Document:

Exhibit 10.1

EXECUTION   VERSION AMENDMENT No. 4, dated as of August 18, 2017 (this “Amendment”), to   the Credit Agreement dated as of April 6, 2012, among THE CONTAINER STORE,   INC., a Texas corporation (the “Borrower”), the Guarantors party thereto, the   several banks and other financial institutions or entities from time to time   parties to the Credit Agreement (the “Lenders”), JPMORGAN CHASE BANK, N.A.,   as Administrative Agent (the “Administrative Agent”), and the other parties   thereto (as amended by Amendment No. 1 dated as of April 8, 2013, as amended   by Amendment No. 2 dated as of November 27, 2013, and as further amended by   Amendment No. 3 dated as of May 20, 2016, and as further amended, amended and   restated, supplemented or otherwise modified, the “Credit Agreement”);   capitalized terms used and not otherwise defined herein shall have the   meanings assigned to such terms in the Credit Agreement. WHEREAS, the   Borrower desires to amend the Credit Agreement on the terms set forth herein;   WHEREAS, Section 11.01 of the Credit Agreement provides that the relevant   Loan Parties and the Required Lenders may amend the Credit Agreement and the   other Loan Documents for certain purposes; WHEREAS, (i) each Amendment No. 4   Consenting Lender (as defined in Exhibit A) has agreed, on the terms and   conditions set forth herein, to have up to all of its outstanding Term B   Loans (as defined in Exhibit A) converted into a like principal amount of a   Term B-1 Loan (as defined in Exhibit A) effective as of the Amendment No. 4   Effective Date and (ii) the Additional Term B-1 Lender (as defined in Exhibit   A) has agreed to provide an Additional Term B-1 Commitment (as defined in   Exhibit A) in a principal amount equal to $300,000,000 minus the principal   amount of Term B Loans converted into Term B-1 Loans on the Amendment No. 4   Effective Date, the proceeds of which, together with other funds of the   Borrower, shall be applied to repay non-converted Term B Loans; WHEREAS,   JPMorgan Chase Bank, N.A. is acting as lead arranger and bookrunner in   connection with this Amendment; NOW, THEREFORE, in consideration of the   premises contained herein and for other good and valuable consideration, the   receipt and sufficiency of which are hereby acknowledged, the parties hereto,   intending to be legally bound hereby, agree as follows: Section 1. Amendment.   The Credit Agreement is, effective as of the Amendment No. 4 Effective Date,   hereby amended to delete the stricken text (indicated textually in the same   manner as the following example: stricken text) and to add the   double-underlined text (indicated textually in the same manner as the   following example: double-underlined text) as set forth in the pages of the   Credit Agreement attached as Exhibit A hereto. Section 2. Representations and   Warranties, No Default. In order to induce the Lenders to enter into this   Amendment and to amend the Credit Agreement in the manner provided herein,   the Borrower represents and warrants to each Lender that: a) After giving   effect to this Amendment, each of the representations and warranties in the   Credit Agreement and in the other Loan Documents are true and correct in all   material respects on and as of the date hereof as though made on and as of   the date hereof, except to the extent that any such representation or   warranty expressly relates to an earlier date, in which case such   representation or warranty shall be true and correct in all material respects   as of such earlier date; and 

    

 

-2-b) At the   time of and immediately after giving effect to this Amendment, no Default or   Event of Default has occurred and is continuing. Section 3. Effectiveness.   Section 1 of this Amendment shall become effective on the date (such date, if   any, the “Amendment No. 4 Effective Date”) that the following conditions have   been satisfied: (i) Consents. The Administrative Agent shall have received   executed signature pages hereto from Lenders constituting the Required   Lenders; (ii) Additional Joinder Agreement. The Administrative Agent, the   Borrower and the Additional Term B-1 Lender shall have entered into the   Additional Term B-1 Joinder Agreement (as defined in Exhibit A); (iii) Fees.   The Borrower shall have paid (i) to the Amendment No. 4 Lead Arranger (as   defined in Exhibit A) in immediately available funds, all fees and expenses   owing to Amendment No. 4 Lead Arranger and due and payable on the Amendment   No. 4 Effective Date as separately agreed to in writing by the Borrower and   Amendment No. 4 Lead Arranger, (ii) to the extent invoiced prior to the   Amendment No. 4 Effective Date, all reasonable out-of-pocket expenses of the   Amendment No. 4 Lead Arranger and the Administrative Agent in connection with   this Amendment and the transaction contemplated hereby (including the   reasonable fees and expenses of Cahill Gordon & Reindel LLP, counsel to   the Amendment No. 4 Lead Arranger and the Administrative Agent) and (iii) to   the Administrative Agent for the account of each Amendment No. 4 Consenting   Lender and each Additional Term B-1 Lender an upfront fee equal to 3.00% of   the aggregate Term B-1 Loans of such Lender as of the Amendment No. 4   Effective Date (which, in the case of fees payable to the Additional Term B-1   Lender, may be net funded from the proceeds of the Term B-1 Loans to be   funded by the Additional Term B-1 Lender pursuant to the Additional Term B-1   Joinder Agreement); (iv) Legal Opinions. The Administrative Agent shall have   received a favorable legal opinion of Latham & Watkins LLP, counsel to   the Loan Parties covering such matters as the Administrative Agent may   reasonably request and otherwise reasonably satisfactory to the   Administrative Agent; (v) Officer’s Certificate. The Administrative Agent   shall have received a certificate of a Responsible Officer of the Borrower   dated the Amendment No. 4 Effective Date certifying that (a) after giving   effect to this Amendment, each of the representations and warranties in the   Credit Agreement and in the other Loan Documents are true and correct in all   material respects on and as of the date hereof as though made on and as of   the date hereof, except to the extent that any such representation or   warranty expressly relates to an earlier date, in which case such   representation or warranty shall be true and correct in all material respects   as of such earlier date and (b) at the time of and immediately after giving   effect to this Amendment, no Default or Event of Default has occurred and is   continuing; (vi) Closing Certificates. The Administrative Agent shall have   received (i) such certificates of resolutions or other action, incumbency   certificates and/or other certificates of Responsible Officers of each Loan   Party as the Administrative Agent may require evidencing the identity,   authority and capacity of each Responsible Officer thereof authorized to act   as a Responsible Officer in connection with this Amendment and any other Loan   Documents 

    

 

-3-executed on   behalf of such Loan Party and (ii) good standing or active status   certificates, as applicable, of each Loan Party in its jurisdiction of   organization and, to the extent reasonably requested by the Administrative   Agent, bring-down good standing or active status certificates, as applicable;   (vii) Lien Searches. The Administrative Agent shall have received results of   searches or other evidence reasonably satisfactory to the Collateral Agent   (in each case dated as of a date reasonably satisfactory to the Collateral   Agent) indicating the absence of Liens on the assets of the Loan Parties,   except for Permitted Liens; (viii) Committed Loan Notice. The Administrative   Agent shall have received a Committed Loan Notice in accordance with the   requirements of the Credit Agreement; and (ix) Repayment of Term B Loans. The   Administrative Agent shall have received a notice of repayment from the   Borrower of the Term B Loans which are not converted into Term B-1 Loans on   the Amendment No. 4 Effective Date (which may be conditioned upon the receipt   by the Borrower of the Term B-1 Loans pursuant to the Additional Term B-1   Commitment). Section 4. Counterparts. This Amendment may be executed in counterparts   (and by different parties hereto in different counterparts), each of which   shall constitute an original, but all of which when taken together shall   constitute a single contract. Delivery of an executed counterpart of a   signature page to this Amendment by telecopier or other electronic   transmission shall be effective as delivery of a manually executed   counterpart of this Amendment. Section 5. Applicable Law. THIS AMENDMENT AND   THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE   GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE   STATE OF NEW YORK. Section 6. Headings. Section and Subsection headings in   this Amendment are included herein for convenience of reference only and   shall not constitute a part of this Amendment for any other purpose or be   given any substantive effect. Section 7. Effect of Amendment. Except as   expressly set forth herein, (i) this Amendment shall not by implication or   otherwise limit, impair, constitute a waiver of or otherwise affect the   rights and remedies of the Lenders, the Administrative Agent or any other   Agent, in each case under the Credit Agreement or any other Loan Document,   and (ii) shall not alter, modify, amend or in any way affect any of the   terms, conditions, obligations, covenants or agreements contained in the   Credit Agree-ment or any other provision of either such agreement or any   other Loan Document. Each and every term, condition, obligation, covenant and   agreement contained in the Credit Agreement or any other Loan Doc-ument is   hereby ratified and re-affirmed in all respects and shall continue in full   force and effect. Each Loan Party reaffirms its obligations under the Loan   Documents to which it is party and the validity of the Liens granted by it   pursuant to the Collateral Documents. This Amendment shall constitute a Loan   Doc-ument for purposes of the Credit Agreement and from and after the   Amendment No. 4 Effective Date, all references to the Credit Agreement in any   Loan Document and all references in the Credit Agreement to “this Agreement”,   “hereunder”, “hereof” or words of like import referring to the Credit   Agreement, shall, unless expressly provided otherwise, refer to the Credit   Agreement as amended by this Amendment. Each of the Loan Parties hereby (i) consents   to this Amendment and the Additional Term B-1 Joinder Agreement, (ii)   confirms that all obligations of such Loan Party under the Loan Documents to   which such 

    

 

-4-Loan Party   is a party shall continue to apply to the Credit Agreement as amended hereby   and by the Addi-tional Term B-1 Joinder Agreement (iii) confirms and   reaffirms its Guarantee of the Obligations (includ-ing obligations in respect   of the Term B-1 Loans after giving effect to this Amendment) and (iv) agrees   that all security interests granted by it pursuant to any Loan Document shall   secure the Credit Agreement as amended by this Amendment and the Additional   Term B-1 Joinder Agreement. Section 8. Submission To Jurisdiction; Waivers.   Each of the parties hereto hereby irrevocably and unconditionally agrees that   Section 11.14 of the Credit Agreement is incorporated herein mutatis   mutandis. Section 9. No Novation. Each of the parties hereto irrevocably and   unconditionally agrees that this Amendment shall not be deemed to evidence or   result in a novation or repayment and reborrowing of the Obligations under   the Credit Agreement. Section 10. FATCA. For purposes of determining   withholding taxes under FATCA (as defined in Exhibit A), from and after the   Amendment No. 4 Effective Date, the Borrower and the Administrative Agent   shall treat (and the Lenders hereby authorize the Administrative Agent to   treat) the Term B-1 Loans as not qualifying as grandfathered obligations   within the meaning of Treasury Regula-tion Section 1.1471-2(b)(2)(i). [The   remainder of this page is intentionally left blank] 

    

 

IN WITNESS   WHEREOF, the parties hereto have caused this Amendment to be duly executed by   their respective authorized officers as of the day and year first above written.   THE CONTAINER STORE, INC., as Borrower By: /s/ Jodi Taylor Jodi Taylor Chief   Financial Officer and Secretary THE CONTAINER STORE GROUP, INC., TCS GIFT   CARD SERVICES, LLC, each as a Guarantor By: /s/ Jodi Taylor Jodi Taylor Chief   Financial Officer and Secretary [Signature Page to Amendment] 

    

 

JPMORGAN CHASE   BANK, N.A., as Administrative Agent and Collateral Agent By: /s/ Gregory T.   Martin Gregory T. Martin Authorized Signatory [Signature Page to Amendment] 

    

 

[Lender   Signature Page to The Container Store Amendment] 

    

 

 

EXHIBIT A   CREDIT AGREEMENT $329,438,750300,000,000 Dated as of April 6, 2012, as   amended by Amendment No. 1 on April 8, 2013, as amended by Amendment No. 2 on   November 27, 2013, as amended by Amendment No. 3 on May 20, 2016, and as   further amended by Amendment No. 34 on May 20, 2016August 18, 2017 among THE   CONTAINER STORE, INC., as Borrower, THE GUARANTORS PARTY HERETO JPMORGAN   CHASE BANK, N.A., as Administrative Agent and Collateral Agent, BARCLAYS BANK   PLC, MORGAN STANLEY SENIOR FUNDING, INC. and WELLS FARGO BANK, N.A., as   Co-Documentation Agents, and THE OTHER LENDERS PARTY HERETO J.P. MORGAN   SECURITIES LLC, BARCLAYS BANK PLC, MORGAN STANLEY SENIOR FUNDING, INC. and   WELLS FARGO SECURITIES, LLC, as Joint Lead Arrangers and Joint Bookrunning   Managers, as Joint Lead Arrangers and Joint Bookrunning Managers for   Amendment No. 1 and as Joint Lead Arrangers and Joint Bookrunning Managers   for Amendment No. 22, and JPMORGAN CHASE BANK, N.A., as Lead Arranger and   Bookrunning Manager for Amendment No. 4 

    

 

TABLE OF   CONTENTS Page ARTICLE I DEFINITIONS AND ACCOUNTING TERMS 1.01 1.02 1.03 1.04   1.05 1.06 1.07 1.08 Defined Terms 1 Other Interpretive Provisions 3435   Accounting Terms 3536 Rounding 3536 Times of Day 3536 Senior Debt 3536   Available Amount Transactions 3536 Pro Forma Calculations 3536 ARTICLE II THE   COMMITMENTS AND BORROWINGS 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10   2.11 2.12 2.13 2.14 The Loans 3637 Borrowings, Conversions and Continuations   of Loans 3738 Prepayment 3839 Termination or Reduction of Commitments 4345   Repayment of Loans 4445 Interest 4445 Fees 4546 Computation of Interest and   Fees 4546 Evidence of Debt 4546 Payments Generally; Administrative Agent’s   Clawback 4547 Sharing of Payments by Lenders 4748 Incremental Term Loan   Commitments 4849 Extended Term Loans 4950 Loan Repricing Protection 5052   ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY 3.01 3.02 3.03 3.04 3.05   3.06 3.07 Taxes 5152 Illegality 5354 Inability to Determine Rates 5354   Increased Costs; Reserves on LIBO Rate Loans 5455 Compensation for Losses   5556 Mitigation Obligations; Replacement of Lenders 5557 Survival 5657   ARTICLE IV CONDITIONS PRECEDENT TO BORROWINGS 4.01 Conditions of Initial   Borrowing 5657 - i- 

    

 

Page ARTICLE V   REPRESENTATIONS AND WARRANTIES 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 5.09   5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 Existence,   Qualification and Power 5859 Authorization; No Contravention 5859   Governmental Authorization; Other Consents 5960 Binding Effect 5960 Financial   Statements; No Material Adverse Effect; No Internal Control Event 5960   Litigation 5960 Ownership of Property; Liens; Investments 6061 Environmental   Matters 6061 Taxes 6162 ERISA Compliance 6162 Subsidiaries; Equity Interests;   Loan Parties 6263 Margin Regulations; Investment Company Act 6263 Disclosure   6263 Compliance with Laws 6364 Intellectual Property; Licenses, Etc 6364   Solvency 6364 Casualty, Etc 6364 Labor Matters 6364 Collateral Documents 6465   USA PATRIOT Act 6465 ARTICLE VI AFFIRMATIVE COVENANTS 6.01 6.02 6.03 6.04   6.05 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18   Financial Statements and Other Reports 6465 Certificates; Other Information   6566 Notices 6768 Payment of Obligations 6869 Preservation of Existence, Etc   6869 Maintenance of Properties 69 Maintenance of Insurance 6970 Compliance   with Laws 7071 Books and Records 7071 Inspection Rights 7071 Use of Proceeds   71 Covenant to Guarantee Obligations and Give Security 7172 Further   Assurances 7273 Lenders Meetings 7374 Designation as Senior Debt 7374   Maintenance of Ratings 7374 Designation of Subsidiaries 7374 Post-Closing   Matters 7374 ARTICLE VII NEGATIVE COVENANTS 7.01 Liens 7475 - ii- 

    

 

Page 7.02 7.03   7.04 7.05 7.06 7.07 7.08 7.09 7.10 7.11 7.12 7.13 7.14 Indebtedness 7677   Investments 7778 Fundamental Changes 8081 Dispositions 8182 Restricted   Payments 8283 Change in Nature of Business 84 Transactions with Affiliates   8485 Burdensome Agreements 8586 Amendments of Material Indebtedness 86 Accounting   Changes 8687 Prepayments, Etc. of Indebtedness 8687 Holding Company 8687 Sale   and Leaseback Transactions 8687 ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES   8.01 8.02 8.03 Events of Default 8788 Remedies upon Event of Default 8990   Application of Funds 8990 ARTICLE IX ADMINISTRATIVE AGENT 9.01 9.02 9.03 9.04   9.05 9.06 9.07 9.08 9.09 9.10 9.11 9.12 9.13 9.14 9.15 Appointment and   Authority 9091 Rights as a Lender 9091 Exculpatory Provisions 9192 Reliance   by Agents 9192 Delegation of Duties 9293 Resignation of Agents 9293   Non-Reliance on Agents and Other Lenders 9293 No Other Duties, Etc. 9394   Administrative Agent May File Proofs of Claim 9394 Collateral and Guaranty   Matters 9394 Notice of Transfer 9495 Agency for Perfection 9495   Indemnification of Agents 9495 Withholding Tax 9495 Relation Among Lenders   9596 ARTICLE X CONTINUING GUARANTY 10.01 10.02 10.03 10.04 10.05 10.06 10.07   10.08 Guaranty 9596 Rights of Lenders 96 Certain Waivers 9697 Obligations   Independent 9697 Subrogation 9697 Termination; Reinstatement 9697   Subordination 9798 Stay of Acceleration 9798 -iii- 

    

 

Page 10.09   Condition of Borrower 9798 ARTICLE XI MISCELLANEOUS 11.01 11.02 11.03 11.04   11.05 11.06 11.07 11.08 11.09 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17   11.18 11.19 11.20 Amendments, Etc. 9798 Notices; Effectiveness; Electronic   Communications 99100 No Waiver; Cumulative Remedies 101102 Expenses;   Indemnity; Damage Waiver 101102 Payments Set Aside 103104 Successors and   Assigns 103104 Treatment of Certain Information; Confidentiality 107108 Right   of Setoff 108109 Interest Rate Limitation 108109 Counterparts; Integration;   Effectiveness 109110 Survival of Representations and Warranties 109110   Severability 109110 Replacement of Lenders 109110 Governing Law;   Jurisdiction; Etc 110111 WAIVER OF JURY TRIAL 111112 No Advisory or Fiduciary   Responsibility 111112 USA PATRIOT Act Notice 112113 No Strict Construction   112113 Attachments 112113 Intercreditor Agreement 112113 SIGNATURES S-1   SCHEDULES 2.01 5.01 5.07(c) 5.07(d)(i) 5.07(d)(ii) 5.07(e) 5.11 5.15 6.12   7.01(b) 7.02 7.09 11.02 Commitments Organization Information Owned Real   Estate Leased Real Estate (Lessee) Leased Real Estate (Lessor) Existing   Investments Subsidiaries and Other Equity Investments Intellectual Property   Rights Guarantors Existing Liens Existing Indebtedness Burdensome Agreements   Administrative Agent’s Office, Certain Addresses for Notices EXHIBITS Form of   A-1 A-2 B Committed Loan Notice Conversion/Continuation Notice Discounted   Prepayment Option Notice - iv- 

    

 

C D E F G H-1   H-2 I J-1 Intercreditor Agreement Compliance Certificate Form of Note   Assignment and Assumption Lender Participation Notice Perfection Certificate   Perfection Certificate Supplement Discounted Voluntary Prepayment Notice U.S.   Tax Certificate For Foreign Lenders That Are Not Partnerships For U.S. Federal   Income Tax Purposes U.S. Tax Certificate For Foreign Lenders That Are   Partnerships For U.S. Federal Income Tax Purposes U.S. Tax Certificate For   Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax   Purposes U.S. Tax Certificate For Foreign Participants That Are Partnerships   For U.S. Federal Income Tax Purposes J-2 J-3 J-4 - v- 

    

 

CREDIT   AGREEMENT This CREDIT AGREEMENT (“Agreement”) is entered into as of April 6,   2012 (and as amended by Amendment No. 1 on April 8, 2013, as amended by   Amendment No. 2 on November 27, 2013, as amended by Amendment No. 3 on May   20, 2016, and as further amended by Amendment No. 34 on May 20, 2016August   18, 2017), among THE CONTAINER STORE, INC., a Texas corporation (the   “Borrower”), the Guarantors party hereto, each lender from time to time party   hereto (collectively, the “Lenders” and individually, a “Lender”) and   JPMORGAN CHASE BANK, N.A. (“JPMCB”), as Administrative Agent and Collateral   Agent. PRELIMINARY STATEMENTS: The proceeds of the Term B-1 Loans borrowed in   respect of the Additional Term B-1 Commitment shall be used on or about the   Amendment No. 24 Effective Date to (i) repay the Initiala like aggregate   principal amount of Term B Loans that are not Converted Initial Loans and   (ii) pay fees and expenses incurred in connection with the consummation of   the foregoingTerm B Loans. In consideration of the mutual covenants and   agreements herein contained, the parties hereto covenant and agree as   follows: ARTICLE I DEFINITIONS AND ACCOUNTING TERMS 1.01 Defined Terms. As   used in this Agreement, the following terms shall have the meanings set forth   below: “ABL Credit Agreement” means the credit agreement governing the ABL   Facility. “ABL Facility” means the $75.0 million senior secured revolving   facility dated as of the Closing Date among the Borrower, the guarantors   party thereto, the lenders party thereto and JPMorgan, as administrative   agent and collateral agent, as it may be amended or modified from time to   time, including amendments increasing the principal amount of revolving loans   available thereunder. “ABL Loan Documents” means the credit agreement   governing the ABL Facility, all mortgages and other security documents   thereunder and the Notes issued thereunder. “ABL Obligations” has the meaning   specified in the Intercreditor Agreement. “ABL Priority Collateral” has the   meaning specified in the Intercreditor Agreement. “Acceptable Discount” has   the meaning provided in Section 2.03(d)(iii). “Acceptance Date” has the   meaning provided in Section 2.03(d)(ii). “Additional Credit Extension   Amendment” means an amendment to this Agreement (which may, at the option of   the Administrative Agent, be in the form of an amendment and restatement of   this Agreement) providing for any Incremental Term Loans, Replacement Loans   or Extended Term Loans which shall be consistent with the applicable   provisions of this Agreement relating to Incremental Term Loans, Replacement   Loans or Extended Term Loans and otherwise reasonably satisfactory to the   Administrative Agent and the Borrower. - 1- 

    

 

“Additional   Term B Commitment” means, with respect to the Additional Term B Lender, its   commitment to make a Term B Loan on the Amendment No. 2 Effective Date in an   amount equal to $329,438,750 minus the aggregate principal amount of the   Converted Initial Loans of all Lenders. “Additional Term B Joinder Agreement”   means the joinder agreement, dated the Amendment No. 2 Effective Date, by and   among the Borrower, the Administrative Agent and the Additional Term B   Lender. “Additional Term B Lender” means the Person identified as such in the   Additional Term B Joinder Agreement. “Additional Term B-1 Commitment” means,   with respect to the Additional Term B-1 Lender, its commitment to make a Term   B-1 Loan on the Amendment No. 4 Effective Date in an amount equal to the   excess of (x) the amount of the Term B-1 loans outstanding immediately after   giving effect to Amendment No. 4 on the Amendment No. 4 Effective Date over   (y) the aggregate principal amount of Converted Term B Loans. “Additional   Term B-1 Joinder Agreement” means the joinder agreement, dated the Amendment   No. 4 Effective Date, by and among the Borrower, the Administrative Agent and   the Additional Term B-1 Lender. “Additional Term B-1 Lender” means the Person   identified as such in the Additional Term B-1 Joinder Agreement.   “Administrative Agent” means JPMCB in its capacity as administrative agent   under any of the Loan Documents, or any successor administrative agent.   “Administrative Agent’s Office” means the Administrative Agent’s address and,   as appropriate, account as set forth on Schedule 11.02, or such other address   or account as the Administrative Agent may from time to time notify the   Borrower and the Lenders. “Administrative Questionnaire” means an Administrative   Questionnaire in a form supplied by the Administrative Agent. “Affiliate”   means, with respect to any Person, another Person that directly, or   indirectly through one or more intermediaries, Controls or is Controlled by   or is under common Control with the Person specified. “Agent Parties” has the   meaning specified in Section 11.02(c). “Agents” means, collectively, the   Administrative Agent and the Collateral Agent. “Aggregate Commitments” means   the sum of the Commitments of all the Lenders. As of the Closing Date, the   Aggregate Commitments are $275.0 million. “Agreement” has the meaning   specified in the introductory paragraph hereto, as amended, restated,   modified or supplemented from time to time in accordance with the terms   hereof. - 2- 

    

 

“Amendment No.   1” means Amendment No. 1 to this Agreement, dated as of April 8, 2013, by and   among the Borrower, the Guarantors, the Administrative Agent, the Collateral   Agent and the Lenders party thereto. “Amendment No. 1 Consenting Lender”   means each Lender that provided the Administrative Agent with a counterpart   to Amendment No. 1 executed by such Lender. “Amendment No. 1 Effective Date”   has the meaning specified in Amendment No. 1. “Amendment No. 1 Lead   Arrangers” means J.P. Morgan Securities LLC, Barclays Bank PLC, Morgan   Stanley Senior Funding, Inc. and Wells Fargo Securities, LLC, in their   capacities as joint lead arrangers and joint bookrunning managers for   Amendment No. 1. “Amendment No. 2” means Amendment No. 2 to this Agreement,   dated as of November 27, 2013, by and among the Borrower, the Guarantors, the   Administrative Agent, the Collateral Agent and the Lenders party thereto.   “Amendment No. 2 Consenting Lender” means each Lender that provided the   Administrative Agent with a counterpart to Amendment No. 2 executed by such   Lender. “Amendment No. 2 Effective Date” has the meaning specified in   Amendment No. 2. “Amendment No. 2 Lead Arrangers” means J.P. Morgan   Securities LLC, Barclays Bank PLC, Morgan Stanley Senior Funding, Inc. and   Wells Fargo Securities, LLC, in their capacities as joint lead arrangers and   joint bookrunning managers for Amendment No. 2. “Amendment No. 4” means   Amendment No. 4 to this Agreement, dated as of August 18, 2017, by and among   the Borrower, the Guarantors, the Administrative Agent, the Collateral Agent   and the Lenders party thereto. “Amendment No. 4 Consenting Lender” means each   Lender that provided the Administrative Agent with a counterpart to Amendment   No. 4 executed by such Lender. “Amendment No. 4 Effective Date” has the   meaning specified in Amendment No. 4. “Amendment No. 4 Lead Arranger” means   JPMorgan Chase Bank, N.A., in its capacity as lead arranger and bookrunning   manager for Amendment No. 4. “Applicable Discount” has the meaning provided   in Section 2.03(d)(iii). “Applicable Margin” means (i) in the case of LIBO   Rate Loans, 3.257.00% per annum and (ii) in the case of Base Rate Loans,   2.256.00% per annum. “Approved Fund” means any Fund that is administered or   managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an   Affiliate of an entity that administers or manages a Lender. “Arrangers”   means J.P. Morgan Securities LLC, Barclays Bank PLC, Morgan Stanley Senior   Funding, Inc. and Wells Fargo Securities, LLC, in their capacities as joint   lead arrangers and joint bookrunning managers on the Closing Date, the   Amendment No. 1 Lead Arrangers and, the Amendment No. 2 Lead Arrangers and   the Amendment No. 4 Lead Arranger. - 3- 

    

 

“Assignee   Group” means two or more Eligible Assignees that are Affiliates of one   another or two or more Approved Funds managed by the same investment advisor.   “Assignment and Assumption” means an assignment and assumption entered into   by a Lender and an Eligible Assignee (with the consent of any party whose consent   is required by Section 11.06(b)(iii)), and accepted by the Administrative   Agent, in substantially the form of Exhibit F or any other form approved by   the Administrative Agent. “Attributable Indebtedness” means, on any date, (a)   in respect of any Capital Lease Obligations of any Person, the capitalized   amount thereof that would appear on a balance sheet of such Person prepared   as of such date in accordance with GAAP, (b) in respect of any Synthetic   Lease Obligation, the capitalized amount of the remaining lease or similar   payments under the relevant lease or other applicable agreement or instrument   that would appear on a balance sheet of such Person prepared as of such date   in accordance with GAAP if such lease or other agreement or instrument were   accounted for as a Capital Lease Obligation and (c) all Synthetic Debt of   such Person. “Audited Financial Statements” means the audited Consolidated   balance sheets and related statements of income, stockholders’ equity and   cash flows for the 2008, 2009 and 2010 Fiscal Years for Holdings ended   February 28, 2009, February 27, 2010 and February 26, 2011 (including its   Consolidated Subsidiaries) (in each case prepared in accordance with GAAP).   “Available Amount” means, at any time (the “Reference Date”), the sum of: (a)   an amount equal to (x) the cumulative amount of Excess Cash Flow (which   amount shall not be less than zero in any Fiscal Year) for each Fiscal Year   of the Borrower ending after the Closing Date minus (y) the portion of such   Excess Cash Flow that has been (or is required to be) applied to the   prepayment of Loans in accordance with Section 2.03(b)(i) (without regard to   any optional prepayment of Loans); plus (b) the amount of any capital   contributions (other than from a Subsidiary) and the Net Cash Proceeds from   Qualified Equity Issuances (other than any amount applied pursuant to Section   7.03(k)) received by the Borrower during the period from and including the   Business Day immediately following the Closing Date through and including the   Reference Date; plus (c) to the extent the Borrower or a Restricted   Subsidiary has made any Investment pursuant to Section 7.03(l), the net   amount of any return on such Investment (whether through dividends,   distributions, sale, cash repayments of principal, or other disposition of   such Investment or the designation of an Unrestricted Subsidiary as a   Restricted Subsidiary) actually received by the Borrower or a Restricted   Subsidiary from such Investment; minus (d) the aggregate amount of any   Investments made pursuant to Sections 7.03(l), any Restricted Payment made   pursuant to Section 7.06(e)(ii) or any payment made pursuant to Section   7.12(d) during the period commencing on the Closing Date and ending on the   Reference Date (and, for purposes of this clause (d), without taking account   of the intended usage of the Available Amount on such Reference Date in the   contemplated transaction). “Bail-In Action” means the exercise of any   Write-Down and Conversion Powers by the applicable EEA Resolution Authority   in respect of any liability of an EEA Financial Institution. “Bail-In   Legislation” means, with respect to any EEA Member Country implementing   Article 55 of Directive 2014/59/EU of the European Parliament and of the   Council of the - 4- 

    

 

European Union,   the implementing law for such EEA Member Country from time to time which is   described in the EU Bail-In Legislation Schedule “Bank Products” means any   services or facilities provided to any Loan Party by any Agent, Lender,   Former Lender or any Affiliate of an Agent, Lender or Former Lender (but   excluding Cash Management Services) on account of (a) Swap Contracts, (b)   purchase cards and (c) merchant services constituting a line of credit. “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 Federal FundsNYFRB Rate in effect   on such day plus 1⁄2 of 1%, (c) the LIBO Rate for a one month interest period   on such day (or if such day is not a Business Day, the immediately preceding   Business Day) plus 1%, provided that, for the avoidance of doubt, the LIBO   Rate for any day shall be based on the rate appearing on the Reuters Screen   LIBOR01 Page (or on any successor or substitute page) at approximately 11:00   a.m. London time on such day (without any rounding) and (d) 2.00%. Any change   in the Base Rate due to a change in the Prime Rate, the Federal FundsNYFRB   Rate or the LIBO Rate shall be effective from and including the effective   date of such change in the Prime Rate, the Federal FundsNYFRB Rate or the LIBO   Rate, respectively. “Base Rate Loan” means a Loan that bears interest based   on the Base Rate. “Borrower” has the meaning specified in the introductory   paragraph hereto. “Borrower Materials” has the meaning provided in Section   6.02. “Borrowing” means a borrowing consisting of simultaneous Loans of the   same Type and, in the case of LIBO Rate Loans, having the same Interest   Period made by each of the Lenders pursuant to Section 2.01(a) or Section   2.01(b), as applicable. “Business Day” means any day other than a Saturday,   Sunday or other day on which commercial banks are authorized to close under   the Laws of, or are in fact closed in, the state where the Administrative   Agent’s Office is located and, if such day relates to any LIBO Rate Loan,   means any such day on which dealings in Dollar deposits are conducted by and   between banks in the London interbank market. “Capital Expenditures” means,   with respect to any Person for any period, any expenditure in respect of the   purchase or other acquisition of any fixed or capital asset (excluding normal   replacements and maintenance which are properly charged to current   operations) which is, or should be in accordance with GAAP, reflected as a   “capital expenditure” in a Consolidated statement of cash flows of such   Person for the period in which such expenditure occurs, provided that   “Capital Expenditures” shall not include (a) any such expenditures which are   contractually required to be, and are, reimbursed to the Loan Parties in cash   by landlords with respect to such period of calculation, (b) any such   expenditure with the proceeds from any casualty insurance or condemnation or   eminent domain, to the extent that the proceeds therefrom are utilized for   Capital Expenditures within twelve months of the receipt of such proceeds,   (c) any such expenditure with the proceeds or consideration received from any   trade in of any Loan Party’s assets, or (d) any such expenditures which   constitute a Permitted Acquisition. “Capital Lease Obligations” means, with   respect to any Person, the obligation of such Person to pay rent or other   amounts under any lease of (or other arrangement conveying the right to use)   real or personal property, or a combination thereof, which obligations are   required to be classified and accounted for as capital leases on a balance   sheet of such Person under GAAP as in effect on the Closing - 5- 

    

 

Date, and the   amount of such obligations shall be the capitalized amount thereof determined   in accordance with GAAP as in effect on the Closing Date. “Cash Equivalents”   means any of the following types of Investments, to the extent owned by   Holdings, the Borrower, or any of their respective Restricted Subsidiaries:   (a) readily marketable obligations issued or directly and fully guaranteed or   insured by the United States of America or any agency or instrumentality   thereof having maturities of not more than 360 days from the date of   acquisition thereof; provided that the full faith and credit of the United   States of America is pledged in support thereof; (b) time deposits with, or   insured certificates of deposit or bankers’ acceptances of, any commercial   bank that (i) (A) is a Lender that offers such deposits, certificates of   deposit or bankers’ acceptances in the ordinary course of such Lender’s   business or (B) is organized under the laws of the United States of America,   any state thereof or the District of Columbia or is the principal banking   subsidiary of a bank holding company organized under the laws of the United   States of America, any state thereof or the District of Columbia, and is a   member of the Federal Reserve System, (ii) issues (or the parent of which   issues) commercial paper rated as described in clause (c) of this definition   and (iii) has combined capital and surplus of at least $1.0 billion, in each   case with maturities of not more than 180 days from the date of acquisition   thereof; (c) commercial paper issued by any Person organized under the laws   of any state of the United States of America and rated at least “Prime-1” (or   the then equivalent grade) by Moody’s or at least “A-1” (or the then   equivalent grade) by S&P, in each case with maturities of not more than   180 days from the date of acquisition thereof; (d) Investments, classified in   accordance with GAAP as current assets of Holdings, the Borrower, or any of   their respective Restricted Subsidiaries, in money market investment programs   registered under the Investment Company Act of 1940, which are administered   by financial institutions that have the highest rating obtainable from either   Moody’s or S&P, and the portfolios of which are limited solely to   Investments of the character, quality and maturity described in clauses (a),   (b) and (c) of this definition; and (e) in the case of any Foreign   Subsidiary, investments of comparable tenor and credit quality to those   described in the foregoing clauses (a) through (d) customarily utilized in   countries in which such Foreign Subsidiary operates for short term cash   management purposes. “Cash Management Services” means any one or more of the   following types of services or facilities provided to any Loan Party by any   Agent, Lender, Former Lender or any Affiliate of an Agent, Lender or Former   Lender: (a) ACH transactions, (b) cash management services, including,   without limitation, controlled disbursement services, treasury, depository,   overdraft, and electronic funds transfer services, (c) foreign exchange   facilities, (d) credit or debit cards, and (e) merchant services not   constituting a Bank Product. “CERCLA” means the Comprehensive Environmental   Response, Compensation and Liability Act of 1980. “CERCLIS” means the   Comprehensive Environmental Response, Compensation and Liability Information   System maintained by the U.S. Environmental Protection Agency. - 6- 

    

 

“CFC” means a   Person that is a controlled foreign corporation under Section 957 of the   Code. “Change in Law” means the occurrence, after the date of this Agreement,   of any of the following: (a) the adoption or taking effect of any law, rule,   regulation or treaty, (b) any change in any law, rule, regulation or treaty   or in the administration, interpretation or application thereof by any   Governmental Authority or (c) the making or issuance of any request,   guideline or directive (whether or not having the force of law) by any Governmental   Authority; provided that notwithstanding anything herein to the contrary, (x)   the Dodd-Frank Wall Street Reform and Consumer Protection Act and all   requests, rules, guidelines or directives thereunder or issued in connection   therewith and (y) 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   regulatory authorities, in each case pursuant to Basel III, shall in each   case be deemed to be a “Change in Law”, regardless of the date enacted,   adopted or issued. “Change of Control” means an event or series of events by   which: (a) at any time prior to the creation of a Public Market, the Sponsor,   Affiliates of the Sponsor (other than any portfolio company thereof) and the   Management Stockholders (collectively, the “Permitted Holders”) shall cease   to own and control legally and beneficially, either directly or indirectly,   equity securities in Holdings representing more than 50% of the combined   voting power of all equity securities entitled to vote for members of the   board of directors or equivalent governing body of Holdings on a   fully-diluted basis (and taking into account all such securities that the   Permitted Holders have the right to acquire pursuant to any option right (as   defined in clause (b) below)); or(b) at any time upon or after the creation   of a Public Market, any “person” or “group” (as such terms are used in   Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but   excluding any employee benefit plan of such Person or its subsidiaries, and   any Person acting in its capacity as trustee, agent or other fiduciary or   administrator of any such plan that in each case is not acting in concert   with another Person) other than the Permitted Holders becomes the “beneficial   owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act   of 1934, except that a person or group shall be deemed to have “beneficial   ownership” of all securities that such person or group has the right to   acquire, whether such right is exercisable immediately or only after the   passage of time (such right, an “option right”)), directly or indirectly, of   the greater of (x) 35% or more of the equity securities of Holdings entitled   to vote for members of the board of directors or equivalent governing body of   Holdings on a fully-diluted basis (and taking into account all such   securities that such “person” or “group” has the right to acquire pursuant to   any option right) and (y) a percentage that is greater than the percentage of   the equity securities of Holdings entitled to vote for members of the board   of directors or equivalent governing body of Holdings that is then   beneficially owned by the Permitted Holders; or (c) during any period of 12   consecutive months, a majority of the members of the board of directors or   other equivalent governing body of Holdings cease to be composed of   individuals (i) who were members of that board or equivalent governing body   on the first day of such period, (ii) whose election or nomination to that   board or equivalent governing body was approved by individuals referred to in   clause (i) above constituting at the time of such election or nomination at   least a majority of that board or equivalent governing body or (iii) whose   election or nomination to that board or other equivalent governing body was   approved by individuals referred to in clauses (i) and (ii) above   constituting at the time of such election or nomination at least a majority   of that board or equivalent governing body; or(db) Holdings shall cease, - 7-   

    

 

directly or   indirectly, to own and control legally and beneficially all of the Equity   Interests in the Borrower; or (ec) a “change of control” or any comparable   term under, and as defined in, the ABL Loan Documents or any other   instrument, document or agreement governing Material Indebtedness shall have   occurred, in any case that gives the holders thereof the right to require   Holdings or any of its Subsidiaries to repurchase, offer to repurchase or   immediately repay such Indebtedness. “Class” when used in reference to any   Loan or Borrowing, refers to whether such Loan, or the Loans comprising such   Borrowing, are Initial Loans, Term B-1 Loans, Incremental Term Loans of any   series, Extended Term Loans of any series or Replacement Loans of any series.   “Closing Date” means the first date all the conditions precedent in Section   4.01 are satisfied or waived in accordance with Section 11.01.April 6, 2012.   “Code” means the Internal Revenue Code of 1986, as amended. “Co-Documentation   Agent” means Barclays Bank PLC, Morgan Stanley Senior Funding, Inc. and Wells   Fargo Bank, N.A., each in its capacity as co-documentation agent under any of   the Loan Documents, or any successor co-documentation agent. “Collateral”   means all of the “Collateral” and “Mortgaged Property” or “Trust Property,”   as applicable, referred to in the Collateral Documents and all of the other   property that is or is intended under the terms of the Collateral Documents   to be subject to Liens in favor of the Collateral Agent for the benefit of   the Credit Parties. “Collateral Agent” means JPMCB in its capacity as   collateral agent under any of the Loan Documents, or any successor collateral   agent as provided in Section 9.01(b). “Collateral Documents” means,   collectively, the Security Agreement, the Pledge Agreement, the Swedish   Pledge Agreement, the Intellectual Property Security Agreement, the   Mortgages, the Intercreditor Agreement, each of the Mortgages, collateral   assignments, security agreements, pledge agreements, control agreements or   other similar agreements delivered to the Collateral Agent pursuant to   Section 6.12, and each of the other agreements, instruments or documents that   creates or purports to create a Lien in favor of the Collateral Agent for the   benefit of the Credit Parties. “Commitment” means, as to each Lender, its   obligation to make Loans to the Borrower pursuant to Section 2.01 in an   aggregate principal amount at any one time outstanding not to exceed the   amount set forth opposite such Lender’s name on Schedule 2.01 under the   caption “Commitment” or in the applicable Additional Credit Extension   Amendment or opposite the “Commitment” caption or in the Assignment and   Assumption pursuant to which such Lender becomes a party hereto, as   applicable, as such amount may be adjusted from time to time in accordance   with this Agreement. Unless the context shall otherwise require, the term   “Commitment” shall include the Incremental Term Loan Commitments, the   Additional Term B Commitment and the Additional Term B-1 Commitment.   “Committed Loan Notice” means a notice of a Borrowing, which, if in writing,   shall be substantially in the form of Exhibit A-l. “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. - 8- 

    

 

“Compliance   Certificate” means a certificate substantially in the form of Exhibit D with   such modifications thereto as may be mutually agreed by the Administrative   Agent and the Borrower to reflect the amendments to this Agreement pursuant   to Amendment No. 2. “Consolidated” means, when used to modify a financial   term, test, statement, or report of a Person, the application or preparation   of such term, test, statement or report (as applicable) based upon the   consolidation, in accordance with GAAP, of the financial condition or   operating results of such Person and its Subsidiaries. “Consolidated EBITDA”   means, at any date of determination, an amount equal to Consolidated Net   Income of Holdings and its Restricted Subsidiaries for the most recently   completed Measurement Period plus (a) the following to the extent deducted in   calculating Consolidated Net Income for such Measurement Period: (i)   Consolidated Interest Charges, (ii) the provision for Federal, state, local   and foreign income taxes payable, (iii) depreciation and amortization   expense, (iv) non-cash stock compensation paid to officers, directors,   employees or consultants during such Measurement Period, (v) all non-cash   losses from Dispositions during such Measurement Period, other than   Dispositions of inventory in the ordinary course of business, (vi)   Transaction Expenses, (vii) expenses incurred in connection with the   prepayment, amendment, or refinancing of Indebtedness during such Measurement   Period, (viii) non-cash expenses related to LIFO/LCM reserves and non-cash   rent, (ix) any non-cash purchase accounting adjustments made in connection   with any acquisition permitted by this Agreement, (x) Management Fees for   such Measurement Period, (xi) expenses incurred during such Measurement Period   in connection with closed stores, store closings, and store relocations in an   amount not to exceed $5.0 million in the aggregate in such Measurement   Period, (xii) all transactional costs, expenses and charges payable to   non-Affiliated third parties and made at the time of, and in connection with,   any acquisition (whether or not consummated) in an amount not to exceed $5.0   million in the aggregate during such Measurement Period, (xiii) any expenses   or charges related to any issuance of Equity Interests, Investment,   acquisition, disposition, recapitalization or the incurrence or repayment of   Indebtedness (including with respect to Indebtedness, a refinancing thereof,   whether or not successful), in each case permitted to be incurred or made   hereunder and any amendment or modification to the terms of any such   transactions, including such fees, expenses or charges related to the   Transaction, (xiv) non-cash losses (minus any non-cash gains) with respect to   Swap Contracts during such Measurement Period, (xv) extraordinary, unusual or   non-recurring expenses, charges or losses during such period (as determined   by the Borrower in good faith, it being understood that Item 10(e) of   Regulation S-K under the Securities Act shall not constitute a limitation on   any such determination), and (xvi) pre-opening and grand opening expenses in   an amount not to exceed $10.0 million in such Measurement Period; and minus   (b) (i) to the extent included in calculating Consolidated Net Income for   such Measurement Period, all non-recurring, non-cash items increasing   Consolidated Net Income (excluding any non-cash items that result in an   accrual of a reserve for cash items in any future period) (in each case of or   by Holdings and its Restricted Subsidiaries for such Measurement Period), and   (ii) non-cash gains from Dispositions other than Dispositions of inventory in   the ordinary course of business, provided that Consolidated EBITDA shall be   deemed to be $24,906,050, $7,621,086, $16,544,906 and $21,820,837 for the   Fiscal Quarters ended February 26, 2011, May 28, 2011, August 27, 2011 and   November 26, 2011, respectively (without pro forma adjustments for the   acquisition of The Container Store Services, LLC). “Consolidated Interest   Charges” means, for any Measurement Period, Consolidated interest expense   (net of interest income) of Holdings and its Restricted Subsidiaries   determined in accordance with GAAP. - 9- 

    

 

“Consolidated   Leverage Ratio” means, as of any date of determination, the ratio of (a)   Total Debt as of such date to (b) Consolidated EBITDA for the most recently   completed Measurement Period. “Consolidated Net Income” means, at any date of   determination, the net income (or loss) of Holdings and its Restricted   Subsidiaries on a Consolidated basis for the most recently completed   Measurement Period; provided that Consolidated Net Income shall exclude (a)   extraordinary non-cash gains and extraordinary non-cash losses for such   Measurement Period, (b) the net income of any Subsidiary during such   Measurement Period to the extent that the declaration or payment of dividends   or similar distributions by such Subsidiary of such income is not permitted   by operation of the terms of its Organization Documents or any agreement,   instrument or Law applicable to such Subsidiary during such Measurement   Period (provided that this clause (b) shall not, with respect to any Foreign   Subsidiary, exclude income that can only be distributed following the   adoption of the relevant annual accounts or Consolidated annual accounts for   such Foreign Subsidiary’s Fiscal Year), except that Consolidated Net Income   shall be reduced to the extent of any equity held by Holdings or any of its   Restricted Subsidiaries in any net loss of any such Subsidiary for such   Measurement Period, (c) the income (or loss) of any Person during such   Measurement Period and accrued prior to the date it becomes a Subsidiary of   Holdings or its Restricted Subsidiaries or is merged into or Consolidated   with Holdings or a Restricted Subsidiary or that Person’s assets are acquired   by Holdings or any of its Restricted Subsidiaries, (d) any income (or loss)   for such period of any Person if such Person is not a Restricted Subsidiary   of Holdings, except that Consolidated Net Income shall be increased by the   aggregate amount of cash actually distributed by such Person during such   Measurement Period to Holdings or a Restricted Subsidiary as a dividend or   other distribution (and in the case of a dividend or other distribution to a   Restricted Subsidiary which is not a Loan Party, such Restricted Subsidiary   is not precluded from further distributing such amount to the Borrower as   described in clause (b) of this proviso), and (e) the cumulative effect of   changes in accounting principles. “Contractual Obligation” means, as to any   Person, any provision of any security issued by such Person or of any   agreement, instrument or other undertaking to which such Person is a party or   by which it or any of its property is bound. “Control” means the possession,   directly or indirectly, of the power to direct or cause the direction of the   management or policies of a Person, whether through the ability to exercise   voting power, by contract or otherwise. “Controlling” and “Controlled” have   meanings correlative thereto. “Conversion/Continuation Notice” means a notice   of (a) a conversion of Loans from one Type to the other, or (b) a   continuation of LIBO Rate Loans, pursuant to Section 2.02(c), which, if in   writing, shall be substantially in the form of Exhibit A-2. “Converted   Initial Loan” means each Initial Loan held by an Amendment No. 2 Consenting   Lender on the Amendment No. 2 Effective Date immediately prior to the   effectiveness of Amendment No. 2 (or, if less, the amount notified to such   Lender by the Administrative Agent prior to the Amendment No. 2 Effective   Date). “Converted Term B Loan” means each Term B Loan held by an Amendment   No. 4 Consenting Lender on the Amendment No. 4 Effective Date immediately   prior to the effectiveness of Amendment No. 4. “Credit Party” means,   individually, and “Credit Parties” means, collectively, the following: (a)   the Lenders and their Affiliates, (b) the Agents, each co-agent or sub-agent   appointed by - 10- 

    

 

the   Administrative Agent from time to time pursuant to Section 9.05, (c) the   Arrangers, (d) the beneficiaries of each indemnification obligation   undertaken by any Loan Party under any Loan Document, (e) any other Person to   whom Obligations under this Agreement and other Loan Documents are owing and   (f) the successors and assigns of each of the foregoing. “Credit Party   Expenses” means, without limitation, (a) all reasonable and documented in   reasonable detail out-of-pocket expenses incurred by the Agents, the   Arrangers, the Co-Documentation Agents and their respective Affiliates, in   connection with this Agreement and the other Loan Documents, including   without limitation (i) the reasonable and documented in reasonable detail   fees, charges and disbursements of (A) counsel for the Agents and the   Arrangers, provided that the Agents and the Arrangers shall be entitled to be   reimbursed for no more than one counsel and, if reasonably necessary, for one   local counsel in each relevant jurisdiction material to the interest of the   Lenders, in each case, selected by the Agent, absent a conflict of interest   between any of such Persons where the affected Persons inform the Borrower of   such conflict, in which case the affected Persons may engage and be   reimbursed for one additional counsel, (B) outside consultants for the   Agents, (C) appraisers, and (D) all such out-of-pocket expenses incurred   during any workout, restructuring or negotiations in respect of the   Obligations and (ii) in connection with (A) the syndication of the credit   facilities provided for herein, (B) the preparation, negotiation,   administration, management, execution and delivery of this Agreement and the   other Loan Documents or any amendments, modifications or waivers of the   provisions thereof (whether or not the transactions contemplated hereby or   thereby shall be consummated), (C) the enforcement or protection of their   rights in connection with this Agreement or the Loan Documents or efforts to   preserve, protect, collect, or enforce the Collateral, or (D) any workout,   restructuring or negotiations in respect of any Obligations and (b) all   reasonable and documented in reasonable detail out-of-pocket expenses   incurred by the Credit Parties who are not the Agents, the Arrangers, the   Co-Documentation Agents or any Affiliate of any of them, after the occurrence   and during the continuance of an Event of Default, provided that such Credit   Parties shall be entitled to reimbursement for no more than one counsel   representing all such Credit Parties (absent a conflict of interest between   the Credit Parties, where the affected Credit Parties inform the Borrower of such   conflict, in which case the Credit Parties may engage and be reimbursed for   one additional counsel). “Debtor Relief Laws” means the Bankruptcy Code of   the United States, and all other liquidation, conservatorship, bankruptcy,   assignment for the benefit of creditors, moratorium, rearrangement,   receivership, insolvency, reorganization, or similar debtor relief Laws of   the United States or other applicable jurisdictions from time to time in   effect and affecting the rights of creditors generally. “Declined Proceeds”   has the meaning specified in Section 2.03(b)(v). “Default” means any event or   condition that constitutes an Event of Default or that, with the giving of   any notice, the passage of time, or both, would be an Event of Default.   “Default Rate” means an interest rate equal to (i) the Base Rate plus (ii)   the Applicable Margin applicable to Base Rate Loans plus (iii) 2% per annum;   provided, however, that with respect to a LIBO Rate Loan, the Default Rate   shall be an interest rate equal to the interest rate (including any   Applicable Margin) otherwise applicable to such Loan plus 2% per annum.   “Defaulting Lender” means any Lender that (a) has failed to fund any portion   of the Loans required to be funded by it hereunder within two Business Days   of the date required to be funded by it hereunder, unless such Lender   notifies the Administrative Agent in writing that such failure is the result   of such Lender’s good faith determination that a condition precedent to   funding (specifically - 11- 

    

 

identified in   writing, including, if applicable, by reference to a specific Default) has   not been satisfied, (b) has otherwise failed to pay over to the   Administrative Agent or any other Lender any other amount required to be paid   by it hereunder within two Business Days of the date when due, unless the   subject of a good faith dispute, or (c) has (i) become the subject of a   bankruptcy or insolvency proceeding or (ii) become the subject of a Bail-In   Action. “Discharge of ABL Obligations” has the meaning specified in the   Intercreditor Agreement. “Discounted Prepayment Option Notice” has the   meaning provided in Section 2.03(d)(ii). “Discounted Voluntary Prepayment”   has the meaning provided in Section 2.03(d)(i). “Discounted Voluntary   Prepayment Notice” has the meaning provided in Section 2.03(d)(v).   “Disposition” or “Dispose” means the sale, transfer, license, lease, or other   disposition (including any sale and leaseback transaction) of any property   (including, without limitation, any Equity Interests or Disqualified Equity   Interests of any other Person held by a specified Person) by any Person,   including any sale, assignment, transfer or other disposal, with or without   recourse, of any notes or accounts receivable or any rights and claims   associated therewith, in each case, resulting in consideration to such Person   (including assumption of liabilities) for any such transaction or series of   related transactions in excess of $1.0 million. “Disqualified Equity   Interests” means any Equity Interests of any Person that, by its terms (or by   the terms of any security into which it is convertible or for which it is   exchangeable at the option of the holder thereof), or upon the happening of   any event, (a) matures or is mandatorily redeemable, pursuant to a sinking   fund obligation or otherwise, or is redeemable at the option of the holder   thereof, in whole or in part, in each case prior to the six month anniversary   of the Maturity Date, (b) requires the payment of any cash dividend or any   other scheduled payment constituting a return of capital, in each case prior   to the six month anniversary of the Maturity Date, or (c) is convertible into   or exchangeable for debt securities or for any Equity Interest referred to in   clause (a) above, in each case at any time prior to the six month anniversary   of the Maturity Date. “Dollar” and “$” mean lawful money of the United   States. “Domestic Subsidiary” means any Subsidiary that is organized or   existing under the laws of the United States, any state thereof or the   District of Columbia. “EEA Financial Institution” means (a) any institution   established in any EEA Member Country which is subject to the supervision of   an EEA Resolution Authority, (b) any entity established in an EEA Member   Country which is a parent of an institution described in clause (a) of this   definition, or (c) any institution established in an EEA Member Country which   is a subsidiary of an institution described in clauses (a) or (b) of this   definition and is subject to consolidated supervision with its parent; “EEA   Member Country” means any of the member states of the European Union,   Iceland, Liechtenstein, and Norway. - 12- 

    

 

“EEA Resolution   Authority” means any public administrative authority or any Person entrusted   with public administrative authority of any EEA Member Country (including any   delegee) having responsibility for the resolution of any EEA Financial   Institution. “Eligible Assignee” means (a) a Credit Party or any of its   Affiliates; (b) a bank, insurance company, or company engaged in the business   of making commercial loans, which Person, together with its Affiliates, has a   combined capital and surplus in excess of $250.0 million; (c) an Approved   Fund; (d) any Person to whom a Credit Party assigns its rights and   obligations under this Agreement as part of an assignment and transfer of   such Credit Party’s rights in and to a material portion of such Credit   Party’s portfolio of term loan credit facilities and (e) any other Person   (other than a natural person) approved by (i) the Administrative Agent and   (ii) unless an Event of Default under Section 8.01(a) or 8.01(f) has occurred   and is continuing, the Borrower (each such approval not to be unreasonably   withheld or delayed); provided that notwithstanding the foregoing, “Eligible   Assignee” shall not include a Loan Party or any of the Loan Parties’   Affiliates or Subsidiaries (other than a Sponsor Affiliated Lender).   “Environmental Laws” means any and all Federal, state, local and foreign   statutes, laws, regulations, ordinances, rules, common law, judgments,   orders, decrees, permits, concessions, grants, franchises or licenses,   relating to pollution or the protection of the environment or the Release or   threat of Release of any hazardous substances, materials or wastes (including   Hazardous Materials) into the environment or human health (to the extent   related to exposure to Hazardous Materials), or generation, storage,   treatment, transport or handling of any Hazardous Materials. “Environmental   Liability” means any liability, whether pending or threatened (including any   liability for damages, costs of environmental remediation, fines, penalties   or indemnities), of the Borrower, any other Loan Party or any of their   respective Restricted Subsidiaries directly or indirectly resulting from or   based upon (a) violation of any Environmental Law, (b) the generation, use,   handling, transportation, storage, treatment or disposal of any Hazardous   Materials, (c) exposure to any Hazardous Materials, (d) the Release or   threatened Release of any Hazardous Materials into the environment or (e) any   contract, agreement or other consensual arrangement pursuant to which   liability is assumed or imposed with respect to any of the foregoing.   “Environmental Permit” means any permit, approval, identification number,   license or other authorization required under any Environmental Law. “Equity   Interests” means, with respect to any Person, all of the shares of capital   stock of (or other ownership or profit interests in) such Person, all of the   warrants, options or other rights for the purchase or acquisition from such   Person of shares of capital stock of (or other ownership or profit interests   in) such Person, all of the securities convertible into or exchangeable for   shares of capital stock of (or other ownership or profit interests in) such   Person or warrants, rights or options for the purchase or acquisition from   such Person of such shares (or such other interests), and all of the other   ownership or profit interests in such Person (including partnership, member   or trust interests therein), whether voting or nonvoting, and whether or not   such shares, warrants, options, rights or other interests are outstanding on   any date of determination. “Equity Investors” means Holdings, the Sponsor and   the Management Stockholders. “ERISA” means the Employee Retirement Income   Security Act of 1974, as amended. - 13- 

    

 

“ERISA   Affiliate” means any entity under common control with which Holdings or the   Borrower would be treated as a single employer within the meaning of Section   414 of the Code. “ERISA Event” means (a) a Reportable Event with respect to a   Pension Plan; (b) a withdrawal by Holdings, the Borrower or any ERISA   Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan   year in which it was a substantial employer (as defined in Section 4001(a)(2)   of ERISA) or a cessation of operations that is treated as such a withdrawal   under Section 4062(e) of ERISA; (c) with respect to any Pension Plan, a   failure to satisfy the minimum funding standard under Sections 412 and 430 of   the Code or Sections 302 and 303 of ERISA, whether or not waived; (d) a   determination that any Pension 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); (e) a complete or partial withdrawal (within the meanings of Sections   4203 and 4205 of ERISA) by Holdings, the Borrower or any ERISA Affiliate from   a Multiemployer Plan or receipt by Holdings or the Borrower of notice from   any Multiemployer Plan that it is insolvent or in reorganization (within the   meanings of Sections 4241 and 4245 of ERISA) or in “endangered” or “critical”   status (within the meaning of Section 432 of the Code or Section 305 of   ERISA); (f) the filing of a notice of intent to terminate, the treatment of a   Plan amendment as a termination under Section 4041 or 4041A of ERISA, or the   commencement of proceedings by the PBGC to terminate under Section 4042 of   ERISA a Pension Plan or Multiemployer Plan; (g) the appointment of a trustee   to administer under Section 4042 of ERISA any Pension Plan or Multiemployer   Plan; or (h) with respect to any Pension Plan the imposition of a lien or the   posting of a bond or other security pursuant to Section 436(f) of the Code or   Section 206(g)(5) of ERISA. “Event of Default” has the meaning specified in   Section 8.01. An “Event of Default” shall be deemed to be continuing unless   and until that Event of Default has been duly waived as provided in Section   11.01. “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. “Excess Cash Flow” means, for any Fiscal Year of   Holdings, the sum (without duplication) of: (a) the Consolidated Net Income   (or loss) of Holdings and its Restricted Subsidiaries for such Fiscal Year,   adjusted (i) to exclude any gains or losses attributable to any events as a   result of which a mandatory prepayment (other than from Excess Cash Flow) of   the Facility is required and (ii) to subtract the amount, if any, by which   taxes paid or required to be paid in cash with respect to such Fiscal Year   exceeds the amount of taxes deducted in calculating Consolidated Net Income   and to add the amount, if any, by which taxes paid or required to be paid   with respect to such Fiscal Year in cash are less than the amount deducted in   calculating Consolidated Net Income; plus (b) depreciation, amortization and   other non-cash charges or losses deducted in determining such Consolidated   Net Income (or loss) for such Fiscal Year; plus (c) the amount, if any, by   which Net Working Capital decreased during such Fiscal Year (except as a   result of the reclassification of items from short-term to long-term or   vice-versa); minus - 14- 

    

 

 

(d) the amount,   if any, by which Net Working Capital increased during such Fiscal Year   (except as a result of the reclassification of items from short-term to   long-term or vice-versa); minus (e) cash expenditures of Holdings and its   Restricted Subsidiaries for and incurred in connection with Permitted   Acquisitions or Investments pursuant to Section 7.03(l) during such Fiscal   Year (except to the extent financed with the proceeds of Indebtedness, equity   issuances, casualty proceeds, condemnation proceeds or other proceeds that   would not be included in Consolidated Net Income (or loss) for such Fiscal   Year); minus (f) permanent repayments of Indebtedness (including any premium,   make-whole or other penalty associated therewith) other than, solely for the   purposes of Section 2.03(b), Indebtedness hereunder, made in cash by the   Restricted Subsidiaries during such Fiscal Year and permitted hereunder, but   only to the extent that the Indebtedness so prepaid by its terms cannot be   reborrowed or redrawn and such prepayments do not occur in connection with a   refinancing of all or any portion of such Indebtedness; minus (g) cash   payments by the Borrower and the Restricted Subsidiaries during such period   in respect of long-term liabilities of the Borrower and the Restricted   Subsidiaries (other than Indebtedness) to the extent such payments are not   expensed during such period; minus (h) the amount expended in respect of   voluntary prepayments of Loans made pursuant to Section 2.03(d) (other than   in connection with a refinancing); minus (i) Restricted Payments made in cash   by the Borrower during such Fiscal Year pursuant to Section 7.06(c) or (d);   minus (j) Capital Expenditures actually made in cash by Holdings and its   Restricted Subsidiaries in such Fiscal Year (except to the extent financed   with the proceeds of Indebtedness, equity issuances, casualty proceeds,   condemnation proceeds or other proceeds that would not be included in   Consolidated Net Income (or loss) for such Fiscal Year); minus (k) any   non-cash gains included in determining such Consolidated Net Income (or loss)   for such Fiscal Year. “Excluded Swap Obligation” means, with respect to any   Loan Party, any Swap Obligation if, and to the extent that, all or a portion   of the guarantee of such Loan Party of, or the grant by such Loan Party 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 Loan   Party’s failure for any reason to constitute an “eligible contract   participant” as defined in the Commodity Exchange Act and the regulations   thereunder at the time such Loan Party’s obligations under the last paragraph   of Section 10.01 become effective with respect to such related Swap   Obligation. “Excluded Taxes” means, with respect to the Agents, any Lender or   any other recipient of any payment to be made by or on account of any   obligation of the Borrower hereunder, (a) taxes imposed on or measured by its   overall net income (however denominated), franchise taxes imposed on it (in   lieu of net income taxes) and branch profits taxes (or similar taxes) imposed   by a jurisdiction (or any political subdivision thereof) as a result of such   recipient being organized or resident in, maintaining a - 15- 

    

 

Lending Office   in, or doing business in such jurisdiction, (b) in the case of a Foreign   Lender (other than an assignee pursuant to a request by the Borrower under   Section 11.13), any U.S. federal withholding tax to the extent imposed on   amounts payable to such Foreign Lender at the time such Foreign Lender   becomes a party hereto (or designates a new Lending Office) except to the   extent that such Foreign Lender (or its assignor, if any) was entitled, at   the time of designation of a new Lending Office (or assignment), to receive   additional amounts from the Borrower with respect to such withholding tax   pursuant to Section 3.01; (c) taxes attributable to a Lender’s failure to   comply with Section 3.01(e) or (f) and (d) any U.S. federal withholding tax   imposed as a result of such recipient’s failure to establish a complete   exemption under FATCA. “Existing ABL Facility” means the credit agreement   governing the $75.0 million senior secured revolving facility dated as of   August 16, 2007, among the Borrower, the guarantors party thereto, the   lenders party thereto and JPMorgan as administrative agent and collateral   agent, as amended or modified from time to time. “Existing Mezzanine Notes”   means the Borrower’s $150.0 million mezzanine notes issued under the existing   Mezzanine Securities Purchase Agreement dated August 16, 2007, as amended and   any exchange notes issued in replacement therefor. “Existing Term Loan Class”   has the meaning set forth in Section 2.13(a). “Existing Term Loan Facility”   means the credit agreement governing the $125.0 million senior secured term   loan facility dated as of August 16, 2007, among the Borrower, the guarantors   party thereto, the lenders party thereto and JPMorgan as administrative agent   and collateral agent, as amended or modified from time to time. “Extended   Term Loans” has the meaning set forth in Section 2.13(a). “Extending Term   Lender” has the meaning set forth in Section 2.13(c). “Extension Election”   has the meaning set forth in Section 2.13(c). “Extension Request” has the   meaning provided in Section 2.13(a). “Extraordinary Receipt” means any cash   received by or paid to any Person in respect of proceeds of insurance (other   than (i) proceeds of business interruption insurance to the extent such   proceeds constitute compensation for lost earnings and (ii) in respect of any   leased property (or assets located on such leased property) to the extent   that such proceeds are required to be paid to the landlord of such Person   pursuant to the terms of the Lease for such leased property) and condemnation   awards (and payments in lieu thereof), in each case, to the extent the amount   of cash received by or paid to such person is at least $1.0 million.   “Facility” means the Commitments and Loans under this Agreement. “FATCA”   means Sections 1471 through 1474 of the Code as in effect on the date hereof   (including, for the avoidance of doubt, any agreements between governmental   authorities implementing such provisions) or any successor provision that is   substantively comparable and not materially more onerous to comply with, and,   in each case, any current or future regulations promulgated thereunder or   official interpretations thereof and any agreements entered into pursuant to   Section 1471(b)(i) of the Code and any intergovernmental agreements (together   with any law implementing such agreements). - 16- 

    

 

“Federal Funds   Effective Rate” means, for any day, the rate per annum equal to the weighted   average of the rates on overnight Federalcalculated by the NYFRB based on   such day’s 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;by depositary institutions, as determined in such manner as the NYFRB   shall set forth on its public website from time to time, and published on the   next succeeding Business Day by the NYFRB as the federal funds effective   rate, provided that (a) if such day is not a Business Day, the Federal Funds   Rate for such day shall be such rate on such transactions on the next   preceding Business Day as so published on the next succeeding Business Day,   and (b) if no such rate is so published on such next succeeding Business Day,   the Federal Funds Rate for such day shall be the average rate (rounded   upward, if necessary, to a whole multiple of 1/100 of 1%) charged to JPMorgan   on such day on such transactions as determined by the Administrative Agentif   the Federal Funds Effective Rate shall be less than zero, such rate shall be   deemed to zero for the purposes of this Agreement. “First Priority” means,   with respect to any Lien purported to be created on any Collateral pursuant   to any Collateral Document, that such Lien is the most senior Lien to which   such Collateral is subject (subject to (i) in the case of Mortgages,   Permitted Encumbrances, and (ii) otherwise, Permitted Liens). “Fiscal Month”   means any fiscal month of any Fiscal Year; provided that for the avoidance of   doubt, the Transition Period shall be considered a Fiscal Month. “Fiscal   Quarter” means any fiscal quarter of any Fiscal Year. “Fiscal Year” means (i)   any period of twelve consecutive Fiscal Months ending on the Saturday closest   to February 28 in each calendar year (except for 53-week years) and on or   prior to February 27, 2016 and (ii) any period of twelve consecutive Fiscal   Months ending on the Saturday closest to March 31 in each calendar year   (except for 53-week years) after April 2, 2016; provided that, other than for   purposes of Section 6.01 and Section 6.02, the Fiscal Year ended April 1,   2017 shall include the Transition Period. “Flood Documentation” means, with   respect to each Mortgaged Property located in the United States or any   territory thereof, (i) a completed “life-of-loan” Federal Emergency   Management Agency standard flood hazard determination (together with a notice   about Special Flood Hazard Area status and flood disaster assistance duly   executed by the Borrower and the applicable Loan Party relating thereto) and   (ii) a copy of, or a certificate as to coverage under, and a declaration page   relating to, the insurance policies required by Section 6.07 hereof and the   applicable provisions of the Collateral Documents, each of which shall (A) be   endorsed or otherwise amended to include a “standard” or “New York” lender’s   loss payable or mortgagee endorsement (as applicable), (B) name the   Collateral Agent, on behalf of the Credit Parties, as additional insured and   loss payee/mortgagee and (C) identify the address of each property located in   a Special Flood Hazard Area, the applicable flood zone designation and the   flood insurance coverage and deductible relating thereto and (iv) be otherwise   in form and substance reasonably satisfactory to the Administrative Agent.   “Flood Insurance Laws” means, collectively, (i) the National Flood Insurance   Act of 1968 as now or hereafter in effect or any successor statute thereto,   (ii) the Flood Disaster Protection Act of 1973 as now or hereafter in effect   or any successor statue thereto, (iii) the National Flood Insurance Reform   Act of 1994 as now or hereafter in effect or any successor statute thereto   and (iv) the Flood Insurance Reform Act of 2004 as now or hereafter in effect   or any successor statute thereto. - 17- 

    

 

“Foreign   Lender” means any Lender that is not, for U.S. federal income tax purposes,   (i) an individual who is a citizen or resident of the United States, (ii) a   corporation, partnership or other entity treated as a corporation or   partnership created or organized in or under the laws of the United States,   or any political subdivision thereof, (iii) an estate whose income is subject   to U.S. federal income taxation regardless of its source or (iv) a trust if a   court within the United States is able to exercise primary supervision over   the administration of such trust and one or more United States persons have   the authority to control all substantial decisions of such trust. In   addition, solely for purposes of clause (b) of the definition of “Excluded   Taxes,” a Foreign Lender shall include a partnership or other entity treated   as a partnership created or organized in or under the laws of the United   States, or any political subdivision thereof, but only to the extent the   partners of such partnership (including indirect partners if the direct   partners are partnerships or other entities treated as partnerships for U.S.   federal income tax purposes created or organized in or under the laws of the   United States, or any political subdivision thereof) are treated as Foreign   Lenders under the preceding sentence. “Foreign Plan” means any employee   benefit plan, program, policy, arrangement or agreement maintained or   contributed to by, or entered into with, Holdings, the Borrower or any   Subsidiary with respect to employees employed by Holdings, the Borrower or   any Subsidiary outside the United States that is not subject to the laws of   the United States. “Foreign Subsidiary” means any Subsidiary that is not a   Domestic Subsidiary. “Former Lender” means any Person that was a Lender but   that has assigned all of its Loans and Commitments, and no longer holds any   Loans and Commitments and, at the time of such assignment, was, or an   Affiliate of such Lender was, a counterparty under any agreement with respect   to Bank Products or Cash Management Services with any Loan Party, which   agreements relating to Bank Products or Cash Management Services have not   expired, been paid out or otherwise terminated or renewed. “FRB” means the   Board of Governors of the Federal Reserve System of the United States. “Fund”   means any Person (other than a natural person) that is (or will be) engaged   in making, purchasing, holding or otherwise investing in commercial loans and   similar extensions of credit in the ordinary course of its business. “GAAP”   means generally accepted accounting principles in the United States, as in   effect from time to time; provided, however, that if the Borrower notifies   the Administrative Agent that the Borrower requests an amendment to any   provision hereof to eliminate the effect of any change occurring after the   Closing Date in GAAP or in the application thereof (including through the   adoption of IFRS) on the operation of such provisions (or if the   Administrative Agent notifies the Borrower that the Required Lenders request   an amendment to any provision hereof for such purpose), regardless of whether   any such notice is given before or after such change in GAAP or in the   application thereof (including through the adoption of IFRS), then such   provision shall be interpreted on the basis of GAAP as in effect and applied   immediately before such change shall have become effective until such notice   shall have been withdrawn or such provision amended in accordance herewith.   “Governmental Authority” means the government of the United States or any   other nation, or of any political subdivision thereof, whether state or   local, and any agency, authority, instrumentality, regulatory body, court,   central bank or other entity exercising executive, legislative, - 18- 

    

 

judicial,   taxing, regulatory or administrative powers or functions of or pertaining to   government (including any supra-national bodies such as the European Union or   the European Central Bank). “Guarantee” means, as to any Person, (a) any   obligation, contingent or otherwise, of such Person guaranteeing or having   the economic effect of guaranteeing any Indebtedness or other obligation   payable or performable by another Person (the “primary obligor”) in any   manner, whether directly or indirectly, and including any obligation of such   Person, direct or indirect, (i) to purchase or pay (or advance or supply   funds for the purchase or payment of) such Indebtedness or other obligation,   (ii) to purchase or lease property, securities or services for the purpose of   assuring the obligee in respect of such Indebtedness or other obligation of   the payment or performance of such Indebtedness or other obligation, (iii) to   maintain working capital, equity capital or any other financial statement   condition or liquidity or level of income or cash flow of the primary obligor   so as to enable the primary obligor to pay such Indebtedness or other   obligation, or (iv) entered into for the purpose of assuring in any other   manner the obligee in respect of such Indebtedness or other obligation of the   payment or performance thereof or to protect such obligee against loss in   respect thereof (in whole or in part), or (b) any Lien on any assets of such   Person securing any Indebtedness or other obligation of any other Person,   whether or not such Indebtedness or other obligation is assumed by such   Person (or any right, contingent or otherwise, of any holder of such   Indebtedness to obtain any such Lien). The amount of any Guarantee shall be   deemed to be an amount equal to, with respect to clause (a) above, the stated   or determinable amount of the related primary obligation, or portion thereof,   in respect of which such Guarantee is made or, if not stated or determinable,   the maximum reasonably anticipated liability in respect thereof as determined   by the guaranteeing Person in good faith or, with respect to clause (b)   above, the fair market value of the property subject to (or contemplated to   be subject to) such Lien as determined by the guaranteeing Person in good   faith. The term “Guarantee” as a verb has a corresponding meaning.   “Guarantors” means, collectively, Holdings, the Subsidiary Guarantors listed   on Schedule 6.12 and each other Restricted Subsidiary of Holdings that is   required to sign a counterpart to this Agreement pursuant to Section 6.12(a)(i).   “Guaranty” means the guaranty contained in Article X hereof made by the   Guarantors in favor of the Credit Parties. “Hazardous Materials” means all   explosive or radioactive substances or wastes and all hazardous or toxic   substances, wastes or other pollutants, including petroleum or petroleum   distillates, asbestos or asbestos-containing materials, polychlorinated   biphenyls, radon gas, infectious or medical wastes and all other substances   or wastes of any nature regulated or defined as hazardous or toxic (or words   of similar import) pursuant to any Environmental Law. “Holdings” means The   Container Store Group, Inc., a Delaware corporation. “IFRS” means   International Financial Reporting Standards and applicable accounting   requirements set by the International Accounting Standards Board or any   successor thereto (or the Financial Accounting Standards Board, the   Accounting Principles Board of the American Institute of Certified Public   Accountants, or any successor to either such Board, or the SEC, as the case   may be), as in effect from time to time. “Impacted Interest Period” means,   with respect to a LIBOR Screen Rate, an Interest Period which shall not be   available at the applicable time. - 19- 

    

 

“Incremental   Term Borrowing” means a Borrowing comprised of Incremental Term Loans.   “Incremental Term Lender” means a Lender with an Incremental Term Loan   Commitment or an outstanding Incremental Term Loan. “Incremental Term Loan   Amount” means, at any time, the excess, if any, of (a) $50.0 million over (b)   the aggregate amount of all Incremental Term Loan Commitments (other than in   respect of Refinancing Term Loans) established prior to such time pursuant to   Section 2.12. “Incremental Term Loan Commitment” means the commitment of any   Lender, established pursuant to Section 2.12, to make Incremental Term Loans   to the Borrower. “Incremental Term Loans” means Loans made by one or more   Lenders to the Borrower pursuant to Section 2.01(b). Incremental Term Loans   may be made in the form of additional Term Loans or, to the extent permitted   by Section 2.12 and provided for in the relevant Additional Credit Extension   Amendment, Other Term Loans. “Indebtedness” means, as to any Person at a   particular time, without duplication, all of the following, whether or not   included as indebtedness or liabilities in accordance with GAAP: (a) all   obligations of such Person for borrowed money and all obligations of such   Person evidenced by bonds, debentures, notes, loan agreements or other   similar instruments; (b) the maximum amount (after giving effect to any prior   drawings or reductions that may have been reimbursed) of all direct or   contingent obligations of such Person arising under letters of credit   (including standby and commercial letters of credit), bankers’ acceptances,   bank guaranties, surety bonds and similar instruments; (c) net obligations of   such Person under Swap Contracts; (d) all obligations of such Person to pay   the deferred purchase price of property or services (other than trade   accounts payable in the ordinary course of business which are being disputed   in good faith by appropriate proceedings or which are not past due for more   than 120 days after the date on which such trade account was created, any   bona fide earn-out obligation or purchase price adjustment until such   obligation is not paid after becoming due and payable and accounts for   payroll and other liabilities in the ordinary course of business); (e)   indebtedness (excluding prepaid interest thereon) secured by a Lien on   property owned or being purchased by such Person (including indebtedness   arising under conditional sales or other title retention agreements), whether   or not such indebtedness shall have been assumed by such Person or is limited   in recourse; (f) all Attributable Indebtedness in respect of Capital Lease   Obligations and Synthetic Lease Obligations of such Person and all Synthetic   Debt of such Person; (g) all obligations of such Person to purchase, redeem,   retire, defease or otherwise make any payment in respect of any Equity   Interest in such Person or any other Person, valued, in the case of a   redeemable preferred interest, at the greater of its voluntary or involuntary   liquidation preference plus accrued and unpaid dividends; and - 20- 

    

 

(h) all   Guarantees of such Person in respect of any of the foregoing. For all   purposes hereof, the Indebtedness of any Person shall include the   Indebtedness of any partnership or joint venture (other than a joint venture   that is itself a corporation or limited liability company) in which such   Person is a general partner or a joint venturer, unless such Indebtedness is   non-recourse to such Person. The amount of any net obligation under any Swap   Contract on any date shall be deemed to be the Swap Termination Value thereof   as of such date. The amount of outstanding Indebtedness as of any date shall   be the principal amount or accreted value thereof at such date. “Indemnified   Taxes” means 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. “Indemnitee” has the meaning specified in Section   11.04(b). “Independent Financial Advisor” means an accounting, appraisal,   investment banking firm or consultant of nationally recognized standing that   is, in the good faith judgment of the Borrower, qualified to perform the task   for which it has been engaged and that is independent of the Borrower and its   Affiliates. “Initial Loans” means the term loans made by the Lenders on the   Amendment No. 1 Effective Date to the Borrower. “Information” has the meaning   specified in Section 11.07. “Information Memorandum” means the Confidential   Offering Memorandum dated March 2012 used by the Arrangers in connection with   the syndication of the Commitments. “Intellectual Property” means all present   and future: trade secrets, know-how and other proprietary information;   trademarks, internet domain names, service marks, trade dress, trade names,   business names, designs, logos, slogans, indicia of origin, and other source   and/or business identifiers, and all registrations which have heretofore been   or may hereafter be issued thereon throughout the world; copyrights and   copyright applications; unpatented inventions (whether or not patentable);   patents and patent applications; license agreements related to 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. “Intercreditor   Agreement” means an intercreditor agreement substantially in the form of   Exhibit C. “Interest Payment Date” means (a) as to any LIBO Rate Loan, the   last day of each Interest Period applicable to such Loan and the Maturity   Date or the Incremental Term Loan Maturity Date, as applicable; provided,   however, that if any Interest Period for a LIBO Rate Loan exceeds three   months, the respective dates that fall every three months after the beginning   of such Interest Period shall also be Interest Payment Dates; and (b) as to   any Base Rate Loan, the first Business Day after the end of each calendar   quarter and the Maturity Date or the Incremental Term Loan Maturity Date, as   applicable; provided, further, that the Amendment No. 2 Effective Date shall   constitute an Interest Payment Date with respect to accrued and unpaid   interest up to but excluding the Amendment No. 2 Effective Date for the   Initial Loans (including the Converted Initial Loans); provided, further,   that the Amendment No. 4 Effective Date shall constitute an Interest Payment   Date with respect to accrued and unpaid interest up to but excluding the   Amendment No. 4 Effective Date for the Term B Loans prepaid or refinanced on   such date (including the Converted Term B Loans). - 21- 

    

 

“Interest   Period” means, as to each LIBO Rate Loan, the period commencing on the date   such LIBO Rate Loan is disbursed or converted to or continued as a LIBO Rate   Loan and, except as contemplated by Section 2.01, ending on the date one,   two, three or six months thereafter (or such other period as agreed by the   Borrower and all applicable Lenders), as selected by the Borrower in its   Committed Loan Notice or Conversion/Continuation Notice, as the case may be;   provided that: (a) any Interest Period that would otherwise end on a day that   is not a Business Day shall be extended to the next succeeding Business Day   unless such Business Day falls in another calendar month, in which case such   Interest Period shall end on the next preceding Business Day; (b) any   Interest Period that begins on the last Business Day of a calendar month (or   on a day for which there is no numerically corresponding day in the calendar   month at the end of such Interest Period) shall end on the last Business Day   of the calendar month at the end of such Interest Period; (c) no Interest   Period longer than one month may be selected prior to the date that is the   30th day following the Closing Date; and (d) no Interest Period shall extend   beyond the Maturity Date. “Interpolated Rate” means, at any time, for any   Interest Period, the rate per annum (rounded to the same number of decimal   places as the LIBOR Screen Rates) determined by the Administrative Agent   (which determination shall be conclusive and binding absent manifest error)   to be equal to the rate that results from interpolating on a linear basis   between: (a) the LIBOR Screen Rate for the longest period (for which the   LIBOR Screen Rate is available) that is shorter than the Impacted Interest   Period and (b) the LIBOR Screen Rate for the shortest period (for which the   LIBOR Screen Rate is available) that exceeds the Impacted Interest Period, in   each case, as of 11:00 a.m., London Time, two Business Days prior to the   commencement of such Interest Period. When determining the rate for a period   which is less than the shortest period for which the LIBOR Screen Rate is   available, the LIBOR Screen Rate for purposes of paragraph (a) above shall be   deemed to be the overnight screen rate where “overnight screen rate” means,   in relation to Dollars, the overnight rate for Dollars determined by the   Administrative Agent from such service as the Administrative Agent may   select. “Investment” means, as to any Person, any direct or indirect   acquisition or investment by such Person, whether by means of (a) the   purchase or other acquisition of Equity Interests of another Person, (b) a   loan, advance or capital contribution to, Guarantee or assumption of debt of,   or purchase or other acquisition of any other debt or interest in, another   Person, or (c) the purchase or other acquisition (in one transaction or a   series of transactions) of all or substantially all of the assets of another   Person or of the assets of another Person that constitute a discrete business   unit. For purposes of covenant compliance, the amount of any Investment shall   be the amount actually invested (measured at the time made), without   adjustment for subsequent increases or decreases in the value of such   Investment. “IRS” means the United States Internal Revenue Service. “JPMCB”   means JPMorgan Chase Bank, N.A. “Laws” means, collectively, all   international, foreign, Federal, state and local statutes, laws (including   common law), treaties, rules, guidelines, regulations, judgments, ordinances,   codes and administrative or judicial precedents or authorities, including the   interpretation or administration thereof by any Governmental Authority   charged with the enforcement, interpretation or administration thereof, - 22-   

    

 

and all   applicable administrative orders, directed duties, requests, licenses,   authorizations and permits of, and agreements with, any Governmental   Authority, in each case whether or not having the force of law. “Lease” means   any agreement, whether written or oral, no matter how styled or structured,   pursuant to which a Loan Party is entitled to the use or occupancy of any   space in a structure, land, improvements or premises for any period of time.   “Lender” has the meaning specified in the introductory paragraph hereto and   their respective successors and assigns as permitted hereunder, each of which   is referred to herein as a “Lender”. “Lender Participation Notice” has the   meaning provided in Section 2.03(d)(iii). “Lending Office” means, as to any   Lender, the office or offices of such Lender described as such in such   Lender’s Administrative Questionnaire, or such other office or offices as a   Lender may from time to time notify the Borrower and the Administrative   Agent. “LIBO Rate” means, for any applicable Interest Period, the LIBOR   Screen Rate as of approximately 11:00 a.m., London time, two Business Days   prior to the commencement of such Interest Period for Dollar deposits for   such Interest Period; provided, that, if a LIBOR Screen Rate shall not be   available at the applicable time for the applicable Interest Period, then the   LIBORLIBO Rate for such currency and Interest Period shall be the   Interpolated Rate; provided, further that in no event shall the LIBO Rate for   any Interest Period be less than 1.00% per annum. “LIBO Rate Loan” means a   Loan that bears interest at a rate based on the LIBO Rate. “LIBOR Screen   Rate” means the London interbank offered rate administered by the British   BankersICE Benchmark Association (or any other Person that takes over the administration   of such rate) for Dollars for a period equal in length to such Interest   Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen or, in   the event such rate does not appear on either of such Reuters pages, on any   successor or substitute page on such screen that displays such rate, or on   the appropriate page of such other information service that publishes such   rate as shall be selected by the Administrative Agent from time to time in   its reasonable discretion; provided, that, if any LIBOR Screen Rate shall be   less than zero, such rate shall be deemed to be zero for purposes of this   Agreement. “Lien” means any mortgage, pledge, hypothecation, assignment,   encumbrance, lien (statutory or other), charge, preference, or priority in   the nature of a security interest of any kind or nature whatsoever (including   any conditional sale or other title retention agreement, any easement, right   of way or other encumbrance on title to Real Estate, and any financing lease   having substantially the same economic effect as any of the foregoing).   “Liquidation” means the exercise by the Administrative Agent or Collateral   Agent of those rights and remedies accorded to such Agents under the Loan   Documents and applicable Law as a creditor of the Loan Parties with respect   to the realization on the Collateral, including (after the occurrence and   continuation of an Event of Default) the conduct by the Loan Parties acting   with the consent of the Administrative Agent, of any public, private or going   out of business sale or other disposition of the Collateral for the purpose   of liquidating the Collateral. Derivations of the word “Liquidation” (such as   “Liquidate”) are used with like meaning in this Agreement. “Loan Documents”   means, collectively, (a) this Agreement, (b) the Notes, (c) the Collateral   Documents and (d) each Additional Credit Extension Amendment. - 23- 

    

 

“Loan Parties”   means, collectively, the Borrower and each Guarantor. “Loans” means the   Initial Loans, Term B Loans, Term B-1 Loans, Incremental Term Loans, Extended   Term Loans and Replacement Loans. “Management Agreement” means the Amended   and Restated Management Services Agreement dated as of September 1, 2011   between Leonard Green & Partners, L.P. (or any Affiliate of Leonard Green   & Partners, L.P. to which such agreement has been assigned) and the   Borrower as in effect as of the Closing Date or as amended in any manner not   materially adverse to the Lenders. “Management Fees” means all fees and   expense reimbursements payable to Leonard Green & Partners, L.P. or any   of its controlled Affiliates pursuant to the Management Agreement.   “Management Stockholders” means the members of management of Holdings or any   of its Subsidiaries who are investors in Holdings or any direct or indirect   parent thereof on the Closing Date. “Material Adverse Effect” means (a) any   change, circumstance, event or effect that would be materially adverse to the   assets, liabilities, business, financial condition or results of operations   of Holdings and its Restricted Subsidiaries taken as a whole; (b) a material   impairment of the rights and remedies of the Administrative Agent, the   Collateral Agent or any Lender under any Loan Document, or of the ability of   any of Holdings, the Borrower or any Material Subsidiary to perform its   obligations under any Loan Document to which it is a party; or (c) a material   adverse effect upon the legality, validity, binding effect or enforceability   against any of Holdings, the Borrower or any Material Subsidiary of any Loan   Document to which it is a party. “Material Indebtedness” means Indebtedness   (other than the Obligations) of any of the Holdings or any of its Restricted   Subsidiaries in an aggregate principal amount exceeding $10.0 million for all   such Persons. For purposes of determining the amount of Material Indebtedness   at any time, the amount of the obligations in respect of any Swap Contract at   such time shall be calculated at the Swap Termination Value thereof.   “Material Subsidiary” means, at any date of determination, any Restricted   Subsidiary or group of Restricted Subsidiaries (a) whose total assets at the   last day of the most recently ended Measurement Period were equal to or   greater than 5% of the Consolidated total assets of Holdings and its   Consolidated Subsidiaries at such date, or (b) whose gross revenues for such   Measurement Period were equal to or greater than 5% of the Consolidated gross   revenues of Holdings and its Consolidated Subsidiaries for such period, in   each case determined in accordance with GAAP. “Maturity Date” means April 6,   2019.with respect to the Term B-1 Loans, August 18, 2021. “Maximum Rate” has   the meaning specified in Section 11.09. “Measurement Period” means, at any   date of determination, the most recently completed four consecutive Fiscal   Quarters of Holdings and its Restricted Subsidiaries for which financial   statements pursuant to Section 6.01(a) or (b) have been, or were required to   have been, delivered for the applicable fiscal period (or, in the case of any   calculation made prior to the first such delivery, the four Fiscal Quarter   period ended November 16, 2011); provided that, with respect to the Fiscal   Quarters ending July 2, 2016, October 1, 2016, December 31, 2016 and April 1,   2017, the Measurement Periods will be the twelve consecutive Fiscal Months   (i) beginning on July 5, 2015 and ending on July 2, 2016, - 24- 

    

 

(ii) beginning   on October 4, 2015 and ending on October 1, 2016, (iii) beginning on January   3, 2016 and ending on December 31, 2016 and (iv) beginning on April 3, 2016   and ending on April 1, 2017, respectively. “Moody’s” means Moody’s Investors   Service, Inc. and any successor thereto. “Mortgage” means any deed of trust,   trust deed, deed to secure debt, mortgage or other similar instrument, as   applicable, creating a real property Lien on and security interest in Real   Estate in favor of Collateral Agent on behalf of the Credit Parties, in each   case in form and substance reasonably satisfactory to the Administrative   Agent and its counsel. “Mortgage Policy” has the meaning specified in Section   6.12(b). “Mortgaged Property” means each parcel of Real Estate owned in fee   by any Loan Party, if any, which shall be subject to a Mortgage pursuant to   Section 6.12. “Multiemployer Plan” means a “multiemployer plan” as defined in   Section 4001(a)(3) of ERISA, to which Holdings, the Borrower or any ERISA   Affiliate makes or is obligated to make contributions, or during the   preceding five plan years, has made or been obligated to make contributions   on behalf of participants who are or were employed by any of them. “Net Cash   Proceeds” means: (a) with respect to any Disposition by Borrower or any of   its Restricted Subsidiaries, or any Extraordinary Receipt received or paid to   the account of Holdings or any of its Restricted Subsidiaries, the excess, if   any, of (i) the sum of cash and Cash Equivalents received in connection with   such transaction (including any cash or Cash Equivalents received by way of   deferred payment pursuant to, or by monetization of, a note receivable or   otherwise, but only as and when so received) over (ii) the sum of (A) the   principal amount of any Indebtedness (plus any premium or other required   payment on account thereof) that is secured by a Lien having priority over   the Lien of the Collateral Agent (if any) on the applicable asset and that is   required to be repaid in connection with such transaction (other than   Indebtedness under the Loan Documents, but including, the payment of the   proceeds from any ABL Priority Collateral in reduction of the Indebtedness   under the ABL Facility) plus, in the case of any Disposition by a Foreign   Subsidiary or an Extraordinary Receipt received by a Foreign Subsidiary, the   principal amount of Indebtedness (if any) of such Foreign Subsidiary or other   Foreign Subsidiaries proposed to be repaid with such Net Cash Proceeds and   (B) the reasonable out-of-pocket expenses incurred by Borrower or such   Restricted Subsidiary in connection with such transaction; and (b) with   respect to the incurrence or issuance of any Refinancing Indebtedness or Indebtedness   not permitted to be incurred or issued pursuant to Section 7.02 by Borrower   or any Restricted Subsidiary, the excess, if any, of (i) the sum of the cash   and Cash Equivalents received in connection with such incurrence or issuances   over (ii) the investment banking fees, underwriting discounts, commissions,   costs and other out-of-pocket expenses and other customary expenses, incurred   by Borrower or such Restricted Subsidiary in connection with such incurrence   or issuance. “Net Working Capital” means, at any date, (a) the Consolidated   current assets of Holdings and its Restricted Subsidiaries as of such date   (excluding cash and current assets in respect of income taxes) minus (b) the   Consolidated current liabilities of Holdings and its Restricted Subsidiaries   as - 25- 

    

 

of such date   (excluding current liabilities in respect of Indebtedness and deferred income   taxes). Net Working Capital at any date may be a positive or negative number.   Net Working Capital increases when it becomes more positive or less negative   and decreases when it becomes less positive or more negative. “Note” means a   promissory note made by the Borrower in favor of a Lender, evidencing Loans   made by such Lender, substantially in the form of Exhibit E. “NPL” means the   National Priorities List under CERCLA. “NYFRB” means the Federal Reserve Bank   of New York. “NYFRB Rate” means, for any day, the greater of (a) the Federal   Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding   Rate in effect on such day (or for any day that is not a Business Day, for   the immediately preceding Business Day); provided that if none of such rates   are published for any day that is a Business Day, the term “NYFRB Rate” means   the rate for a federal funds transaction quoted at 11:00 a.m. on such day   received to the Administrative Agent from a Federal funds broker of   recognized standing selected by it; provided, further, that if any of the   aforesaid rates shall be less than zero, such rate shall be deemed to be zero   for purposes of this Agreement. “Obligations” means (a) all debts (including   principal, interest, fees, costs, and expenses), liabilities, obligations,   covenants, indemnities, and duties of, any Loan Party arising under any Loan   Document or otherwise with respect to any Loan (including any Other Term   Loan), whether direct or indirect (including those acquired by assumption),   absolute or contingent, due or to become due, now existing or hereafter   arising and including interest and fees that accrue after the commencement by   or against any Loan Party or any Affiliate thereof of any proceeding under   any Debtor Relief Laws naming such Person as the debtor in such proceeding,   regardless of whether such interest and fees are allowed claims in such   proceeding and (b) any Other Liabilities, excluding, with respect to any   Guarantor that is not a Qualified ECP Guarantor, Excluded Swap Obligations of   such Guarantor. “Offered Loans” has the meaning provided in Section   2.03(d)(iii). “Organization Documents” means (a) with respect to any   corporation, the certificate or articles of incorporation and the bylaws (or   equivalent or comparable constitutive documents with respect to any non-U.S.   jurisdiction); (b) with respect to any limited liability company, the   certificate or articles of formation or organization and operating agreement;   and (c) with respect to any partnership, limited partnership, joint venture,   trust or other form of business entity, the partnership, joint venture or   other applicable agreement of formation or organization and any agreement,   instrument, filing or notice with respect thereto filed in connection with   its formation or organization with the applicable Governmental Authority in   the jurisdiction of its formation or organization and, if applicable, any certificate   or articles of formation or organization of such entity. “Other Liabilities”   means amounts due on account of or arising from (a) any Cash Management   Services furnished to any of the Loan Parties and (b) any transaction which   arises out of any Bank Product entered into with any of the Loan Parties, as   each may be amended from time to time. “Other Taxes” means all present or   future stamp or documentary taxes or any other excise or property taxes,   charges or similar levies (including any interest, additions to tax or   penalties applicable thereto) arising from any payment made hereunder or   under any other Loan Document or from the execution, delivery or enforcement   of, or otherwise with respect to, this Agreement or any other Loan Document.   - 26- 

    

 

“Other Term   Loans” has the meaning specified in Section 2.12(a). “Overnight Bank Funding   Rate” means, for any day, the rate comprised of both overnight federal funds   and overnight Eurodollar borrowings by U.S.-managed banking offices of   depository institutions, as such composite rate shall be determined by the   NYFRB as set forth on its public website from time to time, and published on   the next succeeding Business Day by the NYFRB as an overnight bank funding   rate (from and after such date as the NYFRB shall commence to publish such   composite rate). “Participant” has the meaning specified in Section 11.06(d).   “Participant Register” has the meaning specified in Section 11.06(d). “PBGC”   means the Pension Benefit Guaranty Corporation. “PCAOB” means the Public   Company Accounting Oversight Board. “Pension Plan,” means any “employee   pension benefit plan” (as such term is defined in Section 3(2) of ERISA),   other than a Multiemployer Plan, that is subject to Section 412 of the Code   or Title IV of ERISA and is sponsored or maintained by Holdings, the Borrower   or any ERISA Affiliate or to which Holdings, the Borrower or any ERISA   Affiliate contributes or has an obligation to contribute, or in the case of a   multiple employer or other plan described in Section 4064(a) of ERISA, has   made contributions at any time during the immediately preceding five plan   years on behalf of participants who are or were employed by any of them.   “Perfection Certificate” means a certificate in the form of Exhibit H-1 or any   other form approved by the Collateral Agent, as the same shall be   supplemented from time to time by a Perfection Certificate Supplement or   otherwise. “Perfection Certificate Supplement” means a certificate supplement   in the form of Exhibit H-2 or any other form approved by the Collateral   Agent. “Permitted Acquisition” has the meaning assigned to such term in   Section 7.03(h). “Permitted Encumbrances” has the meaning specified in the   Mortgages. “Permitted Holdco Debt” means Indebtedness of Holdings that (A) is   not subject to any Guarantee by the Borrower or any other Restricted   Subsidiary, (B) will not mature prior to the date that is 180 days after the   Maturity Date, (C) has no scheduled amortization or mandatory redemption of   principal (excluding customary offers to purchase under certain   circumstances, such as a “change in control”) prior to the date that is 180   days after the Maturity Date, (D) does not require or permit payments in cash   of interest or other amounts in the nature of interest prior to the date that   is 180 days after the Maturity Date, (E) is subordinated to the Obligations   on terms reasonably acceptable to the Administrative Agent, (F) is unsecured,   (G) is not convertible into or exchangeable for any Indebtedness or Equity   Interests other than Equity Interests in Holdings (other than Disqualified   Equity Interests) on market terms, (H) has covenants, defaults and remedies   provisions customary for senior discount notes of an issuer that is the   parent of a borrower under senior credit facilities, and (I) the net proceeds   from which are contributed by Holdings to the Borrower or any of the   Restricted Subsidiaries for its general corporate purposes (including,   without limitation, for the payment of the purchase price for acquisitions   permitted under Section 7.03(h)). - 27- 

    

 

“Permitted   Indebtedness” has the meaning specified in Section 7.02. “Permitted Lien” has   the meaning specified in Section 7.01. “Permitted Protest” means the protest   by the Borrower or any Restricted Subsidiary of any Lien (other than any such   Lien that secures the Obligations), taxes, or rental payment, provided that   (a) a reserve with respect to such obligation is established on the books and   records of the applicable Person in such amount (if any) to the extent   required under GAAP, (b) any such protest is prosecuted diligently by the   Borrower or such Restricted Subsidiary, as the case may be, in good faith, by   appropriate proceedings, (c) such protest effectively suspends collection of   the contested obligation and enforcement of any Lien securing such obligation,   and (d) the failure to make payment during the pendency of such protest,   individually or in the aggregate, would not reasonably be expected to result   in a Material Adverse Effect. “Permitted Refinancing Indebtedness” means,   with respect to any Person, any modification, refinancing, refunding, renewal   or extension of any Indebtedness of such Person (or any successor of such   Person) by such Person or its successor; provided that (a) the principal or   committed amount (or accreted value, if applicable) thereof does not exceed   the sum of (i) the outstanding principal or committed amount (or accreted   value, if applicable) of the Indebtedness so modified, refinanced, refunded,   renewed or extended plus (ii) prepayment premiums and other reasonable   amounts paid, and fees (including original issue discount and upfront fees)   and expenses reasonably incurred, in connection with such modification,   refinancing, refunding, renewal or extension, (b) other than with regard to   Permitted Refinancing Indebtedness in respect of Indebtedness permitted   pursuant to Section 7.03(f) or Section 7.03(h) such modification,   refinancing, refunding, renewal or extension has (i) a final maturity date   equal to or later than the final maturity date of the Indebtedness being   modified, refinanced, refunded, renewed or extended and (ii) a weighted   average life to maturity equal to or greater than the weighted average life   to maturity of the Indebtedness being modified, refinanced, refunded, renewed   or extended, (c) if the Indebtedness being modified, refinanced, refunded,   renewed or extended is Subordinated Indebtedness, such modification,   refinancing, refunding, renewal or extension (i) is subordinated in right of   payment to the Obligations on terms at least as favorable, taken as a whole,   to the Lenders as those contained in the documentation governing the   Subordinated Indebtedness being modified, refinanced, refunded, renewed or   extended, (ii) does not require payments of cash interest prior to the date   that is six months following the maturity date of the Indebtedness being   refinanced in amounts greater than was required by the Indebtedness being   refinanced, and (iii) contains covenants and events of default that are not   more restrictive taken as a whole than the covenants and events of default   contained in the documentation governing the Indebtedness being refinanced   (as determined in good faith by the Borrower), and (d) no property of any   Loan Party or Restricted Subsidiary shall constitute collateral security for   the Indebtedness so modified, refinanced, refunded, renewed, or extended   other than any Permitted Liens. “Person” means any natural person,   corporation, limited liability company, trust, joint venture, association,   company, partnership, limited partnership, Governmental Authority or other   entity. “Plan” means any “employee benefit plan” (as such term is defined in   Section 3(3) of ERISA) established or maintained by Holdings, the Borrower   or, with respect to any such plan that is subject to Section 412 of the Code   or Title IV of ERISA, any ERISA Affiliate. “Platform” has the meaning   specified in Section 6.02. - 28- 

    

 

“Pledge   Agreement” means the Pledge Agreement dated April 6, 2012, among the Loan   Parties and the Collateral Agent, together with each other pledge agreement   and pledge agreement supplement delivered pursuant to Section 6.12(a)(iii),   as amended. “Pledged Debt” means any debt instrument constituting Collateral   under any of the Collateral Documents. “Pledged Equity” means any   certificated equity security constituting Collateral under any of the   Collateral Documents. “Prime Rate” means the rate of interest per annum   publicly announced from time to time by JPMorgan Chase Bank as its prime rate   in effect at its principal office in New York City; each change in the Prime   Rate shall be effective from and including the date such change is publicly   announced as being effective. “Pro Forma Basis” means, with respect to   compliance with any test or covenant or calculation hereunder, the   determination or calculation of such test, covenant or ratio (including in   connection with Specified Transactions) in accordance with Section 1.08.   “Proposed Discounted Prepayment Amount” has the meaning provided in Section   2.03(d)(ii). “Public Lender” has the meaning specified in Section 6.02.   “Public Market” shall exist if (a) a Public Offering has been consummated and   (b) any Equity Interests of Holdings have been distributed by means of an   effective registration statement under the Securities Act. “Public Offering”   means a public offering of the Equity Interests of Holdings pursuant to an   effective registration statement under the Securities Act. “Qualified ECP   Guarantor” means, in respect of any Swap Obligation, each Loan Party that has   total assets exceeding $10,000,000 at the time the relevant Guarantee or   grant of the relevant security interest becomes effective with respect to   such Swap Obligation or such other person as constitutes an “ECP” under the   Commodity Exchange Act or any regulations promulgated thereunder and can cause   another person to qualify as an “ECP” at such time by entering into a   keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.   “Qualified Equity Interests” means any Equity Interests that are not   Disqualified Equity Interests. “Qualified Equity Issuance” means any sale or   issuance (other than to the Borrower or a Subsidiary) of any Qualified Equity   Interests of the Borrower. “Qualifying Lenders” has the meaning provided in   Section 2.03(d)(iv). “Qualifying Loans” has the meaning provided in Section   2.03(d)(iv). “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. - 29- 

    

 

“Refinanced   Loans” has the meaning provided in Section 11.01. “Refinancing Debt   Securities” means any Indebtedness consisting of one or more series of senior   or junior unsecured notes or senior secured notes (“debt securities”)   incurred or Guaranteed by Loan Parties following the Closing Date that are   designated by the Borrower in a certificate of a Responsible Officer   delivered to the Administrative Agent as “Refinancing Debt Securities”;   provided that (i) such debt securities are pari passu or junior in right of   payment with any remaining portion of the Facility and pari passu, junior or   unsecured with respect to security with any remaining portion of the   Facility, (ii) such debt securities do not mature prior to the maturity date   of, or have a shorter weighted average life than, the Loans being refinanced,   (iii) the other terms and conditions relating to such debt securities   (excluding pricing and optional prepayment or redemption terms) are   substantially identical to, or (taken as a whole as determined by the   Borrower in its reasonable judgment) are no more favorable to the lenders   providing such Refinancing Debt Securities than those applicable to the Loans   being refinanced (except for covenants or other provisions applicable only to   periods after the latest final maturity date of the Loans existing at the   time of such refinancing) and (iv) the aggregate principal amount of any   Refinancing Debt Securities does not exceed the aggregate amount of debt   being refinanced therewith, plus interest, fees and expenses or to the extent   otherwise permitted under this Agreement. “Refinancing Indebtedness” means   (i) any Refinancing Term Loans and (ii) any Refinancing Debt Securities.   “Refinancing Term Loans” means Incremental Term Loans that are designated by   a Responsible Officer of the Borrower as “Refinancing Term Loans” in a   certificate of a Responsible Officer of the Borrower delivered to the   Administrative Agent on or prior to the date of incurrence; provided that (i)   such Refinancing Term Loans do not mature prior to the maturity date of, or have   a shorter weighted average life than, the Loans being refinanced, (ii) the   other terms and conditions relating to such Refinancing Term Loans (excluding   pricing and optional prepayment or redemption terms) are substantially   identical to, or (taken as a whole as determined by the Borrower in its   reasonable judgment) are no more favorable to the lenders providing such   Refinancing Term Loans than those applicable to the Loans being refinanced   (except for covenants or other provisions applicable only to periods after   the latest final maturity date of the Loans existing at the time of such   refinancing) and (iii) the aggregate principal amount of any Refinancing Term   Loans does not exceed the aggregate amount of debt being refinanced   therewith, plus interest, fees and expenses or to the extent otherwise   permitted under this Agreement. “Register” has the meaning specified in   Section 11.06(c). “Registered Public Accounting Firm” has the meaning   specified by the Securities Laws and shall be independent of Holdings and its   Subsidiaries as prescribed by the Securities Laws. “Related Parties” means,   with respect to any Person, such Person’s Affiliates and the partners,   directors, officers, employees, agents and advisors of such Person and of   such Person’s Affiliates. “Release” means any spilling, leaking, seepage,   pumping, pouring, emitting, emptying, discharging, injecting, escaping,   leaching, dumping, disposing, depositing, dispersing, or migrating of any   Hazardous Material into or through the environment. “Replacement Loans” has   the meaning provided in Section 11.01. - 30- 

    

 

“Reportable   Event” means any of the events set forth in Section 4043(c) of ERISA, other   than events for which the 30 day notice period has been waived by regulation.   “Repricing Transaction” means the prepayment, refinancing, substitution or   replacement of all or a portion of the Term B-1 Loans with the incurrence by   the Borrower or any Subsidiary of any debt financing having an effective   interest cost or weighted average yield (with the comparative determinations   to be made by the Administrative Agent consistent with generally accepted   financial practices, after giving effect to, among other factors, margin,   interest rate floors, upfront or similar fees or original issue discount   shared with all providers of such financing, but excluding the effect of any   arrangement, structuring, syndication or other fees payable in connection   therewith that are not shared with all providers of such financing, and   without taking into account any fluctuations in the LIBO Rate) that is less   than the effective interest cost or weighted average yield (as determined by   the Administrative Agent on the same basis) of such Term B-1 Loans,   including, without limitation, as may be effected through any amendment to   this Agreement relating to the interest rate for, or weighted average yield   of, such Term B-1 Loans or the incurrence of any Refinancing Indebtedness.   “Required Lenders” means, as of any date of determination, Lenders holding in   the aggregate more than 50% of the Total Outstandings; provided that the   portion of the Total Outstandings held or deemed held by any Defaulting   Lender shall be excluded for purposes of making a determination of Required   Lenders. “Responsible Officer” means the chief executive officer, president,   chief financial officer, any executive or senior vice president, treasurer,   assistant treasurer or controller of a Loan Party or any of the other   officers designated in writing to the Administrative Agent by an existing   Responsible Officer of a Loan Party as an authorized signatory of any   certificate or other document to be delivered hereunder. Any document   delivered hereunder that is signed by a Responsible Officer of a Loan Party   shall be conclusively presumed to have been authorized by all necessary   corporate, partnership and/or other action on the part of such Loan Party and   such Responsible Officer shall be conclusively presumed to have acted on   behalf of such Loan Party. “Restricted Payment” means any dividend or other   distribution (whether in cash, securities or other property) by Borrower or   any of its Restricted Subsidiaries with respect to any Equity Interest of   Holdings or any of its Restricted Subsidiaries, or any payment by Borrower or   any of its Restricted Subsidiaries (whether in cash, securities or other   property), including any sinking fund or similar deposit, on account of the   purchase, redemption, retirement, defeasance, acquisition, cancellation or   termination of any such Equity Interest, or on account of any return of   capital to Borrower’s or any of its Restricted Subsidiaries’ direct or   indirect stockholders, partners or members (or the equivalent of any   thereof). For the avoidance of doubt, payments made pursuant to the   Management Agreement shall not be considered Restricted Payments. “Restricted   Subsidiary” means any Subsidiary of Holdings other than an Unrestricted   Subsidiary. In all events, the Borrower shall be deemed a Restricted   Subsidiary of Holdings. A Restricted Subsidiary of Holdings that is also a   Subsidiary of the Borrower shall also be deemed to be a Restricted Subsidiary   of the Borrower. “Restriction” has the meaning specified in Section 2.03(c).   “S&P” means Standard & Poor’s Ratings Services, a division of The   McGrawHill Companies, Inc., and any successor thereto. - 31- 

    

 

“SEC” means the   Securities and Exchange Commission, or any Governmental Authority succeeding   to any of its principal functions. “Second Priority” means, with respect to   any Lien purported to be created in any Collateral pursuant to any Collateral   Document, that such Lien is second in priority only to the Liens created   under the ABL Loan Documents (subject to (i) in the case of Mortgages,   Permitted Encumbrances) and (ii) otherwise, Permitted Liens). “Securities   Act” means the Securities Act of 1933, as amended, and the rules and   regulations promulgated thereunder. “Securities Laws” means the Securities   Act, the Securities Exchange Act of 1934, the Sarbanes-Oxley Act of 2002 (in   each case, as amended), and the applicable accounting and auditing   principles, rules, standards and practices promulgated, approved or   incorporated by the SEC or the PCAOB. “Security Agreement” means the Security   Agreement dated April 6, 2012, among the Loan Parties and the Collateral   Agent, together with each other security agreement and security agreement   supplement delivered pursuant to Section 6.12(a)(iii), as amended. “series”   means, with respect to any Extended Term Loans, Incremental Term Loans or   Replacement Loans, all such Loans that have the same maturity date,   amortization and interest rate provision and that are designated as part of   such “series” pursuant to the applicable Additional Credit Extension   Amendment. “Solvent” and “Solvency” 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 salable 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. “Special   Distribution” means payments in an aggregate amount not to exceed $90,000,000   on or after the Amendment No. 1 Effective Date in respect of: (i) the payment   by the Borrower to Holdings, the proceeds of which will be used to redeem a   portion of the Equity Interests of Holdings and/or to pay cash dividends or   distributions to the holders of the Equity Interests of Holdings and/or (ii)   special bonuses, dividend equivalents or other payments payable to officers,   employees, consultants and directors who hold options or similar Equity   Interests in Holdings. “Specified Transaction” means any Investment that   results in a Person becoming a Restricted Subsidiary, any designation of a   Subsidiary as a Restricted Subsidiary or an Unrestricted Subsidiary, any   Disposition that results in a Restricted Subsidiary ceasing to be a   Subsidiary of the Borrower, any Investment constituting an acquisition of   assets constituting a business unit, line of - 32- 

    

 

business or   division of another Person or a Store or any Disposition of a business unit,   line of business or division of the Borrower or a Restricted Subsidiary, in   each case whether by merger, consolidation, amalgamation or otherwise, any   incurrence or repayment of Indebtedness (other than Indebtedness incurred or   repaid under any revolving credit facility in the ordinary course of business   for working capital purposes), any Restricted Payment or Incremental Term   Loan and any other transaction that by the terms of this Agreement requires   such test to be calculated on a “Pro Forma Basis.” Notwithstanding anything   herein to the contrary, in no event shall the acquisition of The Container Store   Services, LLC be deemed to be a Specified Transaction. “Sponsor” means   Leonard Green & Partners, L.P. “Sponsor Affiliate” means Sponsor or any   Affiliate thereof (other than a portfolio company of Sponsor or a natural   person). “Sponsor Affiliated Lender” means any Lender (other than Holdings,   the Borrower or any of their respective Subsidiaries) that is a Sponsor   Affiliate or that is managed or advised by a Sponsor Affiliate. “Store” means   any retail store (which includes any real property, fixtures, equipment,   inventory and other property related thereto) operated, or to be operated, by   the Borrower or any Restricted Subsidiary. “Subordinated Indebtedness” means   all Indebtedness of a Loan Party that is subordinate in right of payment to   any or all of the Obligations pursuant to subordination provisions reasonably   acceptable to the Administrative Agent and which provide, without limitation,   (a) for a maturity after the Maturity Date, (b) that such Indebtedness is   unsecured, (c) that no principal payments shall be required to be made until   after the Maturity Date, and (d) that interest shall accrue and be payable in   cash at a market rate of interest, subject to the right of the Administrative   Agent to impose a payment blockage period upon the occurrence and during the   continuance of any Event of Default. In no event shall Disqualified Equity   Interests be deemed Subordinated Indebtedness. “Subsidiary” of a Person means   a corporation, partnership, joint venture, limited liability company or other   business entity of which a majority of the shares of securities or other   interests having ordinary voting power for the election of directors or other   governing body (other than securities or interests having such power only by   reason of the happening of a contingency) are at the time beneficially owned,   or the management of which is otherwise controlled, directly, or indirectly   through one or more intermediaries, or both, by such Person. Unless otherwise   specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall   refer to a Subsidiary or Subsidiaries of Holdings. “Subsidiary Guarantors”   means collectively, all Restricted Subsidiaries of the Borrower other than   (i) any CFC, (ii) any Subsidiary owned directly or indirectly by a CFC or   (iii) any Domestic Subsidiary that is a disregarded entity for U.S. federal   income tax purposes if substantially all of the assets of such Domestic   Subsidiary consist of Equity Interests in one or more Foreign Subsidiaries   that are CFCs. “Survey” means a survey of any Mortgaged Property (and all   improvements thereon) which is (a) (i) prepared by a surveyor or engineer   licensed to perform surveys in the jurisdiction where such Mortgaged Property   is located, (ii) dated (or redated) not earlier than six months prior to the   date of delivery thereof unless there shall have occurred within six months   prior to such date of delivery any exterior construction on the site of such   Mortgaged Property or any easement, right of way or other - 33- 

    

 

interest in the   Mortgaged Property has been granted or become effective through operation of   law or otherwise with respect to such Mortgaged Property which, in either   case, can be depicted on a survey, in which events, as applicable, such   survey shall be dated (or redated) after the completion of such construction   or if such construction shall not have been completed as of such date of   delivery, not earlier than 20 days prior to such date of delivery, or after   the grant or effectiveness of any such easement, right of way or other interest   in the Mortgaged Property, provided that with respect to any of the Mortgaged   Properties described on Schedule 5.07(c) where no new construction has   occurred since the most recent survey and no new encumbrances have been   created since the date of such survey, a survey affidavit of no change shall   satisfy the provisions of this clause (ii), (iii) certified by the surveyor   (in a manner reasonably acceptable to the Administrative Agent) to the   Administrative Agent, the Collateral Agent and the Title Company, (iv)   complying in all respects with the minimum detail requirements of the   American Land Title Association as such requirements are in effect on the   date of preparation of such survey, and (v) sufficient for the Title Company   to remove all standard survey exceptions from the title insurance policy (or   commitment) relating to such Mortgaged Property and issue the endorsements of   the type required by Section 6.12, or (b) otherwise acceptable to the   Collateral Agent. “Swap Contract” means 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.   “Swap Obligation” means, with respect to any Loan Party, 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.   “Swap Termination Value” means, in respect of any one or more Swap Contracts,   after taking into account the effect of any legally enforceable netting   agreement relating to such Swap Contracts, (a) for any date on or after the   date such Swap Contracts have been closed out and termination value(s)   determined in accordance therewith, such termination value(s), and (b) for   any date prior to the date referenced in clause (a), the amount(s) determined   as the mark-to-market value(s) for such Swap Contracts, as determined based   upon one or more mid-market or other readily available quotations provided by   any recognized dealer in such Swap Contracts (which may include a Lender or   any Affiliate of a Lender). “Swedish Credit Facility” means the Revolving   Credit and Term Loan Facility Agreement, dated April 27, 2009, between Elfa   International AB and Swedbank AB, including any related notes, guarantees and   collateral documents executed in connection therewith, and in each case as   amended, restated, modified, refinanced, renewed, refunded, restructured or   replaced in any manner. “Swedish Pledge Agreement” means the Share Pledge   Agreement, dated April 6, 2012, between the Borrower as pledgor and the   Collateral Agent. “Synthetic Debt” means, with respect to any Person as of   any date of determination thereof, all obligations of such Person in respect   of transactions entered into by such Person that are intended to function   primarily as a borrowing of funds (including any minority interest   transactions that function primarily as a borrowing) but are not otherwise   included in the definition of “Indebtedness” or - 34- 

    

 

 

as a liability   on the Consolidated balance sheet of such Person and the Restricted   Subsidiaries in accordance with GAAP. “Synthetic Lease Obligation” means the   monetary obligation of a Person under an agreement for the use or possession   of property (including sale and leaseback transactions), in each case,   creating obligations that do not appear on the balance sheet of such Person   but which, upon the application of any Debtor Relief Laws to such Person,   would be characterized as the indebtedness of such Person (without regard to   accounting treatment). “Taxes” means all present or future taxes, levies,   imposts, duties, deductions, withholdings (including backup withholding),   assessments, fees or other charges imposed by any Governmental Authority,   including any interest, additions to tax or penalties applicable thereto.   “Term B Loans” has the meaning specified in Section 2.01(a). Immediately   after giving effect to Amendment No. 2,4, there will be no outstanding Term B   Loans. “Term B-1 Loans” has the meaning specified in Section 2.01(b).   Immediately after giving effect to Amendment No. 4, the aggregate amount of   outstanding Term B-1 Loans on the Amendment No. 24 Effective Date is   $329,438,750.300,000,000. “Term Loans” means Initial Loans, Term B Loans,   Term B-1 Loans and any Incremental Term Loans that are specified in the   applicable Additional Credit Extension Amendment to be an increase in the   amount of Term Loans. “Term Priority Collateral” has the meaning specified in   the Intercreditor Agreement. “Title Company” means any title insurance   company as shall be retained by the Borrower and reasonably acceptable to the   Collateral Agent. “Total Debt” means, at any date of determination (i) the   aggregate principal amount of Indebtedness (other than contingent Indebtedness   of the type described in clause (b) of the definition of “Indebtedness” and   obligations under Swap Contracts permitted by Section 7.02(a)(except to the   extent any such Swap Contract has terminated)) of Holdings and its Restricted   Subsidiaries outstanding as of such date, in the amount that would be   reflected on a balance sheet prepared as of such date on a Consolidated basis   in accordance with GAAP less (ii) the aggregate amount of unrestricted cash   and Cash Equivalents of Holdings and its Restricted Subsidiaries on such date   in excess of $5.0 million. “Total Outstandings” means, on any date, the   aggregate outstanding amount of all Loans, after giving effect to any   borrowings or repayments of Loans occurring on such date. “Transaction”   means, collectively, (a) the execution of the ABL Facility and the lending of   Loans thereunder, (b) the entering into the Loan Documents by the Loan   Parties and their applicable Subsidiaries, (c) the termination and repayment   of all Indebtedness under the Borrower’s (i) Existing ABL Facility, (ii)   Existing Mezzanine Notes and (iii) Existing Term Loan Facility and (d) the   payment of the fees and Transaction Expenses. “Transaction Expenses” means   fees and expenses incurred in connection with the closing of this Agreement, the   ABL Facility and the use of proceeds thereof. “Transition Period” means the   period from and including February 28, 2016 to and including April 2, 2016. -   35- 

    

 

“Type” means,   with respect to a Loan, its character as a Base Rate Loan or a LIBO Rate   Loan. “UCC” means the Uniform Commercial Code as in effect in the State of   New York; provided that, if perfection or the effect of perfection or   non-perfection or the priority of any security interest in any Collateral or   the availability of any remedy under the Loan Documents is governed by the   Uniform Commercial Code as in effect in a jurisdiction other than the State   of New York, “UCC” means the Uniform Commercial Code as in effect from time   to time in such other jurisdiction for purposes of the provisions hereof   relating to such perfection, effect of perfection or non-perfection, priority   or availability of such remedy. “Unfunded Pension Liability” means the excess   of a Pension Plan’s benefit liabilities under Section 4001(a)(16) of ERISA, over   the current value of that Pension Plan’s assets, determined in accordance   with the assumptions used for funding the Pension Plan pursuant to Section   412 of the Code for the applicable plan year. “United States” and “U.S.” mean   the United States of America. “Unrestricted Subsidiary” means (i) each   Subsidiary of Holdings listed on Schedule 5.11 and designated as an   “Unrestricted Subsidiary,” (ii) any Subsidiary of Holdings designated by the   board of directors of Holdings as an Unrestricted Subsidiary pursuant to   Section 6.17 subsequent to the date hereof, and (iii) any Subsidiary of an   Unrestricted Subsidiary. “USA PATRIOT Act” means The Uniting and   Strengthening America by Providing Appropriate Tools Required to Intercept   and Obstruct Terrorism Act of 2001 (Title III of Public Law No. 107-56   (signed into law October 26, 2001)), as amended or modified from time to   time. “U.S. Loan Party” means any Loan Party that is organized under the laws   of one of the states of the United States of America and that is not a CFC.   “U.S. Tax Compliance Certificate” has the meaning specified in Section   3.01(e)(iii). “Write-Down and Conversion Powers” means, with respect to any   EEA Resolution Authority, the write-down and conversion powers of such EEA   Resolution Authority from time to time under the Bail-In Legislation for the   applicable EEA Member Country, which write-down and conversion powers are   described in the EU Bail-In Legislation Schedule. “Yield” for any   Indebtedness on any date of determination will be the internal rate of return   on any Loan determined by the Administrative Agent utilizing (a) the greater   of (i) if applicable, any “LIBOR floor” applicable to such Loan on such date   and (ii) the forward LIBOR curve (calculated on a quarterly basis) as   calculated by the Administrative Agent in accordance with its customary   practice during the period from such date to the final maturity date of such   Indebtedness; (b) the Applicable Margin for such Loan on such date; and (c)   the issue price of such Loan (after giving effect to any original issue   discount or upfront fees paid to the market in respect of such Indebtedness   (converted to interest margin based on an assumed four year weighted average   life) but excluding customary arranger, underwriting, structuring, syndication   or other fees not paid to the lenders providing such Indebtedness generally).   1.02 Other Interpretive Provisions. With reference to this Agreement and each   other Loan Document, unless otherwise specified herein or in such other Loan   Document: - 36- 

    

 

(a) The   definitions of terms herein shall apply equally to the singular and plural   forms of the terms defined. Whenever the context may require, any pronoun   shall include the corresponding masculine, feminine and neuter forms. The   words “include,” “includes” and “including” shall be deemed to be followed by   the phrase “without limitation.” The word “will” shall be construed to have   the same meaning and effect as the word “shall.” Unless the context requires   otherwise, (i) any definition of or reference to any Law, agreement,   instrument or other document (including any Organization Document) shall be   construed as referring to such Law, agreement, instrument or other document   as from time to time amended, supplemented or otherwise modified (subject to   any restrictions on such amendments, supplements or modifications set forth   herein or in any other Loan Document), (ii) any reference herein to any   Person shall be construed to include such Person’s successors and assigns,   (iii) the words “herein,” “hereof” and “hereunder,” and words of similar   import when used in any Loan Document, shall be construed to refer to such   Loan Document in its entirety and not to any particular provision thereof,   (iv) all references in a Loan Document to Articles, Sections, Preliminary   Statements, Exhibits and Schedules shall be construed to refer to Articles   and Sections of, and Preliminary Statements, Exhibits and Schedules to the   Loan Document in which such references appear, (v) any reference to any law   shall include all statutory and regulatory provisions consolidating,   amending, replacing or interpreting such law and any reference to any law or   regulation shall, unless otherwise specified, refer to such law or regulation   as amended, modified or supplemented from time to time, and (vi) the words   “asset” and “property” shall be construed to have the same meaning and effect   and to refer to any and all tangible and intangible assets and properties,   including cash, securities, accounts and contract rights. “Knowledge” shall   mean the actual knowledge of a Responsible Officer of the Borrower after   reasonable investigation. (i) In the computation of periods of time from a   specified date to a later specified date, the word “from” means “from and   including”; the words “to” and “until” each mean “to but excluding”; and the   word “through” means “to and including.” (ii) Section headings herein and in   the other Loan Documents are included for convenience of reference only and   shall not affect the interpretation of this Agreement or any other Loan   Document. 1.03 Accounting Terms. All accounting terms not specifically or   completely defined herein shall be construed in conformity with, and all   financial data (including financial ratios and other financial calculations)   required to be submitted pursuant to this Agreement shall be prepared in   conformity with, GAAP applied on a consistent basis, as in effect from time   to time, applied in a manner consistent with that used in preparing the   Audited Financial Statements, except as otherwise specifically prescribed   herein. 1.04 Rounding. Any financial ratios required to be maintained by the   Borrower pursuant to this Agreement shall be calculated by dividing the   appropriate component by the other component, carrying the result to one   place more than the number of places by which such ratio is expressed herein   and rounding the result up or down to the nearest number (with a rounding-up   if there is no nearest number). 1.05 Times of Day. Unless otherwise   specified, all references herein to times of day shall be references to New   York City time (daylight or standard, as applicable). - 37- 

    

 

1.06 Senior   Debt. The Loans and other Obligations are hereby designated as “Senior Debt”   and “Designated Senior Debt” (or other similar terms) for all purposes of any   Subordinated Indebtedness. 1.07 Available Amount Transactions. If more than   one action occurs on any given date the permissibility of the taking of which   is determined hereunder by reference to the amount of the Available Amount   immediately prior to the taking of such action, the permissibility of the   taking of each such action shall be determined independently and in no event   may any two or more such actions be treated as occurring simultaneously,   i.e., each transaction must be permitted under the Available Amount as so   calculated. 1.08 Pro Forma Calculations. (a) Notwithstanding anything to the   contrary herein, the Consolidated Leverage Ratio shall be calculated in the   manner prescribed by this Section 1.08; provided that, notwithstanding   anything to the contrary in clauses (b), (c) or (d) of this Section 1.08,   when calculating the Consolidated Leverage Ratio for purposes of Section   2.03(b)(i), the events described in this Section 1.08 that occurred   subsequent to the end of the applicable Measurement Period shall not be given   pro forma effect. (b) For purposes of calculating the Consolidated Leverage   Ratio, Specified Transactions (and the incurrence or repayment of any   Indebtedness in connection therewith) that have been made (i) during the   applicable Measurement Period or (ii) subsequent to such Measurement Period   and prior to or simultaneously with the event for which the calculation of   any such ratio is made shall be calculated on a pro forma basis assuming that   all such Specified Transactions (and any increase or decrease in Consolidated   EBITDA and the component financial definitions used therein attributable to   any Specified Transaction) had occurred on the first day of the applicable   Measurement Period. If since the beginning of any applicable Measurement   Period any Person that subsequently became a Restricted Subsidiary or was   merged, amalgamated or consolidated with or into the Borrower or any of its   Restricted Subsidiaries since the beginning of such Measurement Period shall   have made any Specified Transaction that would have required adjustment   pursuant to this Section 1.08, then the Consolidated Leverage Ratio shall be   calculated to give pro forma effect thereto in accordance with this Section   1.08. (c) Whenever pro forma effect is to be given to a Specified   Transaction, the pro forma calculations shall be made in good faith by a   responsible financial or accounting officer of the Borrower and may include,   for the avoidance of doubt, the amount of cost savings and synergies projected   by the Borrower in good faith to be realized as a result of specified actions   taken, committed to be taken or expected to be taken (calculated on a pro   forma basis as though such cost savings and synergies had been realized on   the first day of such period and as if such cost savings and synergies were   realized during the entirety of such period) relating to such Specified   Transaction, net of the amount of actual benefits theretofore realized during   such period from such actions; provided that (A) such amounts are reasonably   identifiable, quantifiable and supportable in the good faith judgment of the   Borrower, (B) such actions are taken, committed to be taken or expected to be   taken no later than twelve (12) months after the date of such Specified Transaction,   (C) no amounts shall be added pursuant to this clause (c) to the extent   duplicative of any amounts that are otherwise added back in computing   Consolidated EBITDA, whether through a pro forma adjustment or otherwise,   with respect to such period and (D) the aggregate amount of cost savings and   synergies added pursuant to this clause (c) for any such period after the   Closing Date shall not exceed 10% of Consolidated EBITDA for such Measurement   Period (giving pro forma effect to the relevant Specified Transaction (but   not to any cost savings or synergies)). - 38- 

    

 

(d) In the   event that the Borrower or any Restricted Subsidiary incurs (including by   assumption or guarantees) or repays (including by redemption, repayment,   retirement or extinguishment) any Indebtedness included in the calculations   of the Consolidated Leverage Ratio, as the case may be (in each case, other   than Indebtedness incurred or repaid under any revolving credit facility in   the ordinary course of business for working capital purposes), (i) during the   applicable Measurement Period or (ii) subsequent to the end of the applicable   Measurement Period and prior to or simultaneously with the event for which   the calculation of any such ratio is made, then the Consolidated Leverage   Ratio shall be calculated giving pro forma effect to such incurrence or repayment   of Indebtedness, to the extent required, as if the same had occurred on the   last day of the applicable Measurement Period. ARTICLE II THE COMMITMENTS AND   BORROWINGS 2.01 The Loans. (a) Subject to the terms and conditions set forth   herein, (i) the Additional Term B Lender agrees to make to the Borrower a   loan denominated in Dollars (together with each Loan converted from a   Converted Initial Loan pursuant to clause (ii) below, a “Term B Loan”) on the   Amendment No. 2 Effective Date equal to the Additional Term B Commitment and   (ii) each Converted Initial Loan of each Amendment No. 2 Consenting Lender   shall be converted into a Term B Loan of such Lender effective as of the   Amendment No. 2 Effective Date in a principal amount equal to the principal   amount of such Lender’s Converted Initial Loan immediately prior to such   conversion; provided that the Term B Loans shall initially consist of LIBO   Rate Loans with an Interest Period commencing on the Amendment No. 2   Effective Date and ending on December 31, 2013 and the LIBO Rate for such   Interest Period shall be deemed to be 1.00%. (b) Subject to the terms and   conditions set forth herein, (i) the Additional Term B-1 Lender agrees to   make to the Borrower a loan denominated in Dollars (together with each Loan   converted from a Converted Term B Loan pursuant to clause (ii) below, a “Term   B-1 Loan”) on the Amendment No. 4 Effective Date equal to the Additional Term   B-1 Commitment and (ii) each Converted Term B Loan of each Amendment No. 4   Consenting Lender shall be converted into a Term B-1 Loan of such Lender   effective as of the Amendment No. 4 Effective Date in a principal amount   equal to the principal amount of such Lender’s Converted Term B Loan   immediately prior to such conversion; provided that the Term B-1 Loans shall   initially consist of LIBO Rate Loans with an Interest Period commencing on   the Amendment No. 4 Effective Date and ending on October 2, 2017 and the LIBO   Rate for such Interest Period shall be deemed to be 1.22833%. (c) (b) Each   Lender having an Incremental Term Loan Commitment severally agrees, subject   to the terms and conditions and relying upon the representations and   warranties set forth herein and in the applicable Additional Credit Extension   Amendment, to make Incremental Term Loans to the Borrower, in an aggregate   principal amount not to exceed its Incremental Term Loan Commitment. Each   Incremental Term Borrowing shall consist of Incremental Term Loans made   simultaneously by the applicable Incremental Term Lenders in accordance with   their respective Incremental Term Loan Commitments. (d) (c) Amounts borrowed   under this Section 2.01 and repaid or prepaid may not be reborrowed. Loans   may be Base Rate Loans or LIBO Rate Loans as further provided herein. The   failure of any Lender to make any Loan shall neither relieve any other Lender   of its obligation to fund its Loan in accordance with the provisions of this   Agreement nor increase the obligation of any such other Lender. - 39- 

    

 

2.02   Borrowings, Conversions and Continuations of Loans. (a) Each Borrowing, each   conversion of Loans from one Type to the other, and each continuation of LIBO   Rate Loans shall be made upon the Borrower’s irrevocable notice to the   Administrative Agent, which may be given by telephone. Each such notice must be   received by the Administrative Agent not later than 2:00 p.m. (i) three   Business Days prior to the requested date of the Borrowing of, conversion to   or continuation of LIBO Rate Loans or of any conversion of LIBO Rate Loans to   Base Rate Loans and (ii) one Business Day prior to the requested date of the   Borrowing of Base Rate Loans (except that the notice of the Borrowing of Term   B-1 Loans on the Amendment No. 24 Effective Date may be provided on such   shorter notice as may be agreed by the Administrative Agent). Each telephonic   notice by the Borrower pursuant to this Section 2.02(a) must be confirmed   promptly by delivery to the Administrative Agent of a written Committed Loan   Notice or Conversion/Continuation Notice, as the case may be, appropriately   completed and signed by a Responsible Officer of the Borrower. The Borrowing   of, conversion to or continuation of LIBO Rate Loans (other than Term B-1   Loans on the Amendment No. 24 Effective Date) shall be in a principal amount   of $2.0 million or a whole multiple of $1.0 million in excess thereof. The   Borrowing of or conversion to Base Rate (other than Term B-1 Loans on the   Amendment No. 24 Effective Date) Loans shall be in a principal amount of   $500,000 or a whole multiple of $100,000 in excess thereof. Each Committed   Loan Notice (whether telephonic or written) shall specify (i) the requested   date of the Borrowing (which shall be a Business Day), (ii) the principal   amount of Loans to be borrowed, (iii) the Class of Loans to which such notice   relates, (iv) the Type of Loans to be borrowed, and (v) if applicable, the   duration of the Interest Period with respect thereto. Each Conversion/Notice   (whether telephonic or written) shall specify the Class of Loans to which   such notice relates and (i) whether the Borrower is requesting a conversion   of Committed Loans from one Type to the other, or a continuation of LIBO Rate   Loans, (ii) the requested date of the conversion or continuation (which shall   be a Business Day), (iii) the principal amount of Loans to be converted or   continued, (iv) if applicable, the Type of Loans to which existing Loans are   to be converted, and (v) if applicable, the duration of the Interest Period   with respect thereto. If the Borrower fails to specify a Type of Loan in a   Committed Loan Notice or if the Borrower fails to give a timely notice of a   conversion or continuation in a Conversion/Notice, then the Loans shall be   made as, or converted to, Base Rate Loans. Any such automatic conversion to   Base Rate Loans shall be effective as of the last day of the Interest Period   then in effect with respect to the applicable LIBO Rate Loans. If the   Borrower requests a Borrowing of LIBO Rate Loans in any such Committed Loan   Notice or a conversion to or continuation of LIBO Rate Loans in a   Conversion/Continuation Notice, but fails to specify an Interest Period, the   Borrower will be deemed to have specified an Interest Period of one month.   For the avoidance of doubt, the notice of Borrowing of the Term B-1 Loans on   the Amendment No. 24 Effective Date is only required with respect to the Term   B-1 Loans of the Additional Term B-1 Lender (it being understood that such   notice of Borrowing shall specify the conversion of InitialTerm B Loans of   Amendment No. 24 Consenting Lenders pursuant to Section 2.01(ab)). (b) Following   receipt of a Committed Loan Notice, the Administrative Agent shall promptly   notify each applicable Lender of the amount of its share of such Loan (based   on the respective Commitments of the Lenders of the applicable Class) with   respect to the Loans referred to in such Committed Loan Notice, and if no   timely notice of a conversion or continuation in a Conversion/Continuation   Notice is provided by the Borrower, the Administrative Agent shall notify   each such Lender of the details of any automatic conversion to Base Rate   Loans described in Section 2.02(a). Each applicable Lender shall make the   amount of its Loan available to the Administrative Agent in immediately   available funds at the Administrative Agent’s Office not later than 1:00 p.m.   on the Business Day specified in the applicable Committed Loan Notice. Upon   satisfaction of the conditions set forth in Section 4.01 (or, if such   Borrowing is an Incremental Term Borrowing, the conditions set forth in the   applicable Additional Credit Extension Amendment and Section 2.12), the   Administrative Agent - 40- 

    

 

shall use   reasonable efforts to make all funds so received available to the Borrower in   like funds by no later than 4:00 p.m. on the day of receipt by the   Administrative Agent either by (i) crediting the account of the Borrower on   the books of JPMCB with the amount of such funds or (ii) wire transfer of   such funds, in each case in accordance with instructions provided to (and   reasonably acceptable to) the Administrative Agent by the Borrower. (c)   Except as otherwise provided herein, a LIBO Rate Loan may be continued or   converted only on the last day of an Interest Period for such LIBO Rate Loan.   During the existence of an Event of Default, no Loans may be requested as,   converted to or continued as LIBO Rate Loans without the consent of the   Required Lenders. (d) The Administrative Agent shall promptly notify the   Borrower and the Lenders of the interest rate applicable to any Interest   Period for LIBO Rate Loans upon determination of such interest rate. At any   time that Base Rate Loans are outstanding, the Administrative Agent shall   notify the Borrower and the Lenders of any change in JPMorgan’s prime rate   used in determining the Base Rate promptly following the public announcement   of such change. (e) After giving effect to all Borrowings, all conversions of   Loans from one Type to the other, and all continuations of Loans as the same   Type, there shall not be more than ten (10) Interest Periods in effect with   respect to all Loans. 2.03 Prepayment. (a) Optional. The Borrower may, upon   notice to the Administrative Agent (which notice, if furnished in connection   with a refinancing of the Obligations, may be conditional upon the   consummation of such refinancing), at any time or from time to time voluntarily   prepay Loans of any Class in whole or in part without premium or penalty   (except as provided in Section 2.14); provided, however, that no prepayments   of any Extended Term Loans of any series shall be permitted pursuant to this   Section 2.03(a) so long as any Loans of any Existing Term Loan Class from   which such Extended Term Loans were converted remain outstanding unless such   prepayment is accompanied by a pro rata (or greater proportionate) prepayment   of Loans of such Existing Term Loan Class; provided, further, that (i) such   notice must be received by the Administrative Agent not later than 2:00 p.m.   (A) one Business Day prior to any date of prepayment of LIBO Rate Loans and   (B) on the date of prepayment of Base Rate Loans; (ii) any prepayment of LIBO   Rate Loans shall be in a principal amount of $2.0 million or a whole multiple   of $1.0 million in excess thereof; and (iii) any prepayment of Base Rate   Loans shall be in a principal amount of $500,000 or a whole multiple of   $100,000 in excess thereof or, in each case, if less, the entire principal   amount thereof then outstanding. Each such notice shall specify the date and   amount of such prepayment, the Class and Type(s) of Loans to be prepaid and,   if LIBO Rate Loans are to be prepaid, the Interest Period(s) of such Loans.   The Administrative Agent will promptly notify each Lender of its receipt of   each such notice, and of the amount of such Lender’s share of such prepayment   (which shall be based on the respective principal amounts of Loans of the   applicable Class held by each Lender). If such notice is given by the   Borrower, the Borrower shall make such prepayment and the payment amount   specified in such notice shall be due and payable on the date specified   therein except that, subject to Section 3.05, any such notice in connection   with a refinancing of all Loans may be conditioned upon obtaining the   proceeds of a new financing. Any prepayment of a LIBO Rate Loan shall be   accompanied by all accrued interest on the amount prepaid, together with any   additional amounts required pursuant to Section 3.05. Optional prepayments of   the Loans of any Class shall be applied against the remaining scheduled   installments of principal due in respect of the Loans of such Class as   directed by the Borrower (or, if the Borrower shall fail to provide such   direction, in direct order of - 41- 

    

 

maturity   against the remaining scheduled installments due in respect of the Loans and   Other Term Loans under Section 2.05). (b) Mandatory. (i) Within five Business   Days after financial statements have been (or were required to have been)   delivered pursuant to Section 6.01(a) and the related Compliance Certificate   has been (or is required to have been) delivered pursuant to Section 6.02(a),   the Borrower shall prepay an aggregate principal amount of Loans equal to the   excess (if any) of (A) 5075% of Excess Cash Flow for the Fiscal Year of   BorrowerHoldings (commencing with the Fiscal Year ending February 23, 2013)   covered by (or which would have been covered by) such financial statements   over (B) the aggregate principal amount of Loans prepaid pursuant to Section   2.03(a) during the Fiscal Year of Holdings covered by (or which would have   been covered by) such financial statements, except or in the subsequent   Fiscal Year prior to the date of any required payment pursuant to this   Section 2.03(b)(i), except (x) to the extent such prepayments occurred in   connection with a refinancing of such Loans with other Indebtedness (such   prepayments to be applied as set forth in clause (v) below) or (y) if an   amount is deducted pursuant to a payment made in a subsequent Fiscal Year,   the same amount may not be deducted in the calculation of Excess Cash Flow in   the subsequent Fiscal Year; provided that (x) such percentage of Excess Cash   Flow shall be reduced to 50% of such Excess Cash Flow if the Consolidated   Leverage Ratio at the end of such Fiscal Year is equal to or less than 3.25   to 1.00 but greater than 2.75 to 1.00, (y) such percentage of Excess Cash   Flow shall be reduced to 25% of such Excess Cash Flow if the Consolidated   Leverage Ratio at the end of such Fiscal Year is equal to or less than   3.002.75 to 1.00 but greater than 2.00 to 1.00 and (yz) such prepayment shall   not be required if the Consolidated Leverage Ratio at the end of such Fiscal   Year is equal to or less than 2.00 to 1.00. (ii) If the Borrower or any of   its Restricted Subsidiaries Disposes of any property (other than any   Disposition of any property permitted by Section 7.05(a), (b), (c), (d), (e),   (g), (i) or (j)) which results in the realization by such Person of Net Cash   Proceeds, the Borrower shall prepay an aggregate principal amount of Loans   equal to 100% of such Net Cash Proceeds promptly (and in any event within ten   Business Days) following receipt thereof by such Person (such prepayments to   be applied as set forth in clause (v) below); provided, however, that so long   as no Event of Default shall have occurred and be continuing, the Borrower or   any other Restricted Subsidiary may reinvest all or any portion of such Net   Cash Proceeds in assets that the Borrower determines in good faith are used   or useful in the business of the Borrower or the Restricted Subsidiaries   (including acquisitions permitted under Section 7.03(h) and inventory) so   long as (A) within ten Business Days of receiving such Net Cash Proceeds the   Borrower shall have delivered a certificate to the Administrative Agent   stating that such Person intends to reinvest all or any portion of such Net   Cash Proceeds in such assets, (B) within 365 days after the receipt of such   Net Cash Proceeds, the Borrower shall have entered into a binding commitment   to reinvest such proceeds in such assets, and (C) such Net Cash Proceeds are   reinvested in such assets within 180 days of the date such commitment is   entered into (as certified by the Borrower in writing to the Administrative   Agent); provided, further, however, that (A) if the property subject to such   Disposition constituted Collateral under the Collateral Documents, then all   property purchased with the Net Cash Proceeds thereof pursuant to this   subsection shall be made subject to the Lien of the applicable Collateral   Documents in favor of the Collateral Agent, for its benefit and for the   benefit of the other Credit Parties in accordance with Section 6.12, and (B)   pending reinvestment, any Net Cash Proceeds in respect of Term Priority   Collateral in excess of $5.0 million shall be segregated from other funds of   the Borrower and its Subsidiaries in a deposit account subject to a control   agreement in favor of the Collateral Agent; and provided, further, however,   that any Net Cash Proceeds not so reinvested within the time periods   specified above shall be immediately applied to the prepayment of the Loans   as set forth in this Section 2.03(b)(ii). - 42- 

    

 

(iii) Upon the   incurrence or issuance by Borrower or any of its Restricted Subsidiaries of   any Refinancing Indebtedness or any Indebtedness not permitted to be incurred   or issued pursuant to Section 7.02, the Borrower shall prepay an aggregate   principal amount of Loans equal to 100% of all Net Cash Proceeds received   therefrom promptly (and in any event within one week) following receipt   thereof by such Person (such prepayments to be applied as set forth in clause   (v) below). (iv) Upon any Extraordinary Receipt being received by or paid to   or for the account of Borrower or any of its Restricted Subsidiaries, and not   otherwise included in clause (ii) of this Section 2.03(b), the Borrower shall   prepay an aggregate principal amount of Loans equal to 100% of all Net Cash   Proceeds received therefrom promptly (and in any event within ten Business   Days) following receipt thereof by such Person (such prepayments to be   applied as set forth in clause (v) below); provided, however, that with   respect to any proceeds of insurance and condemnation awards (or payments in   lieu thereof), and so long as no Event of Default shall have occurred and be   continuing, such Person may apply such Net Cash Proceeds to replace or repair   the equipment, fixed assets or real property in respect of which such Net   Cash Proceeds were received or to invest in assets that the Borrower   determines in good faith are used or useful in the business of the Borrower   or the Restricted Subsidiaries (including acquisitions permitted under   Section 7.03(h) and inventory) so long as (A) within ten Business Days of   receiving such Net Cash Proceeds the Borrower shall have delivered a   certificate to the Administrative Agent stating that such Person intends to   reinvest all or such portion of such Net Cash Proceeds to replace or repair   the equipment, fixed assets or real property in respect of which such cash   proceeds were received or to invest in such assets, (B) within 365 days after   the receipt of such Net Cash Proceeds, the Borrower shall have entered into a   binding commitment to reinvest such proceeds to replace or repair equipment,   fixed assets or real property or to invest in such assets, and (C) such Net   Cash Proceeds are so used within 180 days of the date such commitment is   entered into (as certified by the Borrower in writing to the Administrative   Agent); provided, further, however, that (A) if the property subject to such   Extraordinary Receipt constituted Collateral under the Collateral Documents,   then all property purchased with the Net Cash Proceeds thereof pursuant to   this subsection shall be made subject to the Lien of the applicable   Collateral Documents in favor of the Collateral Agent, for its benefit and   for the benefit of the other Credit Parties in accordance with Section 6.12   and (B) pending reinvestment, any Net Cash Proceeds in respect of Term   Priority Collateral in excess of $5.0 million shall be segregated from the   other funds of Holdings and its Subsidiaries in a deposit account subject to   a control agreement in favor of the Collateral Agent; provided, further,   however, that any cash proceeds not so applied shall be immediately applied   to the prepayment of the Loans as set forth in this Section 2.03(b)(iv). (v)   Each prepayment of Loans pursuant to the foregoing provisions of this Section   2.03(b) (other than from the Net Cash Proceeds of Refinancing Indebtedness   which will be applied to the Class or Classes of Term Loans selected by the   Borrower) shall be allocated ratably between the Term Loans and, unless   otherwise provided in the Additional Credit Extension Amendment providing for   such other Class of Loans, each other Class of Loans and shall be applied to   the remaining scheduled principal payments thereof in direct order of   maturity (or as otherwise specified by the Borrower). Any Lender may elect,   by notice to the Administrative Agent at or prior to the time and in the   manner specified by the Administrative Agent, prior to any prepayment of   Loans to be made pursuant to clause (i), (ii) or (iv) of this Section   2.03(b), to decline all (but not a portion) of its pro rata share of such   prepayment (such declined amounts “Declined Proceeds”). Any Declined Proceeds   shall be offered to the Lenders of the applicable Class or Classes not so   declining such prepayment (with such Lenders having the right to decline any   prepayment with Declined Proceeds at the time and in the manner specified by   the Administrative Agent). - 43- 

    

 

Notwithstanding   any of the other provisions of clauses (i), (ii), or (iv) of this Section   2.03(b), so long as no Default under Section 8.01(a) or Section 8.01(f) or   Event of Default shall have occurred and be continuing, if, on any date on   which a prepayment would otherwise be required to be made pursuant to clauses   (i), (ii), or (iv) of this Section 2.03(b), the aggregate amount of Net Cash   Proceeds required by such clause to be applied to prepay Loans on such date   is less than or equal to $5.0 million, the Borrower may defer such prepayment   until the first date on which the aggregate amount of Net Cash Proceeds or other   amounts otherwise required under clause (i), (ii), or (iv) of this Section   2.03(b) to be applied to prepay Loans exceeds $5.0 million. Upon the   occurrence of a Default under Section 8.01(a) or Section 8.01(f) or an Event   of Default during any such deferral period, the Borrower shall immediately   prepay the Loans in the amount of all Net Cash Proceeds received by the   Borrower and other amounts, as applicable, that are required to be applied to   prepay Loans under this Section 2.03(b) (without giving effect to the first   sentence of this clause (v)) but which have not previously been so applied.   Any prepayment of a LIBO Rate Loan shall be accompanied by all accrued   interest on the amount prepaid, together with any additional amount required   pursuant to Section 3.05. (vi) The Borrower shall deliver to the   Administrative Agent, (x) at the time of each prepayment required under this   Section 2.03(b), a certificate signed by a Responsible Officer of the   Borrower setting forth in reasonable detail the calculation of the amount of   such prepayment and (y) to the extent practicable, at least three days’ prior   written notice of such prepayment. Each notice of prepayment shall specify   the prepayment date, the Type of each Loan being prepaid and the principal   amount of each Loan (or portion thereof) to be prepaid. (c) The prepayments   of the Loans pursuant to Section 2.03(b)(i), (ii) or (iv), to the extent the   Net Cash Proceeds giving rise to the requirement to make a prepayment   pursuant to one of such clauses are generated by a Foreign Subsidiary, shall   be subject to (x) permissibility under local law relating to financial   assistance, corporate benefit, restrictions on upstreaming of cash   intra-group and the fiduciary and statutory duties of the directors of such   Foreign Subsidiary and (y) restrictions in its material organizational   documents and in agreements governing Indebtedness of such Foreign Subsidiary   (including as a result of minority ownership) (each restriction referred to   in clauses (i) and (ii), a “Restriction”). Further, there will be no   requirement to make any such prepayment where a Responsible Officer of the   Borrower delivers a certificate to the Administrative Agent stating that it   would incur a material tax liability by doing so, including a material deemed   dividend pursuant to Section 956 of the Internal Revenue Code. The   non-application and nonpayment of any prepayment amounts pursuant to Sections   2.03(b)(i), (ii) or (iv) as a consequence of this Section 2.03(c) will not,   for the avoidance of doubt, constitute a Default or an Event of Default, and   such prepayment amounts shall be available for working capital purposes of   Borrower and its Restricted Subsidiaries as long as not required to be   prepaid in accordance with the following provisions. Borrower and its   Restricted Subsidiaries will use and shall procure that any of their   Subsidiaries will use commercially reasonable efforts to overcome or   eliminate any Restrictions and/or minimize any such costs of prepayment   and/or use the other cash resources of Borrower and its Subsidiaries (subject   to the considerations above) to make the relevant prepayment. If at any time   within one year of a prepayment being forgiven due to a Restriction, such   Restriction is removed, any relevant proceeds will at the end of the then   current Interest Period (or, if Base Rate Loans are then outstanding,   immediately) be applied in accordance with the applicable prepayment   provision above (net of any reasonable costs, expenses or taxes incurred by   Borrower and its Restricted Subsidiaries and arising exclusively as a result   of compliance with the preceding sentence). (d) Discounted Voluntary   Prepayments. (i) Notwithstanding anything to the contrary in Section 2.03(a)   (which provisions shall not be applicable to this Section 2.03(d)), the   Borrower shall have the right at any time and from - 44- 

    

 

time to time to   prepay its Loans of any Class owing to Lenders electing to participate in   such prepayments at a discount to the par value of such Loans and on a   non-pro rata basis (each, a “Discounted Voluntary Prepayment”) pursuant to   the procedures described in this Section 2.03(d); provided that (A) no   Discounted Voluntary Prepayment shall be made unless immediately after giving   effect to such Discounted Voluntary Prepayment, no Default or Event of   Default has occurred and is continuing, (B) any Discounted Voluntary   Prepayment shall be offered to all Lenders with Loans of the applicable Class   on a pro rata basis and (C) the Borrower on the date such Discounted   Voluntary Prepayment is made shall deliver to the Administrative Agent a   certificate of a Responsible Officer of the Borrower stating (1) that no   Default or Event of Default has occurred and is continuing or would result   from the Discounted Voluntary Prepayment, (2) that each of the conditions to   such Discounted Voluntary Prepayment contained in this Section 2.03(d) has   been satisfied or waived and (3) neither the Borrower nor any of its   Affiliates has any non-public information with respect to any Loan Party or   the Loans that has not been disclosed to the Lenders (other than to Public   Lenders) that would reasonably be expected to be material to a Lender’s   decision to participate in a Discounted Voluntary Prepayment. (ii) To the   extent the Borrower seeks to make a Discounted Voluntary Prepayment, the   Borrower will provide written notice to the Administrative Agent   substantially in the form of Exhibit B hereto (each, a “Discounted Prepayment   Option Notice”) that the Borrower desires to prepay Loans in an aggregate   principal amount specified therein by the Borrower (each, a “Proposed   Discounted Prepayment Amount”), in each case at a discount to the par value   of such Loans as specified below. The Proposed Discounted Prepayment Amount   of Loans shall not be less than $10.0 million. The Discounted Prepayment   Option Notice shall further specify with respect to the proposed Discounted   Voluntary Prepayment: (A) the Proposed Discounted Prepayment Amount for Loans   and the Class of Loans to which such offer relates, (B) a discount range   (which may be a single percentage) selected by the Borrower with respect to   such proposed Discounted Voluntary Prepayment equal to a percentage of par of   the principal amount of such Loans (the “Discount Range”) and (C) the date by   which Lenders are required to indicate their election to participate in such   proposed Discounted Voluntary Prepayment which shall be at least three   Business Days following the date of the Discounted Prepayment Option Notice   (the “Acceptance Date”). (iii) Upon receipt of a Discounted Prepayment Option   Notice in accordance with Section 2.03(d)(ii), the Administrative Agent shall   promptly notify each applicable Lender thereof. On or prior to the Acceptance   Date, each Lender with Loans may specify by written notice substantially in the   form of Exhibit G hereto (each, a “Lender Participation Notice”) to the   Administrative Agent (A) a maximum discount to par (the “Acceptable   Discount”) within the Discount Range (for example, a Lender specifying a   discount to par of 20% would accept a prepayment price of 80% of the par   value of the Loans to be prepaid) and (B) a maximum principal amount (subject   to rounding requirements specified by the Administrative Agent) of Loans of   the applicable Class held by such Lender with respect to which such Lender is   willing to permit a Discounted Voluntary Prepayment at the Acceptable   Discount (“Offered Loans”). Based on the Acceptable Discounts and principal   amounts of Loans specified by the Lenders in Lender Participation Notices,   the Administrative Agent, in consultation with the Borrower, shall calculate   the applicable discount for Loans (the “Applicable Discount”), which   Applicable Discount shall be (A) the percentage specified by the Borrower if   the Borrower has selected a single percentage pursuant to Section 2.03(d)(ii)   for the Discounted Voluntary Prepayment or (B) otherwise, the highest   Acceptable Discount at which the Borrower can pay the Proposed Discounted   Prepayment Amount in full (determined by adding the principal amounts of   Offered Loans commencing with the Offered Loans with the highest Acceptable   Discount); provided, however, that in the event that such Proposed Discounted   Prepayment Amount cannot be repaid in full at any Acceptable Discount, the   Applicable Discount shall be the lowest Acceptable Discount specified by the   Lenders that is within the Discount Range. The Applicable Discount shall be   applicable for all Lenders who have offered to participate in - 45- 

    

 

the Discounted   Voluntary Prepayment and have Qualifying Loans (as defined below). Any Lender   with outstanding Loans under the applicable Class whose Lender Participation   Notice is not received by the Administrative Agent by the Acceptance Date   shall be deemed to have declined to accept a Discounted Voluntary Prepayment   of any of its Loans at any discount to their par value within the Applicable   Discount. (iv) The Borrower shall make a Discounted Voluntary Prepayment by   prepaying those Loans (or the respective portions thereof) of the applicable   Class offered by the Lenders (“Qualifying Lenders”) that specify an   Acceptable Discount that is equal to or greater than the Applicable Discount   (“Qualifying Loans”) at the Applicable Discount; provided that if the   aggregate proceeds required to prepay all Qualifying Loans (disregarding any   interest payable at such time) would exceed the amount of aggregate proceeds   required to prepay the Proposed Discounted Prepayment Amount, such amounts in   each case calculated by applying the Applicable Discount, the Borrower shall   prepay such Qualifying Loans ratably among the Qualifying Lenders based on   their respective principal amounts of such Qualifying Loans (subject to   rounding requirements specified by the Administrative Agent). If the   aggregate proceeds required to prepay all Qualifying Loans (disregarding any   interest payable at such time) would be less than the amount of aggregate   proceeds required to prepay the Proposed Discounted Prepayment Amount, such   amounts in each case calculated by applying the Applicable Discount, the Borrower   shall prepay all Qualifying Loans. (v) Each Discounted Voluntary Prepayment   shall be made within five Business Days of the Acceptance Date, without   premium or penalty, upon irrevocable notice substantially in the form of   Exhibit I hereto (each a “Discounted Voluntary Prepayment Notice”), delivered   to the Administrative Agent no later than 1:00 p.m. New York City time, two   Business Days prior to the date of such Discounted Voluntary Prepayment,   which notice shall specify the date and amount of the Discounted Voluntary   Prepayment and the Applicable Discount determined by the Administrative   Agent. Upon receipt of any Discounted Voluntary Prepayment Notice the   Administrative Agent shall promptly notify each relevant Lender thereof. If   any Discounted Voluntary Prepayment Notice is given, the amount specified in   such notice shall be due and payable to the applicable Lenders, subject to   the Applicable Discount on the applicable Loans, on the date specified   therein together with accrued interest (on the par principal amount) to, but   not including, such date on the amount prepaid. (vi) To the extent not   expressly provided for herein, each Discounted Voluntary Prepayment shall be   consummated pursuant to reasonable procedures (including as to timing,   rounding, minimum amounts, Type and Interest Periods and calculation of   Applicable Discount in accordance with Section 2.03(d)(iii) above) reasonably   established by the Administrative Agent and the Borrower. (vii) Prior to the   delivery of a Discounted Voluntary Prepayment Notice, upon written notice to   the Administrative Agent, the Borrower may withdraw its offer to make a   Discounted Voluntary Prepayment pursuant to any Discounted Prepayment Option   Notice. (viii) To the extent the Loans are prepaid pursuant to this Section   2.03(d), scheduled amortization amounts for the Loans of such Class under   Section 2.05 shall be reduced on a pro rata basis by the principal amount of   the Loans so prepaid. (ix) For the avoidance of doubt, any Loans that are   prepaid pursuant to this Section 2.03(d) shall be deemed canceled immediately   upon giving effect to such prepayment. 2.04 Termination or Reduction of   Commitments. The Aggregate Commitments (other than the Additional Term B   Commitment or Additional Term B-1 Commitment) shall be - 46- 

    

 

automatically   and permanently reduced to zero on the date of the initial Borrowing (other   than any Incremental Term Loan Commitments, which shall terminate as provided   in the related Additional Credit Extension Amendment). The Additional Term B   Commitment shall be automatically and permanently reduced to zero upon the   making of the Additional Term B Lender’s Additional Term B Loans pursuant to   Section 2.01(a). The Additional Term B-1 Commitment shall be automatically   and permanently reduced to zero upon the making of the Additional Term B-1   Lender’s Additional Term B-1 Loans pursuant to Section 2.01(b). 2.05   Repayment of Loans. (a) (i) The Borrower shall repay to the Lenders the   aggregate principal amount of all Term B Loans outstanding on the following   dates in the respective amounts set forth opposite such dates (as adjusted   from time to time pursuant to Sections 2.03(a), 2.03(b)(v), 2.03(d)(viii) and   2.12):all Term B Loans that are not Converted Term B Loans on the Amendment   No. 4 Effective Date. (b) [Reserved] (c) (b) The Borrower shall repay to the   Administrative Agent for the ratable account of the Lenders with Initial   Loans that are not Converted Initial Loans, all Initial Loans that are not   Converted Initial Loans on the Amendment No. 2 Effective Date. (d) The   Borrower shall repay to the Lenders on each March 31, June 30, September 30   and December 31 prior to the Maturity Date, an aggregate principal amount   equal to 0.625% of the initial principal amount of Term B-1 Loans outstanding   on the Amendment No. 4 Effective Date (as adjusted from time to time pursuant   to Sections 2.03(a), 2.03(b)(v), 2.03(d)(viii) and 2.12). To the extent not   previously paid, all Term B-1 Loans shall be due and payable on the Maturity   Date. - 47-December 31, 2013$905,625 March 31, 2014$905,625 June 30,   2014$905,625 September 30, 2014$905,625 December 31, 2014$905,625 March 31,   2015$905,625 June 30, 2015$905,625 September 30, 2015$905,625 December 31,   2015$905,625 March 31, 2016$905,625 June 30, 2016$905,625 September 30,   2016$905,625 December 31, 2016$905,625 March 31, 2017$905,625 June 30,   2017$905,625 September 30, 2017$905,625 December 31, 2017$905,625 March 31,   2018$905,625 June 30, 2018$905,625 September 30, 2018$905,625 December 31,   2018$905,625 Maturity DateRemaining outstanding Term B Loan amount 

    

 

(e) (c)   Payments or principal on Other Term Loans, Extended Term Loans and   Replacement Loans shall be required as provided in the applicable Additional   Credit Extension Amendment. (f) (d) All repayments pursuant to this Section   2.05 shall (i) be subject to Section 3.05, but shall otherwise be without   premium or penalty and (ii) be accompanied by accrued and unpaid interest on   the principal amount to be paid. 2.06 Interest. (a) Subject to the provisions   of Section 2.06(b), (i) each Loan which is a LIBO Rate Loan shall bear   interest on the outstanding principal amount thereof for each Interest Period   at a rate per annum equal to the LIBO Rate for such Interest Period plus the   Applicable Margin; and (ii) each Loan which is a Base Rate Loan shall bear   interest on the outstanding principal amount thereof from the applicable   borrowing date at a rate per annum equal to the Base Rate plus the Applicable   Margin. (b) If any amount owed under this Agreement is not paid when due   (without regard to any applicable grace periods), whether at stated maturity,   by acceleration or otherwise, such amount shall thereafter bear interest at a   fluctuating interest rate per annum at all times equal to the Default Rate to   the fullest extent permitted by applicable Laws. Accrued and unpaid interest   on past due amounts (including interest on past due interest) shall be due   and payable upon demand. (c) Interest on each Loan shall be due and payable   in arrears on each Interest Payment Date applicable thereto and at such other   times as may be specified herein. Interest hereunder shall be due and payable   in accordance with the terms hereof before and after judgment, and before and   after the commencement of any proceeding under any Debtor Relief Law. 2.07   Fees. The Borrower shall pay to the Arrangers and the Administrative Agent   for their own respective accounts fees in the amounts and at the times   specified in the letter agreements entered into by the Borrower, the   Administrative Agent and the Arrangers. Such fees shall be fully earned when   paid and shall not be refundable for any reason whatsoever. 2.08 Computation   of Interest and Fees. All computations of interest for Base Rate Loans when   the Base Rate is determined by the Administrative Agent’s “prime rate” shall   be made on the basis of a year of 365 or 366 days, as the case may be, and   actual days elapsed. All other computations of fees and interest shall be   made on the basis of a 360-day year and actual days elapsed (which results in   more fees or interest, as applicable, being paid than if computed on the   basis of a 365-day year). Interest shall accrue on each Loan for the day on   which the Loan is made, and shall not accrue on a Loan, or any portion   thereof, for the day on which the Loan or such portion is paid, provided that   any Loan that is repaid on the same day on which it is made shall, subject to   Section 2.10(a), bear interest for one day. Each determination by the   Administrative Agent of an interest rate or fee hereunder shall be conclusive   and binding for all purposes, absent manifest error. 2.09 Evidence of Debt.   The Loans made by each Lender shall be evidenced by one or more accounts or   records maintained by the Administrative Agent in the ordinary course of   business. In addition, each Lender may record in such Lender’s internal records   an appropriate notation evidencing the date and amount of each Loan from such   Lender, each payment and prepayment of principal of any such Loan, and each   payment of interest, fees and other amounts due in connection with the   Obligations due to such Lender. The accounts or records maintained by the   Administrative Agent and each Lender - 48- 

    

 

shall be   conclusive, absent manifest error, of the amount of the Loans made by the   Lenders to the Borrower and the interest and payments thereon. Any failure to   so record or any error in doing so shall not, however, limit or otherwise   affect the obligation of the Borrower hereunder to pay any amount owing with   respect to the Obligations. In the event of any conflict between the accounts   and records maintained by any Lender and the accounts and records of the   Administrative Agent in respect of such matters, the accounts and records of   the Administrative Agent shall control in the absence of manifest error. Upon   the request of any Lender made through the Administrative Agent, the Borrower   shall execute and deliver to such Lender (through the Administrative Agent) a   Note, which shall evidence such Lender’s Loans (in addition to such Lender’s   accounts or records). Each Lender may attach schedules to its Note and   endorse thereon the date, Type (if applicable), amount and maturity of its   Loans and payments with respect thereto. Upon receipt of an affidavit of a   Lender as to the loss, theft, destruction or mutilation of such Lender’s Note   and upon cancellation of such Note, the Borrower will issue, in lieu thereof,   a replacement Note in favor of such Lender, in the same principal amount   thereof and otherwise of like tenor. 2.10 Payments Generally; Administrative   Agent’s Clawback. (a) General. All payments to be made by the Borrower shall   be made without condition or deduction for any counterclaim, defense,   recoupment or setoff. Except as otherwise expressly provided herein, all   payments by the Borrower hereunder shall be made to the Administrative Agent,   for the account of the respective Lenders to which such payment is owed, at   the Administrative Agent’s Office in Dollars and in immediately available   funds not later than 2:00 p.m. on the date specified herein. The   Administrative Agent will promptly distribute to each Lender its share of   such payment in like funds as received by wire transfer to such Lender’s   Lending Office. All payments received by the Administrative Agent after 2:00   p.m. shall be deemed received on the next succeeding Business Day and any applicable   interest or fee shall continue to accrue. If any payment to be made by the   Borrower shall come due on a day other than a Business Day, payment shall be   made on the next following Business Day, and such extension of time shall be   reflected in computing interest or fees, as the case may be. (b) (i) Funding   by Lenders; Presumption by Administrative Agent. Unless the Administrative   Agent shall have received notice from a Lender prior to the proposed date of   any Borrowing of Loans 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 Section 2.02 (or in the case of a   Borrowing of Base Rate Loans, that such Lender has made such share available   in accordance with and at the time required by Section 2.02) and may, in   reliance upon such assumption, make available to the Borrower a corresponding   amount. In such event, if a Lender has not in fact made its share of the   applicable Borrowing available to the Administrative Agent, then the   applicable Lender and the Borrower severally agree to pay to the   Administrative Agent forthwith on demand such corresponding amount in   immediately available funds with interest thereon, for each day from and   including the date such amount is made available to the Borrower to but   excluding the date of payment to the Administrative Agent, at (A) in the case   of a payment to be made by such Lender, the greater of the Federal Funds   Effective Rate and a rate determined by the Administrative Agent in   accordance with banking industry rules on interbank compensation plus any   administrative processing or similar fees customarily charged by the   Administrative Agent in connection with the foregoing, and (B) in the case of   a payment to be made by the Borrower, the interest rate applicable to Base   Rate Loans. If the Borrower and such Lender shall pay such interest to the   Administrative Agent for the same or an overlapping period, the   Administrative Agent shall promptly remit to the Borrower the amount of such   interest paid by the Borrower for such period. If such Lender pays its share   of the applicable Borrowing to the Administrative Agent, then the - 49- 

    

 

amount so paid   shall constitute such Lender’s Loan included in such Borrowing. Any payment   by the Borrower shall be without prejudice to any claim the Borrower may have   against a Lender that shall have failed to make such payment to the   Administrative Agent. (ii) Payments by Borrower; Presumptions by   Administrative Agent. Unless the Administrative Agent shall have received   notice from the Borrower prior to the time at which any payment is due to the   Administrative Agent for the account of the Lenders hereunder that the   Borrower will not make such payment, the Administrative Agent may assume that   the Borrower has made such payment on such date in accordance herewith and   may, in reliance upon such assumption, distribute to the Lenders the amount   due. In such event, if the Borrower has not in fact made such payment, then   each of the Lenders severally agrees to repay to the Administrative Agent   forthwith on demand the amount so distributed to such Lender in immediately   available funds with interest thereon, for each day from and including the   date such amount is distributed to it to but excluding the date of payment to   the Administrative Agent, at the greater of the Federal Funds Effective Rate   and a rate determined by the Administrative Agent in accordance with banking   industry rules on interbank compensation. A notice of the Administrative   Agent to any Lender or the Borrower with respect to any amount owing under   this subsection (b) shall be conclusive, absent manifest error. (c) Failure   to Satisfy Conditions Precedent. If any Lender makes available to the   Administrative Agent funds for any Loan to be made by such Lender as provided   in the foregoing provisions of this Article II, and such funds are not made   available to the Borrower by the Administrative Agent because the conditions   to the applicable Borrowing set forth in Article IV or in the applicable   Additional Credit Extension Amendment, as applicable, are not satisfied or   waived in accordance with the terms hereof or thereof, the Administrative   Agent shall return such funds (in like funds as received from such Lender) to   such Lender, without interest. (d) Obligations of Lenders Several. The   obligations of the Lenders hereunder to make Committed Loans and to make   payments pursuant to Section 11.04(c) are several and not joint. The failure   of any Lender to make any Committed Loan or to make any payment under Section   11.04(c) on any date required hereunder shall not relieve any other Lender of   its corresponding obligation to do so on such date, and no Lender shall be responsible   for the failure of any other Lender to so make its Committed Loan or to make   its payment under Section 11.04(c). (e) Funding Source. Nothing herein shall   be deemed to obligate any Lender to obtain the funds for any Loan in any   particular place or manner or to constitute a representation by any Lender   that it has obtained or will obtain the funds for any Loan in any particular   place or manner. (f) Insufficient Funds. If at any time insufficient funds   are received by and available to the Administrative Agent to pay fully all   amounts of principal, interest and fees then due hereunder, such funds shall   be applied (i) first, toward payment of interest and fees then due hereunder,   ratably among the parties entitled thereto in accordance with the amounts of   interest and fees then due to such parties, and (ii) second, toward payment   of principal then due hereunder, ratably among the parties entitled thereto   in accordance with the amounts of principal then due to such parties. 2.11   Sharing of Payments by Lenders. If any Lender shall, by exercising any right   of setoff or counterclaim or otherwise, obtain payment in respect of (a)   Obligations due and payable to such Lender hereunder and under the other Loan   Documents at such time in excess of its ratable share (according to the   proportion of (i) the amount of such Obligations due and payable to such   Lender at such time to (ii) the aggregate amount of the Obligations due and   payable to all Lenders hereunder and - 50- 

    

 

under the other   Loan Documents at such time) of payments on account of the Obligations due   and payable to all Lenders hereunder and under the other Loan Documents at   such time obtained by all the Lenders at such time or (b) Obligations owing   (but not due and payable) to such Lender hereunder and under the other Loan   Documents at such time in excess of its ratable share (according to the   proportion of (i) the amount of such Obligations owing (but not due and   payable) to such Lender at such time to (ii) the aggregate amount of the   Obligations owing (but not due and payable) to all Lenders hereunder and   under the other Loan Parties at such time) of payment on account of the   Obligations owing (but not due and payable) to all Lenders hereunder and   under the other Loan Documents at such time obtained by all of the Lenders at   such time, then the Lender receiving such greater proportion shall (a) notify   the Administrative Agent of such fact, and (b) purchase (for cash at face   value) participations in the Loans of the other Lenders, or make such other   adjustments as shall be equitable, so that the benefit of all such payments   shall be shared by the Lenders ratably in accordance with the aggregate   amount of Obligations then due and payable to the Lenders or owing (but not   due and payable) to the Lenders, as the case may be, provided that: (i) if   any such participations or subparticipations are purchased and all or any   portion of the payment giving rise thereto is recovered, such participations   or subparticipations shall be rescinded and the purchase price restored to   the extent of such recovery, without interest; and (ii) the provisions of   this Section 2.11 shall not be construed to apply to (x) any payment made by   the Borrower pursuant to and in accordance with the express terms of this Agreement   or (y) any payment obtained by a Lender as consideration for the assignment   of or sale of a participation in any of its Loans to any assignee or   participant in accordance with this Agreement. Each Loan Party consents to   the foregoing and agrees, to the extent it may effectively do so under   applicable law, that any Lender acquiring a participation pursuant to the   foregoing arrangements may exercise against such Loan Party rights of setoff   and counterclaim with respect to such participation as fully as if such   Lender were a direct creditor of such Loan Party in the amount of such   participation. 2.12 Incremental Term Loan Commitments. (a) The Borrower may,   by written notice to the Administrative Agent from time to time, request   Incremental Term Loan Commitments in an amount (excluding any Incremental   Term Loan Commitments in respect of Refinancing Term Loans) not to exceed the   Incremental Term Loan Amount from one or more Incremental Term Lenders, which   may include any existing Lender; provided that each Incremental Term Lender,   if not already a Lender hereunder, shall be subject to the approval of the   Administrative Agent to the extent such consent would be required for an   assignment to such Lender pursuant to Section 11.06(b). Such notice shall set   forth (i) the amount of the Incremental Term Loan Commitments being requested   (which shall be in minimum increments of $1.0 million and a minimum amount of   $5.0 million or such lesser amount equal to the remaining Incremental Term   Loan Amount), (ii) the date on which such Incremental Term Loan Commitments   are requested to become effective, and (iii) whether such Incremental Term   Loan Commitments are commitments to make additional Term Loans or commitments   to make term loans with terms different from the Loans (“Other Term Loans”).   (b) The Borrower and each Incremental Term Lender shall execute and deliver   to the Administrative Agent an Additional Credit Extension Amendment and such   other documentation as the Administrative Agent shall reasonably specify to   evidence the Incremental Term Loan Commitment of each Incremental Term   Lender. Each Additional Credit Extension Amendment pursuant to this - 51- 

    

 

Section 2.12   shall specify the terms of the Incremental Term Loans to be made thereunder;   provided that, without the prior written consent of the Required Lenders, (i)   the final maturity date of any Other Term Loans shall be no earlier than the   Maturity Date of the Term B-1 Loans, (ii) the weighted average life to   maturity of the Other Term Loans shall be no shorter than the weighted   average life to maturity of the then already outstanding Term B-1 Loans,   (iii) any Incremental Term Loans shall rank (A) pari passu in right of   payment to the Loans and (B) with respect to security, pari passu with the   Term Loans and (iv) the provisions with respect to payment of interest,   original issue discount and upfront fees shall be as set forth in the   applicable Additional Credit Extension Amendment; provided that if the Yield   of any Incremental Term Loans (other than Refinancing Term Loans) exceeds the   Yield of the Term B-1 Loans by more than 50 basis points, then the Applicable   Margin for the Term B-1 Loans shall be increased to the extent required so   that the Yield of the Term B-1 Loans is equal to the Yield of such   Incremental Term Loans minus 50 basis points and (v) all other terms (other   than the amortization schedule, which, subject to clauses (i) and (ii) above,   shall be determined by Borrower and the Lenders thereunder) applicable to any   Incremental Term Loans shall either be substantially identical to the terms   applicable to the Term Loans or shall be reasonably satisfactory to the   Administrative Agent. For the avoidance of doubt, no Lender shall have any   obligation to provide any Incremental Term Loan. The Administrative Agent   shall promptly notify each Lender as to the effectiveness of each Additional   Credit Extension Amendment. Each of the parties hereto hereby agrees that,   upon the effectiveness of any Additional Credit Extension Amendment pursuant   to this Section 2.12, this Agreement and the other Loan Documents shall be   deemed amended to the extent (but only to the extent) necessary to reflect   the existence and terms of the Incremental Term Loan Commitment and the   Incremental Term Loans evidenced thereby. (c) Notwithstanding the foregoing,   no Incremental Term Loan Commitment shall become effective under this Section   2.12 unless (i) on the date of such effectiveness, the representations and   warranties of the Borrower and each other Loan Party contained in this   Agreement and the other Loan Documents shall be true in all material respects   on such date except to the extent that such representations and warranties specifically   refer to an earlier date, in which case they shall be true and correct as of   such earlier date, (ii) no Default or Event of Default shall have occurred or   be continuing or would result therefrom, (iii) calculations shall have been   made by the Borrower demonstrating that, on a Pro Forma Basis, the   Consolidated Leverage Ratio (calculated to exclude the net cash proceeds from   such Incremental Term Loan Commitment) for the Measurement Period most   recently ended prior to the date of such effectiveness is no greater than   4.00 to 1.00, (iv) the Administrative Agent shall have received (with   sufficient copies for each of the Incremental Term Lenders) an officer’s   certificate executed by a Responsible Officer of the Borrower certifying as   to compliance with preceding clauses (i) and (ii) and containing the   calculations (in reasonable detail) required by preceding clause (iii),   together with (unless otherwise specified in the applicable Additional Credit   Extension Amendment) legal opinions, board resolutions and other closing   certificates reasonably requested by the Administrative Agent and consistent   with those delivered on the Closing Date under Section 4.01, (v) all fees and   expenses owing to the Administrative Agent or the Incremental Term Lenders in   connection with such Incremental Term Loan Commitment shall have been paid,   (vi) the Additional Credit Extension Amendment and any other documents   entered into in connection therewith shall be reasonably satisfactory to the   Administrative Agent. (d) Each of the parties hereto hereby agrees that the   Administrative Agent may, in consultation with the Borrower, take any and all   action as may be reasonably necessary to ensure that all Incremental Term   Loans (other than Other Term Loans), when originally made, are included in   each Borrowing of outstanding Loans on a pro rata basis. This may be   accomplished by requiring each outstanding LIBO Rate Borrowing to be   converted into a Base Rate Borrowing on the date of each Incremental Term   Loan, or by allocating a portion of each Incremental Term Loan to each   outstanding - 52- 

    

 

LIBO Rate Loan   on a pro rata basis. Any conversion of LIBO Rate Loans to Base Rate Loans   required by the preceding sentence shall be subject to Section 3.05. If any   Incremental Term Loan is to be allocated to an existing Interest Period for a   LIBO Rate Borrowing, then the interest rate thereon for such Interest Period   and the other economic consequences thereof shall be as set forth in the   applicable Additional Credit Extension Amendment. In addition, to the extent   any Incremental Term Loans are not Other Term Loans, the scheduled   amortization payments under Section 2.05(a)(i or 2.05(c) required to be made   after the making of such Incremental Term Loans shall be ratably increased by   the aggregate principal amount of such Incremental Term Loans. 2.13 Extended   Term Loans. (a) The Borrower may at any time and from time to time request   that all or a portion of the Loans of any Class in an aggregate principal   amount of not less than $50.0 million (or, if less, all remaining Term Loans   of such Class) (an “Existing Term Loan Class”) be converted to extend the   scheduled maturity date(s) of any payment of principal with respect to all or   a portion of any principal amount of such Loans (any such Loans which have   been so converted, “Extended Term Loans”) and to provide for other terms   consistent with this Section 2.13. In order to establish any Extended Term   Loans, the Borrower shall provide a notice to the Administrative Agent (who   shall provide a copy of such notice to each of the Lenders under the Existing   Term Loan Class) (an “Extension Request”) setting forth the proposed terms of   the Extended Term Loans to be established, which shall be consistent with the   Loans under the Existing Term Loan Class from which such Extended Term Loans   are to be converted except that: (i) all or any of the scheduled amortization   payments of principal of the Extended Term Loans may be delayed to later   dates than the scheduled amortization payments of principal of the Loans of   such Existing Term Loan Class to the extent provided in the applicable   Additional Credit Extension Amendment; (ii) the interest margins with respect   to the Extended Term Loans may be different than the Applicable Margin for   the Loans of such Existing Term Loan Class and upfront fees may be paid to   the Extending Term Lenders to the extent provided in the applicable   Additional Credit Extension Amendment; and (iii) the Additional Credit   Extension Amendment may provide for other covenants and terms that apply only   after the final maturity date of all then outstanding Loans. (b) Any Extended   Term Loans converted pursuant to any Extension Request shall be designated a   series of Extended Term Loans for all purposes of this Agreement; provided   that, subject to the limitations set forth in clause (a) above, any Extended   Term Loans converted from an Existing Term Loan Class may, to the extent   provided in the applicable Additional Credit Extension Amendment and   consistent with the requirements set forth above, be designated as an   increase in any previously established Class of Loans. (c) The Borrower shall   provide the applicable Extension Request at least five (5) Business Days   prior to the date on which Lenders under the applicable Existing Term Loan   Class are requested to respond. No Lender shall have any obligation to agree   to have any of its Loans of any Existing Term Loan Class converted into   Extended Term Loans pursuant to any Extension Request. Any Lender wishing to   have all or a portion of its Loans under the Existing Term Loan Class subject   to such Extension Request (such Lender an “Extending Term Lender”) converted   into Extended Term Loans shall notify the Administrative Agent (an “Extension   Election”) on or prior to the date specified in such - 53- 

    

 

Extension   Request of the amount of its Loans under the Existing Term Loan Class which   it has elected to request be converted into Extended Term Loans (subject to   any minimum denomination requirements reasonably imposed by the Administrative   Agent and acceptable to the Borrower). In the event that the aggregate amount   of Loans under the Existing Term Loan Class subject to Extension Elections   exceeds the amount of Extended Term Loans requested pursuant to an Extension   Request, Loans of the Existing Term Loan Class subject to Extension Elections   shall be converted to Extended Term Loans on a pro rata basis based on the   amount of Loans included in each such Extension Election (subject to any   minimum denomination requirements reasonably imposed by the Administrative   Agent and acceptable to the Borrower). (d) Extended Term Loans shall be   established pursuant to an Additional Credit Extension Amendment to this   Agreement among the Borrower, the Administrative Agent and each Extending   Term Lender which shall be consistent with the provisions set forth above   (but which shall not require the consent of any other Lender other than those   consents required pursuant to this Agreement). Each Additional Credit   Extension Amendment shall be binding on the Lenders, the Loan Parties and the   other parties hereto. In connection with any Additional Credit Extension   Amendment, the Loan Parties and the Administrative Agent shall enter into   such amendments to the Collateral Documents as may be reasonably requested by   the Administrative Agent (which shall not require any consent from any Lender   other than those consents provided pursuant to this Agreement) in order to   ensure that the Extended Term Loans are provided with the benefit of the   applicable Collateral Documents and shall deliver such other documents,   certificates and opinions of counsel in connection therewith as may be   reasonably requested by the Administrative Agent. No Lender shall be under   any obligation to provide any Extended Term Loan. (e) The provisions of this   Section 2.13 shall override any provision of Section 11.01 to the contrary.   2.14 Loan Repricing Protection. In the event that the Borrower, on or prior   to the date that is sixtwelve months after the Amendment No. 24 Effective   Date (x) prepays, refinances, substitutes or replaces any Term B-1 Loans in   connection with a Repricing Transaction (including, for avoidance of doubt,   any prepayment made pursuant to Section 2.03(b)(iii) that constitutes a   Repricing Transaction) or (y) effects any amendment of this Agreement   resulting in a Repricing Transaction, the Borrower shall pay to the   Administrative Agent, for the account of each of the applicable Lenders, (I)   in the case of clause (x), a prepayment premium of 1.00% of the aggregate   principal amount of the Term B-1 Loans of such Lender so prepaid, refinanced,   substituted or replaced and (II) in the case of clause (y), a fee equal to   1.00% of the aggregate principal amount of the applicable Term B-1 Loans of   such Lender outstanding immediately prior to such amendment. Such amounts   shall be due and payable on the date of effectiveness of such Repricing   Transaction. ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY 3.01 Taxes.   (a) Payments Free of Taxes. Any and all payments by or on account of any obligation   of any Loan Party hereunder or under any other Loan Document shall be made   free and clear of and without reduction or withholding for any Tax unless   required by applicable Law, provided that if any Loan Party or any other   withholding agent shall be required by applicable Law to deduct any   Indemnified Taxes (including any Other Taxes) from such payments, then (i)   the sum payable by the Loan Party shall be increased as necessary so that   after making all required deductions (including - 54- 

    

 

 

deductions   applicable to additional sums payable under this Section 3.01) the   Administrative Agent or any Lender, as the case may be, receives an amount   equal to the sum it would have received had no such deductions been made,   (ii) the applicable withholding agent shall make such deductions and (iii)   the applicable withholding agent shall timely pay the full amount deducted to   the relevant Governmental Authority in accordance with applicable Law. For   purposes of this Section 3.01, any payments by the Administrative Agent to a   Lender of any amounts received by the Administrative Agent from any Loan   Party on behalf of such Lender shall be treated as a payment from the Loan   Party to such Lender. (b) Payment of Other Taxes by the Loan Parties. Without   limiting the provisions of subsection (a) above, the Loan Parties shall   timely pay any Other Taxes to the relevant Governmental Authority in   accordance with applicable Law. (c) Indemnification by the Loan Parties. The   Loan Parties shall, jointly and severally, indemnify the Administrative Agent   and each Lender, within 10 days after demand therefor, for the full amount of   any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other   Taxes imposed or asserted on or attributable to amounts payable under this   Section 3.01) paid by the Administrative Agent or such Lender, as the case   may be, and any reasonable expenses arising therefrom or with respect   thereto, whether or not such Indemnified Taxes or Other Taxes were correctly   or legally imposed or asserted by the relevant Governmental Authority. A   certificate as to the amount of such payment or liability delivered to the   Borrower by a Lender (with a copy to the Administrative Agent), or by the   Administrative Agent on its own behalf or on behalf of a Lender, shall be   conclusive absent manifest error. (d) Evidence of Payments. As soon as   practicable after any payment of Indemnified Taxes or Other Taxes by the   applicable Loan Party to a Governmental Authority, the applicable 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. (e) Status of Foreign   Lenders. To the extent it is legally entitled to do so, any Foreign Lender   that is entitled to an exemption from or reduction of withholding tax under   the law of the jurisdiction in which the applicable Loan Party is resident   for tax purposes, or any treaty to which such jurisdiction is a party, with   respect to payments hereunder or under any other Loan Document shall deliver   to the Loan Parties (with a copy to the Administrative Agent), at the time or   times prescribed by applicable Law or reasonably requested by the Loan   Parties or the Administrative Agent, such properly completed and executed   documentation prescribed by applicable Law as will permit such payments to be   made without withholding or at a reduced rate of withholding. In addition,   any Lender, if requested by the Loan Parties or the Administrative Agent,   shall deliver such other documentation prescribed by applicable Law or   reasonably requested by the Loan Parties or the Administrative Agent as will   enable the Loan Parties or the Administrative Agent to determine whether or   not such Lender is subject to backup withholding or information reporting   requirements. Each Lender shall, whenever a lapse in time or change in   circumstances renders such documentation (including any specific   documentation required below in this Section 3.01(e) or Section 3.01(f))   obsolete, expired or inaccurate in any material respect, deliver promptly to   the Borrower and the Administrative Agent updated or other appropriate   documentation (including any new documentation reasonably requested by the   Borrower or the Administrative Agent) or promptly notify the Borrower and the   Administrative Agent that it is legally unable to do so. Without limiting the   generality of the foregoing, any Foreign Lender, to the extent it is legally   entitled to do so, shall deliver to the Loan Parties and the Administrative   Agent (in such number - 55- 

    

 

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 request of the Loan Parties or the Administrative Agent,   but only if such Foreign Lender is legally entitled to do so), whichever of   the following is applicable: (i) duly completed copies of Internal Revenue   Service Form W-8BEN or W-8BEN-E, as applicable, claiming eligibility for   benefits of an income tax treaty to which the United States is a party, (ii)   duly completed copies of Internal Revenue Service Form W-8ECI, (iii) in the case   of a Foreign Lender claiming the benefits of the exemption for portfolio   interest under section 881(c) of the Code, (A) a certificate substantially in   the form of Exhibit J-1, Exhibit J-2, Exhibit J-3 and Exhibit J-4 (each such   certificate, a “U.S. Tax Certificate”) and (B) duly completed copies of   Internal Revenue Service Form W-8BEN or W-8BEN-E, as applicable, (iv) to the   extent a Foreign Lender is not the beneficial owner of any obligations of the   Loan Parties hereunder (for example, where the Foreign Lender is a   partnership or participating Lender granting a typical participation), duly   completed copies of Internal Revenue Service Form W-8IMY, accompanied by a   Form W-8ECI, W-8BEN, W-8BEN-E, U.S. Tax Compliance Certificate, Form W-9 or   Form W-8IMY from each beneficial owner, as applicable, or (v) two properly   completed and duly signed original copies of any other form prescribed by   applicable U.S. federal income tax laws (including the Treasury Regulations)   as a basis for claiming a complete exemption from, or a reduction in, U.S.   federal withholding tax on any payments to such Lender under the Loan   Documents. (f) Status of Non-Foreign Lenders. Any Lender that is not a   Foreign Lender shall deliver to the Loan Parties and the Administrative Agent   (in such number of copies as shall be requested by the recipient) on or prior   to the date on which such Lender becomes a Lender under this Agreement (and   from time to time thereafter upon the request of the Loan Parties or the   Administrative Agent), executed originals of Internal Revenue Service Form   W-9 certifying that such Lender is exempt from U.S. federal backup   withholding tax. (g) FATCA. 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 Loan Parties and the   Administrative Agent at the time or times prescribed by Law and at such time   or times reasonably requested by the Loan Parties 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 Loan Parties or the Administrative Agent as may   be necessary for the Loan Parties and the Administrative Agent to comply with   their obligations under FATCA and to determine whether such Lender has   complied with such Lender’s obligations under FATCA or to determine the   amount, if any, to deduct and withhold from such payment. Solely for purposes   of this clause (g), “FATCA” shall include any amendments made to FATCA after   the date of this Agreement. - 56- 

    

 

(h) Treatment   of Certain Refunds. If the Administrative Agent or any Lender determines, in   its sole discretion exercised in good faith, that it has received a refund of   any Indemnified Taxes or Other Taxes as to which it has been indemnified by   the applicable Loan Party or with respect to which the applicable Loan Party   has paid additional amounts pursuant to this Section 3.01, it shall pay to   the Loan Parties an amount equal to such refund (but only to the extent of   indemnity payments made, or additional amounts paid, by the Loan Parties   under this Section 3.01 with respect to the Indemnified Taxes or Other Taxes   giving rise to such refund), net of all out-of-pocket expenses (including any   Taxes) of the Administrative Agent or such Lender, as the case may be, and   without interest (other than any interest paid by the relevant Governmental   Authority with respect to such refund), provided that the applicable Loan   Party, upon the request of the Administrative Agent or such Lender, agree to   repay the amount paid over to such Loan Party (plus any penalties, interest   or other charges imposed by the relevant Governmental Authority) to the   Administrative Agent or such Lender if the Administrative Agent or such   Lender is required to repay such refund to such Governmental Authority. This   subsection shall not be construed to require the Administrative Agent or any   Lender to make available its tax returns (or any other information relating   to its taxes that it deems confidential) to the Loan Parties or any other   Person. 3.02 Illegality. If any Lender determines that any Law has made it   unlawful, or that any Governmental Authority has asserted that it is   unlawful, for any Lender or its applicable Lending Office to make, maintain   or fund LIBO Rate Loans, or to determine or charge interest rates based upon   the LIBO Rate, or any Governmental Authority has imposed material   restrictions on the authority of such Lender to purchase or sell, or to take   deposits of, Dollars in the London interbank market, then, on notice thereof   by such Lender to the Borrower through the Administrative Agent, any   obligation of such Lender to make or continue LIBO Rate Loans or to convert   Base Rate Loans to LIBO Rate Loans shall be suspended until such Lender   notifies the Administrative Agent and the Borrower that the circumstances   giving rise to such determination no longer exist. Upon receipt of such   notice, the Borrower shall, upon demand from such Lender (with a copy to the   Administrative Agent), prepay or, if applicable, convert all LIBO Rate Loans   of such Lender to Base Rate Loans, either on the last day of the Interest   Period therefor, if such Lender may lawfully continue to maintain such LIBO   Rate Loans to such day, or immediately, if such Lender may not lawfully   continue to maintain such LIBO Rate Loans. Upon any such prepayment or   conversion, the Borrower shall also pay accrued interest on the amount so   prepaid or converted. 3.03 Inability to Determine Rates. If the   Administrative Agent (in the case of clause (a) or (b) below) or the Required   Lenders (in the case of clause (c)) determine that for any reason in   connection with any request for a LIBO Rate Loan or a conversion to or   continuation thereof that (a) Dollar deposits are not being offered to banks   in the London interbank eurodollar market for the applicable amount and   Interest Period of such LIBO Rate Loan, (b) adequate and reasonable means do   not exist for determining the LIBO Rate for any requested Interest Period   with respect to a proposed LIBO Rate Loan, or (c) the LIBO Rate for any   requested Interest Period with respect to a proposed LIBO Rate Loan does not   adequately and fairly reflect the cost to such Lenders of funding such Loan,   the Administrative Agent will promptly so notify the Borrower and each   Lender. Thereafter, the obligation of the Lenders to make or maintain LIBO   Rate Loans shall be suspended until the Administrative Agent (upon the   instruction of the Required Lenders in the case of clause (c)) revokes such   notice. Upon receipt of such notice, the Borrower may revoke any pending   request for a Borrowing of, conversion to or continuation of LIBO Rate Loans   or, failing that, will be deemed to have converted such request into a   request for a Committed Borrowing of Base Rate Loans in the amount specified   therein. - 57- 

    

 

3.04 Increased   Costs; Reserves on LIBO Rate Loans. (a) Increased Costs Generally. If any   Change in Law shall: (i) impose, modify or deem applicable any reserve,   special deposit, compulsory loan, insurance charge or similar requirement   against assets of, deposits with or for the account of, or credit extended or   participated in by, any Lender (except any reserve requirement contemplated   by Section 3.04(e)); (ii) subject any Lender to any Taxes (other than (A)   Indemnified Taxes covered in Section 3.01, or (B) Excluded Taxes) with   respect to this Agreement or any Loan made by it; or (iii) impose on any   Lender or the London interbank market any other condition, cost or expense   affecting this Agreement or LIBO Rate Loans made by such Lender; and the   result of any of the foregoing shall be to increase the cost to such Lender   of making or maintaining any LIBO Rate Loan (or of maintaining its obligation   to make any such Loan), or to reduce the amount of any sum received or   receivable by such Lender hereunder (whether of principal, interest or any   other amount) then, upon request of such Lender, the Borrower will pay to   such Lender such additional amount or amounts as will compensate such Lender   for such additional costs incurred or reduction suffered. (b) Capital   Requirements. If any Lender determines that any Change in Law affecting such   Lender or any Lending Office of such Lender or such Lender’s holding company,   if any, regarding capital requirements has or would have the effect of reducing   the rate of return on such Lender’s capital or on the capital of such   Lender’s holding company, if any, as a consequence of this Agreement, the   Commitments of such Lender or the Loans made by such Lender, to a level below   that which such Lender or such Lender’s holding company could have achieved   but for such Change in Law (taking into consideration such Lender’s policies   and the policies of such Lender’s holding company with respect to capital   adequacy), then from time to time the Borrower will pay to such Lender such   additional amount or amounts as will compensate such Lender or such holding   company for any such reduction suffered. (c) Certificates for Reimbursement.   A certificate of a Lender setting forth the amount or amounts necessary to   compensate such Lender or its holding company, as the case may be, as   specified in subsection (a) or (b) of this Section 3.04, in reasonable detail   sufficient to allow the Borrower to verify such calculation, and delivered to   the Borrower shall be conclusive absent manifest error. The Borrower shall   pay such Lender the amount shown as due on any such certificate within 10   days after receipt thereof. (d) Delay in Requests. Failure or delay on the   part of any Lender to demand compensation pursuant to the foregoing provisions   of this Section 3.04 shall not constitute a waiver of such Lender’s right to   demand such compensation, provided that the Borrower shall not be required to   compensate a Lender pursuant to the foregoing provisions of this Section 3.04   for any increased costs incurred or reductions suffered more than six months   prior to the date that such Lender notifies the Borrower of the Change in Law   giving rise to such increased costs or reductions and of such Lender’s   intention to claim compensation therefor (except that, if the Change in Law   giving rise to such increased costs or reductions is retroactive, then the   six-month period referred to above shall be extended to include the period of   retroactive effect thereof). - 58- 

    

 

(e) Reserves on   LIBO Rate Loans. The Borrower shall pay to each Lender, as long as such   Lender shall be required to maintain reserves with respect to liabilities or   assets consisting of or including Eurocurrency funds or deposits (currently   known as “Eurocurrency liabilities”), additional interest on the unpaid   principal amount of each LIBO Rate Loan equal to the actual costs of such   reserves allocated to such Loan by such Lender (as determined by such Lender   in good faith, which determination shall be conclusive), which shall be due   and payable on each date on which interest is payable on such Loan, provided   the Borrower shall have received at least 10 days’ prior notice (with a copy   to the Administrative Agent) of such additional interest from such Lender. If   a Lender fails to give notice 10 days prior to the relevant Interest Payment   Date, such additional interest shall be due and payable 10 days from receipt   of such notice. 3.05 Compensation for Losses. Upon demand of any Lender (with   a copy to the Administrative Agent) from time to time, the Borrower shall   promptly compensate such Lender for and hold such Lender harmless from any   loss, cost or expense actually incurred by it as a result of: (a) any   continuation, conversion, payment or prepayment of any Loan other than a Base   Rate Loan on a day other than the last day of the Interest Period for such   Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or   otherwise); (b) any failure by the Borrower (for a reason other than the   failure of such Lender to make a Loan) to prepay, borrow, continue or convert   any Loan other than a Base Rate Loan on the date or in the amount notified by   the Borrower; or (c) any assignment of a LIBO Rate Loan on a day other than   the last day of the Interest Period therefor as a result of a request by the   Borrower pursuant to Section 11.13; including any loss or expense arising   from the liquidation or reemployment of funds obtained by it to maintain such   Loan or from fees payable to terminate the deposits from which such funds   were obtained, but excluding loss of anticipated profits. The Borrower shall   also pay any customary administrative fees charged by such Lender in   connection with the foregoing. For the avoidance of doubt, notwithstanding   the foregoing, no Lender shall demand, and the Borrower shall not be obliged   to make, any funding loss payments pursuant to this Section 3.05 with respect   to the payment of accrued interest on the Amendment No. 24 Effective Date   with respect to the Converted InitialTerm B Loans. For purposes of   calculating amounts payable by the Borrower to the Lenders under this Section   3.05, each Lender shall be deemed to have funded each LIBO Rate Loan made by   it at the LIBO Rate for such Loan by a matching deposit or other borrowing in   the London interbank eurodollar market for a comparable amount and for a   comparable period, whether or not such LIBO Rate Loan was in fact so funded.   3.06 Mitigation Obligations; Replacement of Lenders. (a) Designation of a   Different Lending Office. If any Lender requests compensation under Section   3.04, or if the Borrower is required to pay any additional amount to any   Lender or any Governmental Authority for the account of any Lender pursuant   to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02,   then such Lender shall use reasonable efforts to designate a different   Lending Office for funding or booking its Loans hereunder or to assign its   rights and obligations hereunder to another of its offices, branches or   affiliates, if, in the judgment of such Lender, such designation or   assignment (i) would eliminate or reduce amounts payable pursuant to Section   3.01 or 3.04, as the case may be, in the future, or eliminate the need for   the notice pursuant to Section 3.02, as - 59- 

    

 

applicable, and   (ii) in each case, would not subject such Lender to any unreimbursed cost or   expense and would not otherwise be disadvantageous to such Lender. The   Borrower hereby agrees to pay all reasonable costs and expenses incurred by   any Lender in connection with any such designation or assignment. (b)   Replacement of Lenders. If any Lender requests compensation under Section   3.04, or if the Borrower is required to pay any additional amount to any   Lender or any Governmental Authority for the account of any Lender pursuant   to Section 3.01, or if any Lender is a Defaulting Lender, the Borrower may   replace such Lender in accordance with Section 11.13. 3.07 Survival. All of   the Borrower’s obligations under this Article III shall survive termination   of the Aggregate Commitments and repayment of all other Obligations   hereunder. ARTICLE IV CONDITIONS PRECEDENT TO BORROWINGS 4.01 Conditions of   Initial Borrowing. The obligation of each Lender to make its Term Loan   hereunder on the Closing Date is subject to the prior or substantially   concurrent satisfaction or waiver pursuant to Section 11.01 of the following   conditions: (a) The Administrative Agent’s receipt of the following, each in   form and substance reasonably satisfactory to the Administrative Agent: (i) executed   counterparts of this Agreement and the Perfection Certificate by each of the   parties thereto; (A) the Security Agreement and the Pledge Agreement, each   duly executed by each Loan Party party thereto, together with: (B) the   certificate representing the Pledged Equity referred to in the Swedish Pledge   Agreement accompanied by an undated stock power executed in blank or   endorsement (to the extent not previously delivered to the Administrative   Agent), (C) UCC financing statements in form satisfactory to the   Administrative Agent for filing under the Uniform Commercial Code of all   jurisdictions in which any Loan Party is organized, and (D) evidence that all   other action that the Administrative Agent may deem necessary or desirable in   order to perfect the Liens created under the Collateral Documents has been   taken (including receipt of duly executed payoff letters and UCC-3   termination statements); (ii) such certificates of resolutions or other   action, incumbency certificates and/or other certificates of Responsible   Officers of each Loan Party as the Administrative Agent may require   evidencing the identity, authority and capacity of each Responsible Officer   thereof authorized to act as a Responsible Officer in connection with this   Agreement and the other Loan Documents to which such Loan Party is a party or   is to be a party; - 60- 

    

 

(iii) good   standing or active status certificates, as applicable, of each Loan Party in   its jurisdiction of organization and, to the extent reasonably requested by   the Administrative Agent, bring-down good standing or active status   certificates, as applicable; (iv) an opinion (A) of Latham & Watkins LLP,   counsel to the Loan Parties and (B) Swedish counsel to the Loan Parties, each   in form and substance reasonably satisfactory to the Administrative Agent;   (v) a certificate signed by a Responsible Officer of the Borrower certifying   that the conditions specified in Sections 4.01(d) and (e) have been   satisfied; (vi) a certificate signed by a Responsible Officer of the Borrower   certifying that, after giving effect to the Transaction, the Loan Parties on   a Consolidated basis are Solvent; (vii) certificates of insurance naming the   Collateral Agent, on behalf of the Lenders, as an additional insured or loss   payee, as the case may be, under all insurance policies maintained with   respect to the assets and properties of the Loan Parties that constitute   Collateral as may be requested by the Administrative Agent; (viii) a copy of   the ABL Credit Agreement executed by the parties thereto; (ix) parties   thereto; executed counterparts of the Intercreditor Agreement from each of   the (x) results of searches or other evidence reasonably satisfactory to the   Collateral Agent (in each case dated as of a date reasonably satisfactory to   the Collateral Agent) indicating the absence of Liens on the assets of the   Loan Parties, except for Permitted Liens and Liens for which termination   statements and releases or subordination agreements are being tendered on the   Closing Date; and (xi) duly executed payoff letter, in form and substance   reasonably satisfactory to it, confirming that the Existing Term Loan   Facility has been, or concurrently with the Closing Date is being, terminated   and all Liens securing obligations thereunder have been, or concurrently with   the Closing Date are being released; and (xii) such other certificates,   documents, consents or opinion as the Administrative Agent may reasonably   require. (b) Evidence satisfactory to the Administrative Agent that the   Existing ABL Facility has been, or concurrently with the Closing Date is   being, terminated and all Liens securing obligations thereunder have been, or   concurrently with the Closing Date are being, released. (c) Evidence   satisfactory to the Administrative Agent that the Existing Mezzanine Notes   have been, or concurrently with the Closing Date are being repaid. (d) The   representations and warranties of the Borrower and each other Loan Party   shall be true and correct on and as of the Closing Date, except to the extent   that such - 61- 

    

 

representations   and warranties specifically refer to an earlier date, in which case they   shall be true and correct as of such earlier date. (e) No Default shall exist   or would result from such proposed Term Loan or from the application of the   proceeds thereof. (f) The Administrative Agent shall have received a   Committed Loan Notice in accordance with the requirements hereof. (g) The   Lenders shall have received, to the extent requested, all documentation and   other information required by regulatory authorities under applicable “know   your customer” and anti-money laundering rules and regulations, including the   USA PATRIOT Act. Without limiting the generality of the provisions of Section   9.07, for purposes of determining compliance with the conditions specified in   this Section 4.01, each Lender that has signed this Agreement shall be deemed   to have consented to, approved or accepted or to be satisfied with, each   document or other matter required thereunder to be consented to or approved   by or acceptable or satisfactory to a Lender unless the Administrative Agent   shall have received notice from such Lender prior to the proposed Closing   Date specifying its objection thereto. ARTICLE V REPRESENTATIONS AND   WARRANTIES Each of the Loan Parties represents and warrants to the   Administrative Agent and the Lenders that: 5.01 Existence, Qualification and   Power. Each Loan Party and each of its Restricted Subsidiaries (a) is duly   organized or formed, validly existing and, as applicable, in good standing or   of active status under the Laws of the jurisdiction of its incorporation or   organization, (b) has all requisite power and authority and all requisite   governmental licenses, permits, authorizations, consents and approvals to (i)   own or lease its assets and carry on its business as currently conducted or   proposed to be conducted, and (ii) execute, deliver and perform its   obligations under the Loan Documents to which it is a party, and (c) is duly   qualified and is licensed and, as applicable, in good standing or of active   status under the Laws of each jurisdiction where its ownership, lease or   operation of properties or the conduct of its business requires such   qualification or license; except in each case referred to in clause (b)(i) or   (c), to the extent that failure to do so could not, individually or in the   aggregate, reasonably be expected to have a Material Adverse Effect. Schedule   5.01 annexed hereto sets forth, as of the Closing Date, each Loan Party’s   name as it appears in official filings in its state of incorporation or   organization, its state of incorporation or organization, organization type,   organization number, if any, issued by its state of incorporation or   organization and its Federal employer identification number. 5.02   Authorization; No Contravention. The execution, delivery and performance by   each Loan Party of each Loan Document to which such Person is or is to be a   party have been duly authorized by all necessary corporate or other   organizational action, and do not and will not (a) contravene the terms of   any of such Person’s Organization Documents; (b) conflict with or result in   any breach or contravention of, or the creation of (or the requirement to   create) any Lien under, or require any payment to be made under (i) any   Contractual Obligation or Material Indebtedness to which such Person is a   party or affecting such Person or the properties of such Person or any of the   Restricted Subsidiaries or (ii) any order, injunction, writ or decree of any   Governmental Authority or any arbitral award to which such Person or its   property is subject; or (c) violate any applicable Law, except in the - 62- 

    

 

case of clause   (b) or (c), to the extent that such conflict, breach, contravention or   violation could not, individually or in the aggregate, reasonably be expected   to have a Material Adverse Effect. 5.03 Governmental Authorization; Other   Consents. No approval, consent, exemption, authorization, or other action by,   or notice to, or filing with, any Governmental Authority or any other Person   is necessary or required in connection with the execution, delivery or   performance by, or enforcement against, any Loan Party of this Agreement or   any other Loan Document or the ABL Loan Documents, except for (a) filings   necessary to perfect the Liens on the Collateral granted by the Loan Parties   pursuant to the Collateral Documents, (b) the approvals, consents, exemptions,   authorizations, actions, notices and filings that have been duly obtained,   taken, given or made and are in full force and effect and (c) those   approvals, consents, exemptions, authorizations or other actions, notices or   filings, the failure of which to obtain or make would not reasonable be   expected to have, individually or in the aggregate, a Material Adverse   Effect. 5.04 Binding Effect. This Agreement and each other Loan Document,   when delivered hereunder, will have been, duly executed and delivered by each   Loan Party that is party thereto. This Agreement and each other Loan Document   when so delivered will constitute, a legal, valid and binding obligation of   such Loan Party, enforceable against each Loan Party that is party thereto in   accordance with its terms, subject to applicable bankruptcy, insolvency,   reorganization, moratorium or other laws affecting creditors’ rights   generally and subject to general principles of equity, regardless of whether   considered in a proceeding in equity or at law. 5.05 Financial Statements; No   Material Adverse Effect; No Internal Control Event. (a) The Audited Financial   Statements (i) were prepared in accordance with GAAP consistently applied   throughout the period covered thereby, except as otherwise expressly noted   therein; and (ii) fairly present in all material respects the financial   condition of the Borrower and the Restricted Subsidiaries as of the date   thereof and their results of operations for the period covered thereby in   accordance with GAAP consistently applied throughout the period covered   thereby, except as otherwise expressly noted therein. (b) Since February 27,   2011, there has been no event or circumstance, either individually or in the   aggregate, that has had or could reasonably be expected to have a Material   Adverse Effect. (c) The Consolidated forecasted balance sheet, statements of   income and cash flows of Holdings and its Subsidiaries delivered pursuant to   Section 4.01 or Section 6.01, when taken as a whole, were prepared in good   faith on the basis of the assumptions stated therein, which assumptions were   reasonable in light of the conditions existing at the time of delivery of   such forecasts, and represented, at the time of delivery, a reasonable   estimate of the Borrower’s and its Subsidiaries future financial condition   and performance (it being understood that (i) no forecasts are to be viewed   as facts, (ii) any forecasts are subject to significant uncertainties and   contingencies, (iii) no assurance can be given that any particular forecasts   will be realized and (iv) actual results may differ and such differences may   be material). 5.06 Litigation. There are no actions, suits, proceedings,   claims or disputes pending or, to the knowledge of the Loan Parties   threatened at law, in equity, in arbitration or before any Governmental   Authority, by or against Holdings or any of its Restricted Subsidiaries or   against any of their properties or revenues that (a) purport to affect or   pertain to this Agreement or any other Loan Document, or (b) would reasonably   be expected to have a Material Adverse Effect. - 63- 

    

 

5.07 Ownership   of Property; Liens; Investments. (a) Each Loan Party and each of the   Restricted Subsidiaries has good record, marketable and insurable title in   fee simple to all owned Real Estate necessary or used in the ordinary conduct   of its business, except for such defects in title as could not, individually   or in the aggregate, reasonably be expected to have a Material Adverse   Effect. Each Loan Party and each of the Restricted Subsidiaries has good   record and marketable title to, or valid leasehold interests in, all personal   property necessary or used in the ordinary conduct of its business, except   for such defects in title as could not, individually or in the aggregate,   reasonably be expected to have a Material Adverse Effect. No Mortgage   encumbers improved owned Real Estate that is located in an area that has been   identified by the Secretary of Housing and Urban Development as an area   having special flood hazards within the meaning of the National Flood   Insurance Act of 1968 unless flood insurance has been obtained in accordance   with Section 6.07(b). (b) The properties and assets of each Loan Party and   each of the Restricted Subsidiaries are subject to no Liens, other than (i)   with respect to Mortgaged Property, Permitted Encumbrances and (ii) with   respect to all other properties and assets, Permitted Liens. (c) Schedule   5.07(c) sets forth a complete and accurate list as of the Closing Date of all   Real Estate owned by each Loan Party and each of the Restricted Subsidiaries   showing the street address, county or other relevant jurisdiction, state,   record owner and book and estimated fair value thereof. (d) (i) Schedule   5.07(d)(i) sets forth a complete and accurate list of all Leases under which   any Loan Party is the lessee, as of the Closing Date showing the street   address, county or other relevant jurisdiction, state, lessor, lessee and   expiration date. (ii) Schedule 5.07(d)(ii) sets forth a complete and accurate   list of all leases of Real Estate under which any Loan Party is the lessor as   of the Closing Date showing the street address, county or other relevant   jurisdiction, state, lessor, lessee, expiration date and annual rental cost   thereof. (e) Schedule 5.07(e) sets forth a complete and accurate list of all   Investments held by any Loan Party or any Restricted Subsidiary of a Loan   Party on the date hereof, showing as of the date hereof the amount, obligor   or issuer and maturity, if any, thereof. 5.08 Environmental Matters. (a)   Neither any Loan Party nor any Restricted Subsidiary (i) has failed to comply   with any Environmental Law or to obtain, maintain or comply with any   Environmental Permit, (ii) has become subject to any Environmental Liability,   (iii) has received notice of any claim with respect to any Environmental   Liability or (iv) knows of any basis for any Environmental Liability, except,   in each case, as could not, individually or in the aggregate, reasonably be   expected to have a Material Adverse Effect. (b) Except as would not reasonably   be expected to result in a Material Adverse Effect, (i) none of the   properties currently or, to the knowledge of the Loan Parties, formerly   owned, leased, or operated by any Loan Party or any Restricted Subsidiary is   listed or, to the knowledge of the Loan Parties, proposed for listing on the   NPL or on the CERCLIS or any analogous foreign, state or local list or is   adjacent to any such property; (ii) none of the properties to which any Loan   Party or any Restricted Subsidiary has, directly or indirectly, transported   or arranged for the transportation of any Hazardous Materials, is listed or,   to the knowledge of the Loan Parties, proposed for listing on the NPL or on   the CERCLIS or any analogous foreign, state or local list; (iii) there are no   and, to the knowledge - 64- 

    

 

of the Loan   Parties, never have been any underground or above-ground storage tanks or any   surface impoundments, septic tanks, pits, sumps or lagoons in which Hazardous   Materials are being or have been treated, stored or disposed on any property   currently owned, leased, or operated by any Loan Party or any Restricted   Subsidiary or, to the knowledge of the Loan Parties, on any property formerly   owned, leased, or operated by any Loan Party or any Restricted Subsidiary; (iv)   there is no asbestos or asbestos-containing material on any property   currently owned or operated by any Loan Party or any Restricted Subsidiary;   and (v) Hazardous Materials have not been Released, discharged or disposed of   on any property currently or, to the knowledge of the Loan Parties, formerly   owned, leased, or operated by any Loan Party or any Restricted Subsidiary.   (c) (i) Neither any Loan Party nor any Restricted Subsidiary is undertaking,   and has not completed, either individually or together with other potentially   responsible parties, any investigation or assessment or remedial or response   action relating to any actual or threatened Release, discharge or disposal of   Hazardous Materials at any site, location or operation, either voluntarily or   pursuant to the order of any Governmental Authority or the requirements of   any Environmental Law, except as would not reasonably be expected to result   in a Material Adverse Effect; and (ii) all Hazardous Materials generated,   used, treated, handled, stored, or transported by, or on behalf of, any Loan   Party or any Restricted Subsidiary have been disposed of in a manner which   would not reasonably expected to result in a Material Adverse Effect. 5.09   Taxes. The Loan Parties and their Restricted Subsidiaries have filed all   material Tax returns and reports required to be filed, and have paid all   Taxes levied or imposed upon them or their properties, income or assets   otherwise due and payable and have satisfied all of their Tax withholding   obligations, except (i) Taxes which are being contested in good faith by   appropriate proceedings diligently conducted and for which adequate reserves   have been provided in accordance with GAAP and which contest effectively   suspends the collection of the contested obligation and the enforcement of   any Lien securing such obligation and (ii) any Tax return, report or Taxes,   the failure to file or to pay, as the case may be, would not reasonably be   expected to, individually or in the aggregate, have a Material Adverse   Effect. There is no proposed Tax deficiency or assessment known to any Loan   Party against the Loan Party or any Subsidiary that would, if made,   individually or in the aggregate, have a Material Adverse Effect. Except as   could not reasonably be expected to result, individually or in the aggregate,   in a Material Adverse Effect, each Loan Party and each of its Subsidiaries   has made adequate provisions in accordance with GAAP for all Taxes not yet   due and payable. 5.10 ERISA Compliance. (a) Except as could not reasonably be   expected to result in a Material Adverse Effect, (i) each Plan is in   compliance with its terms and the applicable provisions of ERISA and the   Code, (ii) each Plan that is intended to qualify under Section 401(a) of the   Code has received a favorable determination letter from the IRS or an   application for such a letter is currently being processed by the IRS with   respect thereto and, to the knowledge of the Borrower, nothing has occurred   which could reasonably be expected to prevent, or cause the loss of, such qualification,   and (iii) Holdings, the Borrower and each ERISA Affiliate have made all   required contributions to each Pension Plan, and no application for a funding   waiver or an extension of any amortization period pursuant to Section 412 of   the Code has been made with respect to any Pension Plan. (b) There are no   pending or, to the knowledge of the Loan Parties, threatened claims (other   than claims for benefits in the normal course), actions or lawsuits, or   action by any Governmental Authority, with respect to any Plan that could,   individually or in the aggregate, reasonably be expected to have a Material   Adverse Effect. There has been no nonexempt “prohibited transaction” (as   defined in - 65- 

    

 

Section 406 of   ERISA and Section 4975 of the Code) or violation of the fiduciary   responsibility rules by Holdings or the Borrower with respect to any Plan   that, individually or in the aggregate, has resulted or could reasonably be   expected to result in a Material Adverse Effect. (c) Except as could not,   individually or in the aggregate, reasonably be expected to result in a   Material Adverse Effect: (i) no ERISA Event has occurred or is reasonably   expected to occur; (ii) no Pension Plan has any Unfunded Pension Liability as   of the most recent valuation date for such Pension Plan; (iii) none of   Holdings, the Borrower or any ERISA Affiliate has incurred, or reasonably   expects to incur, any liability under Title IV of ERISA with respect to any   Pension Plan (other than premiums due and not delinquent under Section 4007   of ERISA); (iv) none of Holdings, the Borrower or any ERISA Affiliate has   incurred, or reasonably expects to incur, any liability (and no event has   occurred which, with the giving of notice under Section 4219 of ERISA, would   result in such liability) under Section 4201 or 4243 of ERISA with respect to   a Multiemployer Plan; and (v) none of Holdings, the Borrower or any ERISA   Affiliate has engaged in a transaction that could be subject to Section 4069   or 4212(c) of ERISA. (d) Except as would not reasonably be expected to result   in a Material Adverse Effect: (i) each Foreign Plan has been maintained in   compliance with its terms and with the requirements of any and all applicable   laws, statutes, rules, regulations and orders and has been maintained, where   required, in good standing with applicable regulatory authorities; (ii) none   of Holdings, the Borrower or any Restricted Subsidiary have incurred any   obligation in connection with the termination of or withdrawal from any   Foreign Plan; and (iii) the present value of the accrued benefit liabilities   (whether or not vested) under each Foreign Plan which is funded, determined   as of the end of the most recently ended Fiscal Year of Holdings, the   Borrower or any Restricted Subsidiary (based on the actuarial assumptions   used for purposes of the applicable jurisdiction’s financial reporting   requirements), did not exceed the current value of the assets of such Foreign   Plan (and for each Foreign Plan which is not funded, the obligations of such   Foreign Plan are properly accrued). 5.11 Subsidiaries; Equity Interests; Loan   Parties. As of the Closing Date, no Loan Party has any Subsidiaries other   than those specifically disclosed in Part (a) of Schedule 5.11, and all of   the outstanding Equity Interests in such Subsidiaries have been validly   issued, are fully paid and non-assessable and are owned by a Loan Party in   the amounts specified on Part (a) of Schedule 5.11 free and clear of all   Liens except those created under the Collateral Documents and the ABL Loan Documents   and the Swedish Credit Facility and any nonconsensual Lien that is permitted   under Section 7.01. As of the Closing Date no Loan Party has any equity   investments in any other corporation or entity other than those specifically   disclosed in Part (b) of Schedule 5.11. 5.12 Margin Regulations; Investment   Company Act. (a) None of the proceeds of the Loans shall be used in any   manner that would result in a violation of Regulations T, U or X of the FRB.   (b) None of the Loan Parties or any Restricted Subsidiary is or is required   to be registered as an “investment company” under the Investment Company Act   of 1940. 5.13 Disclosure. No written report, financial statement, certificate   or other information (including the Information Memorandum) furnished by or on   behalf of the Loan Parties to the Administrative Agent or any Lender in   connection with the transactions contemplated hereby and the negotiation of   this Agreement or delivered hereunder or under any other Loan Document (in   each case as modified or supplemented by other information so furnished),   taken as a whole, contains any material - 66- 

    

 

misstatement of   fact or omits to state any material fact necessary to make the statements   therein, in the light of the circumstances under which they were made, not   materially misleading; provided that, with respect to projected financial   information, the Loan Parties represent only that such information was   prepared in good faith based upon assumptions believed to be reasonable at   the time. 5.14 Compliance with Laws. Each Loan Party and each Restricted   Subsidiary thereof is in compliance in all material respects with the   requirements of all Laws and all orders, writs, injunctions and decrees   applicable to it or to its properties, except in such instances in which (a)   such requirement of Law or order, writ, injunction or decree is being   contested in good faith by appropriate proceedings diligently conducted or   (b) the failure to comply therewith, either individually or in the aggregate,   could not reasonably be expected to have a Material Adverse Effect. 5.15   Intellectual Property; Licenses, Etc.Each Loan Party and each of its   Restricted Subsidiaries own, or possess the right to use, all of the   Intellectual Property that are reasonably necessary for the operation of   their respective businesses, except as would not individually or in the   aggregate reasonably be expected to have a Material Adverse Effect, and   Schedule 5.15 sets forth a complete and accurate list of all such   Intellectual Property owned by each Loan Party and each of its Restricted   Subsidiaries which are registered with the United States Patent and Trademark   Office and United States Copyright Office. To the knowledge of the Borrower,   no slogan or other advertising or other material or patent, trademark or   copyright now employed by any Loan Party or any of its Restricted   Subsidiaries infringes upon any Intellectual Property right held by any other   Person, except to the extent that any such infringement could not, either   individually or in the aggregate, reasonably be expected to have a Material   Adverse Effect. Except as set forth on Schedule 5.15, no claim or litigation   regarding any of the foregoing is pending or, to the knowledge of the Loan   Parties, threatened, which, either individually or in the aggregate, could   reasonably be expected to have a Material Adverse Effect. 5.16 Solvency. On a   Consolidated basis, after giving effect to the Transaction, the Loan Parties   are Solvent. 5.17 Casualty, Etc.Neither the businesses nor the properties of any   Loan Party or any of the Restricted Subsidiaries are affected by any fire,   explosion, accident, strike, lockout or other labor dispute, drought, storm,   hail, earthquake, embargo, act of God or of the public enemy or other   casualty (whether or not covered by insurance) that, either individually or   in the aggregate, could reasonably be expected to have a Material Adverse   Effect. 5.18 Labor Matters. There are no strikes, lockouts, slowdowns or   other material labor disputes against any Loan Party pending or, to the   knowledge of any Loan Party, threatened that, either individually or in the   aggregate, could reasonably be expected to have a Material Adverse Effect. To   the knowledge of the Borrower and Holdings, (i) the hours worked by and   payments made to employees of the Loan Parties comply in all material   respects with the Fair Labor Standards Act and any other applicable Federal,   state, local or foreign Law dealing with such matters, (ii) no Loan Party has   incurred any material liability or obligation under the Worker Adjustment and   Retraining Act or similar state Law and (iii) all payments due from any Loan   Party, or for which any claim may be made against any Loan Party, on account   of wages and employee health and welfare insurance and other benefits, have been   paid or properly accrued in all material respects in accordance with GAAP as   a liability on the books of such Loan Party. There are no representation   proceedings pending or, to any Loan Party’s knowledge, threatened to be filed   with the National Labor Relations Board, and no labor organization or group   of employees of any Loan Party has made a pending demand for recognition   except those that could not reasonably be expected to have a Material Adverse   Effect. There are no complaints, unfair labor practice charges, grievances,   arbitrations, unfair employment practices charges or any other claims or   complaints - 67- 

    

 

against any   Loan Party pending or, to the knowledge of any Loan Party, threatened to be   filed with any Governmental Authority or arbitrator based on, arising out of,   in connection with, or otherwise relating to the employment or termination of   employment of any employee of any Loan Party except those that could not   reasonably be expected to have a Material Adverse Effect. 5.19 Collateral   Documents. The provisions of the Collateral Documents are effective to create   in favor of the Collateral Agent for the benefit of the Credit Parties a   legal, valid and enforceable First Priority Lien or Second Priority Lien, as   applicable (subject to Permitted Liens), on all right, title and interest of   the respective Loan Parties in the Collateral described therein, and (i) when   all appropriate filings or recordings are made in the appropriate offices as   may be required under applicable law and (ii) upon the taking of possession   or control by the Collateral Agent of such Collateral with respect to which a   security interest may be perfected only by possession or control (which   possession or control shall be given to the Collateral Agent to the extent   required by any Collateral Document), such Collateral Document will   constitute fully perfected Liens on, and security interests in, all right,   title and interest of the Loan Parties in such Collateral. Prior to the   satisfaction of the Discharge of ABL Obligations, the representations made in   this Section 5.19 with respect to possession or control of any Collateral on   which there is a Second Priority Lien by the Collateral Agent shall be deemed   to refer to the possession or control of such Collateral by the collateral   agent for the ABL Facility (holding for the benefit of the Collateral Agent   for the Credit Parties). 5.20 USA PATRIOT Act. To the extent applicable, each   of Holdings and its Restricted Subsidiaries is in compliance, in all material   respects, with (i) the Trading with the Enemy Act, as amended, and each of   the foreign assets control regulations of the United States Treasury   Department (31 CFR Subtitle B, Chapter V, as amended) and any other enabling   legislation or executive order relating thereto and (ii) the USA PATRIOT Act.   No part of the proceeds of the Loans will be used, directly or indirectly,   for any payments to any governmental official or employee, political party,   official of a political party, candidate for political office, or anyone else   acting in an official capacity, in order to obtain, retain or direct business   or obtain any improper advantage, in violation of the United States Foreign   Corrupt Practices Act of 1977, as amended. ARTICLE VI AFFIRMATIVE COVENANTS   So long as any Lender shall have any Commitment hereunder, any Loan or other   Obligation hereunder shall remain unpaid or unsatisfied (other than (i) any   indemnity obligation for unasserted claims that by its terms survives the   termination of this Agreement and (ii) Obligations under Other Liabilities),   the Borrower shall, and shall (except in the cases of the covenants set forth   in Sections 6.01, 6.02 and 6.03) cause each Restricted Subsidiary to: 6.01   Financial Statements and Other Reports. Deliver to the Administrative Agent,   in form and detail reasonably acceptable to the Administrative Agent: (a) as   soon as available, but in any event within 105 days after the end of each   Fiscal Year of Holdings, a Consolidated balance sheet of Holdings and its   Subsidiaries as at the end of such Fiscal Year, and the related Consolidated   statements of income or operations, shareholders’ equity (if available) and   cash flows for such Fiscal Year, setting forth in each case in comparative   form the figures for the previous Fiscal Year, all in reasonable detail and   prepared in accordance with GAAP, audited and accompanied by a report and   opinion of Ernst & Young LLP or another Registered Public Accounting Firm   of nationally recognized standing reasonably satisfactory to the   Administrative Agent, which report and opinion shall be prepared in - 68- 

    

 

accordance with   generally accepted auditing standards and shall not be subject to any “going   concern” or like qualification or exception or any qualification or exception   as to the scope of such audit; (b) as soon as available, but in any event   within 50 days after the end of each of the first three Fiscal Quarters of   each Fiscal Year of Holdings (commencing with the Fiscal Quarter ending May   26, 2012), a Consolidated balance sheet of Holdings and its Subsidiaries as   at the end of such Fiscal Quarter, and the related Consolidated statements of   income or operations and cash flows for such Fiscal Quarter and for the   portion of Holdings’ Fiscal Year then ended, setting forth in each case in   comparative form the figures for the corresponding Fiscal Quarter of the   previous Fiscal Year and the corresponding portion of the previous Fiscal   Year and to the figures as set forth in the projections delivered pursuant to   Section 6.01(c), all in reasonable detail, certified by a Responsible Officer   on behalf of Holdings as fairly presenting in all material respects the   financial condition, results of operations, shareholders’ equity and cash   flows of Holdings and its Subsidiaries in accordance with GAAP, subject only   to normal year-end audit adjustments, including, but not limited to, purchase   accounting adjustments, and the absence of footnotes; provided that,   simultaneously with the delivery of the financial statements for the Fiscal   Quarter ending July 2, 2016, the Borrower shall deliver to the Administrative   Agent Consolidated statements of income or operations and cash flows of   Holdings and its Subsidiaries for the Transition Period, together with the   related information for the Transition Period required pursuant to clause (d)   below; (c) as soon as available, but in any event no later than 60 days after   the end of each Fiscal Year of Holdings commencing at the end of the Fiscal   Year ending February 23, 2013, an annual budget of Holdings and its   Subsidiaries on a Consolidated basis for the following Fiscal Year, as   customarily prepared by management of the Loan Parties for its internal use   of Holdings and its Subsidiaries; and (d) simultaneously with the delivery of   each set of financial statements referred to in Section 6.01(a) and Section   6.01(b) above, the related consolidating financial statements reflecting the   adjustments necessary to eliminate the accounts of Unrestricted Subsidiaries   and variable interest entities (if any) from such financial statements and a   management narrative report providing reasonable detail on the financial   results of Holdings for the period covered by such financial statements   compared to the corresponding prior year period and the key factors (as   determined in good faith by the Borrower) causing such changes. 6.02   Certificates; Other Information. Deliver to the Administrative Agent, in form   and detail reasonably satisfactory to the Administrative Agent: (a)   concurrently with the delivery of the financial statements referred to in   Sections 6.01(a) and (b) (commencing with the financial statements for the   period ending May 26, 2012), (i) a duly completed Compliance Certificate   signed by a Responsible Officer of Holdings and (ii) notice of any change in   the location of any office in which a Loan Party maintains books or records   relating to Collateral owned by it or any office or facility at which Collateral   owned by it is located (including the establishment of any such new office or   facility); (b) promptly after the same are publicly available, copies of all   annual, regular, periodic and special reports and registration statements   which Holdings or the Borrower may file or be required to file with the SEC   under Section 13 or 15(d) of the Securities Exchange Act of - 69- 

    

 

1934, or with   any national securities exchange, and in any case not otherwise required to   be delivered to the Administrative Agent pursuant hereto; (c) not later than   seven (7) Business Days after receipt thereof by any Loan Party or any   Restricted Subsidiary thereof, copies of all notices, requests and other   documents (including amendments, waivers and other modifications) so received   under or pursuant to any instrument, indenture, loan or credit or similar   agreement regarding or related to any breach or default by any party thereto   or any other event that, in each case, could have a Material Adverse Effect;   (d) promptly after any Loan Party has knowledge thereof, written notice of   (i) any action or proceeding relating to any Environmental Law pending or   threatened against any Loan Party or any of its Subsidiaries, (ii) any   noncompliance with any Environmental Law by any Loan Party or any of its   Subsidiaries, (iii) the existence of any Environmental Liability, or (iv) the   existence of any Release of Hazardous Materials at any property currently or   formerly owned, leased or operated by any Loan Party or any of its Subsidiaries,   which action, proceeding, non-compliance, Environmental Liability or Release   could (x) reasonably be expected to have a Material Adverse Effect, or (y)   cause any property described in the Mortgages to be subject to any material   restrictions on ownership, occupancy, use or transferability under any   Environmental Law; (e) as soon as available, but in any event within thirty   (30) days after the end of each Fiscal Year of the Borrower, to the extent   that it would reflect information not previously delivered to the   Administrative Agent, (i) a report supplementing Schedules 5.07(c),   5.07(d)(i) and 5.07(d)(ii), including an identification of all owned real   property disposed of by any Loan Party or any Subsidiary thereof and all   leased real property disposed of by any Loan Party or any Domestic Subsidiary   during such Fiscal Year, a list and description (including the street   address, county or other relevant jurisdiction, state, record owner, book   value thereof and, in the case of leases of property, lessor, lessee,   expiration date and annual rental cost thereof) of all Real Estate acquired   or leased during such Fiscal Year and a description of such other changes in   the information included in such Schedules as may be necessary for such   Schedules to be accurate and complete; (ii) a report supplementing Schedules   5.07(e) and 5.11 containing a description of all changes in the information   included in such Schedules as may be necessary for such Schedules to be   accurate and complete, each such report to be signed by a Responsible Officer   of Holdings and to be in a form reasonably satisfactory to the Administrative   Agent and (iii) a duly completed Perfection Certificate Supplement; (f) at   least five (5) Business Days prior written notice (or such shorter period as to   which the Administrative Agent in its sole discretion agrees) of any change   in (i) any Loan Party’s name, (ii) any Loan Party’s organizational structure   or jurisdiction of incorporation or formation or (iii) any Loan Party’s   Federal Taxpayer Identification Number or organizational identification   number assigned to it by its state of organization; (g) promptly after the   request by any Lender, all documentation and other information that such   Lender reasonably requests in order to comply with its ongoing obligations   under applicable “know your customer” and anti-money laundering rules and   regulations, including the USA PATRIOT Act; (h) ERISA Filings, Etc. Uponupon   request by the Administrative Agent, copies of: (i) each Schedule B   (Actuarial Information) to the annual report (Form 5500 Series) filed by any   ERISA Affiliate with the Internal Revenue Service with respect to each   Pension Plan; (ii) the - 70- 

    

 

most recent   actuarial valuation report for each Pension Plan; and (iii) all notices received   by any ERISA Affiliate from a Multiemployer Plan sponsor or any governmental   agency concerning an ERISA Event; and (i) promptly, such additional   information regarding the business, financial, legal or corporate affairs of   any Loan Party or any Restricted Subsidiary thereof, or compliance with the   terms of the Loan Documents, as the Administrative Agent may from time to   time reasonably request. Documents required to be delivered pursuant to   Section 6.01(a) or (b) or Section 6.02(b) (to the extent any such documents   are included in materials otherwise filed with the SEC) may be delivered   electronically and if so delivered, shall be deemed to have been delivered on   the date (i) on which the Borrower posts such documents, or provides a link   thereto on the Borrower’s website on the Internet at the website address   listed on Schedule 11.02; or (ii) on which such documents are posted on the   Borrower’s behalf on an Internet or intranet website, if any, to which each   Lender and the Administrative Agent have access (whether a commercial,   third-party website or whether sponsored by the Administrative Agent);   provided that (i) upon request, the Borrower shall deliver paper copies of   such documents to the Administrative Agent, and (ii) the Borrower shall   notify the Administrative Agent (by telecopier or electronic mail) of the   posting of any such documents and provide to the Administrative Agent by   electronic mail electronic versions (i.e., soft copies) of such documents.   The Administrative Agent shall have no obligation to request the delivery or   to maintain copies of the documents referred to above, and in any event shall   have no responsibility to monitor compliance by the Borrower with any such   request for delivery, and each Lender shall be solely responsible for requesting   delivery to it or maintaining its copies of such documents. The Borrower   hereby acknowledges that (a) the Administrative Agent and/or the Arrangers   will make available to the Lenders materials and/or information provided by   or on behalf of the Borrower hereunder (collectively, “Borrower Materials”)   by posting the Borrower Materials on IntraLinks or another similar electronic   system (the “Platform”) and (b) certain of the Lenders may be “public-side”   Lenders (i.e., Lenders that do not wish to receive material nonpublic   information with respect to the Borrower or its securities) (each, a “Public   Lender”). The Borrower hereby agrees that at any time that the Borrower is   the issuer of any outstanding debt or equity securities that are registered   or issued pursuant to a private offering or is actively contemplating issuing   any such securities it will use commercially reasonable efforts to identify   that portion of the Borrower Materials that may be distributed to the Public   Lenders and that (w) all such Borrower Materials shall be clearly and   conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word   “PUBLIC” shall appear prominently on the first page thereof; (x) by marking   Borrower Materials “PUBLIC,” the Borrower shall be deemed to have authorized   the Administrative Agent, the Arrangers and the Lenders to treat such   Borrower Materials as not containing any material non-public information   (although it may be sensitive and proprietary) with respect to the Borrower   or its securities for purposes of United States Federal and state securities   laws (provided, however, that to the extent such Borrower Materials   constitute Information, they shall be treated as set forth in Section 11.07);   (y) all Borrower Materials marked “PUBLIC” are permitted to be made available   through a portion of the Platform designated “Public Investor”; and (z) the   Administrative Agent and the Arrangers shall be entitled to treat any   Borrower Materials that are not marked “PUBLIC” as being suitable only for   posting on a portion of the Platform not designated “Public Investor.” 6.03   Notices. Promptly, after knowledge thereof by a Responsible Officer, notify   the Administrative Agent, who shall promptly notify the Lenders: (a) of the   occurrence of any Default; - 71- 

    

 

(b) of any   matter that has resulted or would reasonably be expected to result in a   Material Adverse Effect, including as a result of (i) breach or   non-performance of, or any default under, a Contractual Obligation of any   Loan Party or any Restricted Subsidiary thereof; (ii) any dispute,   litigation, investigation, proceeding or suspension between any Loan Party or   any Subsidiary thereof and any Governmental Authority; or (iii) the   commencement of, or any material development in, any litigation or proceeding   affecting any Loan Party or any Restricted Subsidiary thereof, including   pursuant to any applicable Environmental Laws; (c) of the occurrence of any   ERISA Event that would reasonably be expected to result in a Material Adverse   Effect; (d) of any material change in accounting policies or financial   reporting practices by any Loan Party or any Restricted Subsidiary thereof;   (e) [reserved]; (f) of (i) any casualty or other insured damage to any   portion of the Collateral or (ii) the commencement of any action or   proceeding for the taking of any interest in a portion of the Collateral   under power of eminent domain or (iii) any condemnation or similar proceeding   or if any portion of the Collateral is damaged or destroyed; provided,   however, that with respect to each of clauses (i), (ii) and (iii), the amount   of Collateral affected thereby shall have an aggregate fair market value in   excess of (A) $15.0 million, in the case of Term Priority Collateral or (B)   $5.0 million, in the case of ABL Priority Collateral; (g) of any change in   Holdings’ or the Borrower’s chief executive officer or chief financial   officer; and (h) any termination, withdrawal or resignation of Holdings’ or   the Borrower’s Registered Public Accounting Firm. Each notice pursuant to   Section 6.03(a) shall be accompanied by a statement of a Responsible Officer   of the Borrower setting forth details of the occurrence referred to therein   and stating what action the Borrower has taken and proposes to take with   respect thereto. 6.04 Payment of Obligations. Pay and discharge as the same   shall become due and payable (a) all Taxes upon it or its properties or   assets in all respects, unless the same are being contested in good faith by   appropriate proceedings diligently conducted, adequate reserves in accordance   with GAAP are being maintained by such Loan Party or such Restricted   Subsidiary and such contest effectively suspends the collection of the   contested obligation and the enforcement of any Lien securing such   obligation; except for Taxes that could not reasonably be expected to,   individually or in the aggregate, have a Material Adverse Effect; and (b) all   material lawful claims which, if unpaid, would by law become a Lien upon its   property (except as set forth in clause (a) above). 6.05 Preservation of   Existence, Etc. (a) Preserve, renew and maintain in full force and effect its   legal existence and good standing under the Laws of the jurisdiction of its   organization, except for (i) transactions permitted by Section 7.04 or 7.05   and (ii) with respect to the maintenance of good standing status of any Loan   Party, it will not be a breach of clause (a) of this Section 6.05 unless the   failure to maintain good standing of such Loan Party could reasonably be   expected to have a Material Adverse Effect; (b) take all reasonable action to   maintain all rights, privileges, permits, licenses and franchises necessary   or desirable in the normal conduct of its business, except to the extent that   failure to do so could not reasonably be expected to have a Material Adverse   Effect; and (c) preserve or renew all - 72- 

    

 

of its   registered patents, trademarks, trade names and service marks, the   non-preservation or non-renewal of which could reasonably be expected to have   a Material Adverse Effect. 6.06 Maintenance of Properties. (a) Maintain,   preserve and protect all of its material properties and equipment necessary   in the operation of its business in good working order and condition,   ordinary wear and tear, casualty or condemnation excepted; and (b) make all   necessary repairs thereto and renewals and replacements thereof except, in   each case, where the failure to do so could not reasonably be expected to   have a Material Adverse Effect. 6.07 Maintenance of Insurance. (a) Maintain   with financially sound and reputable insurance companies not Affiliates of   the Loan Parties, insurance with respect to its properties and business   against loss or damage (i) of the kinds customarily insured against by   Persons engaged in the same or similar business, of such types and in such   amounts as are customarily carried under similar circumstances by such other   Persons or (ii) substantially similar to insurance maintained by the Borrower   and its Restricted Subsidiaries on the Closing Date, in each case, subject to   such changes as the Borrower may reasonably deem appropriate in its business   judgment with respect to deductibles, self-insured amounts, coverage   exclusions and maximum covered losses (provided that none of such policies   shall include a co-insurance clause), and with respect to policies for   Holdings and the Domestic Subsidiaries, providing for not less than 30 days’   prior notice to the Administrative Agent of termination, lapse or   cancellation of such insurance. (b) With respect to each improved Real Estate   subject to a Mortgage, obtain flood insurance with coverages and in amounts   sufficient to comply with the Flood Insurance Laws and, in any event, in an   amount not less than $5.0 million for Zone A “special flood hazard areas” and   $10.0 million for all other “special flood hazard areas”, in each case, as   set forth on any Flood Insurance Rate Map published by the Federal Emergency   Management Agency (or any successor agency), otherwise comply with all   applicable rules and regulations promulgated pursuant to the Flood Insurance   Laws and deliver to the Administrative Agent evidence of such compliance in   form and substance reasonably acceptable to the Administrative Agent. (c)   Fire and extended coverage policies maintained with respect to any Collateral   shall be endorsed or otherwise amended to include (i) a mortgage clause   (regarding improvements to Real Estate) and lenders’ loss payable clause   (regarding personal property), in form and substance satisfactory to the   Collateral Agent, which endorsements or amendments shall provide that the   insurer shall pay all proceeds otherwise payable to the Loan Parties under   the policies directly to the Collateral Agent, and (ii) such other provisions   as the Collateral Agent may reasonably require from time to time to protect   the interests of the Credit Parties. Commercial general liability policies   shall be endorsed to name the Collateral Agent as an additional insured.   Business interruption policies with respect to Holdings and the Domestic   Subsidiaries shall name the Collateral Agent as a loss payee and shall be   endorsed or amended to include (i) a provision that, from and after the   Closing Date, the insurer shall pay all proceeds otherwise payable to the   Loan Parties under the policies directly to the Collateral Agent, and (ii) such   other provisions as the Collateral Agent may reasonably require from time to   time to protect the interests of the Credit Parties. Each such policy   referred to in this Section 6.07 shall also provide that it shall not be   canceled 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 Collateral Agent (giving the Collateral Agent the right to cure defaults   in the payment of premiums) or (ii) for any other reason except upon not less   than thirty (30) days’ prior written notice thereof by the insurer to the   Collateral Agent. The Borrower shall deliver to the Collateral Agent, prior   to the cancellation, modification adverse to the - 73- 

    

 

Lenders, or   non-renewal of any such policy of insurance, a copy of a renewal or   replacement policy (or other evidence of renewal of a policy previously   delivered to the Collateral Agent, including an insurance binder) together   with evidence satisfactory to the Collateral Agent of payment of the premium   therefor. (d) In the event that any part of the Collateral (other than, as   long as the ABL Facility is outstanding, ABL Priority Collateral) is damaged   by fire or other casualty and the insurance proceeds for such damage are   greater than $5.0 million in any Fiscal Year, such proceeds, in their   entirety, shall be delivered to the Administrative Agent and the   Administrative Agent shall promptly apply such proceeds in accordance with   Section 2.03(b) or 8.03, as applicable. In the event any part of the   Collateral (other than, as long as the ABL Facility is outstanding, ABL   Priority Collateral) is damaged by fire or other casualty and the insurance   proceeds for such damage are less than $5.0 million in any Fiscal Year, such proceeds,   in their entirety, shall be delivered to the Borrower, and (e) None of the   Credit Parties, or their agents or employees shall be liable for any loss or   damage insured by the insurance policies required to be maintained under this   Section 6.07. Each Loan Party shall look solely to its insurance companies or   any other parties other than the Credit Parties for the recovery of such loss   or damage and such insurance companies shall have no rights of subrogation   against any Credit Party or its agents or employees. If, however, the   insurance policies do not provide waiver of subrogation rights against such   parties, as required above, then the Loan Parties hereby agree, to the extent   permitted by law, to waive their right of recovery, if any, against the Credit   Parties and their agents and employees. The designation of any form, type or   amount of insurance coverage by any Credit Party under this Section 6.07   shall in no event be deemed a representation, warranty or advice by such   Credit Party that such insurance is adequate for the purposes of the business   of the Loan Parties or the protection of their properties. 6.08 Compliance   with Laws. Comply in all material respects with the requirements of all Laws   and all orders, writs, injunctions and decrees applicable to it or to its   business or property, except in such instances in which (a) such requirement   of Law or order, writ, injunction or decree is being contested in good faith   by appropriate proceedings diligently conducted and with respect to which   adequate reserves have been set aside and maintained by the Loan Parties in   accordance with GAAP; or (b) the failure to comply therewith could not   reasonably be expected to have a Material Adverse Effect. 6.09 Books and   Records. Maintain proper books of record and account, in which entries in   conformity in all material respects with GAAP under U.S. law, with respect to   Holdings and its Domestic Subsidiaries, and under applicable foreign law,   with respect to Foreign Subsidiaries (provided that nothing in this Section   6.09 shall affect the obligation of Holdings to provide financial statements   in accordance with GAAP under Section 6.01), consistently applied shall be   made of all financial transactions and matters involving the assets and   business of the Loan Parties and their Restricted Subsidiaries, as the case   may be. 6.10 Inspection Rights. Permit representatives and independent   contractors of the Administrative Agent (accompanied by any Lender (with the   consent of the Borrower (not to be unreasonably withheld)) to visit and   inspect any of its properties, to examine its corporate, financial,   insurance, and operating records, and make copies thereof or abstracts   therefrom, and to discuss its affairs, finances and accounts with its   directors, officers, and independent public accountants (subject to such   accountant’s customary policies and procedures), all at such reasonable times   during normal business hours and as often as may be reasonably desired, upon   reasonable advance notice to the Borrower; provided, however, that unless an   Event of Default has occurred and is continuing, the Administrative Agent may   make only one such visit in any Fiscal Year at the Borrower’s expense,   provided further that when an Event of Default exists the Administrative   Agent (or any of its - 74- 

    

 

 

representatives   or independent contractors) may do any of the foregoing at the expense of the   Borrower at any time during normal business hours and upon reasonable advance   notice to the extent practicable. 6.11 Use of Proceeds. Use the proceeds of   (a) the Loans made on the Closing Date solely to finance in part the   Transaction and to pay related fees and expenses and (b, (b) the Term B-1   Loans funded pursuant to the Additional Term B-1 Commitments on the Amendment   No. 4 Effective Date to prepay Term B Loans pursuant to Section 2.05(a) of   this Agreement and (c) the Incremental Term Loans only for the purposes   specified in the applicable Additional Credit Extension Amendment. 6.12   Covenant to Guarantee Obligations and Give Security. (a) Upon the formation   or acquisition of any new direct or indirect Subsidiary (other than any   Unrestricted Subsidiary, a CFC, a Subsidiary that is held directly or   indirectly by a CFC or any Domestic Subsidiary that is a disregarded entity   for U.S. federal income tax purposes if substantially all of the assets of   such Domestic Subsidiary consist of Equity Interests in one or more Foreign   Subsidiaries) by any Loan Party, then the Borrower shall, at the Borrower’s   expense, within the time period specified below unless the Administrative   Agent in its sole discretion consents to an extension thereof: (i) within 10   Business Days after such formation or acquisition, cause such Subsidiary, and   cause each direct and indirect parent of such Subsidiary (if it has not   already done so), to duly execute and deliver to the Administrative Agent a   counterpart to this Agreement, in form and substance satisfactory to the   Administrative Agent, guaranteeing the other Loan Parties’ obligations under   the Loan Documents, (ii) within 15 Business Days after such formation or   acquisition, cause such Subsidiary and each direct and indirect parent of   such Subsidiary (if it has not already done so) to duly execute and deliver   to the Administrative Agent supplements to the Collateral Documents and other   security and pledge agreements covering the personal property of such   Subsidiaries, as specified by and in form and substance satisfactory to the   Administrative Agent (including delivery of all Pledged Debt and Pledged   Equity in and of such Subsidiary, and other instruments of the type specified   in Section 4.01(a)(ii)), securing payment of all the Obligations of such   Subsidiary or such parent, as the case may be, under the Loan Documents and   constituting Liens on all such personal properties, (iii) within 15 Business Days   after such formation or acquisition, cause such Subsidiary and each direct   and indirect parent of such Subsidiary (if it has not already done so) to   take whatever action (including the filing of Uniform Commercial Code   financing statements, the giving of notices and the endorsement of notices on   title documents) may be necessary in the reasonable opinion of the   Administrative Agent to vest in the Administrative Agent (or in any   representative of the Administrative Agent designated by it) valid and subsisting   Liens on the personal properties purported to be subject to Collateral   Documents, as applicable, and the security and pledge agreements delivered   pursuant to this Section 6.12, enforceable against all third parties in   accordance with their terms, and (iv) within 15 Business Days after such   formation or acquisition, deliver to the Administrative Agent, upon the   request of the Administrative Agent in its sole discretion, a signed copy of   a favorable opinion, addressed to the Administrative Agent and the other   Credit Parties, of counsel for the Loan Parties acceptable to the   Administrative Agent as to the matters contained in clauses (i), (ii) and   (iii) above, and as to such other matters as the Administrative Agent may   reasonably request. - 75- 

    

 

(b) Subject to   the Intercreditor Agreement, promptly grant to the Collateral Agent, within   30 days of the acquisition thereof, a security interest in and Mortgages on   each parcel of Real Estate owned in fee by such Loan Party as is acquired by   such Loan Party after the Closing Date and that, together with any   improvements thereon, individually has a fair market value of at least $5.0   million as additional security for the Obligations (unless the subject   property is already mortgaged to a third-party to the extent permitted by   Section 7.01). Such Mortgages shall be granted pursuant to documentation   reasonably satisfactory in form and substance to the Administrative Agent and   the Collateral Agent and shall constitute valid and enforceable perfected   Liens subject only to Permitted Liens or other Liens acceptable to the   Administrative Agent. The Mortgages or instruments related thereto shall be   duly recorded or filed in such manner and in such places as are required by   law to establish, perfect, preserve and protect the Liens in favor of the   Collateral Agent required to be granted pursuant to the Mortgages and all   taxes, fees and other charges payable in connection therewith shall be paid   in full. Such Loan Party shall otherwise take such actions and execute and/or   deliver to the Collateral Agent such documents as the Administrative Agent or   the Collateral Agent shall require to confirm the validity, perfection and   priority of the Lien of any existing Mortgage or new Mortgage against such   after-acquired Real Estate (including (i) fully paid American Land Title   Association Lender’s Extended Coverage title insurance policies or applicable   state title policy in form and substance, with endorsements and in amounts   acceptable to the Administrative Agent, issued by title insurers reasonably   acceptable to the Administrative Agent, insuring the Mortgages to be valid   and subsisting Liens on the property described therein, free and clear of all   defects (including, but not limited to, mechanics’ and materialmen’s Liens)   and encumbrances, excepting only Permitted Encumbrances and other Liens   permitted under the Loan Documents, and providing for such other affirmative   insurance (including endorsements for future advances under the Loan   Documents, for mechanics’ and materialmen’s Liens and for zoning of the   applicable property) and as the Administrative Agent may reasonably deem   necessary or desirable (a “Mortgage Policy”), (ii) a Survey, (iii) the Flood   Documentation and (iv) a local counsel opinion (in form and substance   reasonably satisfactory to the Administrative Agent and the Collateral Agent)   in respect of such Mortgage). (c) Concurrently with the guarantee by any   direct or indirect Domestic Subsidiary that is a Restricted Subsidiary of any   obligations under the ABL Loan Documents, cause such direct or indirect   Subsidiary to guarantee the Obligations of the Loan Parties hereunder and   otherwise comply with the requirements of this Section 6.12. (d) At any time   upon request of the Administrative Agent, promptly execute and deliver any   and all further instruments and documents and take all such other action as   the Administrative Agent may deem reasonably necessary or desirable in   obtaining the full benefits of, or (as applicable) in perfecting and   preserving the Liens of, such guaranties, deeds of trust, trust deeds, deeds   to secure debt, mortgages, leasehold mortgages, leasehold deeds of trust,   supplements to the Collateral Documents and other security and pledge   agreements. (e) Subject to the terms of the Intercreditor Agreement and prior   to the satisfaction of the Discharge of ABL Obligations, with respect to any   obligation under this Section 6.12 or any Collateral Document to deliver   possession or control of any Collateral on which there is a Second Priority Lien   by the Collateral Agent, such obligation shall be deemed satisfied by the   delivery of possession or control of such Collateral to the “collateral   agent” for the ABL Facility (holding for the benefit of the Collateral Agent   for the Credit Parties). 6.13 Further Assurances. Promptly upon request by   the Administrative Agent, or any Lender through the Administrative Agent, (a)   correct any material defect or error that may be discovered in any Loan   Document or in the execution, acknowledgment, filing or recordation of any of   the - 76- 

    

 

foregoing, and   (b) do, execute, acknowledge, deliver, record, re-record, file, re-file,   register and re-register any and all such further acts, deeds, certificates,   assurances and other instruments as the Administrative Agent, or any Lender   through the Administrative Agent, may reasonably require from time to time in   order to (i) carry out more effectively the purposes of the Loan Documents,   (ii) to the fullest extent permitted by applicable Law, subject any Loan   Party’s or any of the Restricted Subsidiaries’ properties, assets, rights or   interests to the Liens now or hereafter intended to be covered by any of the   Collateral Documents, (iii) perfect and maintain the validity, effectiveness   and priority of any of the Collateral Documents and any of the Liens intended   to be created thereunder and (iv) assure, convey, grant, assign, transfer,   preserve, protect and confirm more effectively unto the Credit Parties the   rights granted or now or hereafter intended to be granted to the Credit   Parties under any Loan Document or under any other instrument executed in   connection with any Loan Document to which any Loan Party or any of the   Restricted Subsidiaries is or is to be a party, and cause each of the   Restricted Subsidiaries to do so. 6.14 Lenders Meetings. The Borrower will,   upon the request of the Administrative Agent or Required Lenders, participate   in a meeting of the Administrative Agent and Lenders once during each Fiscal   Year to be held, at the request of the Administrative Agent or Required   Lenders, by teleconference or at the Borrower’s corporate offices (or at such   other location as may be agreed to by the Borrower and the Administrative   Agent) at such time as may be agreed to by the Borrower and the Administrative   Agent. 6.15 Designation as Senior Debt. Designate all Obligations as   “Designated Senior Indebtedness” (or any similar term) under, and defined in,   any Subordinated Indebtedness of any Loan Party which contains such   designations. 6.16 Maintenance of Ratings. Use commercially reasonable   efforts to cause the Loans and the Borrower’s corporate credit to continue to   be rated by Standard & Poor’s Ratings Group and Moody’s Investors Service   Inc. 6.17 Designation of Subsidiaries. The board of directors of Holdings may   at any time designate any Restricted Subsidiary as an Unrestricted Subsidiary   or any Unrestricted Subsidiary as a Restricted Subsidiary; provided that (i)   immediately before and after such designation, no Default shall have occurred   and be continuing, (ii) the Borrower may not be designated as an Unrestricted   Subsidiary, (iii) no Subsidiary may be designated as an Unrestricted   Subsidiary if it is a “Restricted Subsidiary” for the purpose of the ABL   Facility, (iv) no Restricted Subsidiary may be designated as an Unrestricted   Subsidiary if it was previously designated an Unrestricted Subsidiary, (v) no   Unrestricted Subsidiary shall own any Equity Interests in any Restricted   Subsidiary, (vi) no Unrestricted Subsidiary shall hold any Indebtedness of,   or any Lien on any property of, the Borrower or any Restricted Subsidiary,   (vii) no Unrestricted Subsidiary shall be a party to any transaction or   arrangement with the Borrower and its Restricted Subsidiaries that would not   be permitted by Section 7.08 and (viii) none of Holdings or any of its   Restricted Subsidiaries shall have any obligation to subscribe for additional   Equity Interests of any Unrestricted Subsidiary or to preserve or maintain   the financial condition of any Unrestricted Subsidiary. The designation of   any Subsidiary as an Unrestricted Subsidiary shall constitute an Investment   by Holdings and its Restricted Subsidiaries therein at the date of   designation in an amount equal to the net book value of Holdings’ or such   Restricted Subsidiary’s (as applicable) investment therein. The designation   of any Unrestricted Subsidiary as a Restricted Subsidiary shall constitute   the incurrence at the time of designation of any Indebtedness or Liens of   such Subsidiary existing at such time, and cause each of the Restricted   Subsidiaries and Unrestricted Subsidiaries to satisfy, customary corporate   and other formalities. - 77- 

    

 

6.18   Post-Closing Matters. Within seven (7) days after the Closing Date (or such   later date to be agreed by the Administrative Agent), the Borrower shall   deliver to the Administrative Agent the certificates representing the Pledged   Equity referred to in the Pledge Agreement accompanied by undated stock   powers executed in blank and instruments evidencing the Pledged Debt indorsed   in blank or with other appropriate instruments of transfer (to the extent not   previously delivered to the Administrative Agent). ARTICLE VII NEGATIVE   COVENANTS So long as any Lender shall have any Commitment hereunder, any Loan   or other Obligation hereunder shall remain unpaid or unsatisfied (other than   (i) any indemnity obligation for unasserted claims that by its terms survives   the termination of this Agreement and (ii) Obligations under Other   Liabilities), the Borrower shall not, (and with respect to Section 7.13 only,   Holdings shall not), nor shall the Borrower permit any Restricted Subsidiary   to, directly or indirectly: 7.01 Liens. Create, incur, assume or suffer to   exist any Lien upon any of its property, other than the following Liens (Liens   described below are herein referred to as “Permitted Liens”): (a) Liens   pursuant to any Loan Document; (b) Liens existing on the date hereof and   listed on Schedule 7.01(b) and any renewals or extensions thereof, provided   that (i) the property covered thereby is not changed in any material manner,   (ii) the amount secured or benefited thereby is not increased except as   contemplated by Section 7.02(f), (iii) the direct and contingent obligors   with respect thereto are not changed (other than to decrease the number of   obligors), and (iv) any renewal or extension of the obligations secured or   benefited thereby is permitted by Section 7.02(f); (c) Liens for taxes not   yet due or which are the subject of a Permitted Protest; (d) carriers’,   warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens   arising in the ordinary course of business which are not overdue for a period   of more than 30 days or which are the subject of a Permitted Protest; (e) (i)   pledges or deposits in the ordinary course of business in connection with   workers’ compensation, unemployment insurance and other social security   legislation, other than any Lien imposed by ERISA and (ii) pledges and   deposits in the ordinary course of business securing liability for   reimbursement or indemnification obligations of (including obligations in   respect of letters of credit or bank guarantees for the benefit of) insurance   carriers providing property, casualty or liability insurance to Holdings or   any of its Restricted Subsidiaries; (f) deposits to secure the performance of   bids, trade contracts and leases (other than Indebtedness for borrowed   money), statutory obligations, surety and appeal bonds, performance bonds and   other obligations of a like nature incurred in the ordinary course of business;   (g) easements, rights-of-way, restrictions and other similar encumbrances   affecting Real Estate which, in the aggregate, are not substantial in amount,   and which do not in any case materially detract from the value of the   property subject thereto or materially interfere with the ordinary conduct of   the business of the applicable Person; - 78- 

    

 

(h) Liens   securing judgments for the payment of money not constituting an Event of   Default under Section 8.01(h); (i) Liens securing Indebtedness permitted   under Section 7.02(h); provided that (i) such Liens do not at any time   encumber any property other than the property financed by such Indebtedness,   (ii) the Indebtedness secured thereby does not exceed the cost of the   property being acquired on the date of acquisition, and (iii) such Lien and   the Indebtedness secured thereby are incurred contemporaneously with or   within two hundred seventy (270) days after the acquisition of such property;   (j) Liens on the Collateral securing ABL Obligations having the priority set   forth in the Intercreditor Agreement; (k) landlords’ and lessors’ Liens in   respect of rent and other lease obligations that are not past due for a   period of 60 days or more or that are the subject of a Permitted Protest; (l)   possessory Liens in favor of brokers and dealers arising in connection with   the acquisition or disposition of Investments, provided that such Liens (a)   attach only to such Investments and (b) secure only obligations incurred in   the ordinary course and arising in connection with the acquisition or   disposition of such Investments and not any obligation in connection with   margin financing; (m) Liens arising solely by virtue of any statutory or   common law provisions relating to banker’s Liens, ordinary course Liens in   favor of securities intermediaries, rights of setoff or similar rights and   remedies as to deposit accounts or securities accounts or other funds   maintained with depository institutions or securities intermediaries; (n)   Liens arising from precautionary UCC filings regarding “true” operating   leases or the consignment of goods to a Loan Party; (o) Liens in favor of customs   and revenues authorities imposed by applicable Law arising in the ordinary   course of business in connection with the importation of goods and securing   obligations (i) that are not overdue by more than thirty (30) days, or (ii)   that are the subject of a Permitted Protest; (p) Liens on specific existing   assets and proceeds thereof of a Person acquired following the Closing Date   in existence on the date such Person became a Restricted Subsidiary; provided   that such Liens were not created in anticipation of the transaction pursuant   to which such Person became a Restricted Subsidiary; (q) licenses of   Intellectual Property permitted under Section 7.05(g) hereof; (r) Liens on   the assets of Foreign Subsidiaries securing Indebtedness or other obligations   of Foreign Subsidiaries permitted by Section 7.02; (s) Liens on the   Collateral securing Indebtedness permitted by Section 7.02(b); (t) other   Liens securing Indebtedness or other obligations of the Borrower and the   Subsidiary Guarantors outstanding in an aggregate principal amount not to   exceed $15.0 million; provided that no such Lien shall extend to or cover any   Collateral; - 79- 

    

 

(u) leases,   licenses, subleases or sublicenses granted to others in the ordinary course   of business which do not (i) in any case materially detract from the value of   the property subject thereto or (ii) interfere in any material respect with   the business of the Borrower and its Subsidiaries or (iii) secure any   Indebtedness; (v) Liens solely on any cash earnest money deposits made by the   Borrower or any of the Restricted Subsidiaries in connection with any letter   of intent or purchase agreement permitted hereunder; (w) ground leases in   respect of real property on which facilities owned or leased by the Borrower   or any of its Subsidiaries are located; and (x) Liens on insurance policies   and the proceeds thereof securing the financing of the premiums with respect   thereto. 7.02 Indebtedness. Create, incur, assume, guarantee, suffer to exist   or otherwise become liable with respect to any Indebtedness, except   (Indebtedness described below is herein referred to as “Permitted   Indebtedness”): (a) obligations (contingent or otherwise) of the Borrower or   any of the Restricted Subsidiaries existing or arising under any Swap Contract,   provided that (i) such obligations are (or were) entered into by such Person   in the ordinary course of business for the purpose of directly mitigating   risks associated with fluctuations in interest rates or foreign exchange   rates or otherwise to mitigate risks associated with its assets or   liabilities or business operations, and (ii) such Swap Contract does not   contain any provision exonerating the counterparty to such Swap Contract from   its obligation to make payments on outstanding transactions to the Borrower   or the Restricted Subsidiaries (notwithstanding that the Borrower or a   Restricted Subsidiary is the defaulting party); (b) respect thereof;   Refinancing Debt Securities and any Permitted Refinancing Indebtedness in (c)   (i) Indebtedness of a Restricted Subsidiary of the Borrower owed to the   Borrower or to another Restricted Subsidiary of the Borrower, and (ii)   Indebtedness of the Borrower owed to any Restricted Subsidiaries of the   Borrower, in each case, which Indebtedness shall (A) in the case of Indebtedness   owed to a Loan Party, constitute “Pledged Debt” under the Security Agreement,   (B) be on terms (including subordination terms, if owed by a Loan Party)   acceptable to the Administrative Agent and (C) be otherwise permitted under   the provisions of Section 7.03; (d) Indebtedness under the Loan Documents;   (e) Indebtedness of the Loan Parties under the ABL Facility and any Permitted   Refinancing Indebtedness in respect thereof (including Guarantees of any   Guarantor in respect of such Indebtedness) not to exceed $100.0 million; (f)   Indebtedness outstanding on the date hereof and listed on Schedule 7.02 and   any Permitted Refinancing Indebtedness in respect thereof; (g) Guarantees of   the Borrower or any Guarantor in respect of Indebtedness otherwise permitted   hereunder of the Borrower or any Subsidiary Guarantor; - 80- 

    

 

(h)   Indebtedness in respect of Capital Lease Obligations, Synthetic Lease   Obligations, and purchase money obligations for fixed or capital assets   within the limitations set forth in Section 7.01(i) and Permitted Refinancing   Indebtedness in respect thereof; provided, however, that the aggregate amount   of all such Indebtedness at any one time outstanding shall not exceed $35.0   million; (i) Permitted Holdco Debt; (j) Indebtedness of any Person that   becomes a Restricted Subsidiary of the Borrower after the date hereof in   accordance with the terms of Section 7.03(h), which Indebtedness is existing   at the time such Person becomes a Restricted Subsidiary of the Borrower   (other than Indebtedness incurred solely in contemplation of such Person’s   becoming a Restricted Subsidiary of the Borrower) and Permitted Refinancing   Indebtedness in respect thereof; (k) (i) unsecured Indebtedness of any Loan   Party with no scheduled payments of principal until the date that is 6 months   after the Maturity Date; provided that (x) on a Pro Forma Basis, the   Consolidated Leverage Ratio (calculated to exclude the net cash proceeds from   Indebtedness incurred pursuant to this Section 7.02(k)) for the Measurement   Period most recently ended prior to the incurrence of such Indebtedness is no   greater than 4.50 to 1.00, (y) [reserved] and (z) no Event of Default shall   have occurred and be continuing at the time of and immediately after the   incurrence of such Indebtedness and (ii) Permitted Refinancing Indebtedness   in respect of Indebtedness permitted by subclause (i) above; (l) Indebtedness   of the Loan Parties in an aggregate principal amount not to exceed $35.0   million at any time outstanding; (m) Indebtedness of Foreign Subsidiaries   under the Swedish Credit Facility in an aggregate amount not to exceed the   U.S. dollar equivalent (as reasonably determined by the Administrative Agent)   of $65.0 million outstanding at any time; and (n) other Indebtedness of   Foreign Subsidiaries in an aggregate amount not to exceed $10.0 million   outstanding at any time. For purposes of determining compliance with any U.S.   dollar-denominated restriction on the incurrence of Indebtedness, the U.S.   dollar-equivalent principal amount of Indebtedness denominated in a non-U.S.   currency shall be calculated based on the relevant currency exchange rate in   effect on the date such Indebtedness was incurred; provided that, if such   Indebtedness is incurred to extend, replace, refund, refinance, renew or   defease other Indebtedness denominated in a foreign currency, and such   extension, replacement, refunding, refinancing, renewal or defeasance 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   such extension, replacement, refunding, refinancing, renewal or defeasance,   such U.S. dollar-denominated restriction shall be deemed not to have been   exceeded so long as the principal amount of such refinancing Indebtedness   does not exceed the principal amount of such Indebtedness being extended,   replaced, refunded, refinanced, renewed or defeased. 7.03 Investments. Make   or hold any Investments, except: (a) Investments held by the Borrower and the   Restricted Subsidiaries in the form of Cash Equivalents; - 81- 

    

 

(b) Investments   consisting of loans and advances to officers, directors and employees of   Holdings and its Restricted Subsidiaries to finance the purchase of capital   stock of Holdings and for travel, entertainment, relocation and analogous   ordinary business purposes, in an aggregate amount not to exceed $2.5 million   at any time outstanding; (c) (i) Investments outstanding on the Closing Date   by Borrower and its Restricted Subsidiaries in their respective Subsidiaries,   (ii) additional Investments by Borrower and its Restricted Subsidiaries in   Restricted Subsidiaries that are Loan Parties at the time of the making of   such Investment, (iii) additional Investments by Subsidiaries of the Borrower   that are not Loan Parties (including Foreign Subsidiaries) in other   Restricted Subsidiaries that are not Loan Parties ((including Foreign   Subsidiaries), and (iv) so long as no Default or Event of Default then exists   or would arise therefrom, additional Investments by the Loan Parties in   Restricted Subsidiaries that are not Loan Parties in an aggregate amount when   taken together with all purchases and acquisitions referred to in Section   7.03(h)(ii), during the term of this Agreement not to exceed (A) the greater   of (x) $25.0 million and (y) 3% of total Consolidated assets of Borrower and   its Restricted Subsidiaries as of the last day of the most recently completed   Measurement Period (net of any cash return of principal or capital on any   such Investment, purchases or acquisitions made pursuant to this Section   7.03(c)(iv) or Section 7.03(h)(ii) or Section 7.03(l) to Borrower or a   Subsidiary Guarantor that is not applied pursuant to the parenthetical phrase   in Section 7.03(h)(ii)(y) or Section 7.03(l)(x)) plus (B) an amount equal to   the amount of cash distributions to the Borrower or a Subsidiary Guarantor   following the Closing Date from the Foreign Subsidiaries that has not been   redistributed to any Foreign Subsidiary; (d) Investments consisting of   extensions of credit in the nature of accounts receivable or notes receivable   arising from the grant of trade credit in the ordinary course of business,   and Investments received in satisfaction or partial satisfaction thereof from   financially troubled account debtors to the extent reasonably necessary in   order to prevent or limit loss; (e) Guarantees permitted by Section 7.02; (f)   Investments existing on the date hereof and set forth on Schedule 5.07(e) and   any modification, replacement, renewal, reinvestment or extension of any of   the foregoing that does not increase the amount thereof; (g) Investments in   Swap Contracts permitted under Section 7.02(a); (h) the purchase or other   acquisition of all of the Equity Interests in, or all or substantially all of   the property, or assets comprising a business unit, of, any Person; provided   that, with respect to each purchase or other acquisition made pursuant to   this Section 7.03(h) (each such purchase or acquisition, a “Permitted   Acquisition”): (i) any such newly-created or acquired Restricted Subsidiary   as a result of any such transaction shall comply with the applicable   requirements of Section 6.12; (ii) any such purchase or other acquisition   that, upon the consummation thereof, does not result in the assets or   property so purchased or acquired being wholly-owned directly by the Borrower   or one or more Subsidiary Guarantors or, in the case of any acquisition of   Equity Interests that does not result in the Person(s) so acquired becoming a   Subsidiary Guarantor(s), in each case, within 10 Business Days after such   purchase or acquisition shall not exceed, together with all such other - 82- 

    

 

purchases or   other acquisitions and all Investments referred to in Section 7.03(c), the   greater of (x) $25.0 million and (y) 3% of total Consolidated assets of   Borrower and its Restricted Subsidiaries as of the last day of the most   recently completed Measurement Period (net of any cash return of principal on   capital on any acquisition, purchase or Investment made pursuant to this   Section 7.03(h)(ii) or Section 7.03(c)(iv) or Section 7.03(l) to Borrower or   a Subsidiary Guarantor that is not applied pursuant to the parenthetical   phrase in Section 7.03(c)(iv)(y) or 7.03(l)(x)); (iii) [reserved]; (iv)   immediately before and immediately after giving effect to any such purchase   or other acquisition, no Event of Default shall have occurred and be   continuing; and (v) the Borrower shall have delivered to the Administrative   Agent, on or prior to the date on which any such purchase or other   acquisition is to be consummated, a certificate of a Responsible Officer, in   form and substance reasonably satisfactory to the Administrative Agent,   certifying that all of the requirements set forth in this clause (h) have   been satisfied or will be satisfied on or prior to the consummation of such   purchase or other acquisition (other than the requirements of clause (i),   which will be satisfied as required by Section 6.12); (i) Investments   resulting from the issuance of Indebtedness of Holdings to the Borrower or   any of the Restricted Subsidiaries in an amount not to exceed the amount   necessary to permit Holdings to pay (i) so long as no Event of Default shall   have occurred and be continuing at the time thereof or would result   therefrom, reasonable and customary corporate and out-of-pocket operating   expenses actually payable to persons that are not Affiliates relating to   maintaining its ownership interest in the Borrower (including reasonable   out-of-pocket expenses for legal, administrative and accounting services   provided by third parties, and compensation, benefits and other amounts   payable to officers and employees in connection with their employment in the   ordinary course of business and to board of director observers), (ii)   franchise fees or similar Taxes and fees required to maintain its corporate   existence, (iii) any income Taxes imposed on Holdings or its direct or   indirect parent of Holdings as the common parent of a consolidated, combined   or similar Tax group of which the Borrower and/or its Restricted Subsidiaries   are members, up to an amount not to exceed the amount of any such income   Taxes that the Borrower and its Restricted Subsidiaries would have been   required to pay on a separate company (or a stand-alone Tax group) basis   (reduced by any income Taxes paid directly by the Borrower or its Restricted   Subsidiaries); provided that in determining the hypothetical income Tax liability   of the Borrower and/or its Restricted Subsidiaries on a separate company (or   a stand-alone Tax group) basis for the purpose of clause (iii), any interest   expense on any Indebtedness incurred by Holdings shall be treated as the   interest expense of the Borrower; provided further that any payments by   Borrower or any of its Restricted Subsidiaries attributable to the income of   any Unrestricted Subsidiary shall be permitted only to the extent that cash   payments were made for such purpose by such Unrestricted Subsidiary to the   Borrower or to any of its Restricted Subsidiaries and (iv) all costs or fees   incurred in compliance with or in anticipation of compliance with Securities   Laws and state securities Laws; (j) promissory notes and other non-cash   consideration that is permitted to be received in connection with   Dispositions permitted by Section 7.05; - 83- 

    

 

(k) any   Investments made with the proceeds received by or contributed to the Borrower   from the substantially concurrent issuance of new Equity Interests (other   than Disqualified Equity Interests) issued by Holdings and not used for any   other purpose permitted under this Agreement; (l) without duplication of any   other Investments permitted hereunder, other Investments by the Borrower or   any of the Restricted Subsidiaries not exceeding (x) $10.0 million in any   Fiscal Year (with the unused portion of such scheduled amount available for   use in any succeeding Fiscal Year), net of any cash return to the Borrower   and its Restricted Subsidiaries of principal or capital of any such   Investment or (y) $25.0 million in the aggregate (net of any cash return of   principal or capital of any Investment, purchase or acquisition made pursuant   to this Section 7.03(l) or Section 7.03(c)(iv) or 7.03(h)(ii) to the Borrower   or a Subsidiary Guarantor that is not applied pursuant to the parenthetical   phrase in Section 7.03(c)(iv)(y) or 7.03(h)(ii)); (m) so long as no Event of   Default shall have occurred and be continuing or would result from the making   of any such Investment, Investments in an amount not to exceed the Available   Amount; (n) Investments to the extent that payment for such Investments is   made solely with Qualified Equity Interests of Holdings (or any direct or   indirect parent thereof); (o) Investments held by a Restricted Subsidiary   acquired after the Closing Date or of a Person merged into the Borrower or   merged or consolidated with a Restricted Subsidiary in accordance with   Section 7.04 after the Closing Date (other than existing Investments in subsidiaries   of such Subsidiary or Person, which must comply with the requirements of   Sections 7.02(h) or (l)) to the extent that such Investments were not made in   contemplation of or in connection with such acquisition, merger or   consolidation and were in existence on the date of such acquisition, merger   or consolidation; and (p) Guarantees by the Borrower or any of the Restricted   Subsidiaries of leases (other than Capital Lease Obligations) or of other   obligations that do not constitute Indebtedness, in each case entered into in   the ordinary course of business. 7.04 Fundamental Changes. Merge, dissolve,   liquidate, consolidate with or into another Person, or Dispose of (whether in   one transaction or in a series of transactions) all or substantially all of   its assets (whether now owned or hereafter acquired) to or in favor of any   Person, except that: (a) any Restricted Subsidiary of the Borrower may merge   with (i) the Borrower, provided that the Borrower shall be the continuing or   surviving Person, or (ii) any one or more other Restricted Subsidiaries,   provided that when any Loan Party is merging with another Restricted   Subsidiary that is not a Loan Party, such Loan Party shall be the continuing   or surviving Person; (b) any Restricted Subsidiary (other than the Borrower)   may Dispose of all or substantially all of its assets (upon voluntary   liquidation or otherwise) to the Borrower or to another Loan Party (other   than Holdings); (c) any Subsidiary that is not a Loan Party (i) may dispose   of all or substantially all its assets (including any Disposition that is in   the nature of a liquidation) to (A) another - 84- 

    

 

Subsidiary that   is not a Loan Party or (B) to a Loan Party (other than Holdings), or (ii) may   be dissolved, with its assets (if any) being transferred in accordance with   clause (i) hereof; (d) in connection with any acquisition permitted under   Section 7.03, any Restricted Subsidiary of the Borrower may merge into or   consolidate with any other Person or permit any other Person to merge into or   consolidate with it; provided that (i) the Person surviving such merger shall   be a wholly-owned Restricted Subsidiary of the Borrower, (ii) in the case of   any such merger to which any Loan Party (other than the Borrower) is a party,   such Loan Party is the surviving Person and (iii) in the case of any merger   involving the Borrower, the Borrower is the surviving Person; (e) any   Disposition permitted by Section 7.05 may be structured as a sale of all or   substantially all of the Equity Interests of a Subsidiary; (f) any Subsidiary   which has no assets to distribute to its equity holders may be dissolved or   liquidated; and (g) any Foreign Subsidiary that is not a Material Subsidiary   may be dissolved or liquidated, including through an insolvency, bankruptcy or   equivalent proceeding. 7.05 Disposition, except: Dispositions. Make any   Disposition or enter into any agreement to make any (a) Dispositions of   obsolete or worn out property, or property (including Intellectual Property)   that is no longer used or useful in the business of the Borrower and its   Restricted Subsidiaries whether now owned or hereafter acquired, in each   case, in the ordinary course of business (it being understood that this   clause (a) does not include the liquidation of any Store or the inventory and   other assets located therein); (b) business; Dispositions of inventory and   goods held for sale in the ordinary course of (c) Dispositions of equipment   or Real Estate to the extent that such property is exchanged for credit   against all or a portion of the purchase price of similar replacement   property and, if such property is Collateral, then such replacement property   is made subject to Liens and security interests in favor of the Collateral   Agent for the benefit of the Credit Parties; (d) Dispositions of property by   any Subsidiary to the Borrower or to a wholly-owned Restricted Subsidiary;   provided that if the transferor of such property is a Subsidiary Guarantor,   the transferee thereof must either be the Borrower or a Subsidiary Guarantor   or an Investment permitted under Section 7.03; (e) Dispositions permitted by   Sections 7.04 (a), (b), (c), (d), (f) and (g); (f) bulk sales or other   dispositions of the inventory of the Borrower or a Restricted Subsidiary not   in the ordinary course of business in connection with Store closings, at   arm’s length, provided, that such Store closures and related Inventory   dispositions shall not exceed (i) in any Fiscal Year, ten percent (10%) of   the number of the Borrower’s and its Restricted Subsidiaries’ Stores as of the   beginning of such Fiscal Year (net of new Store openings in such Fiscal Year)   and (ii) in the aggregate from and after the Closing Date, twenty-five   percent (25%) of the number of the Borrower’s and its Restricted   Subsidiaries’ Stores in existence as of the - 85- 

    

 

Closing Date   (net of new Store openings), provided, that all sales of Inventory in   connection with Store closings in excess of ten (10) Store closings in any   three month period, shall be in accordance with liquidation agreements and   with professional liquidators reasonably acceptable to the Administrative   Agent; provided, further that all Net Cash Proceeds received in connection   therewith are applied to the Obligations if then required hereunder; (g)   grants of licenses of Intellectual Property in the ordinary course of   business, which do not materially interfere with the business of the Borrower   and the Restricted Subsidiaries, taken as a whole; (h) Dispositions by the   Borrower and the Restricted Subsidiaries not otherwise permitted under this   Section 7.05; provided that (i) at the time of such Disposition, no Default   shall exist or would result from such Disposition, (ii) the aggregate book   value of all property Disposed of in reliance on this clause (h) in any   Fiscal Year of Borrower shall not exceed $10.0 million; provided that an   additional aggregate book value of not more than $5.0 million per year of   property held by Foreign Subsidiaries may be Disposed of in reliance on this   clause (h) and (iii) at least 75% of the purchase price for such asset shall   be paid to the Borrower or such Restricted Subsidiary in cash (with an   assumption of Indebtedness (other than Subordinated Indebtedness) of the   Borrower or such Restricted Subsidiary by a purchaser in connection with the   applicable Disposition shall be deemed to be cash for the purposes of this   clause (iii)); (i) Licenses for the conduct of licensed departments (other   than to an Affiliate of any Loan Party) within any Store in the ordinary   course of business; and (j) any issuance or sale of Equity Interests in, or   sale of Indebtedness or other securities of, an Unrestricted Subsidiary;   provided, however, that any Disposition pursuant to clauses (a) though (d),   and clauses (f) and (h) shall be for fair market value. 7.06 Payment, except   that: Restricted Payments. Declare or make, directly or indirectly, any   Restricted (a) each Restricted Subsidiary of the Borrower may make Restricted   Payments to any other Loan Party (other than Holdings) and any other Person   that owns a direct Equity Interest (other than Disqualified Equity Interests)   in such Restricted Subsidiary, ratably according to their respective holdings   of the type of Equity Interests in respect of which such Restricted Payment   is being made; (b) Borrower and each of its Restricted Subsidiaries may   declare and make dividend payments or other distributions payable solely in   the common or preferred stock or other common or preferred Equity Interests   of such Person (other than Disqualified Equity Interests); provided that such   Equity Interests shall be pledged to the Collateral Agent to the extent   required by Section 6.12 hereof; (c) Borrower may declare and pay cash   dividends to Holdings in an amount not to exceed an amount necessary to   permit Holdings to pay (i) reasonable and customary corporate and operating   expenses relating to maintaining its ownership interest in the Borrower   (including reasonable out-of-pocket expenses for legal, administrative and   accounting services provided by third parties, and compensation, benefits and   other amounts payable to officers and employees in connection with their   employment in the ordinary course of business and to board of director - 86- 

    

 

observers),   (ii) franchise Taxes and similar fees required to maintain its corporate   existence, (iii) any income Taxes imposed on Holdings or its direct or   indirect parent of Holdings as the common parent of a consolidated, combined   or similar Tax group of which the Borrower and/or its Restricted Subsidiaries   are members, up to an amount not to exceed the amount of any such income   Taxes that the Borrower and its Restricted Subsidiaries would have been   required to pay on a separate company (or a stand-alone Tax group) basis   (reduced by any income Taxes paid directly by the Borrower or its Restricted   Subsidiaries); provided that in determining the hypothetical income Tax   liability of the Borrower and/or its Restricted Subsidiaries on a separate   company (or a stand-alone Tax group) basis for the purpose of clause (iii),   any interest expense on any Indebtedness incurred by Holdings shall be   treated as the interest expense of the Borrower and any dividends by Borrower   attributable to the income of any Unrestricted Subsidiary shall be permitted   only to the extent that cash payments were made for such purpose by such   Unrestricted Subsidiary to the Borrower or any of its Restricted Subsidiaries   and (iv) all costs or fees incurred in compliance with or in anticipation of   compliance with Securities Laws and state securities Laws; (d) Borrower may (or   make Restricted Payments to allow Holdings or any direct or indirect parent   thereof to) repurchase, redeem or otherwise acquire or retire shares of its   capital stock held by officers, directors or employees of Holdings or any   Restricted Subsidiary (or their estates or trusts) following the death,   disability or termination of employment of any such Person and, so long as no   Default shall have occurred and be continuing (or would result therefrom),   the Borrower may pay dividends to Holdings to permit such repurchase,   redemption, retirement or acquisition; provided that the aggregate amount of   payments to Holdings by the Borrower under this clause (d) will not exceed   $2.5 million in any Fiscal Year of the Borrower (with any unused portion of   such scheduled amount available for use in any succeeding Fiscal Year); (e)   so long as no Event of Default shall have occurred and be continuing or would   result therefrom, Borrower and each of its Restricted Subsidiaries may make   other Restricted Payments at any time in an amount not to exceed the sum of   (i) $10.0 million in the aggregate during the term of this Agreement and (ii)   if, after giving effect to such Restricted Payment on a Pro Forma Basis, the   Consolidated Leverage Ratio as of the last day of the most recently ended   Measurement Period would be no greater than 2.00:1.00, the Available Amount   at such time (for the purposes of clarity, the Available Amount under this   clause (ii) cannot be used to make Restricted Payments (or payments to   Holdings in order for Holdings to make) in order to make cash dividend   payments on Holdings’ preferred stock); (f) Investments permitted by Section   7.03; (g) repurchases of Equity Interests in Holdings, the Borrower or any of   the Restricted Subsidiaries deemed to occur upon exercise of stock options or   warrants or similar rights to the extent such Equity Interests represent a   portion of the exercise price of such options or warrants or similar rights;   (h) the Borrower may make Restricted Payments to Holdings or to any direct or   indirect parent of Holdings (and Holdings may make Restricted Payments to any   direct or indirect parent of Holdings) the proceeds of which shall be used to   make payments permitted under Sections 7.08(d), (e) and (h) (but only to the   extent such payments have not been and are not expected to be made by the   Borrower or a Restricted Subsidiary); - 87- 

    

 

(i) the   declaration and payment of dividends on the Borrower’s common stock following   the first public offering of the Borrower’s common stock or the common stock   of any of its direct or indirect parents after the Closing Date, of up to   6.0% per annum of the net proceeds received by or contributed to the Borrower   in or from any such public offering, other than public offerings with respect   to the Borrower’s common stock registered on Form S-4 or Form S-8; (j) the   payment of any dividend or distribution within 60 days after the date of   declaration thereof, if at the date of declaration (i) such payment would   have complied with the provisions of clause (i) and (ii) no Event of Default   occurred and was continuing; and (k) the Special Distribution; provided, for   purposes of calculating the amount available to make Restricted Payments, any   dividend or distribution paid in reliance on clause (j) shall be deemed to be   a Restricted Payment on the date of declaration and not on the date of   payment. 7.07 Change in Nature of Business. Engage in any material line of   business substantially different from those lines of business conducted by   the Borrower and the Restricted Subsidiaries on the date hereof or any   business reasonably related or ancillary thereto. 7.08 Transactions with   Affiliates. Enter into any transaction of any kind with any Affiliate of the   Loan Parties (or any Unrestricted Subsidiary, whether or not an Affiliate of   any Loan Party), whether or not in the ordinary course of business, other   than on fair and reasonable terms substantially as favorable to the Loan   Parties or such Restricted Subsidiary as would be obtainable by the Loan   Parties or such Restricted Subsidiary at the time in a comparable arm’s   length transaction with a Person other than an Affiliate; provided that the   foregoing restriction shall not apply to: (a) transactions among (i) the Loan   Parties, (ii) any Restricted Subsidiaries of Holdings that are not Loan   Parties or (iii) the Loan Parties, on the one hand, and any Restricted   Subsidiary that is not a Loan Party, on the other hand, that are at least as   favorable to the Loan Parties as could be obtained in an arm’s-length   transaction from an unaffiliated party; (b) (i) any Indebtedness permitted by   Section 7.02(c); (ii) any Investments permitted by Section 7.03 (other than   Investments in any Equity Investor or a portfolio company owned or controlled   by an Equity Investor (other than any Loan Party)); and (iii) any Restricted   Payment permitted by Section 7.06; (c) so long as no Event of Default has   occurred and is continuing or would result therefrom, the payment of (i)   Management Fees, provided that fees and other amounts paid under the   Management Agreement (other than expense reimbursements) shall not exceed   $2.5 million in any Fiscal Year plus the amount of such annual limit not paid   in the previous Fiscal Year, and (ii) Transaction Expenses; (d) employment,   consulting (exclusive of the Management Agreement) and severance agreements;   (e) loans and advances permitted by Section 7.03(b); (f) payment of   directors’ fees, expenses and indemnities; - 88- 

    

 

(g) incurrence   of Subordinated Indebtedness by the Loan Parties to the Equity Investors   otherwise permitted hereunder or the issuance of Equity Interests by Holdings   to the Equity Investors, provided that no such Equity Interests may   constitute Disqualified Equity Interests; (h) transactions with joint   ventures permitted hereunder for the purchase or sale of goods and services   entered into in the ordinary course of business on terms no less favorable to   the Loan Parties or such Restricted Subsidiary as would be obtainable by the   Loan Parties or such Restricted Subsidiary at the time in a comparable arm’s   length transaction; (i) customary payments by the Borrower and any of its Restricted   Subsidiaries to the Sponsor made for any financial advisory, financing,   underwriting or placement services or in respect of other investment banking   activities (including in connection with acquisitions or divestitures), which   payments are approved by a majority of the disinterested members of the board   of directors of Holdings in good faith; (j) transactions in which the   Borrower or any of the Restricted Subsidiaries, 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 Borrower or such Restricted   Subsidiary from a financial point of view; (k) investments by the Sponsor or   the Equity Investors in securities of Holdings, the Borrower or any of the   Restricted Subsidiaries so long as (A) the investment is being offered   generally to other investors on the same or more favorable terms and (B) the   investment constitutes less than 5.0% of the proposed or outstanding issue   amount of such class of securities; and (l) Restricted Payments permitted by   Section 7.06. 7.09 Burdensome Agreements. Enter into or permit to exist any   Contractual Obligation (other than this Agreement or any other Loan Document)   that (a) limits the ability (i) of any Restricted Subsidiary of Borrower to   make Restricted Payments to any Loan Party or to otherwise transfer property   to or invest in any Loan Party, except for any agreement in effect (A) on the   date hereof and set forth on Schedule 7.09 and any modification, replacement,   renewal, reinvestment or extension of any of the foregoing or (B) at the time   any Person becomes a Restricted Subsidiary of Borrower, so long as such   agreement was not entered into solely in contemplation of such Person   becoming a Restricted Subsidiary of Borrower, (ii) of any Restricted   Subsidiary of Borrower to Guarantee the Indebtedness of the Borrower, (iii)   of any Restricted Subsidiary of Borrower to make or repay loans to a Loan   Party or (iv) of the Borrower or any Restricted Subsidiary to create, incur,   assume or suffer to exist Liens on property of such Person; provided,   however, that this clause (iv) shall not prohibit any negative pledge   incurred or provided in favor of any holder of Indebtedness permitted under   Section 7.02 solely to the extent any such negative pledge relates to the   property financed by or the subject of such Indebtedness; or (b) requires the   grant of a Lien to secure an obligation of such Person if a Lien is granted   to secure another obligation of such Person. The foregoing restrictions shall   not be violated by reason of (i) applicable Laws, (ii) this Agreement and the   other Loan Documents, (iii) (A) the ABL Loan Documents so long as the   restrictions of the kind referred to in the previous sentence contained   therein, taken as a whole, are not materially more restrictive than those   contained in the ABL Loan Documents (as in effect on the Closing Date), (B)   the Swedish Credit Facility, or (C) documents governing Permitted Holdco Debt   so long as the restrictions of the kind referred to in the previous sentence   contained therein, taken as a whole, are no more restrictive than those   contained herein, (iv) customary non-assignment provisions of - 89- 

    

 

any contract,   lease or license of the Borrower or any Restricted Subsidiary of the   Borrower, (v) customary restrictions on a Subsidiary imposed pursuant to an   agreement entered into for the sale or disposition of all or substantially   all the Equity Interests or assets of a Subsidiary pending the closing of   such sale or disposition, (vi) customary provisions in joint venture   agreements and other similar agreements applicable to joint ventures entered   into in the ordinary course of business, (vii) documents that represent   Indebtedness of a Restricted Subsidiary that is not a Loan Party that is   permitted by Section 7.03 to the extent such restriction applies only to such   Restricted Subsidiary, (viii) documents that comprise restrictions imposed by   any agreement governing Indebtedness entered into after the Closing Date and   permitted under Section 7.03 that are, taken as a whole, in the good faith   judgment of the Borrower, no more restrictive with respect to the Borrower or   any Restricted Subsidiary than customary market terms for Indebtedness of   such type (and, in any event, are no more restrictive than the restrictions   contained in this Agreement), so long as the Borrower shall have determined   in good faith that such restrictions will not affect its obligation or   ability to make any payments or grant any Liens required hereunder or (vii) any   restrictions under any agreement that amends, refinances or replaces any   agreement containing restrictions permitted under the preceding clauses   provided that the terms and conditions are no less favorable taken as a whole   to the Restricted Subsidiary. 7.10 Amendments of Material Indebtedness.   Amend, modify or waive any of the Loan Party’s rights under any Material   Indebtedness (other than on account of any refinancing thereof otherwise   permitted hereunder), in each case, to the extent that such amendment,   modification or waiver would reasonably be likely to have a Material Adverse   Effect. 7.11 Accounting Changes. Make any change in their Fiscal Year;   provided, however, that Holdings and the Borrower may, upon written notice to   the Administrative Agent, change its fiscal year to any other fiscal year   reasonably acceptable to the Administrative Agent, in which case, Holdings,   the Borrower and the Administrative Agent will, and are hereby authorized by   the Lenders to, make any adjustments to this Agreement that are necessary to   reflect such change in Fiscal Year. 7.12 Prepayments, Etc. of Indebtedness.   Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled   maturity thereof in any manner any Subordinated Indebtedness, or make any   payment in violation of any subordination terms of any Subordinated   Indebtedness, except (a) regularly scheduled or mandatory repayments or   redemptions of Subordinated Indebtedness, (b) voluntary prepayments of   Subordinated Indebtedness as long as no Default or Event of Default then   exists or would arise as a result of entering into such transaction or the   making such payment, (c) refinancings and refundings of such Indebtedness in   compliance with Section 7.02(b) or Section 7.02(e), as applicable, and (d) so   long as no Event of Default shall have occurred and be continuing or would   result therefrom, prepayments, redemptions, purchases, defeasances or other   satisfactions of Subordinated Indebtedness from the Available Amount at such   time if, after giving effect to such prepayments, redemptions, purchases,   defeasances or other satisfactions on a Pro Forma Basis, the Consolidated   Leverage Ratio as of the last day of the most recently ended Measurement   Period would be no greater than 2.00:1.00. 7.13 Holding Company. In the case   of Holdings, engage in any business or activity other than (a) the ownership   of all outstanding Equity Interests in the Borrower, (b) maintaining its   corporate existence, (c) participating in Tax, accounting and other   administrative activities as the parent of the Consolidated group of   companies, including the Loan Parties, (d) the execution and delivery of the   Loan Documents, the ABL Loan Documents, agreements governing other   Indebtedness of the Borrower and its Subsidiaries not otherwise prohibited   hereunder and agreements governing Permitted Holdco Debt, in each case, to   which it is a party and the performance of its obligations thereunder, (e)   any public offering of its common stock or any other issuance of its Equity   Interests or any transaction permitted - 90- 

    

 

under Section   7.04, (f) holding any cash or property received in connection with Restricted   Payments made by the Borrower in accordance with Section 7.06 pending   application thereof by Holdings, (g) providing indemnification to officers   and directors and (h) activities incidental to the businesses or activities   described in clauses (a) through (g) of this Section. 7.14 Sale and Leaseback   Transactions. Enter into any arrangement, directly or indirectly, with any   person whereby it shall sell or transfer any property, real or personal, used   or useful in its business, whether now owned or hereafter acquired, and   thereafter rent or lease such property or other property that it intends to   use for substantially the same purpose or purposes as the property being sold   or transferred, provided that Borrower and its Restricted Subsidiaries may   become and remain liable as lessee, guarantor or other surety with respect to   any such lease if and to the extent that the Borrower or any of its   Restricted Subsidiaries would be permitted to enter into, and remain liable   under, such lease to the extent that the transaction would be permitted under   Section 7.02, assuming the sale and lease back transaction constituted   Indebtedness in a principal amount equal to the gross proceeds of the sale   and the related sale were permitted under Section 7.05(h). 7.15 Financial   Covenant. Permit the Consolidated Leverage Ratio on the last day of any   Fiscal Quarter of the Borrower (i) ending after the Amendment No. 4 Effective   Date and prior to June 30, 2018 to be greater than 5.00:1.00; (ii) ending on   or after June 30, 2018 and prior to June 30, 2019, to be greater than   4.75:1.00; (iii) ending on or after June 30, 2019 and prior to June 30, 2020,   to be greater than 4.50:1.00; (iv) ending on or after June 30, 2020 and prior   to June 30, 2021, to be greater than 4.25:1.00; and (v) ending on or after   June 30, 2021 to be greater than 4.00:1.00. ARTICLE VIII EVENTS OF DEFAULT   AND REMEDIES 8.01 Events of Default. Any of the following shall constitute an   Event of Default: (a) Non-Payment. The Borrower or any other Loan Party fails   to (i) pay when and as required to be paid herein, any amount of principal of   any Loan, or (ii) pay within three Business Days after the same becomes due,   any interest on any Loan, or any fee due hereunder, or (iii) pay within five   days after the same becomes due, any other amount payable hereunder or under   any other Loan Document; or (b) Specific Covenants. Any Loan Party or any of   its Restricted Subsidiaries fails to perform or observe any term, covenant or   agreement applicable to it contained in any of Section 6.03(a), 6.05(a)   (solely as it relates to the Borrower), 6.11, or Article VII; or (c) Other   Defaults. Any Loan Party fails to perform or observe any other covenant or   agreement (not specified in Section 8.01(a) or (b) above) contained in any   Loan Document on its part to be performed or observed and such failure   continues for 30 days following receipt of notice from the Administrative Agent   or the Required Lenders; or (d) Representations and Warranties. Any   representation, warranty, certification or statement of fact made or deemed   made by or on behalf of the Borrower or any other Loan Party herein, in any   other Loan Document, or in any document delivered in connection herewith or   therewith shall be incorrect or misleading in any material respect when made   or deemed made; or - 91- 

    

 

(e)   Cross-Default. (i) Any Loan Party or any Restricted Subsidiary thereof (A)   fails to make any payment when due (whether by scheduled maturity, required   prepayment, acceleration, demand, or otherwise) in respect of any   Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness   under Swap Contracts) having an aggregate principal amount (including amounts   owing to all creditors under any combined or syndicated credit arrangement)   of more than $10.0 million, or (B) fails to observe or perform any other   agreement or condition relating to any such Indebtedness or Guarantee or   contained in any instrument or agreement evidencing, securing or relating   thereto, or any other event occurs, the effect of which default or other   event is to cause, or to permit the holder or holders of such Indebtedness or   the beneficiary or beneficiaries of such Guarantee (or a trustee or agent on   behalf of such holder or holders or beneficiary or beneficiaries) to cause,   with the giving of notice if required, such Indebtedness to be demanded or to   become due or to be repurchased, prepaid, defeased or redeemed (automatically   or otherwise), or an offer to repurchase, prepay, defease or redeem such   Indebtedness to be made, prior to its stated maturity, or such Guarantee to   become payable or cash collateral in respect thereof to be demanded; provided   that (x) this paragraph (e) (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 and (y) the   occurrence of an event of default under the ABL Facility (other than a   payment event of default) shall not constitute an Event of Default under this   clause (e)(B) until the earliest of (x) 30 days after the date of such event   of default (during which period such event of default is not waived or   cured), (y) the acceleration of the obligations under the ABL Facility or (z)   the exercise of secured creditor remedies by the administrative agent under   the ABL Facility and/or lenders under the ABL Facility as a result of such   event of default; or (ii) there occurs under any Swap Contract an Early   Termination Date (as defined in such Swap Contract) resulting from (A) any   event of default under such Swap Contract as to which a Loan Party or any   Restricted Subsidiary thereof is the Defaulting Party (as defined in such   Swap Contract) or (B) any Termination Event (as so defined) under such Swap   Contract as to which a Loan Party or any Restricted Subsidiary thereof is an   Affected Party (as so defined) and, in either event, the Swap Termination   Value owed by such Loan Party or such Restricted Subsidiary as a result   thereof is greater than $10.0 million; or (f) Insolvency Proceedings, Etc.   Any Loan Party or any Material Subsidiary institutes or consents to the   institution of any proceeding under any Debtor Relief Law, or makes an   assignment for the benefit of creditors; or applies for or consents to the   appointment of any receiver, trustee, custodian, conservator, liquidator,   rehabilitator or similar officer for it or for all or any material part of   its property; or any receiver, trustee, custodian, conservator, liquidator,   rehabilitator or similar officer is appointed without the application or   consent of such Person and the appointment continues undischarged or unstayed   for 60 calendar days; or any proceeding under any Debtor Relief Law relating   to any such Person or to all or any material part of its property is   instituted without the consent of such Person and continues undismissed or   unstayed for 60 calendar days, or an order for relief is entered in any such   proceeding; or (g) Inability to Pay Debts; Attachment. (i) Any Loan Party or   any Material Subsidiary becomes unable or admits in writing its inability or   fails generally to pay its debts as they become due, or (ii) any writ or   warrant of attachment or execution or similar process is issued or levied   against all or any material part of the property of any such Person and is   not released, vacated or fully bonded within 30 days after its issue or levy;   or (h) Judgments. There is entered against any Loan Party or any Material   Subsidiary and remains unpaid one or more final judgments or orders for the   payment of money in an - 92- 

    

 

aggregate   amount (as to all such judgments and orders) exceeding $10.0 million (to the   extent not covered by independent third-party insurance as to which the   insurer is rated at least “A” by A.M. Best Company, has been notified of the   potential claim and does not dispute coverage) and (i) enforcement   proceedings are commenced by any creditor upon such judgment or order, or   (ii) there is a period of 30 consecutive days during which a stay of   enforcement of such judgment, by reason of a pending appeal or otherwise, is   not in effect; or (i) ERISA. An ERISA Event occurs or any substantially   similar event occurs with respect to a Foreign Plan (that would have been an   ERISA Event had the Foreign Plan been subject to ERISA and that gives rise to   liability under analogous foreign law) which, together with all other ERISA   Events (or such substantially similar events with respect to Foreign Plans)   that have occurred, has resulted or could reasonably be expected to result in   a Material Adverse Effect; or (j) Invalidity of Loan Documents. Any material   provision of any Loan Document, at any time after its execution and delivery   and for any reason other than as expressly permitted hereunder or thereunder   or satisfaction in full of all the Obligations, ceases to be in full force   and effect against Holdings, the Borrower or any Material Subsidiary; or any   Loan Party contests in any manner the validity or enforceability of any   provision of any Loan Document; or any Loan Party denies that it has any or   further liability or obligation under any provision of any Loan Document, or   purports to revoke, terminate or rescind any provision of any Loan Document;   or seeks to avoid, limit or otherwise adversely affect any Lien purported to   be created under any Collateral Document; or (k) Change of Control. There   occurs any Change of Control; or (l) Collateral Documents. Any Collateral   Document after delivery thereof pursuant to Article IV, Section 6.12, or   Section 6.18 shall for any reason (other than pursuant to the terms thereof)   cease (or shall be asserted by any Loan Party or, in the reasonable   discretion of the Administrative Agent, any other Person not) to create a   valid and perfected First Priority Lien or Second Priority Lien, as   applicable (subject to Liens permitted by Section 7.01), on the Collateral   purported to be covered thereby with an aggregate fair market value for such   Collateral of $10.0 million or more, for any reason other than the failure of   Collateral Agent to maintain control over any Collateral in its possession.   8.02 Remedies upon Event of Default. If any Event of Default occurs and is   continuing, the Administrative Agent may (and at the request of, or with the   consent of, the Required Lenders, shall) take any or all of the following   actions: (a) declare the commitment of each Lender to make Loans to be   terminated, whereupon such commitments and obligation shall be terminated;   (b) declare the unpaid principal amount of all outstanding Loans, all   interest accrued and unpaid thereon, and all other amounts owing or payable   hereunder or under any other Loan Document to be immediately due and payable,   without presentment, demand, protest or other notice of any kind, all of   which are hereby expressly waived by the Loan Parties; and (c) whether or not   the maturity of the Obligations shall have been accelerated pursuant hereto,   proceed to protect, enforce and exercise all rights and remedies under this   Agreement, any of the other Loan Documents or applicable Law, including, but   not limited to, by - 93- 

    

 

suit in equity,   action at law or other appropriate proceeding, whether for the specific   performance of any covenant or agreement contained in this Agreement and the   other Loan Documents or any instrument pursuant to which the Obligations are   evidenced, and, if such amount shall have become due, by declaration or   otherwise, proceed to enforce the payment thereof or any other legal or   equitable right of the Credit Parties; provided, however, that upon the occurrence   of an actual or deemed entry of an order for relief with respect to the   Borrower under the Bankruptcy Code of the United States, the obligation of   each Lender to make Loans shall automatically terminate, and the unpaid   principal amount of all outstanding Loans and all interest and other amounts   as aforesaid shall automatically become due and payable, in each case without   further act of the Administrative Agent or any Lender. 8.03 Application of   Funds. After the exercise of remedies provided for in Section 8.02 (or after   the Loans have automatically become immediately due and payable as set forth   in the proviso to Section 8.02), or after the commencement of any   Liquidation, subject to the terms of the Intercreditor Agreement, any amounts   received on account of the Obligations shall be applied (by the   Administrative Agent as hereby instructed so to apply) in the following   order: First, to payment in full of that portion of the Obligations   constituting fees, indemnities, Credit Party Expenses and other amounts   (including fees, charges and disbursements of counsel to the Administrative   Agent and the Collateral Agent and amounts payable under Article III) payable   to the Administrative Agent and the Collateral Agent, each in its capacity as   such; Second, to payment in full of all other Obligations ratably among the   parties holding such Obligations in proportion to the amounts described in   this clause Second payable to them in their capacities as such; Last, the   balance, if any, after all of the Obligations have been paid in full, to the   applicable Loan Parties or as otherwise required by Law. Notwithstanding the   foregoing, (a) amounts received from the Borrower or any Guarantor that is   not a Qualified ECP Guarantor shall not be applied to the Obligations that   are Excluded Swap Obligations (it being understood, that in the event that   any amount is applied to Obligations other than Excluded Swap Obligations as   a result of this this clause (a), the Administrative Agent shall, to the   extent permitted by law, make such adjustments as it determines are   appropriate to distributions pursuant to clause Second above from amounts   received from Qualified ECP Guarantors to ensure, as nearly as possible, that   the proportional aggregate recoveries with respect to Obligations described   in clause Second above by the holders of any Excluded Swap Obligations are   the same as the proportional aggregate recoveries with respect to other   Obligations pursuant to clause Second above) and (b) Obligations arising   under Cash Management Services and Bank Products shall be excluded from the   application described above if the Administrative Agent has not received   written notice thereof, together with such supporting documentation as the   Administrative Agent may request, from the applicable provider of Cash   Management Services or Bank Products, as the case may be. Each provider of   Cash Management Services or Bank Products not a party to this Agreement that   has given the notice contemplated by the preceding sentence shall, by such   notice, be deemed to have acknowledged and accepted the appointment of the   Administrative Agent pursuant to the terms of Article IX hereof for itself   and its Affiliates as if a “Lender” party hereto. - 94- 

    

 

 

ARTICLE IX   ADMINISTRATIVE AGENT 9.01 Appointment and Authority. (a) Each of the Lenders   hereby irrevocably appoints JPMorgan to act on its behalf as the   Administrative Agent hereunder and under the other Loan Documents and   authorizes the Administrative Agent to take such actions on its behalf and to   exercise such powers as are delegated to the Administrative Agent by the   terms hereof or thereof, together with such actions and powers as are   reasonably incidental thereto. The provisions of this Article IX are solely   for the benefit of the Administrative Agent and the Lenders, and neither the   Borrower nor any other Loan Party shall have rights as a third party   beneficiary of any of such provisions. (b) The Administrative Agent shall   also act as the Collateral Agent under the Loan Documents, and each of the   Lenders (in its capacities as a Lender) hereby irrevocably appoints and   authorizes the Administrative Agent to act as the agent of such Lender for   purposes of acquiring, holding and enforcing any and all Liens on Collateral   granted by any of the Loan Parties to secure any of the Obligations, together   with such powers and discretion as are reasonably incidental thereto. In this   connection, the Collateral Agent and any co-agents, sub-agents and   attorneys-in-fact appointed by the Collateral Agent pursuant to Section 9.05   for purposes of holding or enforcing any Lien on the Collateral (or any   portion thereof) granted under the Collateral Documents, or for exercising   any rights and remedies thereunder at the direction of the Agents, shall be   entitled to the benefits of all provisions of this Article IX and Article XI   (including Section 11.04(c), as though such co-agents, sub-agents and   attorneys-in-fact were the Collateral Agent under the Loan Documents) as if   set forth in full herein with respect thereto. 9.02 Rights as a Lender. The   Person serving as the Administrative Agent and Collateral 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 or the Collateral Agent and the term “Lender” or   “Lenders” shall, unless otherwise expressly indicated or unless the context   otherwise requires, include the Person serving as the Administrative Agent   and Collateral Agent hereunder in its individual capacity. Such Person and   its Affiliates may accept deposits from, lend money to, act as the financial   advisor or in any other advisory capacity for and generally engage in any   kind of business with the Borrower or any Subsidiary or other Affiliate   thereof as if such Person were not the Administrative Agent or the Collateral   Agent hereunder and without any duty to account therefor to the Lenders. 9.03   Exculpatory Provisions. The Agents shall not have any duties or obligations   except those expressly set forth herein and in the other Loan Documents.   Without limiting the generality of the foregoing, the Agents: (a) shall not   be subject to any fiduciary or other implied duties, regardless of whether a   Default has occurred and is continuing; (b) shall not have any duty to take   any discretionary action or exercise any discretionary powers, except   discretionary rights and powers expressly contemplated hereby or by the other   Loan Documents that the Administrative Agent or Collateral Agent is required   to exercise as directed in writing by the Required Lenders (or such other   number or percentage of the Lenders as shall be expressly provided for herein   or in the other Loan Documents), provided that the Administrative Agent and   the Collateral Agent shall not be required to take any action - 95- 

    

 

that, in its   opinion or the opinion of its counsel, may expose the Administrative Agent or   the Collateral Agent to liability or that is contrary to any Loan Document or   applicable Law; and (c) shall not, except as expressly set forth herein and   in the other Loan Documents, have any duty to disclose, and shall not be   liable for the failure to disclose, any information relating to the Borrower   or any of its Affiliates that is communicated to or obtained by the Person   serving as the Administrative Agent or the Collateral Agent or any of its   Affiliates in any capacity. The Agents shall not be liable for any action   taken or not taken by them (i) with the consent or at the request of the   Required Lenders (or such other number or percentage of the Lenders as shall   be necessary, or as the Agents shall believe in good faith shall be   necessary, under the circumstances as provided in Sections 11.01 and 8.02) or   (ii) in the absence of their own gross negligence or willful misconduct. The   Agents shall be deemed not to have knowledge of any Default unless and until   notice describing such Default is given to the Administrative Agent by the   Borrower or a Lender. The Agents shall not be responsible for or have any   duty to ascertain or inquire into (i) any statement, warranty or   representation made in or in connection with this Agreement or any other Loan   Document, (ii) the contents of any certificate, report or other document   delivered hereunder or thereunder or in connection herewith or therewith,   (iii) the performance or observance of any of the covenants, agreements or   other terms or conditions set forth herein or therein or the occurrence of   any Default, (iv) the validity, enforceability, effectiveness or genuineness   of this Agreement, any other Loan Document or any other agreement, instrument   or document, or the creation, perfection or priority of any Lien purported to   be created by the Collateral Documents, (v) the value or the sufficiency of   any Collateral, or (vi) the satisfaction of any condition set forth in   Article IV or elsewhere herein, other than to confirm receipt of items   expressly required to be delivered to the Agents. 9.04 Reliance by Agents.   The Agents shall be entitled to rely upon, and shall not incur any liability   for relying upon, any notice, request, certificate, consent, statement,   instrument, document or other writing (including any electronic message,   Internet or intranet website posting or other distribution) believed by them   to be genuine and to have been signed, sent or otherwise authenticated by the   proper Person. The Agents also may rely upon any statement made to them   orally or by telephone and believed by them to have been made by the proper   Person, and shall not incur any liability for relying thereon. In determining   compliance with any condition hereunder to the making of a Loan that by its   terms must be fulfilled to the satisfaction of a Lender, the Administrative   Agent may presume that such condition is satisfactory to such Lender unless   the Administrative Agent shall have received notice to the contrary from such   Lender prior to the making of such Loan. The Agents may consult with legal   counsel (who may be counsel for the Borrower), independent accountants and other   experts selected by them, and shall not be liable for any action taken or not   taken by them in accordance with the advice of any such counsel, accountants   or experts. 9.05 Delegation of Duties. The Agents may perform in any and all   of their duties and exercise their rights and powers hereunder or under any   other Loan Document by or through any one or more sub-agents appointed by the   Administrative Agent or the Collateral Agent, as applicable. The Agents and   any such sub-agent may perform any and all of their duties and exercise their   rights and powers by or through their respective Related Parties. The   exculpatory provisions of this Article IX shall apply to any such sub-agent   and to the Related Parties of the Agents and any such sub-agent, and shall apply   to their respective activities in connection with the syndication of the   credit facility provided for herein as well as activities as Administrative   Agent or Collateral Agent. - 96- 

    

 

9.06   Resignation of Agents. The Agents may at any time give notice of its   resignation to the Lenders and the Borrower, including the effective date of   such resignation which may be not less than 30 days from the date of such   notice. Upon receipt of any such notice of resignation, the Required Lenders shall   have the right, with the consent of the Borrower at all times other than   during the existence of an Event of Default (which consent shall not be   unreasonably withheld or delayed), to appoint a successor, which shall be a   bank with an office in the United States, or an Affiliate of any such bank   with an office in the United States. If no such successor shall have been so   appointed by the Required Lenders and shall have accepted such appointment   within 30 days after the retiring Agents give notice of their resignation,   then the retiring Agents may on behalf of the Lenders, appoint a successor   Administrative Agent and Collateral Agent meeting the qualifications set   forth above; provided that if the Agents shall notify the Borrower and the   Lenders that no qualifying Person has accepted such appointment, then such   resignation shall nonetheless become effective in accordance with such notice   and (a) the retiring Agents shall be discharged from their duties and   obligations hereunder and under the other Loan Documents (except that in the   case of any collateral security held by the Collateral Agent on behalf of the   Lenders under any of the Loan Documents, the retiring Collateral Agent shall   continue to hold such collateral security until such time as a successor Collateral   Agent is appointed) and (b) all payments, communications and determinations   provided to be made by, to or through the Administrative Agent shall instead   be made by or to each Lender directly, until such time as the Required   Lenders appoint a successor Administrative Agent as provided for above in   this Section 9.06. Upon the acceptance of a successor’s appointment as   Administrative Agent and Collateral Agent hereunder, such successor shall   succeed to and become vested with all of the rights, powers, privileges and   duties of the retiring (or retired) Administrative Agent and Collateral   Agent, and the retiring Administrative Agent and Collateral Agent shall be   discharged from all of their respective duties and obligations hereunder or   under the other Loan Documents (if not already discharged therefrom as   provided above in this Section 9.06). The fees payable by the Borrower to a   successor Administrative Agent shall be the same as those payable to its   predecessor unless otherwise agreed between the Borrower and such successor.   After the retiring Administrative Agent’s or Collateral Agent’s resignation   hereunder and under the other Loan Documents, the provisions of this Article   IX and Section 11.04 shall continue in effect for the benefit of such retiring   Administrative Agent and Collateral Agent, their respective sub-agents and   their respective Related Parties in respect of any actions taken or omitted   to be taken by any of them while the retiring Administrative Agent and   Collateral Agent was acting as Administrative Agent and Collateral Agent.   9.07 Non-Reliance on Agents and Other Lenders. Each Lender acknowledges that   it has, independently and without reliance upon the Agents, the Arrangers,   the Co-Documentation Agents or any other Lender or any of their Related   Parties and based on such documents and information as it has deemed   appropriate, made its own credit analysis and decision to enter into this   Agreement. Each Lender also acknowledges that it will, independently and   without reliance upon the Agents, the Arrangers, the Co-Documentation Agents   or any other Lender or any of their Related Parties and based on such   documents and information as it shall from time to time deem appropriate,   continue to make its own decisions in taking or not taking action under or   based upon this Agreement, any other Loan Document or any related agreement   or any document furnished hereunder or thereunder. The Agents, the Arrangers   and the Co-Documentation Agents shall not have any duty or responsibility to   provide any Lender with any other credit or other information concerning the   affairs, financial condition or business of any Loan Party that may come into   the possession of the Agents, the Arrangers and the Co-Documentation Agents.   9.08 No Other Duties, Etc.Anything herein to the contrary notwithstanding,   none of the Arrangers or Co-Documentation Agents listed on the cover page   hereof shall have (i) any powers, duties or responsibilities under this   Agreement or any of the other Loan Documents, except in its capacity, as applicable,   as the Administrative Agent, the Collateral Agent or a Lender hereunder or   (ii) - 97- 

    

 

any fiduciary   relationship with the Lenders, Borrower or any other Person pursuant to the   Loan Documents. 9.09 Administrative Agent May File Proofs of Claim. In case   of the pendency of any proceeding under any Debtor Relief Law or any other   judicial proceeding relative to any Loan Party, the Administrative Agent   (irrespective of whether the principal of any Loan shall then be due and payable   as herein expressed or by declaration or otherwise and irrespective of   whether the Administrative Agent shall have made any demand on the Borrower)   shall be entitled and empowered, by intervention in such proceeding or   otherwise (a) to file and prove a claim for the whole amount of the principal   and interest owing and unpaid in respect of the Loans and all other   Obligations that are owing and unpaid and to file such other documents as may   be necessary or advisable in order to have the claims of the Lenders and the   Administrative Agent (including any claim for the reasonable compensation,   expenses, disbursements and advances of the Lenders and the Administrative   Agent and their respective agents and counsel and all other amounts due the   Lenders and the Administrative Agent under Sections 2.07 and 11.04) allowed   in such judicial proceeding; and (b) to collect and receive any monies or   other property payable or deliverable on any such claims and to distribute   the same; and any custodian, receiver, assignee, trustee, liquidator,   sequestrator or other similar official in any such judicial proceeding is   hereby authorized by each Lender to make such payments to the Administrative   Agent and, if the Administrative Agent shall consent to the making of such   payments directly to the Lenders, to pay to the Administrative Agent any   amount due for the reasonable compensation, expenses, disbursements and   advances of the Administrative Agent and its agents and counsel, and any   other amounts due the Administrative Agent under Sections 2.07 and 11.04.   Nothing contained herein shall be deemed to authorize the Administrative   Agent to authorize or consent to or accept or adopt on behalf of any Lender   any plan of reorganization, arrangement, adjustment or composition affecting   the Obligations or the rights of any Lender to authorize the Administrative   Agent to vote in respect of the claim of any Lender in any such proceeding.   9.10 Collateral and Guaranty Matters. The Lenders irrevocably authorize the   Agents, at their option and in their discretion, (a) to release any Lien on   any property granted to or held by the Collateral Agent under any Loan   Document (i) upon termination of the Aggregate Commitments and Additional   Term B-1 Commitment and payment in full of all Obligations (other than (A)   contingent indemnification obligations for which no claim has then been   asserted, (B) obligations and liabilities under Cash Management Services and   (C) obligations and liabilities under Bank Products), (ii) that is sold or to   be sold as part of or in connection with any sale permitted hereunder or   under any other Loan Document to a Person that is not a Loan Party, or (iii)   if approved, authorized or ratified in writing in accordance with Section   11.01; (b) to release any Guarantor from its obligations hereunder if such   Person ceases to be a Restricted Subsidiary as a result of a transaction   permitted hereunder; and (c) to subordinate any Lien on any property granted   to or held by the Collateral Agent under any Loan Document to the holder of   any Lien on such property that is permitted by Section 7.01(i). - 98- 

    

 

Upon request by   the Agents at any time, the Required Lenders will confirm in writing the   Agents’ authority to release or subordinate their interest in particular   types or items of property, or to release any Guarantor from its obligations   hereunder pursuant to this Section 9.10. In each case as specified in this   Section 9.10, the Administrative Agent or the Collateral Agent, as   applicable, will, at the Borrower’s expense, execute and deliver to the   applicable Loan Party such documents as such Loan Party may reasonably   request to evidence the release of such item of Collateral from the   assignment and security interest granted under the Collateral Documents or to   subordinate its interest in such item, or to release such Guarantor from its   obligations hereunder, in each case in accordance with the terms of the Loan   Documents and this Section 9.10. 9.11 Notice of Transfer. The Agents may deem   and treat a Lender party to this Agreement as the owner of such Lender’s   portion of the Obligations for all purposes, unless and until, and except to   the extent, an Assignment and Assumption shall have become effective as set   forth in Section 11.06. 9.12 Agency for Perfection. Each Lender hereby   appoints each other Lender as agent for the purpose of perfecting Liens for   the benefit of the Agents and the Lenders, in assets which, in accordance   with Article 9 of the UCC or any other applicable Law can be perfected only   by possession. Should any Lender (other than the Agents) obtain possession of   any such Collateral, such Lender shall notify the Agents thereof, and,   promptly upon the Collateral Agent’s request therefor shall deliver such   Collateral to the Collateral Agent or otherwise deal with such Collateral in   accordance with the Collateral Agent’s instructions. 9.13 Indemnification of   Agents. The Lenders agree to indemnify the Agents (to the extent not   reimbursed by the Loan Parties and without limiting the obligations of Loan   Parties hereunder), ratably according to their respective principal amount of   Loans held (or, if the Loans have been repaid, according to their respective   principal amount of Loans held immediately prior to such repayment), from and   against any and all liabilities, obligations, losses, damages, penalties,   actions, judgments, suits, costs, expenses or disbursements of any kind or   nature whatsoever that may be imposed on, incurred by, or asserted against   any Agent in any way relating to or arising out of this Agreement or any   other Loan Document or any action taken or omitted to be taken by any Agent   in connection therewith; provided that no Lender shall be liable for any   portion of such liabilities, obligations, losses, damages, penalties,   actions, judgments, suits, costs, expenses or disbursements resulting from   such Agent’s gross negligence or willful misconduct as determined by a final   and nonappealable judgment of a court of competent jurisdiction. 9.14   Withholding Tax. To the extent required by any applicable law, the Agent may   withhold from any payment to any Lender an amount equivalent to any applicable   withholding Tax. If the Internal Revenue Service or any other authority of   the United States or other jurisdiction asserts a claim that the Agent did   not properly withhold Tax from amounts paid to or for the account of any   Lender for any reason (including, without limitation, because the appropriate   form was not delivered or not properly executed, or because such Lender   failed to notify the Agent of a change in circumstance that rendered the   exemption from, or reduction of withholding Tax ineffective), such Lender   shall indemnify and hold harmless the Agent (to the extent that the Agent has   not already been reimbursed by the Borrower and without limiting the   obligation of the Borrower to do so) for all amounts paid, directly or   indirectly, by the Agent as Tax or otherwise, including any interest,   additions to Tax or penalties thereto, together with all expenses incurred,   including legal expenses and any other out-of-pocket expenses, whether or not   such Taxes were correctly or legally imposed or asserted by the relevant   Governmental Authority. A certificate as to the amount of such payment or   liability delivered to any Lender by the Administrative Agent shall be   conclusive absent manifest error. - 99- 

    

 

9.15 Relation   Among Lenders. 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 Agents) authorized to act for, any other Lender.   ARTICLE X CONTINUING GUARANTY 10.01Guaranty. Each Guarantor hereby absolutely   and unconditionally guarantees, as a guaranty of payment and performance and   not merely as a guaranty of collection, prompt payment when due, whether at   stated maturity, by required prepayment, upon acceleration, demand or otherwise,   and at all times thereafter, of any and all of the Obligations, whether for   principal, interest, premiums, fees, indemnities, damages, costs, expenses or   otherwise, of the Borrower to the Credit Parties, arising hereunder and under   the other Loan Documents (including all renewals, extensions, amendments,   refinancings and other modifications thereof and all costs, attorneys’ fees   and expenses incurred by the Credit Parties in connection with the collection   or enforcement thereof). The Administrative Agent’s books and records showing   the amount of the Obligations shall be admissible in evidence in any action   or proceeding, and shall be binding upon each Guarantor, and conclusive for   the purpose of establishing the amount of the Obligations. This Guaranty shall   not be affected by the genuineness, validity, regularity or enforceability of   the Obligations or any instrument or agreement evidencing any Obligations, or   by the existence, validity, enforceability, perfection, non-perfection or   extent of any collateral therefor, or by any fact or circumstance relating to   the Obligations which might otherwise constitute a defense to the obligations   of any Guarantor under this Guaranty, and each Guarantor hereby irrevocably   waives any defenses it may now have or hereafter acquire in any way relating   to any or all of the foregoing. Each Qualified ECP Guarantor (including the   Borrower) 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 each such Loan   Party’s obligations (a) in respect of Swap Contracts to which it is a party   and (b) under this Guaranty in respect of Swap Obligations (provided,   however, that each Qualified ECP Guarantor shall only be liable under this   Section 10.01 for the maximum amount of such liability that can be hereby   incurred without rendering its obligations under this Section 10.01, or   otherwise under this Guaranty, as it relates to such other Loan Party,   voidable under applicable law relating to fraudulent conveyance or fraudulent   transfer, and not for any greater amount). The obligations of each Qualified   ECP Guarantor under this Section shall remain in full force and effect until   the termination of this Guaranty in accordance with Section 10.06 hereof.   Each Qualified ECP Guarantor intends that this Section 10.01 constitute, and   this Section 10.01 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. 10.02Rights of   Lenders. Each Guarantor consents and agrees that the Credit Parties may, at   any time and from time to time, without notice or demand, and without   affecting the enforceability or continuing effectiveness hereof: (a) amend,   extend, renew, compromise, discharge, accelerate or otherwise change the time   for payment or the terms of the Obligations or any part thereof; (b) take,   hold, exchange, enforce, waive, release, fail to perfect, sell, or otherwise   dispose of any security for the payment of this Guaranty or any Obligations;   (c) apply such security and direct the order or manner of sale thereof as the   Administrative Agent and the Lenders in their sole discretion may determine;   and (d) release or substitute one or more of any endorsers or other   guarantors of any of the Obligations. Without limiting the generality of the   foregoing, each Guarantor consents to the taking of, or failure to take, any   action which might in any manner or to any extent vary the risks of such   Guarantor under this Guaranty or which, but for this provision, might operate   as a discharge of such Guarantor. -100- 

    

 

10.03Certain   Waivers. Each Guarantor waives (a) any defense arising by reason of any   disability or other defense of the Borrower or any other Guarantor, or the   cessation from any cause whatsoever (including any act or omission of any   Credit Party) of the liability of the Borrower; (b) any defense based on any   claim that such Guarantor’s obligations exceed or are more burdensome than   those of the Borrower; (c) the benefit of any statute of limitations   affecting such Guarantor’s liability hereunder; (d) any right to proceed   against the Borrower, proceed against or exhaust any security for the   Obligations, or pursue any other remedy in the power of any Credit Party   whatsoever; (e) any benefit of and any right to participate in any security   now or hereafter held by any Credit Party; and (f) to the fullest extent   permitted by law, any and all other defenses or benefits that may be derived   from or afforded by applicable law limiting the liability of or exonerating   guarantors or sureties. Each Guarantor expressly waives all setoffs and   counterclaims and all presentments, demands for payment or performance,   notices of nonpayment or nonperformance, protests, notices of protest,   notices of dishonor and all other notices or demands of any kind or nature   whatsoever with respect to the Obligations, and all notices of acceptance of   this Guaranty or of the existence, creation or incurrence of new or   additional Obligations. As provided below, this Guaranty shall be governed   by, and construed in accordance with, the laws of the State of New York.   10.04Obligations Independent. The obligations of each Guarantor hereunder re   those of primary obligor, and not merely as surety, and are independent of   the Obligations and the obligations of any other guarantor, and a separate   action may be brought against each Guarantor to enforce this Guaranty whether   or not the Borrower or any other person or entity is joined as a party.   10.05Subrogation. No Guarantor shall exercise any right of subrogation,   contribution, indemnity, reimbursement or similar rights with respect to any   payments it makes under this Guaranty until all of the Obligations (other   than any indemnity obligations for unasserted claims that by its terms   survives the termination of this Agreement) and any amounts payable under   this Guaranty have been paid and performed in full and the Commitments and   the facility are terminated. If any amounts are paid to any Guarantor in   violation of the foregoing limitation, then such amounts shall be held in   trust for the benefit of the Credit Parties and shall forthwith be paid to   the Credit Parties to reduce the amount of the Obligations, whether matured   or unmatured. 10.06Termination; Reinstatement. This Guaranty is a continuing   and irrevocable guaranty of all Obligations now or hereafter existing and   shall remain in full force and effect until all Obligations and any other   amounts payable under this Guaranty are paid in full in cash (other than any   indemnity obligations for unasserted claims that by its terms survives the   termination of this Agreement) and the Commitments and the facility with   respect to the Obligations are terminated. Notwithstanding the foregoing,   this Guaranty shall continue in full force and effect or be revived, as the   case may be, if any payment by or on behalf of the Borrower or any Guarantor   is made, or any of the Credit Parties exercises its right of setoff, in   respect of the Obligations and such payment or the proceeds of such setoff or   any part thereof is subsequently invalidated, declared to be fraudulent or   preferential, set aside or required (including pursuant to any settlement   entered into by any of the Credit Parties in their discretion) to be repaid   to a trustee, receiver or any other party, in connection with any proceeding   under any Debtor Relief Laws or otherwise, all as if such payment had not   been made or such setoff had not occurred and whether or not the Credit   Parties are in possession of or have released this Guaranty and regardless of   any prior revocation, rescission, termination or reduction. The obligations   of each Guarantor under this paragraph shall survive termination of this   Guaranty. 10.07Subordination. Each Guarantor hereby subordinates the payment   of all obligations and indebtedness of the Borrower owing to such Guarantor,   whether now existing or hereafter arising, including but not limited to any   obligation of the Borrower to any Guarantor as -101- 

    

 

subrogee of the   Credit Parties or resulting from such Guarantor’s performance under this   Guaranty, to the indefeasible payment in full in cash of all Obligations   (other than any indemnity obligations for unasserted claims that by its terms   survives the termination of this Agreement). If the Credit Parties so   request, any such obligation or indebtedness of the Borrower to any Guarantor   shall be enforced and performance received by such Guarantor as trustee for   the Credit Parties and the proceeds thereof shall be paid over to the Credit   Parties on account of the Obligations, but without reducing or affecting in   any manner the liability of such Guarantor under this Guaranty. 10.08Stay of   Acceleration. If acceleration of the time for payment of any of the   Obligations is stayed, in connection with any case commenced by or against   any Guarantor or the Borrower under any Debtor Relief Laws, or otherwise, all   such amounts shall nonetheless be payable by such Guarantor immediately upon   demand by the Credit Parties. 10.09Condition of Borrower. Each Guarantor   acknowledges and agrees that it has the sole responsibility for, and has   adequate means of, obtaining from the Borrower and any other guarantor such   information concerning the financial condition, business and operations of   the Borrower and any such other Guarantor as such Guarantor requires, and   that none of the Credit Parties has any duty, and such Guarantor is not   relying on the Credit Parties at any time to disclose to such Guarantor any   information relating to the business, operations or financial condition of   the Borrower or any other Guarantor (such Guarantor waiving any duty on the   part of the Credit Parties to disclose such information and any defense   relating to the failure to provide the same). ARTICLE XI MISCELLANEOUS   11.01Amendments, Etc. No amendment or waiver of any provision of this   Agreement or any other Loan Document, and no consent to any departure by the   Borrower or any other Loan Party therefrom, shall be effective unless in   writing signed by the Required Lenders and the Borrower or the applicable   Loan Party, as the case may be, and acknowledged by the Administrative Agent,   and each such waiver or consent shall be effective only in the specific   instance and for the specific purpose for which given; provided, however,   that no such amendment, waiver or consent shall: (a) extend or increase the   Commitment of any Lender (or reinstate any Commitment terminated pursuant to   Section 8.02) without the written consent of such Lender (it being understood   that the waiver of any mandatory prepayment shall not constitute an extension   or increase of any Commitment of any Lender); (b) postpone any date fixed by   this Agreement, any Additional Credit Extension Amendment or any other Loan   Document for any payment of principal, interest, fees or other amounts due to   the Lenders (or any of them) hereunder or under any of the other Loan   Documents without the written consent of each Lender entitled to such payment   (it being understood that the waiver of or amendment to the terms of any   mandatory prepayment of the Loans shall not constitute a postponement of any   date scheduled for the payment of principal or interest); (c) reduce the   principal of, or the rate of interest specified herein on, any Loan, or any   fees or other amounts payable hereunder or under any other Loan Document,   without the written consent of each Lender entitled to such amount; provided,   however, that only the consent of the Required Lenders shall be necessary to   amend the definition of “Default Rate” or to waive any obligation of the   Borrower to pay interest at the Default Rate; -102- 

    

 

(d) change   Section 8.03 in a manner that would alter the pro rata sharing of payments   required thereby without the written consent of each Lender; (e) change any   provision of this Section 11.01 or the definition of “Required Lenders” or   any other provision hereof specifying the number or percentage of Lenders   required to amend, waive or otherwise modify any rights hereunder or make any   determination or grant any consent hereunder, without the written consent of   each Lender; (f) except as expressly permitted hereunder, release all or   substantially all of the Guarantors from their obligations under the Loan   Documents without the written consent of each Lender; or (g) except for   releases of Collateral in accordance with the provisions of Section 9.10   hereof (in which case, such release may be made by the Administrative Agent   acting alone), release all or substantially all of the Collateral from the   Liens of the Collateral Documents in any transaction or series of related   transactions, without the written consent of each Lender; and provided   further, that no amendment, waiver or consent shall, unless in writing and   signed by the Administrative Agent or the Collateral Agent in addition to the   Lenders required above, affect the rights or duties of the Administrative   Agent or the Collateral Agent, as applicable, under this Agreement or any   other Loan Document. Notwithstanding anything to the contrary herein, no   Defaulting Lender shall have any right to approve or disapprove any   amendment, waiver or consent hereunder, except an amendment under clause (a),   (b) or (c) above that directly affects the rights and obligations of such   Lender. This Agreement may be amended (or amended and restated) with the   written consent of the Required Lenders, the Administrative Agent and Loan   Parties (i) to add one or more additional credit facilities to this Agreement   and to permit the extensions of credit from time to time outstanding   thereunder and the accrued interest and fees in respect thereof to share   ratably in the benefits of this Agreement and the other Loan Documents with   the Loans and the accrued interest and fees in respect thereof and (ii) to   include appropriately the Lenders holding such credit facilities in any   determination of the Required Lenders. In addition, notwithstanding the   foregoing, this Agreement may be amended with the written consent of the   Administrative Agent, the Loans Parties and the Lenders providing the   Replacement Loans (as defined below) to permit the refinancing of all   outstanding Loans of any Class (“Refinanced Loans”) with replacement loans   (“Replacement Loans”) hereunder; provided that (a) the aggregate principal   amount of such Replacement Loans shall not exceed the aggregate principal   amount of such Refinanced Loans, (b) the Yield with respect to such Replacement   Loans shall not be higher than the Yield for such Refinanced Loans (or   similar interest rate spread applicable to such Refinanced Loans) immediately   prior to such refinancing, (c) the weighted average life to maturity of such   Replacement Loans shall not be shorter than the Weighted Average Life to   Maturity of such Refinanced Loans at the time of such refinancing (except by   virtue of amortization or prepayment of the Refinanced Loans prior to the   time of such incurrence) and (d) all other terms applicable to such   Replacement Loans shall be substantially identical to, or less favorable to   the Lenders providing such Replacement Loans than, those applicable to such   Refinanced Loans, except to the extent necessary to provide for covenants and   other terms applicable to any period after the final maturity date of all   Loans in effect immediately prior to such refinancing. If any Lender does not   consent to a proposed amendment, waiver, consent or release with respect to   any Loan Document that requires the consent of each Lender, and that has been   approved by -103- 

    

 

the Required   Lenders, the Borrower may replace such non-consenting Lender in accordance   with Section 11.13; provided that such amendment, waiver, consent or release   can be effected as a result of the assignment contemplated by such Section   (together with all other such assignments required by the Borrower to be made   pursuant to this paragraph). Notwithstanding anything to the contrary herein   contained, no provider of any Bank Product or Cash Management Service in its   capacity as such (a) shall have any right to consent to any amendment,   modification, termination or waiver of this Agreement or any other Loan   Document (including any amendment and/or restatement of this Agreement and   the other Loan Documents refinancing, replacing or restructuring the Loans   and the Obligations including any increase thereof) or to contest any such   amendment, modification, termination or waiver, (b) shall be deemed a Lender   for any purposes of the Loan Documents, or (c) shall have any right to (i)   enforce any security interest, right or remedy under any of the Loan   Documents or (ii) instruct the Agents with respect to any action or inaction   by the Agents with respect to the exercise of any rights or remedies under   the Loan Documents or at law or equity, or consent to or contest any such   action or inaction. Except for the payment of amounts on account of Bank   Products and Cash Management Services (but only to the extent the Agents   shall have received sufficient funds therefor), the Agents shall have no   duties or obligations to any provider of any Bank Product or Cash Management   Services in its capacity as such. The provisions of this paragraph shall   survive the assignment by any Lender of its Loans and Commitments.   Notwithstanding anything to the contrary contained in this Section 11.01, if   the Administrative Agent and the Borrower shall have jointly identified an   obvious error (including, but not limited to, an incorrect cross-reference)   or any error or omission of a technical or immaterial nature, in each case,   in any provision of any Loan Document, then the Administrative Agent and/or   the Collateral Agent (acting in their sole discretion) and the Borrower or   any other relevant Loan Party shall be permitted to amend such provision and   such amendment shall become effective without any further action or consent   of any other party to any Loan Document. In addition, notwithstanding the   foregoing, this Agreement and the other Loan Documents may be amended with   the written consent of the Administrative Agent, the Borrower and the Lenders   providing the Replacement Loans to permit the refinancing of all outstanding   Loans of any Class. 11.02Notices; Effectiveness; Electronic Communications.   (a) Notices Generally. Except in the case of notices and other communications   expressly permitted to be given by telephone (and except as provided in   subsection (b) below), all notices and other communications provided for   herein shall be in writing and shall be delivered by hand or overnight   courier service, mailed by certified or registered mail or sent by telecopier   as follows, and all notices and other communications expressly permitted   hereunder to be given by telephone shall be made to the applicable telephone   number, as follows: (i) if to Holdings, the Borrower, any Loan Party, the   Administrative Agent or the Collateral Agent to the address, telecopier   number, electronic mail address or telephone number specified for such Person   on Schedule 11.02; and (ii) if to any other Lender, to the address,   telecopier number, electronic mail address or telephone number specified in   its Administrative Questionnaire. -104- 

    

 

Notices sent by   hand or overnight courier service, or mailed by certified or registered mail,   shall be deemed to have been given when received; notices sent by telecopier   shall be deemed to have been given when sent (except that, if not given   during normal business hours for the recipient, shall be deemed to have been   given at the opening of business on the next business day for the recipient).   Notices delivered through electronic communications to the extent provided in   subsection (b) below shall be effective as provided in such subsection (b).   (b) Electronic Communications. Notices and other communications to the   Lenders hereunder may be delivered or furnished by electronic communication   (including e-mail and Internet or intranet websites) pursuant to procedures   approved by the Administrative Agent, provided that the foregoing shall not   apply to notices to any Lender pursuant to Article II if such Lender has   notified the Administrative Agent that it is incapable of receiving notices   under such Article by electronic communication. The Administrative Agent or   the Borrower may, in its discretion, agree to accept notices and other   communications to it hereunder by electronic communications pursuant to   procedures approved by it, provided that approval of such procedures may be   limited to particular notices or communications. Unless the Administrative Agent   otherwise prescribes, (i) notices and other communications sent to an e-mail   address shall be deemed received upon the sender’s receipt of an   acknowledgement from the intended recipient (such as by the “return receipt   requested” function, as available, return e-mail or other written   acknowledgement), provided that if such notice or other communication is not   sent during the normal business hours of the recipient, such notice or   communication shall be deemed to have been sent at the opening of business on   the next business day for the recipient, and (ii) notices or communications   posted to an Internet or intranet website shall be deemed received upon the   deemed receipt by the intended recipient at its e-mail address as described   in the foregoing clause (i) of notification that such notice or communication   is available and identifying the website address therefor. (c) The Platform.   THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT PARTIES (AS   DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER   MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY   FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY OF ANY   KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF   MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT OF THIRD   PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY   AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no   event shall the Administrative Agent or any of its Related Parties   (collectively, the “Agent Parties”) have any liability to Holdings or any of   its Subsidiaries, any Lender or any other Person for losses, claims, damages,   liabilities or expenses of any kind (whether in tort, contract or otherwise)   arising out of the Borrower’s or the Administrative Agent’s transmission of   Borrower Materials through the Internet, except to the extent that such   losses, claims, damages, liabilities or expenses are determined by a court of   competent jurisdiction by a final and nonappealable judgment to have resulted   from the gross negligence or willful misconduct of such Agent Party;   provided, however, that in no event shall any Agent Party have any liability   to Holdings or any of its Subsidiaries, any Lender or any other Person for   indirect, special, incidental, consequential or punitive damages (as opposed   to direct or actual damages). (d) Change of Address, Etc. Each of Holdings,   the Borrower, any other Loan Party, and the Administrative Agent may change   its address, telecopier or telephone number for notices and other   communications hereunder by notice to the other parties hereto. Each other   Lender may change its address, telecopier or telephone number for notices and   other communications hereunder by notice to the -105- 

    

 

Borrower and   the Administrative Agent. In addition, each Lender agrees to notify the   Administrative Agent from time to time to ensure that the Administrative   Agent has on record (i) an effective address, contact name, telephone number,   telecopier number and electronic mail address to which notices and other   communications may be sent and (ii) accurate wire instructions for such   Lender. Furthermore, each Public Lender agrees to cause at least one   individual at or on behalf of such Public Lender to at all times have   selected the “Private Side Information” or similar designation on the content   declaration screen of the Platform in order to enable such Public Lender or   its delegate, in accordance with such Public Lender’s compliance procedures   and applicable Law, including United States Federal and state securities   Laws, to make reference to Borrower Materials that are not made available   through the “Public Side Information” portion of the Platform and that may   contain material non-public information with respect to the Borrower or its   securities for purposes of United States Federal or state securities laws.   (e) Reliance by Administrative Agent, the Collateral Agent and Lenders. The   Administrative Agent, the Collateral Agent and the Lenders shall be entitled   to rely and act upon any notices (including telephonic Committed Loan Notices   and Conversion/Continuation Notices) purportedly given by or on behalf of the   Borrower even if (i) such notices were not made in a manner specified herein,   were incomplete or were not preceded or followed by any other form of notice   specified herein, or (ii) the terms thereof, as understood by the recipient,   varied from any confirmation thereof. The Borrower shall indemnify the   Administrative Agent, the Collateral Agent, each Lender and the Related   Parties of each of them from all losses, costs, expenses and liabilities   resulting from the reliance by such Person on each notice purportedly given   by or on behalf of the Borrower. All telephonic notices to and other telephonic   communications with the Administrative Agent may be recorded by the   Administrative Agent, and each of the parties hereto hereby consents to such   recording. 11.03No Waiver; Cumulative Remedies. No failure by any Lender, the   Administrative Agent or the Collateral Agent to exercise, and no delay by any   such Person in exercising, any right, remedy, power or privilege hereunder or   under any other Loan Document shall operate as a waiver thereof; nor shall   any single or partial exercise of any right, remedy, power or privilege   hereunder preclude any other or further exercise thereof or the exercise of   any other right, remedy, power or privilege. The rights, remedies, powers and   privileges herein provided, and provided under each other Loan Document, are cumulative   and not exclusive of any rights, remedies, powers and privileges provided by   law. 11.04Expenses; Indemnity; Damage Waiver. (a) Costs and Expenses. The   Loan Parties shall pay all Credit Party Expenses within ten (10) Business   Days after receipt of an invoice therefor. (b) Indemnification by the Loan   Parties. The Loan Parties shall indemnify the Administrative Agent (and any   sub-agent thereof), the Collateral Agent, the Arrangers, the Co-Documentation   Agents, the joint bookrunning managers, 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 in reasonable detail fees, charges and   disbursements of one counsel to all Indemnitees taken as a whole and, if   reasonably necessary, a single local counsel for all Indemnitees taken as a   whole in each relevant jurisdiction material to the interests of the Lenders,   in each case, selected by the Administrative Agent and solely in the case of   an actual conflict of interest between Indemnitees where the Indemnitees   affected by such conflict inform the Borrower of such conflict, one   additional counsel in each relevant jurisdiction material to the interest of   the Lenders to each group of affected Indemnitees taken as a whole) incurred   by any Indemnitee or asserted against any Indemnitee by -106- 

    

 

any third party   or by the Borrower or any other Loan Party arising out of, in connection   with, or as a result of (i) the preparation, execution, delivery or   administration of this Agreement, any other Loan Document or any agreement or   instrument contemplated hereby or thereby or any amendment or waiver with   respect hereto or thereto, the performance by the parties hereto of their   respective obligations hereunder or thereunder or the consummation of the   transactions contemplated hereby or thereby, or, in the case of the   Administrative Agent (and any sub-agent thereof) and its Related Parties   only, the administration of this Agreement and the other Loan Documents, (ii)   any Loan or letter of credit or the use or proposed use of the proceeds   therefrom, (iii) any actual or alleged presence or Release or threat of   Release of Hazardous Materials, at, under, on or from any property or   facility currently or formerly owned, leased or operated by Holdings or any   of its Subsidiaries, or any Environmental Liability related in any way to   Holdings or any of its Subsidiaries, or (iv) any actual or prospective claim,   litigation, investigation or proceeding relating to any of the foregoing,   whether based on contract, tort or any other theory, whether brought by a   third party or by the Borrower or any other Loan Party, 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 or willful misconduct of such Indemnitee   (y) result from a claim brought by the Borrower or any other Loan Party   against an Indemnitee for breach in bad faith of such Indemnitee’s   obligations hereunder or under any other Loan Document, if the Borrower or   such Loan Party has obtained a final and nonappealable judgment in its favor   on such claim as determined by a court of competent jurisdiction, or (z) result   from the presence, Release or threat of Release of Hazardous Materials or   violations of Environmental Laws first occurring or first existing after   completion of the foreclosure upon the Collateral, granting of a deed-in-lieu   of foreclosure with respect to the Collateral or similar transfer of title or   possession of the Collateral, unless such presence, release or violation is   actually caused by any Loan Party or any Subsidiary thereof. This Section   11.04(b) shall not apply with respect to Taxes other than any Taxes that   represent losses, claims or damages arising from any non-Tax claim. (c)   Reimbursement by Lenders. To the extent that the Borrower for any reason   fails to pay any amount required under subsection (a) or (b) of this Section   11.04 to be paid by it to the Agents (or any sub-agent thereof), or any   Related Party of any of the foregoing, each Lender severally agrees to pay to   the Administrative Agent (or any such sub-agent), the Collateral Agent, or   such Related Party, as the case may be, such Lender’s share (based on the   amount of Loans held by each Lender at the time that the applicable   unreimbursed expense or indemnity payment is sought or if the Loans have been   repaid in full, based on the amount of Loans held by such Lender immediately   prior to such repayment) of such unpaid amount, provided that the   unreimbursed expense or indemnified loss, claim, damage, liability or related   expense, as the case may be, was incurred by or asserted against the   Administrative Agent (or any such sub-agent) or the Collateral Agent, in its   capacity as such, or against any Related Party of any of the foregoing acting   for the Administrative Agent (or any such sub-agent) or the Collateral Agent   in connection with such capacity. The obligations of the Lenders under this   subsection (c) are subject to the provisions of Section 2.10(d). (d) Waiver   of Consequential Damages, Etc. To the fullest extent permitted by applicable   law, the Loan Parties shall not assert, and hereby waive, any claim against   any Indemnitee, on any theory of liability, for special, indirect,   consequential or punitive damages (as opposed to direct or actual damages)   arising out of, in connection with, or as a result of, this Agreement, any   other Loan Document or any agreement or instrument contemplated hereby, the   transactions contemplated hereby or thereby, any Loan or the use of the   proceeds thereof. No Indemnitee referred to in subsection (b) above shall be   liable for any damages arising from the use by unintended recipients of any   information or other materials distributed to such unintended recipients by   such Indemnitee through telecommunications, -107- 

    

 

electronic or   other information transmission systems in connection with this Agreement or   the other Loan Documents or the transactions contemplated hereby or thereby   other than for direct or actual damages resulting from the gross negligence   or willful misconduct of such Indemnitee as determined by a final and   nonappealable judgment of a court of competent jurisdiction. (e) Payments.   All amounts due under this Section 11.04 shall be payable not later than ten   Business Days after receipt of an invoice or demand therefor. (f) Survival.   The agreements in this Section 11.04 shall survive the resignation of the   Agents, the replacement of any Lender, the termination of the Aggregate   Commitments and the repayment, satisfaction or discharge of all the other   Obligations. 11.05Payments Set Aside. To the extent that any payment by or on   behalf of any of the Loan Parties is made to the Administrative Agent or any   Lender, or the Administrative Agent or any Lender exercises its right of   setoff, and such payment or the proceeds of such setoff or any part thereof   is subsequently invalidated, declared to be fraudulent or preferential, set   aside or required (including pursuant to any settlement entered into by the   Administrative Agent such Lender in its discretion) to be repaid to a   trustee, receiver or any other party, in connection with any proceeding under   any Debtor Relief Law or otherwise, then (a) to the extent of such recovery,   the obligation or part thereof originally intended to be satisfied shall be   revived and continued in full force and effect as if such payment had not   been made or such setoff had not occurred, and (b) each Lender severally   agrees to pay to the Administrative Agent upon demand its applicable share   (without duplication) of any amount so recovered from or repaid by the   Administrative Agent, plus interest thereon from the date of such demand to   the date such payment is made at a rate per annum equal to the Federal Funds   Effective Rate from time to time in effect. The obligations of the Lenders   under clause (b) of the preceding sentence shall survive the payment in full   of the Obligations and the termination of this Agreement. 11.06Successors and   Assigns. (a) Successors and Assigns Generally. The provisions of this   Agreement shall be binding upon and inure to the benefit of the parties   hereto and their respective successors and assigns permitted hereby, except   that neither the Borrower nor any other Loan Party may assign or otherwise   transfer any of its rights or obligations hereunder without the prior written   consent of the Administrative Agent and each Lender and no Lender may assign   or otherwise transfer any of its rights or obligations hereunder except (i)   to an assignee in accordance with the provisions of Section 11.06(b), (ii) by   way of participation in accordance with the provisions of Section 11.06(d),   or (iii) by way of pledge or assignment of a security interest subject to the   restrictions of Section 11.06(f) (and any other attempted assignment or   transfer by any party hereto shall be null and void). Nothing in this   Agreement, expressed or implied, shall be construed to confer upon any Person   (other than the parties hereto, their respective successors and assigns   permitted hereby, Participants to the extent provided in subsection (d) of   this Section 11.06 and, to the extent expressly contemplated hereby, the   Related Parties of each of the Administrative Agent, and the Lenders) any   legal or equitable right, remedy or claim under or by reason of this   Agreement. (b) Assignments by Lenders. Any Lender may at any time assign to   one or more Eligible Assignees all or a portion of its rights and obligations   under this Agreement (including all or a portion of its Commitment(s) and the   Loans at the time owing to it); provided that any such assignment shall be subject   to the following conditions: -108- 

    

 

(i) Minimum   Amounts. (A) in the case of an assignment of the entire remaining amount of   the assigning Lender’s Commitment and the Loans at the time owing to it or in   the case of an assignment to a Lender, an Affiliate of a Lender or an   Approved Fund, no minimum amount need be assigned; and (B) in any case not   described in subsection (b)(i)(A) of this Section 11.06, the aggregate amount   of the Commitment (which for this purpose includes Loans outstanding   thereunder) or, if the Commitment is not then in effect, the principal   outstanding balance of the Loans of the assigning Lender subject to each such   assignment, determined as of the date the Assignment and Assumption with   respect to such assignment is delivered to the Administrative Agent or, if   “Trade Date” is specified in the Assignment and Assumption, as of the Trade   Date, shall not be less than $1.0 million500,000 (and in integral multiples   of $1.0 million500,000 in excess thereof) and after giving effect thereto,   the assigning Lender shall hold a Commitment of at least $1.0 million,   unless, in each case, each of the Administrative Agent and, so long as no   Event of Default has occurred and is continuing, the Borrower otherwise   consents (each such consent not to be unreasonably withheld or delayed);   provided, however, that concurrent assignments to members of an Assignee   Group and concurrent assignments from members of an Assignee Group to a   single Eligible Assignee (or to an Eligible Assignee and members of its   Assignee Group) will be treated as a single assignment for purposes of   determining whether such minimum amount has been met; (ii) Proportionate   Amounts. Each partial assignment shall be made as an assignment of a   proportionate part of all the assigning Lender’s rights and obligations under   this Agreement with respect to the Loans or the Commitment assigned; (iii)   Required Consents. No consent shall be required for any assignment except to   the extent required by subsection (b)(i)(B) of this Section 11.06 and, in   addition: (A) the consent of the Borrower (such consent not to be   unreasonably withheld or delayed) shall be required unless (1) an Event of   Default has occurred and is continuing at the time of such assignment or (2)   such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund;   provided that the Borrower shall be deemed to have consented to any   assignment if it does not respond to a written request for consent within 10   Business Days; and (B) the consent of the Administrative Agent (such consent   not to be unreasonably withheld or delayed) shall be required for assignments   in respect of (i) any Commitment if such assignment is to a Person that is   not a Lender with a Commitment, an Affiliate of Lender or an Approved Fund   with respect to such Lender or (ii) any Loan to a Person that is not a   Lender, an Affiliate of a Lender or an Approved Fund (except that the   approval of the Administrative Agent shall not be required with respect to   one or more assignments of all or any of the Loans to any other Sponsor   Affiliated Lender); (iv) Assignment and Assumption. The parties to each   assignment shall execute and deliver to the Administrative Agent an   Assignment and Assumption, together with a processing and recordation fee in   the amount of $3,500; provided, however, that the Administrative Agent may,   in its sole discretion, elect to waive such processing and recordation fee in   the case of any -109- 

    

 

assignment. The   assignee, if it shall not be a Lender, shall deliver to the Administrative   Agent an Administrative Questionnaire and any Tax forms required by Section   3.01(e) or (f); (v) No Assignments to Certain Persons. No such assignment   shall be made (A) to Holdings or the Borrower except as permitted under Section   2.03(d) or (B) subject to subsection (h) below, to any of the Sponsor or its   Affiliates; and (vi)No Assignment to Natural Persons. No such assignment   shall be made to a natural person. Subject to acceptance and recording   thereof by the Administrative Agent pursuant to subsection (c) of this   Section 11.06, from and after the effective date specified in each Assignment   and Assumption, the assignee thereunder shall be a party to this Agreement   and, to the extent of the interest assigned by such Assignment and   Assumption, have the rights and obligations of a Lender under this Agreement,   and the assigning Lender thereunder shall, to the extent of the interest   assigned by such Assignment and Assumption, be released from its obligations   under this Agreement (and, in the case of an Assignment and Assumption   covering all of the assigning Lender’s rights and obligations under this   Agreement, such Lender shall cease to be a party hereto but shall continue to   be entitled to the benefits of Sections 3.01, 3.04, 3.05 and 11.04 with   respect to facts and circumstances occurring prior to the effective date of   such assignment). Upon request, the Borrower (at its expense) shall execute   and deliver a Note to the assignee Lender. Any assignment or transfer by a   Lender of rights or obligations under this Agreement that does not comply   with this subsection shall be treated for purposes of this Agreement as a   sale by such Lender of a participation in such rights and obligations in   accordance with Section 11.06(d). (c) Register. The Administrative Agent,   acting solely for this purpose as an agent of the Borrower, shall maintain at   the Administrative Agent’s Office 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 Commitments of, and principal and interest amounts of   the Loans owing to, each Lender pursuant to the terms hereof from time to   time (the “Register”). The entries in the Register shall be conclusive, and   the Borrower, the Administrative Agent and the Lenders shall treat each   Person whose name is recorded in the Register pursuant to the terms hereof as   a Lender hereunder for all purposes of this Agreement, notwithstanding notice   to the contrary. The Register shall be available for inspection by the   Borrower and any Lender, at any reasonable time and from time to time upon   reasonable prior notice. (d) Participations. Any Lender may at any time,   without the consent of, or notice to, the Borrower or the Administrative   Agent, sell participations to any Person (other than a natural person or the   Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a   “Participant”) in all or a portion of such Lender’s rights and/or obligations   under this Agreement (including all or a portion of its Commitment and/or the   Loans owing to it); provided that (i) such Lender’s obligations under this   Agreement shall remain unchanged, including, for avoidance of doubt, any   indemnification obligation with respect to the participated interest, (ii)   such Lender shall remain solely responsible to the other parties hereto for   the performance of such obligations and (iii) the Borrower, the   Administrative Agent and the 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, waiver   or other modification described in clauses (a), (b), (c), -110- 

    

 

(f) and (g) in   the first proviso to Section 11.01 that affects such Participant. Subject to   subsection (e) of this Section 11.06, the Borrower agrees that each   Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05   to the same extent as if it were a Lender and had acquired its interest by   assignment pursuant to Section 11.06(b), provided such Participant agrees to   be subject to Section 3.01 as though it were a Lender. To the extent   permitted by law, each Participant also shall be entitled to the benefits of   Section 11.08 as though it were a Lender, provided such Participant agrees to   be subject to Section 2.11 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 Borrower, maintain a register on which it enters the name and   address of each Participant and the principal and interest amount of each   Participant’s interest in the Loans held by it (the “Participant Register”);   provided that no Lender shall have any obligation to disclose all or any   portion of the Participant Register to any Person (including the identity of   any Participant or any information relating to a Participant’s interest in   any Commitments, Loans or other obligations under any Loan Document) except   to the extent that such disclosure is necessary to establish that any 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. (e) Limitations   upon Participant Rights. A Participant shall not be entitled to receive any   greater payment under Section 3.01 or 3.04 than the applicable Lender would   have been entitled to receive with respect to the participation sold to such   Participant except to the extent that such entitlement to any greater payment   results from any Change in Law after the Participant becomes a Participant or   the sale of the participation to such Participant is made with the Borrower’s   prior written consent. (f) Certain Pledges. Any Lender may at any time pledge   or assign a security interest in all or any portion of its rights under this   Agreement (including under its Note, if any) to secure obligations of such   Lender, including any pledge or assignment to secure obligations to a Federal   Reserve Bank or any central bank having jurisdiction over such Lender;   provided that no such pledge or assignment shall release such Lender from any   of its obligations hereunder or substitute any such pledgee or assignee for   such Lender as a party hereto. (g) Electronic Execution of Assignments. The   words “execution,” “signed,” “signature,” and words of like import in any   Assignment and Assumption shall be deemed to include electronic signatures 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 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. (h) Any Lender may, at any time,   assign all or a portion of its rights and obligations under this Agreement to   a Person who is or will become, after such assignment, an Sponsor Affiliated   Lender subject to the following limitations: (i) Sponsor Affiliated Lenders   will not receive information provided solely to Lenders by the Administrative   Agent or any Lender and will not be permitted to attend or participate in   meetings attended solely by the Lenders and the Administrative Agent, other   than -111- 

    

 

the right to   receive notices of prepayments and other administrative notices in respect of   its Loans or Commitments required to be delivered to Lenders pursuant to   Article II; (ii) each Sponsor Affiliated Lender that (A) purchases any Loans   pursuant to this clause (h) shall represent and warrant to the seller and (B)   sells any Loan hereunder shall represent and warrant to the buyer, in each   case, that it does not possess non-public information with respect to   Holdings, the Borrower and their respective Subsidiaries that has not been   disclosed to the Lenders generally (other than Public Lenders) and that would   reasonably be expected to be material to a Lender’s decision to purchase or   sell, as applicable; and (iii) the aggregate principal amount of Loans held   at any one time by Sponsor Affiliated Lenders (measured immediately after   giving effect to any such acquisition of Loans) may not exceed 20% of the   principal amount of all Loans at such time outstanding. (i) Notwithstanding   anything in Section 11.01 or the definition of “Required Lenders” to the   contrary, for purposes of determining whether the Required Lenders have (i)   consented (or not consented) to any amendment, modification, waiver, consent   or other action with respect to any of the terms of any Loan Document or any   departure by any Loan Party therefrom, or subject to Section 11.06(j), any   plan of reorganization pursuant to the U.S. Bankruptcy Code, (ii) otherwise   acted on any matter related to any Loan Document, or (iii) directed or   required the Administrative Agent or any Lender to undertake any action (or   refrain from taking any action) with respect to or under any Loan Document,   no Sponsor Affiliated Lender shall have any right to consent (or not   consent), otherwise act or direct or require the Administrative Agent or any   Lender to take (or refrain from taking) any such action and: (A) all Loans   held by any Sponsor Affiliated Lenders shall be deemed to be not outstanding   for all purposes of calculating whether the Required Lenders have taken any   actions; and (B) all Loans held by Sponsor Affiliated Lenders shall be deemed   to be not outstanding for all purposes of calculating whether all Lenders   have taken any action unless the action in question affects such Sponsor   Affiliated Lender in a disproportionately adverse manner than its effect on   other Lenders. (j) Notwithstanding anything in this Agreement or the other   Loan Documents to the contrary, each Sponsor Affiliated Lender hereby agrees   that, if a proceeding under any Debtor Relief Law shall be commenced by or   against the Borrower or any other Loan Party at a time when such Lender is an   Sponsor Affiliated Lender, such Sponsor Affiliated Lender irrevocably   authorizes and empowers the Administrative Agent to vote on behalf of such Sponsor   Affiliated Lender with respect to the Loans held by such Sponsor Affiliated   Lender in any manner in the Administrative Agent’s sole discretion, unless   the Administrative Agent instructs such Sponsor Affiliated Lender to vote, in   which case such Sponsor Affiliated Lender shall vote with respect to the   Loans held by it as the Administrative Agent directs; provided that such   Sponsor Affiliated Lender shall be entitled to vote in accordance with its   sole discretion (and not in accordance with the direction of the   Administrative Agent) in connection with any plan of reorganization to the   extent any such plan of reorganization proposes to treat any Obligations held   by such Sponsor Affiliated Lender in a manner that is less favorable in any   material respect to such Sponsor Affiliated Lender than the proposed   treatment of similar Obligations held by Lenders that are not Affiliates of   the Borrower. -112- 

    

 

(k) Any   assignment or transfer by a Lender of rights or obligations under this Agreement   that does not comply with this Section 11.06 , whether or not such assignment   or transfer is reflected in the Register, 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 (d) of this Section. 11.07Treatment   of Certain Information; Confidentiality. Each of the Administrative Agent and   the Lenders agrees to maintain the confidentiality of the Information (as   defined below), except that Information may be disclosed (a) to its   Affiliates and to its and its Affiliates’ respective partners, directors,   officers, employees, agents, advisors and representatives (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 it (including any   self-regulatory authority, such as the National Association of Insurance   Commissioners), (c) to the extent required by applicable laws or regulations   or by any subpoena or similar legal process, (d) to any other party hereto,   (e) in connection with the exercise of any remedies hereunder or under any   other Loan Document or any action or proceeding relating to this Agreement or   any other Loan Document or the enforcement of rights hereunder or thereunder,   (f) subject to an agreement containing provisions substantially the same as   those of this Section 11.07, 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 (ii) any actual or prospective counterparty (or its   advisors) to any swap or derivative transaction relating to the Borrower and   its obligations, or (iii) any funding or financing source of any Lender, (g)   with the consent of the Borrower or (h) to the extent such Information (i)   becomes publicly available other than as a result of a breach of this Section   11.07 or (ii) becomes available to the Administrative Agent, any Lender, or   any of their respective Affiliates on a non-confidential basis from a source   other than the Borrower. For purposes of this Section 11.07, “Information”   means all information received from any Loan Party or any Subsidiary thereof   relating to any Loan Party or any Subsidiary thereof or their respective   businesses, operations, assets and related matters, other than any such   information that is available to the Administrative Agent, any Lender on a non-confidential   basis prior to disclosure by any Loan Party or any Subsidiary thereof,   provided that, in the case of information received from a Loan Party or any   such Subsidiary after the date hereof, such information is clearly identified   at the time of delivery as confidential. Any Person required to maintain the   confidentiality of Information as provided in this Section 11.07 shall be   considered to have complied with its obligation to do so if such Person has   exercised the same degree of care to maintain the confidentiality of such   Information as such Person would accord to its own confidential information.   Each of the Administrative Agent and the Lenders acknowledges that (a) the   Information may include material non-public information concerning Holdings or   a Subsidiary, as the case may be, (b) it has developed compliance procedures   regarding the use of material non-public information and (c) it will handle   such material non-public information in accordance with applicable Law,   including Federal and state securities Laws. 11.08Right of Setoff. If an   Event of Default shall have occurred and be continuing, each Credit Party and   each of its respective Affiliates is hereby authorized at any time and from   time to time, to the fullest extent permitted by applicable law, to setoff   and apply any and all deposits (general or special, time or demand,   provisional or final, in whatever currency) at any time held and other   obligations (in whatever currency) at any time owing by such Credit Party or   any such Affiliate to or for the credit or the account of the Borrower or any   other Loan Party against any and all of the obligations of the Borrower or   such Loan Party now or hereafter existing under this Agreement or any other   Loan Document to such Credit Party, irrespective of whether or not such   Credit Party shall have made any -113- 

    

 

demand under   this Agreement or any other Loan Document and although such obligations of   the Borrower or such Loan Party may be contingent or unmatured or are owed to   a branch or office of such Credit Party different from the branch or office   holding such deposit or obligated on such indebtedness. The rights of each   Credit Party and their respective Affiliates under this Section 11.08 are in   addition to other rights and remedies (including other rights of setoff) that   such Credit Party or their respective Affiliates may have. Each Credit Party   agrees to notify the Borrower and the Administrative Agent promptly after any   such setoff and application, provided that the failure to give such notice   shall not affect the validity of such setoff and application. 11.09Interest   Rate Limitation. Notwithstanding anything to the contrary contained in any   Loan Document, the interest paid or agreed to be paid under the Loan   Documents shall not exceed the maximum rate of non-usurious interest   permitted by applicable Law (the “Maximum Rate”). If the Administrative Agent   or any Lender shall receive interest in an amount that exceeds the Maximum   Rate, the excess interest shall be applied to the principal of the Loans or,   if it exceeds such unpaid principal, refunded to the Borrower. In determining   whether the interest contracted for, charged, or received by the   Administrative Agent or a Lender exceeds the Maximum Rate, such Person may,   to the extent permitted by applicable Law, (a) characterize any payment that   is not principal as an expense, fee, or premium rather than interest, (b)   exclude voluntary prepayments and the effects thereof, and (c) amortize,   prorate, allocate, and spread in equal or unequal parts the total amount of   interest throughout the contemplated term of the Obligations hereunder.   11.10Counterparts; Integration; Effectiveness. This Agreement may be executed   in counterparts (and by different parties hereto in different counterparts),   each of which shall constitute an original, but all of which when taken   together shall constitute a single contract. This Agreement and the other   Loan Documents constitute the entire contract among the parties relating to   the subject matter hereof and supersede any and all previous agreements and   understandings, oral or written, relating to the subject matter hereof.   Except as provided in Section 4.01, this Agreement shall become effective   when it shall have been executed by the Administrative Agent and when the   Administrative Agent shall have received counterparts hereof that, when taken   together, bear the signatures of each of the other parties hereto. Delivery   of an executed counterpart of a signature page of this Agreement by telecopy   shall be effective as delivery of a manually executed counterpart of this   Agreement. 11.11Survival of Representations and Warranties. All   representations and warranties made hereunder and in any other Loan Document   or other document delivered pursuant hereto or thereto or in connection   herewith or therewith shall survive the execution and delivery hereof and   thereof. Such representations and warranties have been or will be relied upon   by the Administrative Agent and each Lender, regardless of any investigation   made by the Administrative Agent or any Lender or on their behalf and   notwithstanding that the Administrative Agent or any Lender may have had   notice or knowledge of any Default at the time of any Loan, and shall   continue in full force and effect as long as any Loan or other Obligation   (other than any indemnity obligation for unasserted claims that by its terms   survives the termination of this Agreement) shall remain unpaid or   unsatisfied. 11.12Severability. If any provision of this Agreement or the   other Loan Documents is held to be illegal, invalid or unenforceable, (a) the   legality, validity and enforceability of the remaining provisions of this   Agreement and the other Loan Documents shall not be affected or impaired   thereby and (b) the parties shall endeavor in good faith negotiations to   replace the illegal, invalid or unenforceable provisions with valid   provisions the economic effect of which comes as close as possible to that of   the illegal, invalid or unenforceable provisions. The invalidity of a   provision in a particular jurisdiction shall not invalidate or render   unenforceable such provision in any other jurisdiction. -114- 

    

 

 

11.13Replacement   of Lenders. (A) If any Lender requests compensation under Section 3.04, or if   the Borrower is required to pay any additional amount to any Lender or any   Governmental Authority for the account of any Lender pursuant to Section   3.01, or (B) if any Lender is a Defaulting Lender, or (C) if in connection   with a proposed amendment, modification, waiver, or consent with respect to   any of the provisions hereof as contemplated by Section 11.01, the consent of   the Required Lenders shall have been obtained but the consent of one or more   of such other Lenders whose consent is required shall not have been obtained,   or (D) if any other circumstance exists hereunder that gives the Borrower the   right to replace a Lender as a party hereto, then the Borrower may, at its   sole expense and effort, upon notice to such Lender and the Administrative   Agent, require such Lender to assign and delegate, without recourse (in   accordance with and subject to the restrictions contained in, and consents   required by, Section 11.06), all of its interests, rights and obligations   under this Agreement and the related Loan Documents to an assignee that shall   assume such obligations (which assignee may be another Lender, if a Lender   accepts such assignment), provided that: (a) the Borrower shall have paid to   the Administrative Agent the assignment fee specified in Section 11.06(b);   (b) such Lender shall have received payment of an amount equal to the   outstanding principal of its Loans, accrued interest thereon and all other   amounts payable to it hereunder and under the other Loan Documents (including   any amounts under Section 3.05) from the assignee (to the extent of such   outstanding principal and accrued interest and fees) or the Borrower (in the   case of all other amounts) and, in the case of any amendment that   constitutes, a Repricing Transaction with respect to the Term B-1 Loans prior   to the sixtwelve month anniversary of the Amendment No. 24 Effective Date,   the fee that would have been payable to such Lender upon the effectiveness of   such amendment had such Lender held such Term Loans on the date of   effectiveness of such amendment; (c) in the case of any such assignment   resulting from a claim for compensation under Section 3.04 or payments   required to be made pursuant to Section 3.01, such assignment will result in   a reduction in such compensation or payments thereafter; and (d) such   assignment does not conflict with applicable Laws. A Lender shall not be   required to make any such assignment or delegation if, prior thereto, as a result   of a waiver by such Lender or otherwise, the circumstances entitling the   Borrower to require such assignment and delegation cease to apply.   11.14Governing Law; Jurisdiction; Etc. (a) GOVERNING LAW. THIS AGREEMENT   SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE   OF NEW YORK. (b) SUBMISSION TO JURISDICTION. EACH OF THE BORROWER AND EACH   OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS   PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW   YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF   THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF,   IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR   ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT,   AND EACH OF THE PARTIES -115- 

    

 

HERETO   IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH   ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT   OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.   EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR   PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY   SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS   AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT ANY   CREDIT PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO   THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ANY OTHER   LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. (c) WAIVER OF   VENUE. EACH OF THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND   UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,   ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY   ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY   OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS   SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST   EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO   THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. (d) SERVICE   OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN   THE MANNER PROVIDED FOR NOTICES IN SECTION 11.02. NOTHING IN THIS AGREEMENT   WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER   MANNER PERMITTED BY APPLICABLE LAW. 11.15WAIVER OF JURY TRIAL. EACH PARTY   HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY   APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL   PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS   AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY   OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY   HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER   PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD   NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)   ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER   INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE   MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 11.16No 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), the Borrower and   Holdings each acknowledge and agree, and acknowledge their respective   Affiliates’ understanding, that: (i) the arranging and other services   regarding this Agreement provided by the Administrative Agent, the Arrangers   and the Lenders are arm’s-length commercial transactions between the   Borrower, Holdings and their respective Affiliates, on the one hand, and the   Administrative Agent, the Arrangers and the Lenders, on the other hand, (ii)   each of the Borrower and Holdings and each other Loan Party has consulted its   own legal, accounting, -116- 

    

 

regulatory and   tax advisors to the extent it has deemed appropriate, and (iii) the Borrower   and Holdings and each other 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; (iv) the Administrative   Agent, each Arranger, the Co-Documentation Agents 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 the Borrower, Holdings or any of their   respective Affiliates, or any other Person and (v) neither the Administrative   Agent nor any Arranger or Lender has any obligation to the Borrower, Holdings   or any of their respective Affiliates with respect to the transactions   contemplated hereby except those obligations expressly set forth herein and   in the other Loan Documents; and (vi) the Administrative Agent, the Arrangers   and the Lenders and their respective Affiliates may be engaged in a broad   range of transactions that involve interests that differ from those of the   Borrower, Holdings and their respective Affiliates, and neither the Administrative   Agent nor the Arrangers or Lenders have any obligation to disclose any of   such interests to the Borrower, Holdings and their respective Affiliates. To   the fullest extent permitted by law, each of the Borrower and Holdings hereby   waives and releases any claims that it may have against the Administrative   Agent, the Arrangers and the Lenders with respect to any breach or alleged   breach of agency or fiduciary duty in connection with any aspect of any   transaction contemplated hereby. 11.17USA PATRIOT Act Notice. Each Lender   that is subject to the USA PATRIOT Act (as hereinafter defined) and the   Administrative Agent (for itself and not on behalf of any Lender) hereby   notifies the Borrower that pursuant to the requirements of the USA PATRIOT   Act, it is required to obtain, verify and record information that identifies   each Loan Party, which information includes the name and address of each Loan   Party and other information that will allow such Lender or the Administrative   Agent, as applicable, to identify each Loan Party in accordance with the USA   PATRIOT Act. No part of the proceeds of the Loans will be used by the Loan   Parties, directly or indirectly, for any payments to any governmental   official or employee, political party, official of a political party,   candidate for political office, or anyone else acting in an official   capacity, in order to obtain, retain or direct business or obtain any   improper advantage, in violation of the United States Foreign Corrupt   Practices Act of 1977, as amended. 11.18No Strict Construction. The parties   hereto have participated jointly in the negotiation and drafting of this   Agreement. In the event an ambiguity or question of intent or interpretation   arises, this Agreement shall be construed as if drafted jointly by the parties   hereto and no presumption or burden of proof shall arise favoring or   disfavoring any party by virtue of the authorship of any provisions of this   Agreement. 11.19Attachments. The exhibits, schedules and annexes attached to   this Agreement are incorporated herein and shall be considered a part of this   Agreement for the purposes stated herein, except that in the event of any   conflict between any of the provisions of such exhibits and the provisions of   this Agreement, the provisions of this Agreement shall prevail.   11.20Intercreditor Agreement. Notwithstanding anything herein to the   contrary, the lien and security interest granted to the Collateral Agent   pursuant to this Agreement or the other Loan Documents and the exercise of   any right or remedy by the Collateral Agent hereunder or under the other Loan   Documents are subject to the provisions of the Intercreditor Agreement. In   the event of any conflict between the terms of the Intercreditor Agreement   and this Agreement, the terms of the Intercreditor Agreement shall govern and   control. 11.21Acknowledgement and Consent to Bail-In of EEA Financial   Institutions. Notwithstanding anything to the contrary in any Loan Document   or in any other agreement, arrangement -117- 

    

 

or   understanding among any such parties, each party hereto acknowledges that any   liability of any EEA Financial Institution arising under any Loan Document   may be subject to the write-down and conversion powers of an EEA Resolution   Authority and agrees and consents to, and acknowledges and agrees to be bound   by: (a) the application of any Write-Down and Conversion Powers by an EEA   Resolution Authority to any such liabilities arising hereunder which may be   payable to it by any party hereto that is an EEA Financial Institution; and   (b) the effects of any Bail-In Action on any such liability, including, if   applicable: (i) a reduction in full or in part or cancellation of any such   liability; (ii) a conversion of all, or a portion of, such liability into   shares or other instruments of ownership in such EEA Financial Institution,   its parent entity, or a bridge institution that may be issued to it or   otherwise conferred on it, and that such shares or other instruments of   ownership will be accepted by it in lieu of any rights with respect to any   such liability under this Agreement or any other Loan Document; or (iii) the   variation of the terms of such liability in connection with the exercise of   the write-down and conversion powers of any EEA Resolution Authority. -118-Exhibit 10.2

 

Execution Version

 

AMENDMENT No. 4, dated as of August 18, 2017 (this “Amendment”), to the Credit Agreement dated as of April 6, 2012, among THE CONTAINER STORE, INC., a Texas corporation (the “Borrower”), the Guarantors party thereto, the several banks and other financial institutions or entities from time to time parties to the Credit Agreement (the “Lenders”), JPMORGAN CHASE BANK, N.A., as Administrative Agent (the “Administrative Agent”) and Collateral Agent, and the other parties thereto (as amended, restated, modified and supplemented from time to time, the “Credit Agreement”); capitalized terms used and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement, as amended hereby.

 

WHEREAS, the Borrower desires to amend the Credit Agreement to, among other things, extend the Initial Maturity Date, on the terms set forth herein; and

 

WHEREAS, Section 11.01 of the Credit Agreement provides that the relevant Loan Parties and the Lenders may amend the Credit Agreement and the other Loan Documents for certain purposes;

 

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

 

Section 1.                                           Amendments.  The Credit Agreement is, effective as of the Amendment No. 4 Effective Date (as defined below), hereby amended as follows:

 

(a)                                 Additional Definitions.  Section 1.01 of the Credit Agreement is hereby amended to add thereto in alphabetical order the following definitions which shall read in full as follows:

 

“Amendment No. 4” means Amendment No. 4 to this Agreement, dated as of August 18, 2017, by and among the Borrower, the Guarantors, the Administrative Agent, the Collateral Agent and the Lenders party thereto.

 

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

 

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

 

“EEA Financial Institution” means (a) any institution established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this

 

 

definition, or (c) any institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

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

 

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

 

“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.

 

“Federal Funds Effective Rate” means, for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions (as determined in such manner as the NYFRB shall set forth on its public website from time to time) and published on the next succeeding Business Day by the NYFRB as the federal funds effective rate, provided that, if the Federal Funds Effective Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.

 

“NYFRB” means the Federal Reserve Bank of New York.

 

“NYFRB Rate” means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day(or for any day that is not a Business Day, for the immediately preceding Business Day); provided that if none of such rates are published for any day that is a Business Day, the term “NYFRB Rate” means the rate for a federal funds transaction quoted at 11:00 a.m. on such day to the Administrative Agent from a Federal funds broker of recognized standing selected by it; provided, further, that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal funds and overnight Eurodollar borrowings by U.S.-managed banking offices of depository institutions, as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate (from and

 

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after such date as the NYFRB shall commence to publish such composite rate).

 

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

 

(b)                                 Amended Definitions.  The following definitions contained in Section 1.01 of the Credit Agreement are hereby amended and restated in their entirety to read in full as follows:

 

“Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day plus 1⁄2 of 1% and (c) the LIBO Rate for a one month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided that, for the avoidance of doubt, the LIBO Rate for any day shall be based on the Reuters Screen LIBOR01 Page (or on any successor or substitute page) at approximately 11:00 a.m. London time on such day (without any rounding).  Any change in the Base Rate due to a change in the Prime Rate, the NYFRB Rate or the LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the LIBO Rate, respectively.

 

“Defaulting Lender” means any Lender that (a) has failed, within one (1) Business Day of the date required to be funded or paid, to (i) fund any portion of its Loans, (ii) fund any portion of its participations in Letters of Credit or (iii) pay over to any Loan Party any other amount required to be paid by it hereunder; (b) has notified the Borrower or any Loan 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 or generally under other agreements in which it commits to extend credit; (c) has failed, within one (1) Business Day after request by the Administrative Agent or a Loan Party, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it will comply with its obligations to fund prospective Loans and participations in then outstanding Letters of Credit under this Agreement; provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon such Loan Party’s receipt of such certification in form and substance satisfactory to it and the Administrative Agent; or (d) has (or whose bank holding company has) (i) been placed into receivership, conservatorship or bankruptcy or (ii) become the subject

 

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of a Bail-In Action; provided that a Lender shall not become a Defaulting Lender solely as a result of the acquisition or maintenance of an ownership interest in such Lender or Person controlling such Lender or the exercise of control over a Lender or Person controlling such Lender by a Governmental Authority or an instrumentality thereof so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender upon delivery of written notice of such determination to the Borrower, each L/C Issuer, the Swing Line Lender and each Lender.

 

“Initial Maturity Date” means the earlier of (a) August 18, 2022 and (b) May 20, 2021 if any portion of the Term Obligations remains outstanding on such date which has not been refinanced with (i) Permitted Refinancing Indebtedness with a final maturity date that is no earlier than ninety (90) days after the date in clause (a) of this definition of “Initial Maturity Date” or (ii) Subordinated Indebtedness.

 

(c)                                  Deleted Definitions.  The definition of “Federal Funds Rate”  and “Public Market” contained in Section 1.01 of the Credit Agreement are hereby deleted from the Credit Agreement in their entirety.

 

(d)                                 Replacement of Defined Term.  Each reference to the term “Federal Funds Rate” appearing in Sections 2.03(c)(vi), 2.03(d)(ii), 2.04(c)(iii), 2.04(d)(ii), 2.12(b)(i), 2.12(b)(ii), 2.14(b) and 11.05 of the Credit Agreement is hereby replaced with the term “Federal Funds Effective Rate”.

 

(e)                                  Amendment to Section 2.03. Section 2.03(a) of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows:

 

(a)                                 The Letter of Credit Commitment.

 

(i)                                     Subject to the terms and conditions set forth herein, (A) in reliance upon the agreements of the Lenders set forth in this Section 2.03, (1) each L/C Issuer (I) to the extent the Outstanding Amount of the L/C Obligations shall not exceed $20,000,000, agrees to and (II) to the extent the Outstanding Amount of the L/C Obligations shall exceed $20,000,000, may, but shall have no obligation to, from time

 

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to time on any Business Day during the period from the Closing Date until the Letter of Credit Expiration Date, issue Letters of Credit for the account of the Borrower and the Subsidiary Guarantors, and to amend or extend Letters of Credit previously issued by it, in accordance with Section 2.03(b) below, and (2) each L/C Issuer agrees to honor drawings under such Letters of Credit; and (B) the Lenders severally agree to participate in Letters of Credit issued for the account of such Loan Parties and any drawings thereunder; provided, that, after giving effect to any L/C Credit Extension with respect to any Letter of Credit, (x) the Total Outstandings shall not exceed the lesser of the Aggregate Commitments or the Borrowing Base, (y) the aggregate Outstanding Amount of the Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Commitment, and (z) the Outstanding Amount of the L/C Obligations shall not exceed the Letter of Credit Sublimit.  Each request by the Borrower for the issuance or amendment of a Letter of Credit shall be deemed to be a representation by the Borrower that the L/C Credit Extension so requested complies with the conditions set forth in the proviso to the preceding sentence.  Within the foregoing limits, and subject to the terms and conditions hereof, the Borrower’s ability to obtain Letters of Credit shall be fully revolving, and accordingly the Borrower may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed.

 

(f)                                   Amendment to Section 2.04. Section 2.04(a) of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows:

 

(a)                                 The Swing Line.  Subject to the terms and conditions set forth herein, in reliance upon the agreements of the other Lenders set forth in this Section 2.04, the Swing Line Lender (I) to the extent the Outstanding Amount of the Swing Line Loans shall not exceed $10,000,000, agrees to and (II) to the extent the Outstanding Amount of the Swing Line Loans shall exceed $10,000,000, may elect, but shall have no obligation, to make loans (each such loan, a “Swing Line Loan”) to the Borrower from time to time on any Business Day during the Availability Period in an aggregate amount not to exceed at any time outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that such Swing Line Loans, when aggregated with the Applicable Percentage of the Outstanding Amount of Committed Loans and L/C Obligations of the Lender acting as Swing Line Lender, may exceed the amount of such Lender’s Commitment; provided, however, that after

 

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giving effect to any Swing Line Loan, (i) the Total Outstandings shall not exceed the lesser of (A) the Aggregate Commitments, or (B) the Borrowing Base, and (ii) the aggregate Outstanding Amount of the Committed Loans of any Lender at such time, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations at such time, plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans at such time shall not exceed such Lender’s Commitment, and provided, further, that the Borrower shall not use the proceeds of any Swing Line Loan to refinance any outstanding Swing Line Loan.  Within the foregoing limits, and subject to the other terms and conditions hereof, the Borrower may borrow under this Section 2.04, prepay under Section 2.05, and reborrow under this Section 2.04.  Each Swing Line Loan shall bear interest only at a rate based on the Base Rate.  Immediately upon the making of a Swing Line Loan, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a risk participation in such Swing Line Loan in an amount equal to the product of such Lender’s Applicable Percentage times the amount of such Swing Line Loan.

 

(g)                                  Amendment to Article XI. Article XI of the Credit Agreement is hereby amended by adding a new Section 11.21 immediately after Section 11.20 thereto, which such section shall read in its entirety as follows:

 

Section 11.21 Acknowledgement and Consent to Bail-In of EEA Financial Institutions.   Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)                                 the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)                                 the effects of any Bail-In Action on any such liability, including, if applicable:

 

(i)                                     a reduction in full or in part or cancellation of any such liability;

 

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(ii)                                  a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

 

(iii)                               the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

 

Section 2.                                           Representations and Warranties, No Default.  In order to induce each Lender to enter into this Amendment and to amend the Credit Agreement in the manner provided herein, each of the Loan Parties represents and warrants to each Lender that:

 

(a)                                 After giving effect to this Amendment, each of the representations and warranties in the Credit Agreement and in the other Loan Documents are true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof, except to the extent that any such representation or warranty expressly relates to an earlier date, in which case such representation or warranty shall be true and correct in all material respects as of such earlier date; and

 

(b)                                 At the time of and immediately after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing.

 

Section 3.                                           Effectiveness.  Section 1 of this Amendment shall become effective on the date (such date, if any, the “Amendment No. 4 Effective Date”) that the following conditions have been satisfied:

 

(a)                                 Counterparts.  The Administrative Agent shall have received executed signature pages hereto from the Borrower, the Guarantors and each Lender;

 

(b)                                 Lender Fees.  The Borrower shall pay to the Administrative Agent, for the account of each Lender in accordance with each Lender’s Applicable Percentage, a non-refundable upfront fee as separately agreed upon in a fee letter between the Borrower and the Administrative Agent;

 

(c)                                  Other Fees and Expenses.  The Borrower shall have paid, to the extent invoiced prior to the Amendment No. 4 Effective Date, all reasonable out-of-pocket expenses of the Administrative Agent in connection with this Amendment and the transaction contemplated hereby (including the reasonable fees and expenses of Vinson & Elkins L.L.P., counsel to the Administrative Agent);

 

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(d)                                 Officer’s Certificate. The Administrative Agent shall have received a certificate of a Responsible Officer of each Loan Party dated the Amendment No. 4 Effective Date (a) either (i) attaching Organization Documents for such Loan Party or (ii) certifying that the Organization Documents previously delivered to the Administrative Agent by such Loan Party have not been amended and are in full force and effect, (b) attaching the resolutions of such Loan Party’s board of managers, members or equivalent governing body, authorizing the execution, delivery and performance of this Amendment, and certifying that such resolutions are in full force and effect, (c) attaching an incumbency certificate evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Amendment, (d) certifying that after giving effect to this Amendment, each of the representations and warranties in the Credit Agreement and in the other Loan Documents are true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof, except to the extent that any such representation or warranty expressly relates to an earlier date, in which case such representation or warranty shall be true and correct in all material respects as of such earlier date, (e) certifying that at the time of and immediately after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing and (d)(i) certifying that the Borrower is concurrently consummating that certain Amendment No. 4 to the Term Loan Credit Agreement (the “Term Loan Amendment”) and (ii) attaching a fully-executed copy of the Term Loan Amendment;

 

(e)                                  Good Standing Certificates. The Administrative Agent has received a good standing or active status certificate of each Loan Party in its jurisdiction of incorporation or organization; and

 

(f)                                   Opinion of Counsel.  The Administrative Agent shall have received an executed legal opinion from Latham & Watkins LLP with respect to this Amendment, such legal opinion to be in form and substance reasonably satisfactory to the Administrative Agent.

 

Section 4.                                           Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page to this Amendment by fax or other electronic transmission (e.g., “.pdf”) shall be effective as delivery of a manually executed counterpart of this Amendment.

 

Section 5.                                           Applicable Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.

 

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Section 6.                                           Headings.  Section and Subsection headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose or be given any substantive effect.

 

Section 7.                                           Effect of Amendment.  Except as expressly set forth herein, (i) this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders, the Administrative Agent or any other Agent, in each case under the Credit Agreement or any other Loan Document, and (ii) shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of either such agreement or any other Loan Document.  Each and every term, condition, obligation, covenant and agreement contained in the Credit Agreement or any other Loan Document is hereby ratified and re-affirmed in all respects and shall continue in full force and effect.  Each Loan Party reaffirms its obligations under the Loan Documents to which it is party and the validity of the Liens granted by it pursuant to the Collateral Documents.  This Amendment shall constitute a Loan Document for purposes of the Credit Agreement and from and after the Amendment No. 4 Effective Date, all references to the Credit Agreement in any Loan Document and all references in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, shall, unless expressly provided otherwise, refer to the Credit Agreement as amended by this Amendment.  Each of the Loan Parties hereby (i) consents to this Amendment, (ii) confirms that all obligations of such Loan Party under the Loan Documents to which such Loan Party is a party shall continue to apply to the Credit Agreement as amended hereby and (iii) agrees that all security interests granted by it pursuant to any Loan Document shall secure the Credit Agreement as amended by this Amendment.

 

Section 8.                                           Submission To Jurisdiction; Waivers. Each of the parties hereto hereby irrevocably and unconditionally agrees that Section 11.14 of the Credit Agreement is incorporated herein mutatis mutandis.

 

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9

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first above written.

 

	
 
    	
THE   CONTAINER STORE, INC., as Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jodi Taylor
    
	
 
    	
 
    	
Jodi   Taylor
    
	
 
    	
 
    	
Chief   Financial Officer and Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE   CONTAINER STORE GROUP, INC., and
    
	
 
    	
TCS   GIFT CARD SERVICES, LLC,
    
	
 
    	
each   as a Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jodi Taylor
    
	
 
    	
 
    	
Jodi   Taylor
    
	
 
    	
 
    	
Chief   Financial Officer and Secretary
    

 

[SIGNATURE PAGE TO AMENDMENT NO. 4 - THE CONTAINER STORE, INC.]

 

 

	
 
    	
JPMORGAN CHASE BANK,   N.A.,
    
	
 
    	
as Administrative   Agent, Collateral Agent and as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jon Eckhouse
    
	
 
    	
 
    	
Jon Eckhouse
    
	
 
    	
 
    	
Authorized Officer
    

 

[SIGNATURE PAGE TO AMENDMENT NO. 4 - THE CONTAINER STORE, INC.]

 

 

	
 
    	
WELLS FARGO BANK,   NATIONAL ASSOCIATION,
    
	
 
    	
as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert C. Chakarian
    
	
 
    	
 
    	
Robert C. Chakarian
    
	
 
    	
 
    	
Vice President
    

 

[SIGNATURE PAGE TO AMENDMENT NO. 4 - THE CONTAINER STORE, INC.]

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