessee  for the payment of) the Property Acquisition Cost of the Property (individually, an “Acquisition Advance”),  in each case (with regard to the foregoing Sections 5.3(i), (ii) and (iii)) are subject to the satisfaction or  waiver by the Agent (pursuant to instructions from the Majority Secured Parties) of the following conditions  precedent on or prior to the Initial Closing Date or the Property Closing Date, as the case may be (to the  extent such conditions precedent require the delivery of any agreement, certificate, instrument,  memorandum, legal or other opinion, appraisal, commitment, title insurance commitment, Lien report or  any other document of any kind or type, such shall be in form and substance satisfactory to the Agent, in  its reasonable discretion; notwithstanding the foregoing, the obligations of each party shall not be subject  to any conditions contained in this Section 5.3 which are required to be performed by such party) (The  parties to this Agreement acknowledge and agree that the conditions precedent described in this Section 5.3  pertaining to the Initial Closing Date were satisfied or waived as of the Initial Closing Date.):  (a) the correctness in all material respects of the representations and warranties of the  parties to this Agreement contained herein, in each of the other Operative Agreements and in each  certificate delivered pursuant to any Operative Agreement on each such date (except  representations and warranties which (i) expressly relate solely to an earlier date or time, in which  case such representations and warranties were true and correct as of such earlier date or time or (ii)  are qualified by materiality or references to Material Adverse Effect, which such representations  and warranties shall be true and correct in all respects as of such date);  (b) the performance by the parties to this Agreement of their respective agreements  contained herein and in the other Operative Agreements to be performed by them on or prior to  each such date;  (c) the Agent shall have received a fully executed counterpart copy of the Requisition,  appropriately completed;  

 

8  CHAR1\1917164v13 (d) with respect to the Property Closing Date only, title to the Property shall conform  to the representations and warranties set forth in Section 6.1(ii) hereof;  (e) with respect to the Property Closing Date only, the Construction Agent or the  Lessee shall have delivered to the Lessor a copy of the Deed respecting the Land and existing  Improvements (if any) as are being acquired on each such date with the proceeds of the Lessor  Advances;  (f) there shall not have occurred and be continuing any Default or Event of Default  and no Default or Event of Default will have occurred after giving effect to the Lessor Advances  requested by each such Requisition;  (g) with respect to the Property Closing Date only, the Construction Agent or the  Lessee shall have delivered to the Agent title insurance commitments to issue policies respecting  the Property in an amount no less than the Property Cost, with such endorsements as the Agent  deems necessary, in its reasonable discretion, and which are customary for transactions of this type  and in the applicable state, in favor of the Lessor and the Agent from a title insurance company  selected by the Construction Agent or the Lessee and acceptable to the Agent, in its reasonable  discretion, but only with such title exceptions thereto that are Permitted Liens, and the Construction  Agent or the Lessee shall have delivered to the Agent a current title report;  (h) with respect to the Property Closing Date only, the Construction Agent or the  Lessee shall have delivered to the Agent a Phase I environmental site assessment (conducted  pursuant to ASTM E1527-13) respecting the Property certified to the Agent and prepared by an  independent recognized professional selected by the Construction Agent or the Lessee and  acceptable to the Agent, in its reasonable discretion, and evidencing no Environmental Condition  with respect to which there is more than a remote risk of loss;  (i) with respect to the Property Closing Date only, (i) the Construction Agent or the  Lessee shall have delivered to the Agent an ALTA survey (with a flood hazard certification)  respecting the Property certified to the Agent and the Lessor prepared by (A) an independent  recognized professional selected by the Construction Agent or the Lessee and acceptable to each  of the Agent and the Lessor, in its reasonable discretion, and (B) in a manner and including such  information as is required by the Agent and (ii) the Agent shall have obtained the necessary  documentation concerning flood hazard certification;  (j) with respect to the Property Closing Date only, counsel for the Lessee or the  Construction Agent admitted in the state where the Property is located and otherwise acceptable to  the Agent shall have issued to the Lessor Parties and the Agent its legal opinion addressing such  issues as identified by the Agent, in such form as is reasonably acceptable to the Agent, with respect  to local law real property issues respecting the law where the Property is located;  (k) with respect to the Property Closing Date only, the Lessee shall have caused to be  delivered to the Agent a Mortgage Instrument in respect of the Property (in such form as is  acceptable to the Agent, with revisions as necessary to conform to statutory recording requirements  and customary practice under applicable state law) and UCC Financing Statements respecting the  Property, all in recordable form;  (l) with respect to the Property Closing Date only, the Lessee shall have delivered to  the Agent the Lease and a memorandum thereof (or short form lease), such memorandum or short  form lease to be in the form attached to the Lease as Exhibit B or in such other form as is acceptable  

 

9  CHAR1\1917164v13 to the Agent, with modifications as necessary to conform to applicable state law, and in form  suitable for recording;  (m) immediately after and giving effect to the applicable Lessor Advances  contemplated hereby, the aggregate outstanding Lessor Advances do not exceed the aggregate  Lessor Parties Commitment;  (n) [Reserved];  (o) the Available Lessor Parties Commitment shall be sufficient for Completion of the  Construction Period Property on or before the Construction Period Termination Date;  (p) with respect to the Property Closing Date only, the Construction Agent or the  Lessee shall have provided to the Agent a certificate of insurance evidencing the insurance with  respect to the Property as required by the Lease or the Agency Agreement, as the case may be;  (q) the Agent shall have received (i) Uniform Commercial Code Lien searches  regarding the Lessee and Tax Lien searches and judgment Lien searches regarding each of the  Credit Parties in such jurisdictions as determined by the Agent by a nationally recognized search  company acceptable to the Agent, in its reasonable discretion, (ii) the Liens referenced in such Lien  searches which are objectionable to the Agent shall have been either removed or otherwise handled  in a manner satisfactory to the Agent, in its reasonable discretion, and (iii) a good standing  certificate (or local equivalent) regarding the Lessee from the appropriate office of the respective  state where the Property is located;  (r) all Taxes, fees and other charges in connection with the execution, delivery,  recording, filing and registration of the Operative Agreements and/or documents related thereto as  the parties have agreed to record or file (and in any event all such Taxes, fees and other charges in  connection with any and all UCC financing statements and fixture filings) and the payment of the  title insurance premiums shall have been paid or provisions for such payment shall have been made  to the satisfaction of the Agent, in its reasonable discretion;  (s) each of the Operative Agreements to be entered into on such date shall have been  duly authorized, executed and delivered by the parties thereto, enforceable against such parties, and  shall be in full force and effect, and the Agent shall have received a fully executed copy of each of  the Operative Agreements;  (t) as of the Initial Closing Date only, the Agent shall have received an Officer’s  Certificate, dated as of the Initial Closing Date, of the Lessee in the form attached hereto as  EXHIBIT B or in such other form as is acceptable to the Agent, in its reasonable discretion, stating  that (i) each and every representation and warranty of each Credit Party contained in the Operative  Agreements to which it is a party is true and correct in all material respects on and as of the Initial  Closing Date; (ii) no Default or Event of Default has occurred and is continuing; (iii) each  Operative Agreement to which any Credit Party is a party is in full force and effect with respect to  it; and (iv) each Credit Party has duly performed and complied with all covenants, agreements and  conditions contained herein or in any Operative Agreement required to be performed or complied  with by it on or prior to the Initial Closing Date;  (u) as of the Initial Closing Date only, the Agent shall have received (i) a certificate of  the Secretary or an Assistant Secretary of each Credit Party, dated as of the Initial Closing Date, in  the form attached hereto as EXHIBIT C or in such other form as is acceptable to the Agent, in its  

 

10  CHAR1\1917164v13 reasonable discretion, attaching and certifying as to (A)  its articles of incorporation or other charter  documents, certified as of a recent date by the Secretary of State of its state of formation, (B) its  by-laws or other similar document, certified as of a recent date by an appropriate officer of the  Credit Party, (C) the resolutions duly authorizing the execution, delivery and performance by it of  each of the Operative Agreements to which it is or will be a party and (D) the incumbency and  signature of persons authorized to execute and deliver on its behalf the Operative Agreements to  which it is or will be a party and (ii) a good standing certificate (or local equivalent) from the  appropriate office of the respective states where such Credit Party is formed and where the principal  place of business of such Credit Party is located as to its good standing in each such state;  (v) as of the Initial Closing Date only, the Agent shall have received an Officer’s  Certificate of the Lessor dated as of the Initial Closing Date in the form attached hereto as  EXHIBIT D or in such other form as is acceptable to the Agent, stating that (A) each and every  representation and warranty of the Lessor contained in the Operative Agreements to which it is a  party is true and correct in all material respects on and as of the Initial Closing Date, (B) each  Operative Agreement to which the Lessor is a party is in full force and effect with respect to it and  (C) the Lessor has duly performed and complied with all covenants, agreements and conditions  contained herein or in any Operative Agreement required to be performed or complied with by it  on or prior to the Initial Closing Date;  (w) as of the Initial Closing Date only, the Agent shall have received (i) a certificate of  the Secretary or an Assistant Secretary of the Lessor in the form attached hereto as EXHIBIT E or  in such other form as is acceptable to the Agent, attaching and certifying as to (A) its articles of  incorporation or other equivalent charter documents certified as of a recent date by the Secretary  of State of its state of formation, (B) its by-laws or other similar document, certified as of a recent  date by an appropriate officer of the Lessor, (C) the resolutions duly authorizing the execution,  delivery and performance by the Lessor of each of the Operative Agreements to which it is or will  be a party, and (D) the incumbency and signature of persons authorized to execute and deliver on  its behalf the Operative Agreements to which it is a party and (ii) a good standing certificate (or  local equivalent) from the appropriate office of the state where the Lessor is incorporated and where  the principal place of business of the Lessor is located as to good standing in each such state;  (x) as of the Initial Closing Date only, counsel for the Lessor acceptable to the Agent  shall have issued (i) to the Lessee, the Guarantors, the Lessor Parties and the Agent its legal opinion  addressing such issues as identified by the Agent, in such form as is reasonably acceptable to the  Agent and (ii) to the Lessor its legal opinion addressing such true sale issues as identified by the  Lessor, in such form as is reasonably acceptable to the Lessor;  (y) as of the Initial Closing Date only, counsel for the Credit Parties acceptable to the  Agent shall have issued to the Lessor Parties and the Agent their legal opinion, addressing such  issues as identified by the Agent, in such form as is reasonably acceptable to the Agent;  (z) no law or regulation shall prohibit, and no order, judgment or decree of any court  or governmental body, agency or instrumentality shall prohibit or enjoin any Lessor Party from  making the Lessor Advances;  (aa) immediately after and giving effect to the applicable Lessor Advances  contemplated hereby, the aggregate outstanding Lessor Advances do not exceed the Lessor Parties  Commitment;  

 

11  CHAR1\1917164v13 (bb) with respect to the Property Closing Date only, the Lessor shall have arranged to  have an RVI Policy issued with respect to the Property from an insurer selected by the Lessor;  provided, the premium for such RVI Policy shall not exceed a reasonable and customary amount;  (cc) with respect to the Property Closing Date only, the Agent shall have received an  Appraisal regarding the Property certified to the Agent and the Lessor prepared by (i) an  independent recognized professional selected by the Agent and (ii) in a manner and including such  information as is required by the Agent;  (dd) the Construction Agent shall have delivered to the Agent a copy of the Plans and  Specifications for the Improvements respecting the Property, certified by an officer of the  Construction Agent; and  (ee) the Construction Agent shall have delivered to the Agent a copy of the  Construction Budget respecting the Property, certified by an officer of the Construction Agent.  5.4 Conditions Precedent for the Lessor Parties and the Agent Relating to the Lessor  Advances of Funds after the Acquisition Advance.  The obligations of the Lessor Parties to make Lessor Advances to permit the acquisition, testing,  engineering, installation, development, construction, modification, design, and renovation, as applicable,  of the Property (or components thereof) in accordance with the terms of the Agency Agreement and the  other Operative Agreements (including construction of the Improvements and acquisition and installation  of the Equipment) and the funding of Off-Site Construction Costs are subject to the satisfaction or waiver  of the following conditions precedent (to the extent such conditions precedent require the delivery of any  agreement, certificate, instrument, memorandum, legal or other opinion, appraisal, commitment, title  insurance commitment, Lien report or any other document of any kind or type, such shall be in form and  substance satisfactory to the Agent, in its reasonable discretion; notwithstanding the foregoing, the  obligations of each party shall not be subject to any conditions contained in this Section 5.4 which are  required to be performed by such party):  (a) the correctness in all material respects on such date (except representations and  warranties which (i) expressly relate solely to an earlier date or time, in which case such  representations and warranties were true and correct as of such earlier date or time or (ii) are  qualified by materiality or references to Material Adverse Effect, which such representations and  warranties shall be true and correct in all respects as of such date) of the representations and  warranties of the parties to this Agreement contained herein, in each of the other Operative  Agreements and in each certificate delivered pursuant to any Operative Agreement;  (b) the performance by the parties to this Agreement of their respective agreements  contained herein and in the other Operative Agreements to be performed by them on or prior to  each such date unless waived in accordance with Section 12.4 of this Agreement;  (c) the Agent shall have received a fully executed counterpart of the relevant  Requisition, appropriately completed;  (d) (i) the Available Lessor Parties Commitment will be sufficient to finalize  Completion of the Construction Period Property and (ii) construction of the Property is on track to  be completed in accordance with the Construction Documents on or prior to the Construction  Period Termination Date;  

 

12  CHAR1\1917164v13 (e) there shall not have occurred and be continuing any Default or Event of Default,  and no Default or Event of Default will have occurred after giving effect to the Construction  Advance requested by the applicable Requisition;  (f) the title insurance policy delivered in connection with the requirements of  Section 5.3(g) shall provide for (or shall be endorsed to provide for) insurance in an amount at least  equal to the maximum total Property Cost indicated by the Construction Budget (as adjusted from  time to time, including with regard to any additional Lessor Advances pursuant to Section 5.16)  and there shall be no title change or exception objectionable to the Agent;  (g) all Taxes, fees and other charges in connection with the execution, delivery,  recording, filing and registration of the Operative Agreements (and in any event all such Taxes,  fees and other charges in connection with any and all UCC financing statements and fixtures filings)  and the cost of any title endorsement or update shall have been paid or provisions for such payment  shall have been made to the satisfaction of the Agent, in its reasonable discretion;  (h) [Reserved];  (i) [Reserved];  (j) immediately after and giving effect to the applicable Lessor Advances  contemplated hereby, the aggregate outstanding Lessor Advances do not exceed the aggregate  Lessor Parties Commitment;  (k) no law or regulation shall prohibit, and no order, judgment or decree of any court  or governmental body, agency or instrumentality shall prohibit or enjoin any Lessor Party from  making the Lessor Advances;  (l) the requirements of Section 5.17 shall have been satisfied;  (m) with respect to any Lessor Advances not contemplated in the original Construction  Budget, including by the Lessor pursuant to Section 5.16, the Lessee shall have caused to be  delivered to the Agent an amendment to the Mortgage Instrument (as is acceptable to the Agent,  with revisions as necessary to conform to statutory recording requirements and customary practice  under Applicable Law); and  (n) submission of the Requisition shall constitute a certification by the Construction  Agent that, in accordance with the Construction Documents, (i) Completion is on schedule to be  effected by the Construction Period Termination Date and (ii) Completion is on schedule to be  effected with the remaining Available Lessor Parties Commitment.  5.5 Additional Reporting and Delivery Requirements on Completion Date. (a) As the Property nears Completion, the Construction Agent shall coordinate with  the Agent regarding the date to be designated as the Completion Date, and no later than the  Completion Date, the Construction Agent shall notify the Agent of the exact date of the Completion  Date.  (b) Within three Business Days after the Completion Date, the Construction Agent  shall deliver to the Agent an Officer’s Certificate in the form attached hereto as EXHIBIT F- 1 or  

 

13  CHAR1\1917164v13 in such other form as is acceptable to the Agent attaching the temporary certificate of occupancy  for the Property and specifying:   (i) the address for the Property;   (ii) the Completion Date;  (iii) the aggregate Property Cost; and  (iv) that all representations and warranties of the Credit Parties in each of the  Operative Agreements and each certificate delivered pursuant thereto are true and correct  in all material respects as of the Completion Date (except representations and warranties  which (i) expressly relate solely to an earlier date or time, in which case such  representations and warranties were true and correct as of such earlier date or time or (ii)  are qualified by materiality or references to Material Adverse Effect, which such  representations and warranties shall be true and correct in all respects as of such date).  (c) Within thirty (30) days after the Completion Date:  (i) the Construction Agent shall deliver to the Agent an Officer’s Certificate  in the form attached hereto as EXHIBIT F-2 or in such other form as is acceptable to the  Agent attaching:  (A) detailed, itemized documentation supporting the asserted Property  Cost figures; and  (B) unconditional waivers of Lien covering all work and materials  regarding the Property by the applicable general contractor or any subcontractors  or suppliers;  (ii) the Construction Agent shall deliver or cause to be delivered to the Agent  (unless previously delivered to the Agent) originals of the following relating to the  Property, each of which shall be in form and substance acceptable to the Agent, in its  reasonable discretion:  (A) a title insurance endorsement regarding the title insurance policy  delivered in connection with the requirements of Section 5.3(g), but only to the  extent such endorsement is necessary to provide for insurance in an amount at least  equal to the maximum total Property Cost and, if endorsed, the endorsement shall  not include a title change or exception that has or would reasonably be expected to  have a Material Adverse Effect;   (B) an as-built survey for the Property;  (C) insurance certificates respecting the Property as required  hereunder and under the Lease;  (D) at the Lessor’s prior written request, an Appraisal regarding the  Property; and  

 

14  CHAR1\1917164v13 (E) with respect to any Lessor Advances not contemplated in the  original Construction Budget, including by the Lessor pursuant to Section 5.16,  the Lessee shall have caused to be delivered to the Agent an amendment to the  Mortgage Instrument (as is acceptable to the Agent, with revisions as necessary to  conform to statutory recording requirements and customary practice under  Applicable Law); and  (iii) the Construction Agent covenants and agrees that the recording fees,  documentary stamp taxes or similar amounts required to be paid in connection with the  related Mortgage Instrument shall have been paid in an amount required by Applicable  Law, subject, however, to the obligations of the Lessor Parties to fund such costs to the  extent required pursuant to Section 7.1.  (d) The Agent shall have the right to contest the information contained in either of the  foregoing Officer’s Certificate (to be delivered pursuant to Sections 5.5(b) and 5.5(c)(i), as  applicable), with any such determination made by the Agent in good faith being determinative,  absent manifest error; provided that, the Agent and the Construction Agent shall work in good faith  to resolve any such contest and, to the extent that the Agent contests the information contained in  either such Officer’s Certificate and the Credit Parties are diligently working in good faith with the  Agent to resolve any such contest, notwithstanding anything contained herein or in any other  Operative Agreement to the contrary, no Event of Default shall be created solely by any such  contest for a period not to exceed thirty (30) days from the date the Agent provides written notice  to the Construction Agent of such contest; provided, further, that notwithstanding that any such  particular contest has not been resolved in such period of thirty (30) days, if it is reasonable to  expect that such contest may be subsequently resolved with additional diligent effort by the Credit  Parties and the Agent, and to the extent the Credit Parties continue to work diligently in good faith  with the Agent to resolve such contest, then the Credit Parties may continue to work with the Agent  to resolve such contest for a period of an additional fifteen (15) days; provided, further, if such  contest has not been resolved in the period of the additional fifteen (15) days, then the contested  information shall constitute a breach of the Construction Agent’s obligation to have delivered such  information to the Agent in accordance with the terms of this Agreement.  5.6 Restrictions on Liens. On the Property Closing Date, the Construction Agent or the Lessee shall cause the Property  acquired by the Lessor to be free and clear of all Liens except those referenced in Section 6.1(cc)(i) and  (ii).  On the date the Property is either sold to a third party in accordance with the terms of the Operative  Agreements or, pursuant to Section 21.1(a) of the Lease, retained by the Lessor, the Lessee shall cause the  Property to be free and clear of all Liens (other than Lessor Liens and such other Liens that are expressly  set forth as title exceptions on the title commitment issued under Section 5.3(g) with respect to the Property  (except to the extent that the Agent, prior to the time of the Property Closing Date, has given written notice  to the Lessee that the Agent reasonably believes that any such title exceptions may materially impair the  potential resale value of the Property), Liens for Taxes that are not yet due and such other Liens on the  Property theretofore approved by the required Financing Parties in accordance with the Operative  Agreements).  5.7 Payments. Subject to Section 5.1(b), all payments of Lessor Advances, Lessor Yield, Fees and other amounts  to be made by the Credit Parties under this Agreement or any other Operative Agreements to any of the  Financing Parties (excluding Excepted Payments which shall be paid directly to the party to whom such  

 

15  CHAR1\1917164v13 payments are owed) shall be made to the Agent at the office designated by the Agent from time to time in  Dollars and in immediately available funds, without set-off, deduction (except for deduction or withholding  of Impositions as required by Applicable Law, but subject to Section 11.2), or counterclaim.  Excluding  Excepted Payments paid to the party to whom such payments are owed and payments received from the  Agent, the Financing Parties agree to pay to the Agent, at the office designated by the Agent from time to  time and in the currency received, all other amounts received by any Financing Party from any Credit Party  or otherwise with respect to the Property.  Subject to the definition of “Lessor Yield Period” in Appendix A  attached hereto, whenever any payment under this Agreement or any other Operative Agreements shall be  stated to be due on a day that is not a Business Day, such payment may be made on the next succeeding  Business Day, and such extension of time in such case shall be included in the computation of Lessor Yield,  Fees or other amounts payable pursuant to the Operative Agreements, as applicable and as the case may be.  5.8 Unilateral Right to Increase the Lessor Parties Commitment. Notwithstanding any other provision of any Operative Agreement or any objection by any Person  (including any objection by the Lessee or the Construction Agent), each Lessor Party, in its sole discretion,  may unilaterally elect to increase its Lessor Parties Commitment in order to fund Transaction Expenses.   The Credit Parties shall promptly cause to be taken, executed, acknowledged or delivered, at the sole  expense of the Lessee, all such further acts, conveyances, documents and assurances as the Financing  Parties may from time to time reasonably request in order to carry out and effectuate the intent and purposes  of this Section 5.8 (including the preparation and execution of a Requisition for amounts funded by any of  the Lessor Parties as a result of any increase in the Lessor Parties Commitment pursuant to this Section 5.8).  5.9 Maintenance of the Lessee as a Wholly-Owned Entity. From the Initial Closing Date and thereafter until such time as all obligations of all Credit Parties  under the Operative Agreements have been satisfied and performed in full, the Parent shall, unless otherwise  consented to by the Agent and the Lessor Parties, retain the Lessee as a Wholly-Owned Entity, which, for  the avoidance of doubt, shall not prohibit any transaction otherwise permitted under Section 8.3B or Section  10.1 so long as, after giving effect thereto, any successor, transferee or assignee which becomes the Lessee  in any such transaction is a Wholly-Owned Entity.  5.10 Percentage Share.  The Percentage Share for each Lessor Party shall be determined from time to time by the Agent in  good faith, with such determination by the Agent being conclusive and binding on each Lessor Party and  the Credit Parties, absent manifest error.  The Agent shall maintain records regarding the Percentage Share  (which may be set forth in the Register), and promptly upon any such change regarding the Percentage  Share of any Lessor Party, the Agent shall provide a report to the Lessor Parties detailing the then current  Percentage Shares of all the Lessor Parties.  5.11 Final Advance for Punch List Items. Prior to the Construction Period Termination Date, the Construction Agent in its Requisition for  the final Advance may request amounts to pay for punch list items for the Property that have not been  completed at such time and that may not be completed until after the Completion Date (such Advance being  referred to herein as the “Punchlist Advance”).  With regard to such punch list items, the Construction  Agent shall reference in Section 1 of the applicable Requisition under “Party to Whom Amount is Owed”  the entry “contractors regarding punch list items for the Property” and under “Amount Owed (in U.S.  Dollars)” the requested aggregate amount for such punch list items.  Concurrent with delivery of such  Requisition for the Punchlist Advance, the Construction Agent shall provide to the Agent (for prompt  

 

16  CHAR1\1917164v13 delivery to the Lessor Parties) a listing (in reasonable detail) of the anticipated expense items to be paid  with the Punchlist Advance.  Funding of the Punchlist Advance for punch list items for the Property will  be subject to the conditions precedent referenced in Section 5.4.  Prior to the Completion Date, the  Construction Agent shall use all such Punchlist Advance amounts only for punch list items for the  Property.  After the Completion Date, the Lessee shall use all such Punchlist Advance amounts only for  punch list items for the Property.  All punch list items for the Property so completed shall be completed in  accordance with the Plans and Specifications.  Not less than five (5) Business Days prior to the Payment  Date next occurring after the twelve (12) month anniversary of the Completion Date (the “Punchlist  Deadline”), the Lessee shall return to the Agent any and all Advance amounts previously funded for such  punch list items for the Property to the extent such amounts have not been used at such time to pay for  punch list items for the Property; provided, however, that if the Lessee is unable to complete such punchlist  items prior to the Punchlist Deadline despite its diligent efforts to do so, the Lessee, may, by written request  to the Agent, extend the Punchlist Deadline by up to three (3) additional months upon the Agent’s written  approval, not to be unreasonably withheld, conditioned or delayed.  Within thirty (30) days of the Lessee  either (x) spending all of the Punchlist Advance or (y) returning any unspent portion of the Punchlist  Advance to the Agent (in the case of both subsections (x) and (y), in accordance with this Section 5.11),  the Lessee shall provide to the Agent (for prompt delivery to the Lessor Parties) a listing (in reasonable  detail) of the actual expense items paid with the Punchlist Advance. On such Payment Date following the  Punchlist Deadline, the Agent shall distribute such returned amounts ratably to the Lessor Parties in  accordance with Section 8.7(b)(vi).  5.12 Limitation on Requested Lessor Advances regarding Available Lessor Parties  Commitment. Lessee shall not submit any Requisition or any other request for funding pursuant to the Operative  Agreements requesting any Lessor Advance in excess of the Available Lessor Parties Commitment.  No  Lessor Party shall be obligated to fund any Lessor Advance in excess of its Lessor Parties Commitment.  5.13 Limitation on Purchase Option under the Lease and the Agency Agreement. The Lessee (or its designee) may purchase the Property from time to time pursuant to the Purchase  Option in the Lease to the extent the Lessee (or its designee) pays the Termination Value; provided, that,  notwithstanding the foregoing, Lessee may not exercise the Purchase Option to purchase the Property as a  Lessee selected cure to an Event of Default while the Property is a Construction Period Property or as a  voluntary election by the Lessee while the Property is a Construction Period Property.  The limitations  imposed pursuant to this Section 5.13 shall also apply with respect to any purchase by the Lessee (or its  designee) of the Property while the Property is a Construction Period Property pursuant to Section 17.10 of  the Lease or pursuant to the Agency Agreement.  5.14 Environmental Closure Reporting.    On or prior to the Construction Period Termination Date, if the California Department of Toxic  Substances Control (the “DTSC”) has not issued a determination letter that no further remedial action is  required with respect to known environmental conditions at the Property, or has not provided written  confirmation that such letter is not required, then the Lessee shall arrange for issuance by an independent  environmental consultant (who has not worked for the Lessee in the past and is reasonably acceptable to  the Majority Secured Parties) of an opinion that all known environmental conditions on the Property comply  with Acceptable Regulatory Standards, which shall be delivered no later than sixty (60) days after the  Construction Period Termination Date.  The consultant shall issue to the Lessor Parties and the Agent a  reliance letter containing the consultant’s written opinion regarding this matter.  

 

17  CHAR1\1917164v13 5.15 Final Certificate of Occupancy.    Within thirty (30) of obtaining the same and in any event within six (6) months of the Rent  Commencement Date, the Lessee shall provide to the Agent a true and correct copy of the final certificate  of occupancy or its equivalent for the Property.  5.16 Special Provision Regarding the Funding of Uninsured Force Majeure Losses. Notwithstanding any provision herein or in any other Operative Agreement to the contrary, the  parties hereto agree that, upon the occurrence of a Force Majeure Event with respect to the Construction  Period Property and subject to the satisfaction of the conditions for a Construction Advance set forth in  Section 5.4, the Lessor Parties shall make Lessor Advances (in addition to any Lessor Advances otherwise  made pursuant to the provisions of Section 5.2(c)) in an amount sufficient to pay any Uninsured Force  Majeure Loss attributable to such Force Majeure Event, and such amount so advanced shall be added to the  Property Cost for the Construction Period Property.  5.17 Construction Consultant.  (a) The Agent shall be permitted to hire the Construction Consultant to act as the  Agent’s agent (i) to review the submissions by or on behalf of the Construction Agent in connection  with the Requisitions and (ii) to oversee construction of the Property.  The Construction Consultant  may itself provide any or all such services or, in its discretion, the Construction Consultant may  contract with one or more third parties to provide any or all such services. Promptly after the Initial  Closing Date, the Agent shall, or shall cause the Construction Consultant to, provide the notice  information for the Construction Consultant to the Construction Agent.  Upon submission by the  Agent (on behalf of the Construction Consultant) to the Construction Agent of invoices (including  payment instructions) for the services of the Construction Consultant from time to time, the  Construction Agent shall include all such invoiced amounts in its next Requisition, unless any such  invoice is submitted less than three (3) Business Days prior to the date of submission of the  Requisition to the Agent in which case such invoiced amounts shall be included in the next  following Requisition.  Without the need for any further action, all such invoiced amounts from the  Construction Consultant shall constitute Transaction Expenses and once those invoiced amounts  are paid, they shall be added to the Property Cost.  From and after the Initial Closing Date Advance  and the Acquisition Advance and as otherwise more fully described below, and not in limitation of  the other conditions precedent of Section 5.4, the Lessor Parties shall have no obligation to fund a  Requisition unless the Construction Consultant has approved the funding of such Requisition, such  approval not to be unreasonably withheld or delayed.  (b) As referenced in Section 5.4(l) and in addition to the other requirements of  Section 5.4, the obligations of the Lessor Parties to make Lessor Advances to the Construction  Agent to permit the acquisition, testing, engineering, installation, development, construction,  modification, design, and renovation, as applicable, of the Property (or components thereof) in  accordance with the terms of the Agency Agreement and the other Operative Agreements  (including construction of the Improvements and acquisition and installation of the Equipment) are  subject to the satisfaction or waiver of the following conditions precedent (to the extent such  conditions precedent require the delivery of any agreement, certificate, instrument, memorandum,  legal or other opinion, appraisal, commitment, title insurance commitment, Lien report or any other  document of any kind or type, such shall be in form and substance satisfactory to the Agent, in its  reasonable discretion; notwithstanding the foregoing, the obligations of each party shall not be  subject to any conditions contained in this Section 5.17 which are required to be performed by such  party):  

 

18  CHAR1\1917164v13 (i) On or prior to the Monthly Notice Date, the Construction Agent shall  furnish or cause to be furnished to the Agent and the Construction Consultant the following  documents covering each disbursement included in a Requisition and in each case with  regard to the Property, in form and substance satisfactory to the Agent (and for this purpose,  it is acknowledged that the Agent may consult with the Construction Consultant to  determine what is satisfactory), in its reasonable discretion:  (A) a completed certificate of the Construction Agent in the form  attached hereto as EXHIBIT G or in such other form as is satisfactory to the Agent,  in its reasonable discretion, (the “Construction Agent Certificate”), and a  completed Requisition, each executed by an authorized representative of the  Construction Agent;  (B) a completed standard AIA Form G702 and Form G703 signed by  the applicable general contractor and the applicable architect, and sworn  statements and conditional waivers of Lien covering all work to be paid with the  proceeds of the currently contemplated Lessor Advances, which shall become  unconditional upon such payment (provided that the foregoing shall not apply to  amounts requested in the Punchlist Advance made pursuant to Section 5.11);  (C) fully executed copies of any proposed or executed change orders  on standard AIA Form G701 form or, if substantively similar, the form used by the  general contractor, or other form acceptable in writing to the Agent, in its  reasonable discretion, which have not been previously furnished and which require  and are not valid without the signatures of the general contractor and the  Construction Agent;  (D) copies of all permits and other Governmental Actions required  under Law to be obtained and not delivered to the Agent and the Construction  Consultant prior thereto, and in any event copies of all such permits and other  Governmental Actions not previously delivered and then needed in connection  with the Property;  (E) within ten (10) days of execution, executed copies of all  subcontracts and supplier contracts executed to date between the applicable  general contractor and a subcontractor or a supplier, as applicable, in each case  that provides for an aggregate contract price equal to or greater than $1,000,000;   (F) such other instruments, documents and information as the  Construction Consultant may reasonably request, including unconditional waivers  of Lien covering all work by the applicable general contractor or any  subcontractors or suppliers (to the extent such subcontractor or suppliers meet the  $1,000,000 threshold of the foregoing subsection (E)) paid with the proceeds of  the prior Lessor Advances;  (G) an updated Construction Budget, showing the sources and uses by  cost category in form acceptable to the Agent, in its reasonable discretion and any  modification to the Plans and Specifications; and  (H) regarding each requested disbursement of Transaction Expenses,  invoices which (1) are in writing, (2) contain the applicable vendor’s name and  

 

19  CHAR1\1917164v13 address, on letterhead if available, (3) contain the Construction Agent’s name and  the location of the project and (4) contain an invoice number and amount (provided  that the foregoing shall not apply to amounts requested in the Punchlist Advance  made pursuant to Section 5.11).  (ii) In connection with the review of each requested Lessor Advance under the  applicable Requisition, the Agent and the Construction Consultant shall have received a  report, satisfactory to each of them, in their reasonable discretion, of an inspection  consultant to be hired by the Construction Consultant, reflecting such inspection  consultant’s periodic site observation and review of the documents substantiating the  Property Costs being requested pursuant to the applicable Requisition, including progress  and quality of the Improvements, the construction schedule and related Construction  Documents.  (iii) On the Business Day next following ten (10) days after receipt by the  Agent and the Construction Consultant of all items that the Construction Agent is required  to provide pursuant to Section 5.17(b)(i), the Agent shall request the Construction  Consultant to provide, respecting a requested Lessor Advance under the applicable  Requisition, either a written approval thereof or a written disapproval thereof indicating  the reasons for any such disapproval.  The Agent shall share, or shall cause the Construction  Consultant to share, promptly with the Construction Agent the certificate or other written  communication from the Construction Consultant regarding any such  approval/disapproval.  5.18 Off-Site Construction Costs.  The Lessor Parties shall fund the Off-Site Construction Costs subject to the inclusion thereof in a  Requisition and satisfaction of the other conditions precedent for funding pursuant to the Operative  Agreements, including Section 5.4.  5.19 Notices from the Construction Agent/the Lessee.  If the Construction Agent implements any revision, amendment or modification to the Plans and  Specifications pursuant to Section 3.2(b) of the Agency Agreement, then the Construction Agent shall  provide promptly a copy thereof to the Agent.  If the Lessee makes any Modification to the Property, as  referenced in Section 11.1 of the Lease, that shall or could reasonably be expected to have a Material  Adverse Effect, then the Lessee shall provide prompt notice thereof to the Agent.  5.20 Ratable Reduction of Lessor Parties Commitments.  Any reduction in the Lessor Parties Commitments shall be on a ratable basis among all Lessor  Parties.  SECTION 5A.  LESSOR ADVANCE  5A.1 Procedure for Lessor Advance.  (a) Upon receipt from the Construction Agent by the Agent of a Requisition pursuant  to Section 4.2, and subject to the terms and conditions of this Agreement, each Lessor Party shall  make a Lessor Advance to the Agent under the Lessor Parties Commitment in an amount equal to  

 

20  CHAR1\1917164v13 its Commitment Percentage of the amount requested in such Requisition on the Initial Closing Date  or the Property Closing Date, as applicable, or on the date for any Construction Advance, and,  unless retained and applied by the Agent pursuant to Section 5.1(a), the Agent shall distribute the  funds to the Construction Agent on the same day it receives such funds from the Lessor Parties;  provided, that the outstanding Lessor Advances of a Lessor Party shall not exceed its Lessor Parties  Commitment. The Lessor Advances shall accrue yield at the Lessor Yield from time to time from  the date of advance to the Agent.  (b) The Lessor Parties Commitment of each Lessor Party to make Lessor Advances  shall be pro rata based upon the respective Lessor Parties Commitments of the Lessor Parties.  The  Lessor Advances by the Lessor Parties may from time to time be (i) SOFR Lessor Advances,  (ii) ABR Lessor Advances, or (iii) a combination thereof, as determined by the Construction Agent  and notified to the Agent pursuant to the applicable Requisitions; provided, the Construction Agent  shall not have the right to select both SOFR Lessor Advances and ABR Lessor Advances in the  same Requisition but rather shall be limited under a particular Requisition to select either all SOFR  Lessor Advances or all ABR Lessor Advances.  In the event the Construction Agent fails to provide  notice of the intended Lessor Yield type in a Requisition, the Lessor Advances pursuant to such  Requisition shall be ABR Lessor Advances.  Further, any Lessor Advances on a given date in an  aggregate amount less than $100,000 shall be ABR Lessor Advances, unless the remaining  Available Lessor Parties Commitment for the Lessor Parties in the aggregate is less than $100,000,  in which case, the Construction Agent may elect a SOFR Lessor Advance for such remaining  amount.  (c) Not later than 10:00a.m. (New York time) (i) at least three (3) Business Day(s)  prior to the proposed funding date of any SOFR Lessor Advance and (ii) on the proposed funding  date of any ABR Lessor Advance, then (in the case of each of the foregoing subsections (i) and  (ii)) the Agent shall deliver to the Lessor Parties a copy of the applicable Requisition and a written  notification of the amounts to be funded by the Lessor Parties (including, without limitation, the  amount of capitalized Lessor Yield and Transaction Expenses to be funded).  Each of the Lessor  Parties will make the amount of its Pro Rata Share of the Lessor Advances available to the Agent  as directed by the Agent and at the office specified by the Agent from time to time by 1:00p.m.  (New York time) by wire transfer on the date requested pursuant to the Requisition (or as otherwise  requested by the Agent after such date) in funds immediately available to the Agent. Subject to  satisfaction of the applicable conditions precedent for the Lessor Advance, such Lessor Advance  will then be distributed to the Construction Agent by the Agent crediting an account designated by  the Construction Agent or otherwise applying the proceeds of such Lessor Advance in accordance  with the requirements of the last sentence of Section 5.1(a).  (d) That portion of Lessor Yield accruing on each Lessor Advance during the  Construction Period shall be added to the outstanding Lessor Advances on the relevant Payment  Date in accordance with Section 5.1(b).  Lessor Yield accruing on the Lessor Advances from the  last Payment Date preceding the Rent Commencement Date through the day prior to the Rent  Commencement Date shall be added to the outstanding Lessor Advances on the Rent  Commencement Date in accordance with Section 5.1(b).  (e) (i) Notwithstanding anything to the contrary contained in this Agreement, if  any Lessor Party becomes a Defaulting Lessor Party, then, until such time as that Lessor Party is  no longer a Defaulting Lessor Party, to the extent permitted by Applicable Law:  (A) Such Defaulting Lessor Party’s right to approve or disapprove any  amendment, waiver or consent with respect to this Agreement or any other  

 

21  CHAR1\1917164v13 Operative Agreement shall be restricted as set forth in the definitions of “Majority  Secured Parties” and Section 12.4.  (B) Any payment of advance amounts, yield, fees or other amounts  received by the Agent for the account of such Defaulting Lessor Party (whether  voluntary or mandatory, at maturity or otherwise) or received by the Agent from a  Defaulting Lessor Party pursuant to Section 12.15 shall be applied at such time or  times as may be determined by the Agent as follows:  first, to the payment of any  amounts owing by such Defaulting Lessor Party to the Agent under any Operative  Agreement; second, as the Lessee may request (so long as no Default or Event of  Default exists), to the funding of any Lessor Advance in respect of which such  Defaulting Lessor Party has failed to fund its portion thereof as required by this  Agreement, as determined by the Agent; third, if so determined by the Agent and  the Lessee, to be held in a deposit account and released pro rata in order to satisfy  such Defaulting Lessor Party’s potential future funding obligations with respect to  Lessor Advances under this Agreement; fourth, to the payment of any amounts  owing to the Non-Defaulting Lessor Parties as a result of any judgment of a court  of competent jurisdiction obtained by any Non-Defaulting Lessor Party against  such Defaulting Lessor Party as a result of such Defaulting Lessor Party’s breach  of its obligations under this Agreement or any other Operative Agreement; fifth,  so long as no Default or Event of Default exists, to the payment of any amounts  owing to the Lessee as a result of any judgment of a court of competent jurisdiction  obtained by the Lessee against such Defaulting Lessor Party as a result of such  Defaulting Lessor Party’s breach of its obligations under this Agreement or any  other Operative Agreement; and sixth, to such Defaulting Lessor Party or as  otherwise as may be required under the Operative Agreements in connection with  any Lien conferred thereunder or directed by a court of competent jurisdiction;  provided, that if (1) such payment is a payment of any outstanding Lessor  Advances in respect of which such Defaulting Lessor Party has not fully funded  its appropriate share, and (2) such Lessor Advances were made at a time when the  conditions set forth in Sections 5.3 or 5.4, as applicable, were satisfied or waived,  such payment shall be applied solely to pay the Lessor Advances of all Non- Defaulting Lessor Parties on a pro rata basis prior to being applied to the payment  of any Lessor Advances of such Defaulting Lessor Party until such time as all  Lessor Advances are held by the Lessor Parties pro rata in accordance with the  Lessor Parties Commitments.  Any payments, repayments, prepayments or other  amounts paid or payable to a Defaulting Lessor Party that are applied (or held) to  pay amounts owed by a Defaulting Lessor Party shall be deemed paid to and  redirected by such Defaulting Lessor Party, and each Lessor Party irrevocably  consents hereto.  (C) Unless a replacement Lessor Party has become a party to this  Agreement in accordance with the provisions of this Agreement (pursuant to  Section 5A.1(e)(iii) or otherwise), all or any part of a Defaulting Lessor Party’s  subsequent Lessor Advances shall be reallocated among the Non-Defaulting  Lessor Parties in accordance with their respective Available Lessor Parties  Commitments (calculated without regard to such Defaulting Lessor Party’s Lessor  Parties Commitment) but only to the extent that such reallocation does not cause  the aggregate Lessor Advances of any Non-Defaulting Lessor Party to exceed such  Non-Defaulting Lessor Party’s Lessor Parties Commitment.  No reallocation  hereunder shall constitute a waiver or release of any claim of any party hereunder  

 

22  CHAR1\1917164v13 against a Defaulting Lessor Party arising from that Lessor Party having become a  Defaulting Lessor Party, including any claim of a Non-Defaulting Lessor Party as  a result of such Non-Defaulting Lessor Party’s increased exposure following such  reallocation.  (ii) If the Lessee and the Agent agree in writing that a Lessor Party is no longer  a Defaulting Lessor Party, the Agent will so notify the parties hereto, whereupon as of the  effective date specified in such notice and subject to any conditions set forth therein, that  Lessor Party will, to the extent applicable, purchase at par that portion of outstanding  Lessor Advances of the other Lessor Parties or take such other actions as the Agent may  determine to be necessary to cause the Lessor Advances to be held on a pro rata basis by  the Lessor Parties in accordance with their applicable percentages of the Lessor Parties  Commitments prior to the Lessor Party having been a Defaulting Lessor Party, whereupon  such Lessor Party will cease to be a Defaulting Lessor Party; provided, that no adjustments  will be made retroactively with respect to fees accrued or payments made by or on behalf  of any Credit Party while that Lessor Party was a Defaulting Lessor Party; and provided,  further, that except to the extent otherwise expressly agreed by the affected parties, no  change hereunder from Defaulting Lessor Party to Lessor Party will constitute a waiver or  release of any claim of any party hereunder arising from that Lessor Party’s having been a  Defaulting Lessor Party.  (iii) If any Lessor Party is a Defaulting Lessor Party, then the Lessee may, at  its sole expense and effort, upon notice to such Lessor Party and the Agent, require such  Lessor Party to assign and delegate, without recourse (in accordance with the requirements  of the Operative Agreements), all of its interests, rights and obligations under this  Agreement and the related Operative Agreements to an Eligible Assignee pursuant to  Section 5A.7.  5A.2 Computation of Lessor Yield; Payment Dates.  (a) The Agent shall as soon as practicable notify the Lessee and the Lessor Parties of  each determination of a Term SOFR Reference Rate.  Any change in the Lessor Yield on a Lessor  Advance to account for a change in any reserve requirement (including, without limitation,  supplemental, marginal and emergency reserve requirements) with respect to SOFR funding shall  be reflected in the Term SOFR Reference Rate or the ABR (as applicable) and become effective as  of the day on which such change becomes effective.  The Agent shall as soon as practicable notify  the Lessee and the Lessor Parties of the effective date and the amount of each such change in yield  rate and shall concurrently furnish a copy of such notification to the Lessee.  Lessor Yield and fees  shall be calculated on the basis of a year of three hundred sixty (360) days for the actual days  elapsed, unless Lessor Yield is calculated on the basis of the ABR.  Whenever Lessor Yield is  calculated on the basis of the ABR, Lessor Yield shall be calculated on the basis of a year of three  hundred sixty-five (365) days (or three hundred sixty-six (366) days, as the case may be) for the  actual days elapsed.  (b) Each determination of a yield rate by the Agent pursuant to any provision of this  Agreement shall be conclusive and binding on the Lessee and the Lessor Parties in the absence of  manifest error.  (c) If the Term SOFR Reference Rate cannot be determined by the Agent in the  manner specified in the definition of “Term SOFR”, the Agent shall give electronic or telephonic  notice thereof to the Lessee and the Lessor Parties as soon as practicable thereafter.  Until such  

 

23  CHAR1\1917164v13 time as the Term SOFR Reference Rate can be determined by the Agent in the manner specified in  the definition of “Term SOFR”, (i) no further SOFR Lessor Advances shall be made, (ii) no existing  SOFR Lessor Advances shall be continued as such at the end of the then current Lessor Yield  Period, (iii) the Lessee shall not have the right to convert any ABR Lessor Advances to SOFR  Lessor Advances and (iv) all subsequent Lessor Advances shall be ABR Lessor Advances;  provided, the foregoing provisions of this paragraph are subject to Section 5A.11.  5A.3 Scheduled Return of Lessor Advance.  Subject to the limitations on the Lessee’s payment obligations in connection with an election of the  Sale Option under the Lease, the outstanding amount of the Lessor Advance shall be due in full on the  Expiration Date.  On the Expiration Date, subject to the terms of this Agreement and the Lease, the Agent  on behalf of the Lessor shall receive from the Lessee under the Lease the outstanding amount of the Lessor  Advance then due, together with all accrued but unpaid Lessor Yield and all other amounts due to Lessor  under the Operative Agreements.  5A.4 Early Return of Lessor Advances; Maturity Date Payment of Lessor Advances.  (a) Subject to Sections 11.2(e), 11.3 and 11.4 of this Agreement, the Lessor Advances  may at any time and from time to time be repaid or prepaid by the Lessee, in whole or in part,  without premium or penalty, upon at least three (3) Business Days’ irrevocable notice to the Agent,  on behalf of the Lessor Parties, specifying the date and amount of repayment or prepayment of the  Lessor Advances.  Upon receipt of such notice, the Agent shall promptly notify the Lessor Parties  thereof.  If such notice is given, the amount of the Lessor Advances specified in such notice shall  be due and payable on the date specified therein, together with all accrued but unpaid Lessor Yield  and all other amounts due to the Lessor Parties under the Operative Agreements.  Amounts of the  Lessor Advances repaid or prepaid shall permanently decrease the Lessor Parties Commitment and  the Available Lessor Parties Commitment, and such amounts may not be readvanced.   Notwithstanding the foregoing, amounts so repaid or prepaid in favor of the Lessor Parties must be  distributed in accordance with Section 8.7 of this Agreement.  (b) If on any date any Lessor Party shall receive any payment in respect of the Property  or pursuant to the Operative Agreements, then in each case, the Lessor Party shall pay such amount  (excluding Excepted Payments which shall be permitted to be retained by the party to whom such  payments are owed) to the Agent to be distributed in accordance with Section 8.7 of this  Agreement.  (c) Upon the occurrence of any Event of Default (in each case only to the extent arising  out of a Lease Event of Default specified in Sections 17.1(n) or (o) of the Lease), the obligation to  repay the Lessor Advances shall automatically accelerate and such shall be due and payable in full,  together with accrued but unpaid Lessor Yield thereon and all other amounts owing to the Lessor  under the Operative Agreements.  Upon the occurrence and during the continuance of any other  Event of Default, the Majority Secured Parties may determine to accelerate the obligation to repay  the Lessor Advances, together with accrued but unpaid Lessor Yield thereon and all other amounts  owing to the Secured Parties under the Operative Agreements.  (d) Each repayment or prepayment at the Expiration Date of the Lessor Advances  expressly permitted by and effected in accordance with this Agreement shall be allocated to reduce  the Property Cost and applied in accordance with Section 8.7.  

 

24  CHAR1\1917164v13 (e) The outstanding Lessor Advances, the Lessor Yield and all other amounts then due  and owing by any of the Credit Parties under this Agreement or any other Operative Agreement  shall be due and payable in full on the Expiration Date.  (f) Breakage Costs (payable by the Lessee pursuant to Section 11.4) shall be due and  payable in connection with each repayment or prepayment of the Lessor Advances and otherwise  in accordance with the Operative Agreements.  5A.5 Lessor Yield Rates and Payment Dates.  (a) The Lessor Advances outstanding hereunder from time to time shall bear interest  at a rate per annum equal to either (i) with respect to a SOFR Lessor Advance, the Adjusted Term  SOFR Rate determined for the applicable Lessor Yield Period plus the Applicable Percentage or  (ii) with respect to an ABR Lessor Advance, the ABR plus the Applicable Percentage, as selected  by the Lessee in accordance with the provisions hereof; provided, however, (A) upon delivery by  the Agent of the notice described in Section 5A.2(c), the Lessor Advances of each of the Lessor  Parties shall bear interest at the ABR plus the Applicable Percentage from and after the dates and  during the periods specified in Section 5A.2(c) and (B) upon the delivery by a Lessor Party of the  notice described in Section 11.3(d), the Lessor Advances of such Lessor Party shall bear interest at  the ABR plus the Applicable Percentage from and after the dates and during the periods specified  in Section 11.3(d); provided, the foregoing provisions of this paragraph are subject to Section  5A.11.  (b) If all or a portion of (i) any outstanding Lessor Advance, (ii) any Lessor Yield  payable thereon or (iii) any other amount payable hereunder or otherwise pursuant to any Operative  Agreement to a Lessor Party shall not be paid when due (whether at the stated maturity, by  acceleration or otherwise, but subject to the applicable grace period), such overdue amount shall  bear interest at the Overdue Rate, in each case from the date of such non-payment until such amount  is paid in full (whether after or before judgment).  Upon the occurrence and during the continuance  of any Event of Default, Lessor Yield on the Lessor Advances shall, at the option of the Majority  Secured Parties, be calculated at the Overdue Rate.  (c) Lessor Yield shall be payable in arrears on the applicable Payment Date, provided,  that (i) Lessor Yield accruing pursuant to Section 5A.5(b) shall be payable from time to time on  demand and (ii) each repayment or prepayment of the Lessor Advances shall be accompanied by  accrued Lessor Yield to the date of such repayment or prepayment on the amount repaid or prepaid  (and payment of all Breakage Costs).  (d) [Reserved].  5A.6 Termination or Reduction of Lessor Parties Commitments.  (a) Subject to Section 5.20, the Lessee shall have the right, upon not less than three (3)  Business Days’ written notice to the Agent, to terminate the Lessor Parties Commitments or, from  time to time, to reduce the amount of the Lessor Parties Commitments, provided, that (i) after  giving effect to such reduction and any repayment or prepayment of Lessor Advances in connection  therewith, the aggregate outstanding Lessor Advances shall not exceed the aggregate Lessor Parties  Commitments and (ii) such notice shall be accompanied by a certificate of the Lessee stating that  the amount equal to the remaining aggregate unfunded Budgeted Total Property Costs not funded  by Lessor Advances as of the date of such reduction does not exceed the aggregate amount of  Available Lessor Parties Commitments as of such date after giving effect to such reduction.  Any  

 

25  CHAR1\1917164v13 such reduction (A) shall be in an amount equal to the lesser of (1) $1,000,000 (or an even multiple  thereof) or (2) the remaining Available Lessor Parties Commitments and (B) shall reduce  permanently the Lessor Parties Commitments then in effect.  (b) The Lessor Parties Commitments shall automatically be reduced to zero  Dollars ($0) upon the occurrence of the Completion Date.  5A.7 Notice of Amounts Payable; Mandatory Assignment.  (a) In the event that any Lessor Party becomes aware that any amounts are or will be  owed to it pursuant to Section 11.2 or 11.3 or that it is unable to make SOFR Lessor Advances,  then it shall promptly notify the Lessee and the Agent thereof and, as soon as possible thereafter,  such Lessor Party shall submit to the Lessee (with a copy to the Agent) a certificate indicating the  amount owing to it and the calculation thereof.  In addition, such Lessor Party will use  commercially reasonable efforts to (x) reduce or eliminate any such claim or (y) to enable itself to  continue making SOFR Lessor Advances, including a change in the lending office at which its  obligations under the Operative Agreements is maintained, so long as such change is not otherwise  disadvantageous to such Lessor Party, as determined by such Lessor Party in its sole discretion.  (b) In the event that (i) any Lessor Party delivers to the Lessee a certificate in  accordance with Section 5A.7(a) in connection with amounts payable pursuant to Sections 11.2 or  11.3, (ii) such Lessor Party is required to make Lessor Advances as ABR Lessor Advances in  accordance with Section 11.3 or (iii) such Lessor Party is a Defaulting Lessor Party or a Non- Consenting Lessor Party, then, subject to Section 10.1 and to the extent such Lessor Party has been  unable to eliminate such claim referenced in the foregoing subsections (i) or (ii), the Lessee may,  at its own expense, including the payment to the Agent of the assignment fee pursuant to Section  10.5 (provided, such amounts shall be reimbursed or paid entirely (as elected by the Lessee) by the  Lessee, as Supplemental Rent, or, prior to the Construction Period Termination Date, shall be paid  by the Construction Agent with the proceeds of Advances) and in the discretion of the Lessee,  require such Lessor Party to transfer or assign, in whole, without recourse (in accordance with  Section 10.1), all of its Lessor Parties Commitment, interests, rights (except for rights to be  indemnified for actions taken while a party hereunder) and obligations under this Agreement to an  Eligible Assignee if the Lessee (subject to Section 10.1), with the full cooperation of such Lessor  Party, can identify an Eligible Assignee who is ready, willing and able to be such replacement bank  or lending institution with respect thereto and such replacement bank or lending institution (which  may be another Lessor Party) shall assume such assigned obligations in accordance with the  provisions of Section 10.1; provided, however, that (x) subject to Section 10.1, the Lessee  (provided, such amounts shall be reimbursed or paid entirely (as elected by the Lessee) by the  Lessee, as Supplemental Rent, or, prior to the Construction Period Termination Date, shall be paid  by the Construction Agent with the proceeds of Advances) or such replacement bank or lending  institution, as the case may be, shall have paid to such Lessor Party in immediately available funds  the outstanding Lessor Advances of such Lessor Party and the Lessor Yield accrued to the date of  such payment on such Lessor Advances and all other amounts owed to such Lessor Party pursuant  to the Operative Agreements, and (y) such assignment of the Lessor Parties Commitment of such  Lessor Party does not conflict with any law, rule or regulation or order of any court or  Governmental Authority.  5A.8 Pro Rata Treatment and Payments.  (a) Each Construction Advance and any reduction of the Lessor Parties Commitments  shall be made pro rata according to their respective Lessor Parties Commitments.  Subject to the  

 

26  CHAR1\1917164v13 provisions of the Operative Agreements, each payment (including each repayment or prepayment)  by the Lessee on account of outstanding Lessor Advances and Lessor Yield shall be made pro rata  according to the respective outstanding advance amounts on the Lessor Advances then held by the  Lessor Parties.  All payments (including repayments and prepayments) to be made by the Lessee,  whether on account of advance amounts on the Lessor Advances, Lessor Yield or otherwise, shall  be made without set-off or counterclaim and shall be made prior to 11:00 a.m., New York, New  York time on the due date thereof (and any payment received on any day after such time shall be  deemed received on the next Business Day), to the Agent, for the account of the Lessor Parties, at  the Agent’s office specified by the Agent from time to time, in Dollars and in immediately available  funds.  The Agent shall distribute such payments to the Lessor Parties promptly upon receipt in like  funds as received.  If any payment hereunder becomes due and payable on a day other than a  Business Day, such payment shall be extended to the next succeeding Business Day; provided,  however, if such payment includes an amount of Lessor Yield calculated with reference to the  Adjusted Term SOFR Rate and the result of such extension would be to extend such payment into  another calendar month, then such payment shall be made on the immediately preceding Business  Day.  In the case of any extension of any payment pursuant to the preceding sentence, Lessor Yield  thereon shall be payable at the then applicable rate during such extension.  (b) Unless the Agent shall have been notified in writing by any Lessor Party prior to a  requested Lessor Advance that such Lessor Party will not make its share of such Lessor Advance  available to the Agent, the Agent may either (i) assume that such Lessor Party is making such  amount available to the Agent, and the Agent may, in reliance upon such assumption, make  available to the Construction Agent a corresponding amount or (ii) utilize the funding mechanics  herein for Lessor Advances.  If the Agent utilizes the mechanism described in the foregoing  Section 5A.8(b)(i), the Lessor Party which has not funded its Lessor Advance shall forthwith upon  demand pay to the Agent all amounts paid by the Agent on behalf of the Lessor Party, together with  interest thereon, for each day from the date a payment was made by the Agent until the date the  Agent has been paid such amounts in full, at a rate per annum equal to the Federal Funds Effective  Rate plus two percent (2%).  5A.9 Conversion and Continuation Options Respecting the Lessor Advances.  (a) The Lessee may elect from time to time to convert SOFR Lessor Advances to ABR  Lessor Advances by giving the Agent at least three (3) Business Days’ prior irrevocable notice of  such election, provided, that any such conversion of SOFR Lessor Advances may only be made on  the last day of a Lessor Yield Period with respect thereto, and provided, further, to the extent an  Event of Default has occurred and is continuing on the last day of any such Lessor Yield Period,  the applicable SOFR Lessor Advance shall automatically be converted to an ABR Lessor Advance,  and during the continuance of any Event of Default, the Lessee may not elect to convert any Lessor  Advance into a SOFR Lessor Advance or to continue any Lessor Advance as a SOFR Lessor  Advance.  The Lessee may elect from time to time to convert ABR Lessor Advances to SOFR  Lessor Advances by giving the Agent at least three (3) Business Days’ prior irrevocable notice of  such election.  Upon receipt of any such notice, the Agent shall promptly notify each Lessor Party  thereof.  All or any part of outstanding SOFR Lessor Advances or ABR Lessor Advances may be  converted as provided herein, provided, that no ABR Lessor Advance may be converted into a  SOFR Lessor Advance after the date that is one (1) month prior to the Expiration Date.  (b) Subject to the restrictions specified herein, any SOFR Lessor Advance may be  continued as such upon the expiration of the current Lessor Yield Period with respect thereto by  the Lessee giving irrevocable notice to the Agent, in accordance with the applicable notice  provision for the conversion of ABR Lessor Advances to SOFR Lessor Advances set forth herein,  

 

27  CHAR1\1917164v13 provided, that no SOFR Lessor Advance may be continued as such after the date that is one (1)  month prior to the Expiration Date, provided, further, no SOFR Lessor Advances may be continued  as such if an Event of Default has occurred and is continuing as of the last day of the Lessor Yield  Period for such SOFR Lessor Advance, provided, further, unless a SOFR Lessor Advance is not  then permitted subject to the terms of this Agreement or the other Operative Agreements, if the  Lessee shall fail to give any required notice as described above or otherwise herein, such Lessor  Advance (on the last day of such then expiring Lessor Yield Period) shall automatically be  continued as a SOFR Lessor Advance with a Lessor Yield Period of one (1) month, consistent with  the requirements set forth in the definition of the term “Lessor Yield Period”, and provided, further,  if such continuation of a SOFR Lessor Advance is not permitted pursuant to the terms of this  Agreement, such Lessor Advance shall automatically be converted to an ABR Lessor Advance on  the last day of such then expiring Lessor Yield Period.  5A.10 Excess Yield.  Notwithstanding any provisions to the contrary contained in this Agreement or any other  Operative Agreement, Lessee shall not be required to pay, and the Lessor Parties shall not be  permitted to collect, any amount of Lessor Yield in excess of the maximum amount of yield  permitted by applicable Law (“Excess Yield”). If any Excess Yield is provided for or determined  by a court of competent jurisdiction to have been provided for in this Agreement or in any other  Operative Agreement, then, in such event: (1) the provisions of this subsection shall govern and  control; (2) Lessee shall not be obligated to pay any Excess Yield; (3) any Excess Yield that the  Lessor Parties may have received hereunder shall be, at the option of the Majority Secured Parties,  (a) applied as a credit against the outstanding principal balance of the Obligations or accrued and  unpaid Lessor Yield (not to exceed the maximum amount permitted by Law), (b) refunded to the  payor thereof, or (c) any combination of the foregoing; (4) the yield rates provided for herein or in  the other Operative Agreements shall be automatically reduced to the maximum lawful rate allowed  from time to time under applicable Law, and this Agreement and the other Operative Agreements  shall be deemed to have been and shall be reformed and modified to reflect such reduction; and (5)  Lessee shall not have any action against the Agent or any Lessor Party for any damages arising out  of the payment or collection of any Excess Yield (other than to enforce this Section 5A.10).  5A.11 Conversion and Continuation Options Respecting the Lessor Advances.  (a) Benchmark Replacement.  Notwithstanding anything to the contrary herein or in  any other Operative Agreement, with respect to any Lessor Advance, if a Benchmark Transition  Event and its related Benchmark Replacement Date have occurred prior to any setting of the  applicable then-current Benchmark, then the Benchmark Replacement will replace such  Benchmark with respect to each affected Lessor Advance for all purposes hereunder or under any  Operative Agreement in respect of such Benchmark setting and subsequent Benchmark settings,  without any amendment to, or further action or consent of any other party to, this Agreement or  any other Operative Agreement.  (b) Benchmark Replacement Conforming Changes. In connection with the use,  administration, adoption or implementation of a Benchmark Replacement, the Agent will have the  right to make Conforming Changes from time to time and, notwithstanding anything to the contrary  herein or in any other Operative Agreement, any amendments implementing such Conforming  Changes will become effective without any further action or consent of Lessee or any other party  to this Agreement or any other Operative Agreement.  

 

28  CHAR1\1917164v13 (c) Notices; Standards for Decisions and Determinations. The Agent will notify  Lessee of (i) the implementation of any Benchmark Replacement, and (ii) the effectiveness of any  Conforming Changes in connection with the use, administration, adoption or implementation of a  Benchmark Replacement. Any determination, decision or election that may be made by the Agent  pursuant to this Section 5A.11, including any determination with respect to a tenor, rate or  adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any  decision to take or refrain from taking any action or any selection, will be conclusive and binding  absent manifest error and may be made in its sole discretion and without consent from Lessee or  any other party to this Agreement or any other Operative Agreement.  (d) Market Disruption. Notwithstanding the foregoing, if prior to any Lessor Yield  Period, the Agent determines that, by reason of circumstances affecting the relevant market (other  than a Benchmark Transition Event), adequate and reasonable means do not exist for ascertaining  the Term SOFR Reference Rate for such Lessor Yield Period, the Agent shall give prompt notice  thereof to Lessee, whereupon the Lessor Yield for such Lessor Yield Period with respect to each  Lessor Advance based on such Term SOFR Reference Rate, and for all subsequent Lessor Yield  Periods for Lessor Advances based on such Term SOFR Reference Rate until such notice has been  withdrawn by the Agent, shall be the sum of (i) an alternate benchmark rate that has been selected  by the Agent, (ii) the spread adjustment, or method for calculating or determining such spread  adjustment (which may be a positive or negative value or zero (0)) that has been selected by the  Agent and (iii) the applicable Applicable Percentage.  5A.12 Initial Benchmark Conforming Changes.  In connection with the use or administration of any Benchmark, the Agent will have the  right to make Conforming Changes from time to time and, notwithstanding anything to the contrary  herein or in any other Operative Agreement, any amendments implementing such Conforming  Changes will become effective without any further action or consent of Lessee or any other party  to this Agreement or any other Operative Agreement.  The Agent will notify Lessee of the  effectiveness of any Conforming Changes in connection with the use or administration of any  Benchmark.  5A.13 Illegality.  If the adoption of or any change in any Applicable Law or in the interpretation or  application thereof after the date hereof shall make it unlawful for the Agent or Lessor to effect or  continue Lessor Advances as contemplated by the Operative Agreements, (a) any commitment of  Lessor hereunder to enter into a new Lessor Advance shall be terminated and the Maturity Date  shall be deemed to have occurred, (b) if required by such adoption or change, the Lessor Yield shall  be the sum of (i) an alternate benchmark rate that has been selected by the Agent, (ii) the spread  adjustment, or method for calculating or determining such spread adjustment (which may be a  positive or negative value or zero (0)) that has been selected by the Agent and (iii) the applicable  Applicable Percentage, and (c) if required by such adoption or change, the Maturity Date shall be  deemed to have occurred.  

 

29  CHAR1\1917164v13 SECTION 6.  REPRESENTATIONS AND WARRANTIES.  6.1 Representations and Warranties of Each Credit Party. Effective as of the Initial Closing Date or the Property Closing Date, as applicable, the date of each  Lessor Advance and the Rent Commencement Date (except to the extent any representation and warranty  is otherwise specifically limited to one or more specific dates), each Credit Party represents and warrants  to each of the other parties hereto that:  (a) Each Credit Party (i) is a corporation, partnership or limited liability company duly  organized, validly existing and in good standing under the Laws of its jurisdiction of organization,  (ii) has the lawful power to own or lease its properties and to engage in the business it presently  conducts or proposes to conduct, and (iii) is duly licensed or qualified and in good standing in each  jurisdiction where the property owned or leased by it or the nature of the business transacted by it  or both makes such licensing or qualification necessary except to the extent that the failure to be so  licensed, qualified or in good standing would not cause a Material Adverse Effect and, except in  each case of (i)-(iii), as otherwise expressly permitted pursuant to Section 8.3B(e).  (b) All of the authorized capital stock of the Parent, and the shares (referred to herein  as the “Shares”) of the Parent that are issued and outstanding have been validly issued and are fully  paid and nonassessable.  There are no options, warrants or other rights outstanding to purchase any  such Shares to be issued after the Initial Closing Date or the Property Closing Date, as applicable,  except as indicated on Schedule II.  (c) Schedule III states the name of each of the Credit Parties, its jurisdiction of  incorporation, its principal place of business, its authorized capital stock, the issued and outstanding  shares (referred to herein as the “Subsidiary Shares”) and the owners thereof if it is a corporation,  its outstanding partnership interests (the (“Partnership Interests”) if it is a partnership and its  outstanding limited liability company interests, interests assigned to managers thereof and the  voting rights associated therewith (the “LLC Interests”) if it is a limited liability company.  Each  of the Credit Parties has good and marketable title to all of the Subsidiary Shares, Partnership  Interests and LLC Interests it purports to own, free and clear in each case of any Lien.  All  Subsidiary Shares, Partnership Interests and LLC Interests have been validly issued, and all  Subsidiary Shares are fully paid and nonassessable.  All capital contributions and other  consideration required to be made or paid in connection with the issuance of the Partnership  Interests and LLC Interests have been made or paid, as the case may be.  There are no options,  warrants or other rights outstanding to purchase any such Subsidiary Shares, Partnership Interests  or LLC Interests except as indicated on Schedule III.  (d) Each Credit Party has full power to enter into, execute, deliver and carry out this  Agreement and the other Operative Agreements to which it is a party and to incur and perform all  its Obligations, including all payment and performance obligations, under the Operative  Agreements to which it is a party, and all such actions have been duly authorized by all necessary  proceedings on its part.  (e) This Agreement has been duly and validly executed and delivered by each Credit  Party, and each other Operative Agreement which any Credit Party is required to execute and  deliver on or after the date hereof will have been duly executed and delivered by such Credit Party  on the required date of delivery of such Operative Agreement.  This Agreement and each other  Operative Agreement constitutes, or will constitute, legal, valid and binding obligations of each  

 

30  CHAR1\1917164v13 Credit Party which is or will be a party thereto on and after its date of delivery thereof, enforceable  against such Credit Party in accordance with its terms, except to the extent that enforceability of  any of such Operative Agreement may be limited by bankruptcy, insolvency, reorganization,  moratorium or other similar Laws affecting the enforceability of creditors’ rights generally or  limiting the right of specific performance and general concepts of equity.  (f) Neither the execution and delivery of this Agreement or the other Operative  Agreements by any Credit Party nor the consummation of the transactions herein or therein  contemplated or compliance with the terms and provisions hereof or thereof by any of them will  conflict with, constitute a default under or result in any breach of (i) the terms and conditions of  the certificate or articles of incorporation, bylaws, certificate of limited partnership, partnership  agreement, certificate of formation, limited liability company agreement or other organizational  documents of any Credit Party or (ii) any material Law or any material agreement or instrument or  order, writ, judgment, injunction or decree to which any Credit Party is a party or by which it is  bound or to which it is subject, or result in the creation or enforcement of any Lien, charge or  encumbrance whatsoever upon any property (now or hereafter acquired) of any Credit Party except  for Liens created by the Operative Agreements.  (g) There are no actions, suits, proceedings or investigations pending or, to the  knowledge of any Credit Party, threatened against such Credit Party at law or equity before any  Official Body which individually or in the aggregate would reasonably be expected to result in any  Material Adverse Effect.  None of the Credit Parties or any Subsidiaries of any Credit Party is in  violation of any order, writ, injunction or any decree of any Official Body which would reasonably  be expected to result in any Material Adverse Effect. (h) The real property owned by each Credit Party is described on Schedule V.  Each  Credit Party has good and marketable title to (or ownership of) or valid leasehold interest in all  properties, assets and other rights which it purports to own or lease or which are reflected as owned  or leased on its books and records, free and clear of all Liens and encumbrances except (i) in the  case of all such properties, assets and other rights (other than the Collateral), Additional Permitted  Liens and (ii) in the case of the Collateral, Permitted Liens.  In the case of property (whether or not  such property constitutes Collateral) leased by such Credit Party, such property is subject to the  terms and conditions of the applicable leases.  Upon consummation of the transactions  contemplated hereby, all leases of real property are in full force and effect in all material respects  without the necessity for any consent which has not previously been obtained.  (i) (i) BLS has delivered to the Agent copies of the Parent’s (a) audited  consolidated year-end financial statements for and as of the end of the fiscal year ended February 3,  2018 and (b) unaudited consolidated quarter-end financial statements for and as of the end of the  fiscal quarter ended May 5, 2018 (collectively, the “Historical Statements”).  The Historical  Statements were compiled from the books and records maintained by the Parent’s management,  fairly represent in all material respects the consolidated financial condition of the Parent and its  Subsidiaries as of their dates and the results of operations for the fiscal periods then ended and have  been prepared in accordance with GAAP consistently applied.  (ii) BLS has delivered to the Agent consolidated financial projections of the  Parent and its Subsidiaries for the period from fiscal year 2018 through fiscal year 2020  derived from various assumptions of the Parent’s management (the “Financial  Projections”).  The Financial Projections represent a reasonable estimation of possible  results in light of the history of the business, present and foreseeable conditions and the  estimates and assumptions of the Parent’s management.  Such Financial Projections and  

 

31  CHAR1\1917164v13 the assumptions therein were, at the time made, fair; however, actual results may differ  materially from such Financial Projections.  (iii) Neither the Parent nor any Subsidiary of the Parent has any liabilities,  contingent or otherwise, or forward or long-term commitments that are not disclosed in the  Historical Statements or in the notes thereto, and except as disclosed therein there are no  unrealized or anticipated losses from any commitments of the Parent or any Subsidiary of  the Parent, in each case which would reasonably be expected to cause a Material Adverse  Effect.  From February 3, 2018 to the Fourth Amendment Closing Date, no Material  Adverse Effect has occurred.  (j) Neither the Construction Agent nor the Lessee shall use the proceeds of any Lessor  Advance for any purpose other than Property Acquisition Costs, costs incurred by the Construction  Agent to permit the acquisition, testing, engineering, installation, development, construction,  modification, design, and renovation, as applicable, of the Property (or components thereof) in  accordance with the terms of the Agency Agreement and the other Operative Agreements  (including construction of the Improvements and acquisition and installation of the Equipment) or  for the payment of Transaction Expenses, in each case which accrue prior to the Rent  Commencement Date.  (k) None of the Credit Parties or any Subsidiaries of any Credit Party engages or  intends to engage principally, or as one of its important activities, in the business of extending  credit for the purpose, immediately, incidentally or ultimately, of purchasing or carrying margin  stock (within the meaning of Regulation U, T or X as promulgated by the Board of Governors of  the Federal Reserve System).  No part of the proceeds of any Lessor Advance has been or will be  used, immediately, incidentally or ultimately, to purchase or carry any margin stock or to extend  credit to others for the purpose of purchasing or carrying any margin stock or to refund Indebtedness  originally incurred for such purpose, or for any purpose which entails a violation of or which is  inconsistent with the provisions of the regulations of the Board of Governors of the Federal Reserve  System.  None of the Credit Parties holds or intends to hold margin stock in such amounts that  more than twenty-five percent (25%) of the reasonable value of the assets of any Credit Party are  or will be represented by margin stock.  (l) Neither this Agreement nor any other Operative Agreement, nor any certificate,  statement, agreement or other documents furnished to any Financing Party in connection herewith  or therewith taken as a whole, contains any untrue statement of a material fact or omits to state a  material fact necessary in order to make the statements contained herein and therein, in light of the  circumstances under which they were made, not misleading.  There is no fact known to any Credit  Party which materially adversely affects the business, property, assets, financial condition, results  of operations or prospects of any Credit Party which has not been set forth in this Agreement,  another Operative Agreement or in the certificates, statements, agreements or other documents  furnished in writing to the Financing Parties prior to or at the date hereof in connection with the  transactions contemplated hereby.  (m) All federal, state, local and other Tax returns required to have been filed with  respect to each Credit Party have been filed, and payment or adequate provision has been made for  the payment of all Taxes, fees, assessments and other governmental charges which have or may  become due pursuant to said returns or to assessments received, except to the extent that (i) the  amount thereof is not individually or in the aggregate in an amount that would reasonably be  expected to cause a Material Adverse Effect, or (ii) such Taxes, fees, assessments and other charges  are being contested in good faith by appropriate proceedings diligently conducted and for which  

 

32  CHAR1\1917164v13 such reserves or other appropriate provisions, if any, as shall be required by GAAP shall have been  made.  (n) No consent, approval, exemption, order or authorization of, or a registration or  filing with, any Official Body or any other Person is required by any Law or any agreement in  connection with the execution, delivery and carrying out of this Agreement and the other Operative  Agreements by any Credit Party, except as listed on Schedule VI, all of which shall have been  obtained or made on or prior to the Initial Closing Date except as otherwise indicated on  Schedule VI.  (o) No event has occurred and is continuing and no condition exists or will exist after  giving effect to any Lessor Advance to be made on the date of such Lessor Advance, under or  pursuant to the Operative Agreements which constitutes an Event of Default or a Default.  None of  the Credit Parties is in violation of (i) any material term of its certificate of incorporation, bylaws,  certificate of limited partnership, partnership agreement, certificate of formation, limited liability  company agreement or other organizational documents or (ii) any material agreement or instrument  to which it is a party or by which it or any of its properties may be subject or bound where such  violation would constitute a Material Adverse Effect.  (p) Each Credit Party owns or possesses all the material patents, trademarks, service  marks, trade names, copyrights, licenses, registrations, franchises, permits and rights necessary to  own and operate its properties and to carry on its business as presently conducted and planned to  be conducted by such Credit Party, without known possible, alleged or actual conflict with the  rights of others.  (q) Schedule VII lists all insurance policies to which any Credit Party is a party, all of  which are valid and in full force and effect.  No notice has been given or claim made and no grounds  exist to cancel or avoid any of such policies or to reduce the coverage provided thereby.  Such  policies provide adequate coverage from reputable and financially sound insurers in amounts  sufficient to insure the assets and risks of each Credit Party in accordance with customary business  practice in the industry of the Credit Parties.  (r) The Credit Parties are in compliance in all material respects with all Applicable  Laws (other than labor and employment Laws which are specifically addressed in Section 6.1(v)  and Environmental Laws which are specifically addressed in Section 6.1(w)) in all jurisdictions in  which any Credit Party is presently or will be doing business except where the failure to do so  would not reasonably be expected to constitute a Material Adverse Effect.  (s) All material contracts relating to the business operations of each Credit Party,  including all employee benefit plans and Labor Contracts are valid, binding and enforceable upon  such Credit Party except as limited by bankruptcy, insolvency and general concepts of equity and  each of the other parties thereto in accordance with their respective terms, and there is no default  by such Credit Party thereunder or, to the Credit Parties’ knowledge, by any other parties thereto.   None of the Credit Parties is bound by any contractual obligation, or subject to any restriction in  any organization document, or any requirement of Law which would reasonably be expected to  result in a Material Adverse Effect or which restricts or prohibits any Credit Party from entering  into, and performing its obligations under, the transactions contemplated hereby.  For purposes of  this Section 6.1(s), the term “material contracts” shall mean those contracts or other agreements  which the Parent would be required to file with the SEC pursuant to item 601(a)(10) of Regulation  S-K promulgated under the Securities Act and the Exchange Act.  

 

33  CHAR1\1917164v13 (t) None of the Credit Parties is an “investment company” registered or required to be  registered under the Investment Company Act or under the “control” of an “investment company”  as such terms are defined in the Investment Company Act and shall not become such an “investment  company” or under such “control.”  None of the Credit Parties is subject to any other federal or  state statute or regulation limiting its ability to incur Indebtedness for borrowed money.  (u) Except as set forth on Schedule VIII:  (i) The Identified Big Lots Entities and each other member of the ERISA  Group are in compliance in all material respects with any applicable provisions of ERISA  with respect to all Benefit Arrangements and Plans.  As of the Initial Closing Date, the  Identified Big Lots Entities and each member of the ERISA Group do not have any  obligation to make contributions to any Multiemployer Plans or Multiple Employer Plans.   There has been no Prohibited Transaction with respect to any Benefit Arrangement or any  Plan or, to the best knowledge of the Identified Big Lots Entities and each member of the  ERISA Group, with respect to any Multiemployer Plan or Multiple Employer Plan, which  could result in any material liability of any Identified Big Lots Entity or any other member  of the ERISA Group.  The Identified Big Lots Entities and all other members of the ERISA  Group have made when due any and all payments required to be made under any agreement  relating to a Multiemployer Plan or a Multiple Employer Plan or any Law pertaining  thereto.  With respect to each Plan, Multiemployer Plan and Multiple Employer Plan, the  Identified Big Lots Entities and each other member of the ERISA Group (A) have fulfilled  in all material respects their obligations under the minimum funding standards of ERISA,  (B) except for required premium payments, have not incurred any liability to the PBGC,  and (C) have not had asserted against them any penalty for failure to fulfill the minimum  funding requirements of ERISA.  (ii) To the best of each Identified Big Lots Entity’s knowledge, each  Multiemployer Plan and Multiple Employer Plan is able to pay benefits thereunder when  due.  (iii) Neither an Identified Big Lots Entity nor any other member of the ERISA  Group has instituted or intends to institute proceedings to terminate any Plan.  (iv) No event requiring notice to the PBGC under Section 303(k)(4) of ERISA  has occurred or is reasonably expected to occur with respect to any Plan.  (v) With respect to each Plan and in accordance with each such Plan’s most  recent actuarial valuation report used to determine funding under Section 412 of the Code,  no Plan is in “at risk” status (as defined in Section 303(i)(4) of ERISA or Section 430(i)(4)  of the Code).  (vi) Neither an Identified Big Lots Entity nor any other member of the ERISA  Group has incurred or reasonably expects to incur any material withdrawal liability under  ERISA to any Multiemployer Plan or Multiple Employer Plan.  Neither an Identified Big  Lots Entity nor any other member of the ERISA Group has been notified by any  Multiemployer Plan or Multiple Employer Plan that such Multiemployer Plan or Multiple  Employer Plan has been terminated within the meaning of Title IV of ERISA and, to the  best knowledge of each Identified Big Lots Entity, no Multiemployer Plan or Multiple  Employer Plan is reasonably expected to be reorganized or terminated, within the meaning  of Title IV of ERISA.  

 

34  CHAR1\1917164v13 (vii) To the extent that any Benefit Arrangement is insured, the Identified Big  Lots Entities and all other members of the ERISA Group have paid when due all premiums  required to be paid for all periods through the Initial Closing Date.  To the extent that any  Benefit Arrangement is funded other than with insurance, the Identified Big Lots Entities  and all other members of the ERISA Group have made when due all contributions required  to be paid for all periods through the Initial Closing Date.  (viii) All Plans, Benefit Arrangements, Multiemployer Plans and Multiple  Employer Plans have been administered in all material respects in accordance with their  terms and Applicable Law.  (v) Each of the Credit Parties is in compliance with the Labor Contracts and all  applicable labor and employment Laws including those related to equal employment opportunity  and affirmative action, labor relations, minimum wage, overtime, child labor, medical insurance  continuation, worker adjustment and relocation notices, immigration controls and worker and  unemployment compensation, where the failure to comply would reasonably be expected to  constitute a Material Adverse Effect.  There are no outstanding grievances, arbitration awards or  appeals therefrom arising out of the Labor Contracts or current or threatened strikes, picketing,  handbilling or other work stoppages or slowdowns at facilities of any of the Credit Parties which  in any case would reasonably be expected to constitute a Material Adverse Effect.  (w) Except as disclosed on Schedule IX:  (i) None of the Credit Parties has received any material Environmental  Complaint, whether directed or issued to any Credit Party or relating or pertaining to any  predecessor of any Credit Party or to any prior owner, operator or occupant of the Credit  Party Property, and none of such Credit Parties have reason to believe that it might receive  a material Environmental Complaint.  (ii) No activity of any Credit Party at the Credit Party Property is being or has  been conducted in violation of any Environmental Law or Environmental Permit which has  caused or would reasonably be expected to cause a Material Adverse Effect and, to the  knowledge of any such Credit Party no activity of any predecessor of any Credit Party or  any prior owner, operator or occupant of the Credit Party Property was conducted in  violation of any Environmental Law which has caused or would reasonably be expected to  cause a Material Adverse Effect.  (iii) There are no Regulated Substances present on, in, under, or emanating  from, or to any Credit Party’s knowledge emanating to, the Credit Party Property or any  portion thereof which result in Contamination and which would reasonably be expected to  cause a Material Adverse Effect.  (iv) Each Credit Party has all Environmental Permits and all such  Environmental Permits are in full force and effect and each such Credit Party’s operations  at the Credit Party Property are conducted in compliance with the terms and conditions of  such Environmental Permits except to the extent that such noncompliance would not  reasonably be expected to cause a Material Adverse Effect and none of the Credit Parties  have received any written notice from an Official Body that such Official Body has or  intends to suspend, revoke or adversely alter, whether in whole or in part, any such  Environmental Permit.  

 

35  CHAR1\1917164v13 (v) Each Credit Party has submitted to an Official Body and/or maintains, as  appropriate, all material Environmental Records.  (vi) No structures, improvements, equipment, fixtures, impoundments, pits,  lagoons or aboveground or underground storage tanks located on the Credit Party Property  contain or use, except in compliance with Environmental Laws and Environmental Permits,  Regulated Substances or otherwise are operated or maintained except in compliance with  Environmental Laws and Environmental Permits unless such noncompliance would not be  reasonably expected to cause a Material Adverse Effect.  To the knowledge of each Credit  Party, no structures, improvements, equipment, fixtures, impoundments, pits, lagoons or  aboveground or underground storage tanks of prior owners, operators or occupants of the  Credit Party Property contained or used Regulated Substances, except in compliance with  Environmental Laws, Regulated Substances or otherwise were operated or maintained by  any such prior owner, operator or occupant except in compliance with Environmental Laws  unless such noncompliance would not be reasonably expected to cause a Material Adverse  Effect.  (vii) To the knowledge of each Credit Party, no facility or site to which any  such Credit Party, either directly or indirectly by a third party, has sent Regulated  Substances for storage, treatment, disposal or other management has been or is being  operated in violation of Environmental Laws except to the extent that such violation would  not reasonably be expected to cause a Material Adverse Effect.  (viii) No portion of the Credit Party Property is identified or, to the knowledge  of each Credit Party, proposed to be identified on any list of contaminated properties or  other properties which pursuant to Environmental Laws are the subject of a Remedial  Action by an Official Body or any other Person (including any such Credit Party), nor to  the knowledge of any such Credit Party is any property adjoining or in the proximity of the  Credit Party Property identified or proposed to be identified on any such list or the subject  of a Remedial Action.  (ix) No portion of the Credit Party Property constitutes an Environmentally  Sensitive Area except for those portions of the Credit Party Property constituting an  Environmentally Sensitive Area which would not reasonably be expected to result in a  Material Adverse Effect.  (x) No Lien or other material encumbrance authorized by Environmental  Laws exists against the Credit Party Property and none of the Credit Parties has any reason  to believe that such a Lien or encumbrance may be imposed.  (xi) Neither the transaction contemplated by the Operative Agreements nor any  other transaction involving the sale, transfer or exchange of the Credit Party Property will  trigger or has triggered any obligation under any applicable Environmental Laws to make  a filing, provide a notice, provide other disclosure or take any other action, or in the event  that any such transaction-triggered obligation does arise or has arisen under any applicable  Environmental Laws, all such action required thereby has been taken in compliance with  applicable Environmental Laws except to the extent that the failure to take such action in  compliance with applicable Environmental Laws would not be reasonably expected to  cause a Material Adverse Effect.  

 

36  CHAR1\1917164v13 (x) The Obligations of each Credit Party under the Operative Agreements to which it  is a party do rank and will rank at least pari passu in priority of payment with all other Indebtedness  of such Credit Party except Indebtedness of such Credit Party to the extent secured by Additional  Permitted Liens.  There is no Lien upon or with respect to any of the properties or income of any  Credit Party which secures indebtedness or other obligations of any Person except for, in the case  of such properties or income other than the Collateral, Additional Permitted Liens and, in the case  of such properties or income constituting Collateral, Permitted Liens.  (y) (i) No Covered Entity is a Sanctioned Person, and (ii) no Covered Entity, either in  its own right or through any third party, (A) has any of its assets in a Sanctioned Country or in the  possession, custody or control of a Sanctioned Person in violation of any Anti-Terrorism Law, (B)  does business in or with, or derives any of its income from investments in or transactions with, any  Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law; or (C) engages  in any dealings or transactions prohibited by any Anti-Terrorism Law. (z) [Reserved].  (aa) Each Excluded Inactive Subsidiary has no material assets or liabilities and does  not conduct business.  (bb) Upon the execution and delivery of the Lease, (i) the Lessee will have  unconditionally accepted the Property and will have a valid leasehold interest in the Property,  subject only to the Permitted Liens, and (ii) no offset will exist with respect to any Rent or other  sums payable under the Lease.  (cc) (i) The Security Documents (other than the Lease, which is referenced in  Section 6.1(cc)(ii)) create, as security for the Obligations, valid and enforceable security interests  in, and Liens on, all of the Collateral, subject only to Permitted Liens, in favor of the Agent, for the  benefit of the Secured Parties.  Upon recordation of the Mortgage Instrument in the real estate  recording office in the county or parish in which the Property is located, the Lien created by the  Mortgage Instrument in the real property described therein shall be a perfected first priority  mortgage Lien on such real property (subject only to Permitted Liens) in favor of the Agent, for the  benefit of the Secured Parties.  To the extent that the security interests in the portion of the  Collateral comprised of personal property can be perfected by filing in the filing office in the state  where the Lessee is located for purposes of the UCC, upon filing of the UCC Financing Statements  in such filing offices, the security interests created by the Security Documents (other than the Lease,  which is referenced in Section 6.1(cc)(ii)) shall be perfected first priority security interests (subject  only to Permitted Liens) in such personal property in favor of the Agent, for the benefit of the  Secured Parties; and  (ii) The Lease creates, as security for the obligations of the Lessee under the  Lease, valid and enforceable security interests in, and Liens on, the Property leased  thereunder, subject only to Permitted Liens, in favor of the Lessor.  Upon recordation of  the memorandum of the Lease (or a short form lease) and either the Deed in the real estate  recording office in the real estate recording office in the county or parish in which the  Property is located, the Lien created by the Lease in the real property described therein  shall be a perfected first priority mortgage Lien on such real property (subject only to  Permitted Liens) in favor of the Lessor, which rights pursuant to the UCC Financing  Statements are assigned to the Agent, for the benefit of the Secured Parties.  To the extent  that the security interests in the portion of the Property comprised of personal property can  be perfected by the filing in the filing office in the state where the Lessee is located for  

 

37  CHAR1\1917164v13 purposes of the UCC, upon filing of the UCC Financing Statements in such filing offices,  a security interest created by the Lease shall be a perfected first priority security interests  (subject only to Permitted Liens) in such personal property in favor of the Lessor, which  rights pursuant to the UCC Financing Statements are assigned to the Agent, for the benefit  of the Secured Parties.  (dd) The Plans and Specifications for the Property will be prepared prior to the  commencement of construction in accordance with all applicable Legal Requirements (including  all applicable Environmental Laws and building, planning, zoning and fire codes), except to the  extent the failure to comply therewith, individually or in the aggregate, shall not have and could  not reasonably be expected to have a Material Adverse Effect.  Upon completion of the  Improvements for the Property in accordance with the applicable Plans and Specifications (except  with respect to final completion matters regarding any punch list items for which the Punchlist  Advance has been made), such Improvements will be within any building restriction lines and will  not encroach in any manner onto any adjoining land (except as permitted by express written  easements or those encroachments which have been approved by the Agent).  (ee) To the best of the knowledge of the Credit Parties, all written information and  written materials which have been prepared and provided by the Credit Parties to (i) an appraiser  in connection with an Appraisal are true and accurate in all material respects on the date as of which  such written information and written materials are dated or certified, except for such inaccuracies  or misstatements which would not have a Material Adverse Effect, and are not incomplete by  omitting to state any material fact necessary to make such information (taken as a whole) not  misleading at such time in light of the circumstances under which such information was provided  and (ii) the Lessor with respect to the Property are true and accurate on the date as of which such  written information and materials are dated or certified, except such as would not have a Material  Adverse Effect.  (ff) Nothing contained in Section 11 hereof limits any payment obligations to  additional insureds or loss payees with respect to any insurance policies required to be maintained  by the Lessee pursuant to Article XIV of the Lease and amounts payable under such insurance  policies to or for the benefit of such additional insureds or loss payees are not limited by the  provisions of Section 5.4 of the Agency Agreement.  (gg) The location of the Construction Agent and the Lessee for purposes of the UCC is  the State of Ohio and, respecting the Construction Agent and the Lessee, its principal place of  business is located at 4900 E. Dublin-Granville Road, Columbus, Franklin County, OH 43081, and  its chief executive office and office where the documents, accounts and records related to the  transactions contemplated by this Agreement and each other Operative Agreement are located at  4900 E. Dublin-Granville Road, Columbus, Franklin County, OH 43081.  The Construction Agent  and the Lessee maintain a mailing address at: AVDC, LLC, c/o Big Lots, Inc., 4900 E. Dublin- Granville Road, Columbus, OH 43081.  (hh) As of the Property Closing Date, the date of each subsequent Lessor Advance and  the Rent Commencement Date only, the Property is the Permitted Facility which consists of (i)  unimproved Land, (ii) Land and existing Improvements thereon which Improvements are either  suitable for occupancy at the time of acquisition or will be renovated and/or modified in accordance  with the terms of this Agreement, and/or (iii) Equipment.  The Property is located at the location  set forth on the applicable Requisition.  

 

38  CHAR1\1917164v13 (ii) As of the Property Closing Date, the date of each subsequent Lessor Advance and  the Rent Commencement Date only, the Lessor has good and marketable legal title to the Property,  subject only to (i) such Liens referenced in Section 6.1(cc)(i) and (ii) on the Property Closing Date  and (ii) subject to Section 5.6, Permitted Liens after the Property Closing Date.  (jj) As of the Property Closing Date, the date of each subsequent Lessor Advance and  the Rent Commencement Date only, the Property complies with all Insurance Requirements and  all standards of the Lessee with respect to similar properties owned by the Lessee or Subsidiaries  (direct or indirect) or Affiliates of the Lessee.  (kk) As of the Property Closing Date, the date of each subsequent Lessor Advance and  the Rent Commencement Date only, the Property complies with all Legal Requirements as of such  date (including all zoning and land use laws and Environmental Laws), except to the extent that  failure to comply therewith, individually or in the aggregate, shall not have and could not  reasonably be expected to have a Material Adverse Effect and there is not and has not been any  Environmental Condition at the Property, except as shall not and could not reasonably be expected  to have a Material Adverse Effect.  (ll) As of the Property Closing Date, the date of each subsequent Lessor Advance and  the Rent Commencement Date only, all utility services and facilities necessary for the construction  and operation of the Improvements and the installation and operation of the Equipment regarding  the Property (including gas, electrical, water and sewage services and facilities) are available at the  Land and vehicular access to the Improvements on the Property is provided by either public right  of way abutting the Property or Appurtenant Rights, except to the extent that the non-availability  of such utility services and facilities does not have and could not reasonably be expected to have a  Material Adverse Effect, and will be constructed prior to the Completion Date.  (mm) As of the Property Closing Date, the date of each subsequent Lessor Advance and  the Rent Commencement Date only, the acquisition, installation and testing of the Equipment (if  any) and construction of the Improvements (if any) to such date shall have been performed in a  good and workmanlike manner, substantially in accordance with the applicable Plans and  Specifications, except to the extent that the failure of such performance does not have and could  not reasonably be expected to have a Material Adverse Effect.  (nn) As of the Property Closing Date, the date of each subsequent Lessor Advance and  the Rent Commencement Date only, the Property has been acquired at a price that is not in excess  of fair market value.  (oo) As of the Property Closing Date, the date of each subsequent Lessor Advance and  the Rent Commencement Date only, the Land included in the Property in respect of which a Lessor  Advance is being requested is a separate parcel for all real estate Tax and assessment purposes, and  no part of the Land is aggregated with any other parcel for such purposes.  (pp) As of the Property Closing Date and the date of each subsequent Lessor Advance,  the amount of any Lessor Advance then being requested represents an amount owed by the  Construction Agent or the Lessee in respect of Property Costs incurred prior to or as of the date of  such Lessor Advance for which, in each case, the Construction Agent or the Lessee has not  previously been reimbursed by a Lessor Advance.  

 

39  CHAR1\1917164v13 (qq) As of the Rent Commencement Date only, the Property shall be improved in  accordance with the applicable Plans and Specifications in a good and workmanlike manner and  shall be operational and a certificate of occupancy or its equivalent shall have been issued therefor.  (rr) The Equipment shall only be, but in any event shall include, all equipment,  apparatus, furnishings, fittings and other personal property (together with all replacements,  modifications, alterations and additions thereto) necessary or otherwise appropriate for use in the  physical plant of the Property and shall not in any event include any Excluded Equipment.  (ss) No Credit Party is a “covered fund” within the meaning of Section 619 of the  Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. § 1851) and the  regulations promulgated in connection therewith.  (tt) No Credit Party is an EEA Financial Institution.  6.1A Updates to Schedules.  BLS shall update the schedules listed immediately after this paragraph on the date on which the  Identified Big Lots Entities deliver each quarterly Compliance Certificate.  Provided that BLS delivers such  updates with each Compliance Certificate and that the Identified Big Lots Entities timely deliver such  Compliance Certificates, (1) any inaccuracy in such schedules between due dates for Compliance  Certificates shall not be a default hereunder, and (2) such schedules shall be deemed to be amended upon  delivery thereof.  Schedule II - Capitalization  Schedule III - Credit Parties  Schedule V - Owned Real Estate  BLS shall update the schedules listed immediately after this paragraph as soon as reasonably  practicable after receipt thereof from the insurer.  Provided that BLS delivers such updates as stated, (1)  any inaccuracy in such schedules between due dates for Compliance Certificates shall not be a default  hereunder, and (2) such schedules shall be deemed to be amended upon delivery thereof.  Schedule VII - Insurance Policies  Should any of the information or disclosures provided on any of the other Schedules attached hereto  become outdated or incorrect in any material respect, BLS shall promptly provide the Agent in writing with  such revisions or updates to such Schedule as may be necessary or appropriate to update or correct same;  provided, however, that no Schedule shall be deemed to have been amended, modified or superseded by  any such correction or update, nor shall any breach of warranty or representation resulting from the  inaccuracy or incompleteness of any such Schedule be deemed to have been cured thereby, unless and until  the Majority Secured Parties, in their sole and absolute discretion, shall have accepted in writing such  revisions or updates to such Schedule.  6.2 Representations and Warranties of the Lessor Parties. Effective as of the Initial Closing Date or the Property Closing Date, as applicable, the date of each  Lessor Advance and the Rent Commencement Date (except to the extent any representation and warranty  is otherwise specifically limited to one or more specific dates), each Lessor Party represents and warrants  

 

40  CHAR1\1917164v13 (as to itself but not as to any other Person, including any other Lessor Party) to each of the other parties  hereto that:  (a) It is an entity duly organized, validly existing and in good standing in the  jurisdiction of its formation (and as to the Lessor but not as to any other Lessor Party, the State of  California) and has the power and authority to enter into and perform its obligations under each of  the Operative Agreements to which it is or will be a party and each other agreement, instrument  and document to be executed and delivered by it on or before the Initial Closing Date and the  Property Closing Date in connection with or as contemplated by each such Operative Agreement  to which it is, or as the case may be, will be a party;  (b) The execution, delivery and performance of each Operative Agreement to which  it is or will be a party has been duly authorized by all necessary action on its part and neither the  execution and delivery thereof, nor the consummation of the transactions contemplated thereby,  nor compliance by it with any of the terms and provisions thereof (i) does or will require any  approval or consent of any holder of any of its indebtedness or obligations or any other consent or  approval by any Person that has not previously been obtained, (ii) does or will contravene any Legal  Requirement, (iii) does or will contravene or result in any breach of or constitute any default under,  or result in the creation of any Lien upon any of its property (except for the Liens created expressly  pursuant to the Security Documents) under (A) its articles of organization or other formation  documents or (B) any other agreement or instrument to which it is a property or by which it or its  properties may be bound or affected;  (c) This Agreement and the other Operative Agreements to which it is or, as the case  may be, will be a party, have been or on or before the Initial Closing Date or the Property Closing  Date, as applicable, will be, duly executed and delivered by it and constitute, or upon execution  and delivery will constitute, a legal, valid and binding obligation enforceable against it in  accordance with the terms thereof, subject to bankruptcy, insolvency, moratorium and similar laws  affecting creditors’ rights generally and general principles of equity (regardless of whether  considered in a proceeding at law or in equity);  (d) There is no action or proceeding pending or, to its knowledge, threatened to which  it is or will be a party before any Governmental Authority that, if adversely determined, would  materially and adversely affect its ability to perform its obligations under the Operative Agreements  to which it is a party or would question the validity or enforceability of any of the Operative  Agreements to which it is or will become a party;  (e) It has not assumed or transferred any of its right, title or interest in or under the  Agency Agreement, the Lease or its interest in the Property or any portion thereof, except in  accordance with the Operative Agreements;  (f) [Reserved];  (g) Except as otherwise expressly contemplated by the Operative Agreements, the  proceeds of the Lessor Advances shall not be applied by it for any purpose other than Property  Acquisition Costs, costs incurred to permit the acquisition, testing, engineering, installation,  development, construction, modification, design, and renovation, as applicable, of the Property (or  components thereof) in accordance with the terms of the Agency Agreement and the other  Operative Agreements (including construction of the Improvements and acquisition and installation  of the Equipment), in each case, which accrue prior to the Rent Commencement Date;  

 

41  CHAR1\1917164v13 (h) Neither it nor any Person authorized by it to act on its behalf has offered any  security relating to the Property, or any security the offering of which for the purposes of the  Securities Act would be deemed to be part of the same offering as the offering of the  aforementioned securities to, or solicited any offer to acquire any of the same from, any Person,  and neither it nor any Person authorized by it to act on its behalf will take any action which would  subject, as a direct result of such action alone, the issuance or sale of any of the aforementioned  securities to the provisions of Section 5 of the Securities Act or require the qualification of any  Operative Agreement under the Trust Indenture Act of 1939, as amended;  (i) [Reserved];  (j) It is not engaged principally in, and does not have as one (1) of its important  activities, the business of extending credit for the purpose of purchasing or carrying any margin  stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve  System of the United States), and no part of the proceeds of the Lessor Advances will be used by  it to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing  or carrying any such margin stock or for any purpose that violates, or is inconsistent with, the  provisions of Regulations  T, U, or X of the Board of Governors of the Federal Reserve System of  the United States;  (k) It is not itself, nor is it controlled by, an “investment company” registered or  required to be registered under the Investment Company Act; and  (l) The Property is free and clear of all Lessor Liens attributable to it.  SECTION 6B.  GUARANTY  6B.1 Guaranty of Payment and Performance. Subject to Section 6B.7, the Guarantors hereby unconditionally guarantee to each Financing Party  the prompt payment and performance of the Obligations in full when due (whether at stated maturity, as a  mandatory repayment or prepayment, by acceleration or otherwise) or when such is otherwise to be  performed.  This Section 6B is a guaranty of payment and performance and not of collection and is a  continuing guaranty and shall apply to all Obligations whenever arising.  6B.2 Obligations Unconditional. The Guarantors agree that the obligations of the Guarantors hereunder are joint and several,  absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of  any of the Operative Agreements, or any other agreement or instrument referred to therein, or any  substitution, release or exchange of any other guarantee of or security for any of the Obligations, and, to  the fullest extent permitted by Applicable Law, irrespective of any other circumstance whatsoever which  might otherwise constitute a legal or equitable discharge or defense of a surety, guarantor or co-obligor, it  being the intent of this Section 6B.2 that the obligations of the Guarantors hereunder shall be absolute and  unconditional under any and all circumstances.  The Guarantors agree that this Section 6B may be enforced  by any Financing Party without the necessity at any time of resorting to or exhausting any other security or  collateral and without the necessity at any time of having recourse to any of the Operative Agreements or  any collateral, if any, hereafter securing the Obligations or otherwise and the Guarantors hereby waive the  right to require the Financing Parties to proceed against the Construction Agent, the Lessee or any other  Person (including a co-guarantor) or to require the Financing Parties to pursue any other remedy or enforce  

 

42  CHAR1\1917164v13 any other right.  The Guarantors further agree that each Guarantor hereby waives any and all right of  subrogation, indemnity, reimbursement or contribution against the Construction Agent, the Lessee or any  other guarantor of the Obligations for amounts paid under this Section 6B until such time as the Lessor  Advances, accrued but unpaid Lessor Yield and all other amounts owing under the Operative Agreements  have been paid in full.  Without limiting the generality of the waiver provisions of this Section 6B, the  Guarantors hereby waive any rights to require the Financing Parties to proceed against the Construction  Agent, the Lessee or any co-guarantor or to require the Lessor to pursue any other remedy or enforce any  other right, including any and all rights under N.C. Gen. Stat. § 26-7 through 26-9, or any similar statute.   Additionally, the Guarantors hereby waive any rights and defenses that are or may become available to any  of them by reason of §§ 2787 to 2855, inclusive, and §§ 2899 and 3433 of the California Civil Code.  The  foregoing waivers and the provisions otherwise set forth in this Section 6B which pertain to North Carolina  law or to California law are included solely out of an abundance of caution, and shall not be construed to  mean that any such provisions of North Carolina law or California law are in any way applicable to this  Section 6B or the Obligations.  The Guarantors further agree that nothing contained in this Section 6B shall  prevent the Financing Parties from suing on any Operative Agreement or foreclosing any security interest  in or Lien on any Collateral, if any, securing the Obligations or from exercising any other rights available  to it under any Operative Agreement, or any other instrument of security, if any, and the exercise of any of  the aforesaid rights and the completion of any foreclosure proceedings shall not constitute a discharge of  the obligations of the Guarantors hereunder; it being the purpose and intent of the Guarantors that the  obligations of the Guarantors hereunder shall be absolute, independent and unconditional under any and all  circumstances; provided, that any amounts due under this Section 6B which are paid to or for the benefit of  any Financing Party shall reduce the Obligations by a corresponding amount (unless required to be  rescinded at a later date).  Neither the obligations of the Guarantors under this Section 6B nor any remedy  for the enforcement thereof shall be impaired, modified, changed or released in any manner whatsoever by  an impairment, modification, change, release or limitation of the liability of any other Credit Party or by  reason of the bankruptcy or insolvency of any other Credit Party.  The Guarantors waive any and all notice  of the creation, renewal, extension or accrual of any of the Obligations and notice of or proof of reliance by  any Financing Party upon this Section 6B or acceptance of this Section 6B.  The Obligations shall  conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or  waived, in reliance upon this Section 6B.  All dealings between the Credit Parties, on the one hand, and the  Financing Parties, on the other hand, likewise shall be conclusively presumed to have been had or  consummated in reliance upon this Section 6B.  6B.3 Modifications. The Guarantors agree that (a) all or any part of the security now or hereafter held for the  Obligations, if any, may be exchanged, compromised or surrendered from time to time; (b) no Financing  Party shall have any obligation to protect, perfect, secure or insure any such security interests, Liens or  encumbrances now or hereafter held, if any, for the Obligations or the properties subject thereto; (c) the  time or place of payment of the Obligations may be changed or extended, in whole or in part, to a time  certain or otherwise, and may be renewed or accelerated, in whole or in part; (d) the Construction Agent,  the Lessee and any other party liable for payment under the Operative Agreements may be granted  indulgences generally; (e) any of the provisions of any Operative Agreements may be modified, amended  or waived; (f) any party (including any co-guarantor) liable for the payment thereof may be granted  indulgences or be released; and (g) any deposit balance for the credit of the Construction Agent, the Lessee  or any other party liable for the payment of the Obligations or liable upon any security therefor may be  released, in whole or in part, at, before or after the stated, extended or accelerated maturity of the  Obligations, all without notice to or further assent by the Guarantor, which shall remain bound thereon,  notwithstanding any such exchange, compromise, surrender, extension, renewal, acceleration,  modification, indulgence or release.  

 

43  CHAR1\1917164v13 6B.4 Waiver of Rights. The Guarantors expressly waive to the fullest extent permitted by Applicable Law:  (a) notice of  acceptance of this Section 6B by any Financing Party and of all extensions of credit or other Lessor  Advances by the Lessor Parties pursuant to the terms of the Operative Agreements; (b) presentment and  demand for payment or performance of any of the Obligations; (c) protest and notice of dishonor or of  default with respect to the Obligations or with respect to any security therefor; (d) notice of any Financing  Party obtaining, amending, substituting for, releasing, waiving or modifying any security interest, Lien or  encumbrance, if any, hereafter securing the Obligations, or any Financing Party’s subordinating,  compromising, discharging or releasing such security interests, Liens or encumbrances, if any; (e) all other  notices to which the Guarantors might otherwise be entitled; and (f) the right to seek through any means to  have the obligations of the Guarantors under this Section 6B adjudicated invalid or unenforceable.   Notwithstanding anything to the contrary herein, (i) payments from the Guarantors hereunder shall be due  two (2) Business Days after written demand by any Financing Party for such payment (unless the  Obligations are automatically accelerated pursuant to the applicable provisions of the Operative  Agreements in which case payments from the Guarantors shall be automatically due) and (ii) any  modification of the Operative Agreements which has the effect of increasing the Obligations shall not be  enforceable against the Guarantors unless the Guarantors execute the document evidencing such  modification or otherwise reaffirm their guaranty in writing in connection with such modification.  6B.5 Reinstatement. The obligations of the Guarantors under this Section 6B shall be automatically reinstated if and to  the extent that for any reason any payment by or on behalf of any Person in respect of the Obligations is  rescinded or must be otherwise restored by any holder of any of the Obligations, whether as a result of any  proceedings in bankruptcy or reorganization or otherwise, and the Guarantors agree that the Guarantors  will indemnify each Financing Party on demand for all reasonable costs and expenses (including reasonable  fees of counsel) incurred by any Financing Party in connection with such rescission or restoration, including  any such costs and expenses incurred in defending against any claim alleging that such payment constituted  a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.  6B.6 Remedies. The Guarantors agree that, as between the Guarantors, on the one hand, and each Financing Party,  on the other hand, the Obligations may be declared to be forthwith due and payable as provided in the  applicable provisions of the Operative Agreements (and shall be deemed to have become automatically due  and payable in the circumstances provided therein) notwithstanding any stay, injunction or other prohibition  preventing such declaration (or preventing such Obligations from becoming automatically due and payable)  as against any other Person and that, in the event of such declaration (or such Obligations being deemed to  have become automatically due and payable), such Obligations (whether or not due and payable by any  other Person) shall forthwith become due and payable by the Guarantors in accordance with the applicable  provisions of the Operative Agreements.  6B.7 Limitation of Guaranty. Notwithstanding any provision to the contrary contained herein or in any of the other Operative  Agreements (but subject to Section 6B.4(f)), to the extent the obligations of the Guarantors shall be  adjudicated to be invalid or unenforceable for any reason (including because of any applicable state or  federal law relating to fraudulent conveyances or transfers) then the obligations of the Guarantors hereunder  shall be limited to the maximum amount that is permissible under Applicable Law (whether federal or state  

 

44  CHAR1\1917164v13 and including the Bankruptcy Code).  This paragraph shall not apply to any Guarantor that is the direct or  indirect owner of 100% of the equity interest in the Lessee.  Subject to Section 6B.5, upon the indefeasible satisfaction of the Obligations in full, regardless of  the source of payment, the obligations of the Guarantors hereunder shall be deemed satisfied, discharged  and terminated other than indemnifications set forth herein that expressly survive.  6B.8 Payment of Amounts to the Agent. Each Financing Party hereby instructs the Guarantors, and the Guarantors hereby acknowledge and  agree, that until such time as the Lessor Advances are paid in full and the Liens evidenced by the Security  Documents have been released, any and all Rent (excluding Excepted Payments which shall be payable to  the Lessor or other Person as appropriate) and any and all other amounts of any kind or type under any of  the Operative Agreements due and owing or payable to any Financing Party shall instead be paid directly  to the Agent (excluding Excepted Payments which shall be payable to the Lessor or other Person as  appropriate) or as the Agent may direct from time to time for allocation and distribution in accordance with  the procedures set forth in Section 8.7 hereof.  6B.9 Joinder of Guarantors. Any Subsidiary of the Parent which is required to join this Agreement as a Guarantor pursuant to  Section 8.3B(h) and which has not yet done so shall execute and deliver to the Agent (a) a Guarantor Joinder  in substantially the form attached hereto as EXHIBIT H pursuant to which it shall join as a Guarantor each  of the documents to which the Guarantors are parties; and (b) documents in the forms described in  Sections 5.3(t), 5.3(u) and 5.3(y) modified as appropriate to relate to such Subsidiary.  The Credit Parties  shall deliver such Guarantor Joinder and related documents to the Agent within thirty (30) Business Days  after the date of (x) the filing of such Subsidiary’s articles of incorporation or other similar formation  document if the Subsidiary is a corporation, (y) the filing of its certificate of limited partnership or other  similar formation document, if the Subsidiary is a limited partnership or (z) the filing of the applicable  formation document, if the Subsidiary is an entity other than a corporation or limited partnership.  6B.10 Additional Waivers and Provisions. (a) The Guarantors understand, acknowledge and agree that if the Secured Parties  foreclose judicially or nonjudicially against any real property security for the Obligations and/or  the Obligations, that foreclosure could impair or destroy any ability that any such Guarantor may  have to seek reimbursement, contribution, or indemnification from any applicable Person based on  any right such Guarantor may have of subrogation, reimbursement, contribution, or indemnification  for any amounts paid by such Guarantor hereunder, including by reason of Sections 2787 through  2855 of the California Civil Code.  The Guarantors further understand and acknowledge that in the  absence of this paragraph, such potential impairment or destruction of the Guarantors’ rights, if  any, may entitle the Guarantors, or any of them, to assert a defense to its guaranty obligations under  this Section 6B based on Section 580d of the California Code of Civil Procedure as interpreted in  Union Bank v. Gradsky, 265 Cal. App. 2d 40 (1968).  By executing this Agreement, each Guarantor  freely, irrevocably, and unconditionally:  (i) waives and relinquishes that defense and agrees that it  will be fully liable under this Agreement even though the Secured Parties may foreclose, either by  judicial foreclosure or by exercise of power of sale, any deed of trust securing the Obligations  and/or the Obligations; (ii) agrees that it will not assert that defense in any action or proceeding  which the Secured Parties may commence to enforce this Section 6B; (iii) acknowledges and agrees  that the rights and defenses waived by such Guarantor in this Section 6B include any right or  defense that it may have or be entitled to assert based upon or arising out of any one or more of §§  

 

45  CHAR1\1917164v13 580a, 580b, 580d, or 726 of the California Code of Civil Procedure or § 2848 of the California  Civil Code; and (iv) acknowledges and agrees that the Secured Parties are relying on this waiver in  creating the Obligations and the Obligations, and that this waiver is a material part of the  consideration which the Secured Parties are receiving for creating the Obligations and the  Obligations.  (b) The Guarantors waive all rights and defenses that any of them may have because  any of the Obligations or the Obligations is secured by real property.  This means, among other  things:  (i) the Secured Parties may collect from any Guarantor without first foreclosing on any real  or personal property collateral pledged by the Lessor or the Lessee; and (ii) if the Secured Parties  foreclose on any real property collateral pledged by the Lessor or the Lessee:  (A) the amount of  the Obligations and the Obligations may be reduced only by the price for which that collateral is  sold at the foreclosure sale, even if the collateral is worth more than the sale price, and (B) the  Secured Parties may collect from any Guarantor even if the Secured Parties, by foreclosing on the  real property collateral, have destroyed any right such Guarantor may have to collect from the  Lessor or the Lessee.  This is an unconditional and irrevocable waiver of any rights and defenses  the Guarantors may have because any of the Obligations or the Obligations is secured by real  property.  These rights and defenses include any rights or defenses based upon § 580a, 580b, 580d,  or 726 of the California Code of Civil Procedure.  (c) The Guarantors waive any right or defense any of them may have at law or equity,  including California Code of Civil Procedure § 580a, to a fair market value hearing or action to  determine a deficiency judgment after a foreclosure.  6B.11 Representations; Separateness. Each Guarantor represents, warrants and covenants that, except as permitted under Sections 8.3B  and 10.1, (a) it does not have and will not acquire any direct ownership interest in the Property or any  portion thereof, and (b) it will not merge or consolidate with the Construction Agent, the Lessee or the  Lessor.  SECTION 7.  PAYMENT OF CERTAIN EXPENSES.  7.1 Transaction Expenses. (a) The Lessor Parties agree on the Initial Closing Date, to pay, or cause to be paid,  all Transaction Expenses arising from the Initial Closing Date, including all reasonable fees,  expenses and disbursements of the various legal counsels for the Credit Parties, the Lessor and the  Agent in connection with the transactions contemplated by the Operative Agreements and incurred  in connection with the Initial Closing Date, all fees, Taxes and expenses for the recording,  registration and filing of such documents and in any event all such Taxes, fees and other charges  in connection with any and all UCC financing statements and fixture filings and all other reasonable  fees, expenses and disbursements incurred in connection with the Initial Closing Date; provided,  however, the Lessor Parties shall be obligated to pay such amounts described in this Section 7.1(a)  only to the extent of the amount of the funds made available by the Lessor Parties as part of the  Lessor Advances without regard to whether such amounts are referenced in any Requisition.  On  the Initial Closing Date after satisfaction of the conditions precedent for such date, the Lessor  Parties shall make Lessor Advances sufficient in the aggregate to pay for the Transaction Expenses  referenced in this Section 7.1(a).  The Lessee shall pay all such amounts if not paid by the Lessor  Parties. 

 

46  CHAR1\1917164v13 (b) Assuming no Default or Event of Default shall have occurred and be continuing,  the Lessor Parties agree on the Property Closing Date, the date of each Construction Advance and  on the Completion Date to pay, or cause to be paid, all Transaction Expenses including all Fees, all  other reasonable fees, expenses and disbursements of the various legal counsels for the Credit  Parties, the Lessor and the Agent in connection with the transactions contemplated by the Operative  Agreements and billed in connection with the Property Closing Date, date of Construction Advance  or the Completion Date, all amounts described in Section 7.1(a) of this Agreement which have not  been previously paid, all fees, expenses and disbursements incurred with respect to the various  items referenced in Sections 5.3 and/or 5.4 (including any premiums for title insurance policies and  charges for any updates to such policies) and all other fees, expenses and disbursements in  connection with the Property Closing Date, date of Construction Advance or Completion Date,  including all expenses relating to and all fees, Taxes and expenses for the recording, registration  and filing of such documents and in any event all such Taxes, fees and other charges in connection  with any and all UCC financing statements and fixture filings; provided, however, the Lessor  Parties shall be obligated to pay such amounts described in this Section 7.1(b) only to the extent of  the amount of funds made available by the Lessor Parties as part of the Lessor Advances and  without regard to whether such amounts are referenced in any Requisition.  On the Property Closing  Date, on the date of any Construction Advance and on the Completion Date, after satisfaction of  the conditions precedent for such date, the Lessor Parties shall make Lessor Advances sufficient in  the aggregate to pay for the Transaction Expenses referenced in this Section 7.1(b).  The Lessee  shall pay all such amounts if not paid by the Lessor Parties. 7.2 Fee Calculation. All fees payable pursuant to the Operative Agreements shall be calculated on the basis of a year of  three hundred sixty (360) days for the actual days elapsed.  7.3 Certain Fees and Expenses. Subject to Sections 7.1(a) and 7.1(b), the Lessee agrees to pay or cause to be paid (a) all reasonable  fees, costs and expenses incurred by the Credit Parties or the Agent, including all reasonable fees, expenses  and disbursements of the various legal counsels for the Credit Parties or the Agent, in entering into any  future Operative Agreements or any future amendments, modifications, supplements, restatements and/or  replacements with respect to any of the Operative Agreements, whether or not such future Operative  Agreements or future amendments, modifications, supplements, restatements and/or replacements are  ultimately entered into, or giving or withholding of waivers of consents hereto or thereto, which have been  requested by the Credit Parties or the Agent, (b) all fees, costs and expenses (including reasonable fees and  expenses of counsel) incurred by the Credit Parties, the Agent or the Lessor Parties in connection with any  exercise of remedies under any Operative Agreement following the occurrence and continuance of an Event  of Default and (c) all reasonable fees, costs and expenses (including fees and expenses of counsel) incurred  by the Credit Parties, the Agent or the Lessor Parties in connection with (i) any transfer or conveyance of  the Property, whether or not such transfer or conveyance is ultimately accomplished and (ii) the matters  described in Section 5A.7; provided further, however, that the Lessee shall only be responsible for the  reasonable documented out-of-pocket fees and disbursements of one primary counsel to the Agent (and, if  reasonably necessary, one regulatory counsel and one local counsel in each jurisdiction the laws of which  govern any of the Operative Agreements or in which the Lessee is organized or owns property or assets).  7.4 Lessor Parties Unused Fee.  Subject to Sections 7.1(a) and 7.1(b), during the Commitment Period, the Lessee agrees to pay or  to cause to be paid to the Agent monthly on the last Business Day of each calendar month or such other  

 

47  CHAR1\1917164v13 date as agreed with the Agent for the account of the Lessor Parties an unused fee (the “Lessor Parties  Unused Fee”), calculated as the Available Lessor Parties Commitment multiplied by the Applicable  Percentage allocated by the Agent ratably among the Lessor Parties.  Notwithstanding the foregoing provisions of this Section 7.4:  (a) No Defaulting Lessor Party shall be entitled to receive any Lessor Parties Unused  Fee for any period during which that Lessor Party is a Defaulting Lessor Party (and the Lessee shall  not be required to pay or to cause to be paid any such fee that otherwise would have been required  to have been paid to that Defaulting Lessor Party).  (b) With respect to any Lessor Parties Unused Fee payable to any Defaulting Lessor  Party pursuant to the first paragraph of this Section 7.4 (which is to be withheld from any Defaulting  Lessor Party pursuant to the foregoing subsection (a)), (i) the Lessee agrees to pay, or to cause to  be paid, to each Non-Defaulting Lessor Party that portion of any such fee otherwise payable to the  Defaulting Lessor Party with respect to the Defaulting Lessor Party’s Lessor Advance that have  been reallocated to a Non-Defaulting Lessor Party pursuant to Section 5A.1(e)(i)(C), and (ii) the  Lessee shall not be required to pay, or cause to be paid, the remaining amount of any such fee.  7.5 Lessor Parties Upfront Fee.  Subject to Section 7.1(a), on the Initial Closing Date, the Lessee shall pay or cause to be paid to the  Agent (a) for the account of the Lessor Parties an upfront fee (the “Lessor Parties Upfront Fee”), on the  terms and conditions set forth in the Engagement Letter.  7.6 Administrative Agency Fee.  Subject to Sections 7.1(a) and 7.1(b), the Lessee shall pay or cause to be paid to the Agent, for the  account of the Agent, an administrative agency fee (the “Administrative Agency Fee”), on the terms and  conditions set forth in the Engagement Letter.  7.7 Structuring Fee.  Subject to Section 7.1(a), on the Initial Closing Date, the Lessee shall pay or cause to be paid a  structuring fee (the “Structuring Fee”) to the Agent for the benefit of Wells Fargo Securities, LLC (for its  individual account) on the terms and conditions set forth in the Engagement Letter.  SECTION 8.  OTHER COVENANTS AND AGREEMENTS.  8.1 Cooperation with the Lessee. The Lessor Parties and the Agent shall, at the expense of and to the extent reasonably requested by  the Lessee (but without assuming additional liabilities on account thereof and only to the extent such is  acceptable to the Lessor Parties and the Agent in their reasonable discretion), cooperate with the Lessee in  connection with the Lessee satisfying its covenant obligations contained in the Operative Agreements  including at any time and from time to time, promptly and duly executing and delivering any and all such  further instruments, documents and financing statements (and continuation statements related thereto).  

 

48  CHAR1\1917164v13 8.2 Covenants of the Lessor Parties. Each Lessor Party hereby agrees (as to itself but not as to any other Person, including any other  Lessor Party) that so long as this Agreement is in effect:  (a) It will not create or permit to exist at any time, and it will, at its own cost and  expense, promptly take such action as may be necessary duly to discharge, or to cause to be  discharged, all Lessor Liens attributable to it on the Property and the other Collateral; provided,  however, that it shall not be required to so discharge any such Lessor Lien while the same is being  contested in good faith by appropriate proceedings diligently prosecuted so long as such  proceedings shall not materially and adversely affect the rights of the Lessee under the Lease and  the other Operative Agreements or involve any material danger of impairment of the Liens of the  Security Documents or of the sale, forfeiture or loss of, and shall not interfere with the use or  disposition of, the Property or title thereto or any interest therein or the payment of Rent; (b) [Reserved]; (c) The Lessor shall take or refrain from taking such actions and grant or refrain from  granting such approvals with respect to the Property and/or with respect to the election and  enforcement of remedies regarding any Event of Default, in each case as directed in writing by the  Agent in accordance with the Operative Agreements (as determined by the Majority Secured  Parties, subject to the provisions of any applicable agreements among the Lessor Parties pursuant  to the Operative Agreements) or, in connection with Section 8.5, the Construction Agent or the  Lessee; provided, however, that notwithstanding the foregoing provisions of this subparagraph (c),  (i) the Lessor shall retain its right as a Lessor Party to vote on each Unanimous Vote Matter or  matters for which its consent is required pursuant to Section 8.6, in each case, in its sole discretion  and without regard to any direction from any other Financing Party, any Credit Party or any other  Person and (ii) the Lessor shall retain its rights in the Excepted Payments and any and all other  rights expressly reserved by it under the Operative Agreements; and (d) Within ten (10) days following receipt by Lessor from Lessee of a request  delivered in accordance with Section 12.2, Lessor shall provide to Lessee a Lessor Confirmation  Letter; provided, Lessor shall have no obligation to provide any Lessor Confirmation Letter more  frequently than once each calendar quarter; provided, further, that if there have been any changes  to the factual matters set forth in the Lessor Confirmation Letter or the financial accounting  standards referenced therein that bear on the conclusions set forth therein, such letter shall set forth  the analysis based on such changed factual matters or financial accounting standards.  The parties  hereto agree that the Credit Parties and their auditors are the sole beneficiaries of the matters  addressed in this Section 8.2(d). 8.3 Credit Party Covenants, Consent and Acknowledgment. The Credit Parties, jointly and severally, covenant and agree that until Payment in Full, the  Credit Parties shall comply at all times with the following covenants: (a) Each Credit Party shall, to the extent reasonably requested by any of the other  parties hereto, cooperate with the other parties in accordance with Section 12.11 hereof. (b) Each Lessor Party hereby instructs each Credit Party, and each Credit Party hereby  acknowledges and agrees, that until such time as the Lessor Advances are paid in full and the Liens  evidenced by the Security Documents have been released (i) any and all Rent (excluding Excepted  

 

49  CHAR1\1917164v13 Payments which shall be payable to the Lessor Party or other Person as appropriate) and any and  all other amounts of any kind or type under any of the Operative Agreements due and owing or  payable by any Credit Party to any Lessor Party (including pursuant to Section 5.3(c) of the Agency  Agreement and Section 17.6(c) of the Lease) shall instead be paid directly to the Agent (excluding  Excepted Payments which shall be payable to the Lessor Party or other Person as appropriate) or  as the Agent may direct from time to time for allocation and distribution in accordance with the  procedures set forth in Section 8.7 hereof, (ii) all rights of the Lessor Parties under the Lease  (except in respect of Excepted Payments and as provided in Section 12.4) shall be exercised by the  Agent and (iii) each Credit Party shall cause all notices, certificates, financial statements,  communications and other information which are delivered, or are required to be delivered, to any  Lessor Party, to also be delivered at the same time to the Agent. (c) No Credit Party shall consent to or permit any amendment, supplement or other  modification of the terms or provisions of any Operative Agreement except in accordance with  Section 12.4 of this Agreement.  (d) From and after the Rent Commencement Date, the Lessee hereby covenants and  agrees to reimburse the Agent for any Appraisal or reappraisal (in form and substance satisfactory  to the Agent and from an appraiser selected by the Agent) to be issued respecting the Property as  requested by the Agent from time to time (i) at each and every time as such shall be required to  satisfy any regulatory requirements imposed on the Agent and/or any Lessor Party and (ii) after the  occurrence and continuance of an Event of Default.  To the extent any such Appraisal or reappraisal  is deemed necessary by the Agent prior to the Rent Commencement Date, such shall be paid for as  a Transaction Expense.  (e) Each Credit Party hereby covenants and agrees that, except for amounts payable  as Basic Rent, any and all payment obligations owing from time to time under the Operative  Agreements by any Person to any Financing Party or any other Person shall (without further action)  be deemed to be Supplemental Rent obligations payable by the Lessee and guaranteed by the  Guarantors, which is subject to the funding requirements described in this Agreement prior to the  Rent Commencement Date.  Without limitation, such obligations of the Credit Parties shall include  the Transaction Expenses.  (f) At any time the Lessor or the Agent is entitled under the Operative Agreements to  possession of the Property or any component thereof, each of the Construction Agent and the  Lessee hereby covenants and agrees, at its own cost and expense, to assemble the Equipment and  make the same available to the Agent (on behalf of the Lessor) at the Property.  (g) Each of the Construction Agent and the Lessee hereby covenants and agrees that  (i) each Indemnified Person will, at all times, be covered to the extent so provided in Article XIV  of the Lease, as additional insured or loss payee, as the case may be, under the insurance policies  required to be maintained by the Construction Agent or the Lessee pursuant to Section 2.6(e) of the  Agency Agreement and Article XIV of the Lease, or pursuant to the insurance policies that the  Construction Agent or the Lessee requires any relevant contractor or subcontractor to carry, for any  Claim arising out of the acts or omissions of any of the contractors or subcontractors of the  Construction Agent or the Lessee and (ii) each insurance policy that is carried by the Construction  Agent or the Lessee pursuant to the Agency Agreement or the Lease (A) shall at all times contain  a waiver of subrogation clause pursuant to which the relevant insurers waive any and all rights to  make any claim against any such additional insured or loss payee with respect to any payments  made, or any obligation of such insureds under, any such policy and (B) shall at all times cover  each such additional insured or loss payee for any and all Claims relating to the Property or the  

 

50  CHAR1\1917164v13 transactions contemplated by the Operative Agreements.  The Construction Agent and the Lessee  will be liable to each such additional insured or loss payee, on a full recourse basis, for any breach  of the foregoing covenants and agreements.  (h) The Lessee hereby covenants and agrees that as of the Completion, the Property  shall be the Permitted Facility.  (i) The Lessee hereby covenants and agrees that it shall give prompt notice to the  Agent if the location of the Lessee for purposes of the UCC shall cease to be in the State of Ohio,  if the Lessee’s principal place of business shall cease to be located at 4900 E. Dublin-Granville  Road, Columbus, Franklin County, OH 43081 or if the Lessee’s chief executive office or office  where the records concerning the account or contract rights relating to the Property are kept shall  cease to be located at 4900 E. Dublin-Granville Road, Columbus, Franklin County, OH 43081 or  if it shall change its name.  The Lessee shall at all times maintain a mailing address at: AVDC,  LLC, c/o Big Lots, Inc., 4900 E. Dublin-Granville Road, Columbus, OH 43081.  (j) The Lessee hereby covenants and agrees that the rights of the Lessee under this  Agreement and under the Lease shall not impair or in any way diminish the obligations of the  Construction Agent and/or the rights of the Lessor under the Agency Agreement.  (k) Each Credit Party shall promptly notify the Agent, or cause the Agent to be  promptly notified, upon a Responsible Officer of such Credit Party gaining knowledge of the  occurrence of any Default or Event of Default (whether material or not) which is continuing at such  time.  In any event, such notice shall be provided to the Agent within ten (10) days of when such  Credit Party gains such knowledge.  (l) The Lessee shall cause all financing statements and continuation statements and  any other necessary documents covering the right, title and interest of the Agent as agent for the  Secured Parties with regard to the Collateral to be promptly produced, to be submitted to the Agent  for review and after confirmation thereof by the Agent, to be filed for recordation in such manner  and in such places as may be required by law fully to preserve and protect the right, title and interest  of the Agent as agent for the Secured Parties hereunder to all property comprising the Collateral.   The Lessee shall deliver to the Agent file-stamped copies of, or filing receipts for, any document  recorded, registered or filed as provided above, as soon as available following such recording,  registration or filing.  The Lessor shall cooperate fully with the Lessee in connection with the  obligations of the Lessee set forth above and will execute or cause the execution (at the expense of  the Lessee, which the Lessee agrees to pay) of any and all documents reasonably required to fulfill  the intent of this Section 8.3(l).  (m) Each Credit Party acknowledges and agrees that such Credit Party shall at no time  be an EEA Financial Institution.  (n) The Lessee covenants and agrees to deliver to the Agent, on or before the  Commencement Date, the Lease and a memorandum thereof (or short form lease) (such  memorandum or short form lease to be in the form attached to the Lease as Exhibit B or in such  other form as is acceptable to the Agent, with modifications as necessary to conform to applicable  state law, and in form suitable for recording).  (o) In addition to, and not in limitation of, the requirements of Article XIV of the  Lease, Lessee will maintain insurance against loss or damage which to the Lessee’s knowledge is  similar to the kinds and in the amounts customarily maintained by corporations engaged in the same  

 

51  CHAR1\1917164v13 or similar businesses and which are similarly situated to the Lessee, the failure of which would be  reasonably likely to have a Material Adverse Effect.  8.3A Additional Credit Party Affirmative Covenants.  The Credit Parties, jointly and severally, covenant and agree that until Payment in Full, the Credit  Parties shall comply at all times with the following affirmative covenants:  (a) Each Credit Party shall maintain its legal existence as a corporation, limited  partnership or limited liability company and its license or qualification and good standing in each  jurisdiction in which its ownership or lease of property or the nature of its business makes such  license or qualification necessary, except to the extent that the failure to be so qualified, licensed  or in good standing would not be reasonably likely to cause a Material Adverse Effect and as  otherwise permitted in Section 8.3B(e) or Section 10.1.  (b) Each Credit Party shall, and shall cause each of its Subsidiaries to, duly pay and  discharge all liabilities to which it is subject or which are asserted against it, promptly as and when  the same shall become due and payable, including all Taxes, assessments and governmental charges  upon it or any of its properties, assets, income or profits, prior to the date on which penalties attach  thereto, except to the extent that such liabilities, including Taxes, assessments or charges, are being  contested in good faith and by appropriate and lawful proceedings diligently conducted and for  which such reserve or other appropriate provisions, if any, as shall be required by GAAP shall have  been made, but only to the extent that failure to discharge any such liabilities would not result in a  Material Adverse Effect, provided that the Credit Parties and their Subsidiaries will pay all such  liabilities forthwith upon the commencement of proceedings to foreclose any Lien which may have  attached as security therefor.  (c) Each Credit Party shall, and shall cause each Excluded Active Subsidiary to, insure  its properties and assets against loss or damage by fire and such other insurable hazards as such  assets are commonly insured (including fire, extended coverage, property damage, workers’  compensation, public liability and business interruption insurance) and against other risks  (including errors and omissions) in such amounts as similar properties and assets are insured by  prudent companies in similar circumstances carrying on similar businesses, and with reputable and  financially sound insurers, including self-insurance to the extent customary, all as reasonably  determined by the Agent.  At the request of the Agent, the Credit Parties shall deliver to the Agent  (i) on the Initial Closing Date and annually thereafter a certificate of insurance signed by the Credit  Parties’ independent insurance broker describing and certifying as to the existence of the insurance  required to be maintained by this Agreement and the other Operative Agreements, and (ii) from  time to time a summary schedule indicating all insurance then in force with respect to each of the  Credit Parties.  (d) Each Credit Party shall, and shall cause each Excluded Active Subsidiary to,  maintain in good repair, working order and condition (ordinary wear and tear excepted) in  accordance with the general practice of other businesses of similar character and size, all of those  material properties useful or necessary to its business, and from time to time, such Credit Party will  make or cause to be made all appropriate repairs, renewals or replacements thereof to the extent  that a failure to make such repairs, renewals or replacements would be reasonably expected to cause  a Material Adverse Effect.  (e) Each Credit Party shall, and shall cause each Excluded Active Subsidiary to,  maintain in full force and effect all patents, trademarks, service marks, trade names, copyrights,  

 

52  CHAR1\1917164v13 licenses, franchises, permits and other intellectual property and authorizations necessary for the  ownership and operation of its properties and business if the failure so to maintain the same would  constitute a Material Adverse Effect.  (f) Each Credit Party shall permit any of the officers or authorized employees or  representatives of any Financing Party to visit, no more than twice per year (unless an Event of  Default has occurred and is continuing), during normal business hours and inspect any of its  properties and to examine and make excerpts from its books and records and discuss its business  affairs, finances and accounts with its officers, all in such detail and at such times and as often as  any Lessor Party may reasonably request, provided that each Lessor Party shall provide the Lessee  and the Agent with reasonable notice prior to any visit or inspection; provided, further, that such  visit or inspection shall be conducted during normal business hours and shall not unreasonably  interfere with the business or operations of the applicable Credit Party and all information obtained  or observed during such visit or inspection shall be subject to the confidentiality obligations in  Section 12.13.  In the event any Lessor Party desires to visit and inspect any Credit Party, such  Lessor Party shall make a reasonable effort to conduct such visit and inspection contemporaneously  with any visit and inspection to be performed by the Agent.  (g) The Parent shall, and shall cause each Subsidiary of the Parent to, maintain and  keep proper books of record and account which enable the Parent and its Subsidiaries to issue  financial statements in accordance with GAAP and as otherwise required by Applicable Laws of  any Official Body having jurisdiction over the Parent or any Subsidiary of the Parent, and in which  full, true and correct entries shall be made in all material respects of all its dealings and business  and financial affairs.  (h) Each Identified Big Lots Entity shall, and shall cause each other member of the  ERISA Group to, comply with ERISA, the Code and other Applicable Laws applicable to Plans  and Benefit Arrangements except where such failure, alone or in conjunction with any other failure,  would not result in a Material Adverse Effect.  Without limiting the generality of the foregoing,  each Identified Big Lots Entity shall cause all of its Plans and all Plans maintained by any member  of the ERISA Group to be funded in accordance with the minimum funding requirements of ERISA  and shall make, and cause each member of the ERISA Group to make, in a timely manner, all  contributions due to Plans, Benefit Arrangements, Multiemployer Plans and Multiple Employer  Plans.  (i) Each Credit Party shall, and shall cause each of its Subsidiaries to, comply with all  Applicable Laws, including all Environmental Laws, in all respects, provided that it shall not be  deemed to be a violation of this Section 8.3A(i) if any failure to comply with any Law would not  result in fines, penalties, remediation costs, other similar liabilities or injunctive relief which in the  aggregate would reasonably be expected to constitute a Material Adverse Effect.  (j) The Credit Parties will use the proceeds of the Lessor Advances for the purposes  stated in Section 6.1(j).  The Credit Parties shall not use the proceeds of the Lessor Advances for  any purposes which contravenes any Applicable Law or any provision hereof.  (k) Each Credit Party shall cause any intercompany Indebtedness, loans or advances  owed by any Credit Party to any other Credit Party to be subordinated pursuant to the terms of the  Intercompany Subordination Agreement.  (l) (i) The Credit Parties shall promptly notify the Agent and each of the Lessor  Parties in writing upon the occurrence of a Reportable Compliance Event.  

 

53  CHAR1\1917164v13 (ii) The Credit Parties shall cause each Covered Entity to conduct its business  in compliance with all Anti-Corruption Laws in all material respects and maintain policies  and procedures reasonably designed to promote compliance with such Laws.  (m) Each Credit Party shall provide to the Financing Parties such information and  documentation as may reasonably be requested by any Financing Party from time to time for  purposes of compliance by any such Financing Party with Applicable Laws (including the USA  Patriot Act and other “know your customer” and anti-money laundering rules and regulations), and  any policy or procedure implemented by any such Financing Party to comply therewith.  (n) The Credit Parties shall cause the aggregate amount of Lessor Advances (as such  is referenced in section (b) of the definition of “Lessor Advances” in Appendix A attached hereto)  to be fully reserved against on a Dollar for Dollar basis as an expressed, singularly identified  component part of the Reserves (as “Reserves” is defined in the ABL Credit Agreement), which  amount of Lessor Advances shall be a subtracted element in the determination of the Borrowing  Base (as “Borrowing Base” is defined in the ABL Credit Agreement).  8.3B Additional Credit Party Negative Covenants.  The Credit Parties, jointly and severally, covenant and agree that until Payment in Full, the Credit  Parties shall comply with the following negative covenants:  (a) Each of the Credit Parties shall not at any time create, incur, assume or suffer to  exist any Indebtedness, except:  (i) Indebtedness under the ABL Credit Agreement, subject to compliance  with Section 8.3B(t);   (ii) Existing Indebtedness as set forth on Schedule X (including any  extensions or renewals thereof, provided there is no increase in the amount thereof, or an  increase in the effective interest rate thereof, or an earlier maturity date for any payment  payable thereunder, or the provision of any security or guarantees therefor, or other  significant change in the terms thereof unless otherwise specified on Schedule X);  (iii) Indebtedness in respect of Capital Leases and Synthetic Lease Obligations  or any sale-leaseback transaction (including any extensions or renewals thereof), and any  Indebtedness in respect of any refinancing of the Obligations under the Operative  Agreements (the “AVDC Refinancing Indebtedness”);  (iv) Indebtedness secured by (A) Purchase Money Security Interests or (B) by  security interests in proceeds granted in connection with securities lending transactions or  reverse repurchase agreements involving United States Treasury bonds, provided that (1)  the aggregate amount as of any date of all such Indebtedness permitted by this Section  8.3B(a)(iv)(A) shall not exceed Twenty-Five Million and 00/100 Dollars ($25,000,000.00)  and (2) the aggregate amount as of any date of all such Indebtedness permitted by this  Section 8.3B(a)(iv)(B) shall not exceed Ten Million and 00/100 Dollars ($10,000,000.00);  (v) Indebtedness of a Credit Party to another Credit Party which is  subordinated in accordance with the provisions of Section 8.3A(k);  (vi) Any Bank-Provided Hedge or other Qualified Hedge Agreement;  

 

54  CHAR1\1917164v13 (vii) Any unsecured Indebtedness not otherwise permitted by (i)-(vi) above;  provided, that  (A) such Indebtedness is pari passu in right of payment with the  Obligations,  (B) such Indebtedness complies with Section 8.3B(q), and  (C) immediately prior to and after giving effect to such Indebtedness,  no Event of Default or Default shall have occurred; and  (viii)  [Reserved].  (b) Each of the Credit Parties shall not at any time create, incur, assume or suffer to  exist any Lien (i) on any of its property or assets (other than Collateral), tangible or intangible, now  owned or hereafter acquired, or agree or become liable to do so, except Additional Permitted Liens  and (ii) on any Collateral, now owned or hereafter acquired, or agree or become liable to do so,  except Permitted Liens.  (c) Each of the Credit Parties shall not at any time, directly or indirectly, become or  be liable in respect of any Guaranty, or assume, guarantee, become surety for, endorse or otherwise  agree, become or remain directly or contingently liable upon or with respect to any obligation or  liability of any other Person, except for:  (i) existing Guaranties as set forth on Schedule XI;  (ii) Guaranties of Indebtedness of the Credit Parties permitted in  Section 8.3B(a);   (iii) other Guaranties to the extent the Indebtedness represented by such  Guaranties is permitted in Section 8.3B(a); and  (iv) Guaranties by any Credit Party of the obligations, to the extent not  prohibited by the ABL Credit Agreement or by the Operative Agreements, of any other  Credit Party.  (d) Each of the Credit Parties shall not at any time make or suffer to remain  outstanding any loan or advance to, or purchase, acquire or own any stock, bonds, notes or securities  of, or any partnership interest (whether general or limited) or limited liability company interest in,  or any other investment or interest in, or make any capital contribution to, any other Person, or  agree, become or remain liable to do any of the foregoing, except:  (i) trade credit extended on usual and customary terms in the ordinary course  of business;  (ii) advances to employees to meet expenses incurred by such employees in  the ordinary course of business;  (iii) Permitted Investments;  (iv) investments in a Credit Party;  

 

55  CHAR1\1917164v13 (v) investments not otherwise permitted in (i)-(iv) above or (vi)-(x) below in  an amount which should not exceed One Hundred Twenty Five Million and 00/100 Dollars  ($125,000,000.00) in the aggregate;   (vi) investments in notes and other securities received in settlement of overdue  Indebtedness and accounts payable owed to a Credit Party in the ordinary course of  business and for amounts which, individually and in the aggregate, are not material to the  Credit Parties;  (vii) investments in the nature of seller financing or other consideration  received in any disposition (including any sale, lease, assignment or transfer) of assets or  property by any Credit Party, provided that the aggregate value of all such investments,  other than any such investments in a Credit Party, at any time (based on the value at the  time of acquisition thereof but reduced by payments or other realization thereon) shall not  exceed Ten Million and 00/100 Dollars ($10,000,000.00); provided, that, for the avoidance  of doubt, sale-leaseback transactions shall be governed by Sections 8.3B(a) and 8.3B(f)  and not by this Section 8.3B(d);  (viii) investments in Bank-Provided Hedges or Qualified Hedge Agreements;  (ix) Permitted Acquisitions;  (x) Investments (including equity or debt obligations) in trade receivables or  received in connection with the bankruptcy or reorganization of suppliers and customers  and in settlement (including settlements of litigation) of delinquent obligations of, and  other disputes with, customers and suppliers arising in the ordinary course of business; and  (xi) investments in the Big Lots Supplemental Savings Plan and such other  similar non-qualified plan as the Credit Parties may create or enter into from time to time.  (e) Each of the Credit Parties shall not dissolve, liquidate or wind-up its affairs, or  become a party to any merger or consolidation, or acquire by purchase, lease or otherwise all or  substantially all of the assets or capital stock of any other Person, provided, that:  (i) any Credit Party other than an Identified Big Lots Entity may consolidate  or merge into another Credit Party which is directly or indirectly wholly-owned by one or  more of the other Credit Parties; provided, that the Lessee may not so consolidate or merge  into another Credit Party unless the requirements of Section 10.1 (regarding assignment  and other transfers (directly or indirectly pursuant to a merger or other transaction) by the  Lessee or the Construction Agent) are satisfied to the satisfaction of the Agent, in its  reasonable discretion, as if such Section 10.1 were reconstituted to apply to consolidation  and merger of the Lessee and the Construction Agent, in a manner as the Agent shall  determine, in its reasonable discretion;  (ii) any Credit Party other than an Identified Big Lots Entity may be dissolved,  provided, that the assets of such Credit Party are distributed to another Credit Party;  provided, that the Lessee may not so dissolve unless the Lessee has previously assigned or  otherwise transferred (directly or indirectly pursuant to a merger or other transaction) its  entire right, title and interest in the Operative Agreements and with respect to the Property  in accordance with all of the requirements of Section 10.1; and  

 

56  CHAR1\1917164v13 (iii) any Credit Party may receive or acquire, whether by distribution (or series  of distributions), purchase or by merger, (A) all or substantially all of the ownership  interests of another Person or (B) all or substantially all of the assets of another Person or  of a business or division of another Person (each a “Permitted Acquisition”), provided that,  unless such purchase is of inventory in the ordinary course of business (which shall be a  Permitted Acquisition but shall not be subject to the requirements below), each of the  following requirements is met:  (A) if a Credit Party is acquiring the ownership interests in such  Person, such Person shall, unless not required by Section 8.3B(h), execute a  Guarantor Joinder and such other documents required by Section 6B.9 and join  this Agreement as a Guarantor pursuant to Section 6B.9 on or before the date of  such Permitted Acquisition;  (B) the board of directors or other equivalent governing body of such  Person shall have approved such Permitted Acquisition and, if the Credit Parties  shall use any portion of the loans under the ABL Credit Agreement to fund such  Permitted Acquisition, the Credit Parties also shall have delivered to the Financing  Parties written evidence of the approval of the board of directors (or equivalent  body) of such Person for such Permitted Acquisition;  (C) the business acquired, or the business conducted by the Person  whose ownership interests are being acquired, as applicable, shall be  complementary to or substantially the same as one or more line or lines of business  conducted by the Credit Parties and shall comply with Section 8.3B(j);  (D) no Default or Event of Default shall exist immediately prior to and  after giving effect to such Permitted Acquisition; and  (E) if the Consideration in connection with any such Permitted  Acquisition exceeds Twenty-Five Million and 00/100 Dollars ($25,000,000.00),  the Credit Parties shall deliver at least five (5) Business Days prior to such  Permitted Acquisition a certificate in the form of EXHIBIT I.  (f) None of the Credit Parties shall sell, convey, assign, lease, distribute (including by  spin off or split off), abandon or otherwise transfer or dispose of, voluntarily or involuntarily, any  of its properties or assets, tangible or intangible, except (notwithstanding the following exceptions,  with respect to the Lessee, none of the following exceptions shall apply or otherwise permit any  sale, conveyance, assignment, lease, abandonment or other transfer or disposal of any of Lessee’s  right, title or interest in any of the Operative Agreements or with respect to the Property, unless the  Lessee has previously assigned or otherwise transferred (directly or indirectly pursuant to a merger  or other transaction) its entire right, title, and interest in the Operative Agreements and with respect  to the Property in accordance with all of the requirements of Section 10.1):  (i) transactions involving the sale of inventory in the ordinary course of  business;  (ii) any sale, transfer or lease of properties or assets in the ordinary course of  business which are no longer necessary or required in the conduct of such Credit Party’s  business;  

 

57  CHAR1\1917164v13 (iii) any sale, transfer, lease or other conveyance of properties or assets by any  Credit Party to another Credit Party, including a Subsidiary that will be merged or  consolidated with a Credit Party pursuant to a series of transactions that are integrated with  such sale, transfer, lease or other conveyance;  (iv) any sale, transfer or lease of properties or assets in the ordinary course of  business which are replaced by substitute properties or assets acquired or leased or any  disposition of any real property in connection with (A) a sale-leaseback transaction  permitted under Section 8.3B(a), or (B) a like-kind exchange described in Section 1031 of  the Code and the Treasury Department regulations promulgated thereunder;  (v) any sale or transfer by the Parent of the capital stock or other equity  interests of the Parent; or  (vi) any sale, transfer, lease or other conveyance of properties or assets, other  than those specifically excepted pursuant to clauses (i) through (v) above, provided that:  (A) there shall not exist any Event of Default or Default immediately  prior to and after giving effect to such sale; and  (B) the Credit Parties shall be in compliance with all of the covenants  herein applicable to any Credit Party and with respect to any sale the proceeds of  which exceed Ten Million and 00/100 Dollars ($10,000,000.00), BLS shall deliver  a Compliance Certificate to the Agent for the benefit of the Lessor Parties at least  ten (10) Business Days before such sale confirming the same.  (g) None of the Credit Parties shall enter into or carry out any transaction with any  Affiliates of any Credit Party (including purchasing property or services from or selling property  or services to any Affiliate of any Credit Party) unless such transaction (i) is not otherwise  prohibited by the ABL Credit Agreement or the Operative Agreements, (ii) is entered into in the  ordinary course of business upon terms and conditions substantially as favorable to such Person as  would be obtainable by it in a comparable arm’s length transaction with a Person other than an  Affiliate and (iii) is in accordance with all Applicable Law in all material respects.  (h) Each of the Credit Parties shall not, and shall not permit any of its Subsidiaries to,  own or create directly or indirectly any Subsidiaries other than (i) any Subsidiary which has joined  this Agreement as a Guarantor on the Initial Closing Date and has otherwise joined the ABL Credit  Agreement in accordance with the terms thereof; (ii) any Excluded Inactive Subsidiary; (iii) any  Excluded Active Subsidiary; (iv) any Subsidiary formed or acquired after the Initial Closing Date  which joins this Agreement as a Guarantor pursuant to Section 6B.9 or which merges or  consolidates with a Credit Party pursuant to a series of transactions that are integrated with such  Subsidiary’s formation; or (v) the Lessee; provided, however, no Subsidiary shall be required to  join this Agreement as a Guarantor pursuant to Section 6B.9 if the execution of the Guarantor  Joinder would cause material adverse Tax consequences to any Credit Party or any Affiliate of a  Credit Party (pursuant to Section 956 of the Code and the United States Income Tax Regulations  promulgated thereunder, or otherwise) as demonstrated to the reasonable satisfaction of the Agent;  provided, further, that no Subsidiary shall join as a guarantor with respect to the Obligations of the  Lessee and/or the Construction Agent if (x) such Subsidiary is a Foreign Subsidiary that is a  “controlled foreign corporation” within the meaning of Section 957(a) of the Code (or is a  Subsidiary of such Foreign Subsidiary) or (y) such Subsidiary is a Domestic Subsidiary owning,  directly or indirectly, no material assets other than equity interests in one or more “controlled  

 

58  CHAR1\1917164v13 foreign corporations” within the meaning of Section 957(a) of the Code.  The parties to this  Agreement acknowledge and agree that the entities designated on Schedule XVIII are the only  Guarantors as of the Fourth Amendment Closing Date.  (i) Except for investments permitted by Section 8.3B(d), each of the Credit Parties  shall not become or agree to (i) become a general or limited partner in any general or limited  partnership, except that the Credit Parties may be general or limited partners in other Credit Parties,  (ii) become a member or manager of, or hold a limited liability company interest in, a limited  liability company, except that the Credit Parties may be members or managers of, or hold limited  liability company interests in, other Credit Parties, or (iii) become a joint venturer or hold a joint  venture interest in any joint venture.  The Credit Parties shall not permit any Excluded Inactive  Subsidiary to acquire or hold any material assets, incur or suffer to exist any material liabilities or  to conduct any material business.  (j) None of the Credit Parties shall engage in any business other than the distribution  of and the wholesale and retail sale of general merchandise and ancillary or value-added activities  and functions in support of or as an enhancement to the foregoing businesses, substantially as  conducted and operated by such Credit Party during the present fiscal year, and such Credit Party  shall not permit any material change in such business.  This Section 8.3B(j) shall not prohibit the  Parent, BLS or any Subsidiary thereof from engaging in a business which provides services  common to the retail or wholesale trade in general merchandise to the Parent, BLS or any  Subsidiary thereof or to any Person engaged in the sale of general retail merchandise.  (k) Each of the Credit Parties and each member of the ERISA Group shall not:  (i) fail to satisfy the minimum funding requirements of ERISA and the Code  with respect to any Plan;  (ii) request a minimum funding waiver from the Internal Revenue Service  with respect to any Plan;  (iii) engage in a Prohibited Transaction with any Plan, Benefit Arrangement,  Multiemployer Plan or Multiple Employer Plan which, alone or in conjunction with any  other circumstances or set of circumstances resulting in liability under ERISA, would  constitute a Material Adverse Effect;  (iv) permit any Plan to be in “at risk” status (as defined in Section 303(i)(4) of  ERISA or Section 430(i)(4) of the Code), determined as of the most recent actuarial  valuation report for each Plan using the actuarial assumptions required under Section 412  of the Code for purposes of funding;  (v) fail to make when due any contribution to any Multiemployer Plan or  Multiple Employer Plan that any Identified Big Lots Entity or any member of the ERISA  Group may be required to make under any agreement relating to such Multiemployer Plan  or Multiple Employer Plan, or any Law pertaining thereto;  (vi) withdraw (completely or partially) from any Multiemployer Plan or  withdraw (or be deemed under Section 4062(e) of ERISA to withdraw) from any Multiple  Employer Plan, where any such withdrawal would result in a Material Adverse Effect;  

 

59  CHAR1\1917164v13 (vii) terminate, or institute proceedings to terminate, any Plan, where such  termination would result in a Material Adverse Effect;  (viii) permit the imposition of a Lien under Section 303(k)(1) of ERISA; or  (ix) fail to give any and all notices and make all disclosures and governmental  filings required under ERISA or the Code, where such failure would result in a Material  Adverse Effect.   (l) The Parent shall not, and shall not permit any Subsidiary of the Parent to, change  its fiscal year from the fifty-two (52)/fifty-three (53) week fiscal year beginning on the Sunday  closest to February 1 of each calendar year and ending on the Saturday closest to January 31 of the  following calendar year.  (m) Each of the Credit Parties (other than the Parent) shall not, and shall not permit  any of its Subsidiaries to, issue any additional shares of its capital stock or other equity interests or  any options, warrants or other rights in respect thereof other than to another Credit Party or  Subsidiary of a Credit Party.  (n) Except in connection with the dissolution of a Credit Party as permitted in  Section 8.3B(e), each of the Credit Parties shall not amend in any material respect its certificate or  articles of incorporation, by-laws, certificate of limited partnership, partnership agreement,  certificate of formation, limited liability company agreement or other organizational documents  without providing at least five (5) calendar days’ prior written notice to the ABL Credit Agreement  Administrative Agent, the ABL Credit Agreement Banks and the Financing Parties and, in the event  such change would be adverse to (i) the ABL Credit Agreement Banks as determined by the ABL  Credit Agreement Administrative Agent in its sole reasonable discretion, obtaining the prior written  consent of the ABL Credit Agreement Required Banks or (ii) the Financing Parties as determined  by the Agent in its sole reasonable discretion, obtaining the prior written consent of the Majority  Secured Parties; provided, however, that any Credit Party (other than the Parent) may convert from  one form of entity to another form of entity, reincorporate, re-domesticate, or change its name  without prior written notice to the Agent so long as such change would not have a Material Adverse  Effect.  (o) [Reserved].  (p) [Reserved]. (q) No Credit Party shall directly or indirectly enter into or assume or become bound  by, or permit any Subsidiary to enter into or assume or become bound by, any agreement, other  than the ABL Credit Agreement, the other ABL Credit Agreement Loan Documents, this  Agreement, the other Operative Agreements and any operative documents in connection with any  other Synthetic Lease Obligations (collectively, the Operative Agreements and any other such  operative documents may be referred to as the “Synthetic Lease Documents”), or any provision of  any certificate of incorporation, bylaws, partnership agreement, operating agreement or other  organizational formation or governing document prohibiting the creation or assumption of any Lien  or encumbrance upon any such Credit Party’s or Subsidiary’s properties, whether now owned or  hereafter created or acquired, or otherwise prohibiting or restricting any transaction contemplated  hereby; provided, that the foregoing shall not apply to (i) restrictions and conditions imposed by  any Law or by any ABL Credit Agreement Loan Document or Synthetic Lease Document, (ii)  restrictions or conditions imposed by any agreement relating to secured Indebtedness or other  

 

60  CHAR1\1917164v13 obligations permitted by both this Agreement and the Synthetic Lease Documents but, (y) solely  with respect to the specific assets that secure the Synthetic Lease Obligations, any restriction or  condition imposed by the Synthetic Lease Documents and, (z) with respect to any other assets, only  to the extent such restriction or condition is limited to the specific assets subject to an Additional  Permitted Lien, (iii) customary provisions in leases or other agreements restricting assignment  thereof, or (iv) restrictions or conditions imposed by any agreement relating to the issuance by any  Credit Party of Indebtedness represented by publicly or privately placed notes as permitted by  Section 8.3B(a)(vii).  (r) Each of the Credit Parties (other than the Parent) shall not, and shall not permit  any of its Subsidiaries to: (a) become a Sanctioned Person; (b) directly, or knowingly indirectly  through a third party, engage in any transactions or other dealings with any Sanctioned Person or  Sanctioned Jurisdiction, including any use of the proceeds of the Lessor Advances to fund any  operations in, finance any investments or activities in, or, make any payments to, a Sanctioned  Person or Sanctioned Jurisdiction; (c) engage in any transactions or other dealings with any  Sanctioned Person or Sanctioned Jurisdiction prohibited by any Laws of the United States or other  applicable jurisdictions relating to economic sanctions and any Anti-Terrorism Laws; or (d) cause  any Lessor Party or Agent to violate any sanctions administered by OFAC.  (s) Each Credit Party hereby covenants and agrees that until the Expiration Date, the  Credit Party will not, and will not permit any its Subsidiaries to, directly or knowingly indirectly,  use the Lessor Advances or any proceeds thereof for any purpose which would breach any Anti- Corruption Laws in any jurisdiction in which any Covered Entity conducts business.  (t) Each of the Credit Parties shall not, and shall not permit any of its Subsidiaries to,  amend, modify, extend, supplement, restate and/or replace any of the following provisions of the  ABL Credit Agreement Loan Documents (from those in effect as of the ABL Credit Agreement  Closing Date):  (a) to increase the lender commitments, as described in the ABL Credit Agreement  as in effect on the ABL Credit Agreement Closing Date, such that the aggregate lender commitment  thereafter exceeds $900,000,000; (b) to remove or reduce the reserve with respect to the “Synthetic  Lease Agreement”, as described in the ABL Credit Agreement as in effect on the ABL Credit  Agreement Closing Date; or (c) with respect to the maturity date under the ABL Credit Agreement,  as described in the ABL Credit Agreement as in effect on the ABL Credit Agreement Closing Date,  such that the maturity date is revised to reference an earlier date.  8.3C Additional Credit Party Reporting Requirements.  The Credit Parties, jointly and severally, covenant and agree that until Payment in Full, the Credit  Parties will furnish or cause to be furnished to the Agent:  (a) As soon as available and in any event within forty-five (45) calendar days after the  end of each of the first three (3) fiscal quarters in each fiscal year of the Parent, unaudited financial  statements of the Parent, consisting of:  (i) a consolidated balance sheet as of the end of such fiscal  quarter and as of the end of the prior fiscal year; (ii) a consolidated statement of operations for such  fiscal quarter and the year-to-date period of the then-current fiscal year, and for the corresponding  fiscal quarter and year-to-date period of the prior fiscal year; (iii) a consolidated statement of  shareholders’ equity as of the end of such fiscal quarter, as of the end of the corresponding fiscal  quarter of the prior fiscal year, and as of the end of the prior fiscal year; and (iv) a consolidated  statement of cash flows for the year-to-date period of the then-current fiscal year and the  corresponding year-to-date period of the prior fiscal year.  Each of the aforementioned financial  statements shall be in reasonable detail and certified (subject to normal year-end audit adjustments)  

 

61  CHAR1\1917164v13 by an Authorized Officer of the Parent as having been prepared in accordance with GAAP.  The  Credit Parties will be deemed to have complied with the delivery requirements of this  Section 8.3C(a) if the Credit Parties have complied with the portion of Section 8.3C(h)(iv) that  relates to Form 10-Q reporting and the financial statements contained in such Form 10-Q reports  meet the requirements described in this Section 8.3C(a).  (b) As soon as available and in any event within ninety (90) days after the end of each  fiscal year of the Parent, financial statements of the Parent consisting of a consolidated balance  sheet as of the end of such fiscal year, and related consolidated statements of operations,  shareholders’ equity and cash flows for the fiscal year then ended, all in reasonable detail and  setting forth in comparative form the financial statements as of the end of and for the preceding  fiscal year, and audited by independent certified public accountants of nationally recognized  standing.  The Credit Parties shall deliver with such financial statements a certifying letter of such  accountants to the Agent for the benefit of each Financing Party which shall:  (i) be to the effect  that such consolidated financial statements fairly present in all material respects the financial  condition and results of operations of the Parent and its Subsidiaries on a consolidated basis in  accordance with GAAP, (ii) not contain a “going concern” or like qualification or exception,  (iii) not contain a qualification or exception as to the scope of such audit (other than as is  customary), and (iv) not indicate the occurrence or existence of any event, condition or contingency  which would materially impair the prospect of payment or performance of any covenant, agreement  or duty of any Credit Party under any of the ABL Credit Loan Documents or any Operative  Agreements.  The Credit Parties will be deemed to have complied with the delivery requirements  of this Section 8.3C(b) if (i) the Credit Parties have complied with the portion of  Section 8.3C(h)(iv) that relates to Form 10-K reporting and the financial statements contained in  such Form 10-K meet the requirements described in this Section 8.3C(b) and (ii) the Parent delivers  to the Agent the certifying letter of accountants as described above.  (c) Concurrently with the financial statements of the Parent furnished to the Agent for  the benefit of the Financing Parties pursuant to Sections 8.3C(a) and 8.3C(b), a certificate (each a  “Compliance Certificate”) of the Identified Big Lots Entities signed by an Authorized Officer of  each Identified Big Lots Entity, in the form of EXHIBIT J, to the effect that, except as described  pursuant to Section 8.3C(d), (i) the representations and warranties of the Credit Parties contained  in Section 6.1 and in the other Operative Agreements are true in all material respects on and as of  the date of such certificate with the same effect as though such representations and warranties had  been made on and as of such date (except representations and warranties which (i) expressly relate  solely to an earlier date or time, in which case such representations and warranties were true and  correct as of such earlier date or time or (ii) are qualified by materiality or references to Material  Adverse Effect, which such representations and warranties shall be true and correct in all respects  as of such date) and the Credit Parties have performed and complied with all covenants and  conditions of the Operative Agreements and (ii) no Event of Default or Default exists and is  continuing on the date of such certificate.  (d) Promptly after any officer of any Credit Party has learned of the occurrence of an  Event of Default or Default, a certificate signed by an Authorized Officer of such Credit Party  setting forth the details of such Event of Default or Default and the action which such Credit Party  proposes to take with respect thereto.  (e) Promptly after the commencement thereof, notice of all actions, suits, proceedings  or investigations before or by any Official Body or any other Person against any Credit Party or  Subsidiary of any Credit Party, which involve a claim or series of claims, or which the Credit Party  or Subsidiary reasonably determines would be, in excess of Twenty-Five Million and 00/100  

 

62  CHAR1\1917164v13 Dollars ($25,000,000.00) or which if adversely determined would constitute a Material Adverse  Effect.  (f) Written notice to the Agent:  (i) at least ten (10) Business Days prior thereto, with respect to any proposed  sale or transfer of assets pursuant to Section 8.3B(f)(vi);  (ii) within the time limits set forth in Section 8.3B(n), any material  amendment to the organizational documents of any Credit Party; and  (iii) promptly following any change in organizational documents as permitted  in Section 8.3B(n).  (g) [Reserved].  (h) Promptly upon their becoming available to any Credit Party:  (i) any forecasts or projections of the Parent, to be supplied not later than  forty-five (45) days following the commencement of the fiscal year to which any of the  foregoing may be applicable,  (ii) any reports including management letters submitted to the Parent by  independent accountants in connection with any annual, interim or special audit,  (iii) any reports or notices generally distributed by the Parent to its  shareholders on a date no later than the date supplied to such shareholders,  (iv) periodic or current reports, including Forms 10-K, 10-Q and 8-K, proxy  statements, registration statements and prospectuses (but excluding statements regarding  beneficial ownership on Forms 3, 4 and 5), filed by the Parent with the SEC,  (v) a copy of any order in any proceeding to which the Parent or any of its  Subsidiaries is a party issued by any Official Body which would reasonably be expected to  result in a Material Adverse Effect, and  (vi) such other reports and information as any of the Financing Parties may  from time to time reasonably request.  BLS shall also notify the Financing Parties promptly  of the enactment or adoption of any Law which would reasonably be expected to result in  a Material Adverse Effect.  Information required to be delivered pursuant to sub-clause (iv) above shall be deemed to  have been delivered on the date on which the Credit Parties provide notice to the Agent that such  information has been posted on the Internet at www.biglots.com, www.sec.gov or another website  identified in such notice and accessible by the Agent without charge; provided, that (i) such notice  may be included in a certificate delivered pursuant to Section 8.3C(c) and (ii) BLS shall deliver  paper copies of the information referred to in sub-clause (iv) above to the Agent if it so requests.  In the event that the Parent shall for any reason cease to be subject to the reporting  requirements of the Exchange Act, it shall nonetheless furnish to the Agent reports containing  

 

63  CHAR1\1917164v13 substantially the same information at substantially the same times as would otherwise be required  by the foregoing provisions of sub-clause (iv) above.  (i) Promptly upon becoming aware of the occurrence thereof, notice (including the  nature of the event and, when known, any action taken or threatened by the Internal Revenue  Service or the PBGC with respect thereto) of:  (i) any Reportable Event with respect to any Identified Big Lots Entity or any  other member of the ERISA Group (regardless of whether the obligation to report said  Reportable Event to the PBGC has been waived),  (ii) any Prohibited Transaction which could subject any Identified Big Lots  Entity or any other member of the ERISA Group to a material civil penalty assessed  pursuant to Section 502(i) of ERISA or a material Tax imposed by Section 4975 of the  Code in connection with any Plan, any Benefit Arrangement or any trust created  thereunder,  (iii) any assertion of material withdrawal liability with respect to any  Multiemployer Plan or Multiple Employer Plan,  (iv) any partial or complete withdrawal from a Multiemployer Plan or Multiple  Employer Plan by any Identified Big Lots Entity or any other member of the ERISA Group  under Title IV of ERISA (or assertion thereof), where such withdrawal is likely to result in  material withdrawal liability,  (v) any cessation of operations (by any Identified Big Lots Entity or any other  member of the ERISA Group) at a facility in the circumstances described in  Section 4062(e) of ERISA,  (vi) any withdrawal by any Identified Big Lots Entity or any other member of  the ERISA Group from a Multiple Employer Plan,  (vii) a failure by any Identified Big Lots Entity or any other member of the  ERISA Group to make a payment to a Plan required to avoid imposition of a Lien under  Section 303(k)(1) of ERISA,  (viii) a determination that any Plan is, or is expected to be, in “at-risk” status (as  defined in Section 303(i)(4) of ERISA or Section 430(i)(4) of the Code, or  (ix) any change in the actuarial assumptions or funding methods used for any  Plan, where the effect of such change is to materially reduce the Plan’s funding target  attainment percentage or materially increase the obligation to make periodic contributions.  (j) Promptly after receipt thereof, copies of (a) all notices received by any Identified  Big Lots Entity or any other member of the ERISA Group of the PBGC’s intent to terminate any  Plan administered or maintained by any Identified Big Lots Entity or any member of the ERISA  Group, or to have a trustee appointed to administer any such Plan; and (b) at the request of the  Agent or any other Financing Party each annual report (IRS Form 5500 series) and all  accompanying schedules, the most recent actuarial reports, the most recent financial information  concerning the financial status of each Plan administered or maintained by any Identified Big Lots  Entity or any other member of the ERISA Group, and schedules showing the amounts contributed  

 

64  CHAR1\1917164v13 to each such Plan by or on behalf of any Identified Big Lots Entity or any other member of the  ERISA Group in which any of their personnel participate or from which such personnel may derive  a benefit, and each Schedule B (Actuarial Information) to the annual report filed by any Identified  Big Lots Entity or any other member of the ERISA Group with the Internal Revenue Service with  respect to each such Plan.  (k) Promptly upon the filing thereof, copies of any Form 500, or any successor or  equivalent form to Form 500, filed with the PBGC in connection with the standard termination of  any Plan.  (l) To the extent not otherwise provided to the Agent pursuant to this Section 8.3C  and concurrent with the delivery of the same by the Borrower Representative (as such term is defined in  the ABL Credit Agreement) to the ABL Credit Agreement Administrative Agent, all financial statements,  borrowing base information and other information, notices and other reports as are required to be delivered  by the Borrower Representative to the ABL Credit Agreement Administrative Agent pursuant to Sections  5.01 and 5.02 of the ABL Credit Agreement, including, without limitation, any and all financial statements,  compliance certificates, borrowing base certificates and supporting information, notices, copies of  agreements and any other information or documentation required to be so delivered pursuant to such  Sections 5.01 and 5.02 of the ABL Credit Agreement; provided that, so long as the Agent is an ABL Credit  Agreement Bank and the Credit Parties have complied with such delivery obligations under the ABL Credit  Agreement, the Credit Parties shall not be obligated to separately deliver any items in this subsection (l) to  the Agent.  8.4 Sharing of Certain Payments. Except for Excepted Payments, the parties hereto acknowledge and agree that all payments due and  owing by any Credit Party to any Lessor Party under the Lease or any of the other Operative Agreements  (including pursuant to Section 5.3(c) of the Agency Agreement and Section 17.6(c) of the Lease) shall be  made by such Credit Party directly to the Agent as more particularly provided in Section 8.3(b) hereof.  The  Financing Parties and the Credit Parties acknowledge the terms of Section 8.7 of this Agreement regarding  the allocation of payments and other amounts made or received from time to time under the Operative  Agreements and agree, that all such payments and amounts are to be allocated as provided in Section 8.7  of this Agreement.  8.5 Grant of Easements, Agreement regarding Restrictive Covenants, etc. The Financing Parties hereby agree that, so long as no Event of Default shall have occurred and be  continuing, the Lessor shall, from time to time at the request of the Lessee (and with the prior consent of  the Agent, except with regard to that certain water easement requested by the Town of Apple Valley,  California and consisting of a rectangular easement area near the northeast corner of the Property (the  “Water Utility Easement”) which shall not require any such consent from the Agent), in connection with  the transactions contemplated by the Agency Agreement, the Lease or the other Operative Agreements,  (i) grant easements and other rights in the nature of easements with respect to the Property, including the  Water Utility Easement, (ii) release existing easements or other rights in the nature of easements which are  for the benefit of the Property, (iii) execute and deliver to any Person any instrument appropriate to confirm  or effect such grants or releases, and (iv) execute and deliver to any Person such other documents or  materials in connection with the acquisition, development, construction, testing or operation of the Property,  including reciprocal easement agreements, construction contracts, operating agreements, development  agreements, plats, replats or subdivision documents; provided, that each of the agreements referred to in  this Section 8.5 (including the Water Utility Easement) shall be of the type normally executed by the Lessee  

 

65  CHAR1\1917164v13 in the ordinary course of the Lessee’s business and shall be on commercially reasonable terms so as not to  diminish the value or limit the use of the Property in any material respect.  8.6 The Agent. (a) Each Lessor Party hereby designates and appoints the Agent as administrative  agent and collateral agent of such Lessor Party to act as specified herein and in the other Operative  Agreements, and each such Lessor Party hereby authorizes the Agent as the administrative agent  and collateral agent for such Lessor Party, to take such action on its behalf under the provisions of  this Agreement and the other Operative Agreements and to exercise such powers and perform such  duties as are expressly delegated by the terms hereof and of the other Operative Agreements,  together with such other powers as are reasonably incidental thereto.  Such delegation of authority  shall include the execution and delivery by the Agent of release instruments in recordable form  releasing the Lien of the Operative Agreements in accordance with the requirements thereof.   Notwithstanding any provision to the contrary in any of the Operative Agreements, the Agent shall  not have any duties or responsibilities, except those expressly set forth herein and therein, or any  fiduciary relationship with any Lessor Party, and no implied covenants, functions, responsibilities,  duties, obligations or liabilities shall be read into this Agreement or any of the other Operative  Agreements, or shall otherwise exist against the Agent.  The provisions of this Section 8.6 are solely  for the benefit of the Agent and the Lessor Parties and no other Person shall have any rights as a  third party beneficiary of the provisions hereof.  Except as otherwise provided in this Section 8.6,  in performing its functions and duties under this Agreement and the other Operative Agreements,  the Agent shall act solely as Agent of the Lessor Parties.  The Agent does not assume and shall not  be deemed to have assumed any obligation or relationship of agency or trust with or for any Credit  Party or any other Person.  (b) The Agent may execute any of its duties hereunder or under the other Operative  Agreements by or through agents or attorneys-in-fact and shall be entitled to advice of counsel  concerning all matters pertaining to such duties.  The Agent shall not be responsible for the  negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care.  (c) Neither the Agent nor any of its officers, directors, employees, agents, attorneys- in-fact or affiliates shall be (i) liable for any action lawfully taken or omitted to be taken by it or  such Person under or in connection herewith or in connection with any of the other Operative  Agreements (except for its or such Person’s own gross negligence or willful misconduct), or  (ii) responsible in any manner to any Lessor Party for any recitals, statements, representations or  warranties contained herein or in any of the other Operative Agreements or in any certificate, report,  statement or other document referred to or provided for in, or received by the Agent under or in  connection herewith or in connection with the other Operative Agreements, or enforceability or  sufficiency of any of the other Operative Agreements, or for any failure of any party (not including  the Agent) to any Operative Agreement to perform its obligations hereunder or thereunder.  The  Agent shall not be responsible to any Lessor Party for the effectiveness, genuineness, validity,  enforceability, collectability or sufficiency of this Agreement, or any of the other Operative  Agreements or for any representations, warranties, recitals or statements made herein or therein or  made by any Credit Party in any written or oral statement or in any financial or other statements,  instruments, reports, certificates or any other documents in connection herewith or therewith  furnished or made by the Agent to any Lessor Party or by or on behalf of any Credit Party to the  Agent or any Lessor Party or be required to ascertain or inquire as to the performance or observance  of any of the terms, conditions, provisions, covenants or agreements contained herein or therein or  as to the use of the proceeds of the purchases or of the existence or possible existence of any Default  or Event of Default or to inspect the properties, books or records of any of the Credit Parties.  

 

66  CHAR1\1917164v13 (d) The Agent shall be entitled to rely, and shall be fully protected in relying, upon  any note, writing, resolution, notice, consent, certificate, affidavit, letter, facsimile, email,  cablegram, telegram, telecopy, telex, teletype or electronic message, statement, order or other  document or conversation believed by it in good faith to be genuine and correct and to have been  signed, sent or made by the proper Person or Persons and upon advice and statements of legal  counsel (including counsel to any Credit Party), independent accountants and other experts selected  by the Agent with reasonable care.  The Agent may deem and treat the Lessor Parties as the owner  of their respective interests hereunder for all purposes unless a written notice of assignment,  negotiation or transfer thereof shall have been filed with the Agent in accordance with Section 10  or any other applicable provision of the Operative Agreements.  The Agent, acting in its capacity  as Agent, shall be fully justified in failing or refusing to take any action under this Agreement or  under any of the other Operative Agreements unless it shall first receive such advice or concurrence  of the Majority Secured Parties as it deems appropriate or it shall first be indemnified to its  satisfaction by the Lessor Parties against any and all liability and expense which may be incurred  by it by reason of taking or continuing to take any such action.  The Agent shall in all cases be fully  protected in acting, or in refraining from acting, hereunder or under any of the other Operative  Agreements in accordance with a request of the Majority Secured Parties or all the Lessor Parties  if such request is a Unanimous Vote Matter and such request, and any action taken or failure to act  pursuant thereto shall be binding upon all the Lessor Parties (including their successors and  assigns).  (e) The Agent shall not be deemed to have knowledge or notice of the occurrence of  any Default or Event of Default unless the Agent has received notice from a Lessor Party, the  Construction Agent or the Lessee referring to the Operative Agreement, describing such Default or  Event of Default and stating that such notice is a “notice of default.”  In the event that the Agent  receives such a notice, the Agent shall give prompt notice thereof to the Lessor Parties.  Subject to  this Section 8.6 of the Participation Agreement, the Agent shall take such action with respect to  such Default or Event of Default as shall be directed by the Majority Secured Parties.  (f) Each Lessor Party expressly acknowledges that neither the Agent nor any of its  officers, directors, employees, agents, attorneys-in-fact or affiliates has made any representations  or warranties to it and that no act by the Agent or any affiliate thereof hereafter taken, including  any review of the affairs of the Credit Parties, shall be deemed to constitute any representation or  warranty by the Agent to any Lessor Party.  Each Lessor Party represents to the Agent that it has,  independently and without reliance upon the Agent or any other Lessor Party, and based on such  documents and information as it has deemed appropriate, made its own appraisal of and  investigation into the business, assets, operations, property, financial and other conditions,  prospects and creditworthiness of the Credit Parties and made its own decision to make its  purchases hereunder and enter into this Agreement.  Each Lessor Party also represents that it will,  independently and without reliance upon the Agent or any other Lessor Party, and based on such  documents and information as it shall deem appropriate at the time, continue to make its own credit  analysis, appraisals and decisions in taking or not taking action under this Agreement, and to make  such investigation as it deems necessary to inform itself as to the business, assets, operations,  property, financial and other conditions, prospects and creditworthiness of the Credit Parties.   Except for notices, reports and other documents expressly required to be furnished to the Lessor  Parties by the Agent pursuant to this Agreement, the Agent shall not have any duty or responsibility  to provide any Lessor Party with any credit or other information concerning the business,  operations, assets, property, financial or other conditions, prospects or creditworthiness of the  Credit Parties which may come into the possession of the Agent or any of its officers, directors,  employees, agents, attorneys-in-fact or affiliates.  

 

67  CHAR1\1917164v13 (g) The Agent and its Affiliates may make loans to, accept deposits from and generally  engage in any kind of business with the Credit Parties as though the Agent were not Agent  hereunder.  (h) The provisions of Section 10.3 shall govern with respect to the replacement of the  Agent.  (i) Regarding the Agent functioning as the collateral agent for the Secured Parties,  each of the Lessor (and to the extent necessary, each of the other Lessor Parties) hereby assigns to  the Agent the Lien granted by the Lessee pursuant to the Lease to secure the Lessor Advances.  The  Secured Parties acknowledge, agree and direct that the rights and remedies of the Secured Parties  in connection with an Event of Default, including as  beneficiaries of the Lien of the Security  Documents, shall be exercised by the Agent on behalf of the Secured Parties as directed from time  to time (a) by the Majority Secured Parties; provided, notwithstanding the foregoing, the Agent  shall not take any action concerning the exercise of remedies or otherwise under any of the  Operative Agreements with respect to the Property (regardless of whether a Default or Event of  Default has occurred and is continuing) unless the Lessor has expressly consented to such action  or (b) pursuant to Sections 8.2(c) and 12.4, by the Lessor Parties; provided, that for the avoidance  of doubt, nothing in this Section 8.6 shall affect any automatic acceleration, right of acceleration  or right to terminate the Lessor Parties Commitment exercised in accordance with the applicable  Operative Agreements; and provided further, in all cases, the Agent shall allocate payments and  other amounts received in accordance with Section 8.7.  Except in the case of Excepted Payments  and other rights expressly reserved by the Lessor pursuant to the Operative Agreements and subject  to Section 12.4, the Agent is further appointed to provide notices under the Operative Agreements  on behalf of the Lessor (as determined by the Agent, in its reasonable discretion with regard to  matters concerning the Collateral) and to receive notices under the Operative Agreements on behalf  of the Lessor with regard to matters concerning the Collateral.  The Agent hereby accepts such  appointments.  The Agent hereby further agrees promptly to provide notices and other  documentation received from time to time from the Credit Parties to the Lessor Parties.  The parties  hereto hereby agree to the provisions contained in this Section 8.6.  For the avoidance of doubt and  notwithstanding anything contained in this Agreement or any other Operative Agreement to the  contrary, each Financing Party agrees that no Secured Party (other than the Agent) shall have the  right to individually seek to realize upon any Lien granted by any Security Document, it being  understood and agreed that such rights and remedies may be exercised solely by the Agent for the  benefit for the Secured Parties upon the terms of the Operative Agreements; provided, if any action  requires the participation of the Lessor (given the Lessor is the holder of legal title to the Property),  then the Lessor shall participate in such action as reasonably requested by the Agent.  8.7 Collection and Allocation of Payments and Other Amounts. (a) Each Credit Party has agreed pursuant to Section 5.7 and otherwise in accordance  with the terms of this Agreement to pay to (i) the Agent any and all Rent (excluding Excepted  Payments) and any and all other amounts of any kind or type under any of the Operative  Agreements, in each case, due and owing or payable to any Financing Party and (ii) each Person as  appropriate the Excepted Payments.  Promptly after receipt, the Agent shall apply and allocate, in  accordance with the terms of this Section 8.7, such amounts received from any Credit Party and all  other payments, receipts and other consideration of any kind whatsoever received by the Agent or  any Lessor Party in connection with the Collateral, the Security Documents or any of the other  Operative Agreements.  Ratable distributions among the Lessor Parties under this Section 8.7 shall  be made based on the ratio of the various Lessor Party’s outstanding Lessor Advances to the  aggregate Property Cost.  If, and to the extent that both SOFR Lessor Advances and ABR Lessor  

 

68  CHAR1\1917164v13 Advances are outstanding at a point in time at which payments and other amounts are to be applied  and allocated pursuant to this Section 8.7, then such payments and amounts shall first be applied  and allocated to the ABR Lessor Advances and next to the SOFR Lessor Advances.  (b) Payments and other amounts received by the Agent from time to time in  accordance with the terms of subparagraph (a) shall be applied and allocated as follows (subject in  all cases to Sections 8.7(c)(i), (ii) and (iii)):  (i) Any such payment or amount identified as or deemed to be Basic Rent,  any amount in respect of a Casualty referenced in the last two sentences of Section 3.4(b)  of the Agency Agreement or any amount in respect of a Condemnation referenced the last  two sentences of Section 3.5(b) of the Agency Agreement shall be applied and allocated  by the Agent:  first, ratably to the Lessor Parties for application and allocation to the  payment of accrued Lessor Yield with respect to the Lessor Advances and  thereafter ratably to the outstanding Lessor Advances which are due and payable  on such date;  second, if a Default or Event of Default is in effect, such excess (if any)  shall be held by the Agent until the earlier of (I) the first date thereafter on which  no Default or Event of Default shall be in effect (in which case such payments or  returns shall then be made pursuant to “third” below) and (II) the Expiration Date  (or, if earlier, the date of any acceleration), in which case such amounts shall be  applied and allocated in the manner contemplated by Section 8.7(b)(iv); and  third, any excess shall be paid to the Lessee.  (ii) Except as otherwise specified pursuant to (A) Section 3.4(b) of the Agency  Agreement, Section 3.5(b) of the Agency Agreement or Section 15.1(a) of the Lease  (regarding amounts payable to the Construction Agent or the Lessee, as applicable) and  (B) Section 8.7(b)(i) (regarding allocation of amounts referenced in the last two sentences  of Section 3.4(b) of the Agency Agreement and the last two sentences of Section 3.5(b) of  the Agency Agreement), if (other than as specified in the foregoing subsection (A) or (B))  on any date the Agent or the Lessor shall receive any amount in respect of any Casualty or  Condemnation pursuant to Section 3.4 or 3.5 of the Agency Agreement or Section 15.1(a)  of the Lease, then such amount shall be applied and allocated in accordance with  Section 8.7(b)(iii)(x) hereof.  (iii) (x) An amount equal to the proceeds from the RVI Policy and an  amount equal to any payment identified as proceeds of the sale or other disposition (or  lease upon the exercise of remedies) of the Property or any portion thereof, including  pursuant to (i) the exercise of remedies under the Security Documents (other than proceeds  in an amount equal to the Termination Value which shall be allocated pursuant to Section  8.7(b)(iv)), (ii) the exercise of remedies set forth in the Agency Agreement, (iii) the  exercise of remedies set forth in the Lease, or (iv) any payment in respect of excess wear  and tear pursuant to Section 21.3 of the Lease, in each case shall be applied and allocated  (subject to the following provisos) by the Agent, in accordance with clauses first, second  and third of this Section 8.7(b)(iii)(x);  

 

69  CHAR1\1917164v13 provided, prior to such allocation in accordance with clauses first, second and third of this  Section 8.7(b)(iii)(x), allocations shall be made in connection with the exercise of remedies  under clause (y) of the second paragraph of Section 5.3(c) of the Agency Agreement, (a)  with the Construction Agent retaining the amounts allocable to it under the waterfall  provisions of clause (y) of such second paragraph of such Section 5.3(c) and the other  amounts thereunder being allocated pursuant to the first paragraph of this Section 8.7(b)  (which first paragraph precedes Section 8.7(b)(i)) and thereafter to the following provisions  of this Section 8.7(b)(iii)(x); and (b) with the Agent retaining in favor of the Lessor Parties  the one percent (1%) interest as referenced in such second paragraph of such Section 5.3(c)  regarding any sale or other disposition of the Lessor’s interest in the Property to the extent  occurring on or prior to the second annual anniversary of the date Lessor receives notice  of, or otherwise has knowledge of, the Agency Agreement Event of Default;  provided, further, in connection with the exercise of remedies under the third paragraph of  Section 5.3(c) of the Agency Agreement or Section 5.3(d) of the Agency Agreement, there  shall be no allocation pursuant to clause third below and in substitution for such  clause third, an allocation shall be made ratably to the Lessor Parties based on their  respective Lessor Advances outstanding immediately prior to the allocation of proceeds  received pursuant to such third paragraph of such Section 5.3(c) or such Section 5.3(d), as  applicable; and  provided, prior to such allocation in accordance with clauses first, second and third of this  Section 8.7(b)(iii)(x), allocations shall be made in connection with the exercise of remedies  under Section 17.6 of the Lease, with the Lessee retaining the amounts allocable to it under  such Section 17.6(c) and the other amounts thereunder being allocated pursuant to the first  paragraph of this Section 8.7(b) (which first paragraph precedes Section 8.7(b)(i)) and  thereafter to the following provisions of this Section 8.7(b)(iii)(x):  first, ratably to the payment to the Lessor Parties of the Lessor Yield with  respect to the Lessor Advances and then to the advance amount balance of the  Lessor Advances;  second, to the extent moneys remain after application and allocation  pursuant to clause first above, to all other amounts owing under the Operative  Agreements to the Lessor Parties then outstanding; and  third, to the extent moneys remain after application and allocation pursuant  to clause first through second above, to the Lessee.  (y) Notwithstanding any provision in any Operative Agreement to the  contrary (including the provisions of clause (x) of this Section 8.7(b)(iii)), any  amount paid by a third party purchaser for the purchase of the Property on the  Expiration Date pursuant to the election by the Lessee of the Sale Option shall be  applied and allocated by the Agent in the following order of priority:  first, so much of such amount as shall be required to pay actual  and reasonable costs of the Financing Parties of selling and transferring  the Property, including all recordation fees, legal fees and expenses,  finders’ and brokers’ fees and sales commissions allocable to the Property;  

 

70  CHAR1\1917164v13 second, ratably to the payment to the Lessor Parties of the Lessor  Yield with respect to the Lessor Advances, then to the advance balance of  the Lessor Advances and then to all other amounts owing under the  Operative Agreements to the Lessor Parties then outstanding; and  third, to the extent monies remain after application and allocation  pursuant to clauses first through second above, to the Lessee.  (iv) An amount equal to (A) any such payment identified as a payment  pursuant to the Maximum Residual Guarantee Amount or the Deficiency Balance, as may  be required under the Lease, or the Construction Period Guarantee Amount, as may be  required under the Agency Agreement, (B) any other amount payable upon any exercise of  remedies after the occurrence and continuance of an Event of Default not covered by  Section 8.7(b)(i) or 8.7(b)(iii) above (including any amount received in connection with an  acceleration which does not represent proceeds from the sale or liquidation of the  Property), (C) any amounts payable by the Guarantors pursuant to Section 6B and (D) any  payment of the Termination Value under the Agency Agreement or the Lease, including in  connection with Article V of the Agency Agreement, Article XVII of the Lease or the  exercise of the Purchase Option under Articles XVI or XX of the Lease, in each case shall  be applied and allocated by the Agent:  first, ratably to the payment to the Lessor Parties of the Lessor Yield with  respect to the Lessor Advances and then to the advance amount balance of the  Lessor Advances; and  second, to the extent moneys remain after application and allocation  pursuant to clause first above, to all other amounts owing under the Operative  Agreements to the Lessor Parties then outstanding.  (v) An amount equal to any such payment identified as Supplemental Rent  shall be applied and allocated by the Agent to the payment of any amounts then owing to  the Financing Parties and the other parties to the Operative Agreements (or any of them)  (other than any such amounts payable pursuant to the preceding provisions of this  Section 8.7(b)) for which such payment is made in accordance with the provisions of  Operative Agreements; provided, however, that Supplemental Rent received upon the  exercise of remedies after the occurrence and continuance of an Event of Default in lieu of  or in substitution of the Maximum Residual Guarantee Amount or as a partial payment  thereon shall be applied and allocated as set forth in Section 8.7(b)(iv).  (vi) Any such payment or amount payable to the Agent pursuant to Section  5.11 shall be applied and allocated by the Agent ratably to the Lessor Parties for application  and allocation to the payment of accrued Lessor Yield with respect to the Lessor Advances  and thereafter ratably to the outstanding Lessor Advances on such date.  (vii) The Agent in its reasonable judgment shall identify the nature of each  payment or amount received by the Agent and apply and allocate each such amount in the  manner specified above.  (c) It is agreed that, prior to the application and allocation of amounts received by the  Agent in the order described in Section 8.7(b) above or any distribution of money to the Lessee,  any such amounts shall first be applied and allocated to the payment of (i) any and all sums  

 

71  CHAR1\1917164v13 advanced by the Agent or the Lessor (regarding the Lessor, only to the extent such amounts have  not otherwise been funded by the Lessor Parties in accordance with Section 8.9) in order to preserve  the Collateral or to preserve its Lien thereon, (ii) the expenses of retaking, holding, preparing for  sale or lease, selling or otherwise disposing or realizing on the Collateral, or of any exercise by the  Agent or the Lessor (regarding the Lessor, only to the extent such amounts have not otherwise been  funded by the Lessor Parties in accordance with Section 8.9) of its rights under the Security  Documents, together with reasonable attorneys’ fees and expenses and court costs and (iii) any and  all other amounts reasonably owed to the Agent under or in connection with the transactions  contemplated by the Operative Agreements (including any accrued and unpaid administration fees).  (d) [Reserved].  8.8 Release of Property, etc. (a) If the Lessee shall at any time purchase the Property pursuant to the Lease, or the  Construction Agent shall purchase the Property pursuant to the Agency Agreement, or if the  Property shall be sold in accordance with Article XXI of the Lease, then, upon payment of all  amounts then due and owing by the Lessee and the Construction Agent under the Operative  Agreements, the Agent is hereby authorized and directed to release the Property from the Liens  created by the Operative Agreements to the extent of its interest therein.  In addition, upon the  Payment in Full (unless the Secured Parties retain rights in the Property at such time in accordance  with the Operative Agreements), the Agent is hereby authorized and directed to release the Property  from the Liens created by the Operative Agreements to the extent of its interest therein.  Upon  request of the Lessor or the Lessee following any such release, the Agent shall, at the sole cost and  expense of the Lessee, execute and deliver to the Lessor and the Lessee such documents as the  Lessor or the Lessee shall reasonably request to evidence such release.  (b) Each of the Lessor Parties irrevocably authorizes the Agent, at its option and in its  discretion, to release any Guarantor from its obligations under the Guaranty set forth in Section 6B  of this Agreement if such Person ceases to be a Subsidiary as a result of a transaction permitted  hereunder.  Upon request by the Agent at any time, the Majority Secured Parties will confirm in  writing the Agent’s authority to release any Guarantor from its obligations under the Guaranty  pursuant to this Section 8.8(b).  In each case as specified in this Section 8.8(b), the Agent will,  at the Lessee’s expense, execute and deliver to the applicable Lessor Party such documents as  such Lessor Party may reasonably request (provided, such are in form and substance reasonably  satisfactory to the Agent) to release such Guarantor from its obligations under the Guaranty, in  each case in accordance with the terms of the Operative Agreements and this Section 8.8(b).  8.9 Sharing of Lessor Expenses After Rent Commencement Date.    From and after the Rent Commencement Date, the Lessor Parties shall share costs and expenses (if  any) to be paid by the Lessor pursuant to the Lease ratably based on their then current Lessor Parties  Ownership Interest.  

 

72  CHAR1\1917164v13 SECTION 9.  RIGHTS UNDER SECTION 5A OF THIS AGREEMENT.  9.1 [Reserved]. 9.2 [Reserved]. 9.3 The Construction Agent’s and the Lessee’s Rights under Section 5A of this  Agreement. Notwithstanding anything to the contrary contained in any Operative Agreement, the Credit Parties  and the Lessor Parties hereby agree that, prior to the occurrence and continuation of any Default or Event  of Default, the Construction Agent and the Lessee shall have the following rights (provided, that the Lessee  shall have the right to receive all notices and certificates referenced in this Section 9.3 notwithstanding the  occurrence and continuance of any Default or Event of Default):  (a) the right to provide any notices of repayment or prepayment pursuant to  Section 5A.4 of this Agreement; and  (b) the right to receive any notice and any certificate, in each case issued pursuant to  Section 5A.1 through 5A.5 of this Agreement in addition to the other parties referenced therein to  receive such notices and certificates.  SECTION 10.  TRANSFER OF INTEREST.  10.1 Restrictions on Transfer. Each Lessor Party may participate, assign or transfer all or a portion of its interest hereunder and  under the other Operative Agreements in accordance with Sections 10.4 and 10.5; provided, that in the  event any Lessor Party assigns or transfers all or a portion of its interest hereunder and under the other  Operative Agreements, such Lessor Party shall deliver to the Agent a copy of any such assignment  agreement or other documents referenced in Section 10.5; provided, further, that any such participation,  assignment or other transfer by the Lessor shall be subject to the rights of the Lessee under the Lease and  the other Operative Agreements and to the Lien of the applicable Security Documents and (provided, no  Default or Event of Default has occurred and is continuing) shall require the consent of the Lessee (which  consent may not be unreasonably withheld or delayed); provided, further, notwithstanding the foregoing,  there shall be no such requirement to obtain the consent of the Lessee with regard to the matters effected  pursuant to the Lessor Assignment Agreement.  If any assignment of an interest of any Lessor Party to  Section 10.5 or of the Lessor’s interest pursuant to this Section 10.1 is made at such time that an Event of  Default shall have occurred and be continuing, then the Lessee shall pay the expenses incurred in connection  with such assignment.  The requirements of this Agreement that the Lessor assign or transfer its right, title  or interest in or to the Property only to an Eligible Assignee shall not apply to the obligations of the Lessor  to transfer the Property to the Lessee or a third party purchaser pursuant to the Lease or the Agency  Agreement upon payment for the Property in accordance with the terms and conditions of the Lease or the  Agency Agreement.  Subject to the proviso to this sentence, no Guarantor may assign or otherwise transfer (directly or  indirectly pursuant to a merger or other transaction) any of the Operative Agreements or any of their  respective rights or obligations thereunder or with respect to the Property in whole or in part to any Person  without the prior written consent of the Agent and the Lessor Parties; provided, however, that no such  

 

73  CHAR1\1917164v13 consent shall be required for a Guarantor to engage in a transaction permitted by Sections 8.3B(e)(i), (e)(ii)  or (f).  Subject to the provisos to this sentence, neither the Construction Agent nor the Lessee may assign  or otherwise transfer (directly or indirectly pursuant to a merger or other transaction) any of the Operative  Agreements or any of their respective rights or obligations thereunder or with respect to the Property in  whole or in part to any Person (other than any Subsidiary of the Parent (direct or indirect)) without the prior  written consent of the Agent and the Lessor Parties; provided, however, no such consent shall be required  in connection with any such assignment or other transfer (direct or indirect pursuant to a merger or other  transaction) to any Subsidiary of the Parent (direct or indirect); provided, further, and notwithstanding the  preceding proviso, all such assignments and other transfers (including such assignments and other transfers  (direct or indirect pursuant to a merger or other transaction) to any Subsidiary of the Parent (direct or  indirect)) must satisfy all the following terms of this Section 10.1 and, if such terms are not so satisfied,  then any such assignment or other transfer (direct or indirect pursuant to a merger or other transaction)  shall, automatically and without the need for further action, be null and void and of no further force or  effect.  In addition to any consent that may be required by the second sentence of the immediately  preceding paragraph (if any), neither the Construction Agent nor the Lessee may assign or otherwise  transfer (directly or indirectly pursuant to a merger or other transaction) any of the Operative Agreements  or any of their respective rights or obligations thereunder or with respect to the Property in whole or in part  to any Person without satisfaction in full of the following conditions precedent:  (a) the Construction Agent or the Lessee, as applicable, shall provide prior written  notice to the Agent of such assignment or other transfer no less than ninety (90) days prior to the  anticipated effective date of such assignment or other transfer;   (b) the Credit Parties (including any such assignee or other transferee of the  Construction Agent or the Lessee) shall (when applicable, as determined by the Agent, in its  reasonable discretion) execute and deliver to the Agent, or cause to be so executed and delivered  with regard to such assignment or other transfer and such assignee or other transferee, all  agreements, documents, instruments, certificates, opinions, evidence of insurance and such other  items, in each case, as required by the Agent, in its reasonable discretion, and in form and substance  satisfactory to the Agent, in its reasonable discretion, including: (i) an assignment and assumption  agreement pursuant to which such assignee or other transferee assumes all liabilities and obligations  of the Construction Agent or the Lessee, as applicable, under or pursuant to the Operative  Agreements and otherwise with regard to the Property; (ii) a certificate regarding such assignee or  other transferee from the Secretary or an Assistant Secretary of such assignee or other transferee  (comparable to the certificates contemplated under Section 5.3(u)); (iii) a legal opinion by counsel  to such assignee or other transferee acceptable to the Agent and addressing such issues as identified  by the Agent and otherwise consistent with the opinions delivered in respect of the Credit Parties  on the date hereof; (iv) UCC, tax and judgment lien searches regarding such assignee or other  transferee (comparable to the searches contemplated under Section 5.3(q)); (v) a reaffirmation by  all remaining Credit Parties of their liabilities and obligations under or pursuant to the Operative  Agreements from and after the effectiveness of such assignment or other transfer; (vi) amendments,  supplements and/or restatements regarding the Operative Agreements and filings of the same in the  appropriate filing offices, in each case as determined necessary or appropriate by the Agent, in its  reasonable discretion; (vii) endorsements to the title insurance policy delivered pursuant to Section  5.3(g), as such are determined necessary or appropriate by the Agent, in its reasonable discretion;  (viii) all Taxes, fees and other charges in connection with such assignment or other transfer,  including in connection with the execution, delivery, recording, filing and registration of documents  in connection with such assignment or other transfer (including with regard to any and all UCC  Financing Statements), the out-of-pocket fees and expenses incurred by the Agent (including  

 

74  CHAR1\1917164v13 reasonable fees of outside counsel) and the cost of title insurance endorsements shall have been  paid by the Construction Agent or the Lessee, as applicable, or provision for such payment  (including pursuant to a Lessor Advance) shall have been made by the Construction Agent or the  Lessee, as applicable; (ix) a certificate of insurance evidencing the insurance with respect to the  Property as required by the Lease or the Agency Agreement, as applicable; (x) UCC Financing  Statements; and (xi) such other items in regard to such assignment or other transfer as are identified  by the Agent, in its reasonable discretion; and  (c) there shall not have occurred and be continuing any Default or Event of Default,  as of the effective date of such assignment or other transfer.  Notwithstanding any provision in any Operative Agreement to the contrary, no assignment or other  transfer by the Construction Agent or the Lessee, as applicable, shall be effective unless and until the Agent  has confirmed to its satisfaction, in its reasonable discretion, that all conditions precedent for such  assignment or other transfer have been satisfied, and any such assignment or other transfer effected without  such confirmation by the Agent shall (without the need for any further action) be null and void and of no  further force or effect.  10.2 Effect of Transfer. From and after any transfer effected in accordance with this Section 10, the transferor shall be  released, to the extent of such transfer, from its liability hereunder and under the other documents to which  it is a party in respect of obligations to be performed on or after the date of such transfer; provided, however,  that any transferor shall remain liable hereunder and under such other documents to the extent that the  transferee shall not have assumed the obligations of the transferor thereunder.  Upon any transfer by any  Lessor Parties as above provided, any such transferee shall assume the obligations of the applicable Lessor  Party and shall be deemed a “Lessor Party” for all purposes of such documents and each reference herein  to the transferor shall thereafter be deemed a reference to such transferee for all purposes, except as provided  in the preceding sentence.  Notwithstanding any transfer of all or a portion of the transferor’s interest as  provided in this Section 10, the transferor shall be entitled to all benefits accrued and all rights vested prior  to such transfer including rights to indemnification under any such document.  10.3 Successor Agent.  The Agent may, at any time, resign upon twenty (20) days’ written notice to the Lessor Parties and  the Lessee and be removed with cause by the Lessor Parties upon thirty (30) days’ written notice to the  Agent.  Upon any such resignation or removal, the Majority Secured Parties, in consultation with the Lessee,  shall have the right to appoint a successor Agent.  If no successor Agent shall have been so appointed, and  shall have accepted such appointment, within thirty (30) days after the notice of resignation or notice of  removal, as appropriate, then the retiring Agent shall select a successor Agent provided such successor is a  Lessor Party or a commercial bank organized under the laws of the United States of America or of any State  thereof, has a combined capital and surplus of at least $100,000,000 or an Affiliate of any such commercial  bank.  Upon the acceptance of any appointment as the Agent hereunder by a successor, such successor  Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of  the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations as the Agent  under the Operative Agreements. The fees payable by the Lessee to a successor Agent shall be the same as  those payable to its predecessor unless agreed between the Lessee and such successor.  Notwithstanding  the foregoing, the provisions of Section 8.6 shall inure to the benefit of the retiring Agent as to any actions  taken or omitted to be taken by it while it was the Agent under the Operative Agreements.  

 

75  CHAR1\1917164v13 10.4 Participations.  Subject to and in accordance with Section 10.1, any Lessor Party may, in the ordinary course of its  business and in accordance with Applicable Law and at its own cost and expense, at any time sell to one (1)  or more banks, lending institutions or other entities ((other than a holding company, investment vehicle or  trust for, or owned and operated for the primary benefit of, a natural Person, or a competitor of any Credit  Party) (each, a “Participant”) participating interests in any Lessor Advance owing to such Lessor Party, any  Lessor Parties Commitment of such Lessor Party or any other interest of such Lessor Party under the  Operative Agreements; provided, that any such sale of a participating interest shall be in a Lessor Advance  amount of at least $2,000,000 or such lesser amount constituting such Lessor Party’s entire interest in the  Operative Agreements.  In the event of any such sale by a Lessor Party of a participating interest to a  Participant, such Lessor Party’s obligations under the Operative Agreements to the other parties to this  Agreement shall remain unchanged, such Lessor Party shall remain solely responsible for the performance  thereof, such Lessor Party shall remain the holder of its Lessor Parties Interest for all purposes under the  Operative Agreements, and the Credit Parties and the Agent shall continue to deal solely and directly with  such Lessor Party in connection with such Lessor Party’s rights and obligations under the Operative  Agreements.  In no event shall any Participant have any right to approve any amendment or waiver of any  provision of any Operative Agreement, or any consent to any departure by any Credit Party or any other  Person therefrom, except to the extent that such amendment, waiver or consent would (a) reduce any Lessor  Advance or Lessor Yield on any Lessor Advance, or postpone the date of the final maturity of any Lessor  Advance, in each case to the extent subject to such participation or (b) release all or substantially all of the  collateral pursuant to the Security Documents.  The Credit Parties agree that, while an Event of Default  shall have occurred and be continuing, if amounts outstanding by any Credit Party under the Operative  Agreements are due or unpaid, or shall have become due and payable upon the occurrence of an Event of  Default, each Participant shall, to the maximum extent permitted by Applicable Law, but only after  obtaining the prior written consent of the Majority Secured Parties prior to exercising any right of set-off,  be deemed to have the right of set-off in respect of its participating interests in amounts owing directly to  it as a Lessor Party, provided, that in purchasing such participating interest, such Participant shall be deemed  to have agreed to share with the Lessor Parties the proceeds thereof as provided in Section 12.15 as fully  as if it were a Lessor Party hereunder.  The Credit Parties also agree that each Participant shall be entitled  to the benefits of, and shall be subject to the obligations and limitations under, Sections 11.2, 11.3 and 11.4  with respect to its participation in the Lessor Parties Commitments and the Lessor Advances outstanding  from time to time as if it was a Lessor Party; provided, that such Participant shall have complied with the  requirements of said Sections and provided, further, that no Participant shall be entitled to receive any  greater amount pursuant to any such Section than the transferor Lessor Party would have been entitled to  receive in respect of the amount of the participation transferred by such transferor Lessor Party to such  Participant had no such transfer occurred and provided, further, that the Lessor Parties and the Participants,  taken as a whole, shall not be entitled to receive any greater amount pursuant to any such Section than the  original Lessor Party (prior to any participation) would have been entitled to receive pursuant to such  Section.  10.5 Assignments.  (a) Subject to and in accordance with Section 10.1, any Lessor Party may, in the  ordinary course of its business and in accordance with Applicable Law and at its own cost and  expense, at any time and from time to time assign to any Eligible Assignee (each, a “Purchasing  Lessor Party”), all or any part of its rights and obligations under this Agreement and the other  Operative Agreements pursuant to an assignment and acceptance, in form and substance reasonably  acceptable to the Agent, executed by such Purchasing Lessor Party, such assigning Lessor Party  and the Agent and delivered to the Agent for its acceptance and recording in the Register; provided,  that no such assignment to a Purchasing Lessor Party (other than any Lessor Party or any affiliate  

 

76  CHAR1\1917164v13 thereof) shall be in an aggregate advance amount less than $2,000,000 (other than in the case of an  assignment of all of a Lessor Party’s interests under the Operative Agreements); provided, further,  to the extent no Default or Event of Default shall have occurred and be continuing, any such  assignment (other than to a Lessor Party or its Affiliates) shall be subject to the consent (not to be  unreasonably withheld or delayed) by the Lessee; provided, further, upon the occurrence and during  the continuance of any Event of Default, (i) any Lessor Party may assign to any Person (regardless  of whether such Person is an Eligible Assignee; provided that, in no event, shall any assignment be  made to any competitor of any Credit Party even if an Event of Default has occurred) all or any  part of such Lessor Party’s rights and obligations under the Operative Agreements pursuant to an  assignment and acceptance, in form and substance reasonably satisfactory to the Agent, and  (ii) there shall be no minimum aggregate advance amount required for any such assignment.  Upon  such execution, delivery, acceptance and recording, from and after the effective date determined  pursuant to such assignment and acceptance, (x) the Purchasing Lessor Party thereunder shall be a  party hereto and, to the extent provided in such assignment and acceptance, have the rights and  obligations of a Lessor Party hereunder with a Lessor Parties Interest as set forth therein, and (y) the  assigning Lessor Party thereunder shall, to the extent provided in such assignment and acceptance,  be released from its obligations under this Agreement (and, in the case of an assignment and  acceptance covering all of the remaining portion of an assigning Lessor Party’s rights and  obligations under the Operative Agreements, such assigning Lessor Party shall cease to be a party  hereto).  (b) Upon its receipt of an assignment and acceptance, in form and substance  reasonably satisfactory to the Agent, executed by an assigning Lessor Party, a Purchasing Lessor  Party and the Agent together with payment to the Agent of a registration and processing fee of  $3,500 (which, subject to Section 5A.7(b), shall not be payable by the Construction Agent or the  Lessee), the Agent shall (i) promptly accept such assignment and acceptance and (ii) promptly after  the effective date determined pursuant thereto, record the information contained therein in the  Register and give notice of such acceptance and recordation to the Lessee and the Lessor Parties.  (c) Each Purchasing Lessor Party, by executing and delivering an assignment and  acceptance,  (i) agrees to execute and deliver to the Agent, as promptly as practicable, the  documentation described in Section 11.2(e), as applicable;  (ii) represents and warrants to the Lessee and the Agent that the form so  delivered is true and accurate and that, as of the effective date of the assignment and  acceptance, each of such Purchasing Lessor Party’s lending offices is entitled to receive  payments of advance amount and Lessor Yield under or in respect of this Agreement  without withholding or deduction for or on account of any U.S. Taxes;  (iii) agrees to update the forms delivered pursuant to clause (i) if such forms  expire or become obsolete or inaccurate unless an event has occurred which renders the  relevant form inapplicable (it being understood that if the applicable form is not so  delivered, payments under or in respect of the Operative Agreements may be subject to  withholding and deduction and such Purchasing Lessor Party may not have any rights to  indemnity for such withholding and deduction under Section 11.2(e) as provided therein);  (iv) agrees to promptly notify the Lessee and the Agent in writing if it ceases  to be entitled to receive payments of advance amount and Lessor Yield under or in respect  of the Operative Agreements without withholding or deduction for or on account of any  

 

77  CHAR1\1917164v13 U.S. Taxes (it being understood that payments under or in respect of the Operative  Agreements may be subject to withholding and deduction in such event);  (v) acknowledges that in the event it ceases to be exempt from withholding  and/or deduction of U.S. Taxes, the Agent may withhold and/or deduct the applicable  amount from any payments to which such assignee Lessor Party would otherwise be  entitled, without any liability to such assignee Lessor Party therefor; and  (vi) agrees to indemnify the Lessee and the Agent from and against any and all  liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs or  expenses that result from such assignee Lessor Party’s breach of any such representation,  warranty or agreement;  provided, however, that the foregoing provisions of this Section 10.5 shall not apply to any  Purchasing Lessor Party to the extent it is not legally eligible to provide such forms and is entitled  to indemnification from U.S. withholding taxes under Section 11.2(e) under the circumstances  described in clause (a) of Section 11.2(e)(i).  (d) Any Lessor Party party to this Agreement may, from time to time and without the  consent of the Lessee or any other Person, pledge or assign for security purposes any portion of its  Lessor Parties Interest or any other interests in the Operative Agreements to any Federal Reserve  Bank.  (e) In connection with any assignment of rights and obligations under the Operative  Agreements of any Defaulting Lessor Party, no such assignment shall be effective unless and until,  in addition to the other conditions thereto set forth herein, the parties to the assignment shall make  such additional payments to the Agent in an aggregate amount sufficient, upon distribution thereof  as appropriate (which may be outright payment, purchases by the assignee of participations or  subparticipations, or other compensating actions, including funding, with the consent of the Lessee  and the Agent, the applicable Pro Rata Share of Lessor Advances previously requested but not  funded by the Defaulting Lessor Party, to each of which the applicable assignee and assignor hereby  irrevocably consent), to (A) pay and satisfy in full all payment liabilities then owed by such  Defaulting Lessor Party to the Agent or any Lessor Party under any Operative Agreement (and  interest accrued thereon) and (B) acquire (and fund as appropriate) its full Pro Rata Share of all  Lessor Advances in accordance with the percentage corresponding to the applicable Lessor Parties  Commitment of the assignor.  Notwithstanding the foregoing, in the event that any assignment of  rights and obligations under the Operative Agreements of any Defaulting Lessor Party shall become  effective under Applicable Law without compliance with the provisions of this paragraph, then the  assignee of such interest shall be deemed to be a Defaulting Lessor Party for all purposes of the  Operative Agreements until such compliance occurs.  No assignment by a Defaulting Lessor Party  will constitute a waiver or release of any claim of any party hereunder arising from that Lessor  Party’s having been a Defaulting Lessor Party.  Any assignment or transfer by a Lessor Party of  rights or obligations under the Operative Agreements that does not comply with this subsection  shall be treated for purposes of the Operative Agreements as a sale by such Lessor Party of a  participation in such rights and obligations in accordance with this Agreement.  10.6 The Register; Disclosure.  The Agent shall maintain for the benefit of the Lessor Parties a copy of each assignment and  acceptance delivered to it and a register (the “Register”) for the recordation of the names and addresses of  the Lessor Parties, the Lessor Parties Commitments of the Lessor Parties, the Commitment Percentages of  

 

78  CHAR1\1917164v13 the Lessor Parties, the Percentage Shares of the Lessor Parties and the amount of outstanding Lessor  Advances owing to each Lessor Party from time to time.  The entries in the Register shall be conclusive, in  the absence of clearly demonstrable error, and the Credit Parties, the Agent and the Lessor Parties may treat  each Person whose name is recorded in the Register as the owner of the Lessor Parties Interests recorded  therein for all purposes of the Operative Agreements.  The Register shall be available for inspection by the  Lessee or any Lessor Party at any reasonable during normal business hours of the Agent and from time to  time upon reasonable notice.  SECTION 11.  INDEMNIFICATION.  11.1 General Indemnity. Subject to Sections 11.2 (regarding indemnification matters concerning Impositions) and 11.6,  whether or not any of the transactions contemplated hereby shall be consummated, the Indemnity Provider  hereby assumes liability for and agrees to defend, indemnify and hold harmless each Indemnified Person  on an After Tax Basis from and against any Claims which may be imposed on, incurred by or asserted  against an Indemnified Person by any third party (including any other Indemnified Person), including  Claims arising from the negligence of such Indemnified Person (but, in each case, not to the extent (1) such  Claims arise from the gross negligence or willful misconduct of such Indemnified Person itself, as  determined by a court of competent jurisdiction in a final nonappealable judgment, as opposed to gross  negligence or willful misconduct imputed to such Indemnified Person; (2) disputes solely between or  among Indemnified Persons and not relating to or in connection with acts or omissions by the Lessee or  any other Credit Party; (3) such Claims result from a claim brought by any Credit Party against an  Indemnified Person for breach in bad faith of such Indemnified Person’s obligations hereunder or under  any other Operative Agreement, if such Credit Party has obtained a final and nonappealable judgment in its  favor on such claim as determined by a court of competent jurisdiction; (4) the Indemnity Provider was not  given notice of the subject claim and the opportunity to participate in the defense thereof, at its expense  (except that each Credit Party shall remain liable to the extent such failure to give notice does not result in  a loss of such Credit Party); or (5) the same results from a compromise or settlement agreement entered  into without the consent of the Indemnity Provider, which shall not be unreasonably withheld), whether or  not such Indemnified Person shall also be indemnified as to any such Claim by any other Person and  whether or not such Claim is initiated after the Termination Date, so long as such Claim arises out of an act  or omission (or other circumstance or condition of any kind or description) which arose or occurred prior  to the Termination Date, in any way relating to or arising or alleged to relate to, or arise out of the execution,  delivery, performance or enforcement of this Agreement, the Lease, the Agency Agreement or any other  Operative Agreement or on or with respect to the Property or any component thereof, including Claims in  any way relating to or arising or alleged to arise out of (a) the financing, refinancing, purchase, acceptance,  rejection, ownership, design, construction, refurbishment, development, delivery, nondelivery, leasing,  subleasing, possession, use, occupancy, operation, maintenance, repair, modification, transportation,  condition, sale, return, repossession (whether by summary proceedings or otherwise), or any other  disposition of the Property or any part thereof, including the acquisition, holding or disposition of any  interest in the Property, lease or agreement comprising a portion of any thereof; (b) any latent or other  defects in the Property or any portion thereof whether or not discoverable by an Indemnified Person or the  Indemnity Provider; (c) any violation or alleged violation of law or in tort (strict liability or otherwise);  (d) any Claim based upon a violation or alleged violation of the terms of any restriction, easement, condition  or covenant or other matter affecting title to the Property; (e) any violation of or noncompliance with (or  alleged violation or noncompliance with) any Environmental Laws, any Environmental Claims or any loss  of or damage to any property or the environment relating to the Property, the Lease or the Indemnity  Provider; (f) the Operative Agreements, or any transaction contemplated thereby (including the formation,  continuance, operation and ultimate dissolution and liquidation of the Lessor) or any amendment,  

 

79  CHAR1\1917164v13 modification or waiver thereof or the exercise of remedies under any Operative Agreement following the  occurrence and continuance of any Event of Default; (g) any breach by the Indemnity Provider, the  Construction Agent or any Guarantor of any of its representations or warranties under the Operative  Agreements to which the Indemnity Provider, the Construction Agent or any Guarantor is a party or failure  by the Indemnity Provider, the Construction Agent or any Guarantor to perform or observe any covenant  or agreement to be performed by it under any of the Operative Agreements; (h) the making of any  Modifications in violation of the Operative Agreements or any standards imposed by any insurance policies  required to be maintained by the Lessee pursuant to the Lease which are in effect at any time with respect  to the Property or any part thereof; (i) any Claim for patent, trademark or copyright infringement; (j) the  transactions contemplated hereby or by any other Operative Agreement, in respect of the application of  Parts 4 and 5 of Subtitle B of Title I of ERISA; (k) personal injury, death or property damage, including  Claims based on strict or absolute liability in tort; (l) any fees, expenses and/or other assessments by any  business park or any other applicable entity with oversight responsibility for the Property; (m) the retaining  or employment of any broker, finder or financial advisor by any Credit Party to act on its behalf in  connection with this Agreement or the other Operative Agreements; (n) Claims arising from any public  improvements with respect to the Property resulting in any change or special assessments being levied  against the Property or any plans to widen, modify or realign any street or highway adjacent to the Property,  or any Claim for utility “tap-in” fees; (o) except in all cases for the existence of Lessor Liens and Liens  created under the Operative Agreements in favor of any Financing Party, the existence of any Lien on or  with respect to the Property, the Improvements or any Equipment relating thereto, title thereto, any interest  therein or on any Basic Rent or Supplemental Rent, including any Liens which arise out of the possession,  use, occupancy, construction, repair or rebuilding of the Property or by reason of labor or materials  furnished or claimed to have been furnished to the Lessee or the Lessor or any predecessor in title, or any  of its contractors or agents or by reason of the financing of any personalty or equipment purchased or leased  by the Lessee or the Lessor or any predecessor in title or Modifications constructed by the Lessee.  If a written Claim is made against any Indemnified Person or if any proceeding shall be commenced  against such Indemnified Person (including a written notice of such proceeding), for any Claim, such  Indemnified Person shall promptly notify the Indemnity Provider in writing and shall not take action with  respect to such Claim without the consent of the Indemnity Provider for thirty (30) days after the receipt of  such notice by the Indemnity Provider; provided, however, that in the case of any such Claim, if action  shall be required by law or regulation to be taken prior to the end of such period of thirty (30) days, such  Indemnified Person shall endeavor to, in such notice to the Indemnity Provider, inform the Indemnity  Provider of such shorter period, and no action shall be taken with respect to such Claim without the consent  of the Indemnity Provider before seven (7) days before the end of such shorter period; provided, further,  that the failure of such Indemnified Person to give the notices referred to in this sentence shall not diminish  the Indemnity Provider’s obligation hereunder except to the extent such failure precludes in any material  respect the Indemnity Provider from contesting such Claim.  If, within thirty (30) days of receipt of such notice from the Indemnified Person (or such shorter  period as the Indemnified Person has notified the Indemnity Provider is required by law or regulation for  the Indemnified Person to respond to such Claim), the Indemnity Provider shall request in writing that such  Indemnified Person respond to such Claim, the Indemnified Person shall, at the expense of the Indemnity  Provider, in good faith conduct and control such action (including by pursuit of appeals) by, in the sole  discretion of the Person conducting and controlling such action (1) resisting payment thereof, (2) not paying  the same except under protest, if protest is necessary and proper, (3) if the payment be made, using  reasonable efforts to obtain a refund thereof in appropriate administrative and judicial proceedings, or  (4) taking such other action as is reasonably requested by the Indemnity Provider from time to time  (provided, however, that (A) if such Claim, in the Indemnity Provider’s reasonable discretion, can be  pursued by the Indemnity Provider on behalf of or in the name of such Indemnified Person, the Indemnified  Person, at the Indemnity Provider’s request, shall allow the Indemnity Provider to conduct and control the  

 

80  CHAR1\1917164v13 response to such Claim unless such Claim cannot be pursued independently from any other claim involving  such Indemnified Person or unless such Claim is unrelated to the Property or the transactions contemplated  by the Operative Agreements and (B) in the case of any Claim (and notwithstanding the provisions of the  foregoing subsection (A)), the Indemnified Person may require the Indemnity Provider to conduct and  control the response to such Claim (with counsel to be selected by the Indemnity Provider and consented  to by such Indemnified Person, such consent not to be unreasonably withheld); provided, however, that any  Indemnified Person may retain separate counsel at the expense of the Indemnity Provider if, in the written  opinion of counsel to the Indemnified Person reasonably acceptable to the Indemnity Provider (the expense  of which opinion shall be paid by the Indemnity Provider), use of counsel of the Indemnity Provider’s  choice would be expected to give rise to a conflict of interest between such Indemnified Person and the  Indemnity Provider).  The party controlling the response to any Claim shall consult in good faith with the non-controlling  party and shall keep the non-controlling party reasonably informed as to the conduct of the response to such  Claim; provided, that all decisions ultimately shall be made in the discretion of the controlling party.  The  parties agree that an Indemnified Person may at any time decline to take further action with respect to the  response to such Claim and may settle such Claim if such Indemnified Person shall waive its rights to any  indemnity from the Indemnity Provider that otherwise would be payable in respect of such Claim (and any  future Claim, the pursuit of which is precluded by reason of such resolution of such Claim) and shall pay  to the Indemnity Provider any amount previously paid or advanced by the Indemnity Provider pursuant to  this Section 11.1 by way of indemnification or advance for the payment of an amount regarding such Claim  (not including the expenses of the contest).  Notwithstanding the foregoing provisions of this Section 11.1, an Indemnified Person shall not be  required to take any action and the Indemnity Provider shall not be permitted to respond to any Claim in its  own name or that of the Indemnified Person unless (A) the Indemnity Provider shall have agreed in writing  to pay and shall pay to such Indemnified Person on demand and on an After Tax Basis all reasonable costs,  losses and expenses that such Indemnified Person actually incurs in connection with such Claim, including  all reasonable legal, accounting and investigatory fees and disbursements and the Indemnity Provider shall  have agreed in writing to indemnify such Indemnified Person in respect of the Claim if and to the extent  the contest is not successful, (B) the Indemnified Person shall have reasonably determined that the action  to be taken will not result in any material danger of sale, forfeiture or loss of the Property, or any part  thereof or interest therein, will not interfere with the payment of Rent, and will not result in risk of criminal  liability or civil penalty or risk of sale, forfeiture or loss of or the creation of any Lien (other than a Permitted  Lien) on the Property, (C) if such Claim shall involve the payment of any amount prior to the resolution of  such Claim, the Indemnity Provider shall provide to the Indemnified Person an interest-free advance in an  amount equal to the amount that the Indemnified Person is required to pay (with no additional net after-Tax  cost to such Indemnified Person) prior to the date such payment is due, (D) in the case of an appeal of an  adverse determination respecting a Claim that must be pursued in the name of an Indemnified Person (or  an Affiliate thereof), the Indemnity Provider shall have provided to such Indemnified Person an opinion of  independent counsel selected by the Indemnity Provider and reasonably satisfactory to the Indemnified  Person stating that a reasonable basis exists to pursue such an appeal, and (E) no Default or Event of Default  shall have occurred and be continuing.  In no event shall an Indemnified Person be required to appeal an  adverse judicial determination to the United States Supreme Court.  In addition, an Indemnified Person  shall not be required to contest any Claim in its name (or that of an Affiliate) if the subject matter thereof  shall be of a continuing nature and shall have previously been decided adversely by a court of competent  jurisdiction pursuant to the contest provisions of this Section 11.1, unless there shall have been a change in  Law (or interpretation thereof) and the Indemnified Person shall have received, at the Indemnity Provider’s  expense, an opinion of independent counsel selected by the Indemnity Provider and reasonably acceptable  to the Indemnified Person stating that as a result of such change in Law (or interpretation thereof), it is more  likely than not that the Indemnified Person will prevail in such contest.  In no event shall the Indemnity  

 

81  CHAR1\1917164v13 Provider be permitted to adjust or settle any Claim without the consent of the Indemnified Person to the  extent any such adjustment or settlement involves, or is reasonably likely to involve, any performance by  or adverse admission by or with respect to the Indemnified Person.  11.2 General Tax Indemnity. (a) Subject to Section 11.6, the Indemnity Provider shall pay and assume liability for,  and does hereby agree to indemnify, protect and defend the Property and all Indemnified Persons,  and hold them harmless against, all Impositions on an After Tax Basis, and all payments pursuant  to the Operative Agreements shall be made free and clear of and without deduction or Withholding  for any and all present and future Impositions, except as required by Applicable Law.  If deduction  or Withholding from any such payment is required by Applicable Law and such deduction or  Withholding is subject to indemnification by the Indemnity Provider under the provisions of this  Section 11.2, then such payment amount shall be increased as necessary so that after making all  required deductions and Withholdings (including deductions and Withholdings applicable to  additional sums payable under this Section 11.2(a)) the applicable recipient of such payment  receives an amount equal to the sum it would have received had no such deduction or Withholding  been made.  (b) Notwithstanding anything to the contrary in Section 11.2(a) hereof, the following  shall be excluded from the indemnity required by Section 11.2(a):  (i) Taxes (other than Taxes that are, or are in the nature of, sales, use, rental,  value added, transfer or property Taxes) that are imposed on or measured by net income  (however denominated and including the Texas franchise Tax on taxable margin, Taxes  based on capital gains and minimum Taxes), net worth, or capital stock, franchise Taxes,  gross receipts Taxes and branch profits Taxes, in each case, imposed as a result of an  Indemnified Person (A) being organized under the laws of, or having its principal office  or, in the case of any Financing Party, its applicable lending office located in, the  jurisdiction imposing such Taxes (or any political subdivision thereof) or (B) having a  present or former connection with the jurisdiction imposing such Taxes; provided, that  such Taxes shall not be excluded under this subparagraph (i) to the extent the sole  connection between such Indemnified Person and the jurisdiction imposing such Taxes is  (I) the location, possession or use of the Property in, the location or the operation of the  Lessee or any use of the Property in, or the making of payments by or on behalf of the  Lessee under the Operative Agreements from, the jurisdiction imposing such Taxes and/or  (II) the activities of any one or more of the Indemnified Persons in the jurisdiction imposing  the Taxes in connection with its or their enforcement of remedies under the Operative  Agreements; provided, further, that this clause (i) shall not be interpreted to prevent a  payment from being made on an After Tax Basis if such payment is otherwise required to  be so made; and  (ii) any Taxes which are imposed on an Indemnified Person as a result of the  gross negligence or willful misconduct of such Indemnified Person itself, as determined by  a court of competent jurisdiction in a final nonappealable judgment (as opposed to gross  negligence or willful misconduct imputed to such Indemnified Person), but not Taxes  imposed as a result of ordinary negligence of such Indemnified Person.  (c) (i) Subject to the terms of Sections 11.2(f) and 11.6, the Indemnity Provider  shall pay or cause to be paid all Impositions directly to the applicable Governmental Authority  where feasible and otherwise to the Indemnified Person, as appropriate, and the Indemnity Provider  

 

82  CHAR1\1917164v13 shall at its own expense, upon such Indemnified Person’s reasonable request, furnish to such  Indemnified Person copies of official receipts or other satisfactory proof evidencing such payment.  (ii) In the case of Impositions for which no contest is conducted pursuant to  Section 11.2(f) and which the Indemnity Provider pays directly to the applicable  Governmental Authority, the Indemnity Provider shall (subject to Section 11.6) pay such  Impositions prior to the latest time permitted by the relevant Governmental Authority for  timely payment.  In the case of Impositions for which the Indemnity Provider reimburses  an Indemnified Person, the Indemnity Provider shall do so within thirty (30) days after  receipt by the Indemnity Provider of demand by such Indemnified Person describing in  reasonable detail the nature of the Imposition and the basis for the demand (including the  computation of the amount payable), accompanied by receipts, if available, or other  reasonable evidence of such demand (and shall make advances with respect to such  Impositions in the manner and to the extent provided by Section 11.2(f) and 11.1 prior to  such date).  In the case of Impositions for which a contest is conducted pursuant to  Section 11.2(f), the Indemnity Provider shall (subject to Section 11.6) pay such  Impositions or reimburse such Indemnified Person for such Impositions, to the extent not  previously paid, advanced or reimbursed pursuant to subsection (a) or (f), prior to the latest  time permitted by the relevant Governmental Authority for timely payment after  conclusion of all contests under Section 11.2(f) (and shall make advances with respect to  such Impositions in the manner and to the extent provided by Section 11.2(f) and 11.1 prior  to such date).  (iii) At the Indemnity Provider’s request, the amount of any indemnification  payment by the Indemnity Provider pursuant to subsection (a) shall be verified and certified  by an independent public accounting firm mutually acceptable to the Indemnity Provider  and the Indemnified Person.  The fees and expenses of such independent public accounting  firm shall be paid by the Indemnity Provider.  (d) The Indemnity Provider shall be responsible for preparing and filing (i) any real  and personal property or ad valorem Tax returns in respect of the Property and (ii) any other Tax  returns required of the Lessor respecting the transactions described in the Operative Agreements  (but in the case of Tax returns described in clause (ii), other than returns with respect to Taxes  excluded from indemnification pursuant to Section 11.2(b)(i)).  In case any report or Tax return  shall be required to be made with respect to any Tax indemnified by the Indemnity Provider under  subsection (a), the Indemnity Provider, at its sole cost and expense, shall notify the relevant  Indemnified Person of such requirement and (except if such Indemnified Person notifies the  Indemnity Provider that such Indemnified Person intends to prepare and file such report or return)  (A) to the extent required or permitted by and consistent with Legal Requirements, make and file  in the Indemnity Provider’s name such return, statement or report; and (B) in the case of any other  such return, statement or report required to be made in the name of such Indemnified Person, advise  such Indemnified Person of such fact and prepare such return, statement or report for filing by such  Indemnified Person or, where such return, statement or report shall be required to reflect items in  addition to any obligations of the Indemnity Provider under or arising out of subsection (a), provide  such Indemnified Person, at the Indemnity Provider’s expense, with information sufficient to  permit such return, statement or report to be properly made with respect to any obligations of the  Indemnity Provider under or arising out of subsection (a).  Such Indemnified Person shall, upon  the Indemnity Provider’s request and at the Indemnity Provider’s expense, provide any data  maintained by such Indemnified Person (and not otherwise available to or within the control of the  Indemnity Provider) with respect to the Property which the Indemnity Provider may reasonably be  required to prepare any required Tax returns or reports.  

 

83  CHAR1\1917164v13 (e) As between the Indemnity Provider on one hand, and each Financing Party on the  other hand, the Indemnity Provider shall be responsible for, and the Indemnity Provider shall  indemnify and hold harmless each Financing Party (including, for purposes of this Section 11.2(e),  each Participant to the extent such Participant is entitled to the benefit of this provision pursuant to  Section 10.4) (without duplication of any indemnification required by subsection (a) and subject to  Section 11.6) on an After Tax Basis against, any obligation for United States or foreign withholding  Taxes or similar levies, imposts, charges, fees, deductions or withholdings (collectively,  “Withholdings”) imposed in respect of the Lessor Yield payable on the Lessor Advances, Rent  payable under the Lease or with respect to any other payments under the Operative Agreements to  be made without deduction, withholding or set-off (all such payments being referred to herein as  “Exempt Payments”) (including, if any Financing Party receives a demand for such payment from  any Governmental Authority or a Withholding is otherwise required with respect to any Exempt  Payment, the Indemnity Provider shall discharge such demand on behalf of such Financing Party);  provided, however, that the obligation of the Indemnity Provider under this Section 11.2(e) shall  not apply to:  (i) Withholdings on any Exempt Payment to any Financing Party which is a  Non-U.S. Person unless such Financing Party is, on the date hereof (or on the date it  becomes a Financing Party hereunder) and on the date of any change in the principal place  of business or the lending office of such Financing Party, entitled to submit and submits to  the Agent (which shall be available to the Indemnity Provider upon request) an executed  IRS Form W-8BEN, Form W-8BEN-E, Form W-8IMY, Form W-8ECI or other applicable  forms (relating to such Financing Party and entitling it to a complete exemption from  Withholding on such Exempt Payment) or is otherwise subject to exemption from  Withholding with respect to such Exempt Payment (except (a) in the case of a transferee,  if the transferring Financing Party was being indemnified against Withholdings at the time  of transfer as a result of a change in Law after the Initial Closing Date (or, if later, the date  the transferring Financing Party became a Financing Party hereunder) or (b) where the  failure of the exemption results from a change in the principal place of business of the  Lessee);  (ii) Any U.S. Taxes imposed solely by reason of the failure by a Non-U.S.  Person to comply with applicable certification, information, documentation or other  reporting requirements concerning the nationality, residence, identity or connections with  the United States of America of such Non-U.S. Person if such compliance is required by  statute or regulation of the United States as a precondition to relief or exemption from such  U.S. Taxes (but only if the Non-U.S. Person can legally comply with such requirement);  (iii) Withholdings on any Exempt Payment to any Financing Party which is a  U.S. Person unless such Financing Party has delivered to the Agent (which shall be  available to the Indemnity Provider upon request), on or before the date it becomes a  Financing Party hereunder, an executed IRS Form W-9 certifying that such Financing Party  is exempt from U.S. federal backup withholding Tax; or  (iv) U.S. federal Withholdings imposed under FATCA.  For the purposes of this Section 11.2(e), (A) “U.S. Person” shall mean a citizen, national  or resident of the United States, a corporation, partnership or other entity created or organized in  or under any laws of the United States or any State thereof, or any estate or trust that is subject to  Federal income taxation regardless of the source of its income and (B) “U.S. Taxes” shall mean  

 

84  CHAR1\1917164v13 any present or future Tax, assessment or other charge or levy imposed by or on behalf of the United  States or any taxing authority thereof or therein.  If a Financing Party or an Affiliate with whom such Financing Party files a consolidated  Tax return (or equivalent) subsequently receives the benefit in any country of a Tax credit or an  allowance resulting from U.S. Taxes with respect to which it has received a payment of an  additional amount under this Section 11.2(e), so long as no Event of Default has occurred and is  continuing (or at such time as such Event of Default is no longer continuing), such Financing Party  will pay to the Indemnity Provider such part of that benefit as in the reasonable opinion of such  Financing Party will leave it (after such payment) in a position no more and no less favorable than  it would have been in if no additional payment had been required to be paid, provided always that  (i) such Financing Party will be the sole judge of the amount of any such benefit and of the date on  which it is received, (ii) such Financing Party will have the absolute discretion as to the order and  manner in which it employs or claims Tax credits and allowances available to it and (iii) such  Financing Party will not be obliged to disclose to the Indemnity Provider any information regarding  its Tax affairs or Tax computations.  Each U.S. Person and Non-U.S. Person that shall become a Financing Party after the date  hereof shall, upon the effectiveness of the related transfer or otherwise upon becoming a Financing  Party hereunder, be required to provide all of the forms and statements referenced above or other  evidences of exemption from Withholdings to the Agent, which shall be available to the Indemnity  Provider upon request (unless the transferor of such Financing Party was being indemnified against  Withholding at the time of the transfer as a result of a change in Law after the Initial Closing Date,  in which case such forms and statements shall evidence a rate of Withholding that does not exceed  the rate of Withholding applicable to Exempt Payments to the transferor).  (f) If an Imposition is made against any Indemnified Person or if any proceeding shall  be commenced against such Indemnified Person (including a written notice of such proceeding),  for any Imposition, such Indemnified Person shall promptly notify the Indemnity Provider in  writing and shall not take action with respect to such Imposition without the consent of the  Indemnity Provider (such consent not to be unreasonably withheld, conditioned or delayed) for  thirty (30) days after the receipt of such notice by the Indemnity Provider; provided, however, that  in the case of any such Imposition, if action shall be required by Applicable Law to be taken prior  to the end of such period of thirty (30) days, such Indemnified Person shall, in such notice to the  Indemnity Provider, inform the Indemnity Provider of such shorter period, and no action shall be  taken with respect to such Imposition without the consent of the Indemnity Provider (such consent  not to be unreasonably withheld, conditioned or delayed) before seven (7) days before the end of  such shorter period; provided, further, that the failure of such Indemnified Person to give the notices  referred to in this sentence shall not diminish the Indemnity Provider’s obligation hereunder except  to the extent such failure effectively precludes the Indemnity Provider from contesting such  Imposition. If, within thirty (30) days of receipt of such notice from the Indemnified Person (or such  shorter period as the Indemnified Person has notified the Indemnity Provider is required by  Applicable Law for the Indemnified Person to respond to such Imposition), the Indemnity Provider  shall request in writing that such Indemnified Person contest such Imposition, the Indemnified  Person shall, at the expense of the Indemnity Provider, in good faith conduct and control such  action with counsel selected by the Indemnified Person and consented to by the Indemnity Provider,  such consent not to be unreasonably withheld (including by pursuit of appeals) by, in the sole  discretion of the Person conducting and controlling such action (1) resisting payment thereof,  (2) not paying the same except under protest, if protest is necessary and proper, (3) if the payment  

 

85  CHAR1\1917164v13 be made, using reasonable efforts to obtain a refund thereof in appropriate administrative and  judicial proceedings, or (4) taking such other action as is reasonably requested by the Indemnity  Provider from time to time provided that such other action cannot reasonably be expected to have  any adverse effect on the Indemnified Person (provided, however, that (A) if such contest, in the  Indemnified Person’s reasonable discretion, can be pursued by the Indemnity Provider in its own  name, the Indemnified Person, at the Indemnity Provider’s request, shall allow the Indemnity  Provider to conduct and control the contest of such Imposition unless such Imposition cannot be  pursued independently from any other claim involving such Indemnified Person or unless such  Imposition is unrelated to the Property or the transactions contemplated by the Operative  Agreements and (B) in the case of any Imposition (and notwithstanding the provisions of the  foregoing subsection (A)), the Indemnified Person may require the Indemnity Provider to conduct  and control the contest of such Imposition (with counsel to be selected by the Indemnity Provider  and consented to by such Indemnified Person, such consent not to be unreasonably withheld);  provided, however, that any Indemnified Person may retain separate counsel at the expense of the  Indemnity Provider if, in the written opinion of counsel to the Indemnified Person reasonably  acceptable to the Indemnity Provider (the expense of which opinion shall be paid by the Indemnity  Provider), use of counsel of the Indemnity Provider’s choice would be expected to give rise to a  conflict of interest between such Indemnified Person and the Indemnity Provider).  The party controlling the contest of any Imposition shall consult in good faith with the  non-controlling party and shall keep the non-controlling party reasonably informed as to the  conduct of the contest of such Imposition; provided, that all decisions ultimately shall be made in  the discretion of the controlling party.  The parties agree that an Indemnified Person may at any  time decline to take further action with respect to the contest of such Imposition and may settle  such contest if such Indemnified Person shall waive its rights to any indemnity from the Indemnity  Provider that otherwise would be payable in respect of such Imposition (and any future Imposition,  the pursuit of which is precluded by reason of such resolution of such contest) and shall pay to the  Indemnity Provider any amount previously paid or advanced by the Indemnity Provider pursuant  to this Section 11.2 by way of indemnification or advance for the payment of an amount regarding  such Imposition (not including the expenses of the contest).  Notwithstanding the foregoing provisions of this Section 11.2(f), an Indemnified Person  shall not be required to take any action and the Indemnity Provider shall not be permitted to contest  any Imposition in its own name or that of the Indemnified Person unless (A) the Indemnity Provider  shall have agreed in writing to pay and shall pay to such Indemnified Person on demand and on an  After Tax Basis all reasonable costs, losses and expenses that such Indemnified Person actually  incurs in connection with such contest, including all reasonable legal, accounting and investigatory  fees and disbursements and the Indemnity Provider shall have agreed in writing to indemnify such  Indemnified Person in respect of the Imposition if and to the extent the contest is not successful,  (B) the Indemnified Person shall have reasonably determined that the action to be taken will not  result in any material danger of sale, forfeiture or loss of the Property, or any part thereof or interest  therein, will not interfere with the payment of Rent, and will not result in risk of criminal liability  or risk of sale, forfeiture or loss of or the creation of any Lien (other than a Permitted Lien) on the  Property, (C) if such contest shall involve the payment of any amount prior to the resolution of such  contest, the Indemnity Provider shall provide to the Indemnified Person an interest-free advance in  an amount equal to the amount that the Indemnified Person is required to pay (with no additional  net cost, on an After Tax Basis, to such Indemnified Person) prior to the date such payment is due,  (D) in the case of a contest of an Imposition that cannot and is not to be pursued in the name of the  Indemnity Provider, the Indemnity Provider shall have provided to such Indemnified Person an  opinion of independent counsel selected by the Indemnity Provider and reasonably satisfactory to  the Indemnified Person stating that a reasonable basis exists to pursue the contest (or in the case of  

 

86  CHAR1\1917164v13 an appeal of adverse judicial determination, the position asserted in such appeal will more likely  than not prevail), and (E) no Default or Event of Default shall have occurred and be continuing.  In  no event shall an Indemnified Person be required to appeal an adverse judicial determination to the  United States Supreme Court.  In addition, an Indemnified Person shall not be required to contest  any Imposition in its name (or that of an Affiliate) if the subject matter thereof shall be of a  continuing nature and shall have previously been decided adversely by a court of competent  jurisdiction pursuant to the contest provisions of this Section 11.2(f), unless there shall have been  a change in Law (or interpretation thereof) and the Indemnified Person shall have received, at the  Indemnity Provider’s expense, an opinion of nationally-recognized independent counsel selected  by the Indemnity Provider and reasonably acceptable to the Indemnified Person stating that as a  result of such change in Law (or interpretation thereof), that the Indemnified Person should prevail  in such contest.  In no event shall the Indemnity Provider be permitted to adjust or settle the contest  of Imposition without the consent of the Indemnified Person to the extent any such adjustment or  settlement involves, or is reasonably likely to involve, any performance by or adverse admission  by or with respect to the Indemnified Person.  (g) Each Lessor Party has entered into the transactions contemplated by the Operative  Agreements on the assumption that the Lessor Advances are properly characterized for Federal,  State and local income Tax purposes as debt (the “Assumed Characterization”).  If for any reason  (and notwithstanding anything to the contrary contained in the Operative Agreements and without  regard to paragraph (b) hereof, except subsection (ii) thereof) (other than any Financing Party  voluntarily taking a position on its Federal, State or local income Tax returns inconsistent with the  Assumed Characterization), any Financing Party shall suffer any adverse Federal, State or local  income Tax consequences as a result of any challenge to the Assumed Characterization (a “Tax  Loss”), the Indemnity Provider will pay to such Financing Party an amount sufficient to reimburse  such Financing Party, on an After Tax Basis, for the additional Federal, State and local income  Taxes payable by (or not refundable to) such Financing Party from time to time as a result of such  Tax Loss plus all interest, penalties, fines and additions to Tax payable by such Financing Party as  a result of such Tax Loss.  In connection with the foregoing, the applicable Financing Party shall  provide written notice to the Indemnity Provider of any claim for indemnification under this Section  11.2(g).  Any such claim shall be subject to the contest provisions of Section 11.2(f) and the  verification procedure set forth in Section 11.2(c)(iii).  Any payments due to such Financing Party  pursuant to this Section 11.2(g) shall be paid no later than the date that such Financing Party shall  become obligated to pay the additional Federal, State or local income Taxes resulting from the Tax  Loss.  11.3 Yield Protection Amount. Subject to Section 11.6, if any Regulatory Change occurring after the date hereof:  (a) shall impose upon any Financing Party (which, for purposes of this Section 11.3,  shall include any Participant to the extent such Participant is entitled to the benefit of this provision  pursuant to Section 10.4), modify or deem applicable any reserve, special deposit or similar  requirement against assets of any Financing Party, deposits or obligations with or for the account  of any Financing Party or with or for the account of any Affiliate (or entity deemed by the Federal  Reserve Board to be an Affiliate) of any Financing Party, or credit extended by any Financing Party  (except any reserve requirement already reflected in the Term SOFR Reference Rate); or  (b) shall change the amount of capital maintained or required or requested or directed  to be maintained by any Financing Party or such Financing Party’s holding company; or  

 

87  CHAR1\1917164v13 (c) shall impose any other condition affecting any Lessor Advance or any Operative  Agreement (or any Financing Party’s participation therein) or any of its obligations or right to  acquire or hold any Lessor Advance;  and the result of any of the foregoing is or would be with regard to the transactions evidenced by  the Operative Agreements:  (i) to increase the cost to (or impose a cost on) a Financing Party funding or  acquiring or holding any Lessor Advance or loans or other extensions of credit under any  Operative Agreement or any obligation or commitment of such Financing Party with  respect to any of the foregoing,  (ii) to reduce the amount of any sum received or receivable by a Financing  Party as a Lessor Party (or otherwise in respect of any of the Lessor Advances), under any  Operative Agreement (or its participation in any of the foregoing), or  (iii) to reduce the rate of return on the capital of such a Financing Party as a  consequence of its obligations under the Operative Agreements (or its participation therein)  to a level below that which such Financing Party could otherwise have achieved,  in each case by an amount reasonably deemed by such Financing Party to be material, then prior to  the next Payment Date, and in any case within thirty (30) days after demand by such Financing  Party, the Lessee shall pay directly to such Financing Party such additional amount or amounts as  will compensate such Financing Party for such additional or increased cost or such reduction (the  “Yield Protection Amount”); provided that the Lessee shall not be required to compensate any  Financing Party pursuant to the foregoing provisions of this Section 11.3 for any increased costs  incurred or reductions suffered more than one hundred twenty (120) days prior to the date that such  Financing Party notifies the Lessee of the event or circumstances giving rise to such increased costs  or reductions and of such Financial Party’s intention to claim compensation therefor (except that,  if the Regulatory Change giving rise to such increased costs or reductions is retroactive, then the  one hundred twenty (120) days period referred to above shall be extended to include the period of  retroactive effect thereof).  In determining any amount provided for or referred to in this Section 11.3, a Financing  Party may use any reasonable averaging and attribution method that it (in its sole discretion) shall  deem applicable.  Any Financing Party when making a claim under this Section 11.3 shall submit  to the Lessee a statement as to such increased cost or reduced return (including calculation thereof  in reasonable detail), which statement shall, in the absence of error, be conclusive and binding upon  the Lessee.  (d) Notwithstanding any other provision of this Agreement or any other Operative  Agreement, if any Financing Party (including, for purposes of this Section 11.3(d), any Participant  to the extent such Participant is entitled to the benefit of this provision pursuant to Section 10.4)  shall notify the Agent that the introduction of or any change in or in the interpretation of any Law  or regulation makes it unlawful, or any central bank or other governmental authority asserts that it  is unlawful, for any Financing Party to perform its obligations hereunder to make or maintain SOFR  Lessor Advances then (i) each SOFR Lessor Advance will automatically, at the earlier of the end  of the Lessor Yield Period for such SOFR Lessor Advance or the date required by law, convert into  an ABR Lessor Advance, unless such introduction of or such change in or in the interpretation of  any Law or regulation requires that the Lessor Yield shall be the Benchmark Replacement  determined by the Agent pursuant to clause (2) of the definition of “Benchmark Replacement” and  

 

88  CHAR1\1917164v13 (ii) the obligation of the Financing Parties to make, convert or continue SOFR Lessor Advances  shall be suspended until the Agent shall notify the Lessee that such Financing Party has determined  that the circumstances causing such suspension no longer exist.  11.4 Funding/Contribution Indemnity. Subject to Section 11.6, the Lessee agrees to indemnify each Financing Party (which, for purposes  of this Section 11.4, shall include any Participant to the extent such Participant is entitled to the benefit of  this provision pursuant to Section 10.4) and to hold each Financing Party harmless from (I) all Breakage  Costs, and (II) any loss or reasonable expense which such Financing Party may sustain or incur as a  consequence of (a) any default in connection with the drawing of funds for any Lessor Advance, (b) any  default in making any repayment or prepayment after a notice thereof has been given in accordance with  the provisions of the Operative Agreements or the delivery by the Lessee of a revocation of such a notice  (notwithstanding that each such notice is expressly irrevocable and that the Lessee has no right to revoke)  pursuant to Section 16.2(a) or 20.2 of the Lease, (c) the making of a voluntary or involuntary payment of  Lessor Advances (except for ABR Lessor Advances) on a day which is not the last day of a Lessor Yield  Period with respect thereto or (d) any redetermination of the Lessor Yield based on a Benchmark  Replacement for any reason on a day that is not the last day of the then-current Lessor Yield Period.  Such  indemnification shall be in an amount equal to the excess, if any, of (x) the amount of Lessor Yield which  would have accrued on the amount so paid, or not so borrowed, accepted, converted or continued for the  period from the date of such payment or of such failure to borrow, accept, convert or continue to the last  day of such Lessor Yield Period (or, in the case of a failure to borrow, accept, convert or continue, the  Lessor Yield Period that would have commenced on the date of such failure) in each case at the applicable  Lessor Yield for such Lessor Advance for such Lessor Yield Period over (y) the amount of yield (as  determined by such Financing Party in its reasonable discretion) which would have accrued to such  Financing Party on such amount by placing such amount on deposit for a comparable period with leading  banks in the relevant interest rate market.  This covenant shall survive the termination of the Operative  Agreements and the payment of all other amounts payable hereunder.  11.5 EXPRESS INDEMNIFICATION FOR ORDINARY NEGLIGENCE, STRICT  LIABILITY, ETC. WITHOUT LIMITING THE GENERALITY OF THE INDEMNIFICATION  PROVISIONS OF ANY AND ALL OF THE OPERATIVE AGREEMENTS (BUT SUBJECT TO  SECTION 11.6), EACH PERSON PROVIDING INDEMNIFICATION OF ANOTHER PERSON  UNDER ANY OPERATIVE AGREEMENT HEREBY FURTHER EXPRESSLY RELEASES  EACH BENEFICIARY OF ANY SUCH INDEMNIFICATION FROM ALL CLAIMS FOR LOSS  OR DAMAGE, DESCRIBED IN ANY OPERATIVE AGREEMENT, CAUSED BY ANY ACT OR  OMISSION ON THE PART OF ANY SUCH BENEFICIARY ATTRIBUTABLE TO THE  ORDINARY NEGLIGENCE (WHETHER SOLE OR CONTRIBUTORY) OR STRICT  LIABILITY OF ANY SUCH BENEFICIARY, AND INDEMNIFIES, EXONERATES AND HOLDS  EACH SUCH BENEFICIARY FREE AND HARMLESS FROM AND AGAINST ANY AND ALL  ACTIONS, CAUSES OF ACTION, SUITS, CLAIMS, LOSSES, COSTS, LIABILITIES,  DAMAGES AND EXPENSES (INCLUDING ATTORNEY’S FEES AND EXPENSES),  DESCRIBED ABOVE, INCURRED BY ANY SUCH BENEFICIARY (IRRESPECTIVE OF  WHETHER ANY SUCH BENEFICIARY IS A PARTY TO THE ACTION FOR WHICH  INDEMNIFICATION UNDER THIS AGREEMENT OR ANY OTHER OPERATIVE  AGREEMENT IS SOUGHT) ATTRIBUTABLE TO THE ORDINARY NEGLIGENCE  (WHETHER SOLE OR CONTRIBUTORY) OR STRICT LIABILITY OF ANY SUCH  BENEFICIARY.  

 

89  CHAR1\1917164v13 11.6 Indemnity Prior to Completion Date / Construction Period Termination Date. Notwithstanding the provisions of Sections 11.1, 11.2, 11.3, 11.4 and 11.5 and any other indemnity  provision in any Operative Agreement (except as set forth in Section 11.7), the Lessor shall be the only  beneficiary of the provisions set forth in Sections 11.1, 11.2, 11.3, 11.4 and 11.5 or any other indemnity  provision in any Operative Agreement requiring indemnity payments directly or indirectly from any Credit  Party (except as set forth in Section 11.7) with respect to any Claim arising thereunder with respect to the  Construction Period Property for the period prior to the Completion Date related to the Property, but the  Indemnity Provider shall provide such indemnity only to the extent such Claims result from claims caused  by or resulting from the Indemnity Provider’s own actions or failures to act (or the act or failure to act of  its Affiliates, employees, servants or agents) while in possession of or having management responsibility  for the Construction Period Property.  As a clarification of the prior sentence, the Indemnity Provider  indemnifies the Lessor for, and shall pay the Lessor with respect to, any such Claim referenced in the prior  sentence by or against any Indemnified Person other than the Lessor.  The Indemnity Provider  acknowledges and agrees in this connection that the Property is in its possession and that the Indemnity  Provider has management responsibility for the Property, in each case prior to the Completion Date, that  the Indemnity Provider is responsible as the Construction Agent for the acts and omissions of its Affiliates,  employees, servants and agents and that the Indemnity Provider has agreed to maintain the Property free  from injury or mishap to third persons; provided, however, that the occurrence of injury or mishap to third  persons shall not give rise to an Event of Default.  To the extent the Indemnity Provider is not obligated to  indemnify each Indemnified Person with respect to the various matters described in this Section 11.6, the  Lessor shall indemnify each other Indemnified Person for such Claims; provided, however, that any  obligation of the Lessor to provide any such indemnity shall be discharged solely and exclusively from  amounts received by the Lessor from the Indemnity Provider or from Lessor Advances and to the extent  such amounts are insufficient to pay such Claims, then the Lessor shall have no responsibility therefor.  To  the extent the Indemnity Provider does not provide an amount to the Lessor adequate to pay such Claims  by or against any Indemnified Person, the Lessor Parties shall make Lessor Advances to pay for such Claim  without regard to the satisfaction of conditions precedent pursuant to Section 5.3 or 5.4 of this Agreement  but only to the extent amounts are available therefor with respect to the Available Lessor Parties  Commitment (subject to the rights of the Lessor Parties to increase their respective commitment amounts  in accordance with the provisions of Section 5.8).  Notwithstanding any other provision in any other  Operative Agreement to the contrary, all amounts so advanced shall be added to the Property Cost for the  Construction Period Property.  THE INDEMNITY OBLIGATIONS UNDERTAKEN BY THE LESSOR PURSUANT TO  THIS SECTION 11.6 ARE IN ALL RESPECTS SUBJECT TO THE LIMITATIONS ON  LIABILITY REFERENCED IN SECTION 12.9.  This Section 11.6 shall only limit or otherwise affect any obligation of the Indemnity Provider in  respect of any Claim which arises out of or relates to the Property prior to the Completion Date. 11.7 Additional Provisions Regarding Environmental Indemnification. Each and every Indemnified Person shall at all times have the rights and benefits, and the Indemnity  Provider shall have the obligations, in each case provided pursuant to the Operative Agreements with  respect to environmental matters, violations of any Environmental Law, and Environmental Claim or other  loss of or damage to any property or the environment relating to the Property, the Lease or the Indemnity  Provider (including the rights and benefits provided pursuant to Section 11.1(e)).  

 

90  CHAR1\1917164v13 11.8 Increase of Lessor Advances. The Lessor Advances and the Property Cost shall be increased on a dollar-for-dollar basis for the  respective Lessor Advances necessary for the Lessor Parties to fund the Lessor in an amount sufficient to  pay indemnity claims made by any other Indemnified Person against any Lessor Party pursuant to  Section 11.6.  11.9 Survival. The obligations of the Indemnity Provider under this Section 11 shall survive in accordance with  the provisions of Section 12.1.  SECTION 12.  MISCELLANEOUS.  12.1 Survival of Agreements. The representations, warranties, covenants, indemnities and agreements of the parties provided for  in the Operative Agreements, and the parties’ obligations under any and all thereof, shall survive the  execution and delivery of this Agreement, the transfer of the Property to the Lessor, the acquisition of the  Property (or any of its components), the construction of any Improvements, the Completion of the Property,  any disposition of any interest of the Lessor in the Property, the payment of the Lessor Advances and any  disposition thereof and shall be and continue in effect notwithstanding any investigation made by any party  and the fact that any party may waive compliance with any of the other terms, provisions or conditions of  any of the Operative Agreements.  Except as otherwise expressly set forth herein or in other Operative  Agreements, the indemnities of the parties provided for in the Operative Agreements shall survive the  expiration or termination of any thereof.  12.2 Notices. All notices required or permitted to be given under any Operative Agreement shall be in writing.   Notices may be served by private courier, prepaid; by facsimile; or personally couriered notices shall be  deemed delivered when delivered as addressed, or if the addressee refuses delivery, when presented for  delivery notwithstanding such refusal.  Telecommunicated notices shall be deemed delivered when receipt  is either confirmed by confirming transmission equipment or acknowledged by the addressee or its office.   Personal delivery shall be effective when accomplished.  Unless a party changes its address by giving notice  to the other party as provided herein, notices shall be delivered to the parties at the following addresses:  If to the Lessee, to such entity at the following address:  AVDC, LLC  c/o Big Lots, Inc.  4900 E. Dublin-Granville Road  Columbus, OH 43081  Attention:  Paul Schroeder  Telephone:  (614) 278-6815  Fax:  (614) 278-6666  

 

91  CHAR1\1917164v13 If to the Parent, to such entity at the following address:  Big Lots, Inc.  4900 E. Dublin-Granville Road  Columbus, OH 43081  Attention:  Paul Schroeder  Telephone:  (614) 278-6815  Fax:  (614) 278-6666  If to any of the Guarantors other than the Parent, to each such entity at the following address:  c/o Big Lots, Inc.  4900 E. Dublin-Granville Road  Columbus, OH 43081  Attention:  Paul Schroeder  Telephone:  (614) 278-6815  Fax:  (614) 278-6666  If to any of the Lessor Parties, to each such entity at the address set forth for such Lessor Party on  Schedule XVI.  If to the Agent, to it at the following address:  Wells Fargo Bank, National Association  MAC N9305-157  90 S. 7th Street, 15th Floor  Minneapolis, MN 55402  Attention:  Zach Shimota  Telephone:  612-849-6696  Fax:  None  From time to time any party may designate additional parties and/or another address for notice  purposes by notice to each of the other parties hereto.  Each notice hereunder shall be effective upon receipt  or refusal thereof.  12.3 Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when  so executed and delivered shall be an original, but all such counterparts shall together constitute but one (1)  and the same instrument.  12.4 Terminations, Amendments, Waivers, Etc; Unanimous Vote Matters.  Except with regard to the Unanimous Vote Matters and each other exception expressly set forth in  any Operative Agreement, each Operative Agreement only may be terminated, amended, supplemented,  waived or modified by, or consent granted by, an instrument in writing signed by the Majority Secured  Parties and each Credit Party, to the extent such Credit Party is a party to such Operative Agreement.  Notwithstanding the foregoing, no such termination, amendment, supplement, waiver or  modification or consent shall, without the consent of the Agent and, to the extent affected thereby, the  Lessor Parties, in all cases without the need for any consent from any Defaulting Lessor Party except to the  

 

92  CHAR1\1917164v13 extent required pursuant to the second to last paragraph of this Section 12.4 (collectively, the “Unanimous  Vote Matters”) (i) reduce or increase the Lessor Parties Commitment except as otherwise provided in  Sections 5.8, 5A.6 and 9.3 of this Agreement, (ii) extend the scheduled date of maturity of any Lessor  Advance, (iii) extend the scheduled Expiration Date, (iv) extend any payment date of any Lessor Advance,  (v) reduce the stated Lessor Yield (other than as a result of waiving the applicability of any post-default  increase in Lessor Yield), (vi) modify the priority of any Lien in favor of the Agent under any Security  Document, (vii) consent to any Lien against the Property or other Collateral other than any Permitted Lien,  (viii) subordinate any obligation owed to any of the Lessor Parties, (ix) reduce the Fees under this  Agreement, (x) extend the scheduled date of payment of the Fees, (xi) extend the expiration date of the  Lessor Parties Commitment, (xii) terminate, amend, modify, extend, supplement, restate, replace or waive  any provision of Section 8.3B of this Agreement or this Section 12.4, (xiii) reduce the percentages specified  in the definitions of “Majority Secured Parties”, (xiv) release a material portion of the Collateral (except in  accordance with Section 8.8(a)), (xv) release any Credit Party from its obligations under any Operative  Agreement (except in accordance with Section 8.8(b)) or (xvi) otherwise alter any payment obligations of  any Credit Party to the Lessor or any Financing Party under the Operative Agreements.  Additionally, in no  event shall Section 8.6 be terminated, amended, supplemented, waived or modified without the consent of  the Agent.  Any such termination, amendment, supplement, waiver or modification shall apply equally to  each of the Lessor Parties and shall be binding upon all the parties to this Agreement.  In the case of any  waiver, each party to this Agreement shall be restored to its former position and rights under the Operative  Agreements, and any Default or Event of Default waived shall be deemed to be cured and not continuing;  but no such waiver shall extend to any subsequent or other Default or Event of Default, or impair any right  consequent thereon. For the avoidance of doubt, the parties to this Agreement agree that, except as provided  in Sections 5.8 and 11.8, any increase in the Lessor Parties Commitment of the Lessor Parties shall be a  matter decided as a Unanimous Vote Matter.  Notwithstanding the foregoing, the Engagement Letter may be amended, modified, extended,  supplemented, restated, replaced or waived, or a consent with respect thereto may be granted, in each case  only by an instrument in writing signed by the parties thereto.  Notwithstanding anything to the contrary herein, (i) no Defaulting Lessor Party shall have any right  to approve or disapprove of any termination, amendment, supplement, waiver or modification of any  Operative Agreement or otherwise to provide a consent with respect to any Operative Agreement (and any  termination, amendment, supplement, waiver,  modification or consent which by its terms requires the  consent of all Lessor Parties or each affected Lessor Party may be effected with the consent of the applicable  Lessor Parties other than Defaulting Lessor Party), except that (A) the Lessor Parties Commitment of any  Defaulting Lessor Party may not be increased or extended without the consent of such Lessor Party, and  (B) any termination, amendment, supplement, waiver or modification requiring the consent of all Lessor  Parties or each affected Lessor Party, that by its terms affects any Defaulting Lessor Party  disproportionately adversely relative to other affected Lessor Parties shall require the consent of such  Defaulting Lessor Party, as applicable; (ii) each Lessor Party is entitled to vote as such Lessor Party  sees  fit on any bankruptcy reorganization plan that affects the Lessor Advances, and each Lessor Party  acknowledges that the provisions of Section 1126(c) of the Bankruptcy Code supersedes the unanimous  consent provisions set forth herein and (iii) the Majority Secured Parties shall determine whether or not to  allow a Credit Party to use cash collateral in the context of a bankruptcy or insolvency proceeding and such  determination shall be binding on all of the Lessor Parties.  If any Lessor Party does not consent to a proposed termination, amendment, supplement, waiver,  modification or consent with respect to any Operative Agreement that requires the consent of each Lessor  Party and that has been approved by the Majority Secured Parties, the Lessee may replace such Non- Consenting Lessor Party in accordance with a required assignment of the Lessor Party’s interests pursuant  to Section 5A.7(b); provided, that such termination, amendment, supplement, waiver, modification or  

 

93  CHAR1\1917164v13 consent can be effected as a result of such assignment (together with all other such assignments required  by the Lessee to be made pursuant to this paragraph).  12.5 Headings, etc. The Table of Contents and headings of the various Articles and Sections of this Agreement are for  convenience of reference only and shall not modify, define, expand or limit any of the terms or provisions  hereof.  12.6 Parties in Interest. Except as expressly provided herein, none of the provisions of this Agreement are intended for the  benefit of any Person except the parties hereto.  12.7 GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY  TRIAL; VENUE. (a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE  PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED, INTERPRETED  AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK  EXCEPT TO THE EXTENT THAT LOCAL LAW IS PROPERLY APPLICABLE FOR  MATTERS OF REAL PROPERTY.  Any legal action or proceeding with respect to this Agreement  or any other Operative Agreement may be brought in the courts of the State of New York in New  York County or of the United States for the Southern District of New York, and, by execution and  delivery of this Agreement, each of the parties to this Agreement hereby irrevocably accepts for  itself and in respect of its property, generally and unconditionally, the nonexclusive jurisdiction of  such courts.  Each of the parties to this Agreement further irrevocably consents to the service of  process out of any of the aforementioned courts in any such action or proceeding by overnight  courier delivery to it at the address set out for notices pursuant to Section 12.2, such service to  become effective in the manner provided in Section 12.2.  Nothing herein shall affect the right of  any party to serve process in any other manner permitted by Law or to commence legal proceedings  or to otherwise proceed against any party in any other jurisdiction.  (b) EACH OF THE PARTIES HERETO IRREVOCABLY AND  UNCONDITIONALLY, TO THE FULLEST EXTENT ALLOWED BY APPLICABLE LAW,  WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO  ANY DISPUTE OR THIS AGREEMENT, ANY OTHER OPERATIVE AGREEMENT AND  FOR ANY COUNTERCLAIM THEREIN.  (c) Each of the parties to this Agreement hereby irrevocably waives any objection  which it may now or hereafter have to the laying of venue of any of the aforesaid actions or  proceedings arising out of or in connection with this Agreement or any other Operative Agreement  brought in the courts referred to in subsection (a) above and hereby further irrevocably waives and  agrees not to plead or claim in any such court that any such action or proceeding brought in any  such court has been brought in an inconvenient forum.  (d) Notwithstanding anything to the contrary contained in this Agreement or any of  the other Operative Agreements, if any action or proceeding is filed in a court of the State of  California by or against any party hereto in connection with any of the transactions contemplated  by this Agreement or any other Operative Agreement and the foregoing waiver of a right to a trial  by jury is for any reason not enforceable in such action or proceeding (including as a consequence  

 

94  CHAR1\1917164v13 of the application of California law), the parties to this Agreement hereby agree that (a) the court  shall, and the parties shall advise and direct the court to, make a general reference pursuant to  California Code of Civil Procedure Section 638 to a referee (who shall be a single active or retired  judge) to hear and determine all of the issues in such action or proceeding (whether of fact or of  law) and to report a statement of decision; provided, that at the option of any party to such  proceeding, any such issues pertaining to a “provisional remedy” as defined in California Code of  Civil Procedure Section 1281.8 shall be heard and determined by the court, and (b) without limiting  the generality of Section 7, the Lessee shall be solely responsible to pay, or cause to be paid, all  fees and expenses of any referee appointed in such action or proceeding.  12.8 Severability. Any provision of any Operative Agreement that is prohibited or unenforceable in any jurisdiction  shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without  invalidating the remaining provisions hereof or thereof, and any such prohibition or unenforceability in any  jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  12.9 Liability Limited. Anything to the contrary contained in any Operative Agreement notwithstanding, except  as stated in this Section 12.9, no Exculpated Person shall be personally liable in any respect for any  liability or obligation arising hereunder or in any other Operative Agreement including the payment  of the advance amount or yield regarding the Lessor Advances, or for monetary damages for the  breach of performance of any of the covenants contained in the Operative Agreements.  The Lessor  Parties and the Agent agree that, in the event any remedies under any Operative Agreement are  pursued, none of the Lessor Parties or the Agent shall have any recourse against any Exculpated  Person, for any deficiency, loss or Claim for monetary damages or otherwise resulting therefrom  and recourse shall be had solely and exclusively against the Lessor’s interest in the Trust Property,  and the assets of the Credit Parties (with respect to the Credit Parties’ obligations under the  Operative Agreements); but nothing contained herein shall be taken to prevent recourse against or  the enforcement of remedies against (a) the Lessor’s interest in the Trust Property in respect of any  and all liabilities, obligations and undertakings contained herein and/or in any other Operative  Agreement; (b) the Lessor Parties for any of their obligations arising on a full recourse basis; or  (c) the Lessor Parties or any other Person for gross negligence or willful misconduct (other than  any gross negligence or willful misconduct imputed to any Lessor Party from any Person other than  the Lessor Party or any Affiliate of the Lessor Party (excepting the Agent)).  Notwithstanding the  provisions of this Section 12.9, nothing in any Operative Agreement shall:  (w) constitute a waiver,  release or discharge of any indebtedness or obligation evidenced by or arising under any Operative  Agreement or secured by any Operative Agreement, but the same shall continue until paid or  discharged; (x) relieve any Exculpated Person from liability and responsibility for (but only to the  extent of the damages arising by reason of):  active waste knowingly committed by any Exculpated  Person with respect to the Property, any fraud, gross negligence or willful misconduct on the part  of any Exculpated Person (other than any fraud, gross negligence or willful misconduct imputed to  such Exculpated Person from any Person other than an Affiliate of such Exculpated Person  (excepting the Agent)); (y) relieve any Exculpated Person from liability and responsibility for (but  only to the extent of the moneys misappropriated, misapplied or not turned over) (i) except for  Excepted Payments, misappropriation or misapplication by any Lessor Party (i.e., application in a  manner contrary to any of the Operative Agreements) of any insurance proceeds or condemnation  award paid or delivered to any Lessor Party by any Person other than the Agent, (ii) except for  Excepted Payments, any rent or other income received by any Lessor Party from any Credit Party  that is not turned over to the Agent, or (iii) except for Excepted Payments, any deposits or any  

 

95  CHAR1\1917164v13 escrows or amounts owed by the Construction Agent under the Agency Agreement held by any  Lessor Party; or (z) affect or in any way limit the Agent’s rights and remedies under any Operative  Agreement with respect to the Rents (other than Excepted Payments) and rights and powers of the  Agent under the Operative Agreements or to obtain a judgment against the Lessee’s interest in the  Property or the Agent’s rights and powers to obtain a judgment against any Lessor Party (but limited  as to those matters specified in this Section 12.9) or any Credit Party (provided, that no deficiency  judgment or other money judgment shall be enforced against any Exculpated Person except to the  extent of the Lessor’s interest in the Trust Property or to the extent any Lessor Party may be liable  as otherwise contemplated in clauses (b) and (c) of this Section 12.9).  12.10 Rights of the Credit Parties. If at any time all obligations of the Lessor Parties under the Operative Agreements and of the Credit  Parties under the Operative Agreements have in each case been satisfied or discharged in full, then the  Credit Parties shall be entitled to terminate the Lease and guaranty obligations under Section 6B.  12.11 Further Assurances. The parties hereto shall promptly cause to be taken, executed, acknowledged or delivered, at the  sole expense of the Lessee, all such further acts, conveyances, documents and assurances as the other parties  may from time to time reasonably request in order to carry out and effectuate the intent and purposes of this  Agreement, the other Operative Agreements and the transactions contemplated hereby and thereby  (including the preparation, execution (if applicable) and filing of any and all UCC Financing Statements,  Mortgage Instruments and other filings or registrations which the parties hereto may from time to time  request to be filed or effected).  The Lessee, at its own expense and without need of any prior request from  any other party, shall take such action as may be necessary (including any action specified in the preceding  sentence), or (if the Agent or the Lessor shall so request) as so requested, in order to maintain and protect  all security interests provided for hereunder or under any other Operative Agreement.  In addition, in  connection with the sale or other disposition of the Property or any portion thereof, the Lessee agrees to  execute such instruments of conveyance as may be reasonably required in connection therewith.  12.12 Calculations under Operative Agreements. The parties hereto agree that all calculations and numerical determinations to be made under the  Operative Agreements by any Lessor Party shall be made by the Agent (to the extent such calculations and  numerical determinations relate to any Lessor Party, Lessor Advances or Lessor Yield) and that such  calculations and determinations shall be conclusive and binding on the parties hereto in the absence of  manifest error.  12.13 Confidentiality. Each Financing Party severally agrees to use reasonable efforts to keep confidential all non-public  information pertaining to any Credit Party or any of its Subsidiaries which is provided to it by any Credit  Party or any of its Subsidiaries and which an officer of the Lessee or any of its Subsidiaries has requested  in writing be kept confidential, and shall not intentionally disclose such information to any Person except:  (a) to the extent such information is public when received by such Person or becomes  public thereafter due to the act or omission of any party other than such Person;  (b) to the extent such information is independently obtained from a source other than  any Credit Party or any of its Subsidiaries and such information from such source is not, to such  

 

96  CHAR1\1917164v13 Person’s knowledge, subject to an obligation of confidentiality or, if such information is subject to  an obligation of confidentiality, that disclosure of such information is permitted;  (c) to counsel, auditors or accountants retained by any such Person or any Affiliates  of any such Person (if such Affiliates are permitted to receive such information pursuant to  clause (f) or (g) below), provided they agree to keep such information confidential as if such Person  or Affiliate were party to this Agreement and to financial institution regulators, including examiners  of any Financing Party or any Affiliate thereof in the course of examinations of such Persons;  (d) in connection with any litigation or the enforcement or preservation of the rights  of any Financing Party under the Operative Agreements;  (e) to the extent required by any applicable statute, rule or regulation or court order  (including, by way of subpoena) or pursuant to the request of any regulatory or Governmental  Authority having jurisdiction over any such Person; provided, however, that such Person shall  endeavor (if not otherwise prohibited by Law) to notify the Lessee prior to any disclosure made  pursuant to this clause (e), except that no such Person shall be subject to any liability whatsoever  for any failure to so notify the Lessee;  (f) any Financing Party may disclose such information to another Financing Party or  to any Affiliate of a Financing Party that is a direct or indirect owner of any Financing Party;  (g) any Financing Party may disclose such information to an Affiliate of any Financing  Party to the extent required in connection with the transactions contemplated hereby or to the extent  such Affiliate is involved in, or provides advice or assistance to such Person with respect to, such  transactions (provided, in each case that such Affiliate has agreed in writing to maintain  confidentiality as if it were such Financing Party (as the case may be)); or  (h) to the extent disclosure to any other financial institution or other Person is  appropriate in connection with any proposed or actual assignment by any Lessor Party of interests  to another Person, as specified in Section 10.1 (who will in turn be required by the transferring  Lessor Party to agree in writing to maintain confidentiality as if it were the Lessor Party originally  party to this Agreement).  12.14 Financial Reporting/Tax Characterization. The Credit Parties agree to obtain advice from their own accountants and Tax counsel regarding  the financial reporting treatment and the Tax characterization of the transactions described in the Operative  Agreements.  The Credit Parties further agree that none of them shall rely upon any statement of any  Financing Party or any of their respective Affiliates and/or Subsidiaries regarding any such financial  reporting treatment and/or Tax characterization.  12.15 Set-off. In addition to any rights now or hereafter granted under Applicable Law and not by way of  limitation of any such rights, upon and after the occurrence and continuance of any Event of Default and  during the continuance thereof (but only after obtaining the prior written consent of the Majority Secured  Parties) the Lessor Parties and their respective Affiliates and any assignee or participant of any Lessor Party  in accordance with the applicable provisions of the Operative Agreements are hereby authorized by the  Credit Parties at any time or from time to time, without notice to the Credit Parties or to any other Person  (subject to the above requirement to obtain the prior written consent of the Majority Secured Parties), any  

 

97  CHAR1\1917164v13 such notice being hereby expressly waived, to set-off and to appropriate and to apply any and all deposits  (general or special, time or demand, including indebtedness evidenced by certificates of deposit, whether  matured or unmatured) and any other indebtedness at any time held or owing by such Lessor Party, their  respective Affiliates or any assignee or participant of such Lessor Party in accordance with the applicable  provisions of the Operative Agreements to or for the credit or the account of any Credit Party against and  on account of the obligations of any Credit Party under the Operative Agreements irrespective of whether  or not (a) such Lessor Party shall have made any demand under any Operative Agreement or (b) the Agent  shall have declared any or all of the obligations of any Credit Party under the Operative Agreements to be  due and payable and although such obligations shall be contingent or unmatured.  Notwithstanding the  foregoing, no Lessor Party shall exercise, or attempt to exercise, any right of set-off, banker’s lien, or the  like, against any deposit account or property of any Credit Party held by any Lessor Party, without the prior  written consent of the Majority Secured Parties, and any Financing Party violating this provision shall  indemnify the Agent and the other Financing Parties from any and all costs, expenses, liabilities and  damages resulting therefrom.  The contractual restriction on the exercise of set-off rights provided in the  foregoing sentence is solely for the benefit of the Financing Parties and may not be enforced by any Credit  Party.  In addition to the foregoing, and not in limitation thereof, in the event that any Defaulting Lessor  Party shall exercise any such right of set-off, but only after obtaining the prior written consent of the  Majority Secured Parties, (a) all amounts so set off shall be paid over immediately to the Agent for further  application in accordance with the provisions of Section 5A.1(e), respectively, and, pending such payment,  shall be segregated by such Defaulting Lessor Party from its other funds and deemed held in trust for the  benefit of the Agent and the other Secured Parties and (b) the applicable Defaulting Lessor Party shall  provide promptly to the Agent a statement describing in reasonable detail the secured obligations owing to  such entity as to which it exercised such right of set-off.  Except as otherwise expressly provided herein or as otherwise agreed among all the Lessor Parties,  where, and to the extent, one Lessor Party is entitled to payments prior to other Lessor Parties, if any Lessor  Party (a “Benefitted Lessor Party”) shall at any time receive any payment of all or part of its Lessor  Advances, or Lessor Yield thereon, or receive any collateral in respect thereof (whether voluntarily or  involuntarily, by set-off or otherwise (subject to having first obtained the written consent of the Majority  Secured prior to initiating any action with regard to such collateral)), in a greater proportion than any such  payment to or collateral received by any other Lessor Party, if any, in respect of such other Lessor Party’s  Lessor Parties Interest, or Lessor Yield thereon, such Benefitted Lessor Party shall purchase for cash from  the other Lessor Parties a participating interest in such portion of each such other Lessor Party’s Lessor  Parties Interest, or shall provide such other Lessor Parties with the benefits of any such collateral, or the  proceeds thereof, as shall be necessary to cause such Benefitted Lessor Party to share the excess payment  or benefits of such collateral or proceeds ratably with each of the other Lessor Parties; provided, however,  that if all or any portion of such excess payment or benefits is thereafter recovered from such Benefitted  Lessor Party, such purchase shall be rescinded, and the purchase price and benefits returned, to the extent  of such recovery, but without Lessor Yield.  12.16 Limited Obligation of the Lessee to Pay on behalf of the Lessor. To the extent the Lessee undertakes to pay any amount on behalf of any Lessor Party pursuant to  any Operative Agreement, such obligation of the Lessee shall be limited only to amounts payable by such  Lessor Party, as the case may be, on a non-recourse basis.  12.17 Limitation on Commitments. Notwithstanding any provision of any Operative Agreement to the contrary, the Property may not  be financed under the Operative Agreements until such time as sufficient commitments therefor have been  approved by each Financing Party in its sole discretion.  

 

98  CHAR1\1917164v13 12.18 USA Patriot Act Notice. Each Financing Party that is subject to the USA Patriot Act hereby notifies each of the Credit Parties  that pursuant to the requirements of the USA Patriot Act, it is required to obtain, verify and record  information that identifies the Credit Parties, which information includes the name and address of Credit  Parties and other information that will allow such Financing Party to identify the Credit Parties in  accordance with the USA Patriot Act.  12.19 Acknowledgement and Consent to Bail-In of Affected Financial Institutions. Notwithstanding anything to the contrary in any Operative Agreement or in any other agreement,  arrangement or understanding among any such parties, each party hereto acknowledges that any liability of  any Affected Financial Institution arising under any Operative Agreement may be subject to the write-down  and conversion powers of the applicable Resolution Authority and agrees and consents to, and  acknowledges and agrees to be bound by:  (a) the application of any Write-Down and Conversion Powers by the applicable  Resolution Authority to any such liabilities arising hereunder which may be payable to it by any  party hereto that is the applicable Affected Financial Institution; and  (b) the effects of any Bail-In Action on any such liability, including, if applicable:  (i) a reduction in full or in part or cancellation of any such liability;  (ii) a conversion of all, or a portion of, such liability into shares or other  instruments of ownership in such Affected Financial Institution, its parent, or a bridge  institution that may be issued to it or otherwise conferred on it, and that such shares or  other instruments of ownership will be accepted by it in lieu of any rights with respect to  any such liability under this Agreement or any other Operative 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 Resolution Authority.  12.20 UCC Filing Authorization.  Lessee authorizes Lessor and Agent, to file UCC financing and fixture filings statements,  amendments thereto and renewals thereof without Lessee’s signature, as Lessor or Agent may determine to  be necessary or appropriate to perfect and maintain the security interests and liens granted pursuant to any  and all of the Security Documents.  12.21 [Reserved].  12.22 Lessee to Cause Performance of Obligations by Identified Big Lots Entities.  Lessee shall cause each Identified Big Lots Entity (that is not a party to this Agreement) to perform  its obligations under this Agreement.  12.23 Erroneous Payments.  (a) If the Agent notifies a Lessor Party or any Person who has received funds on behalf  of a Lessor Party (any such Lessor Party or other recipient (and each of their respective successors  

 

99  CHAR1\1917164v13 and assigns), a “Payment Recipient”) that the Agent has determined in its sole discretion (whether  or not after receipt of any notice under immediately succeeding clause (b)) that any funds received  by such Payment Recipient from the Agent or any of its Affiliates were erroneously or mistakenly  transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient  (whether or not known to such Lessor Party or other Payment Recipient on its behalf) (any such  funds, whether transmitted or received as a payment, prepayment or repayment of principal,  advance, interest, yield, fees, distribution or otherwise, individually and collectively, an “Erroneous  Payment”), and demands the return of such Erroneous Payment (or a portion thereof), such  Erroneous Payment shall at all times remain the property of the Agent pending its return or  repayment as contemplated below in this Section 12.23, and held in trust for the benefit of the  Agent, and such Lessor Party shall (or, with respect to any Payment Recipient who received such  funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two  Business Days thereafter (or such later date as the Agent may, in its sole discretion, specify in  writing), return to the Agent the amount of any such Erroneous Payment (or portion thereof) as to  which such a demand was made, in Same Day Funds (in the currency so received), together with  yield thereon (except to the extent waived in writing by the Agent) in respect of each day from and  including the date such Erroneous Payment (or portion thereof) was received by such Payment  Recipient to the date such amount is repaid to the Agent in Same Day Funds at the greater of the  Overnight Bank Funding Rate and a rate determined by the Agent in accordance with banking  industry rules on interbank compensation from time to time in effect. A notice of the Agent to any  Payment Recipient under this clause (a) shall be conclusive, absent manifest error.  (b) Without limiting immediately preceding clause (a), each Lessor Party or any  Person who has received funds on behalf of a Lessor Party (and each of their respective successors  and assigns), hereby further agrees that if it receives a payment, prepayment or repayment (whether  received as a payment, prepayment or repayment of principal, advance, interest, yield, fees,  distribution or otherwise) from the Agent (or any of its Affiliates) (x) that is in a different amount  than, or on a different date from, that specified in a notice of payment, prepayment or repayment  sent by the Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment,  (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent  by the Agent (or any of its Affiliates), or (z) that such Lessor Party, or other such recipient,  otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part)  in each case:  (i) (A) in the case of immediately preceding clauses (x) or (y), an error and  mistake shall be presumed to have been made (absent written confirmation from the Agent  to the contrary) or (B) an error has been made (in the case of immediately preceding clause  (z)), in each case, with respect to such payment, prepayment or repayment; and  (ii) such Lessor Party shall (and shall use commercially reasonable efforts to  cause any other recipient that receives funds on its respective behalf to) promptly (and, in  all events, within one Business Day of its knowledge of such error) notify the Agent of its  receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail)  and that it is so notifying the Agent pursuant to this Section 12.23(b).  For the avoidance of doubt, the failure to deliver a notice to the Agent pursuant to this Section 12.23 shall  not have any effect on a Payment Recipient’s obligations pursuant to clause (a) above or on whether or not  an Erroneous Payment has been made.  (c) Each Lessor Party hereby authorizes the Agent to set off, net and apply any and all  amounts at any time owing to such Lessor Party under any Operative Agreement, or otherwise  

 

100  CHAR1\1917164v13 payable or distributable by the Agent to such Lessor Party from any source, against any amount  due to the Agent under immediately preceding clause (a) or under the indemnification provisions  of the Operative Agreements.  (d) (i) In the event that an Erroneous Payment (or portion thereof) is not  recovered by the Agent for any reason, after demand therefor by the Agent in accordance with  immediately preceding clause (a), from any Lessor Party that has received such Erroneous Payment  (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment  (or portion thereof) on its respective behalf) (such unrecovered amount, an “Erroneous Payment  Return Deficiency”), upon the Agent’s notice to such Lessor Party at any time, then effective  immediately (with the consideration therefor being acknowledged by the parties hereto) (i) such  Lessor Party shall be deemed to have assigned its Lessor Advances (but not its Lessor Parties  Commitments) with respect to which such Erroneous Payment was made (the “Erroneous Payment  Impacted Class”) in an amount equal to the Erroneous Payment Return Deficiency (or such lesser  amount as the Agent may specify) (such assignment of the Lessor Advances (but not Lessor Parties  Commitments) of the Erroneous Payment Impacted Class, the “Erroneous Payment Deficiency  Assignment”) at par plus any accrued and unpaid yield (with the assignment fee to be waived by  the Agent in such instance), and is hereby (together with the Lessee) deemed to execute and deliver  an assignment and assumption (with such assignment and assumption being deemed to satisfy all  applicable requirements pursuant to the Operative Agreements) with respect to such Erroneous  Payment Deficiency Assignment, (ii) the Agent as the assignee Lessor Party shall be deemed to  acquire the Erroneous Payment Deficiency Assignment, (iii) upon such deemed acquisition, the  Agent as the assignee Lessor Party shall become a Lessor Party under the Operative Agreements  with respect to such Erroneous Payment Deficiency Assignment and the assigning Lessor Party  shall cease to be a Lessor Party under the Operative Agreements with respect to such Erroneous  Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the  indemnification provisions of the Operative Agreements and its applicable Lessor Parties  Commitments which shall survive as to such assigning Lessor Party and (iv) the Agent may reflect  in the Register its ownership interest in the Lessor Advances subject to the Erroneous Payment  Deficiency Assignment. For the avoidance of doubt, no Erroneous Payment Deficiency  Assignment will reduce the Lessor Parties Commitments and such Lessor Parties Commitments  shall remain available in accordance with the terms of this Agreement and the other Operative  Agreements.  (ii) Subject to the rights and obligations of the successors and assigns of the  parties hereto, (but excluding, in all events, any assignment consent or approval  requirements (whether from Lessee or otherwise)), the Agent may, in its discretion, sell  any Lessor Advance acquired pursuant to an Erroneous Payment Deficiency Assignment  and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency  owing by the applicable Lessor Party shall be reduced by the net proceeds of the sale of  such Lessor Advance (or portion thereof), and the Agent shall retain all other rights,  remedies and claims against such Lessor Party (and/or against any recipient that receives  funds on its respective behalf).  In addition, an Erroneous Payment Return Deficiency  owing by the applicable Lessor Party (x) shall be reduced by the proceeds of prepayments  or repayments of any Lessor advanced amount (principal) and yield, or other distribution  in respect of any Lessor advanced amount (principal) and yield, received by the Agent on  or with respect to any such Lessor Advances acquired from such Lessor Party pursuant to  an Erroneous Payment Deficiency Assignment (to the extent that any such Lessor  Advances are then owned by the Agent) and (y) may, in the sole discretion of the Agent,  be reduced by any amount specified by the Agent in writing to the applicable Lessor Party  from time to time.  

 

101  CHAR1\1917164v13 (e) The parties hereto agree that (x) irrespective of whether the Agent may be  equitably subrogated, in the event that an Erroneous Payment (or portion thereof) is not recovered  from any Payment Recipient that has received such Erroneous Payment (or portion thereof) for any  reason, the Agent shall be subrogated to all the rights and interests of such Payment Recipient (and,  in the case of any Payment Recipient who has received funds on behalf of a Lessor Party, to the  rights and interests of such Lessor Party, as the case may be) under the Operative Agreements with  respect to such amount (the “Erroneous Payment Subrogation Rights”) (provided that the Credit  Parties’ Obligations under the Operative Agreements in respect of the Erroneous Payment  Subrogation Rights shall not be duplicative of such Obligations in respect of Lessor Advances that  have been assigned to the Agent under an Erroneous Payment Deficiency Assignment) and (y) an  Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations  owed by the Lessee or any other Credit Party; provided that this Section 12.23 shall not be  interpreted to increase (or accelerate the due date for), or have the effect of increasing (or  accelerating the due date for), the Obligations of the Lessee or any other Credit Party relative to the  amount (and/or timing for payment) of the Obligations that would have been payable had such  Erroneous Payment not been made by the Agent; provided, further, that for the avoidance of doubt,  the immediately preceding clauses (x) and (y) shall not apply to the extent any such Erroneous  Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of  funds received by the Agent from the Lessee or any other Credit Party for the purpose of making  such Erroneous Payment.  (f) To the extent permitted by applicable Law, no Payment Recipient shall assert any  right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim,  counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or  counterclaim by the Agent for the return of any Erroneous Payment received, including without  limitation waiver of any defense based on “discharge for value” or any similar doctrine.  (g) Each party’s obligations, agreements and waivers under this Section 12.23 shall  survive the resignation or replacement of the Agent, any transfer of rights or obligations by, or the  replacement of, a Lessor Party, the termination of the Lessor Parties Commitments and/or the  repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Operative  Agreement.   (h) Notwithstanding the foregoing and for the avoidance of doubt, the parties to this  Agreement acknowledge and agree that the Completion Date has occurred and that the Lessor  Parties Commitments have been reduced to zero (0).  12.24 ERISA Matters.  (a) Each Lessor Party (x) represents and warrants, as of the date such Person became  a Lessor Party party hereto, to, and (y) covenants, from the date such Person became a Lessor Party  party hereto to the date such Person ceases being a Lessor Party party hereto, for the benefit of,  Agent and its Affiliates, and not for the benefit of Lessee or any other Credit Party, that at least one  of the following is and will be true:  (i) such Lessor Party is not using, and has not used, “plan assets” (within the  meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more  Plans in connection with the Lessor Advances or the Lessor Parties Commitments,  (ii) the transaction exemption set forth in one or more Prohibited Transaction  exemptions (“PTEs”), such as PTE 84-14 (a class exemption for certain transactions  

 

102  CHAR1\1917164v13 determined by independent qualified professional asset managers), PTE 95-60 (a class  exemption for certain transactions involving insurance company general accounts), PTE  90-1 (a class exemption for certain transactions involving insurance company pooled  separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank  collective investment funds) or PTE 96-23 (a class exemption for certain transactions  determined by in-house asset managers), is applicable with respect to such Lessor Party’s  entrance into, participation in, administration of and performance of the Lessor Advances,  the Lessor Parties Commitments and the Operative Agreements,  (iii) (A) such Lessor Party is an investment fund managed by a “Qualified  Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such  Qualified Professional Asset Manager made the investment decision on behalf of such  Lessor Party to enter into, participate in, administer and perform the Lessor Advances, the  Lessor Parties Commitments and the Operative Agreements, (C) the entrance into,  participation in, administration of and performance of the Lessor Advances, the Lessor  Parties Commitments and the Operative Agreements satisfies the requirements of sub- sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such  Lessor Party, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with  respect to such Lessor Party’s entrance into, participation in, administration of and  performance of the Lessor Advances, the Lessor Parties Commitments and the Operative  Agreements, or  (iv) such other representation, warranty and covenant as may be  agreed in writing between the Agent, in its sole discretion, and such Lessor Party.  (b) In addition, unless sub-clause (i) in the immediately preceding Section 12.24(a) is  true with respect to a Lessor Party or such Lessor Party has not provided another representation,  warranty and covenant as provided in sub-clause (iv) in the immediately preceding Section  12.24(a), such Lessor Party further (x) represents and warrants, as of the date such Person became  a Lessor Party party hereto, and (y) covenants, from the date such Person became a Lessor Party  party hereto to the date such Person ceases being a Lessor Party party hereto, for the benefit of, the  Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit of Lessee or any  other Credit Party, that:  (i) none of the Agent or any of its Affiliates is a fiduciary with respect to the  assets of such Lessor Party (including in connection with the reservation or exercise of any  rights by Agent under this Agreement, any Operative Agreement or any other documents  related to hereto or thereto),  (ii) the Person making the investment decision on behalf of such Lessor Party  with respect to the entrance into, participation in, administration of and performance of the  Lessor Advances, the Lessor Parties Commitments and the Operative Agreements is  capable of evaluating investment risks independently, both in general and with regard to  particular transactions and investment strategies (including in respect of the Lessor  Advances),  (iii) the Person making the investment decision on behalf of such Lessor Party  with respect to the entrance into, participation in, administration of and performance of the  Lessor Advances, the Lessor Parties Commitments and the Operative Agreements is a  fiduciary under ERISA or the Code, or both, with respect to the Lessor Advances, the  

 

103  CHAR1\1917164v13 Lessor Parties Commitments and the Operative Agreements and is responsible for  exercising independent judgment in evaluating the transactions hereunder, and  (iv) no fee or other compensation is being paid directly to the Agent or any of  its Affiliates for investment advice (as opposed to other services) in connection with the  Lessor Advances, the Lessor Parties Commitments and the Operative Agreements.  12.25 Notification to the Lessor Parties.  The Agent hereby informs the Lessor Parties that each such Person is not undertaking to  provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with  the transactions contemplated hereby, and that such Person has a financial interest in the  transactions contemplated hereby in that such Person or an Affiliate thereof (i) may receive interest,  yield or other payments with respect to the Lessor Advances, the Lessor Parties Commitments and  the Operative Agreements, (ii) may recognize a gain if it extended the Lessor Advances or the  Lessor Parties Commitments for an amount less than the amount being paid for an interest in the  Lessor Advances or the Lessor Parties Commitments by such Lessor Party or (iii) may receive fees  or other payments in connection with the transactions contemplated hereby, the Operative  Agreements or otherwise, including structuring fees, commitment fees, arrangement fees, facility  fees, upfront fees, underwriting fees, ticking fees, agency fees, administrative agent or utilization  fees, minimum usage fees, letter of credit fees, fronting fees, deal-away or alternate transaction  fees, amendment fees, processing fees, term out premiums, banker’s acceptance fees, breakage or  other early termination fees or fees similar to the foregoing.  12.26 Rates.  Lessor Yield may be determined by reference to a benchmark rate that is, or may in the  future become, the subject of regulatory reform or cessation. Regulators have signaled the need to  use alternative reference rates for some of these benchmark rates and, as a result, such benchmark  rates may cease to comply with applicable laws and regulations, may be permanently discontinued  or the basis on which they are calculated may change. Agent does not warrant or accept any  responsibility for, and shall not have any liability with respect to, , (i) the continuation of,  administration of, submission of, calculation of or any other matter related to any offered rate, the  rates in any Benchmark, any component definition thereof or rates referred to in the definition  thereof or with respect to any alternative, successor or replacement rate thereto (including any then- current Benchmark or any Benchmark Replacement), including whether the composition or  characteristics of any such alternative, successor or replacement rate (including any Benchmark  Replacement), as it may or may not be adjusted pursuant to Section 5A.11, will be similar to, or  produce the same value or economic equivalence of, or have the same volume or liquidity as, such  Benchmark or any other Benchmark prior to its discontinuance or unavailability, or (ii) the effect,  implementation or composition of any Conforming Changes. Agent and its Affiliates or other  related entities may engage in transactions that affect the calculation of a Benchmark, any  alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant  adjustments thereto and such transactions may be adverse to Lessee. Agent may select information  sources or services in its reasonable discretion to ascertain any Benchmark, any component  definition thereof or rates referenced in the definition thereof, in each case pursuant to the terms of  this Agreement and the other Operative Agreements, and shall have no liability to Lessee or any  other person or entity for damages of any kind, including direct or indirect, special, punitive,  incidental or consequential damages, costs, losses or expenses (whether in tort, contract or  otherwise and whether at law or in equity), for any error or calculation of any such rate (or  component thereof) provided by any such information source or service.  

 

104  CHAR1\1917164v13 12.27 No Advisory or Fiduciary Responsibility.  In connection with all aspects of each transaction contemplated hereby (including in  connection with any amendment, waiver or other modification hereof or of any other Operative  Agreement), each Credit Party acknowledges and agrees, and acknowledges its Affiliates’  understanding, that:  (a) (i) the arranging and other services regarding this Agreement and the other  Operative Agreements provided by the Agent and any Affiliate thereof and the Lessor Parties are  arm’s-length commercial transactions between the Credit Parties and their respective Affiliates, on  the one hand, and the Agent and, as applicable, its Affiliates and the Lessor Parties and their  Affiliates (solely for purposes of this Section, the Lessor Parties and their Affiliates shall  collectively be referred to as the “Lenders”), on the other hand, (ii) each of the Credit Parties has  consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed  appropriate, and (iii) each Credit Party is capable of evaluating, and understands and accepts, the  terms, risks and conditions of the transactions contemplated hereby and by the other Operative  Agreements; (b) (i) the Agent and its Affiliates and each Lender is and has been acting solely as a  principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and  will not be acting as an advisor, agent or fiduciary, for any Credit Party or any of their respective  Affiliates, or any other Person and (ii) neither the Agent, any of its Affiliates nor any Lender has  any obligation to any Credit Party or any of their respective Affiliates with respect to the  transactions contemplated hereby except those obligations expressly set forth herein and in the  other Operative Agreements; and (c) the Agent and its Affiliates and the Lenders may be engaged  in a broad range of transactions that involve interests that differ from those of the Credit Parties  and their respective Affiliates, and neither the Agent, any of its Affiliates nor any Lender has any  obligation to disclose any of such interests to any Credit Party or any of their respective Affiliates.   Except with respect to the Agent’s duties and obligations to the Credit Parties as provided herein  and to the fullest extent permitted by law, each of the Credit Parties hereby waives and releases any  claims that it may have against the Agent, any of its Affiliates or any Lender with respect to any  breach or alleged breach of agency or fiduciary duty in connection with any aspect of any  transactions contemplated hereby.  [signature pages follow]  

 

PARTICIPATION AGREEMENT  CHAR1\1917164v13  IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by  their respective officers thereunto duly authorized as of the day and year first above written.  CONSTRUCTION AGENT AND LESSEE:  AVDC, LLC (formerly, AVDC, Inc.), as the Construction  Agent and the Lessee  By:   Name:   Title:   (signature pages continue)  

 

PARTICIPATION AGREEMENT  CHAR1\1917164v13  GUARANTORS:  BIG LOTS STORES, LLC (formerly, Big Lots Stores,  Inc.), as a Guarantor  By:   Name:   Title:   BIG LOTS, INC., as a Guarantor  By:   Name:   Title:   BIG LOTS ECOMMERCE LLC, as a Guarantor  By:   Name:   Title:   BIG LOTS F&S, LLC (formerly, Big Lots F&S, Inc.), as  a Guarantor  By:   Name:   Title:   BIG LOTS MANAGEMENT, LLC (formerly, BLHQ  LLC), as a Guarantor  By:   Name:   Title:   (signature pages continue)  

 

PARTICIPATION AGREEMENT  CHAR1\1917164v13  BROYHILL, LLC, as a Guarantor  By:   Name:   Title:   CLOSEOUT DISTRIBUTION, LLC (formerly,  Closeout Distribution, Inc.), as a Guarantor  By:   Name:   Title:   CONSOLIDATED PROPERTY HOLDINGS, INC., as  a Guarantor  By:   Name:   Title:   CSC DISTRIBUTION LLC (formerly, CSC  Distribution, Inc.), as a Guarantor  By:   Name:   Title:   BIG LOTS STORES – CSR, LLC (formerly, C.S. Ross  Company), as a Guarantor  By:   Name:   Title:   (signature pages continue)  

 

PARTICIPATION AGREEMENT  CHAR1\1917164v13  DURANT DC, LLC, as a Guarantor  By:   Name:   Title:   GAFDC LLC, as a Guarantor  By:   Name:   Title:   GREAT BASIN LLC, as a Guarantor  By:   Name:   Title:   PAFDC LLC, as a Guarantor  By:   Name:   Title:   BIG LOTS STORES – PNS, LLC (formerly, PNS  Stores, Inc.), as a Guarantor  By:   Name:   Title:   (signature pages continue)  

 

PARTICIPATION AGREEMENT  CHAR1\1917164v13  WAFDC, LLC, as a Guarantor  By:   Name:   Title:   INFDC, LLC, as a Guarantor  By:   Name:   Title:   (signature pages continue)  

 

PARTICIPATION AGREEMENT  CHAR1\1917164v13  LESSOR PARTIES:  WACHOVIA SERVICE CORPORATION, as the Lessor  By:   Name:   Title:   (signature pages continue)  

 

PARTICIPATION AGREEMENT  CHAR1\1917164v13  BANKERS COMMERCIAL CORPORATION, as a  Lease Participant  By:   Name: Stefan Breuer  Title: Managing Director  (signature pages continue)  

 

PARTICIPATION AGREEMENT  CHAR1\1917164v13  PNC BANK, NATIONAL ASSOCIATION (successor- by-merger to PNC Equipment Finance, LLC), as a Lease  Participant  By:   Name:   Title:   (signature pages continue)  

 

PARTICIPATION AGREEMENT  CHAR1\1917164v13  AGENT:  WELLS FARGO BANK, NATIONAL ASSOCIATION,  as the Agent  By:   Name:   Title:   (signature pages end)  

 

CHAR1\1917164v13  Appendix A  Rules of Usage and Definitions  I.  Rules of Usage  The following rules of usage shall apply to this Appendix A and the Operative Agreements (and each  appendix, schedule, exhibit and annex to the foregoing) unless otherwise required by the context or unless  otherwise defined therein:  (a) Except as otherwise expressly provided, any definitions set forth herein or in any other  document shall be equally applicable to the singular and plural forms of the terms defined.  (b) Except as otherwise expressly provided, references in any document to articles, sections,  paragraphs, clauses, annexes, appendices, schedules or exhibits are references to articles, sections,  paragraphs, clauses, annexes, appendices, schedules or exhibits in or to such document.  (c) The headings, subheadings and table of contents used in any document are solely for  convenience of reference and shall not constitute a part of any such document nor shall they affect the  meaning, construction or effect of any provision thereof.  (d) References to any Person shall include such Person, its successors, permitted assigns and  permitted transferees.  (e) Except as otherwise expressly provided, reference to any agreement means such agreement  as amended, modified, extended, supplemented, restated and/or replaced from time to time in accordance  with the applicable provisions thereof.  (f) Except as otherwise expressly provided, references to any law includes any amendment or  modification to such law and any rules or regulations issued thereunder or any law enacted in substitution  or replacement therefor.  (g) When used in any document, words such as “hereunder”, “hereto”, “hereof” and “herein”  and other words of like import shall, unless the context clearly indicates to the contrary, refer to the whole  of the applicable document and not to any particular article, section, subsection, paragraph or clause thereof.  (h) References to “including” mean including without limiting the generality of any  description preceding such term and for purposes hereof the rule of ejusdem generis shall not be applicable  to limit a general statement, followed by or referable to an enumeration of specific matters, to matters  similar to those specifically mentioned.  (i) References herein to “attorney’s fees”, “legal fees”, “costs of counsel” or other such  references shall not include the allocated cost of in-house counsel.  (j) Each of the parties to the Operative Agreements and their counsel have reviewed and  revised, or requested revisions to, the Operative Agreements, and the usual rule of construction that any  ambiguities are to be resolved against the drafting party shall be inapplicable in the construction and  interpretation of the Operative Agreements and any amendments or exhibits thereto.  

 

APPENDIX A-2  CHAR1\1917164v13 (k) Capitalized terms used in any Operative Agreements which are not defined in this  Appendix A but are defined in another Operative Agreement shall have the meaning so ascribed to such  term in the applicable Operative Agreement.  (l) In computing any period of time for purposes of any Operative Agreement, the mechanics  for counting the number of days set forth in Rule 6 of the Federal Rules of Civil Procedure shall be  observed.  (m) Time is of the essence, including with regard to the performance of all obligations.  II.  Definitions  “ABL Credit Agreement” shall mean the Credit Agreement dated as of or about the date of the  Fourth Amendment by and among the Parent, BLS, the other ABL Credit Agreement Loan Parties party  thereto, the ABL Credit Agreement Banks party thereto and the ABL Credit Agreement Administrative  Agent. “ABL Credit Agreement Administrative Agent” shall mean the Administrative Agent (as such term  is defined in the ABL Credit Agreement).  “ABL Credit Agreement Banks” shall mean the Lenders (as such term is defined in the ABL Credit  Agreement).  “ABL Credit Agreement Closing Date” shall mean the date as of which the closing conditions set  forth in Section 4.01 of the ABL Credit Agreement have been satisfied and the ABL Credit Agreement is  then in effect. “ABL Credit Agreement Loan Documents” shall mean the ABL Credit Agreement and the other  Loan Documents (as such term is defined in the ABL Credit Agreement).  “ABL Credit Agreement Loan Parties” shall mean the Loan Parties (as such term is defined in the  ABL Credit Agreement).  “ABL Credit Agreement Secured Obligations” shall mean the Secured Obligations (as such term  is defined in the ABL Credit Agreement).   “ABL Credit Agreement Security Agreement” shall mean the Security Agreement (as such term is  defined in the ABL Credit Agreement).  “ABL Credit Agreement Required Banks” shall mean the Required Lenders (as such term is  defined in the ABL Credit Agreement).  “ABR” shall mean, at any time, the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus  0.50% and (c) except during any period of the unavailability of Term SOFR (as determined by the Agent  in accordance with the Operative Agreements), the Adjusted Term SOFR Rate for a Lessor Yield Period of  one month plus 1%; each change in the ABR shall take effect simultaneously with the corresponding change  or changes in the Prime Rate, the Federal Funds Rate or the Term SOFR Reference Rate.  “ABR Lessor Advance” shall mean a Lessor Advance bearing a Lessor Yield based on the ABR.  

 

APPENDIX A-3  CHAR1\1917164v13 “Acceptable Regulatory Standards” shall mean those standards currently in effect with respect to  the presence of a hazardous substance on the Property which would be sufficient to satisfy the promulgated  remediation standards of the jurisdiction where the Property is located for the continued use of the real  property for industrial or commercial purposes only, including the possible application of restrictive  covenants, engineering controls, other types of use restrictions or monitored natural attenuation for the  minimum and lowest cost.  “Acquisition Advance” shall have the meaning given to such term in Section 5.3 of the  Participation Agreement.  “Additional Permitted Liens” shall mean:  (a) Any Lien on various property and assets (other than Collateral), granted by the  ABL Credit Agreement Loan Parties in favor of the ABL Credit Agreement Administrative Agent  pursuant to the ABL Credit Agreement Security Agreement and securing the ABL Credit  Agreement Secured Obligations (subject to compliance with Section 8.3B(t));  (b) Liens for Taxes, assessments, or similar charges, incurred in the ordinary course  of business and which are not yet due and payable;  (c) Pledges or deposits made in the ordinary course of business to secure payment of  workmen’s compensation, or to participate in any fund in connection with workmen’s  compensation, unemployment insurance, old-age pensions or other social security programs;  (d) Liens of contractors, mechanics, materialmen, warehousemen, carriers, or other  like Liens, securing obligations incurred in the ordinary course of business that are not yet due and  payable and Liens of landlords securing obligations to pay lease payments that are not yet due and  payable or in default;  (e) Good-faith pledges or deposits made in the ordinary course of business to secure  performance of bids, tenders, contracts (other than for the repayment of borrowed money) or leases,  not in excess of the aggregate amount due thereunder, or to secure statutory obligations, or surety,  appeal, indemnity, performance or other similar bonds required in the ordinary course of business;  (f) Encumbrances consisting of zoning restrictions, easements or other restrictions on  the use of real property, none of which materially impairs the use of such property or the value  thereof, and none of which is violated in any material respect by existing or proposed structures or  land use;  (g) Liens on property leased by or consigned to any Credit Party under Capital Leases,  operating leases, leases giving rise to Synthetic Lease Obligations or consignment arrangements,  in each case, securing obligations of such Credit Party to the lessor (and, in the case of leases giving  rise to Synthetic Lease Obligations, the lenders to the lessor) or the consignor under such leases or  consignment arrangements and Liens on property securing any AVDC Refinancing Indebtedness;  (h) Any Lien existing on the ABL Credit Agreement Closing Date and described on  Schedule XV, provided that the principal amount secured thereby is not hereafter increased, and no  additional assets become subject to such Lien;  (i) Purchase Money Security Interests to the extent that the aggregate amount of loans  and deferred payments secured by such Purchase Money Security Interests do not exceed at any  

 

APPENDIX A-4  CHAR1\1917164v13 one time outstanding Twenty-Five Million and 00/100 Dollars ($25,000,000.00) (excluding for the  purpose of this aggregate computation any loans or deferred payments secured by Liens described  on Schedule XV);  (j) Liens on proceeds granted in connection with securities lending transactions or  reverse repurchase agreements involving United States Treasury bonds to the extent the aggregate  amount of the Indebtedness secured by such Liens do not exceed at any one time outstanding Ten  Million and 00/100 Dollars ($10,000,000.00) (excluding for the purpose of this aggregate  computation any loans or deferred payments secured by Liens described on Schedule XV; and  (k) The following, (i) if the validity or amount thereof is being contested in good faith  by appropriate and lawful proceedings diligently conducted so long as levy and execution thereon  have been stayed and continue to be stayed or (ii) if a final judgment is entered and such judgment  is discharged within thirty (30) days of entry, or (iii) if payments thereof are covered in full (subject  to customary deductibles) by an insurance company of reputable standing which has acknowledged  that the applicable policy applies to the following and is not reserving any right to contest  applicability, and in any case they do not in the aggregate materially impair the ability of any Credit  Party to perform its obligations hereunder or under the other Operative Agreements:  (A) Claims or Liens for Taxes, assessments or charges due and payable and  subject to interest or penalty; provided that the applicable Credit Party maintains such  reserves or other appropriate provisions as shall be required by GAAP and pays all such  Taxes, assessments or charges forthwith upon the commencement of proceedings to  foreclose any such Lien;  (B) Claims, Liens or encumbrances upon, and defects of title to, real or  personal property, including any attachment of personal or real property or other legal  process prior to adjudication of a dispute on the merits;  (C) Claims or Liens of mechanics, materialmen, warehousemen, carriers, or  other statutory nonconsensual Liens; or  (D) Liens resulting from final judgments or orders for the payment of money  in excess of Fifty Million and 00/100 Dollars ($50,000,000.00) in the aggregate entered  against any Credit Party by a court having jurisdiction in the premises, which judgment is  not satisfied, discharged, vacated, bonded or stayed pending appeal within a period of sixty  (60) days from the date of entry.  “Adjusted Term SOFR Rate” shall mean, for purposes of any calculation, the rate per annum equal  to (a) Term SOFR for such calculation, plus (b) 0.10% (10 basis points).   “Administrative Agency Fee” shall have the meaning given to such term in Section 7.6 of the  Participation Agreement.  “Advance” shall mean, individually, an Initial Closing Date Advance, an Acquisition Advance, a  Construction Advance or any other Lessor Advance in accordance with the Operative Agreements.  “Affected Financial Institution” shall mean any EEA Financial Institution or UK Financial  Institution.  

 

APPENDIX A-5  CHAR1\1917164v13 “Affiliate”, as to any Person, shall mean any other Person (a) which directly or indirectly controls,  is controlled by, or is under common control with such Person, (b) which beneficially owns or holds twenty  percent (20%) or more of any class of the voting or other equity interests of such Person, or (c) twenty  percent (20%) or more of any class of voting interests or other equity interests of which is beneficially  owned or held, directly or indirectly, by such Person.  Control, as used in this definition, shall mean 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 ownership of voting securities, by contract or otherwise, including the  power to elect a majority of the directors or trustees of a corporation or trust, as the case may be.  “After Tax Basis” shall mean, in the context of determining the amount of a payment to be made  on such basis, actually or constructively, the base amount of such payment increased so that, after reduction  by the amount of all Taxes required to be paid by the recipient calculated at the then maximum marginal  Tax rates generally applicable to Persons of the same Tax classification as the recipient with respect to the  receipt by the recipient of such increased amount (and taking into account the deductibility of any such  Taxes at such maximum marginal Tax rates, as well as any actual Tax benefits realized as a result of the  recipient’s actual or constructive payment of the base amount that is subject to indemnification), such  increased payment (as so reduced) is equal to the base amount of the payment otherwise required to be  made.  At the Indemnity Provider’s request, the amount of any indemnification payment by the Indemnity  Provider required to be made on such “After Tax Basis” shall be verified and certified by an independent  public accounting firm mutually acceptable to the Indemnity Provider and the applicable Indemnified  Person.  The fees and expenses of such independent public accounting firm shall be paid by the Indemnity  Provider.  “Agency Agreement” shall mean the Construction Agency Agreement dated on or about the Initial  Closing Date, between the Construction Agent and the Lessor.  “Agency Agreement Default” shall mean any event or condition which, with the lapse of time or  the giving of notice, or both, would constitute an Agency Agreement Event of Default.  “Agency Agreement Event of Default” shall mean an “Event of Default” as defined in Section 5.1  of the Agency Agreement.  “Agent” shall mean Wells Fargo Bank, National Association, a national banking association, as  agent for the Lessor Parties, or any successor agent appointed in accordance with the terms of the  Participation Agreement, and respecting the Security Documents, as agent for the Secured Parties, to the  extent of their interests.  “Anti-Corruption Laws” shall mean the United States Foreign Corrupt Practices Act of 1977, as  amended, the UK Bribery Act 2010, and any other similar anti-corruption Laws or regulations administered  or enforced in any jurisdiction in which any Identified Big Lots Entity or any of its Subsidiaries conduct  business.  “Anti-Terrorism Laws” shall mean any Law in force or hereinafter enacted related to terrorism,  money laundering, or economic sanctions, including Executive Order No. 13224, the USA PATRIOT Act,  the International Emergency Economic Powers Act, 50 U.S.C. 1701, et. seq., the Trading with the Enemy  Act, 50 U.S.C. App. 1, et. seq., 18 U.S.C. § 2332d, and 18 U.S.C. § 2339B, and any regulations or directives  promulgated under these provisions.  “Applicable Law” shall mean, for any Person, all existing and future applicable laws, rules,  regulations (including proposed, temporary and final income Tax regulations), statutes, treaties, codes,  ordinances, permits, certificates, orders and licenses of and interpretations by any Governmental Authority  

 

APPENDIX A-6  CHAR1\1917164v13 (including usury laws, the Federal Truth in Lending Act, and Regulation Z and Regulation B of the Board  of Governors of the Federal Reserve System), and applicable judgments, decrees, injunctions, writs or  orders of any court, arbitrator or other administrative, judicial, or quasi-judicial Tribunal or agency of  competent jurisdiction.  “Applicable Percentage” shall mean for SOFR Lessor Advances, ABR Lessor Advances and for  Lessor Parties Unused Fees, the appropriate applicable percentages set forth below:  Applicable Percentage for  SOFR Lessor Advances  Applicable Percentage for  ABR Lessor Advances  Applicable Percentage for  Lessor Parties Unused Fees  2.60% 1.60% 0.350%  “Appraisal” shall mean, with respect to the Property, an appraisal to be delivered in connection  with the Participation Agreement or in accordance with the terms of the Lease, in each case prepared by a  reputable appraiser reasonably acceptable to the Agent, which in the judgment of counsel to the Agent,  complies with all of the provisions of the Financial Institutions Reform, Recovery and Enforcement Act of  1989, as amended, the rules and regulations adopted pursuant thereto, and all other applicable Legal  Requirements, or any other appraisal or valuation with respect to the Property reasonably acceptable to the  Agent.  “Appraisal Procedure” shall have the meaning given such term in Section 21.4 of the Lease.  “Appurtenant Rights” shall mean (a) all agreements, easements, rights of way or use, rights of  ingress or egress, privileges, appurtenances, tenements, hereditaments and other rights and benefits at any  time belonging or pertaining to the Land underlying the Improvements or the Improvements, including the  use of any streets, ways, alleys, vaults or strips of land adjoining, abutting, adjacent or contiguous to the  Land and (b) all permits, licenses and rights, whether or not of record, appurtenant to such Land or the  Improvements.  “Assumed Characterization” shall have the meaning given to such term in Section 11.2(g) of the  Participation Agreement.  “Attributable Indebtedness” shall mean, with respect to any Person, on any date, (a) in respect of  any Capital Lease, the capitalized amount thereof that would appear on the balance sheet of such Person  prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease Obligation,  the capitalized amount of the remaining lease payments thereunder that would appear on a balance sheet of  such Person prepared as of such date in accordance with GAAP if such Synthetic Lease Obligation were  accounted for as a Capital Lease.  “Authorized Officer” shall mean with respect to any Credit Party, the Chief Executive Officer,  President, Chief Financial Officer, Treasurer or Assistant Treasurer of such Credit Party, any manager or  the members (as applicable) in the case of any Credit Party which is a limited liability company or such  other individuals, designated by written notice to the Agent from BLS, in each case, authorized to execute  notices, reports and other documents on behalf of the Credit Parties required under the Operative  Agreements.  Any Credit Party may amend such list of individuals from time to time by giving written  notice of such amendment to the Agent.  

 

APPENDIX A-7  CHAR1\1917164v13 “Available Lessor Parties Commitment” shall mean an amount equal to the excess, if any, of (a) the  amount of the Lessor Parties Commitment over (b) the aggregate amount of the Lessor Advances made  since the Initial Closing Date after giving effect to Section 5.2(d) of the Participation Agreement.  “AVDC Refinancing Indebtedness” shall have the meaning given to such term in Section  8.3B(a)(iii).  “Bail-In Action” shall mean the exercise of any Write-Down and Conversion Powers by the  applicable Resolution Authority in respect of any liability of an Affected Financial Institution.  “Bail-In Legislation” shall mean (a) with respect to any EEA Member Country implementing  Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union,  the implementing law, regulation rule or requirement for such EEA Member Country from time to time  which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom,   Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law,  regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks,  investment firms or other financial institutions or their affiliates (other than through liquidation,  administration or other insolvency proceedings).  “Bank-Provided Hedge” shall mean a Hedge Agreement which is provided by any ABL Credit  Agreement Bank and with respect to which the ABL Credit Agreement Administrative Agent confirms  meets specified requirements of the ABL Credit Agreement, all as evidenced by the Credit Parties to the  reasonable satisfaction of the Agent.  The liabilities of the Credit Parties to the provider of any Bank- Provided Hedge, for purposes of the Operative Agreements, shall not be Obligations.  “Bankruptcy Code” shall mean the United States Bankruptcy Reform Act of 1978  (11 U.S.C. § 101, et seq.), as amended from time to time.  “Basic Rent” shall mean the scheduled Lessor Yield due on the Lessor Advances on any Payment  Date (but not including yield on overdue amounts), calculated as of the applicable date on which Basic Rent  is due.  “Basic Term” shall have the meaning given to such term in Section 2.2 of the Lease.  “Basic Term Expiration Date” shall have the meaning given to such term in Section 2.2 of the  Lease.  “Benchmark”  shall mean the Term SOFR Reference Rate for a tenor of one month; provided that  if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect  to the Term SOFR Reference Rate for the tenor or the then-current Benchmark in accordance with Section  5A.11, then “Benchmark” shall mean the applicable Benchmark Replacement to the extent that such  Benchmark Replacement has replaced such prior benchmark rate pursuant to clause (a) of Section 5A.11.  “Benchmark Replacement” shall mean with respect to any Benchmark Transition Event, the first  alternative set forth in the order below that can be determined by the Agent as a replacement of the  applicable then-current Benchmark as of the Benchmark Replacement Date:  (1) if such then-current Benchmark is the Term SOFR Reference Rate, the sum of: (a)  Daily Simple SOFR and (b) the related Benchmark Replacement Adjustment; or  

 

APPENDIX A-8  CHAR1\1917164v13 (2) the sum of: (a) the alternate benchmark rate that has been selected by the Agent as  the replacement for the then-current Benchmark and (b) the related Benchmark Replacement  Adjustment;  provided that, in each case, if such Benchmark Replacement as so determined would be less than zero (0),  the Benchmark Replacement will be deemed to be zero (0) for the purposes of this Agreement and the other  Operative Agreements.  “Benchmark Replacement Adjustment” shall mean with respect to any replacement of the then- current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for  calculating or determining such spread adjustment, (which may be a positive or negative value or zero (0))  that has been selected by the Agent.  “Benchmark Replacement Date” shall mean with respect to any Benchmark, the earliest to occur  of the following events with respect to such Benchmark:  (1) in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later  of (a) the date of the public statement or publication of information referenced therein and (b) the date on  which the administrator of such Benchmark permanently or indefinitely ceases to provide such Benchmark;  or  (2) in the case of clause (3) of the definition of “Benchmark Transition Event,” the first date  on which such Benchmark has been determined and announced by the regulatory supervisor for the  administrator of such Benchmark to be non-representative; provided, that such non-representativeness will  be determined by reference to the most recent statement or publication referenced in such clause (3) even  if such Benchmark continues to be provided on such date.   “Benchmark Transition Event” shall mean with respect to any Benchmark, the occurrence of one  or more of the following events with respect to such Benchmark:  (1)  a public statement or publication of information by or on behalf of the administrator of  such Benchmark announcing that such administrator has ceased or will cease to provide such Benchmark,  permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor  administrator that will continue to provide such Benchmark;  (2)  a public statement or publication of information by the regulatory supervisor for the  administrator of such Benchmark, the Board of Governors of the Federal Reserve System, the Federal  Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such  Benchmark, a resolution authority with jurisdiction over the administrator for such Benchmark or a court  or an entity with similar insolvency or resolution authority over the administrator for such Benchmark,  which states that the administrator of such Benchmark has ceased or will cease to provide such Benchmark  permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor  administrator that will continue to provide such Benchmark; or  (3)  a public statement or publication of information by the regulatory supervisor for the  administrator of such Benchmark announcing that such Benchmark is not, or as of a specified future date  will not be, representative.  “Benefit Arrangement” shall mean at any time an “employee benefit plan,” within the meaning of  Section 3(3) of ERISA, which is not a Plan, a Multiemployer Plan or a Multiple Employer Plan and which  is maintained, sponsored or otherwise contributed to by any member of the ERISA Group.  

 

APPENDIX A-9  CHAR1\1917164v13 “Benefitted Lessor Party” shall have the meaning given to such term in Section 12.15 of the  Participation Agreement.  “Big Lots Supplemental Savings Plan” shall mean the nonqualified deferred compensation plan  maintained for the benefit of employees of the Parent’s Subsidiaries.  “Bill of Sale” shall mean a warranty bill of sale (or special warranty bill of sale if seller is not an  individual) regarding Equipment, in form and substance satisfactory to the Agent, in its reasonable  discretion.  “BLS” shall mean Big Lots Stores, LLC (formerly, Big Lots Stores, Inc.), an Ohio limited liability  company.  “Breakage Costs” shall mean any amount or amounts as shall compensate any Financing Party for  any loss, cost or expense incurred by such Financing Party (as determined by such Financing Party in its  reasonable discretion) as a result of a repayment or prepayment of Lessor Advances or Lessor Yield  pursuant to the terms of the Operative Agreements on any date other than a Payment Date or any failure to  receive a Lessor Advance, in each case on the date specified therefor in the applicable Requisition.  “Budgeted Total Property Cost” shall mean the amount of Property Cost set forth in the  Construction Budget for the Property necessary for final completion thereof.  “Business Day” shall mean any day of the year other than a Saturday or a Sunday on which  (a) banks are not required or authorized to be closed in New York, New York or Charlotte, North Carolina  and (b) if the term “Business Day” is used in connection with the determination of Term SOFR, a U.S.  Government Securities Business Day.  “Capital Lease” shall mean all leases that have been or should be, in accordance with GAAP,  recorded as capitalized leases, including any “financing lease” under FASB 842.  “Captive Insurance Entity” shall mean an insurance company created and owned by a Credit Party  whose primary purpose is to provide coverage on the risk of the Parent or the Parent’s Subsidiaries.  “Casualty” shall mean any damage or destruction of all or any portion of the Property as a result of  a fire or other casualty.  “CERCLA” shall mean the Comprehensive Environmental Response, Compensation, and Liability  Act of 1980, 42 U.S.C. § 9601 et seq., as amended by the Superfund Amendments and Reauthorization Act  of 1986.  “Certifying Party” shall have the meaning given to such term in Section 26.3 of the Lease.  “Claims” shall mean any and all obligations, liabilities, losses, actions, suits, penalties, claims,  demands, costs and expenses (including reasonable attorney’s fees and expenses) of any nature whatsoever.  “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.  “Collateral” shall mean, excluding in all cases Excepted Payments, the assets and property upon  which a Lien is created, exists or is purported to be created by one or more of the Security Documents.  “Commencement Date” shall have the meaning given to such term in Section 2.2 of the Lease.  

 

APPENDIX A-10  CHAR1\1917164v13 “Commitment Percentage” shall mean, as to any Lessor Party at any time, the percentage which  such Lessor Party’s Lessor Parties Commitment then constitutes of the aggregate Lessor Parties  Commitments.  “Commitment Period” shall mean the period from and including the Initial Closing Date to and  including the date that is eighteen (18) months after the Initial Closing Date or in the event that a Force  Majeure Event occurs with respect to the Property during such eighteen (18) month period, then the date  that is up to three (3) months after such eighteen (18) month period) as determined in a manner consistent  with Section 3.3 of the Agency Agreement, or such earlier date as the Lessor Parties Commitment shall  terminate as provided in the Participation Agreement.  “Commitments” shall mean the Lessor Parties Commitments.  “Company Obligations” shall mean the Obligations.  “Completion” shall mean, such time as the acquisition, installation, testing and final completion of  the Improvements on the Property has been achieved in all material respects in accordance with the Plans  and Specifications, the Agency Agreement and/or the Lease, and in compliance with all Legal  Requirements and Insurance Requirements and a temporary certificate of occupancy or its equivalent has  been issued with respect to the Property by the appropriate governmental entity (except if noncompliance,  individually or in the aggregate, shall not have and could not reasonably be expected to have a Material  Adverse Effect).  If the Lessor purchases the Property that includes existing Improvements that are to be  immediately occupied by the Lessee without any improvements to be financed pursuant to the Operative  Agreements, the date of Completion for the Property shall be the Property Closing Date.  “Completion Date” shall mean, the earlier of (a) the date on which Completion for the Property has  occurred or (b) the Construction Period Termination Date.  “Compliance Certificate” shall have the meaning given to such term in Section 8.3C(c) of the  Participation Agreement.  “Condemnation” shall mean any taking or sale of the use, access, occupancy, easement rights or  title to the Property or any part thereof, wholly or partially (temporarily or permanently), by or on account  of any actual or threatened eminent domain proceeding or other taking of action by any Person having the  power of eminent domain, including an action by a Governmental Authority to change the grade of, or  widen the streets adjacent to, the Property or alter the pedestrian or vehicular traffic flow to the Property so  as to result in a change in access to the Property, or by or on account of an eviction by paramount title or  any transfer made in lieu of any such proceeding or action.  “Conforming Changes” shall mean with respect to either the use or administration of an initial  Benchmark or the use, administration, adoption or implementation of any Benchmark Replacement, any  technical, administrative or operational changes (including changes to the definition of “Business Day”, the  definition of “Lessor Yield,” the definition of “Lessor Yield Period,” the definition of “U.S. Government  Securities Business Day,” timing and frequency of determining rates and making payments, prepayment  provisions, early purchases, the applicability and length of lookback periods, the applicability of Section  5A.11 and other technical, administrative or operational matters) that the Agent decides may be appropriate  to reflect the adoption and implementation of any such rate or to permit the use and administration thereof  by the Agent in a manner substantially consistent with market practice (or, if the Agent decides that adoption  of any portion of such market practice is not administratively feasible or if the Agent determines that no  market practice for the administration of any such rate exists, in such other manner of administration as the  

 

APPENDIX A-11  CHAR1\1917164v13 Agent decides is reasonably necessary in connection with the administration of this Agreement and the  other Operative Agreements).  “Consolidated Subsidiary” shall mean, as to any Person, any Subsidiary of such Person which under  the rules of GAAP consistently applied should have its financial results consolidated with those of such  Person for purposes of financial accounting statements.  “Consolidated Total Indebtedness” shall mean, as of any date of determination, any and all  Indebtedness (excluding any Synthetic Lease Obligation and any obligations (contingent or otherwise)  under any Hedge Agreement) of the Parent and its Subsidiaries, in each case determined and consolidated  for the Parent and its Subsidiaries in accordance with GAAP. “Construction Advance” shall mean an advance of funds by any of the Lessor Parties to pay, or to  reimburse the Lessee, the Construction Agent or a designee or designees of either for, Property Costs  pursuant to Section 5.4 of the Participation Agreement.  “Construction Agency Person” shall mean the Construction Agent, the Lessee, the Guarantors, any  contractor, subcontractor, adviser, architect, engineer, developer, employee, attorney-in-fact or agent with  respect to the Property and any other Person that the Construction Agent directly or indirectly supervises,  hires or otherwise permits to engage in any Work with respect to the Property, any portion thereof or any  Improvements thereto, and any Affiliate of any of the foregoing.  “Construction Agent” shall mean AVDC, LLC (formerly, AVDC Inc.), an Ohio limited liability  company, as the construction agent under the Agency Agreement.  “Construction Agent Certificate” shall have the meaning given to such term in Section  5.17(b)(i)(A) of the Participation Agreement.  “Construction Budget” shall mean the construction budget certified to the Agent detailing the cost  of acquisition, installation, testing, constructing and developing the Property as determined by the  Construction Agent in its reasonable, good faith judgment, as such budget may be amended, modified or  supplemented from time to time in accordance with the terms of the Operative Agreements.  “Construction Commencement Date” shall mean, with respect to Improvements, the Property  Closing Date.  “Construction Consultant” shall mean Wells Fargo Real Estate Technical Services, a division of  Wells Fargo Bank, National Association, a national banking association.  “Construction Contract” shall mean any contract entered into between the Construction Agent or  the Lessee with (a) a Contractor for the construction of Improvements or any portion thereof on the  Property, which shall be a maximum guaranteed price design-build agreement between the Construction  Agent and the general contractor for the Property to complete construction of the Property in accordance  with the Construction Budget on or prior to the Construction Period Termination Date, (b) an architect for  the design of Improvements or any portion thereof on the Property, and (c) an engineer for engineering  services regarding Improvements or any portion thereof on the Property.  “Construction Documents” shall mean each of the Construction Contracts, the Construction  Budget, the construction schedule, the Plans and Specifications and each and every other agreement or  document related to any of the foregoing.  

 

APPENDIX A-12  CHAR1\1917164v13 “Construction Period” shall mean the period commencing on the Construction Commencement  Date and ending on the Completion Date.  “Construction Period Guarantee Amount” shall have the meaning given to such term in Section 5.4  of the Agency Agreement.  “Construction Period Property” shall mean the Property if, at any date of determination, the Rent  Commencement Date has not occurred on or prior to such date.  “Construction Period Termination Date” shall mean (a) the earlier of (i) the date that the Lessor  Parties Commitment has been terminated in its entirety in accordance with the terms of the Participation  Agreement, or (ii) the date that is eighteen (18) months after the Initial Closing Date or in the event that a  Force Majeure Event occurs with respect to the Property during such eighteen (18) month period, then the  date that is up to three (3) months after such eighteen (18) month period as determined in a manner  consistent with Section 3.3 of the Agency Agreement or (b) such later date as shall be agreed to by each  Lessor Party, in its sole discretion.  “Contamination” shall mean the presence or release or threat of release of Regulated Substances  in, on, under or emanating to or from any Credit Party Property which pursuant to Environmental Laws  requires notification or reporting to an Official Body, or which pursuant to Environmental Laws requires  the investigation, cleanup, removal, remediation, containment, abatement of or other response action or  which otherwise constitutes a violation of Environmental Laws.  “Contractor” shall mean each entity with whom the Construction Agent or the Lessee contracts to  construct any Improvements or any portion thereof on the Property.  “Controlled Group” shall mean all members of a controlled group of corporations and all trades or  businesses (whether or not incorporated) under common control which, together with the Lessee, are treated  as a single employer under Section 414 of the Code.  “Corresponding Tenor” shall mean with respect to a Benchmark Replacement, an approximately  one-month tenor (including overnight) (disregarding Business Day adjustment).  “Covered Entity” shall mean (a) each Identified Big Lots Entity, each of Identified Big Lots  Entity’s Subsidiaries, Lessee, Lessee’s Subsidiaries, all Guarantors and (b) each Person that, directly or  indirectly, is in control of a Person described in clause (a) above.  For purposes of this definition, control  of a Person shall mean the direct or indirect (x) ownership of, or power to vote, twenty five percent (25%)  or more of the issued and outstanding equity interests having ordinary voting power for the election of  directors of such Person or other Persons performing similar functions for such Person, or (y) power to  direct or cause the direction of the management and policies of such Person whether by ownership of equity  interests, contract or otherwise.  “Credit Parties” shall mean the Construction Agent, the Lessee and the Guarantors.  “Credit Party Property” shall mean all real property (including the Property), both owned and  leased, of any Credit Party.  “Daily Simple SOFR” shall mean, for any day, SOFR, with the conventions for this rate (which  will include a lookback) being established by the Agent in accordance with the conventions for this rate  recommended by the Relevant Governmental Body for determining “Daily Simple SOFR” for syndicated  business loans; provided, that if the Agent decides that any such convention is not administratively feasible  

 

APPENDIX A-13  CHAR1\1917164v13 for the Agent, then the Agent may establish another convention in its reasonable discretion. If for the  calculation of Daily Simple SOFR, the calculation of SOFR for any day results in a SOFR rate of less than  zero (0), SOFR shall be deemed to be zero (0) for all purposes of this Agreement and the other Operative  Agreements.  Each calculation by the Agent of Daily Simple SOFR shall be conclusive and binding for all  purposes, absent manifest error.  “Debtor Relief Laws” shall mean the Bankruptcy Code, and all other liquidation, conservatorship,  bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency,  reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time  to time in effect.  “Deed” shall mean a warranty deed (or special warranty deed if grantor is not an individual)  respecting any Land and/or Improvements, in form and substance satisfactory to the Agent, in its reasonable  discretion.  “Deemed Insolvency” shall mean with respect to any Person, such Person (i) is insolvent pursuant  to the Uniform Fraudulent Transfers Act or any similar, equivalent or replacement thereof, (ii) is engaged  in a business or transaction, or is about to engage in business or a transaction, for which any property  remaining with such Person is an unreasonably small amount of capital or (iii) intended to incur, or believed  that such Person would incur, debt or other obligations that would be beyond such Person’s ability to pay  as such debts and obligations mature or otherwise become due.  “Default” shall mean any event or condition which with notice, passage of time or a determination  reasonably made by the Agent or the Majority Secured Parties, or any combination of the foregoing, would  constitute an Event of Default.  “Defaulting Lessor Party” shall mean, subject to Section 5A.1(e)(ii) of the Participation Agreement,  any Lessor Party that  (a) has failed to (i) fund all or any portion of its Lessor Advances within two (2)  Business Days of the date such Lessor Advances were required to be funded under the Operative  Agreement unless such Lessor Party notifies the Agent and the Lessee in writing that such failure  is the result of such Lessor Party’s determination that one or more conditions precedent to funding  (each of which conditions precedent, together with any applicable default, shall be specifically  identified in such writing) has not been satisfied, or (ii) pay to the Agent or any other Lessor Party  any other amount required to be paid by it hereunder within two (2) Business Days of the date when  due,  (b) has notified the Agent or the Lessee in writing that it does not intend to comply  with its funding obligations hereunder, or has made a public statement to that effect (unless such  writing or public statement relates to such Lessor Party’s obligation to fund a Lessor Advance and  states that such position is based on such Lessor Party’s determination that a condition precedent  to funding (which condition precedent, together with any applicable default, shall be specifically  identified in such writing or public statement) cannot be satisfied),  (c) has failed, within three (3) Business Days after written request by the Agent or the  Lessee, to confirm in writing to the Agent and the Lessee that it will comply with its prospective  funding obligations hereunder (provided, that such Lessor Party shall cease to be a Defaulting  Lessor Party pursuant to this clause (c) upon receipt of such written confirmation by the Agent), or  

 

APPENDIX A-14  CHAR1\1917164v13 (d) has, or has a direct or indirect parent company that has, (i) become the subject of  a proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian,  conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged  with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance  Corporation or any other state or federal regulatory authority acting in such a capacity, or  (iii) become the subject of a Bail-In Action;  provided, that a Lessor Party shall not be a Defaulting Lessor Party solely by virtue of the ownership or  acquisition of any equity interest in that Lessor Party or any direct or indirect parent company thereof by a  Governmental Authority so long as such ownership interest does not result in or provide such Lessor Party  with immunity from the jurisdiction of courts within the United States or from the enforcement of  judgments or writs of attachment on its assets or permit such Lessor Party (or such Governmental Authority)  to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lessor Party.  Any  determination by the Agent that a Lessor Party is a Defaulting Lessor Party under any one or more of clauses  (a) through (d) above, and the effective date of such status, shall be conclusive and binding absent manifest  error, and such Lessor Party shall be deemed to be a Defaulting Lessor Party (subject to Section 5A.1(e)(ii))  as of the date established therefor by the Agent in a written notice of such determination, which shall be  delivered by the Agent to each other Lessor Party promptly following such determination.  “Deficiency Balance” shall have the meaning given to such term in Section 21.1(b) of the Lease.  “Dollars” and “$” shall mean dollars in lawful currency of the United States of America.  “Domestic Subsidiary” shall mean a Subsidiary that is organized under the laws of any political  subdivision of the United States.  “DTSC” shall have the meaning given to such term in Section 5.14 of the Participation Agreement.  “EEA Financial Institution” shall mean (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” shall mean any of the member states of the European Union, Iceland,  Liechtenstein, and Norway.  “EEA Resolution Authority” shall mean 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.  “Election Date” shall have the meaning given to such term in Section 20.1 of the Lease.  “Election Notice” shall have the meaning given to such term in Section 20.1 of the Lease.  “Eligible Assignee” shall mean respecting any assignee of any Lessor Party, any “qualified  institutional buyer” as that term is defined in Rule 144A under the Securities Act or an Affiliate of a  “qualified institution buyer”, except in all cases any Defaulting Lessor Party, any Credit Party, any Affiliate  of any Credit Party or any competitor of any Credit Party.  

 

APPENDIX A-15  CHAR1\1917164v13 “Engagement Letter” shall mean that certain engagement letter agreement, dated October 17, 2017,  from Wells Fargo Securities, LLC and Wells Fargo Bank, National Association to Mr. Paul Schroeder,  Senior Vice President, Controller and Treasurer of Big Lots, Inc., and accepted by Big Lots, Inc., as such  letter may be amended, modified, supplemented, restated or replaced from time to time. “Environmental Claims” shall mean any investigation, notice, violation, demand, allegation, action,  suit, injunction, judgment, order, consent decree, penalty, fine, lien, proceeding, or claim (whether  administrative, judicial, or private in nature) arising (a) pursuant to, or in connection with, an actual or  alleged violation of, or noncompliance with, any Environmental Law, (b) in connection with any Hazardous  Substance, (c) from any abatement, removal, remedial, corrective, or other response action in connection  with a Hazardous Substance, Environmental Law, or other order of a Tribunal or (d) from any actual or  alleged damage, injury, threat, or harm to health, safety, natural resources, or the environment.  “Environmental Complaint” shall mean any (a) notice of non-compliance or violation, citation or  order relating in any way to any Environmental Law, Environmental Permit, Contamination or Regulated  Substance; (b) civil, criminal, administrative or regulatory investigation instituted by an Official Body  relating in any way to any Environmental Law, Environmental Permit, Contamination or Regulated  Substance; (c) administrative, regulatory or judicial action, suit, claim or proceeding instituted by any  Person or Official Body or any written notice of liability or potential liability from any Person or Official  Body, in either instance, setting forth allegations relating to or a cause of action for personal injury  (including death), property damage, natural resource damage, contribution or indemnity for the costs  associated with the performance of Remedial Actions, direct recovery for the costs associated with the  performance of Remedial Actions, liens or encumbrances attached to or recorded or levied against property  for the costs associated with the performance of Remedial Actions, civil or administrative penalties,  criminal fines or penalties, or declaratory or equitable relief arising under any Environmental Laws; or  (d) subpoena, request for information or other written notice or demand of any type issued to the Guarantor  or any of its Subsidiaries by an Official Body pursuant to any Environmental Laws.  “Environmental Condition” shall mean any action, omission, event, condition or circumstance,  including the presence of any Hazardous Substance, which does or reasonably could (i) require assessment,  investigation, abatement, correction, removal or remediation, (ii) give rise to any obligation or liability of  any nature (whether civil or criminal, arising under a theory of negligence or strict liability, or otherwise  under any Environmental Law, (iii) create or constitute a public or private nuisance or trespass, or (iv)  constitute a violation of or noncompliance with any Environmental Law.  “Environmental Laws” shall mean all federal, state, provincial, local and foreign Laws (including,  but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C.  §§ 9601 et seq., the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq., the Hazardous  Materials Transportation Act, 49 U.S.C. § 1801 et seq., the Toxic Substances Control Act, 15 U.S.C. § 2601  et seq., the Federal Water Pollution Control Act, 33 U.S.C. §§ 1251 et seq., the Federal Safe Drinking Water  Act, 42 U.S.C. §§ 300f-300j, the Federal Air Pollution Control Act, 42 U.S.C. § 7401 et seq., the Oil  Pollution Act, 33 U.S.C. § 2701 et seq., the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C.  §§ 136 to 136y) each as amended, and any regulations promulgated thereunder or any equivalent state,  provincial or local Law, each as amended, and any regulations promulgated thereunder and any consent  decrees, settlement agreements, judgments, orders, directives or any binding policies having the force and  effect of law issued by or entered into with an Official Body pertaining or relating to:  (a) pollution or  pollution control; (b) protection of human health from exposure to Regulated Substances; (c) protection of  the environment and/or natural resources; (d) the presence, use, management, generation, manufacture,  processing, extraction, treatment, recycling, refining, reclamation, labeling, sale, transport, storage,  collection, distribution, disposal or release or threat of release of Regulated Substances; (e) the presence of  

 

APPENDIX A-16  CHAR1\1917164v13 Contamination; (f) the protection of endangered or threatened species; and (g) the protection of  Environmentally Sensitive Areas.  “Environmental Permits” shall mean all permits, licenses, bonds or other forms of financial  assurances, consents, registrations, identification numbers, approvals or authorizations required under  Environmental Laws (a) to own, occupy or maintain any Credit Party Property; (b) for the operations and  business activities of the Credit Parties; or (c) for the performance of a Remedial Action.  “Environmental Records” shall mean all notices, reports, records, plans, applications, forms or  other filings relating or pertaining to all Credit Party Properties, Contamination, the performance of a  Remedial Action and the operations and business activities of the Credit Parties which pursuant to  Environmental Laws, Environmental Permits or at the request or direction of an Official Body either must  be submitted to an Official Body or otherwise must be maintained.  “Environmental Violation” shall mean any activity, omission, occurrence or condition that violates  or threatens (if the threat requires remediation under any Environmental Law and is not remediated during  any grace period allowed under such Environmental Law) to violate or results in or threatens (if the threat  requires remediation under any Environmental Law and is not remediated during any grace period allowed  under such Environmental Law) to result in noncompliance with any Environmental Law.  “Environmentally Sensitive Area” shall mean (a) any wetland as defined by or designated by  Applicable Laws, including applicable Environmental Laws; (b) any area designated as a coastal zone  pursuant to Applicable Laws, including Environmental Laws; (c) any area of historic or archeological  significance or scenic area as defined or designated by Applicable Laws, including Environmental Laws;  (d) habitats of endangered species or threatened species as designated by Applicable Laws, including  Environmental Laws; (e) wilderness or refuge areas as defined or designated by Applicable Laws, including  Environmental Laws; or (f) a floodplain or other flood hazard area as defined pursuant to any Applicable  Laws.  “Equipment” shall mean equipment, apparatus, furnishings, fittings and personal property of every  kind and nature whatsoever that is purchased, leased or otherwise acquired using the proceeds of the Lessor  Advances, together with all replacements, modifications, alterations, attachments and additions thereto.  “Equipment Schedule” shall mean each Equipment Schedule attached to the applicable Requisition.  “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as the same may be  amended or supplemented from time to time, and any successor statute of similar import, and the rules and  regulations thereunder, as from time to time in effect.  “ERISA Affiliate” shall mean any trade or business (whether or not incorporated) under common  control with the Lessee within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and  (o) of the Code for purposes of provisions relating to Section 412 of the Code).  “ERISA Event” shall mean (a) a reportable event as defined in Section 4043(b) of ERISA and the  regulations issued thereunder, with respect to a Pension Plan, as to which PBGC has not by regulation  waived the requirements of Section 4043(a) of ERISA that it be notified within 30 days of the occurrence  of such event (provided that a failure to meet the minimum funding standard of Section 412 of the Code or  Section 302 of ERISA shall be a reportable event regardless of the issuance of any waivers in accordance  with Section 412(c) of the Code); (b) the filing under Section 4041 of ERISA of a notice of intent to  terminate any Pension Plan or the termination of any Plan; (c) the institution by PBGC of proceedings under  Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension  

 

APPENDIX A-17  CHAR1\1917164v13 Plan, or the receipt by any Guarantor or any ERISA Affiliate of notice from a Multiemployer Plan that such  action has been taken by PBGC with respect to such Multiemployer Plan; (d) the complete or partial  withdrawal by any Guarantor or any ERISA Affiliate under Section 4201 or 4204 of ERISA from a  Multiemployer Plan, or the receipt by any Guarantor or any ERISA Affiliate of notice from a Multiemployer  Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA or that it intends  to terminate or has terminated under Section 4041A or ERISA; and (e) the institution of a proceeding by a  fiduciary of any Multiemployer Plan against any Guarantor or any ERISA Affiliate to enforce Section 515  of ERISA which proceeding is not dismissed within thirty (30) days.  “ERISA Group” shall mean, at any time, each Identified Big Lots Entity and all members of a  controlled group of corporations and all trades or businesses (whether or not incorporated) under common  control and all other entities which, together with any Identified Big Lots Entity, are treated as a single  employer under Section 414 of the Code or Section 4001(b)(1) of ERISA; provided, however, that the  ERISA Group shall only include those entities that regularly employ individuals to perform services within  the United States.  “Erroneous Payment” shall have the meaning given to such term in Section 12.23(a) of the  Participation Agreement.  “Erroneous Payment Deficiency Assignment” shall have the meaning given to such term in Section  12.23(d) of the Participation Agreement.  “Erroneous Payment Impacted Class” shall have the meaning given to such term in Section  12.23(d) of the Participation Agreement.  “Erroneous Payment Return Deficiency” shall have the meaning given to such term in Section  12.23(d) of the Participation Agreement.  “Erroneous Payment Subrogation Rights” shall have the meaning given to such term in Section  12.23(e) of the Participation Agreement.  “EU Bail-In Legislation Schedule” shall mean the EU Bail-In Legislation Schedule published by  the Loan Market Association (or any successor person), as in effect from time to time.  “Event of Default” shall mean a Lease Event of Default or an Agency Agreement Event of Default.  “Excepted Payments” shall mean, regarding each Lessor Party:  (a) all indemnity payments (including indemnity payments made pursuant to  Section 11 of the Participation Agreement) to which any Lessor Party or any of its Affiliates,  successors, assigns, shareholders, members, managers, partners, agents, officers, directors or  employees is entitled;  (b) any amounts (other than Basic Rent or Termination Value) payable under any  Operative Agreement to reimburse any Lessor Party or any of its respective Affiliates (including  the reasonable expenses of any Lessor Party incurred in connection with any such payment) for  performing or complying with any of the obligations of any Credit Party under and as permitted by  any Operative Agreement;  (c) any amount payable to any Lessor Party by any transferee as the purchase price of  any Lessor Party’s Lessor Party Interest (or a portion thereof);  

 

APPENDIX A-18  CHAR1\1917164v13 (d) any insurance proceeds (or payments with respect to risks self-insured or policy  deductibles) under liability policies in favor of any Lessor Party;  (e) any insurance proceeds under policies maintained by any Lessor Party;  (f) Transaction Expenses or other amounts, fees, disbursements or expenses paid or  payable to or for the benefit of any Lessor Party;  (g) any payments in respect of interest to the extent attributable to payments referred  to in clauses (a) through (f) above;  (h) any rights of any Lessor Party to demand, collect, sue for or otherwise receive and  enforce payment of any of the foregoing amounts, provided that such rights shall not include the  right to terminate the Lease; and  (i) any payments to any Lessor Party regarding any Overfunded Amount.  “Excess Proceeds” shall mean the excess, if any, of the aggregate of all awards, compensation,  insurance proceeds or condemnation proceeds payable in connection with a Casualty or Condemnation over  the Termination Value paid by the Lessee pursuant to the Lease with respect to such Casualty or  Condemnation.  “Excess Yield” shall have the meaning given to such term in Section 5A.10 of the Participation  Agreement.  “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, together with the  rules and regulations promulgated thereunder.  “Excluded Active Subsidiaries” shall mean collectively the following Subsidiaries of any Credit  Party: (a) any Captive Insurance Entity, (b) any Qualified Community Development Entity and any  Subsidiary of a Qualified Community Development Entity, and (c) the Subsidiaries of the Parent listed on  Schedule XII; each of which is referred to individually as an “Excluded Active Subsidiary”.  Any Excluded  Active Subsidiary that joins the Participation Agreement as a Guarantor pursuant to Section 6B.9 of the  Participation Agreement shall cease to be an Excluded Active Subsidiary.  “Excluded Equipment” shall mean equipment, apparatus, furnishings, fittings and personal  property of every kind and nature whatsoever that is not Equipment.  “Excluded Inactive Subsidiaries” shall mean collectively the Subsidiaries of the Parent listed on  Schedule XIII, each of which is referred to herein individually as an Excluded Inactive Subsidiary.  Any  Excluded Inactive Subsidiary which joins the Participation Agreement as a Guarantor pursuant to  Section 6B.9 of the Participation Agreement shall cease to be an Excluded Inactive Subsidiary.  “Exculpated Persons” shall mean the Lessor Parties (except with respect to the representations and  warranties and the other obligations of the Lessor Parties pursuant to the Operative Agreements expressly  undertaken in their respective individual capacities, including the representations and warranties of the  Lessor Parties pursuant to Section 6.2 of the Participation Agreement and the obligations of the Lessor  Parties under Section 8.2 of the Participation Agreement) and their respective Affiliates, successors,  assigns, shareholders, members, managers, partners, agents, officers, directors or employees.  

 

APPENDIX A-19  CHAR1\1917164v13 “Exempt Payments” shall have the meaning given to such term in Section 11.2(e) of the  Participation Agreement.  “Expiration Date” shall mean the last day of the Term; provided, in no event shall the Expiration  Date be later than June 1, 2023.  “Facility Termination Date” shall mean the Expiration Date or such later date as the Lessor Parties  shall notify the Lessee and the Agent of in writing.  “Fair Market Sales Value” shall mean, the amount, which in any event, shall not be less than  zero (0), that would be paid in cash in an arms-length transaction between an informed and willing  purchaser and an informed and willing seller, neither of whom is under any compulsion to purchase or sell,  respectively, the Property.  Fair Market Sales Value of the Property shall be determined based on the  assumption that, except for purposes of Section 17 of the Lease, the Property is in the condition and state  of repair required under Section 10.1 of the Lease and each Credit Party is in compliance with the other  requirements of the Operative Agreements.  “FATCA” shall mean Section 1471 through 1474 of the Code, as of the date of the Participation  Agreement (or any amended or successor version that is substantively comparable and not materially more  onerous to comply with), any current or future regulations or official interpretations thereof and any  agreement entered into pursuant to Section 1471(b) of the Code, and any fiscal or regulatory legislation,  rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among  Official Bodies and implementing such Sections of the Code.  “Federal Funds Effective Rate” shall mean the Federal Funds Rate.  “Federal Funds Rate” shall mean, for any period, a fluctuating interest rate per annum equal for  each day during such period to the weighted average of the overnight federal funds rates as in Federal  Reserve Board Statistical Release H.15(519) or any successor or substitute publication selected by the  Agent (or, if such day is not a Business Day, for the next preceding Business Day), or, if, for any reason,  such rate is not available on any day, the rate determined, in the good faith opinion of the Agent, to be the  rate at which overnight federal funds are being offered in the national federal funds market at 9:00 a.m.  Charlotte, North Carolina time, absent demonstrable error; provided, notwithstanding the foregoing, if such  interest rate determined as provided above would be less than 0.0% per annum for any applicable time  period, then such interest rate for such time period shall be deemed to be 0.0% per annum.  “Fees” shall mean the Lessor Parties Unused Fee, the Lessor Parties Upfront Fee, the  Administrative Agency Fee, the Structuring Fee and any and all additional fees referenced pursuant to the  Engagement Letter.  “Financial Projections” shall have the meaning given to such term in Section 6.1(i)(ii) of the  Participation Agreement.  “Financing Parties” shall mean the Lessor Parties and the Agent.  “Fiscal Quarter” shall mean any quarter of a Fiscal Year.  “Fiscal Year” shall mean any period of twelve consecutive calendar months ending on  December 31; references to a Fiscal Year with a number corresponding to any calendar year (e.g., the “2004  Fiscal Year”) refer to the Fiscal Year ending on December 31st of such calendar year.  

 

APPENDIX A-20  CHAR1\1917164v13 “Fitch” shall mean Fitch Ratings, Inc., a subsidiary of the Fitch Group, Inc.  “Fixtures” shall mean all fixtures relating to the Improvements, including all components thereof,  located in or on the Improvements, together with all replacements, modifications, alterations and additions  thereto.  “Force Majeure Event” shall mean, with respect to construction in connection with the Construction  Period Property, any event (the existence of which at the construction commencement date was not known,  or would not reasonably have been expected to be discovered through the exercise of commercially  reasonable due diligence, by any Construction Agency Person, taking into account the contemplated use of  the Land and the Improvements) beyond the control of any such Person, including general strikes (but not  any strike or other job action involving employees of any Construction Agency Person), acts of God,  government activities directly interfering with the work of construction of the Improvements, any general  inability to obtain labor or materials, civil commotion and enemy action; but excluding in all cases any  event, cause or condition that results from a breach by any Construction Agency Person of its obligations,  representations or warranties under the Operative Agreements or any other agreements to which it is a party,  from any Construction Agency Person’s financial condition or failure to pay or any event, cause or  condition which could have been avoided or which could be remedied or mitigated through the exercise of  commercially reasonable efforts or the commercially reasonable expenditure of funds or other  commercially reasonably action, election or arrangement which would correct or resolve the impact of such  event on the construction.  “Force Majeure Loss” shall mean the actual construction costs, determined by the applicable  insurance company in assessing a claim for such costs under any policy of insurance, or if such loss is not  fully insured in whole or in part under any policy of insurance, then as determined by a nationally  recognized independent appraiser selected by the Agent, expended to repair and restore damage caused by  a Force Majeure Event with respect to the Property (or portion thereof) to the condition of the Property  immediately prior to such Force Majeure Event (but excluding all capitalized costs and other collateral  costs and carrying costs whenever accrued).  “Foreign Subsidiary” shall mean a Subsidiary that is not organized under the laws of any political  subdivision of the United States.  “Fourth Amendment” shall mean the Fourth Amendment to Certain Operative Agreements dated  as of September 21, 2022 by and among the Lessee, the parties referenced on the signature pages thereof  as guarantors, the Lessor Parties and the Agent.  “Fourth Amendment Closing Date” shall mean the date as of which all conditions precedent set  forth in the Fourth Amendment are satisfied and the Fourth Amendment is effective.  “Full Recourse Event of Default” shall mean (a) an Agency Agreement Event of Default arising in  whole or in part as a consequence of any fraudulent act or omission of any Construction Agency Person in  connection with the negotiation, execution, delivery, consummation and/or performance of any Operative  Agreement or any other contractual agreement relating to the Property or the construction or work thereon;  (b) an Agency Agreement Event of Default arising in whole or in part as a consequence of the  misapplication of any Lessor Advance or any portion thereof or any other funds made available to, or on  behalf of, the Construction Agent or any other Construction Agency Person under any Operative  Agreement; (c) an Agency Agreement Event of Default arising in whole or in part as a consequence of an  Insolvency Event; (d) an occurrence pursuant to which any Construction Agency Person shall willfully  breach any of its respective obligations, covenants, representations or warranties under any Operative  Agreement, Construction Document or any other contractual agreement or otherwise regarding any law  

 

APPENDIX A-21  CHAR1\1917164v13 relating to the Property or the construction or work thereon; (e) an occurrence pursuant to which any  Construction Agency Person shall commit any illegal act regarding the Property; or (f) an occurrence  pursuant to which any Construction Agency Person, through its actions or failure to act, shall cause any  loss, cost or damage to any Financing Party with respect to the Property or matters related to the Operative  Agreements, excluding (for purposes of this subclause (f) only) indemnity claims solely arising from failure  to achieve (or to timely achieve) Completion.  “GAAP” shall mean generally accepted accounting principles set forth in the opinions and  pronouncements of the accounting principles board of the American Institute of Certified Public  Accountants, and statements and pronouncements of the Financial Accounting Standards Board or in such  other statements by such other entity as may be approved by a significant segment of the accounting  profession, that are applicable to the circumstances as of the date of determination.  “GAAP Project Cost” shall mean the Property Cost less any Uninsured Force Majeure Loss  attributable to the Property.  “Governmental Action” shall mean all permits, authorizations, registrations, consents, approvals,  waivers, exceptions, variances, orders, judgments, written interpretations, decrees, licenses, exemptions,  publications, filings, notices to and declarations of or with, or required by, any Governmental Authority, or  required by any Legal Requirement, and shall include, without limitation, all environmental and operating  permits and licenses that are required for the full use, occupancy, zoning and operating of the Property.  “Governmental Authority” shall mean the government of the United States or any other nation, or  of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality,  regulatory body, court, central bank or other entity exercising executive, legislative, judicial, Taxing,  regulatory or administrative powers or functions of or pertaining to government (including the Financial  Conduct Authority, the Prudential Regulation Authority and any supra-national bodies such as the European  Union or the European Central Bank).  “Guarantor” shall mean, collectively, each Person executing the Participation Agreement as of the  Initial Closing Date or otherwise executing a Guaranty Joinder from time to time after the Initial Closing  Date, in each case, to evidence the guarantee of the Obligations.  “Guarantor Joinder” shall mean each Guarantor Joinder and Assumption Agreement executed by a  newly added Guarantor pursuant to the provisions of Sections 6B.9 and 8.3B(h) of the Participation  Agreement, in the form of EXHIBIT H to the Participation Agreement or in such other form as is  satisfactory to the Agent, in its reasonable discretion.  “Guaranty” of any Person shall mean any obligation of such Person guaranteeing or in effect  guaranteeing any liability or obligation of any other Person in any manner, whether directly or indirectly,  including any agreement to indemnify or hold harmless any other Person, any performance bond or other  suretyship arrangement and any other form of assurance against loss, except endorsement of negotiable or  other instruments for deposit or collection in the ordinary course of business.  “H.15” shall mean Federal Reserve Statistical Release H.15.  “Hard Costs” shall mean all costs and expenses payable for supplies, materials, labor and profit  with respect to the Improvements under any Construction Contract.  “Hazardous Substance” shall mean any of the following:  (a) any petroleum or petroleum product,  explosives, radioactive materials, asbestos, formaldehyde, polychlorinated biphenyls, lead and radon gas;  

 

APPENDIX A-22  CHAR1\1917164v13 (b) any substance, material, product, derivative, compound or mixture, mineral, chemical, waste, gas,  medical waste, or pollutant, in each case whether naturally occurring, man-made or the by-product of any  process, that is toxic, harmful or hazardous to the environment or health or safety of human beings; or  (c) any substance, material, product, derivative, compound or mixture, mineral, chemical, waste, gas,  medical waste or pollutant that would support the assertion of any claim under any Environmental Law or  is the subject of regulatory action by any Governmental Authority under any Environmental Law, whether  or not defined as hazardous as such under any Environmental Law.  “Hedge Agreement Termination Value” shall mean, as to any one or more Hedge Agreements, after  taking into account the effect of any legally enforceable netting agreement relating to such Hedge  Agreements, (a) for any date on or after the date such Hedge Agreements have been closed out and  termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date  prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such  Hedge Agreements, as determined based upon one or more mid-market or other readily available quotations  provided by any recognized dealer in such Hedge Agreements (which may include an ABL Credit  Agreement Bank or any Affiliate of an ABL Credit Agreement Bank).  “Hedge Agreements” shall mean (a) any and all rate swap transactions, basis swaps, credit  derivative transactions, forward rate transactions, commodity swaps, commodity options, forward  commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or  options or forward bond or forward bond price or forward bond index transactions, interest rate options,  forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency  swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other  similar transactions or any combination of any of the foregoing (including any options to enter into any of  the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and  (b) any and all transactions of any kind, and the related confirmations, that are subject to the terms and  conditions of, or governed by, any form of master agreement published by the International Swaps and  Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master  agreement (any such master agreement, together with any related schedules, a “Master Agreement”),  including any such obligations or liabilities under any Master Agreement , in each case, entered into by the  Parent or any of its Subsidiaries in the ordinary course of business and not for speculative purposes.  “Historical Statements” shall have the meaning given to such term in Section 6.1(i)(i) of the  Participation Agreement.  “Holdback Amount” shall mean the “Holdback Amount” (as defined in the Purchase Agreement)  up to, but not to exceed, an amount equal to $650,000.  “Identified Big Lots Entities” shall mean BLS, the Parent and the other ABL Credit Agreement  Loan Parties.  “Impositions” shall mean any and all liabilities, losses, expenses, costs, charges and Liens of any  kind whatsoever for fees, taxes, levies, imposts, duties, charges, assessments or withholdings (“Taxes”)  including but not limited to (i) real and personal property taxes, including personal property taxes on any  property covered by the Lease that is classified by Governmental Authorities as personal property, and real  estate or ad valorem taxes in the nature of property taxes; (ii) sales taxes, use taxes and other similar taxes  (including rent taxes and intangibles taxes); (iii) excise taxes; (iv) real estate transfer taxes, conveyance  taxes, stamp taxes and documentary recording taxes and fees; (v) taxes that are or are in the nature of  franchise, income, value added, privilege and doing business taxes, license and registration fees;  (vi) assessments on the Property, including all assessments for public Improvements or benefits, whether  or not such improvements are commenced or completed within the Term; and (vii) taxes, Liens,  

 

APPENDIX A-23  CHAR1\1917164v13 assessments or charges asserted, imposed or assessed by the PBGC or any Governmental Authority  succeeding to or performing functions similar to the PBGC; and (viii) in each case all interest, additions to  tax and penalties thereon, which at any time prior to, during or with respect to the Term or in respect of any  period for which the Lessee shall be obligated to pay Supplemental Rent, may be levied, assessed or  imposed by any Governmental Authority upon or with respect to (a) the Property or any part thereof or  interest therein; (b) the leasing, financing, refinancing, demolition, construction, substitution, subleasing,  assignment, control, condition, occupancy, servicing, maintenance, repair, ownership, possession, activity  conducted on, delivery, insuring, use, operation, improvement, sale, transfer of title, return or other  disposition of the Property or any part thereof or interest therein; (c) indebtedness with respect to the  Property, or the Lessor Advances, or any part thereof or interest therein; (d) the rentals, receipts or earnings  arising from the Property or any part thereof or interest therein; (e) the Operative Agreements, the  performance thereof, or any payment made or accrued pursuant thereto; (f) the income or other proceeds  received with respect to the Property or any part thereof or interest therein upon the sale or disposition  thereof; (g) any contract (including the Agency Agreement) relating to the construction, acquisition or  delivery of the Improvements or any part thereof or interest therein; (h) the obtaining of Lessor Advances;  (i) the Lessor or the Trust Property; or (j) otherwise in connection with the transactions contemplated by  the Operative Agreements.  “Improvements” shall mean, with respect to any Land, all buildings, structures, Fixtures, and other  improvements of every kind existing at any time and from time to time on or under the Land purchased or  otherwise acquired using the proceeds of the Lessor Advances, together with any and all appurtenances to  such buildings, structures, Fixtures or improvements, including sidewalks, utility pipes, conduits and lines,  parking areas and roadways, and including all Modifications and other additions to or changes in the  Improvements at any time, including (a) any Improvements existing as of the Property Closing Date as such  Improvements may be referenced on the applicable Requisition and (b) any Improvements made subsequent  to the Property Closing Date.  “Indebtedness” shall mean, as to any Person at any time, without duplication, any and all  indebtedness, obligations or liabilities (whether matured or unmatured, liquidated or unliquidated, direct or  indirect, absolute or contingent, or joint or several) of such Person for or in respect of:  (a) borrowed money,  (b) amounts raised under or liabilities in respect of any note purchase or acceptance credit facility, (c) (i)  reimbursement obligations (contingent or otherwise) under any letter of credit or (ii) net obligations under  any Hedge Agreement, (d) any other transaction (including forward sale or purchase agreements and  conditional sales agreements) having the commercial effect of a borrowing of money entered into by such  Person to finance its operations or capital requirements (but not including trade payables and accrued  expenses incurred in the ordinary course of business), (e) Attributable Indebtedness of such Person in  respect of Capital Leases and Synthetic Lease Obligations, or (f) any Guaranty of Indebtedness for  borrowed money.  For purposes of the Operative Agreements, the amount of any net obligation under any  Hedge Agreement on any date shall be deemed to be the Hedge Agreement Termination Value thereof as  of such date.  “Indemnified Person” shall mean without duplication each Financing Party and their respective  successors, assigns, directors, shareholders, members, managers, partners, officers, employees, agents and  Affiliates.  “Indemnity Provider” shall mean the Lessee.  “Initial Closing Date” shall mean November 30, 2017.  “Initial Closing Date Advance” shall have the meaning given to such term in Section 5.3 of the  Participation Agreement.  

 

APPENDIX A-24  CHAR1\1917164v13 “Insolvency Event” shall mean one or more of (a) the liquidation or dissolution of the Construction  Agent or the Lessee, or the suspension of the business of the Construction Agent or the Lessee, or the filing  by the Construction Agent or the Lessee of a voluntary petition or an answer seeking reorganization,  arrangement, readjustment of its debts or for any other relief under the Bankruptcy Code or under any other  insolvency act or law, state or federal, now or hereafter existing, or any other action of the Construction  Agent or the Lessee indicating its consent to, approval of or acquiescence in, any such petition or  proceeding; the application by the Construction Agent or the Lessee for, or the appointment by, consent to  or acquiescence of the Construction Agent or the Lessee regarding a receiver, a trustee or a custodian of  the Construction Agent or the Lessee for all or a substantial part of its property; the making by the  Construction Agent or the Lessee of any assignment for the benefit of creditors; the inability of the  Construction Agent or the Lessee, or the admission by the Construction Agent or the Lessee in writing of  its inability, to pay its debts as they mature; or the Construction Agent or the Lessee taking any corporate  action to authorize any of the foregoing; (b) the filing of an involuntary petition against the Construction  Agent or the Lessee in bankruptcy or seeking reorganization, arrangement, readjustment of its debts or for  any other relief under the Bankruptcy Code, as amended, or under any other insolvency act or law, state or  federal, now or hereafter existing; or the involuntary appointment of a receiver, a trustee or a custodian of  the Construction Agent or the Lessee for all or a substantial part of its property; or the issuance of a warrant  of attachment, execution or similar process against any substantial part of the property of the Construction  Agent or the Lessee, and the continuance of any of such events for ninety (90) days undismissed or  undischarged; (c) the adjudication of the Construction Agent or the Lessee as bankrupt or insolvent or the  occurrence of a Deemed Insolvency with respect to the Construction Agent or the Lessee; (d) the entering  of any order in any proceedings against the Construction Agent or the Lessee or any Subsidiary of the  foregoing decreeing the dissolution, divestiture or split-up of the Construction Agent or the Lessee or any  Subsidiary of the Construction Agent or the Lessee, and such order remains in effect for more than  sixty (60) days; (e) the occurrence of any Agency Agreement Event of Default under Section 5.1(c) of the  Agency Agreement, to the extent such Agency Agreement Event of Default is attributable to a Lease Event  of Default under Section 17.1(n) or (o) of the Lease; or (f) the occurrence of any Lease Event of Default  under Section 17.1(n) or (o) of the Lease.  “Insurance Requirements” shall mean all terms and conditions of any insurance policy required by  the Lease to be maintained by the Lessee or required by the Agency Agreement to be maintained by the  Construction Agent, all requirements of the issuer of any such policy and from and after the Completion  Date, regarding self-insurance, any other insurance requirements of the Lessee.  “Intercompany Subordination Agreement” shall mean a Subordination Agreement among the  Credit Parties in the form attached to the Participation Agreement as EXHIBIT K.  “Investment Company Act” shall mean the Investment Company Act of 1940, as amended, together  with the rules and regulations promulgated thereunder.  “IRS” shall mean the United States Internal Revenue Service.  “Labor Contracts” shall mean all employment agreements, employment contracts, collective  bargaining agreements and other similar agreements guaranteeing a right of employment among any Credit  Party and its employees.  “Land” shall mean a parcel of real property described on (a) the Requisition issued by the  Construction Agent or the Lessee on the Property Closing Date and (b) Exhibit A to the Lease.  “Land Cost” shall have the meaning given to such term in Section 5.4 of the Agency Agreement.  

 

APPENDIX A-25  CHAR1\1917164v13 “Law” shall mean any law (including common law), constitution, statute, treaty, regulation, rule,  ordinance, opinion, release, ruling, order, injunction, writ, decree, bond, judgment, authorization or  approval, Lien or award of or settlement agreement with any Official Body.  “Lease” or “Lease Agreement” shall mean the Real Property Lease Agreement dated on or about  the Initial Closing Date, between the Lessor and the Lessee.  “Lease Default” shall mean any event or condition which, with the lapse of time or the giving of  notice, or both, would constitute a Lease Event of Default.  “Lease Event of Default” shall have the meaning given to such term in Section 17.1 of the Lease.  “Lease Participant” shall mean each bank or other financial institution which is from time to time  party to any of the Operative Agreements in its capacity as a “Lease Participant”.  “Legal Requirements” shall mean all foreign, federal, state, county, municipal and other  governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions  affecting any Lessor Party, any Credit Party, the Agent or the Property, Land, Improvements, Equipment  or the taxation, demolition, construction, use or alteration of such Improvements, whether now or hereafter  enacted and in force, including any that require repairs, modifications or alterations in or to the Property or  in any way limit the use and enjoyment thereof (including all building, zoning and fire codes and the  Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et. seq., and any other similar federal, state or  local laws or ordinances and the regulations promulgated thereunder) and any that may relate to  environmental requirements (including all Environmental Laws), and all permits, certificates of occupancy,  licenses, authorizations and regulations relating thereto, and all covenants, agreements, restrictions and  encumbrances contained in any instruments which are either of record or known to any Credit Party  affecting the Property or the Appurtenant Rights.  “Lessee” shall have the meaning given to such term in the Lease, and shall include any successor,  transferee or assignee permitted pursuant to Section 10.1 of the Participation Agreement.  “Lessor” shall mean Wachovia Service Corporation, a Delaware corporation.  “Lessor Advance” shall mean, as the context may require,  (a) any single advance made by any Lessor Party pursuant to the terms of the  Operative Agreements or  (b) the aggregate amount of all advances made by the Lessor Parties pursuant to the  terms of the Operative Agreements as reduced from time to time by any repayment or prepayment  of such advances pursuant to Section 5A.4 of the Participation Agreement or otherwise in  accordance with the Operative Agreements.  “Lessor Assignment Agreement” shall mean the Assignment and Assumption Agreement dated on  or about the Initial Closing Date, among the Lessor, the various banks and other lending institutions which  are parties thereto as assignees, the Agent and the Lessee.  “Lessor Confirmation Letter” shall mean the confirmation letter issued by the Lessor from time to  time to the Lessee pursuant to Section 8.2(d) of the Participation Agreement, in a form substantially similar  to the form of confirmation letter provided to the Lessee on or prior to the Initial Closing Date.  

 

APPENDIX A-26  CHAR1\1917164v13 “Lessor Lien” shall mean any Lien, lease or disposition of title in respect of the Property or any  other Collateral arising as a result of (a) any claim against any Lessor Party or any Affiliate of any Lessor  Party not resulting from the transactions contemplated by the Operative Agreements, (b) any act or  omission of any Lessor Party or any Affiliate of any Lessor Party which is not required by the Operative  Agreements or is in violation of any of the terms of the Operative Agreements, (c) any claim against any  Lessor Party or any Affiliate of any Lessor Party with respect to Taxes or Transaction Expenses against  which the Lessee is not required to indemnify the applicable Lessor Party or its Affiliate pursuant to  Section 11 of the Participation Agreement or otherwise to pay pursuant to the Operative Agreements or  (d) any claim against any Lessor Party or any Affiliate of any Lessor Party arising out of any transfer by  the applicable Lessor Party of all or any portion of the interest of such Lessor Party in the Property or the  Operative Agreements other than the transfer of title to or possession of the Property by such Lessor Party  pursuant to and in accordance with the Operative Agreements, including pursuant to the exercise of the  remedies set forth in Article XVII of the Lease.  “Lessor Parties” shall mean the Lessor and the Lease Participants.  “Lessor Parties Commitment” shall mean the pro rata Lessor Parties Commitment of the Lessor  and the Lease Participants as set forth in Schedule I to the Participation Agreement as such Schedule I may  be amended or replaced from time to time.  “Lessor Parties Interest” shall mean, regarding each Lessor Party, its respective (a) Lessor Parties  Commitment and (b) Lessor Parties Ownership Interest.  “Lessor Parties Ownership Interest” shall mean, concurrent with the effectiveness of the Lessor  Assignment Agreement, and with regard to each of the Lessor Parties, an undivided, pari passu ownership  interest for the applicable Lessor Party (for each such Lessor Party, in an amount equal to its Percentage  Share) in (a) all rights to payments required to be made by any Credit Party under the Operative Agreements  (including, as applicable, the Construction Period Guarantee Amount, the Deficiency Balance, the  Maximum Residual Guarantee Amount and Rent), (b) proceeds from (i) insurance that the Lessee is  required to maintain pursuant to the Operative Agreements and (ii) condemnation proceedings regarding  the Property, (c) any other proceeds from the sale or other disposition of the Property or any interest therein  and (d) any other amounts payable pursuant to the Operative Agreements regarding the Property or any  interest therein or the right, title and interest of the Lessor in the Property (but limited in each case regarding  the foregoing subsections (a) – (d), to the amounts which would otherwise be payable to or for the benefit  of the Lessor for its own account if the Lessor Assignment Agreement were not in effect and excluding in  all cases regarding the foregoing subsections (a) – (d), the Excepted Payments which Excepted Payments  shall be in favor exclusively of the applicable Lessor Party and/or its related parties).  “Lessor Parties Unused Fee” shall have the meaning given to such term in Section 7.4 of the  Participation Agreement.  “Lessor Parties Upfront Fee” shall have the meaning given to such term in Section 7.5 of the  Participation Agreement.  “Lessor Yield” shall mean with respect to Lessor Advances a per annum rate equal to (subject to  Section 5A.11) the Adjusted Term SOFR Rate plus the Applicable Percentage, the ABR plus the Applicable  Percentage or a combination thereof as determined pursuant to Section 5A.5 of the Participation Agreement.  “Lessor Yield Determination Date” shall mean the date that is two (2) U.S. Government Securities  Business Days prior to the first day of the applicable Lessor Yield Period.  

 

APPENDIX A-27  CHAR1\1917164v13 “Lessor Yield Period” shall mean as to any SOFR Lessor Advance, each period commencing on  the last day of the next preceding Lessor Yield Period applicable to such SOFR Lessor Advance and ending  one (1) month thereafter; provided, however, that all of the foregoing provisions relating to Lessor Yield  Periods are subject to the following:  (A) if any Lessor Yield Period would end on a day which is not a  Business Day, such Lessor Yield Period shall be extended to the next succeeding Business Day (except that  where the next succeeding Business Day falls in the next succeeding calendar month, then on the next  preceding Business Day), (B) no Lessor Yield Period shall extend beyond the Expiration Date, (C) where  a Lessor Yield Period begins on a day for which there is no numerically corresponding day in the calendar  month in which the Lessor Yield Period is to end, such Lessor Yield Period shall end on the last Business  Day of such calendar month and (D) there shall not be more than one (1) Lessor Yield Period outstanding  at any one (1) time, respectively, for SOFR Lessor Advances.  “Lien” shall mean any mortgage, pledge, security interest, encumbrance, lien, option, attachment,  levy, encroachment, title defect or charge of any kind.  “Limited Recourse Amount” shall mean in the case of the Lease regarding the Property, an amount  equal to the Termination Value less the Maximum Residual Guarantee Amount.  “Limited Recourse Event of Default” shall have the meaning given to such term in Section 17.12  of the Lease.  “LLC Interests” shall have the meaning given to such term in Section 6.1(c) of the Participation  Agreement.  “Majority Secured Parties” shall mean at any time the Lessor Parties (other than any Defaulting  Lessor Party) whose Lessor Advances outstanding represent at least fifty-one percent (51%) of (a) the  aggregate Lessor Advances outstanding or (b) to the extent there are no Lessor Advances outstanding, the  aggregate Lessor Parties Commitment.  “Marketing Period” shall mean, if the Lessee has given a Sale Notice in accordance with  Section 20.1 of the Lease, the period commencing on the date such Sale Notice is given and ending on the  Expiration Date.  “Material Adverse Effect” shall mean any set of circumstances or events which:  (a) has or could  reasonably be expected to have any material adverse effect upon the validity or enforceability of the  Participation Agreement or any other Operative Agreement; (b) is or could reasonably be expected to be  material and adverse to the business, operations, properties, assets, or financial condition of the Credit  Parties taken as a whole; (c) impairs materially or could reasonably be expected to impair materially the  ability of the Credit Parties taken as a whole to duly and punctually pay or perform their Indebtedness or  any of their respective obligations under the Operative Agreements; (d) impairs materially or could  reasonably be expected to impair materially the ability of the ABL Credit Agreement Administrative Agent,  any of the ABL Credit Agreement Banks or any of the Financing Parties, to the extent permitted, to enforce  their legal remedies pursuant to the ABL Credit Agreement Loan Documents (in the case of the ABL Credit  Agreement Administrative Agent or any of the ABL Credit Agreement Banks) or pursuant to the  Participation Agreement or any other Operative Agreement (in the case of any of the Financing Parties);  (e) impairs materially or could reasonably be expected to impair materially the validity, priority or  enforceability of any Lien on the Property created by any of the Operative Agreements; or (f) impairs  materially or could reasonably be expected to impair materially the value, utility or useful life of the  Property, which has caused or could reasonably be expected to cause a diminution of the fair market value  of the Property of ten percent (10%) or more from the then-current fair market value of the Property, or the  use, or ability of the Lessee to use, the Property for the purpose for which it was intended. 

 

APPENDIX A-28  CHAR1\1917164v13 “Maturity Date” shall mean the Expiration Date.  “Maximum Residual Guarantee Amount” shall mean (a) from the Initial Closing Date to and  including December 31, 2018, an amount equal to the product of the GAAP Project Cost for the Property  times eighty-seven percent (87.0%) and (b) from and including January 1, 2019 and thereafter, an amount  as reasonably determined by the Majority Secured Parties and the Lessee in accordance with Accounting  Standards Codification No. 842. “Modifications” shall have the meaning given to such term in Section 11.1 of the Lease.  “Monthly Notice Date” shall mean the tenth (10th) day of each calendar month unless such is not  a Business Day and in such case on the next preceding Business Day.  “Moody’s” shall mean Moody’s Investors Services, Inc., and any successor thereto.  “Mortgage Instrument” shall mean any mortgage, deed of trust or any other instrument executed  by the Lessee (or regarding any Land, the applicable Affiliate of the Lessee) in favor of the Trustee  thereunder, for the benefit of the Agent (for the benefit of the Secured Parties) and evidencing a Lien on  the Lessee’s interest in the Property, in form and substance reasonably acceptable to the Agent.  “Multiemployer Plan” shall mean any employee benefit plan which is a “multiemployer plan”  within the meaning of Section 4001(a)(3) of ERISA and to which any Identified Big Lots Entity or any  other member of the ERISA Group is then making or accruing an obligation to make contributions or,  within the preceding five Plan years, has made or had an obligation to make such contributions.  “Multiple Employer Plan” shall mean a Plan which has two or more contributing sponsors  (including any Credit Party or any other member of the ERISA Group) at least two of whom are not under  common control, as such a plan is described in Sections 4063 and 4064 of ERISA.  “Non-Consenting Lessor Party” shall mean any Lessor Party that does not approve any proposed  termination, amendment, supplement, waiver, modification or consent with respect to any Operative  Agreement that (a) requires the approval of all Lessor Parties, or all affected Lessor Parties, in accordance  with the terms of Section 12.4 of the Participation Agreement and (b) has been approved by the Majority  Lessor Parties.  “Non-Defaulting Lessor Party” shall mean, at any time, each Lessor Party that is not a Defaulting  Lessor Party at such time.  “Non-U.S. Person” shall mean a Person that is not a U.S. Person.  “Obligations” shall mean the collective reference to all obligations (including without limitation all  payment and performance obligations), now existing or hereafter arising, owing by the Lessee and/or the  Construction Agent, as applicable, to one or more Secured Parties under or pursuant to the Operative  Agreements, whether direct or indirect, absolute or contingent, due or to become due, now existing or  hereafter incurred, which may arise under, out of, or in connection with the Participation Agreement, the  Lessor Assignment Agreement, the Lease, the Agency Agreement or any of the other Operative  Agreements, whether on account of advanced amounts, yield, reimbursement obligations, fees, indemnities,  costs, expenses, termination payments or otherwise (including without limitation all fees and disbursements  of counsel to any of the Secured Parties) that are required to be paid by the Lessee and/or the Construction  Agent, as applicable, pursuant to the terms of the Operative Agreements for any purpose, including without  

 

APPENDIX A-29  CHAR1\1917164v13 limitation in connection with the exercise of remedies.  Obligations shall not include the liabilities to any  Financing Party under any Bank-Provided Hedge or Qualified Hedge Agreement.  “OFAC” shall mean the Office of Foreign Assets Control of the United States Department of the  Treasury.  “Off-Site Construction Costs” shall mean the construction costs, not to exceed Twelve Million and  00/100 Dollars ($12,000,000.00), incurred to pay for the Off-Site Improvements.  “Off-Site Improvements” shall mean the off-site improvements not located on the Land and not  included in the Improvements, with such off-site improvements to include dry utilities (electrical, phone  and street light); wet utilities (LP/HP mains and meters); curb gutters, road widening, sidewalks and  landscaping; and all other necessary labor, materials, equipment and services to complete such work.  “Officer’s Certificate” with respect to any Person shall mean a certificate executed on behalf of  such Person by a Responsible Officer who has made or caused to be made such examination or investigation  as is necessary to enable such Responsible Officer to express an informed opinion with respect to the subject  matter of such Officer’s Certificate.  “Official Body” shall mean the government of the United States of America or any other nation, or  of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality,  regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing,  regulatory or administrative powers or functions of or pertaining to government (including any supra- national bodies such as the European Union or the European Central Bank).  “Operative Agreements” shall mean the following: the Participation Agreement, the Lessor  Assignment Agreement, the Agency Agreement, the Engagement Letter, the Lease (and a memorandum  thereof (or a short form lease), in each case, in a form reasonably acceptable to the Agent), each Requisition,  the Intercompany Subordination Agreement, the Security Documents, the Deeds, the Bills of Sale and any  and all other agreements, documents and instruments executed in connection with any of the foregoing.  “Overdue Rate” shall mean a per annum rate equal to the lesser of (a) the then current rate of Lessor  Yield respecting the particular amount in question plus two percent (2%) and (b) the highest rate permitted  by Applicable Law, in each case from the date of such non-payment until such amount is paid in full  (whether after or before judgment).  “Overfunded Amount” shall have the meaning given to such term in Section 5.2(c)(ii) of the  Participation Agreement.  “Overnight Bank Funding Rate” shall mean, for any day, the rate comprised of both overnight  federal funds and overnight Eurocurrency borrowings by U.S.-managed banking offices of depository  institutions, as such composite rate shall be determined by the Federal Reserve Bank of New York  (“NYFRB”), as set forth on its public website from time to time, and as published on the next succeeding  Business Day as the overnight bank funding rate by the NYFRB (or by such other recognized electronic  source (such as Bloomberg) selected by the Agent for the purpose of displaying such rate); provided that,  if such day is not a Business Day, the Overnight Bank Funding Rate for such day shall be such rate on the  immediately preceding Business Day; provided, further, that if such rate shall at any time, for any reason,  no longer exist, a comparable replacement rate determined by the Agent at such time (which determination  shall be conclusive absent manifest error).  If the Overnight Bank Funding Rate determined as above would  be less than zero basis points (0.00%), then such rate shall be deemed to be zero basis points (0.00%).  

 

APPENDIX A-30  CHAR1\1917164v13 “Overnight Federal Funds Rate” shall mean for any day, the rate per annum (rounded upwards, if  necessary, to the nearest 1/100 of one percent (1%)) equal to the weighted average of the rates on overnight  Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers  on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding  such day; provided, that (a) if such day is not a Business Day, the Overnight Federal Funds Rate for such  day shall be such rate on such transactions on the next preceding Business Day as so published on the next  succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day,  the Overnight Federal Funds Rate for such day shall be the average rate charged to Wells Fargo Bank,  National Association on such day on such transactions as determined by Wells Fargo Bank, National  Association.  “Parent” shall mean Big Lots, Inc., an Ohio corporation.  “Participant” shall have the meaning given to such term in Section 10.4 of the Participation  Agreement.  “Participation Agreement” shall mean the Participation Agreement dated on or about the Initial  Closing Date, among the Lessor Parties, the Lessee, the Construction Agent, the Guarantors and the Agent.  “Partnership Interests” shall have the meaning given to such term in Section 6.1(c) of the  Participation Agreement.  “Payment Date” shall mean (a) as to any SOFR Lessor Advance, the last day of the Lessor Yield  Period applicable to such SOFR Lessor Advance, (b) as to any ABR Lessor Advance, the twentieth day of each  month, unless such day is not a Business Day and in such case on the next occurring Business Day and (c) as  to all Lessor Advances, the date of any voluntary or involuntary payment, repayment, prepayment, return or  redemption, and the Expiration Date.  “Payment in Full” shall mean the indefeasible payment and satisfaction in full of all Obligations  and the obligations of the other Credit Parties pursuant to the Operative Agreements (other than contingent  indemnification and reimbursement obligations in respect of which no claim for payment has yet been  asserted by the Person entitled thereto) and termination of the Lessor Parties Commitments.  “Payment Recipient” shall have the meaning given to such term in Section 12.23(a) of the  Participation Agreement.  “PBGC” shall mean the Pension Benefit Guaranty Corporation established pursuant to Subtitle A  of Title IV of ERISA or any successor.  “Pension Plan” shall mean a “pension plan”, as such term is defined in Section 3(2) of ERISA,  which is subject to Title IV of ERISA (other than a Multiemployer Plan), and to which any Credit Party or  any ERISA Affiliate may have any liability, including any liability by reason of having been a substantial  employer within the meaning of Section 4063 of ERISA at any time during the preceding five (5) years, or  by reason of being deemed to be a contributing sponsor under Section 4069 of ERISA.  “Percentage Share” shall mean, for each Lessor Party and from time to time, the percentage which  its respective funded Lessor Advances bears to all funded Lessor Advances, as the Percentage Share for  each Lessor Party shall be determined from time to time by the Agent in good faith, with such determination  by the Agent being conclusive and binding on each Lessor Party and the Credit Parties, absent manifest  error.  

 

APPENDIX A-31  CHAR1\1917164v13 “Permitted Acquisition” shall have the meaning given to such term in Section 8.3B(e)(iii) of the  Participation Agreement.  “Permitted Facility” shall mean the approximately one million three hundred fifty thousand  (1,350,000) square foot (gross building area) distribution center to be constructed at the southwest corner  of Navajo Road and Lafayette Road in San Bernardino County, California identified by the Construction  Agent or the Lessee reasonably acceptable to the Agent, it being agreed that in determining said  acceptability, the Agent shall be entitled to require an appraisal of the parcel of real property.  “Permitted Investments” shall mean:  (a) direct obligations of the United States of America or any agency or instrumentality  thereof or obligations backed by the full faith and credit of the United States of America maturing  in twelve (12) months or less from the date of acquisition;  (b) commercial paper maturing in one (1) year or less rated not lower than A-1, by  S&P’s, P-1 by Moody’s or F-1 by Fitch on the date of acquisition;  (c) demand deposits, time deposits or certificates of deposit maturing within one year  in any Bank or any other commercial banks whose obligations are rated A-1, A or the equivalent  or better by S&P’s on the date of acquisition;  (d) money market mutual funds or cash management trusts rated the highest rating by  S&P’s, Moody’s or Fitch (and not rated other than the highest rating by S&P’s, Moody’s or Fitch)  or investing solely in investments described in clauses (a) through (c) above;  (e) fully collateralized repurchase agreements with a term of not more than one  hundred eighty (180) days for securities described in clause (a) above and entered into with  commercial banks whose obligations are rated A-1, A or the equivalent or better by S&P’s on the  date of acquisition;  (f) short term Tax-exempt securities rated not lower than BBB by S&P’s, Baa2 by  Moody’s or an equivalent rating by Fitch with provisions for liquidity or maturity accommodations  of two (2) years or less;  (g) investments in other readily marketable securities (excluding any equity or equity- linked securities other than auction rate preferred securities) which are rated P1 or P2 by Moody’s,  A1 or A2 by S&P’s or F1 or F2 by Fitch (in lieu of a short term rating, a long term rating of not  less than A2 by Moody’s, A by S&P’s or an equivalent rating by Fitch would qualify under this  sub-clause (g), provided that no such security position shall exceed five percent (5%) of the invested  cash portfolio of the Credit Parties); and  (h) any investment existing on September 22, 2021 and described on Schedule XIV.  “Permitted Liens” shall mean:  (a) the respective rights and interests of the parties to the Operative Agreements as  provided in the Operative Agreements;  (b) the rights of any sublessee or assignee under a sublease or an assignment expressly  permitted by the terms of the Lease for no longer than the duration of the Lease;  

 

APPENDIX A-32  CHAR1\1917164v13 (c) Liens for Taxes that either are (i) not yet due or (ii) are being contested in  accordance with the provisions of Section 13.1 of the Lease;  (d) Liens arising by operation of law, materialmen’s, mechanics’, workmen’s,  repairmen’s, employees’, carriers’, warehousemen’s and other like Liens relating to the  construction of the Improvements or in connection with any Modifications or arising in the ordinary  course of business for amounts that (i) are not more than thirty (30) days past due, (ii) are being  diligently contested in good faith by appropriate proceedings, so long as such proceedings satisfy  the conditions for the continuation of proceedings to contest Taxes set forth in Section 13.1 of the  Lease or (iii) have been bonded for not less than the full amount in dispute (or as to which other  security arrangements satisfactory to the Majority Secured Parties, in their reasonable discretion,  have been made), which bonding (or arrangements) shall comply with applicable Legal  Requirements, and shall have effectively stayed any execution or enforcement of such Liens;  (e) Liens arising out of judgments or awards with respect to which appeals or other  proceedings for review are being prosecuted in good faith and for the payment of which adequate  reserves have been provided to the extent required by GAAP or other appropriate provisions have  been made, so long as such proceedings have the effect of staying the execution of such judgments  or awards and satisfy the conditions for the continuation of proceedings to contest Taxes set forth  in Section 13.1 of the Lease;  (f) Liens in favor of municipalities to the extent agreed to by the Majority Secured  Parties;  (g) Liens that are expressly set forth as title exceptions on the title commitment issued  under Section 5.3(g) of the Participation Agreement with respect to the Property, to the extent such  title exceptions do not have and could not reasonably be expected to have a Material Adverse  Effect;  (h) Liens on the Property approved by the Majority Secured Parties or otherwise  permitted under Section 8.5 of the Participation Agreement; and  (i) Lessor Liens.  “Person” shall mean an individual, partnership, corporation (including a business trust), limited  liability company, joint stock company, trust, unincorporated association, sole proprietorship, joint venture,  government (or any agency or political subdivision thereof) or other entity.  “Plan” shall mean at any time an employee pension benefit plan (including a Multiple Employer  Plan, but not a Multiemployer Plan) which is covered by Title IV of ERISA or is subject to the minimum  funding standards under Section 412 of the Code and either (a) is maintained by any member of the ERISA  Group for employees of any member of the ERISA Group or (b) has at any time within the preceding five  years been maintained by any entity which was at such time a member of the ERISA Group for employees  of any entity which was at such time a member of the ERISA Group.  “Plans and Specifications” shall mean, with respect to Improvements, the plans and specifications  for such Improvements to be constructed or already existing certified to the Agent, as such Plans and  Specifications may be amended, modified or supplemented from time to time in accordance with the terms  of the Operative Agreements.  

 

APPENDIX A-33  CHAR1\1917164v13 “Prime Rate” shall mean the rate announced by Wells Fargo Bank, National Association from time  to time as its prime rate in the United States, such rate to change as and when such designated rate changes;  provided, notwithstanding the foregoing, if any such interest rate for any period of time determined as  provided above would be less than 0.0% per annum, then such interest rate for such period of time shall be  deemed to be 0.0% per annum.  The Prime Rate is not intended to be the lowest rate of interest charged by  Wells Fargo Bank, National Association in connection with extensions of credit to debtors.  “Pro Rata Share” shall mean with respect to a Lessor Party, a percentage equal to such Lessor  Party’s pro rata share of the aggregate Lessor Parties Commitments, in each case, as set forth next to such  Lessor Party’s name on Schedule I of the Participation Agreement or on any assignment pursuant to which  such Lessor Party becomes a party hereto.  “Prohibited Transaction” shall mean any prohibited transaction as defined in Section 4975 of the  Code or Section 406 of ERISA for which (a) no statutory exception exists or (b) neither an individual nor  a class exemption has been issued by the United States Department of Labor.  “Property” shall mean the real property that is (or is to be) acquired, constructed and/or renovated  pursuant to the terms of the Operative Agreements, including the Land, each item of Equipment and the  various Improvements, in each case located on such Land, including the Property if it is a Construction  Period Property and if the Term has commenced.  “Property Acquisition Cost” shall mean the cost to the Lessor Parties for the Lessor to purchase the  Property on the Property Closing Date (including Transaction Expenses).  “Property Closing Date” shall mean the Initial Closing Date.  “Property Cost” shall mean (a) the aggregate amount of the Lessor Advances (in each case, as such  amounts shall be increased pro rata according to the Lessor Advances advanced or extended from time to  time including to pay for the Transaction Expenses and Uninsured Force Majeure Losses) and (b) respecting  the various amounts described in the foregoing subsection (a), all the occurrences and items giving rise to  all such amounts.  “PTEs” shall have the meaning given to such term in Section 12.24(a) of the Participation  Agreement.  “Punchlist Advance” shall have the meaning given to such term in Section 5.11 of the Participation  Agreement.  “Punchlist Deadline” shall have the meaning given to such term in Section 5.11 of the Participation  Agreement.  “Purchase Agreement” shall mean the Agreement of Purchase and Sale and Joint Escrow  Instructions dated as of October 4, 2017 by and between Watson Land Company and the Lessee, without  regard to any amendment, modification, extension, supplement, restatement and/or replacement thereof  subsequent to such date.  “Purchase Money Security Interest” shall mean Liens upon real or tangible personal property  securing loans to any Credit Party or Subsidiary of a Credit Party or deferred payments by such Credit Party  or Subsidiary for the purchase of such real or tangible personal property.  “Purchase Option” shall have the meaning given to such term in Section 20.1 of the Lease.  

 

APPENDIX A-34  CHAR1\1917164v13 “Purchasing Lessor Party” shall have the meaning given to such term in Section 10.5(a) of the  Participation Agreement.  “Qualified Community Development Entity” shall mean any corporation or partnership (or a  limited liability company designated as a corporation or partnership for federal income Tax purposes)  organized under the laws of the United States of America or any state thereof that meets the requirements  of Section 45(D)(c) of the Code.  “Qualified Hedge Agreement” shall mean a Hedge Agreement with a financial institution  reasonably acceptable to the ABL Credit Agreement Administrative Agent (as evidenced by the Credit  Parties to the reasonable satisfaction of the Agent) and the Agent and which (a) is documented in a standard  International Swap Dealer Association Agreement or a similar agreement, (b) provides for the method of  calculating the reimbursable amount of the provider’s credit exposure in a reasonable and customary  manner, (c) is entered into for hedging (rather than speculative) purposes, and (d) does not require that any  collateral be provided as security for such agreement.  “Real Property” shall mean the Property.  “Real Property Lease” or “Real Property Lease Agreement” shall mean the Lease.  “Register” shall have the meaning given to such term in Section 10.6 of the Participation  Agreement.  “Regulated Substances” shall mean, without limitation, any substance, material or waste, regardless  of its form or nature, defined under Environmental Laws as a “hazardous substance,” “pollutant,”  “pollution,” “contaminant,” “hazardous or toxic substance,” “extremely hazardous substance,” “toxic  chemical,” “toxic substance,” “toxic waste,” “hazardous waste,” “special handling waste,” “industrial  waste,” “residual waste,” “solid waste,” “municipal waste,” “mixed waste,” “infectious waste,”  “chemotherapeutic waste,” “medical waste,” “pesticide” or “regulated substance” or any other substance,  material or waste, regardless of its form or nature, which is regulated, controlled or governed by  Environmental Laws due to its radioactive, ignitable, corrosive, reactive, explosive, toxic, carcinogenic or  infectious properties or nature or any other material, substance or waste, regardless of its form or nature,  which otherwise is regulated, controlled or governed by Environmental Laws, including petroleum and  petroleum products (including crude oil and any fractions thereof), natural gas, synthetic gas and any  mixtures thereof, asbestos, urea formaldehyde, polychlorinated biphenyls, mercury, radon and radioactive  materials.  “Regulation B” shall mean Regulation B of the Board of Governors of the Federal Reserve System  (or any successor), as the same may be modified and supplemented and in effect from time to time.  “Regulation U” shall mean Regulation U of the Board of Governors of the Federal Reserve System  (or any successor), as the same may be modified and supplemented and in effect from time to time.  “Regulation Z” shall mean Regulation Z of the Board of Governors of the Federal Reserve System  (or any successor), as the same may be modified and supplemented and in effect from time to time.  “Regulatory Change” shall mean the occurrence, after the Initial Closing Date, of any of the  following:  (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any Law  or in the administration, interpretation, implementation or application thereof by any Governmental  Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having  the force of Law) by any Governmental Authority; provided, that notwithstanding anything herein to the  

 

APPENDIX A-35  CHAR1\1917164v13 contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules,  guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules, guidelines  or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking  Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in  each case pursuant to Basel III, shall in each case be deemed to be a “Regulatory Change”, regardless of  the date enacted, adopted or issued.  “Release” shall mean any release, pumping, pouring, emptying, injecting, escaping, leaching,  dumping, seepage, spill, leak, flow, discharge, disposal or emission of a Hazardous Substance.  “Relevant Governmental Body” shall mean the Federal Reserve Board and/or the Federal Reserve  Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or  the Federal Reserve Bank of New York or any successor thereto.  “Remedial Action” shall mean any investigation, identification, preliminary assessment,  characterization, delineation, feasibility study, cleanup, corrective action, removal, remediation, risk  assessment, fate and transport analysis, in situ treatment, containment, operation and maintenance or  management in-place, control or abatement of or other response actions to Regulated Substances and any  closure or post-closure measures associated therewith.  “Renewal Term” shall have the meaning given to such term in Section 2.2 of the Lease.  “Rent” shall mean, collectively, the Basic Rent and the Supplemental Rent, in each case payable  under the Lease.  “Rent Commencement Date” shall mean, the Completion Date with respect to the Property.  “Reportable Compliance Event” shall mean that (a) any Covered Entity becomes a Sanctioned  Person, or is charged by indictment, criminal complaint, or similar charging instrument, arraigned,  custodially detained, penalized or the subject of an assessment for a penalty, or enters into a settlement with  an Official Body in connection with any sanctions or other Anti-Terrorism Law or Anti-Corruption law, or  any predicate crime to any Anti-Terrorism Law or Anti-Corruption Law, or has knowledge of facts or  circumstances to the effect that it is reasonably likely that any aspect of its operations represents a violation  of any Anti-Terrorism Law or Anti-Corruption Law; or (b) any Covered Entity engages in a transaction that  has caused or may cause the Lessor Parties or Agent to be in violation of any Anti-Terrorism Laws,  including a Covered Entity’s use of any proceeds of the Lessor Advances to fund any operations in, finance  any investments or activities in, or, make any payments to, directly or indirectly, a Sanctioned Person or  Sanctioned Jurisdiction.  “Reportable Event” shall mean a reportable event described in Section 4043 of ERISA and  regulations thereunder with respect to a Plan, a Multiemployer Plan or a Multiple Employer Plan.  “Requested Funds” shall mean any funds requested by the Lessee or the Construction Agent, as  applicable, in accordance with Section 5 of the Participation Agreement.  “Requesting Party” shall have the meaning given to such term in Section 26.3 of the Lease.  “Requisition” shall have the meaning given to such term in Section 4.2 of the Participation  Agreement.  

 

APPENDIX A-36  CHAR1\1917164v13 “Resolution Authority” shall mean an EEA Resolution Authority or, with respect to any UK  Financial Institution, a UK Resolution Authority.  “Responsible Officer” shall mean, with respect to the subject matter of any covenant, agreement or  obligation of any party contained in any Operative Agreement, the President, or any Vice President,  Assistant Vice President, Trust Officer or other officer, who in the normal performance of his or her  operational responsibility would have knowledge of such matters and the requirements with respect thereto.  “RVI Policy” shall mean, with respect to the Property, a residual value insurance policy in form  and substance reasonably acceptable to the Lessor in an amount sufficient to enable the Lessor to achieve  its desired accounting treatment.  “S&P” shall mean Standard & Poor’s, a division of The McGraw Hill Companies Inc., and any  successor thereto.  “Sale Date” shall have the meaning given to such term in Section 20.3(a) of the Lease.  “Sale Notice” shall mean a notice given to the Lessor in connection with the election by the Lessee  of its Sale Option.  “Sale Option” shall have the meaning given to such term in Section 20.1 of the Lease.  “Sale Proceeds Shortfall” shall mean the amount by which the proceeds of a sale described in  Section 21.1 of the Lease are less than the Limited Recourse Amount with respect to the Property if it has  been determined that the Fair Market Sales Value of the Property at the expiration of the term of the Lease  has been impaired by greater than ordinary wear and tear during such term.  “Same Day Funds” shall mean immediately available funds in Dollars.  “Sanctioned Country” shall mean a country subject to a sanctions program maintained under any  Anti-Terrorism Law.  “Sanctioned Jurisdiction” shall mean any country, territory, or region that is the subject of sanctions  administered by OFAC, the Canadian government or any other applicable governmental authority.  “Sanctioned Person” shall mean (a) a Person that is the subject of sanctions administered by OFAC  or the U.S. Department of State (“State”), including by virtue of being (i) named on OFAC’s list of  “Specially Designated Nationals and Blocked Persons”; (ii) organized under the Laws of, ordinarily  resident in, or physically located in a Sanctioned Jurisdiction; (iii) owned or controlled 50% or more in the  aggregate, by one or more Persons that are the subject of sanctions administered by OFAC; (b) a Person  that is the subject of sanctions maintained by the European Union (“E.U.”), including by virtue of being  named on the E.U.’s “Consolidated list of persons, groups and entities subject to E.U. financial sanctions”  or other, similar lists; (c) a Person that is the subject of sanctions maintained by the United Kingdom  (“U.K.”), including by virtue of being named on the “Consolidated List Of Financial Sanctions Targets in  the U.K.” or other, similar lists; or (d) a Person that is the subject of sanctions imposed by any Official  Body of a jurisdiction whose Laws apply to the Participation Agreement and the other Operative  Agreements.  “Secured Parties” shall mean the Lessor Parties and the Agent, together with their successors and  permitted assigns.  

 

APPENDIX A-37  CHAR1\1917164v13 “Securities Act” shall mean the Securities Act of 1933, as amended, together with the rules and  regulations promulgated thereunder.  “Security Documents” shall mean the collective reference to the Mortgage Instruments, (to the  extent the Lease is construed as a security instrument) the Lease, the UCC Financing Statements and all  other security documents granting a Lien on any asset or assets of any Person to secure the obligations and  liabilities of the Lessee under any Operative Agreement or to secure any guarantee of any such obligations  and liabilities.  “Seismic Report” shall mean the Seismic Risk Assessment Report dated October 18, 2017 prepared  by Global Realty Services Group regarding Big Lots Industrial Project Located at the SWC of Navajo Road  and Lafayette Road.  “Shares” shall have the meaning given to such term in Section 6.1(b) of the Participation  Agreement.  “SOFR” shall mean, with respect to any day, the secured overnight financing rate published for  such day by the SOFR Administrator on the SOFR Administrator’s Website at approximately 2:30 p.m. on  the next succeeding U.S. Government Securities Business Day.  “SOFR Administrator” shall mean the Federal Reserve Bank of New York (or a successor  administrator of the secured overnight financing rate).  “SOFR Administrator’s Website” shall mean the website of the Federal Reserve Bank of New  York, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing  rate identified as such by the SOFR Administrator from time to time.  “SOFR Lessor Advance” shall mean a Lessor Advance bearing a Lessor Yield based on the Term  SOFR Reference Rate.  “Soft Costs” shall mean (a) all costs which are ordinarily and reasonably incurred in relation to the  acquisition, development, leasing, financing, installation, construction, improvement and testing of the  Property other than Hard Costs, including Off-Site Construction Costs, Fees, legal fees, broker fees, upfront  fees, fees of the Construction Consultant, fees and expenses related to appraisals, title examinations, title  insurance, document recordation, documentary stamp Taxes, intangible Taxes, surveys, environmental site  assessments, geotechnical soil investigations and similar costs and professional fees customarily associated  with a real estate purchase and closing and (b) the settlement amounts described in Schedule XVII to the  Participation Agreement. “Solvent” and “Solvency” shall mean, with respect to any Person on any date of determination, that  on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities,  including contingent liabilities, of such Person, (b) the present fair saleable value of the assets of such  Person is not less than the amount that will be required to pay the probable liability of such Person on its  debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it  will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature,  (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a  transaction, for which such Person’s property would constitute an unreasonably small capital, and (e) such  Person is able to pay its debts and liabilities, contingent obligations and other commitments as they mature  in the ordinary course of business.  The amount of contingent liabilities at any time shall be computed as  the amount that, in the light of all the facts and circumstances existing at such time, represents the amount  that can reasonably be expected to become an actual or matured liability.  

 

APPENDIX A-38  CHAR1\1917164v13 “Structuring Fee” shall have the meaning given to such term in Section 7.7 of the Participation  Agreement.  “Subsidiary” of any Person at any time shall mean (a) any corporation or trust of which fifty percent  (50%) or more (by number of shares or number of votes) of the outstanding capital stock or shares of  beneficial interest normally entitled to vote for the election of one or more directors or trustees (regardless  of any contingency which does or may suspend or dilute the voting rights) is at such time owned directly  or indirectly by such Person or one or more of such Person’s Subsidiaries, (b) any partnership of which  such Person is a general partner or of which fifty percent (50%) or more of the partnership interests are at  the time directly or indirectly owned by such Person or one or more of such Person’s Subsidiaries, (c) any  limited liability company of which such Person is a member or of which fifty percent (50%) or more of the  limited liability company interests are at the time directly or indirectly owned by such Person or one or  more of such Person’s Subsidiaries or (d) any corporation, trust, partnership, limited liability company or  other entity which is controlled or capable of being controlled by such Person or one or more of such  Person’s Subsidiaries.  “Subsidiary Shares” shall have the meaning given to such term in Section 6.1(c) of the Participation  Agreement.  “Supplemental Rent” shall mean all amounts, liabilities and obligations (other than Basic Rent)  which the Lessee assumes or agrees to pay to any Lessor Party, the Agent or any other Person under the  Lease or under any of the other Operative Agreements including payments of the Termination Value and  the Maximum Residual Guarantee Amount and all indemnification amounts, liabilities and obligations.  “Synthetic Lease Documents” shall have the meaning given to such term in Section 8.3B(q) of the  Participation Agreement.  “Synthetic Lease Obligation” shall mean the monetary obligation of any Person under (a) a so- called synthetic or tax retention lease, or (b) an agreement for the use or possession of property creating  obligations that, pursuant to the applicable FASB accounting standards, do not appear on the balance sheet  of such Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the  indebtedness of such Person (without regard to accounting treatment.  “Tax Loss” shall have the meaning given to such term in Section 11.2(g) of the Participation  Agreement.  “Taxes” shall have the meaning given to such term in the definition of “Impositions”.  “Term” shall mean the Basic Term and each Renewal Term, if any.  “Term SOFR” shall mean the Term SOFR Reference Rate for a tenor of one month on the  applicable Lessor Yield Determination Date, as such rate is published by the Term SOFR Administrator;  provided, however, that (i) if as of 5:00 p.m. (New York City time) on any Lessor Yield Determination  Date the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR  Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not  occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term  SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term  SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first  preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities  Business Days prior to such Lessor Yield Determination Date and (ii) if the calculation of Term SOFR as  determined as provided above (including pursuant to clause (i) of this proviso) results in a Term SOFR rate  

 

APPENDIX A-39  CHAR1\1917164v13 of less than zero (0), Term SOFR shall be deemed to be zero (0) for all purposes of this Agreement and the  other Operative Agreements.  “Term SOFR Administrator” shall mean the CME Group Benchmark Administration Limited  (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Agent in its  reasonable discretion).  “Term SOFR Reference Rate” shall mean the forward-looking term rate based on SOFR.  “Termination Date” shall have the meaning given to such term in Section 16.2(a) of the Lease.  “Termination Notice” shall have the meaning given to such term in Section 16.1 of the Lease.  “Termination Value” shall mean the sum of (a) an amount equal to the aggregate outstanding  Property Cost for the Property, as of the last occurring Payment Date, plus (b) any and all accrued but  unpaid Lessor Yield on the Lessor Advances, plus (c) to the extent the same is not duplicative of the  amounts payable under clause (b) above, all other Rent and other amounts then due and payable or accrued  under the Agency Agreement, the Lease and/or under any other Operative Agreement (including amounts  under Sections 11.1 through 11.9 of the Participation Agreement and all costs and expenses incurred by  any Lessor Party and/or the Agent in connection with the transfer or sale of the Property to any Person  (regardless of whether any such transfer or sale actually occurs)).  “Transaction Expenses” shall mean all Soft Costs and all other costs and expenses incurred or  expended by the Construction Agent, the Lessee or any Financing Party in connection with the preparation,  execution and delivery of the Operative Agreements and the transactions contemplated by the Operative  Agreements including all costs, fees, expenses and other amounts described in Section 7 of the Participation  Agreement, all reasonable costs and expenses incurred by any Lessor Party in connection with any  designation of a new lending office or assignment by a Lessor Party to another of its offices, branches or  affiliates, in each case, pursuant to Section 5A.7(a) the assignment fee payable to the Agent and any other  fees or amounts (excluding advance amounts, Lessor Yield and Fees) incurred by a Lessor Party pursuant  to Section 5A.7(b) and (except to the extent payable and actually paid by the Construction Agent or the  Lessee pursuant to Section 11.6 of the Participation Agreement) all indemnity amounts, breakage amounts,  costs, fees, expenses and other amounts arising pursuant to Section 11 of the Participation Agreement and  the following:  (a) the reasonable fees, out-of-pocket expenses and disbursements of counsel in  negotiating the terms of the Operative Agreements and the other transaction documents, preparing  for the closings under, and rendering opinions in connection with, such transactions and in  rendering other services customary for counsel representing parties to transactions of the types  involved in the transactions contemplated by the Operative Agreements;  (b) the reasonable fees, out-of-pocket expenses and disbursements of accountants for  any Credit Party in connection with the transactions contemplated by the Operative Agreements;  (c) any and all other reasonable fees, charges or other amounts payable to the Agent  or any broker which arises under any of the Operative Agreements;  (d) any other reasonable fee, out-of-pocket expenses, disbursement or cost of any party  to the Operative Agreements or any of the other transaction documents; and  

 

APPENDIX A-40  CHAR1\1917164v13 (e) any and all Taxes and fees incurred in recording or filing any Operative Agreement  or any other transaction document, any deed, declaration, mortgage, security agreement, notice or  financing statement with any public office, registry or governmental agency in connection with the  transactions contemplated by the Operative Agreement.  Notwithstanding the foregoing or any provision in Section 7.1 of the Participation Agreement or in any  other Operative Agreement to the contrary, “Transaction Expenses” shall not include legal fees and other  professional fees or similar costs and expenses expended by any transferee or assignee of any Lease  Participant as of the Initial Closing Date.  “Tribunal” shall mean any state, commonwealth, federal, foreign, territorial, or other court or  government body, subdivision agency, department, commission, board, bureau or instrumentality of a  governmental body.  “Trust Property” shall mean the collateral identified in the Security Documents.  “U.S. Government Securities Business Day” shall mean any day except for (i) a Saturday, (ii) a  Sunday or (iii) a day on which the Securities Industry and Financial Markets Association, or any successor  thereto, recommends that the fixed income departments of its members be closed for the entire day for  purposes of trading in United States government securities.  “U.S. Person” shall have the meaning given to such term in Section 11.2(e) of the Participation  Agreement.  “U.S. Taxes” shall have the meaning given to such term in Section 11.2(e) of the Participation  Agreement.  “UCC Financing Statements” shall mean UCC financing statements and fixture filings  appropriately completed for filing in the applicable jurisdictions in order to procure a security interest in  the Property against the Lessee, as debtor, in favor of the Lessor, as secured party, and thereafter assigned  to the Agent, respecting any of the Security Documents.  “UK Financial Institution” shall mean any BRRD Undertaking (as such term is defined under the  PRA Rulebook (as amended form time to time) promulgated by the United Kingdom Prudential Regulation  Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time)  promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions  and investment firms, and certain affiliates of such credit institutions or investment firms.  “UK Resolution Authority” shall mean the Bank of England or any other public administrative  authority having responsibility for the resolution of any UK Financial Institution.  “Unadjusted Benchmark Replacement” shall mean the applicable Benchmark Replacement  excluding the related Benchmark Replacement Adjustment.  “Unanimous Vote Matters” shall have the meaning given to such term in Section 12.4 of the  Participation Agreement.  “Uniform Commercial Code” and “UCC” shall mean the Uniform Commercial Code as from time  to time in effect in the applicable jurisdiction or jurisdictions.  

 

APPENDIX A-41  CHAR1\1917164v13 “Uninsured Force Majeure Loss” shall mean an amount equal to the Force Majeure Loss less any  and all insurance proceeds paid in connection with the Force Majeure Event giving rise to such Force  Majeure Loss.  “United States” shall mean the United States of America.  “United States Bankruptcy Code” shall mean the Bankruptcy Code.  “USA Patriot Act” shall mean the Uniting and Strengthening America by Providing Appropriate  Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as the same has been,  or shall hereafter be, renewed, extended, amended or replaced.  “Water Utility Easement” shall have the meaning given to such term in Section 8.5 of the  Participation Agreement.  “Wholly-Owned Entity” shall mean a Person all of the shares of capital stock or other ownership  interest of which are owned by the Parent and/or one of its wholly-owned Subsidiaries or other wholly- owned entities.  “Withholdings” shall have the meaning given to such term in Section 11.2(e) of the Participation  Agreement.  “Work” shall mean the furnishing of labor, materials, components, furniture, furnishings, fixtures,  appliances, machinery, equipment, tools, power, water, fuel, lubricants, supplies, goods and/or services  with respect to the Property.  “Write-Down and Conversion Powers” shall mean (a) with respect to any EEA Resolution  Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time  under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion  powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom,   any powers of the applicable Resolution Authority  under the Bail-In Legislation to cancel, reduce, modify  or change the form of a liability of any UK Financial Institution  or any contract or instrument under which  that liability arises, to convert all or part of that liability into shares, securities or obligations of that person  or any other person, to provide that any such contract or instrument is to have effect as if a right had been  exercised under it or to suspend any obligation in respect of that liability or any of the powers under that  Bail-In Legislation that are related to or ancillary to any of those powers.  “Yield Protection Amount” shall have the meaning given to such term in Section 11.3 of the  Participation Agreement.

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