Document:

ex_398515.htm

Exhibit 10.9.1

 

Non-Employee Directors

 

 

THE SHYFT GROUP, INC.

RESTRICTED STOCK UNIT AGREEMENT

 

This RESTRICTED STOCK UNIT AGREEMENT (the “Agreement”) is made and entered into as of __________ ___, 2022 (the “Grant Date”), by and between The Shyft Group, Inc., a Michigan corporation (the “Company”) and [●] (the “Director”).

 

Background

 

	 	
			A.

				
			The Company has adopted The Shyft Group, Inc.’s Stock Incentive Plan of 2016, as amended and restated to date (the “Plan”) pursuant to which awards of Restricted Stock Units may be granted.

			

 

	 	
			B.

				
			The Committee has determined that it is in the best interests of the Company and its shareholders to grant the award of Restricted Stock Units provided for in this Agreement.

			

 

Agreement

 

Therefore, the parties, intending to be legally bound, agree as follows:

 

1.          Grant of Restricted Stock Units. Pursuant to the Plan, the Company has granted to the Director on the Grant Date an Incentive Award consisting of, in the aggregate, [●] Restricted Stock Units (the “RSUs”). Each RSU represents the right to receive one share of Common Stock on the terms and conditions and subject to the restrictions set forth in this Agreement and the Plan. The RSUs shall be credited to a separate account maintained for the Director on the books and records of the Company (the “Account”). Capitalized terms that are used but not defined in this Agreement have the meanings assigned to them in the Plan.

 

2.        Consideration. The grant of the RSUs is made in consideration of the services to be rendered by the Director to the Company during the applicable vesting period.

 

 

 

Non-Employee Directors

 

 

3.        Restricted Period; Vesting. Except as otherwise provided in this Agreement, provided there is no termination of Director’s status as a director (as determined in accordance with Section 7.2 of the Plan) as of the applicable vesting date, the RSUs will vest in accordance with the following schedule:

 

	
			Vesting Date

				
			Number of RSUs That Vest

			
	 	 
	
			First anniversary of Grant Date

				
			100% of RSUs

			

 

The period over which the RSUs vest is referred to as the “Restricted Period.” Once vested, the RSUs become “Vested Units.”

 

4.         Restrictions. Subject to any exceptions set forth in this Agreement or the Plan, during the Restricted Period and until such time as the RSUs are settled in accordance with Section 8 below, neither the RSUs nor the rights relating to the RSUs may be assigned, alienated, pledged, attached, sold, or otherwise transferred or encumbered by the Director. Any attempt to assign, alienate, pledge, attach, sell, or otherwise transfer or encumber the RSUs or the rights relating to the RSUs shall be wholly ineffective.

 

5.          Termination of Director Status.

 

  (a)         Except as otherwise expressly provided in this Agreement, if the Director’s status as a director of the Company terminates for any reason at any time before all of the Director’s RSUs have vested, the Director’s unvested RSUs shall be automatically forfeited upon such termination of director status, and neither the Company nor any Subsidiary shall have any further obligations to the Director under this Agreement. For purposes of this Section 5, termination of director status shall be determined in accordance with Section 7.2 of the Plan.

 

  (b)         Notwithstanding Section 5(a) above, if the Director’s status as a director of the Company terminates during the Restricted Period as a result of the Director’s death or if the Director becomes Disabled, all of the RSUs shall immediately become vested in full.

 

6.         Effect of a Change in Control. Notwithstanding anything to the contrary in this Agreement, if a Change in Control occurs during the Restricted Period, then immediately prior to the Change in Control and without any action by the Committee or the Board, all of the RSUs that are not then vested shall become immediately vested.

 

7.          Rights as Shareholder; Dividend Equivalents.

 

  (a)         The Director shall not have any rights of a shareholder with respect to the shares of Common Stock underlying the RSUs unless and until the RSUs vest and are settled by the issuance of such shares of Common Stock.

 

 

 

Non-Employee Directors

 

 

  (b)         Upon and following the settlement of the RSUs, the Director shall be the record owner of the shares of Common Stock underlying the RSUs unless and until such shares are sold or otherwise disposed of, and as record owner shall be entitled to all rights of a shareholder of the Company (including voting rights).

 

  (c)         Until such time as the RSUs vest, the Director’s Account shall be credited with an amount equal to all cash and stock dividends (“Dividend Equivalents”) that would have been paid to the Director if one share of Common Stock had been issued on the Grant Date for each RSU granted to the Director as set forth in this Agreement. Dividend Equivalents shall be credited to the Director’s Account and interest may be credited on the amount of cash Dividend Equivalents credited to the Director’s Account at a rate and subject to such terms as determined by the Committee. Dividend Equivalents shall be subject to the same vesting restrictions as the RSUs to which they are attributable and shall be paid on the same date that the RSUs to which they are attributable are settled in accordance with Section 8 below. Dividend Equivalents credited to a Director’s Account shall be distributed in cash or, at the discretion of the Committee, in shares of Common Stock having a fair market value equal to the amount of the Dividend Equivalents and interest, if any.

 

8.         Settlement of RSUs. Subject to any withholding for applicable taxes pursuant to the Plan, promptly following the vesting date, and in all events no later than March 15 of the calendar year following the calendar year in which such vesting occurs, the Company shall (a) issue and deliver to the Director the number of shares of Common Stock equal to the number of Vested Units and cash equal to any Dividend Equivalents credited with respect to such Vested Units or, at the discretion of the Committee, shares of Common Stock having a fair market value equal to such Dividend Equivalents; and (b) enter the Director’s name on the books of the Company as the shareholder of record with respect to the shares of Common Stock delivered to the Director. Notwithstanding the foregoing, the Committee shall have the discretion to settle vested RSUs in cash using the fair market value of the shares of Common Stock underlying the vested RSUs as of the applicable settlement date. If the Director is a “specified employee” within the meaning of Section 409A of the Code and a payment subject to Section 409A of the Code (and not excepted therefrom) is due upon separation from service, such payment to the extent necessary to comply with Section 409A of the Code shall be delayed until six months after the date of separation from service (or if earlier the Director’s death).

 

9.       No Right to Continued Service. Neither the Plan nor this Agreement shall confer upon the Director any right to be retained in any position, as an employee, consultant, or director of the Company. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the Director’s service to or status with the Company at any time, with or without cause.

 

 

 

Non-Employee Directors

 

 

10.        Adjustments. If any change is made to the outstanding Common Stock or the capital structure of the Company, if required, the RSUs shall be adjusted or terminated in any manner as contemplated by Section 4.3 of the Plan (the RSUs and this Agreement are subject to mandatory adjustment pursuant to the terms of Section 4.3 of the Plan).

 

11.       Compliance with Law. The issuance and transfer of shares of Common Stock shall be subject to compliance by the Company and the Director with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company’s shares of Common Stock may be listed. No shares of Common Stock shall be issued or transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel.

 

12.      Legends. A legend may be placed on any certificate(s) or other document(s) delivered to the Director indicating restrictions on transferability of the RSUs or the shares of Common Stock issuable upon settlement of the RSUs pursuant to this Agreement or any other restrictions that the Committee may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any applicable federal or state securities laws, or any stock exchange on which the shares of Common Stock are then listed or quoted.

 

13.       Notices. Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to the Secretary of the Company at the Company’s principal corporate offices. Any notice required to be delivered to the Director under this Agreement shall be in writing and addressed to the Director at the Director’s address as shown in the records of the Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time.

 

14.        Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of Michigan without regard to conflict of law principles.

 

15.      Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by the Director or the Company to the Committee for review. The resolution of such dispute by the Committee (excluding any participation by the Director if he or she then serves on the Committee) shall be final and binding on the Director and the Company.

 

 

 

Non-Employee Directors

 

 

16.       RSUs Subject to Plan. This Agreement is subject to the Plan as approved by the Company’s shareholders. The terms and provisions of the Plan, as it may be amended from time to time, are hereby incorporated in this Agreement by reference. In the event of a conflict between any term or provision contained in this Agreement and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

 

17.       Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in this Agreement, this Agreement will be binding upon the Director and the Director’s beneficiaries, executors, and administrators.

 

18.        Severability. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.

 

19.        Discretionary Nature of Plan. The Plan is discretionary and may be amended, cancelled, or terminated by the Company at any time, in its discretion. The grant of the RSUs in this Agreement does not create any contractual right or other right to receive any RSUs or other Incentive Awards in the future. Future Incentive Awards, if any, will be at the sole discretion of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Director’s membership on the Board.

 

20.        Section 409A. This Agreement is intended to qualify for the short-term deferral exception under Section 409A of the Code and shall be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A of the Code. In all events, payment in respect of the PSUs shall be made within the short-term deferral period specified under Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A of the Code, and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Grantee on account of non-compliance with Section 409A of the Code.

 

 

 

Non-Employee Directors

 

 

21.       Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature.

 

22.      Acceptance. The Director hereby acknowledges receipt of a copy of the Plan and this Agreement. The Director has read and understands the terms and provisions of the Plan and this Agreement, and accepts the RSUs subject to all of the terms and conditions of the Plan and this Agreement. The Director acknowledges that there may be adverse tax consequences upon the grant, vesting, or settlement of the RSUs or disposition of the underlying shares and that the Director has been advised to consult a tax advisor prior to such grant, vesting or disposition. The Company respects the Director’s privacy. In order to administer the Director’s equity award, the Company collects and uses certain personal information about the Director, including the Director’s prior equity grant information where applicable. If the Director is a California resident, the Director should refer to the Company’s California Consumer Privacy Act Notice for more information about the personal information the Company collects about the Director and the purposes for which the Company will use such data.

 

INTENDING TO BE LEGALLY BOUND, the parties have executed this Restricted Stock Unit Agreement as of the Grant Date.

 

	COMPANY: 	 	DIRECTOR:
	The Shyft Group, Inc.	 	 
	 	 	 
	 	 	 
	By:	 	 
	Its:	 	 

 

 

 

                                                           

Revision Dated ## ##### 2022creditagreement

Execution Version  CREDIT AGREEMENT  Dated as of July 22, 2022  among  CORE MOLDING TECHNOLOGIES, INC.,  as the Borrower,  the other Loan Parties from time to time party hereto,  the LENDERS from time to time party hereto  and  THE HUNTINGTON NATIONAL BANK,  as Administrative Agent  THE HUNTINGTON NATIONAL BANK,  as Bookrunner and Lead Arranger  

 

ii  TABLE OF CONTENTS  ARTICLE I DEFINITIONS AND INTERPRETIVE PROVISIONS .......................................................... 1 Definitions .......................................................................................................................... 1 Rules of Interpretation ...................................................................................................... 31 Accounting Terms ............................................................................................................. 32 Rounding ........................................................................................................................... 33 Classification of Loans and Borrowings ........................................................................... 33 Rates ................................................................................................................................. 33 Judgment Currency ........................................................................................................... 33 ARTICLE II THE COMMITMENTS AND CREDIT EXTENSIONS ...................................................... 34 Commitments .................................................................................................................... 34 Loans and Borrowings ...................................................................................................... 34 Borrowing Requests .......................................................................................................... 34 Funding of Borrowings ..................................................................................................... 35 Swingline Loans ............................................................................................................... 35 Letters of Credit ................................................................................................................ 37 Interest Elections ............................................................................................................... 43 Prepayments ...................................................................................................................... 44 Termination or Reduction of Commitments ..................................................................... 46 Repayment of Loans ......................................................................................................... 47 Interest .............................................................................................................................. 47 Fees ................................................................................................................................... 48 Computation of Interest and Fees ..................................................................................... 49 Payments ........................................................................................................................... 50 Sharing of Payments by Lenders ...................................................................................... 51 Evidence of Debt .............................................................................................................. 51 Defaulting Lenders ........................................................................................................... 52 ARTICLE III TAXES, YIELD PROTECTION, ILLEGALITY AND BENCHMARK  REPLACEMENT ....................................................................................................................................... 54 Taxes ................................................................................................................................. 54 Illegality ............................................................................................................................ 57 Inability to Determine Rates ............................................................................................. 57 Increased Costs ................................................................................................................. 58 Compensation for Losses .................................................................................................. 59 Effect of Benchmark Transition Event ............................................................................. 59 Mitigation Obligations; Replacement of Lenders ............................................................. 60 ARTICLE IV CONDITIONS PRECEDENT TO CREDIT EXTENSIONS .............................................. 61 Conditions of Initial Credit Extension .............................................................................. 61 Conditions to All Credit Extensions ................................................................................. 63 ARTICLE V Covenants .............................................................................................................................. 63 Insurance ........................................................................................................................... 63 Money Obligations ........................................................................................................... 64 Financial Statements and Information .............................................................................. 64 Financial Records ............................................................................................................. 66 

 

iii  Franchises; Change in Business ........................................................................................ 66 ERISA Pension and Benefit Plan Compliance ................................................................. 66 Financial Covenants; Maximum Consolidated Capital Expenditures .............................. 68 Borrowing ......................................................................................................................... 68 Liens ................................................................................................................................. 69 Regulations T, U and X .................................................................................................... 70 Investments, Loans and Guaranties .................................................................................. 70 Merger and Sale of Assets ................................................................................................ 72 Acquisitions ...................................................................................................................... 73 Notice ................................................................................................................................ 73 Restricted Payments .......................................................................................................... 74 Environmental Compliance .............................................................................................. 74 Affiliate Transactions ....................................................................................................... 74 Use of Proceeds ................................................................................................................ 74 Corporate Names and Locations of Collateral .................................................................. 74 Lease Rentals .................................................................................................................... 75 Subsidiary Guaranties, Security Documents and Pledge of Stock or Other  Ownership Interest ............................................................................................................ 75 Flood Hazard..................................................................................................................... 76 Restrictive Agreements ..................................................................................................... 77 [Reserved]. ........................................................................................................................ 77 Guaranty Under Material Indebtedness Agreement .......................................................... 77 Amendment of Organizational Documents....................................................................... 77 Fiscal Year of the Borrower .............................................................................................. 77 Negative Pledge ................................................................................................................ 77 Banking Relationship ........................................................................................................ 78 Compliance with Laws ..................................................................................................... 78 Loan Party as Trustee ....................................................................................................... 78 Further Assurances ........................................................................................................... 78 Post-Closing Obligations .................................................................................................. 78 ARTICLE VI Representations and Warranties ........................................................................................... 79 Corporate Existence; Subsidiaries; Foreign Qualification ................................................ 79 Corporate Authority .......................................................................................................... 79 Compliance with Laws and Contracts .............................................................................. 79 Litigation and Administrative Proceedings ...................................................................... 80 Title to Assets ................................................................................................................... 80 Liens and Security Interests .............................................................................................. 80 Tax Returns ....................................................................................................................... 81 Environmental Laws ......................................................................................................... 81 Locations ........................................................................................................................... 81 Continued Business ........................................................................................................... 81 Employee Benefits Plans .................................................................................................. 81 Consents or Approvals ...................................................................................................... 82 Solvency............................................................................................................................ 82 Financial Statements ......................................................................................................... 83 Regulations ....................................................................................................................... 83 Material Agreements ......................................................................................................... 83 Intellectual Property .......................................................................................................... 83 Insurance ........................................................................................................................... 83 

 

iv  Deposit Accounts and Securities Accounts ...................................................................... 84 Accurate and Complete Statements .................................................................................. 84 Investment Company; Other Restrictions ......................................................................... 84 Defaults ............................................................................................................................. 84 Affected Financial Institution ........................................................................................... 84 Anti-Corruption Laws and Sanctions ................................................................................ 84 Beneficial Ownership Certification .................................................................................. 85 ARTICLE VII DEFAULT AND REMEDIES ........................................................................................... 85 Events of Default .............................................................................................................. 85 Remedies Upon Event of Default ..................................................................................... 88 Allocation of Payments After Event of Default ................................................................ 88 ARTICLE VIII The Administrative Agent ................................................................................................. 89 Appointment and Authority .............................................................................................. 89 Rights as a Lender ............................................................................................................. 89 Exculpatory Provisions ..................................................................................................... 89 Reliance by Administrative Agent .................................................................................... 91 Delegation of Duties ......................................................................................................... 91 Resignation of Administrative Agent ............................................................................... 91 Non-Reliance on Administrative Agent and Other Lenders ............................................. 92 No Other Duties, Etc. ........................................................................................................ 92 Administrative Agent May File Proofs of Claim .............................................................. 92 Collateral and Guarantee Matters ..................................................................................... 94 Compliance with Flood Insurance Laws ........................................................................... 94 Bank Product Obligations and Hedging Agreement Obligations ..................................... 94 Certain ERISA Matters ..................................................................................................... 95 Erroneous Payments ......................................................................................................... 96 ARTICLE IX MISCELLANEOUS ............................................................................................................ 97 Amendments, Etc. ............................................................................................................. 97 Notices; Effectiveness ....................................................................................................... 98 No Waiver; Cumulative Remedies; Enforcement ............................................................. 99 Expenses; Indemnity; Damage Waiver ........................................................................... 100 Payments Set Aside ........................................................................................................ 101 Successors and Assigns .................................................................................................. 102 Treatment of Certain Information; Confidentiality ......................................................... 105 Right of Setoff ................................................................................................................ 105 Survival ........................................................................................................................... 106 Independent Effect of Covenants .................................................................................... 106 Governing Law; Jurisdiction; Etc. .................................................................................. 106 WAIVER OF JURY TRIAL ........................................................................................... 107 Counterparts; Integration; Effectiveness; Electronic Execution; Termination ............... 107 No Advisory or Fiduciary Responsibility ....................................................................... 108 Severability ..................................................................................................................... 109 USA PATRIOT Act ........................................................................................................ 109 Inconsistencies with Other Documents ........................................................................... 109 Acknowledgement and Consent to Bail-In of Affected Financial Institutions ............... 109 Acknowledgement Regarding Any Supported QFCs ..................................................... 110 

 

v  Canadian Anti-Money Laundering Legislation .............................................................. 110 SCHEDULES  A Commitment Schedule  B Domestic and Foreign Guarantors to Payment  C Domestic Real Property  2.10(c) Amortization  5.8 Existing Indebtedness  5.9 Existing Liens  5.11 Existing Investments  6.1 Subsidiaries  6.4 Litigation  6.5 Real Property  6.9 Chief Executive Office and Location of Collateral  6.11 ERISA Plans and Foreign Pension Plans  6.16 Material Agreements  6.17 Intellectual Property  6.18 Insurance  6.19 Deposit and Securities Accounts  EXHIBITS  A-1 Form of Borrowing Request  A-2 Form of Interest Election Request  A-3 Form of Swingline Loan Request  B Form of Compliance Certificate  C-1 Form of Revolving Note  C-2 Form of Term Note  C-3 Form of Swingline Note  C-4 Form of CapEx Note  D Form of Assignment Agreement  E-1 Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are Not  Partnerships For U.S. Federal Income Tax Purposes)  E-2 Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are Not  Partnerships For U.S. Federal Income Tax Purposes)  E-3 Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are  Partnerships For U.S. Federal Income Tax Purposes)  E-4 Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are  Partnerships For U.S. Federal Income Tax Purposes)  

 

1  CREDIT AGREEMENT  This CREDIT AGREEMENT is entered into as of July 22, 2022, among CORE MOLDING  TECHNOLOGIES, INC., a Delaware corporation (the “Borrower”), the LENDERS from time to time party  hereto and THE HUNTINGTON NATIONAL BANK, as Administrative Agent.  WHEREAS, the Borrower has requested that the Lenders provide certain credit facilities and other  financial accommodations; and  WHEREAS, the Lenders have indicated their willingness to lend on the terms and subject to the  conditions set forth herein.  NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained,  the parties hereto covenant and agree as follows:  ARTICLE I  DEFINITIONS AND INTERPRETIVE PROVISIONS  Definitions  As used in this Agreement, the following terms shall have the meanings set forth below:  “2025 CapEx Loan Conversion Date” shall mean February 1, 2025.  “2026 CapEx Loan Conversion Date” shall mean February 1, 2026.  “2027 CapEx Loan Conversion Date” shall mean February 1, 2027.  “ABR” 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 Funds Rate in effect on such day plus 0.50% per annum and (c) Daily Simple  SOFR for such day (taking into account any floor set forth in the definition of “Daily Simple SOFR”) plus  1.00% per annum; provided, that if the ABR shall be less than the Floor, then ABR shall be deemed to be  the Floor for the purposes of this Agreement.  Any change in the ABR due to a change in the Prime Rate,  the Federal Funds Rate or Daily Simple SOFR shall be effective from and including the effective date of  such change in the Prime Rate, the Federal Funds Rate or Daily Simple SOFR, respectively.    “ABR Borrowing” means, as to any Borrowing, the ABR Loans comprising such Borrowing.  “ABR Loan” means a Loan that bears interest based on the ABR.  “Account” means an account, as that term is defined in the UCC or the PPSA (as applicable).  “Acquisition” means any transaction or series of related transactions for the purpose of or resulting,  directly or indirectly, in (a) the acquisition of all or substantially all of the assets of any Person (other than  a Company), or any business or division of any Person (other than a Company), (b) the acquisition of in  excess of fifty percent (50%) of the outstanding capital stock (or other Equity Interest) of any Person (other  than a Company), or (c) the acquisition of another Person (other than a Company) by a merger,  amalgamation or consolidation or any other combination with such Person.   “Administrative Agent” means Huntington, in its capacity as administrative agent under this  Agreement and any of the other Loan Documents, or any successor agent.  

 

2  “Administrative Agent Fee Letter” means the fee letter among the Borrower, the Arranger, and the  Administrative Agent dated on or about the date of this Agreement.  “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the  Administrative Agent.  “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial  Institution.  “Affiliate” means, with respect to a specified Person, another Person that directly or indirectly  through one or more intermediaries, Controls or is Controlled by or is under common Control with the  Person specified.  “Agreement” means this Credit Agreement.   “Aggregate Revolving Exposure” means the aggregate Revolving Exposure of the Revolving  Lenders.  “Anti-Corruption Laws” means, collectively, the United States Foreign Corrupt Practices Act of  1977 and all other similar anti-corruption legislation in other jurisdictions as amended, and the rules and  regulations thereunder, including Canadian Anti-Money Laundering & Anti-Terrorism Legislation.  “Applicable Margin” means, for any day, the applicable rate per annum set forth under the  appropriate column in the table below, which shall be based on the Leverage Ratio and adjusted quarterly  based on the Compliance Certificate to be delivered by the Borrower pursuant to Section 5.3(c).   Level Leverage Ratio SOFR Loans /  Letter of Credit  Fees  ABR Loans Unused  Facility Fee  I Less than 1.50x 180 bps 280 bps 20 bps  II Less than 2.50x but  greater than or equal to  1.50x   200 bps 300 bps 22.5 bps  III Greater than or equal to  2.50x  230 bps 330 bps 25 bps  Any increase or decrease in the Applicable Margin resulting from a change in the Leverage Ratio  shall become effective as of the first Business Day immediately following the date a Compliance Certificate  is delivered in accordance with Section 5.3(c); provided, however, that if such Compliance Certificate is  not delivered when due in accordance with Section 5.3(c), then the Applicable Margin shall be the  percentage that would apply to Level III above and it shall apply as of the first Business Day after the date  on which such Compliance Certificate was required to have been delivered until the date on which such  Compliance Certificate is delivered (on which date the Applicable Margin shall be set at the margin based  upon the calculations in such Compliance Certificate).  The initial “Applicable Margin” as of the Closing  Date shall be at the Level I pricing.  Notwithstanding anything to the contrary contained in this definition,  the determination of the Applicable Margin shall be subject to the provisions of Section 2.13(b).  

 

3  “Applicable Percentage” means (a) in respect of the Term Facility, with respect to any Term Lender  at any time, the percentage of the principal amount of the Term Loans represented by the principal amount  of such Term Lender’s Term Loans at such time, (b) in respect of the Revolving Facility, with respect to  any Revolving Lender at any time, the percentage of the Aggregate Revolving Exposure and unused  Revolving Commitments represented by such Revolving Lender’s Revolving Exposure and unused  Revolving Commitment at such time, (c) in respect of the CapEx Facility, with respect to any CapEx Lender  at any time, the percentage of the CapEx Loan Commitments represented by the principal amount of such  CapEx Lender’s CapEx Loan Commitment at such time, and the outstanding CapEx Loans at such time,  and (d) with respect to Section 9.4, with respect to any Lender at any time, the percentage of the total unused  Commitments, Revolving Exposure, outstanding Term Loans and outstanding CapEx Loans represented  by such Lender’s unused Commitments, Revolving Exposure, outstanding Term Loans and outstanding  CapEx Loans at such time; provided that, in accordance with Section 2.17, so long as any Lender shall be  a Defaulting Lender, such Defaulting Lender’s Revolving Commitment shall be disregarded in the  calculations under clause (b) above.  The initial Applicable Percentage of each Lender in respect of each  Facility is set forth opposite the name of such Lender on Schedule A or in the Assignment Agreement  pursuant to which such Lender becomes a party hereto, as applicable.  “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.  “Arranger” means Huntington, in its capacity as sole bookrunner and sole lead arranger hereunder.  “Assignment Agreement” means an Assignment and Assumption Agreement substantially in the  form of Exhibit D.  “Attributable Indebtedness” means, on any date, (a) in respect of any Capitalized 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 Capitalized Lease  Obligations, and (c) all Synthetic Indebtedness of such Person.  “Availability Period” means, in respect of the Revolving Facility, the period from and including  the Closing Date to the earliest of (a) the Revolving Maturity Date, (b) the date of termination of the  Revolving Commitments pursuant to Section 2.9, and (c) the date of termination of the Revolving  Commitments pursuant to Section 7.2.  “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable  Resolution Authority in respect of any liability of an Affected Financial Institution.  “Bail-In Legislation” means (a) with respect to any EEA Member Country implementing Article  55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the  implementing law, regulation, rule or requirement for such EEA Member Country from time to time that is  described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the  United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule  applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms  or other financial institutions or their affiliates (other than through liquidation, administration or other  insolvency proceedings).  

 

4  “Bank Product Agreements” means those certain cash management services and other agreements  entered into from time to time between a Company and the Administrative Agent or a Lender (or an Affiliate  of a Lender) in connection with any of the Bank Products.  “Bank Product Obligations” means all obligations, liabilities, contingent reimbursement  obligations, fees and expenses owing by a Company to the Administrative Agent or any Lender (or an  Affiliate of a Lender) pursuant to or evidenced by the Bank Product Agreements.  “Bank Products” means a service or facility extended to a Company by the Administrative Agent  or any Lender (or an Affiliate of a Lender) for (a) credit cards and credit card processing services, (b) debit  cards, purchase cards and stored value cards, (c) ACH transactions, and (d) cash management, including  controlled disbursement, accounts or services.  “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as now or  hereafter in effect, or any successor thereto, as hereafter amended  “Benchmark” means, initially, Daily Simple SOFR; provided, that if a Benchmark Transition Event  has occurred with respect to Daily Simple SOFR or the then-current Benchmark, then “Benchmark” means  the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such  prior benchmark rate pursuant to Section 3.6.  “Benchmark Replacement” means, with respect to any Benchmark Transition Event, the sum of:  (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower giving  due consideration to (i) any selection or recommendation of a replacement benchmark rate or the  mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then- prevailing market convention for determining a benchmark rate as a replacement to the then-current  Benchmark for Dollar-denominated syndicated credit facilities and (b) the related Benchmark Replacement  Adjustment; provided that, if such Benchmark Replacement as so determined would be less than the Floor,  such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the  other Loan Documents.  “Benchmark Replacement Adjustment” means, with respect to any replacement of the then-current  Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating  or determining such spread adjustment, (which may be a positive or negative value or zero) that has been  selected by the Administrative Agent and the Borrower giving due consideration to (a) any selection or  recommendation of a spread adjustment, or method for calculating or determining such spread adjustment,  for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the  Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a  spread adjustment, or method for calculating or determining such spread adjustment, for the replacement  of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated  syndicated credit facilities at such time.  “Benchmark Replacement Date” means a date and time determined by the Administrative Agent,  which date shall be no later than the earliest to occur of the following events with respect to the then-current  Benchmark:  (a) in the case of clause (a) or (b) of the definition of “Benchmark Transition Event”,  the later of (i) the date of the public statement or publication of information referenced therein and  (ii) the date on which the administrator of such Benchmark (or the published component used in  the calculation thereof) permanently or indefinitely ceases to provide such Benchmark (or such  component thereof); or  

 

5  (b) in the case of clause (c) of the definition of “Benchmark Transition Event”, the  first date on which such Benchmark (or the published component used in the calculation thereof)  has been determined and announced by the regulatory supervisor for the administrator of such  Benchmark (or such component thereof) to be non-representative; provided, that such non- representativeness will be determined by reference to the most recent statement or publication  referenced in such clause (c).  “Benchmark Transition Event” means the occurrence of one or more of the following events with  respect to the then-current Benchmark:  (a) a public statement or publication of information by or on behalf of the  administrator of such Benchmark (or the published component used in the calculation thereof)  announcing that such administrator has ceased or will cease to provide such Benchmark (or such  component thereof), permanently or indefinitely; provided, that, at the time of such statement or  publication, there is no successor administrator that will continue to provide such Benchmark (or  such component thereof);  (b) a public statement or publication of information by the regulatory supervisor for  the administrator of such Benchmark (or the published component used in the calculation thereof),  the Federal Reserve Board, the NYFRB, an insolvency official with jurisdiction over the  administrator for such Benchmark (or such component), a resolution authority with jurisdiction  over the administrator for such Benchmark (or such component) or a court or an entity with similar  insolvency or resolution authority over the administrator for such Benchmark (or such component),  which states that the administrator of such Benchmark (or such component) has ceased or will cease  to provide such Benchmark (or such component thereof) permanently or indefinitely; provided,  that, at the time of such statement or publication, there is no successor administrator that will  continue to provide such Benchmark (or such component thereof); or  (c) a public statement or publication of information by the regulatory supervisor for  the administrator of such Benchmark (or the published component used in the calculation thereof)  announcing that such Benchmark (or such component thereof) is not, or as of a specified future  date will not be, representative.  “Benchmark Unavailability Period” means the period (if any) (a) beginning at the time that a  Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the  then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with  Section 3.6 and (b) ending at the time that a Benchmark Replacement has replaced the then-current  Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 3.6.  “Beneficial Ownership Certification” means a certification regarding beneficial ownership as  required by the Beneficial Ownership Regulation.  “Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.  “Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject  to Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the Code or (c) any Person  whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA  or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.   “Borrower” has the meaning specified in the introductory paragraph.  

 

6  “Borrowing” means (a) Revolving Loans of the same Type made or converted on the same date,  (b) Term Loans of the same Type made or converted on the same date, (c) CapEx Loans of the same Type  made or converted on the same date and (d) a Swingline Loan.  “Borrowing Request” means a notice of a borrowing of Loans, which shall be substantially in the  form of Exhibit A-1 or such other form as may be approved by the Administrative Agent, appropriately  completed and signed by a Financial Officer of the Borrower.  “Business Day” means any day other than a Saturday, a Sunday, or other day on which commercial  banks in New York City or Columbus, Ohio are authorized or required by Law to be closed.  “Canadian Anti-Money Laundering & Anti-Terrorism Legislation” means the Criminal Code,  R.S.C. 1985, c. C-46, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, S.C. 2000,  c. 17 and the United Nations Act, R.S.C. 1985, c. U-2 or any similar Canadian legislation, together with all  rules, regulations and interpretations thereunder or related thereto including, without limitation, the  Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism and the United  Nations Al-Qaida and Taliban Regulations promulgated under the United Nations Act.  “Canadian Blocked Person” means any Person that is a “designated person”, “politically exposed  foreign person” or “terrorist group” as described in any Canadian Economic Sanctions and Export Control  Laws.  “Canadian Economic Sanctions and Export Control Laws” means any Canadian laws, regulations  or orders governing transactions in controlled goods or technologies or dealings with countries, entities,  organizations, or individuals subject to economic sanctions and similar measures, including the Special Economic Measures Act (Canada), the United Nations Act (Canada), the Freezing Assets of Corrupt Foreign Officials Act (Canada), Part II.1 of the Criminal Code (Canada) and the Export and Import Permits  Act (Canada), and any related regulations.  “Canadian Guarantee and Security Agreement” means that certain Canadian Guarantee and  Security Agreement made by and among Canadian Subsidiary Guarantor, any additional Foreign  Guarantors of Payment that become party thereto from time to time, and the Administrative Agent for the  benefit of the Secured Parties, as amended, restated, modified or supplemented from time to time.   “Canadian MEPP” means a “multi-employer plan”, as defined under Regulation 8500(1) of the  Income Tax Act (Canada) to which the Canadian Subsidiary Guarantor is required to contribute but which  is not maintained or administered by the Canadian Subsidiary Guarantor.   “Canadian Pension Event” means (a) the whole or partial withdrawal of the Canadian Subsidiarity  Guarantor (if it is a Loan Party at such time) or another Loan Party from a Defined Benefit Plan; or (b) the  filing of a notice of intent to terminate in whole or in part a Defined Benefit Plan or the treatment of a  Defined Benefit Plan amendment as a termination or partial termination; or (c) the institution of proceedings  by any Governmental Authority to terminate in whole or in part or have a trustee appointed to administer a  Defined Benefit Plan; or (d) any other event or condition which might constitute grounds for the termination  of, winding up or partial termination of winding up or the appointment of trustee to administer, any Defined  Benefit Plan.  “Canadian Pension Plan” means any plan, program or arrangement that is a “registered pension  plan” as defined under subsection 248(1) of the Income Tax Act (Canada) that is required to be registered  under any applicable Canadian federal or provincial pension legislation, whether or not registered under  any such laws, which is, or has been, maintained or contributed to by, or to which there is or may be an  

 

7  obligation to contribute by, a Loan Party or Subsidiary operating in Canada in respect of any Person’s  employment in Canada with such Loan Party or Subsidiary, other than any Canadian MEPP, a “pooled  pension plan” (as defined under section 147.5(1) of the Income Tax Act (Canada)) or plans established by  statute, which shall include the Canada Pension Plan maintained by the government of Canada and the  Quebec Pension Plan maintained by the Province of Quebec.  “Canadian Subsidiary Guarantor” means Horizon Plastics International Inc.  “CapEx Availability Period” means, in respect of the CapEx Facility, the period from and including  the Closing Date to the earliest of (a) the CapEx Loan Commitment Expiration Date, (b) the date of  termination of the CapEx Loan Commitments pursuant to Section 2.9, and (c) the date of termination of the  CapEx Loan Commitments pursuant to Section 7.2.  “CapEx Facility” means the CapEx Loan Commitments and the extensions of credit made  thereunder.  “CapEx Lender” means a Lender with a CapEx Loan Commitment or, if the CapEx Loan  Commitments have expired or terminated, a Lender holding outstanding CapEx Loans.  “CapEx Loan Commitment” means the commitment of each CapEx Lender to make a CapEx Loan  pursuant to Section 2.1(c), which commitment shall be the amount set forth opposite such CapEx Lender’s  name on Schedule A. “CapEx Loan Commitments” means the aggregate CapEx Loan Commitment of the  CapEx Lenders.  “CapEx Loan Commitment Expiration Date” means January 31, 2027.  “CapEx Loan Conversion Date” shall mean, each of and collectively, the 2025 CapEx Loan  Conversion Date, the 2026 CapEx Loan Conversion Date, and the 2027 CapEx Loan Conversion Date.  “CapEx Loan” and “CapEx Loans” individually and collectively, as applicable, has the meaning  specified in Section 2.1(c).   “CapEx Loan Maturity Date” means the earlier to occur of (a) July 22, 2027 or (b) such other date  on which the CapEx Loan Commitments are terminated pursuant to this Agreement.  “CapEx Note” means a promissory note executed by the Borrower in favor of any CapEx Lender  in the form of Exhibit C-4 evidencing the CapEx Loans of such CapEx Lender.  “Capital Distribution” means a payment made, liability incurred or other consideration given by a  Company to any Person that is not a Company, (a) for the purchase, acquisition, redemption, repurchase,  payment or retirement of any Equity Interest of such Company, or (b) as a dividend, return of capital or  other distribution (other than any stock dividend, stock split or other equity distribution payable only in  capital stock or other equity of such Company) in respect of such Company’s Equity Interest.  “Capitalized Lease Obligations” means obligations of the Companies for the payment of rent for  any real or personal property under leases or agreements to lease that, in accordance with GAAP, have been  or should be capitalized on the books of the lessee and, for purposes hereof, the amount of any such  obligation shall be the capitalized amount thereof determined in accordance with GAAP.  “Cash Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for  the benefit of one or more of the Issuing Banks or Lenders, as collateral for Letter of Credit Exposure or  

 

8  obligations of Lenders to fund participations in respect of Letter of Credit Exposure, cash or deposit account  balances or, if the Administrative Agent and each applicable Issuing Bank shall agree in its sole discretion,  other credit support, in each case pursuant to documentation in form and substance satisfactory to the  Administrative Agent and each applicable Issuing Bank.  “Cash Collateral” shall have a meaning analogous  to the foregoing and shall include the proceeds of such cash collateral and other credit support.  “Change in Control” means:  (a) the acquisition of, or, if earlier, the shareholder or director approval of the  acquisition of, ownership or voting control, directly or indirectly, beneficially (within the meaning  of Rules 13d-3 and 13d-5 of the Exchange Act) or of record, on or after the Closing Date, by any  Person or group (within the meaning of Sections 13d and 14d of the Exchange Act), of shares  representing more than thirty-five percent (35%) of the aggregate ordinary Voting Power  represented by the issued and outstanding capital stock of the Borrower;   (b) if, at any time during any period of twenty-four (24) consecutive months, a  majority of the members of the board of directors of the Borrower cease to be composed of  individuals (i) who were members of that board of directors on the first day of such period,  (ii) whose election or nomination to that board of directors was approved by individuals referred to  in subpart (i) hereof that constituted, at the time of such election or nomination, at least a majority  of that board of directors, or (iii) whose election or nomination to that board of directors was  approved by individuals referred to in subparts (i) and (ii) hereof that constituted, at the time of  such election or nomination, at least a majority of that board of directors;  (c) if the Borrower shall cease to own, directly or indirectly, one hundred percent  (100%) of the outstanding capital stock of the Canadian Subsidiary Guarantor; or  (d) the occurrence of a change in control, or other term of similar import used therein,  as defined in any Material Indebtedness Agreement.  “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, implementation or application thereof by any  Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether  or not having the force of law) by any Governmental Authority; provided that notwithstanding anything  herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests,  rules, guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules,  guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on  Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory  authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”,  regardless of the date enacted, adopted or issued.  “Class”, when used in reference to any Loan, refers to whether such Loans are Revolving Loans,  Term Loans, CapEx Loans, or Swingline Loans, and when used in reference to any Commitments, refers  to whether such Commitment is a Revolving Commitment, a Term Loan Commitment, or a CapEx Loan  Commitment.  “Closing Date” means the date of satisfaction or waiver of all of the conditions in Section 4.1.  “Code” means the Internal Revenue Code of 1986, as amended and including any successor U.S.  federal income tax statutes.  

 

9  “Collateral” means all assets or property, or rights, title and interests of any sort in which any Loan  Party has granted, or purported to grant, a security interest or other Lien to the Administrative Agent, for  the benefit of Secured Parties, pursuant to any of the Loan Documents; provided that in no event shall any  Excluded Property, as defined in a Security Agreement, be deemed “Collateral”.  “Commitments” means, individually or collectively, as the context may apply, the Revolving  Commitments, the Term Loan Commitments and the CapEx Loan Commitments.  “Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C.  § 1 et seq.), as  amended from time to time, together with the rules and regulations promulgated thereunder.  “Companies” means the Borrower and all Subsidiaries of the Borrower.  “Company” means the Borrower or any Subsidiary of the Borrower.  “Compliance Certificate” means a certificate substantially in the form of Exhibit B.  “Conforming Changes” means, with respect to either the use or administration of Daily Simple  SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any  technical, administrative or operational changes (including changes to the definition of “ABR,” the  definition of “Business Day,” the definition of “U.S. Government Securities Business Day,” the addition  of a concept of “interest period”, timing and frequency of determining rates and making payments of  interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability  and length of lookback periods, the applicability of Section 3.5 and other technical, administrative or  operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and  implementation of any such rate or to permit the use and administration thereof by the Administrative Agent  in a manner substantially consistent with market practice (or, if the Administrative Agent decides that  adoption of any portion of such market practice is not administratively feasible or if the Administrative  Agent determines that no market practice for the administration of any such rate exists, in such other manner  of administration as the Administrative Agent decides is reasonably necessary in connection with the  administration of this Agreement and the other Loan Documents).  “Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by  net income (however denominated) or that are franchise Taxes or branch profits Taxes.  “Consideration” means, in connection with an Acquisition, the aggregate consideration paid or to  be paid, including borrowed funds, cash, deferred payments, the issuance of securities or notes, the  assumption or incurring of liabilities (direct or contingent), the payment of consulting fees or fees for a  covenant not to compete and any other consideration paid or to be paid for such Acquisition.  “Consolidated” means the resultant consolidation of the financial statements of the Borrower and  its Subsidiaries in accordance with GAAP, including principles of consolidation consistent with those  applied in preparation of the consolidated financial statements referred to in Section 6.14 hereof.  “Consolidated Capital Expenditures” means, for any period, the amount of capital expenditures of  the Borrower and its Subsidiaries (specifically including any software development costs that are  capitalized), as determined on a Consolidated basis.  “Consolidated Depreciation and Amortization Charges” means, for any period, the aggregate of all  depreciation and amortization charges for fixed assets, leasehold improvements and general intangibles  

 

10  (specifically including goodwill) of the Borrower and its Subsidiaries for such period, as determined on a  Consolidated basis.  “Consolidated EBITDA” means, for any period, as determined on a Consolidated basis,  (a) Consolidated Net Earnings for such period plus, without duplication, the aggregate amounts deducted  in determining such Consolidated Net Earnings in respect of (i) Consolidated Interest Expense,  (ii) Consolidated Income Tax Expense, (iii) Consolidated Depreciation and Amortization Charges,  (iv) reasonable non-recurring non-cash losses not incurred in the ordinary course of business with  appropriate adjustments, reasonably acceptable to the Administrative Agent, (v) non-cash compensation  expenses recognized under Statement of Financial Accounting Standards 123R in connection with the  Borrower’s equity incentive stock option plan and restricted stock grants, and (vi) non-cash post-retirement  expenses minus retirement benefits paid in cash; minus, (b) to the extent included in Consolidated Net  Earnings for such period, non-recurring gains not incurred in the ordinary course of business.   “Consolidated Fixed Charges” means, for any period, as determined on a Consolidated basis, the  aggregate, without duplication, of (a) Consolidated Interest Expense paid in cash, and (b) scheduled  principal payments on Consolidated Funded Indebtedness (other than optional prepayments of the  Revolving Loans and the CapEx Loans), including payments on Capitalized Lease Obligations.  “Consolidated Funded Indebtedness” means, at any date, all Indebtedness (including, but not  limited to, current, long-term and subordinated Indebtedness, if any) of the Borrower and its Subsidiaries,  as determined on a Consolidated basis.  “Consolidated Income Tax Expense” means, for any period, as determined on a Consolidated basis,  all provisions for taxes based on the gross or net income of the Borrower and its Subsidiaries (including,  without limitation, any additions to such taxes, and any penalties and interest with respect thereto).  “Consolidated Interest Expense” means, for any period, the interest expense (including, without  limitation, capitalized interest, the “imputed interest” portion of Capitalized Lease Obligations, synthetic  leases and asset securitizations, if any, and excluding deferred financing costs) of the Borrower and its  Subsidiaries for such period, as determined on a Consolidated basis.  “Consolidated Net Earnings” means, for any period, the net income (loss) of the Borrower and its  Subsidiaries for such period, as determined on a Consolidated basis.  “Consolidated Net Worth” means, at any date, the stockholders’ equity of the Borrower and its  Subsidiaries, as determined as of such date on a Consolidated basis.  “Consolidated Unfunded Capital Expenditures” means, for any period, Consolidated Capital  Expenditures that are not directly financed by the Companies with (a) long-term Indebtedness (other than  Revolving Loans), or (b) Capitalized Lease Obligations.  “Control” means the possession, directly or indirectly, of the power to direct or cause the direction  of the management or policies of a Person, whether through the ability to exercise voting power, by contract  or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.  “Controlled Group” means a Company and each Person required to be aggregated with a Company  under Code Section 414(b), (c), (m) or (o).  “Credit Extension” means a borrowing of a Loan or the issuance, amendment, renewal or extension  of a Letter of Credit.  

 

11  “Daily Simple SOFR” means, for any day (a “SOFR Rate Day”), a rate per annum equal to the  greater of (a) SOFR for the day (such day, the “SOFR Determination Date”) that is five (5) U.S.  Government Securities Business Days prior to (i) if such SOFR Rate Day is a U.S. Government Securities  Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a U.S. Government Securities  Business Day, the U.S. Government Securities Business Day immediately preceding such SOFR Rate Day,  in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator’s Website,  and (b) the Floor.  If by 5:00 pm (New York City time) on the second (2nd) U.S. Government Securities  Business Day immediately following any SOFR Determination Date, the SOFR in respect of such SOFR  Determination Date has not been published on the SOFR Administrator’s Website and a Benchmark  Replacement Date with respect to Daily Simple SOFR has not occurred, then the SOFR for such SOFR  Determination Date will be SOFR as published in respect of the first preceding U.S. Government Securities  Business Day for which such SOFR was published on the SOFR Administrator’s Website; provided, that  any SOFR determined pursuant to this sentence shall be utilized for purposes of calculation of Daily Simple  SOFR for no more than five (5) consecutive SOFR Rate Days.  Any change in Daily Simple SOFR due to  a change in SOFR shall be effective from and including the effective date of such change in SOFR without  notice to the Borrower.  “Debtor Relief Laws” means the Bankruptcy Code, the Bankruptcy and Insolvency Act (Canada),  the Companies’ Creditors Arrangement Act (Canada), the Winding-Up and Restructuring Act (Canada) and  all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,  arrangement, rearrangement, receivership, insolvency, administration, suspension of payments,  reorganization, or similar debtor relief Laws of the United States, Canada or any other applicable  jurisdictions from time to time in effect.  “Default” means an event or condition that constitutes, or with the lapse of any applicable grace  period or the giving of notice or both would constitute, an Event of Default, and that has not been waived  by the Required Lenders (or, if required hereunder, all of the Lenders) in writing.  “Default Rate” means (a) when used with respect to any Loan, a rate per annum equal to two percent  (2%) per annum above the interest rate otherwise applicable to such Loan pursuant to this Agreement, (b)  when used with respect to Letter of Credit Fees, a rate equal to the Applicable Margin plus two percent  (2%) per annum and (c) when used with respect to any other Obligation, a rate per annum equal to two  percent (2%) per annum above the rate applicable to ABR Loans.  “Defaulting Lender” means, subject to Section 2.17(b), any Lender that (a) has failed, within two  (2) Business Days of the date required to be funded or paid, to (i) fund any portion of its Loans, (ii) fund  any portion of its participations in Letters of Credit or Swingline Loans, or (iii) pay over to the  Administrative Agent or any Lender any other amount required to be paid by it hereunder, unless, in the  case of clause (i) above, such Lender notified 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  identified and including the particular default, if any) has not been satisfied, (b) has notified the Borrower  or the Administrative Agent in writing, or has made a public statement to the effect, that it does not intend  or expect to comply with any of its funding obligations under this Agreement (unless such writing or public  statement indicates that such position is based on such Lender’s good faith determination that a condition  precedent (specifically identified and including the particular default, if any) to funding a loan under this  Agreement cannot be satisfied) or generally under other agreements in which it commits to extend credit,  (c) has failed, within three (3) Business Days after written request by the Administrative Agent, any Lender,  any Issuing Bank or the Swingline Lender, acting in good faith, to provide a certification in writing from  an authorized officer of such Lender that it will comply with its obligations (and is financially able to meet  such obligations) to fund prospective Loans and participations in then outstanding Letters of Credit and  Swingline Loans under this Agreement, provided that such Lender shall cease to be a Defaulting Lender  

 

12  pursuant to this clause (c) upon receipt of such written certification in form and substance satisfactory to it  and the Administrative Agent, or (d) has (i) become the subject of a proceeding under any Debtor Relief  Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the  benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets,  including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting  in such a capacity or (iii) become the subject of a Bail-In Action; provided that a Lender shall not be a  Defaulting Lender solely by virtue of the ownership or acquisition of any Equity Interest in that Lender or  any direct or indirect parent company thereof by a Governmental Authority so long as such ownership  interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the  United States or from the enforcement of judgments or writs of attachment on its assets or permit such  Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or  agreements made with such Lender.  Any determination by the Administrative Agent that a Lender is a  Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding  absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section  2.17(b)) upon delivery of written notice of such determination to the Borrower, each Issuing Bank, each  Swingline Lender and each Lender.  “Defined Benefit Plan” means any Canadian Pension Plan which contains a “defined benefit  provision”, as defined in subsection 147.1(1) of the Income Tax Act (Canada).   “Delaware Divided LLC” means any Delaware LLC which has been formed upon consummation  of a Delaware LLC Division.  “Delaware LLC” means any limited liability company organized or formed under the laws of the  State of Delaware.  “Delaware LLC Division” means the statutory division of any Delaware LLC into two or more  Delaware LLCs pursuant to Section 18-217 of the Delaware Limited Liability Company Act.  “Deposit Account” means a deposit account, as that term is defined in the UCC and includes a  demand, time, savings, passbook, or similar Account maintained with a bank, credit union, trust company,  or similar financial institution.  “Dollar” and “$” mean lawful money of the United States.  “Domestic Guarantor of Payment” means each of the Companies designated a “Domestic  Guarantor of Payment” on Schedule B hereto, each of which is executing and delivering a Guaranty of  Payment, and any other Domestic Subsidiary that shall deliver a Guaranty of Payment to the Administrative  Agent subsequent to the Closing Date.  “Domestic Real Property” means each parcel of the real estate owned by the Borrower or a  Domestic Guarantor of Payment that is set forth on Schedule C hereto, together with all improvements and  buildings thereon and all appurtenances, easements or other rights thereto belonging.  “Domestic Subsidiary” means a Subsidiary that is not a Foreign Subsidiary.  “Dormant Subsidiary” means a Company that (a) is not a Loan Party or the direct or indirect equity  holder of a Loan Party, (b) has aggregate assets of less than One Hundred Thousand Dollars ($100,000) (or  the foreign currency equivalent of such amount), (c) has no direct or indirect Subsidiaries with aggregate  assets, for such Company and all such Subsidiaries, of more than One Hundred Thousand Dollars  

 

13  ($100,000) (or the foreign currency equivalent of such amount), and (d) is not a Guarantor of Indebtedness  incurred pursuant to any Material Indebtedness Agreement.  “EEA Financial Institution” means (a) any credit institution or investment firm established in any  EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity  established in an EEA Member Country which is a parent of an institution described in clause (a) of this  definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of  an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with  its parent.  “EEA Member Country” means any of the member states of the European Union, Iceland,  Liechtenstein, and Norway.  “EEA Resolution Authority” means any public administrative authority or any Person entrusted  with public administrative authority of any EEA Member Country (including any delegee) having  responsibility for the resolution of any EEA Financial Institution.  “Electronic System” means any electronic system, including e-mail, e-fax, Syndtrak®, web portal  access for the Loan Parties, and any other Internet or extranet-based site, whether such electronic system is  owned, operated or hosted by the Administrative Agent and any of its respective Related Parties or any  other Person, providing for access to data protected by passcodes or other security system.  “Environmental Laws” means all provisions of law (including the common law), statutes,  ordinances, codes, rules, guidelines, policies, procedures, orders-in-council, regulations, permits, licenses,  judgments, writs, injunctions, decrees, orders, authorizations, certificates, approvals, registrations, awards  and standards promulgated by a Governmental Authority or by any court, agency, instrumentality,  regulatory authority or commission of any of the foregoing having the force and effect of law concerning  environmental health or safety and protection of natural resources, or regulation of the discharge of  substances including without limitation Hazardous Materials into, the environment.  “Environmental Liability” means any liability, contingent or otherwise (including any liability for  damages, costs of environmental remediation, fines, penalties or indemnities), whether based in contract,  tort, implied or express warranty, strict liability, criminal or civil statute or common law, directly or  indirectly relating to, resulting from or based upon (a) any 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) release or threatened release of any Hazardous Materials 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 Permits” means all permits, licenses, authorizations, certificates, approvals or  registrations required by any Governmental Authority under any Environmental Laws.  “Equipment” means equipment, as that term is defined in the UCC or the PPSA (as applicable).  “Equity Interests” means, with respect to any Person, shares of capital stock of (or other ownership  or profit interests in) such Person, 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, 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 any other ownership or profit interests in such Person (including partnership,  

 

14  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.  “ERISA” means the Employee Retirement Income Security Act of 1974, as the same may be  amended or supplemented from time to time, and any successor statute of similar import and the rules and  regulations promulgated thereunder as from time to time in effect.  “ERISA Event” means (a) the existence of a condition or event with respect to an ERISA Plan that  presents a significant risk of the imposition of an excise tax or any other material liability on a Company or  of the imposition of a Lien on the assets of a Company; (b) the engagement by a Company in a non-exempt  “prohibited transaction” (as defined under ERISA Section 406 or Code Section 4975) or a breach of a  fiduciary duty under ERISA that in either case could result in material liability to a Company; (c) the  application by a Controlled Group member for a waiver from the minimum funding requirements of Code  Section 412 or ERISA Section 302 or a Controlled Group member is required to provide security under  Code Section 412(c)(4) or ERISA Section 302(c)(4); (d) the occurrence of a Reportable Event with respect  to any Pension Plan as to which notice is required to be provided to the PBGC; (e) the withdrawal by a  Controlled Group member from a Multiemployer Plan in a “complete withdrawal” or a “partial withdrawal”  (as such terms are defined in ERISA Sections 4203 and 4205, respectively); (f) the occurrence of a  Multiemployer Plan being in endangered or critical status, as defined in Section 432 of the Code; (g) the  failure of an ERISA Plan (and any related trust) that is intended to be qualified under Code Sections 401  and 501 to be so qualified or the failure of any “cash or deferred arrangement” under any such ERISA Plan  to meet the requirements of Code Section 401(k) if such failure is reasonably likely to result in a material  liability; (h) the taking by the PBGC of any steps to terminate a Pension Plan or appoint a trustee to  administer a Pension Plan, or the taking by a Controlled Group member of any steps to terminate a Pension  Plan; (i) the failure by a Controlled Group member or an ERISA Plan to satisfy, in all material respects,  any requirements of law applicable to an ERISA Plan; (j) the commencement, existence or threatening of  a material claim, action, suit, audit or investigation with respect to an ERISA Plan, other than a routine  claim for benefits; or (k) any incurrence by or any expectation of the incurrence by a Controlled Group  member of any liability for post-retirement benefits under any Welfare Plan in excess of Fifteen Million  Dollars ($15,000,000), other than as required by ERISA Section 601, et. seq. or Code Section 4980B other  than limited payment in connection with severance benefits or with respect to senior executives of a  Company.  “ERISA Plan” means an “employee benefit plan” (within the meaning of ERISA Section 3(3)) that  a Controlled Group member at any time sponsors, maintains, contributes to, has liability with respect to or  has an obligation to contribute to such plan.  “Erroneous Payment” has the meaning specified in Section 8.14(a).  “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.   “Event of Default” has the meaning specified in Section 7.1.  “Exchange Act” means the Securities Exchange Act of 1934, as amended.  “Excluded Swap Obligations” 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  

 

15  failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange  Act (determined after giving effect to any “keepwell, support or other agreement” for the benefit of such  Loan Party and any and all guarantees of such Loan Party’s Swap Obligations by other Loan Parties) at the  time the guarantee of such Loan Party, or a grant by such Loan Party of a security interest, becomes effective  with respect to such Swap Obligation.  If a Swap Obligation arises under a master agreement governing  more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is  attributable to swaps for which such guarantee or security interest is or becomes excluded in accordance  with the first sentence of this definition.  “Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or  required to be withheld or deducted from payment to a Recipient, (a) Taxes imposed on or measured by net  income (however denominated and, for greater certainty, including the Canada Recovery Dividend),  franchise Taxes and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being  organized under the laws of, or having its principal office or its lending office located in, the jurisdiction  imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) U.S.  federal withholding Taxes imposed on amounts payable to or for the account of any Lender with respect to  an applicable interest in a Loan or Commitment pursuant to a Law in effect on the date on which (i) a  Lender acquires such interest in the Loan or Commitment or (ii) a Lender changes its lending office, except  in each case to the extent that, pursuant to Section 3.1, amounts with respect to such Taxes were payable  either to such Lender’s assignor immediately before such Lender became a party hereto or to a Lender  immediately before it changed its lending office, (c) Canadian federal withholding Taxes imposed on a  payment as a result of having been made to a Recipient that, at the time of making such payment, (i) is a  person with which a Loan Party does not deal at arm’s length (for the purposes of the Income Tax Act  (Canada)), or (ii) is a “specified shareholder” (as defined in subsection 18(5) of the Income Tax Act  (Canada)) of a Loan Party or does not deal at arm’s length (for the purposes of the Income Tax Act  (Canada)) with such a “specified shareholder”, except where (A) the non-arm’s length relationship or (B)  such Recipient being a “specified shareholder” of a Loan Party or not dealing at arm’s length with a  “specified shareholder” of a Loan Party, as applicable, arises in connection with or as a result of the  Recipient having become a party to, received or perfected a security interest under or received or enforced  any rights under, any Loan Document, (d) Taxes attributable to such Recipient’s failure to comply with  Section 3.1(f) and (e) any withholding Taxes imposed pursuant to FATCA.  “Existing Letter of Credit” means that certain Irrevocable Standby Letter of Credit No.  IS000148682U originally dated October 27, 2020 and currently expiring June 30, 2023 and issued by Wells  Fargo Bank, National Association in favor of Liberty Mutual Insurance Company as beneficiary, in the face  amount of $160,000.  “Facility” means the Term Facility, the Revolving Facility, or the CapEx Facility, as the context  may require.  “FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any  amended or successor version that is substantially comparable and not materially more onerous to comply  with), any current or future regulations or official interpretations thereof and any agreement entered into  pursuant to Section 1471(b)(1) of the Code, and any fiscal or regulatory legislation, rules or practices  adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental  Authorities and implementing such Sections of the Code.  “Federal Funds 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 shall be set forth on  the NYFRB’s Website from time to time, and published on the next succeeding Business Day by the  

 

16  NYFRB as the effective federal funds rate; provided that, if the Federal Funds Rate as so determined would  be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.  “Federal Reserve Board” means the Board of Governors of the Federal Reserve System of the  United States.  “Final CapEx Availability Period” shall mean the period beginning on February 1, 2026, through  and including January 31, 2027.  “Financial Officer” means any of the following officers: chief executive officer, president, chief  financial officer or treasurer.  Unless otherwise qualified, all references to a Financial Officer in this  Agreement shall refer to a Financial Officer of the Borrower.  “Fixed Charge Coverage Ratio” means, as determined for the most recently completed four fiscal  quarters of the Borrower, on a Consolidated basis, the ratio of (a) Consolidated EBITDA, minus the total  of (i) Consolidated Unfunded Capital Expenditures (other than Excluded Growth CapEx and for the  applicable periods set forth in the table below), (ii) Capital Distributions and other Restricted Payments  actually made, and (iii) net Consolidated Income Tax Expense paid in cash; to (b) Consolidated Fixed  Charges.  For each fiscal quarter listed below, Excluded Growth CapEx shall be deemed to be the amount  set forth below opposite of such fiscal quarter:  Fiscal Quarter Ending Excluded Growth CapEx  December 31, 2021  $1,694,000  March 31, 2022 $2,090,000  June 30, 2022 $2,424,000  “Flood Insurance Laws” means, collectively (a) the National Flood Insurance Reform Act of 1994  (which comprehensively revised the National Flood Insurance Act of 1968 and the Flood Disaster  Protection Act of 1973), as now or hereafter in effect or any successor statute thereto, (b) the Flood  Insurance Reform Act of 2004, as now or hereafter in effect or any successor statute thereto, and (c) the  Biggert-Waters Flood Insurance Reform Act of 2012, as now or hereafter in effect or any successor statute  thereto.  “Floor” means a rate of interest equal to 0.00%.  “Foreign Benefit Plan” means each material plan, fund, program or policy established under the  law of a jurisdiction other than the United States or Canada (or a state, province, territory or local  government thereof), whether formal or informal, funded or unfunded, insured or uninsured, providing  employee benefits, including medical, hospital care, dental, sickness, accident, disability, life insurance,  pension, retirement or savings benefits, under which one or more Companies have any liability with respect  to any employee or former employee, but excluding any Foreign Pension Plan.  “Foreign Guarantor of Payment” means each of the Foreign Subsidiaries set forth on Schedule B  hereto that shall have been designated a “Foreign Guarantor of Payment”, that are each executing and  delivering a Guaranty of Payment, or any other Foreign Subsidiary that shall execute and deliver a Guaranty  of Payment to the Administrative Agent. For avoidance of doubt, the Canadian Subsidiary Guarantor is a  Foreign Guarantor of Payment.  

 

17  “Foreign Lender” means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person,  and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a  jurisdiction other than that in which the Borrower is a resident for tax purposes.  “Foreign Obligations” means any Secured Obligations related to, or incurred in connection with,  Loans made to, Letters of Credit issued for the benefit of, Bank Product Obligations of, or Hedge  Agreements executed by, any Foreign Subsidiary.  “Foreign Pension Plan” means a pension plan required to be registered under the law of a  jurisdiction other than the United States or Canada (or a state or a province or territory or local government  thereof), that is maintained or contributed to by one or more Companies for their employees or former  employees, other than a plan sponsored by a Governmental Authority.  “Foreign Subsidiary” means a Subsidiary that is organized under the laws of any jurisdiction other  than the United States, any state thereof or the District of Columbia.  “Fronting Exposure” means at any time there is a Defaulting Lender, (a) with respect to any Issuing  Bank, such Defaulting Lender’s Applicable Percentage of the outstanding Letter of Credit Exposure with  respect to Letters of Credit issued by such Issuing Bank other than Letter of Credit Exposure as to which  such Defaulting Lender’s participation obligation has been reallocated to the other Lenders or Cash  Collateralized in accordance with the terms hereof, and (b) such Defaulting Lender’s Applicable Percentage  of outstanding Swingline Loans other than Swingline Loans as to which such Defaulting Lender’s  participation obligation has been reallocated to other Lenders.  “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, bonds and similar extensions of credit in  the ordinary course of its activities.  “GAAP” means generally accepted accounting principles in the United States set forth in the  opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified  Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or  such other principles as may be approved by a significant segment of the accounting profession in the  United States, that are applicable to the circumstances as of the date of determination, consistently applied.  “Governmental Authority” means the government of the United States, Canada or any other nation,  or of any political subdivision thereof, whether state, provincial, territorial or local, and any agency,  authority, instrumentality, regulatory body, court, central bank or other entity exercising executive,  legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government  (including any supra-national bodies such as the European Union or the European Central Bank).  “Guarantor” means a Person that shall have pledged its credit or property in any manner for the  payment or other performance of the indebtedness, contract or other obligation of another and includes  (without limitation) any guarantor (whether of payment or of collection), surety, co-maker, endorser or  Person that shall have agreed conditionally or otherwise to make any purchase, loan or investment in order  thereby to enable another to prevent or correct a default of any kind.  “Guarantor of Payment” means a Domestic Guarantor of Payment or Foreign Guarantor of  Payment, or any other Person that shall execute and deliver a Guaranty of Payment to the Administrative  Agent.  

 

18  “Guaranty of Payment” means each Guaranty of Payment executed and delivered on or after the  Closing Date in connection with this Agreement by one or more Loan Parties, as the same may from time  to time be amended, restated or otherwise modified. For the avoidance of doubt, each of the U.S. Guaranty  and Security Agreement and Canadian Guarantee and Security Agreement are each a Guaranty of Payment.  “Guaranty of Payment Joinder” means each Guaranty of Payment Joinder, executed and delivered  by a Loan Party for the purpose of adding such Guarantor of Payment as a party to a previously executed  Guaranty of Payment.  “Hazardous Materials” means petroleum and petroleum products, and compounds containing them,  including, without limitation, gasoline, diesel fuel and oil, toxic, corrosive, infectious, carcinogenic,  mutagenic, explosive and flammable materials, substances, or wastes, or any constituents thereof,  radioactive materials, polychlorinated biphenyls and compounds containing them, lead and lead-based  paint, asbestos or asbestos-containing materials in any form that is or could become friable, urea  formaldehyde foam insulation, radon gas, and any substance, material or waste (whether solid, liquid or  gas) which is or becomes regulated by or under any Environmental Law.  “Hedge Agreement” means any (a) hedge agreement, interest rate swap, cap, collar or floor  agreement, or other interest rate management device entered into by a Company with any Person in  connection with any Indebtedness of such Company, or (b) currency or commodity swap agreement,  forward currency purchase agreement, forward commodity agreements or similar arrangement or  agreement designed to protect against fluctuations in currency exchange rates or commodity price  fluctuations entered into by a Company with any Person.   “Hedge Bank” means any Person that, at the time it enters into a Hedge Agreement with a Company  as permitted hereunder, is a Lender or an Affiliate of a Lender, in its capacity as a party to such Hedge  Agreement.  “Huntington” means The Huntington National Bank, in its individual capacity, and its successors.  “Indebtedness” means, for any Company, without duplication, (a) all obligations to repay borrowed  money, direct or indirect, incurred, assumed, or guaranteed, (b) all obligations in respect of the deferred  purchase price of property or services (other than trade accounts payable in the ordinary course of business),  (c) all obligations under conditional sales or other title retention agreements, (d) all obligations (contingent  or otherwise) under any letter of credit or banker’s acceptance, (e) all net obligations under any Hedge  Agreement, (f) all Attributable Indebtedness of such Company, (g) all obligations of such Company with  respect to asset securitization financing programs to the extent that there is recourse against such Company  or such Company is liable (contingent or otherwise) under any such program, (h) all obligations to advance  funds to, or to purchase assets, property or services from, any other Person in order to maintain the financial  condition of such Person, (i) all indebtedness of the types referred to in subparts (a) through (h) above of  any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability  company) in which such Company is a general partner or joint venturer, unless such indebtedness is  expressly made non-recourse to such Company, (j) any other transaction (including forward sale or  purchase agreements) having the commercial effect of a borrowing of money entered into by such Company  to finance its operations or capital requirements, and (k) any guaranty of any obligation described in clauses  (a) through (j) above.  “Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to  any payment made by or on account of any obligation of any Loan Party under any Loan Document and  (b) to the extent not otherwise described in clause (a), Other Taxes.  

 

19  “Indemnitee” has the meaning specified in Section 9.4(b).  “Initial CapEx Availability Period” shall mean the period beginning on the Closing Date through  and including January 31, 2025.  “Information” has the meaning specified in Section 9.7.  “Intellectual Property Security Agreement” means that certain Acknowledgement of Security  Interest in Trademarks dated as of the Closing Date between the Borrower and the Administrative Agent,  and any other Acknowledgement of Security Interest executed after the Closing Date between a Loan Party  and the Administrative Agent, as the same may from time to time be amended, restated or otherwise  modified.   “Interest Election Request” means a request by the Borrower to convert a Borrowing in accordance  with Section 2.7, which shall be substantially in the form of Exhibit A-2 or such other form as may be  approved by the Administrative Agent, appropriately completed and signed by a Financial Officer of the  Borrower.  “Interest Payment Date” means the 10th day of each calendar month and the Maturity Date of the  Facility under which such Loan was made (with Swingline Loans being deemed made under the Revolving  Facility for purposes of this definition).  “Inventory” means inventory, as that term is defined in the UCC or the PPSA (as applicable).  “IRS” means the United States Internal Revenue Service.  “ISP” means the International Standby Practices, International Chamber of Commerce Publication  No. 590 (or such later version thereof as may be in effect at the applicable time).  “Issuing Bank” means individually and collectively, each of Huntington, in its capacity as the issuer  of Letters of Credit hereunder and any other Revolving Lender from time to time designated by the  Borrower as an Issuing Bank, with the consent of such Lender and the Administrative Agent, and their  respective successors in such capacity as permitted hereunder.   “Laws” means, collectively, all international, foreign, federal, provincial, territorial, state and local  statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents  or authorities or the like, including the interpretation or administration thereof by any Governmental  Authority charged with the enforcement, interpretation or administration thereof, and all applicable  administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements  with, any Governmental Authority.  “LC Collateral Account” has the meaning specified in Section 2.6(j).  “LC Disbursement” means a payment made by an Issuing Bank pursuant to a Letter of Credit.  “Lenders” means the Persons listed on Schedule A and any other Person that becomes a party hereto  as a Lender pursuant to an Assignment Agreement, but excluding any such Person that ceases to be a Lender  pursuant to an Assignment Agreement or otherwise. Unless the context otherwise requires, the term  “Lenders” includes the Swingline Lender.   “Letter of Credit” has the meaning specified in Section 2.6(a).  

 

20  “Letter of Credit Application” means an application and agreement for the issuance or amendment  of a Letter of Credit in the form from time to time in use by the relevant Issuing Bank.  “Letter of Credit Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of  all outstanding Letters of Credit at such time, including any automatic or scheduled increases provided by  the terms of such Letters of Credit, determined without regard to whether any conditions to drawing could  be met at that time, plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed  on behalf of the Borrower at such time.  The Letter of Credit Exposure of any Revolving Lender at any time  shall be its Applicable Percentage of the total Letter of Credit Exposure at such time.  For all purposes of  this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount  may still be drawn thereunder by reason of the operation of Article 29(a) of the UCP or Rule 3.13 or Rule  3.14 of the ISP or similar terms of the Letter of Credit itself, or if compliant documents have been presented  but not yet honored, such Letter of Credit shall be deemed to be “outstanding” and “undrawn” in the amount  so remaining available to be paid, and the obligations of the Borrower and each Revolving Lender shall  remain in full force an effect until the applicable Issuing Bank and the Lenders shall have no further  obligations to make any payments or disbursements under any circumstances with respect to any Letter of  Credit.  “Letter of Credit Fees” has the meaning specified in Section 2.12(b).  “Letter of Credit Sublimit” means an amount equal to the lesser of (a) $10,000,000 and (b) the  Revolving Commitments.  “Leverage Ratio” means, as determined on a Consolidated basis, the ratio of (a) Consolidated  Funded Indebtedness (as determined on the last day of the most recently completed fiscal quarter of the  Borrower); to (b) Consolidated EBITDA (for the most recently completed four fiscal quarters of the  Borrower).  “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,  encumbrance, easement, right-of-way or other encumbrance on title to real property, lien (statutory or  other), charge, or preference, priority or other security interest or preferential arrangement in the nature of  a security interest of any kind or nature whatsoever (including any conditional sale or other title retention  agreement, and any financing lease having substantially the same economic effect as any of the foregoing).  “Loan” or “Loans” means, individually or collectively, as the context may require, any Revolving  Loan, any Term Loan or any CapEx Loan.  “Loan Documents” means, collectively, this Agreement, the Notes, each Guaranty of Payment,  each Guaranty of Payment Joinder, each Security Document, the Perfection Certificate, the Administrative  Agent Fee Letter, each Letter of Credit Application, and all other instruments, agreements, documents and  writings executed and delivered, in each case, by any Loan Party in connection with any of the foregoing  (other than, for the avoidance of doubt, (i) Bank Product Agreements or (ii) Hedge Agreements entered by  the Companies and a Hedge Bank).  “Loan Parties” means, collectively, the Borrower and any Subsidiary or other Person that is a  Guarantor of Payment from time to time.  “Management Fees” means management, consulting or other similar fees paid by any Company to  any Affiliate of any Company.  

 

21  “Material Adverse Effect” means a material adverse effect on (a) the business, assets, liabilities  (actual or contingent), operations, or condition (financial or otherwise)  of the Borrower, (b) the business,  assets, liabilities (actual or contingent), operations, or condition (financial or otherwise)  of the Companies  taken as a whole, (c) the rights and remedies of the Administrative Agent or the Lenders under any Loan  Document, (d) the ability of any Loan Party to perform its obligations under any Loan Document to which  it is a party, or (e) the legality, validity, binding effect or enforceability against any Loan Party of any Loan  Document to which it is a party.  “Material Domestic Recovery Determination Notice” has the meaning specified in Section  2.8(b)(iii)(A).  “Material Domestic Recovery Event” means (a) any casualty loss in respect of assets of the  Borrower or a Domestic Subsidiary covered by casualty insurance, and (b) any compulsory transfer or  taking under threat of compulsory transfer of any asset of the Borrower or a Domestic Subsidiary by any  Governmental Authority; provided that, in the case of either subpart (a) or (b) hereof, the proceeds received  by the Borrower or such Domestic Subsidiary from such loss, transfer or taking exceeds Five Hundred  Thousand Dollars ($500,000).  “Material Foreign Recovery Determination Notice” means that term as defined in Section  2.8(b)(iii)(B) hereof.  “Material Foreign Recovery Event” means (a) any casualty loss in respect of assets of a Foreign  Subsidiary covered by casualty insurance, and (b) any compulsory transfer or taking under threat of  compulsory transfer of any asset of a Foreign Subsidiary by any Governmental Authority; provided that, in  the case of either subpart (a) or (b) hereof, the proceeds received by such Companies from such loss, transfer  or taking exceeds Five Hundred Thousand Dollars ($500,000).  “Material Indebtedness Agreement” means any debt instrument, lease (capital, operating or  otherwise), guaranty, contract, commitment, agreement or other arrangement evidencing or entered into in  connection with any Indebtedness of any Company or the Companies equal to or in excess of the amount  of Seven Hundred Fifty Thousand Dollars ($750,000).  “Maturity Date” means the Revolving Maturity Date, the Term Loan Maturity Date or the CapEx  Loan Maturity Date, as applicable.  “Maximum Rate” has the meaning specified in Section 2.11(d).  “Mexican Subsidiary” means a Foreign Subsidiary organized under the laws of Mexico, or any  political subdivision thereof.  “Moody’s” means Moody’s Investors Service, Inc., and any successor to such company.  “Multiemployer Plan” means a Pension Plan that is subject to the requirements of Subtitle E of  Title IV of ERISA.  “Non-Consenting Lender” means any Lender that does not approve any consent, waiver or  amendment that (a) requires the approval of all or all directly affected Lenders in accordance with the terms  of Section 9.1 and (b) has been approved by the Required Lenders and, in the case of amendments that  require the approval of all or all affected Lenders of a particular Class, Required Revolving Lenders,  Required Term Lenders, or Required CapEx Lenders as applicable.    

 

22  “Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such  time.  “Non-Loan Party” means a Company that is not a Loan Party.  “Notes” means a Revolving Note, a Swingline Loan Note, a Term Note, or a CapEx Note, as the  context may require.  “NYFRB” means the Federal Reserve Bank of New York.  “NYFRB’s Website” means the website of the NYFRB at http://www.newyorkfed.org, or any  successor source.  “Obligations” means all unpaid principal of and accrued interest on the Loans, all reimbursement  obligations in respect of the Letters of Credit and any accrued interest thereon, and all fees, expenses,  reimbursements, indemnities and other debts, liabilities and obligations (including interest and fees  accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding,  regardless of whether allowed or allowable in such proceeding) of any of the Loan Parties to the  Administrative Agent, any Lender, any Issuing Bank, the Swingline Lender or any Indemnitee arising or  incurred under this Agreement or any of the other Loan Documents or in respect of any of the Loans or  Letters of Credit, in each case, whether absolute or contingent, due or to become due, now existing or  hereafter arising, direct or indirect, joint or several, liquidated or unliquidated, or arising by contract,  operation of law or otherwise.  “OFAC” means the Office of Foreign Assets Control of the United States Department of the  Treasury.  “Operating Leases” means all real or personal property leases under which any Company is bound  or obligated as a lessee or sublessee and which, under GAAP, are not required to be capitalized on a balance  sheet of such Company.  “Organizational 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, joint venture,  trust or other form of business entity, the partnership, joint venture or other applicable agreement of  formation or organization and, if applicable, 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 Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a  present or former connection between such Recipient and the jurisdiction imposing such Tax (other than  connections arising solely from such Recipient having executed, delivered, become a party to, performed  its obligations under, received payments under, received or perfected a security interest under, engaged in  any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any  Loan or Loan Documents).  “Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing  or similar Taxes that arise from any payment made under, from the execution, delivery, performance,  enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with  

 

23  respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with  respect to an assignment (other than an assignment made pursuant to Section 3.7(b)).  “Participant” has the meaning specified in Section 9.6(d).  “Participant Register” has the meaning specified in Section 9.6(d).  “PATRIOT Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law  October 26, 2001)).  “PBGC” means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of  its functions under ERISA.  “Pension Plan” means an ERISA Plan that is a “pension plan” (within the meaning of ERISA  Section 3(2)).  “Perfection Certificate” means the Perfection Certificate dated as of the Closing Date by the Loan  Parties in favor of the Administrative Agent.  “Permitted Foreign Subsidiary Loans and Investments” means:   (a) the investments by the Borrower or a Domestic Subsidiary in a Foreign Subsidiary,  existing as of the Closing Date and set forth on Schedule 5.11 hereto;  (b)  the loans by the Borrower or a Domestic Subsidiary to a Foreign Subsidiary, in  such amounts existing as of the Closing Date and set forth on Schedule 5.11 hereto (and any  extension, renewal or refinancing thereof but, only to the extent that the principal amount thereof  does not increase after the Closing Date);  (c)  any investment by a Foreign Subsidiary in, or loan from a Foreign Subsidiary to,  or guaranty from a Foreign Subsidiary of Indebtedness of, a Company that is a Loan Party;  (d) any investment or loan by the Borrower or a Domestic Subsidiary in or to, or  guaranty (excluding any guaranty of the Obligations pursuant to the Loan Documents, but  specifically including any payments made on Foreign Obligations absent written consent or  demand from the Administrative Agent to the Borrower or such Domestic Subsidiary) from the  Borrower or a Domestic Subsidiary of Indebtedness of, the Canadian Subsidiary Guarantor, made  after the Closing Date;  (e) any investment or loan by the Borrower or a Domestic Subsidiary in or to, or  guaranty (excluding any guaranty of the Obligations pursuant to the Loan Documents, but  specifically including any payments made on Foreign Obligations absent written consent or  demand from the Administrative Agent to the Borrower or such Domestic Subsidiary) from the  Borrower or a Domestic Subsidiary of Indebtedness of, a Mexican Subsidiary, made after the  Closing Date and only in the ordinary course of business, up to the aggregate amount not to exceed  (in addition to amounts permitted pursuant to Section 5.11(vii) hereof) (i) in any given fiscal year  (A) Fifteen Million Dollars ($15,000,000) plus (B) amounts not expended in any prior fiscal year  and (ii) Twenty Five Million Dollars ($25,000,000) at any time outstanding; and   (f) any investment by a Foreign Subsidiary that is a Non-Loan Party in, or loan by a  Foreign Subsidiary that is a Non-Loan Party to, a Company.   

 

24  “Permitted Investment” means:  (a) the investments of a Company in the stock (or other debt or equity instruments) of  a Person (other than a Company) existing as of the Closing Date and as set forth on Schedule 5.11  hereto; and  (b) an investment of a Company in the stock (or other debt or equity instruments) of a  Person (other than a Company), so long as (i) the Company making the investment is a Loan Party;  and (ii) the aggregate amount of all such investments of all Companies made after the Closing Date  does not exceed, at any time, an aggregate amount (as determined when each such investment is  made) of Five Hundred Thousand Dollars ($500,000).  “Person” means any individual, sole proprietorship, partnership, limited partnership, joint venture,  unincorporated organization, company, corporation, limited liability company, unlimited liability company,  institution, trust, estate, Governmental Authority or any other entity.  “PPSA” means the Personal Property Security Act (Ontario), including the regulations thereto,  provided that, if perfection or the effect of perfection or non-perfection or the priority of any Lien created  hereunder on the Collateral is governed by the personal property security legislation or other applicable  legislation with respect to personal property security, in effect in a jurisdiction other than Ontario, “PPSA”  means the Personal Property Security Act or such other applicable legislation (including the Civil Code of  Quebec) in effect from time to time in such other jurisdiction for the purposes of the provisions hereof  relating to such perfection, effect of perfection or non-perfection or priority.  “Prime Rate” means the rate of interest publicly announced from time to time by the Administrative  Agent as its “prime rate”, which rate may not be the lowest or most favorable rate then being charged  commercial borrowers or others by the Administrative Agent.  Any change in the Prime Rate announced  by the Administrative Agent shall take effect at the opening of business on the day specified in the public  announcement of such change.  Notwithstanding the foregoing, if the Prime Rate shall be less than zero,  such rate shall be deemed to be zero for purposes of this Agreement.  “Projections” has the meaning specified in Section 6.20.  “PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as  any such exemption may be amended from time to time.   “Recipient” means the Administrative Agent, any Lender, any Issuing Bank or any other recipient  of any payment to be made by or on account of any obligation of any Loan Party under any Loan Document.  “Register” has the meaning specified in Section 9.6(c).  “Related Expenses” means any and all costs, liabilities and expenses (including, without limitation,  losses, damages, penalties, claims, actions, reasonable attorneys’ fees, legal expenses, judgments, suits and  disbursements) (a) incurred by the Administrative Agent, or imposed upon or asserted against the  Administrative Agent or any Lender, in any attempt by the Administrative Agent and the Lenders to  (i) enforce this Agreement or any other Loan Document or obtain, preserve, perfect or enforce any Loan  Document or any security interest evidenced by any Loan Document; (ii) obtain payment, performance or  observance of any and all of the Secured Obligations; or (iii) maintain, insure, audit, collect, preserve,  repossess or dispose of any of the Collateral or any part thereof, including, without limitation, costs and  expenses for appraisals, assessments and audits of any Company or any such collateral; or (b) incidental or  

 

25  related to clause (a) above, including, without limitation, interest thereupon from the date incurred, imposed  or asserted until paid at the Default Rate.  “Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners,  directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of  such Person and of such Person’s Affiliates.  “Related Writing” means each Loan Document and any other assignment, mortgage, security  agreement, guaranty agreement, subordination agreement, financial statement, audit report or other writing  furnished by any Loan Party, or any of its officers, to the Administrative Agent or the Lenders pursuant to  or otherwise in connection with this Agreement; provided that no Bank Product Agreement or Hedge  Agreement shall constitute a Related Writing hereunder.  “Relevant Governmental Body” means the Federal Reserve Board or the NYFRB, or a committee  officially endorsed or convened by the Federal Reserve Board or the NYFRB, or any successor thereto.  “Removal Effective Date” has the meaning specified in Section 8.6(b).  “Reportable Event” means a “reportable event” as that term is defined in Title IV of ERISA, except  actions of general applicability by the Secretary of Labor under Section 110 of such Act.  “Required Lenders” means, at any time, Lenders having unused Commitments, Revolving  Exposure, outstanding Term Loans and outstanding CapEx Loans representing more than 66.67% of the  total unused Commitments, Revolving Exposure, outstanding Term Loans and outstanding CapEx Loans  of all Lenders (in each case, excluding those of Defaulting Lenders).  “Required CapEx Lenders” means, at any time, Lenders having unused CapEx Loan Commitments,  and outstanding CapEx Loans representing more than 66.67% of the total unused CapEx Loan  Commitments and outstanding CapEx Loans of all Lenders (in each case, excluding those of Defaulting  Lenders).  “Required Revolving Lenders” means, at any time, Lenders having unused Revolving  Commitments and Revolving Exposure representing more than 66.67% of the total unused Revolving  Commitments and Revolving Exposure of all Lenders (in each case, excluding those of Defaulting  Lenders).  “Required Term Lenders” means, at any time, Lenders having unused Term Loan Commitments,  and outstanding Term Loans representing more than 66.67% of the total unused Term Loan Commitments  and outstanding Term Loans of all Lenders (in each case, excluding those of Defaulting Lenders).  “Resignation Effective Date” has the meaning specified in Section 8.6(a).  “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial  Institution, a UK Resolution Authority.    “Restricted Payment” means, with respect to any Company, (a) any Capital Distribution, (b) any  amount paid by such Company in repayment, redemption, retirement or repurchase, directly or indirectly,  of any Subordinated Indebtedness, or (c) any amount paid by such Company in respect of Management  Fees or any other similar arrangement with any equity holder (other than a Company) of a Company or an  Affiliate of a Company.  

 

26  “Revolving Commitment” means with respect to each Revolving Lender on any date, the  commitment of such Revolving Lender to make Revolving Loans and purchase participations in Letters of  Credit and Swingline Loans, in an aggregate principal amount at any one time outstanding not to exceed  the amount set forth opposite such Revolving Lender’s name on Schedule A under the caption “Revolving  Commitment” or opposite such caption in the Assignment Agreement pursuant to which such Revolving  Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in  accordance with this Agreement. “Revolving Commitments” means the aggregate Revolving Commitment  of the Revolving Lenders.  “Revolving Exposure” means, at any time, with respect to any Revolving Lender, the sum of the  outstanding principal amount of such Lender’s Revolving Loans, such Lender’s Letter of Credit Exposure  and such Lender’s Swingline Exposure.  “Revolving Facility” means the Revolving Commitments and the extensions of credit made  thereunder.  “Revolving Lender” means a Lender having a Revolving Commitment or, if the Revolving  Commitments have expired or terminated, having Revolving Exposure.   “Revolving Loan” has the meaning specified in Section 2.1(a).  “Revolving Maturity Date” means the earlier to occur of (a) July 22, 2027 or (b) such other date on  which the Revolving Commitments are terminated pursuant to this Agreement.  “Revolving Note” means a promissory note executed by the Borrower in favor of any Revolving  Lender in the form of Exhibit C-1 evidencing the Revolving Loans of such Revolving Lender.  “Sanctioned Country” means at any time, a country or territory which is itself the subject or target  of any Sanctions (including Crimea, Cuba (only with respect to Loan Parties organized under the laws of  the U.S., any state thereof or the District of Columbia), Iran, North Korea, Sudan and Syria).  “Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of  designated Persons (including, without limitation under Executive Order No. 13224) maintained by OFAC,  the U.S. Department of State, or other relevant sanctions authority, or any other Person with which any  Lender is prohibited from dealing or otherwise engaging in any transaction by any Sanctions, (b) any Person  operating, organized or resident in a Sanctioned Country, (c) any Canadian Blocked Person, or (d) any  Person owned directly or indirectly by any such Person or Persons described in clauses (a), (b) or (c).  “Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or  enforced from time to time by the U.S. government (including those administered by OFAC), the federal  government of Canada or other relevant sanctions authority, including without limitation those arising  under Executive Order No. 13224, the USA Patriot Act (Public Law 107-56), the Bank Secrecy Act (Public  Law 91-508), the Trading with the Enemy Act (50 U.S.C. App. Section 1 et. Seq.), the International  Emergency Economic Powers Act (50 U.S.C. Section 1701 et. seq.) and the sanction regulations  promulgated pursuant thereto, as well as any laws related to prevention and detection of money laundering  in 18 U.S.C. Sections 1956 and 1957 (as any of the foregoing may from time to time be amended, renewed,  extended or replaced).  “SEC” means the Securities and Exchange Commission of the United States.  

 

27  “Second CapEx Availability Period” shall mean the period beginning on February 1, 2025, through  and including January 31, 2026.  “Secured Obligations” means, collectively, (a) the Obligations, (b) all obligations and liabilities of  the Companies owing to a Hedge Bank under Hedge Agreements, and (c) all Bank Product Obligations  owing to a Lender (or an entity that is an Affiliate of a then existing Lender) under Bank Product  Agreements; provided that Secured Obligations of a Loan Party shall not include Excluded Swap  Obligations owing from such Loan Party.  “Secured Parties” means (a) the Administrative Agent, (b) the Lenders, (c) each Lender or Affiliate  of a Lender party to a Bank Product Agreement with a Company, (d) each Hedge Bank, (e) the Indemnitees  and (f) the successors and assigns of each of the foregoing.  “Securities Account” means a securities account, as that term is defined in the UCC or the STA (as  applicable).   “Securities Intermediary” means a clearing corporation or a Person, including, without limitation,  a bank or broker, that in the ordinary course of its business maintains Securities Accounts for others and is  acting in that capacity.  “Security Agreement” means each Security Agreement or General Security Agreement, executed  and delivered by one or more Loan Parties in favor of the Administrative Agent, for the benefit of Secured  Parties, dated as of the Closing Date, and any other Security Agreement executed after the Closing Date,  as the same may from time to time be amended, restated or otherwise modified. For the avoidance of doubt,  each of the U.S. Guaranty and Security Agreement and Canadian Guarantee and Security Agreement are  each a Security Agreement.  “Security Agreement Joinder” means each Security Agreement Joinder, executed and delivered by  a Guarantor of Payment for the purpose of adding such Guarantor of Payment as a party to a previously  executed Security Agreement.  “Security Document” means each Security Agreement, each Security Agreement Joinder, each  Intellectual Property Security Agreement, each bailee or consignee’s waiver, each landlord’s waiver, each  UCC financing statement, PPSA financing statement or similar filing as to a jurisdiction located outside of  the United States filed in connection herewith or perfecting any interest created in any of the foregoing  documents, and any other document (including a deed of hypothec) pursuant to which any Lien is granted  by a Company or any other Person to the Administrative Agent, for the benefit of Secured Parties, as  security for the Secured Obligations, or any part thereof, and each other agreement executed or provided to  the Administrative Agent in connection with any of the foregoing, as any of the foregoing may from time  to time be amended, restated or otherwise modified or replaced.  “SOFR” means a rate equal to the secured overnight financing rate as administered by the SOFR  Administrator.  “SOFR Administrator” means the Federal Reserve Bank of New York (or a successor administrator  of the secured overnight financing rate).  “SOFR Administrator’s Website” means the website of the Federal Reserve Bank of New York,  currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate  identified as such by the SOFR Administrator from time to time.  

 

28  “SOFR Borrowing” means, as to any Borrowing, the SOFR Loans comprising such Borrowing.  “SOFR Loan” means a Loan that bears interest at a rate based on Daily Simple SOFR, other than  pursuant to clause (c) of the definition of “ABR”.  “Solvent” and “Solvency” mean, with respect to any Person (with respect to Borrower and the Loan  Parties, on a Consolidated basis taken as a whole) on any date of determination, that on such date (a) the  fair value of the property of such Person is greater than the total amount of liabilities, including contingent  liabilities, of such Person, (b) the present fair saleable value of the assets of such Person is not less than the  amount that will be required to pay the probable liability of such Person on its debts as they become absolute  and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities  beyond such Person’s ability to pay such debts and liabilities as they mature, (d) such Person is not engaged  in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s  property would constitute an unreasonably small capital, (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  and (f) such Person is not an “insolvent person” within the meaning given to that term and similar terms  under applicable Canadian Debtor Relief Laws.  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.  “STA” means the Securities Transfer Act, 2006 (Ontario), or to the extent applicable, similar  legislation of any other jurisdiction, as amended from time to time.  “Subordinated Indebtedness” means Indebtedness that shall have been subordinated (by written  terms or written agreement being, in either case, in form and substance reasonably satisfactory to the  Administrative Agent) in favor of the prior payment in full of the Obligations.  “Subsidiary” means, with respect to any Person, (a) a corporation more than fifty percent (50%) of  the Voting Power of which is owned, directly or indirectly, by such Person or by one or more other  subsidiaries of such Person or by such Person and one or more subsidiaries of such Person, (b) a partnership,  limited liability company or unlimited liability company of which such Person, one or more other  subsidiaries of such Person or such Person and one or more subsidiaries of such Person, directly or  indirectly, is a general partner or managing member, as the case may be, or otherwise has an ownership  interest greater than fifty percent (50%) of all of the ownership interests in such partnership, limited liability  company or unlimited liability company, or (c) any other Person (other than a corporation, partnership,  limited liability company or unlimited liability company) in which such Person, one or more other  subsidiaries of such Person or such Person and one or more subsidiaries of such Person, directly or  indirectly, has at least a majority interest in the Voting Power or the power to elect or direct the election of  a majority of directors or other governing body of such Person.  Unless the context otherwise requires, each  reference to a Subsidiary herein shall be a reference to a Subsidiary of the Borrower.  “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.  “Swingline Exposure” means, with respect to any Revolving Lender at any time, its Applicable  Percentage of the outstanding principal amount of the Swingline Loans.  “Swingline Lender” means Huntington in its capacity as lender of Swingline Loans.  “Swingline Loan” means a loan referred to and made pursuant to Section 2.5.  

 

29  “Swingline Loan Note” means with respect to the Swingline Lender, a promissory note evidencing  the Swingline Loans of such Lender payable to the order of such Lender (or, if required by such Lender, to  such Lender and its registered assigns) substantially in the form of Exhibit C-3.  “Swingline Loan Request” means a notice of a swingline request pursuant to Section 2.5(b), which  shall be substantially in the form of Exhibit A-3 or such other form as may be approved by the  Administrative Agent, appropriately completed and signed by a Financial Officer of the Borrower.  “Swingline Sublimit” means an amount equal to the lesser of (a) $10,000,000 and (b) the Revolving  Commitments.  The Swingline Sublimit is a sublimit of the Revolving Commitments.  “Synthetic Indebtedness” 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 as a liability  on the consolidated balance sheet of such Person and its Subsidiaries in accordance with GAAP.  “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a “synthetic”,  off-balance sheet or tax retention lease, or (b) 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 (including, without limitation  the Bankruptcy Code) to such Person or any of its Subsidiaries, 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 Facility” means, at any time, (a) on and prior to the funding of the Term Loans, the aggregate  amount of the Term Loan Commitments at such time and (b) thereafter, the aggregate principal amount of  the Term Loans of all Term Lenders outstanding at such time.  “Term Lender” means a Lender with a Term Loan Commitment or, if the Term Loan Commitments  have expired or terminated, a Lender holding outstanding Term Loans.  “Term Loan” has the meaning specified in Section 2.1(b).  “Term Loan Commitment” means the commitment of each Term Lender to make a Term Loan  pursuant to Section 2.1(b), which commitment shall be the amount set forth opposite such Term Lender’s  name on Schedule A. “Term Loan Commitments” means the aggregate Term Loan Commitment of the  Term Lenders.  “Term Loan Maturity Date” means July 22, 2027.  “Term Note” means a promissory note executed by the Borrower in favor of a Term Lender in the  form of Exhibit C-2 evidencing the Term Loan of such Term Lender.  “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on  such Loan, or on the Loans comprising such Borrowing, is determined by reference to Daily Simple SOFR  or the ABR.   

 

30  “UCC” means the Uniform Commercial Code, as in effect from time to time in the State of Ohio;  provided that, if perfection or the effect of perfection or non-perfection or the priority of any security interest  in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the  State of Ohio, “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 or priority.  “UCP” means the Uniform Customs and Practice for Documentary Credits, International Chamber  of Commerce Publication No. 600 (or such later version thereof as may be in effect at the applicable time).  “UK Financial Institution” means any BRRD Undertaking (as such term is defined under the PRA  Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation  Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time)  promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions  and investment firms, and certain affiliates of such credit institutions or investment firms.  “UK Resolution Authority” means the Bank of England or any other public administrative authority  having responsibility for the resolution of any UK Financial Institution.  “Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement excluding  the related Benchmark Replacement Adjustment. “United States” and “U.S.” mean the United States of America.  “U.S. Government Securities Business Day means any day except for (a) a Saturday, (b) a Sunday  or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed  income departments of its members be closed for the entire day for purposes of trading in United States  government securities.  “U.S. Guaranty and Security Agreement” means that certain U.S. Guaranty and Security  Agreement made by and among the Borrower, the Domestic Guarantors of Payment party thereto from time  to time and the Administrative Agent for the benefit of the Secured Parties, as amended, restated, modified  or supplemented from time to time.   “U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30)  of the Code.  “U.S. Tax Compliance Certificate” has the meaning specified in Section 3.1(f)(ii)(B)(3).  “Voting Power” means, with respect to any Person, the exclusive ability to control, through the  ownership of shares of capital stock, partnership interests, membership interests or otherwise, the election  of members of the board of directors or other similar governing body of such Person.  The holding of a  designated percentage of Voting Power of a Person means the ownership of shares of capital stock,  partnership interests, membership interests or other interests of such Person sufficient to control exclusively  the election of that percentage of the members of the board of directors or similar governing body of such  Person.  “Welfare Plan” means an ERISA Plan that is a “welfare plan” within the meaning of ERISA Section  3(l).  “WF Deposit Accounts” has the meaning specified in Section 5.33.  

 

31  “Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution Authority,  the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail- In Legislation for the applicable EEA Member Country, which write-down and conversion powers are  described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers  of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change  the form of a liability of any UK Financial Institution or any contract or instrument under which that liability  arises, to convert all or part of that liability into shares, securities or obligations of that person or any other  person, to provide that any such contract or instrument is to have effect as if a right had been exercised  under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In  Legislation that are related to or ancillary to any of those powers.   “Xylem Factoring Agreement” means that certain Supplier Agreement, dated as of November 29,  2021, by and among the Canadian Subsidiary Guarantor, as supplier, Xylem Inc., as buyer and ING Bank,  N.V., together with all supplements, amendments, restatements and modifications thereto.  Rules of Interpretation.  With reference to this Agreement and each other Loan Document,  unless otherwise specified herein or in such other Loan Document: The definitions of terms herein shall  apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any  pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,”  “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word  “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context  requires otherwise, (i) any definition of or reference to any agreement, instrument or other document shall  be construed as referring to such agreement, instrument or other document as from time to time amended,  restated, supplemented or otherwise modified (subject to any restrictions on such amendments,  restatements, supplements or modifications set forth herein or in 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 “hereto,” “herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan  Document, shall be construed to refer to such Loan Document in its entirety and not to any particular  provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits, Schedules and  Annexes shall be construed to refer to Articles and Sections of, and Exhibits, Schedules and Annexes 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 shall, unless otherwise specified, refer to such Law 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.  (a) 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.”  (b) Article and 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.  (c) All capitalized terms used herein or in any other Loan Document with reference to the  Collateral and defined in the UCC or the PPSA, as applicable, from time to time shall have the meaning  given therein unless otherwise defined herein.  To the extent the definition of any category or type of  Collateral is expanded by any amendment, modification or revision to the UCC or PPSA, such expanded  definition will apply automatically as of the effective date of such amendment, modification or revision.  

 

32  (d) All references herein to times of day shall be references to Eastern time (daylight or  standard, as applicable).  (e) For purposes of any Collateral located in the Province of Quebec or charged by any deed  of hypothec (or any other Loan Document) and for all other purposes pursuant to which the interpretation  or construction of a Loan Document may be subject to the laws of the Province of Quebec or a court or  tribunal exercising jurisdiction in the Province of Québec, (i) “personal property” shall be deemed to  include “movable property”, (ii) “real property” shall be deemed to include “immovable property”, (iii)  “tangible property” shall be deemed to include “corporeal property”, (iv) “intangible property” shall be  deemed to include “incorporeal property”, (v) “security interest” and “mortgage” shall be deemed to include  a “hypothec”, (vi) all references to filing, registering or recording under the UCC or the PPSA shall be  deemed to include publication under the Civil Code of Québec, (vii) all references to “perfection” of or  “perfected” Liens shall be deemed to include a reference to the “opposability” of such Liens to third parties,  (viii) any “right of offset”, “right of setoff” or similar expression shall be deemed to include a “right of  compensation”, (ix) “goods” shall be deemed to include “corporeal movable property” other than chattel  paper, documents of title, instruments, money and securities, and (x) an “agent” shall be deemed to include  a “mandatary”.  Accounting Terms.  (a) Generally.  All accounting terms not specifically or completely defined herein shall be  defined in and 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, and in a manner consistent with  that used in preparing the audited Consolidated financial statements of the Borrower and its Subsidiaries,  except as otherwise specifically prescribed herein.  Whenever the term the Borrower is used in respect of a  financial covenant or a related definition, it shall be understood to mean the Borrower and its Subsidiaries  on a Consolidated basis unless the context clearly requires otherwise.  Notwithstanding the foregoing, (a)  for purposes of determining compliance with any covenant (including the computation of any financial  covenant) contained herein, Indebtedness of the Borrower and its Subsidiaries shall be deemed to be carried  at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC  470-20 on financial liabilities shall be disregarded and (b) all obligations of any Person that are or would  have been treated as Operating Leases for purposes of GAAP prior to the effectiveness of FASB ASC 842  shall continue to be accounted for as Operating Leases for purposes of all financial definitions and  calculations for purpose of this Agreement (whether or not such Operating Lease obligations were in effect  on such date) notwithstanding the fact that such obligations are required in accordance with FASB ASC  842 (on a prospective or retroactive basis or otherwise) to be treated as capital leases in such Person’s  financial statements.  (b) Changes in GAAP.  If at any time any change in GAAP would affect the computation of  any financial ratio or requirement (including any definition of any term defined under GAAP used in such  calculations) set forth in any Loan Document, and either the Borrower or the Required Lenders shall so  request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend  such ratio or requirement to preserve the original intent thereof in light of such change in GAAP; provided  that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with  GAAP prior to such change therein and (ii) the Borrower shall provide to the Administrative Agent financial  statements and other documents required under this Agreement or as reasonably requested hereunder setting  forth a reconciliation between calculations of such ratio or requirement made before and after giving effect  to such change in GAAP.    

 

33  Rounding.  Any financial ratios required to be maintained 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).  Classification of Loans and Borrowings.  For purposes of this Agreement, Loans may be  classified and referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g., a “SOFR Loan”), by Class  and Type (e.g., a “SOFR Revolving Loan”).  Borrowings also may be classified and referred to by Class  (e.g., a “Borrowing of Revolving Loans”) or by Type (e.g., a “SOFR Borrowing”) or by Class and Type  (e.g., a “SOFR Borrowing of Revolving Loans”).  Rates.  The Administrative Agent does not warrant or accept responsibility for, and shall  not have any liability with respect to (a) the continuation of, administration of, submission of, calculation  of or any other matter related to ABR or Daily Simple SOFR, or any component definition thereof or rates  referred to in the definition thereof, or any alternative, successor or replacement rate thereto (including any  Benchmark Replacement), including whether the composition or characteristics of any such alternative,  successor or replacement rate (including any Benchmark Replacement) will be similar to, or produce the  same value or economic equivalence of, or have the same volume or liquidity as, ABR, Daily Simple SOFR  or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or  composition of any Conforming Changes.  The Administrative Agent and its Related Parties may engage  in transactions that affect the calculation of the ABR, Daily Simple SOFR, any alternative, successor or  replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto, in each case,  in a manner adverse to the Borrower. The Administrative Agent may select information sources or services  in its reasonable discretion to ascertain ABR, Daily Simple SOFR or any other Benchmark or any  component definition thereof or rates referred to in the definition thereof, in each case pursuant to the terms  of this Agreement, and shall have no liability to the Borrower, any Lender or any other Person for damages  of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses  or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error by, or any  calculation of any such rate (or component thereof) provided by, any such information source or service.  Judgment Currency.  If for the purpose of obtaining judgment in any court it is necessary  to convert an amount due hereunder in the currency in which it is due (the “Original Currency”) into another  currency (the “Second Currency”), the rate of exchange applied shall be that at which, in accordance with  normal banking procedures, the Lender could purchase in the New York foreign exchange market, the  Original Currency with the Second Currency on the date two (2) Business Days preceding that on which  judgment is given. The Borrower agrees that its obligation in respect of any Original Currency due from it  hereunder shall, notwithstanding any judgment or payment in such other currency, be discharged only to  the extent that, on the Business Day following the date the Lender receives payment of any sum so adjudged  to be due hereunder in the Second Currency, the Lender may, in accordance with normal banking  procedures, purchase, in the New York foreign exchange market, the Original Currency with the amount  of the Second Currency so paid; and if the amount of the Original Currency so purchased or could have  been so purchased is less than the amount originally due in the Original Currency, each Borrower agrees as  a separate obligation and notwithstanding any such payment or judgment to indemnify the Lender against  such loss. The term “rate of exchange” in this Section 1.7 means the spot rate at which the Lender, in  accordance with normal practices, is able on the relevant date to purchase the Original Currency with the  Second Currency, and includes any premium and costs of exchange payable in connection with such  purchase.  

 

34  ARTICLE II  THE COMMITMENTS AND CREDIT EXTENSIONS  Commitments.  (a) Revolving Commitment.  Subject to the terms and conditions set forth herein, each  Revolving Lender severally agrees to make loans (each such loan, a “Revolving Loan”) to the Borrower in  Dollars from time to time during the Availability Period; provided, that after giving effect to any borrowing  of Revolving Loans, (i) the Aggregate Revolving Exposure shall not exceed the Revolving Commitments  and (ii) the Revolving Exposure of such Revolving Lender shall not exceed the Revolving Commitment of  such Revolving Lender.  Within the foregoing limits and subject to the other terms and conditions hereof,  the Borrower may borrow, prepay and reborrow Revolving Loans.    (b) Term Loan Commitment.  Subject to the terms and conditions set forth herein, each Term  Lender severally agrees to make a single term loan (each such loan, a “Term Loan” and collectively, the  “Term Loans”) to the Borrower in Dollars on the Closing Date in a principal amount equal to the Term  Loan Commitment of such Term Lender.  The Borrower may not reborrow any repaid principal of the Term  Loans.    (c) CapEx Loan Commitment.  Subject to the terms and conditions set forth herein, each  CapEx Lender severally agrees to make loans (each such loan, a “CapEx Loan” and collectively, the  “CapEx Loans”) to the Borrower from time to time during the CapEx Availability Period; provided, that  after giving effect to any borrowing of the CapEx Loans, (i) the aggregate outstanding amount of CapEx  Loans shall not exceed the CapEx Loan Commitments and (ii) the aggregate outstanding amount of CapEx  Loans of such CapEx Lender shall not exceed the CapEx Loan Commitment of such CapEx Lender.  The  Borrower may not reborrow any repaid principal of the CapEx Loans.  Loans and Borrowings.  (a) Borrowings.  Each Loan (other than a Swingline Loan) shall be made as part of a  Borrowing consisting of Loans of the same Facility and Type made by the Lenders ratably in accordance  with their respective Commitments under the applicable Facility.    (b) Type of Loans.  Subject to Section 3.3, each Borrowing shall be comprised entirely of ABR  Loans or SOFR Loans as the Borrower may request in accordance herewith.  Each Swingline Loan shall be  an ABR Loan.  Each Lender at its option may make any Loan by causing any domestic or foreign branch  or Affiliate of such Lender to make such Loan; provided, that any exercise of such option shall not affect  the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.   Borrowings of more than one Type may be outstanding at the same time.  Borrowing Requests.  (a) Notice by Borrower.  To request a Borrowing, the Borrower shall notify the Administrative  Agent of such request in writing by delivering a Borrowing Request (delivered by hand or fax) or through  an Electronic System, if arrangements for doing so have been approved by the Administrative Agent, which  notice must be received by the Administrative Agent not later than 1:00 p.m., one (1) Business Day prior  to the date of the requested Borrowing.  Each Swingline Loan shall be requested in accordance with  Section 2.5.  (b) Content of Borrowing Requests.  Each Borrowing Request shall specify the following  information in compliance with Section 2.2: (i) the aggregate amount and Facility of the requested  

 

35  Borrowing; (ii) the date of such Borrowing (which shall be a Business Day); (iii) whether such Borrowing  is to be an ABR Borrowing or a SOFR Borrowing; (iv) the location and number of the Borrower’s account  to which funds are to be disbursed; and (v) with respect to any such Borrowing Request for CapEx Loans,  a certification by a Financial Officer of the Borrower that the proceeds of such Borrowing will be solely  used to finance capital expenditures as permitted hereunder.      (c) Notice by Administrative Agent to Lenders.  Promptly following receipt of a Borrowing  Request, the Administrative Agent shall advise each applicable Lender of the details thereof and the amount  of such Lender’s Loan to be made as part of the requested Borrowing.  (d) Failure to Elect.  If no election as to the Type of a Borrowing is specified in the applicable  Borrowing Request, then the requested Borrowing shall be a SOFR Borrowing.   Funding of Borrowings.  Each Lender shall make the amount of each Loan to be made by  it hereunder available to the Administrative Agent in immediately available funds to the account of the  Administrative Agent not later than 12:00 noon on the proposed date thereof; provided, that Swingline  Loans shall be made as provided in Section 2.5.  The Administrative Agent will make all such funds so  received available to the Borrower in like funds, by wire transfer of such funds in accordance with the  instructions provided in the applicable Borrowing Request; provided, that ABR Borrowings made to  finance the reimbursement of an LC Disbursement as provided in Section 2.6(e) shall be remitted by the  Administrative Agent to the respective Issuing Bank.  Swingline Loans.  (a) The Swingline.  Subject to the terms and conditions hereof and relying upon the agreements  of the Revolving Lenders set forth in this Section 2.5, the Swingline Lender may in its sole discretion make  Swingline Loans to the Borrower in Dollars from time to time on any Business Day during the Availability  Period; provided that after giving effect to each Swingline Loan, (i) the aggregate outstanding amount of  Swingline Loans shall not exceed the Swingline Sublimit and (ii) the Aggregate Revolving Exposure shall  not exceed the Revolving Commitments; provided, further, that the Borrower shall not use the proceeds of  any Swingline Loan to refinance any outstanding Swingline Loan.  Within the foregoing limits, and subject  to the other terms and conditions hereof, the Borrower may borrow, prepay and reborrow Swingline Loans.  (b) Borrowing Procedures.  To request a Swingline Loan, the Borrower shall notify the  Swingline Lender and the Administrative Agent of such request in writing by delivering a Swingline Loan  Request (delivered by hand or fax) or through an Electronic System, if arrangements for doing so have been  approved by the Swingline Lender and the Administrative Agent, which notice must be received by the  Swingline Lender and the Administrative Agent not later than 1:00 p.m. on the requested borrowing date.   Each Swingline Loan Request shall specify (i) the amount to be borrowed and (ii) the requested borrowing  date, which shall be a Business Day.  Unless the Swingline Lender has received notice from the  Administrative Agent (including at the request of any Revolving Lender) prior to 2:00 p.m. on the date of  the proposed Swingline Loan (x) directing the Swingline Lender not to make such Swingline Loan as a  result of the limitations set forth in the first proviso to the first sentence of Section 2.5(a) or (y) that one or  more of the applicable conditions specified in Article IV is not then satisfied, then, subject to the terms and  conditions hereof, the Swingline Lender may, on the borrowing date specified in such Swingline Loan  Request, make the amount of its Swingline Loan available to the Borrower by crediting the account of the  Borrower maintained with the Swingline Lender and notify the Administrative Agent thereof in writing.  (c) Refinancing of Swingline Loans.  (i) The Swingline Lender at any time in its sole and  absolute discretion may request, on behalf of the Borrower (which hereby irrevocably authorizes the  Swingline Lender to so request on its behalf), that each Revolving Lender refinance an outstanding  

 

36  Swingline Loan by making a Revolving Loan at the ABR in an amount equal to such Revolving Lender’s  Applicable Percentage of the amount of Swingline Loans then outstanding.  Such request shall be made in  writing (which written request shall be deemed to be a Borrowing Request for purposes hereof) and in  accordance with the requirements of Section 2.2, without regard to the minimum and multiples specified  therein for the principal amount of an ABR Borrowing.  Each Revolving Lender shall make an amount  equal to its Applicable Percentage of the amount specified in such Borrowing Request available to the  Administrative Agent in immediately available funds for the account of the Swingline Lender at the account  of the Administrative Agent not later than 1:00 p.m. on the day specified in such Borrowing Request,  whereupon, subject to Section 2.5(c)(ii), each Revolving Lender that so makes funds available shall be  deemed to have made a Revolving Loan at the ABR to the Borrower in such amount.  The Administrative  Agent shall remit the funds so received to the Swingline Lender.  (ii) If for any reason any Swingline Loan cannot be refinanced by a Revolving Loan  in accordance with Section 2.5(c)(i), the request for a Revolving Loan submitted by the Swingline Lender  as set forth therein shall be deemed to be a request by the Swingline Lender that each of the Revolving  Lenders purchase for cash a risk participation in the relevant Swingline Loan in Dollars and each Revolving  Lender hereby irrevocably and unconditionally agrees to make such purchase in an amount equal to the  product of such Revolving Lender’s Applicable Percentage multiplied by the amount of such Swingline  Loan.  Each Revolving Lender’s payment to the Administrative Agent for the account of the Swingline  Lender pursuant to Section 2.5(c)(i) shall be deemed payment in respect of such participation.  (iii) If any Revolving Lender fails to make available to the Administrative Agent for  the account of the Swingline Lender any amount required to be paid by such Revolving Lender pursuant to  the foregoing provisions of this Section 2.5(c) by the time specified in Section 2.5(c)(i), the Swingline  Lender shall be entitled to recover from such Revolving Lender (acting through the Administrative Agent),  on demand, such amount with interest thereon for the period from the date such payment is required to the  date on which such payment is immediately available to the Swingline Lender at the greater of the Federal  Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules  on interbank compensation.  A certificate of the Swingline Lender submitted to any Revolving Lender  (through the Administrative Agent) with respect to any amounts owing under this clause (iii) shall be  conclusive absent manifest error.  (iv) Each Revolving Lender’s obligation to make Revolving Loans or to purchase and  fund risk participations in Swingline Loans pursuant to this Section 2.5(c) shall be absolute and  unconditional and shall not be affected by any circumstance including the occurrence and continuance of a  Default or reduction or termination of the Revolving Commitments; provided that each Revolving Lender’s  obligation to make Revolving Loans (but not to purchase and fund risk participations in Swingline Loans)  pursuant to this Section 2.5(c) is subject to the conditions set forth in Section 4.2.  No such funding of risk  participations shall relieve or otherwise impair the obligation of the Borrower to repay Swingline Loans,  together with interest as provided herein.  (d) Repayment of Participations.  (i) At any time after any Revolving Lender has purchased  and funded a risk participation in a Swingline Loan, if the Swingline Lender receives any payment on  account of such Swingline Loan, the Swingline Lender will distribute to such Revolving Lender its  Applicable Percentage of such payment (appropriately adjusted, in the case of interest payments, to reflect  the period of time during which such Revolving Lender’s risk participation was funded) in the same funds  as those received by the Swingline Lender.  (ii) If any payment received by the Swingline Lender in respect of principal or interest  on any Swingline Loan is required to be returned by the Swingline Lender under any of the circumstances  described in Section 9.5 (including pursuant to any settlement entered into by the Swingline Lender in its  

 

37  discretion), each Revolving Lender shall pay to the Swingline Lender its Applicable Percentage thereof on  demand by the Administrative Agent, plus interest thereon from the date of such demand to the date such  amount is returned, at a rate per annum equal to the Federal Funds Rate.  The Administrative Agent will  make such demand upon the request of the Swingline Lender.  (e) Interest for Account of Swingline Lender.  Until each Revolving Lender funds its  Revolving Loan or risk participation pursuant to this Section 2.5 to refinance such Revolving Lender’s  Applicable Percentage of any Swingline Loan, interest in respect of such Applicable Percentage shall be  solely for the account of the Swingline Lender.  (f) Payments Directly to Swingline Lender.  The Borrower shall make all payments of  principal and interest in respect of the Swingline Loans directly to the Swingline Lender and the Swingline  Lender shall notify the Administrative Agent thereof.  (g) Replacement of Swingline Lender.  The Swingline Lender may be replaced at any time by  written agreement among the Borrower, the Administrative Agent, the replaced Swingline Lender and the  successor Swingline Lender. The Administrative Agent shall notify the Revolving Lenders of any such  replacement of the Swingline Lender. At the time any such replacement shall become effective, the  Borrower shall pay all unpaid interest accrued for the account of the replaced Swingline Lender pursuant  to Section 2.11(a). From and after the effective date of any such replacement, (i) the successor Swingline  Lender shall have all the rights and obligations of the Swingline Lender under this Agreement with respect  to Swingline Loans to be made thereafter and (ii) references herein to the term “Swingline Lender” shall be  deemed to refer to such successor or to any previous Swingline Lender, or to such successor and all previous  Swingline Lenders, as the context shall require. After the replacement of the Swingline Lender hereunder,  the replaced Swingline Lender shall remain a party hereto and shall continue to have all the rights and  obligations of the Swingline Lender under this Agreement with respect to Swingline Loans then outstanding  and made by it prior to such replacement, but shall not make additional Swingline Loans.  (h) Resignation of Swingline Lender.  Subject to the appointment and acceptance of a  successor Swingline Lender, the Swingline Lender may resign as Swingline Lender at any time upon thirty  (30) days’ prior written notice to the Administrative Agent, the Borrower and the Lenders, in which case,  the Swingline Lender shall be replaced in accordance with Section 2.5(g) above.  Letters of Credit.  (a) Letter of Credit Issuance.    (i) Subject to the terms and conditions set forth herein, the Borrower may request that  an Issuing Bank issue standby letters of credit (each, a “Letter of Credit”) for the account of the Borrower  from time to time during the Availability Period and amend, extend, reinstate or renew such Letters of  Credit, provided, that after giving effect to such issuance, amendment, extension, reinstatement or renewal  (A) the Letter of Credit Exposure shall not exceed the Letter of Credit Sublimit, (B) the Revolving Exposure  of any Lender shall not exceed its Revolving Commitment and (C) the Aggregate Revolving Exposure shall  not exceed the Revolving Commitments.  (ii) An Issuing Bank shall not be under any obligation to issue any Letter of Credit if:  (A) any order, judgment or decree of any Governmental Authority or arbitrator  shall by its terms purport to enjoin or restrain such Issuing Bank from issuing such Letter  of Credit, or any Law applicable to such Issuing Bank shall prohibit, or request that such  Issuing Bank refrain from, the issuance of letters of credit generally or such Letter of Credit  

 

38  in particular or shall impose upon such Issuing Bank with respect to such Letter of Credit  any restriction, reserve or capital requirement (for which such Issuing Bank is not  otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon  such Issuing Bank any unreimbursed loss, cost or expense that was not applicable on the  Closing Date and that such Issuing Bank in good faith deems material to it;  (B) the issuance of such Letter of Credit would violate one or more policies of  such Issuing Bank applicable to letters of credit generally or would violate Sanctions or  applicable Anti-Corruption Laws;   (C) except as otherwise agreed by the Administrative Agent and such Issuing  Bank, such Letter of Credit is in an initial amount less than $100,000;   (D) the Letter of Credit is to be denominated in a currency other than Dollars;  (E) the Letter of Credit contains any provisions for automatic reinstatement of  the stated amount after any drawing thereunder; or  (F) any Lender is at that time a Defaulting Lender, unless such Issuing Bank  has entered into arrangements, including the delivery of Cash Collateral, satisfactory to  such Issuing Bank (in its sole discretion) with the Borrower or such Lender to eliminate  such Issuing Bank’s actual or potential Fronting Exposure after giving effect to Section  2.17(a)(iv) with respect to the Defaulting Lender arising from either such Letter of Credit  then proposed to be issued or such Letter of Credit and all other Letter of Credit Exposure  as to which such Issuing Bank has actual or potential Fronting Exposure, as it may elect in  its sole discretion.  (iii) An Issuing Bank shall be under no obligation to amend any Letter of Credit if (A)  such Issuing Bank would have no obligation at such time to issue the Letter of Credit in its amended form  under the terms hereof, or (B) the beneficiary of the Letter of Credit does not accept the proposed  amendment to the Letter of Credit.  (b) Notice of Issuance, Amendment, Extension, Reinstatement or Renewal.  To request the  issuance of a Letter of Credit (or the amendment of the terms and conditions, extension of the terms and  conditions, extension of the expiration date, or reinstatement of amounts paid, or renewal of an outstanding  Letter of Credit), the Borrower shall deliver (or transmit by through Electronic System, if arrangements for  doing so have been approved by the respective Issuing Bank and the Administrative Agent) to an Issuing  Bank selected by it and to the Administrative Agent (reasonably in advance of the requested date of  issuance, amendment, extension, reinstatement or renewal) a notice requesting the issuance of a Letter of  Credit, or identifying the Letter of Credit to be amended, extended, reinstated or renewed, and specifying  the date of issuance, amendment, extension, reinstatement or renewal (which shall be a Business Day), the  date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the  amount of such Letter of Credit, the name and address of the beneficiary thereof, the purpose and nature of  the requested Letter of Credit and such other information as shall be necessary to prepare, amend, extend,  reinstate or renew such Letter of Credit.  If requested by the respective Issuing Bank, the Borrower also  shall submit a Letter of Credit Application in connection with any request for a Letter of Credit.  In the  event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions  of any Letter of Credit Application or other agreement submitted by the Borrower to, or entered into by the  Borrower with, an Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement  shall control.  

 

39  (c) Expiry Date.  No Letter of Credit shall, by its terms, have an expiration date that is longer  than (i) the date one (1) year after the date of issuance of such Letter of Credit (or, in the case of any renewal  or extension thereof, one (1) year after such renewal or extension) and (ii) the Revolving Maturity Date;  provided, any Letter of Credit may extend beyond the date referred to in clause (ii) above if such Letter of  Credit is Cash Collateralized, no later than the Revolving Maturity Date, in an amount equal to 105% of  the Letter of Credit Exposure under such Letter of Credit; provided, further, that the obligation of the  Revolving Lenders to participate in Letters of Credit issued prior to the Revolving Maturity Date and  remaining outstanding thereafter shall continue to the extent that the Borrower shall have defaulted in its  obligation to Cash Collateralize such Letters of Credit on the Revolving Maturity Date as required by this  paragraph (c).  (d) Participations.  By the issuance of a Letter of Credit (or an amendment to a Letter of Credit  increasing the amount or extending the expiration date thereof), and without any further action on the part  of the applicable Issuing Bank or the Lenders, such Issuing Bank hereby grants to each Revolving Lender,  and each Revolving Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit  equal to such Revolving Lender’s Applicable Percentage of the aggregate amount available to be drawn  under such Letter of Credit.  In consideration and in furtherance of the foregoing, each Revolving Lender  hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of such  Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by such Issuing Bank  and not reimbursed by the Borrower on the date due as provided in paragraph (e) of this Section, or of any  reimbursement payment required to be refunded to the Borrower for any reason.  Each Revolving Lender  acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect  of Letters of Credit is absolute, unconditional and irrevocable and shall not be affected by any circumstance  whatsoever, including any amendment, extension, reinstatement or renewal of any Letter of Credit or the  occurrence and continuance of a Default or reduction or termination of the Commitments.  Each Revolving Lender further acknowledges and agrees that its participation in each  Letter of Credit will be automatically adjusted to reflect such Revolving Lender’s Applicable Percentage  of the aggregate amount available to be drawn under such Letter of Credit at each time such Revolving  Lender’s Revolving Commitment is adjusted pursuant to this Agreement. (e) Reimbursement.  If any Issuing Bank shall make any LC Disbursement in respect of a  Letter of Credit issued by such Issuing Bank, the Borrower shall reimburse such LC Disbursement by  paying to the Administrative Agent an amount equal to such LC Disbursement on (i) the Business Day that  the Borrower receives notice of such LC Disbursement, if such notice is received prior to 9:00 a.m. or (ii)  the Business Day immediately following the day that the Borrower receives such notice, if such notice is  not received prior to such time; provided, that the Borrower may, subject to the conditions to borrowing set  forth herein, request in accordance with Section 2.3 or 2.5 that such payment be financed with an ABR  Revolving Loan or Swingline Loan in the amount of such LC Disbursement and, to the extent so financed,  the Borrower’s obligation to make such payment shall be discharged and replaced by the resulting ABR  Revolving Loan or Swingline Loan.  If the Borrower fails to make such payment when due, the  Administrative Agent shall notify each Revolving Lender of the applicable LC Disbursement, the payment  then due from the Borrower in respect thereof and such Lender’s Applicable Percentage thereof.  Promptly  following receipt of such notice, each Revolving Lender shall pay to the Administrative Agent its  Applicable Percentage of the payment then due from the Borrower, in the same manner as provided in  Section 2.4 with respect to Revolving Loans made by such Lender (and Section 2.14(b)(i) shall apply,  mutatis mutandis, to the payment obligations of the Revolving Lenders), and the Administrative Agent shall  promptly pay to such Issuing Bank the amounts so received by it from the Revolving Lenders.  Promptly  following receipt by the Administrative Agent of any payment from the Borrower pursuant to this  paragraph, the Administrative Agent shall distribute such payment to the applicable Issuing Bank or, to the  extent that the Revolving Lenders have made payments pursuant to this paragraph to reimburse such Issuing  

 

40  Bank, then to such Revolving Lenders and such Issuing Bank as their interests may appear.  Any payment  made by a Revolving Lender pursuant to this paragraph to reimburse an Issuing Bank for any LC  Disbursement (other than the funding of Revolving Loans or a Swingline Loan as contemplated above)  shall not constitute a Revolving Loan and shall not relieve the Borrower of its obligation to reimburse such  LC Disbursement.  (f) Obligations Absolute.    (i) The obligations of the Borrower under this Agreement and any Letter of  Credit or Letter of Credit Application to reimburse the applicable Issuing Bank for a drawing under  a Letter of Credit shall be unconditional and irrevocable, and shall be paid strictly in accordance  with the terms hereof and thereof under all circumstances, including the following: (A) any lack of  validity or enforceability or change in any term of this Agreement or any Letter of Credit or Letter  of Credit Application; (B) the existence of any claim, set-off, defense or other right that the  Borrower may have at any time against any beneficiary or any transferee of any Letter of Credit  (or any Person for whom any such beneficiary or any such transferee may be acting), any Issuing  Bank or any other Person; (C) any draft, demand, certificate or other document presented under  any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any  statement therein being untrue or inaccurate in any respect; or any loss or delay in the transmission  or otherwise of any document required in order to make a drawing under any Letter of Credit; (D)  any payment by an Issuing Bank under any Letter of Credit against presentation of draft or  certificate that does not strictly comply with the terms of any Letter of Credit; (E) any payment  made by an Issuing Bank under any Letter of Credit to any Person purporting to be a trustee in  bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other  representative of or successor to any beneficiary or any transferee of any Letter of Credit; and (F)  any other circumstance that might otherwise constitute a defense available to, or a discharge of,  any Loan Party.  (ii) None of the Administrative Agent, the Lenders, any Issuing Bank, or any  of their Related Parties shall have any liability or responsibility by reason of or in connection with  the issuance or transfer of any Letter of Credit by the respective Issuing Bank or any payment or  failure to make any payment thereunder (irrespective of any of the circumstances referred to in the  preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery  of any draft, notice or other communication under or relating to any Letter of Credit (including any  document required to make a drawing thereunder), any error in interpretation of technical terms,  any error in translation or any consequence arising from causes beyond the control of the respective  Issuing Bank; provided that the foregoing shall not be construed to excuse an Issuing Bank from  liability to the Borrower to the extent of any direct damages (as opposed to consequential damages,  claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable  Law) suffered by the Borrower that are caused by such Issuing Bank’s failure to exercise care when  determining whether drafts and other documents presented under a Letter of Credit comply with  the terms thereof.  The parties hereto expressly agree that, in the absence of gross negligence or  willful misconduct on the part of an Issuing Bank (as finally determined by a court of competent  jurisdiction), an Issuing Bank shall be deemed to have exercised care in each such determination,  and that:  (A) an Issuing Bank may replace a purportedly lost, stolen, or destroyed original Letter  of Credit or missing amendment thereto with a replacement marked as such or waive a requirement  for its presentation;  

 

41  (B) an Issuing Bank may accept documents that appear on their face to be in substantial  compliance with the terms of a Letter of Credit without responsibility for further investigation,  regardless of any notice or information to the contrary, and may make payment upon presentation  of documents that appear on their face to be in substantial compliance with the terms of such Letter  of Credit and without regard to any non-documentary condition in such Letter of Credit;  (C) an Issuing Bank shall have the right, in its sole discretion, to decline to accept such  documents and to make such payment if such documents are not in strict compliance with the terms  of such Letter of Credit; and  (D) this sentence shall establish the standard of care to be exercised by an Issuing Bank  when determining whether drafts and other documents presented under a Letter of Credit comply  with the terms thereof (and the parties hereto hereby waive, to the extent permitted by applicable  Law, any standard of care inconsistent with the foregoing).  (iii) Without limiting the foregoing, none of the Administrative Agent, the  Lenders, any Issuing Bank, or any of their Related Parties shall have any liability or responsibility  by reason of (A) any presentation that includes forged or fraudulent documents or that is otherwise  affected by the fraudulent, bad faith, or illegal conduct of the beneficiary or other Person, (B) an  Issuing Bank declining to take-up documents and make payment (1) against documents that are  fraudulent or forged or that it is otherwise entitled to not honor or (2) following the Borrower’s  waiver of discrepancies with respect to such documents or request for honor of such documents or  (C) an Issuing Bank retaining proceeds of a Letter of Credit based on an apparently applicable  attachment order, blocking regulation, or third-party claim notified to such Issuing Bank.  (iv) Unless otherwise expressly agreed by an Issuing Bank and the Borrower  when a Letter of Credit is issued by it, the rules of the ISP shall apply to each Letter of Credit.   Notwithstanding the foregoing, no Issuing Bank shall be responsible to the Borrower for, and such  Issuing Bank’s rights and remedies against the Borrower shall not be impaired by, any action or  inaction of such Issuing Bank required or permitted under any law, order, or practice that is required  or permitted to be applied to any Letter of Credit or this Agreement, including the Laws or any  order of a jurisdiction where such Issuing Bank or the beneficiary is located, the practice stated in  the ISP or in the decisions, opinions, practice statements, or official commentary of the  International Chamber of Commerce Banking Commission, the Bankers Association for Finance  and Trade (BAFT), or the Institute of International Banking Law & Practice, whether or not any  Letter of Credit chooses such laws or practice rules.  (v) An Issuing Bank shall act on behalf of the Lenders with respect to any  Letters of Credit issued by it and the documents associated therewith, and such Issuing Bank shall  have all of the benefits and immunities (A) provided to the Administrative Agent in Article VII  with respect to any acts taken or omissions suffered by such Issuing Bank in connection with Letters  of Credit issued by it or proposed to be issued by it and any documents pertaining to such Letters  of Credit as fully as if the term “Administrative Agent” as used in Article VII included such Issuing  Bank with respect to such acts or omissions, and (B) as additionally provided herein with respect  to such Issuing Bank.  (g) Disbursement Procedures.  The Issuing Bank for any Letter of Credit shall, within the time  allowed by applicable Laws or the specific terms of the Letter of Credit following its receipt thereof,  examine all documents purporting to represent a demand for payment under such Letter of Credit.  Such  Issuing Bank shall promptly after such examination notify the Administrative Agent and the Borrower in  writing of such demand for payment if such Issuing Bank has made or will make an LC Disbursement  

 

42  thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower  of its obligation to reimburse such Issuing Bank and the Lenders with respect to any such LC Disbursement.  (h) Interim Interest.  If the Issuing Bank for any Letter of Credit shall make any LC  Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in full on the date such LC  Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the  date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC  Disbursement, at the rate per annum then applicable to ABR Revolving Loans; provided that if the Borrower  fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then  Section 2.11(b) shall apply.  Interest accrued pursuant to this paragraph shall be for account of such Issuing  Bank, except that interest accrued on and after the date of payment by any Lender pursuant to paragraph (e)  of this Section to reimburse such Issuing Bank shall be for account of such Lender to the extent of such  payment.  (i) Replacement of an Issuing Bank.  Any Issuing Bank may be replaced at any time by written  agreement among the Borrower, the Administrative Agent, the replaced Issuing Bank and the successor  Issuing Bank. The Administrative Agent shall notify the Revolving Lenders of any such replacement of an  Issuing Bank. At the time any such replacement shall become effective, the Borrower shall pay all unpaid  fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.12(b). From and after the  effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and  obligations of an Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafter  and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to any  previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require.  After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto  and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with  respect to Letters of Credit then outstanding and issued by it prior to such replacement, but shall not be  required to issue additional Letters of Credit.  Any Issuing Bank may resign at any time by giving thirty (30) days’ prior notice to the  Administrative Agent, the Lenders and the Borrower.  After the resignation of an Issuing Bank hereunder,  the retiring Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations  of an Issuing Bank under this Agreement and the other Loan Documents with respect to Letters of Credit  issued by it prior to such resignation, but shall not be required to issue additional Letters of Credit or to  extend, reinstate, renew or increase any existing Letter of Credit.  (j) Cash Collateralization.  If the Borrower shall be required to Cash Collateralize any Letters  of Credit or Fronting Exposure hereunder, the Borrower shall deposit such Cash Collateral to an account  with the Administrative Agent, in the name of the Administrative Agent and for the benefit of Secured  Parties (the “LC Collateral Account”).  Such deposit shall be held by the Administrative Agent as collateral  for the payment and performance of the Secured Obligations.  The Administrative Agent shall have  exclusive dominion and control, including the exclusive right of withdrawal, over the LC Collateral  Account and the Borrower hereby grants the Administrative Agent for the benefit of Secured Parties a  security interest in the LC Collateral Account and all money or other assets on deposit therein or credited  thereto.  Such deposits shall not bear interest.  Funds in the LC Collateral Account shall be applied by the  Administrative Agent for Letter of Credit disbursements for which any Issuing Bank has not been  reimbursed or to a Defaulting Lender’s participation in respect of Letter of Credit Exposure, as the case  may be, and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations  of the Borrower for the Letter of Credit Exposure at such time or be applied to satisfy any other Obligations  then due and owing.  If the Borrower is required to provide an amount of Cash Collateral hereunder as a  result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall  

 

43  be returned to the Borrower within ten (10) Business Days after such Event of Default has been cured or  waived as confirmed in writing by the Required Lenders.   Interest Elections.  (a) Elections by Borrower for Borrowings.  The Loans comprising each Borrowing initially  shall be of the Type specified in the applicable Borrowing Request.  Thereafter, the Borrower may elect to  convert such Borrowing to a Borrowing of a different Type.  The Borrower may elect different options with  respect to different portions of the affected Borrowing, in which case each such portion shall be allocated  ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each  such portion shall be considered a separate Borrowing.  This Section shall not apply to Swingline Loans,  which may not be converted.  (b) Notice of Elections.  To make an election pursuant to this Section, the Borrower shall notify  the Administrative Agent of such election in writing by delivering an Interest Election Request (delivered  by hand or fax) or through an Electronic System, if arrangements for doing so have been approved by the  Administrative Agent, which request must be received by the Administrative Agent not later than the time  that a Borrowing Request would be required under Section 2.3 if the Borrower were requesting a Borrowing  of the Type resulting from such election to be made on the effective date of such election.  (c) Content of Interest Election Requests.  Each Interest Election Request pursuant to this  Section shall specify the following information in compliance with Section 2.2:  (i) the Borrowing and Facility to which such Interest Election Request applies  and, if different options are being elected with respect to different portions thereof, the portions  thereof to be allocated to each resulting Borrowing (in which case the information to be specified  pursuant to clause (iii) below shall be specified for each resulting Borrowing);  (ii) the effective date of the election made pursuant to such Interest Election  Request, which shall be a Business Day; and  (iii) whether the resulting Borrowing is to be an ABR Borrowing or a SOFR  Borrowing.  (d) Notice by Administrative Agent to Lenders.  Promptly following receipt of an Interest  Election Request, the Administrative Agent shall advise each applicable Lender of the details thereof and  such Lender’s portion of each resulting Borrowing.  (e) Events of Default.  Notwithstanding anything to the contrary contained herein, while an  Event of Default exists, upon written notice from the Administrative Agent to the Borrower (which notice  shall be delivered by the Administrative Agent upon the request of the Required Lenders, provided, that,  the following conditions shall apply automatically and without further action by the Administrative Agent  or the Lenders, regardless of whether any such notice is delivered to the Borrower), (i) no outstanding  Borrowing may be converted to a SOFR Borrowing and (ii) unless repaid, each SOFR Borrowing shall  automatically be converted to an ABR Borrowing.  

 

44  Prepayments.  (a) Optional Prepayments.    (i) Revolving Loan, Term Loans and CapEx Loans.  The Borrower may, upon notice  to the Administrative Agent, at any time or from time to time voluntarily prepay Term Loans, Revolving  Loans and CapEx Loans in whole or in part without premium or penalty; provided that (A) such notice  must be in a form reasonably acceptable to the Administrative Agent and be received by the Administrative  Agent not later than 1:00 PM (1) one (1) Business Day prior to any date of prepayment a SOFR Borrowing  and (2) on the date of prepayment of an ABR Borrowing and (B) each partial prepayment of any Borrowing  shall be in an amount that would be permitted in the case of a Borrowing of the same Type as provided in  Section 2.2.  Each prepayment of a Borrowing shall be applied ratably to the Loans included in such  Borrowing.  Each such notice shall specify the date and amount of such prepayment and the Type and  Facility of Loans to be prepaid. The Administrative Agent will promptly notify each applicable Lender of  its receipt of each such notice, and of the amount of such Lender’s ratable portion of such prepayment  (based on such Lender’s Applicable Percentage in respect of the relevant Facility).  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.  Each prepayment of the outstanding Term  Loans or CapEx Loans after a CapEx Loan Conversion Date pursuant to this Section 2.8(a) shall be applied  to the principal repayment installments thereof as directed by the Borrower; provided, that in the event that  the Borrower does not specify the order in which to apply prepayments, the Borrower shall be deemed to  have elected that such prepayment be applied to reduce the scheduled installments of principal of such Term  Loans or ratably among such CapEx Loans in each case in reverse order of maturity.    (ii) Swingline Loans.  The Borrower may, upon notice to the Swingline Lender (with  a copy to the Administrative Agent), at any time or from time to time, voluntarily prepay Swingline Loans  in whole or in part without premium or penalty; provided that (A) such notice must be received by the  Swingline Lender and the Administrative Agent not later than 1:00 p.m. on the date of the prepayment, and  (B) any such prepayment shall be in a minimum principal amount of $[500,000].  Each such notice shall  specify the date and amount of such prepayment.  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.  (b) Mandatory Prepayments.  (i) Excess Revolving Exposure.  If for any reason the Aggregate Revolving Exposure  at any time exceeds the Revolving Commitments at such time, the Borrower shall, as promptly as  practicable, but in no event later than the next Business Day, repay Revolving Loans or Swingline Loans  (or a combination thereof) and Cash Collateralize Letter of Credit Exposure in an aggregate amount equal  to such excess.  (ii) Dispositions.    (A) Upon the sale or other disposition of any assets (including any disposition  of any property or assets to a Delaware Divided LLC pursuant to a Delaware LLC Division) by the  Borrower or Domestic Subsidiary to any Person (other than (1) to another Company or (2) in the ordinary  course of business (it being understood that the disposition of any property or assets to a Delaware Divided  LLC pursuant to a Delaware LLC Division is not a disposition to another Company or in the ordinary course  of business)), and, to the extent the proceeds of such sale or other disposition are in excess of Five Hundred  Thousand Dollars ($500,000) during any fiscal year of the Borrower and are not to be reinvested in fixed  assets or other similar assets within (I) one hundred eighty (180) days of such sale or other disposition or  

 

45  (II) if committed to be reinvested pursuant to a binding agreement within such 180 day period, two hundred  seventy (270) days of such sale or other disposition, the Borrower shall make a mandatory prepayment, on  the date of such sale or other disposition, in an amount equal to one hundred percent (100%) of the proceeds  of such disposition net of amounts required to pay taxes and reasonable costs applicable to such sale or  disposition.    (B) Upon the sale or other disposition of any assets by a Foreign Subsidiary to  any Person (other than (1) to another Company or (2) in the ordinary course of business), and, to the extent  the proceeds of such sale or other disposition are in excess of Five Hundred Thousand Dollars ($500,000)  during any fiscal year of the Borrower and are not to be reinvested in fixed assets or other similar assets  within (I) one hundred eighty (180) days of such sale or other disposition or (II) if committed to be  reinvested pursuant to a binding agreement within such 180 day period, two hundred seventy (270) days of  such sale or other disposition, the Borrower shall make a mandatory prepayment, on the date of such sale  or other disposition, in an amount equal to one hundred percent (100%) of the proceeds of such disposition  net of amounts required to pay taxes and reasonable costs applicable to such sale or disposition.   (iii) Material Recovery Events.    (A) Within ten (10) days after the occurrence of a Material Domestic Recovery  Event, the Borrower shall furnish to the Administrative Agent written notice thereof.  Within forty-five (45)  days after such Material Domestic Recovery Event, the Borrower shall notify the Administrative Agent of  the Borrower’s determination as to whether or not to replace, rebuild or restore the affected property (a  “Material Domestic Recovery Determination Notice”).  If the Borrower decides not to replace, rebuild or  restore such property, or if the Borrower has not delivered the Material Domestic Recovery Determination  Notice within forty-five (45) days after such Material Domestic Recovery Event, then the proceeds of  insurance paid in connection with such Material Domestic Recovery Event, when received, shall be paid as  a mandatory prepayment under this Section 2.8(b).  If the Borrower decides to replace, rebuild or restore  such property, then any such replacement, rebuilding or restoration must be (A) commenced within six  months of the date of the Material Domestic Recovery Event, and (B) substantially completed within twelve  (12) months of such commencement date or such longer period of time necessary to complete the work  with reasonable diligence and approved in writing by the Administrative Agent, in its reasonable discretion,  with such casualty insurance proceeds and other funds available to the appropriate Companies for  replacement, rebuilding or restoration of such property.  Any amounts of such insurance proceeds in  connection with such Material Domestic Recovery Event not applied to the costs of replacement or  restoration shall be applied as a mandatory prepayment under this Section 2.8(b).  (B) Within ten (10) days after the occurrence of a Material Foreign Recovery  Event, the Borrower shall furnish to the Administrative Agent written notice thereof.  Within forty-five (45)  after such Material Foreign Recovery Event, the Borrower shall notify the Administrative Agent of the  Borrower’s determination as to whether or not to replace, rebuild or restore the affected property (a  “Material Foreign Recovery Determination Notice”).  If the Borrower decides not to replace, rebuild or  restore such property, or if the Borrower has not delivered the Material Foreign Recovery Determination  Notice within forty-five (45) days after such Material Foreign Recovery Event, then the proceeds of  insurance paid in connection with such Material Foreign Recovery Event, when received, shall be paid as  a mandatory prepayment under this Section 2.8(b).  If the Borrower decides to replace, rebuild or restore  such property, then any such replacement, rebuilding or restoration must be (A) commenced within six  months of the date of the Material Foreign Recovery Event, and (B) substantially completed within twelve  (12) months of such commencement date or such longer period of time necessary to complete the work  with reasonable diligence and approved in writing by the Administrative Agent, in its reasonable discretion,  with such casualty insurance proceeds and other funds available to the appropriate Companies for  replacement, rebuilding or restoration of such property.  Any amounts of such insurance proceeds in  

 

46  connection with such Material Foreign Recovery Event not applied to the costs of replacement or restoration  shall be applied as a mandatory prepayment under this Section 2.8(b).  (iv) Additional Indebtedness.    (A) If, at any time, any of the Borrower or a Domestic Subsidiary shall incur  Indebtedness other than Indebtedness permitted pursuant to Section 5.8 hereof (which other Indebtedness  shall not be incurred without the prior written consent of the Administrative Agent and the Required  Lenders), the Borrower shall make a mandatory prepayment, on the date that such Indebtedness is incurred,  in an amount equal to one hundred percent (100%) of the net cash proceeds of such Indebtedness, net of  costs and expenses related thereto.  (B) If, at any time, any Foreign Guarantor of Payment shall incur Indebtedness  other than Indebtedness permitted pursuant to Section 5.8 hereof (which other Indebtedness shall not be  incurred without the prior written consent of the Administrative Agent and the Required Lenders), the  Borrower shall make a mandatory prepayment, on the date that such Indebtedness is incurred, in an amount  equal to one hundred percent (100%) of the net cash proceeds of such Indebtedness, net of costs and  expenses related thereto.  (v) Application of Mandatory Prepayments.  Prepayments of the Loans made pursuant  to this Section 2.8(b) shall be applied first, only to the extent any CapEx Loans have been funded hereunder  and only after giving effect to any such respective CapEx Loan Conversion Date, to prepay any such funded  CapEx Loans on a pro rata basis to any remaining scheduled installments of principal on such Loans in  accordance with the respective outstanding principal amounts thereof, in each case, in the inverse order of  scheduled maturities, second, to payment in full of the principal amount of the Term Loan by application  to the unpaid installments of principal in the inverse order of scheduled maturities, and third, to the  repayment of any Revolving Loans.  Termination or Reduction of Commitments.  (a) Scheduled Termination.  Unless previously terminated, all Revolving Commitments shall  terminate on the Revolving Maturity Date.  The Term Loan Commitments shall terminate at 5:00 p.m. on  the Closing Date or, if earlier, upon the making of the Term Loans on the Closing Date.  Unless previously  terminated, the CapEx Loan Commitments shall terminate at 5:00 p.m. on the CapEx Loan Commitment  Expiration Date.   (b) Voluntary Termination or Reduction.  The Borrower may at any time terminate, or from  time to time reduce, the Revolving Commitments or the CapEx Loan Commitments; provided that (i) the  Borrower shall not terminate or reduce (A) the Revolving Commitments if, after giving effect to any  concurrent reduction of the Aggregate Revolving Exposure, the Aggregate Revolving Exposure would  exceed the Revolving Commitments or (B) the CapEx Loan Commitments if, after giving effect to such  reduction, the aggregate amount of outstanding CapEx Loans would exceed the CapEx Loan Commitments  and (ii) each such reduction of the Revolving Commitments or the CapEx Loan Commitments shall be in  an amount equal to $1,000,000 or a larger multiple of $500,000.  (c) Commitment Reduction Notice.  The Borrower shall notify the Administrative Agent of  any election to terminate or reduce the Revolving Commitments or the CapEx Loan Commitments under  Section 2.9(b) at least three (3) Business Days prior to the effective date of such termination or reduction,  specifying such election and the effective date thereof.  Promptly following receipt of any such notice, the  Administrative Agent shall advise the Revolving Lenders or the CapEx Lenders, as applicable, of the  contents thereof.  Each notice delivered by the Borrower pursuant to this Section shall be irrevocable;  

 

47  provided that a notice of termination of the Revolving Commitments or the CapEx Loan Commitments  may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such  notice may be revoked by the Borrower by written notice if such condition is not satisfied.  Each reduction,  and any termination, of the Revolving Commitments or the CapEx Loan Commitments shall be permanent  and each reduction of the Revolving Commitments or the CapEx Loan Commitments shall be made ratably  among the Revolving Lenders or CapEx Lenders, as applicable, in accordance with their respective  Revolving Commitments or CapEx Loan Commitments, as applicable.  Repayment of Loans.  (a) Revolving Loans.  The Borrower shall repay to the Administrative Agent for the ratable  account of the Revolving Lenders on the Revolving Maturity Date the aggregate principal amount of all  Revolving Loans outstanding on such date.     (b) Swingline Loans.  The Borrower shall repay each Swingline Loan to the Swingline Lender  on the earlier to occur of (i) the date five (5) Business Days after such Swingline Loan is made and (ii) the  Revolving Maturity Date; provided that on each date that a Revolving Loan is made, the Borrower shall  repay all Swingline Loans then outstanding and the proceeds of any such Borrowing shall be applied by the  Administrative Agent to repay any Swingline Loans outstanding.  At any time that there shall exist a  Defaulting Lender, immediately upon the request of the applicable Swingline Lender, the Borrower shall  repay the outstanding Swingline Loans made by such Swingline Lender in an amount sufficient to eliminate  any Fronting Exposure in respect of such Swingline Loans.  (c) Term Loans.  The Borrower shall repay to the Administrative Agent for the ratable account  of the Term Lenders the aggregate principal amount of all Term Loans in the amounts and on the dates as  set forth on Schedule 2.10(c) (which principal amounts shall be reduced as a result of the application of  prepayments in accordance with Section 2.8).  The remaining principal balance of the Term Loan shall be  repaid in full on the Term Loan Maturity Date.  (d) CapEx Loans.    (i) The Borrower shall repay to the Administrative Agent for the ratable account of  the CapEx Lenders the aggregate principal amount of all CapEx Loans in accordance with the terms of  Section 2.10(d)(ii) (which principal amounts shall be reduced as a result of the application of prepayments  in accordance with Section 2.8).  (ii) The outstanding principal amount of all CapEx Loans advanced hereunder (A)  during the Initial CapEx Availability Period shall convert to a term loan on the 2025 CapEx Loan  Conversion Date, (B) during the Second CapEx Availability Period shall convert to a term loan on the 2026  CapEx Loan Conversion Date, and (C) during the Final CapEx Availability Period shall convert to a term  loan on the 2027 CapEx Loan Conversion Date.  Following each applicable CapEx Loan Conversion Date,  the CapEx Loans so converted shall amortize in equal monthly installments of principal equal to the amount  necessary to amortize such CapEx Loans over a five (5) year period.  Each such installment shall be payable  on the 10th day of each calendar month following each applicable CapEx Loan Conversion Date.  The  remaining principal balance of the CapEx Loans shall be repaid in full on the CapEx Loan Maturity Date.  Interest.  (a) Interest Rates.  Subject to Section 2.11(b), (i) each ABR Loan (including each Swingline  Loan) shall bear interest at a rate per annum equal to the ABR plus the Applicable Margin for such Facility  

 

48  and (ii) each SOFR Loan shall bear interest at a rate per annum equal to Daily Simple SOFR plus the  Applicable Margin for such Facility.   (b) Default Interest.  If any amount payable by the Borrower under this Agreement or any other  Loan Document (including principal of any Loan, interest, fees and other amount) is not paid when due,  whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a rate  per annum equal to the applicable Default Rate.  Notwithstanding anything to the contrary contained herein,  while an Event of Default exists, upon written notice from the Administrative Agent to the Borrower (which  notice shall be delivered by the Administrative Agent upon the request of the Required Lenders), the  principal amount of all Loans outstanding hereunder shall bear interest at a rate per annum equal to the  applicable Default Rate.  (c) Payment Dates.  Accrued interest on each Loan shall be payable by the Borrower in arrears  on each Interest Payment Date applicable thereto and at such other times as may be specified herein;  provided that (i) interest accrued pursuant to Section 2.11(b) shall be payable on demand, (ii) in the event  of any repayment or prepayment of any Loan (other than a prepayment of an ABR Loan prior to the  applicable Maturity Date), accrued interest on the principal amount repaid or prepaid shall be payable on  the date of such repayment or prepayment and (iii) in the event of any conversion of any SOFR Borrowing,  accrued interest on such Borrowing shall be payable on the effective date of such conversion.  (d) Maximum Rate.  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 Lenders 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 Lenders exceeds the Maximum Rate, the  Lenders may, to the extent permitted by applicable Law, (i) characterize any payment that is not principal  as an expense, fee, or premium rather than interest, (ii) exclude voluntary prepayments and the effects  thereof and (iii) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest  throughout the contemplated term of the Obligations hereunder.  (e) Conforming Changes.  In connection with the use or administration of Daily Simple SOFR,  the Administrative Agent will have the right to make Conforming Changes from time to time and,  notwithstanding anything to the contrary herein or in any other Loan Document, any amendments  implementing such Conforming Changes will become effective without any further action or consent of  any other party to this Agreement or any other Loan Document.  The Administrative Agent will promptly  notify the Borrower and the Lenders of the effectiveness of any Conforming Changes in connection with  the use or administration of Daily Simple SOFR.  Fees.  (a) Unused Facility Fee.  The Borrower shall pay to the Administrative Agent, (i) for the  account of each Revolving Lender in accordance with its Applicable Percentage, an unused facility fee,  which fee shall accrue at a rate equal to the Applicable Margin on the daily unused amount of the Revolving  Commitments during the Availability Period and (ii) for the account of each CapEx Lender in accordance  with its Applicable Percentage, an unused facility fee, which fee shall accrue at a rate equal to the  Applicable Margin on the daily unused amount of the CapEx Commitments during the CapEx Availability  Period. For purposes of computing the unused facility fee, the Revolving Commitment of any Revolving  Lender shall be deemed to be used to the extent of the aggregate principal amount at such time of its  outstanding Revolving Loans and such Lender’s Letter of Credit Exposure (but not to the extent of such  Lender’s Swingline Exposure).  Accrued unused facility fees shall be payable in arrears on the 10th day of  

 

49  each calendar month and on the last day of the Availability Period or the CapEx Availability Period, as  applicable, commencing on the first such date to occur after the Closing Date.  (b) Letter of Credit Fees.  The Borrower shall pay (i) to the Administrative Agent, for the  account of the Revolving Lenders, a letter of credit fee with respect to each Letter of Credit, for each day  from and excluding the date of issuance of such Letter of Credit to and including the date of expiration or  termination thereof, equal to (A) the stated amount of such Letter of Credit on the date of its issuance or  renewal, as the case may be, multiplied by (B) the Applicable Margin for SOFR Revolving Loans, such  fees to be payable in arrears on the 10th day of each calendar month (the “Letter of Credit Fees”) and (ii) to  each Issuing Bank for its own account a fronting fee with respect to each Letter of Credit issued by such  Issuing Bank at a rate per annum equal to the percentage agreed upon between the Borrower and such  Issuing Bank on the daily maximum amount then available to be drawn under such Letter of Credit to and  including the date of expiration or termination thereof.  In addition, the Borrower shall also pay to each  Issuing Bank any and all fees and expenses as agreed upon by such Issuing Bank and the Borrower in  connection with any Letter of Credit, including in connection with the issuance, amendment or renewal of  any such Letter of Credit and any acceptances created thereunder.  All such Letter of Credit Fees and other  charges shall be fully-earned when due and non-refundable.  Notwithstanding anything to the contrary  contained herein, while an Event of Default exists, upon written notice from the Administrative Agent to  the Borrower (which notice shall be delivered by the Administrative Agent upon the request of the Required  Lenders, provided that no such notification shall be required, and the following fees shall automatically be  payable, in the case of an Event of Default under Sections 7.1(a), (l)(vi) or (l)(vii))  all Letter of Credit Fees  shall accrue at the Default Rate.  All Letter of Credit Fees accrued at the Default Rate shall be due and  payable on demand.  (c) Other Fees.  The Borrower shall pay to the Arranger and the Administrative Agent for their  own respective accounts fees in the amounts and at the times specified in the Administrative Agent Fee  Letter.  Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.  Computation of Interest and Fees.    (a) All computations of interest on SOFR Loans shall be computed on a 365/360 basis; that is,  in the case of interest, by applying the ratio of the interest rate over a year of 360 days, multiplied by the  outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding.  All computations of interest on all other Obligations and fees hereunder (other than on SOFR Loans) shall  be computed on a made on the actual number of days elapsed over a year of 365 or 366 days, as applicable.  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 2.11(d), bear interest for one (1) day.   Each determination by the Administrative Agent (or any Issuing Bank as the case may be) of an interest  rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error.   (b) If, as a result of any restatement of or other adjustment to the financial statements of the  Borrower or for any other reason, the Borrower, the Administrative Agent or the Lenders reasonably  determine that (i) the  Leverage Ratio as calculated by the Borrower as of any applicable date was inaccurate  and (ii) a proper calculation of the Leverage Ratio would have resulted in higher pricing for such period,  the Borrower shall immediately and retroactively be obligated to pay to the Administrative Agent for the  account of the Lenders, as applicable, promptly on demand by the Administrative Agent (or, after the  occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under any  bankruptcy or insolvency law, automatically and without further action by the Administrative Agent or the  Lenders), an amount equal to the excess of the amount of interest and fees that should have been paid for  such period over the amount of interest and fees actually paid for such period.  

 

50  Payments.  Payments Generally.  All payments to be made by any Loan Party under this Agreement and the  other Loan Documents shall be made free and clear of and without condition or deduction for any  counterclaim, defense, recoupment or setoff.  Except as otherwise expressly provided herein or in the  applicable Loan Document, all such payments by the Loan Parties shall be made to the Administrative  Agent, for the account of the respective Lenders to which such payment is owed, in Dollars and in  immediately available funds not later than 11:00 a.m. on the date specified herein or therein.  All payments  received by the Administrative Agent after such time shall be deemed received on the next succeeding  Business Day and any applicable interest or fee shall continue to accrue.  The Administrative Agent will  promptly distribute to each Lender its ratable share (or other applicable share as provided herein) of such  payment in like funds as received by wire transfer to such Lender’s applicable lending office (or otherwise  distribute such payment in like funds as received to the Person or Persons entitled thereto as provided  herein).   If any payment to be made by any Loan Party shall come due on a day other than a Business Day,  the due date shall be extended to the next succeeding Business Day, and such extension of time shall be  reflected in computing interest or fees, as the case may be.  A notice of the Administrative Agent to the  Borrower with respect to any amount owing under this Section 2.14(a) shall be conclusive, absent manifest  error.  (a) Administrative Agent’s Clawback.  (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 making of any  Loan that such Lender will not make available to the Administrative Agent such Lender’s Applicable  Percentage of such Loan, the Administrative Agent may assume that such Lender has made such share  available on such date in accordance with Section 2.4 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 Loan available to the Administrative Agent, then such Lender and the Borrower severally  agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest  thereon for each day from and including the date such amount is made available to the Borrower to but  excluding the date of payment to the Administrative Agent, at (A) in the case of a payment to be made by  such Lender, the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in  accordance with banking industry rules on interbank compensation, and (B) in the case of a payment to be  made by the Borrower, the interest rate applicable at the time to such Loan.  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 Loan to the Administrative Agent,  then the amount so paid shall constitute such Lender’s Applicable Percentage of such Loan.  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 date on which any payment  is due to the Administrative Agent for the account of the Lenders, any Issuing Bank or the Swingline Lender  hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the  Borrower has made such payment on such date in accordance herewith and may, in reliance upon such  assumption, distribute to the Lenders, such Issuing Bank or the Swingline Lender, as the case may be, the  amount due.  In such event, if the Borrower has not in fact made such payment, then each of the Lenders,  such Issuing Bank or the Swingline Lender, as the case may be, severally agrees to repay to the  Administrative Agent forthwith on demand the amount so distributed to such Lender, such Issuing Bank or  the Swingline Lender, with interest thereon, for each day from and including the date such amount is  

 

51  distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the  Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry  rules on interbank compensation.  (b) Several Obligations of Lenders.  The obligations of the Lenders hereunder to make Loans,  to fund participations in Letters of Credit and Swingline Loans and to make payments pursuant to Section  9.4(c) are several and not joint.  The failure of any Lender to make any Loan or to fund any such  participation or to make any such payment 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 Loan, to fund its participations or to make its payment under Section 9.4(c).  (c) Application of Insufficient Payments.  Subject to Section 7.3, if at any time insufficient  funds are received by and available to the Administrative Agent to pay fully all amounts of principal,  unreimbursed LC Disbursements, interest, fees and other amounts then due hereunder, such funds shall be  applied (i) first, to pay interest, fees and other amounts then due hereunder, ratably among the parties  entitled thereto in accordance with the amounts of interest, fees and other amounts then due to such parties,  and (ii) second, to pay principal and unreimbursed LC Disbursements then due hereunder, ratably among  the parties entitled thereto in accordance with the amounts of principal or unreimbursed LC Disbursements,  as applicable, then due to such parties.  Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of setoff or  counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or  other Obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate  amount of its Loans and accrued interest thereon or other such Obligations greater than its pro rata share  thereof as provided herein, then such Lender shall (x) notify the Administrative Agent of such fact, and (y)  purchase (for cash at face value) participations in the Loans and such other Obligations 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 principal of and accrued interest on their  respective Loans and other amounts owing them; provided that:  (i) if any such participations are purchased and all or any portion of the payment  giving rise thereto is recovered, such participations shall be rescinded and the purchase price  restored to the extent of such recovery, without interest; and  (ii) the provisions of this paragraph shall not be construed to apply to (x) any payment  made by the Borrower pursuant to and in accordance with the express terms of this Agreement  (including the application of funds arising from the existence of a Defaulting Lender), or (y) any  payment obtained by a Lender as consideration for the assignment of or sale of a participation in  any of its Loans or participations in LC Disbursements and Swingline Loans to any assignee or  participant.  The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable  Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against  each Loan Party rights of setoff and counterclaim with respect to such participation as fully as if such  Lender were a direct creditor of each Loan Party in the amount of such participation. Evidence of Debt.   (a) Maintenance of Records.  Each Lender shall maintain in accordance with its usual practice  records evidencing the indebtedness of the Borrower to such Lender resulting from each Credit Extension  made by such Lender.  The Administrative Agent shall maintain the Register in accordance with Section  

 

52  9.6(c).  The entries made in the records maintained pursuant to this paragraph (a) shall be prima facie  evidence absent manifest error of the existence and amounts of the obligations recorded therein.  Any failure  of any Lender or the Administrative Agent to maintain such records or make any entry therein or any error  therein shall not in any manner affect the obligations of the Borrower under this Agreement and the other  Loan Documents.  In the event of any conflict between the records maintained by any Lender and the  records maintained by the Administrative Agent in such matters, the records of the Administrative Agent  shall control in the absence of manifest error.  (b) Promissory Notes.  Upon the request of any Lender made through the Administrative  Agent, the Borrower shall prepare, execute and deliver to such Lender a Note, which shall evidence such  Lender’s Loans of a particular Class in addition to such records.  Defaulting Lenders.  (a) Defaulting Lender Adjustments.  Notwithstanding anything to the contrary contained in  this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no  longer a Defaulting Lender, to the extent permitted by applicable Law:  (i) Waivers and Amendments.  Such Defaulting Lender’s right to approve or  disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth  in the definition of Required Lenders and Section 9.1.  (ii) Defaulting Lender Waterfall.  Any payment of principal, interest, fees or other  amounts received by the Administrative Agent for the account of such Defaulting Lender (whether  voluntary or mandatory, at maturity, pursuant to Article VIII or otherwise) or received by the  Administrative Agent from a Defaulting Lender pursuant to Section 9.8 shall be applied at such time or  times as may be determined by the Administrative Agent as follows: first, to the payment of any amounts  owing by such Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro  rata basis of any amounts owing by such Defaulting Lender to any Issuing Bank or the Swingline Lender  hereunder; third, to Cash Collateralize the Issuing Banks’ Fronting Exposure with respect to such  Defaulting Lender in accordance with Section 2.17(a)(v); fourth, as the Borrower may request (so long as  no Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund  its portion thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so  determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro  rata in order to (x) satisfy such Defaulting Lender’s potential future funding obligations with respect to  Loans under this Agreement and (y) Cash Collateralize the Issuing Banks’ future Fronting Exposure with  respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in  accordance with Section 2.17(a)(v); sixth, to the payment of any amounts owing to the Lenders, the Issuing  Banks or the Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by  any Lender, any Issuing Bank or the Swingline Lender against such Defaulting Lender as a result of such  Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Default exists,  to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent  jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting  Lender’s breach of its obligations under this Agreement; and eighth, to such Defaulting Lender or as  otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of  the principal amount of any Loans or LC Disbursements in respect of which such Defaulting Lender has  not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were  issued at a time when the conditions set forth in Section 4.2 were satisfied or waived, such payment shall  be applied solely to pay the Loans of, and LC Disbursements owed to, all Non-Defaulting Lenders on a pro  rata basis prior to being applied to the payment of any Loans of, or LC Disbursements owed to, such  Defaulting Lender until such time as all Loans and funded and unfunded participations in Letter of Credit  

 

53  Exposure and Swingline Loans are held by the Lenders pro rata in accordance with the Commitments  without giving effect to clause (iv) below.  Any payments, prepayments or other amounts paid or payable  to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post  Cash Collateral pursuant to this Section shall be deemed paid to and redirected by such Defaulting Lender,  and each Lender irrevocably consents hereto.  (iii) Commitment and Letter of Credit Fees. (A) No Defaulting Lender shall be entitled to receive any fees pursuant to Section  2.12(a) for any period during which that Lender is a Defaulting Lender (and the Borrower shall not  be required to pay any such fee that otherwise would have been required to have been paid to that  Defaulting Lender).  (B)  Each Defaulting Lender shall be entitled to receive Letter of Credit Fees for any  period during which that Lender is a Defaulting Lender only to the extent allocable to its Applicable  Percentage of the stated amount of Letters of Credit for which it has provided Cash Collateral  pursuant to Section 2.6 or this Section 2.17.  (C)  With respect to any Letter of Credit Fee not required to be paid to any Defaulting  Lender pursuant to clause (B) above, the Borrower shall (x) pay to each Non-Defaulting Lender  that portion of any such fee otherwise payable to such Defaulting Lender with respect to such  Defaulting Lender’s participation in Letter of Credit Exposure that has been reallocated to such  Non-Defaulting Lender pursuant to clause (iv) below, (y) pay to each Issuing Bank the amount of  any such fee otherwise payable to such Defaulting Lender to the extent allocable to such Issuing  Bank’s Fronting Exposure to such Defaulting Lender, and (z) not be required to pay the remaining  amount of any such fee. (iv) Reallocation of Participations to Reduce Fronting Exposure.  All or any part of  such Defaulting Lender’s participation obligations in respect of Letter of Credit Exposure and Swingline  Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective  Applicable Percentages (calculated without regard to such Defaulting Lender’s Revolving Commitment)  but only to the extent that such reallocation does not cause the Revolving Exposure of any Non-Defaulting  Lender to exceed such Non-Defaulting Lender’s Revolving Commitment.  Subject to Section 9.18, no  reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a  Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a  Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such  reallocation.  (v) Cash Collateral, Repayment of Swingline Loans.  If the reallocation described in  clause (iv) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any  right or remedy available to it hereunder or under law, (x) first, prepay Swingline Loans in an amount equal  to the Swingline Lenders’ Fronting Exposure and (y) second, Cash Collateralize the Issuing Banks’  Fronting Exposure in accordance with the procedures set forth in Section 2.6(j).  (b) Defaulting Lender Cure.  If the Borrower, the Administrative Agent, the Swingline Lender  and each Issuing Bank agree in writing that a Lender is no longer a Defaulting Lender, the Administrative  Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and  subject to any conditions set forth therein (which may include arrangements with respect to any Cash  Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of  the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to  cause the Loans and funded and unfunded participations in Letters of Credit and Swingline Loans to be  

 

54  held pro rata by the Lenders in accordance with the Commitments (without giving effect to  paragraph (a)(iv) above), whereupon, such Lender will cease to be a Defaulting Lender; provided that no  adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of  the Borrower while that Lender was a Defaulting Lender; and provided, further, that except to the extent  otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender  will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having  been a Defaulting Lender.  (c) New Swingline Loans/Letters of Credit.  So long as any Lender is a Defaulting Lender,  (i) the Swingline Lender shall not be required to fund any Swingline Loans unless it is satisfied that it will  have no Fronting Exposure after giving effect to such Swingline Loan and (ii) no Issuing Bank shall be  required to issue, extend, increase, reinstate or renew any Letter of Credit unless it is satisfied that it will  have no Fronting Exposure after giving effect thereto.  ARTICLE III  TAXES, YIELD PROTECTION, ILLEGALITY  AND BENCHMARK REPLACEMENT  Taxes.  (a) Payments Free of Taxes.  Any and all payments by or on account of any obligation of any  Loan Party under any Loan Document shall be made without deduction or withholding for any Taxes,  except as required by applicable Law.  If any applicable Law requires the deduction or withholding of any  Tax from any such payment by the Administrative Agent or any Loan Party, then the Administrative Agent  or such Loan Party shall be entitled to make such deduction or withholding and shall timely pay the full  amount deducted or withheld to the relevant Governmental Authority in accordance with applicable Law  and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased  as necessary so that after such deduction or withholding has been made (including such deductions and  withholdings for Indemnified Taxes applicable to additional sums payable under this Section 3.1) the  applicable Recipient receives an amount equal to the sum it would have received had no such deduction or  withholding been made.  (b) Payment of Other Taxes by the Loan Parties.  The Loan Parties shall timely pay to the  relevant Governmental Authority in accordance with applicable Law, or at the option of the Administrative  Agent timely reimburse it for the payment of, any Other Taxes.  (c) Indemnification by the Loan Parties.  The Loan Parties shall jointly and severally  indemnify each Recipient, within ten (10) Business Days after demand therefor, for the full amount of any  Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable  under this Section 3.1) payable or paid by such Recipient or required to be withheld or deducted from a  payment to such Recipient and any penalties, interest and reasonable expenses arising therefrom or with  respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the  relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to  the Borrower by a Lender or an Issuing Bank (with a copy to the Administrative Agent), or by the  Administrative Agent on its own behalf or on behalf of a Lender or an Issuing Bank, shall be conclusive  absent manifest error.  (d) Indemnification by Lenders.  Each Lender shall severally indemnify the Administrative  Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender  (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such  Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable  

 

55  to such Lender’s failure to comply with the provisions of Section 9.6(d) relating to the maintenance of a  Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable  or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses  arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or  asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability  delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each  Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time  owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the  Lender from any other source against any amount due to the Administrative Agent under this paragraph  (d).  (e) Evidence of Payments.  As soon as practicable after any payment of Taxes by any Loan  Party to a Governmental Authority pursuant to this Section 3.1, such Loan Party shall deliver to the  Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority  evidencing such payment, a copy of the return reporting such payment or other evidence of such payment  reasonably satisfactory to the Administrative Agent.  (f) Status of Lenders.  (i) Any Lender that is entitled to an exemption from or reduction of  withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower  and the Administrative Agent, at the time or times reasonably requested by the Borrower or the  Administrative Agent, such properly completed and executed documentation reasonably requested by the  Borrower or the Administrative Agent as will permit such payments to be made without withholding or at  a reduced rate of withholding.  In addition, any Lender, if reasonably requested by the Borrower or the  Administrative Agent, shall deliver such other documentation prescribed by applicable Law or reasonably  requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative  Agent to determine whether or not such Lender is subject to backup withholding or information reporting  requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the completion,  execution and submission of such documentation (other than such documentation set forth in  paragraphs (f)(ii)(A), (ii)(B) and (ii)(D) of this Section) shall not be required if in the Lender’s reasonable  judgment such completion, execution or submission would subject such Lender to any material  unreimbursed cost or expense or would materially prejudice the legal or commercial position of such  Lender.  (ii) Without limiting the generality of the foregoing, in the event that the Borrower is  a U.S. Person,  (A) any Lender that is a U.S. Person shall deliver to the Borrower and the  Administrative Agent on or about the date on which such Lender becomes a Lender under  this Agreement (and from time to time thereafter upon the reasonable request of the  Borrower or the Administrative Agent), executed copies of IRS Form W-9 certifying that  such Lender is exempt from U.S. federal backup withholding tax;  (B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver  to the Borrower and the Administrative Agent (in such number of copies as shall be  requested by the recipient) on or about the date on which such Foreign Lender becomes a  Lender under this Agreement (and from time to time thereafter upon the reasonable request  of the Borrower or the Administrative Agent), whichever of the following is applicable:  (1) in the case of a Foreign Lender claiming the benefits of an income  tax treaty to which the United States is a party (x) with respect to payments of  interest under any Loan Document, executed copies of IRS Form W-8BEN or IRS  

 

56  Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal  withholding Tax pursuant to the “interest” article of such tax treaty and (y) with  respect to any other applicable payments under any Loan Document, IRS Form W- 8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of,  U.S. federal withholding Tax pursuant to the “business profits” or “other income”  article of such tax treaty;  (2) executed copies of IRS Form W-8ECI;  (3) in the case of a Foreign Lender claiming the benefits of the  exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate  substantially in the form of Exhibit E-1 to the effect that such Foreign Lender is  not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a  “10 percent shareholder” of the Borrower within the meaning of  Section 871(h)(3)(B) of the Code, or a “controlled foreign corporation” related to  the Borrower as described in Section 881(c)(3)(C) of the Code (a “U.S. Tax  Compliance Certificate”) and (y) executed copies of IRS Form W-8BEN or IRS  Form W-8BEN-E; or  (4) to the extent a Foreign Lender is not the beneficial owner,  executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS  Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate  substantially in the form of Exhibit E-2 or Exhibit E-3, IRS Form W-9, and/or  other certification documents from each beneficial owner, as applicable; provided  that if the Foreign Lender is a partnership and one or more direct or indirect  partners of such Foreign Lender are claiming the portfolio interest exemption, such  Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in  the form of Exhibit E-4 on behalf of each such direct and indirect partner;  (C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver  to the Borrower and the Administrative Agent (in such number of copies as shall be  requested by the recipient) on or about the date on which such Foreign Lender becomes a  Lender under this Agreement (and from time to time thereafter upon the reasonable request  of the Borrower or the Administrative Agent), executed copies of any other form prescribed  by applicable Law as a basis for claiming exemption from or a reduction in U.S. federal  withholding Tax, duly completed, together with such supplementary documentation as may  be prescribed by applicable Law to permit the Borrower or the Administrative Agent to  determine the withholding or deduction required to be made; and  (D) if a payment made to a Lender under any Loan Document would be subject  to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply  with the applicable reporting requirements of FATCA (including those contained in  Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the  Borrower and the Administrative Agent at the time or times prescribed by law and at such  time or times reasonably requested by the Borrower or the Administrative Agent such  documentation prescribed by applicable Law (including as prescribed by  Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably  requested by the Borrower or the Administrative Agent as may be necessary for the  Borrower and the Administrative Agent to comply with their obligations under FATCA  and to determine that such Lender has complied with such Lender’s obligations under  FATCA or to determine the amount, if any, to deduct and withhold from such payment.   

 

57  Solely for purposes of this clause (D), “FATCA” shall include any amendments made to  FATCA after the date of this Agreement.  Each Lender agrees that if any form or certification it previously delivered expires or becomes  obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the  Borrower and the Administrative Agent in writing of its legal inability to do so.  (h) Treatment of Certain Refunds.  If any party determines, in its sole discretion exercised in  good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this  Section 3.1 (including by the payment of additional amounts pursuant to this Section 3.1), it shall pay to  the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made  under this Section 3.1 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses  (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant  Governmental Authority with respect to such refund).  Such indemnifying party, upon the request of such  indemnified party, shall repay to such indemnified party the amount paid over pursuant to this Section  3.1(h) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in  the event that such indemnified party is required to repay such refund to such Governmental Authority.   Notwithstanding anything to the contrary in this Section 3.1(h), in no event will the indemnified party be  required to pay any amount to an indemnifying party pursuant to this Section 3.1(h) the payment of which  would place the indemnified party in a less favorable net after-Tax position than the indemnified party  would have been in if the Tax subject to indemnification and giving rise to such refund had not been  deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with  respect to such Tax had never been paid.  This Section 3.1(h) shall not be construed to require any  indemnified party to make available its Tax returns (or any other information relating to its Taxes that it  deems confidential) to the indemnifying party or any other Person.  (i) Survival.  Each party’s obligations under this Section 3.1 shall survive any resignation of  the Administrative Agent or any Issuing Bank, any transfer of rights or Obligations by, or the replacement  of, any Lender, the termination of the Commitments and repayment, satisfaction or discharge of the  Obligations.  Illegality.  If any Lender determines that any Law has made it unlawful, or that any  Governmental Authority has asserted that it is unlawful, for any Lender or its applicable lending office to  make, maintain or fund Loans whose interest is determined by reference to SOFR or Daily Simple SOFR,  or to determine or charge interest rates based upon SOFR or Daily Simple SOFR, then, upon notice thereof  by such Lender to the Borrower (through the Administrative Agent), (a) any obligation of the Lenders to  make SOFR Loans, and any right of the Borrower to continue SOFR Loans or to convert ABR Loans to  SOFR Loans, shall be suspended, and (b) the interest rate on ABR Loans shall, if necessary to avoid such  illegality, be determined by the Administrative Agent without reference to clause (c) of the definition of  “ABR”, in each case until each affected 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, if necessary to avoid such illegality, upon demand from any Lender (with a copy to the  Administrative Agent), prepay or, if applicable, convert all SOFR Loans to ABR Loans (the interest rate  on which ABR Loans shall, if necessary to avoid such illegality, be determined by the Administrative Agent  without reference to clause (c) of the definition of “ABR”), in each case until the Administrative Agent is  advised in writing by each affected Lender that it is no longer illegal for such Lender to determine or charge  interest rates based upon SOFR or Daily Simple SOFR.  Inability to Determine Rates.  Subject to Section 3.6, if at any time (a) the Administrative  Agent determines (which determination shall be conclusive and binding absent manifest error) that Daily  Simple SOFR cannot be determined pursuant to the definition thereof (including because SOFR is not  

 

58  available or published on a current basis) or (b) the Administrative Agent is advised by the Required  Lenders that Daily Simple SOFR does not adequately and fairly reflect the cost to such Lenders of making  or maintaining their Loans hereunder, the Administrative Agent will promptly so notify the Borrower and  each Lender.  Thereafter, the obligation of the Lenders to make or maintain SOFR Loans shall be suspended  (and the interest rate on ABR Loans shall be determined by the Administrative Agent without reference to  clause (c) of the definition of “ABR”) until the Administrative Agent (with respect to clause (b), upon the  instruction of the Required Lenders) revokes such notice.  Upon receipt of such notice, the Borrower may  revoke any pending request for a borrowing of, conversion to or continuation of SOFR Loans or, failing  that, will be deemed to have converted such request into a request for ABR Loans in the amount specified  therein.  Subject to Section 3.6, if the Administrative Agent determines (which determination shall be  conclusive and binding absent manifest error) that Daily Simple SOFR cannot be determined pursuant to  the definition thereof on any given day, the interest rate on ABR Loans shall be determined by the  Administrative Agent without reference to clause (c) of the definition of “ABR” until the Administrative  Agent revokes such determination.  Increased Costs.  (a) Increased Costs Generally.  If any Change in Law shall (i) impose, modify or deem  applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against  assets of, deposits with or for the account of, or credit extended or participated in by, any Lender or any  Issuing Bank, (ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes  described in clauses (b) through (e) of the definition of Excluded Taxes and (C) Connection Income Taxes)  on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves,  other liabilities or capital attributable thereto or (iii) impose on any Lender or any Issuing Bank any other  condition, cost or expense (other than Taxes) affecting this Agreement or Loans made or maintained by  such Lender or any Letter of Credit or participation therein, and the result of any of the foregoing shall be  to increase the cost to such Lender, such Issuing Bank or such other Recipient of making, converting to,  continuing or maintaining any Loan or of maintaining its obligation to make any such Loan, or to increase  the cost to such Lender, such Issuing Bank or such other Recipient of participating in, issuing or maintaining  any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to  reduce the amount of any sum received or receivable by such Lender, Issuing Bank or other Recipient  hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, Issuing  Bank or other Recipient, the Borrower will pay to such Lender, Issuing Bank or other Recipient, as the case  may be, such additional amount or amounts as will compensate such Lender, Issuing Bank or other  Recipient, as the case may be, for such additional costs incurred or reduction suffered.  (b) Capital Requirements.  If any Lender or Issuing Bank determines that any Change in Law  affecting such Lender or such Issuing Bank or any lending office of such Lender or such Lender’s or Issuing  Bank’s holding company, if any, regarding capital or liquidity requirements has or would have the effect  of reducing the rate of return on such Lender’s or Issuing Bank’s capital or on the capital of such Lender’s  or Issuing Bank’s holding company, if any, as a consequence of this Agreement, the Commitments of such  Lender or the Loans made or maintained by, or participations in Letters of Credit or Swingline Loans held  by, such Lender, or the Letters of Credit issued by any Issuing Bank, to a level below that which such  Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company could have achieved  but for such Change in Law (taking into consideration such Lender’s or Issuing Bank’s policies and the  policies of such Lender’s or such Issuing Bank’s holding company with respect to capital adequacy and  liquidity), then from time to time the Borrower will pay to such Lender or such Issuing Bank, as the case  may be, such additional amount or amounts as will compensate such Lender or such Issuing Bank or such  Lender’s or such Issuing Bank’s holding company for any such reduction suffered.  

 

59  (c) Certificates for Reimbursement; Delay in Requests.  A certificate of a Lender or an Issuing  Bank setting forth the amount or amounts necessary to compensate such Lender or its holding company as  specified in Section 3.7(a) or 3.7(b) and delivered to the Borrower shall be conclusive absent manifest error.   The Borrower shall pay such Lender or such Issuing Bank the amount shown as due on any such certificate  within ten (10) Business Days after receipt thereof.  Failure or delay on the part of a Lender or Issuing Bank  to demand compensation pursuant to this Section 3.4 shall not constitute a waiver of such Lender’s or such  Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to  compensate a Lender or Issuing Bank pursuant to this Section for any increased costs incurred or reductions  suffered more than nine (9) months prior to the date that such Lender or such Issuing Bank notifies the  Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or  such Issuing Bank’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 nine-month period referred to above shall be  extended to include the period of retroactive effect thereof).  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 incurred by it as a result of (a) any continuation, conversion,  payment or prepayment of any SOFR Loan on a day other than an Interest Payment Date (whether  voluntary, mandatory, automatic, by reason of acceleration, or otherwise) or (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 SOFR Loan on the date or in the amount notified by the Borrower, including any loss or expense arising  from the liquidation or reemployment of funds or from any fees payable.   Effect of Benchmark Transition Event .    (a) Benchmark Replacement.  Notwithstanding anything to the contrary herein or in any other  Loan Document, following the occurrence of a Benchmark Transition Event, the Benchmark Replacement  will replace then-current Benchmark for all purposes hereunder and under any Loan Document at the time  (not less than five Business Days after the Administrative Agent has provided notice thereof to each Lender)  set forth in the notice of implementation of such Benchmark Replacement provided by the Administrative  Agent to the Borrower and the Lenders, without any amendment to, or further action or consent of any other  party to, this Agreement or any other Loan Document, so long as the Administrative Agent has not received,  by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the  Required Lenders.  (b) Benchmark Replacement Conforming Changes.  In connection with the use,  administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent will  have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary  herein or in any other Loan Document, any amendments implementing such Conforming Changes will  become effective without any further action or consent of any other party to this Agreement or any other  Loan Document.  (c) Notices; Standards for Decisions and Determinations.  The Administrative Agent will  promptly notify the Borrower and the Lenders of (i) the implementation of any Benchmark Replacement  and (ii) the effectiveness of any Conforming Changes in connection with the use, administration, adoption  or implementation of a Benchmark Replacement.  The Administrative Agent will promptly notify the  Borrower of the commencement of any Benchmark Unavailability Period.  Any determination, decision or  election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders)  pursuant to this Section 3.6, including any determination with respect to a tenor, rate or adjustment or of  the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from  taking any action or any selection, will be conclusive and binding absent manifest error and may be made  

 

60  in its or their sole discretion and without consent from any other party to this Agreement or any other Loan  Document, except, in each case, as expressly required pursuant to this Section 3.6.  (d) Benchmark Unavailability Period.  Upon the Borrower’s receipt of notice of the  commencement of a Benchmark Unavailability Period, the Borrower may revoke any pending request for  a Borrowing of, conversion to or continuation of SOFR Loans to be made, converted or continued during  any Benchmark Unavailability Period and, failing that, (i) the Borrower will be deemed to have converted  any such request into a request for a Borrowing of or conversion to ABR Loans and (ii) any outstanding  affected SOFR Loans will be deemed to have been converted into ABR Loans immediately.  During a  Benchmark Unavailability Period, the component of ABR based upon the then-current Benchmark will not  be used in any determination of ABR.  Mitigation Obligations; Replacement of Lenders.  (a) Designation of a Different Lending Office.  If any Lender requests compensation under  Section 3.4, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or  any Governmental Authority for the account of any Lender pursuant to Section 3.1, then such Lender shall  (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or  booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices,  branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate  or reduce amounts payable pursuant to Section 3.1 or 3.4, as the case may be, in the future, and (ii) 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 3.4, or if the  Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any  Governmental Authority for the account of any Lender pursuant to Section 3.1 and, in each case, such  Lender has declined or is unable to designate a different lending office in accordance with paragraph (a) of  this Section, or if any Lender is a Defaulting Lender or a Non-Consenting Lender, 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 9.6), all of its interests, rights (other than its existing rights to payments  pursuant to Section 3.1 or 3.4) 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:  (i) the Borrower shall have received the prior written consent of the Administrative  Agent (and if a Revolving Commitment is being assigned, the Issuing Banks and the Swingline Lender),  which consent shall not unreasonably be withheld or delayed, and shall have paid to the Administrative  Agent the assignment fee (if any) specified in Section 10.6;  (ii) such Lender shall have received payment of an amount equal to the outstanding  principal of its Loans and participations in LC Disbursements, accrued interest thereon, accrued fees and  all other amounts payable to it hereunder and under the other Loan Documents (including any amounts  under Section 3.5) 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);  (iii) in the case of any such assignment resulting from a claim for compensation under  Section 3.4 or payments required to be made pursuant to Section 3.1, such assignment will result in a  reduction in such compensation or payments thereafter;  

 

61  (iv) such assignment does not conflict with applicable Law; and  (v) in the case of any assignment resulting from a Lender becoming a Non-Consenting  Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.  A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a  result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such  assignment and delegation cease to apply.  Notwithstanding anything in this Section to the contrary, (i) any Lender that acts as an Issuing Bank  may not be replaced hereunder at any time it has any Letter of Credit outstanding hereunder unless  arrangements satisfactory to such Lender (including the furnishing of a backstop standby letter of credit in  form and substance, and issued by an issuer, reasonably satisfactory to such Issuing Bank or the depositing  of Cash Collateral into a cash collateral account in amounts and pursuant to arrangements reasonably  satisfactory to such Issuing Bank) have been made with respect to such outstanding Letter of Credit and  (ii) the Lender that acts as the Administrative Agent may not be replaced hereunder except in accordance  with the terms of Section 8.6.  Each party hereto agrees that (i) an assignment required pursuant to this Section 3.7(b) may be  effected pursuant to an Assignment Agreement executed by the Borrower, the Administrative Agent and  the assignee (or, to the extent applicable, an agreement incorporating an Assignment Agreement by  reference pursuant to an Electronic System as to which the Administrative Agent and such parties are  participants), and (ii) the Lender required to make such assignment need not be a party thereto in order for  such assignment to be effective and shall be deemed to have consented to an be bound by the terms thereof;  provided that, following the effectiveness of any such assignment, the other parties to such assignment  agree to execute and deliver such documents necessary to evidence such assignment as reasonably  requested by the applicable Lender; provided further that any such documents shall be without recourse to  or warranty by the parties thereto.  ARTICLE IV  CONDITIONS PRECEDENT TO CREDIT EXTENSIONS  Conditions of Initial Credit Extension.  The effectiveness of this Agreement and the  obligation of the Lenders to make the initial Credit Extension hereunder are subject to the satisfaction of  the following conditions precedent:   (a) Documentation.  The Administrative Agent shall have received, in form and substance  satisfactory to the Administrative Agent, each of the following, duly executed and acknowledged where  appropriate by all parties thereto:  (i) this Agreement, the Notes, the Security Documents and the other Loan Documents;  (ii) a certificate from a Financial Officer of the Borrower certifying (A) that the  representations and warranties of the Loan Parties contained in Article V and each other Loan Document  are true and correct in all material respects (or, in the case of any such representation and warranty that is  subject to a materiality or Material Adverse Effect qualification, in all respects) on and as of the Closing  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), (B) that no Default exists as of the Closing  Date, and no Default shall occur on the Closing Date as a result of making any Credit Extension on the  Closing Date or from the application of the proceeds thereof, (C) since the date of the audited Consolidated  financial statements of the Borrower and its Subsidiaries, 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  

 

62  Effect and (D) the Solvency of each Loan Party, individually and together with its Subsidiaries on a  Consolidated basis, in each case before and after giving effect to the transactions contemplated under the  Loan Documents;  (iii) a certificate of a Financial  Officer of each Loan Party certifying as to the  incumbency and genuineness of the signature of each officer of such Loan Party executing Loan Documents  to which it is a party and certifying that attached thereto are true, correct and complete copies of (A) the  Organizational Documents of such Loan Party which, in the case of the articles or certificate of  incorporation or formation (or equivalent) of a Loan Party other than the Canadian Subsidiary Guarantor,  shall be certified as of a recent date by the appropriate Governmental Authority and (B) resolutions duly  adopted by the board of directors (or other governing body) of such Loan Party authorizing and approving  the transactions contemplated hereunder and the execution, delivery and performance of this Agreement  and the other Loan Documents to which it is a party;  (iv) a certificate as of a recent date of the good standing (or equivalent) of each Loan  Party under the Laws of its jurisdiction of incorporation, organization or formation (or equivalent), as  applicable, and, to the extent requested by the Administrative Agent, each other jurisdiction where such  Loan Party is qualified to do business; and  (v) favorable opinions of counsel to the Loan Parties, addressed to the Administrative  Agent, the Lenders and the Issuing Banks, in form and substance acceptable to the Administrative Agent.  (b) Personal Property Collateral Matters.  The Administrative Agent shall have received, in  form and substance satisfactory to the Administrative Agent (i) the results of lien searches (including UCC  and PPSA filings, intellectual property filings, judgments, pending litigation, bankruptcy and tax matters)  made against each Loan Party, each as of a recent date prior to the Closing Date, indicating among other  things that the assets of each Loan Party shall be free and clear of any Lien (except for Liens permitted  under Section 5.9 hereof) as of the Closing Date and (ii) all such documents as may be required by or  requested under the terms of any of the Security Documents with respect to personal property Collateral.  (c) Insurance.  The Administrative Agent shall have received, in form and substance  satisfactory to the Administrative Agent, evidence that all insurance required to be maintained pursuant to  the Loan Documents has been obtained and is in effect, together with the certificates of insurance and  endorsements to policies, naming the Administrative Agent as an additional insured or lender 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.  (d) Pay-Off Indebtedness.  All Indebtedness to be repaid shall have been, or concurrently with  the closing on the Closing Date will be, repaid in full, all commitments (if any) in respect thereof shall have  been, or concurrently with the closing on the Closing Date will be, terminated and all guarantees and  security therefor shall have been, or concurrently with the closing on the Closing Date will be, released.   The Administrative Agent shall have received pay-off letters in form and substance satisfactory to it  evidencing such repayment, termination and release.  (e) PATRIOT Act, etc.  Each Loan Party shall have provided to each Lender the  documentation and other information requested by such Lender in order to comply with requirements of  the PATRIOT Act, the Beneficial Ownership Regulation, the Canadian Anti-Money Laundering & Anti- Terrorism Legislation and applicable “know your customer” and anti-money laundering rules and  regulations.  

 

63  (f) Payment of Fees and Expenses.  The Borrower shall have paid, or made arrangements to  pay concurrently with the closing on the Closing Date, all fees, expenses, charges and other amounts  required to be paid on or prior to the Closing Date.  Without limiting the generality of Section 8.3, for purposes of determining satisfaction of  the conditions specified in this Section, 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.   The Administrative Agent shall notify the Borrower and the Lenders of the Closing Date,  and such notice shall be conclusive and binding.    Conditions to All Credit Extensions.  The obligation of the Lenders or any Issuing Bank to  make any Credit Extension shall be subject to the satisfaction of the following conditions precedent on the  relevant date such Credit Extension is made:  (a) Bring-down of Representations and Warranties.  The representations and warranties of  each Loan Party contained in the Loan Documents shall be true and correct in all material respects (or, in  the case of any such representation and warranty that is subject to a materiality or Material Adverse Effect  qualification, in all respects) on and as of the date such Loan is made, except to the extent that such  representations and warranties specifically refer to an earlier date, in which case they shall be true and  correct in all material respects (or, in the case of any such representation and warranty that is subject to a  materiality or Material Adverse Effect qualification, in all respects) as of such earlier date.  (b) No Default.  No Default shall exist as of the date such Credit Extension is made, and no  Default shall occur on such date as a result of making such Credit Extension or from the application of the  proceeds thereof.  (c) Request for Credit Extension.  The Administrative Agent shall have received a Borrowing  Request or the Administrative Agent and the applicable Issuing Bank shall have received a Letter of Credit  Application (or other notice requesting issuance of a Letter of Credit pursuant to Section 2.6(b)), as  applicable, in accordance with the requirements hereof.  The submission by the Borrower of a Borrowing Request or Letter of Credit Application (or other  notice requesting issuance of a Letter of Credit pursuant to Section 2.6(b)) shall be deemed to be a  representation and warranty by the Borrower that the conditions set forth in Sections 4.2(a) and 4.2(b) will  be satisfied on and as of the date of such Credit Extension, and the making of such Credit Extension shall  be deemed to be a representation and warranty by the Borrower that the conditions set forth in Sections  4.2(a) and 4.2(b) are satisfied on and as of such date.  ARTICLE V  COVENANTS  Until the indefeasible payment in full of the Obligations and the termination of the Commitments  hereunder, the Borrower shall, and shall cause each Loan Party, Subsidiary or Company, as applicable, to  comply with the covenants set forth below.  Insurance.  Each Company shall at all times maintain insurance upon its Inventory,  Equipment and other personal and real property (including, if applicable, insurance required by the National  Flood Insurance Reform Act of 1994) in such form, written by such companies, in such amounts, for such  

 

64  periods, and against such risks as is reasonable and standard for other companies engaged in similar  businesses as those of the Companies, with provisions satisfactory to the Administrative Agent for, with  respect to Loan Parties, payment of all losses thereunder to the Administrative Agent, for the benefit of  Secured Parties, and such Company as their interests may appear (with lender’s loss payable and additional  insured endorsements, as appropriate, in favor of the Administrative Agent, for the benefit of Secured  Parties), and, if required by the Administrative Agent, the Borrower shall deposit the policies with the  Administrative Agent.  Any such policies of insurance shall provide for no fewer than thirty (30) days prior  written notice of cancellation (other than with respect to any cancellation for non-payment of premiums,  which notice may be less than 30 days but at least 10 days) to the Administrative Agent and the Lenders.   Any sums received by the Administrative Agent, for the benefit of Secured Parties, in payment of insurance  losses, returns, or unearned premiums under the policies shall be applied as set forth in Section 2.8 hereof.   The Administrative Agent is hereby authorized to act as attorney-in-fact for the Companies, during the  continuance of an Event of Default, in obtaining, adjusting, settling and canceling such insurance and  indorsing any drafts.  In the event of failure to provide such insurance as herein provided, the Administrative  Agent may, at its option, provide such insurance and the Borrower shall pay to the Administrative Agent,  upon demand, the cost thereof.  Should the Borrower fail to pay such sum to the Administrative Agent upon  demand, interest shall accrue thereon, from the date of demand until paid in full, at the Default Rate.  Within  ten (10) days of the Administrative Agent’s written request, the Borrower shall furnish to the Administrative  Agent such information about the insurance of the Companies as the Administrative Agent may from time  to time reasonably request, which information shall be prepared in form and detail satisfactory to the  Administrative Agent and certified by a Financial Officer.  Money Obligations.  Each Company shall pay in full (a) prior in each case to the date when  penalties would attach, all material taxes, assessments and governmental charges and levies (except only  those so long as and to the extent that the same shall be contested in good faith by appropriate and timely  proceedings and for which adequate provisions have been established in accordance with GAAP and except  for taxes that are not overdue by more than 30 days) for which it may be or become liable or to which any  or all of its properties may be or become subject; (b) in the case of the Borrower and the Domestic  Subsidiaries, all of their respective material wage obligations to their respective employees in compliance  with the Fair Labor Standards Act (29 U.S.C. §§ 206-207) or any comparable provisions and, in the case  of the  Foreign Subsidiaries, those obligations under foreign Laws with respect to employee source  deductions, obligations and employer obligations to its employees; and (c) all of its other material  obligations calling for the payment of money (except only those so long as and to the extent that the same  shall be contested in good faith and for which adequate provisions have been established in accordance  with GAAP) before such payment becomes overdue.   Financial Statements and Information.  (a) Quarterly Financials.  The Borrower shall deliver to the Administrative Agent and the  Lenders, within fifty (50) days after the end of each fiscal quarter of each fiscal year of the Borrower (or,  if earlier, within five days after the date on which the Borrower shall be required to submit its Form 10-Q),  balance sheets of the Companies as of the end of such period and statements of income (loss), stockholders’  equity and cash flow for the quarter and fiscal year to date periods, all prepared by the Borrower on a  Consolidated basis, in accordance with GAAP, and in form and detail satisfactory to the Administrative  Agent and the Lenders and certified by a Financial Officer.  (b) Annual Audit Report.  The Borrower shall deliver to the Administrative Agent and the  Lenders, within one hundred twenty (120) days after the end of each fiscal year of the Borrower (or, if  earlier, within five days after the date on which the Borrower shall be required to submit its Form 10-K),  an annual audit report of the Companies for that year prepared on a Consolidated basis, in accordance with  GAAP, and in form and detail satisfactory to the Administrative Agent and the Lenders and certified by an  

 

65  unqualified opinion of an independent public accountant satisfactory to the Administrative Agent, which  report shall include balance sheets and statements of income (loss), stockholders’ equity and cash-flow for  that period.   (c) Compliance Certificate.  The Borrower shall deliver a Compliance Certificate to the  Administrative Agent and the Lenders, concurrently with the delivery of the financial statements set forth  in subsections (a) and (b) above, which Compliance Certificate shall contain calculations of the financial  covenants set forth in Section 5.7 in form and detail reasonably satisfactory to the Administrative Agent.  (d) Management Reports; Aging Reports.  The Borrower shall deliver to the Administrative  Agent and the Lenders, concurrently with the delivery of the quarterly and annual financial statements set  forth in subsections (a) and (b) above, (i) a copy of the summary report or summary letter prepared with  respect to any management report, letter or similar writing furnished to the Companies by the accountants  in respect of the systems, operations, financial condition or properties of the Companies, (ii) a reasonably  detailed aging of the Companies’ Accounts, (iii) a reasonably detailed accounts payable aging and (iv) a  reasonably detailed inventory report.   (e) Pro-Forma Projections.  The Borrower shall deliver to the Administrative Agent and the  Lenders, within one hundred and twenty (120) days after the end of each fiscal year of the Borrower, annual  pro-forma projections of the Companies for the then current fiscal year and the next two succeeding years,  to be in form and detail reasonably acceptable to the Administrative Agent (including, without limitation,  pro-forma calculations of the financial covenants).    (f) Shareholder and SEC Documents.  The Borrower shall deliver to the Administrative Agent  and the Lenders, as soon as available, copies of all notices, reports, definitive proxy or other statements and  other documents sent by the Borrower to its shareholders, to the holders of any of its debentures or bonds  or the trustee of any indenture securing the same or pursuant to which they are issued, or sent by the  Borrower (in final form) to any securities exchange or over the counter authority or system, or to the SEC  or any similar federal agency having regulatory jurisdiction over the issuance of the Borrower’s securities  (the “Shareholder Information”).  The Borrower shall deliver the Administrative Agent, promptly after the  sending or filing thereof, copies of all reports, notices, prospectuses and registration statements which the  Canadian Subsidiary Guarantor files with a securities commission or securities regulatory authority in any  province or territory of Canada.  (g) Financial Information of the Companies.  The Borrower shall deliver to the Administrative  Agent and the Lenders, within ten (10) days of the written request of the Administrative Agent or any  Lender, such other information about the financial condition, properties and operations of any Company,  as the Administrative Agent or such Lender may from time to time reasonably request, which information  shall be submitted in form and detail reasonably satisfactory to the Administrative Agent or such Lender  and certified by a Financial Officer of the Company or Companies in question.  (h) SEC Reporting.  Notwithstanding anything to the contrary contained in this Agreement:  (i) The financial statements and reports required pursuant to Section 5.3(a)  hereof shall, upon written notice of such filing from the Borrower to the Administrative Agent, be  deemed delivered to the Administrative Agent and the Lenders upon delivery of the Borrower’s  10-Q report to the SEC for such fiscal quarter pursuant to the Borrower’s public company reporting  requirements (if such financial statements and reports shall be readily available to the  Administrative Agent and Lenders).  In addition, upon the filing of the Borrower’s 10-Q report  with the SEC for any fiscal year, such report shall be deemed to satisfy the requirements of Section  5.3(a) hereof.  

 

66  (ii) The financial statements and reports required pursuant to Section 5.3(b)  hereof shall, upon written notice of such filing from the Borrower to the Administrative Agent, be  deemed delivered to the Administrative Agent and the Lenders upon delivery of the Borrower’s  10-K report to the SEC for such fiscal year pursuant to the Borrower’s public company reporting  requirements (and such financial statements and reports shall be readily available to the  Administrative Agent and Lenders).  In addition, upon the filing of the Borrower’s 10-K report  with the SEC for any fiscal year, such report shall be deemed to satisfy the requirements of Section  5.3(b) hereof.  (iii) The Shareholder Information required pursuant to Section 5.3(f) hereof  shall, upon notice of such filing from the Borrower to the Administrative Agent, be deemed  delivered to the Administrative Agent and the Lenders upon delivery of such Shareholder  Information to the SEC pursuant to the Borrower’s public company reporting requirements (if such  Shareholder Information shall be readily available to the Administrative Agent and Lenders).  In  addition, upon the filing of such Shareholder Information with the SEC, such documents shall be  deemed to satisfy the requirements of Section 5.3(f) hereof.  (i) KYC and Beneficial Ownership.  The Borrower shall deliver promptly any information  and documentation required by bank regulatory authorities under applicable “know your customer” and  anti-money laundering rules and regulations (including the PATRIOT Act and Beneficial Ownership  Regulation), as any Lender may from time to time request.  Financial Records.  Each Company shall at all times maintain true and complete records  and books of account, including, without limiting the generality of the foregoing, appropriate provisions  for possible losses and liabilities, all in accordance with GAAP (or applicable local standards with respect  to Foreign Subsidiaries), and at all reasonable times (during normal business hours and upon notice to such  Company) permit the Administrative Agent or any Lender, or any representative of the Administrative  Agent or such Lender, to examine such Company’s books and records and to make excerpts therefrom and  transcripts thereof; provided that, excluding any such visits and inspections during the continuation of an  Event of Default, only the Administrative Agent on behalf of the Lenders may exercise visitation and  inspection rights of the Administrative Agent and the Lenders under this Section 5.4 and the Administrative  Agent shall not exercise such rights more often than one time during any calendar year absent the  continuation of an Event of Default and only one such visitation and inspection shall be at the reasonable  expense of Borrower.  Franchises; Change in Business.  (a) Each Company (other than a Dormant Subsidiary) shall preserve and maintain at all times  its existence, and its rights and franchises necessary for its business, except as otherwise permitted pursuant  to Section 5.12 hereof.  (b) No Company shall engage in any business if, as a result thereof, the general nature of the  business of the Companies taken as a whole would be substantially changed from the general nature of the  business the Companies are engaged in on the Closing Date.  ERISA Pension and Benefit Plan Compliance.    (a) Generally.  No Company shall incur any material accumulated funding deficiency within the meaning of  ERISA, or any material liability to the PBGC, established thereunder in connection with any ERISA Plan.   

 

67  The Borrower shall furnish to the Administrative Agent and the Lenders (i) as soon as possible and in any  event within thirty (30) days after any Company knows or has reason to know that any Reportable Event  with respect to any ERISA Plan has occurred, a statement of a Financial Officer of such Company, setting  forth details as to such Reportable Event and the action that such Company proposes to take with respect  thereto, together with a copy of the notice of such Reportable Event given to the PBGC if a copy of such  notice is available to such Company, and (ii) promptly after receipt thereof a copy of any notice such  Company, or any member of the Controlled Group may receive from the PBGC or the IRS with respect to  any ERISA Plan administered by such Company; provided that this latter subpart shall not apply to notices  of general application promulgated by the PBGC or the IRS or to letters or notices such as a favorable  determination letter with respect to an ERISA Plan, which does not threaten a material liability to a  Company. The Borrower shall promptly notify the Administrative Agent of any material taxes assessed,  proposed to be assessed or that the Borrower has reason to believe may be assessed against a Company by  the IRS with respect to any ERISA Plan.  As used in this Section 5.6(a), “material” means the measure of  a matter of significance that shall be determined as being an amount equal to five percent (5%) of  Consolidated Net Worth. As soon as practicable, and in any event within thirty (30) days, after any  Company shall become aware that an ERISA Event shall have occurred, such Company shall provide the  Administrative Agent with notice of such ERISA Event with a certificate by a Financial Officer of such  Company setting forth the details of the event and the action such Company or another Controlled Group  member proposes to take with respect thereto.  The Borrower shall, at the request of the Administrative  Agent or any Lender, deliver or cause to be delivered to the Administrative Agent or such Lender, as the  case may be, true and correct copies of any documents relating to the ERISA Plan of any Company.  (b) Foreign Pension Plans and Benefit Plans.  (i) For each existing, or hereafter adopted, Foreign Pension Plan, Canadian  Pension Plan, Canadian MEPP and Foreign Benefit Plan, the Borrower and any appropriate Foreign  Subsidiary shall in a timely fashion comply with and perform in all material respects all of its  obligations under and in respect of such Foreign Pension Plan, Canadian Pension Plan, Canadian  MEPP or Foreign Benefit Plan, including under any funding agreements and all applicable Laws  (including any fiduciary, funding, investment and administration obligations).  (ii) All employer or employee payments, contributions or premiums required  to be remitted, paid to or in respect of each Foreign Pension Plan, Canadian Pension Plan, Canadian  MEPP or Foreign Benefit Plan shall be paid or remitted by the Borrower and any appropriate  Foreign Subsidiary in a timely fashion in accordance with the terms thereof, any funding  agreements and all applicable Laws.  (iii) The Borrower and any appropriate Foreign Subsidiary shall deliver to the  Administrative Agent if so requested by the Administrative Agent, (A) copies of each annual and  other return, report or valuation with respect to each Foreign Pension Plan or Canadian Pension  Plan as filed with any applicable Governmental Authority; (B) promptly after receipt thereof, a  copy of any material direction, order, notice, ruling or opinion that the Borrower and any  appropriate Foreign Subsidiary may receive from any applicable Governmental Authority with  respect to any Foreign Pension Plan or Canadian Pension Plan; and (C) notification within thirty  (30) days of any increases having a cost to a Company in excess of Two Hundred Fifty Thousand  Dollars ($250,000) per annum in the aggregate, in the benefits of any existing Foreign Pension  Plan, Canadian Pension Plan, Canadian MEPP or Foreign Benefit Plan, or the establishment of any  new Foreign Pension Plan, Canadian Pension Plan or Foreign Benefit Plan, or the commencement  of contributions to any such plan to which the Companies were not previously contributing.  

 

68  (iv) As of the Closing Date, there is no Defined Benefit Plan contributed to by  the Canadian Subsidiary Guarantor.  Notwithstanding any other provision of this Agreement or any  other Loan Document, no Foreign Subsidiary will (i) establish or contribute to any Defined Benefit  Plan, or (ii) acquire an interest in any Person if such Person sponsors, administers, maintains or  contributes to, or has any liability in respect of, any Defined Benefit Plan, without the written  consent of the Administrative Agent.  Financial Covenants; Maximum Consolidated Capital Expenditures.  (a) Leverage Ratio.  Commencing on September 30, 2022, the Borrower shall not permit the  Leverage Ratio to exceed 3.00 to 1.00, as tested on September 30, 2022 and on the last day of each fiscal  quarter thereafter, in each case for the period of the four fiscal quarters most recently ended on such date  of determination.   (b) Fixed Charge Coverage Ratio.  Commencing on September 30, 2022, the Borrower shall  not permit the Fixed Charge Coverage Ratio to be less than 1.20 to 1.00, as tested on September 30, 2022  and on the last day of each fiscal quarter thereafter (in each case for the period of the four fiscal quarters  most recently ended on such date of determination).   (c) Consolidated Capital Expenditures.  Commencing with fiscal year ending December 31,  2022 and for each fiscal year end thereafter, the Borrower shall not permit Consolidated Capital  Expenditures to exceed Thirty Million Dollars ($30,000,000) for any fiscal year.  Borrowing.  No Company shall create, incur or have outstanding any Indebtedness of any  kind; provided that this Section 5.8 shall not apply to the following:  (a) the Loans, the Letters of Credit and any other Indebtedness under this Agreement;  (b) Attributable Indebtedness in respect of Capitalized Lease Obligations entered into by any  Company for the purchase or lease of fixed assets (and refinancings of such loans or Capitalized Lease  Obligations), which loans and Capitalized Lease Obligations shall only be secured by the fixed assets being  purchased or leased, so long as the aggregate principal amount of all such loans and Capitalized Lease  Obligations for all Companies shall not exceed One Million Five Hundred Thousand Dollars ($1,500,000)  at any time outstanding;   (c) the Indebtedness existing on the Closing Date, in addition to the other Indebtedness  permitted to be incurred pursuant to this Section 5.8, as set forth in Schedule 5.8 hereto (and any extension,  renewal or refinancing thereof but only to the extent that the principal amount thereof does not increase  after the Closing Date);  (d) loans to, and guaranties of Indebtedness of, a Company from a Company so long as each  such Company is the Borrower or a Domestic Guarantor of Payment;  (e) Indebtedness under any Hedge Agreement, so long as such Hedge Agreement shall have  been entered into in the ordinary course of business and not for speculative purposes;  (f) Permitted Foreign Subsidiary Loans and Investments, so long as no Default or Event of  Default shall then exist or would result therefrom;   

 

69  (g) to the extent deemed Indebtedness, obligations of the Canadian Subsidiary Guarantor  incurred under the Xylem Factoring Agreement incurred in the ordinary course of business and consistent  with past business practices of the Canadian Subsidiary Guarantor;  (h) Indebtedness consisting of the finance of insurance premiums;  (i) Indebtedness consisting of reimbursement obligations with respect to the Existing Letter  of Credit, but only to the extent that the Existing Letter of Credit is fully cash collateralized and the face  value there is not increased after the Closing Date;  (j) unfunded pension fund and other employee benefit plan obligations and liabilities, solely  to the extent that (i) such fund and plan are in existence as of the Closing Date, (ii) such fund and plan are  permitted to remain unfunded under applicable Law and (iii) the aggregate amount of such Indebtedness  does not exceed Twelve Million Dollars ($12,000,000) at any time outstanding;   (k) all premiums (if any), interest (including post-petition interest and interest paid in kind),  fees, expenses, charges and additional or contingent interest on obligations described in clauses (a) through  (h) above; and  (l) other unsecured Indebtedness, in addition to the Indebtedness listed above, in an aggregate  principal amount for all Companies not to exceed Two Million Dollars ($2,000,000) at any time  outstanding. Liens.  No Company shall create, assume or suffer to exist (upon the happening of a  contingency or otherwise) any Lien upon any of its property or assets, whether now owned or hereafter  acquired; provided that this Section 5.9 shall not apply to the following:  (a) Liens for taxes, assessments or governmental charges or levies on such Company’s  property or assets if, in each case, the same shall not at the time be delinquent or thereafter can be paid  without penalty, or are being actively contested in good faith by appropriate and timely proceedings and  for which adequate reserves have been established in accordance with GAAP;  (b) other statutory Liens (including Liens created pursuant to Michigan Compiled Laws  Section 445.611 et seq.) incidental to the conduct of its business or the ownership of its property and assets  that (i) were not incurred in connection with the borrowing of money or the obtaining of advances or credit,  and (ii) do not in the aggregate materially detract from the value of its property or assets or materially impair  the use thereof in the operation of its business;  (c) Liens on property or assets of a Subsidiary to secure obligations of such Subsidiary to the  Borrower or a Guarantor of Payment;  (d) any Lien granted to the Administrative Agent, for the benefit of Secured Parties;  (e) the Liens existing on the Closing Date as set forth in Schedule 5.9 hereto and replacements,  extensions, renewals, refundings or refinancings thereof, but only to the extent that the amount of debt  secured thereby shall not be increased;  (f) purchase money Liens on fixed assets securing the loans and Capitalized Lease Obligations  pursuant to Section 5.8(b) hereof, provided that such Lien is limited to the purchase price and only attaches  to the property being acquired;  

 

70  (g) easements or other minor defects or irregularities in title of real property not interfering in  any material respect with the use of such property in the business of any Company;  (h) Liens arising out of deposits to secure the performance of bids, trade contracts (other than  contracts for the payment of money), leases, licenses, franchises, statutory obligations, surety and appeal  bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business  in an aggregate amount, for all Companies, not in excess of Two Hundred Fifty Thousand Dollars  ($250,000);  (i) Liens arising with respect to rights of lessees or sublessees under Operating Leases in assets  leased by a Company under an Operating Lease;   (j) Liens securing the Indebtedness permitted pursuant to Section 5.8(g) hereof, so long as  such Liens attach only to the interests of the Canadian Subsidiary Guarantor in the Accounts sold or  otherwise transferred pursuant to the Xylem Factoring Agreement;   (k) Liens on insurance policies and the proceeds thereof securing the financing of the  premiums with respect thereto, not to exceed Five Hundred Thousand Dollars ($500,000) at any time;  (l) Liens on cash or Investments securing Hedge Agreements in the ordinary course of  business in accordance with applicable Law, not to exceed One Million Five Hundred Thousand Dollars  ($1,500,000) at any time, or as otherwise approved in writing by the Administrative Agent in its sole  discretion;  (m) Security given to a public utility or any municipality or Governmental Authority when  required by such utility or authority in connection with the operations of a Company in the ordinary course  of business, not to exceed One Million Dollars ($1,000,000) at any time, or as otherwise approved in writing  by the Administrative Agent in its sole discretion;  (n) Liens solely on cash collateral securing Indebtedness consisting of reimbursement  obligations in respect of the Existing Letter of Credit permitted pursuant to Section 5.8(i); and   (o) other Liens, in addition to the Liens listed above, not incurred in connection with the  borrowing of money, securing amounts, in the aggregate for all Companies, not to exceed Two Hundred  Fifty Thousand Dollars ($250,000) at any time.  No Company shall enter into any contract or agreement (other than (i) a contract or agreement entered into  in connection with the purchase or lease of fixed assets or equipment that prohibits Liens on such fixed  assets or equipment or (ii) any agreement with a restriction that is not enforceable under Section 9-406, 9- 407 or 9-408 of the UCC or any laws of similar effect) that would prohibit the Administrative Agent or the  Lenders from acquiring a security interest, mortgage or other Lien on, or a collateral assignment of, any of  the property or assets of such Company.  Regulations T, U and X.  No Company shall take any action that would result in any  non-compliance of the Loans or Letters of Credit with Regulations T, U or X, or any other applicable  regulation, of the Federal Reserve Board.  Investments, Loans and Guaranties.  No Company shall (a) create, acquire or hold any  Subsidiary, (b) make or hold any investment in any stocks, bonds or securities of any kind, (c) be or become  a party to any joint venture or other partnership, (d) make or keep outstanding any advance or loan to any  

 

71  Person, or (e) be or become a Guarantor of any kind (other than a Guarantor of Payment under the Loan  Documents); provided that this Section 5.11 shall not apply to the following:   (i) any endorsement of a check or other medium of payment for deposit or  collection through normal banking channels or similar transaction in the normal course of business;  (ii) any investment in direct obligations of the United States or in certificates  of deposit issued by a member bank (having capital resources in excess of Five Hundred Million  Dollars ($500,000,000)) of the Federal Reserve System;  (iii) any investment in commercial paper or securities that at the time of such  investment is assigned the highest quality rating in accordance with the rating systems employed  by either Moody’s or Standard & Poor’s;  (iv) the holding of each of the Subsidiaries listed on Schedule 6.1 hereto, and  the creation, acquisition and holding of, and any investment in, any new Subsidiary after the  Closing Date, so long as such new Subsidiary shall have been created, acquired or held, and  investments made, in accordance with the terms and conditions of this Agreement;  (v) loans to, investments in and guaranties of the Indebtedness of, a Company  from or by a Company so long as each such Company is the Borrower or a Domestic Guarantor of  Payment;  (vi) any advance or loan to an officer or employee of a Company as an advance  on commissions, travel and other items in the ordinary course of such Company’s business, so long  as all such advances and loans from all Companies aggregate not more than the maximum principal  sum of One Hundred Thousand Dollars ($100,000) at any time outstanding;   (vii) the guaranty of the payment obligations of a Company under the Lease  Agreement between Parque Internacional Escobedo S.A. de C.V., as lessor, and Horizon Plastics  de Mexico S.A. de C.V., as lessee, effective as of October, 2017, and assumed by CC HPM, S. de  R.L. de C.V. as such Lease Agreement may be amended, extended or replaced; so long as the  amount of the payment obligations under such Lease Agreement does not exceed (A) Four Hundred  Thousand Dollars ($400,000) in any fiscal year of the Borrower, and (B) an aggregate amount of  Two Million Dollars ($2,000,000) during the remaining term of such Lease Agreement;   (viii) any Permitted Investments or Permitted Foreign Subsidiary Loans and  Investments, so long as no Default or Event of Default shall then exist or would result therefrom;  (ix) Investments consisting of prepayments to suppliers in the ordinary course  of business, solely as such prepayments have been historically made by Loan Parties prior to the  Closing Date and such prepayments are consistent with past practices of such Loan Party;   (x) Investments consisting of extensions of trade credit in the ordinary course  of business, solely as such trade credit has been historically extended by Loan Parties prior to the  Closing Date and such extensions of trade credit are substantially consistent with the past practices  of such Loan Party;  (xi) advances of payroll payments on earned wages only to employees and  other service providers in the ordinary course of business and substantially consistent with past  practices;  

 

72  (xii) to the extent that they constitute Investments, purchases and acquisitions  of inventory, supplies, materials or equipment or purchases, acquisitions, licenses or leases of other  assets, intellectual property, or other rights, in each case in the ordinary course of business and  solely to the extent necessary for current business operations and substantially consistent with past  practices;   (xiii) other Investments, in addition to the Investments listed above, in an  aggregate principal amount for all Companies not to exceed One Million Dollars ($1,000,000)  at  any time.  For purposes of this Section 5.11, the amount of any investment in Equity Interests shall be based upon the  initial amount invested and shall not include any appreciation in value or return on such investment but  shall take into account repayments, redemptions and return of capital.  Merger and Sale of Assets.  No Company shall merge, amalgamate or consolidate with any  other Person, or sell, lease or transfer or otherwise dispose of any assets to any Person (including, in each  case, pursuant to a Delaware LLC Division) other than in the ordinary course of business, except that, if no  Default or Event of Default shall then exist or immediately thereafter shall begin to exist:  (a) the Borrower or a Domestic Subsidiary Guarantor of Payment may merge, amalgamate or  consolidate with any other Domestic Subsidiary (provided that (i) if one of such Companies is the Borrower,  the Borrower shall be the continuing or surviving Company, and (ii) if at least one of such Companies is a  Loan Party, a Loan Party shall be the continuing or surviving Person);   (b) a Foreign Subsidiary Guarantor of Payment may merge, amalgamate or consolidate with  any other Foreign Subsidiary (provided that (i) if one of such Companies is the Canadian Subsidiary  Guarantor, the Canadian Subsidiary Guarantor shall be the continuing or surviving Company, and (ii) if at  least one of such Companies is a Loan Party, a Loan Party shall be the continuing or surviving Person);   (c) a Non-Loan Party may merge, amalgamate or consolidate with any other Company  (provided that if such Company is a Loan Party, such Loan Party shall be the continuing or surviving  Company);  (d) the Borrower or any Domestic Guarantor of Payment may sell, lease, transfer or otherwise  dispose of any of its assets to the Borrower or any other Domestic Guarantor of Payment (provided that the  Borrower may not transfer all or substantially all of its assets pursuant to this subsection (d));  (e) any Foreign Guarantor of Payment may sell, lease, transfer or otherwise dispose of any of  its assets to any other Loan Party;  (f) a Non-Loan Party may sell, lease, transfer or otherwise dispose of any of its assets to any  other Company;  (g) a Company may sell, lease, transfer or otherwise dispose of any assets that are obsolete or  no longer useful or economically practicable to maintain, in such Company’s business (including allowing  any intellectual property (and any related registration or application) that is no longer used or useful, or  economically practicable to maintain, to lapse or go abandoned or be invalidated); (h) transfer of assets from Loan Parties to any Mexican Subsidiary so long as the aggregate  fair market value of all assets so transferred in any fiscal year does not exceed Five Million Dollars  ($5,000,000);   

 

73  (i) a Company may sell, lease, transfer or otherwise dispose of any assets in an amount not to  exceed Five Hundred Thousand Dollars ($500,000) in any fiscal year so long as the net proceeds thereof  are either reinvested in similar assets within one hundred eighty (180) days of such sale or other disposition  or applied to the prepayment of obligations in accordance with Section 2.8 hereof; and  (j) Acquisitions may be effected in accordance with the provisions of Section 5.13 hereof.  Acquisitions.  No Company shall effect an Acquisition; provided that a Loan Party may  effect an Acquisition so long as such Acquisition meets all of the following requirements:  (a) in the case of an Acquisition that involves a merger, amalgamation or other combination  including the Borrower, the Borrower shall be the surviving entity;  (b) in the case of an Acquisition that involves a merger, amalgamation or other combination  including a Loan Party (other than the Borrower), a Loan Party shall be the surviving entity;  (c) the business to be acquired shall be similar, or related to, or incidental to, or an expansion  (solely in size and not in type) of, the lines of business of the Companies;  (d) no Default or Event of Default shall exist prior to, or after giving pro forma effect to, such  Acquisition;  (e) The Borrower shall have provided to the Administrative Agent and the Lenders, at least  twenty (20) days prior to such Acquisition, historical financial statements of the target entity and a pro  forma financial statement of the Companies accompanied by a certificate of a Financial Officer showing  pro forma compliance with Section 5.7(a) and (b) hereof, both before and after giving effect to the proposed  Acquisition;  (f) the aggregate Consideration paid for such Acquisition by the Companies shall not exceed,  when combined with all other Acquisitions, the aggregate amount of Ten Million Dollars ($10,000,000);   (g) such Acquisition is not actively opposed by the board of directors (or similar governing  body) of the selling Persons or the Persons whose Equity Interests are to be acquired; and  (h) the Leverage Ratio, calculated as of the most recently completed four fiscal quarters of the  Borrower, both prior to and after giving pro forma effect to such Acquisition, shall not exceed 2.00 to 1.00.  Notice.  The Borrower shall cause a Financial Officer of the Borrower to promptly notify  the Administrative Agent and the Lenders, in writing, whenever any of the following shall occur:  (a) a Default or Event of Default may reasonably be expected to occur hereunder or any  representation or warranty made in Article VII hereof or elsewhere in this Agreement or in any Related  Writing may for any reason cease in any material respect to be true and complete;  (b) the Borrower learns of a litigation or proceeding against any Company before a court,  administrative agency or arbitrator that, if successful, could reasonably be expected to have a Material  Adverse Effect; or  (c) the Borrower learns that there has occurred or begun to exist any event, condition or thing  that is reasonably likely to have a Material Adverse Effect.  

 

74  Restricted Payments.  No Company shall make or commit itself to make any Restricted  Payment at any time; provided, however, that so long as no Default or Event Default has occurred and is  continuing or would result therefrom, the Borrower may make Restricted Payments for the purpose of  repurchasing Equity Interests of the Borrower under the existing share buyback plan, as it may be amended  from time to time, or under any other share buyback plan approved from time to time by the Borrower’s  board of directors, in an aggregate amount not to exceed $500,000 in any calendar year.  Environmental Compliance.  Each Company shall comply in all respects with any and all  Environmental Laws and Environmental Permits, including, without limitation, all Environmental Laws in  jurisdictions in which such Company owns or operates a facility or site, arranges for disposal or treatment  of hazardous substances, solid waste or other wastes, accepts for transport any hazardous substances, solid  waste or other wastes or holds any interest in real property or otherwise. The Borrower shall furnish to the  Administrative Agent and the Lenders, promptly after receipt thereof, a copy of any notice any Company  may receive from any Governmental Authority or private Person, or otherwise, that any material litigation  or proceeding pertaining to any environmental, health or safety matter has been filed or is threatened against  such Company, any real property in which such Company holds any interest or any past or present operation  of such Company.  No Company shall allow the release or disposal of hazardous waste, solid waste or other  wastes on, under or to any real property in which any Company holds any ownership interest or performs  any of its operations, in violation of any Environmental Law.  As used in this Section 5.16, “litigation or  proceeding” means any demand, claim, notice, suit, suit in equity action, administrative action,  investigation or inquiry whether brought by any Governmental Authority or private Person, or otherwise.  The Borrower shall defend, indemnify and hold the Administrative Agent and the Lenders harmless against  all costs, expenses, claims, damages, penalties and liabilities of every kind or nature whatsoever (including  attorneys’ fees) arising out of or resulting from the noncompliance of any Company with any Environmental  Law.  Such indemnification shall survive any termination of this Agreement.  Affiliate Transactions.  No Company shall, directly or indirectly, enter into or permit to  exist any transaction or series of transactions (including, without limitation, the purchase, sale, lease or  exchange of any property or the rendering of any service) with any Affiliate of a Company (other than a  Company that is a Loan Party) on terms that shall be less favorable to such Company than those that might  be obtained at the time in a transaction with a Person that is not an Affiliate of a Company; provided that  the foregoing shall not prohibit the payment by the Borrower of (a) reasonable and customary fees and  reasonable out-of-pocket costs to, and indemnities provided on behalf of, directors, officers, consultants,  managers and employees of the Borrower in the ordinary course of business to the extent attributable to the  ownership or operation of the Borrower and (b) employment and severance arrangements (including salary  or guaranteed payments and bonuses) between the Borrower and its officers, managers and employees in  the ordinary course of business and consistent with past practices.  Use of Proceeds.  The Borrower’s use of the proceeds of the Loans shall be for working  capital and other general corporate purposes of the Companies and for the refinancing of existing  Indebtedness. The Borrower shall not use the proceeds of any Credit Extension, whether directly or  indirectly, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture  partner or other Person, (i) in furtherance of an offer, payment, promise to pay or authorization of the  payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption  Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or  with any Sanctioned Person, or in any Sanctioned Country or (iii) in any manner that would result in the  violation of any Sanctions applicable to any party hereto.  Corporate Names and Locations of Collateral.  No Company shall (a) change its corporate  name, or (b) change its state, province, territory or other jurisdiction, or form of organization; unless, in  each case, the Borrower shall have provided the Administrative Agent and the Lenders with at least five  

 

75  (5) Business Days’ prior written notice thereof.  The Borrower shall also promptly notify the Administrative  Agent of (i) any material change in any location where any Company’s Inventory or Equipment is  maintained, and any new locations where any Company’s Inventory or Equipment is to be maintained;  (ii) any change in the location of the office where any Company’s records pertaining to its Accounts are  kept; (iii) the location of any new places of business and the changing or closing of any of its existing places  of business; and (iv) any change in the location of any Company’s chief executive office.  In the event of  any of the foregoing or if otherwise deemed appropriate by the Administrative Agent, the Administrative  Agent is hereby authorized to file new financing statements or the equivalent as applicable describing the  Collateral and otherwise in form and substance sufficient for recordation wherever necessary or appropriate,  as determined in the Administrative Agent’s sole discretion, to perfect or continue perfected the security  interest of the Administrative Agent, for the benefit of Secured Parties, in the Collateral.  The Borrower  shall pay all filing and recording fees and taxes in connection with the filing or recordation of such financing  statements and security interests and shall promptly reimburse the Administrative Agent therefor if the  Administrative Agent pays the same.  Such amounts not so paid or reimbursed shall be Related Expenses  hereunder.  Lease Rentals.  The Companies shall not pay or commit themselves to pay lease rentals on  Operating Leases, for all Companies, in excess of the aggregate amount of Three Million Dollars  ($3,000,000) during any fiscal year of the Borrower, commencing with the fiscal year ending December  31, 2022.  Subsidiary Guaranties, Security Documents and Pledge of Stock or Other Ownership  Interest.    (a) Domestic Guaranties and Security Documents.  Each Domestic Subsidiary (that is not a  Dormant Subsidiary) created, acquired or held (including, without limitation, upon the formation of any  Subsidiary that is a Delaware Divided LLC) subsequent to the Closing Date shall promptly execute and  deliver to the Administrative Agent, for the benefit of Secured Parties, a Guaranty of Payment (or a  Guaranty of Payment Joinder) of all of the Secured Obligations and a Security Agreement (or a Security  Agreement Joinder), as appropriate, such agreements to be prepared by the Administrative Agent and in  form and substance reasonably acceptable to the Administrative Agent, along with any such other  supporting documentation, Security Documents, corporate governance and authorization documents, and  an opinion of counsel as may be deemed necessary or advisable by the Administrative Agent.  With respect  to a Subsidiary that has been classified as a Dormant Subsidiary, at such time that such Subsidiary no longer  meets the requirements of a Dormant Subsidiary, the Borrower shall provide to the Administrative Agent  prompt written notice thereof, and shall provide, with respect to such Subsidiary, all of the documents  referenced in the foregoing sentence.  (b) Foreign Subsidiary Guaranties and Security Documents.  To the extent there shall be no  material adverse tax consequences, each Foreign Subsidiary (that is not a Dormant Subsidiary) shall, if  requested in the reasonable discretion of the Administrative Agent or the Required Lenders, execute and  deliver to the Administrative Agent, for the benefit of Secured Parties, a Guaranty of Payment and a  Security Agreement, such agreements to be prepared by the Administrative Agent and in form and  substance reasonably acceptable to the Administrative Agent.  In connection with each of the foregoing  Guaranties of Payment and Security Agreement, the Borrower shall deliver to the Administrative Agent  such other supporting documentation, Security Documents, corporate governance and authorization  documents, and an opinion of counsel as may be reasonably deemed necessary or advisable by the  Administrative Agent.  Anything in this subsection (b) to the contrary notwithstanding, if the execution and  delivery of such Guaranty of Payment or Security Agreement under the laws of such foreign jurisdiction is  impractical or cost prohibitive, in the reasonable judgment of the Administrative Agent, after consultation  

 

76  with the Borrower, then the Administrative Agent may forego such Guaranty of Payment or Security  Agreement, as applicable, in such foreign jurisdiction.  (c) Pledge of Stock or Other Ownership Interest.  With respect to the creation or acquisition  of a first-tier Subsidiary by any Loan Party, the Borrower shall notify the Administrative Agent within five  (5) Business Days of the creation or acquisition thereof, and, if requested in the reasonable discretion of the  Administrative Agent or the Required Lenders, promptly deliver to the Administrative Agent, for the  benefit of Secured Parties, all of the share certificates (or other evidence of equity) of such first-tier  Subsidiary owned by a Loan Party pursuant to the terms of a Security Agreement (or a Security Agreement  Joinder) prepared by the Administrative Agent and in form and substance reasonably satisfactory to the  Administrative Agent, and executed by the appropriate Loan Party; provided that, any such pledge securing  the Secured Obligations shall not include a pledge of Equity Interest that would be deemed Excluded  Property (as defined in the applicable Security Agreement), unless, as a result of a Change in Law, such  Loan Party is able, without reasonable risk of any Company incurring a material Tax liability as a result  thereof, to pledge such Equity Interest as security for the Secured Obligations, in which case such Equity  Interest shall be automatically deemed to be so pledged by such Loan Party but only to the extent that, and  only for so long as, such pledge could reasonably be expected not to result in a material Tax liability of any  Company.  Anything in this subsection (c) to the contrary notwithstanding, if the execution and delivery of  any such pledge of stock under the laws of such foreign jurisdiction is impractical or cost prohibitive, in  the reasonable judgment of the Administrative Agent, after consultation with the Borrower, then the  Administrative Agent may forego such pledge of stock (or foreign perfection of such pledge of stock in  such foreign jurisdiction).    (d) Perfection or Registration of Interest in Foreign Shares.  With respect to any Guaranty of  Payment by a Foreign Subsidiary or any foreign shares pledged to the Administrative Agent, for the benefit  of Secured Parties, on or after the Closing Date, the Administrative Agent shall at all times, in the reasonable  discretion of the Administrative Agent or the Required Lenders, have the right to perfect, at the Borrower’s  cost, payable upon request therefor (including, without limitation, any foreign counsel, or foreign notary,  filing, registration or similar, fees, costs or expenses), its security interest in such shares in the respective  foreign jurisdiction.  Such perfection may include the requirement that the applicable Company promptly  execute and deliver to the Administrative Agent a separate Guaranty of Payment or pledge document  (prepared by the Administrative Agent and in form and substance reasonably satisfactory to the  Administrative Agent), covering such Equity Interests and related Guaranty of Payment, that conforms to  the requirements of the applicable foreign jurisdiction, together with an opinion of local counsel as to the  perfection of the security interest provided for therein, and all other documentation necessary or desirable  to effect the foregoing and to permit the Administrative Agent to exercise any of its rights and remedies in  respect thereof. Anything in this subsection (d) to the contrary notwithstanding, if the execution and  delivery of any such pledge of stock under the laws of such foreign jurisdiction is impractical or cost  prohibitive, in the sole judgment of the Administrative Agent, after consultation with the Borrower, then  the Administrative Agent may forego such pledge of stock (or foreign perfection of such pledge of stock in  such foreign jurisdiction).    Flood Hazard.  If any portion of any Domestic Real Property is at any time located in an  area identified by the Federal Emergency Management Agency (or any successor agency) as a special flood  hazard area with respect to which flood insurance has been made available under the Flood Insurance Laws,  then the Borrower shall, or shall cause the applicable Loan Parties to (a) maintain, or cause to be maintained,  with a financially sound and reputable insurer, flood insurance in an amount and otherwise sufficient to  comply with all applicable rules and regulations promulgated pursuant to the Flood Insurance Laws, which  such insurance shall (i) identify the addresses of each property located in a special flood hazard area,  (ii) indicate the applicable flood zone designation, the flood insurance coverage and deductible relating  thereto, (iii) provide that the insurer will give the Administrative Agent at least forty-five (45) days’ written  

 

77  notice of cancellation or non-renewal, and (iv) shall otherwise be in form and substance reasonably  satisfactory to the Administrative Agent, and (b) deliver to the Administrative Agent evidence of such  compliance, in form and substance reasonably acceptable to the Administrative Agent, including, without  limitation, evidence of annual renewals of such insurance.  Restrictive Agreements.  Except as set forth in this Agreement, the Borrower shall not, and  shall not permit any of its Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to exist  or become effective any encumbrance or restriction on the ability of any Subsidiary to (a) make, directly or  indirectly, any dividend or other capital distribution to the Borrower, (b) make, directly or indirectly, loans  or advances or capital contributions to the Borrower or (c) transfer, directly or indirectly, any of the  properties or assets of such Subsidiary to the Borrower; except for such encumbrances or restrictions  existing under or by reason of (i) applicable Law, (ii) customary non-assignment provisions in leases or  other agreements entered in the ordinary course of business and consistent with past practices,  (iii) customary restrictions in security agreements or mortgages securing Indebtedness or Capitalized Lease  Obligations of a Company to the extent such restrictions shall only restrict the transfer of the property  subject to such security agreement, mortgage or lease, (iv) customary restrictions and conditions contained  in agreements entered in the ordinary course of business relating to the sale of any assets, provided that  such restrictions and conditions apply only to assets that are to be sold and such sale is permitted hereunder,  (v) restrictions on cash or other deposits imposed by customers under agreements entered into in the  ordinary course of business and any such restrictions are otherwise permitted hereunder, and (vi) customary  provisions in joint venture agreements and other similar agreements applicable to joint ventures permitted  by Section 5.9 and applicable solely to such joint venture, and, in each case, entered into in the ordinary  course of business.  [Reserved].    Guaranty Under Material Indebtedness Agreement.  No Foreign Subsidiary shall be or  become a primary obligor or Guarantor of the Indebtedness of the Borrower incurred pursuant to any  Material Indebtedness Agreement unless such Foreign Subsidiary shall also be a Guarantor of Payment  under this Agreement prior to or concurrently therewith.  Amendment of Organizational Documents.  Without the prior written consent of the  Administrative Agent, no Company shall amend its Organizational Documents in any manner adverse to  the Lenders.  Fiscal Year of the Borrower.  The Borrower shall not change the date of its fiscal year-end  without the prior written consent of the Administrative Agent and the Required Lenders.  As of the Closing  Date, the fiscal year end of the Borrower is December 31 of each year.  Negative Pledge.    (a) The Borrower shall not suffer or permit any Lien to exist upon the Equity Interests issued  by the Borrower (except for (i) Liens in favor of the Administrative Agent for the benefit of Secured Parties  and (ii) Liens arising by operation of Law for taxes, assessments or governmental charges not yet due or  which are being contested in good faith by appropriate proceedings diligently conducted).  (b) The Borrower will not, nor will it permit any of its Subsidiaries to, sell, assign (by  agreement, operation of law or otherwise) or otherwise dispose of, or grant any option with respect to, or  create or permit to exist any Lien upon or with respect to, any of the real property owned by any Company  as of the Closing Date or from time to time after the Closing Date.  

 

78  (c) The Borrower will not, nor will it permit any of its Subsidiaries to, exist any agreement  with any Person, other than in connection with this Agreement, which prohibits or limits the ability of the  Borrower or such Subsidiary to create, incur, assume or suffer to exist any Lien upon or with respect to any  of the real property owned by the Borrower or such Subsidiary as of the Closing Date or from time to time  after the Closing Date.  Banking Relationship.  The Borrower shall maintain its primary banking and depository  relationship with the Administrative Agent.  Compliance with Laws.  The Borrower shall, and shall cause each Subsidiary to, comply  (a) with all Environmental Laws, Anti-Corruption Laws and applicable Sanctions and (b) in all material  respects with all other Laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to  which it may be subject.  Each Company shall conduct its businesses in compliance with all Anti-Corruption  Laws and applicable Sanctions and maintain policies and procedures as it has determined to be reasonably  necessary to promote and achieve compliance with all Anti-Corruption Laws and applicable Sanctions.  Loan Party as Trustee.  If any agreement, document or other right, title and interest which  is required to be mortgaged, charged or assigned is not assignable to the Administrative Agent because  (a) the remedies for the enforcement of such agreement would not, as a matter of law, pass to the  Administrative Agent as an incidence of the transfers and assignments made pursuant to the relevant  Security Document, (b) the same is not assignable without the consent of the other party or parties thereto  or any Governmental Authority and such consent has not been obtained as of the date hereof, (c) the same  is not assignable without complying with stated conditions or (d) the same is the subject of an express  prohibition against assignment, the applicable Loan Party’s interest in such agreement shall, until such  consent to such assignment, compliance with such conditions or waiver of such express prohibition is  obtained, be held in trust for the Administrative Agent by such Loan Party and the said interest and all  benefits derived under such agreement shall be for the account of the Administrative Agent, subject to the  terms of such Security Document.  Each Loan Party shall use all reasonable commercial efforts to obtain,  as applicable, the required consent to any such assignment of such Loan Party’s interest in any such  agreement, compliance with any such conditions or waiver of any such express prohibition.  Further Assurances.  The Borrower shall, promptly upon request by the Administrative  Agent, or the Required Lenders 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  thereof, 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 the Required Lenders through the Administrative Agent, may reasonably require from time to  time in order to carry out more effectively the purposes of the Loan Documents.  Post-Closing Obligations.    (a) Within one hundred and eighty (180) days following the Closing Date, the Loan Parties  will either (a) close each of the deposit accounts with Wells Fargo Bank, National Association (the “WF  Deposit Accounts”), existing on the date hereof and provide evidence of each such closure satisfactory to  the Administrative Agent, or (b) provide to the Administrative Agent  a Deposit Account Control Agreement (as defined in the U.S. Guaranty and Security Agreement and  Canadian Guaranty and Security Agreement respectively), for each WF Deposit Account in accordance  with Section 5.8 of the U.S. Guaranty and Security Agreement and the Canadian Guaranty and Security  Agreement.  

 

79  (b) As promptly as practicable after the Closing Date and in any event no later than August 31,  2022, the Borrower shall, or shall cause its Subsidiaries to, deliver to the Administrative Agent (1)  the landlord waivers for the Borrower’s or applicable Loan Parties’ leased real property located at 1385  Cheers Blvd., Brownsville, Texas 78521 and Buildings 3, 4 Centre, 4 West and 16, Building 3 Storage Yard  and Causeway, Northam Industrial Park, 740 Division Street, Cobourg, Ontario, K9A 4LI, each duly  executed by the applicable Loan Party, the applicable landlord and the Administrative Agent and in a form  acceptable to the Administrative Agent, (2) a Deposit Account Control Agreement (as defined in the  Canadian Guaranty and Security Agreement) for each deposit account of the Canadian Subsidiary  Guarantor with The Toronto-Dominion Bank, duly executed by the Canadian Subsidiary Guarantor, the  Administrative Agent and The Toronto –Dominion Bank and in a form acceptable to the Administrative  Agent and (3) evidence satisfactory to the Administrative Agent that the UCC-3 termination statements and  PPSA discharges, as applicable,  have been filed relating to the existing  UCC and PPSA financing  statements in favor of Citibank, N.A. against  the Canadian Subsidiary Guarantor   ARTICLE VI   REPRESENTATIONS AND WARRANTIES  Each Loan Party represents and warrants to the Administrative Agent and the Lenders that:  Corporate Existence; Subsidiaries; Foreign Qualification.  Each Company is duly  organized, validly existing and, where applicable, in good standing (or comparable concept in the applicable  jurisdiction) under the Laws of its state or jurisdiction of incorporation or organization, and is duly qualified  and authorized to do business and, where applicable, is in good standing (or comparable concept in the  applicable jurisdiction) as a foreign entity in the jurisdictions set forth opposite its name on Schedule 6.1  hereto, which are all of the states or jurisdictions where the character of its property or its business activities  makes such qualification necessary, except where a failure to so qualify would not reasonably be expected  to have a Material Adverse Effect.  Schedule 6.1 hereto sets forth, as of the Closing Date, each Subsidiary  of the Borrower (and whether such Subsidiary is a Dormant Subsidiary), and each Person that is an owner  of such Subsidiaries equity, its state (or jurisdiction) of formation, its relationship to the Borrower, including  the percentage of each class of stock or other Equity Interest owned by a Company, each Person that owns  the stock or other Equity Interest of each Company, its tax identification number, the location of its chief  executive office and its principal place of business.  The Borrower, directly or indirectly, owns all of the  Equity Interests of each of its Subsidiaries.  Corporate Authority.  Each Loan Party has the right and power and is duly authorized and  empowered to enter into, execute and deliver the Loan Documents to which it is a party and to perform and  observe the provisions of the Loan Documents.  The Loan Documents to which each Loan Party is a party  have been duly authorized and approved by such Loan Party’s board of directors or other governing body,  as applicable, and are the legal, valid and binding obligations of such Loan Party, enforceable against such  Loan Party in accordance with their respective terms, except as enforceability thereof may be limited by  bankruptcy, insolvency or, moratorium and similar laws affecting the enforcement of creditors’ rights  generally and by equitable principles (regardless of whether enforcement is sought in equity or at law).  The  execution, delivery and performance of the Loan Documents do not conflict with, result in a breach in any  of the provisions of, constitute a default under, or result in the creation of a Lien (other than Liens permitted  under Section 5.9 hereof) upon any assets or property of any Company under the provisions of, such  Company’s Organizational Documents or any other material agreement to which such Company is a party  (except, solely with respect to such other material agreement, to the extent that such breach or default of  such other material agreement could not reasonably be expected to have a Material Adverse Effect).  Compliance with Laws and Contracts.  Each Company:  

 

80  (a) holds all permits, certificates, licenses, orders, registrations, franchises, authorizations, and  other approvals from any Governmental Authority necessary for the conduct of its business and is in  compliance with all applicable Laws relating thereto, except where the failure to do so would not reasonably  be expected to have a Material Adverse Effect;  (b) is in compliance with all federal, state, provincial, territorial, local, or foreign applicable  statutes, rules, regulations, and orders including, without limitation, those relating to environmental  protection, occupational safety and health, and equal employment practices;  (c) is not in violation of or in default under any agreement to which it is a party or by which  its assets are subject or bound, except with respect to any violation or default that would not reasonably be  expected to have a Material Adverse Effect;  (d) is in compliance with all applicable Bank Secrecy Act (“BSA”), Anti-Corruption Laws,  Canadian Anti-Money Laundering & Anti-Terrorism Legislation, and other anti-money laundering Laws  and regulations; and  (e) is in compliance with the PATRIOT Act.  Litigation and Administrative Proceedings.  Except as disclosed on Schedule 6.4 hereto,  there are (a) no lawsuits, actions, investigations, examinations or other proceedings pending or, to the  knowledge of the Companies, threatened against any Company, or in respect of which any Company may  have any liability, in any court or before or by any Governmental Authority, arbitration board, or other  tribunal that could reasonably be expected to have a Material Adverse Effect, (b) no orders, writs,  injunctions, judgments, or decrees of any court or Governmental Authority to which any Company is a  party or by which the property or assets of any Company are bound that could reasonably be expected to  have a Material Adverse Effect, and (c) no grievances, disputes, or controversies outstanding with any  union or other organization of the employees of any Company, or threats of work stoppage, strike, or  pending demands for collective bargaining that could reasonably be expected to have a Material Adverse  Effect.   Title to Assets.  Each Company has good title to and ownership of all property (excluding,  for the avoidance of doubt, intellectual property, which is the subject of Section 6.17) it purports to own,  which property is free and clear of all Liens, except those permitted under Section 5.9 hereof and except  for minor defects in title that do not interfere with its ability to conduct its business as currently conducted  or as proposed to be conducted or to utilize such properties for their intended purposes.  As of the Closing  Date, the Companies own the real property listed on Schedule 6.5 hereto.  Liens and Security Interests.  On and after the Closing Date, except for Liens permitted  pursuant to Section 5.9 hereof, (a) there is and will be no financing statement or similar notice of Lien  (other than notice filings filed under UCC 9-505 not covering collateral securing an obligation) outstanding  covering any personal property of any Company; (b) there is and will be no mortgage or charge outstanding  covering any Domestic Real Property or other owned real property of any Company; and (c) no real or  personal property of any Company is subject to any Lien of any kind.  The Administrative Agent, for the  benefit of Secured Parties, upon the filing of the financing statements contemplated by the Loan Documents  and taking such other actions necessary to perfect its Lien against collateral of the corresponding type as  authorized hereunder will have a valid and enforceable first Lien on such Collateral.  No Company has  entered into any contract or agreement (other than (i) a contract or agreement entered into in connection  with the purchase or lease of fixed assets that prohibits Liens on such fixed assets or a contract or agreement  entered into in the ordinary course of business that does not permit Liens on, or collateral assignment of,  the property relating to such contract or agreement or (ii) any agreement with a restriction that is not  

 

81  enforceable under Section 9-406, 9-407 or 9-408 of the UCC or any laws of similar effect) that exists on or  after the Closing Date that would prohibit the Administrative Agent or the Lenders from acquiring a Lien  on, or a collateral assignment of, any of the property or assets of any Company.  Tax Returns.  Except as could not reasonably be expected to result in a Material Adverse  Effect, all federal, state, provincial and local tax returns and other reports required by law to be filed in  respect of the income, business, properties and employees of each Company have been timely filed (or  extended as permitted by applicable Law) and all taxes, assessments, fees and other governmental charges  that are due and payable have been timely paid, except as otherwise permitted herein including  Section 5.2(a).  The provision for taxes on the books of each Company is adequate for all years not closed  by applicable statutes and for the current fiscal year.  Environmental Laws.  Except as could not, either individually or in the aggregate, be  reasonably likely to result in a Material Adverse Effect, each Company is in substantial compliance with  all Environmental Laws, including, without limitation, all Environmental Laws in all jurisdictions in which  any Company owns or operates, or has owned or operated, a facility or site, arranges or has arranged for  disposal or treatment of hazardous substances, solid waste or other wastes, accepts or has accepted for  transport any hazardous substances, solid waste or other wastes or holds or has held any interest in real  property or otherwise.  No material litigation or proceeding arising under, relating to or in connection with  any Environmental Law or Environmental Permit is pending or, to the best knowledge of each Company,  threatened, against any Company, any Domestic Real Property or other owned real property in which any  Company holds or has held an interest or any past or present operation of any Company which could  reasonably be expected to have a Material Adverse Effect.  No release, threatened release or disposal of  hazardous waste, solid waste or other wastes is occurring, or has occurred (other than those that are currently  being remediated in accordance with Environmental Laws), on, under or to any Domestic Real Property or  other owned real property in which any Company holds any interest or performs any of its operations, in  violation of any Environmental Law, that either individually or in the aggregate, could be reasonably  expected to result in a Material Adverse Effect.  As used in this Section 6.8, “litigation or proceeding”  means any demand, claim, notice, suit, suit in equity, action, administrative action, investigation or inquiry  whether brought by any Governmental Authority or private Person, or otherwise.  Locations.  As of the Closing Date, the Companies have places of business or maintain  their Accounts, Inventory and Equipment at the locations (including third party locations) set forth on  Schedule 6.9 hereto, and each Company’s chief executive office is set forth on Schedule 6.9 hereto.   Schedule 6.9 hereto further specifies whether each location, as of the Closing Date, (a) is owned by the  Companies, or (b) is leased by a Company from a third party, and, if leased by a Company from a third  party, if a landlord’s waiver has been requested.  As of the Closing Date, Schedule 6.9 hereto correctly  identifies the name and address of each third party location where assets of the Companies are located.  Continued Business.  There exists no actual, pending, or, to the Borrower’s knowledge,  any threatened termination, cancellation or limitation of, or any modification or change in the business  relationship of any Company and any customer or supplier, which any Loan Party reasonably expects to  have a Material Adverse Effect.  Employee Benefits Plans.    (a) US Employee Benefit Plans.  Schedule 6.11 hereto identifies each ERISA Plan as of the  Closing Date.  No ERISA Event has occurred or is expected to occur with respect to an ERISA Plan.  Full  payment has been made of all amounts that a Controlled Group member is required, under applicable Law  or under the governing documents, to have paid as a contribution to or a benefit under each ERISA Plan.   The liability of each Controlled Group member with respect to each ERISA Plan has been fully funded  

 

82  based upon reasonable and proper actuarial assumptions, has been fully insured, or has been fully reserved  for on its financial statements.  No changes have occurred or are expected to occur that would cause a  material increase in the cost of providing benefits under the ERISA Plan.  With respect to each ERISA Plan  that is intended to be qualified under Code Section 401(a), in all material respects or are subject to cure  under a correction program approved by a Governmental Authority; (i) the ERISA Plan and any associated  trust operationally comply with the applicable requirements of Code Section 401(a); (ii) to the extent  applicable, the ERISA Plan and any associated trust have been amended to comply with all such  requirements as currently in effect, other than those requirements for which a retroactive amendment can  be made within the “remedial amendment period” available under Code Section 401(b) (as extended under  Treasury Regulations and other Treasury pronouncements upon which taxpayers may rely); (iii) the ERISA  Plan and any associated trust have received a favorable determination letter from the IRS stating that the  ERISA Plan qualifies under Code Section 401(a), that the associated trust qualifies under Code Section  501(a) and, if applicable, that any cash or deferred arrangement under the ERISA Plan qualifies under Code  Section 401(k), unless the ERISA Plan was first adopted at a time for which the above-described “remedial  amendment period” has not yet expired; (iv) the ERISA Plan currently satisfies the requirements of Code  Section 410(b), without regard to any retroactive amendment that may be made within the above-described  “remedial amendment period”; and (v) no contribution made to the ERISA Plan is subject to an excise tax  under Code Section 4972.  With respect to any Pension Plan, the “accumulated benefit obligation” of  Controlled Group members with respect to the Pension Plan (as determined in accordance with Statement  of Accounting Standards No. 87, “Employers’ Accounting for Pensions”) does not exceed the fair market  value of Pension Plan assets.  (b) Foreign Pension Plan and Benefit Plans.  As of the Closing Date, Schedule 6.11 hereto lists  all Foreign Benefit Plans, Canadian Pension Plans, Canadian MEPPs and Foreign Pension Plans currently  maintained or contributed to by the Borrower and any appropriate Foreign Subsidiaries.  The Foreign  Pension Plans and Canadian Pension Plans are duly registered under all applicable Laws which require  registration.  The Borrower and any appropriate Foreign Subsidiaries have complied with and performed  all of its obligations under and in respect of the Foreign Pension Plans, Canadian Pension Plans, Canadian  MEPPs and Foreign Benefit Plans under the terms thereof, any funding agreements and all applicable Laws  (including any fiduciary, funding, investment and administration obligations) except to the extent as would  not reasonably be expected to have a Material Adverse Effect.  All employer and employee payments,  contributions or premiums to be remitted, paid to or in respect of each Canadian Pension Plan, Canadian  MEPP, Foreign Pension Plan or Foreign Benefit Plan have been paid in a timely fashion in accordance with  the terms thereof, any funding agreement and all applicable Laws except to the extent the failure to do so  would not reasonably be expected to have a Material Adverse Effect.  No Canadian Pension Event has  occurred.  There are no outstanding actions or suits concerning the assets of the Foreign Pension Plans or  the Foreign Benefit Plans.  Each of the Foreign Pension Plans is fully funded on an ongoing basis as required  by all Laws applicable to such Foreign Pension Plans (using actuarial methods and assumptions as of the  date of the valuations last filed with the applicable Governmental Authorities and that are consistent with  generally accepted actuarial principles). Consents or Approvals.  No consent, approval or authorization of, or filing, registration or  qualification with, any Governmental Authority or any other Person is required to be obtained or completed  by any Company in connection with the execution, delivery or performance of any of the Loan Documents,  that has not already been obtained or completed and except filings necessary to perfect Liens created under  the Loan Documents.  Solvency.  (a) Each Loan Party has received consideration that is the reasonably equivalent value of the  obligations and liabilities that each Loan Party has incurred to the Administrative Agent and the Lenders.   

 

83  No Loan Party is insolvent or an “insolvent person” as defined in any applicable state, federal or relevant  foreign statute (including any Debtor Relief Laws), nor will any Loan Party be rendered insolvent by the  execution and delivery of the Loan Documents to the Administrative Agent and the Lenders.  No Loan  Party is engaged or about to engage in any business or transaction for which the assets retained by it are or  will be an unreasonably small amount of capital, taking into consideration the obligations to the  Administrative Agent and the Lenders incurred hereunder.  No Loan Party intends to, nor does any Loan  Party believe that it will, incur debts beyond its ability to pay such debts as they mature.    (b) Each Loan Party acknowledges that its business and financial relationship with the  Administrative Agent and the Lenders is unique from such Loan Party’s relationship with any other of its  creditors and agrees that it shall not file any plan of arrangement or make any proposal or make an  assignment into bankruptcy under any Debtor Relief Law which provides for, or would permit directly or  indirectly, the Administrative Agent and the Lenders to be classified with any other creditor for purposes  of such plan or proposal or otherwise.   Financial Statements.  The audited Consolidated financial statements of the Borrower, for  the fiscal year ended December 31, 2021 and the unaudited Consolidated financial statements of the  Borrower and its Subsidiaries for the fiscal quarter ended March 30, 2022, furnished to the Administrative  Agent and the Lenders, are true and complete, have been prepared in accordance with GAAP, and fairly  present the financial condition of the Companies as of the dates of such financial statements and the results  of their operations for the periods then ending.  Since the ending dates of the periods addressed in such  statements, there has been no material adverse change in any Company’s financial condition, properties or  business or any change in any Company’s accounting procedures.  Regulations.  No Company is engaged principally or as one of its important activities, in  the business of extending credit for the purpose of purchasing or carrying any “margin stock” (within the  meaning of Regulation U of the Federal Reserve Board of the United States).  Neither the granting of any  Loan (or any conversion thereof) or Letter of Credit nor the use of the proceeds of any Loan or Letter of  Credit will violate, or be inconsistent with, the provisions of Regulation T, U or X or any other Regulation  of such Board of Governors.  Material Agreements.  Except as disclosed on Schedule 6.16 hereto, as of the Closing Date,  no Company is a party to any (a) debt instrument (excluding the Loan Documents); (b) lease (capital,  operating or otherwise), whether as lessee or lessor thereunder; (c) contract, commitment, agreement, or  other arrangement involving the purchase or sale of any inventory by it, or the license of any right to or by  it; (d) contract, commitment, agreement, or other arrangement with any of its Affiliates other than a  Company; (e) management or employment contract or contract for personal services with any of its  Affiliates that is not otherwise terminable at will or on less than ninety (90) days’ notice without liability;  (f) collective bargaining agreement; or (g) other contract, agreement, understanding, or arrangement with a  third party; that, as to subparts (a) through (g), above, if violated, breached, or terminated for any reason,  would have or would be reasonably expected to have a Material Adverse Effect.  Intellectual Property.  Except as could not reasonably be expected to have a Material  Adverse Effect, each Company owns, or has the right to use, all of the patents, patent applications, industrial  designs, designs, trademarks, service marks, copyrights and licenses, and rights with respect to the  foregoing, reasonably necessary for the conduct of its business as currently conducted without any known  conflict with the rights of others.  Schedule 6.17 hereto sets forth all federally registered patents, trademarks,  copyrights, service marks and license agreements owned by each Company as of the Closing Date.  Insurance.  Each Company maintains with financially sound and reputable insurers  insurance with coverage (including, if applicable, flood insurance on all mortgaged property that is in a  

 

84  Special Flood Hazard Zone, from such providers, on such terms and in such amounts as required by the  Flood Disaster Protection Act as amended from time to time or as otherwise required by the Administrative  Agent) and limits as required by law and as is customary with Persons engaged in the same businesses as  the Companies.  Schedule 6.18 hereto sets forth all insurance carried by the Companies on the Closing  Date, setting forth in detail the amount and type of such insurance.  Deposit Accounts and Securities Accounts.  Schedule 6.19 hereto lists all banks, other  financial institutions and Securities Intermediaries at which any Company maintains Deposit Accounts or  Securities Accounts as of the Closing Date (other than Deposit Accounts and Securities Accounts  maintained with Huntington), and Schedule 6.19 hereto correctly identifies the name, address and telephone  number of each such financial institution or Securities Intermediary, the name in which the account is held,  a description of the purpose of the account, and the complete account number therefor.  Accurate and Complete Statements.  Neither the Loan Documents nor any written  statement made by any Company in connection with any of the Loan Documents contains any untrue  statement of a material fact or omits to state a material fact necessary to make the statements contained  therein or in the Loan Documents not misleading.  After due inquiry by the Borrower, there is no known  fact that any Company has not disclosed to the Administrative Agent and the Lenders that has or is likely  to have a Material Adverse Effect. Notwithstanding the foregoing, the Companies make no representation  or warranty with respect to any financial projections that have been made available to the Administrative  Agent prior to the Closing Date (the “Projections”), except that such Projections were prepared based on  good faith estimates and assumptions by the management of the Companies, there are no statements or  conclusions in such Projections or any related budgets which, at the time made, are based upon or include  information known to any Company to be materially misleading or which fail to take into account material  information regarding the matters reported therein.  On the Closing Date, the Companies believe that the  Projections are reasonable and attainable, it being understood that uncertainty is inherent in any forecasts  or  projections, such Projections are not to be viewed as facts, such Projections are subject to uncertainties  and contingencies, many of which are beyond any Person’s control, and that no assurances can be given  that the results set forth in the Projections will actually be obtained and the differences may be material.  Investment Company; Other Restrictions.  No Company is (a) an “investment company”  or a company “controlled” by an “investment company” within the meaning of the Investment Company  Act of 1940, as amended, or (b) subject to regulation under any foreign, federal, state or local statute or  regulation limiting its ability to incur Indebtedness.  Defaults.  No Default or Event of Default exists, nor will any begin to exist immediately  after the execution and delivery hereof.  Affected Financial Institution. No Loan Party is an Affected Financial Institution.  Anti-Corruption Laws and Sanctions.    (a) None of (i) any Loan Party, any Subsidiary thereof or any of the respective directors,  officers, employees or Affiliates of any Loan Party or any Subsidiary thereof, or (ii) any agent or  representative of any Loan Party or any Subsidiary thereof that will act in any capacity in connection with,  or benefit from, the credit facilities provided hereunder, (A) is a Sanctioned Person or currently the subject  or target of any Sanctions, (B) has its assets located in a Sanctioned Country, (C) directly or indirectly  derives revenues from investments in, or transactions with, Sanctioned Persons or (D) has taken any action,  directly or indirectly, that would result in a violation by such Persons of any Anti-Corruption Laws or has  the purpose of evading or avoiding any Anti-Corruption Laws.  Each of the Loan Parties and their respective  Subsidiaries has implemented and maintains in effect policies and procedures designed to promote and  

 

85  achieve compliance by the Loan Parties and their respective Subsidiaries and their respective directors,  officers, employees, agents and Affiliates with the Anti-Corruption Laws.  Each of the Loan Parties and  their respective Subsidiaries each director, officer, employee, agent and Affiliate of the Loan Parties and  their respective Subsidiaries, is in compliance with the Anti-Corruption Laws.  (b) No proceeds of any Credit Extension have been used, directly or indirectly, by any Loan  Party, any Subsidiary thereof or, any of the respective directors, officers, employees, Affiliates or agents of  the foregoing (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or  giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for  the purpose of funding, financing or facilitating any activities, business or transaction of or with any  Sanctioned Person, or in any Sanctioned Country, including any payments (directly or indirectly) to a  Sanctioned Person or a Sanctioned Country or (iii) in any manner that would result in the violation of any  Sanctions applicable to any party hereto.  (c) Notwithstanding the foregoing, the representations given in this Section 6.24 shall not be  made by nor apply to any Person that qualifies as a corporation that is registered or incorporated under the  laws of Canada or any province thereof and that carries on business in whole or in part in Canada within  the meaning of Section 2 of the Foreign Extraterritorial Measures (United States) Order, 1992 passed under  the Foreign Extraterritorial Measures Act (Canada) in so far as such representations would result in a  violation of or conflict with the Foreign Extraterritorial Measures Act (Canada) or any similar law.  Beneficial Ownership Certification.  The Loan Parties represent that the information  included in each Beneficial Ownership Certification delivered to the Administrative Agent and each Lender  is true and correct in all respects.  ARTICLE VII  DEFAULT AND REMEDIES  Events of Default.   Any of the following specified events shall constitute an Event of  Default (each an “Event of Default”):  (a) Payments.  If (i) the interest on any Loan, any commitment or other fee, or any other  Obligation not listed in subpart (ii) hereof, shall not be paid in full within five (5) Business Days of being  due and payable, or (ii) the principal of any Loan or any reimbursement obligation under any Letter of  Credit that has been drawn shall not be paid in full when due and payable.  (b) Special Covenants.  If any Company shall fail or omit to perform and observe Sections 5.7,  5.8, 5.9, 5.10, 5.11, 5.12, 5.13, 5.14, 5.15, 5.17, 5.18, 5.20, 5.23, 5.24, 5.25, 5.26, 5.28 or 5.30 hereof.  (c) Other Covenants.    (i) If any Company shall fail or omit to perform and observe Section 5.3 and that  Default shall not have been fully corrected within ten (10) days after the earlier of (1) any Financial Officer  of such Company becomes aware of the occurrence thereof, or (2) the giving of written notice thereof to  the Borrower by the Administrative Agent that the specified Default is to be remedied.  (ii) If any Company shall fail or omit to perform and observe any agreement or other  provision (other than those referred to in clauses (a), (b) or (c)(i) of this Section 7.1) contained or referred  to in this Agreement or any other Related Writing that is on such Company’s part to be complied with, and  that Default shall not have been fully corrected within thirty (30) days after the earlier of (1) any Financial  Officer of such Company becomes aware of the occurrence thereof, or (2) the giving of written notice  

 

86  thereof to the Borrower by the Administrative Agent or the Required Lenders that the specified Default is  to be remedied.  (d) Representations and Warranties.  If any representation, warranty or statement made in or  pursuant to this Agreement or any other Related Writing or any other material information furnished by  any Company to the Administrative Agent or the Lenders, or any thereof, or any other holder of any Note,  shall be false or erroneous in any material respect when made or deemed made (other than a representation,  warranty or statement qualified by materiality or reference to the absence of a Material Adverse Effect, in  which event such representation, warranty or statement shall prove to have been false or misleading in any  respect).  (e) Cross Default.  If any Company shall default in the payment of principal or interest due  and owing under any Material Indebtedness Agreement beyond any period of grace provided with respect  thereto or in the performance or observance of any other agreement, term or condition contained in any  agreement under which such obligation is created, if the effect of such default is to allow the acceleration  of the maturity of such Indebtedness or to permit the holder thereof to cause such Indebtedness to become  due prior to its stated maturity.  (f) ERISA or Pension Plan Default.    (i)  ERISA Default.  The occurrence of one or more ERISA Events or similar event  with respect to a Foreign Plan that (1) the Required Lenders determine could reasonably be expected to  have a Material Adverse Effect, or (2) results in a Lien on any of the assets of any Company, to the extent  that the aggregate of all such Liens for all Companies exceeds Five Hundred Thousand Dollars ($500,000).  (ii) Foreign Pension Plan Default.  The institution of any steps by any Company or any  applicable regulatory authority to terminate a Foreign Pension Plan, Defined Benefit Plan or Canadian  MEPP (wholly or in part) if, as a result of such termination, such Company is required to make an additional  contribution to such Foreign Pension Plan, Defined Benefit Plan or Canadian MEPP, or to incur an  additional liability or obligation to such Foreign Pension Plan, Defined Benefit Plan or Canadian MEPP,  equal to or in excess of Five Hundred Thousand Dollars ($500,000) or the equivalent thereof in another  currency.   (g) Change in Control.  If any Change in Control shall occur.  (h) Judgments.  There is entered against any Company:  (i) a final judgment or order for the payment of money by a court of competent  jurisdiction, that remains unpaid or unstayed and undischarged for a period (during which execution shall  not be effectively stayed) of sixty (60) days after the date on which the right to appeal has expired, provided  that such occurrence shall constitute an Event of Default only if the aggregate of all such judgments for all  such Companies, shall exceed Five Hundred Thousand Dollars ($500,000) (less any amount that will be  covered by the proceeds of insurance or indemnities and is not subject to dispute by the insurance provider  or the third party); or  (ii) any one or more non-monetary final judgments that are not covered by insurance,  or, if covered by insurance, for which the insurance company has not agreed to or acknowledged coverage,  and that, in either case, the Required Lenders reasonably determine have, or could reasonably be expected  to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (1) enforcement  proceedings are commenced by the prevailing party or any creditor upon such judgment or order, or  

 

87  (2) there is a period of three consecutive Business Days during which a stay of enforcement of such  judgment, by reason of a pending appeal or otherwise, is not in effect.  (i) [Reserved].  (j) Security.  If any Lien granted in this Agreement or any other Loan Document in favor of  the Administrative Agent, for the benefit of Secured Parties, shall be determined to be (i) void, voidable or  invalid, or is subordinated or not otherwise given the priority contemplated by this Agreement or such Loan  Document and the Borrower has (or the appropriate Loan Party has) failed to promptly execute appropriate  documents reasonably requested by the Administrative Agent to correct such matters, or (ii) unperfected as  to any material amount of Collateral (as determined by the Administrative Agent, in its reasonable  discretion, or the Required Lenders, in their reasonable discretion) and the Borrower has (or the appropriate  Loan Party has) failed to promptly execute appropriate documents reasonably requested by the  Administrative Agent to correct such matters.  (k) Validity of Loan Documents.  If (i) any material provision, in the sole opinion of the  Administrative Agent, of any Loan Document shall at any time cease to be valid, binding and enforceable  against any Loan Party; (ii) the validity, binding effect or enforceability of any Loan Document against any  Loan Party shall be contested by any Loan Party; (iii) any Loan Party shall deny that it has any or further  liability or obligation under any Loan Document; or (iv) any Loan Document shall be terminated,  invalidated or set aside, or be declared ineffective or inoperative or in any way cease to give or provide to  the Administrative Agent and the Lenders the benefits purported to be created thereby.  (l) Solvency.  If any Company (other than a Dormant Subsidiary) shall (i) except as permitted  pursuant to Section 5.12 hereof, discontinue business; (ii) generally not pay its debts as such debts become  due; (iii) make a general assignment for the benefit of creditors; (iv) apply for or consent to the appointment  of an interim receiver, a receiver, a receiver and manager, an administrator, a sequestrator, a monitor, a  custodian, a trustee, an interim trustee, a liquidator, an agent or any other similar official of all or a  substantial part of its assets or of such Company; (v) be adjudicated a debtor or insolvent or have entered  against it an order for relief under the Bankruptcy Code, any other Debtor Relief Law, or under any other  bankruptcy, insolvency, liquidation, winding-up, corporate or similar statute or Law, foreign, federal, state  or provincial, in any applicable jurisdiction, now or hereafter existing, as any of the foregoing may be  amended from time to time, or other applicable statute for jurisdictions outside of the United States, as the  case may be; (vi) file a voluntary petition under the Bankruptcy Code, any other Debtor Relief Law or seek  relief under any bankruptcy or insolvency or analogous Law in any jurisdiction outside of the United States,  or file a proposal or notice of intention to file such petition; (vii) have an involuntary proceeding under the  Bankruptcy Code (or any Debtor Relief Law or other bankruptcy or insolvency or analogous law in any  jurisdiction outside of the United States) filed against it and the same shall not be controverted within thirty  (30) days (or such longer period as agreed to in writing by the Administrative Agent in its reasonable  discretion), or shall continue undismissed for a period of sixty (60) days from commencement of such  proceeding or case; (viii) file a petition, an answer, an application or a proposal seeking reorganization or  an arrangement with creditors or seeking to take advantage of any other Law (whether federal, provincial,  territorial or state, or, if applicable, other jurisdiction) relating to relief of debtors, or admit (by answer, by  default or otherwise) the material allegations of a petition filed against it in any bankruptcy, reorganization,  insolvency or other proceeding (whether federal, provincial, territorial or state, or, if applicable, other  jurisdiction) relating to relief of debtors; (ix) suffer or permit to continue unstayed and in effect for sixty  (60) consecutive days any judgment, decree or order entered by a court of competent jurisdiction, that  approves a petition or an application or a proposal seeking its reorganization or appoints an interim receiver,  a receiver and manager, an administrator, custodian, trustee, interim trustee or liquidator of all or a  substantial part of its assets, or of such Company; (x) have an administrative receiver appointed over the  whole or substantially the whole of its assets, or of such Company; (xi) have assets, the value of which is  

 

88  less than its liabilities (taking into account prospective and contingent liabilities, and rights of contribution  from other Persons); or (xii) have a moratorium declared in respect of any of its Indebtedness, or any  analogous procedure or step is taken in any jurisdiction.  Remedies Upon Event of Default.  Upon the occurrence and during the continuance of an  Event of Default, the Administrative Agent may, and at the request of the Required Lenders shall, (a)  declare the commitment of each Lender to make Loans to be terminated, whereupon such commitments  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 Borrower, (c) require the Borrower to Cash Collateralize the  Letters of Credit in an amount equal to 105% of the Letter of Credit Exposure and (d) exercise on behalf of  itself, the Lenders and the Issuing Banks all rights and remedies available to it, the Lenders and the Issuing  Banks under the Loan Documents or applicable Law, including the right to resort to any Collateral and to  exercise any or all of the rights of a beneficiary or secured party pursuant to applicable Law; provided that  upon the occurrence of an Event of Default set forth in Section 7.1(l)(vi) or (l)(vii), the obligation of each  Lender to make Loans shall automatically terminate, the unpaid principal amount of all outstanding Loans  and all interest and other amounts as aforesaid shall automatically become due and payable and the  obligation of the Borrower to Cash Collateralize the Letters of Credit as provided in clause (c) above shall  automatically become effective, without further act of the Administrative Agent.    Allocation of Payments After Event of Default.  After the exercise of remedies provided  for in Section 7.2 (or after the Loans have become due and payable and the obligation of the Borrower to  Cash Collateralize the Letter of Credit Exposure has automatically become effective as set forth in the  proviso to Section 7.2), any amounts received on account of the Secured Obligations shall be applied by  the Administrative Agent in the following order:  First, to payment of that portion of the Obligations constituting fees, indemnities, expenses  and other amounts (including fees, charges and disbursements of counsel to the Administrative  Agent and amounts payable under Article III) payable to the Administrative Agent in its capacity  as such;  Second, to payment of that portion of the Obligations constituting fees, indemnities and  other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders and  the Issuing Banks (including fees, charges and disbursements of counsel to the respective Lenders  and the Issuing Banks) arising under the Loan Documents and amounts payable under Article III,  ratably among them in proportion to the respective amounts described in this clause Second payable  to them;  Third, to payment of that portion of the Obligations constituting accrued and unpaid Letter  of Credit Fees and interest on the Loans, LC Disbursements and other Obligations arising under  the Loan Documents, ratably among the Lenders and the Issuing Banks in proportion to the  respective amounts described in this clause Third payable to them;  Fourth, to payment of that portion of the Obligations constituting unpaid principal of the  Loans and LC Disbursements and Secured Obligations that are Bank Product Obligations owing to  a Lender and Secured Obligations that are obligations and liabilities of the Companies owing to a  Hedge Bank under Hedge Agreements, ratably among Secured Parties in proportion to the  respective amounts described in this clause Fourth held by them;  

 

89  Fifth, to the Administrative Agent for the account of the applicable Issuing Bank, to Cash  Collateralize that portion of Letter of Credit Exposure comprised of the aggregate undrawn amount  of Letters of Credit to the extent not otherwise Cash Collateralized by the Borrower pursuant to  this Agreement;  Sixth, to the payment in full of all other Secured Obligations, in each case ratably among  Secured Parties based upon the respective aggregate amounts of all such Secured Obligations owing  to them in accordance with the respective amounts thereof then due and payable; and  Last, the balance, if any, after all of the Secured Obligations have been indefeasibly paid  in full, to the Borrower or as otherwise required by Law.  Notwithstanding the foregoing, amounts received from any Loan Party shall not be applied to any Excluded  Swap Obligation of such Loan Party.  ARTICLE VIII  THE ADMINISTRATIVE AGENT  Appointment and Authority.  Each of the Lenders and the Issuing Banks hereby irrevocably  appoints Huntington 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 are solely for the  benefit of the Administrative Agent, the Lenders and the Issuing Banks, and neither the Borrower nor any  other Loan Party shall have rights as a third-party beneficiary of any of such provisions.  It is understood  and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other similar  term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied  (or express) obligations arising under agency doctrine of any applicable Law.  Instead, such term is used as  a matter of market custom and is intended to create or reflect only an administrative relationship between  contracting parties.  Rights as a Lender.  The Person serving as the Administrative Agent hereunder shall have  the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as  though it were not the Administrative Agent, and the term “Lender” or “Lenders” shall, unless otherwise  expressly indicated or unless the context otherwise requires, include the Person serving as the  Administrative Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept  deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity  for, and generally engage in any kind of business with, the Borrower or any Subsidiary or other Affiliate  thereof as if such Person were not the Administrative Agent hereunder and without any duty to account  therefor to the Lenders.  Exculpatory Provisions.  (a) The Administrative Agent shall not have any duties or obligations except those expressly  set forth herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature.   Without limiting the generality of the foregoing, the Administrative Agent:  (i) shall not be subject to any fiduciary or other implied duties, regardless of whether  a Default has occurred and is continuing;  

 

90  (ii) shall not have any duty to take any discretionary action or exercise any  discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other  Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required  Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in  the other Loan Documents); provided that the Administrative Agent shall not be required to take any action  that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is  contrary to any Loan Document or applicable Law, including for the avoidance of doubt any action that  may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture,  modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and  (iii) 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 any of its Affiliates in any capacity.  (b) The Administrative Agent shall not be liable for any action taken or not taken by it (i) with  the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders  as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under  the circumstances as provided in Section 7.1 and Section 9.1), or (ii) in the absence of its own gross  negligence or willful misconduct as determined by a court of competent jurisdiction by final and non- appealable judgment.  The Administrative Agent shall be deemed not to have knowledge of any Default  unless and until notice describing such Default is given to the Administrative Agent in writing by the  Borrower, a Lender or an Issuing Bank.  (c) The Administrative Agent shall not be responsible for or have any duty to ascertain or  inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or  any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder  or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the  covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any  Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan  Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth  in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered  to the Administrative Agent.  (d) The Administrative Agent shall not be responsible or have any liability for, or have any  duty to investigate, a violation or potential violation of an Environmental Law or a release or threat of  release of a Hazardous Material pursuant to Section 5.16, nor shall it have any liability for any action it  takes or does not take in connection with any such investigation.  (e) Without limiting the powers of the Administrative Agent, for the purposes of holding any  hypothec granted to the Attorney (as defined below) pursuant to the laws of the Province of Québec to  secure the prompt payment and performance of any and all Obligations by any Loan Party, each of the  Secured Parties hereby irrevocably appoints and authorizes the Administrative Agent and, to the extent  necessary, ratifies the appointment and authorization of the Administrative Agent, to act as the hypothecary  representative of the creditors as contemplated under Article 2692 of the Civil Code of Québec (in such  capacity, the “Attorney”), and to enter into, to take and to hold on their behalf, and for their benefit, any  hypothec, and to exercise such powers and duties that are conferred upon the Attorney under any related  deed of hypothec. The Attorney shall: (i) have the sole and exclusive right and authority to exercise, except  as may be otherwise specifically restricted by the terms hereof, all rights and remedies given to the Attorney  pursuant to any such deed of hypothec and applicable law, and (ii) benefit from and be subject to all  provisions hereof with respect to the Administrative Agent mutatis mutandis, including, without limitation,  

 

91  all such provisions with respect to the liability or responsibility to and indemnification by the Secured  Parties and Loan Parties. Any person who becomes a Secured Party shall, by its execution of an Assignment  Agreement, be deemed to have consented to and confirmed the Attorney as the person acting as hypothecary  representative holding the aforesaid hypothecs as aforesaid and to have ratified, as of the date it becomes a  Secured Party, all actions taken by the Attorney in such capacity. The substitution of the Administrative  Agent pursuant to the provisions of this Section 8 shall also constitute the substitution of the Attorney.  Reliance by Administrative Agent.  The Administrative Agent shall be entitled to rely  upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement,  instrument, document or other writing (including any electronic message, Internet or intranet website  posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise  authenticated by the proper Person.  The Administrative Agent also may rely upon (a) any statement made  to it orally or by telephone and believed by it to have been made by the proper Person and (b) any statement  made by a director, authorized signatory or employee of any Person regarding any matters which may  reasonably be assumed to be within his or her knowledge or within his or her power to verify.  In  determining compliance with any condition hereunder to the making of a Loan, or the issuance, extension,  renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender  or an Issuing Bank, the Administrative Agent may presume that such condition is satisfactory to such  Lender or Issuing Bank unless the Administrative Agent shall have received notice to the contrary from  such Lender or Issuing Bank prior to the making of such Loan or the issuance of such Letter of Credit.  The  Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent  accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it  in accordance with the advice of any such counsel, accountants or experts.  Delegation of Duties.  The Administrative Agent may perform any and all of its duties and  exercise its rights and powers hereunder or under any other Loan Document by or through any one or more  sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may  perform any and all of its duties and exercise its rights and powers by or through their respective Related  Parties.  The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related  Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in  connection with the syndication of the credit facilities as well as activities as Administrative Agent.  The  Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except  to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that  the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub- agents.  Resignation of Administrative Agent.  (a) The Administrative Agent may at any time give notice of its resignation to the Lenders, the  Issuing Banks and the Borrower.  Upon receipt of any such notice of resignation, the Required Lenders  shall have the right, in consultation with the Borrower, 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 thirty (30) days after the retiring Administrative Agent gives notice of its resignation  (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective Date”), then  the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders and the  Issuing Banks, appoint a successor Administrative Agent meeting the qualifications set forth above,  provided that in no event shall any such successor Administrative Agent be a Defaulting Lender.  Whether  or not a successor has been appointed, such resignation shall become effective in accordance with such  notice on the Resignation Effective Date.    

 

92  (b) If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (d)  of the definition thereof, the Required Lenders may, to the extent permitted by applicable Law, by notice  in writing to the Borrower and such Person remove such Person as Administrative Agent and, in  consultation with the Borrower, appoint a successor.  If no such successor shall have been so appointed by  the Required Lenders and shall have accepted such appointment within thirty (30) days (or such earlier day  as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such removal shall  nonetheless become effective in accordance with such notice on the Removal Effective Date.  (c) With effect from the Resignation Effective Date or the Removal Effective Date (as  applicable) (i) the retiring or removed Administrative Agent shall be discharged from its duties and  obligations hereunder and under the other Loan Documents (except that in the case of any collateral security  held by the Administrative Agent on behalf of the Secured Parties under any of the Loan Documents, the  retiring or removed Administrative Agent shall continue to hold such collateral security until such time as  a successor Administrative Agent is appointed) and (ii) except for any indemnity payments owed to the  retiring or removed Administrative Agent, all payments, communications and determinations provided to  be made by, to or through the Administrative Agent shall instead be made by or to each Lender and each  Issuing Bank directly, until such time, if any, as the Required Lenders appoint a successor Administrative  Agent as provided for above.  Upon the acceptance of a successor’s appointment as Administrative Agent  hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and  duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments owed  to the retiring or removed Administrative Agent), and the retiring or removed Administrative Agent shall  be discharged from all of its duties and obligations hereunder or under the other Loan Documents.  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 or  removed Administrative Agent’s resignation or removal hereunder and under the other Loan Documents,  the provisions of this Article and Section 9.4 shall continue in effect for the benefit of such retiring or  removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions  taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting  as Administrative Agent.  Non-Reliance on Administrative Agent and Other Lenders.  Each Lender and Issuing Bank  acknowledges that it has, independently and without reliance upon the Administrative Agent or any other  Lender or any of their Related Parties and based on such documents and information as it has deemed  appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender and  Issuing Bank also acknowledges that it will, independently and without reliance upon the Administrative  Agent or any other Lender or Issuing Bank 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.  No Other Duties, Etc..  Anything herein to the contrary notwithstanding, no Arranger or   agent(s) listed on the cover page hereof shall have any powers, duties or responsibilities under this  Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative  Agent, a Lender or an Issuing Bank hereunder.  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 or reimbursement for any LC Disbursement 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 (but  not obligated) by intervention in such proceeding or otherwise:  

 

93  (a) to file and prove a claim for the whole amount of the principal and interest owing and  unpaid in respect of the Loans, the Letter of Credit Exposure and all other Obligations that are owing and  unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the  Lenders, the Issuing Banks and the Administrative Agent (including any claim for the compensation,  expenses, disbursements and advances of the Lenders, the Issuing Banks and the Administrative Agent and  their respective agents and counsel and all other amounts due the Lenders, the Issuing Banks and the  Administrative Agent under Section 9.3) allowed in such judicial proceeding; and  (b) to collect and receive any monies or other property payable or deliverable on any such  claims and to distribute the same;  and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such  judicial proceeding is hereby authorized by each Lender and each Issuing Bank to make such payments to  the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of  such payments directly to the Lenders and the Issuing Banks, to pay to the Administrative Agent any amount  due for the compensation, expenses, disbursements and advances of the Administrative Agent and its agents  and counsel, and any other amounts due the Administrative Agent under Section 9.4.  The Secured Parties hereby irrevocably authorize the Administrative Agent, at the direction of the Required  Lenders, to credit bid all or any portion of the Secured Obligations (including accepting some or all of the  Collateral in satisfaction of some or all of the Secured Obligations pursuant to a deed in lieu of foreclosure  or otherwise) and in such manner purchase (either directly or through one or more acquisition vehicles) all  or any portion of the Collateral (a) at any sale thereof conducted under the provisions of the Bankruptcy  Code of the United States, including under Sections 363, 1123 or 1129 of the Bankruptcy Code of the  United States, or any similar Laws in any other jurisdictions to which a Loan Party is subject, (b) at any  other sale or foreclosure or acceptance of collateral in lieu of debt conducted by (or with the consent or at  the direction of) the Administrative Agent (whether by judicial action or otherwise) in accordance with any  applicable Law.  In connection with any such credit bid and purchase, the Secured Obligations owed to  Secured Parties shall be entitled to be, and shall be, credit bid on a ratable basis (with Secured Obligations  with respect to contingent or unliquidated claims receiving contingent interests in the acquired assets on a  ratable basis that would vest upon the liquidation of such claims in an amount proportional to the liquidated  portion of the contingent claim amount used in allocating the contingent interests) in the asset or assets so  purchased (or in the Equity Interests or debt instruments of the acquisition vehicle or vehicles that are used  to consummate such purchase).  In connection with any such bid (i) the Administrative Agent shall be  authorized to form one or more acquisition vehicles to make a bid, (ii) the Administrative Agent shall be  authorized to adopt documents providing for the governance of the acquisition vehicle or vehicles (provided  that any actions by the Administrative Agent with respect to such acquisition vehicle or vehicles, including  any disposition of the assets or Equity Interests thereof shall be governed, directly or indirectly, by the vote  of the Required Lenders, irrespective of the termination of this Agreement and without giving effect to the  limitations on actions by the Required Lenders contained in the first proviso to Section 9.1 of this  Agreement), (iii) the Administrative Agent shall be authorized to assign the relevant Secured Obligations  to any such acquisition vehicle pro rata by the Lenders, as a result of which each of the Lenders shall be  deemed to have received a pro rata portion of any Equity Interests and/or debt instruments issued by such  an acquisition vehicle on account of the assignment of the Secured Obligations to be credit bid, all without  the need for any Secured Party or acquisition vehicle to take any further action, and (iv) to the extent that  Secured Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any  reason (as a result of another bid being higher or better, because the amount of Secured Obligations assigned  to the acquisition vehicle exceeds the amount of debt credit bid by the acquisition vehicle or otherwise),  such Secured Obligations shall automatically be reassigned to the Lenders pro rata and the Equity Interests  and/or debt instruments issued by any acquisition.  

 

94  Collateral and Guarantee Matters.  (a) Secured Parties irrevocably authorize the Administrative Agent, at its option and in its  discretion:  (i) to release any Lien on any property granted to or held by the Administrative Agent  under any Loan Document (A) upon termination of the Commitments and payment in full in cash of all  Secured Obligations (other than (x) contingent indemnification obligations for which no claim has been  asserted and (y) Bank Product Obligations and all obligations and liabilities of the Companies owing to a  Hedge Bank under Hedge Agreements, in each case, not yet due and payable) and the expiration or  termination of all Letters of Credit (other than Letters of Credit as to which other arrangements satisfactory  to the Administrative Agent and the applicable Issuing Bank shall have been made), (B) that is sold or  otherwise conveyed, transferred or disposed of or to be sold or otherwise conveyed, transferred or disposed  of as part of or in connection with any sale or other conveyance, transfer or disposal that is permitted under  the Loan Documents to a Person that is not a Loan Party or (C) if approved, authorized or ratified in writing  by the Required Lenders in accordance with Section 9.1; and  (ii) to release any Guarantor of Payment from its obligations under the Loan  Documents if such Person ceases to be a Subsidiary as a result of a transaction permitted under the Loan  Documents.  Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the  Administrative Agent’s authority to release or subordinate its interest in particular types or items of  property, or to release any Guarantor of Payment from its obligations under the Loan Documents pursuant  to this Section 8.10.    (b) The Administrative Agent shall not be responsible for or have a duty to ascertain or inquire  into any representation or warranty regarding the existence, value or collectability of the Collateral, the  existence, priority or perfection of the Administrative Agent’s Lien thereon, or any certificate prepared by  any Loan Party in connection therewith, nor shall the Administrative Agent be responsible or liable to the  Lenders for any failure to monitor or maintain any portion of the Collateral.  Compliance with Flood Insurance Laws.  The Administrative Agent has adopted internal  policies and procedures that address requirements placed on federally regulated lenders under the Flood  Insurance Laws and will post on the applicable electronic platform or otherwise distribute to each Lender  documents that it receives in connection with the Flood Insurance Laws (collectively, the “Flood  Documents”); provided, however that the Administrative Agent makes no representation or warranty with  respect to the adequacy of the Flood Documents or their compliance with the Flood Insurance Laws.  Each  Lender acknowledges and agrees that it is individually responsible for its own compliance with the Flood  Insurance Laws and that it shall, independently and without reliance upon Administrative Agent or any  other Lender and based on such documents and information as it shall from time to time deem appropriate,  including the Flood Documents posted or distributed by the Administrative Agent, continue to do its own  due diligence to ensure its compliance with the Flood Insurance Laws.  Bank Product Obligations and Hedging Agreement Obligations.  Except as otherwise  expressly set forth herein or in a Security Agreement, any other Security Document or any other Loan  Document, no Secured Party party to any Bank Product Agreement or a Hedge Agreement that obtains the  benefits of a Guaranty of Payment or any Collateral by virtue of the provisions hereof or of any Loan  Document shall have any right to notice of any action or to consent to, direct or object to any action  hereunder or under any other Loan Document or otherwise in respect of the Collateral including the release  or impairment of any Collateral or amendment to any Loan Document (including any Guaranty of Payment  

 

95  or Security Document) other than in its capacity as a Lender or Administrative Agent and, in such case,  only to the extent expressly provided in the Loan Documents.  Notwithstanding any other provision of this  Article VIII to the contrary, the Administrative Agent shall not be required to verify the payment of, or that  other satisfactory arrangements have been made with respect to, Secured Obligations arising under Bank  Product Obligations or obligations and liabilities of the Companies owing to a Hedge Bank under Hedge  Agreements unless the Administrative Agent has received written notice of such Secured Obligations,  together with such supporting documentation as the Administrative Agent may request, from the applicable  Secured Party.  By accepting the benefits of a Guaranty of Payment or any Collateral, each Lender (or an  Affiliate of a Lender) that has entered a Bank Product Agreement or Hedge Bank that in each case is not a  party to the Credit Agreement shall be deemed to have acknowledged and accepted the appointment of the  Administrative Agent pursuant to the terms of this Article VII for itself and its Affiliates as if a “Lender”  party hereto.  Certain ERISA Matters.  (a) Each Lender (x) represents and warrants, as of the date such Person became a  Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the  date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not,  for the avoidance of doubt, to or for the benefit of the Borrower or other Loan Party, that at least one of the  following is and will be true:  (i) such Lender is not using “plan assets” (within the meaning of Section  3(42) of ERISA or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) of one  or more Benefit Plans with respect to such Lender’s entrance into, participation in, administration  of and performance of the Loans, the Commitments or this Agreement,  (ii) the prohibited transaction exemption set forth in one or more PTEs, such  as PTE 84-14 (a class exemption for certain transactions determined by independent qualified  professional asset managers), PTE 95-60 (a class exemption for certain transactions involving  insurance company general accounts), PTE 90-1 (a class exemption for certain transactions  involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain  transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for  certain transactions determined by in-house asset managers), is applicable so as to exempt from the  prohibitions of Section 406 of ERISA and Section 4975 of the Code such Lender’s entrance into,  participation in, administration of and performance of the Loans, the Commitments and this  Agreement,  (iii) (A) such Lender is an investment fund managed by a “Qualified  Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified  Professional Asset Manager made the investment decision on behalf of such Lender to enter into,  participate in, administer and perform the Loans, the Commitments and this Agreement, (C) the  entrance into, participation in, administration of and performance of the Loans, the Commitments  and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-  14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of  PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration  of and performance of the Loans, the Commitments and this Agreement, or  (iv) such other representation, warranty and covenant as may be agreed in  writing between the Administrative Agent, in its sole discretion, and such Lender.  In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a  Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with sub- 

 

96  clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of  the date such Person became a Lender party hereto, and (y) covenants, from the date such Person became  a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the  Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower, that the  Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender’s  entrance into, participation in, administration of and performance of the Loans, the Commitments and this  Agreement (including in connection with the reservation or exercise of any rights by the Administrative  Agent under this Agreement, any Loan Document or any documents related hereto or thereto).  Erroneous Payments.  (a) Each Lender and each Issuing Bank hereby agrees that (i) if the Administrative Agent  notifies such Lender or Issuing Bank that the Administrative Agent has determined in its sole but reasonable  discretion that any funds received by such Lender or Issuing Bank from the Administrative Agent or any  of its Affiliates were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such  Lender or Issuing Bank (whether or not known to such Lender or Issuing Bank) (whether as a payment,  prepayment or repayment of principal, interest, fees or otherwise; individually and collectively, a  “Erroneous Payment”) and demands the return of such Erroneous Payment (or a portion thereof), such  Lender or Issuing Bank shall promptly, but in no event later than one (1) Business Day thereafter, return to  the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such  a demand was made, in same day funds, together with interest thereon in respect of each day from and  including the date such Erroneous Payment (or portion thereof) was received by such Lender or Issuing  Bank to the date such amount is repaid to the Administrative Agent at the greater of the Federal Funds Rate  and a rate determined by the Administrative Agent in accordance with prevailing banking industry rules on  interbank compensation from time to time in effect and (ii) to the extent permitted by applicable law, such  Lender or Issuing Bank shall not assert, and hereby waives, any claim, counterclaim, defense or right of  set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for  the return of any Erroneous Payments received, including without limitation any defense based on  “discharge for value” or any similar doctrine. A notice of the Administrative Agent to any Lender or any  Issuing Bank under this clause (a) shall be conclusive, absent manifest error.  (b) Without limiting immediately preceding paragraph (a), if any Lender or Issuing Bank  receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment  of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates)  that (x) is in a different amount than, or on a different date from, that specified in a notice of payment,  prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such  payment, prepayment or repayment, (y) was not preceded or accompanied by a notice of payment,  prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (z) such Lender or  Issuing Bank otherwise becomes aware was transmitted, or received, in error (in whole or in part):  (i) (A) in the case of immediately preceding clause (x) or (y), an error shall  be presumed to have been made (and that it is deemed to have knowledge of such error at the time  of receipt of such Erroneous Payment) or (B) in the case of immediately preceding clause (z), an  error has been made, in each case, with respect to such payment, prepayment or repayment; and  (ii) such Lender or Issuing Bank shall promptly (and, in all events, within one  (1) Business Day of its knowledge of such error) notify the Administrative Agent of its receipt of  such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so  notifying the Administrative Agent pursuant to this Section 8.14(b).  

 

97  (c) The Borrower agrees, for itself and each other Loan Party, that (x) in the event an Erroneous  Payment (or portion thereof) is not recovered from any Lender or Issuing Bank that has received such  Erroneous Payment (or portion thereof) for any reason, the Administrative Agent shall be subrogated to all  the rights of such Lender or Issuing Bank with respect to such amount and (y) an Erroneous Payment shall  not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrower or any other  Loan Party, except, to the extent such Erroneous Payment is, and solely with respect to the amount of such  Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrower or  any other Loan Party for the express purpose of making a payment in respect of the Obligations hereunder.  (d) Each party’s obligations under this Section 8.14 shall survive any resignation of the  Administrative Agent or any Issuing Bank, any transfer of rights or Obligations by, or the replacement of,  any Lender, the termination of the Commitments and repayment, satisfaction or discharge of the  Obligations.  ARTICLE IX  MISCELLANEOUS  Amendments, Etc.  Except as otherwise set forth herein, 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  each Loan Party party thereto, 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) waive any condition set forth in Section 4.2 or, in the case of the initial Credit Extension,  Section 4.1, without the written consent of each Lender;  (b) without limiting the generality of clause (a) above, waive any condition set forth in  Section 4.2 as to any Credit Extension under the Revolving Facility, the Term Facility, or the CapEx  Facility, as applicable, without the written consent of the Required Revolving Lenders, the Required Term  Lenders, or the Required CapEx Lenders, respectively;  (c) extend or increase the Commitment of a Lender without the written consent of such Lender;  (d) (1) extend or postpone any date fixed by this Agreement or any other Loan Document for  any payment of principal, interest, fees or other amounts due to the Lenders, without the written consent of  each Lender entitled to receive such payment (provided that only the consent of the Required Lenders shall  be necessary to extend or waive any mandatory prepayment required pursuant to this Agreement) or (2)  extend or postpone any scheduled expiration, termination or reduction date provided for herein that is  applicable to a Commitment of any Lender, without the written consent of such Lender;  (e) reduce or forgive the principal amount of any Loan or LC Disbursement or reduce the rate  of interest thereon, or reduce or forgive any interest, fees or other Obligations payable hereunder or under  any other Loan Document, without the written consent of each Lender directly affected thereby; provided  that only the consent of the Required Lenders shall be necessary (x) to amend the definition of “Default  Rate” or to waive the obligation of the Borrower to pay interest or fees at the Default Rate or (y) to amend  any financial covenant (or any defined term directly or indirectly used therein), even if the effect of such  amendment would be to reduce the rate of interest on any Loan or other Obligation or to reduce any fee  payable hereunder;  

 

98  (f) release all or substantially all of the Collateral securing the Secured Obligations or all or  substantially all of the Guarantors of Payment from their obligation under their respective Guaranty of  Payment, without the written consent of each Lender;  (g) amend, modify, or waive any provision of this Section 9.1, the definition of “Required  Lenders”, “Required Revolving Lenders”, “Required Term Lenders”, “Required CapEx Lenders” or any  other provision of any Loan Document specifying the number or percentage of Lenders (or Lenders of any  Class) required to waive, amend or modify any rights thereunder or make any determination or grant any  consent thereunder, in each cased without the written consent of each Lender directly affected thereby;  (h) change Section 2.14(d) or Section 2.15 or any other provision requiring ratable repayments  or prepayments in a manner that would alter the pro rata sharing of payments required thereby, without the  written consent of each Lender directly affected thereby; or  (i) change (i) Section 2.9(c), 2.17(a)(ii) or 7.3 without the written consent of each Lender  directly affected thereby or (ii) the order of application of any prepayment of Loans among the Facilities  from the application thereof set forth in the applicable provisions of Section 2.8 in any manner that directly  adversely affects the Lenders under a Facility without the written consent of (x) in the case of the Revolving  Facility, the Required Revolving Lenders, (y) in the case of the Term Facility, the Required Term Lenders  and (z) in the case of the CapEx Facility, the Required CapEx Lenders;   provided, further, that no such amendment, waiver or consent shall amend, modify or otherwise affect the  rights or duties hereunder or under any other Loan Document of (A) the Administrative Agent, unless in  writing executed by the Administrative Agent, (B) any Issuing Bank, unless in writing executed by such  Issuing Bank and (C) the Swingline Lender, unless in writing executed by the Swingline Lender, in each  case in addition to the Borrower and the Lenders required above.  Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or  disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which  by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent  of the applicable Lenders other than Defaulting Lenders), except that (x) the Commitment of any Defaulting  Lender may not be increased or extended without the consent of such Lender and (y) any waiver,  amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms  affects any Defaulting Lender disproportionately adversely relative to other affected Lenders shall require  the consent of such Defaulting Lender.  If the Administrative Agent and the Borrower acting together identify any ambiguity, omission,  typographical error or other ministerial defect in any provision of this Agreement or any other Loan  Document, then the Administrative Agent and the Borrower shall be permitted to amend, modify or  supplement such provision to cure such ambiguity, omission, typographical error or other ministerial defect,  and such amendment shall become effective without the consent of any other party to this Agreement so  long as, in each case, the Lenders shall have received at least five (5) Business Days’ prior written notice  thereof and the Administrative Agent shall not have received, within five (5) Business Days after the date  of such notice to the Lenders, a written notice from the Required Lenders stating that the Required Lenders  object to such amendment.  Notices; Effectiveness.  (a) Subject to paragraph (c) 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  

 

99  registered mail or sent by facsimile to the address, facsimile number, electronic mail address or telephone  number specified for such Person on Schedule A.  (b) Notices and other communications sent by hand or overnight courier service, or mailed by  certified or registered mail, shall be deemed to have been given when received; notices and other  communications sent by facsimile shall be deemed to have been given when sent (except that, if not given  during normal business hours for the recipient, shall be deemed to have been given at the opening of  business on the next Business Day for the recipient); notices and other communications delivered through  Electronic Systems to the extent provided in paragraph (c) below shall be effective as provided in such  paragraph.  Any party hereto may change its address or facsimile for notices and other communications  hereunder by notice to the other parties hereto.  (c) Notices and other communications to the Lenders and the Issuing Banks hereunder may be  delivered or furnished by using Electronic Systems pursuant to procedures approved by the Administrative  Agent; provided that the foregoing shall not apply to notices to any Lender or Issuing Bank pursuant to  Article II if such Lender or Issuing Bank, as applicable, 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 Systems 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,  all such notices and other communications (i) sent to an e-mail address shall be deemed received upon the  sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt  requested” function, as available, return e-mail or other written acknowledgement)  and (ii) posted to an  Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at  its e-mail address as described in the foregoing clause (i), of notification that such notice or communication  is available and identifying the website address therefor; provided, that, for both clauses (i) and (ii) above,  if such notice, e-mail or other communication is not sent during the normal business hours of the recipient,  such notice or communication shall be deemed to have been sent at the opening of business on the next  Business Day of the recipient.  (d) Any Electronic System used by the Administrative Agent is provided “as is” and “as  available.”  Each of the Administrative Agent and its Related Parties does not warrant the adequacy of such  Electronic System and expressly disclaims liability for errors or omissions in any notice or other  communication thereunder.  No warranty of any kind, express, implied or statutory, including any warranty  of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from  viruses or other code defects, is made by the Administrative Agent or any of its Related Parties in  connection with any such communication or any Electronic System.  In no event shall the Administrative  Agent or any of its Related Parties have any liability to the Borrower or the other Loan Parties, any Lender,  the Issuing Banks or any other Person or entity for damages of any kind, including direct or indirect, special,  incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out  of the Borrower’s, any Loan Party’s or the Administrative Agent’s transmission of communications through  an Electronic System.    No Waiver; Cumulative Remedies; Enforcement.  No failure by the Administrative Agent  to exercise, and no delay by the Administrative Agent in exercising, any right, remedy, power or privilege  under this Agreement or any other Loan Document shall operate as a waiver thereof; nor shall any single  or partial exercise of any right, remedy, power or privilege under this Agreement or any other Loan  Document preclude any other or further exercise thereof or the exercise of any other right, remedy, power  or privilege.  The rights, remedies, powers and privileges under this Agreement and each other Loan  Document are cumulative and not exclusive of any rights, remedies, powers and privileges provided by  Law.  Each Loan Party hereby waives notice of non-payment, demand, presentment, protest and notice  

 

100  thereof with respect to any and all instruments, notice of acceptance hereof, notice of loans or advances  made, credit extended, collateral received or delivered, or any other action taken in reliance hereon, and all  other demands and notices of any description, except such as are expressly provided for herein.  Notwithstanding anything to the contrary contained herein or in any other Loan Document, the  authority to enforce rights and remedies hereunder and under the other Loan Documents against the Loan  Parties or any of them shall be vested exclusively in, and all actions and proceedings at law in connection  with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent in  accordance with this Section 9.3 for the benefit of all the Lenders; provided, that the foregoing shall not  prohibit (a) the Administrative Agent from exercising on its own behalf the rights and remedies that inure  to its benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan  Documents, (b) any Issuing Bank or the Swingline Lender from exercising the rights and remedies that  inure to its benefit (solely in its capacity as an Issuing Bank or the Swing Line Lender, as the case may be)  hereunder and under the other Loan Documents, (c) any Lender from exercising setoff rights in accordance  with Section 9.8 (subject to the terms of Section 2.15) or (d) any Lender from filing proofs of claim or  appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to any Loan  Party under any Debtor Relief Laws; provided, further, that if at any time there is no person acting as  Administrative Agent hereunder and under the other Loan Documents, then (i) the Required Lenders shall  have the rights otherwise ascribed to the Administrative Agent pursuant to Section 8.1, and (ii) in addition  to the matters set forth in clauses (b), (c) and (d) of the preceding proviso and subject to Section 2.15, any  Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and  as authorized by the Required Lenders.  Expenses; Indemnity; Damage Waiver.  (a) Costs and Expenses.  The Borrower shall pay (i) all reasonable and documented out-of- pocket expenses incurred by the Administrative Agent (including the reasonable and documented fees,  charges and disbursements of counsel for the Administrative Agent), in connection with the preparation,  negotiation, execution, delivery and administration of this Agreement and the other Loan Documents, or  any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the  transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable and documented out  of pocket expenses incurred by any Issuing Bank in connection with the issuance, amendment, extension,  reinstatement or renewal of any Letter of Credit or any demand for payment thereunder, (iii) all reasonable  and documented out of pocket expenses incurred by the Administrative Agent, any Lender or any Issuing  Bank (without duplication) (including the reasonable and documented fees, charges and disbursements of  any counsel for the Administrative Agent, any Lender or any Issuing Bank) in connection with the  collection of the Obligations or the enforcement or protection of its rights under this Agreement and the  other Loan Documents, including all such reasonable and documented out-of-pocket expenses incurred  during any workout, restructuring or negotiations in respect thereof; provided that such counsel shall be  limited to one lead counsel and one local counsel in each applicable jurisdiction and in the case of a conflict  of interest, one additional counsel per affected party.    (b) Indemnification by the Borrower.  The Borrower shall indemnify the Administrative Agent  (and any sub-agent thereof), each Lender and each Issuing Bank and each Related Party of the foregoing  Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from,  any and all losses, claims, damages, penalties, liabilities and related expenses (including the fees, charges  and disbursements of one counsel and one local counsel in each applicable jurisdiction for any Indemnitee),  incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Borrower or  any other Loan Party) arising out of, in connection with, or as a result of (i) the execution or delivery of this  Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the  performance by the parties hereto of their respective obligations hereunder or thereunder or the  

 

101  consummation of the transactions contemplated hereby or thereby, (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 of Hazardous  Materials on, at, under, to or from any property currently or formerly owned, leased or operated by any  Loan Party or any Subsidiary thereof, or any Environmental Liability related in any way to any Loan Party  or any Subsidiary thereof 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 be available to the extent that such losses, claims, damages,  liabilities or related expenses (I) are determined by a court of competent jurisdiction by final and non- appealable judgment to have resulted from the gross negligence, bad faith, or willful misconduct of such  Indemnitee or (II) arise from disputes between or among the Indemnitees not arising from an act or omission  by the Loan Parties.  This Section 9.4(b) shall not apply with respect to Taxes other than any Taxes that  represent losses, claims, damages, etc. arising from any non-Tax claim.  (c) Reimbursement by Lenders.  To the extent that the Borrower for any reason fails to  indefeasibly pay any amount required under paragraph (a) or (b) of this Section to be paid by it to the  Administrative Agent (or any sub-agent thereof), any Issuing Bank, the Swingline Lender or any Related  Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such  sub-agent), such Issuing Bank, the Swingline Lender or such Related Party, as the case may be, such  Lender’s pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity  payment is sought based on each Lender’s Applicable Percentage at such time) of such unpaid amount  (including any such unpaid amount in respect of a claim asserted by such Lender); provided that with  respect to such unpaid amounts owed to an Issuing Bank or the Swingline Lender solely in its capacity as  such, only the Revolving Lenders shall be required to pay such unpaid amounts, such payment to be made  severally among them based on such Revolving Lender’s Applicable Percentage (determined as of the time  that the applicable unreimbursed expense or indemnity payment is sought); provided, further, 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), such Issuing Bank  or the Swingline Lender in its capacity as such, or against any Related Party of any of the foregoing acting  for the Administrative Agent (or any such sub-agent), such Issuing Bank or the Swingline Lender in  connection with such capacity.  (d) Waiver of Consequential Damages, Etc.  To the fullest extent permitted by applicable Law,  no Loan Party shall assert, and each Loan Party hereby waives, 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 Letter of Credit or the use of the proceeds thereof.  No Indemnitee referred to in paragraph (b)  above shall be liable for any damages arising from the use by unintended recipients of any information or  other materials distributed by it through telecommunications, electronic or other information transmission  systems in connection with this Agreement or the other Loan Documents or the transactions contemplated  hereby or thereby 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; Survival.  All amounts due under this Section 9.4 shall be payable not later than  thirty (30) days after demand therefor.  Each party’s obligations under this Section 9.4 shall survive the  termination of the Commitments and repayment, satisfaction or discharge of the Obligations.  Payments Set Aside.  To the extent that any payment by or on behalf of any Loan Party is  made to any Secured Party, or any Secured Party exercises its right of setoff, and such payment or the  

 

102  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 Secured Party  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, 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.  Successors and Assigns.  (a) Successors and Assigns Generally.  The provisions of this Agreement shall be binding upon  and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby,  except that no Loan Party may assign or otherwise transfer any of its rights or obligations hereunder without  the prior written consent of Administrative Agent and each Lender, and no Lender may assign or otherwise  transfer any of its rights or obligations hereunder and except (i) to an assignee in accordance with the  provisions of Section 9.6(b); (ii) by way of participation in accordance with the provisions of Section 9.6(d),  or (iii) by way of pledge or assignment of a security interest subject to the restrictions of Section 9.6(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  Section 9.6(d) and, to the extent expressly contemplated hereby, the Related Parties of each of the  Administrative Agent, the Lenders and the Issuing Banks) any legal or equitable right, remedy or claim  under or by reason of this Agreement.  (b) Assignments by Lenders.  Any Lender may at any time assign to one or more assignees all  or a portion of its rights and obligations under this Agreement (including all or a portion of its Loans at the  time owing to it); provided that any such assignment shall be subject to the following conditions:  (i) Minimum Amounts.  (A) In the case of an assignment of the entire remaining amount of the  assigning Lender’s Commitment under any Facility and/or the Loans at the time owing to  it (in each case with respect to any Facility) or contemporaneous assignments to related  Approved Funds (determined after giving effect to such assignments) that equal at least the  amount specified in paragraph (b)(i)(B) of this Section in the aggregate or in the case of an  assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum  amount need be assigned; and  (B) in any case not described in subsection (b)(i)(A) of this Section, the  aggregate amount of the Commitment (which for this purpose includes Loans outstanding  thereunder) or, if the applicable 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 Agreement with respect to such assignment is delivered to  the Administrative Agent or, if “Trade Date” is specified in the Assignment Agreement, as  of the Trade Date, shall not be less than $5,000,000, in the case of any assignment in respect  of the Revolving Facility, or $1,000,000, in the case of any assignment in respect of the  Term Facility, unless 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, conditioned or delayed).  (ii) Proportionate Amounts.  Each partial assignment shall be made as an assignment  of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect  

 

103  to the Loans or the Commitment assigned, except that this clause (ii) shall not (A) apply to the Swingline  Lender’s rights and obligations in respect of Swingline Loans or (B) prohibit any Lender from assigning  all or a portion of its rights and obligations among separate Facilities on a non-pro rata basis.  (iii) Required Consents.  No consent shall be required for any assignment except to the  extent required by Section 9.6(b)(i)(B) and, in addition:  (A) the consent of the Borrower (such consent not to be unreasonably  withheld, conditioned 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 such assignment unless it shall object thereto by written  notice to such assigning Lender within five (5) Business Days after having received notice  thereof; provided, further, that the Borrower’s consent shall not be required during the  primary syndication of the Facilities; 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 any  Commitment or Loan to a Person that is not a Lender, an Affiliate of a Lender or an  Approved Fund; and  (C) the consent of each Issuing Bank and the Swingline Lender shall be  required for any assignment in respect of the Revolving Facility.   (iv) Assignment Agreement.  The parties to each assignment shall execute and deliver  to the Administrative Agent an Assignment Agreement, together with a processing and recordation fee of  $3,500; provided, however, that the Administrative Agent may, in its sole discretion, elect to waive such  processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall  deliver to the Administrative Agent an Administrative Questionnaire.   (v) No Assignment to Certain Persons.  No such assignment shall be made (A) to the  Borrower or any of the Borrower’s Subsidiaries or Affiliates, (B) to any Defaulting Lender or any of its  Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing  Persons described in this clause (B), or (C) to a natural Person (or a holding company, investment vehicle  or trust for, or owned and operated for the primary benefit of, a natural Person).  Subject to acceptance and recoding thereof by the Administrative Agent pursuant to paragraph (c)  of this Section, from and after the effective date specified in each Assignment Agreement, the assignee  thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment  Agreement, the assignor thereunder shall be released from its obligations under this Agreement (and, in the  case of an Assignment Agreement 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  Article III and Section 9.4 with respect to facts and circumstances occurring prior to the effective date of  such assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no  assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder  arising from that Lender’s having been a Defaulting Lender.  Upon request, the Borrower (at its sole  expense) shall execute and deliver a Note or Notes, as applicable, to the assignee Lender. (c) Register.  The Administrative Agent, acting solely for this purpose as an agent of the  Borrower, shall maintain at one of its offices a copy of each Assignment Agreement delivered to it and a  register for the recordation of the names and addresses of the Lenders and the Commitments of, and  

 

104  principal amount (and stated interest) 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 absent manifest error, 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. The Register  shall be available for inspection by the Borrower, any Lender and any Issuing Bank, at any reasonable time  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, any Lender or any other Person, sell and grant participations to any Person (other than a natural  Person, or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit  of, a natural Person, a Defaulting Lender or the 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 Loans) owing to it; provided that (i) such Lender’s obligations  under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other  parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent, the  Issuing Banks 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. For the avoidance of doubt, each Lender  shall be responsible for the indemnity under Section 9.4(c) without regard to the existence of any  participation.  Any agreement or instrument pursuant to which a Lender sells or grants such a participation shall  provide that such Lender shall retain the sole right to enforce this Agreement and to approve any  amendment, modification or waiver of any provision of this Agreement; provided that such agreement or  instrument may provide that such Lender will not, without the consent of the Participant, agree to any  amendment, waiver or other modification described in the first proviso to Section 9.1(a) that affects such  Participant.  Subject to Section 9.6(e), the Borrower agrees that each Participant shall be entitled to the  benefits of Article III to the same extent as if it were a “Lender” and had acquired its interest by assignment  pursuant to Section 9.6(b).  To the extent permitted by Law, each Participant also shall be entitled to the  benefits of Section 9.8 as though it were a “Lender;” provided such Participant agrees to be subject to  Section 2.14 as though it were a “Lender.”  Each Lender that sells or grants a participation shall, acting  solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and  address of its Participant(s) and the principal amounts (and stated interest) of each such Participant’s interest  in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no  Lender shall have any obligation to disclose all or any portion of the Participant Register (including the  identity of any Participant or any information relating to a Participant’s interest in any commitments, loans,  or its other obligation under any Loan Document) to any Person except to the extent that such disclosure is  necessary to establish that such loan or other obligation is in registered form under Section 5f.103-1(c) of  the United Stated Treasury Regulations.  The entries in the Participant Register shall be conclusive absent  manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register  as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the  contrary.  For the avoidance of doubt, Administrative Agent (in its capacity as Administrative Agent) shall  have no responsibility for maintaining a Participant Register.  (e) Limitations upon Participant Rights.  A Participant shall not be entitled to receive any  greater payment under Section 3.1 or Section 3.4 than the applicable Lender would have been entitled to  receive with respect to the participation sold or grated to such Participant, unless the sale or grant of the  participation containing a provision of greater entitlements to such Participant were made with the  Borrower’s prior written consent or to the extent such entitlement to receive a greater payment results from  a Change in Law that occurs after the Participant acquired the applicable participation.  A Participant that  would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 3.1 as if it were  

 

105  a Lender unless the Borrower is notified of the participation sold or granted to such Participant and such  Participant agrees, for the benefit of the Borrower, to comply with Section 3.1(f) as though it were a Lender.  (f) Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or  any portion of its rights under this Agreement (including under its Loans, if any) to secure obligations of  such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided  that no such pledge or assignment shall release such Lender from any of its obligations hereunder or  substitute any such pledgee or assignee for such Lender as a party hereto.  Treatment of Certain Information; Confidentiality.  Each of the Administrative Agent, the  Lenders and the Issuing Banks agrees to maintain the confidentiality of the Information (as defined below),  except that Information may be disclosed (a) to its branches and Affiliates and to its Related Parties (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 required  or requested by any regulatory authority purporting to have jurisdiction over such Person or its Related  Parties (including any self-regulatory authority), (c) to the extent required by applicable Law 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 9.7, to (i) any assignee  of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations under  this Agreement or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or  other transaction under which payments are to be made by reference to the Borrower and its obligations,  this Agreement or payments hereunder, (g) with the consent of the Borrower or (h) to the extent such  Information (x) becomes publicly available other than as a result of a breach of this Section 9.7 or (y)  becomes available to the Administrative Agent, any Lender or any Issuing Bank or any of their respective  branches or Affiliates on a nonconfidential basis from a source other than the Loan Parties.  For purposes  of this Section 9.7, “Information” means all information received from any Loan Party or any of their  respective Subsidiaries relating to any Loan Party or any of their respective Subsidiaries or any of their  respective businesses, other than any such information that is available to the Administrative Agent, any  Lender or any Issuing Bank on a nonconfidential basis prior to disclosure by such Loan Party or such  Subsidiary; provided that, in the case of information received from any Loan Party or any of their respective  Subsidiaries 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  9.7 shall be considered to have complied with its obligation to maintain the confidentiality of Information  as provided in this Section 9.7 if it has exercised the same degree of care to maintain the confidentiality of  such Information as it would accord to its own confidential information.  In addition, (i) the Administrative Agent and the Lenders may disclose the existence of this  Agreement and information about this Agreement to market data collectors, similar service providers to the  lending industry and service providers to the Administrative Agent or such Lender in connection with the  administration of this Agreement, the other Loan Documents, and the Commitments and (ii) each Loan  Party consents to the publication by the Arranger or its affiliates, at its own expense, of tombstones and  other advertising and marketing materials relating to the financing transactions contemplated by this  Agreement using any Loan Party’s name, product photographs, logo or trademark.   Right of Setoff.  If an Event of Default shall have occurred and be continuing, each Lender,  each Issuing Bank and each of their respective branches and Affiliates is hereby authorized at any time and  from time to time, to the fullest extent permitted by applicable Law, to set off and apply any and all deposits  (general or special, time or demand, provisional or final, in whatever currency) at any time held and other  obligations (in whatever currency) at any time owing by such Lender, such Issuing Bank or any such branch  

 

106  or Affiliate to or for the credit or the account of any Loan Party against any and all of the obligations of  such Loan Party now or hereafter existing under this Agreement or any other Loan Document to such  Lender or such Issuing Bank or their respective branches or Affiliates, irrespective of whether or not such  Lender, such Issuing Bank or such branch or Affiliate shall have made any demand under this Agreement  or any other Loan Document and although such obligations of such Loan Party may be contingent or  unmatured or are owed to a branch or office or Affiliate of such Lender or such Issuing Bank different from  the branch, office or Affiliate holding such deposit or obligated on such indebtedness; provided that in the  event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be  paid over immediately to the Administrative Agent for further application in accordance with the provisions  of Section 2.17 and, pending such payment, shall be segregated by such Defaulting Lender from its other  funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing Banks, and the  Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement  describing in reasonable detail the Secured Obligations owing to such Defaulting Lender as to which it  exercised such right of setoff.  The rights of each Lender, each Issuing Bank and their respective branches  and Affiliates under this Section 9.8 are in addition to other rights and remedies (including other rights of  setoff) that such Lender or such Issuing Bank or its respective branches or Affiliates may have.  Each  Lender and each Issuing Bank 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.  Survival.  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 other parties hereto, regardless of any investigation made by any such other  party or on its behalf and notwithstanding that the Administrative Agent, any Issuing Bank or any Lender  may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue  in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or  unsatisfied.  The provisions of Sections 2.13(b), 3.4, 3.5, 9.4 and 9.5 and Article VIII shall survive the  repayment of the Obligations, the expiration or termination of the Letters of Credit and the Commitments  and the termination of this Agreement or any provision hereof.   Independent Effect of Covenants.  Each Loan Party expressly acknowledges and agrees  that each covenant contained in Article V shall be given independent effect.  Accordingly, neither any Loan  Party nor any Subsidiary thereof shall engage in any transaction or other act otherwise permitted under any  covenant contained in Article V, if before or after giving effect to such transaction or act any Loan Party  shall or would be in breach of any other covenant contained in Article V.  Governing Law; Jurisdiction; Etc.  (a) Governing Law.  This Agreement and the other Loan Documents and any claim,  controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of  or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as  expressly set forth therein) or the transactions contemplated hereby and thereby shall be governed by, and  construed in accordance with, the laws of the State of Ohio, provided, however, that if the laws of any  jurisdiction other than Ohio shall govern in regard to the validity, perfection or effect of perfection of any  lien or in regard to procedural matters affecting enforcement of any liens in Collateral, such laws of such  other jurisdictions shall continue to apply to that extent.  (b) Submission to Jurisdiction.  Each Loan Party irrevocably and unconditionally agrees that  it will not commence any action, litigation or proceeding of any kind or description, whether in law or  equity, whether in contract or in tort or otherwise, against the Administrative Agent, any Lender, any Issuing  

 

107  Bank or any Related Party of the foregoing in any way relating to this Agreement or any other Loan  Document or the transactions relating hereto or thereto, in any forum other than the courts of the State of  Ohio sitting in Franklin County, Ohio  and of the United States District Court of the Southern District of  Ohio, and any appellate court from any thereof, and each of the parties hereto irrevocably and  unconditionally submits to the jurisdiction of such courts and agrees that all claims in respect of any such  action, litigation or proceeding may be heard and determined in such state court or, to the fullest extent  permitted by applicable Law, in such federal court.  Each Loan Party agrees that a final judgment in any  such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit  on the judgment or in any other manner provided by Law.  Nothing in this Agreement or in any other Loan  Document shall affect any right that the Administrative Agent, any Lender or any Issuing Bank may  otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document  against any Loan Party or its properties in the courts of any jurisdiction.  (c) Waiver of Venue.  Each 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 Section 9.11(b).  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 9.2.  Nothing in this Agreement will affect the right of any party  hereto to serve process in any other manner permitted by applicable Law.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY  WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY  HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY  ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT  OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON  CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT  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, (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 9.12 AND (C) CERTIFIES THAT  THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE.  Counterparts; Integration; Effectiveness; Electronic Execution; Termination.    (a) Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts  (and by different parties hereto in different counterparts), each of which shall constitute an original, but all  of which when taken together shall constitute a single contract.  This Agreement 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.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in  electronic (e.g.  “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of  this Agreement.    (b) Electronic Execution.  The words “execution,” “signed,” “signature,” “delivery” and words  of like import in this Agreement and the other Loan Documents, including any Assignment and  

 

108  Assumption, shall be deemed to include electronic signatures or electronic records, 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.  Each party hereto agrees that any electronic signature or execution in the form of an  electronic record shall be valid and binding on itself and each of the other parties hereto to the same extent  as a manual, original signature.  For the avoidance of doubt, the authorization under this paragraph may  include, without limitation, use or acceptance by the parties of a manually signed paper which has been  converted into electronic form (such as scanned into PDF format), or an electronically signed paper  converted into another format, for transmission, delivery and/or retention.  Notwithstanding anything  contained herein to the contrary, the Administrative Agent is under no obligation to accept an electronic  signature in any form or in any format unless expressly agreed to by the Administrative Agent pursuant to  procedures approved by it; provided that  without limiting the foregoing, (i) to the extent the Administrative  Agent has agreed to accept such electronic signature from any party hereto, the Administrative Agent and  the other parties hereto shall be entitled to rely on any such electronic signature purportedly given by or on  behalf of the executing party without further verification and (ii) upon the request of the Administrative  Agent or any Lender, any electronic signature shall be promptly followed by an original manually executed  counterpart thereof.  Without limiting the generality of the foregoing, each party hereto hereby (A) agrees  that, for all purposes, including without limitation, in connection with any workout, restructuring,  enforcement of remedies, bankruptcy proceedings or litigation among the Administrative Agent, the  Lenders and any of the Loan Parties, electronic images of this Agreement or any other Loan Document (in  each case, including with respect to any signature pages thereto)  shall have the same legal effect, validity  and enforceability as any paper original, and (B) waives any argument, defense or right to contest the  validity or enforceability of the Loan Documents based solely on the lack of paper original copies of any  Loan Documents, including with respect to any signature pages there.  (c) Upon the occurrence of the Termination Date, all obligations under the Loan Documents  and all security interests created by the Security Documents shall be automatically released. In connection  with any termination or release pursuant to this paragraph (c), the Administrative Agent shall execute and  deliver to any Loan Party, at such Loan Party’s expense, all documents that such Loan Party shall  reasonably request to evidence such termination or release. Any execution and delivery of documents  pursuant to this paragraph (c) shall be without recourse to or warranty by the Administrative Agent. Upon  the occurrence of the Termination Date, the Administrative Agent will, and the Lenders irrevocably  authorize the Administrative Agent to, release or subordinate any Lien on any property granted to or held  by the Administrative Agent under any Loan Document to the holder of any Lien on such property to the  extent required by the terms of the obligations secured by such Liens pursuant to documents reasonably  acceptable to the Administrative Agent. “Termination Date” means the date on which (a) all Commitments  shall have been terminated, (b) all Obligations (other than in respect of contingent indemnification and  contingent expense reimbursement claims not then due) have been paid in full, and (c) all Letters of Credit  (other than those that have been 105% Cash Collateralized or backstopped, or with respect to which other  arrangements reasonably satisfactory to the applicable Issuing Bank have been made) have been cancelled  or have expired (without any drawing having been made thereunder that has not been rejected or honored)  and all amounts drawn or paid thereunder have been reimbursed in full.  No Advisory or Fiduciary Responsibility.  In connection with all aspects of each  transaction contemplated hereby, each Loan Party acknowledges and agrees, and acknowledges its  Affiliates’ understanding, that: (a) (i) the arranging and other services regarding this Agreement provided  by any Arranger, the Administrative Agent, any Issuing Bank or any Lender are arm’s-length commercial  transactions between the Loan Parties and their respective Affiliates, on the one hand, and any Arranger,  the Administrative Agent, such Issuing Bank or such Lender, on the other hand, (ii) each of the Loan Parties  

 

109  has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate,  and (iii) each of the Loan Parties is capable of evaluating, and understands and accepts, the terms, risks and  conditions of the transactions contemplated by this Agreement and by the other Loan Documents; (b) (i)  each of any Arranger, the Administrative Agent, the Issuing Banks and the Lenders is and has been acting  solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not,  and will not be acting as an advisor, agent or fiduciary for any Loan Party or any of their respective  Affiliates, or any other Person and (ii) none of any Arranger, the Administrative Agent, the Issuing Banks  and the Lenders has any obligation to any Loan Party or any of their respective Affiliates with respect to  the transactions contemplated hereby except those obligations expressly set forth in this Agreement and in  the other Loan Documents; and (c) each of any Arranger, the Administrative Agent, the Issuing Bank and  the Lenders and their respective branches and Affiliates may be engaged in a broad range of transactions  that involve interests that differ from those of the Loan Parties and their respective Affiliates, and none of  any Arranger, the Administrative Agent, the Issuing Banks and the Lenders has any obligation to disclose  any of such interests to any Loan Party or any of their respective Affiliates.  To the fullest extent permitted  by Law, each of the Loan Parties hereby waives and releases any claims that it may have against any  Arranger, the Administrative Agent, the Issuing Banks 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.  Severability.  If any provision of this Agreement or the other Loan Documents is held to  be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions  of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the  parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions  with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid  or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or  render unenforceable such provision in any other jurisdiction.  USA PATRIOT Act.  Each Lender hereby notifies each Loan Party that pursuant to the  requirements of the 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 to identify each Loan Party in accordance with the PATRIOT Act.  Inconsistencies with Other Documents.  In the event there is a conflict or inconsistency  between this Agreement and any other Loan Document, the terms of this Agreement shall control; provided,  that any provision of the Security Documents which imposes additional burdens on any Loan Party or any  Subsidiary thereof or further restricts the rights of any Loan Party or any Subsidiary thereof or gives the  Administrative Agent or any other Secured Party additional rights shall not be deemed to be in conflict or  inconsistent with this Agreement and shall be given full force and effect.  Acknowledgement and Consent to Bail-In of Affected Financial Institutions.   Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement  or understanding among any such parties, each party hereto acknowledges that any liability of any Affected  Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be  subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and  consents to, and acknowledges and agrees to be bound by:  (a) the application of any Write-Down and Conversion Powers by the applicable Resolution  Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an  Affected Financial Institution; and  (b) the effects of any Bail-In Action on any such liability, including, if applicable:  

 

110  (i) a reduction in full or in part or cancellation of any such liability;  (ii) a conversion of all, or a portion of, such liability into shares or other instruments  of ownership in such Affected Financial Institution, its parent 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 the applicable Resolution Authority.  Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan  Documents provide support, through a guarantee or otherwise, for Hedge Agreements or any other  agreement or instrument that is a QFC (such support, “QFC Credit Support” and each such QFC a  “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of  the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the  Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated  thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit  Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported  QFC may in fact be stated to be governed by the laws of the State of New York or of the United States or  any other state of the United States):  (a) in the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”)  becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported  QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported  QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC  Credit Support) from such Covered Party will be effective to the same extent as the transfer would be  effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support  (and any such interest, obligation and rights in property) were governed by the laws of the United States or  a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes  subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents  that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against  such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be  exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were  governed by the laws of the United States or a state of the United States.   (b) As used in this Section 9.19, (i) “BHC Act Affiliate” of a party means an “affiliate” (as  such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party, (ii)  “Covered Entity” means any of the following: (A) a “covered entity” as that term is defined in, and  interpreted in accordance with, 12 C.F.R. § 252.82(b), (B) a “covered bank” as that term is defined in, and  interpreted in accordance with, 12 C.F.R. § 47.3(b) or (C) a “covered FSI” as that term is defined in, and  interpreted in accordance with, 12 C.F.R. § 382.2(b), (iii) “Default Right” has the meaning assigned to that  term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable, and  (iv) “QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted  in accordance with, 12 U.S.C. 5390(c)(8)(D).  Canadian Anti-Money Laundering Legislation. Each Loan Party acknowledges that,  pursuant to the Canadian Anti-Money Laundering & Anti-Terrorism Legislation and other applicable anti- money laundering, anti-terrorist financing, government sanction and “know your client” laws (collectively,  including any guidelines or orders thereunder, “AML Legislation”), the Lenders may be required to obtain,  verify and record information regarding the Loan Parties and their respective directors, authorized signing  

 

111  officers, direct or indirect shareholders or other Persons in control of the Loan Parties, and the transactions  contemplated hereby. Each Loan Party shall promptly provide all such information, including supporting  documentation and other evidence, as may be reasonably requested by any Lender or any prospective  assignee or participant of the Lender, in order to comply with any applicable AML Legislation, whether  now or hereafter in existence. If the Administrative Agent has ascertained the identity of any Loan Party or  any authorized signatories of any Loan Party for the purposes of applicable AML Legislation, then the  Administrative Agent, (a) shall be deemed to have done so as an agent for each Secured Party, and this  Agreement shall constitute a "written agreement" in such regard between each Secured Party and the  Administrative Agent within the meaning of the applicable AML Legislation; and (b) shall provide to each  Secured Party copies of all information obtained in such regard without any representation or warranty as  to its accuracy or completeness.  [SIGNATURE PAGES FOLLOW] 

 

 

 

 

 

SCHEDULE A  COMMITMENT SCHEDULE  Lender Revolving  Commitment Applicable   Percentage  –  Revolving  Facility  Term Loan  Commitment Applicable  Percentage  –   Term Loan  Facility  CapEx Loan  Commitment Applicable  Percentage  –   CapEx  Facility  The  Huntington  National  Bank  $25,000,000 100% $25,000,000 100% $25,000,000 100%  Total $25,000,000 100% $25,000,000 100% $25,000,000 100%  

 

SCHEDULE B  DOMESTIC AND FOREIGN GUARANTORS OF PAYMENT  Domestic Guarantors of Payment:  Core Composites Corporation, a Delaware corporation  Foreign Guarantors of Payment: Horizon Plastics International Inc., a British Columbia company 

 

SCHEDULE C  DOMESTIC REAL PROPERTY  Core Molding Technologies, Inc.:  800 Manor Park Drive  Columbus, Ohio 43228  24 Commerce Drive  Meadow Creek Industrial Park  Gaffney, South Carolina 29340  1700 Wilkie Drive  Winona, Minnesota 55987  Core Composites Corporation:  None.  

 

SCHEDULE 2.10(c)  AMORTIZATION  Beg. Date End Date Month Principal  Period End  Principal Payment  7/22/2022 8/10/2022 1 25,000,000.00 104,166.67  8/10/2022 9/10/2022 2 24,895,833.33 104,166.67  9/10/2022 10/10/2022 3 24,791,666.66 104,166.67  10/10/2022 11/10/2022 4 24,687,499.99 104,166.67  11/10/2022 12/10/2022 5 24,583,333.32 104,166.67  12/10/2022 1/10/2023 6 24,479,166.65 104,166.67  1/10/2023 2/10/2023 7 24,374,999.98 104,166.67  2/10/2023 3/10/2023 8 24,270,833.31 104,166.67  3/10/2023 4/10/2023 9 24,166,666.64 104,166.67  4/10/2023 5/10/2023 10 24,062,499.97 104,166.67  5/10/2023 6/10/2023 11 23,958,333.30 104,166.67  6/10/2023 7/10/2023 12 23,854,166.63 104,166.67  7/10/2023 8/10/2023 13 23,749,999.96 104,166.67  8/10/2023 9/10/2023 14 23,645,833.29 104,166.67  9/10/2023 10/10/2023 15 23,541,666.62 104,166.67  10/10/2023 11/10/2023 16 23,437,499.95 104,166.67  11/10/2023 12/10/2023 17 23,333,333.28 104,166.67  12/10/2023 1/10/2024 18 23,229,166.61 104,166.67  1/10/2024 2/10/2024 19 23,124,999.94 104,166.67  2/10/2024 3/10/2024 20 23,020,833.27 104,166.67  3/10/2024 4/10/2024 21 22,916,666.60 104,166.67  

 

4/10/2024 5/10/2024 22 22,812,499.93 104,166.67  5/10/2024 6/10/2024 23 22,708,333.26 104,166.67  6/10/2024 7/10/2024 24 22,604,166.59 104,166.67  7/10/2024 8/10/2024 25 22,499,999.92 156,250.00  8/10/2024 9/10/2024 26 22,343,749.92 156,250.00  9/10/2024 10/10/2024 27 22,187,499.92 156,250.00  10/10/2024 11/10/2024 28 22,031,249.92 156,250.00  11/10/2024 12/10/2024 29 21,874,999.92 156,250.00  12/10/2024 1/10/2025 30 21,718,749.92 156,250.00  1/10/2025 2/10/2025 31 21,562,499.92 156,250.00  2/10/2025 3/10/2025 32 21,406,249.92 156,250.00  3/10/2025 4/10/2025 33 21,249,999.92 156,250.00  4/10/2025 5/10/2025 34 21,093,749.92 156,250.00  5/10/2025 6/10/2025 35 20,937,499.92 156,250.00  6/10/2025 7/10/2025 36 20,781,249.92 156,250.00  7/10/2025 8/10/2025 37 20,624,999.92 156,250.00  8/10/2025 9/10/2025 38 20,468,749.92 156,250.00  9/10/2025 10/10/2025 39 20,312,499.92 156,250.00  10/10/2025 11/10/2025 40 20,156,249.92 156,250.00  11/10/2025 12/10/2025 41 19,999,999.92 156,250.00  12/10/2025 1/10/2026 42 19,843,749.92 156,250.00  1/10/2026 2/10/2026 43 19,687,499.92 156,250.00  2/10/2026 3/10/2026 44 19,531,249.92 156,250.00  3/10/2026 4/10/2026 45 19,374,999.92 156,250.00  4/10/2026 5/10/2026 46 19,218,749.92 156,250.00  

 

5/10/2026 6/10/2026 47 19,062,499.92 156,250.00  6/10/2026 7/10/2026 48 18,906,249.92 156,250.00  7/10/2026 8/10/2026 49 18,749,999.92 208,333.33  8/10/2026 9/10/2026 50 18,541,666.59 208,333.33  9/10/2026 10/10/2026 51 18,333,333.26 208,333.33  10/10/2026 11/10/2026 52 18,124,999.93 208,333.33  11/10/2026 12/10/2026 53 17,916,666.60 208,333.33  12/10/2026 1/10/2027 54 17,708,333.27 208,333.33  1/10/2027 2/10/2027 55 17,499,999.94 208,333.33  2/10/2027 3/10/2027 56 17,291,666.61 208,333.33  3/10/2027 4/10/2027 57 17,083,333.28 208,333.33  4/10/2027 5/10/2027 58 16,874,999.95 208,333.33  5/10/2027 6/10/2027 59 16,666,666.62 208,333.33  6/10/2027 7/10/2027 60 16,458,333.29 208,333.33  7/10/2027 7/22/2027 61 16,249,999.96 16,249,999.96  

 

SCHEDULE 5.8  EXISTING INDEBTEDNESS  1. Unsecured Indebtedness up to $345,000.00 incurred under the credit card financing arrangement  with Elan Financial Services.  2. That certain Finance Agreement, dated as of April 24, 2020 and as may be amended from time to  time to the extent permitted under the Credit Agreement, by and between Borrower and LEAF  Capital Funding, LLC.  3. Indebtedness under that certain Irrevocable Standby Letter of Credit No. IS000148682U originally  dated October 27, 2020 and currently expiring June 30, 2023 and issued by Wells Fargo Bank,  National Association in favor of Liberty Mutual Insurance Company as beneficiary, in the face  amount of $160,000.  4. Intercompany indebtedness consisting of:   a. Payables from Core Composites Corporation to Core Composites de Mexico in the  approximate amount of $2,777,000.  b. Payables from CC HPM, S. de R.L. de C.V.  to the Borrower  in the approximate amount  of $449,000.  c. Payables from CC HPM, S. de R.L. de C.V.  to Core Composites Corporation in the  approximate amount of $2,500,000 .  d. Payable from CC HPM, S. de R.L. de C.V.  to Horizon Plastics International Inc. in the  approximate amount of $450,000.  

 

SC H E D U L E  5 .9   EX IS TI N G  L IE N S  D eb to r  Se cu re d  Pa rt y  Fi lin g  O ff ic e  Fi le  N um be r  Fi le  D at e  C ol la te ra l  C or e  M ol di ng   Te ch no lo gi es , I nc .  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 25 11 86 9  In iti al : 0 4/ 13 /2 01 8  Sp ec ifi c  eq ui pm en t  C or e  M ol di ng   Te ch no lo gi es , I nc .  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 35 08 73 2  In iti al :   0 5/ 23 /2 01 8 Sp ec ifi c  eq ui pm en t  C or e  M ol di ng   Te ch no lo gi es , I nc .  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 37 28 69 4  In iti al :   0 6/ 01 /2 01 8 Sp ec ifi c  eq ui pm en t  C or e  M ol di ng   Te ch no lo gi es , I nc .  A ltr on  A ut om at io n,  In c.   H ud so nv ill e,  M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 38 60 02 6  In iti al :   0 6/ 07 /2 01 8 Sp ec ifi c  eq ui pm en t  C or e  M ol di ng   Te ch no lo gi es , I nc .  A ltr on  A ut om at io n,  In c.   H ud so nv ill e,  M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 38 60 06 7  In iti al :   0 6/ 07 /2 01 8 Sp ec ifi c  eq ui pm en t  C or e  M ol di ng   Te ch no lo gi es , I nc .  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 54 95 92 0  In iti al :   0 8/ 09 /2 01 8 Sp ec ifi c  eq ui pm en t  C or e  M ol di ng   Te ch no lo gi es , I nc .  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I D el aw ar e  Se cr et ar y  of  S ta te   20 18 56 81 41 2 In iti al : 0 8/ 17 /2 01 8 Sp ec ifi c  eq ui pm en t  C or e  M ol di ng   Te ch no lo gi es , I nc .  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 56 97 20 2  In iti al :   0 8/ 17 /2 01 8 Sp ec ifi c  eq ui pm en t  C or e  M ol di ng   Te ch no lo gi es , I nc .  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 19 10 58 67 1  In iti al :   0 2/ 14 /2 01 9 Sp ec ifi c  eq ui pm en t  

 

C or e  M ol di ng   Te ch no lo gi es , I nc .  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 19 76 41 00 9  In iti al :   1 0/ 31 /2 01 9 Sp ec ifi c  eq ui pm en t  C or e  M ol di ng   Te ch no lo gi es , I nc .  Le af  C ap ita l F un di ng , L LC   Ph ila de lp hi a,  P A   D el aw ar e  Se cr et ar y  of  S ta te   20 20 29 80 78 9  In iti al :   0 4/ 27 /2 02 0 Sp ec ifi c  eq ui pm en t  C or e  M ol di ng   Te ch no lo gi es , I nc .  FG I E qu ip m en t F in an ce  L LC B oc a  R at on , F L  D el aw ar e  Se cr et ar y  of  S ta te   20 20 75 42 13 9  In iti al :   1 0/ 29 /2 02 0 Sp ec ifi c  eq ui pm en t  C or e  M ol di ng   Te ch no lo gi es , I nc .  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 21 14 17 44 4  In iti al :   0 2/ 22 /2 02 1 Sp ec ifi c  eq ui pm en t  C or e  M ol di ng   Te ch no lo gi es , I nc .  A ltr on  A ut om at io n,  In c.   H ud so nv ill e,  M I  D el aw ar e  Se cr et ar y  of  S ta te   20 21 25 12 50 8  In iti al : 0 3/ 21 /2 02 1    Sp ec ifi c  eq ui pm en t  C or e  M ol di ng   Te ch no lo gi es , I nc .  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 22 37 14 57 3  In iti al :   0 5/ 03 /2 02 2 Sp ec ifi c  eq ui pm en t  H or iz on  P la st ic s  In te rn at io na l I nc .  C iti ba nk  N .A .  N ew  Y or k,  N Y   R ec or de r o f D ee ds  o f  W as hi ng to n  D .C .  20 16 02 62 94   In iti al : 0 3/ 17 /2 01 6  C on t.:  1 2/ 08 /2 02 0  A ll  rig ht , t itl e  an d  in te re st  o f t he   D eb to r i n  an d  to  a ll  ac co un ts  a nd  a ll  ot he r f or m s o f  ob lig at io ns  o w ni ng   to  th e  D eb to r b y  X yl em  In c.  a nd  it s  su bs id ia rie s a nd   af fil ia te s *   C or e  C om po si te s  C or po ra tio n  Pa ra go n  D ie  &  E ng in ee rin g  C om pa ny   G ra nd  R ap id s,  M I  D el aw ar e  Se cr et ar y  of  S ta te   20 17 69 48 26 6  In iti al : 1 0/ 18 /2 01 7    Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 17 79 45 06 8  In iti al :   1 2/ 01 /2 01 7 Sp ec ifi c  eq ui pm en t  

 

C or e  C om po si te s  C or po ra tio n  Pa ra go n  D ie  &  E ng in ee rin g  C om pa ny   G ra nd  R ap id s,  M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 25 98 43 7  In iti al : 0 4/ 17 /2 01 8  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C or po ra tio n  Pa ra go n  D ie  &  E ng in ee rin g  C om pa ny   G ra nd  R ap id s,  M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 25 99 63 3  In iti al : 0 4/ 17 /2 01 8  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C or po ra tio n  Pa ra go n  D ie  &  E ng in ee rin g  C om pa ny   G ra nd  R ap id s,  M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 26 00 09 2  In iti al : 0 4/ 17 /2 01 8  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C or po ra tio n  Pa ra go n  D ie  &  E ng in ee rin g  C om pa ny   G ra nd  R ap id s,  M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 26 55 44 3  In iti al : 0 4/ 19 /2 01 8  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 35 08 73 2  In iti al : 0 5/ 23 /2 01 8  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I D el aw ar e  Se cr et ar y  of  S ta te   20 18 37 28 69 4  In iti al : 0 6/ 01 /2 01 8  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 56 81 41 2  In iti al : 0 8/ 17 /2 01 8  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 56 97 20 2  In iti al : 0 8/ 17 /2 01 8  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 19 10 58 67 1  In iti al : 0 2/ 14 /2 01 9  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 19 76 41 00 9  In iti al : 1 0/ 31 /2 01 9  Sp ec ifi c  eq ui pm en t  

 

C or e  C om po si te s  C or po ra tio n  FG I E qu ip m en t F in an ce  L LC B oc a  R at on , F L  D el aw ar e  Se cr et ar y  of  S ta te   20 20 75 42 13 9  In iti al : 1 0/ 29 /2 02 0  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 21 14 17 44 4  In iti al : 0 2/ 22 /2 02 1  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 22 37 14 57 3  In iti al : 0 5/ 03 /2 02 2  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C in ci nn at i,  LL C  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 17 79 45 06 8  In iti al : 1 2/ 01 /2 01 7  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C in ci nn at i,  LL C  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 37 28 69 4  In iti al : 0 6/ 01 /2 01 8  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C in ci nn at i,  LL C  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 56 81 41 2  In iti al : 0 8/ 17 /2 01 8  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C in ci nn at i,  LL C  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 18 56 97 20 2  In iti al : 0 8/ 17 /2 01 8  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C in ci nn at i,  LL C  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 19 10 58 67 1  In iti al : 0 2/ 14 /2 01 9  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C in ci nn at i,  LL C  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 19 76 41 00 9  In iti al : 1 0/ 31 /2 01 9  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C in ci nn at i,  LL C  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  D el aw ar e  Se cr et ar y  of  S ta te   20 21 14 17 44 4  In iti al : 0 2/ 22 /2 02 1  Sp ec ifi c  eq ui pm en t  

 

H or iz on  P la st ic s  In te rn at io na l I nc .  D ec ko ra to rs , I nc .  O nt ar io  P er so na l  Pr op er ty  S ec ur ity   R eg is tra tio n  Sy st em   78 20 43 26 4  In iti al : 0 4/ 14 /2 02 2  Sp ec ifi c  eq ui pm en t  (o f t he  S ec ur ed   Pa rty )  C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  Te xa s S ec re ta ry  o f  St at e  16 -0 03 34 20 00 9  In iti al : 1 0/ 16 /2 01 6  Sp ec ifi c  eq ui pm en t  C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  Te xa s S ec re ta ry  o f  St at e  17 -0 02 21 21 57 1  In iti al : 0 6/ 28 /2 01 7  Sp ec ifi c  eq ui pm en t C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  Te xa s S ec re ta ry  o f  St at e  17 -0 02 60 06 93 1  In iti al : 0 7/ 31 /2 01 7  Sp ec ifi c  eq ui pm en t C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  Te xa s S ec re ta ry  o f  St at e  17 -0 04 03 65 59 1  In iti al : 1 2/ 01 /2 01 7  Sp ec ifi c  eq ui pm en t C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  Te xa s S ec re ta ry  o f  St at e  18 -0 01 81 47 74 7  In iti al : 0 5/ 23 /2 01 8  Sp ec ifi c  eq ui pm en t C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  Te xa s S ec re ta ry  o f  St at e  18 -0 01 91 83 56 6  In iti al : 0 6/ 01 /2 01 8  Sp ec ifi c  eq ui pm en t C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  Te xa s S ec re ta ry  o f  St at e  18 -0 02 90 65 42 5  In iti al : 0 8/ 17 /2 01 8  Sp ec ifi c  eq ui pm en t C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  Te xa s S ec re ta ry  o f  St at e  19 -0 00 54 77 66 9  In iti al : 0 2/ 14 /2 01 9  Sp ec ifi c  eq ui pm en t C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  Te xa s S ec re ta ry  o f  St at e  21 -0 00 69 05 48 7  In iti al : 0 2/ 22 /2 02 1  Sp ec ifi c  eq ui pm en t 

 

C or e  C om po si te s  C or po ra tio n  C .G . A ut om at io n  &  F ix tu re ,  In c.   C om st oc k  Pa rk , M I  Te xa s S ec re ta ry  o f  St at e  22 -0 02 21 85 78 9  In iti al : 0 5/ 03 /2 02 2  Sp ec ifi c  eq ui pm en t *  Th e  D eb to r i s i n  th e  pr oc es s o f g et tin g  th is  li en  te rm in at ed .  

 

SCHEDULE 5.11  EXISTING INVESTMENTS  Investor Issuer Equity Investment (In USD)  Core Molding Technologies, Inc. Horizon Plastics International Inc.  $26,500,000  Investor Issuer Equity Investment (In USD)   Core Composites Corporation CC HPM , S. de R.L. de C.V. $1,995,000  Core Molding Technologies, Inc. CC HPM , S. de R.L. de C.V. $105,000  Total  $2,100,000  Investor Issuer Equity Investment (In USD)  Core Composites Corporation Corecomposites de México, S. de  R.L. de C.V.  $6,445,103  Core Molding Technologies, Inc. Corecomposites de México, S. de  R.L. de C.V.  $339,216  Total  $6,784,319  The intercompany indebtedness disclosed in item 4 of Schedule 5.8 is hereby incorporated by reference.   The Subsidiaries disclosed in Schedule 6.11 are hereby incorporated by reference.  

 

SC H E D U L E  6 .1   SU B SI D IA R IE S  C om pa ny   Ju ris di ct io n  of   O rg an iz at io n  Fo re ig n  Q ua lif ic at io ns   Ta x  ID  N um be r  C or e  M ol di ng  T ec hn ol og ie s,  In c.   D el aw ar e  So ut h  C ar ol in a  O hi o  M in ne so ta   31 -1 48 18 70   C or e  C om po si te s C or po ra tio n  D el aw ar e  Te xa s  31 -1 80 44 89   C or e  C om po si te s C in ci nn at i,  LL C  D el aw ar e  O hi o  20 -3 17 90 96   C or e  A ut om ot iv e  Te ch no lo gi es  L LC   D el aw ar e  N on e    N /A   C or ec om po si te s  de  M éx ic o,  S . d e  R .L . d e  C .V .  Ta m au lip as , M ex ic o  N on e    C M E0 11 01 5M 33   H or iz on  P la st ic s I nt er na tio na l I nc .  B rit is h  C ol um bi a,   C an ad a  O nt ar io , C an ad a  78 86 7  75 16   C C  H PM , S . d e  R .L . d e  C .V .  Ta m au lip as , M ex ic o  N on e  C H P1 71 11 4Q Y 9  Su bs id ia ry  o f B or ro w er   D or m an t  Su bs id ia ry   C hi ef   Ex ec ut iv e  O ff ic e  an d  Pr in ci pa l P la ce  o f B us in es s   Eq ui ty  O w ne r  Pe rc en ta ge  o f O w ne rs hi p  C or e  C om po si te s C or po ra tio n  N o  80 0  M an or  P ar k  D riv e  C ol um bu s,  O hi o  43 22 8  C or e  M ol di ng   Te ch no lo gi es , I nc .  10 0%   C or e  C om po si te s  C in ci nn at i,  LL C   Y es   80 0  M an or  P ar k  D riv e  C ol um bu s,  O hi o  43 22 8  C or e  M ol di ng   Te ch no lo gi es , I nc .  10 0%   C or e  A ut om ot iv e  Te ch no lo gi es  L LC   Y es   80 0  M an or  P ar k  D riv e  C ol um bu s,  O hi o  43 22 8  C or e  M ol di ng   Te ch no lo gi es , I nc .  10 0%   

 

Su bs id ia ry  o f B or ro w er   D or m an t  Su bs id ia ry   C hi ef   Ex ec ut iv e  O ff ic e  an d  Pr in ci pa l P la ce  o f B us in es s   Eq ui ty  O w ne r  Pe rc en ta ge  o f O w ne rs hi p  C or ec om po si te s  de   M éx ic o,   S.  d e  R .L . d e  C .V .  N o  G ui lle rm o  G on zá le z  C am ar en a  N o.   90 03 , P ar qu e I nd us tri al  L a V en ta na ,  M at am or os ,  Ta m au lip as ,  C .P .  87 56 9,  M ex ic o  C or e  M ol di ng   Te ch no lo gi es , I nc .  5%   C or e  C om po si te s  C or po ra tio n  95 %   H or iz on  P la st ic s  In te rn at io na l  In c.   N o  B ui ld in g  3,    N or th am  In du st ria l P ar k,   74 0  D iv is io n  St re et   C ob ou rg , O nt ar io ,  K 9A  4 L1  C an ad a  C or e  M ol di ng   Te ch no lo gi es , I nc .  10 0%   C C  H PM , S . d e  R .L . d e  C .V .  N o.   A ve ni da  In te rn ac io na l # 22 0,  P ar qu e  In du st ria l  V Y N M SA   Es co be do ,  C .P .  66 05 3,   Es co be do ,  N ue vo   Le ón , M éx ic o  C or e  M ol di ng   Te ch no lo gi es , I nc .  5%   C or e  C om po si te s  C or po ra tio n  95 %   

 

SCHEDULE 6.4  LITIGATION  None.  

 

SCHEDULE 6.5  REAL PROPERTY  US Real Property:  Core Molding Technologies, Inc.:  800 Manor Park Drive  Columbus, Ohio 43228  24 Commerce Drive  Meadow Creek Industrial Park  Gaffney, South Carolina 29340  1700 Wilkie Drive  Winona, Minnesota 55987 Mexican Property:  Corecomposites de México, S. de R.L. de C.V.:  Guillermo González Camarena No. 9003, Parque Industrial La Ventana,   Matamoros, Tamaulipas, C.P. 87569, Mexico  Canadian Real Property:  None.  

 

SCHEDULE 6.9  CHIEF EXECUTIVE OFFICE AND LOCATION OF COLLATERAL  Chief Executive Offices:  Loan Party Location of Chief Executive Office  Core Molding Technologies,  Inc.  800 Manor Park Drive  Columbus, Ohio 43228  Core Composites Corporation 800 Manor Park Drive  Columbus, Ohio 43228  Horizon Plastics International  Inc.  Building 3,   Northam Industrial Park,  740 Division Street  Cobourg, Ontario K9A 4L1 Canada  Owned and Leased Locations:   Loan Party Location Owned/Leased Landlord’s  Waiver  Requested  Core Molding Technologies,  Inc.  800 Manor Park Drive  Columbus, Ohio 43228  Owned N/A  Core Molding Technologies,  Inc.  24 Commerce Drive  Meadow Creek Industrial Park  Gaffney, South Carolina  Owned N/A  Core Molding Technologies,  Inc.  1700 Wilkie Drive  Winona, Minnesota  55987  Owned N/A  Core Molding Technologies,  Inc.  2251 E. Front Street  Logan, OH 43138  Leased N/A  Core Composites  Corporation  1385 Cheers Blvd.  Brownsville, Texas 78521  Leased Yes  Horizon Plastics International  Inc.  Buildings 3, 4 Centre, 4 West  and 16, Building 3 Storage  Yard and Causeway, Northam  Industrial Park  740 Division Street  Cobourg, Ontario, K9A 4L1  Leased Yes  Horizon Plastics International  Inc.  9726 47th Avenue, S.W.,  Building #14, Lakewood, WA  98499  Leased N/A  Horizon Plastics International  Inc.  2655 Lakeshore Rd., Port  Hope, Ontario  Leased N/A  Other Locations:  

 

Loan Party Location1 Core Molding  Technologies, Inc.  Carolina Customs Finishing  2115 N. Fayetteville St.  Asheboro, NC 27203  Core Molding  Technologies, Inc.  Premier Fleet Services, LLC  869 Water Street  Shoemakersville, PA 19555  1 No inventory is stored at such location; products are sent to such locations for painting prior to shipment  to end customer. Collateral value less than $250,000 as of the Closing Date,  

 

SCHEDULE 6.11  ERISA PLANS AND FOREIGN PENSION PLANS  International Association of Machinist and Aerospace Workers (“IAM”) – Multi employer defined  benefit pension plan.  Post-Retirement Health and Life Insurance benefit plan.  

 

SCHEDULE 6.16  MATERIAL AGREEMENTS  1. Paccar Supply Agreement  2. BRP Supply Agreement  3. BRP Supply Agreement (2)  4. Polaris Supply Agreement  5. Volvo Supply Agreement  6. UFP Supply Agreement  7. Yamaha Supply Agreement  8. Owens Corning Glass  9. Johns Manville Glass  10. Equistar Chemical LP Resin  11. Dow Chemical Canada ULC Resin  

 

SCHEDULE 6.17  INTELLECTUAL PROPERTY  U.S. Patents  Owner Name Number Issue Date Horizon Plastics International Inc.* Truck Storage Box D659,074 May 8, 2012 Horizon Plastics International Inc.* Truck Box Assembly 8,567,650 Oct. 29, 2013 Horizon Plastics International Inc.* Bracket D702,620 Apr. 15, 2014 Horizon Plastics International Inc.* Solar Panel Supports D718,228 Nov. 25, 2014 * Acquired from 1541689 Ontario Inc. but the registered owner remains 1541689 Ontario Inc. U.S.  Trademarks  Owner Mark Reg. No. Reg. Date  Horizon Plastics International Inc. SOILSAVER 1228935 Mar. 1, 1983  Horizon Plastics International Inc.  1827486 Mar. 22, 1994  Horizon Plastics International Inc.  1840565 Jun. 21, 1994  Core Molding Technologies, Inc. HYDRILITE 5199652 May 9, 2017  Core Molding Technologies, Inc. MIRILITE 5219457 Jun. 6, 2017  Core Molding Technologies, Inc. ECONOLITE 4644958 Nov. 25, 2014  Core Molding Technologies, Inc. AIRILITE 4462202 Jan. 7, 2014  Core Molding Technologies, Inc. FEATHERLITE 4390747 Aug. 27, 2013  Core Molding Technologies, Inc. 2732943 July 1, 2003 Core Molding Technologies, Inc. ADVANTAGE 2853045 June 15, 2004 

 

Canadian  Trademarks  Owner Trademark Application Number Registration Number Registration Date  Horizon Plastics  International Inc.  SOILSAVER 0433739 TMA245249 1980-05-23  Horizon Plastics  International Inc.  COMPOST BIN  DESIGN  0646977 TMA378202 1991-01-11  Horizon Plastics  International Inc.  COMPOST BIN  DESIGN  0646980 TMA378203 1991-01-11  Horizon Plastics  International Inc.  EARTHSAVER 0678849 TMA398340 1992-05-15  Horizon Plastics  International Inc.  GARDEN CATCHER 0683248 TMA405308 1992-11-20  Horizon Plastics  International Inc.  HUMUS BUILDER 0683245 TMA405590 1992-11-27  Horizon Plastics  International Inc.  BOX DESIGN 0675582 TMA406925 1993-01-15  Horizon Plastics  International Inc.  RECYCLING  BEGINS AT HOME 0678850 TMA397399 1992-04-17  

 

SC H E D U L E  6 .1 8  IN SU R A N C E  Po lic y  N um be r  D es cr ip tio n  In s  E ff . D at e  E xp . D at e  N am ed  In su re d  A S5 Z8 10 25 24 70 32   A ut om ob ile   Li be rty  M ut ua l  7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   68 02 80 57   $2 M M  K id na p  an d  R an so m   Fe de ra l I ns ur an ce  C o.   7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   TH 7Z 81 02 52 47 09 2  C om m er ci al   U m br el la   -  $1 5M   Li be rty  M ut ua l  7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   H N 03 03 65 68 07 01 22   $1 0M M  S id e  A  E xc es s  21 V  A m W in s G ro up   7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   PL M C B SI 5E ZC 8L P  $1 M M  P riv ac y  an d  N et w or k,   EP LI   O bs id ia n  Sp ec ia lty   7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   79 30 12 00 60 00 0  Po llu tio n  En vi ro nm en ta l  H om el an d  In s o f N Y   7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   10 74 65 19 6  Pr im ar y  D & O   Tr av el er s  C as ua lty   an d  Su re ty   7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   EX 2S 19 70 25 22 N F  Ex ce ss  L ia bi lit y  10 x2 5  Tr av el er s  7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   81 79 53 57   $2 M M  C rim e  Po lic y  Fe de ra l I ns ur an ce  C o.   7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   18 19 16 13   M ex ic o- Fo re ig n  Li ab ili ty   A PW A C E  Se gu ro s,  S. A .  (M ex ic o)   7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   PH FD 37 96 51 57 00 7  Fo re ig n  Pa ck ag e  C H U B B   7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   70 15 30 36 97   Ex ce ss   Li ab ili ty   $1 0M x$ 15 M   C N A -C on tin en ta l C as ua lty   7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   10 51 54 64   C an ad a  Fo re ig n  Li ab ili ty   C hu bb  In s.  C o  of  C an ad a  7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   TB 5Z 81 02 52 47 02 2  G en er al  L ia bi lit y  Li be rty  M ut ua l  7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   68 00 58 27   $1 M M  F id uc ia ry  L ia bi lit y  Fe de ra l I ns ur an ce  C o.   7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   W A 6Z 8D 02 52 47 08 2  W or ke rs  C om pe ns at io n  Li be rty  M ut ua l  7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   10 67 63 83 5  $3 M M  E PL   Tr av el er s  C as ua lty   an d  Su re ty   7/ 1/ 20 22 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   SA F3 00 00 89 19 2  Fl oo d  (M N )  H om es ite   In su ra nc e  C om pa ny   3/ 20 /2 02 2 3/ 20 /2 02 3 C or e  M ol di ng  T ec hn ol og ie s,  In c.   60 67   Ex ce ss  F lo od  -  M N   Ll oy ds  o f L on do n  10 /2 0/ 20 21 10 /2 0/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   U P2 10 45 16   Pr op  L lo yd s S yn d  - A ll  O th er C er ta in   U nd er w rit er s  at   Ll oy ds   9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   

 

U P2 10 44 88   Pr op  L lo yd  S yn d  - C an ad a  C er ta in   U nd er w rit er s  at   Ll oy ds   9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   U P2 10 44 88   Pr op  L lo yd s S yn d  - M ex ic o  C er ta in   U nd er w rit er s  at   Ll oy ds   9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   U P2 10 44 88   Pr op  L lo yd s S yn d  - A ll  O th er C er ta in   U nd er w rit er s  at   Ll oy ds   9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   U P2 10 42 83   Pr op  L lo yd s S yn d  - C an ad a  C er ta in   U nd er w rit er s  at   Ll oy ds   9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   U P2 10 42 83   Pr op  L lo yd s S yn d  - M ex ic o  C er ta in   U nd er w rit er s  at   Ll oy ds   9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   U P2 10 42 83   Pr op  L lo yd s S yn d  - A ll  O th er C er ta in   U nd er w rit er s  at   Ll oy ds   9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   PP R 77 98 09 10 3  Zu ric h  Pr op er ty  P ol ic y  Zu ric h  9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   01 64 53 98 6  A IG  P ro pe rty  P ol ic y  A IG   9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   20 15 88 47   L  - M ex ic o-  F or ei gn  P ro pe rty Zu ric h  9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   18 19 16 16   L  - C an ad a  Fo re ig n  Pr op er ty   Zu ric h  9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   U P2 10 45 56   Pr op er ty   -  Pa rtn er   R e  -  M ex ic o  Pa rtn er R e  A m er ic a  In su ra nc e  C o.   9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   U P2 10 45 56   Pr op er ty  P ar tn er  R e  - C an ad a Pa rtn er R e  A m er ic a  In su ra nc e  C o.   9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   U P2 10 45 56   Pr op er ty   Pa rtn er   R e  -  A ll  O th e  Pa rtn er R e  A m er ic a  In su ra nc e  C o.   9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   U P2 10 45 37   Pr op er ty  -  Ll oy ds  S yn di ca te s  C er ta in   U nd er w rit er s  at   Ll oy ds   9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   U P2 10 45 37   Pr op Ll oy ds   Sy nd ic at es   -  M ex ic o  C er ta in   U nd er w rit er s  at   Ll oy ds   9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   U P2 10 45 16   Pr op  L lo yd s S yn d  - C an ad a  C er ta in   U nd er w rit er s  at   Ll oy ds   9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   U P2 10 45 16   Pr op  L lo yd s S yn d  - M ex ic o  C er ta in   U nd er w rit er s  at   Ll oy ds   9/ 1/ 20 21 9/ 1/ 20 22 C or e  M ol di ng  T ec hn ol og ie s,  In c.   EW C 00 85 00   Ex ce ss  W or ke rs  C om p  M id w es t E m pl oy er s  7/ 1/ 20 21 7/ 1/ 20 23 C or e  M ol di ng  T ec hn ol og ie s,  In c.   

 

0  SCHEDULE 6.19  DEPOSIT AND SECURITIES ACCOUNT  OWNER BANK  ACCOUNT  NUMBERS DESCRIPTION  Core Molding Technologies, Inc. Wells Fargo 4744710898 CPI Disbursement  Core Molding Technologies, Inc. Wells Fargo 4943851352 CFG Collection  Core Molding Technologies, Inc. Wells Fargo 4943851360 CFG Disbursement  Core Molding Technologies, Inc. Wells Fargo 4943851410 Core Master  Core Molding Technologies, Inc. Wells Fargo 4943851378 CCC Collection  Core Molding Technologies, Inc. Wells Fargo 4943851386 CCC Disbursement  Core Molding Technologies, Inc. Wells Fargo 4943851402 CMT Collection  Core Molding Technologies, Inc. Wells Fargo 4943851428 CMT Disbursement  Core Molding Technologies, Inc. Wells Fargo 4838745487 CPI Collection  Core Molding Technologies, Inc. Wells Fargo 4943851436 Payroll Checking  Horizon Plastics International Inc. Wells Fargo 4943899328 HPI USD Collection  Horizon Plastics International Inc. Wells Fargo 4942364746 HPI USD  Disbursement  Horizon Plastics International Inc. TD 5514391 Tax Payments  Horizon Plastics International Inc. TD 5514405 HPI Disbursement &  Collection  Horizon Plastics International Inc. TD 5594875 Not Used (Setup as  collections for Wells  Fargo Transition)  Horizon Plastics International Inc. TD 7418869 HPI Disbursement &  Collection  Horizon Plastics International Inc. TD 7436697 Not Used (Setup as  collections for Wells  Fargo Transition)  

 

EXHIBIT A-1  [FORM OF] BORROWING NOTICE  Date: [___________________]  To:  The Huntington National Bank, as Administrative Agent  Ladies and Gentlemen:  Reference is made to that certain Credit Agreement, dated as of July 22, 2022 (as amended, restated,  supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used  herein but not otherwise defined herein shall have the meanings given to them in the Credit Agreement),  among CORE MOLDING TECHNOLOGIES, INC., a Delaware corporation, as the Borrower, the other  Loan Parties from time to time party thereto, the Lenders from time to time party thereto and The  Huntington National Bank, as Administrative Agent.  The Borrower hereby requests a Borrowing of [Revolving Loans][Term Loans][CapEx Loans]  1. On [_____________________] (a Business Day).1 2. In the amount of $[_____________________].   3. Type of Borrowing: [ABR Borrowing][SOFR Borrowing]  4. Deposit into Huntington Account Number: [_____________________]  The Borrower hereby represents and warrants (for itself and on behalf of the other Loan Parties) that (a)  this Borrowing Notice complies with Section 2.3(b) and the other provisions of the Credit Agreement and  (b) the conditions specified in [Section 4.1 and] Section 4.2 of the Credit Agreement will be satisfied on  and as of the date specified in Item 1 above. [The Borrower hereby represents and warrants that the  Borrowing of CapEx Loans requested herein shall be used solely to finance capital expenditures as  permitted under the Credit Agreement.]2 [Signature page to follow]  1 Each Borrowing Request must be received by the Administrative Agent no later than 1:00 p.m. on the Business  Day prior to the date of the requested Borrowing.  2 To be included only with respect to Borrowings of CapEx Loans.  

 

CORE MOLDING TECHNOLOGIES, INC.  as the Borrower  By:  __________________________  Name:________________________  Title:_________________________  

 

EXHIBIT A-2  [FORM OF] INTEREST ELECTION REQUEST  Date: [___________________]  To:  The Huntington National Bank, as Administrative Agent  Ladies and Gentlemen:  Reference is made to that certain Credit Agreement, dated as of July 22, 2022 (as amended, restated,  supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used  herein but not otherwise defined herein shall have the meanings given to them in the Credit Agreement),  among CORE MOLDING TECHNOLOGIES, INC., a Delaware corporation, as the Borrower, the other  Loan Parties from time to time party thereto, the Lenders from time to time party thereto and The  Huntington National Bank, as Administrative Agent.  The Borrower hereby gives you notice, irrevocably, pursuant to Section 2.7 of the Credit Agreement, that  the undersigned hereby requests to convert the Borrowing of Loans referred to below, and in that connection  sets forth below the information relating to such conversion (the “Proposed Conversion”) as required by  Section 2.7 of the Credit Agreement:  1. The Proposed Conversion relates to the Borrowing of [Revolving][Term][CapEx] Loans in the  principal amount of $____________ and currently maintained as a Borrowing of [ABR Loans]  [SOFR Loans] (the “Outstanding Borrowing”).  2. The Business Day of the Proposed Conversion is ______________, ______.  3. [The Outstanding Borrowing][A portion of the Outstanding Borrowing in the principal amount of  $__________] shall be converted into a Borrowing of [ABR Loans] [SOFR Loans].  The Borrower hereby represents and warrants that (a) this Interest Election Request complies with Section  2.7 and the other provisions of the Credit Agreement and (b) no Event of Default shall exist as of the date  specified in Item 2 above.  [Signature page to follow]  

 

CORE MOLDING TECHNOLOGIES, INC.  as the Borrower  By:   Name:   Title:   

 

EXHIBIT A-3  [FORM OF] SWINGLINE LOAN REQUEST  Date: [___________________]  To:  The Huntington National Bank, as Administrative Agent and Swingline Lender  Ladies and Gentlemen:  Reference is made to that certain Credit Agreement, dated as of July 22, 2022 (as amended, restated,  supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used  herein but not otherwise defined herein shall have the meanings given to them in the Credit Agreement),  among CORE MOLDING TECHNOLOGIES, INC., a Delaware corporation, as the Borrower, the other  Loan Parties from time to time party thereto, the Lenders from time to time party thereto and The  Huntington National Bank, as Administrative Agent.  The Borrower hereby requests a Swingline Loan:  1. On [_____________________] (a Business Day).3 2. In the amount of $[_____________________].  3. Deposit into Huntington Account Number: [_____________________]  The Borrower hereby represents and warrants (for itself and on behalf of the other Loan Parties) that (a) this  Swingline Loan Request complies with Section 2.5(b) and the other provisions of the Credit Agreement  and (b) the conditions specified in Section 4.2 of the Credit Agreement will be satisfied on and as of the  date specified in Item 1 above.  [Signature page to follow]  3 Each Swingline Loan Request must be received by the Administrative Agent no later than 1:00 p.m. on the  requested borrowing date.  

 

CORE MOLDING TECHNOLOGIES, INC.  as the Borrower  By:   Name:   Title:   

 

B-1  EXHIBIT B  [FORM OF] COMPLIANCE CERTIFICATE  [__________], 20[__]  Financial Statement Date: ___________________  To:  The Huntington National Bank, as Administrative Agent  Ladies and Gentlemen:  Reference is made to that certain Credit Agreement, dated as of July 22, 2022 (as amended, restated,  supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used  herein but not otherwise defined herein shall have the meanings given to them in the Credit Agreement),  among CORE MOLDING TECHNOLOGIES, INC., a Delaware corporation, as the Borrower, the other  Loan Parties from time to time party thereto, the Lenders from time to time party thereto, and The  Huntington National Bank, as Administrative Agent (in such capacity, the “Administrative Agent”).  The undersigned Financial Officer hereby certifies as of the date hereof that he/she is the  [________________________] of the Borrower, and that, as such, he/she is authorized to execute and  deliver this Certificate to the Administrative Agent on the behalf of the Borrower, and that:  [Use following paragraph 1 for fiscal year-end financial statements]  1. Attached hereto as Schedule 1 is the annual audit report of the Companies required by Section 5.3(b) of  the Credit Agreement for the fiscal year of the Borrower ended as of the above date, certified by an  unqualified opinion of an independent public accountant as fairly presenting in all material respects the  financial condition and results of operations of the Borrower and its consolidated Subsidiaries as the above  date in accordance with GAAP.  [Use following paragraph 1 for fiscal quarter-end financial statements]  1. Attached hereto as Schedule 1 are the unaudited financial statements required by Section 5.3(a) of the  Credit Agreement for the fiscal quarter of the Borrower ended as of the above date. Such financial  statements fairly present the financial condition, results of operations, shareholders’ interests and cash flows  of the Borrower and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit  adjustments and the absence of footnotes.  2. Attached hereto as Schedule 2 is a copy of management’s discussion and analysis with respect to the  financial statements listed in paragraph 1 above, as is required by Section 5.3(d) of the Credit Agreement.  3. Attached hereto as Schedule 3 is a reasonably detailed aging of the Companies’ Accounts, as is required  by Section 5.3(d) of the Credit Agreement.  4. Attached hereto as Schedule 4 is a reasonably detailed accounts payable aging, as is required by Section  5.3(d) of the Credit Agreement.  5. Attached hereto as Schedule 5 is a reasonably detailed inventory report, as is required by Section 5.3(d)  of the Credit Agreement.  6. A review of the activities of the Borrower during the relevant reporting period has been made under the  supervision of the undersigned with a view to determining whether during such fiscal period the Borrower  performed and observed all of its obligations under the Loan Documents, and  

 

B-2 [select one:]  [to the best knowledge of the undersigned during such fiscal period, the Borrower performed  and observed each covenant of the Loan Documents applicable to it and no Default or Event of  Default has occurred and is continuing.]  —or—  [the following covenants have not been performed or observed and the following is a list of  each such Default or Event of Default and its nature and status:]  7.  The calculations of the Leverage Ratio, Fixed Charge Coverage Ratio and Consolidated Capital  Expenditures set forth on Schedule 6 attached hereto are true and accurate in all material respects on and  as of the date of this Certificate.   8.  The proceeds of all CapEx Loans borrowed by the Borrower have been or will be used solely to finance  capital expenditures as permitted by the Credit Agreement.  9. Unless stated otherwise in a certificate of a Financial Officer, there has been no material change in  accounting policies or financial reporting practices by any of the Companies.  CORE MOLDING TECHNOLOGIES, INC.  as the Borrower  By:  __________________________  Name:________________________  Title:_________________________  

 

B-3 For the Quarter/Year ended ___________________(“Statement Date”)  SCHEDULE 1 to the Compliance Certificate  [FINANCIAL STATEMENTS - See attached]  

 

B-4 For the Quarter/Year ended ___________________(“Statement Date”)  SCHEDULE 2  to the Compliance Certificate  [COPY OF MANAGEMENT’S DISCUSSION AND ANALYSIS]  

 

B-5 For the Quarter/Year ended ___________________(“Statement Date”)  SCHEDULE 3  to the Compliance Certificate  [AGING OF ACCOUNTS]  

 

B-6  For the Quarter/Year ended ___________________(“Statement Date”)  SCHEDULE 4  to the Compliance Certificate  [ACCOUNTS PAYABLE AGING]  

 

B-7  For the Quarter/Year ended ___________________(“Statement Date”)  SCHEDULE 5  to the Compliance Certificate  [INVENTORY REPORT]  

 

B-8 For the Quarter/Year ended ___________________(“Statement Date”)  SCHEDULE 6  to the Compliance Certificate1 ($ in 000’s)  Calculation of Leverage Ratio  A Consolidated Funded Indebtedness $______________________ B Consolidated Net Earnings $______________________ C The sum of without duplication, the aggregate  amounts deducted in determining such  Consolidated Net Earnings in respect of:  C.1 Consolidated Interest Expense $______________________ C.2 Consolidated Income Tax Expense  $______________________ C.3 Consolidated Depreciation and Amortization  Charges  $______________________ C.4 Reasonable non-recurring non-cash losses not  incurred in the ordinary course of business with  appropriate adjustments, reasonably acceptable to  the Administrative Agent  $______________________ C.5 Non-cash compensation expenses recognized  under Statement of Financial Accounting  Standards 123R in connection with the  Borrower’s equity incentive stock option plan  and restricted stock grants  $______________________ C.6 non-cash post-retirement expenses minus  retirement benefits paid in cash  $______________________ C.7 C.1+C.2+C.3+C.4+C.5+C.6 $______________________ D To the extent included in Consolidated Net  Earnings for such period, non-recurring gains not  incurred in the ordinary course of business  $______________________ E Consolidated EBITDA (C.7 minus D) $______________________ Leverage Ratio The ratio of A to E ____________  Requirement: Less than or  equal to 3.00 to 1/.00  Calculation of Fixed Charge Coverage Ratio  A Consolidated EBITDA (as determined in line E  of the calculation of Leverage Ratio above)   $______________________ B The sum of:  1 All calculations should be determined on a consolidated basis for the Borrower and its Subsidiaries for the  reporting period.  

 

B-9 B.1 Consolidated Unfunded Capital Expenditures2 $______________________ B.2 Capital Distributions and other Restricted  Payments actually made  $______________________ B.3 net Consolidated Income Tax Expense paid in  cash  $______________________ B.4 B.1+B.2+B.3 $______________________ C Total (A minus B.4) $______________________ D The aggregate, without duplication, of:   D.1 Consolidated Interest Expense paid in cash $______________________ D.2 Scheduled principal payments on Consolidated  Funded Indebtedness (other than optional  prepayments of the Revolving Loans and the  CapEx Loans), including payments on  Capitalized Lease Obligations  $______________________ D.3 Consolidated Fixed Charges (D.1+D.2) $______________________ Fixed Charge  Coverage Ratio  The ratio of C to D.3 ____________  Requirement: Greater  than or equal to 1.20 to  1.00  Calculation of Consolidated Capital Expenditures  Consolidated  Capital  Expenditures The amount of capital expenditures of the Borrower  and its Subsidiaries (specifically including any  software development costs that are capitalized)   $______________________ Requirement: Less than or  equal to $30,000,000 for  each fiscal year  2 For purposes of the calculation of the Fixed Charge Coverage Ratio, Consolidated Unfunded Capital Expenditures  shall not include the amount of Excluded Growth CapEx for the applicable periods as set forth below:  Fiscal Quarter Ending Excluded Growth CapEx  December 31, 2021 $1,694,000  March 31, 2022 $2,090,000  June 30, 2022 $2,424,000  

 

1  Exhibit C-1  REVOLVING NOTE  Principal Amount:  $25,000,000.00 July 22, 2022  FOR VALUE RECEIVED, the undersigned, CORE MOLDING TECHNOLOGIES, INC.,  a Delaware corporation (the “Borrower”), hereby promises to pay to the order of THE  HUNTINGTON NATIONAL BANK (the “Lender”) the principal amount of TWENTY-FIVE  MILLION AND 00/100 DOLLARS ($25,000,000.00), or, if less, the aggregate unpaid principal  amount of all Revolving Loans (as defined in the Credit Agreement referred to below) of the  Lender to the Borrower, payable at such times and in such amounts as are specified in the Credit  Agreement.  The Borrower promises to pay interest on the unpaid principal amount of the Revolving  Loans from the date made until such principal amount is paid in full, payable at such times and at  such interest rates as are specified in the Credit Agreement.  Demand, diligence, presentment,  protest and notice of non-payment and protest are hereby waived by the Borrower.  Both principal and interest are payable in Dollars to the Administrative Agent (as defined  below) for the account of the Lender at the address set forth in the Credit Agreement, in  immediately available funds.  This Revolving Note (this “Note”) is one of the Revolving Notes referred to in, and is  entitled to the benefits of, the Credit Agreement, dated as of July 22, 2022 (as amended, restated,  supplemented or otherwise modified from time to time, the “Credit Agreement”), among the  Borrower, the other Loan Parties from time to time party thereto, the Lenders from time to time  party thereto and The Huntington National Bank, as Administrative Agent (in such capacity, the  “Administrative Agent”), including the security interests provided for therein or in the other Loan  Documents.  Capitalized terms used herein without definition are used as defined in the Credit  Agreement.  The Credit Agreement, among other things, (a) provides for the making of the Revolving  Loans by the Lender to the Borrower in an aggregate amount not to exceed at any time outstanding  the principal amount set forth above, the indebtedness of the Borrower resulting from such  Revolving Loans being evidenced by this Note and (b) contains provisions for acceleration of the  maturity of the unpaid principal amount of this Note upon the happening of certain stated events  and also for prepayments on account of the principal hereof prior to the maturity hereof upon the  terms and conditions specified therein.  

 

2  This Note and any claim, controversy, dispute or cause of action (whether in contract or  tort or otherwise) based upon, arising out of or relating to this Note shall be governed by, and  construed in accordance with, the laws of the State of Ohio.  [SIGNATURE PAGE FOLLOWS]  

 

[Signature page to Revolving Note]  IN WITNESS WHEREOF, the Borrower has caused this Note to be executed and delivered  by its duly authorized officer as of the day and year set forth above.  CORE MOLDING TECHNOLOGIES, INC.  By: ___________________________________  Name:  John P. Zimmer  Title:  Executive Vice President, Secretary,  Treasurer and Chief Financial Officer  

 

1 Exhibit C-2  TERM NOTE  Principal Amount:  $25,000,000.00 July 22, 2022  FOR VALUE RECEIVED, the undersigned, CORE MOLDING TECHNOLOGIES, INC.,  a Delaware corporation (the “Borrower”), hereby promises to pay to the order of THE  HUNTINGTON NATIONAL BANK (the “Lender”) the principal amount of TWENTY-FIVE  MILLION AND 00/100 DOLLARS ($25,000,000.00) or, if less, the aggregate unpaid principal  amount of the Term Loan (as defined in the Credit Agreement referred to below) of the Lender to  the Borrower, payable at such times and in such amounts as are specified in the Credit Agreement.  The Borrower promises to pay interest on the unpaid principal amount of the Term Loan  from the date made until such principal amount is paid in full, payable at such times and at such  interest rates as are specified in the Credit Agreement.  Demand, diligence, presentment, protest  and notice of non-payment and protest are hereby waived by the Borrower.  Both principal and interest are payable in Dollars to the Administrative Agent (as defined  below) for the account of the Lender at the address set forth in the Credit Agreement, in  immediately available funds.  This Term Note (this “Note”) is one of the Term Notes referred to in, and is entitled to the  benefits of, the Credit Agreement, dated as of July 22, 2022 (as amended, restated, supplemented  or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the other  Loan Parties from time to time party thereto, the Lenders from time to time party thereto and The  Huntington National Bank, as Administrative Agent (in such capacity, the “Administrative  Agent”), including the security interests provided for therein or in the other Loan Documents.   Capitalized terms used herein without definition are used as defined in the Credit Agreement.  The Credit Agreement, among other things, (a) provides for the making of the Term Loan  by the Lender to the Borrower in the initial outstanding principal amount set forth above, the  indebtedness of the Borrower resulting from such Term Loan being evidenced by this Note and  (b) contains provisions for acceleration of the maturity of the unpaid principal amount of this Note  upon the happening of certain stated events and also for prepayments on account of the principal  hereof prior to the maturity hereof upon the terms and conditions specified therein.  This Note and any claim, controversy, dispute or cause of action (whether in contract or  tort or otherwise) based upon, arising out of or relating to this Note shall be governed by, and  construed in accordance with, the laws of the State of Ohio.  [SIGNATURE PAGE FOLLOWS]  

 

[Signature Page to Term Note]  IN WITNESS WHEREOF, the Borrower has caused this Note to be executed and delivered  by its duly authorized officer as of the day and year set forth above.  CORE MOLDING TECHNOLOGIES, INC.   By: ___________________________________  Name:  John P. Zimmer  Title:  Executive Vice President, Secretary,  Treasurer and Chief Financial Officer  

 

1  Exhibit C-3  SWINGLINE LOAN NOTE  Principal Amount:  $10,000,000.00 July 22, 2022  FOR VALUE RECEIVED, the undersigned, CORE MOLDING TECHNOLOGIES, INC.,  a Delaware corporation (the “Borrower”), hereby promises to pay to the order of THE  HUNTINGTON NATIONAL BANK (the “Swingline Lender”) the unpaid principal amount of  the Swingline Loans (as defined in the Credit Agreement referred to below) made by the Swingline  Lender to the Borrower, payable at such times and in such amounts as are specified in the Credit  Agreement.  The Borrower promises to pay interest on the unpaid principal amount of the Swingline  Loans from the date made until such principal amount is paid in full, payable at such times and at  such interest rates as are specified in the Credit Agreement.  Demand, diligence, presentment,  protest and notice of non-payment and protest are hereby waived by the Borrower.  Both principal and interest are payable in Dollars to the Swingline Lender at the address  set forth in the Credit Agreement, in immediately available funds.  This Swingline Loan Note (this “Note”) is the Swingline Loan Note referred to in, and is  entitled to the benefits of, the Credit Agreement, dated as of July 22, 2022 (as amended, restated,  supplemented or otherwise modified from time to time, the “Credit Agreement”), among the  Borrower, the other Loan Parties from time to time party thereto, the Lenders from time to time  party thereto, and The Huntington National Bank, as Administrative Agent (in such capacity, the  “Administrative Agent”), including the security interests provided for therein or in the other Loan  Documents.  Capitalized terms used herein without definition are used as defined in the Credit  Agreement.  The Credit Agreement, among other things, (a) provides for the making of Swingline Loans  by the Swingline Lender to the Borrower in an aggregate amount not to exceed at any time  outstanding the principal amount set forth above, the indebtedness of the Borrower resulting from  such Swingline Loans being evidenced by this Note and (b) contains provisions for acceleration  of the maturity of the unpaid principal amount of this Note upon the happening of certain stated  events and also for prepayments on account of the principal hereof prior to the maturity hereof  upon the terms and conditions specified therein.  This Note and any claim, controversy, dispute or cause of action (whether in contract or  tort or otherwise) based upon, arising out of or relating to this Note shall be governed by, and  construed in accordance with, the laws of the State of Ohio.  [SIGNATURE PAGE FOLLOWS]  

 

[Signature page to Swingline Loan Note]  IN WITNESS WHEREOF, the Borrower has caused this Note to be executed and delivered  by its duly authorized officer as of the day and year set forth above.  CORE MOLDING TECHNOLOGIES, INC.  By: ________________________________   Name: John P. Zimmer  Title: Executive Vice President, Secretary,            Treasurer and Chief Financial Officer  

 

1 Exhibit C-4  CAPEX NOTE  Principal Amount:  $25,000,000.00 July 22, 2022  FOR VALUE RECEIVED, the undersigned, CORE MOLDING TECHNOLOGIES, INC.,  a Delaware corporation (the “Borrower”), hereby promises to pay to the order of THE  HUNTINGTON NATIONAL BANK (the “Lender”) the principal amount of TWENTY-FIVE  MILLION AND 00/100 DOLLARS ($25,000,000.00) or, if less, the aggregate unpaid principal  amount of all CapEx Loans (as defined in the Credit Agreement referred to below) of the Lender  to the Borrower, payable at such times and in such amounts as are specified in the Credit  Agreement.  The Borrower promises to pay interest on the unpaid principal amount of the CapEx Loans  from the date made until such principal amount is paid in full, payable at such times and at such  interest rates as are specified in the Credit Agreement.  Demand, diligence, presentment, protest  and notice of non-payment and protest are hereby waived by the Borrower.  Both principal and interest are payable in Dollars to the Administrative Agent (as defined  below) for the account of the Lender at the address set forth in the Credit Agreement, in  immediately available funds.  This CapEx Note (this “Note”) is one of the CapEx Notes referred to in, and is entitled to  the benefits of, the Credit Agreement, dated as of July 22, 2022 (as amended, restated,  supplemented or otherwise modified from time to time, the “Credit Agreement”), among the  Borrower, the other Loan Parties from time to time party thereto, the Lenders from time to time  party thereto and The Huntington National Bank, as Administrative Agent (in such capacity, the  “Administrative Agent”), including the security interests provided for therein or in the other Loan  Documents.  Capitalized terms used herein without definition are used as defined in the Credit  Agreement.  The Credit Agreement, among other things, (a) provides for the making of the CapEx  Loans by the Lender to the Borrower in an aggregate amount not to exceed at any time the  outstanding principal amount set forth above, the indebtedness of the Borrower resulting from such  CapEx Loans being evidenced by this Note and (b) contains provisions for acceleration of the  maturity of the unpaid principal amount of this Note upon the happening of certain stated events  and also for prepayments on account of the principal hereof prior to the maturity hereof upon the  terms and conditions specified therein.  This Note and any claim, controversy, dispute or cause of action (whether in contract or  tort or otherwise) based upon, arising out of or relating to this Note shall be governed by, and  construed in accordance with, the laws of the State of Ohio.  [SIGNATURE PAGE FOLLOWS]  

 

[Signature Page to CapEx Note]  IN WITNESS WHEREOF, the Borrower has caused this Note to be executed and delivered  by its duly authorized officer as of the day and year set forth above.  CORE MOLDING TECHNOLOGIES, INC.  By: ___________________________________  Name:  John P. Zimmer  Title:  Executive Vice President, Secretary,  Treasurer and Chief Financial Officer  

 

EXHIBIT D  FORM OF ASSIGNMENT AGREEMENT  ASSIGNMENT AND ASSUMPTION This Assignment and Assumption (the “Assignment and Assumption”) is dated as of  the Effective Date set forth below and is entered into by and between the Assignor identified in item  1 below (the “Assignor”) and the Assignee identified in item 2 below (the “Assignee”).  Capitalized  terms used but not defined herein shall have the meanings given to them in the Credit Agreement  identified below (as amended, restated, supplemented or otherwise from time to time, the “Credit  Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard  Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated  herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.  For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the  Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject  to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the  Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s  rights and obligations in its capacity as a Lender under the Credit Agreement and any other  documents or instruments delivered pursuant thereto to the extent related to the amount and  percentage interest identified below of all of such outstanding rights and obligations of the Assignor  under the respective facilities identified below (including without limitation any letters of credit,  guarantees, and swingline loans included in such facilities), and (ii) to the extent permitted to be  assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor  (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in  connection with the Credit Agreement, any other documents or instruments delivered pursuant  thereto or the loan transactions governed thereby or in any way based on or related to any of the  foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory  claims and all other claims at law or in equity related to the rights and obligations sold and assigned  pursuant to clause (i) above (the rights and obligations sold and assigned by the Assignor to the  Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned  Interest”).  Each such sale and assignment is without recourse to the Assignor and, except as  expressly provided in this Assignment and Assumption, without representation or warranty by the  Assignor.    1. Assignor: ______________________________  2. Assignee: ______________________________  ______________________________  [Assignee is an [Affiliate][Approved Fund] of [identify Lender]  3. Borrower:  Core Molding Technologies, Inc., a Delaware corporation  4. Administrative Agent: The Huntington National Bank, as the administrative agent under  the Credit Agreement  

 

5. Credit Agreement: The Credit Agreement, dated as of July 22, 2022, among Borrower,  the other Loan Parties party thereto, the Lenders from time to time  party thereto, and The Huntington National Bank, as Administrative  Agent 6.  Assigned Interest[s]:  Facility Assigned1 Aggregate Amount of  Commitment/Loans for all  Lenders  Amount of  Commitment/Loans  Assigned  Percentage Assigned  of Commitment2 $ $ %  $ $ %  $ $ %  $ $ %  $ $ %  [SIGNATURE PAGES FOLLOW]  1 Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being assigned  under this Assignment and Assumption (e.g.,  “Revolving Commitment”, “Term Loan”, etc.)  2 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.  

 

Effective Date:   _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT  AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE  REGISTER THEREFOR.]  The terms specified in this Assignment and Assumption are hereby agreed to:  ASSIGNOR  [NAME OF ASSIGNOR]  By: ________________________________   Name:  Title:  ASSIGNEE  [NAME OF ASSIGNEE]  By: ________________________________   Name:  Title:  [Consented to and ]3Accepted:  THE HUNTINGTON NATIONAL BANK, as   Administrative Agent  By: ________________________________   Name:  Title:  3 To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement. 

 

[Consented to:]4 CORE MOLDING TECHNOLOGIES, INC.,  as Borrower  By: ________________________________   Name:  Title:  [Consented to:]  THE HUNTINGTON NATIONAL BANK, as   Issuing Bank and Swingline Lender  By: ________________________________   Name:  Title:  4 To be added only if the consent of the Borrower and/or other parties (e.g. Swingline Lender, Issuing Bank) is required by the  terms of the Credit Agreement. 

 

ANNEX 1  CREDIT AGREEMENT  STANDARD TERMS AND  CONDITIONS FOR ASSIGNMENT   1. Representations and Warranties.    1.1 Assignor.  The Assignor (a) represents and warrants that (i) it is the legal  and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any  lien, encumbrance or other adverse claim, (iii) it has full power and authority, and has taken all  action necessary, to execute and deliver this Assignment and Assumption and to consummate the  transactions contemplated hereby and (iv) it is not a Defaulting Lender; and (b) assumes no  responsibility with respect to (i) any statements, warranties or representations made in or in  connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality,  validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any  Collateral, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any  other Person obligated in respect of any Loan Document, or (iv) the performance or observance  by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective  obligations under any Loan Document.  1.2. Assignee.  The Assignee (a) represents and warrants that (i) it has full power  and authority, and has taken all action necessary, to execute and deliver this Assignment and  Assumption and to consummate the transactions contemplated hereby and to become a Lender  under the Credit Agreement, (ii) it meets all the requirements to be an assignee under Section 10.6  of the Credit Agreement (subject to such consents, if any, as may be required thereunder), (iii)  from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as  a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a  Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type  represented by the Assigned Interest and either it, or the Person exercising discretion in making its  decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (v) it has  received a copy of the Credit Agreement, and has received or has been accorded the opportunity  to receive copies of the most recent financial statements delivered pursuant to Section 6.1 thereof,  as applicable, and such other documents and information as it deems appropriate to make its own  credit analysis and decision to enter into this Assignment and Assumption and to purchase the  Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent  or any other Lender and based on such documents and information as it has deemed appropriate,  made its own credit analysis and decision to enter into this Assignment and Assumption and to  purchase the Assigned Interest, and (vii) if it is a Foreign Lender attached to the Assignment and  Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit  Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will,  independently and without reliance on the Administrative Agent, the Assignor or any other Lender,  and based on such documents and information as it shall deem appropriate at the time, continue to  make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it  

 

will perform in accordance with their terms all of the obligations which by the terms of the Loan  Documents are required to be performed by it as a Lender.  2. Payments.  From and after the Effective Date, the Administrative Agent  shall make all payments in respect of the Assigned Interest (including payments of principal,  interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding  the Effective Date and to the Assignee for amounts which have accrued from and after the Effective  Date.  Notwithstanding the foregoing, the Administrative Agent shall make all payments of  interest, fees or other amounts paid or payable in kind from and after the Effective Date to the  Assignee.  3. General Provisions.  This Assignment and Assumption shall be binding  upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.   This Assignment and Assumption 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  of this Assignment and Assumption by facsimile or in electronic (e.g.  “pdf” or “tif”) format shall  be effective as delivery of a manually executed counterpart of this Assignment and Assumption.   This Assignment and Assumption shall be governed by, and construed in accordance with, the  laws of the State of Ohio.  

 

EXHIBIT E-1  FORM OF U.S. TAX COMPLIANCE CERTIFICATE  (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)  Reference is hereby made to the Credit Agreement, dated as of July 22, 2022 (as  amended, restated, supplemented or otherwise modified from time to time, the “Credit  Agreement”), among Core Molding Technologies, Inc., a Delaware corporation (the “Borrower”),  the other Loan Parties from time to time party thereto, the Lenders from time to time party thereto  and The Huntington National Bank, as Administrative Agent.  Pursuant to the provisions of Section 3.1 of the Credit Agreement, the undersigned  hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any  Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a  “bank” within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a “ten percent  shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it  is not a “controlled foreign corporation” related to the Borrower as described in  Section 881(c)(3)(C) of the Code.  The undersigned has furnished the Administrative Agent and the Borrower with a  certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E.  By  executing this certificate, the undersigned agrees that (1) if the information provided in this  certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative  Agent, and (2) the undersigned shall have at all times furnished the Borrower and the  Administrative Agent with a properly completed and currently effective certificate in either the  calendar year in which each payment is to be made to the undersigned, or in either of the two  calendar years preceding such payments.  Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.  [NAME OF LENDER]  By:_________________________________  Name:  Title:  Date:  ________ __, 20[  ]  

 

EXHIBIT E-2  FORM OF U.S. TAX COMPLIANCE CERTIFICATE  (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)  Reference is hereby made to the Credit Agreement, dated as of July 22, 2022 (as  amended, restated, supplemented or otherwise modified from time to time, the “Credit  Agreement”), among Core Molding Technologies, Inc., a Delaware corporation (the “Borrower”),  the other Loan Parties from time to time party thereto, the Lenders from time to time party thereto  and The Huntington National Bank, as Administrative Agent.  Pursuant to the provisions of Section 3.1 of the Credit Agreement, the undersigned  hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of  which it is providing this certificate, (ii) it is not a “bank” within the meaning of  Section 881(c)(3)(A) of the Code, (iii) it is not a “ten percent shareholder” of the Borrower within  the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a “controlled foreign  corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code.  The undersigned has furnished its participating Lender with a certificate of its non- U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E.  By executing this certificate,  the undersigned agrees that (1) if the information provided in this certificate changes, the  undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have  at all times furnished such Lender with a properly completed and currently effective certificate in  either the calendar year in which each payment is to be made to the undersigned, or in either of the  two calendar years preceding such payments.  Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.  [NAME OF PARTICIPANT]  By:_________________________________  Name:  Title:  Date:  ________ __, 20[  ]  

 

EXHIBIT E-3  FORM OF U.S. TAX COMPLIANCE CERTIFICATE  (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)  Reference is hereby made to the Credit Agreement, dated as of July 22, 2022 (as  amended, restated, supplemented or otherwise modified from time to time, the “Credit  Agreement”), among Core Molding Technologies, Inc., a Delaware corporation (the “Borrower”),  the other Loan Parties from time to time party thereto, the Lenders from time to time party thereto  and The Huntington National Bank, as Administrative Agent.  Pursuant to the provisions of Section 3.1 of the Credit Agreement, the undersigned  hereby certifies that (i) it is the sole record owner of the participation in respect of which it is  providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners  of such participation, (iii) with respect such participation, neither the undersigned nor any of its  direct or indirect partners/members is a “bank” extending credit pursuant to a loan agreement  entered into in the ordinary course of its trade or business within the meaning of  Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a “ten  percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and  (v) none of its direct or indirect partners/members is a “controlled foreign corporation” related to  the Borrower as described in Section 881(c)(3)(C) of the Code.  The undersigned has furnished its participating Lender with IRS Form W-8IMY  accompanied by one of the following forms from each of its partners/members that is claiming the  portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E or (ii) an IRS  Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E from each of  such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By  executing this certificate, the undersigned agrees that (1) if the information provided in this  certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned  shall have at all times furnished such Lender with a properly completed and currently effective  certificate in either the calendar year in which each payment is to be made to the undersigned, or  in either of the two calendar years preceding such payments.  Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.  [NAME OF PARTICIPANT]  By:_________________________________  Name:  Title:  Date:  ________ __, 20[  ]  

 

EXHIBIT E-4  FORM OF U.S. TAX COMPLIANCE CERTIFICATE (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)  Reference is hereby made to the Credit Agreement, dated as of July 22, 2022 (as  amended, restated, supplemented or otherwise modified from time to time, the “Credit  Agreement”), among Core Molding Technologies, Inc., a Delaware corporation (the “Borrower”),  the other Loan Parties from time to time party thereto, the Lenders from time to time party thereto  and The Huntington National Bank, as Administrative Agent.  Pursuant to the provisions of Section 3.1 of the Credit Agreement, the undersigned  hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing  such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect  partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing  such Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit Agreement or any  other Loan Document, neither the undersigned nor any of its direct or indirect partners/members  is a “bank” extending credit pursuant to a loan agreement entered into in the ordinary course of its  trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct  or indirect partners/members is a “ten percent shareholder” of the Borrower within the meaning of  Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a  “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of  the Code.  The undersigned has furnished the Administrative Agent and the Borrower with  IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members  that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN- E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E  from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest  exemption.  By executing this certificate, the undersigned agrees that (1) if the information  provided in this certificate changes, the undersigned shall promptly so inform the Borrower and  the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower  and the Administrative Agent with a properly completed and currently effective certificate in either  the calendar year in which each payment is to be made to the undersigned, or in either of the two  calendar years preceding such payments.  Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.  [NAME OF LENDER]  By:_________________________________  Name:  Title:  Date:  ________ __, 20[  ]

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