Document:

a15091703101thirdamended

                                                                    Exhibit 10.1                                                                         EXECUTION COPY                                                                                                                                                                                                 THIRD AMENDED AND RESTATED CREDIT AGREEMENT                                      dated as of                                  September 24, 2019                                       among                              MATERION CORPORATION                            MATERION NETHERLANDS B.V.                      The Other Foreign Subsidiary Borrowers Party Hereto                                The Lenders Party Hereto                            JPMORGAN CHASE BANK, N.A.                                as Administrative Agent                     WELLS FARGO BANK, NATIONAL ASSOCIATION                                       and                              BANK OF AMERICA, N.A.                               as Co-Syndication Agents                          KEYBANK NATIONAL ASSOCIATION                               as Documentation Agent                                                                  _____________________________________                            JPMORGAN CHASE BANK, N.A.                        as Sole Bookrunner and Sole Lead Arranger                                                  US-DOCS\109992667.6  

 

                             TABLE OF CONTENTS                                                                            Page   ARTICLE I Definitions ................................................................................................................................ 1   SECTION 1.01. Defined Terms ................................................................................................................ 1  SECTION 1.02. Classification of Loans and Borrowings ....................................................................... 31  SECTION 1.03. Terms Generally............................................................................................................ 31  SECTION 1.04. Accounting Terms; GAAP ............................................................................................ 32  SECTION 1.05. Amendment and Restatement of the Existing Credit Agreement ................................. 32  SECTION 1.06. Interest Rates; LIBOR Notification .............................................................................. 33  SECTION 1.07. Divisions ....................................................................................................................... 33  SECTION 1.08. Pro Forma Adjustments for Acquisitions and Dispositions .......................................... 34   ARTICLE II The Credits ............................................................................................................................ 34   SECTION 2.01. Commitments ................................................................................................................ 34  SECTION 2.02. Loans and Borrowings .................................................................................................. 34  SECTION 2.03. Requests for Revolving Borrowings ............................................................................. 35  SECTION 2.04. Determination of Dollar Amounts ................................................................................ 36  SECTION 2.05. Swingline Loans............................................................................................................ 36  SECTION 2.06. Letters of Credit ............................................................................................................ 38  SECTION 2.07. Funding of Borrowings ................................................................................................. 43  SECTION 2.08. Interest Elections ........................................................................................................... 44  SECTION 2.09. Termination and Reduction of Commitments ............................................................... 45  SECTION 2.10. Repayment of Loans; Evidence of Debt ....................................................................... 45  SECTION 2.11. Prepayment of Loans .................................................................................................... 46  SECTION 2.12. Fees ............................................................................................................................... 47  SECTION 2.13. Interest .......................................................................................................................... 48  SECTION 2.14. Alternate Rate of Interest .............................................................................................. 49  SECTION 2.15. Increased Costs ............................................................................................................. 50  SECTION 2.16. Break Funding Payments .............................................................................................. 52  SECTION 2.17. Taxes ............................................................................................................................. 52  SECTION 2.18. Payments Generally; Allocation of Proceeds; Pro Rata Treatment; Sharing of               Set-offs .......................................................................................................................... 56  SECTION 2.19. Mitigation Obligations; Replacement of Lenders ......................................................... 58  SECTION 2.20. Expansion Option.......................................................................................................... 59  SECTION 2.21. Market Disruption ......................................................................................................... 60  SECTION 2.22. Judgment Currency ....................................................................................................... 61  SECTION 2.23. Designation of Foreign Subsidiary Borrowers .............................................................. 61  SECTION 2.24. Defaulting Lenders ........................................................................................................ 62  SECTION 2.25. Extension of Maturity Date. .......................................................................................... 64   ARTICLE III Representations and Warranties ........................................................................................... 66   SECTION 3.01. Organization; Powers; Subsidiaries .............................................................................. 66  SECTION 3.02. Authorization; Enforceability ....................................................................................... 66  SECTION 3.03. Governmental Approvals; No Conflicts ....................................................................... 67  SECTION 3.04. Financial Condition; No Material Adverse Change ...................................................... 67  SECTION 3.05. Properties ...................................................................................................................... 67                                             

 

                                Table of Contents                                    (continued)                                                                             Page   SECTION 3.06. Litigation and Environmental Matters .......................................................................... 67  SECTION 3.07. Compliance with Laws ................................................................................................. 68  SECTION 3.08. Investment Company Status ......................................................................................... 68  SECTION 3.09. Taxes ............................................................................................................................. 68  SECTION 3.10. ERISA ........................................................................................................................... 68  SECTION 3.11. Disclosure ..................................................................................................................... 68  SECTION 3.12. Federal Reserve Regulations ......................................................................................... 68  SECTION 3.13. [Intentionally Omitted] ................................................................................................. 68  SECTION 3.14. No Default ..................................................................................................................... 68  SECTION 3.15. [Intentionally Omitted] ................................................................................................. 68  SECTION 3.16. Solvency ........................................................................................................................ 69  SECTION 3.17. Insurance ....................................................................................................................... 69  SECTION 3.18. Security Interest in Collateral ....................................................................................... 69  SECTION 3.19. Anti-Corruption Laws and Sanctions ............................................................................ 69  SECTION 3.20. EEA Financial Institutions ............................................................................................ 70  SECTION 3.21. Dutch Fiscal Unity ........................................................................................................ 70  SECTION 3.22. Residency for Tax Purposes .......................................................................................... 70   ARTICLE IV Conditions ............................................................................................................................ 70   SECTION 4.01. Effective Date ............................................................................................................... 70  SECTION 4.02. Each Credit Event ......................................................................................................... 71  SECTION 4.03. Designation of a Foreign Subsidiary Borrower ............................................................ 72   ARTICLE V Affirmative Covenants .......................................................................................................... 72   SECTION 5.01. Financial Statements and Other Information ................................................................ 72  SECTION 5.02. Notices of Material Events ............................................................................................ 74  SECTION 5.03. Existence; Conduct of Business .................................................................................... 74  SECTION 5.04. Payment of Obligations ................................................................................................. 74  SECTION 5.05. Maintenance of Properties; Insurance ........................................................................... 75  SECTION 5.06. Books and Records; Inspection Rights ......................................................................... 75  SECTION 5.07. Compliance with Laws and Material Contractual Obligations ..................................... 76  SECTION 5.08. Use of Proceeds............................................................................................................. 76  SECTION 5.09. Subsidiary Guarantors; Pledges; Additional Collateral; Further Assurances ............... 76  SECTION 5.10. Fiscal Unity for Dutch Tax Purposes ............................................................................ 78  SECTION 5.11. Allocation of Tax Losses .............................................................................................. 78  SECTION 5.12. Residency for Tax Purposes .......................................................................................... 78  SECTION 5.13. Post-Closing Matters ..................................................................................................... 78   ARTICLE VI Negative Covenants ............................................................................................................. 79   SECTION 6.01. Indebtedness .................................................................................................................. 79  SECTION 6.02. Liens .............................................................................................................................. 81  SECTION 6.03. Fundamental Changes and Asset Sales ......................................................................... 85  SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions ...................................... 86  SECTION 6.05. Swap Agreements ......................................................................................................... 88  SECTION 6.06. Transactions with Affiliates .......................................................................................... 88  SECTION 6.07. Restricted Payments ...................................................................................................... 88                                          ii  

 

                                Table of Contents                                    (continued)                                                                             Page   SECTION 6.08. Restrictive Agreements ................................................................................................. 89  SECTION 6.09. Subordinated Indebtedness and Amendments to Subordinated Indebtedness               Documents .................................................................................................................... 89  SECTION 6.10. Sale and Leaseback Transactions .................................................................................. 90  SECTION 6.11. Financial Covenants ...................................................................................................... 90   ARTICLE VII Events of Default ................................................................................................................ 90   SECTION 7.01. Events of Default .......................................................................................................... 90  SECTION 7.02. Remedies Upon an Event of Default ............................................................................. 92   ARTICLE VIII The Administrative Agent ................................................................................................. 93   SECTION 8.01. Authorization and Action. ............................................................................................. 93  SECTION 8.02. Administrative Agent’s Reliance, Indemnification, Etc ............................................... 96  SECTION 8.03. Posting of Communications .......................................................................................... 97  SECTION 8.04. The Administrative Agent Individually ........................................................................ 98  SECTION 8.05. Successor Administrative Agent ................................................................................... 99  SECTION 8.06. Acknowledgements of Lenders and Issuing Bank ...................................................... 100  SECTION 8.07. Collateral Matters ........................................................................................................ 100  SECTION 8.08. Credit Bidding ............................................................................................................. 101  SECTION 8.09. Certain ERISA Matters ............................................................................................... 102  SECTION 8.10. Certain Foreign Pledge Matters .................................................................................. 103   ARTICLE IX Miscellaneous .................................................................................................................... 104   SECTION 9.01. Notices ........................................................................................................................ 104  SECTION 9.02. Waivers; Amendments ................................................................................................ 105  SECTION 9.03. Expenses; Indemnity; Damage Waiver ....................................................................... 108  SECTION 9.04. Successors and Assigns ............................................................................................... 110  SECTION 9.05. Survival ....................................................................................................................... 114  SECTION 9.06. Counterparts; Integration; Effectiveness; Electronic Execution ................................. 115  SECTION 9.07. Severability ................................................................................................................. 115  SECTION 9.08. Right of Setoff............................................................................................................. 115  SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process ..................................... 116  SECTION 9.10. WAIVER OF JURY TRIAL ....................................................................................... 117  SECTION 9.11. Headings ..................................................................................................................... 117  SECTION 9.12. Confidentiality ............................................................................................................ 117  SECTION 9.13. USA PATRIOT Act .................................................................................................... 118  SECTION 9.14. Appointment for Perfection ........................................................................................ 118  SECTION 9.15. Interest Rate Limitation .............................................................................................. 119  SECTION 9.16. No Advisory or Fiduciary Responsibility ................................................................... 119  SECTION 9.17. Attorney Representation ............................................................................................. 120  SECTION 9.18. Acknowledgement and Consent to Bail-In of EEA Financial Institutions ................. 120  SECTION 9.19. Acknowledgement Regarding Any Supported QFCs ................................................. 120  SECTION 9.20. Releases of Subsidiary Guarantors. ............................................................................ 121   ARTICLE X Company Guarantee ............................................................................................................ 122                                          iii  

 

                                Table of Contents                                    (continued)                                                                             Page   SCHEDULES:   Schedule 2.01 –   Commitments  Schedule 2.06 –   Existing Letters of Credit  Schedule 3.01 –   Subsidiaries  Schedule 6.01 –   Existing Indebtedness  Schedule 6.02 –   Existing Liens  Schedule 6.04 –   Existing Investments   EXHIBITS:   Exhibit A   – Form of Assignment and Assumption  Exhibit B   – [Intentionally Omitted]  Exhibit C   – Form of Increasing Lender Supplement  Exhibit D   – Form of Augmenting Lender Supplement  Exhibit E   – List of Closing Documents  Exhibit F-1  – Form of Borrowing Subsidiary Agreement  Exhibit F-2  – Form of Borrowing Subsidiary Termination  Exhibit G-1 – Form of Borrowing Request  Exhibit G-2 – Form of Interest Election Request  Exhibit H   – Form of Note  Exhibit I-1  – Form of U.S. Tax Certificate (Foreign Lenders That Are Not Partnerships)  Exhibit I-2  – Form of U.S. Tax Certificate (Foreign Participants That Are Not Partnerships)  Exhibit I-3  – Form of U.S. Tax Certificate (Foreign Participants That Are Partnerships)  Exhibit I-4  – Form of U.S. Tax Certificate (Foreign Lenders That Are Partnerships)                                            iv  

 

            THIRD  AMENDED  AND  RESTATED  CREDIT  AGREEMENT  (this  “Agreement”)  dated as of September 24, 2019 among MATERION CORPORATION, MATERION NETHERLANDS  B.V., the other FOREIGN SUBSIDIARY BORROWERS from time to time party hereto, the LENDERS  from time to time party hereto, JPMORGAN CHASE BANK, N.A., as Administrative Agent, WELLS  FARGO  BANK,  NATIONAL  ASSOCIATION  and  BANK  OF  AMERICA,  N.A.,  as  Co-Syndication  Agents and KEYBANK NATIONAL ASSOCIATION, as Documentation Agent.               WHEREAS, the Company, the Foreign Subsidiary Borrowers party thereto, the lenders  party thereto and JPMorgan Chase Bank, N.A., as administrative agent thereunder, are currently party to  the  Second  Amended  and  Restated  Credit  Agreement,  dated  as  of  June  20,  2013  (as  amended,  supplemented or otherwise modified prior to the date hereof, the “Existing Credit Agreement”).               WHEREAS,  the  Company,  the  Foreign  Subsidiary  Borrowers, the  Lenders  and  the  Administrative  Agent  have  agreed  to  enter  into  this  Agreement  in  order  to  (i) amend  and  restate  the  Existing Credit Agreement in its entirety, (ii) re-evidence the “Obligations” under, and as defined in, the  Existing  Credit  Agreement, which  shall  constitute  “Obligations”  hereunder  and  be  repayable  in  accordance with the terms of this Agreement, and (iii) set forth the terms and conditions under which the  Lenders  will, from  time  to  time,  make  loans and  extend  other financial  accommodations  to  or for  the  benefit of the Borrowers.               WHEREAS,  it  is  the  intent  of  the  parties  hereto  that  this  Agreement  not  constitute  a  novation of the obligations and liabilities of the parties under the Existing Credit Agreement or be deemed  to evidence or constitute full repayment of such obligations and liabilities, but that this Agreement amend  and restate in its entirety the Existing Credit Agreement and re-evidence the obligations and liabilities of  the Company and the other Loan Parties outstanding thereunder, which shall be payable in accordance  with the terms hereof.               WHEREAS, it is also the intent of the Company and the other Loan Parties to confirm  that all obligations under the applicable “Loan Documents” (as referred to and defined in the Existing  Credit Agreement) shall continue in full force and effect as modified or restated by the Loan Documents  (as referred to and defined herein) and that, from and after the Effective Date, all references to the “Credit  Agreement”  contained  in  any  such  existing  “Loan  Documents”  shall  be  deemed  to  refer  to  this  Agreement.               NOW,  THEREFORE,  in  consideration  of  the  premises  and  the  mutual  covenants  contained  herein,  the  parties  hereto  agree  that  the  Existing  Credit  Agreement  is  hereby  amended  and  restated as follows:                                     ARTICLE I                                                                             Definitions               SECTION 1.01.  Defined  Terms.   As  used  in  this  Agreement,  the  following  terms  have the meanings specified below:               “ABR” when used in reference to any Loan or Borrowing, refers to such Loan, or the  Loans  comprising  such  Borrowing,  bearing  interest  at  a  rate  determined  by  reference  to  the  Alternate  Base Rate.               “Acquisition” means any transaction, or any series of related transactions, consummated  on or after the Effective Date, by which the Company or any Subsidiary (a) acquires any going business                                             

 

   or  all  or  substantially  all  of  the  assets  of  any  Person,  whether  through  purchase  of  assets,  merger  or  otherwise or (b) directly or indirectly acquires (in one transaction or as the most recent transaction in a  series of transactions) at least a majority (in number of votes) of the Equity Interests of a Person which  has ordinary voting power for the election of directors or other similar management personnel of a Person  (other than Equity Interests having such power only by reason of the happening of a contingency) or a  majority of the outstanding Equity Interests of a Person.               “Additional Commitment Lender” is defined in Section 2.25(d).               “Adjusted  LIBO  Rate”  means,  with  respect  to  any  Eurocurrency  Borrowing  for  any  Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal  to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.               “Administrative Agent” means JPMorgan Chase Bank, N.A. (including its branches and  affiliates), in its capacity as administrative agent for the Lenders hereunder.               “Administrative  Questionnaire”  means  an  Administrative  Questionnaire  in  a  form  supplied by the Administrative Agent.               “Affected  Foreign  Subsidiary”  means  (a)  any  Foreign  Subsidiary  organized  under  the  laws of a jurisdiction other than the Netherlands and (b) any Foreign Subsidiary Holding Company.               “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.               “Aggregate  Commitment”  means  the  aggregate  of  the  Commitments  of  all  of  the  Lenders, as reduced or increased from time to time pursuant to the terms and conditions hereof.  As of the  Effective Date, the Aggregate Commitment is $375,000,000.               “Agreed Currencies” means (i) Dollars, (ii) euro, (iii) Pounds Sterling, (iv) Japanese Yen  and (v) any other currency (x) that is a lawful currency (other than Dollars) that is readily available and  freely  transferable  and  convertible  into  Dollars,  (y) for  which  a  LIBO  Screen  Rate  is  available  in  the  Administrative  Agent’s  reasonable  determination  or,  if  a  LIBO  Screen  Rate  is  not  available,  the  Administrative Agent, the Company and each of the Lenders shall have agreed in writing to an alternative  method for determining the “LIBO Rate” to be applicable to such currency and (z) that is agreed to by the  Administrative Agent and each of the Lenders.               “Agreement” has the meaning assigned to such term in the introductory paragraph.               “Alternate  Base  Rate” means,  for  any  day,  a  rate  per  annum  equal  to  the  greatest  of  (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day plus 1⁄2 of 1% and  (c) the Adjusted LIBO Rate for a one month Interest Period in Dollars on such day (or if such day is not a  Business Day, the immediately preceding Business Day) plus 1%, provided that for the purpose of this  definition, the Adjusted LIBO Rate for any day shall be based on the LIBO Screen Rate (or if the LIBO  Screen Rate is not available for such one month Interest Period, the Interpolated Rate) at approximately  11:00 a.m. London time  on such day.  Any change  in the Alternate  Base  Rate due  to a change in the  Prime  Rate,  the  NYFRB  Rate  or  the  Adjusted  LIBO  Rate  shall  be  effective  from  and  including  the  effective  date  of  such  change  in  the  Prime  Rate,  the  NYFRB  Rate  or  the  Adjusted  LIBO  Rate,  respectively.  If the Alternate Base Rate is being used as an alternate rate of interest pursuant to Section  2.14,  then  the  Alternate Base  Rate  shall  be  the  greater  of  clauses  (a)  and  (b)  above  and  shall  be                                         2    

 

   determined without reference to clause (c) above.  For the avoidance of doubt, if the Alternate Base Rate  as determined pursuant to the foregoing would be less than 1.00%, such rate shall be deemed to be 1.00%  for purposes of this Agreement.               “Alternative Rate” has the meaning assigned to such term in Section 2.14(a).               “Anti-Corruption  Laws”  means  all  laws,  rules,  and  regulations  of  any  jurisdiction  applicable  to  the  Company  or  its  Subsidiaries  from  time  to  time  concerning  or  relating  to  bribery  or  corruption.               “Applicable Party” has the meaning assigned to such term in Section 8.03(c).               “Applicable  Percentage”  means,  with  respect  to  any  Lender,  the  percentage  of  the  Aggregate  Commitment  represented  by  such  Lender’s  Commitment; provided that,  in  the  case  of  Section 2.24 when a Defaulting Lender shall exist, “Applicable Percentage” shall mean the percentage of  the  Aggregate  Commitment  (disregarding  any  Defaulting  Lender’s  Commitment)  represented  by  such  Lender’s Commitment.  If the Commitments have terminated or expired, the Applicable Percentages shall  be determined based upon the Commitments most recently in effect, giving effect to any assignments and  to any Lender’s status as a Defaulting Lender at the time of determination.               “Applicable  Pledge  Percentage”  means  100%,  but  65%  in  the  case  of  a  pledge  by  the  Company  or  any  Domestic  Subsidiary  of  its  Equity  Interests  in  a  Foreign  Subsidiary  or  Foreign  Subsidiary Holding Company.               “Applicable  Rate”  means,  for  any  day,  with  respect  to  commitment  fees  payable  hereunder, Eurocurrency Revolving Loans or ABR Revolving Loans, as the case may be, the applicable  rate  per  annum  set  forth  below  under the  caption  “Commitment  Fee  Rate”,  “Eurocurrency  Spread” or  “ABR Spread”, as the case may be, based upon the Leverage Ratio applicable on such date:               Leverage Ratio: Commitment Fee     Eurocurrency     ABR Spread                                   Rate            Spread   Category 1:  < 1.00 to 1.00     0.175%           1.25%             0.25%   Category 2: ≥ 1.00 to 1.00 but  0.20%            1.375%           0.375%               < 1.50 to 1.00   Category 3: ≥ 1.50 to 1.00 but  0.225%           1.50%             0.50%                < 2.00 to 1.00   Category 4: ≥ 2.00 to 1.00 but  0.25%            1.625%           0.625%                < 2.50 to 1.00   Category 5: ≥ 2.50 to 1.00 but  0.30%            1.75%             0.75%                < 3.00 to 1.00   Category 6:  ≥ 3.00 to 1.00     0.35%            2.00%             1.00%           For purposes of the foregoing,                                          3    

 

               (i) if at any time the Company fails to deliver the Financials on or before the date the        Financials are due pursuant to Section 5.01, Category 6 shall be deemed applicable for the period        commencing three (3) Business Days after the required date of delivery and ending on the date        which  is  three  (3) Business  Days  after  the  Financials  are  actually  delivered,  after  which  the        Category shall be determined in accordance with the table above as applicable;               (ii) adjustments, if any, to the Category then in effect shall be effective three (3) Business        Days after the Administrative Agent has received the applicable Financials (it being understood        and  agreed  that  each  change  in  Category  shall  apply  during  the  period  commencing  on  the        effective date of such change and ending on the date immediately preceding the effective date of        the next such change); and               (iii) notwithstanding the foregoing, Category 1 shall be deemed to be applicable until the        Administrative Agent’s receipt of the applicable Financials for the Company’s first Fiscal Quarter        ending after the Effective Date (unless such Financials demonstrate that Category 2, 3, 4, 5 or 6        should  have  been  applicable  during  such  period,  in  which  case  such  other  Category  shall  be        deemed to be applicable during such period) and adjustments to the Category then in effect shall        thereafter be effected in accordance with the preceding paragraphs.               “Approved  Electronic  Platform”  has  the  meaning  assigned  to  such  term  in  Section  8.03(a).               “Approved Fund” has the meaning assigned to such term in Section 9.04(b).               “Arranger”  means JPMorgan  Chase  Bank, N.A. in its  capacity as sole  bookrunner and  sole lead arranger hereunder.               “Assignment and Assumption” means an assignment and assumption agreement entered  into  by  a  Lender  and  an  assignee  (with  the  consent  of  any  party  whose  consent  is  required  by  Section 9.04), and accepted by the Administrative Agent, substantially in the form of Exhibit A or any  other form (including electronic records generated by the use of an electronic platform) approved by the  Administrative Agent.               “Augmenting Lender” has the meaning assigned to such term in Section 2.20.               “Availability  Period”  means  the  period  from  and  including  the  Effective  Date  to  but  excluding the earlier of the Maturity Date and the date of termination of the Commitments.               “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the  applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.               “Bail-In  Legislation”  means,  with  respect  to  any  EEA  Member  Country  implementing  Article  55  of  Directive  2014/59/EU  of  the  European  Parliament  and  of  the  Council  of  the  European  Union, the implementing law for such EEA Member Country from time to time which is described in the  EU Bail-In Legislation Schedule.               “Banking Services” means each and any of the following bank services provided to the  Company  or  any  Subsidiary  by  any  Lender  or  any  of  its  Affiliates:   (a) credit  cards  for  commercial  customers (including, without limitation, commercial credit cards and purchasing cards), (b) stored value  cards,  (c)  merchant  processing  services  and  (d) treasury  management  services  (including,  without                                          4    

 

   limitation, controlled disbursement, automated clearinghouse transactions, return items, any direct debit  scheme or arrangement, overdrafts and interstate depository network services).               “Banking  Services  Agreement”  means  any  agreement  entered  into  by  the  Company  or  any Subsidiary in connection with Banking Services.               “Banking Services  Obligations” means  any and  all obligations of the  Company or any  Subsidiary, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or  acquired  (including  all  renewals,  extensions  and  modifications  thereof  and  substitutions  therefor)  in  connection with Banking Services.               “Beryllium  Contracts”  means  any  and  all  agreements  or  other  arrangements  (however  styled)  for  the  purchase,  procurement  or  other  acquisition  of  Beryllium,  in  whatever  form  (including,  without  limitation,  Beryl  ore,  Copper  Beryllium  Master  Alloy,  Vacuum  Cast  Beryllium  Ingot,  and  Vacuum Hot Pressed Beryllium Billet), entered into from time to time by the Company or any Subsidiary,  but  only  to  the  extent  that  the  Dollar  Amount  of  any  Indebtedness  related  thereto  does  not  exceed  $20,000,000 during any consecutive 12-month period.               “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as  now and hereafter in effect, or any successor statute.               “Bankruptcy Event” means, with respect to any Person, such Person becomes the subject  of a voluntary or involuntary bankruptcy or insolvency proceeding, or has had a receiver, conservator,  trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged with the  reorganization or liquidation of its business appointed for it, or, in the good faith determination of the  Administrative Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or  acquiescence in, any such proceeding or appointment or has had any order for relief in such proceeding  entered  in  respect  thereof; provided that  a  Bankruptcy  Event  shall  not  result  solely  by  virtue  of  any  ownership  interest,  or  the  acquisition  of  any  ownership  interest,  in  such  Person  by  a  Governmental  Authority  or instrumentality  thereof,  unless  such  ownership  interest results  in or  provides  such  Person  with  immunity  from  the  jurisdiction  of  courts  within  the  United  States  or  from  the  enforcement  of  judgments or writs of attachment on its assets or permits such Person (or such Governmental Authority or  instrumentality)  to  reject,  repudiate,  disavow  or  disaffirm  any  contracts  or  agreements  made  by  such  Person.               “Beneficial  Ownership  Certification”  means  a  certification  regarding  beneficial  ownership or control 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 Section 3(3) of  ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code to which  Section 4975 of the Code applies, and (c) any Person whose assets include (for purposes of the Plan Asset  Regulations or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any  such “employee benefit plan” or “plan”.               “Board”  means  the  Board  of  Governors  of  the  Federal  Reserve  System  of  the  United  States of America.               “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.                                         5    

 

               “Blocking Regulation” means Council Regulation (EC) 2271/96.               “Borrower” means the Company or any Foreign Subsidiary Borrower.               “Borrowing”  means  (a) Revolving  Loans  of  the  same  Type,  made,  converted  or  continued on the same date and, in the case of Eurocurrency Loans, as to which a single Interest Period is  in effect or (b) a Swingline Loan.               “Borrowing Request” means a request by any Borrower for a Borrowing in accordance  with Section 2.03, which shall be substantially in the form attached hereto as Exhibit G-1 or any other  form approved by the Administrative Agent.               “Borrowing  Subsidiary  Agreement”  means  a  Borrowing  Subsidiary  Agreement  substantially in the form of Exhibit F-1.               “Borrowing  Subsidiary  Termination”  means  a  Borrowing  Subsidiary  Termination  substantially in the form of Exhibit F-2.               “Business  Day” means  any  day  that  is  not  a  Saturday,  Sunday  or  other  day  on  which  commercial banks in New York City are authorized or required by law to remain closed; provided that  when used in connection with (a) a Eurocurrency Loan denominated in Dollars, the term “Business Day”  shall also exclude any day on which banks are not open for dealings in Dollar deposits in the London  interbank market, (b) any Borrowings or LC Disbursements that are the subject of a borrowing, drawing,  payment,  reimbursement  or  rate  selection  denominated  in  euro,  the  term  “Business  Day”  shall  also  exclude any day on which the TARGET2 payment system is not open for the settlement of payments in  euro and (c) a Eurocurrency Loan or Letter of Credit denominated in a Foreign Currency other than euro,  the term “Business Day” shall also exclude any day on which banks are not open for dealings in deposits  in such Foreign Currency in the interbank market in the principal financial center of the country whose  lawful currency is such Foreign Currency.               “Capitalized Lease” of a Person means any lease of Property by such Person as lessee  which  would  be capitalized  on  a  balance  sheet  of  such  Person  prepared  in  accordance  with  GAAP;  provided,  that  notwithstanding  the  foregoing,  for  purposes  of  this  Agreement,  any  lease  (or  similar  arrangement) that would constitute an “operating lease” under GAAP as in effect on December 31, 2015  (or would have constituted an “operating lease” had such lease or similar arrangement been in effect on  such date) shall constitute an “operating lease” hereunder.               “Capitalized  Lease  Obligations”  of  a  Person  means  the  aggregate  amount  of  the  obligations of such Person under Capitalized Leases which would be shown as a liability on a balance  sheet of such Person prepared in accordance with GAAP; provided, that notwithstanding the foregoing,  for purposes of this Agreement, any lease (or similar arrangement) that would constitute an “operating  lease” under GAAP as in effect on December 31, 2015 (or would have constituted an “operating lease”  had such lease or similar arrangement been in effect on such date) shall constitute an “operating lease”  hereunder and the obligations thereunder shall not constitute Capitalized Lease Obligations.               “Cash  Equivalent  Investments”  means  (a) direct  obligations  of,  or fully  guaranteed  by,  the U.S. maturing within one year from the date of acquisition thereof, (b) commercial paper rated A-1 or  better  by  S&P  or  P-1  or  better  by  Moody’s,  (c) demand  deposit  accounts  maintained  in  the  ordinary  course of business, (d) certificates of deposit issued by, bankers’ acceptances of, and time deposits with,  any Lender or any commercial bank (whether domestic or foreign) having capital and surplus in excess of  $100,000,000, and money market deposit accounts issued or offered by any such Person and (e) in the                                         6    

 

   case of any Foreign Subsidiary, any other investments that are similar to the foregoing, are of comparable  credit quality and are customarily used by companies in the jurisdiction of such Foreign Subsidiary for  cash management purposes or approved by the Administrative Agent.               “Change  in  Control”  means  (a) the  acquisition  of  ownership,  directly  or  indirectly,  beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of  1934 and the rules of the SEC thereunder as in effect on the date hereof), of Equity Interests representing  more than 20% of the aggregate ordinary voting power represented by the issued and outstanding Equity  Interests of the Company; (b) occupation of a majority of the seats (other than vacant seats) on the board  of directors of the Company by Persons who were neither (i) nominated by the board of directors of the  Company nor (ii) appointed by directors so nominated; or (c) the occurrence of a change in control, or  other similar provision, as defined in any agreement or instrument evidencing any Material Indebtedness  (triggering  a  default  or  mandatory  prepayment,  which  default  or  mandatory  prepayment  has  not  been  waived in writing).               “Change in Law” means the occurrence, after the date of this Agreement (or with respect  to any Lender, if later, the date on which such Lender becomes a Lender), 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, rules, guideline, requirement or  directive (whether or not having the force of law) by any Governmental Authority; provided however,  that  notwithstanding  anything  herein  to  the  contrary,  (i) the  Dodd-Frank  Wall  Street  Reform  and  Consumer  Protection  Act  and  all  requests,  rules,  guidelines,  requirements  and  directives  thereunder,  issued  in  connection  therewith  or  in  implementation  thereof,  and  (ii) all  requests,  rules,  guidelines,  requirements and directives promulgated by the Bank for International Settlements, the Basel Committee  on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory  authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”  regardless of the date enacted, adopted, issued or implemented.               “Charges” has the meaning assigned to such term in Section 9.15.               “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,  or the Loans comprising such Borrowing, are Revolving Loans or Swingline Loans.               “Code” means the Internal Revenue Code of 1986, as amended from time to time.               “Collateral” means any and all property owned, leased or operated by a Person covered  by the Collateral Documents and any and all other property of any Loan Party, now existing or hereafter  acquired,  that  may  at  any  time  be  or  become  subject  to  a  security  interest  or  Lien  in  favor  of  the  Administrative  Agent,  on  behalf  of  itself  and  the  Holders  of  Secured  Obligations  as  required  under  Section 5.09, to secure the Secured Obligations; provided that Collateral shall not include any Excluded  Assets.               “Collateral  Documents”  means,  collectively,  the  Domestic  Collateral  Documents,  the  Dutch  Collateral  Documents  and  any  other  agreements,  instruments  and  documents  executed  in  connection  with  this  Agreement  that  are  intended  to  create,  perfect  or  evidence  Liens  to  secure  the  Secured Obligations.               “Commitment” means,  with  respect  to  each  Lender, the  amount  set  forth  on Schedule  2.01 opposite  such  Lender’s  name  under  the  heading  “Commitment”,  or  in  the  Assignment  and  Assumption or other documentation or record (as such term is defined in Section 9-102(a)(70) of the New                                         7    

 

   York  Uniform  Commercial  Code)  contemplated  hereby  pursuant  to  which  such  Lender  shall  have  assumed its Commitment, as applicable, and giving effect to (a) any reduction in such amount from time  to time pursuant to Section 2.09, (b) any increase from time to time pursuant to Section 2.20 and (c) any  reduction or increase in such  amount from time  to time  pursuant to assignments  by or to such Lender  pursuant  to  Section 9.04; provided that at  no time  shall  the  Revolving  Credit Exposure  of  any  Lender  exceed its Commitment.                 “Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.),  as amended from time to time, and any successor statute.               “Communications” means,  collectively,  any  notice,  demand,  communication,  information, document or other material provided by or on behalf of any Loan Party pursuant to any Loan  Document or the transactions contemplated therein which is distributed by the Administrative Agent, any  Lender or the Issuing Bank by means of electronic communications pursuant to Section 8.03(c), including  through an Approved Electronic Platform.               “Company” means Materion Corporation, an Ohio corporation.               “Computation Date” is defined in Section 2.04.               “Consolidated  EBITDA”  means  Consolidated  Net  Income plus,  to  the  extent deducted  from  revenues  in  determining  Consolidated  Net  Income,  (a) Consolidated  Interest  Expense,  (b) Consolidated  Tax  Expense,  (c) depreciation,  (d) amortization,  (e) depletion  expense  and  (f) nonrecurring  losses  incurred  other  than  in  the  ordinary  course  of  business, minus,  to  the  extent  included in Consolidated Net Income,  nonrecurring gains  realized  other than in the ordinary course of  business, all calculated for the Company and its Subsidiaries on a consolidated basis.                 “Consolidated  Funded  Debt”  means  all  Indebtedness  for  borrowed  money  and  Capitalized Leases, including, without limitation, current, long-term and Subordinated Indebtedness, for  the Company and its Subsidiaries on a consolidated basis; provided that, for purposes of this definition,  obligations  under  the  following  will  not  be  considered  in  calculating  Consolidated  Funded  Debt:   (a) obligations  under Swap Agreements,  (b) Permitted Precious  Metals  Agreements  (up to a  maximum  outstanding amount of $600,000,000), (c) the Beryllium Contracts, and (d) Indebtedness under any Sale  and Leaseback Transaction.               “Consolidated  Interest  Expense”  means,  with  reference  to  any  period,  the  interest  expense of the Company and its Subsidiaries calculated on a consolidated basis for such period (but not  including any up-front fees paid in connection with this Agreement); provided, that notwithstanding the  foregoing, for purposes of this Agreement, any lease (or similar arrangement) that would constitute an  “operating  lease”  under  GAAP  as  in  effect  on  December  31,  2015  (or  would  have  constituted an  “operating lease” had such lease or similar arrangement been in effect on such date) shall constitute an  “operating  lease”  hereunder  and  any  payments  owed  thereunder  shall  not  constitute  or  be  included  in  interest expense.               “Consolidated Net Income” means, with reference to any period, the net income (or loss)  of the Company and its Subsidiaries calculated on a consolidated basis for such period.               “Consolidated Net Worth” means, on any date, all amounts that would be included under  stockholders’ equity on a consolidated balance sheet of the Company and its consolidated Subsidiaries, as  determined on a consolidated basis in accordance with GAAP.                                          8    

 

               “Consolidated Tax Expense” means, with reference to any period, the tax expense of the  Company and its Subsidiaries calculated on a consolidated basis for such period.               “Consolidated  Total  Assets”  means,  as  of  the  date  of  any  determination  thereof,  total  assets of the Company and its Subsidiaries calculated in accordance with GAAP on a consolidated basis  as of such date.               “Contingent Obligation” of a Person means any agreement, undertaking or arrangement  by which such Person assumes, guarantees, endorses, contingently agrees to purchase or provide funds for  the  payment of, or otherwise becomes or is contingently liable  upon, the obligation or liability of any  other Person, or agrees to maintain the net worth or working capital or other financial condition of any  other  Person,  or  otherwise  assures  any  creditor  of  such  other  Person  against  loss,  including,  without  limitation, any comfort letter, operating agreement, take or pay contract or the obligations of any such  Person as general partner of a partnership with respect to the liabilities of the partnership.               “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.               “Co-Syndication  Agent”  means each  of Wells  Fargo  Bank,  National  Association  and  Bank of America, N.A. in its capacity as co-syndication agent for the credit facility evidenced by this  Agreement.               “Country Risk Event”  means:               (i)   any law or action by any Governmental Authority in any Borrower’s or Letter of  Credit beneficiary’s country which has the effect of:                     (a)   changing  the  obligations  under  the  relevant  Letter  of  Credit,  this              Agreement  or  any  of  the  other  Loan  Documents  as  originally  agreed  or  otherwise              creating any additional liability, cost or expense to the Issuing Bank, the Lenders or the              Administrative Agent,                     (b)   changing the ownership or control by such Borrower or Letter of Credit              beneficiary of its business, or                     (c)   preventing or restricting the conversion into or transfer of the applicable              Agreed Currency;               (ii)  force majeure; or               (iii) any similar event   which, in relation to (i), (ii) and (iii), directly or indirectly, prevents or restricts the payment or transfer of  any  amounts  owing  under  the  relevant  Letter  of  Credit  in  the applicable  Agreed  Currency  to  the  Administrative Agent or the Issuing Bank and freely available to the Administrative Agent or the Issuing  Bank.               “Covered Entity” means any of the following:                                          9    

 

               (i)   a “covered entity” as that term is defined in, and interpreted in accordance with,        12 C.F.R. § 252.82(b);               (ii)  a “covered bank” as that term is defined in, and interpreted in accordance with,        12 C.F.R. § 47.3(b); or               (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12        C.F.R. § 382.2(b).               “Covered Party” has the meaning assigned to it in Section 9.19.               “Credit Event” means a Borrowing, the issuance, amendment or extension of a Letter of  Credit, an LC Disbursement or any of the foregoing.               “Credit Party” means the Administrative Agent, the Issuing Bank, the Swingline Lender  or any other Lender.               “CRR” means the Regulation (EU) No 575/2013 of the European Parliament and of the  Council  of  26  June  2013  on  prudential  requirements  for  credit  institutions  and  investment  firms  and  amending Regulation (EU) No 648/2012.               “Default” means any event or condition which constitutes an Event of Default or which  upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.               “Default  Right”  has  the  meaning  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.               “Defaulting Lender” means 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  any  Credit  Party  any  other  amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies  the  Administrative  Agent  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 Company or any Credit Party in writing, or has  made a public statement to the effect, that it does not intend or expect to comply with any of its funding  obligations under this Agreement (unless such writing or public statement indicates that such position is  based on such Lender’s good faith determination that a condition precedent (specifically identified and  including the particular default, if any) to funding a Loan under this Agreement cannot be satisfied) or  generally  under  other  agreements  in  which  it  commits  to  extend  credit,  (c) has  failed,  within  three (3) Business Days after request by a Credit Party, acting in good faith, to provide a certification in  writing  from  an  authorized  officer  of  such  Lender  that  it  will  comply  with  its  obligations  (and  is  financially able to meet such obligations as of the date of certification) to fund prospective Loans and  participations in then outstanding Letters of Credit and Swingline Loans under this Agreement, provided  that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon such Credit Party’s  receipt  of  such  certification  in  form  and  substance  satisfactory  to  it  and  the  Administrative  Agent,  or  (d) has become the subject of (i) a Bankruptcy Event or (ii) a Bail-In Action.               “Disqualified Institution” means (a) any entity specifically designated by the Company as  a  “Disqualified  Institution”  in  writing  and  delivered  to  the  Administrative  Agent  in  accordance  with  Section  9.01  prior  to  the  Effective  Date,  (b)  any  other  entity  that  is reasonably  determined  by  the  Company to be a competitor of the Company or its Subsidiaries and which is specifically identified in a                                         10    

 

   written  supplement  to  the  list  of  “Disqualified  Institutions”,  which  supplement  shall  become  effective  three (3) Business Days after delivery thereof to the Administrative Agent and the Lenders in accordance  with Section 9.01 and (c) in the case of the foregoing clauses (a) and (b), any of such entities’ Affiliates to  the  extent  such  Affiliates  (x) are  clearly  identifiable  as Affiliates  of  such  entities  based  solely  on  the  similarity of such Affiliates’ and such entities’ names and (y) are not bona fide debt investment funds.  It  is understood and agreed that (i) any supplement to the list of Persons that are Disqualified Institutions  contemplated by the foregoing clause (b) shall not apply retroactively to disqualify any Persons that have  previously acquired an assignment or participation interest in the Loans (but solely with respect to such  Loans),  (ii)  the  Administrative  Agent  shall  have  no  responsibility  or  liability  to  determine  or  monitor  whether any Lender or potential Lender is a Disqualified Institution, (iii) the Company’s failure to deliver  such list (or supplement thereto) in accordance with Section 9.01 shall render such list (or supplement)  not  received  and  not  effective  and  (iv)  “Disqualified  Institution”  shall  exclude  any  Person  that  the  Company has designated as no longer being a “Disqualified Institution” by written notice delivered to the  Administrative Agent from time to time in accordance with Section 9.01.               “Documentation  Agent”  means  KeyBank  National  Association in  its  capacity  as  documentation agent for the credit facility evidenced by this Agreement.               “Dollar  Amount” of  any  amount  of  any  currency  means,  at  the  time  of  determination  thereof, (a) if such  amount is expressed in Dollars,  such  amount, (b) if such amount is expressed in a  Foreign Currency, the equivalent of such amount in Dollars determined by using the rate of exchange for  the  purchase  of  Dollars with  such  Foreign  Currency last  provided  (either  by  publication  or  otherwise  provided to the Administrative Agent) by the applicable Reuters source on the Business Day (New York  City time) immediately preceding the date of determination or if such service ceases to be available or  ceases to provide a rate of exchange for the purchase of Dollars with such Foreign Currency, as provided  by such other publicly available information service which provides that rate of exchange at such time in  place of Reuters chosen by the Administrative Agent in its sole discretion (or if such service ceases to be  available or  ceases  to  provide  such  rate  of  exchange, the  equivalent  of  such  amount  in  Dollars  as  determined by the Administrative Agent using any method of determination it deems appropriate in its  sole  discretion) and  (c)  if  such  amount  is  denominated  in  any  other  currency,  the  equivalent  of  such  amount  in  Dollars  as  determined  by  the  Administrative  Agent  using  any  method  of  determination  it  deems appropriate in its sole discretion.               “Dollars” or “$” refers to lawful money of the United States of America.               “Domestic  Collateral  Documents”  means,  collectively,  the  Domestic  Security  Agreement,  the  Mortgages  and  all  other  agreements,  instruments  and  documents  entered  into  by any  Domestic Loan Party in connection with this Agreement that are intended to create, perfect or evidence  Liens to secure the Secured Obligations.               “Domestic Loan Party” means the Company and each Domestic Subsidiary Guarantor.               “Domestic Security Agreement” means that certain Third Amended and Restated Pledge  and  Security  Agreement  (including  any  and  all  supplements  thereto),  dated  as  of  the  Effective  Date,  between the Domestic Loan Parties and the Administrative Agent, for the benefit of the Administrative  Agent and the other Holders of Secured Obligations, and any other pledge or security agreement entered  into, after the date of this Agreement by any other Domestic Loan Party (as required by this Agreement or  any  other  Loan  Document),  or  any  other  Person,  as  the  same  may  be  amended,  restated  or  otherwise  modified from time to time.                                          11    

 

               “Domestic  Subsidiary”  means  a  Subsidiary  organized  under  the  laws  of  a  jurisdiction  located in the United States of America.               “Domestic  Subsidiary  Guarantor”  means  each  Wholly-Owned  Material  Domestic  Subsidiary (other than Foreign Subsidiary Holding Companies) that is party to the Subsidiary Guaranty  and  the  Domestic  Security  Agreement  (in  each  case  including  pursuant  to  a  joinder  or  supplement  thereto).               “DQ List” has the meaning assigned to such term in Section 9.04(e)(iv).               “Dutch  Borrower”  means  Materion  Netherlands  B.  V.  (f/k/a  Materion  Advanced  Materials  Technologies  and  Services  Netherlands  B.V.),  a besloten  vennootschap  met  beperkte  aansprakelijkheid incorporated  under  the  laws  of  the  Netherlands  having  its  corporate  seat  (statutaire  zetel) in Amsterdam, the Netherlands.               “Dutch  Collateral  Documents” means  each  pledge  agreement,  security  agreement,  mortgage or other collateral agreement that is entered into by any Dutch Subsidiary Guarantor in favor of  the  Administrative  Agent,  in  each  case,  in  form  and  substance  reasonably  satisfactory  to  the  Administrative  Agent  and  entered  into  pursuant  to  the  terms  of  this  Agreement  or  any  other  Loan  Document (including Section 5.09).               “Dutch Financial Supervision Act” means the Dutch Financial Supervision Act (Wet op  het financieel toezicht), as amended from time to time.               “Dutch Loan Party” means any Loan Party established under the laws of the Netherlands.               “Dutch  Non-Public  Lender”  means:  (i) until  the  publication  of  an  interpretation  of  “public” as referred to in the CRR by the competent authority/ies:  an entity which (x) assumes existing  rights and/or obligations vis-à-vis a Borrower organized under the laws of the Netherlands, the value of  which  is  at least €100,000 (or its  equivalent in another currency), (y) provides repayable funds  for an  initial amount of at least €100,000 (or its equivalent in another currency) or (z) otherwise qualifies as not  forming part of the public; and (ii) as soon as the interpretation of the term “public” as referred to in the  CRR has been published by the relevant authority/ies: an entity which is not considered to form part of  the public on the basis of such interpretation.               “Dutch Security Agreements” means, collectively, (i) the Dutch Share Pledge and (ii) any  other pledge agreement or mortgage agreement that is governed by Dutch law and that is entered into by  any  Loan  Party  in  favor  of  the  Administrative  Agent,  in  each  case,  in  form  and  substance  reasonably  satisfactory to the Administrative Agent and entered into pursuant to the terms of this Agreement or any  other Loan Document (including Section 5.09).               “Dutch  Share  Pledge”  means  the  Dutch  law governed  deed of pledge  on shares  in the  capital of the Dutch Borrower, dated 29 November 2007 and made among Materion Advanced Materials  Technologies and  Services  Inc.  (formerly  known  as  William  Advanced  Materials  Inc.)  as  pledgor,  the  Administrative Agent as pledgee and the Dutch Borrower as company.               “Dutch Subsidiary” means any Subsidiary established under the laws of the Netherlands.               “Dutch  Subsidiary  Guarantor”  means  each  Wholly-Owned  Material  Dutch  Subsidiary  that is party to the Subsidiary Guaranty and certain Dutch Collateral Documents (in each case including  pursuant to a joinder or supplement thereto).                                         12    

 

               “ECP”  means  an  “eligible  contract  participant”  as  defined  in  Section  1(a)(18)  of  the  Commodity Exchange Act or any regulations promulgated thereunder and the applicable rules issued by  the Commodity Futures Trading Commission and/or the SEC.               “EEA Financial Institution”  means  (a) any institution established in any EEA Member  Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in  an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or  (c)  any  institution  established  in  an  EEA  Member  Country  which  is  a  subsidiary  of  an  institution  described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.               “EEA  Member  Country”  means  any  of  the  member  states  of  the  European  Union,  Iceland, Liechtenstein, and Norway.               “EEA  Resolution  Authority”  means  any  public  administrative authority  or  any  Person  entrusted  with  public  administrative  authority  of  any  EEA  Member  Country  (including  any  delegee)  having responsibility for the resolution of any EEA Financial Institution.               “Effective  Date”  means  the  date  on  which  the  conditions  specified  in  Section 4.01  are  satisfied (or waived in accordance with Section 9.02).               “Electronic  Signature”  means  an  electronic  sound,  symbol,  or  process  attached  to,  or  associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or  accept such contract or record.               “Eligible Foreign Subsidiary” means any Foreign Subsidiary that is approved from time  to time by the Administrative Agent and each of the Lenders, which approval shall not be unreasonably  withheld.               “Environmental  Laws”  means  all  laws,  rules,  regulations,  codes,  ordinances,  orders,  decrees,  judgments,  injunctions  or  binding  agreements  issued,  promulgated  or  entered  into  by  any  Governmental Authority, relating in any way to the environment, preservation or reclamation of natural  resources or the management, release or threatened release of any Hazardous Material.               “Environmental  Liability”  means  any  liability,  contingent  or  otherwise  (including  any  liability  for  damages,  costs  of  environmental  remediation,  fines,  penalties  or  indemnities),  of  the  Company  or  any  Subsidiary  directly  or  indirectly  resulting  from  or  based  upon  (a) violation  of  any  Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any  Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any  Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement  pursuant to which liability is assumed or imposed with respect to any of the foregoing.               “Equity  Interests”  means  shares  of  capital  stock,  partnership  interests,  membership  interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in  a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any  such equity interest.               “ERISA”  means  the  Employee  Retirement  Income  Security  Act  of  1974,  as  amended  from time to time.               “ERISA  Affiliate”  means  any  trade  or  business  (whether  or not  incorporated)  that,  together with the Company, is treated as a single employer under Section 414(b) or (c) of the Code or,                                         13    

 

   solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer  under Section 414 of the Code.               “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA  or  the  regulations  issued  thereunder  with  respect  to  a  Plan  (other  than  an  event  for  which  the  30-day  notice  period  is  waived);  (b) the  existence  with  respect  to  any  Plan  of  an  “accumulated  funding  deficiency”  (as defined in Section 412 of the  Code or Section 302 of ERISA), whether or not waived;  (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a  waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the Company or  any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any  Plan; (e) the receipt by the Company or any ERISA Affiliate from the PBGC or a plan administrator of  any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any  Plan; (f) the incurrence by the Company or any of its ERISA Affiliates of any liability with respect to the  withdrawal  or  partial  withdrawal  of  the  Company  or  any  of  its  ERISA  Affiliates  from  any  Plan  or  Multiemployer  Plan;  or  (g) the  receipt  by  the  Company  or  any  ERISA  Affiliate  of  any  notice,  or  the  receipt by any Multiemployer Plan from the Company or any ERISA Affiliate of any notice, concerning  the  imposition  upon  the  Company  or  any  of  its  ERISA  Affiliates  of  Withdrawal  Liability  or  a  determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the  meaning of Title IV of ERISA.               “EU” means the European Union.               “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.               “euro”  and/or  “€”  means  the  single  currency  of  the  participating  member  states  of the  EU.               “Eurocurrency”  when  used in reference  to a  currency means  an  Agreed Currency and,  when used in reference to any Loan or Borrowing, means that such Loan, or the Loans comprising such  Borrowing, bears interest at a rate determined by reference to the Adjusted LIBO Rate.               “Eurocurrency  Payment  Office”  of  the  Administrative  Agent  means,  for  each  Foreign  Currency,  the  office,  branch,  affiliate  or  correspondent  bank  of  the  Administrative  Agent  for  such  currency as specified from time to time by the Administrative Agent to the Company and each Lender.               “Event of Default” has the meaning assigned to such term in Section 7.01.               “Excluded  Assets”  means:  (i)  any  fee-owned  real  property  that  is  not  real  mining  Property and all leasehold interests in real property, (ii) any “intent-to-use” application for registration of  a trademark filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, prior to the filing of a  “Statement  of  Use”  pursuant  to  Section  1(d)  of  the  Lanham  Act  of  an  “Amendment  to  Allege  Use”  pursuant  to  Section 1(c) of  the  Lanham  Act  with respect  thereto,  solely  to  the  extent,  if  any,  that and  solely during the period, if any, in which, the grant of a security interest therein would impair the validity  or  enforceability  of  any  registration  that  issues  from  such  intent-to-use  application  under  applicable  federal law, (iii) assets in respect of which pledges and security interests are prohibited by applicable U.S.  law, rule or regulation or agreements with any U.S. governmental authority (other than to the extent that  such prohibition would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408, 9-409 or other  applicable provisions of the UCC of any relevant jurisdiction or any other applicable law); provided that,  immediately  upon  the  ineffectiveness,  lapse  or  termination  of  any  such  prohibitions,  such  assets  shall  automatically cease to constitute Excluded Assets, (iv) equity interests in any entity (other than Wholly-                                        14    

 

   Owned Subsidiaries) to the extent pledges thereof are not permitted by customary terms in such entity’s  organizational  or  joint  venture  documents  (unless  any  such  restriction  would  be  rendered  ineffective  pursuant to Sections 9-406, 9-407, 9-408, 9-409 or other applicable provisions of the UCC of any relevant  jurisdiction  or  any  other  applicable  law),  (v)  assets  subject  to  certificates  of  title  (other  than  motor  vehicles subject to certificates of title, provided that perfection of security interests in such motor vehicles  shall be limited to the filing of UCC financing statements), letter of credit rights (other than to the extent  the  security  interest  in  such  letter  of  credit  right  may  be  perfected  by  the  filing  of  UCC  financing  statements) with a value  of less than $1,000,000 and commercial tort claims  with a  value  of less than  $1,000,000,  (vi)  any  lease,  license  or  other  agreement  or  any  property  subject  to  a  purchase  money  security  interest  or  similar  arrangement  to  the  extent  that  a  grant  of  a  security  interest  therein  would  violate or invalidate such lease, license or agreement or purchase money arrangement or create a right of  termination in favor of any other party thereto (other than the Company or a Subsidiary Guarantor) (other  than (1) proceeds and receivables thereof, the assignment of which is expressly deemed effective under  the UCC notwithstanding such prohibition, (2) to the extent that any such term has been waived or (3) to  the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408, 9- 409 or other applicable provisions of the UCC of any relevant jurisdiction or any other applicable law);  provided that, immediately upon the ineffectiveness, lapse or termination of any such term, such assets  shall automatically cease to constitute Excluded Assets, (vii) trust accounts, payroll accounts, custodial  accounts,  escrow  accounts  and  other  similar  deposit  or  securities  accounts,  and  deposit  or  securities  accounts having a balance of less than $250,000 individually, and less than $1,000,000 in the aggregate  for all such accounts, (viii) Precious Metals and (ix) those assets as to which the Administrative Agent  and the Company reasonably agree that the cost of obtaining such a security interest or perfection thereof  are  excessive  in  relation  to  the  benefit  to  the  Lenders  of  the  security  to  be  afforded  thereby.   Notwithstanding the foregoing, Excluded Assets shall not include any proceeds, products, substitutions or  replacements  of Excluded Assets  (unless  such proceeds,  products,  substitutions or replacements  would  otherwise constitute Excluded Assets).               “Excluded Swap Obligation” means, with respect to any Loan Party, any Specified 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 Specified Swap Obligation (or any Guarantee  thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the  Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by  virtue of such Loan Party’s failure for any reason to constitute an ECP at the time the Guarantee of such  Loan Party or the grant of such security interest becomes or would become effective with respect to such  Specified Swap Obligation.  If a Specified Swap Obligation arises under a master agreement governing  more than one swap, such exclusion shall apply only to the portion of such Specified Swap Obligation  that is attributable to swaps for which such Guarantee or security interest is or becomes illegal.               “Excluded  Taxes”  means  any  of  the  following  Taxes  imposed  on  or  with  respect  to  a  Recipient or required to be withheld or deducted from a payment to a Recipient, (a) income or franchise  Taxes imposed on (or measured by) its net income (however denominated) (i) by the United States of  America or any other Governmental Authority, including the jurisdiction under the laws of which such  Recipient is organized (or any political subdivision thereof) or in which its principal office is located or,  in  the  case  of  any  Lender,  in  which  its  applicable  lending  office  is  located  or  (ii)  that  are  Other  Connection Taxes, (b) any branch profits taxes imposed by the United States of America or any other  jurisdiction described in clause (a) above, (c) in the case of a Lender (other than an assignee pursuant to a  request by the Company under Section 2.19(b)), any withholding Tax that is imposed on amounts payable  to  such  Lender  resulting  from  any  law  in  effect  on  the  date such  Lender  becomes  a  party  to  this  Agreement (or designates a new lending office), except to the extent that such Lender (or its assignor, if  any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional  amounts from the Company with respect to such withholding Tax pursuant to Section 2.17(a), (d) Taxes                                         15    

 

   attributable to such Recipient’s failure to comply with Section 2.17(e) or (h), and (e) any Taxes imposed  under FATCA.               “Existing Credit Agreement” is defined in the recitals hereof.               “Existing Letters of Credit” is defined in Section 2.06(a).               “Existing Loans” is defined in Section 2.01.               “Existing Maturity Date” is defined in Section 2.25(a).               “Extending Lender” is defined in Section 2.25(b).               “Extension Date” is defined in Section 2.25(a).               “FATCA”  means Sections 1471  through  1474  of  the  Code,  as  of  the  date  of  this  Agreement  (or  any  amended  or  successor  version  that  is  substantively  comparable  and  not  materially  more onerous to comply with), any current or future regulations or official interpretations thereof, any  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 Effective Rate” means, for any day, the rate calculated by the NYFRB  based on such day’s federal funds transactions by depositary institutions, as determined in such manner as  the NYFRB shall set forth on its public website from time to time, and published on the next succeeding  Business  Day  by  the  NYFRB  as  the  effective  federal  funds  rate; provided that  if  the  Federal  Funds  Effective Rate as so determined would be less than zero, such rate shall be deemed to be zero for the  purposes of this Agreement.               “Financial  Officer”  means  the  chief  financial  officer,  principal  accounting  officer,  treasurer or controller of the Company.               “Financials”  means  the  annual  or  quarterly  financial  statements,  and  accompanying  certificates and other documents, of the Company and its Subsidiaries required to be delivered pursuant to  Section 5.01(a) or 5.01(b).                 “First Tier Foreign Subsidiary” means each Foreign Subsidiary with respect to which any  one or more of the Company and its Domestic Subsidiaries directly owns or Controls more than 50% of  such Foreign Subsidiary’s issued and outstanding Equity Interests.               “Fiscal Quarter” means any of the quarterly accounting periods of the Company.               “Fiscal  Year”  means  any  of  the  annual  accounting  periods  of the  Company  ending  on  December 31st of each year.               “Foreign Currencies” means Agreed Currencies other than Dollars.               “Foreign Currency LC Exposure” means, at any time, the sum of (a) the Dollar Amount  of the aggregate undrawn and unexpired amount of all outstanding Foreign Currency Letters of Credit at  such time plus (b) the aggregate principal Dollar Amount of all LC Disbursements in respect of Foreign  Currency Letters of Credit that have not yet been reimbursed at such time.                                         16    

 

               “Foreign Currency Letter of Credit” means a Letter of Credit denominated in a Foreign  Currency.               “Foreign Currency Sublimit” means $30,000,000.               “Foreign Lender” means (a) if the applicable Borrower is a U.S. Person, a Lender that is  not a U.S. Person, and (b) if the applicable 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  such  Borrower  is  resident  for  tax  purposes.               “Foreign  Secured  Obligations”  means  all  Obligations  of  the  Foreign  Subsidiary  Borrowers under this Agreement.               “Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary.               “Foreign Subsidiary Borrower” means (i) the Dutch Borrower and (ii) any other Eligible  Foreign Subsidiary that becomes a Foreign Subsidiary Borrower pursuant to Section 2.23 and that has not  ceased to be a Foreign Subsidiary Borrower pursuant to such Section.               “Foreign Subsidiary Borrower Sublimit” means $30,000,000.               “Foreign Subsidiary Holding Company” means any Domestic Subsidiary substantially all  of the assets of which consist of Equity Interests of any Foreign Subsidiary.               “GAAP”  means  generally  accepted  accounting  principles  in  the  United  States  of  America.               “Governmental Authority” means the government of the United States of America, any  other  nation  or  any  political  subdivision  thereof,  whether  state  or  local,  and  any  agency,  authority,  instrumentality,  regulatory  body,  court,  central  bank  or  other  entity  exercising  executive,  legislative,  judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.               “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or  otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness  or  other  obligation  of  any  other  Person  (the  “primary  obligor”)  in  any  manner,  whether  directly  or  indirectly,  and  including  any  obligation  of  the  guarantor,  direct  or  indirect,  (a) to  purchase  or  pay  (or  advance  or  supply  funds  for  the  purchase  or  payment  of)  such  Indebtedness  or  other  obligation  or  to  purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to  purchase  or  lease  property,  securities  or  services  for  the  purpose  of  assuring  the  owner  of  such  Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or  any other financial statement condition or liquidity of the  primary obligor so as to enable the  primary  obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of  credit  or  letter  of  guaranty  issued  to  support  such  Indebtedness  or  obligation; provided,  that  the  term  Guarantee shall not include endorsements for collection or deposit in the ordinary course of business.               “Hazardous Materials”  means  all explosive  or radioactive  substances or wastes and  all  hazardous or toxic  substances,  wastes  or other pollutants, including petroleum  or petroleum distillates,  asbestos  or  asbestos  containing  materials,  polychlorinated  biphenyls,  radon  gas,  infectious  or  medical  wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.                                          17    

 

               “Holders  of  Secured  Obligations”  means  the  holders  of  the  Secured  Obligations  from  time  to  time  and  shall  include  (i) each  Lender  and  the  Issuing  Bank  in  respect  of  its  Loans  and  LC  Exposure respectively, (ii) the Administrative Agent, the Issuing Bank and the Lenders in respect of all  other present and future obligations and liabilities of the Company and each Subsidiary of every type and  description arising under or in connection with this Agreement or any other Loan Document, (iii) each  Lender and affiliate of such Lender in respect of Swap Agreements and Banking Services Agreements  entered into  with  such  Person  by  the  Company  or  any  Subsidiary,  (iv) each  indemnified  party  under  Section 9.03 in respect of the obligations and liabilities of the Borrowers to such Person hereunder and  under  the  other  Loan  Documents,  and  (v) their  respective  successors  and  (in  the  case  of  a  Lender,  permitted) transferees and assigns.               “Hostile  Acquisition”  means  (a) the  Acquisition  of  the  Equity  Interests  of  a  Person  through a tender offer or similar solicitation of the owners of such Equity Interests which has not been  approved (prior to such Acquisition) by the board of directors (or any other applicable governing body) of  such Person or by similar action if such Person is not a corporation and (b) any such Acquisition as to  which such approval has been withdrawn.               “IBA” has the meaning assigned to such term in Section 1.06.               “Impacted  Interest  Period”  has  the  meaning  assigned  to  such  term  in  the  definition  of  “LIBO Rate”.               “Increasing Lender” has the meaning assigned to such term in Section 2.20.               “Incremental Term Loan” has the meaning assigned to such term in Section 2.20.               “Incremental  Term  Loan  Amendment”  has  the  meaning  assigned  to  such  term  in  Section 2.20.               “Indebtedness” of a Person means, without duplication, such Person’s (a) obligations for  borrowed money, (b) obligations representing the deferred purchase price of Property or services (other  than  accounts  payable  arising  in  the  ordinary  course  of  such  Person’s  business  payable  on  terms  customary in the trade), (c) obligations, whether or not assumed, secured by Liens or payable out of the  proceeds or production from Property now or hereafter owned or acquired by such Person, (d) obligations  which are evidenced by notes, acceptances, or other similar instruments, (e) obligations of such Person to  purchase  securities  or  other  Property  arising  out  of  or  in  connection  with  the  sale  of  the  same  or  substantially  similar  securities  or  Property  or  any  other  Off-Balance  Sheet  Liabilities,  (f) Capitalized  Lease  Obligations,  (g) Contingent  Obligations  for  which  the  underlying  transaction  constitutes  Indebtedness  under  this  definition,  (h) the  stated  face  amount  of  all  letters  of  credit  or  bankers’  acceptances issued for the account of such Person and, without duplication, all reimbursement obligations  with respect to such issued letters of credit, (i) any and all obligations, contingent or otherwise, whether  now  existing  or  hereafter  arising,  under  or  in  connection  with  Swap  Agreements,  including,  without  limitation,  Net  Mark-to-Market  Exposure,  and  (j) obligations  of  such Person  under  any  Sale  and  Leaseback Transaction.               “Indemnified Taxes” means Taxes that are imposed on or with respect to any payment  made by a Loan Party hereunder or any other Loan Document other than Excluded Taxes or Other Taxes.               “Indemnitee” has the meaning assigned to such term in Section 9.03(b).               “Ineligible Institution” has the meaning assigned to such term in Section 9.04(b).                                         18    

 

               “Information” has the meaning assigned to such term in Section 9.12.               “Information  Memorandum”  means  the  Confidential  Information  Memorandum  dated  August 2019 relating to the Company and the Transactions.               “Insolvency  Regulation”  shall  mean the  Regulation  EU  2015/848  of  the  European  Parliament and of the Council of 20 May 2015 on insolvency proceedings (recast).               “Intercreditor Agreements”  means  (a) that  certain  Second  Amended  and  Restated  Intercreditor Agreement dated as of August 27, 2019 by and between the Administrative Agent, on behalf  of itself and the Lenders, and Bank of Montreal, on behalf of itself and as collateral agent on behalf of  other  consignors  of  Precious  Metal  and  (b) every  other  intercreditor  agreement  related  to  the  Loans  entered  into  by  the  Administrative  Agent,  on  behalf  of  itself  and  the  other  Lenders,  on  or  after  the  Effective  Date,  in  each  case,  as  amended,  restated,  supplemented  or  otherwise  modified  from  time  to  time.               “Interest  Coverage  Ratio”  means,  the  ratio,  determined  as  of  the  end  of  each  Fiscal  Quarter  of  the  Company  for  the  then  most-recently  ended  four  Fiscal  Quarters  of  (a) Consolidated  EBITDA to (b) Consolidated Interest Expense.               “Interest  Election  Request” means  a  request  by  the  applicable  Borrower  to  convert  or  continue a Borrowing in accordance with Section 2.08, which shall be substantially in the form attached  hereto as Exhibit G-2 or any other form approved by the Administrative Agent.               “Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline  Loan), the last day of each March, June, September and December and the Maturity Date, (b) with respect  to any Eurocurrency Loan, the last day of each Interest Period applicable to the Borrowing of which such  Loan is a part and, in the case of a Eurocurrency Borrowing with an Interest Period of more than three  months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three  months’ duration after the first day of such Interest Period and the Maturity Date and (c) with respect to  any Swingline Loan, the day that such Loan is required to be repaid and the Maturity Date.               “Interest  Period”  means  with  respect  to  any  Eurocurrency  Borrowing,  the  period  commencing  on  the  date  of  such  Borrowing  and  ending  on  the  numerically  corresponding  day  in  the  calendar  month  that  is  one,  two,  three  or  six  months  thereafter,  as  the  applicable  Borrower  (or  the  Company on behalf of the applicable Borrower) may elect; provided, that (i) if any Interest Period would  end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding  Business Day unless such next succeeding Business Day would fall in the next calendar month, in which  case  such  Interest  Period  shall  end  on  the  next  preceding  Business  Day  and  (ii) any  Interest  Period  pertaining to a Eurocurrency Borrowing that commences on the last Business Day of a calendar month (or  on a day for which there is no numerically corresponding day in the last calendar month of such Interest  Period)  shall  end  on  the  last  Business  Day  of  the  last  calendar  month  of  such  Interest  Period.   For  purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and  thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.               “Interpolated   Rate” means,  at  any  time,  for  any  Interest  Period,  the  rate per  annum  (rounded  to  the  same  number  of  decimal  places  as  the  LIBO  Screen  Rate)  determined  by  the  Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be  equal to the rate that results from interpolating on a linear basis between: (a) the LIBO Screen Rate for the  longest period (for which the LIBO Screen Rate is available for the applicable currency) that is shorter  than the Impacted Interest Period; and (b) the LIBO Screen Rate for the shortest period (for which the                                         19    

 

   LIBO Screen Rate is available for the applicable currency) that exceeds the Impacted Interest Period, in  each case, at such time; provided that if any Interpolated Rate shall be less than zero, such rate shall be  deemed to be zero for the purposes of this Agreement.               “Investment” means, as to any Person, any direct or indirect acquisition or investment by  such  Person,  whether  by  means  of  (a) the  purchase  or  other  acquisition  of  Equity  Interests  of  another  Person, or (b) a loan, advance or capital contribution to, Guarantee or assumption of Indebtedness of, or  purchase  or  other  acquisition  of  any  other  Indebtedness  or  equity  participation  or  interest  in,  another  Person,  including  any  partnership  or  joint  venture  interest  in  such  other  Person  and  any  arrangement  pursuant to which such investing Person Guarantees Indebtedness of such other Person, but excluding any  Acquisition.               “IRS” means the United States Internal Revenue Service.               “Issuing  Bank”  means  JPMorgan  Chase  Bank,  N.A.,  in  its  capacity  as  the  issuer  of  Letters  of  Credit  hereunder,  and  its  successors  in  such  capacity  as  provided  in  Section 2.06(i).   The  Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of  the Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect to  Letters of Credit issued by such Affiliate.               “Japanese Yen” and/or “JPY” means the lawful currency of Japan.               “LC Collateral Account” has the meaning assigned to such term in Section 2.06(j).               “LC Disbursement” means a payment made by the Issuing Bank pursuant to a Letter of  Credit.               “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn Dollar Amount  of  all  outstanding  Letters  of  Credit  at  such  time plus (b) the  aggregate  Dollar  Amount  of  all  LC  Disbursements that have not yet been reimbursed by or on behalf of the Company at such time.  The LC  Exposure of any Lender at any time shall be its Applicable Percentage of the total LC 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  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) or Rule 3.13  or  Rule 3.14  of  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) 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 Borrowers and each Lender shall remain in full force and effect until the  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.               “Lender Notice Date” is defined in Section 2.25(b).               “Lender Parent” means, with respect to any Lender, any Person as to which such Lender  is, directly or indirectly, a subsidiary.               “Lenders” means  the  Persons  listed  on Schedule  2.01 and  any  other  Person  that  shall  have become a Lender hereunder pursuant to Section 2.20 or pursuant to an Assignment and Assumption  or otherwise, other than any such Person that ceases to be a party hereto pursuant to an Assignment and                                         20    

 

   Assumption  or  otherwise.   Unless  the  context  otherwise  requires,  the  term  “Lenders”  includes  the  Swingline Lender and the Issuing Bank.               “Letter of Credit” means any letter of credit issued pursuant to this Agreement and shall  include each Existing Letter of Credit.               “Letter of Credit Agreement” has the meaning assigned to such term in Section 2.06(b).               “Leverage Ratio” means, the ratio, determined as of the end of each Fiscal Quarter of the  Company  for  the  then  most-recently  ended  four  Fiscal  Quarters  of  (a) Consolidated  Funded Debt  to  (b) Consolidated EBITDA.               “LIBO Rate” means,  with respect to any Eurocurrency Borrowing denominated in any  Agreed Currency and for any Interest Period, the LIBO Screen Rate at approximately 11:00 a.m., London  time, on the Quotation Day for such Agreed Currency; provided that if the LIBO Screen Rate shall not be  available at such time for such Interest Period (an “Impacted Interest Period”) with respect to such Agreed  Currency then the LIBO Rate shall be the Interpolated Rate.               “LIBO  Screen  Rate”  means,  for  any  day  and  time,  with  respect  to  any  Eurocurrency  Borrowing  denominated  in  any  Agreed  Currency  and  for  any  Interest  Period,  the  London  interbank  offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the  administration of such rate) for such Agreed Currency for a period equal in length to such Interest Period  as displayed on such day and time on pages LIBOR01 or LIBOR02 of the Reuters screen that displays  such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or  substitute  page  on  such  screen  that  displays  such  rate,  or  on  the  appropriate  page  of  such  other  information service that publishes such rate from time to time as selected by the Administrative Agent in  its reasonable discretion); provided that if the  LIBO  Screen Rate  as so determined  would be  less than  zero, such rate shall be deemed to be zero for the purposes of this Agreement.               “Lien”  means,  with  respect  to  any  asset,  (a) any  mortgage,  deed  of  trust, lien,  pledge,  hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor  or  a  lessor  under  any  conditional  sale  agreement,  capital  lease  or  title  retention  agreement  (or  any  financing lease having substantially the same economic effect as any of the foregoing) relating to such  asset  and  (c) in  the  case  of  securities,  any  purchase  option,  call  or  similar  right  of  a  third  party  with  respect to such securities.               “Limited  Conditionality  Acquisition”  means  any  Acquisition  permitted  under  Section  6.04(g) for which the Company has determined, in good faith, that limited conditionality is reasonably  necessary or desirable.               “Limited  Conditionality  Acquisition  Agreement”  means,  with  respect  to  any  Limited  Conditionality Acquisition, the definitive acquisition documentation in respect thereof.               “Loan Documents” means this Agreement, each Borrowing Subsidiary Agreement, each  Borrowing  Subsidiary  Termination,  any  promissory  notes  issued  pursuant  to  Section 2.10(e)  of  this  Agreement, any Letter of Credit applications, any Letter of Credit Agreement, the Collateral Documents,  the Subsidiary Guaranty, and all other agreements, instruments, documents and certificates identified in  Section 4.01  executed  and  delivered  to,  or  in  favor  of,  the  Administrative  Agent  or  any  Lenders  and  including all other pledges, powers of attorney, consents, assignments, contracts, notices, letter of credit  agreements,  intercreditor  agreements  and  all  other  written  matter  whether  heretofore,  now or  hereafter  executed by or on behalf of any Loan Party and delivered to the Administrative Agent or any Lender in                                         21    

 

   connection with this Agreement or the transactions contemplated hereby, excluding any Banking Services  Agreement or Swap Agreement.  Any reference in this Agreement or any other Loan Document to a Loan  Document shall include all appendices, exhibits or schedules thereto, and all amendments, restatements,  supplements or other modifications thereto, and shall refer to this Agreement or such Loan Document as  the same may be in effect at any and all times such reference becomes operative.               “Loan Parties” means, collectively, the Borrowers and the Subsidiary Guarantors.               “Loans”  means  the  loans  made  by  the  Lenders  to  the  Borrowers  pursuant  to  this  Agreement.               “Local  Time”  means  (i) Chicago  time  in  the  case  of  a  Loan,  Borrowing  or  LC  Disbursement  denominated  in  Dollars  and  (ii) local  time  in  the  case  of  a  Loan,  Borrowing  or  LC  Disbursement denominated in a Foreign Currency (it being understood that such local time shall mean  London, England time unless otherwise notified by the Administrative Agent).               “Margin Stock” means margin stock within the meaning of Regulations T, U and X, as  applicable.               “Material  Adverse  Effect”  means  a  material  adverse  effect  on  (a) the business,  assets,  property or financial condition of the Company and the Subsidiaries taken as a whole, (b) the ability of  the Loan Parties to perform any of their material obligations under the Loan Documents or (c) the validity  or enforceability of this Agreement or any of the other Loan Documents or the rights or remedies of the  Administrative Agent and the Lenders thereunder.               “Material  Domestic  Subsidiary”  means  each  Domestic  Subsidiary  that  is  a  Material  Subsidiary.               “Material Dutch Subsidiary” means each Dutch Subsidiary that is a Material Subsidiary.               “Material  Indebtedness”  means  any  Indebtedness  (other  than  the  Loans  and  Letters  of  Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the Company  and its Subsidiaries in an aggregate principal amount exceeding $20,000,000 (or the equivalent thereof in  currencies  other  than  Dollars).   For  purposes  of  determining  Material  Indebtedness,  the  “principal  amount” of the obligations of the Company or any Subsidiary in respect of any Swap Agreement at any  time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Company  or such Subsidiary would be required to pay if such Swap Agreement were terminated at such time.               “Material  Subsidiary”  means  each  Subsidiary  (i) which,  as  of  the  most  recent  Fiscal  Quarter  of  the  Company,  for  the  period  of  four  consecutive  Fiscal  Quarters  then  ended,  for  which  financial  statements  have  been delivered  pursuant  to  Section 5.01,  contributed greater than  ten percent  (10%) of the Company’s Consolidated EBITDA for such period or (ii) which contributed greater than ten  percent (10%) of the Company’s Consolidated Total Assets as of such date; provided that, if at any time  the aggregate amount of the Company’s Consolidated EBITDA or Company’s Consolidated Total Assets  attributable to Subsidiaries (other than Affected Foreign Subsidiaries) that are not Subsidiary Guarantors  exceeds twenty percent (20%) of the Company’s Consolidated EBITDA for any such period or twenty  percent (20%) of the Company’s Consolidated Total Assets as of the end of any such Fiscal Quarter, the  Company (or, in the event the Company has failed to do so within ten days, the Administrative Agent)  shall  designate  sufficient  Subsidiaries  (other  than  Affected  Foreign  Subsidiaries)  as  “Material  Subsidiaries”  to  eliminate  such  excess,  and  such  designated  Subsidiaries  shall  for  all  purposes  of  this  Agreement constitute Material Subsidiaries.                                         22    

 

               “Maturity  Date”  means  September  24,  2024, as  extended  (in  the case  of  each  Lender  consenting  thereto)  pursuant  to  Section  2.25; provided, however,  in  each  case,  if  such  date  is  not  a  Business Day, the Maturity Date shall be the next preceding Business Day.               “Maximum Rate” is defined in Section 9.15.               “Moody’s” means Moody’s Investors Service, Inc.               “Mortgage”  means  each  mortgage,  deed  of  trust  or  other  agreement  which  conveys  or  evidences a Lien in favor of the Administrative Agent, for the benefit of the Administrative Agent and the  Holders of Secured Obligations, on real property of a Loan Party, including any amendment, restatement,  modification or supplement thereto.               “Mortgage  Instruments”  means  such  title  reports,  ALTA  title  insurance  policies  (with  endorsements),  evidence  of  zoning  compliance,  property  insurance,  flood  certifications  and  flood  insurance,  opinions  of  counsel,  ALTA  surveys,  appraisals  (and,  if  applicable  FEMA  form  acknowledgements  of  insurance),  environmental  assessments  and  reports,  mortgage  tax  affidavits  and  declarations and other similar information and related certifications as are reasonably requested by, and in  form and substance reasonably acceptable to, the Administrative Agent from time to time.               “Multiemployer Plan” means  a multiemployer plan as  defined in Section 4001(a)(3) of  ERISA.               “Net Mark-to-Market Exposure” of a Person means, as of any date of determination, the  excess  (if  any)  of  all  unrealized  losses  over  all  unrealized  profits  of  such  Person  arising  from  Swap  Agreements.  As used in this definition, “unrealized losses” means the fair market value of the cost to  such  Person  of  replacing  such  Swap  Agreement  as  of  the  date  of  determination  (assuming  the  Swap  Agreement were to be terminated as of that date), and “unrealized profits” means the fair market value of  the gain to such Person of replacing such Swap Agreement as of the date of determination (assuming such  Swap Agreement were to be terminated as of that date).               “New  Money  Credit  Event”  means  with  respect  to  the  Issuing  Bank,  any  increase  (directly or indirectly) in the Issuing Bank’s exposure (whether by way of additional credit or banking  facilities  or  otherwise,  including  as  part  of  a  restructuring)  to  any  Borrower  or  any  Governmental  Authority in any Borrower’s or any applicable Letter of Credit beneficiary’s country occurring by reason  of (i) any law, action or requirement of any Governmental Authority in such Borrower’s or such Letter of  Credit beneficiary’s country, or (ii) any request in respect of external indebtedness of borrowers in such  Borrower’s or such Letter of Credit beneficiary’s country applicable to banks generally which conduct  business  with  such  borrowers,  in  each  case  to  the  extent  calculated  by  reference  to  the  aggregate  Revolving Credit Exposures outstanding prior to such increase.               “Non-Consenting Lender” has the meaning assigned to such term in Section 9.02(e).               “Non-Extending Lender” is defined in Section 2.25(b).               “NYFRB” means the Federal Reserve Bank of New York.               “NYFRB Rate” means, for any day, the greater of (a) the Federal Funds Effective Rate in  effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is  not a Business Day, for the immediately preceding Business Day); provided that if none of such rates are  published for any day that is a Business Day, the term “NYFRB Rate” means the rate for a federal funds                                         23    

 

   transaction quoted at 11:00 a.m., New York City time, on such day received by the Administrative Agent  from a  federal funds  broker of recognized  standing selected  by it; provided, further, that if any of the  aforesaid  rates  as  so  determined  would  be  less  than  zero,  such  rate  shall  be  deemed  to  be  zero  for  purposes of this Agreement.               “OFAC” means  the  Office  of  Foreign  Assets  Control  of  the  U.S.  Department  of  the  Treasury.               “Off-Balance Sheet Liability” of a Person means (a) any repurchase obligation or liability  of such Person with respect to accounts or notes receivable sold by such Person, (b) any indebtedness,  liability or obligation under any Sale and Leaseback Transaction to which such Person is a party which is  not a Capitalized Lease, (c) any indebtedness, liability or obligation under any so-called “synthetic lease”  transaction  entered  into  by  such  Person,  or  (d) any  indebtedness,  liability  or  obligation  arising  with  respect to any other transaction to which such Person is a party which is the functional equivalent of or  takes the place of borrowing but which does not constitute a liability on the balance sheets of such Person,  but excluding obligations with respect to Operating Leases.               “Obligations”  means  all  unpaid  principal  of  and  accrued  and  unpaid  interest  on  the  Loans, all LC Exposure, all accrued and unpaid fees and all expenses, reimbursements, indemnities and  other  obligations  and  indebtedness  (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), obligations and liabilities of the Loan Parties to any of the Lenders, the  Administrative Agent, the Issuing Bank or any indemnified party, individually or collectively, existing on  the Effective Date or arising thereafter, direct or indirect, joint or several, absolute or contingent, matured  or  unmatured,  liquidated  or  unliquidated,  secured  or  unsecured,  in  each  case,  arising  by  contract,  operation  of  law  or  otherwise,  arising  or  incurred  under  this  Agreement  or  any  of  the  other  Loan  Documents or in respect of any of the Loans made or reimbursement or other obligations incurred or any  of the Letters of Credit or other instruments at any time evidencing any thereof.               “Operating  Lease”  of  a  Person  means  any  lease  of  Property  other  than  a  Capitalized  Lease.               “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  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 Document).               “Other Taxes” means any and all present or future stamp or documentary taxes or any  other  excise  or  property  taxes,  charges  or  similar levies  arising  from  any  payment  made  hereunder  or  from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other  Loan  Document,  except  any  such  Taxes  that  are  Other  Connection Taxes  imposed  with  respect  to  an  assignment (other than an assignment made pursuant to Section 2.19(b)).               “Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight  federal  funds  and  overnight  eurodollar  borrowings  by  U.S.-managed  banking  offices  of  depository  institutions, as such composite rate shall be determined by the NYFRB as set forth on its public website  from time to time, and published on the next succeeding Business Day by the NYFRB as an overnight  bank funding rate.                                         24    

 

               “Overnight  Foreign  Currency  Rate”  means,  for  any  amount  payable  in  a  Foreign  Currency, the rate of interest per annum as reasonably determined by the Administrative Agent at which  overnight or weekend deposits in the relevant currency (or if such amount due remains unpaid for more  than three Business Days, then for such other period of time as the Administrative Agent may reasonably  elect)  for  delivery  in  immediately  available  and  freely  transferable  funds  would  be  offered  by  the  Administrative Agent to major banks in the interbank market upon request of such major banks for the  relevant currency as determined above and in an amount comparable to the unpaid principal amount of  the  related  Credit  Event,  plus  any  taxes,  levies,  imposts,  duties,  deductions,  charges  or  withholdings  imposed upon, or charged to, the Administrative Agent by any relevant correspondent bank in respect of  such amount in such relevant currency.               “Participant” has the meaning set forth in Section 9.04.               “Participant Register” has the meaning assigned to such term in Section 9.04(c)(ii).               “Patriot Act” means the USA PATRIOT Act of 2001.               “PBGC”  means  the  Pension  Benefit  Guaranty  Corporation  referred  to  and  defined  in  ERISA and any successor entity performing similar functions.               “Permitted Liens” is defined in Section 6.02.               “Permitted  Precious  Metals  Agreements”  means  precious  metals  agreements  and  arrangements (whether styled as debt, a lease, a consignment or otherwise) entered into from time to time  by  the  Company  or  any  Subsidiary,  but  only  to the  extent  that  the  aggregate  Dollar  Amount  of  the  precious metals outstanding thereunder does not exceed $600,000,000.  For purposes of this definition,  “precious metals” shall include, without limitation, gold, silver, platinum, palladium, rhodium and copper  (even though copper is not generally deemed to be a precious metal).               “Person”  means  any  natural  person,  corporation,  limited  liability  company,  trust,  joint  venture, association, company, partnership, Governmental Authority or other entity.               “Plan”  means  any  employee  pension  benefit  plan  (other  than  a  Multiemployer  Plan)  subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and  in respect of which the Company or any ERISA Affiliate is (or, if such plan were terminated, would under  Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.               “Plan Asset Regulations” means 29 CFR § 2510.3-101 et seq., as modified by Section  3(42) of ERISA, as amended from time to time.               “Pledge Subsidiary” means (i) each Domestic Subsidiary which is a Material Subsidiary  and (ii) each First Tier Foreign Subsidiary which is a Material Subsidiary.               “Pounds Sterling” means the lawful currency of the United Kingdom.               “Prime  Rate” means  the  rate  of  interest  last quoted  by  The  Wall  Street Journal  as the  “Prime Rate” in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum  interest rate published by the Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest  Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted  therein (as reasonably determined by the Administrative Agent) or any similar release by the Board (as                                          25    

 

   reasonably determined by the Administrative Agent). Each change in the Prime Rate shall be effective  from and including the date such change is publicly announced or quoted as being effective.               “Precious Metals” means precious metal and copper, any and all inventory or work-in- process that contains precious metal  or copper and any proceeds of the foregoing.               “Pro Forma Basis” means, with respect to any event, that the Company is in compliance  to  the  reasonable  satisfaction  of  the  Administrative  Agent  on  a  pro forma  basis  with  the  applicable  covenant, calculation or requirement herein recomputed as if the event with respect to which compliance  on a Pro Forma Basis is being tested had occurred on the first day of the four Fiscal Quarter period most  recently ended on or prior to such date and for which financial statements have been delivered pursuant to  Section 5.01. “Pro Forma” shall have a correlative meaning.               “Property”  of  a  Person  means  any  and  all  property,  whether  real,  personal,  tangible,  intangible,  or  mixed,  of  such  Person;  other  assets  owned  by  such  Person;  and  to  the  extent  of  such  Person’s interest therein, other assets leased or operated by such Person.               “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.               “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).               “QFC Credit Support” has the meaning assigned to it in Section 9.19.               “Quotation  Day” means,  with  respect  to  any  Eurocurrency  Borrowing  for  any  Interest  Period, (i) if the currency is Pounds Sterling, the first day of such Interest Period, (ii) if the currency is  euro, the day that is two (2) TARGET2 Days before the first day of such Interest Period, and (iii) for any  other currency, two (2) Business Days prior to the commencement of such Interest Period (unless, in each  case,  market  practice  differs  in  the  relevant  market  where  the  LIBO  Rate  for  such  currency  is  to  be  determined,  in  which  case  the  Quotation Day  will  be  determined  by  the  Administrative  Agent  in  accordance with market practice in such market (and if quotations would normally be given on more than  one day, then the Quotation Day will be the last of those days)).               “Recipient” means (a) the Administrative Agent, (b) any Lender or (c) any Issuing Bank,  as applicable.               “Reference Bank Rate” means the arithmetic mean of the rates (rounded upwards to four  decimal places)  supplied to the Administrative Agent at its request by the Reference Banks (as the case  may  be)  as  of  the  applicable  time  on the  Quotation  Day  for  Loans  in  the  applicable  currency  and  the  applicable  Interest Period as the  rate  at which the  relevant Reference Bank could borrow funds  in the  London (or other applicable) interbank market in the relevant currency and for the relevant period, were it  to do so by asking for and then accepting interbank offers in reasonable market size in that currency and  for that period.               “Reference Banks” means such banks as may be appointed by the Administrative Agent  in  consultation  with  the  Company.  No  Lender  shall  be  obligated  to  be  a  Reference  Bank  without  its  consent.               “Register” has the meaning set forth in Section 9.04.                                          26    

 

               “Regulation T” means Regulation T of the Board, as in effect from time to time and all  official rulings and interpretations thereunder or thereof.               “Regulation U” means Regulation U of the Board, as in effect from time to time and all  official rulings and interpretations thereunder or thereof.               “Regulation X” means Regulation X of the Board, as in effect from time to time and all  official rulings and interpretations thereunder or thereof.               “Related Parties” means, with respect to any specified Person, such Person’s Affiliates  and the respective directors, officers, employees, agents and advisors of such Person and such Person’s  Affiliates.               “Required Lenders” means, subject to Section 2.24, (a) at any time prior to the earlier of  the  Loans  becoming  due  and  payable  pursuant  to  Section  7.02  or the  Commitments  terminating  or  expiring,  Lenders  having  Revolving  Credit  Exposures  and  Unfunded  Commitments  representing  more  than 50% of the sum of the Total Revolving Credit Exposure and Unfunded Commitments at such time,  provided that, solely for purposes of declaring the Loans to be due and payable pursuant to Section 7.02,  the Unfunded Commitment of each Lender shall be deemed to be zero; and (b) for all purposes after the  Loans  become  due  and  payable  pursuant  to  Section  7.02  or  the  Commitments  expire  or  terminate,  Lenders having Revolving Credit Exposures representing more than 50% of the Total Revolving Credit  Exposure at such time; provided that, in the case of clauses (a) and (b) above, (x) the Revolving Credit  Exposure  of  any  Lender  that  is  the  Swingline  Lender  shall  be  deemed  to  exclude  any  amount of  its  Swingline Exposure in excess of its Applicable Percentage of all outstanding Swingline Loans, adjusted  to give effect to any reallocation under Section 2.24 of the Swingline Exposures of Defaulting Lenders in  effect at such time, and the Unfunded Commitment of such Lender shall be determined on the basis of its  Revolving  Credit  Exposure  excluding  such  excess  amount  and  (y)  for  the  purpose  of  determining  the  Required Lenders needed for any waiver, amendment, modification or consent of or under this Agreement  or any other Loan Document, any Lender that is the Company or an Affiliate of the Company shall be  disregarded.               “Responsible  Officer”  means  the  chief  executive  officer,  president,  chief  legal  officer,  chief financial  officer,  principal accounting officer, treasurer,  assistant treasurer,  senior  vice  president- finance or controller of the Company.               “Restricted  Payment”  means  any  dividend  or  other  distribution  (whether  in  cash,  securities or other property) with respect to any Equity Interests in the Company or any Subsidiary, or any  payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on  account  of  the  purchase,  redemption,  retirement,  acquisition,  cancellation  or  termination  of  any  such  Equity Interests or any option, warrant or other right to acquire any such Equity Interests.               “Reuters” means Thomson Reuters Corp.               “Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of  the outstanding principal amount of such Lender’s Revolving Loans, its LC Exposure and its Swingline  Exposure at such time.               “Revolving Loan” means a Loan made pursuant to Section 2.01.               “S&P”  means  Standard  &  Poor’s  Rating  Services,  a  Standard  &  Poor’s  Financial  Services LLC business.                                         27    

 

               “Sale and Leaseback Transaction” means any sale or other transfer of Property by any  Person with the intent to lease such Property as lessee.               “Sanctioned Country” means, at any time, a country, region or territory which is itself the  subject or target of any Sanctions.               “Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related  list  of  designated  Persons  maintained  by  OFAC,  the  U.S.  Department  of  State,  the  United  Nations  Security Council, the European Union, any European Union member state, Her Majesty’s Treasury of the  United Kingdom or other relevant sanctions authority, (b) any Person operating, organized or resident in a  Sanctioned Country, (c) any Person owned or controlled by any such Person or Persons described in the  foregoing clauses (a) or (b), or (d) any Person otherwise the subject of any Sanctions.               “Sanctions” means  all  economic  or  financial  sanctions  or  trade  embargoes  imposed,  administered or enforced from time to time by (a) the U.S. government, including those administered by  OFAC or the U.S. Department of State or (b) the United Nations Security Council, the European Union,  any  European  Union  member  state,  Her  Majesty’s  Treasury  of  the  United  Kingdom  or  other  relevant  sanctions authority.               “SEC” means the United States Securities and Exchange Commission.               “Secured  Obligations”  means  all  Obligations,  together  with  all  Swap  Obligations  and  Banking Services Obligations owing to one or more Lenders or their respective Affiliates; provided that  the definition of “Secured Obligations” shall not create any guarantee by any Loan Party of (or grant of  security interest by any Loan  Party to support, as applicable) any Excluded Swap  Obligations  of such  Loan Party for purposes of determining any obligations of any Loan Party.               “Security  Agreement”  means  the  Domestic  Security  Agreement  and/or  the  Dutch  Security Agreements, as the context requires.               “Solvent”  means,  in  reference  to  any  Person,  (i) the  fair  value  of  the  assets  of  such  Person,  at  a  fair  valuation,  will  exceed  its  debts  and  liabilities,  subordinated,  contingent  or  otherwise;  (ii) the present fair saleable value of the property of such Person will be greater than the amount that will  be  required  to  pay  the  probable  liability  of  its  debts  and  other  liabilities,  subordinated,  contingent  or  otherwise, as such debts and other liabilities become absolute and matured; (iii) such Person will be able  to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become  absolute  and  matured;  and  (iv) such  Person  will not  have  unreasonably  small  capital  with  which  to  conduct the  business in which  it is  engaged  as such business is  now conducted and  is  proposed to be  conducted after the Effective Date.               “Specified 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 or any rules or regulations promulgated thereunder.               “Statutory  Reserve  Rate”  means  a  fraction  (expressed  as  a  decimal),  the  numerator  of  which is the number one and the denominator of which is the number one minus the aggregate of the  maximum reserve, liquid asset, fees or similar requirements (including any marginal, special, emergency  or supplemental reserves or other requirements) established by any central bank, monetary authority, the  Board, the Financial Conduct Authority, the Prudential Regulation Authority, the European Central Bank  or other Governmental Authority for any category of deposits or liabilities customarily used to fund loans  in the applicable currency, expressed in the case of each such requirement as a decimal.  Such reserve,                                         28    

 

   liquid  asset,  fees  or  similar  requirements  shall  include  those  imposed  pursuant  to  Regulation D  of the  Board.  Eurocurrency Loans shall be deemed to be subject to such reserve, liquid asset, fee or similar  requirements without benefit of or credit for proration, exemptions or offsets that may be available from  time to time to any Lender under any applicable law, rule or regulation, including Regulation D of the  Board.  The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any  change in any reserve, liquid asset or similar requirement.               “Subordinated Indebtedness” means any Indebtedness of the Company or any Subsidiary,  the  payment  of  which  is  subordinated  to  payment  of  the  Secured  Obligations  in  a  manner  reasonably  acceptable  to  the  Administrative  Agent  (such  acceptance  not  to  be  unreasonably  withheld,  delayed  or  conditioned).               “Subordinated Indebtedness Documents” means any document, agreement or instrument  evidencing  any  Subordinated  Indebtedness  or  entered  into  in  connection  with  any  Subordinated  Indebtedness.               “subsidiary”  means,  with  respect  to  any  Person  (the  “parent”)  at  any  date,  any  corporation,  limited  liability  company,  partnership,  association  or  other  entity  the  accounts  of  which  would be consolidated with those of the parent in the parent’s consolidated financial statements if such  financial  statements  were  prepared  in  accordance  with  GAAP  as  of  such  date,  as  well  as  any  other  corporation, limited liability company, partnership, association or other entity (a) of which securities or  other ownership interests representing more than 50% of the equity or more than 50% of the ordinary  voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of  such date, owned, Controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or  one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.               “Subsidiary” means any subsidiary of the Company.               “Subsidiary  Guarantor”  means  each  Domestic  Subsidiary  Guarantor  and  each  Dutch  Subsidiary  Guarantor.   The  Subsidiary  Guarantors  on  the  Effective  Date  are  identified  as  such  in  Schedule 3.01 hereto.               “Subsidiary Guaranty” means that certain Third Amended and Restated Guaranty dated  as  of the  Effective  Date  (including  any  and  all  supplements  thereto) and  executed  by  each  Subsidiary  Guarantor party thereto, and, in the  case  of any guaranty by a  Foreign Subsidiary, any other guaranty  agreements executed by a Dutch Subsidiary Guarantor for the benefit of the Administrative Agent and the  other  Holders  of  Secured  Obligations,  in  each  case  as  amended,  restated,  supplemented  or  otherwise  modified from time to time.               “Substantial  Portion”  means  Property  which  represents  more  than  10%  of  the  Consolidated Total Assets of the Company or Property which is responsible for more than 10% of the  consolidated  net  sales  or  of  the  Consolidated  Net  Income  of  the  Company,  in  each  case, as  would  be  shown in the consolidated financial statements of the Company as at the beginning of the four-quarter  period ending with the quarter in which such determination is made (or if financial statements have not  been  delivered  hereunder  for  that  quarter  which  begins  the  four  quarter  period,  then  the  financial  statements delivered hereunder for the quarter ending immediately prior to that quarter).               “Supported QFC” has the meaning assigned to it in Section 9.19.               “Swap Agreement” means any transaction (including an agreement with respect thereto)  now  existing  or  hereafter  entered  into  by  the  Company  or  any  Subsidiary  which  is  a  rate  swap,  basis                                         29    

 

   swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity  or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction,  floor transaction, collar transaction, forward transaction, currency swap transaction, cross-currency rate  swap transaction, currency option or any other similar transaction (including any option with respect to  any  of  these  transactions)  or  any  combination  thereof,  whether  linked  to  one  or  more  interest  rates,  foreign currencies, commodity prices, equity prices or other financial measures.               “Swap  Obligations”  means any and  all obligations  of the  Company or any Subsidiary,  whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired  (including  all  renewals,  extensions  and  modifications  thereof  and  substitutions  therefor),  under  (a) any  and all Swap Agreements permitted hereunder with a Lender or an Affiliate of a Lender, and (b) any and  all  cancellations,  buy  backs,  reversals,  terminations or  assignments  of  any  such  Swap  Agreement  transaction.               “Swingline  Exposure” means,  at  any  time,  the  aggregate  principal  amount  of  all  Swingline Loans outstanding at such time.  The Swingline Exposure of any Lender at any time shall be  the  sum  of  (a)  its Applicable  Percentage  of  the  aggregate  principal  amount  of  all  Swingline  Loans  outstanding  at  such  time  (excluding,  in  the  case  of  any  Lender  that  is  a  Swingline  Lender,  Swingline  Loans  made by it that are outstanding at such time  to the  extent that the other Lenders shall not have  funded  their  participations  in  such  Swingline  Loans),  adjusted  to  give  effect  to  any  reallocation under  Section 2.24 of the Swingline Exposure of Defaulting Lenders in effect at such time, and (b) in the case of  any Lender that is a Swingline Lender, the aggregate principal amount of all Swingline Loans made by  such Lender outstanding at such time, less the amount of participations funded by the other Lenders in  such Swingline Loans.               “Swingline Lender” means JPMorgan Chase Bank, N.A., in its capacity as the lender of  Swingline Loans hereunder.               “Swingline Loan” means a Loan made pursuant to Section 2.05.               “TARGET2” means the Trans-European Automated Real-time Gross Settlement Express  Transfer  (TARGET2)  payment  system  (or,  if  such  payment  system  ceases  to  be  operative,  such  other  payment system (if any) reasonably determined by the Administrative Agent to be a suitable replacement)  for the settlement of payments in euro.               “TARGET2 Day” means a day that TARGET2 is open for the settlement of payments in  euro.               “Taxes”  means  any  and  all  present  or  future  taxes,  levies,  imposts,  duties,  deductions,  assessment fees, similar charges or withholdings imposed by any Governmental Authority, including any  interest, additions to tax or penalties applicable thereto.               “Total Revolving Credit Exposure” means, at any time, the sum of (a) the outstanding  principal amount of the Revolving Loans and Swingline Loans at such time and (b) the total LC Exposure  at such time.               “Trade Date” has the meaning assigned to such term in Section 9.04(e)(i).               “Transactions” means the execution, delivery and performance by the Loan Parties of this  Agreement and the other Loan Documents, the borrowing of Loans and other credit extensions, the use of  the proceeds thereof and the issuance of Letters of Credit hereunder.                                         30    

 

               “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of  interest on such  Loan, or on the  Loans  comprising such Borrowing, is  determined  by reference to the  Adjusted LIBO Rate or the Alternate Base Rate.               “UCC” means the Uniform Commercial Code as in effect from time to time in the State  of New York or any other state the laws of which are required to be applied in connection with the issue  of perfection of security interests.               “Unfunded Commitment” means, with respect to each Lender, the Commitment of such  Lender less its Revolving Credit Exposure.               “United States” or “U.S.” mean the United States of America.               “Unliquidated  Obligations”  means,  at  any  time,  any  Secured  Obligations  (or  portion  thereof) that are contingent in nature or unliquidated at such time, including any Secured Obligation that  is:  (i) an obligation to reimburse a bank for drawings not yet made under a letter of credit issued by it;  (ii) any  other  obligation  (including  any  guarantee) that  is  contingent  in  nature  at  such time;  or  (iii) an  obligation to provide collateral to secure any of the foregoing types of obligations.               “U.S. Special Resolution Regime” has the meaning assigned to it in Section 9.19.               “U.S. Tax Compliance Certificate” has the meaning set forth in Section 2.17(e).               “Wholly-Owned” means, when used in reference to a subsidiary of any Person, that all  the Equity Interests in such subsidiary (other than directors’ qualifying shares and other nominal amounts  of  Equity  Interests  that  are  required  to  be  held  by  other  Persons  under  applicable  law)  are  owned,  beneficially  and  of  record,  by  such  Person,  another  wholly-owned  subsidiary  of  such  Person  or  any  combination thereof.               “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete  or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of  Title IV of ERISA.               “Write-Down  and  Conversion  Powers”  means,  with  respect  to  any  EEA  Resolution  Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time  under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion  powers are described in the EU Bail-In Legislation Schedule.               SECTION 1.02.  Classification  of  Loans  and  Borrowings.   For  purposes  of  this  Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g.,  a “Eurocurrency Loan”) or by Class and Type (e.g., a “Eurocurrency Revolving Loan”).  Borrowings also  may  be  classified  and  referred  to  by  Class  (e.g.,  a  “Revolving  Borrowing”)  or  by  Type  (e.g.,  a  “Eurocurrency Borrowing”) or by Class and Type (e.g., a “Eurocurrency Revolving Borrowing”).               SECTION 1.03.  Terms Generally.  The definitions of terms herein shall apply equally  to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun  shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes”  and “including” shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall  be construed to have the same meaning and effect as the word “shall”.  The word “law” shall be construed  as  referring  to  all  statutes,  rules,  regulations,  codes  and  other  laws  (including  official  rulings  and  interpretations  thereunder  having  the  force  of  law),  and  all  judgments,  orders  and  decrees,  of  all                                         31    

 

   Governmental Authorities.  Unless the context requires otherwise (a) any definition of or reference to any  agreement,  instrument or  other  document  herein  shall  be  construed  as  referring  to  such  agreement,  instrument  or  other  document  as  from  time  to  time  amended,  restated,  supplemented  or  otherwise  modified (subject to any restrictions on such amendments, restatements, supplements or modifications set  forth  herein),  (b) any  definition  of  or  reference  to  any  law,  statute,  rule  or  regulation  shall,  unless  otherwise  specified,  be  construed  as  referring  thereto  as  from  time  to  time  amended,  supplemented  or  otherwise modified (including by succession of comparable successor laws), (c) any reference herein to  any Person shall be construed to include such Person’s successors and assigns (subject to any restrictions  on assignment set forth herein) and, in the case of any Governmental Authority, any other Governmental  Authority that shall have succeeded to any or all functions thereof, (d) the words “herein”, “hereof” and  “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and  not  to  any  particular  provision  hereof,  (e) all  references  herein  to  Articles,  Sections,  Exhibits  and  Schedules  shall  be  construed  to  refer  to  Articles  and  Sections  of,  and  Exhibits  and  Schedules  to,  this  Agreement and (f) the  words  “asset” and “property” shall be construed to have the  same  meaning and  effect and to refer to any and all tangible and intangible assets and properties, including cash, securities,  accounts and contract rights.               SECTION 1.04.  Accounting Terms; GAAP.  Except as otherwise expressly provided  herein (including the definitions of Capitalized Lease and Capitalized Lease Obligations), all terms of an  accounting  or financial  nature  shall  be  construed  in  accordance  with  GAAP,  as  in  effect  from  time  to  time; provided that,  if  the  Company  notifies  the  Administrative  Agent  that  the  Company  requests  an  amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in  GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent  notifies the Company that the Required Lenders request an amendment to any provision hereof for such  purpose), regardless of whether any such notice is given before or after such change in GAAP or in the  application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied  immediately before such change shall have become effective until such notice shall have been withdrawn  or  such  provision   amended  in  accordance  herewith.   Notwithstanding  any  other  provision  contained  herein, all terms of an accounting or financial nature used herein shall be construed, and all computations  of  amounts  and  ratios  referred  to  herein  shall  be  made  (i) without  giving  effect  to  any  election  under  Accounting  Standards  Codification  825-10-25  (or  any  other Accounting  Standards  Codification  or  Financial  Accounting  Standard  having  a  similar  result  or  effect)  to  value  any  Indebtedness  or  other  liabilities  of the  Company  or any Subsidiary at “fair value”, as defined  therein and  (ii) without giving  effect to any treatment of Indebtedness under Accounting Standards Codification 470-20 or 2015-03 (or  any other Accounting Standards Codification or Financial Accounting Standard having a similar result or  effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such  Indebtedness  shall  at  all  times  be  valued  at  the  full  stated  principal  amount  thereof.  Notwithstanding  anything  to  the  contrary  contained  in  this  Section  1.04  or  in  the  definition  of  “Capitalized  Lease  Obligations,” any  change  in  accounting  for  leases  before  or  after  the  date  hereof  pursuant  to  GAAP  resulting from the adoption of Financial Accounting Standards Board Accounting Standards Update No.  2016-02, Leases (Topic 842) (“FAS 842”), to the extent such adoption would require treating any lease  (or  similar  arrangement  conveying  the  right  to  use)  as  a  capital  lease  where  such  lease  (or  similar  arrangement) would not have been required to be so treated under GAAP as in effect on December 31,  2015, such lease shall not be considered a capital lease, and all calculations and deliverables under this  Agreement  or  any  other  Loan  Document  shall  be  made  or  delivered,  as  applicable,  in  accordance  therewith.               SECTION 1.05.  Amendment and Restatement of the Existing Credit Agreement.  The  parties to this Agreement agree that, upon (i) the execution and delivery by each of the parties hereto of  this Agreement and (ii) satisfaction of the conditions set forth in Section 4.01, the terms and provisions of  the Existing Credit Agreement shall be and hereby are amended, superseded and restated in their entirety                                         32    

 

   by the terms and provisions of this Agreement.  This Agreement is not intended to and shall not constitute  a novation.  All Loans made and Obligations incurred under the Existing Credit Agreement which are  outstanding on the Effective Date shall continue as Loans and Obligations under (and, as of the Effective  Date, shall be governed by the terms of) this Agreement and the other Loan Documents.  Without limiting  the foregoing, upon the effectiveness hereof:  (a) all references in the “Loan Documents” (as defined in  the  Existing Credit Agreement) to the “Administrative  Agent”,  the “Credit Agreement” and the “Loan  Documents”  shall  be  deemed  to  refer  to  the  Administrative  Agent,  this  Agreement  and  the  Loan  Documents,  (b) the  Existing  Letters  of  Credit  which  remain  outstanding  on  the  Effective  Date  shall  continue as Letters of Credit under (and, as of the Effective Date, shall be governed by the terms of) this  Agreement, (c) all obligations constituting “Obligations” with any Lender or any Affiliate of any Lender  which are outstanding on the Effective Date shall continue as Obligations under this Agreement and the  other Loan Documents, (d) the Administrative Agent shall make such reallocations, sales, assignments or  other relevant actions in respect of each Lender’s credit exposure under the Existing Credit Agreement as  are  necessary  in  order  that  each  such  Lender’s  Revolving  Credit  Exposure  and  outstanding  Revolving  Loans  hereunder  reflect  such  Lender’s  Applicable  Percentage  of  the  outstanding  aggregate  Revolving  Exposures on the Effective Date and (e) the Company hereby agrees to compensate each Lender for any  and all losses, costs and expenses incurred by such Lender in connection with the sale and assignment of  any Eurocurrency Loans (including the “Eurocurrency Loans” under the Existing Credit Agreement) and  such reallocation described above, in each case on the terms and in the manner set forth in Section 2.16  hereof.               SECTION 1.06.  Interest  Rates;  LIBOR  Notification.  The interest  rate  on  Eurocurrency  Loans  is  determined  by  reference  to  the  LIBO  Rate,  which  is  derived  from  the  London  interbank  offered  rate.   The  London  interbank  offered  rate  is  intended  to  represent  the  rate  at  which  contributing banks may obtain short-term borrowings from each other in the London interbank market.  In  July  2017,  the  U.K.  Financial  Conduct  Authority  announced  that,  after  the  end  of  2021,  it  would  no  longer  persuade  or  compel  contributing  banks  to  make  rate  submissions  to  the  ICE  Benchmark  Administration  (together  with  any  successor  to  the  ICE  Benchmark  Administrator,  the  “IBA”)  for  purposes of the IBA setting the London interbank offered rate.  As a result, it is possible that commencing  in 2022, the London interbank offered rate may no longer be available or may no longer be deemed an  appropriate reference rate upon which to determine the interest rate on Eurocurrency Loans.  In light of  this eventuality, public and private sector industry initiatives are currently underway to identify new or  alternative reference rates to be used in place of the London interbank offered rate.  In the event that the  London  interbank  offered  rate  is  no  longer  available  or  in  certain  other  circumstances  as  set  forth  in  Section  2.14(c)  of  this  Agreement,  such  Section  2.14(c)  provides  a  mechanism  for  determining  an  alternative rate of interest.  The Administrative Agent will notify the Company, pursuant to Section 2.14,  in advance  of any change to the  reference  rate  upon which  the  interest rate on Eurocurrency Loans  is  based.  However, the Administrative Agent does not warrant or accept any responsibility for, and shall  not have any liability with respect to, the administration, submission or any other matter related to the  London  interbank  offered  rate  or  other  rates  in  the  definition  of  “LIBO  Rate”  or  with  respect  to  any  alternative or successor rate thereto, or replacement rate thereof, including without limitation, whether the  composition or characteristics of any such alternative, successor or replacement reference rate, as it may  or  may  not  be  adjusted  pursuant  to  Section  2.14(c),  will  be  similar  to,  or  produce  the  same  value  or  economic  equivalence  of,  the  LIBO  Rate  or  have  the  same  volume  or  liquidity  as  did  the  London  interbank offered rate prior to its discontinuance or unavailability.               SECTION 1.07.  Divisions.  For  all  purposes  under  the  Loan  Documents,  in  connection with any division or plan of division under Delaware law (or any comparable event under a  different  jurisdiction’s  laws):  (a)  if  any  asset,  right, obligation  or  liability  of  any  Person  becomes  the  asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred  from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such                                         33    

 

   new Person shall be deemed to have been organized and acquired on the first date of its existence by the  holders of its Equity Interests at such time.               SECTION 1.08.  Pro  Forma  Adjustments  for  Acquisitions  and  Dispositions.  To  the  extent  the  Company  or  any  Subsidiary  makes  any  Acquisition  or  Investment  permitted  pursuant  to  Section 6.04 or disposition of assets outside the ordinary course of business permitted by Section 6.03  during the period of four Fiscal Quarters of the Company most recently ended, the Leverage Ratio and  Interest Coverage Ratio, and any other financial covenant or definition, shall be calculated after giving  Pro  Forma  effect  thereto,  as  if  such  Acquisition  or  Investment  or  such  disposition  (and  any  related  incurrence, repayment or assumption of Indebtedness) had occurred in the first day of such four Fiscal  Quarter period.                                     ARTICLE II                                                                             The Credits               SECTION 2.01.  Commitments.   Prior  to  the  Effective  Date,  certain  loans  were  previously made to the Borrowers under the Existing Credit Agreement which remain outstanding as of  the date of this Agreement (such outstanding loans being hereinafter referred to as the “Existing Loans”).   Subject to the terms and conditions set forth in this Agreement, the Borrowers and each of the Lenders  agree that on the  Effective  Date  but subject to the satisfaction of the conditions precedent set forth in  Section 4.01  and  the  reallocation  and  other  transactions  described  in  Section 1.05,  the  Existing  Loans  shall,  as  of  the  Effective  Date,  be  reevidenced  as  Loans  under  this  Agreement  and  the  terms  of  the  Existing Loans shall be restated in their entirety and shall be evidenced by this Agreement.  Subject to the  terms and conditions set forth herein, each Lender (severally and not jointly) agrees to make Revolving  Loans  to  the  Borrowers  in  Agreed Currencies  from  time  to  time  during  the  Availability  Period  in  an  aggregate principal amount that will not result (after giving effect to any application of proceeds of such  Borrowing to any Swingline Loans outstanding pursuant to Section 2.10(a)) in, subject to Sections 2.04  and 2.11(b), (a) the Dollar Amount of such Lender’s Revolving Credit Exposure exceeding such Lender’s  Commitment, (b) the Dollar Amount of the Total Revolving Credit Exposure exceeding the Aggregate  Commitment, (c) the Dollar Amount of the total outstanding Revolving Loans and LC Exposure, in each  case  denominated  in  Foreign  Currencies,  exceeding  the  Foreign  Currency  Sublimit or  (d) the  total  Revolving  Credit  Exposures  in  respect  of  Foreign  Subsidiary  Borrowers  exceeding  the  Foreign  Subsidiary Borrower Sublimit.  Within the foregoing limits and subject to the terms and conditions set  forth herein, the Borrowers may borrow, prepay and reborrow Revolving Loans.               SECTION 2.02.  Loans  and  Borrowings.  (a) Each  Revolving  Loan  (other  than  a  Swingline  Loan)  shall  be  made  as  part  of  a  Borrowing  consisting  of  Revolving  Loans  made  by  the  Lenders ratably in accordance with their respective Commitments.  The failure of any Lender to make any  Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided  that  the  Commitments  of  the  Lenders  are  several  and  no  Lender  shall  be  responsible  for  any  other  Lender’s failure to make Loans as required.  Any Swingline Loan shall be made in accordance with the  procedures set forth in Section 2.05.               (b)   Subject to Section 2.14, each Revolving Borrowing shall be comprised entirely  of  ABR  Loans  or  Eurocurrency  Loans  as  the  relevant  Borrower  may  request  in  accordance  herewith;  provided that each ABR Loan  shall only be  made in Dollars.  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  (and  in  the  case  of  an  Affiliate,  the  provisions  of  Sections 2.14, 2.15, 2.16 and 2.17 shall apply to such Affiliate  to the  same  extent as  to such Lender);                                         34    

 

   provided that any exercise of such option shall not affect the obligation of the relevant Borrower to repay  such Loan in accordance with the terms of this Agreement.               (c)   At the commencement of each Interest Period for any Eurocurrency Revolving  Borrowing  that  is  made  to  the  Company,  such  Borrowing  shall  be  in  an  aggregate  amount  that  is  an  integral  multiple  of  $1,000,000  (or,  if  such  Borrowing  is denominated  in  (i) Japanese  Yen,  JPY100,000,000 or (ii) a Foreign Currency other than Japanese Yen, 1,000,000 units of such currency)  and not less than $3,000,000 (or, if such Borrowing is denominated in (i) Japanese Yen, JPY300,000,000  or  (ii) a  Foreign  Currency  other  than  Japanese  Yen,  3,000,000  units  of  such  currency).   Subject  to  paragraph (e)  of  this  Section,  at  the  commencement  of  each  Interest  Period  for  any  Eurocurrency  Revolving  Borrowing  that  is  made  to  a  Foreign  Subsidiary  Borrower,  such  Borrowing  shall  be  in  an  aggregate  amount  that  is  an  integral  multiple  of  $100,000  (or,  if  such  Borrowing  is  denominated  in  (i) Japanese Yen, JPY10,000,000 or (ii) a Foreign Currency other than Japanese Yen, 100,000 units of  such currency) and not less  than $100,000 (or, if such Borrowing is  denominated  in (i) Japanese Yen,  JPY10,000,000 or (ii) a Foreign Currency other than Japanese Yen, 100,000 units of such currency).  At  the time that each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate amount  that is an integral multiple of $500,000 and not less than $1,000,000; provided that an ABR Revolving  Borrowing may be in an aggregate amount that is equal to the entire unused balance of the Aggregate  Commitment or that is required to finance the reimbursement of an LC Disbursement as contemplated by  Section 2.06(e).  Each Swingline Loan shall be in an amount that is an integral multiple of $500,000 and  not less than $500,000.  Borrowings of more than one Type and Class may be outstanding at the same  time; provided that there shall not at any time be more than a total of eight (8) Eurocurrency Borrowings  outstanding.               (d)   Notwithstanding  any  other  provision  of  this  Agreement,  no  Borrower  shall  be  entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with  respect thereto would end after the Maturity Date.               (e)   An  initial  Borrowing  from  any  Lender,  and  (to  the  extent  before  such  initial  Borrowing) any initial Letter of Credit issued under Section 2.06 by the Issuing Bank, to any Borrower  that is organized under the laws of the Netherlands shall at all times be provided by a Lender that is a  Dutch Non-Public Lender.               SECTION 2.03.  Requests  for  Revolving  Borrowings.   To  request  a  Revolving  Borrowing, the applicable Borrower, or the Company on behalf of the applicable Borrower, shall notify  the  Administrative  Agent  of  such  request  (a) by  irrevocable  written  notice  (via  a  written  Borrowing  Request  signed  by  the  applicable  Borrower,  or  the  Company  on  behalf  of  the  applicable  Borrower,  promptly followed by telephonic confirmation of such request) in the case of a Eurocurrency Borrowing,  not later than 11:00 a.m., Local Time, three (3) Business Days (in the case of a Eurocurrency Borrowing  denominated in Dollars) or by irrevocable written notice (via a written Borrowing Request signed by such  Borrower, or the Company on its behalf) not later than 11:00 a.m., Local Time, four (4) Business Days (in  the case of a Eurocurrency Borrowing denominated in a Foreign Currency), in each case before the date  of the proposed Borrowing or (b) by irrevocable written notice (via a written Borrowing Request signed  by the applicable Borrower, or the Company on behalf of the applicable Borrower) in the case of an ABR  Borrowing,  not  later  than 11:00 a.m.,  Chicago  time,  on  the  Business  Day  of  the  proposed  Borrowing;  provided that any such notice of an ABR Revolving Borrowing to finance the reimbursement of an LC  Disbursement as contemplated by Section 2.06(e) may be given not later than 10:00 a.m., Chicago time,  on  the  date  of  the  proposed  Borrowing.   Each  Borrowing  Request  to  fund  an  Acquisition  permitted  hereunder or other transaction may be conditioned upon such Acquisition or transaction, provided that  any such conditioning shall not avoid any payment that may be  owed  under Section 2.16.  Each such  Borrowing Request shall specify the following information in compliance with Section 2.02:                                         35    

 

               (i)   the name of the applicable Borrower;               (ii)  the aggregate principal amount of the requested Borrowing;               (iii) the date of such Borrowing, which shall be a Business Day;               (iv)  whether  such  Borrowing  is  to  be  an  ABR  Borrowing  or  a  Eurocurrency        Borrowing;               (v)   in the case of a Eurocurrency Borrowing, the Agreed Currency and initial Interest        Period to be applicable thereto, which shall be a period contemplated by the definition of the term        “Interest Period”; and               (vi)  the location and number of the applicable Borrower’s account to which funds are        to be disbursed, which shall comply with the requirements of Section 2.07.   If  no  election  as  to  the  Type  of  Revolving  Borrowing  is  specified,  then,  in  the  case  of  a  Borrowing  denominated in Dollars, the requested Revolving Borrowing shall be an ABR Borrowing.  If no Interest  Period is specified with respect to any requested Eurocurrency Revolving Borrowing, then the relevant  Borrower  shall  be  deemed  to  have  selected  an  Interest  Period  of  one  month’s  duration.   Promptly  following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall  advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of  the requested Borrowing.               SECTION 2.04.  Determination  of  Dollar  Amounts.   The  Administrative  Agent  will  determine the Dollar Amount of:               (a)   any Loan denominated in a Foreign Currency, on each of the following: (i) the  date  of  the  Borrowing  of  such  Loan  and  (ii)  each  date  of  a  conversion  or  continuation  of  such  Loan  pursuant to the terms of this Agreement,               (b)   any  Letter  of  Credit  denominated  in  a  Foreign  Currency,  on  each  of  the  following: (i) the date on which such Letter of Credit is issued, (ii) the first Business Day of each calendar  month and (iii) the date of any amendment of such Letter of Credit that has the effect of increasing the  face amount thereof, and               (c)   any  Credit  Event,  on  any additional  date  as  the Administrative  Agent  may  determine at any time when an Event of Default exists.               Each day upon or as of which the Administrative Agent determines Dollar Amounts as  described  in  the  preceding  clauses (a),  (b)  and  (c) is  herein  described  as  a  “Computation  Date”  with  respect to each Credit Event for which a Dollar Amount is determined on or as of such day.               SECTION 2.05.  Swingline Loans.  (a) Subject to the terms and conditions set forth  herein, the Swingline Lender may agree, but shall have no obligation, to make Swingline Loans in Dollars  to the Company from time to time during the Availability Period, in an aggregate principal amount at any  time outstanding that will not result in (i) the aggregate principal amount of outstanding Swingline Loans  exceeding  $25,000,000,  (ii)  the  Swingline  Lender’s  Revolving  Credit  Exposure  exceeding  its  Commitment or (iii) the Dollar Amount of the Total Revolving Credit Exposure exceeding the Aggregate  Commitment; provided that  the  Swingline  Lender  shall  not  be  required  to  make  a  Swingline  Loan  to                                          36    

 

   refinance  an  outstanding  Swingline  Loan.   Within  the  foregoing  limits  and  subject  to  the  terms  and  conditions set forth herein, the Company may borrow, prepay and reborrow Swingline Loans.               (b)   To request a Swingline Loan, the Company shall notify the Administrative Agent  of such request by irrevocable written notice (via a written Borrowing Request in a form approved by the  Administrative Agent and signed by the Company), not later than 12:00 noon, Chicago time, on the day  of a proposed Swingline Loan.  Each such notice shall be irrevocable and shall specify the requested date  (which shall be a Business Day) and amount of the requested Swingline Loan.  The Administrative Agent  will  promptly  advise  the  Swingline  Lender  of  any  such  notice  received  from  the  Company.   The  Swingline Lender shall make each Swingline Loan available to the Company by means of a credit to an  account of the Company with the Administrative Agent designated for such purpose (or, in the case of a  Swingline  Loan  made  to  finance  the  reimbursement  of  an  LC  Disbursement  as  provided  in  Section 2.06(e), by remittance to the Issuing Bank) by 3:00 p.m., Chicago time, on the requested date of  such Swingline Loan.               (c)   The Swingline Lender may by written notice given to the Administrative Agent  require the Lenders to acquire participations in all or a portion of the Swingline Loans outstanding.  Such  notice  shall  specify  the  aggregate  amount  of  Swingline  Loans  in  which  Lenders  will  participate.   Promptly upon receipt of such notice, the Administrative Agent will give notice thereof to each Lender,  specifying in such notice such Lender’s Applicable Percentage of such Swingline Loan or Loans.  Each  Lender  hereby  absolutely  and  unconditionally  agrees, promptly  upon  receipt  of  such  notice  from  the  Administrative  Agent  (and  in  any  event,  if such  notice  is  received  by  11:00  a.m.,  Chicago  time,  on  a  Business Day, no later than 4:00 p.m., Chicago time, on such Business Day and if received after 11:00  a.m.,  Chicago  time,  on  a  Business  Day,  no  later  than  9:00  a.m.,  Chicago  time,  on  the  immediately  succeeding Business Day), to pay to the Administrative Agent, for the account of the Swingline Lender,  such Lender’s Applicable Percentage of such Swingline Loan or Loans.  Each Lender acknowledges and  agrees  that  its  obligation  to  acquire  participations  in  Swingline  Loans  pursuant  to  this  paragraph  is  absolute  and  unconditional  and  shall  not  be  affected  by  any  circumstance  whatsoever,  including  the  occurrence and continuance of a Default or reduction or termination of the Commitments, and that each  such payment shall be made without any offset, abatement, withholding or reduction whatsoever.  Each  Lender shall comply with its obligation under this paragraph by wire transfer of immediately available  funds, in the same manner as provided in Section 2.07 with respect to Loans made by such Lender (and  Section 2.07  shall  apply, mutatis mutandis,  to  the  payment  obligations  of  the  Lenders),  and  the  Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from the  Lenders.   The  Administrative  Agent  shall  notify  the  Company  of  any  participations  in  any  Swingline  Loan acquired pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan shall  be  made to the  Administrative  Agent and  not to the Swingline Lender.  Any amounts  received by the  Swingline Lender from the Company (or other party on behalf of the Company) in respect of a Swingline  Loan after receipt by the Swingline  Lender of the  proceeds of a  sale  of participations  therein shall be  promptly remitted to the Administrative Agent; any such amounts received by the Administrative Agent  shall  be  promptly  remitted  by  the  Administrative  Agent  to  the  Lenders  that  shall  have  made  their  payments pursuant to this paragraph and to the Swingline Lender, as their interests may appear; provided  that any such payment so remitted shall be repaid to the Swingline Lender or to the Administrative Agent,  as applicable, if and to the extent such payment is required to be refunded to the Company for any reason.   The  purchase  of  participations  in  a  Swingline  Loan  pursuant  to  this  paragraph  shall  not  relieve  the  Company of any default in the Company’s repayment of such Swingline Loan.               (d)   The Swingline Lender may be replaced at any time by written agreement among  the  Company,  the  Administrative  Agent,  the  replaced  Swingline  Lender  and  the  successor  Swingline  Lender.  The Administrative  Agent shall notify the Lenders  of any such replacement of the Swingline  Lender.  At  the  time  any  such  replacement  shall  become  effective,  the  Company  shall  pay  all  unpaid                                         37    

 

   interest accrued for the account of the replaced Swingline Lender pursuant to Section 2.13(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 replaced Swingline Lender under this Agreement with respect to Swingline  Loans 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  a  Swingline  Lender  hereunder,  the  replaced  Swingline  Lender  shall  remain  a  party  hereto  and shall  continue  to  have  all  the  rights  and  obligations of a Swingline Lender under this Agreement with respect to Swingline Loans made by it prior  to its replacement to the extent such Swingline Loans remain outstanding, but shall not be required to  make additional Swingline Loans.               (e)   Subject to the appointment and acceptance of a successor Swingline Lender, the  Swingline  Lender  may  resign  as  a  Swingline  Lender  at  any  time  upon  thirty  (30)  days’  prior  written  notice to the Administrative Agent, the Company and the Lenders, in which case, such Swingline Lender  shall be replaced in accordance with Section 2.05(d) above.               SECTION 2.06.  Letters of Credit.  (a) General.  Subject to the terms and conditions  set  forth  herein,  the  Company  may  request  the  issuance  of  Letters  of  Credit  denominated  in  Agreed  Currencies for its own account or any Subsidiary, in a form reasonably acceptable to the Issuing Bank, at  any time and from time to time during the Availability Period.  In the event of any inconsistency between  the  terms  and  conditions  of  this  Agreement  and  the  terms  and  conditions  of  any  Letter  of  Credit  Agreement, the terms and conditions of this Agreement shall control; provided, however, if the Issuing  Bank is requested to issue Letters of Credit with respect to a jurisdiction the Issuing Bank deems, in its  reasonable judgment, may at any time subject it to a New Money Credit Event or a Country Risk Event,  the Company shall, at the request of the Issuing Bank, guaranty and indemnify the Issuing Bank against  any  and  all  costs,  liabilities  and  losses  to the  extent  resulting  from  such  New  Money  Credit  Event  or  Country Risk Event, in each case in a form and substance reasonably satisfactory to the Issuing Bank.   The letters of credit identified on Schedule 2.06 (the “Existing Letters of Credit”) shall be deemed to be  “Letters of Credit” issued on the Effective Date for all purposes of the Loan Documents, except that the  Issuing Bank shall not collect any issuance or fronting fee or similar compensation with respect to the  deemed  issuance thereof on the  Effective  Date.   Notwithstanding anything herein to the  contrary, the  Issuing Bank shall have no obligation hereunder to issue any Letter of Credit if (i) any binding order,  judgment or decree of any Governmental Authority or arbitrator shall by its terms enjoin or restrain the  Issuing Bank from issuing such Letter of Credit, or any law applicable to the Issuing Bank shall prohibit,  or require that the Issuing Bank refrain from, the issuance of letters of credit generally or such Letter of  Credit  in  particular  or  shall  impose  upon  the  Issuing  Bank  with  respect  to  such  Letter  of  Credit  any  restriction,  reserve  or  capital  requirement  (for  which  the  Issuing  Bank  is  not  otherwise  compensated  hereunder) not in effect on the Effective Date, or shall impose upon the Issuing Bank any unreimbursed  loss, cost or expense that was not applicable on the Effective Date (for which the Issuing Bank is not  otherwise compensated hereunder) and that the Issuing Bank in good faith deems material to it or (ii) the  issuance of such Letter of Credit would violate one or more policies of the Issuing Bank applicable to  letters of credit generally.               (b)   Notice of Issuance, Amendment, Extension; Certain Conditions.  To request the  issuance of a  Letter of Credit (or the  amendment or extension of an  outstanding Letter of Credit), the  Company shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for  doing  so  have  been  approved  by  the  Issuing  Bank) to the  Issuing  Bank  and  the  Administrative  Agent  (reasonably in advance of the requested date of issuance, amendment or extension, but in any event no  less than three (3) Business Days or such shorter time period as agreed to by the Issuing Bank) a notice  requesting  the  issuance  of  a  Letter  of  Credit,  or  identifying  the  Letter  of  Credit  to  be  amended  or  extended, and specifying the date of issuance, amendment or extension (which shall be a Business Day),                                         38    

 

   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  Agreed  Currency  applicable  thereto,  the  name  and  address of the beneficiary thereof and such other information as shall be necessary to prepare, amend or  extend such Letter of Credit.  In addition, if requested by the Issuing Bank as a condition to any such  Letter of Credit issuance, the Company shall have entered into a continuing agreement (or other letter of  credit agreement) for the issuance of letters of credit and/or shall submit a letter of credit application, in  each case, as required by the Issuing Bank and using the Issuing Bank’s standard form (each, a “Letter of  Credit Agreement”).  A Letter of Credit shall be issued, amended or extended only if (and upon issuance,  amendment or extension of each Letter of Credit the Company shall be deemed to represent and warrant  that), after giving effect to such issuance, amendment or extension subject to Sections 2.04 and 2.11(b),  (i) the Dollar Amount of the LC Exposure shall not exceed $100,000,000, (ii) the Dollar Amount of the  Total Revolving Credit Exposure shall not exceed the Aggregate Commitment, (iii) the Dollar Amount of  each Lender’s Revolving Credit Exposure shall not exceed such Lender’s Commitment, (iv) the Dollar  Amount of the total outstanding Revolving Loans and LC Exposure, in each case denominated in Foreign  Currencies, shall not exceed the Foreign Currency Sublimit and (v) the total Revolving Credit Exposures  in respect of Foreign Subsidiary Borrowers shall not exceed the Foreign Subsidiary Borrower Sublimit.               (c)   Expiration Date.  Each Letter of Credit shall expire (or be subject to termination  by notice from the  Issuing Bank to the  beneficiary thereof) at or prior to the  close of business on the  earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any  extension of the expiration thereof, one year after such extension) and (ii) the date that is five (5) Business  Days prior to the Maturity Date.               (d)   Participations.  By the issuance of a Letter of Credit (or an amendment to a Letter  of Credit increasing the amount thereof) and without any further action on the part of the Issuing Bank or  the Lenders, the Issuing Bank hereby grants to each Lender, and each Lender hereby acquires from the  Issuing Bank, a participation in such Letter of Credit equal to such 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 Lender hereby absolutely and unconditionally agrees to pay to the Administrative  Agent,  for  the  account  of  the  Issuing  Bank,  such  Lender’s  Applicable  Percentage  of  each  LC  Disbursement made by the Issuing Bank and not reimbursed by the Company on the date due as provided  in  paragraph (e)  of  this  Section,  or  of  any  reimbursement  payment  required  to  be  refunded  to  the  Company for any reason, including after the Maturity Date.  Each Lender acknowledges and agrees that  its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute  and unconditional and shall not be affected by any circumstance whatsoever, including any amendment or  extension  of  any  Letter  of  Credit  or  the  occurrence  and  continuance  of  a  Default  or  reduction  or  termination  of  the  Commitments,  and  that  each  such  payment  shall  be  made  without  any  offset,  abatement, withholding or reduction whatsoever.               (e)   Reimbursement.  If the Issuing Bank shall make any LC Disbursement in respect  of  a  Letter  of  Credit,  the  Company  shall  reimburse  such  LC  Disbursement  by  paying  to  the  Administrative Agent in Dollars the Dollar Amount equal to such LC Disbursement, calculated as of the  date  the  Issuing  Bank  made  such  LC  Disbursement  (or  if  the  Issuing  Bank  shall  so  elect  in  its  sole  discretion by notice to the Company, in such other Agreed Currency which was paid by the Issuing Bank  pursuant to such LC Disbursement in an amount equal to such LC Disbursement) not later than 12:00  noon, Local Time, on the date that such LC Disbursement is made, if the Company shall have received  notice of such LC Disbursement prior to 10:00 a.m., Local Time, on such date, or, if such notice has not  been received by the Company prior to 10:00 a.m., Local Time on such date, then not later than 12:00  noon, Local Time, on the Business Day immediately following the day that the Company receives such  notice; provided that, if  such  LC  Disbursement is  not  less  than  the  Dollar  Amount of $1,000,000, the  Company  may,  subject  to  the  conditions  to  borrowing  set  forth  herein,  request  in  accordance  with                                         39    

 

   Section 2.03 or 2.05 that such payment be financed with (i) to the extent such LC Disbursement was made  in  Dollars,  an  ABR  Revolving  Borrowing,  Eurocurrency  Revolving  Borrowing  or  Swingline  Loan  in  Dollars in an amount equal to such LC Disbursement or (ii) to the extent that such LC Disbursement was  made  in  a  Foreign  Currency,  a  Eurocurrency  Revolving  Borrowing  in  such  Foreign  Currency  in  an  amount  equal  to  such  LC  Disbursement  and,  in  each  case,  to  the  extent  so  financed,  the  Company’s  obligation  to  make  such  payment  shall  be  discharged  and  replaced  by  the  resulting  ABR  Revolving  Borrowing, Eurocurrency Revolving Borrowing or Swingline Loan, as applicable.  If the Company fails  to make such payment when due, the Administrative Agent shall notify each Lender of the applicable LC  Disbursement, the payment then due from the Company in respect thereof and such Lender’s Applicable  Percentage  thereof.   Promptly  following  receipt  of  such  notice,  each  Lender  shall  pay  to  the  Administrative Agent its Applicable Percentage of the payment then due from the Company, in the same  manner as provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall  apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall  promptly pay to the Issuing Bank the amounts so received by it from the Lenders.  Promptly following  receipt by the Administrative Agent of any payment from the Company pursuant to this paragraph, the  Administrative Agent shall distribute such payment to the Issuing Bank or, to the extent that Lenders have  made payments pursuant to this paragraph to reimburse the Issuing Bank, then to such Lenders and the  Issuing Bank as their interests may appear.  Any payment made by a Lender pursuant to this paragraph to  reimburse the Issuing Bank for any LC Disbursement (other than the funding of Revolving Loans or a  Swingline Loan as contemplated above) shall not constitute a Loan and shall not relieve the Company of  its obligation to reimburse such LC Disbursement.  If the Company’s reimbursement of, or obligation to  reimburse,  any  amounts  in  any  Foreign  Currency  would subject  the  Administrative  Agent, the  Issuing  Bank or any Lender to any stamp duty, ad valorem charge or similar tax that would not be payable if such  reimbursement  were  made  or  required  to  be  made  in  Dollars,  the  Company  shall,  at  its  option,  either  (x) pay  the  amount  of  any  such  tax  requested  by  the  Administrative  Agent,  the  Issuing  Bank  or  the  relevant Lender or (y) reimburse each LC Disbursement made in such Foreign Currency in Dollars, in an  amount equal to the Dollar Amount thereof calculated on the date such LC Disbursement is made.               (f)   Obligations  Absolute.   The  Company’s  obligation  to  reimburse  LC  Disbursements  as  provided  in  paragraph (e)  of  this  Section  shall  be  absolute,  unconditional  and  irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and  all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of  Credit, any Letter of Credit Agreement or this  Agreement, or any term or provision therein or herein,  (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or  invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) any payment  by the Issuing Bank under a Letter of Credit against presentation of a draft or other document that does  not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance whatsoever,  whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute  a  legal  or  equitable  discharge  of,  or  provide  a  right  of  setoff  against, the  Company’s  obligations  hereunder.   Neither  the  Administrative  Agent,  the  Lenders  nor  the  Issuing  Bank,  nor  any  of  their  respective Related Parties, shall have any liability or responsibility by reason of or in connection with the  issuance or transfer of any Letter of Credit 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  Issuing  Bank.   Notwithstanding  anything  to  the  contrary  in  this  paragraph,  nothing herein shall be construed to excuse the Issuing Bank from liability to the Company to the extent  of  any  direct  damages  (as  opposed  to  special,  indirect,  consequential  or  punitive  damages,  claims  in  respect of which are hereby waived by the Company to the extent permitted by applicable law) suffered  by the Company that are caused by the Issuing Bank’s failure to exercise care when determining whether                                         40    

 

   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 the  Issuing  Bank  (as  finally  determined  by  a  court  of  competent  jurisdiction),  the  Issuing  Bank  shall  be  deemed to have exercised care in each such determination.  In furtherance of the foregoing and without  limiting the generality thereof, the parties agree that, with respect to documents presented which appear  on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in  its  sole  discretion,  either  accept  and  make  payment  upon  such  documents  without  responsibility  for  further investigation, regardless of any notice or information to the contrary, or refuse to accept and make  payment  upon  such  documents  if  such  documents  are  not  in  strict  compliance  with  the  terms  of  such  Letter of Credit.               (g)   Disbursement Procedures.  The Issuing Bank shall, within the time allowed by  applicable  law  or  the  specific  terms  of  the  applicable  Letter  of  Credit  following  its  receipt  thereof,  examine  all  documents  purporting  to  represent  a  demand  for  payment  under  a  Letter  of  Credit.   The  Issuing Bank shall promptly after such examination notify the Administrative Agent and the Company by  telephone  (confirmed  by  telecopy  or  electronic  mail)  of  such  demand  for  payment  and  whether  the  Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or  delay in giving such notice shall not relieve the Company of its obligation to reimburse the Issuing Bank  and the Lenders with respect to any such LC Disbursement.               (h)   Interim  Interest.   If  the  Issuing  Bank  shall  make  any  LC  Disbursement,  then,  unless the Company 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 Company reimburses such LC Disbursement, at  the rate per annum then applicable to ABR Revolving Loans (or in the case such LC Disbursement is  denominated in a Foreign Currency, at the Overnight Foreign Currency Rate for such Agreed Currency  plus the then effective Applicable Rate with respect to Eurocurrency Revolving Loans); provided that, if  the  Company  fails  to  reimburse  such  LC  Disbursement  when  due  pursuant  to  paragraph (e)  of  this  Section,  then  Section 2.13(c)  shall  apply.   Interest  accrued  pursuant  to  this  paragraph  shall  be for  the  account of the 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 the Issuing Bank for such LC Disbursement shall be  for the account of such Lender to the extent of such payment.               (i)   Replacement and Resignation of the Issuing Bank.  (A) The Issuing Bank may be  replaced at any time by written agreement among the Company, the Administrative Agent, the replaced  Issuing Bank and the successor Issuing Bank.  The Administrative Agent shall notify the Lenders of any  such  replacement  of  the  Issuing  Bank.   At  the  time  any  such  replacement  shall  become  effective,  the  Company  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 the 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  or  extend  or  otherwise amend any existing Letter of Credit.                     (B) Subject to the appointment and acceptance of a successor Issuing Bank, the  Issuing Bank  may resign as  the  Issuing Bank at any time  upon thirty days’ prior written notice to the                                         41    

 

   Administrative Agent, the Company and the Lenders, in which case, the resigning Issuing Bank shall be  replaced in accordance with Section 2.06(i)(A) above.               (j)   Cash Collateralization.  If any Event of Default shall occur and be continuing, on  the  Business  Day  that  the  Company  receives  notice  from  the  Administrative  Agent  or  the  Required  Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure representing  greater  than  50%  of  the  total  LC  Exposure)  demanding  the  deposit  of  cash  collateral  pursuant  to  this  paragraph, the Company shall deposit in an account with the Administrative Agent, in the name of the  Administrative Agent and for the benefit of the Lenders (the “LC Collateral Account”), an amount in cash  equal to 105% of the Dollar Amount of the LC Exposure as of such date plus any accrued and unpaid  interest thereon; provided that (i) the portions of such amount attributable to undrawn Foreign Currency  Letters of Credit or LC Disbursements in a Foreign Currency that the Company is not late in reimbursing  shall be deposited in the applicable Foreign Currencies in the actual amounts of such undrawn Letters of  Credit and LC Disbursements and (ii) the obligation to deposit such cash collateral shall become effective  immediately,  and  such  deposit  shall  become  immediately  due  and  payable,  without  demand  or  other  notice of any kind, upon the occurrence of any Event of Default with respect to any Borrower described  in  Section  7.01(h)  or  7.01(i).   For the  purposes  of  this  paragraph,  the  Dollar  Amount  of  the  Foreign  Currency LC Exposure shall be calculated on the date notice demanding cash collateralization is delivered  to the Company.  The Company also shall deposit cash collateral pursuant to this paragraph as and to the  extent required by Section 2.11(b).  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 such account and the  Company hereby grants the Administrative Agent a security interest in the LC Collateral Account.  Other  than any interest earned on the investment of such deposits, which investments shall be made at the option  and sole discretion of the Administrative Agent and at the Company’s risk and expense, such deposits  shall not bear interest.  Interest or profits, if any, on such investments shall accumulate in such account.   Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank for  LC Disbursements for which it has not been reimbursed, together with related fees, costs and customary  processing  charges,  and,  to  the  extent  not  so  applied,  shall  be  held  for  the  satisfaction  of  the  reimbursement obligations of the Company for the LC Exposure at such time or, if the maturity of the  Loans has been accelerated (but subject to the consent of Lenders with LC Exposure  representing greater  than 50% of the total LC Exposure), be applied to satisfy other Secured Obligations.  If the Company 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 be returned to the Company within  three (3) Business Days after all such Events of Default have been cured or waived.               (k)   Conversion.  In the event that the Loans become immediately due and payable on  any date pursuant to Article VII, all amounts (i) that the Company is at the time or thereafter becomes  required to reimburse or otherwise pay to the Administrative Agent in respect of LC Disbursements made  under any Foreign Currency Letter of Credit (other than amounts in respect of which the Company has  deposited  cash  collateral  pursuant  to  paragraph (j)  above,  if  such  cash  collateral  was  deposited  in  the  applicable Foreign Currency to the extent so deposited or applied), (ii) that the Lenders are at the time or  thereafter become required to pay to the Administrative Agent and the Administrative Agent is at the time  or thereafter becomes required to distribute to the Issuing Bank pursuant to paragraph (e) of this Section  in respect of unreimbursed LC Disbursements made under any Foreign Currency Letter of Credit and (iii)  of each Lender’s participation in any Foreign Currency Letter of Credit under which an LC Disbursement  has  been  made  shall,  automatically  and  with  no  further  action  required,  be  converted  into  the  Dollar  Amount thereof on such date (or in the case of any LC Disbursement made after such date, on the date  such LC Disbursement is made), of such amounts.  On and after such conversion, all amounts accruing  and  owed  to  the  Administrative  Agent,  the  Issuing  Bank  or  any  Lender  in  respect  of  the  obligations                                         42    

 

   described  in  this  paragraph  shall  accrue  and  be  payable  in  Dollars  at  the  rates  otherwise  applicable  hereunder.               (l)   Letter of Credit Amounts.  Unless  otherwise specified  herein, the  amount of a  Letter of Credit at any time shall be deemed to be the amount of such Letter of Credit available to be  drawn at such time; provided that with respect to any Letter of Credit that, by its terms or the terms of any  Letter of Credit Agreement related thereto, provides for one or more automatic increases in the available  amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum amount of such  Letter  of  Credit  after  giving  effect  to  all  such  increases,  whether  or  not  such  maximum  amount  is  available to be drawn at such time.               (m)   Letters  of  Credit  Issued  for  Account  of  Subsidiaries.   Notwithstanding  that  a  Letter of Credit issued or outstanding hereunder supports any obligations of, or is for the account of, a  Subsidiary, or states that a Subsidiary is the “account party,” “applicant,” “customer,” “instructing party,”  or the like of or for such Letter of Credit, and without derogating from any rights of the Issuing Bank  (whether arising by contract, at law, in equity or otherwise) against such Subsidiary in respect of such  Letter of Credit, the Company (i) shall reimburse, indemnify and compensate the Issuing Bank hereunder  for such Letter of Credit (including to reimburse any and all drawings thereunder) as if such Letter of  Credit had been issued  solely for the  account of the Company  and  (ii) irrevocably waives any and  all  defenses that might otherwise be available to it as a guarantor or surety of any or all of the obligations of  such Subsidiary in respect of such Letter of Credit (other than the defense of payment and performance in  full  in  cash).  The  Company  hereby  acknowledges  that  the  issuance  of  such  Letters  of  Credit  for  its  Subsidiaries inures to the benefit of the Company, and that the Company’s business derives substantial  benefits from the businesses of such Subsidiaries.               SECTION 2.07.  Funding of Borrowings.  (a) Each Lender shall make each Loan to be  made by it hereunder on the proposed date thereof solely by wire transfer of immediately available funds  (i) in  the  case  of  Loans  denominated  in  Dollars,  by  12:00  noon,  Chicago time,  to  the  account  of  the  Administrative Agent most recently designated by it for such purpose by notice to the Lenders and (ii) in  the case of each Loan denominated in a Foreign Currency, by 12:00 noon, Local Time, in the city of the  Administrative  Agent’s  Eurocurrency  Payment  Office  for  such  currency  and  at  such  Eurocurrency  Payment  Office  for  such  currency; provided that  Swingline  Loans  shall  be  made  as  provided  in  Section 2.05.   Except  in  respect  of  the  provisions  of  this  Agreement  covering  the  reimbursement  of  Letters of Credit, the Administrative Agent will make such Loans available to the relevant Borrower by  promptly crediting the funds so received in the aforesaid account of the Administrative Agent to (x) an  account of such Borrower maintained with the Administrative Agent in New York City or Chicago and  designated by such Borrower in the applicable Borrowing Request, in the case of Loans denominated in  Dollars and (y) an account of such Borrower in the relevant jurisdiction and designated by such Borrower  in the applicable Borrowing Request, in the case of Loans denominated in a Foreign Currency; provided  that  Revolving  Loans  made  to  finance  the  reimbursement  of  an  LC  Disbursement  as  provided  in  Section 2.06(e) shall be remitted by the Administrative Agent to the Issuing Bank.               (b)   Unless the Administrative Agent shall have received notice from a Lender prior  to  the  proposed  date  of  any  Borrowing  (or  in  the  case  of  an  ABR  Borrowing,  prior  to  12:00  noon,  Chicago  time,  on  the  date  of  such  Borrowing)  that such  Lender  will  not  make  available  to  the  Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that  such Lender has made such share available on such date in accordance with paragraph (a) of this Section  and  may, in  reliance  upon  such  assumption,  make  available  to  the  relevant  Borrower  a  corresponding  amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing available to  the Administrative  Agent, then the applicable  Lender and such Borrower severally agree to pay to the  Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day                                         43    

 

   from and including the date such amount is made available to such Borrower to but excluding the date of  payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the NYFRB Rate  and  a  rate  determined  by  the  Administrative  Agent  in  accordance  with  banking  industry  rules  on  interbank compensation (including without limitation the Overnight Foreign Currency Rate in the case of  Loans denominated in a Foreign Currency) or (ii) in the case of such Borrower, the interest rate applicable  to such Borrowing.  If such Lender pays  such amount to the  Administrative  Agent, then such amount  shall constitute such Lender’s Loan included in such Borrowing.               SECTION 2.08.  Interest Elections.  (a) Each Borrowing initially shall be of the Type  specified in the applicable Borrowing Request and, in the case of a Eurocurrency Borrowing, shall have  an initial Interest Period as specified in such Borrowing Request.  Thereafter, the relevant Borrower may  elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a  Eurocurrency Borrowing, may elect Interest Periods therefor, all as provided in this Section.  A 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 Borrowings, which may not be converted or continued.               (b)   To make an election pursuant to this Section, a Borrower, or the Company on its  behalf, shall notify the Administrative Agent of such election (by irrevocable written notice via an Interest  Election Request signed by such Borrower, or the Company on its behalf) by the time that a Borrowing  Request would be required under Section 2.03 if such Borrower were requesting a Borrowing of the Type  resulting  from  such  election  to  be  made  on  the  effective  date  of  such  election.   Notwithstanding  any  contrary provision herein, this Section shall not be construed to permit any Borrower to (i) change the  currency of any Borrowing, (ii) elect an Interest Period for Eurocurrency Loans that does not comply with  Section 2.02(d)  or  (iii) convert  any  Borrowing  to  a  Borrowing  of a  Type  not  available  under  such  Borrowing.               (c)   Each  Interest  Election  Request  shall  specify  the  following  information  in  compliance with Section 2.02:               (i)   the name of the applicable Borrower and the Borrowing 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 clauses (iii) and (iv) 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;               (iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurocurrency        Borrowing; and                (iv)  if the resulting Borrowing is a Eurocurrency Borrowing, the Interest Period and        Agreed  Currency  to  be  applicable  thereto  after  giving  effect  to  such  election,  which  Interest        Period shall be a period contemplated by the definition of the term “Interest Period”.   If any such Interest Election Request requests a Eurocurrency Borrowing but does not specify an Interest  Period, then the applicable Borrower shall be deemed to have selected an Interest Period of one month’s  duration.                                         44    

 

               (d)   Promptly  following  receipt  of  an  Interest  Election  Request,  the  Administrative  Agent  shall  advise  each  Lender  of  the  details  thereof  and  of  such  Lender’s  portion  of  each  resulting  Borrowing.               (e)   If the relevant Borrower fails to deliver a timely Interest Election Request with  respect to a Eurocurrency Borrowing prior to the end of the Interest Period applicable thereto, then, unless  such  Borrowing  is  repaid  as  provided  herein,  at  the  end  of  such  Interest  Period  (i) in  the  case  of  a  Borrowing denominated in Dollars, such Borrowing shall be converted to an ABR Borrowing and (ii) in  the case of a Borrowing denominated in a Foreign Currency in respect of which the applicable Borrower  shall have failed to deliver an Interest Election Request prior to the third (3rd) Business Day preceding the  end of such Interest Period, such Borrowing shall automatically continue as a Eurocurrency Borrowing in  the same Agreed Currency with an Interest Period of one month unless such Eurocurrency Borrowing is  or  was  repaid  in  accordance  with  Section 2.11.   Notwithstanding  any  contrary provision  hereof,  if  an  Event  of  Default  has  occurred  and  is  continuing  and  the  Administrative  Agent,  at  the  request  of  the  Required  Lenders,  so  notifies  the  Company,  then,  so  long  as  an  Event  of  Default  is  continuing  (i) no  outstanding  Borrowing  denominated  in  Dollars  may  be  converted  to  or  continued  as  a  Eurocurrency  Borrowing, (ii) unless repaid, each Eurocurrency Borrowing denominated in Dollars shall be converted to  an  ABR  Borrowing  at  the  end  of  the  Interest  Period  applicable  thereto  and  (iii) unless repaid,  each  Eurocurrency  Borrowing  denominated  in  a  Foreign  Currency  shall  automatically  be  continued  as  a  Eurocurrency Borrowing with an Interest Period of one month.               SECTION 2.09.  Termination and Reduction of Commitments.  (a) Unless previously  terminated, the Commitments shall terminate on the Maturity Date.               (b)   The  Company  may  at  any  time  terminate,  or  from  time  to  time  reduce,  the  Commitments; provided that  (i) each  reduction  of  the  Commitments  shall  be  in  an  amount  that  is  an  integral multiple of $5,000,000 and not less than $10,000,000 and (ii) the Company shall not terminate or  reduce the Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance  with Section 2.11, (A) any Lender’s Revolving Credit Exposure would exceed its Commitment or (B) the  Dollar Amount of the Total Revolving Credit Exposure would exceed the Aggregate Commitment.               (c)   The Company shall notify the Administrative Agent of any election to terminate  or reduce the Commitments under paragraph (b) of this Section at least three Business Days prior to the  effective date of such termination or reduction, specifying such election and the effective date thereof.   Promptly  following  receipt  of  any  notice,  the  Administrative  Agent  shall  advise the  Lenders  of  the  contents thereof.  Each notice delivered by the Company pursuant to this Section shall be irrevocable;  provided that a notice of termination of the Commitments delivered by the Company may state that such  notice  is  conditioned  upon  the  effectiveness  of  other  credit  facilities  or  other  transactions  specified  therein,  in  which  case  such  notice  may  be  revoked  by  the  Company  (by  notice  to  the  Administrative  Agent on or prior to the specified effective date) if such condition is not satisfied.  Any termination or  reduction of the Commitments shall be permanent.  Each reduction of the Commitments shall be made  ratably among the Lenders in accordance with their respective Commitments.               SECTION 2.10.  Repayment of Loans; Evidence of Debt.  (a) Each Borrower hereby  unconditionally promises to pay (i) to the Administrative Agent for the account of each Lender the then  unpaid principal amount of each Revolving Loan made to such  Borrower on the Maturity Date in the  currency of such Loan and (ii) in the case of the Company, to the Administrative Agent for the account of  the  Swingline  Lender  the  then  unpaid  principal  amount  of  each  Swingline  Loan  on  the  earlier  of  the  Maturity Date and the first date after such Swingline Loan is made that is the 15th or last day of a calendar  month and is at least two Business Days after such Swingline Loan is made; provided that on each date  that a Revolving Borrowing is made, the Company shall repay all Swingline Loans then outstanding and                                         45    

 

   the  proceeds  of  any  such  Borrowing  shall  be  applied  by  the  Administrative  Agent  first  to  repay  any  Swingline Loans outstanding.               (b)   Each Lender shall maintain in accordance with its usual practice an account or  accounts evidencing the indebtedness of each Borrower to such Lender resulting from each Loan made by  such Lender, including the amounts of principal and interest payable and paid to such Lender from time to  time hereunder.               (c)   The Administrative Agent shall maintain accounts in which it shall record (i) the  amount  of  each  Loan  made  hereunder,  the  Class,  Agreed  Currency  and  Type  thereof  and  the  Interest  Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due  and payable from each Borrower to each Lender hereunder and (iii) the amount of any sum received by  the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.               (d)   The entries made in the accounts maintained pursuant to paragraph (b) or (c) of  this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein  absent manifest error; provided that the failure of any Lender or the Administrative Agent to maintain  such accounts or any error therein shall not in any manner affect the obligation of any Borrower to repay  the Loans in accordance with the terms of this Agreement.               (e)   Any Lender may request that Loans made by it to any Borrower be evidenced by  a promissory note.  In such event, the relevant Borrower shall prepare, execute and deliver to such Lender  a  promissory  note  payable  to  such  Lender  (or,  if  requested  by  such  Lender,  to  such  Lender  and  its  registered  assigns)  and  in  substantially  the  form  attached  hereto  as Exhibit  H.   Thereafter,  the  Loans  evidenced  by  such  promissory  note  and  interest  thereon  shall  at  all  times  (including  after  assignment  pursuant to Section 9.04) be represented by one or more promissory notes in such form.  Upon either (i)  payment in full of the Loans evidenced by any such promissory note and termination of the Commitments  relating thereto, or (ii) the assignment of such Loans and Commitments in accordance with Section 9.04  hereof, each such Lender that received  a promissory note shall use commercially reasonable efforts to  cause each such promissory note be returned to the applicable Borrower at the request of such Borrower.               SECTION 2.11.  Prepayment of Loans.               (a)   Any Borrower shall have the right at any time and from time to time to prepay  any Borrowing in whole or in part without premium or penalty (except as provided in Section 2.16) and  any such payment shall be applied as directed by the Company, subject to prior notice in accordance with  the  provisions  of  this  Section 2.11(a).   The  applicable  Borrower,  or  the  Company  on  behalf  of  the  applicable Borrower, shall notify the Administrative Agent (and, in the case of prepayment of a Swingline  Loan, the Swingline Lender) by written notice of any prepayment hereunder (i) in the case of prepayment  of  a  Eurocurrency  Revolving  Borrowing,  not  later  than  11:00 a.m.,  Local  Time,  three  Business Days  before the date of prepayment, (ii) in the case of prepayment of an ABR Revolving Borrowing, not later  than 11:00 a.m., Chicago time, on the date of prepayment or (iii) in the case of prepayment of a Swingline  Loan, not later than 12:00 noon, Chicago time,  on the  date of prepayment.  Each such notice  shall be  irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion  thereof to be prepaid; provided that, if a notice of prepayment is given in connection with a conditional  notice  of  termination  of  the  Commitments  as  contemplated  by  Section 2.09,  then  such  notice  of  prepayment  may  be  revoked  if such  notice of  termination is  revoked  in accordance  with  Section 2.09.   Promptly  following  receipt  of  any  such  notice relating  to  a  Revolving  Borrowing,  the  Administrative  Agent  shall  advise  the  Lenders  of  the  contents  thereof.   Each  partial  prepayment  of  any  Revolving  Borrowing  shall  be  in  an  amount  that  would  be  permitted  in  the  case  of  an  advance  of  a  Revolving  Borrowing of the same Type as provided in Section 2.02.  Each prepayment of a Revolving Borrowing                                         46    

 

   shall  be  applied  ratably  to  the  Loans  included  in  the  prepaid  Borrowing.   Prepayments  shall  be  accompanied  by  (i) accrued  interest  to  the  extent  required  by  Section 2.13  and  (ii) any  break  funding  payments required by Section 2.16.               (b)   If at any time, (i) other than as a result of fluctuations in currency exchange rates,  (A) the  aggregate  principal  Dollar  Amount  of  the  Total  Revolving  Credit  Exposure  (calculated,  with  respect  to those  Credit  Events  denominated  in  Foreign  Currencies,  as of the  most  recent  Computation  Date with respect to each such Credit Event) exceeds the Aggregate Commitment or such sum in respect  of Foreign Subsidiary Borrowers exceeds the Foreign Subsidiary Borrower Sublimit or (B) the aggregate  principal Dollar Amount of the Total Revolving Credit Exposure denominated in Foreign Currencies (the  “Foreign Currency Exposure”) (so calculated), as of the most recent Computation Date with respect to  each such Credit Event, exceeds the Foreign Currency Sublimit or (ii) solely as a result of fluctuations in  currency  exchange  rates,  (A) the  aggregate  principal  Dollar  Amount  of  the  Total  Revolving  Credit  Exposure (so calculated) exceeds 105% of the Aggregate Commitment or such sum in respect of Foreign  Subsidiary  Borrowers  exceeds  105%  of  the  Foreign  Subsidiary  Borrower  Sublimit  or  (B) the  Foreign  Currency  Exposure,  as  of  the  most  recent  Computation  Date  with  respect  to  each  such  Credit  Event,  exceeds  105%  of  the  Foreign  Currency  Sublimit,  the  Borrowers  shall  in  each  case  immediately  repay  Borrowings  or,  if  required  after  the  payment  of  all  Borrowings,  cash  collateralize  LC  Exposure  in  an  account  with  the  Administrative  Agent  pursuant  to  Section 2.06(j),  as  applicable,  in  an  aggregate  principal  amount  sufficient  to  cause  (x) the  aggregate  Dollar  Amount  of  the  Total  Revolving  Credit  Exposure (so calculated) to be less than or equal to the Aggregate Commitment, (y) the Foreign Currency  Exposure to be less than or equal to the Foreign Currency Sublimit and (z) the aggregate Dollar Amount  of all Revolving Credit Exposures in respect of the Foreign Subsidiary Borrowers to be less than or equal  to the Foreign Subsidiary Borrower Sublimit.               SECTION 2.12.  Fees.  (a) The Company agrees to pay to the Administrative Agent  for  the  account  of  each  Lender  a  commitment  fee,  which  shall  accrue  at  the  Applicable  Rate  on  the  average  daily  unused  Dollar  Amount  of  the  Commitment  of  such  Lender  during  the  period  from and  including the Effective Date to but excluding the date on which such Commitment terminates.  Accrued  commitment fees shall be payable in arrears on the fifteenth (15th) day immediately following the last day  of  March,  June,  September  and  December  of  each  year  and  on  the  date  on  which  the  Commitments  terminate, commencing on the first such date to occur after the date hereof.  All commitment fees shall be  computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed  (including the first day but excluding the last day).  For purposes of computing commitment fees, (i) the  Commitment of a Lender (other than the Swingline Lender) shall be deemed to be used to the extent of  the  outstanding  Revolving  Loans  and  LC  Exposure  of  such  Lender,  and  (ii) the  Commitment  of  the  Lender acting as Swingline Lender shall be deemed to be used to the extent of the outstanding Revolving  Loans, LC Exposure and Swingline Loans of such Lender.               (b)   The Company agrees  to pay (i) to the Administrative  Agent for the account of  each  Lender  a  participation  fee  with  respect  to  its  participations  in  each  outstanding  Letter  of  Credit,  which shall accrue on the daily maximum amount then available to be drawn under such Letter of Credit  at  the  same  Applicable  Rate  used to  determine  the  interest  rate  applicable  to Eurocurrency  Revolving  Loans, during the period from and including the Effective Date to but excluding the later of the date on  which such Lender’s Commitment terminates and the date on which such Lender ceases to have any LC  Exposure, and (ii) to the Issuing Bank for its own account a fronting fee, which shall accrue at the rate of  0.125% per annum on the daily maximum amount then available to be drawn under each Letter of Credit  during  the  period from  and  including  the  Effective  Date  to  but  excluding  the  later  of  the  date  of  termination of the Commitments and the date on which there ceases to be any LC Exposure, as well as the  Issuing Bank’s standard fees and commissions (including, without limitation, standard commissions with  respect to commercial Letters of Credit, payable at the time of invoice of such amounts) with respect to                                         47    

 

   the  issuance, amendment, cancellation, negotiation, transfer, presentment or extension of any Letter of  Credit and other processing fees, and other standard costs and charges, of such Issuing bank relating the  Letters of Credit as from time to time in effect.  Unless otherwise specified above, participation fees and  fronting fees  accrued through and  including the  last day of March, June,  September and  December of  each year shall be payable on the fifteenth (15th) day following such last day, commencing on the first  such date to occur after the Effective Date; provided that all such fees shall be payable on the date on  which the Commitments terminate and any such fees accruing after the date on which the Commitments  terminate  shall  be  payable  on  demand.   Any  other  fees  payable  to  the  Issuing  Bank  pursuant  to  this  paragraph  shall  be  payable  within ten  (10) days  after  invoice.  All participation  fees  and  fronting  fees  shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days  elapsed (including the first day but excluding the last day).  Participation fees and fronting fees in respect  of Letters of Credit denominated in Dollars shall be paid in Dollars, and participation fees and fronting  fees in respect of Letters of Credit denominated  in a  Foreign Currency shall be  paid in Dollars in the  Dollar Amount thereof.               (c)   The  Company agrees  to pay to the  Administrative  Agent, for its  own account,  fees  payable  in  the  amounts  and  at  the  times  separately  agreed  upon  between  the  Company  and  the  Administrative Agent.               (d)   All  fees  payable  hereunder  shall  be  paid  on  the  dates  due,  in  Dollars  and  immediately available  funds,  to  the  Administrative  Agent  (or  to  the  Issuing  Bank,  in  the  case  of  fees  payable to it) for distribution, in the case of commitment fees and participation fees, to the Lenders.  Fees  paid shall not be refundable under any circumstances.               SECTION 2.13.  Interest.  (a) The Loans comprising each ABR Borrowing (including  each Swingline Loan) shall bear interest at the Alternate Base Rate plus the Applicable Rate.               (b)   The  Loans  comprising  each  Eurocurrency  Borrowing  shall  bear  interest  at  the  Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.               (c)   Notwithstanding the foregoing, if any principal of or interest on any Loan or any  fee or other amount payable by any Borrower hereunder is not paid when due, whether at stated maturity,  upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment,  at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise  applicable to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any  other amount, 2% plus the rate applicable to ABR Loans as provided in paragraph (a) of this Section.               (d)   Accrued  interest  on  each  Loan  shall  be  payable  in  arrears  on  each  Interest  Payment Date for such Loan and, in the case of Revolving Loans, upon termination of the Commitments;  provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand,  (ii) in  the  event  of any  repayment  or  prepayment  of  any  Loan  (other  than  a  prepayment  of  an  ABR  Revolving  Loan  prior  to  the  end  of  the  Availability  Period),  accrued  interest  on  the  principal  amount  repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of  any conversion of any Eurocurrency Loan prior to the end of the current Interest Period therefor, accrued  interest on such Loan shall be payable on the effective date of such conversion.               (e)   All  interest  hereunder  shall  be  computed  on  the  basis  of  a  year  of  360 days,  except that interest (i) computed by reference to the Alternate Base Rate at times when the Alternate Base  Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a  leap year) and (ii) for Borrowings denominated in Pounds Sterling shall be computed on the basis of a  year of 365 days, and in each case shall be payable for the actual number of days elapsed (including the                                         48    

 

   first day but excluding the last day).  The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO  Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent  manifest error.               (f)   Interest in respect of Loans denominated in Dollars shall be paid in Dollars, and  interest in respect of Loans denominated in a Foreign Currency shall be paid in such Foreign Currency.               SECTION 2.14.  Alternate Rate of Interest.               (a)   If  at  the  time  that  the  Administrative  Agent  shall  seek  to  determine  the  LIBO  Screen  Rate  on  the  Quotation  Day  for  any  Interest  Period for  a  Eurocurrency  Borrowing,  the  LIBO  Screen Rate shall not be available for such Interest Period and/or for the applicable currency with respect  to such Eurocurrency Borrowing for any reason, and the Administrative Agent shall reasonably determine  that  it  is  not  possible  to  determine  the  Interpolated  Rate  (which  conclusion  shall  be  conclusive  and  binding absent manifest error), then the Reference Bank Rate shall be the LIBO Rate for such Interest  Period  for  such  Eurocurrency  Borrowing; provided that  if  the  Reference  Bank  Rate  shall  be  less  than  zero, such rate shall be deemed to be zero for purposes of this Agreement;  provided, further, however,   that  if  less than  two  Reference  Banks  shall  supply  a  rate  to the  Administrative  Agent  for  purposes  of  determining the LIBO Rate for such Eurocurrency Borrowing, (i) if such Borrowing shall be requested in  Dollars, then such Borrowing shall be made as an ABR Borrowing at the Alternate Base Rate and (ii) if  such Borrowing shall be requested in any Foreign Currency, the  LIBO  Rate  shall be  equal to the  rate  determined by the Administrative Agent in its reasonable discretion after consultation with the Company  and consented to in writing by the Required Lenders (the “Alternative Rate”); provided, however, that (i)  until such time as the Alternative Rate shall be determined and so consented to by the Required Lenders,  Borrowings shall not be available in such Foreign Currency and (ii) if the Alternative Rate shall be less  than zero, such rate shall be deemed to be zero for purposes of this Agreement.  It is hereby understood  and agreed that, notwithstanding anything to the contrary set forth in this Section 2.14(a), if at any time  the conditions set forth in Section 2.14(c)(i) or (ii) are in effect, the provisions of this Section 2.14(a) shall  no  longer  be  applicable  for  any  purpose  of  determining  any  alternative  rate  of  interest  under  this  Agreement and Section 2.14(c) shall instead be applicable for all purposes of determining any alternative  rate of interest under this Agreement.               (b)   If  prior  to  the  commencement  of  any  Interest  Period  for  a  Eurocurrency  Borrowing:               (i)   the  Administrative  Agent  determines  (which  determination  shall  be  conclusive        and  binding  absent  manifest  error)  that  adequate  and  reasonable  means  do  not  exist  for        ascertaining  the  Adjusted  LIBO  Rate  or  the  LIBO  Rate,  as  applicable  (including  because  the        LIBO Screen Rate is not available or published on a current basis), for the applicable currency        and such Interest Period; or               (ii)  the Administrative Agent is advised by the Required Lenders that the Adjusted        LIBO Rate or the LIBO Rate, as applicable, for the applicable currency and such Interest Period        will  not  adequately  and  fairly  reflect  the  cost  to  such  Lenders  of  making  or  maintaining  their        Loans included in such Borrowing for such Interest Period and the applicable Agreed Currency;   then the Administrative Agent shall give notice thereof to the applicable Borrower and the Lenders by  telephone, telecopy or electronic mail as promptly as practicable thereafter and, until the Administrative  Agent notifies the applicable Borrower and the Lenders that the circumstances giving rise to such notice  no  longer  exist,  (i) any  Interest  Election  Request  that  requests  the  conversion of  any  Borrowing  to,  or  continuation  of  any  Borrowing  as,  a  Eurocurrency  Borrowing  in  the  applicable  currency  or  for  the                                         49    

 

   applicable Interest Period, as the case may be, shall be ineffective, (ii) if any Borrowing Request requests  a Eurocurrency Borrowing in Dollars, such Borrowing shall be made as an ABR Borrowing and (iii) if  any Borrowing Request requests a Eurocurrency Borrowing in a Foreign Currency, then the LIBO Rate  for such Eurocurrency Borrowing shall be the Alternative Rate; provided that if the circumstances giving  rise  to  such  notice  affect  only one  Type  of  Borrowings,  then  the  other  Type  of  Borrowings  shall  be  permitted.               (c)   Notwithstanding the  foregoing,  if  at  any  time  the  Administrative  Agent  determines (which determination shall be conclusive absent manifest error) that (i) the circumstances set  forth  in  Section 2.14(b)(i) have  arisen  and  such  circumstances  are  unlikely  to  be  temporary  or (ii) the  circumstances  set  forth  in  Section  2.14(b)(i) have  not  arisen  but  any  of  (w)  the  supervisor  for  the  administrator of the LIBO Screen Rate has made a public statement that the administrator of the LIBO  Screen  Rate  is  insolvent  (and  there  is  no  successor  administrator  that  will  continue  publication  of  the  LIBO  Screen  Rate),  (x)  the  administrator  of  the  LIBO  Screen  Rate  has  made  a  public  statement  identifying a specific date after which the LIBO Screen Rate will permanently or indefinitely cease to be  published by it (and there is no successor administrator that will continue publication of the LIBO Screen  Rate),  (y)  the  supervisor  for  the  administrator  of  the  LIBO  Screen  Rate  has  made  a  public  statement  identifying a specific date after which the LIBO Screen Rate will permanently or indefinitely cease to be  published  or  (z)  the  supervisor  for  the  administrator  of  the  LIBO  Screen  Rate  or  a  Governmental  Authority having jurisdiction over the Administrative Agent has made a public statement identifying a  specific date after which the LIBO Screen Rate shall no longer be used for determining interest rates for  loans, then the  Administrative  Agent and the  Company shall endeavor to establish an alternate rate  of  interest  to  the  LIBO  Rate  that  gives  due  consideration  to  the  then  prevailing  market  convention  for  determining a rate of interest for syndicated loans in the United States at such time, and shall enter into an  amendment to this Agreement to reflect such alternate rate of interest and such other related changes to  this  Agreement as may be  applicable; provided that, if such alternate  rate  of interest as so  determined  would  be  less  than  zero,  such  rate  shall  be  deemed  to  be  zero  for  the  purposes  of  this  Agreement.   Notwithstanding  anything  to  the  contrary  in  Section  9.02,  such  amendment  shall  become  effective  without any further action or consent of any other party to this Agreement so long as the Administrative  Agent shall not have received, within five (5) Business Days of the date notice of such alternate rate of  interest is provided to the Lenders, a written notice from the Required Lenders stating that such Required  Lenders object to such amendment.  Until an alternate rate of interest shall be determined in accordance  with this Section 2.14(c) (but, in the case of the circumstances described in clause (ii)(w), clause (ii)(x) or  clause (ii)(y) of the first sentence of this Section 2.14(c), only to the extent the LIBO Screen Rate for the  applicable currency and such Interest Period is not available or published at such time on a current basis),  (x) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any  Borrowing as, a Eurocurrency Borrowing in the applicable currency or for the applicable Interest Period,  as the case may be, shall be ineffective, (y) if any Borrowing Request requests a Eurocurrency Borrowing  in  Dollars,  such  Borrowing  shall  be  made  as  an  ABR  Borrowing  and  (z)  if  any  Borrowing  Request  requests a Eurocurrency Borrowing in a Foreign Currency, then such request shall be ineffective.               SECTION 2.15.  Increased Costs.  (a) If any Change in Law shall:               (i)   impose,  modify  or  deem  applicable  any  reserve,  special  deposit,  liquidity  or        similar  requirement  (including  any  compulsory  loan  requirement,  insurance  charge  or  other        assessment)  against  assets  of,  deposits  with  or  for  the  account  of,  or  credit  extended  by,  any        Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or the Issuing        Bank;                                          50    

 

               (ii)  impose on any Lender or the Issuing Bank or the London interbank market any        other condition, cost or expense affecting this Agreement or Loans made by such Lender or any        Letter of Credit or participation therein; or               (iii) subject any Recipient to any Taxes on its loans, loan principal, letters of credit,        commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable        thereto (other than the imposition or change in rate of any (A) Indemnified Taxes, (B) Excluded        Taxes or (C) Other Taxes);   and the result of any of the foregoing shall be to increase the cost to such Person of making, continuing,  converting or maintaining any Loan or of maintaining its obligation to make any such Loan or to increase  the cost to such Person of participating in, issuing or maintaining any Letter of Credit or to reduce the  amount  of any  sum  received  or  receivable  by  such Person  hereunder,  whether  of  principal,  interest or  otherwise, then the applicable Borrower will pay to such Person such additional amount or amounts as  will  compensate  such  Person  for  such  additional  costs  incurred  or  reduction  suffered  as  reasonably  determined by such Person (which determination shall be made in good faith (and not on an arbitrary or  capricious basis) and generally consistent with similarly situation customers of such Person and in each  case as determined by such Person) under agreements having provisions similar to this Section 2.15, after  consideration of such factors as such Person then reasonably determines to be relevant.               (b)   If any Lender or the Issuing Bank reasonably determines that any Change in Law  regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on  such  Lender’s  or  the  Issuing  Bank’s  capital  or  on  the  capital  of  such  Lender’s  or  the  Issuing  Bank’s  holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in  Letters of Credit or Swingline Loans held by, such Lender, or the Letters of Credit issued by the Issuing  Bank, to a level below that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s  holding  company  could  have  achieved  with  respect  thereto  but  for  such  Change  in  Law (taking  into  consideration  such  Lender’s  or  the  Issuing  Bank’s  policies  and  the  policies  of  such  Lender’s  or  the  Issuing Bank’s holding company with respect to capital adequacy and liquidity), then from time to time  the applicable Borrower will pay to such Lender or the Issuing Bank, as the case may be, such additional  amount or amounts as will compensate such Lender or the Issuing Bank or such Lender’s or the Issuing  Bank’s holding company for any such reduction suffered as reasonably determined by such Lender or the  Issuing  Bank  (which  determination shall  be  made in  good  faith  (and  not on  an  arbitrary  or capricious  basis) and generally consistent with similarly situated customers of such Lender or the Issuing Bank, as  applicable and in each case as determined by such Lender or the Issuing Bank under agreements having  provisions similar to this Section 2.15, after consideration of such factors as such Lender or the Issuing  Bank, as applicable, then reasonably determines to be relevant).               (c)   A certificate of a Lender or the Issuing Bank describing the Change in Law in  reasonable detail and setting forth the amount or amounts necessary to compensate such Lender or the  Issuing  Bank  or  its  holding  company,  as  the  case  may  be,  as  specified  in  paragraph (a)  or  (b)  of this  Section shall be delivered to the Company and shall be conclusive absent manifest error.  The Company  shall pay, or cause the other Borrowers to pay, such Lender or the Issuing Bank, as the case may be, the  amount shown as due on any such certificate within 30 days after receipt thereof.               (d)   Failure  or  delay  on  the  part  of  any  Lender  or  the  Issuing  Bank  to  demand  compensation pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s  right to demand such compensation; provided that the Company shall not be required to compensate a  Lender or the Issuing Bank pursuant to this Section for any increased costs or reductions incurred more  than  180 days  prior to the date that such  Lender or the  Issuing Bank, as the  case may be,  notifies the  Company of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or                                         51    

 

   the Issuing Bank’s intention to claim compensation therefor; provided further that, if the Change in Law  giving rise to such increased costs or reductions is retroactive, then the 180-day period referred to above  shall be extended to include the period of retroactive effect thereof.               SECTION 2.16.  Break  Funding  Payments.   In  the  event  of  (a) the  payment  of  any  principal of any Eurocurrency Loan other than  on the  last day of an Interest Period applicable  thereto  (including as a result of an Event of Default or as a result of any prepayment pursuant to Section 2.11),  (b) the conversion of any Eurocurrency Loan other than on the last day of the Interest Period applicable  thereto,  (c) the  failure  to  borrow,  convert,  continue  or  prepay  any  Eurocurrency  Loan  on  the  date  specified  in  any  notice  delivered  pursuant  hereto  (regardless  of  whether  such  notice  may  be  revoked  under Section 2.11(a) and is revoked in accordance therewith) or (d) the assignment of any Eurocurrency  Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the  Company pursuant to Section 2.19 or 9.02(e), then, in any such event, the Borrowers shall compensate  each Lender for the loss, cost and expense attributable to such event; provided that each such Lender shall  use reasonable efforts to mitigate such loss, cost and expense in accordance with Section 2.19.  Such loss,  cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the  excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such  Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such  Loan, for the period from the date of such event to the last day of the then current Interest Period therefor  (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest  Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount for  such period at the interest rate which such Lender would bid were it to bid, at the commencement of such  period, for deposits in the relevant currency of a comparable amount and period from other banks in the  eurocurrency market.  A certificate of any Lender setting forth any amount or amounts that such Lender is  entitled  to  receive  pursuant  to  this  Section,  including,  if  requested  by  the  Company,  a  description  in  reasonable detail of the basis for such compensation and a calculation of such amount or amounts (but  excluding any confidential or proprietary information of such Lender), shall be delivered to the applicable  Borrower and shall be conclusive absent manifest error.  The applicable Borrower shall pay such Lender  the amount shown as due on any such certificate within 30  days after receipt thereof.               SECTION 2.17.  Taxes.  (a) Any and all payments by or on account of any obligation  of any Loan Party hereunder or any other Loan Document shall be made free and clear of and without  deduction for any Indemnified Taxes or Other Taxes; provided that if any Loan Party or Administrative  Agent shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the  sum  payable  shall  be  increased  as  necessary  so  that  after  making  all  required  deductions  (including  deductions applicable to additional sums payable under this Section) the Administrative Agent or Lender  (as the case may be) receives an amount equal to the sum it would have received had no such deductions  been made, (ii) such Loan Party shall make such deductions and (iii) such Loan Party shall pay the full  amount deducted to the relevant Governmental Authority in accordance with applicable law.               (b)   In  addition,  each  Loan  Party  shall  pay,  or  at  the  option  of  the  Administrative  Agent timely reimburse it for the payment of, any Other Taxes related to such Loan Party and imposed on  or  incurred  by  the  Administrative  Agent  or  a  Lender  to  the  relevant  Governmental  Authority  in  accordance with applicable law.               (c)   The  relevant  Loan  Party  shall  indemnify  the  Administrative  Agent  or  each  Lender, within ten (10) days after written demand therefor, for the full amount of any Indemnified Taxes  or Other Taxes paid or payable by the Administrative Agent or such Lender, as the case may be, on or  with respect to any payment by or on account of any obligation of such Loan Party hereunder or any other  Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to  amounts payable under this Section) and any penalties, interest and reasonable expenses arising therefrom                                         52    

 

   or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally  imposed  or  asserted  by  the  relevant  Governmental  Authority.   A  certificate  as  to  the  amount  of  such  payment or liability delivered to the Company by a Lender or by the Administrative Agent on its own  behalf or on behalf of a Lender, shall be conclusive absent manifest error.               (d)   As  soon  as  practicable  after  any  payment  of  Taxes  by  any  Loan  Party  to  a  Governmental Authority pursuant to this Section 2.17, such Loan Party shall deliver to the Administrative  Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such  payment,  a  copy  of  the  return  reporting  such  payment  or  other  evidence  of  such  payment  reasonably  satisfactory to the Administrative Agent.               (e)   (i) Any Lender that is entitled to an exemption from or reduction of withholding  Tax with respect to payments made under this Agreement or any other Loan Document shall deliver to  the Borrowers (with a copy to the Administrative Agent) at the time or times reasonably requested by a  Borrower, such properly completed and executed documentation reasonably requested by such Borrower  or the Administrative Agent as will permit such payments to be made without withholding or at a reduced  rate.  In addition, any Lender, if reasonably requested by the Borrowers or the Administrative Agent, shall  deliver such other documentation prescribed by applicable law or reasonably requested by a Borrower or  the Administrative Agent as will enable the Borrowers or the Administrative Agent to determine whether  or  not  such  Lender  is  subject  to  backup  withholding  or  information  reporting  requirements.   Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and  submission of such documentation (other than such documentation set forth in Sections  2.17(e)(ii)(A),  2.17(ii)(B)  and  2.17(h)  below)  shall  not  be  required  if  in  the  Lender’s  reasonable  judgment  such  completion,  execution  or submission  would  subject  such  Lender  to  any  material  unreimbursed  cost  or  expense or would materially prejudice the legal or commercial position of such Lender.                     (ii)   Without  limiting  the  generality  of  the  foregoing,  in  the  event  that  the        Company is the Borrower:                     (A)   any  Lender  that  is  a  United  States  person (as  defined  in  Section              7701(a)(30) of the Code) shall deliver to such Borrower and the Administrative Agent on              or prior to the date on which such Lender becomes a Lender under this Agreement (and              from  time  to  time  thereafter  upon  the  reasonable  request  of such  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 such Borrower and the Administrative Agent (in such number of copies as shall              be  requested  by  the  recipient)  on  or  prior  to  the  date  on  which  such  Foreign  Lender              becomes  a  Lender  under  this  Agreement  (and  from  time  to  time  thereafter  upon  the              reasonable  request  of  such  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 Form                    W-8BEN-E, as applicable, 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,  as  applicable,  establishing  an                                         53    

 

                     exemption from, or reduction of, U.S. Federal withholding Tax pursuant to the                    “business profits” or “other income” article of such tax treaty;                     (2) in  the  case  of  a  Foreign  Lender  claiming  that  its  extension  of  credit  will                    generate  U.S.  effectively  connected  income,  executed  copies  of  IRS  Form  W-                   8ECI;                     (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 I-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 Company within the meaning of Section 881(c)(3)(B) of the                    Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of                    the Code (a “U.S. Tax Compliance Certificate”) and (y) executed copies of IRS                    Form W-8BEN or IRS Form W-8BEN-E, as applicable; 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 or                    IRS  Form  W-8BEN-E,  as  applicable,  a  U.S.  Tax  Compliance  Certificate                    substantially  in  the  form  of Exhibit  I-2 or Exhibit  I-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 I-4 on behalf of each such direct and indirect                    partner; and                     (C)   any  Foreign  Lender  shall,  to  the  extent  it  is  legally  entitled  to  do  so,              deliver to such Borrower and the Administrative Agent (in such number of copies as shall              be  requested  by  the  recipient)  on  or  prior  to  the  date  on  which  such  Foreign  Lender              becomes  a  Lender  under  this  Agreement  (and  from  time  to  time  thereafter  upon  the              reasonable  request of  such  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  such              Borrower  or  the  Administrative  Agent  to  determine  the  withholding  or  deduction              required to be made.                     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 Company and the Administrative Agent in writing of its legal inability to        do so.               (f)   If the Administrative Agent or a Lender determines, in its reasonable discretion,  that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by a Loan  Party or with respect to which a Loan Party  has paid additional amounts pursuant to this Section 2.17, it  shall pay over such refund to such Loan Party (but only to the extent of indemnity payments made, or  additional amounts paid, by such Loan Party under this Section 2.17 with respect to the Taxes or Other  Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or such  Lender and without interest (other than any interest paid by the relevant Governmental Authority with  respect to such refund); provided, that such Loan Party, upon the request of the Administrative Agent or                                         54    

 

   such Lender, agrees to repay the amount paid over to such Loan Party (plus any penalties, interest or other  charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in  the event the Administrative Agent or such Lender is required to repay such refund to such Governmental  Authority. Notwithstanding  anything  to  the  contrary  in  this  paragraph  (f),  in  no  event  will  the  Administrative Agent or Lender be required to pay any amount to a Loan Party pursuant to this paragraph  (f) the payment of which would place the Administrative Agent or Lender in a less favorable net after- Tax  position  than  the  Administrative  Agent  or  Lender  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 shall not be construed to require the Administrative Agent or any Lender to make available its  Tax returns (or any other information relating to its Taxes which it deems confidential) to any Loan Party  or any other Person.               (g)   Each Lender shall severally indemnify the Administrative Agent for any Taxes  (but, in the case of any Indemnified Taxes or Other Taxes, only to the extent that any Loan Party has not  already indemnified the Administrative Agent for such Indemnified Taxes or Other Taxes and without  limiting the obligation of each Loan Party to do so) attributable to such Lender that are paid or payable by  the  Administrative  Agent in connection with this  Agreement (including any Taxes attributable to such  Lender’s  failure  to  comply  with  the  provisions  of  Section  9.04(c)  relating  to  the  maintenance  of  a  Participant Register) and any reasonable expenses arising therefrom or with respect thereto, whether or  not such amounts were correctly or legally imposed or asserted by the relevant Governmental Authority.   The  indemnity  under  this  Section 2.17(g)  shall  be  paid  within  ten  (10) days  after  the  Administrative  Agent  delivers  to  the  applicable  Lender  a  certificate  stating  the  amount  so  paid  or  payable  by  the  Administrative  Agent.   Such  certificate  shall  be  conclusive  of  the  amount  so  paid  or  payable  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 (g).               (h)   If  a  payment  made  to  a  Lender  under  this  Agreement  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 Company and the Administrative Agent, at the  time or times prescribed by law and at such time or times reasonably requested by the Company 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  Company or the  Administrative  Agent as may be  necessary for each  Borrower and the  Administrative  Agent  to  comply  with  its  obligations  under  FATCA,  to  determine  that  such  Lender  has  or  has  not  complied  with  such  Lender’s  obligations  under  FATCA  or,  as  necessary,  to  determine  the  amount  to  deduct and  withhold from  such payment.  Solely for purposes of this  Section 2.17(h), “FATCA”  shall  include any amendments made to FATCA after the date of this Agreement.               (i)   For  purposes  of  determining  withholding  Taxes  imposed  under  FATCA,  the  Borrowers and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative  Agent to treat) this Agreement and the Loans as not qualifying as “grandfathered obligations” within the  meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).               (j)   For the purposes of this Section 2.17, references to “Lender” includes the Issuing  Bank.                                          55    

 

               SECTION 2.18.  Payments  Generally;  Allocation  of  Proceeds;  Pro  Rata  Treatment;  Sharing of Set-offs.                 (a)   Each  Borrower shall  make  each  payment  required  to  be  made  by  it  hereunder  (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under  Section 2.15,  2.16  or  2.17,  or  otherwise)  prior  to  (i) in  the  case  of  payments  denominated  in  Dollars,  12:00 noon, Chicago time  and  (ii) in the case  of payments  denominated  in a Foreign Currency, 12:00  noon,  Local  Time, in  the  city  of  the  Administrative  Agent’s  Eurocurrency  Payment  Office  for  such  currency, in each case on the date when due, in immediately available funds, without setoff, recoupment  or counterclaim (but without prejudice to any Borrowers’ rights with respect to any Defaulting Lender  hereunder).   Any  amounts  received  after  such  time  on  any  date  may,  in  the  discretion  of  the  Administrative  Agent,  be  deemed  to  have  been  received  on  the  next  succeeding  Business  Day  for  purposes of calculating interest thereon.  All such  payments  shall be  made (i) in the  same  currency in  which the applicable Credit Event was made (or where such currency has been converted to euro, in euro)  and (ii) to the Administrative Agent at its offices at 10 South Dearborn Street, Chicago, Illinois 60603 or,  in  the  case  of  a  Credit  Event  denominated  in  a  Foreign  Currency,  the  Administrative  Agent’s  Eurocurrency Payment Office for such currency, except payments to be made directly to the Issuing Bank  or the Swingline Lender as expressly provided herein and except that payments pursuant to Sections 2.15,  2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto.  The Administrative Agent shall  distribute  any  such  payments  denominated  in the  same  currency  received  by  it  for the account  of  any  other Person to the appropriate recipient promptly following receipt thereof.  If any payment hereunder  shall  be  due  on  a  day  that  is  not  a  Business  Day,  the  date  for  payment  shall  be  extended  to  the  next  succeeding  Business  Day,  and,  in  the case  of  any  payment  accruing  interest,  interest  thereon  shall  be  payable for the period of such extension.  Notwithstanding the foregoing provisions of this Section, if,  after the making of any Credit Event in any Foreign Currency, currency control or exchange regulations  are imposed in the country which issues such currency with the result that the type of currency in which  the  Credit  Event  was  made  (the  “Original  Currency”)  no longer  exists  or  any  Borrower is  not able  to  make payment to the Administrative Agent for the account of the Lenders in such Original Currency, then  all payments to be made by such Borrower hereunder in such currency shall instead be made when due in  Dollars in an amount equal to the Dollar Amount (as of the date of repayment) of such payment due, it  being the intention of the parties hereto that the Borrowers take all risks of the imposition of any such  currency control or exchange regulations.               (b)   Any  proceeds  of  Collateral  received  by  the  Administrative  Agent  (i) not  constituting  a  specific  payment  of  principal,  interest,  fees  or  other  sum  payable  under  the  Loan  Documents (which shall be applied as specified by the Company) or (ii) after an Event of Default has  occurred and is continuing and the Administrative Agent so elects or the Required Lenders so direct, shall  be applied ratably first, to pay any fees, indemnities, or expense reimbursements including amounts then  due to the Administrative Agent and the  Issuing Bank from any Borrower, second, to pay any fees or  expense reimbursements then due to the Lenders from any Borrower, third, to pay interest then due and  payable  on  the  Loans  ratably, fourth,  to  prepay  principal  on  the  Loans  and  unreimbursed  LC  Disbursements  and  any  other  amounts  owing with  respect  to  Banking  Services  Obligations  and  Swap  Obligations ratably, fifth, to pay an amount to the Administrative Agent equal to one hundred five percent  (105%)  of  the  aggregate  undrawn  face  amount  of  all  outstanding  Letters  of  Credit  and  the  aggregate  amount of any unpaid LC Disbursements, to be held as cash collateral for such Obligations, and sixth, to  the  payment  of  any  other  Secured  Obligation  due  to  the  Administrative  Agent  or  any  Lender  by  any  Borrower.  Notwithstanding the foregoing, amounts received from any Loan Party shall not be applied to  any Excluded Swap Obligation of such Loan Party.  Notwithstanding anything to the contrary contained  in this Agreement, unless so directed by the Company, or unless an Event of Default is in existence, none  of the Administrative Agent or any Lender shall apply any payment which it receives to any Eurocurrency  Loan  of  a  Class,  except  (a) on  the  expiration  date  of  the  Interest  Period  applicable  to  any  such                                         56    

 

   Eurocurrency Loan or (b) in the event, and only to the extent, that there are no outstanding ABR Loans of  the  same  Class  and,  in  any  event,  the  Borrowers  shall  pay  the  break  funding  payment  required  in  accordance with Section 2.16.  The Administrative Agent and the Lenders shall have the continuing and  exclusive right to apply and reverse and reapply any and all such proceeds and payments to any portion of  the Secured Obligations.  Notwithstanding the foregoing, (x) any such applicable proceeds from property  of the Domestic Loan Parties shall be applied to the Secured Obligations (other than the Foreign Secured  Obligations and the Secured Obligations that constitute a Guarantee of the Foreign Secured Obligations)  before  being  applied  to  any  of  the  Foreign  Secured  Obligations  and  (y)  the  application  of  any  such  applicable proceeds from Collateral securing solely the Foreign Secured Obligations shall only be made  in respect of the Foreign Secured Obligations in the same order set forth above.               (c)   At the election of the Administrative Agent, all payments of principal, interest,  LC  Disbursements,  fees,  premiums,  reimbursable  expenses  (including,  without  limitation,  all  reimbursement for fees and expenses pursuant to Section 9.03), and other sums payable under the Loan  Documents, may be paid from the proceeds of Borrowings made hereunder whether made following a  request by a Borrower (or the Company on behalf of a Borrower) pursuant to Section 2.03 or a deemed  request  as  provided  in  this  Section  or  may  be  deducted  from  any  deposit  account  of  such  Borrower  maintained  with  the  Administrative  Agent.   Each  Borrower  hereby  irrevocably  authorizes  (i) the  Administrative Agent to make a Borrowing for the purpose of paying each payment of principal, interest  and fees as it becomes due hereunder or any other amount due under the Loan Documents and agrees that  all  such  amounts  charged  shall  constitute  Loans  (including  Swingline  Loans)  and  that  all  such  Borrowings shall be deemed to have been requested pursuant to Section 2.03 or 2.05, as applicable, and  (ii) if an Event of Default exists or the Company agrees in writing, the Administrative Agent to charge  any deposit account of the relevant Borrower maintained with the Administrative Agent for each payment  of  principal,  interest  and  fees  as  it  becomes  due  hereunder  or  any  other  amount  due  under  the  Loan  Documents.               (d)   If  any  Lender  shall,  by  exercising  any  right  of  set-off  or  counterclaim  or  otherwise,  obtain  payment  in  respect  of  any  principal  of  or  interest  on  any  of  its  Revolving  Loans  or  participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment of a  greater  proportion  of  the  aggregate  amount  of  its  Revolving  Loans  and  participations  in  LC  Disbursements  and  Swingline  Loans  and  accrued  interest  thereon  than  the  proportion  received  by  any  other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value)  participations in the Revolving Loans and participations in LC Disbursements and Swingline Loans of  other  Lenders  to  the  extent  necessary  so  that  the  benefit  of  all  such  payments  shall  be  shared  by  the  Lenders  ratably  in  accordance  with the  aggregate  amount  of  principal  of  and  accrued  interest  on their  respective Revolving Loans and participations in LC Disbursements and Swingline Loans; provided that  (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is  recovered,  such participations shall be rescinded and the purchase price restored to the extent of such  recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any  payment made by any Borrower pursuant to and in accordance with the express terms of this Agreement  or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in  any  of  its  Loans  or  participations  in  LC  Disbursements  and  Swingline  Loans  to  any  assignee  or  participant, other than to the Company or any Subsidiary or Affiliate thereof (as to which the provisions  of this paragraph shall apply).  Each Borrower consents to the foregoing and agrees, to the extent it may  effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing  arrangements may exercise against such Borrower rights of set-off and counterclaim with respect to such  participation as fully as if such Lender were a direct creditor of such Borrower under this Agreement in  the amount of such participation.                                          57    

 

               (e)   Unless the Administrative Agent shall have received, prior to any date on which  any  payment  is  due  to  the  Administrative  Agent  for  the  account  of  the  Lenders  or  the  Issuing  Bank  pursuant  to  the  terms  of  this  Agreement  or  any  other  Loan  Document,  notice  from  the  applicable  Borrower that such Borrower will not make such payment, the Administrative Agent may assume that  such Borrower has made such payment on such date in accordance herewith and may, in reliance upon  such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount due.  In  such event, if such Borrower has not in fact made such payment, then each of the Lenders or the Issuing  Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the  amount  so  distributed  to  such  Lender  or  Issuing  Bank  with  interest  thereon,  for  each  day  from  and  including  the  date  such  amount  is  distributed  to  it  to  but  excluding  the  date  of  payment  to  the  Administrative  Agent,  at the  greater  of the  NYFRB Rate  and  a  rate  determined  by  the  Administrative  Agent in accordance with banking industry rules on interbank compensation (including without limitation  the Overnight Foreign Currency Rate in the case of Loans denominated in a Foreign Currency).               (f)   If any Lender shall fail to make any payment required to be made by it pursuant  to Section 2.05(c), 2.06(d) or (e), 2.07(b), 2.18(e) or 9.03(c), then the Administrative Agent may, in its  discretion (notwithstanding any contrary provision hereof), (i) apply any amounts thereafter received by  the Administrative Agent for the account of such Lender and for the benefit of the Administrative Agent,  the Swingline Lender or the Issuing Bank to satisfy such Lender’s obligations to it under such Section  until  all  such  unsatisfied  obligations  are  fully  paid  and/or  (ii) hold  any  such  amounts  in  a  segregated  account  over  which  the  Administrative  Agent  shall  have  exclusive  control  as  cash  collateral  for,  and  application to, any future funding obligations of such Lender under any such Section; in the case of each  of clauses (i) and (ii) above, in any order as determined by the Administrative Agent in its discretion.               SECTION 2.19.  Mitigation Obligations; Replacement of Lenders.  (a) If any Lender  (or  its  Affiliate)  requests  compensation  under  Section 2.15,  or  if  any  Borrower  is  required  to  pay  any  Indemnified Taxes or additional amounts to any Lender (or its Affiliate) or any Governmental Authority  for the account of any Lender (or its Affiliate) pursuant to Section 2.17, then such Lender (or its Affiliate)  shall  use  reasonable  efforts  to  designate  a  different  lending  office  for  funding  or  booking  its  Loans  hereunder or to assign its rights and obligations hereunder to another of its offices, branches or Affiliates,  if, in the judgment of such Lender (or its Affiliate), such designation or assignment (i) would eliminate or  reduce amounts payable pursuant to Section 2.15 or 2.17, as the case may be, in the future and (ii) would  not subject such Lender (or its Affiliate) to any unreimbursed cost or expense and would not otherwise be  disadvantageous to such Lender (or its Affiliate).  The Company hereby agrees to pay all reasonable costs  and  expenses  incurred  by  any  Lender  (or  its  Affiliate)  in  connection  with  any  such  designation  or  assignment.               (b)   If  (i) any  Lender  (or  its  Affiliate)  requests  compensation  under  Section 2.15,  (ii) any Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender (or its  Affiliate)  or  any  Governmental  Authority  for  the  account  of  any  Lender  (or  its  Affiliate)  pursuant  to  Section 2.17 or (iii) any Lender becomes a Defaulting Lender, then the Company 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 Section 9.04),  all its interests, rights (other than its existing rights to payments pursuant to Section 2.15 or 2.17) and  obligations under this Agreement and the other Loan Documents to an assignee that shall assume such  obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that  (i) the  Company  shall  have  received  the  prior  written  consent  of  the  Administrative  Agent  (and  if  a  Commitment  is  being  assigned,  the  Issuing  Bank  and  the  Swingline  Lender),  which  consent  shall  not  unreasonably  be  withheld,  (ii) subject  to  the  Borrowers’  rights  with  respect  to  Defaulting  Lenders  hereunder, such Lender shall have received payment of an amount equal to the outstanding principal of its  Loans  and  funded  participations  in  LC  Disbursements  and  Swingline  Loans,  accrued  interest  thereon,                                         58    

 

   accrued  fees  and  all  other  amounts  payable  to  it  hereunder,  from  the  assignee  (to  the  extent  of  such  outstanding principal and accrued interest and fees) or the Company (in the case of all other amounts) and  (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.15 or  payments required to be made pursuant to Section 2.17, such assignment will result in a reduction in such  compensation or payments.  A Lender shall not be required to make any such assignment and delegation  if,  prior  thereto,  as  a  result  of  a  waiver  by  such  Lender  or  otherwise,  the  circumstances  entitling  the  Company to require such  assignment and delegation cease to apply.  Each party hereto agrees that (i) an  assignment  required  pursuant  to  this  paragraph  may  be  effected  pursuant  to  an  Assignment  and  Assumption  executed  by  the  Company,  the  Administrative  Agent  and  the  assignee  (or,  to  the  extent  applicable,  an  agreement  incorporating  an  Assignment  and Assumption  by  reference  pursuant  to  an  Approved Electronic Platform as to which the Administrative Agent and such parties are participants),  and  (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 and be bound by the terms thereof;  provided that, following the effectiveness of any such assignment, the other parties to such assignment  agree  to  execute  and  deliver  such  documents  necessary  to  evidence such  assignment  as  reasonably  requested  by the  applicable  Lender, provided that any such documents  shall be without recourse to or  warranty by the parties thereto.               SECTION 2.20.  Expansion  Option.   The Company  may  from  time  to  time  elect  to  increase the Commitments or enter into one or more tranches of term loans (each an “Incremental Term  Loan”), in each case in minimum increments of $25,000,000 so long as, after giving effect thereto, the  aggregate amount of such increases and all such Incremental Term Loans does not exceed $200,000,000.   The Company may arrange for any such increase or tranche to be provided by one or more Lenders (each  Lender so agreeing to an increase in its Commitment, or to participate in such Incremental Term Loans,  an “Increasing Lender”), or by one or more new banks, financial institutions or other entities (each such  new  bank,  financial  institution  or  other  entity,  an  “Augmenting  Lender”; provided that  no  Ineligible  Institution may be an Augmenting Lender), which agree to increase their existing Commitments, or to  participate in such Incremental Term Loans, or provide new Commitments, as the case may be; provided  that (i) each Augmenting Lender, shall be subject to the approval of the Company and the Administrative  Agent (such approval not to be unreasonably withheld, conditioned or delayed) and (ii) (x) in the case of  an Increasing Lender, the Company and such Increasing Lender execute an agreement substantially in the  form  of Exhibit C hereto,  and  (y) in  the  case  of  an  Augmenting  Lender,  the  Company  and  such  Augmenting Lender execute an agreement substantially in the form of Exhibit D hereto.  No consent of  any Lender (other than the Lenders participating in the increase or any Incremental Term Loan) shall be  required  for  any  increase  in  Commitments  or  Incremental  Term  Loan  pursuant  to  this  Section 2.20.   Increases and new Commitments and Incremental Term Loans created pursuant to this Section 2.20 shall  become  effective  on  the  date  agreed  by  the  Company,  the  Administrative  Agent  and  the  relevant  Increasing  Lenders  or  Augmenting  Lenders,  and  the  Administrative  Agent  shall  notify  each  Lender  thereof.  Notwithstanding the foregoing, no increase in the Commitments (or in the Commitment of any  Lender) or tranche of Incremental Term Loans shall become effective under this paragraph unless (other  than with respect to the incurrence of Incremental Term Loans the proceeds of which shall be used to  consummate  a  Limited  Conditionality Acquisition as to which the immediately following condition (i)  below shall not apply), (i) on the proposed date of the effectiveness of such increase or Incremental Term  Loans, (A) the conditions set forth in paragraphs (a) and (b) of Section 4.02 shall be satisfied or waived  by the Required Lenders and the Administrative Agent shall have received a certificate to that effect dated  such  date  and  executed  by  a  Financial  Officer  of  the  Company  and  (B) the  Company  shall  be  in  compliance  (on  a  Pro Forma  Basis)  with  the  covenants  contained  in  Section 6.11  and  (ii) the  Administrative Agent shall have received (x) documents and opinions consistent with those delivered on  the  Effective  Date  as  to the  organizational power and authority of the  Borrowers to borrow hereunder  after  giving  effect  to  such  increase  or  Incremental  Term  Loan  and  (y)  reaffirmations  from  the  Loan  Parties; provided that no Incremental Term Loans in respect of a Limited Conditionality Acquisition shall                                         59    

 

   become  effective  unless  (1)  as  of  the  date  of  execution  of  the  Limited  Conditionality  Acquisition  Agreement by the parties thereto, no Default or Event of Default shall have occurred and be continuing or  would result from entry into the Limited Conditionality Acquisition Agreement, (2) as of the date of the  borrowing of such Incremental Term Loans, no Event of Default under Section 7.01(a), (b), (h), (i) or (j)  is  in  existence  immediately  before  or  after  giving  effect  (including  on  a  Pro  Forma  Basis)  to  such  borrowing and to any concurrent transactions and any substantially concurrent use of proceeds thereof,  (3) the representations and warranties of each Loan Party set forth in the Loan Documents shall be true  and  correct  in  all  material  respects  (or,  in  the  case  of  any  representation  or  warranty  qualified  by  materiality  or  Material  Adverse  Effect,  in  all  respects)  as  of  the  date  of  execution  of  the  applicable  Limited Conditionality Acquisition Agreement by the parties thereto, (4) as of the date of the borrowing  of  such  Incremental  Term  Loans,  customary  “Sungard”  representations  and  warranties  (with  such  representations and warranties to be reasonably determined by the Lenders providing such Incremental  Term Loans) shall be true and correct in all material respects  (or, in the case of any representation or  warranty qualified by materiality or Material Adverse Effect, in all respects) immediately prior to, and  after giving effect to, the incurrence of such Incremental Term Loans and (5) as of the date of execution  of the related Limited Conditionality Acquisition Agreement by the parties thereto, the Company shall be  in compliance (on a Pro Forma Basis) with the covenants contained in Section 6.11.  On the effective date  of  any  increase  in  the  Commitments  or  any  Incremental  Term  Loans  being  made,  (i) each  relevant  Increasing  Lender  and  Augmenting  Lender  shall  make  available  to the  Administrative  Agent  such  amounts in immediately available funds as the Administrative Agent shall determine, for the benefit of  the other Lenders, as being required in order to cause, after giving effect to such increase and the use of  such  amounts  to  make  payments  to  such  other  Lenders,  each  Lender’s  portion  of  the  outstanding  Revolving  Loans  of  all  the  Lenders  to  equal its  Applicable  Percentage  of such  outstanding  Revolving  Loans, and (ii) except in the case of any Incremental Term Loans, the Borrowers shall be deemed to have  repaid  and  reborrowed  all  outstanding  Revolving  Loans  as  of  the  date  of  any  increase  in  the  Commitments (with such reborrowing to consist of the Types of Revolving Loans, with related Interest  Periods  if  applicable,  specified  in a  notice  delivered  by  the  applicable  Borrower,  or  the  Company  on  behalf of the applicable Borrower, in accordance with the requirements of Section 2.03).  The deemed  payments made pursuant to clause (ii) of the immediately preceding sentence shall be accompanied by  payment of all accrued interest on the amount prepaid and, in respect of each Eurocurrency Loan, shall be  subject  to  indemnification  by  the  Borrowers  pursuant  to  the  provisions  of  Section 2.16  if  the  deemed  payment occurs other than on the last day of the related Interest Periods.  The Incremental Term Loans  (a) shall  rank  pari passu  or  junior  in  right  of  payment  with  the  Revolving  Loans,  (b) shall  not  mature  earlier than the Maturity Date (but may have amortization and customary prepayment requirements prior  to  such  date)  and  (c) shall  otherwise  be  treated  substantially  the  same  as  (and  in  any  event  no  more  favorably than) the Revolving Loans; provided that (i) the terms and conditions applicable to any tranche  of  Incremental  Term  Loans  maturing after  the  Maturity  Date  may  provide  for  material  additional  or  different financial or other covenants applicable only during periods after the Maturity Date and (ii) the  Incremental Term Loans may be priced differently than the Revolving Loans.  Incremental Term Loans  may  be  made  hereunder  pursuant  to  an  amendment  or  restatement  (an  “Incremental  Term  Loan  Amendment”)  of  this  Agreement  and,  as  appropriate,  the  other  Loan  Documents,  executed  by  the  Borrowers, each Increasing Lender participating in such tranche, each Augmenting Lender participating  in such tranche, if any, and the Administrative Agent.  The Incremental Term Loan Amendment may,  without the consent of any other Lenders, effect such amendments to this Agreement and the other Loan  Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent, to  effect  the  provisions  of  this  Section 2.20.   Nothing  contained  in  this  Section 2.20  shall  constitute,  or  otherwise  be  deemed  to  be,  a  commitment  on  the  part  of  any  Lender  to  increase  its  Commitment  hereunder, or provide Incremental Term Loans, at any time.               SECTION 2.21.  Market  Disruption.   Notwithstanding  the  satisfaction  of  all  conditions referred to in Article II and Article IV with respect to any Credit Event to be effected in any                                         60    

 

   Foreign  Currency,  if  (i) there  shall  occur  on  or  prior  to  the  date  of  such  Credit  Event  any  change  in  national  or  international  financial,  political  or  economic  conditions  or  currency  exchange  rates  or  exchange controls which would in the reasonable opinion of the Administrative Agent, the Issuing Bank  (if  such  Credit  Event  is  a  Letter  of  Credit)  or  the  Required  Lenders  make  it  impracticable  for  the  Eurocurrency Borrowings or Letters  of Credit comprising such Credit Event to be  denominated in the  Agreed Currency specified by the applicable Borrower or (ii) the Dollar Amount of such currency is not  readily calculable, then the Administrative Agent shall forthwith give notice thereof to such Borrower, the  Lenders and, if such Credit Event is a Letter of Credit, the Issuing Bank, and such Credit Events shall not  be denominated in such Agreed Currency but shall, except as otherwise set forth in Section 2.07, be made  on  the  date  of  such  Credit  Event  in  Dollars,  (a) if  such  Credit  Event  is  a  Borrowing,  in  an  aggregate  principal amount equal to the Dollar Amount of the aggregate principal amount specified in the related  Credit  Event  Request  or  Interest  Election  Request,  as  the  case  may  be,  as  ABR  Loans,  unless  such  Borrower notifies the Administrative Agent at least one Business Day before such date that (i) it elects  not to borrow on such date or (ii) it elects to borrow on such date in a different Agreed Currency, as the  case  may  be,  in  which  the  denomination  of  such  Loans  would  in  the  reasonable  opinion  of  the  Administrative  Agent  and  the  Required  Lenders  be  practicable  and  in  an  aggregate  principal  amount  equal  to  the  Dollar  Amount  of  the  aggregate  principal  amount  specified  in  the  related  Credit  Event  Request or Interest Election Request, as the case may be or (b) if such Credit Event is a Letter of Credit,  in  a  face  amount  equal  to  the  Dollar  Amount  of  the  face  amount  specified  in  the  related  request  or  application for such Letter of Credit, unless such Borrower notifies the Administrative Agent at least one  (1) Business Day before such date that (i) it elects not to request the issuance of such Letter of Credit on  such date or (ii) it elects to have such Letter of Credit issued on such date in a different Agreed Currency,  as the case may be, in which the denomination of such Letter of Credit would in the reasonable opinion of  the Issuing Bank, the Administrative Agent and the Required Lenders be practicable and in face amount  equal to the Dollar Amount of the face amount specified in the related request or application for such  Letter of Credit, as the case may be.               SECTION 2.22.  Judgment  Currency.   If  for  the  purposes  of  obtaining  judgment  in  any court it is necessary to convert a sum due from any Borrower hereunder in the currency expressed to  be payable herein (the “specified currency”) into another currency, the parties hereto agree, to the fullest  extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance  with  normal  banking  procedures  the  Administrative  Agent  could  purchase  the  specified  currency  with  such  other  currency  at  the  Administrative  Agent’s  main  New  York  City  office  on  the  Business  Day  preceding that on which final, non appealable judgment is given.  The obligations of each Borrower in  respect of any sum due to any Lender or the Administrative Agent hereunder shall, notwithstanding any  judgment in a  currency other than the specified currency, be  discharged  only to the extent that on the  Business Day following receipt by such Lender or the Administrative Agent (as the case may be) of any  sum adjudged to be so due in such other currency such Lender or the Administrative Agent (as the case  may be) may in accordance with normal, reasonable banking procedures purchase the specified currency  with  such  other  currency.   If  the amount  of  the  specified  currency  so  purchased  is  less  than  the  sum  originally due to such Lender or the Administrative Agent, as the case may be, in the specified currency,  each  Borrower  agrees,  to  the  fullest  extent  that  it  may  effectively  do  so,  as  a  separate  obligation  and  notwithstanding any such judgment, to indemnify such Lender or the Administrative Agent, as the case  may be, against such loss, and if the amount of the specified currency so purchased exceeds (a) the sum  originally due to any Lender or the Administrative Agent, as the case may be, in the specified currency  and  (b) any  amounts  shared  with  other  Lenders  as  a  result  of  allocations  of  such  excess  as  a  disproportionate payment to such Lender under Section 2.18, such Lender or the Administrative Agent, as  the case may be, agrees to remit such excess to such Borrower.               SECTION 2.23.  Designation of Foreign Subsidiary Borrowers.  The Company may at  any  time  and  from  time  to  time  designate  any  Eligible  Foreign  Subsidiary  as  a  Foreign  Subsidiary                                         61    

 

   Borrower  by  delivery  to the  Administrative  Agent  of  a  Borrowing  Subsidiary  Agreement  executed  by  such  Subsidiary  and  the  Company  and  the  satisfaction  of  the  other  conditions  precedent  set  forth  in  Section 4.03,  and  upon  such  delivery  and  satisfaction  such  Subsidiary  shall  for  all  purposes  of  this  Agreement be a Foreign Subsidiary Borrower and a party to this Agreement.  Each Foreign Subsidiary  Borrower  shall  remain  a  Foreign  Subsidiary  Borrower  until  the  Company  shall  have  executed  and  delivered  to  the  Administrative  Agent  a  Borrowing  Subsidiary  Termination  with  respect  to  such  Subsidiary, whereupon such Subsidiary shall cease to be a Foreign Subsidiary Borrower and a party to  this  Agreement.   Notwithstanding  the  preceding  sentence,  no  Borrowing  Subsidiary  Termination  will  become effective as to any Foreign Subsidiary Borrower at a time when any principal of or interest on any  Loan  to  such  Borrower  shall  be  outstanding  hereunder, provided that  such  Borrowing  Subsidiary  Termination shall be effective to terminate the right of such Foreign Subsidiary Borrower to make further  Borrowings  under  this  Agreement.   As  soon  as  practicable  upon  receipt  of  a  Borrowing  Subsidiary  Agreement, the Administrative Agent shall furnish a copy thereof to each Lender.               SECTION 2.24.  Defaulting  Lenders.  Notwithstanding  any  provision  of  this  Agreement to the  contrary, if any Lender becomes a Defaulting Lender, then  the  following provisions  shall apply for so long as such Lender is a Defaulting Lender:               (a)   fees shall cease to accrue on the unfunded portion of the Commitment of such  Defaulting Lender pursuant to Section 2.12(a);               (b)   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  Section  2.18(b)  or  otherwise)  or  received  by  the  Administrative  Agent  from  a  Defaulting Lender pursuant to Section 9.08 shall be applied at such time or times as may be determined  by the Administrative Agent as follows:  first, to the payment of any amounts owing by such Defaulting  Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts  owing  by  such  Defaulting  Lender  to  the  Issuing  Bank  or  Swingline  Lender  hereunder; third,  to  cash  collateralize the Issuing Bank’s LC Exposure with respect to such Defaulting Lender in accordance with  this Section; fourth, as the Company may request (so long as no Default or Event of 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 Company, 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  Bank’s  future  LC  Exposure  with  respect  to  such  Defaulting Lender with respect to future  Letters  of Credit issued under this  Agreement, in accordance  with  this  Section; sixth,  to  the  payment  of  any  amounts  owing  to  the  Lenders,  the  Issuing  Bank  or  Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender,  the  Issuing Bank  or  Swingline  Lender  against  such  Defaulting  Lender  as  a  result  of  such  Defaulting  Lender’s breach of its obligations under this Agreement or under any other Loan Document; seventh, so  long as no Default or Event of Default exists, to the payment of any amounts owing to the Company as a  result  of  any  judgment  of  a  court  of  competent  jurisdiction  obtained  by  the  Company  against  such  Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement  or under any other Loan Document; 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 4.02  were  satisfied  or  waived,  such  payment  shall be  applied  solely to pay the Loans of, and LC Disbursements owed to, all non-Defaulting Lenders on a pro rata basis  prior to being applied to the payment of any Loans of, or LC Disbursements owed to, such Defaulting  Lender until such time as all Loans and funded and unfunded participations in the Borrowers’ obligations                                         62    

 

   corresponding to such Defaulting Lender’s LC Exposure and Swingline Loans are held by the Lenders  pro rata in accordance with the Commitments without giving effect to clause (d) 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;               (c)   the Commitment and Revolving Credit Exposure of such Defaulting Lender shall  not  be  included  in  determining  whether  the  Required  Lenders  have  taken  or  may  take  any  action  hereunder  (including  any  consent  to  any  amendment,  waiver  or other  modification  pursuant  to  Section 9.02); provided, further, that any amendment, waiver or other modification requiring the consent  of all Lenders or all Lenders directly affected thereby shall not, except as otherwise provided in Section  9.02, require the consent of such Defaulting Lender in accordance with the terms hereof;               (d)   if  any  Swingline  Exposure  or  LC  Exposure  exists  at  the  time  such  Lender  becomes a Defaulting Lender then:               (i)   all or any part of the Swingline Exposure and LC Exposure of such Defaulting        Lender (other than, in the case of a Defaulting Lender that is a Swingline Lender, the portion of        such  Swingline  Exposure  referred  to  in  clause  (b)  of  the  definition  of  such  term)  shall  be        reallocated  among  the  non-Defaulting  Lenders  in  accordance  with their  respective  Applicable        Percentages   but  only  to  the  extent that  such  reallocation  does  not,  as  to  any  non-Defaulting        Lender,  cause  such  non-Defaulting  Lender’s  Revolving  Credit  Exposure  to  exceed  its        Commitment;               (ii)  if the reallocation described in clause (i) above cannot, or can only partially, be        effected,  the  Company  shall  within  three  (3) Business  Days  following  notice  by  the        Administrative Agent (x) first, prepay such Swingline Exposure and (y) second, cash collateralize        for  the  benefit  of  the  Issuing  Bank  only  the  Borrowers’  obligations  corresponding  to  such        Defaulting  Lender’s  LC  Exposure  (after  giving  effect  to  any  partial  reallocation  pursuant  to        clause (i) above) in accordance with the procedures set forth in Section 2.06(j) for so long as such        LC Exposure is outstanding;               (iii) if the Company cash collateralizes any portion of such Defaulting Lender’s LC        Exposure  pursuant to clause (ii) above,  the  Borrowers  shall not be required to pay any fees  to        such Defaulting Lender pursuant to Section 2.12(b) with respect to such Defaulting Lender’s LC        Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized;               (iv)  if  the  LC  Exposure  of  the  non-Defaulting  Lenders  is  reallocated  pursuant  to        clause (i) above,  then the  fees  payable  to the  Lenders pursuant to Sections 2.12(a) and  2.12(b)        shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages; and               (v)   if  all  or  any  portion  of  such  Defaulting  Lender’s  LC  Exposure  is  neither        reallocated nor cash collateralized pursuant to clause (i) or (ii) above, then, without prejudice to        any rights or remedies of the Issuing Bank or any other Lender hereunder, all letter of credit fees        payable  under  Section 2.12(b)  with  respect  to  such  Defaulting  Lender’s  LC  Exposure  shall  be        payable to the Issuing Bank until and to the extent that such LC Exposure is reallocated and/or        cash collateralized; and               (e)   so long as such Lender is a Defaulting Lender, the Swingline Lender shall not be  required  to  fund  any  Swingline  Loan  and  the  Issuing  Bank  shall not  be  required  to  issue,  amend  or  increase any Letter of Credit, unless it is satisfied that the related exposure and the Defaulting Lender’s                                         63    

 

   then outstanding LC Exposure will be 100% covered by the Commitments of the non-Defaulting Lenders  and/or  cash  collateral  will  be  provided  by  the  Company  in  accordance  with  Section 2.24(d), and  Swingline  Exposure  related  to  any  such  newly  made  Swingline  Loan  or  LC  Exposure  related  to  any  newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in a manner  consistent with Section 2.24(d)(i) (and such Defaulting Lender shall not participate therein).               If (i) a Bankruptcy Event or a Bail-In Action with respect to a Lender Parent shall occur  following the date hereof and for so long as such event shall continue or (ii) the Swingline Lender or the  Issuing Bank has a good faith belief that any Lender has defaulted in fulfilling its obligations under one or  more other agreements in which such Lender commits to extend credit, the Swingline Lender shall not be  required  to  fund  any  Swingline  Loan  and  the  Issuing  Bank  shall  not  be  required  to  issue,  amend  or  increase any Letter of Credit, unless the Swingline Lender or the Issuing Bank, as the case may be, shall  have entered into arrangements with the Company or such Lender, satisfactory to the Swingline Lender or  the Issuing Bank, as the case may be, to defease any risk to it in respect of such Lender hereunder.               In the event that the Administrative Agent, the Company, the Swingline Lender and the  Issuing Bank each agrees that a Defaulting Lender has adequately remedied all matters that caused such  Lender to be a Defaulting Lender, then the Swingline Exposure and LC Exposure of the Lenders shall be  readjusted  to  reflect  the  inclusion  of  such  Lender’s Commitment  and  on  such  date  such  Lender  shall  purchase at par such of the Loans of the other Lenders (other than Swingline Loans) as the Administrative  Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with  its Applicable Percentage.               SECTION 2.25.  Extension of Maturity Date.               (a)   Requests  for  Extension.   The Company  may,  by  notice  to  the  Administrative  Agent (who shall promptly notify the Lenders) at any time (each such date, an “Extension Date”), request  that each Lender extend such Lender’s Maturity Date to the date that is one year after the Maturity Date  then in effect for such Lender (the  “Existing Maturity Date”); provided that any such request shall be  made no later than 30 days prior to the applicable Existing Maturity Date.               (b)   Lender  Elections  to  Extend.   Each  Lender,  acting  in  its  sole  and  individual  discretion, shall, by notice to the Administrative Agent given not later than the date that is 15 days after  the  date  on  which  the  Administrative  Agent  received  the  Company’s extension  request  (the  “Lender  Notice  Date”),  advise  the  Administrative  Agent  whether  or  not  such  Lender  agrees  to  such  extension  (each Lender that determines to so extend its Maturity Date, an “Extending Lender”).  Each Lender that  determines not to so extend its Maturity Date (a “Non-Extending Lender”) shall notify the Administrative  Agent of such fact promptly after such determination (but in any event no later than the Lender Notice  Date), and any Lender that does not so advise the Administrative Agent on or before the Lender Notice  Date  shall  be  deemed  to  be  a  Non-Extending  Lender.   The  election  of  any  Lender  to  agree  to  such  extension shall not obligate any other Lender to so agree, and it is understood and agreed that no Lender  shall have any obligation whatsoever to agree to any request made by the Company for extension of the  Maturity Date.               (c)   Notification by Administrative Agent.  The Administrative Agent shall notify the  Company of each Lender’s determination under this Section no later than the date that is 15 days prior to  the  applicable  Extension Date  (or, if such  date is  not a  Business Day, on the next preceding Business  Day).               (d)   Additional Commitment Lenders.  The Company shall have the right, but shall  not be obligated, on or before the applicable Maturity Date for any Non-Extending Lender to replace such                                         64    

 

   Non-Extending Lender with, and add as “Lenders” under this Agreement in place thereof, one or more  financial  institutions  that  are  not  Ineligible  Institutions  (each,  an  “Additional  Commitment  Lender”)  approved  by  the  Administrative  Agent  in  accordance  with  the  procedures  provided  in  Section 2.19(b),  each of which Additional Commitment Lenders shall have entered into an Assignment and Assumption  (in  accordance  with  and  subject  to  the  restrictions  contained  in  Section 9.04,  with  the  Company  or  replacement  Lender  obligated  to  pay  any  applicable  processing  or  recordation  fee)  with  such  Non- Extending Lender, pursuant to which such Additional Commitment Lenders shall, effective on or before  the applicable Maturity Date for such Non-Extending Lender, assume a Commitment (and, if any such  Additional  Commitment  Lender  is  already  a  Lender,  its  Commitment  shall  be  in  addition  to  such  Lender’s Commitment hereunder on such date).  Prior to any Non-Extending Lender being replaced by  one or more Additional Commitment Lenders pursuant hereto, such Non-Extending Lender may elect, in  its  sole  discretion,  by  giving  irrevocable  notice  thereof  to  the  Administrative  Agent  and  the  Company  (which notice shall set forth such Lender’s new Maturity Date), to become an Extending Lender.  The  Administrative  Agent  may  effect  such  amendments  to  this  Agreement  as  are  reasonably  necessary  to  provide for any such extensions with the consent of the Company but without the consent of any other  Lenders.               (e)   Minimum Extension Requirement.  If (and only if) the total of the Commitments  of the Lenders that have agreed to extend their Maturity Date and the new or increased Commitments of  any Additional Commitment Lenders is more than 50% of the aggregate amount of the Commitments in  effect immediately prior to the applicable Extension Date, then, effective as of the applicable Extension  Date, the Maturity Date of each Extending Lender and of each Additional Commitment Lender shall be  extended to the date that is one year after the Existing Maturity Date (except that, if such date is not a  Business Day, such Maturity Date as so extended shall be the next preceding Business Day) and each  Additional Commitment Lender shall thereupon become a “Lender” for all purposes of this Agreement  and  shall  be  bound  by  the  provisions  of  this  Agreement  as  a  Lender  hereunder  and  shall  have  the  obligations of a Lender hereunder.               (f)   Conditions to Effectiveness of Extension.  Notwithstanding the foregoing, (x) no  more than two (2) extensions of the Maturity Date shall be permitted hereunder and (y) any extension of  any  Maturity  Date  pursuant  to  this  Section  2.25  shall  not  be  effective  with  respect  to  any  Extending  Lender unless:                     (i)   no Default or Event of Default shall have occurred and be continuing on        the applicable Extension Date and immediately after giving effect thereto;                     (ii)  the  representations  and  warranties  of  the  Borrowers  set  forth  in  this        Agreement are true and correct in all material respects (or, in the case of any representation or        warranty  qualified  by  materiality  or  Material  Adverse  Effect, in  all  respects)  on  and  as  of the        applicable Extension Date and after giving effect thereto, as though made on and as of such date        (it being understood and agreed that any representation or warranty which by its terms is made as        of a specified date shall be required to be true and correct in all material respects (or, in the case        of  any  representation  or  warranty  qualified  by  materiality  or  Material  Adverse  Effect,  in  all        respects) only as of such specified date); and                     (iii) the  Administrative  Agent  shall  have  received  a  certificate  from  the        Company  signed  by  a  Financial  Officer  of  the  Company  (A)  certifying  the  accuracy  of  the        foregoing  clauses  (i)  and  (ii)  and  (B)  certifying  and  attaching  the  resolutions  adopted  by  each        Borrower approving or consenting to such extension.                                          65    

 

               (g)   Maturity Date for Non-Extending Lenders.  On the Maturity Date of each Non- Extending Lender, (i) the Commitment of each Non-Extending Lender shall automatically terminate and  (ii) the Company shall repay such Non-Extending Lender in accordance with Section 2.10 (and shall pay  to such Non-Extending Lender all of the other Obligations owing to it under this Agreement) and after  giving effect thereto shall prepay any Revolving Loans outstanding on such date (and pay any additional  amounts required pursuant to Section 2.16) to the extent necessary to keep outstanding Revolving Loans  ratable with any revised Applicable Percentages of the respective Lenders effective as of such date, and  the Administrative Agent shall administer any necessary reallocation of the Revolving Credit Exposures  (without  regard to  any  minimum  borrowing,  pro  rata  borrowing  and/or  pro rata  payment  requirements  contained elsewhere in this Agreement).               (h)   Conflicting Provisions.  This Section shall supersede any provisions in Section  2.18 or Section 9.02 to the contrary.                                    ARTICLE III                                                                      Representations and Warranties               Each Borrower represents and warrants to the Lenders that:               SECTION 3.01.  Organization;  Powers;  Subsidiaries.   Each  Loan  Party  is duly  organized, validly existing and in good standing (to the extent such concept is applicable in the relevant  jurisdiction) under the laws of the jurisdiction of its organization, has all requisite power and authority to  carry  on  its  business  as  now  conducted  and,  except  where  the  failure  to  do  so,  individually  or  in  the  aggregate,  could  not  reasonably  be  expected  to  result  in  a  Material  Adverse  Effect,  is  qualified  to  do  business in, and is in good standing (to the extent such concept is applicable) in, every jurisdiction where  such qualification is required.  As of the date hereof, Schedule 3.01 hereto identifies each Subsidiary, if  such Subsidiary is a Material Subsidiary, the jurisdiction of its incorporation or organization, as the case  may be, and the percentage of issued and outstanding shares of each class of its capital stock or other  equity  interests  owned  by  the  Company  and  the  other  Subsidiaries.   All  of  the  outstanding  shares  of  capital stock and other equity interests of each Loan Party (other than the Company) are validly issued  and outstanding and fully paid and nonassessable (to the extent such concept is applicable) and all such  shares and other equity interests indicated on Schedule 3.01 as owned by the Company or another Loan  Party are owned, beneficially and of record, by the Company or any other Loan Party free and clear of all  Liens, other than Liens created under the Loan Documents or Permitted Liens arising by operation of law.   There are no outstanding commitments or other obligations of any Loan Party to issue, and no options,  warrants or other rights of any Person to acquire, any shares of any class of capital stock or other equity  interests of any Loan Party, except pursuant to compensation plans of the Loan Parties.  Each Foreign  Subsidiary Borrower incorporated in an EU jurisdiction represents and warrants to the Lenders that its  centre  of  main  interest  (as  that  term  is  used  in  Article  3(1)  of  the  Insolvency  Regulation)  is  in  its  jurisdiction  of  incorporation  and  it  has  no  establishment  (as  that  term  is  used  in  Article  2(10)  of  the  Insolvency Regulation) in any other jurisdiction.               SECTION 3.02.  Authorization;  Enforceability.   The  Transactions  are  within  each  Loan Party’s organizational powers and have been duly authorized by all necessary organizational and, if  required, shareholder action.  The Loan Documents to which each Loan Party is a party have been duly  executed and delivered by such Loan Party and constitute a legal, valid and binding obligation of such  Loan  Party,  enforceable  in  accordance  with  its  terms,  subject  to  applicable  bankruptcy,  insolvency,  reorganization,  moratorium  or  other  laws  affecting  creditors’  rights  generally  and  subject  to  general  principles of equity, regardless of whether considered in a proceeding in equity or at law.                                         66    

 

               SECTION 3.03.  Governmental Approvals; No Conflicts.  The Transactions (a) do not  require any consent or approval of, registration or filing with, or any other action by, any Governmental  Authority,  except  such  as  have  been  obtained  or  made  and  are  in  full  force  and  effect and  except  for  filings necessary to perfect Liens created pursuant to the Loan Documents, (b) will not violate (x) any  applicable law or regulation or any order of any Governmental Authority, except as could not reasonably  be  expected  to  result  in a  Material  Adverse  Effect  or  (y)  the  charter,  by-laws  or  other  organizational  documents of any Loan Party, (c) will not violate or result in a default under any indenture or material  agreement or other instrument binding upon any Loan Party or its assets, or give rise to a right thereunder  to require any payment to be made by any Loan Party, and (d) will not result in the creation or imposition  of any Lien (other than a Permitted Lien) on any asset of any Loan Party, except Liens created pursuant to  the Loan Documents.               SECTION 3.04.  Financial  Condition;  No  Material  Adverse  Change.  (a) The  Company  has  heretofore  furnished  to  the  Lenders  its  consolidated  balance  sheet  and  statements  of  income, stockholders equity and cash flows (i) as of and for the Fiscal Year ended December 31, 2018  reported  on  by  Ernst  &  Young  LLP,  independent  public  accountants,  and  (ii) as  of  and  for  the  Fiscal  Quarter and the portion of the Fiscal Year ended March 29, 2019 and June 28, 2019, in each case certified  by  its  chief  financial  officer.   Such  financial  statements  present  fairly,  in  all  material  respects,  the  financial  position  and  results  of  operations  and  cash  flows  of  the  Company  and  its  consolidated  Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit  adjustments and the absence of footnotes in the case of the statements referred to in clause (ii) above.               (b)   Since  December 31,  2018,  there  has  been  no  material  adverse  change  in  the  business, assets, property or financial condition of the Company and its Subsidiaries, taken as a whole.               SECTION 3.05.  Properties.  (a) Each Loan Party has good title to, or valid leasehold  interests in, all its real and personal property material to its business, except for minor defects in title that  do not interfere with its ability to conduct its business as currently conducted or to utilize such properties  for their intended purposes.                 (b)   Each  Loan  Party  owns,  or  is  licensed  to  use,  all  trademarks,  tradenames,  copyrights, patents and other intellectual property material to its business, and the use thereof by the Loan  Parties  does  not  infringe  upon  the  rights  of  any  other  Person,  except  for  any  such  infringements  that,  individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.               SECTION 3.06.  Litigation  and  Environmental  Matters.  (a) There  are  no  actions,  suits,  proceedings  or  investigations  by  or  before  any  arbitrator  or  Governmental  Authority  pending  against or, to the  knowledge  of any Borrower, threatened against or affecting any Loan Party (i) as to  which  there  is  a  reasonable  possibility  of  an  adverse  determination  and  that,  if  adversely  determined,  could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or  (ii) that  question  the  validity  of this  Agreement  or  the  Transactions.  There  are  no labor  controversies  pending  against  or,  to  the  knowledge  of the  Company,  threatened  against  or  affecting  any  Loan  Party  (i) which could reasonably be expected, individually or in the aggregate, to result in a Material Adverse  Effect, or (ii) that question the validity of this Agreement or the Transactions.               (b)   Except with respect to any matters that, individually or in the aggregate, could  not reasonably be expected to result in a Material Adverse Effect, none of the Loan Parties (i) has failed  to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other  approval required under any Environmental Law, (ii) has become subject to any Environmental Liability,  (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows of any  basis for any Environmental Liability.                                         67    

 

               SECTION 3.07.  Compliance with Laws.  Each Loan Party is in compliance with all  laws,  regulations  and  orders  of  any  Governmental  Authority  applicable  to  it  or  its  property  and  all  indentures, agreements and other instruments binding upon it or its property, except where the failure to  do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse  Effect.   Furthermore,  the  Dutch  Borrower  does  not qualify  as  a  credit  institution  subject  to the  Dutch  Financial Supervision Act, or otherwise falls within an applicable exemption from such act.               SECTION 3.08.  Investment  Company  Status.   None  of  the  Loan  Parties  is  an  “investment  company”  as  defined  in,  or  subject  to  regulation  under,  the  Investment  Company  Act  of  1940.               SECTION 3.09.  Taxes.  Each Loan Party has timely filed or caused to be filed all Tax  returns and related reports required to have been filed and has paid or caused to be paid all Taxes required  to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings  and for which such Loan Party has set aside on its books adequate reserves or (b) to the extent that the  failure to do so could not reasonably be expected to result in a Material Adverse Effect.               SECTION 3.10.  ERISA.  No ERISA Event has occurred or is reasonably expected to  occur  that,  when taken  together  with  all  other  such  ERISA  Events  for  which  liability  is  reasonably  expected to occur, could reasonably be expected to result in a Material Adverse Effect.                 SECTION 3.11.  Disclosure.   Neither  the  Information  Memorandum  nor  any  of  the  other reports, financial statements, certificates or other written factual information (other than projections,  forward-looking statements and information of a general economic nature) furnished by or on behalf of  the Company or any other Loan Party to the Administrative Agent or any Lender in connection with the  negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information  so furnished), when taken as a whole, contains any material misstatement of fact or omits to state any  material  fact  necessary  to  make  the  statements  therein,  when  taken  as  a  whole,  in  the  light  of  the  circumstances  under  which  they  were  made,  not  materially  misleading; provided that,  with  respect  to  projected financial information, the Borrowers represent only that such information was prepared in good  faith based upon assumptions believed to be reasonable at the time.  As of the Effective Date, to the best  knowledge of the Company, the information included in the Beneficial Ownership Certification, if any,  provided on or prior to the Effective Date to any Lender in connection with this Agreement is true and  correct in all respects.               SECTION 3.12.  Federal Reserve Regulations.  No part of the proceeds of any Loan  have been used or will be used, whether directly or indirectly, for any purpose that entails a violation of  any of the Regulations of the Board, including Regulations T, U and X.  No Borrower is engaged and no  Borrower will engage, principally or as one of its important activities, in the business of purchasing or  carrying Margin Stock, or extending credit for the purpose of purchasing or carrying Margin Stock, and  no part of the proceeds of any Borrowing or Letter of Credit extension hereunder will be used to buy or  carry any Margin Stock.  Following the application of the proceeds of each Borrowing or drawing under  each Letter of Credit, not more than 25% of the value of the assets (either of the Company only or of the  Company and its Subsidiaries on a consolidated basis) will be Margin Stock.               SECTION 3.13.  [Intentionally Omitted].               SECTION 3.14.  No  Default.   No  Default  or  Event  of  Default  has  occurred  and  is  continuing.               SECTION 3.15.  [Intentionally Omitted].                                         68    

 

               SECTION 3.16.  Solvency.               (a)   Immediately  after  the  consummation  of  the  Transactions  to  occur  on  the  Effective Date, the Loan Parties, taken as a whole, are and will be Solvent.               (b)   The Company does not intend to, nor will it permit any of the other Loan Parties  to, and the Company does not believe that it or any of the other Loan Parties will, incur debts beyond its  ability to pay such debts  as  they mature, taking into account the timing of and amounts  of cash to be  received by it or any such Loan Party and the timing of the amounts of cash to be payable on or in respect  of its Indebtedness or the Indebtedness of any such Loan Party.               SECTION 3.17.  Insurance.  Except as qualified below, the Company maintains, and  has caused each other Loan Party to maintain, with financially sound and reputable insurance companies,  insurance on all their real and personal property in such amounts, subject to such deductibles and self- insurance retentions and covering such properties and risks as are adequate and customarily maintained  by companies engaged in the same or similar businesses operating in the same or similar locations.  The  Company and the other Loan Parties are self-insured for general liability coverage.               SECTION 3.18.  Security Interest in Collateral.  The provisions of this Agreement and  the other Loan Documents create legal and valid Liens on all the Collateral in favor of the Administrative  Agent, for the benefit of the Holders of Secured Obligations, and provided that the Administrative Agent  does what is required to continue the perfection of such Liens under the UCC or other applicable law,  such Liens constitute perfected and continuing Liens on the Collateral, securing the Secured Obligations,  enforceable against the applicable Loan Party and all third parties, and having priority over all other Liens  on the Collateral except in the case of (a) Permitted Liens, to the extent any such Permitted Liens would  have priority over the Liens in favor of the Administrative Agent pursuant to any applicable law or any  Intercreditor  Agreements  and  (b) Liens  perfected  only  by  possession  (including  possession  of  any  certificate  of  title)  to  the  extent  the  Administrative  Agent  has  not  obtained  or  does  not  maintain  possession of such Collateral.               SECTION 3.19.  Anti-Corruption  Laws  and  Sanctions.  The  Company  has  in  its  reasonable business judgment implemented and maintains in effect policies and procedures designed to  ensure compliance in all material respects by the Company, its Subsidiaries and their respective directors,  officers,  employees  and  agents  with  Anti-Corruption  Laws  applicable  to  the  Company  and  its  Subsidiaries and applicable Sanctions, and the Company, its Subsidiaries and their respective officers and  directors and to the knowledge of the Company its employees and agents, are in compliance with Anti- Corruption  Laws  and  applicable  Sanctions  in  all  material  respects and,  in  the  case  of  any  Foreign  Subsidiary Borrower, is not knowingly engaged in any activity that could reasonably be expected to result  in such Borrower being designated as a Sanctioned Person.  None of (a) the Company, any Subsidiary,  any  of  their  respective  directors  or  officers  or  to  the  knowledge  of  the  Company  or  such  Subsidiary  employees, or (b) to the knowledge of the Company, any agent of the Company or any Subsidiary that  will  act  in  any  capacity  in  connection  with  or  benefit  from  the  credit  facility  established  hereby,  is  a  Sanctioned Person.  No Borrowing or Letter of Credit, use of proceeds or other Transactions will violate  any Anti-Corruption Law or applicable Sanctions.  The foregoing representations in this Section 3.19 will  not apply to any party hereto to which  the  Blocking Regulation applies, if and to the  extent that such  representations are or would be unenforceable pursuant to, or would otherwise result in a breach and/or  violation  of,  (i)  any  provision  of the  Blocking  Regulation  (or  any  law  or  regulation  implementing  the  Blocking Regulation in any member state of the European Union) or (ii) any similar blocking or anti- boycott law in the United Kingdom.                                          69    

 

               SECTION 3.20.  EEA  Financial  Institutions.  No  Loan  Party  is  an  EEA  Financial  Institution.               SECTION 3.21.  Dutch  Fiscal  Unity.   Any  fiscal  unity  (fiscale  eenheid)  for  Dutch  corporate  income  tax  (vennootschapsbelasting)  or  Dutch value  added  tax  (omzetbelasting)  purposes  in  which a Loan Party is included consists of Loan Parties only, unless with the prior written consent of the  Administrative Agent.               SECTION 3.22.  Residency for Tax Purposes.  Each Dutch Loan Party is resident for  tax  purposes in the  Netherlands only and  does not have  any permanent establishment or other taxable  presence outside the Netherlands, unless with the prior written consent of the Administrative Agent.                                    ARTICLE IV                                                                             Conditions               SECTION 4.01.   Effective Date.  The obligations of the Lenders to make Loans and  of the Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on which  each of the following conditions is satisfied (or waived in accordance with Section 9.02):               (a)   The Administrative Agent (or its counsel) shall have received (i) from each party        hereto either (A) a counterpart of this Agreement signed on behalf of such party or (B) written        evidence  satisfactory  to  the  Administrative  Agent  (which  may  include  telecopy  or  electronic        transmission  of  a  signed  signature  page  of  this  Agreement)  that  such  party  has  signed  a        counterpart  of  this  Agreement  and  (ii) duly  executed  copies  of  the  Loan  Documents  and  such        other legal opinions, certificates, documents, instruments and agreements as the Administrative        Agent  shall reasonably  request in  connection  with  the  Transactions,  all  in  form  and  substance        satisfactory  to the  Administrative  Agent  and  its  counsel and  as  further  described  in the  list  of        closing documents attached as Exhibit E.               (b)   The  Administrative  Agent  shall  have received  a  favorable  written  opinion        (addressed to the Administrative Agent and the Lenders, and dated the Effective Date) of Jones        Day with respect to the Loan Parties covering such matters relating to the Loan Parties, the Loan        Documents  or  the  Transactions  as  the  Administrative  Agent  shall  reasonably  request.   The        Company hereby requests such counsel to deliver such opinions.               (c)   The Administrative Agent shall have received such documents and certificates as        the  Administrative  Agent  or  its  counsel  may  reasonably  request  relating  to  the  organization,        existence and good standing of the initial Loan Parties, the authorization of the Transactions and        any other legal matters relating to such Loan Parties, the Loan Documents or the Transactions, all        in  form  and  substance  satisfactory  to  the  Administrative  Agent  and  its  counsel  and  as  further        described in the list of closing documents attached as Exhibit E.               (d)   The  Administrative  Agent shall have  received  a  certificate, dated  the  Effective        Date  and  signed  by  the  President,  a  Vice  President  or  a  Financial  Officer  of  the  Company,        confirming compliance with the conditions set forth in paragraphs (a) and (b) of Section 4.02, as        further described in the list of closing documents attached as Exhibit E.               (e)   The Administrative Agent shall have received all fees and other amounts due and        payable  on  or  prior  to  the  Effective  Date,  including,  to  the  extent  invoiced,  reimbursement  or                                          70    

 

         payment  of  all  out-of-pocket  expenses  required  to  be  reimbursed  or  paid  by  the  Company        hereunder.               (f)   The  Administrative  Agent  shall  have  received  from  the  Dutch  Borrower  a        confirmation by an  authorized  signatory of the  Dutch Borrower that there is  no works  council        with jurisdiction over the transactions as envisaged by any Loan Document to which it is a party        and that there is no obligation for the Dutch Borrower to establish a works council pursuant to the        Works  Council  Act  (Wet  op  de  ondernemingsraden),  or,  if  a  works  council  is  established,  a        confirmation  that  all  consultation  obligations  in  respect  of  such  works  council  have  been        complied with and that positive unconditional advice has been obtained, attaching a copy of such        advice and a copy of the request for such advice.               (g)   (i) The Administrative Agent shall have received, at least five (5) days prior to        the Effective Date, all documentation and other information regarding the Borrowers requested in        connection  with  applicable  “know  your  customer”  and  anti-money  laundering  rules  and        regulations, including the Patriot Act, to the extent requested in writing of the Company at least        ten (10) days prior to the Effective Date and (ii) to the extent any Borrower qualifies as a “legal        entity customer” under the Beneficial Ownership Regulation, at least five (5) days prior to the        Effective Date, any Lender that has requested, in a written notice to the Company at least ten (10)        days  prior  to  the  Effective  Date,  a  Beneficial  Ownership  Certification  in  relation  to  such        Borrower shall have received such Beneficial Ownership Certification (provided that, upon the        execution and delivery by such Lender of its signature page to this Agreement, the condition set        forth in this clause (g) shall be deemed to be satisfied).   The  Administrative  Agent  shall  notify  the  Company  and  the  Lenders  of  the  Effective  Date,  and  such  notice shall evidence the satisfaction (or waiver in accordance of Section 9.02) of all of the conditions in  this Section 4.01 and shall be conclusive and binding.               SECTION 4.02.  Each Credit Event.  The obligation of each Lender to make a Loan  on the occasion of any Borrowing (excluding, for the avoidance of doubt, any conversion or continuation  of  a  Loan),  and  of  the  Issuing  Bank  to  issue,  amend  or  extend  any  Letter  of  Credit,  is  subject  to  the  satisfaction of the following conditions:               (a)   The representations and warranties of the Borrowers set forth in this Agreement        shall be true and correct in all material respects (or, in the case of any representation or warranty        qualified by materiality or Material Adverse Effect, in all respects) on and as of the date of such        Borrowing or the date of issuance, amendment or extension of such Letter of Credit, as applicable        (it being understood and agreed that any representation or warranty which by its terms is made as        of a specified date shall be required to be true and correct in all material respects (or, in the case        of  any  representation  or  warranty  qualified  by  materiality  or  Material  Adverse  Effect,  in  all        respects) only as of such specified date).               (b)   At the time of and immediately after giving effect to such Borrowing (other than        a conversion or continuation of a Loan) or the issuance, amendment or extension of such Letter of        Credit, as applicable, no Default shall have occurred and be continuing.   Each  Borrowing  (excluding  any  conversion  or  continuation  of  an  existing  Loan)  and  each  issuance,  amendment or extension of a Letter of Credit shall be deemed to constitute a representation and warranty  by the Borrowers on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.                                          71    

 

               SECTION 4.03.  Designation of a Foreign Subsidiary Borrower.  The designation of a  Foreign  Subsidiary  Borrower  pursuant  to  Section 2.23  is  subject  to  the  condition  precedent  that  the  Company or such proposed Foreign Subsidiary Borrower shall have furnished or caused to be furnished  to the Administrative Agent:               (a)   Copies, certified by the Secretary or Assistant Secretary (or comparable officer)        of such Subsidiary, of its Board of Directors’ resolutions (and resolutions of other bodies, if any        are  deemed  necessary  by  counsel  for  the  Administrative  Agent)  approving  the  Borrowing        Subsidiary Agreement and any other Loan Documents to which such Subsidiary is becoming a        party  and  such  documents  and  certificates  as  the  Administrative  Agent  or  its  counsel  may        reasonably request relating to the organization, existence and good standing of such Subsidiary;               (b)   An incumbency certificate, executed by the Secretary or Assistant Secretary (or        comparable  officer)  of  such  Subsidiary,  which  shall  identify  by  name  and  title  and  bear  the        signature of the officers of such Subsidiary authorized to request Borrowings hereunder and sign        the Borrowing Subsidiary Agreement and the other Loan Documents to which such Subsidiary is        becoming  a  party,  upon  which  certificate  the  Administrative  Agent  and  the  Lenders  shall  be        entitled to rely until informed of any change in writing by the Company or such Subsidiary;               (c)   Opinions  of  counsel  to  such  Subsidiary,  in  form  and  substance  reasonably        satisfactory to the Administrative Agent and its counsel, with respect to the laws of its jurisdiction        of  organization  and  such  other  matters  as  are  reasonably  requested  by  counsel  to  the        Administrative Agent and addressed to the Administrative Agent and the Lenders;               (d)   Any documentation and other information related to such Subsidiary reasonably        requested by the Administrative Agent or any Lender under applicable “know your customer” or        similar rules and regulations, including the Patriot Act and the Beneficial Ownership Regulation;        and               (e)   Any promissory notes requested by any Lender, and any other instruments and        documents reasonably requested by the Administrative Agent.                                     ARTICLE V                                                                         Affirmative Covenants               Until the Commitments have expired or been terminated and the principal of and interest  on each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit shall  have expired or terminated (or have been cash collateralized in accordance with Section 2.06), in each  case,  without any  pending  draw,  and  all  LC  Disbursements  shall  have  been  reimbursed,  the  Company  covenants and agrees with the Lenders that:               SECTION 5.01.  Financial  Statements  and  Other  Information.   The  Company  will  furnish to the Administrative Agent for distribution to each Lender:               (a)   within  ninety  (90) days  after  the  end  of  each  Fiscal  Year  of  the  Company,  its        audited consolidated balance sheet and related statements of operations, stockholders’ equity and        cash flows as of the end of and for such year, setting forth in each case in comparative form the        figures for the previous Fiscal Year, all reported on by Ernst & Young LLP or other independent        public  accountants  of recognized  national  standing  (without  a  “going  concern”  or  like        qualification or exception and without any qualification or exception as to the scope of such audit                                         72    

 

         in any material respect) to the effect that such consolidated financial statements present fairly in        all  material  respects  the  financial  condition  and  results  of  operations  of  the  Company  and  its        consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied        (except as may be described as required by paragraph (c)(iii) of this Section);               (b)   within forty-five (45) days after the end of each of the first three Fiscal Quarters        of  each  Fiscal  Year  of  the  Company,  its  consolidated  balance  sheet  and  related  statements  of        operations, stockholders’ equity and cash flows as of the end of and for such Fiscal Quarter and        the then elapsed portion of the Fiscal Year, setting forth in each case in comparative form the        figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the        end of) the previous Fiscal Year, all certified by one of its Financial Officers as presenting fairly        in all material respects the financial condition and results of operations of the Company and its        consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied,        subject to normal year-end audit adjustments, the absence of footnotes and any matters described        as required by paragraph (c)(iii) of this Section;               (c)   concurrently with any delivery (including any deemed  delivery pursuant to the        last  paragraph  of  this  Section  5.01)  of  financial  statements  under  clause (a)  or  (b) above,  a        certificate  of  a  Financial  Officer  of  the  Company  (i) certifying  as  to  whether  a  Default  has        occurred and is continuing and, if a Default has occurred and is continuing, specifying the details        thereof  and  any  action  taken  or  proposed  to  be  taken  with  respect  thereto,  (ii) setting  forth        reasonably  detailed  calculations  demonstrating  compliance  with  Section 6.11  and  (iii) stating        whether any material change in GAAP or in the application thereof has occurred since the date of        the audited financial statements referred to in Section 3.04 and, if any such material change has        occurred,  specifying  the  effect  of  such  change  on  the  financial  statements  accompanying  such        certificate;               (d)   concurrently with any delivery of financial statements under clause (a) above, a        certificate of the accounting firm that reported on such financial statements stating whether they        obtained knowledge during the course of their examination of such financial statements of any        Default  (which  certificate  may  be  limited  to  the  extent  required  by  accounting  rules  or        guidelines);               (e)   as soon as available, but in any event no later than the end of, and no earlier than        thirty (30) days  prior to the  end  of, each Fiscal Year of the  Company, a  copy  of the  plan  and        forecast (including a  projected consolidated  and consolidating balance sheet, income  statement        and  funds  flow  statement)  of  the  Company  for  the  upcoming  Fiscal  Year  in  form  reasonably        satisfactory to the Administrative Agent; and               (f)   promptly following any request therefor, (x) such other information regarding the        operations,  business  affairs  and  financial  condition  of  the  Company  or  any  Subsidiary,  or        compliance with the terms of this Agreement, as the Administrative Agent or any Lender (acting        through  the  Administrative  Agent)  may  reasonably  request  and  (y)  information  and        documentation reasonably requested by the Administrative Agent or any Lender for purposes of        compliance  with  applicable  “know  your  customer”  and  anti-money  laundering  rules  and        regulations, including the Patriot Act and the Beneficial Ownership Regulation.   Documents required to be delivered pursuant to clauses (a) and (b) of this Section 5.01 may be delivered  electronically  and  if  so  delivered,  shall be  deemed  to  have  been  delivered  on  the  date  on  which  such  documents are filed for public availability on the SEC’s Electronic Data Gathering and Retrieval System;  provided that the Company shall notify (which may be by facsimile or electronic mail) the Administrative                                         73    

 

   Agent of the filing of any such documents and provide to the Administrative Agent by electronic mail  electronic versions (i.e., soft copies) of such documents.  Notwithstanding anything contained herein, in  every  instance  the  Company  shall  be required  to  provide  paper  copies  or  PDF  of  the  compliance  certificates required by clause (c) of this Section 5.01 to the Administrative Agent.               SECTION 5.02.  Notices  of  Material  Events.   The  Company  will  furnish  to  the  Administrative Agent for distribution to each Lender prompt written notice of the following, promptly  after a Responsible Officer of the Company having actual knowledge thereof:               (a)   the occurrence of any Default;               (b)   the filing or commencement of any action, suit or proceeding by or before any        arbitrator or Governmental Authority against or affecting the Company or any Affiliate thereof        that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect;               (c)   the occurrence of any ERISA Event that, alone or together with any other ERISA        Events that have occurred, could reasonably be expected to result in a Material Adverse Effect;               (d)   any other development that results in, or could reasonably be expected to result        in, a Material Adverse Effect; and               (e)   any change in the information provided in the Beneficial Ownership Certification        delivered to such Lender that would result in a change to the list of beneficial owners identified in        such certification.   Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or  other executive  officer of the  Company setting forth the  details  of the event or development requiring  such notice and any action taken or proposed to be taken with respect thereto.               SECTION 5.03.  Existence; Conduct of Business.  The Company will, and will cause  each other Loan Party to, do or cause to be done (i) all things necessary to preserve, renew and keep in  full  force  and  effect  its  legal  existence  and  (ii)  take,  or  cause  to  be  taken,  all  reasnoable  actions  to  maintain the rights, qualifications, licenses, permits, privileges, franchises, governmental authorizations  and intellectual property rights material to the conduct of its business, and maintain all requisite authority  to conduct its business in each jurisdiction in which its business is conducted, except, in the case of this  clause (ii), to the extent failure to do so could not reasonably be expected to result in a Material Adverse  Effect; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution  permitted  under  Section 6.03.   The  Company  will  cause  each  Subsidiary  incorporated  in  an  EU  jurisdiction  to  cause  its  centre  of  main  interest  (as  that  term  is  used  in  Article  3(1)  of  the  Insolvency  Regulation) to be situated solely in its jurisdiction of incorporation and not to have an establishment (as  that  term  is  used  in  Article  2(10)  of  the  Insolvency  Regulation)  situated  outside  its  jurisdiction  of  incorporation.               SECTION 5.04.  Payment  of  Obligations.   The  Company  will,  and  will  cause  each  other  Loan  Party  to,  pay  its  obligations,  including  Tax  liabilities,  that,  if  not  paid,  could  result  in  a  Material Adverse Effect before the same shall become delinquent or in default, except where (a) (i) the  validity  or  amount  thereof  is  being  contested  in  good  faith  by  appropriate  proceedings,  and  (ii) the  Company or such other Loan Party has set aside on its books adequate reserves with respect thereto in  accordance with GAAP or (b) the failure to make payment pending such contest could not reasonably be  expected to result in a Material Adverse Effect.                                          74    

 

               SECTION 5.05.  Maintenance of Properties; Insurance.  The Company will, and will  cause each other Loan Party to, (a) keep and maintain all property material to the conduct of its business  in good working order and condition, ordinary wear and tear excepted, except to the extent any failure to  do  so  could  not  reasonably  be  expected  to  result  in  a  Material  Adverse  Effect  and  (b) maintain  with  financially sound and reputable carriers (i) insurance in such amounts (with no greater risk retention) and  against such risks (including loss or damage by fire and loss in transit; theft, burglary, pilferage, larceny,  embezzlement,  and  other  criminal  activities;  and  general  liability)  and  such  other  hazards,  as is  customarily maintained by companies engaged in the same or similar businesses operating in the same or  similar locations and (ii) all insurance required pursuant to the Collateral Documents; provided, that the  Loan  Parties  shall  be  entitled  to  self-insure  for  general  liability  in  a  manner  consistent  with  historical  practices.   The  Company  will  furnish  to  the  Administrative  Agent,  upon  request,  information  in  reasonable  detail as to the insurance so maintained.  The  Company shall deliver to the  Administrative  Agent endorsements (x) to all “All Risk” physical damage insurance policies on all of the Loan Parties’  tangible personal property and assets naming the Administrative Agent as lender loss payee, and (y) to all  general  liability  policies  naming  the  Administrative  Agent  an  additional  insured.   In  the  event  the  Company or any other Loan Party at any time or times hereafter shall fail to obtain or maintain any of the  policies or insurance required herein or to pay any premium in whole or in part relating thereto, then after  notice  to  the  Company  and  a  reasonable  time  to  cure,  the  Administrative  Agent,  without  waiving  or  releasing any obligations or resulting Default hereunder, may at any time or times thereafter (but shall be  under no obligation to do so) obtain and maintain such policies of insurance and pay such premiums and  take any other action with respect thereto which the Administrative Agent deems reasonably advisable.   All sums so disbursed by the Administrative Agent shall constitute part of the Obligations, payable as  provided  in  this  Agreement.   The  Company  will  furnish  to  the  Administrative  Agent  and  the  Lenders  prompt written notice of any casualty or other insured damage to any material portion of the Collateral or  the commencement of any action or proceeding for the taking of any material portion of the Collateral or  interest therein under power of eminent domain or by condemnation or similar proceeding.               SECTION 5.06.  Books and Records; Inspection Rights.  The Company will, and will  cause each other Loan Party to, keep proper books of record and account in which full, true and correct  entries in all material respects, are made of all dealings and transactions in relation to its business and  activities.   The  Company  will,  and  will  cause  each  other  Loan  Party  to,  permit  any  representatives  designated by the Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect  its  properties,  to  examine  and  make  extracts  from  its  books  and  records,  including  environmental  assessment reports and Phase I or Phase II studies commissioned previously by the Company or any other  Loan Party (it being understood that the Administrative Agent and Lenders will not be entitled to conduct  their own environmental studies with respect to the Company or any of the Loan Parties), and to discuss  its affairs, finances and condition with its officers and, provided that the Company or such Loan Party is  afforded  the  opportunity  to  participate  in  such  discussions,  independent  accountants,  all  at  such  reasonable times during normal business hours and as often as reasonably requested; provided, that unless  an  Event  of  Default  has  occurred  and  is  continuing  at  the  time  such  inspection  commences,  (a)  the  Company shall not be required to pay expenses relating to more than one inspection by the Administrative  Agent in any twelve consecutive calendar months and (b) the Company shall not be required to pay the  expenses of any Lender for any inspection; provided, further, that when an Event of Default exists the  Administrative  Agent  or  any  Lender  (or  any  of  their  respective  representatives  or  independent  contractors) may do any of the foregoing at the reasonable expense of the Company at any time during  normal  business  hours,  without  advance  notice  and  without  limitation  as  to  frequency.   During  any  inspection  or  examination,  the  Administrative  Agent  will  make  reasonable  efforts  to  cause  all  of  its  representatives  to  comply  in  all  material  respects  with  all  health,  safety  and  security  requirements  of  general  application  of  the  Company  or  applicable  Loan  Party,  or  otherwise  applicable  to  the relevant  location.   The  Company  acknowledges  that  the  Administrative  Agent,  after  exercising  its  rights  of                                         75    

 

   inspection, may prepare and distribute to the Lenders certain reports pertaining to the Company and the  other Loan Parties’ assets for internal use by the Administrative Agent and the Lenders.               SECTION 5.07.  Compliance  with Laws  and Material Contractual Obligations.  The  Company will, and will cause each other Loan Party to, (i) comply with all laws, rules, regulations and  orders  of  any  Governmental  Authority applicable  to  it  or  its  property  (including  without  limitation  Environmental Laws) and (ii) perform in all material respects its obligations under material agreements to  which it is a party, in each case except where the failure to do so, individually or in the aggregate, could  not reasonably be expected to result in a Material Adverse Effect.  The Company will in its reasonable  business judgment maintain in effect and enforce policies and procedures designed to ensure compliance  in  all  material  respects  by the  Company,  its  Subsidiaries  and  their  respective  directors,  officers,  employees  and  agents  with  Anti-Corruption  Laws  applicable  to  the  Company  and  its  Subsidiaries  and  applicable Sanctions.               SECTION 5.08.  Use  of Proceeds.  The  proceeds  of the  Loans  will be  used  only to  finance  the  working  capital  needs,  and  for  general  corporate  purposes,  of  the  Company  and  its  Subsidiaries.  No part of the proceeds of any Loan will be used, whether directly or indirectly, for any  purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X.   No  Borrower  will  request  any  Borrowing  or  Letter  of  Credit,  and  no  Borrower  shall  use,  and  the  Company shall procure that its Subsidiaries and its or their respective directors, officers, employees and  agents  shall  not  use,  the  proceeds  of  any  Borrowing  or  Letter  of  Credit  (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, except to the extent permitted  for a Person required  to comply with Sanctions  or (iii) in any  manner that would result in the violation of  any Sanctions applicable to any party hereto.  The foregoing  clauses  (ii)  and  (iii)  of  this  Section  5.08  will  not  apply  to  any  party  hereto  to  which  the  Blocking  Regulation applies, if and to the extent that such representations are or would be unenforceable pursuant  to, or would otherwise result in a breach and/or violation of, (i) any provision of the Blocking Regulation  (or any law or regulation implementing the Blocking Regulation in any member state of the European  Union) or (ii) any similar blocking or anti-boycott law in the United Kingdom.               SECTION 5.09.  Subsidiary  Guarantors;  Pledges;  Additional  Collateral;  Further  Assurances.                 (a)   Additional Guarantors.               (i)   Domestic  Subsidiary  Guarantors.   As  promptly  as  possible  but  in  any  event        within thirty (30) days (or such later date as may be agreed upon by the Administrative Agent)        after any Person becomes, or is designated by the Company as, or qualifies independently as a        Domestic  Subsidiary  Guarantor  pursuant  to  the  definitions  of  “Material  Subsidiary”  and        “Domestic  Subsidiary  Guarantor”,  the  Company  shall  provide  the  Administrative  Agent  with        written notice thereof and shall cause each such Subsidiary to deliver to the Administrative Agent        a joinder to the Subsidiary Guaranty, and the Domestic Security Agreement (in each case in the        form contemplated thereby) pursuant to which such Subsidiary agrees to be bound by the terms        and  provisions  thereof,  such  Subsidiary  Guaranty  and  the  Domestic  Security  Agreement  to  be        accompanied  by  appropriate  corporate  resolutions,  other  corporate  documentation  and  legal        opinions  in  form  and  substance  reasonably  satisfactory  to  the  Administrative  Agent  and  its        counsel.   Upon  execution  and  delivery  thereof,  each  such  Subsidiary  (i) shall  automatically        become a Domestic Subsidiary Guarantor hereunder and thereupon shall have all of the rights,        benefits, duties and obligations in such capacity under the Loan Documents, (ii) shall guarantee                                         76    

 

         repayment  of  all  of  the  Secured  Obligations  and  (iii) shall  grant  Liens  in  respect  of  its  assets        (other  than  Excluded  Assets)  to  the  Administrative  Agent,  for  the  benefit  of  the  Holders  of        Secured Obligations, in order to secure repayment of all of the Secured Obligations.               (ii)  Dutch Subsidiary Guarantors.  As promptly as possible but in any event within        thirty (30) days (or such later date as may be agreed upon by the Administrative Agent) after any        Person  becomes,  or  is  designated  by  the  Company  as,  or  qualifies  independently  as  a  Dutch        Subsidiary Guarantor pursuant to the definitions of “Material Subsidiary” and “Dutch Subsidiary        Guarantor”, the Company shall provide the Administrative Agent with written notice thereof and        shall  cause  each  such  Subsidiary  to  deliver  to  the  Administrative  Agent  a  joinder  to  the        Subsidiary  Guaranty,  and  a  joinder  to  (or  shall  enter  into)  the  relevant  Dutch  Collateral        Documents (in each case any such joinder being in the form contemplated thereby) pursuant to        which such Subsidiary agrees to be bound by the terms and provisions thereof, such Subsidiary        Guaranty  and  Dutch  Collateral  Documents  to  be  accompanied  by  appropriate  corporate        resolutions, other corporate documentation and legal opinions in form and substance reasonably        satisfactory to the Administrative Agent and its counsel.  Upon execution and delivery thereof,        each such Subsidiary (i) shall automatically become a Dutch Subsidiary Guarantor hereunder and        thereupon shall have all of the rights, benefits, duties and obligations in such capacity under the        Loan Documents, (ii) shall guarantee repayment of all of the Foreign Secured Obligations and        (iii) shall grant Liens in respect of its assets (other than Excluded Assets) to the Administrative        Agent, for the benefit of the Holders of Secured Obligations, in order to secure repayment of all        of the Foreign Secured Obligations.               (b)   The  Company  will  cause, and  will  cause  each  other Domestic  Loan  Party  and  Dutch  Subsidiary  Guarantor  to  cause,  all  of  its  owned  property  (whether  real,  personal,  tangible,  intangible, or mixed, but excluding Excluded Assets), to be subject at all times to first priority, perfected  Liens in favor of the Administrative Agent for the benefit of the Holders of Secured Obligations to secure  the  Secured  Obligations  (or,  in  the  case  of  a  Dutch  Subsidiary  Guarantor,  only  the  Foreign  Secured  Obligations) in accordance with the terms and conditions of the Collateral Documents, subject in any case  to  Permitted  Liens.   Without  limiting  the  generality  of  the  foregoing,  the  Company  (i) will  cause  the  Applicable Pledge Percentage of the issued and outstanding Equity Interests of each Pledge Subsidiary  directly owned by the Company or any other Loan Party (other than Excluded Assets) to be subject at all  times to a first priority, perfected Lien (subject only to Permitted Liens arising by operation of law) in  favor of the Administrative Agent to secure the Secured Obligations (or, in the case of a Dutch Subsidiary  Guarantor,  only  the  Foreign  Secured  Obligations)  in  accordance  with  the  terms  and  conditions  of  the  Collateral  Documents or  such  other  security  documents  as  the  Administrative  Agent  shall  reasonably  request  and  (ii) will,  and  will  cause  each  Domestic  Subsidiary  Guarantor  to,  deliver  Mortgages  and  Mortgage Instruments with respect to real mining Property owned by the Company or such Subsidiary  Guarantor  to  the  extent,  and  within  such  time  period  as  is,  reasonably  required  by  the  Administrative  Agent.  Notwithstanding the foregoing, (i) no such Mortgages and Mortgage Instruments are required to  be delivered hereunder until the date that is sixty (60) days after the Effective Date or such later date as  the Administrative Agent may agree in the exercise of its reasonable discretion with respect thereto and  (ii) no such pledge agreement in respect of the Equity Interests of a Foreign Subsidiary that is a Pledge  Subsidiary shall be required hereunder (A) until the date that is sixty (60) days after the Effective Date or  such later date as the Administrative Agent may agree in the exercise of its reasonable discretion with  respect thereto, (B) under the laws of any jurisdiction other than the United States or any state or territory  thereof  or,  with  respect  to  any  Dutch  Loan  Party,  the  Netherlands,  and  (C) to  the  extent  the  Administrative Agent or its counsel determines that such pledge would not provide material credit support  for the benefit of the Holders of Secured Obligations pursuant to legally valid, binding and enforceable  pledge agreements.                                         77    

 

               (c)   Without  limiting  the  foregoing,  the  Company  will,  and  will  cause  each  other  Domestic Loan Party and Dutch Subsidiary Guarantor to, execute and deliver, or cause to be executed and  delivered,  to  the  Administrative  Agent  such  documents,  agreements  and  instruments,  and  will  take  or  cause to be taken such further actions (including the filing and recording of financing statements, fixture  filings, mortgages, deeds of trust and other documents and such other actions or deliveries of the type  required  by  Section 4.01,  as  applicable),  which  may  be  required  by  law  or  which  the  Administrative  Agent may, from time to time, reasonably request to carry out the terms and conditions of this Agreement  and the other Loan Documents and to ensure perfection and priority of the Liens created or intended to be  created by the Collateral Documents, all at the expense of the Company.               (d)   If  any  material  assets  that  constitute  Collateral  (including  any  real  mining  Property or improvements thereto or any interest therein but excluding Excluded Assets) are acquired by  a  Domestic  Loan  Party  or  a  Dutch  Subsidiary  Guarantor  after  the  Effective  Date  (other  than  assets  constituting  Collateral  under  the  Domestic  Security  Agreement  or  any  Dutch  Collateral  Document,  as  applicable, that become subject to the Lien under the Security Agreement upon acquisition thereof), the  Company will notify the Administrative Agent thereof, and, if reasonably requested by the Administrative  Agent, the Company will cause such assets to be subjected to a Lien securing the Secured Obligations (or,  in the case of a Dutch Subsidiary Guarantor, only the Foreign Secured Obligations) and will take, and  cause the other Loan Parties to take, such actions as shall be necessary or reasonably requested by the  Administrative Agent to grant and perfect such Liens, including actions described in paragraph (c) of this  Section, all at the expense of the Company.               (e)   Notwithstanding anything to the contrary set forth in this Agreement, it is hereby  understood and agreed that no Dutch Subsidiary Guarantor shall be required to provide a Guarantee of, or  grant  a  lien  in  any  of  its  Property  to  secure,  any  Secured  Obligations  other  than  the  Foreign  Secured  Obligations.               SECTION 5.10.  Fiscal  Unity  for  Dutch  Tax  Purposes.   Any  fiscal  unity  (fiscale  eenheid)  for  Dutch  corporate  income  tax  (vennootschapsbelasting)  or  Dutch  value  added  tax  (omzetbelasting) purposes in which a Loan Party is included shall consist of Loan Parties only, unless  with the prior written consent of the Administrative Agent.               SECTION 5.11.  Allocation of Tax Losses.  If, at any time, a Loan Party is a member  of a fiscal unity (fiscale eenheid) for Dutch corporate income tax (vennootschapsbelasting) purposes and  such fiscal unity is, in respect of that Loan Party, terminated (verbroken) or disrupted (beëindigd) as a  result of or in connection with the Administrative Agent enforcing its rights under any Loan Document,  such Loan Party shall, at the request of the Administrative Agent and together with the parent company  (moedermaatschappij) or deemed parent company (aangewezen moedermaatschappij) of that fiscal unity,  for no consideration and as soon as reasonably practicable lodge a request with the relevant Governmental  Authority  to  allocate  and  surrender  any  tax  losses  (within  the  meaning  of  section  20  of  the  Dutch  Corporate  Income  Tax  Act  (Wet  op  de  vennootschapsbelasting  1969))  to  the  Loan  Party  leaving  that  fiscal unity, to the extent such tax losses are attributable (toerekenbaar) to the Loan Party leaving that  fiscal  unity  (within  the  meaning  of  Article  15af  of  the  Dutch  Corporate  Income  Tax  Act  (Wet  op  de  vennootschapsbelasting 1969)).               SECTION 5.12.  Residency for Tax Purposes.  None of the Dutch Loan Parties shall  change  its  residency for tax purposes  or create any permanent establishment or other taxable  presence  outside the Netherlands, unless with the prior written consent of the Administrative Agent.               SECTION 5.13.  Post-Closing Matters.  As promptly as practicable, and in any event  by  no  later  than  the  date  that  is  thirty  (30)  days  after  the  Effective  Date  (or  such  later  date  as  the                                         78    

 

   Administrative  Agent  may  agree  to  in its  discretion),  the  Company  shall  deliver to the  Administrative  Agent certificates of insurance listing the Administrative Agent as (x) lender loss payee for the property  and  casualty  insurance  policies  of  the  initial  Loan  Parties,  together  with  separate  lender  loss  payable  endorsements and (y) additional insured with respect to the liability insurance of the initial Loan Parties,  together  with  separate  additional insured  endorsements,  in  each  case to the  extent  required  by  Section  5.05.                                    ARTICLE VI                                                                          Negative Covenants               Until the Commitments have expired or terminated and the principal of and interest on  each Loan and all fees payable hereunder have been paid in full and all Letters of Credit have expired or  terminated (or have been cash collateralized in accordance with Section 2.06), in each case, without any  pending draw, and all LC Disbursements shall have been reimbursed, the Company covenants and agrees  with the Lenders that:               SECTION 6.01.  Indebtedness.   The  Company  will  not,  and  will  not  permit  any  Subsidiary to, create, incur, assume or permit to exist any Indebtedness, except:               (a)   the Secured Obligations;               (b)   Indebtedness  existing  on  the  date  hereof  and  set  forth  in Schedule 6.01 and        extensions, renewals, refinancings and replacements of any such Indebtedness with Indebtedness        of  a  similar  type  that  does  not  increase  the  outstanding  principal  amount  thereof  (other  than        attributable  to  the  accretion  of  original  issue  discount,  interest,  capitalization  of  interest  or        payment  premiums  in  respect  of  the  Indebtedness  being  extended,  renewed,  refinanced  or        replaced and costs and expenses related thereto);               (c)   Indebtedness  of  the  Company  to  any  Subsidiary  and  of  any  Subsidiary  to  the        Company  or  any  other  Subsidiary; provided that  Indebtedness  of  any  Subsidiary  that  is  not  a        Domestic Loan Party to any Domestic Loan Party shall be subject to Section 6.04;               (d)   Guarantees  by  the  Company  of  Indebtedness  of  any  Subsidiary  and  by  any        Subsidiary of Indebtedness of the Company or any other Subsidiary; provided that Guarantees by        any Domestic Loan Party of Indebtedness of any Subsidiary that is not a Domestic Loan Party        shall be subject to Section 6.04;               (e)   Indebtedness  of  the  Company  or  any  Subsidiary  incurred  to  finance  the        acquisition, construction or improvement of any assets, including Capitalized Lease Obligations        and any Indebtedness assumed in connection with the acquisition of any such assets or secured by        a Lien on any such assets prior to the acquisition thereof, and extensions, renewals, refinancings        and replacements of any such Indebtedness that do not increase the outstanding principal amount        thereof (other than attributable to the accretion of original issue discount, interest, capitalization        of  interest  or  payment  premiums  in  respect  of  the  Indebtedness  being  extended,  renewed,        refinanced  or  replaced  and  costs  and  expenses  related  thereto); provided that  the  aggregate        principal amount of Indebtedness incurred in any Fiscal Year pursuant to this clause (e) shall not        exceed $25,000,000;               (f)   Contingent  Obligations  (i) by  endorsement  of  instruments  for  deposit  or        collection in the ordinary course of business, (ii) consisting of the reimbursement obligations in                                         79    

 

                respect  of  LC  Disbursements  hereunder,  (iii) consisting  of  the  Subsidiary  Guaranty  and  Guarantees  of  Indebtedness  incurred  for  the  benefit  of  any  other  Loan  Party  if  the  primary  obligation  is  expressly  permitted  elsewhere  in  this  Section 6.01,  and  (iv) under  the  Beryllium  Contracts;         (g)   Indebtedness  arising  under  Swap  Agreements  having  a  Net  Mark-to-Market  Exposure  not  exceeding  $50,000,000  at  any  time,  which  amount  shall  include  the  Swap  Agreements in existence on the Effective Date;         (h)   Indebtedness  arising  under  Permitted  Precious  Metals  Agreements  in  an  aggregate principal amount not to exceed $600,000,000 at any time outstanding;         (i)   unsecured  Indebtedness  of  the  Company  (including  unsecured  Subordinated  Indebtedness  to  the  extent  subordinated  to  the  Secured  Obligations  on  terms  reasonably  acceptable to the  Administrative  Agent) in the form of publicly issued notes, to the  extent not  otherwise permitted under this Section 6.01, and any Indebtedness of the Company constituting  refinancings,  renewals  or  replacements  of  any  such  Indebtedness; provided that  (i) both  immediately  prior  to  and  after  giving  effect  (including  giving  effect  on  a  Pro Forma  Basis)  thereto,  no  Default  or  Event  of  Default  shall  exist  or  would  result  therefrom,  (ii) such  Indebtedness matures after, and does not require any scheduled amortization or other scheduled  payments  of  principal  prior  to,  the  date  that  is  181  days  after  the  Maturity  Date  (it  being  understood  that  any  provision  requiring  an  offer  to  purchase  such  Indebtedness  as  a  result  of  change of control or asset sale shall not violate the foregoing restriction), (iii) such Indebtedness  is not guaranteed by any Subsidiary of the Company other than the Subsidiary Guarantors (which  guarantees, if such Indebtedness is subordinated, shall be expressly subordinated to the Secured  Obligations  on  terms  not  less  favorable  to  the  Lenders  than  the  subordination  terms  of  such  Subordinated  Indebtedness),  (iv) the  covenants  applicable  to  such  Indebtedness  are  not  more  onerous  or  more  restrictive  in  any  material  respect  (taken  as  a  whole)  than  the  applicable  covenants set forth in this Agreement and (v) both immediately prior to and after giving effect  (including  giving  effect  on  a  Pro Forma  Basis)  thereto,  the  Company  is  in  compliance  with  Section 6.11;         (j)   Indebtedness of the Company or any Domestic Subsidiary incurred to finance the  acquisition  of  any  equipment  to  be  used  in  the  United  States  and  extensions,  renewals,  refinancings  and  replacements  of  any  such  Indebtedness  that  do  not  increase  the  outstanding  principal  amount  thereof  (other  than  attributable  to  the  accretion  of  original  issue  discount,  interest,  capitalization  of  interest  or  payment  premiums  in  respect  of  the  Indebtedness  being  extended, renewed, refinanced or replaced and costs and expenses related thereto); provided that  the  aggregate  principal  amount  of  Indebtedness  incurred  pursuant  to  this  clause (j)  shall  not  exceed $75,000,000 at any time outstanding;         (k)   Indebtedness  (including  obligations  in  respect  of  letters  of  credit  or  bank  guarantees or similar instruments) owed to any Person providing workers’ compensation, health,  disability  or  other  employee  benefits  or  property,  casualty  or  liability  insurance,  pursuant  to  reimbursement  or  indemnification  obligations  to  such  Person,  in  each  case  incurred  in  the  ordinary course of business;         (l)   Indebtedness  in  respect  of  performance bonds,  performance  and  completion  guarantees,  bid  bonds,  customs  and  appeal  bonds,  surety  bonds  and  similar  obligations  or  obligations  in respect  of letters  of  credit  related  thereto, in each  case  provided  in  the  ordinary                                   80                 

 

         course  of  business,  including  those  incurred  to  secure  health,  safety  and  environmental        obligations in the ordinary course of business;                (m)   Indebtedness  of  any  Person  that  becomes  a  Subsidiary  or  is  merged  into  or        consolidated with the Company or a Subsidiary and Indebtedness assumed in connection with the        acquisition  of  assets,  in  each  case,  pursuant  to  a  transaction  not  otherwise  prohibited  by  this        Agreement; provided that such Indebtedness exists at the time such Person becomes a Subsidiary        or at the time of such merger, consolidation or acquisition, as applicable, and is not created in        contemplation  of  or  in  connection  with  such  Person  becoming  a  Subsidiary  or  such  merger,        consolidation  or  acquisition,  as  applicable,  and  extensions,  renewals,  refinancings  and        replacements of any such Indebtedness with Indebtedness of a similar type that does not increase        the outstanding principal amount thereof (other than attributable to the accretion of original issue        discount, interest, capitalization of interest or payment premiums in respect of the Indebtedness        being extended, renewed, refinanced or replaced and costs and expenses related thereto);               (n)   Indebtedness representing deferred compensation to employees of the Company        or any Subsidiary;               (o)   Indebtedness to the extent constituting obligations providing for indemnification,        the adjustment of the purchase price or similar adjustments in connection with an Acquisition or        disposition permitted hereunder;               (p)   Indebtedness  and  other  obligations  in  respect  of  netting  services,  overdraft        protections  and  similar  arrangements  in  each  case  in  connection  with  cash  management        agreements and deposit accounts in the ordinary course of business;               (q)   Indebtedness consisting of (i) the financing of insurance premiums or (ii) take-or-       pay  obligations  contained  in  supply  arrangements,  in  each  case,  in  the  ordinary  course  of        business;               (r)   Indebtedness  in  respect  of  any  trade  letters  of  credit,  warehouse  receipts  or        similar facilities entered into in the ordinary course of business;               (s)   Indebtedness  of Foreign  Subsidiaries  that  are  not  Loan  Parties in an  aggregate        principal  amount  not  to  exceed  $25,000,000  at  any  time  outstanding; provided that  such        Indebtedness  is  without  any  direct  or  indirect  recourse  to  the  Company  or  any  Domestic        Subsidiary; and               (t)   other  unsecured  Indebtedness in  an  aggregate principal  amount  not  to  exceed        $150,000,000 at any time outstanding.               SECTION 6.02.  Liens.  The Company will not, and will not permit any Subsidiary to,  create, incur, assume  or permit to exist any Lien on any Collateral, except the following (collectively,  “Permitted Liens”):               (a)   Liens created pursuant to any Loan Document;               (b)   Liens arising in connection with Permitted Precious Metals Agreements subject        to  the  Intercreditor  Agreement  referenced  in  clause (a)  of  the  definition  of  “Intercreditor        Agreements” to the extent applicable;                                          81    

 

                      (c)   any Lien on any property or asset of the Company or any Subsidiary existing on  the date hereof and set forth in Schedule 6.02; provided that (i) such Lien shall not apply to any  other property or asset of the Company or any Subsidiary (other than (x) after-acquired property  that  is  affixed  or  incorporated  into  the  property  covered  by  such  Lien  and  (y)  proceeds  and  products thereof) and (ii) such Lien shall secure only those obligations which it secures on the  date hereof and extensions, renewals, refinancings and replacements thereof that do not increase  the outstanding principal amount thereof (other than attributable to the accretion of original issue  discount,  interest,  capitalization  of  interest  or  payment  premiums  in  respect  of  the  obligations  being extended, renewed, refinanced or replaced and costs and expenses related thereto);         (d)   any Lien existing on any property or asset prior to the acquisition thereof by the  Company or any Subsidiary or existing on any property or asset of any Person that becomes a  Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary; provided that  (i) such Lien is not created in contemplation of or in connection with such acquisition or such  Person  becoming a  Subsidiary, as the  case may be,  (ii) such Lien shall not apply to any other  property or assets of the Company or any Subsidiary (other than the proceeds or products thereof  and  after-acquired  property  subject  to  a  Lien  pursuant  to  terms  existing  at  the  time  of  such  acquisition) and (iii) such Lien shall secure only those obligations which it secures on the date of  such  acquisition  or  the  date  such  Person  becomes  a  Subsidiary,  as  the  case  may  be,  and  extensions, renewals, refnancings and replacements thereof that do not increase the outstanding  principal  amount  thereof  (other  than  attributable  to  the  accretion  of  original  issue  discount,  interest,  capitalization  of  interest  or  payment  premiums  in  respect  of  the  obligations  being  extended, renewed, refinanced or replaced and costs and expenses related thereto);         (e)   Liens  on  assets  acquired,  constructed  or  improved  by  the  Company  or  any  Subsidiary; provided that (i) such security interests secure Indebtedness permitted by clause (e) of  Section 6.01,  (ii) the  Indebtedness  secured  thereby  does  not  exceed the  cost  of  acquiring,  constructing or improving such assets and (iii) such security interests shall not apply to any other  property or assets of the Company or any Subsidiary other than the property financed by such  Indebtedness  and  any  accessions  thereto and  the  proceeds  and  products  thereof  and  related  property;  provided  further  that  individual  financings  provided  by  one  lender  may  be  cross- collateralized  to other financings  provided  by such lender incurred  under clause  (e) of Section  6.01;         (f)   Liens for taxes, fees, assessments, or other governmental charges or levies on the  Property of the Company or any Subsidiary if such Liens (a) shall not at the time be delinquent by  more than 30 days (after giving effect to any grace period), (b) are being contested in good faith  by appropriate proceedings diligently pursued and for which adequate reserves shall have been  provided  on  the  Company  or  such  Subsidiary’s  books,  or  (c) subject  to  the  provisions  of  Section 5.04, do not secure  obligations  in excess of $15,000,000 and  a stay of enforcement of  such Lien is in effect;         (g)   Liens imposed by law, such as carrier’s, warehousemen’s, and mechanic’s Liens  and  other  similar  Liens  arising  in  the  ordinary  course  of  business  which  secure  payment  of  obligations  not  more  than  30  days  past  due  or  which  are  being  contested  in  good  faith  by  appropriate  proceedings  diligently  pursued  and  for  which  adequate  reserves  shall  have  been  provided on the Company or such Subsidiary’s books;         (h)   statutory Liens in favor of landlords of real Property leased by the Company or  any Subsidiary; provided that, the Company or such Subsidiary is current with respect to payment                                   82                 

 

                of all rent and other material amounts due to such landlord under any lease of such real Property  or is contesting such amounts in good faith by appropriate proceedings;         (i)   Liens  arising  out  of  pledges  or  deposits  under  worker’s  compensation  laws,  unemployment  insurance,  old  age  pensions,  or  other  social  security  or  retirement  benefits,  or  similar legislation or to secure the performance of bids, tenders, or contracts (other than for the  repayment of Indebtedness) or to secure indemnity, performance, or other similar bonds for the  performance  of  bids,  tenders,  or  contracts  (other  than  for  the  repayment  of  Indebtedness)  and  other obligations of a like nature or to secure statutory obligations (other than liens arising under  ERISA or Environmental Laws) or surety or appeal bonds, or to secure indemnity, performance,  or other similar bonds;         (j)   utility easements, building restrictions, and such other encumbrances or charges  against real Property as are of a nature generally existing with respect to properties of a similar  character and which do not in any material way affect the marketability of such real Property or  interfere  in  any  material  respect  with  the  use  thereof  in  the  business  of  the  Company  or  any  Subsidiary;         (k)   the  equivalent  of  the  types  of  Liens  discussed  in  clauses (f)  through  (j) above,  and in clauses (n) through (p) and (s) through (u) below, inclusive, in any jurisdiction in which  the Company or any Subsidiary is engaged in business or owns Property or assets;         (l)   Liens  arising  from  judgments  or  orders  under  circumstances  that  do  not  constitute an Event of Default under Section 7.01(k);         (m)   Liens on equipment acquired by the Company or any Domestic Subsidiary to be  used in the United States; provided that (i) such security interests secure Indebtedness permitted  by clause (j) of Section 6.01, (ii) the  Indebtedness  secured thereby does not exceed the  cost of  acquiring such equipment and (iii) such security interests shall not apply to any other property or  assets of the Company or any Subsidiary other than the property financed by such Indebtedness  and any accessions thereto and the proceeds and products thereof and related property; provided  that individual financings provided by one lender may be cross-collateralized to other financings  provided by such lender incurred under clause (j) of Section 6.01;          (n)   Liens  securing  insurance  premiums  financing  arrangements  in  the  ordinary  course of business;          (o)   Liens in favor of customs and revenue authorities arising as a matter of law to  secure  payment of customs  duties in connection with the importation of goods in the  ordinary  course of business;         (p)   Liens  of  a  collecting  bank  arising  in  the  ordinary  course  of business  under  Section 4-208  of  the  UCC  in  effect  in  the  relevant  jurisdiction  covering  only  the  items  being  collected upon;         (q)   (i) leases, licenses, subleases or sublicenses granted to other Persons (including  with  respect  to  intellectual  property  and  software)  which  do  not  (x)  interfere  in  any  material  respect with the business of the Company and its Subsidiaries, taken as a whole, or (y) secure any  Indebtedness for borrowed money or (ii) the rights reserved or vested in any Person by the terms  of any lease, license, franchise, grant or permit held by the Company or any of its Subsidiaries or                                    83                 

 

                by  a  statutory  provision,  to  terminate  any  such  lease,  license,  franchise,  grant or  permit,  or  to  require annual or periodic payments as a condition to the continuance thereof;         (r)   Liens (i) (x) on advances of cash or cash equivalents in favor of the seller of any  property to be acquired in an Acquisition permitted hereunder to be applied against the purchase  price  for  such  Acquisition  and  (y)  consisting  of  an  agreement  to  dispose  of  any  property  in  a  disposition  permitted  under  Section 6.03, in  each  case  solely  to the  extent  such  Investment  or  disposition, as the case may be, would have been permitted on the date of the creation of such  Lien,  and  (ii)  reasonable  earnest  money  deposits  of  cash  or  cash  equivalents  made  by  the  Company or any of its Subsidiaries in connection with any letter of intent or purchase agreement  permitted hereunder;         (s)   Liens  arising  from  precautionary  UCC  financing  statement  filings  (or  similar  filings under other applicable law) in connection with Operating Leases and other ordinary course  transaction and which, in each case, do not relate to any Indebtedness;         (t)   Liens  on  cash  and  cash  equivalents  on  deposit  with  Lenders  and  Affiliates  of  Lenders securing obligations owing to such Persons under any treasury, depository, overdraft or  other  cash  management  services  agreements  or  arrangements  with  the  Company  or  any  Subsidiary in the ordinary course of business;          (u)   Liens  that  are  contractual  rights  of  set-off  (i) relating  to  the  establishment  of  depository relations  with banks  not given in connection with the issuance  of Indebtedness, (ii)  relating to pooled deposit or sweep accounts of the Company or any of its Subsidiaries to permit  satisfaction of overdraft of similar obligations incurred in the ordinary course of business of the  Company  and  its  Subsidiaries,  including  with  respect  to  credit  card  chargebacks  and  similar  obligations  incurred  in the ordinary course of business, or (iii) relating to purchase  orders and  other agreements entered into with customers, suppliers or service providers of the Company or  any of its Subsidiaries in the ordinary course of business;          (v)   non-recourse  Liens  on  Equity  Interests  in  joint  ventures  which  are  not  Subsidiaries  securing  obligations  of  such  joint  ventures  which  are  not  prohibited  by  this  Agreement;         (w)   to the  extent constituting Liens, dispositions expressly permitted under Section  6.03;         (x)   Liens  arising  out  of  conditional  sale,  title  retention,  consignment  or  similar  arrangements for sale of goods entered into by the Company or any of its Subsidiaries and not  prohibited by this Agreement;          (y)   Liens securing Indebtedness permitted under Section 6.01(s); provided that such  Liens do not attach to the Collateral;          (z)   Liens arising out of a Sale and Leaseback Transaction permitted by Section 6.10  to  the  extent  that  any  assets  subject  to  any  such  Lien  are  the  assets  subject  to  such  Sale  and  Leaseback Transaction;          (aa)  Liens  arising  under  Article  24  or  26  of  the  general  terms  and  conditions  (Algemene Bank Voorwaarden) of any member of the Dutch Bankers' Association (Nederlandse  Vereniging van Banken) or any similar term applied by a financial institution in the Netherlands                                   84                 

 

         pursuant to its general terms and conditions, notwithstanding any obligation of a Loan Party to        obtain  a  partial  waiver  of  such  Lien  in  accordance  with  the  provisions  of  the  relevant  Dutch        Security Agreement; and               (bb)  other  Liens  not  otherwise  permitted  above  so  long  as  the  aggregate  principal        amount of the obligations subject to such Liens does not at any time exceed $20,000,000.               SECTION 6.03.  Fundamental Changes and Asset Sales.  (a) The Company will not,  and will not permit any Subsidiary to, merge into or consolidate with any other Person, or permit any  other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (in one  transaction or in a series of transactions) any of its assets, (including pursuant to a Sale and Leaseback  Transaction), or any of the Equity Interests of any of its Subsidiaries (in each case, whether now owned or  hereafter  acquired),  or  liquidate  or  dissolve,  except  that,  if  at  the  time  thereof  and  immediately  after  giving effect thereto no Event of Default shall have occurred and be continuing:               (i)   any Person may merge into the Company in a transaction in which the Company        is the surviving corporation;               (ii)  (A) any Subsidiary may merge into or consolidate with or liquidate or dissolve        into a Loan Party in a transaction in which the surviving entity is such Loan Party (provided that        any such merger involving the Company must result in the Company as the surviving entity), (B)        any Subsidiary which is not a Loan Party may merge into another Subsidiary which is not a Loan        Party  and  (C)  the  Company  or  any  of  its  Subsidiaries  may  merge  into  or  consolidate  with  or        liquidate  or  dissolve  into  any  other  Person  in  order  to  effect  an  Acquisition  or an  Investment        permitted under Section 6.04 so long as the surviving entity is or shall become a Loan Party and,        if the Company is involved, the surviving entity is or shall be the Company;               (iii) any  sale,  transfer,  lease  or  other  disposal  of  assets  to  the  Company  or  any        Subsidiary; provided that  any  such  sales,  transfers,  leases  or  other  dispositions  by  a  Domestic        Loan Party to a Subsidiary that is not a Domestic Loan Party shall be considered an Investment        and shall be required to be made in compliance with Section 6.04;               (iv)  the Company and its Subsidiaries may (A) sell inventory in the ordinary course        of business, (B) effect sales, trade-ins or dispositions of equipment that is obsolete or no longer        useful in any meaningful way in its business, (C) enter into licenses of technology in the ordinary        course of business, and (D) make any other sales, transfers, leases or dispositions that, together        with all other Property of the Company and its Subsidiaries previously leased, sold or disposed of        as  permitted  by  this  clause (D)  during  any  Fiscal  Year  of  the  Company,  does  not  represent        Property with a book value that (1) is greater than 10% of the Consolidated Total Assets of the        Company  or  (2) is  responsible  for  more  than  10%  of  the  consolidated  net  sales  or  of  the        Consolidated Net Income of the Company, in each case, as would be shown in the consolidated        financial statements of the Company as at the beginning of the four-quarter period ending with        the  quarter  in  which  such  determination  is  made  (or  if  financial  statements have  not  been        delivered  hereunder  for  that  quarter  which  begins  the  four  quarter  period,  then  the  financial        statements delivered hereunder for the quarter ending immediately prior to that quarter);               (v)   any  Subsidiary  may  liquidate  or  dissolve  if  the  Company  determines  in  good        faith  that  such  liquidation  or  dissolution  is  in  the  best  interests  of  the  Company  and  is  not        materially disadvantageous to the Lenders; provided that any such merger involving a Person that        is not a Wholly-Owned Subsidiary immediately prior to such merger shall not be permitted unless        also permitted by Section 6.04;                                          85    

 

               (vi)  any sale, transfer, lease or other disposal of accounts receivable (excluding sales        or  dispositions  in  a  factoring  arrangement)  in  connection  with  the  compromise,  settlement  or        collection thereof;               (vii) Sale and Leaseback Transactions permitted by Section 6.10;               (viii) any  sale,  transfer,  lease  or  other  disposal resulting  from  any  casualty  or other        insured damage to, or any taking under power of eminent domain or by condemnation or similar        proceeding of, any property or asset of the Company or any Subsidiary;                (ix)  leases,  subleases,  licenses  or  sublicenses  of  real  or  personal  property  in  the        ordinary course of business, in each case that do not materially interfere with the business of the        Company and its Subsidiaries;               (x)   the termination, surrender or sublease of leases (as lessee), licenses (as licensee),        subleases (as sublessee) and sublicenses (as sublicensee) in the ordinary course of business;                (xi)  any sale, transfer, lease or other disposal of fixed assets which are replaced by        comparable  fixed  assets  within  180  days  of  such  sale,  transfer  or  lease; provided that  such        substitute assets, if owned by a Loan Party, constitute Collateral;               (xii) any  sale,  transfer,  lease  or  other  disposal  of  non-core  assets,  including  Equity        Interests,  acquired  in  connection  with  an  Acquisition  permitted  under  Section  6.04  after  the        Effective  Date  to  the  extent  the  Company  identified  such  assets  to  the  Administrative  Agent        promptly after such Acquisition;               (xiii) any  surrender  or  waiver  of  contractual  rights  or  the  settlement,  release  or        surrender of contractual rights or other litigation claims in the ordinary course of business;               (xiv) the termination of any Swap Agreement;                (xv)  any like kind exchange of property; and               (xvi) Dispositions of cash and Cash Equivalent Investments.               (b)   The Company will not, and will not permit any of its Subsidiaries to, engage to  any material extent in any business other than businesses of the type conducted by the Company and its  Subsidiaries on the date of execution of this Agreement and businesses reasonably related thereto.               (c)   The Company will not, nor will it permit any of its Subsidiaries to, change its  Fiscal  Year  from  the  basis  in  effect  on the  Effective  Date,  except  to  conform  the  fiscal  year  or  fiscal  quarter of a Subsidiary to that of the Company.               SECTION 6.04.  Investments,  Loans,  Advances,  Guarantees  and  Acquisitions.   The  Company will not, and will not permit any of its Subsidiaries to, make or permit to exist any Investment  in any other Person, or make any Acquisition, except:               (a)   Cash Equivalent Investments;               (b)   Investments  in  Subsidiaries  existing  as  of  the  Effective  Date  and  additional  Investments in the Company or in Subsidiaries which are Domestic Loan Parties;                                         86    

 

               (c)   other  Investments  in  existence  on  the  Effective  Date  and  described  in  Schedule 6.04, and any modification, replacement, renewal or extension thereof that does not increase the  amount thereof;               (d)   Investments consisting of loans or advances made to employees of the Company  or any Subsidiary on an arms-length basis in the ordinary course of business consistent with past practices  for travel and entertainment expenses, and similar purposes up to a maximum of $50,000 to any employee  and up to a maximum of $250,000 in the aggregate at any one time outstanding and advances of payroll  payments to employees in the ordinary course of business;               (e)   Investments  comprised  of notes  payable,  or stock  or  other  securities issued  by  account  debtors  to  the  Company  or  any  Subsidiary  pursuant  to  negotiated  agreements  with  respect  to  settlement  of  such  account  debtor’s  accounts  in  the  ordinary  course  of  business,  consistent  with  past  practices;               (f)   Investments  made  in  connection  with  employee  compensation  arrangements,  employee option plans or deferred director compensation, all in a manner consistent with the Company’s  historical practices;               (g)   Acquisitions; provided, that, at the time of and immediately after giving effect to  any such Acquisition, (i) no Event of Default has occurred and is continuing or would arise after giving  effect thereto, (ii) such Acquisition is not a Hostile Acquisition, (iii) such Person or division or line of  business  is  engaged  in  the  same  or a  similar  line  of business  as  the  Company  and  the Subsidiaries  or  business  reasonably  related  thereto,  (iv) the  Company  and  the  Subsidiaries  are  in  compliance,  on  a  Pro Forma Basis after giving effect to such Acquisition (but without giving effect to any synergies or cost  savings), with the covenants contained in Section 6.11 recomputed as of the last day of the most recently  ended Fiscal Quarter of the Company for which financial statements are available, as if such Acquisition  (and any related incurrence or repayment of Indebtedness, with any new Indebtedness being deemed to be  amortized over the applicable testing period in accordance with its terms) had occurred on the first day of  each relevant period for testing such compliance and, if the aggregate  consideration paid in respect of  such Acquisition exceeds $100,000,000, the Company shall have delivered to the Administrative Agent a  certificate  of  a  Financial  Officer  of  the  Company  to  such  effect,  together  with  all  relevant  financial  information, statements and projections reasonably requested by the Administrative Agent, (v) in the case  of  an  Acquisition  or  merger involving  the  Company  or  a  Subsidiary,  (1) if such  Subsidiary  is  a  Loan  Party, either such Subsidiary is the surviving entity of such merger and/or consolidation or the survivor  shall become a Loan Party upon the consummation thereof, or (2) if such Subsidiary is not a Loan Party,  the surviving entity of such merger and/or consolidation is a Subsidiary (provided that any such merger  involving the Company must result in the Company as the surviving entity) and (vi) immediately prior to  and  immediately  after  giving  effect  (including  giving  effect  on  a  Pro  Forma  Basis)  to  any  such  Acquisition, the Leverage Ratio does not exceed 3.25 to 1.00;               (h)   Investments under Permitted Precious Metal Agreements;                (i)   other Investments in Subsidiaries that are not Domestic Loan Parties; provided  that  Investments  by  Domestic  Loan  Parties  in  Subsidiaries  that  are  not  Domestic  Loan  Parties,  net  of  Investments  by  Subsidiaries  that  are  not  Domestic  Loan  Parties  in  Domestic  Loan  Parties,  shall  not  exceed $80,000,000 in the aggregate at any time outstanding;               (j)   Investments of any Person existing at the time such Person becomes a Subsidiary  of  the  Company  or  consolidates  or  merges  with  the  Company  or  any  of  its  Subsidiaries  (including  in                                         87    

 

   connection with an Acquisition permitted under this Section 6.04), so long as such Investments were not  made in contemplation of such Person becoming a Subsidiary or of such merger;               (k)   Investments  received  in  connection  with  the  disposition  of  assets  permitted  by  Section 6.03;               (l)   Investments consisting of endorsements of instruments for collection or deposit  in the ordinary course of business;               (m)   Investments  (including  debt  obligations  and  Equity  Interests)  received  in  connection with the bankruptcy or reorganization of any Person and in settlement of obligations of, or  disputes with, any Person arising and upon foreclosure with respect to any secured Investment or other  transfer of title with respect to any secured Investment;               (n)   Guarantees (i) by the  Company or any of its  Subsidiaries of leases  (other than  Capitalized Leases) or of other obligations that do not constitute Indebtedness, in each case entered into in  the ordinary course of business or (ii) permitted under Section 6.01;               (o)   to  the  extent  constituting Investments,  Restricted  Payments  permitted  by  6.07,  fundamental changes permitted by Section 6.03 and dispositions permitted by Section 6.03;               (p)   Acquisitions made by any Foreign Subsidiary that is not a Loan Party; and               (q)   other Investments not to exceed $50,000,000 at any time outstanding.               SECTION 6.05.  Swap Agreements.  The Company will not, and will not permit any  of its Subsidiaries to, enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge  or mitigate risks to which the Company or any Subsidiary has actual exposure (other than those in respect  of Equity Interests of the Company or any of its Subsidiaries), and (b) Swap Agreements entered into in  order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating  rate to another floating rate or otherwise) with respect to any interest-bearing liability or investment of the  Company or any Subsidiary.               SECTION 6.06.  Transactions  with  Affiliates.   The  Company  will  not,  and  will  not  permit any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase,  lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions with,  any  of  its  Affiliates,  except  (a)  at  prices  and  on  terms  and  conditions,  when  taken as  a  whole,  not  materially less favorable to the Company or such Subsidiary than could be obtained on an arm’s-length  basis from unrelated third parties, (b) transactions between or among the Company and its Wholly-Owned  Subsidiaries not involving any other Affiliate, (c)  any Restricted Payment permitted by Section 6.07, (d)  loans or advances to employees permitted under Section 6.04(d), and (e) the payment of reasonable fees  to directors of the Company or any Subsidiary who are not employees of the Company or any Subsidiary,  and compensation and employee benefit arrangements paid to, and indemnities provided for the benefit  of, directors, officers or employees of the Company or its Subsidiaries in the ordinary course of business.               SECTION 6.07.   Restricted  Payments.   The  Company  will  not,  and  will  not  permit  any of its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted  Payment, except (a) the Company may declare and pay dividends with respect to its Equity Interests or  repurchase any of its  Equity  Interests, in each  case, payable solely in additional shares  of its common  stock, (b) Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests, (c) the  Company may make Restricted Payments pursuant to and in accordance with stock option plans or other                                         88    

 

   benefit plans for management or employees of the Company and its Subsidiaries and (d) the Company  and its Subsidiaries may make any other Restricted Payment so long as no Default or Event of Default has  occurred and is  continuing prior to making such Restricted  Payment or would arise after giving effect  (including  giving  effect  on  a  Pro Forma  Basis)  thereto  and  the  aggregate  amount  of  such  Restricted  Payments does not exceed 10% of Consolidated Net Worth as of the most recently ended Fiscal Quarter  of  the  Company  for  which  Financials  have  been  delivered; provided,  that  the  foregoing  aggregate  limitation for Restricted Payments shall not apply as long as the Leverage Ratio does not exceed 2.75 to  1.00 immediately prior to and  immediately after giving effect (including giving effect on a  Pro Forma  Basis) to any such Restricted Payment; provided further that nothing in this Section 6.07 shall operate to  prevent the making of any previously declared Restricted Payment by the Company so long as (i) at the  declaration date or execution date, such Restricted Payment was permitted by the foregoing, and (ii) such  Restricted Payment is consummated within the earlier of 60 days and any date under applicable law on  which such dividend or repurchase must be consummated.               SECTION 6.08.  Restrictive Agreements.  The Company will not, and will not permit  any of its Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement (other  than  this  Agreement  and  the  other  Loan  Documents)  or  other  arrangement  that  prohibits,  restricts  or  imposes any condition upon (a) the ability of the Company or any Subsidiary to create, incur or permit to  exist any Lien upon any of its property or assets, or (b) the ability of any Subsidiary to pay dividends or  other distributions with respect to holders of its Equity Interests or to make or repay loans or advances to  the  Company  or  any  other  Subsidiary  or  to  Guarantee  Indebtedness  of  the  Company  or  any  other  Subsidiary; provided that (i) the foregoing shall not apply to restrictions and conditions imposed by law  or  by  any  Loan  Document,  (ii) the  foregoing  shall  not  apply  to  customary  restrictions  and  conditions  contained  in  agreements  relating  to  the  sale  of  a  Subsidiary  pending  such  sale  or  relating  to  any  Acquisition  permitted  under  Section  6.04; provided such  restrictions  and  conditions  apply  only  to  the  Subsidiary that is to be sold and such sale is permitted hereunder, (iii) the foregoing shall not apply to  restrictions  and conditions set forth in any Permitted Precious Metals  Agreement that is subject to the  Intercreditor Agreement referenced in clause (a) of the definition of “Intercreditor Agreements”, (iv) the  foregoing  shall  not  apply  to  restrictions  and  conditions  binding on  a  Subsidiary  at  the  time  such  Subsidiary first becomes a Subsidiary, so long as such agreements or other arrangements were not entered  into  in  contemplation  of  such  Person  becoming  a  Subsidiary,  (v)  the  foregoing  shall  not  apply  to  restrictions  and  conditions  constituting  customary  provisions  in  joint  venture  agreements  and  other  similar  agreements  applicable  to  joint  ventures,  (vi)  the  foregoing  shall  not  apply  to  restrictions  and  conditions on cash or other deposits imposed by customers under contracts entered into in the ordinary  course of business, and (vii) the foregoing shall not apply to restrictions and conditions imposed by any  amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or  refinancings of the agreements or arrangements referred to in clauses (i) through (vi) above; provided that  such  amendments,  modifications,  restatements,  renewals,  increases,  supplements,  refundings,  replacements or refinancings are, in the good faith judgment of the Company, no more restrictive with  respect to such terms than those in effect prior to such amendment, modification, restatement, renewal,  increase, supplement, refunding, replacement or refinancing, (viii) clause (a) of the foregoing shall not  apply to restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted  by this Agreement if such restrictions or conditions apply only to the property or assets securing such  Indebtedness, and (ix) clause (a) of the foregoing shall not apply to customary provisions in leases and  other contracts restricting the assignment thereof.               SECTION 6.09.  Subordinated  Indebtedness  and  Amendments  to  Subordinated  Indebtedness  Documents.   The  Company  will  not,  and  will  not  permit  any  Subsidiary  to,  directly  or  indirectly  voluntarily  prepay,  defease  or  in  substance  defease,  purchase,  redeem,  retire  or  otherwise  acquire,  any  Subordinated  Indebtedness  or  any  Indebtedness  from  time  to  time  outstanding  under  the  Subordinated Indebtedness Documents (other than, for the avoidance of doubt (a) payment of regularly                                         89    

 

   scheduled interest payments as and when due in respect of such Indebtedness to the extent permitted by  the subordination provisions applicable thereto and (b) refinancings of such Indebtedness permitted by  Section  6.01).   Furthermore,  the  Company  will  not, and  will not  permit any  Subsidiary  to,  amend  the  Subordinated  Indebtedness  Documents  or  any  document,  agreement  or  instrument  evidencing  any  Indebtedness  incurred  pursuant  to  the  Subordinated  Indebtedness  Documents  (or  any  replacements,  substitutions,  extensions  or  renewals  thereof)  or  pursuant  to  which  such  Indebtedness  is  issued  to  the  extent  prohibited  by  the  terms  of  the  subordination  agreement  or  subordination  provisions  applicable  thereto.               SECTION 6.10.  Sale and Leaseback Transactions.  The Company shall not, nor shall  it  permit  any  Subsidiary  to,  enter  into  any  Sale  and  Leaseback  Transaction  other  than  (a) Sale  and  Leaseback  Transactions  entered  into  in  connection  with  any  Permitted  Precious  Metals  Agreement,  (b) Sale  and  Leaseback  Transactions  entered  into  in  connection  with  any  project  financing  involving  municipal  bond  offerings  otherwise  permitted  by  this  Agreement,  and  (c)  Sale  and  Leaseback  Transactions (i) made for cash consideration in an amount not less than the fair value of such fixed or  capital  asset,  (ii)  in  respect  of  which  the  net  cash  proceeds  received  in  connection  therewith  does  not  exceed  $20,000,000  in  the  aggregate  for  all  such  Sale  and  Leaseback  Transactions  after  the  Effective  Date, and (iii) that is consummated within 180 days after the Company or such Subsidiary acquires or  completes the construction of such fixed or capital asset.               SECTION 6.11.  Financial Covenants.               (a)   Maximum Leverage  Ratio.  The  Company will not permit the  Leverage  Ratio,  determined  as  of  the  end  of  each  of  its  Fiscal  Quarters  for  the  then  most-recently  ended  four  Fiscal  Quarters, to be greater than 3.50 to 1.00.               (b)   Minimum  Interest  Coverage  Ratio.   The  Company  will  not  permit  the  Interest  Coverage Ratio, determined as of the end of each of its Fiscal Quarters for the then most-recently ended  four Fiscal Quarters, to be less than 3.00 to 1.00.                                    ARTICLE VII                                                                           Events of Default               SECTION 7.01.  Events  of  Default.   If  any  of  the  following  events  (“Events  of  Default”) shall occur:               (a)   any Borrower shall fail to pay any principal of any Loan or any reimbursement  obligation  in  respect  of  any  LC  Disbursement  when  and  as  the  same  shall  become  due  and  payable,  whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;               (b)   any Borrower shall fail to pay any interest on any Loan or any fee or any other  amount (other than an amount referred to in Section 7.01(a)) payable under this Agreement, when and as  the same shall become due and payable, and such failure shall continue unremedied for a period of three  (3) Business Days;               (c)   any  representation  or  warranty  made  or  deemed  made  by  or  on  behalf  of  any  Loan Party in or in connection with this Agreement or any other Loan Document or any amendment or  modification hereof or thereof or waiver hereunder or thereunder, or in any report, certificate, financial  statement  or other  document  furnished pursuant  to or  in  connection  with this  Agreement  or  any  other                                          90    

 

   Loan Document or any amendment or modification thereof or waiver thereunder, shall prove to have been  materially incorrect when made or deemed made;               (d)   the  Company  shall  fail  to  observe  or  perform  any  covenant,  condition  or  agreement  contained  in  Section 5.02(a),  5.03  (with  respect  to  any  Borrower’s  existence)  or  5.08,  in  Article VI or in Article X;               (e)   any  Loan  Party,  as  applicable,  shall  fail to  observe  or  perform  any  covenant,  condition or agreement contained in this Agreement (other than those specified in Section 7.01(a), (b) or  (d))  or  any  other  Loan  Document,  and  such  failure  shall  continue  unremedied  for  a  period  of  thirty  (30) days after notice thereof from the Administrative Agent to the Company (which notice will be given  at the request of any Lender);               (f)   the  Company  or  any  Subsidiary  shall  fail  to  make  any  payment  (whether  of  principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the  same shall become due and payable;               (g)   any event or condition occurs that results in any Material Indebtedness becoming  due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the  lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent on its or  their behalf to cause any Material Indebtedness to become due, or to require the prepayment, repurchase,  redemption or defeasance thereof, prior to its scheduled maturity; provided that this clause (g) shall not  apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property  or assets securing such Indebtedness;               (h)   an involuntary proceeding shall be commenced or an involuntary petition shall be  filed seeking (i) liquidation, reorganization or other relief in respect of the Company or any other Loan  Party or its debts, or of a Substantial Portion of its assets, under any federal, state or foreign bankruptcy,  insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver,  trustee, custodian, sequestrator, conservator or similar official for the Company or any other Loan Party  or for a Substantial Portion of its assets, and, in any such case, such proceeding or petition shall continue  undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered;               (i)   the  Company  or  any  other  Loan  Party  shall  (i) voluntarily  commence  any  proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state  or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to  the  institution  of,  or  fail  to  contest  in  a timely  and  appropriate  manner,  any  proceeding  or  petition  described in Section 7.01(h), (iii) apply for or consent to the appointment of a receiver, trustee, custodian,  sequestrator, conservator or similar official for the Company or any other Loan Party or for a Substantial  Portion of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in  any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for  the purpose of effecting any of the foregoing;               (j)   the Company or any other Loan Party shall admit in writing its inability or fail  generally to pay its debts as they become due;               (k)   one  or  more  judgments  for  the  payment  of  money  in  an  aggregate  amount  in  excess  of  $20,000,000  (or  the  equivalent  thereof  in  currencies  other  than  Dollars)  shall  be  rendered  against the Company, any Subsidiary or any combination thereof and the same shall remain undischarged  for a period of thirty (30) consecutive days during which execution shall not be effectively stayed, or any                                         91    

 

   action shall be legally taken by a judgment creditor to attach or levy upon any assets of the Company or  any Subsidiary to enforce any such judgment;               (l)   an ERISA Event shall have occurred that, in the opinion of the Required Lenders,  when taken together with all other ERISA Events that have occurred, could reasonably be expected to  result in a Material Adverse Effect;               (m)   a Change in Control shall occur;               (n)   the occurrence of any “Default”, as defined in any Loan Document (other than  this Agreement) or the breach of any of the terms or provisions of any Loan Document (other than this  Agreement), which default or breach continues beyond any period of grace therein provided;               (o)   any material provision of any Loan Document for any reason ceases to be valid,  binding and enforceable in accordance with its terms (or any Loan Party shall challenge the enforceability  of any Loan Document or shall assert in writing, or engage in any action or inaction based on any such  assertion, that any provision of any of the Loan Documents has ceased to be or otherwise is not valid,  binding and enforceable in accordance with its terms); or               (p)   any Collateral Document shall for any reason fail to create a valid and perfected  first priority security interest in any portion of the Collateral purported to be covered thereby, except as  permitted by the terms of any Loan Document.               SECTION 7.02.  Remedies Upon an Event of Default.  If an Event of Default occurs  (other than an event with respect to any Borrower described in Section 7.01(h) or 7.01(i)), and at any time  thereafter  during  the  continuance  of  such  Event  of  Default,  the  Administrative  Agent  may  with  the  consent  of  the  Required  Lenders,  and  shall  at  the  request  of  the  Required  Lenders,  by  notice  to  the  Company, take any or all of the following actions, at the same or different times:               (a)   terminate  the  Commitments,  and  thereupon  the  Commitments  shall  terminate  immediately;               (b)   declare the Loans then outstanding to be due and payable in whole (or in part, in  which case any principal not so declared to be due and payable may thereafter be declared to be due and  payable),  and  thereupon  the  principal  of  the  Loans  so  declared  to  be  due  and  payable,  together  with  accrued interest thereon and all fees and other Secured Obligations of the Borrowers accrued hereunder  and under any other Loan Document, shall become  due and payable immediately, without presentment,  demand, protest or other notice of any kind, all of which are hereby waived by the Borrowers;               (c)   require that the Company provide cash collateral as required in Section 2.06(j);  and               (d)   exercise  on  behalf  of  itself,  the  Lenders  and  the  Issuing  Bank  all  rights  and  remedies available to it, the Lenders and the Issuing Bank under the Loan Documents and applicable law.               If an Event of Default described in Section 7.01(h) or 7.01(i) occurs with respect to any  Borrower, the Commitments shall automatically terminate and the principal of the Loans then outstanding  and  cash  collateral for the  LC  Exposure,  together  with  accrued  interest thereon  and  all fees  and  other  Obligations accrued hereunder and under any other Loan Document, shall automatically become due and  payable, and the obligation of the Company to cash collateralize the LC Exposure as provided in clause                                          92    

 

   (c)  above  shall  automatically  become  effective, in  each  case,  without  presentment,  demand,  protest  or  other notice of any kind, all of which are hereby waived by the Borrowers.               In addition to any other rights and remedies granted to the Administrative Agent and the  Lenders  in  the  Loan  Documents,  the  Administrative  Agent  on  behalf  of  the  Lenders  may  exercise  all  rights and remedies of a secured party under the UCC or any other applicable law.  Without limiting the  generality of the foregoing, the Administrative Agent, without demand of performance or other demand,  presentment, protest, advertisement or notice of any kind (except any notice required by law referred to  below or to the extent expressly provided in this Agreement or any other Loan Document) to or upon any  Loan Party or any other Person (all and each of which demands, defenses, advertisements and notices are  hereby  waived  by  the  Company  on  behalf  of  itself  and  its  Subsidiaries),  may  in  such  circumstances  forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, or consent to  the use by any Loan Party of any cash collateral arising in respect of the Collateral on such terms as the  Administrative Agent deems reasonable, and/or may forthwith sell, lease, assign give an option or options  to  purchase  or  otherwise  dispose  of  and  deliver,  or  acquire  by  credit  bid  on  behalf  of  the  Holders  of  Secured Obligations, the Collateral or any part thereof (or contract to do any of the foregoing), in one or  more  parcels  at  public  or  private  sale  or  sales,  at  any  exchange,  broker’s  board  or  office  of  the  Administrative  Agent  or  any  Lender  or  elsewhere,  upon  such  terms  and  conditions  as  it  may  deem  advisable and at such prices as it may deem best, in its reasonable judgment, for cash or on credit or for  future delivery, all without assumption of any credit risk. The Administrative Agent or any Lender shall  have  the  right upon any such  public  sale  or sales, and, to the  extent permitted by law, upon any such  private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity  of redemption in any Loan Party, which right or equity is hereby waived and released by the Company on  behalf of itself and its Subsidiaries.  The Company further agrees on behalf of itself and its Subsidiaries,  at  the  Administrative  Agent’s  request,  to  assemble  the  Collateral  and  make  it  available  to  the  Administrative Agent at places which the Administrative Agent shall reasonably select, whether at the  premises of the Company, another Loan Party or elsewhere.  The Administrative Agent shall apply the net  proceeds of any action taken by it pursuant to this Article VII, after deducting all reasonable costs and  expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any of  the Collateral or in any other way relating to the Collateral or the rights of the Administrative Agent and  the Lenders hereunder, including reasonable attorneys’ fees and disbursements, to the payment in whole  or in part of the Secured Obligations, in such order as the Administrative Agent may elect, and only after  such application and after the payment by the Administrative Agent of any other amount required by any  provision of law, including Section 9-615(a)(3) of the New York Uniform Commercial Code, need the  Administrative  Agent  account  for  the  surplus,  if  any,  to  any  Loan  Party.   To  the  extent  permitted  by  applicable  law,  the  Company  on  behalf  of  itself  and  its  Subsidiaries  waives  all  claims,  damages  and  demands it may acquire against the Administrative Agent or any Lender arising out of the exercise by  them of any rights hereunder.  If any notice of a proposed sale or other disposition of Collateral shall be  required by law, such notice shall be deemed reasonable and proper if given at least 10 days before such  sale or other disposition.                                      ARTICLE VIII                                                                        The Administrative Agent               SECTION 8.01.  Authorization and Action.               (a)   Each Lender and the Issuing Bank hereby irrevocably appoints the entity named  as Administrative Agent in the heading of this Agreement and its successors and assigns to serve as the  administrative  agent  and  collateral  agent  under  the  Loan  Documents  and  each  Lender  and  the  Issuing  Bank authorizes the Administrative Agent to take such actions as agent on its behalf and to exercise such                                         93    

 

   powers under this Agreement and the other Loan Documents as are delegated to the Administrative Agent  under such agreements and to exercise such powers as are reasonably incidental thereto.  Further, each of  the Lenders and the Issuing Bank, on behalf of itself and any of its Affiliates that are Holders of Secured  Obligations, hereby irrevocably (i) empower and authorize JPMorgan (in its capacity as Administrative  Agent) to execute and deliver the Collateral Documents and all related documents or instruments as shall  be  necessary  or  appropriate  to effect  the  purposes  of  the  Collateral  Documents  and  (ii)  empower  and  authorize JPMorgan (in its capacity as Administrative Agent) to execute and deliver on their behalf the  Intercreditor Agreement and all related documents or instruments as shall be necessary or appropriate to  effect  the  purposes  of  the  Intercreditor  Agreement.   Each  Lender  shall  be  bound  by  the  terms  and  provisions of the Intercreditor Agreement, (and the Intercreditor Agreement is hereby approved by the  Lenders), so executed by the Administrative Agent, and by any further amendments thereto executed by  the Administrative Agent on behalf of the Lenders provided that any such further amendment has been  approved by the Required Lenders.  In addition, to the extent required under the laws of any jurisdiction  other than within the United States, each Lender and the Issuing Bank hereby grants to the Administrative  Agent any required powers of attorney to execute and enforce any Collateral Document governed by the  laws of such jurisdiction on such Lender’s or the Issuing Bank’s behalf.  Without limiting the foregoing,  each Lender and the Issuing Bank hereby authorizes the Administrative Agent to execute and deliver, and  to perform its  obligations under, each of the  Loan Documents  to which  the  Administrative  Agent is  a  party, and to exercise all rights, powers and remedies that the Administrative Agent may have under such  Loan Documents.               (b)   As  to  any  matters  not  expressly  provided  for  herein  and  in  the  other  Loan  Documents  (including  enforcement  or  collection),  the  Administrative  Agent  shall  not  be  required  to  exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall  be fully protected in so acting or refraining from acting) upon the written instructions of the Required  Lenders (or such other number or percentage of the Lenders as shall be necessary, pursuant to the terms in  the Loan Documents), and, unless and until revoked in writing, such instructions shall be binding upon  each Lender and the Issuing Bank; provided, however, that the Administrative Agent shall not be required  to take any action that (i) the Administrative Agent in good faith believes exposes it to liability unless the  Administrative Agent receives an indemnification and is exculpated in a manner satisfactory to it from the  Lenders and the Issuing Bank with respect to such action or (ii) is contrary to this Agreement or any other  Loan Document or applicable law, including any action that may be in violation of the automatic stay  under any requirement of law relating to bankruptcy, insolvency or reorganization or relief of debtors or  that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of  any requirement of law relating to bankruptcy, insolvency or reorganization or relief of debtors; provided,  further, that the Administrative Agent may seek clarification or direction from the Required Lenders prior  to  the  exercise  of  any  such  instructed  action  and  may  refrain  from  acting  until  such  clarification  or  direction  has  been  provided.  Except as expressly  set  forth in  the  Loan  Documents,  the  Administrative  Agent  shall  not  have  any  duty  to  disclose,  and  shall  not  be  liable  for  the  failure  to  disclose,  any  information  relating  to  the  Company,  any  Subsidiary  or  any  Affiliate  of  any  of  the  foregoing  that  is  communicated to or obtained by the Person serving as Administrative Agent or any of its Affiliates in any  capacity.  Nothing  in  this  Agreement  shall  require  the  Administrative  Agent  to  expend  or  risk  its  own  funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the  exercise of any of its rights or powers if it shall have reasonable grounds for believing that repayment of  such funds or adequate indemnity against such risk or liability is not reasonably assured to it.               (c)   In  performing  its  functions  and  duties  hereunder  and  under  the  other  Loan  Documents,  the  Administrative  Agent  is  acting  solely  on  behalf  of  the  Lenders  and  the  Issuing  Bank  (except  in  limited  circumstances  expressly  provided  for  herein  relating  to  the  maintenance  of  the  Register),  and  its  duties  are  entirely  mechanical  and  administrative  in  nature.  Without  limiting  the  generality of the foregoing:                                         94    

 

                     (i)   the  Administrative  Agent does  not assume  and shall  not  be  deemed  to        have assumed any obligation or duty or any other relationship as the agent, fiduciary or trustee of        or for any Lender, the  Issuing Bank or any other Holder of Secured  Obligations  other than as        expressly set forth herein and in the other Loan Documents, regardless of whether a Default or an        Event of Default has occurred and is continuing (and it is understood and agreed that the use of        the term “agent” (or any similar term) herein or in any other Loan Document with reference to the        Administrative Agent is not intended to connote any fiduciary duty or other implied (or express)        obligations arising under agency doctrine of any applicable law, and that such term is used as a        matter of market custom and is intended to create or reflect only an administrative relationship        between  contracting  parties); additionally,  each  Lender agrees  that it  will  not  assert  any  claim        against  the  Administrative  Agent  based  on  an  alleged  breach  of  fiduciary  duty  by  the        Administrative  Agent  in  connection  with this  Agreement  and/or  the  transactions  contemplated        hereby;                     (ii)  where the Administrative Agent is required or deemed to act as a trustee        in respect of any Collateral over which a security interest has been created pursuant to a Loan        Document expressed to be governed by the laws of any jurisdiction other than the United States        of America, or is required or deemed to hold any Collateral “on trust” pursuant to the foregoing,        the obligations and liabilities of the Administrative Agent to the Holders of Secured Obligations        in its capacity as trustee shall be excluded to the fullest extent permitted by applicable law; and                     (iii) nothing  in  this  Agreement  or  any  Loan  Document  shall  require  the        Administrative  Agent  to  account  to any  Lender  for any  sum  or  the  profit element  of  any  sum        received by the Administrative Agent for its own account.               (d)   The Administrative Agent may perform any 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  of  their  respective  duties  and  exercise  their  respective  rights  and  powers  through  their  respective  Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the  Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective  activities  pursuant  to  this  Agreement.  The  Administrative  Agent  shall  not  be  responsible  for  the  negligence  or  misconduct  of  any  sub-agent  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-agent.               (e)   None  of any Co-Syndication Agent, the  Documentation Agent or the  Arranger  shall  have  obligations  or  duties  whatsoever  in  such  capacity  under  this  Agreement  or  any  other  Loan  Document and shall incur no liability hereunder or thereunder in such capacity, but all such persons shall  have the benefit of the indemnities provided for hereunder.               (f)   In case of the pendency of any proceeding with respect to any Loan Party under  any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect,  the  Administrative  Agent  (irrespective  of  whether  the  principal  of  any  Loan  or  any  reimbursement  obligation in respect of 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 any Loan Party) shall be entitled and empowered (but not obligated) by intervention in such  proceeding or otherwise:                     (i)   to  file  and  prove  a  claim  for  the  whole  amount  of  the  principal  and        interest owing and unpaid in respect of the Loans, LC Disbursements and all other Obligations                                         95    

 

         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  Bank  and  the  Administrative  Agent        (including  any  claim  under  Sections  2.12,  2.13,  2.15,  2.17  and  9.03)  allowed  in  such  judicial        proceeding; and                     (ii)  to  collect  and  receive  any  monies  or  other  property  payable  or        deliverable on any such claims and to distribute the same;    and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such  proceeding  is  hereby  authorized  by  each  Lender,  the  Issuing  Bank  and  each  other  Holder  of  Secured  Obligations 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, the Issuing Bank or the other  Holders of Secured Obligations, to pay to the Administrative Agent any amount due to it, in its capacity  as  the  Administrative  Agent,  under  the  Loan  Documents  (including  under  Section  9.03).  Nothing  contained  herein  shall  be  deemed  to  authorize  the  Administrative  Agent  to  authorize  or  consent  to  or  accept or adopt on behalf of any Lender or the Issuing Bank any plan of reorganization, arrangement,  adjustment or composition affecting the Obligations or the rights of any Lender or the Issuing Bank or to  authorize the Administrative Agent to vote in respect of the claim of any Lender or the Issuing Bank in  any such proceeding.                (g)   The provisions of this Article VIII are solely for the benefit of the Administrative  Agent,  the  Lenders  and  the  Issuing  Bank,  and,  except  solely  to the  extent of the  Company’s  rights  to  consent pursuant to and subject to the conditions set forth in this Article VIII, none of the Company or  any  Subsidiary,  or  any  of  their  respective  Affiliates,  shall  have  any  rights  as  a  third  party  beneficiary  under any such provisions. Each Holder of Secured Obligations, whether or not a party hereto, will be  deemed,  by  its  acceptance  of  the  benefits  of  the  Collateral  and  of  the  Guarantees  of  the  Obligations  provided under the Loan Documents, to have agreed to the provisions of this Article VIII.               SECTION 8.02. Administrative Agent’s Reliance, Indemnification, Etc.               (a)   Neither the Administrative Agent nor any of its Related Parties shall be (i) liable  for any action taken or omitted to be taken by such party, the Administrative Agent or any of its Related  Parties under or in connection with this Agreement or the other Loan Documents (x) with the consent of  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  to  be  necessary,  under  the  circumstances as provided in the Loan Documents) or (y) in the absence of its own gross negligence or  willful misconduct (such absence to be presumed unless otherwise determined by a court of competent  jurisdiction  by  a  final  and non-appealable  judgment)  or  (ii)  responsible  in  any  manner  to  any  of  the  Lenders for any recitals, statements, representations or warranties made by any Loan Party or any officer  thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or  other  document  referred  to  or  provided  for  in,  or  received  by  the  Administrative  Agent  under  or  in  connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness,  genuineness,  enforceability  or  sufficiency  of  this  Agreement  or  any  other  Loan  Document  or  for  any  failure of any Loan Party to perform its obligations hereunder or thereunder.               (b)   The Administrative Agent shall be deemed not to have knowledge of any Default  unless  and  until  written  notice  thereof  (stating  that  it  is  a  “notice  of  default”)  is  given  to  the  Administrative Agent by the Company, a Lender or the Issuing Bank, and the Administrative Agent shall  not  be  responsible  for  or  have  any  duty  to  ascertain  or  inquire  into  (i)  any  statement,  warranty  or  representation  made  in  or  in  connection  with  any  Loan  Document,  (ii)  the  contents  of  any  certificate,  report  or  other  document  delivered  thereunder  or  in  connection  therewith,  (iii)  the  performance  or                                         96    

 

   observance  of  any  of  the  covenants, agreements  or  other  terms  or  conditions  set  forth  in  any  Loan  Document or the occurrence of any Default, (iv) the sufficiency, validity, enforceability, effectiveness or  genuineness of any Loan Document or any other agreement, instrument or document, (v) the satisfaction  of any condition set forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt  of  items  (which  on  their  face  purport  to  be  such  items)  expressly  required  to  be  delivered  to  the  Administrative Agent or satisfaction of any condition that expressly refers to the matters described therein  being acceptable or satisfactory to the Administrative Agent or (vi) the creation, perfection or priority of  Liens on the Collateral.               (c)   Without limiting the foregoing, the Administrative Agent (i) may treat the payee  of any promissory note  as its holder until such  promissory note  has  been assigned  in accordance  with  Section 9.04, (ii) may rely on the Register to the extent set forth in Section 9.04(b), (iii) may consult with  legal  counsel  (including  counsel  to  the  Company),  independent  public  accountants  and  other  experts  selected by it, and shall not be liable for any action taken or omitted to be taken in good faith by it in  accordance  with  the  advice  of  such  counsel,  accountants  or  experts,  (iv)  makes  no  warranty  or  representation to any Lender or the Issuing Bank and shall not be responsible to any Lender or the Issuing  Bank  for  any  statements,  warranties  or  representations  made  by  or  on  behalf  of  any  Loan  Party  in  connection with this Agreement or any other Loan Document, (v) in determining compliance with any  condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by its terms must  be  fulfilled  to  the  satisfaction  of  a  Lender  or  the  Issuing  Bank,  may  presume  that  such  condition  is  satisfactory  to  such  Lender  or  the  Issuing  Bank  unless  the  Administrative  Agent  shall  have  received  notice to the contrary from such Lender or the Issuing Bank sufficiently in advance of the making of such  Loan  or  the  issuance of  such  Letter  of  Credit  and  (vi)  shall  be  entitled  to  rely  on,  and  shall  incur  no  liability under or in respect of this Agreement or any other Loan Document by acting upon, any notice,  consent, certificate or other instrument or writing (which writing may be a fax, any electronic message,  Internet  or  intranet  website  posting  or  other  distribution)  or  any  statement  made  to  it  orally  or  by  telephone and believed by it to be genuine and signed or sent or otherwise authenticated by the proper  party  or  parties (whether  or  not  such  Person  in  fact  meets  the  requirements  set  forth  in  the  Loan  Documents for being the maker thereof).               SECTION 8.03. Posting of Communications.               (a)   The  Borrowers  agree  that  the  Administrative  Agent  may,  but  shall  not  be  obligated to, make  any Communications  available to the  Lenders and the  Issuing Bank by posting the  Communications  on  IntraLinksTM,  DebtDomain,  SyndTrak,  ClearPar  or  any  other  electronic  platform  chosen by the Administrative Agent to be its electronic transmission system (the “Approved Electronic  Platform”).               (b)   Although  the  Approved  Electronic  Platform  and  its  primary  web  portal  are  secured  with  generally-applicable  security  procedures  and  policies  implemented  or  modified  by  the  Administrative  Agent  from  time  to  time  (including,  as  of  the  Effective  Date,  a  user  ID/password  authorization system) and the Approved Electronic Platform is secured through a per-deal authorization  method whereby each user may access the Approved Electronic Platform only on a deal-by-deal basis,  each of the Lenders, the Issuing Bank and the Borrowers acknowledges and agrees that the distribution of  material  through  an  electronic  medium  is  not  necessarily  secure,  that  the  Administrative  Agent  is  not  responsible for approving or vetting the representatives or contacts of any Lender that are added to the  Approved Electronic Platform, and that there may be confidentiality and other risks associated with such  distribution. Each of the Lenders, the Issuing Bank and the Borrowers hereby approves distribution of the  Communications through  the  Approved  Electronic  Platform  and  understands  and  assumes  the  risks  of  such distribution.                                         97    

 

               (c)   THE    APPROVED     ELECTRONIC     PLATFORM     AND     THE  COMMUNICATIONS  ARE  PROVIDED  “AS  IS”  AND  “AS  AVAILABLE”.  THE  APPLICABLE  PARTIES (AS DEFINED BELOW) DO NOT WARRANT    THE ACCURACY OR COMPLETENESS  OF  THE  COMMUNICATIONS,  OR  THE  ADEQUACY  OF  THE  APPROVED  ELECTRONIC  PLATFORM  AND  EXPRESSLY  DISCLAIM  LIABILITY  FOR  ERRORS  OR  OMISSIONS  IN  THE  APPROVED  ELECTRONIC  PLATFORM  AND  THE  COMMUNICATIONS.  NO  WARRANTY  OF  ANY  KIND,  EXPRESS,  IMPLIED  OR  STATUTORY,  INCLUDING  ANY  WARRANTY  OF  MERCHANTABILITY,  FITNESS  FOR  A  PARTICULAR  PURPOSE,  NON-INFRINGEMENT  OF  THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE  BY  THE  APPLICABLE  PARTIES  IN  CONNECTION  WITH  THE  COMMUNICATIONS OR  THE  APPROVED ELECTRONIC PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT,  THE ARRANGER, ANY CO-SYNDICATION AGENT, THE DOCUMENTATION AGENT OR ANY  OF  THEIR  RESPECTIVE  RELATED  PARTIES  (COLLECTIVELY,  “APPLICABLE  PARTIES”)  HAVE ANY LIABILITY TO ANY LOAN PARTY, ANY LENDER, THE ISSUING BANK OR ANY  OTHER  PERSON  OR  ENTITY  FOR  DAMAGES  OF  ANY  KIND,  INCLUDING  DIRECT  OR  INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES  (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY LOAN PARTY’S  OR  THE  ADMINISTRATIVE  AGENT’S  TRANSMISSION  OF  COMMUNICATIONS  THROUGH  THE INTERNET OR THE APPROVED ELECTRONIC PLATFORM; EXCEPT TO THE EXTENT OF  DIRECT  AND  ACTUAL  DAMAGES  AS  ARE  DETERMINED  BY  A  COURT  OF  COMPETENT  JURISDICTION BY FINAL AND NONAPPEALABLE    JUDGMENT TO HAVE RESULTED FROM  THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT ON THE PART OF THE APPLICABLE  PARTIES.               (d)   Each Lender and the Issuing Bank agrees that notice to it (as provided in the next  sentence) specifying that Communications have been posted to the Approved Electronic Platform shall  constitute effective delivery of the Communications to such Lender for purposes of the Loan Documents.  Each Lender and the Issuing Bank agrees (i) to notify the Administrative Agent in writing (which could  be in the form of electronic communication) from time to time of such Lender’s or the Issuing Bank’s (as  applicable) email address to which the foregoing notice may be sent by electronic transmission and (ii)  that the foregoing notice may be sent to such email address.               (e)   Each  of  the  Lenders,  the  Issuing  Bank  and  the  Company  agrees  that  the  Administrative Agent may, but (except as may be required by applicable law) shall not be obligated to,  store the Communications on the Approved Electronic Platform in accordance with the Administrative  Agent’s generally applicable document retention procedures and policies.               (f)   Nothing herein shall prejudice the right of the Administrative Agent, any Lender  or the Issuing Bank to give any notice or other communication pursuant to any Loan Document in any  other manner specified in such Loan Document.               SECTION 8.04. The  Administrative  Agent  Individually.   With  respect  to  its  Commitment, Loans and Letters of Credit, the Person serving as the Administrative Agent shall have and  may exercise the same rights and powers hereunder and is subject to the same obligations and liabilities  as and to the extent set forth herein for any other Lender or Issuing Bank, as the case may be. The terms  “Issuing Bank”, “Lenders”, “Required Lenders” and any similar terms shall, unless the context clearly  otherwise indicates, include the Administrative Agent in its individual capacity as a Lender, the Issuing  Bank or as one of the Required Lenders, as applicable. The Person serving as the Administrative Agent  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 banking, trust or other business  with, the Company, any Subsidiary or any Affiliate of any of the foregoing as if such Person was not                                         98    

 

   acting as the Administrative Agent and without any duty to account therefor to the Lenders or the Issuing  Bank.               SECTION 8.05. Successor Administrative Agent.               (a)   The  Administrative  Agent  may  resign  at  any  time  by  giving  30  days’  prior  written  notice  thereof  to  the  Lenders,  the  Issuing  Bank  and  the  Company,  whether  or  not  a  successor  Administrative Agent has been appointed. Upon any such resignation, the Required Lenders shall have  the right (with the consent of the Company, such consent not to be unreasonably withheld, conditioned or  delayed; provided that no such consent shall be required if an Event of Default under Section 7.01(a), (b),  (h), (i) or (j) has occurred and is continuing) to appoint a successor Administrative Agent. If no successor  Administrative  Agent  shall  have  been  so  appointed  by  the  Required  Lenders,  and  shall  have  accepted  such appointment, within 30 days after the retiring Administrative Agent’s giving of notice of resignation,  then the retiring Administrative  Agent may, on behalf of the  Lenders  and the  Issuing Bank, appoint a  successor  Administrative  Agent,  which  shall  be  a  bank  with an  office  in  New  York,  New  York  or  an  Affiliate of any such bank. In either case, such appointment shall be subject to the prior written approval  of the Company (which approval may not be unreasonably withheld and shall not be required while an  Event  of  Default  under  Section  7.01(a),  (b),  (h),  (i)  or  (j)  has  occurred  and  is  continuing).  Upon  the  acceptance  of  any  appointment  as  Administrative  Agent  by  a  successor  Administrative  Agent,  such  successor  Administrative  Agent  shall  succeed  to,  and  become  vested  with,  all  the  rights,  powers,  privileges  and  duties  of  the  retiring  Administrative  Agent.  Upon  the  acceptance  of  appointment  as  Administrative  Agent  by  a  successor  Administrative  Agent,  the  retiring  Administrative  Agent  shall be  discharged from its duties and obligations under this Agreement and the other Loan Documents. Prior to  any  retiring  Administrative  Agent’s  resignation  hereunder  as Administrative  Agent,  the  retiring  Administrative Agent shall take such action as may be reasonably necessary to assign to the successor  Administrative Agent its rights as Administrative Agent under the Loan Documents.               (b)   Notwithstanding  paragraph  (a)  of  this  Section,  in  the  event  no  successor  Administrative Agent shall have been so appointed and shall have accepted such appointment within 30  days after the retiring Administrative Agent gives notice of its intent to resign, the retiring Administrative  Agent may give notice of the effectiveness of its resignation to the Lenders, the  Issuing Bank and the  Company,  whereupon,  on  the  date  of  effectiveness  of  such  resignation  stated  in  such  notice,  (i)  the  retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the  other Loan Documents; provided that, solely for purposes of maintaining any security interest granted to  the  Administrative  Agent  under  any  Collateral  Document  for  the  benefit  of  the  Holders  of  Secured  Obligations, the retiring Administrative Agent shall continue to be vested with such security interest as  collateral agent for the benefit of the Holders of Secured Obligations, and continue to be entitled to the  rights set forth in such Collateral Document and Loan Document, and, in the case of any Collateral in the  possession of the Administrative Agent, shall continue to hold such Collateral, in each case until such  time as a successor Administrative Agent is appointed and accepts such appointment in accordance with  this Section (it being understood and agreed that the retiring Administrative Agent shall have no duty or  obligation  to  take  any  further  action  under  any  Collateral  Document,  including  any  action  required  to  maintain the perfection of any such security interest) and (ii) the Required Lenders shall succeed to and  become  vested  with  all  the  rights,  powers,  privileges  and  duties  of  the  retiring  Administrative  Agent;  provided that (A) all payments required to be made hereunder or under any other Loan Document to the  Administrative Agent for the account of any Person other than the Administrative Agent shall be made  directly  to  such  Person  and  (B)  all  notices  and  other  communications  required  or  contemplated  to  be  given or made to the Administrative Agent shall directly be given or made to each Lender and the Issuing  Bank. Following the effectiveness of the Administrative Agent’s resignation from its capacity as such, the  provisions  of  this Article  VIII and  Section  9.03,  as  well  as  any  exculpatory,  reimbursement  and  indemnification provisions set forth in any other Loan Document, shall continue in effect for the benefit                                         99    

 

   of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any  actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as  Administrative Agent and in respect of the matters referred to in the proviso under clause (i) above.               SECTION 8.06. Acknowledgements of Lenders and Issuing Bank.               (a)   Each  Lender  represents  that  it  is  engaged  in  making,  acquiring  or  holding  commercial loans in the ordinary course of its business and that it has, independently and without reliance  upon the Administrative Agent, the Arranger, any Co-Syndication Agent, the Documentation Agent or  any other Lender, or any of the Related Parties of any of the foregoing, and based on such documents and  information  as  it  has  deemed  appropriate,  made  its  own  credit  analysis  and  decision to  enter  into  this  Agreement as a Lender, and to make, acquire or hold Loans hereunder. Each Lender also acknowledges  that it  will,  independently and  without  reliance  upon  the  Administrative  Agent,  the  Arranger,  any  Co- Syndication Agent, the Documentation Agent or any other Lender, or any of the Related Parties of any of  the foregoing, and based on such documents and information (which may contain material, non-public  information  within  the  meaning  of  the  United  States  securities  laws  concerning  the  Company  and  its  Affiliates) as it shall from time to time deem appropriate, continue to make its own decisions in taking or  not  taking  action  under  or  based  upon  this  Agreement,  any  other  Loan  Document  or  any  related  agreement or any document furnished hereunder or thereunder.               (b)   Each Lender, by delivering its signature page to this Agreement on the Effective  Date,  or delivering its signature  page to an Assignment and Assumption or any other Loan  Document  pursuant to which it shall become a Lender hereunder, shall be deemed to have acknowledged receipt of,  and consented to and approved, each Loan Document and each other document required to be delivered  to, or be approved by or satisfactory to, the Administrative Agent or the Lenders on the Effective Date or  the effective date of any such Assignment and Assumption or any other document pursuant to which it  shall have become a Lender hereunder.               SECTION 8.07. Collateral Matters.               (a)   Except with respect to the exercise of setoff rights in accordance  with Section  9.08 or with respect to a Holder of Secured Obligations’s right to file a proof of claim in an insolvency  proceeding, no Holder of Secured Obligations shall have any right individually to realize upon any of the  Collateral or to enforce any Guarantee of the Obligations, it being understood and agreed that all powers,  rights and remedies under the Loan Documents may be exercised solely by the Administrative Agent on  behalf of the Holders of Secured Obligations in accordance with the terms thereof.  In its capacity, the  Administrative Agent is a “representative” of the Holders of Secured Obligations within the meaning of  the term “secured party” as defined in the UCC.  In the event that any Collateral is hereafter pledged by  any  Person  as  collateral  security  for  the  Secured  Obligations,  the  Administrative Agent  is  hereby  authorized, and hereby granted a power of attorney, to execute and deliver on behalf of the Holders of  Secured Obligations any Loan Documents necessary or appropriate to grant and perfect a Lien on such  Collateral in favor of the Administrative Agent on behalf of the Holders of Secured Obligations.  The  Lenders hereby authorize the Administrative Agent, at its option and in its discretion, to release any Lien  granted to or held by the Administrative Agent upon any Collateral (i) as described in Section 9.02(d);  (ii) as permitted by, but only in accordance with, the terms of the applicable Loan Document; or (iii) if  approved, authorized or ratified in writing by the Required Lenders, unless such release is required to be  approved by all of the Lenders hereunder.  Upon request by the Administrative Agent at any time, the  Lenders will confirm in writing the Administrative Agent’s authority to release particular types or items  of  Collateral  pursuant  hereto.   Upon  any  sale  or  transfer  of  assets  constituting  Collateral  which  is  permitted  pursuant  to  the  terms  of  any  Loan  Document,  or  consented  to  in  writing  by  the  Required  Lenders  or  all  of  the  Lenders,  as  applicable,  and  upon  at  least  five  (5)  Business  Days’  prior  written                                        100    

 

   request by the Company to the Administrative Agent (or such shorter period as the Administrative Agent  shall  agree),  the  Administrative  Agent  shall  (and  is  hereby  irrevocably  authorized  by  the  Lenders  to)  execute  such  documents  as  may  be  necessary  to  evidence  the  release  of  the  Liens  granted  to  the  Administrative  Agent  for  the  benefit  of  the  Holders  of  Secured  Obligations  herein  or  pursuant  hereto  upon  the  Collateral  that  was  sold  or  transferred; provided, however,  that  (i) the  Administrative  Agent  shall  not  be  required  to  execute  any  such  document  on  terms  which,  in  the  Administrative  Agent’s  reasonable opinion, would expose the Administrative Agent to liability or create any obligation or entail  any consequence other than the release of such Liens without recourse or warranty, and (ii) such release  shall  not  in  any  manner  discharge,  affect  or  impair  the  Secured  Obligations  or  any  Liens  upon  (or  obligations of the Loan Parties in respect of) all interests retained by any Loan Party, including (without  limitation) the proceeds of the sale, all of which shall continue to constitute part of the Collateral.               (b)   In furtherance of the foregoing and not in limitation thereof, no Banking Services  Agreement or Swap Agreement will create (or be deemed to create) in favor of any Holder of Secured  Obligations  that  is  a  party  thereto  any  rights  in  connection  with  the  management  or  release  of  any  Collateral or of the obligations of any Loan Party under any Loan Document. By accepting the benefits of  the  Collateral,  each  Holder  of  Secured  Obligations  that  is  a  party  to  any  such  Banking  Services  Agreement  or  Swap  Agreement,  as  applicable,  shall  be  deemed  to  have  appointed  the  Administrative  Agent to serve as administrative agent and collateral agent under the Loan Documents and agreed to be  bound by the Loan Documents as a Holder of Secured Obligations thereunder, subject to the limitations  set forth in this paragraph.               (c)   The  Holders  of  Secured  Obligations  irrevocably  authorize  the  Administrative  Agent, at its option and in its discretion, to subordinate any Lien on any property granted to or held by the  Administrative  Agent  under  any  Loan  Document  to  the  holder  of  any  Lien  on  such  property  that  is  permitted by Section 6.02(e) or (m). 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 or any other Holder of Secured Obligations for any failure to monitor  or maintain any portion of the Collateral.               SECTION 8.08. Credit Bidding.  The Holders of Secured Obligations 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 by 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, including under  Sections  363,  1123  or  1129  of  the  Bankruptcy  Code,  or any  similar laws in  any  other jurisdictions  to  which a Loan Party is subject, or (b) at any other sale, 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 the Holders of Secured Obligations shall be entitled to  be, and shall be, credit bid by the Administrative Agent at the direction of the Required Lenders 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 shall 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) for the asset or assets so purchased (or for the equity interests or debt  instruments of the acquisition vehicle or vehicles that are issued in connection with such purchase). In  connection  with  any  such  bid,  (i)  the  Administrative  Agent  shall  be  authorized  to  form  one  or  more  acquisition vehicles and to assign any successful credit bid to such acquisition vehicle or vehicles, (ii)                                        101    

 

   each of the Holders of Secured Obligations’ ratable interests in the Secured Obligations which were credit  bid shall be deemed without any further action under this Agreement to be assigned to such vehicle or  vehicles for the purpose of closing such sale, (iii) 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, and the  governing documents shall provide for, control by the vote of the Required Lenders or their permitted  assignees  under the terms  of this  Agreement or the governing documents  of the  applicable  acquisition  vehicle or vehicles, as the case  may be,  irrespective of the termination of this Agreement and  without  giving  effect  to  the  limitations  on  actions  by  the  Required  Lenders  contained  in  Section  9.02  of  this  Agreement),  (iv)  the  Administrative  Agent  on  behalf  of  such  acquisition  vehicle  or  vehicles  shall  be  authorized  to  issue  to  each  of  the  Holders  of  Secured  Obligations,  ratably  on  account  of  the  relevant  Secured  Obligations  which  were  credit  bid,  interests,  whether  as  equity,  partnership  interests,  limited  partnership  interests  or  membership  interests,  in  any  such  acquisition  vehicle  and/or  debt  instruments  issued  by  such  acquisition  vehicle,  all  without  the  need  for  any  Holder  of  Secured  Obligations  or  acquisition  vehicle  to  take  any  further  action,  and  (v)  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  Secured  Obligations  credit  bid  by  the  acquisition  vehicle or  otherwise),  such  Secured Obligations shall automatically be reassigned to the Holders of Secured Obligations pro rata with  their original interest in such Secured Obligations and the equity interests and/or debt instruments issued  by  any  acquisition  vehicle  on  account  of  such  Secured  Obligations  shall  automatically  be  cancelled,  without the  need  for any Holder of Secured  Obligations  or any acquisition vehicle  to take  any further  action.  Notwithstanding that the  ratable  portion  of  the  Secured  Obligations of  each  Holder  of  Secured  Obligations are deemed assigned to the acquisition vehicle or vehicles as set forth in clause (ii) above,  each  Holder  of  Secured  Obligations  shall  execute  such  documents  and  provide  such  information  regarding the Holder of Secured Obligations (and/or any designee of the Holder of Secured Obligations  which  will  receive  interests  in  or  debt  instruments  issued  by  such  acquisition  vehicle)  as  the  Administrative Agent may reasonably request in connection with the formation of any acquisition vehicle,  the formulation or submission of any credit bid or the consummation of the transactions contemplated by  such credit bid.               SECTION 8.09. Certain ERISA Matters.               (a)   Each  Lender (x) represents  and  warrants,  as  of the date such Person  became a  Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the  date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and the  Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the  Company or any other Loan Party, that at least one of the following is and will be true:                     (i)   such Lender is not using “plan assets” (within the meaning of the Plan        Asset  Regulations)  of  one  or  more  Benefit  Plans  in connection  with  the  Loans,  the  Letters  of        Credit or the Commitments,                     (ii)  the transaction exemption set forth in one or more PTEs, such as PTE 84-       14 (a class exemption for certain transactions determined by independent qualified professional        asset  managers),  PTE  95-60  (a  class  exemption  for  certain  transactions  involving  insurance        company  general  accounts),  PTE  90-1  (a  class  exemption  for  certain  transactions  involving        insurance  company  pooled  separate  accounts),  PTE  91-38  (a  class  exemption  for  certain        transactions  involving  bank  collective  investment  funds)  or  PTE  96-23  (a  class  exemption  for        certain transactions determined by in-house asset managers), is applicable with respect to such                                        102    

 

         Lender’s  entrance  into,  participation  in,  administration  of  and  performance  of  the  Loans,  the        Letters of Credit, 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 Letters of Credit, the Commitments and this        Agreement,  (C)  the  entrance  into,  participation  in,  administration  of  and  performance  of the        Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of        sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender,        the  requirements  of  subsection  (a)  of  Part  I  of  PTE  84-14 are  satisfied  with  respect  to  such        Lender’s  entrance  into,  participation  in,  administration  of  and  performance  of  the  Loans,  the        Letters of Credit, the Commitments and this Agreement, or                     (iv)  such  other  representation,  warranty  and  covenant  as  may  be  agreed  in        writing between the Administrative Agent, in its sole discretion, and such Lender.               (b)   In addition, unless sub-clause (i) in the immediately preceding clause (a) is true  with respect to a Lender or such Lender has provided another representation, warranty and covenant as  provided in sub-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, 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,  the  Arranger,  the  Co-Syndication  Agents  and  the  Documentation Agent or any of their respective Affiliates, and not, for the avoidance of doubt, to or for  the  benefit  of  the  Company  or  any  other  Loan  Party,  that  none  of  the  Administrative  Agent,  or  the  Arranger, the Co-Syndication Agents, the Documentation Agent or any of their respective Affiliates is a  fiduciary  with  respect  to  the  assets  of  such  Lender  (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).               (a)   The Administrative Agent and the Arranger, the Co-Syndication Agents and the  Documentation Agent hereby informs the Lenders that each such Person is not undertaking to provide  impartial investment advice, or to give advice in a fiduciary capacity, in connection with the transactions  contemplated hereby, and that such Person has a financial interest in the transactions contemplated hereby  in that such Person or an Affiliate thereof (i) may receive interest or other payments with respect to the  Loans, the Letters of Credit, the Commitments, this Agreement and any other Loan Documents, (ii) may  recognize a gain if it extended the Loans, the Letters of Credit or the Commitments for an amount less  than the amount being paid for an interest in the Loans, the Letters of Credit or the Commitments by such  Lender  or  (iii)  may receive  fees  or  other  payments  in  connection  with  the  transactions  contemplated  hereby, the Loan Documents or otherwise, including structuring fees, commitment fees, arrangement fees,  facility fees, commitment fees, upfront fees, underwriting fees, ticking fees, agency fees, administrative  agent fees or collateral agent fees, utilization fees, minimum usage fees, letter of credit fees, fronting fees,  deal-away or alternate transaction fees, amendment fees, processing fees, term out premiums, banker’s  acceptance fees, breakage or other early termination fees or fees similar to the foregoing.               SECTION 8.10.  Certain Foreign Pledge Matters.               (a)   The  Administrative  Agent  is  hereby  authorized  to  execute  and  deliver  any  documents  necessary  or appropriate  to  create  and  perfect  the  rights  of  pledge  for  the  benefit  of  the  Holders  of Secured  Obligations  including a  right of pledge  with respect to the Equity  Interests in any  Subsidiary which is organized under the laws of the Netherlands.  Without prejudice to the provisions of                                        103    

 

   this  Agreement  and  the  other  Loan  Documents,  the  parties  hereto  acknowledge  and  agree  with  the  creation of parallel debt obligations of the Company or any relevant Subsidiary as will be described in  any  Dutch  Security  Agreement  (a  “Parallel  Debt”),  including  that  any  payment  received  by  the  Administrative  Agent  in  respect  of  a  Parallel  Debt  will - conditionally  upon  such  payment  not  subsequently being avoided or reduced by virtue of any provisions or enactments relating to bankruptcy,  insolvency, preference, liquidation or similar laws of general application - be deemed a satisfaction of a  pro rata  portion  of  the  corresponding  amounts  of  the  Secured  Obligations,  and  any  payment  to  the  Holders of Secured Obligations in satisfaction of the Secured Obligations shall - conditionally upon such  payment not subsequently being avoided or reduced by virtue of any provisions or enactments relating to  bankruptcy,  insolvency,  preference,  liquidation  or  similar  laws  of  general  application - be  deemed  as  satisfaction  of  a  pro  rata  portion  of  the  corresponding  amount  of  a  Parallel  Debt.   The  parties  hereto  acknowledge  and  agree  that,  for  purposes  of  the  Dutch  Security  Agreements,  any  resignation  by  the  Administrative Agent is not effective with respect to its rights and obligations under a Parallel Debt until  such rights and obligations have been assumed by the successor Administrative Agent.                                    ARTICLE IX                                                                            Miscellaneous               SECTION 9.01.  Notices.  (a) Except in the case of notices and other communications  expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and other  communications  provided  for  herein  shall  be  in  writing  and  shall  be  delivered  by  hand  or  overnight  courier service, mailed by certified or registered mail or sent by telecopy, as follows:               (i)   if  to  any  Borrower,  to  it  c/o Materion  Corporation,  6070  Parkland  Boulevard,        Mayfield  Heights,  Ohio  44124,  Attention  of  Christopher  Eberhardt  (Telecopy  No.  (216)  383-       4918; Telephone No. (216) 383-6840);               (ii)  if  to  the  Administrative  Agent,  to  (A) in  the  case  of  Borrowings,  JPMorgan        Chase  Bank,  N.A.,  JPMorgan  Loan  Services,  10  South  Dearborn  Street,  L2  Floor,  Chicago,        Illinois  60603,  Attention:   Daniel  Arriola  (Facsimile  No. (844) 490-5663),  with  a copy  to        JPMorgan  Chase  Bank,  N.A.,  1300  East  Ninth  Street,  13th  Floor,  Cleveland,  Ohio  44114,        Attention:   Steven  Bagnowski  (Facsimile  No. (216)  781-2110)  and  (B) in  the  case  of  a        notification of the DQ List, to JPMDQ_Contact@jpmorgan.com;               (iii) if  to  the  Issuing Bank,  to  it  at  JPMorgan  Chase  Bank,  N.A.,  JPMorgan  Loan        Services, 10 South Dearborn Street, L2 Floor, Chicago, Illinois 60603, Attention:  Chicago LC        Agency Activity Team (Facsimile No. (214) 307-6874);               (iv)  if to the Swingline Lender, to it at JPMorgan Chase Bank, N.A., JPMorgan Loan        Services, 10 South Dearborn Street, L2 Floor, Chicago, Illinois 60603, Attention:  Daniel Arriola        (Facsimile No. (844) 490-5663); and               (v)   if to any other Lender, to it at its address  (or telecopy number) set forth in its        Administrative Questionnaire.   Notices  sent  by  hand  or  overnight  courier  service,  or  mailed  by  certified  or  registered  mail,  shall  be  deemed to have been given when received; notices sent by 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 delivered                                        104    

 

   through Approved Electronic Platforms, to the extent provided in paragraph (b) below, shall be effective  as provided in said paragraph (b).               (b)   Notices  and  other  communications  to  the  Lenders  and  the  Issuing  Bank  hereunder may be delivered or furnished by using Approved Electronic Platforms pursuant to procedures  approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to  Article II unless  otherwise  agreed  by  the  Administrative  Agent  and  the  applicable  Lender.   The  Administrative  Agent  or  the  Company  may,  in  its  discretion,  agree  to  accept  notices  and  other  communications  to  it  hereunder  by  electronic  communications  pursuant  to  procedures  approved  by  it;  provided that approval of such procedures may be limited to particular notices or communications.               (c)   Unless  the  Administrative  Agent  otherwise  prescribes,  (i) notices  and  other  communications  sent  to  an  e-mail  address  shall  be  deemed  received  upon  the  sender’s  receipt  of  an  acknowledgement  from  the  intended  recipient  (such  as  by  the  “return  receipt  requested”  function,  as  available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to  an  Internet  or  intranet  website  shall  be  deemed  received  upon  the  deemed  receipt  by  the  intended  recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or  communication is available and identifying the website address therefor; provided that, for both clauses  (i) and (ii) above, if such notice, email or other communication is not sent during the normal business  hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of  business on the next business day for the recipient.               (d)   Any  party  hereto  may  change  its  address  or  telecopy  number  for  notices  and  other communications hereunder by notice to the other parties hereto.               SECTION 9.02.  Waivers;  Amendments.  (a) No  failure  or  delay  by  the  Administrative  Agent,  the  Issuing  Bank  or  any  Lender  in  exercising  any  right  or  power  hereunder  or  under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise  of any such right or power, or any abandonment or discontinuance of steps  to enforce such a  right or  power, preclude any other or further exercise thereof or the exercise of any other right or power.  The  rights and remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder and under  the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would  otherwise have.  No waiver of any provision of any Loan Document or consent to any departure by any  Loan Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b)  of this Section, and then such waiver or consent shall be effective only in the specific instance and for the  purpose  for  which  given.   Without  limiting  the  generality  of  the  foregoing,  the  making  of  a  Loan  or  issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the  Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default  at the time.               (b)   Except  as  provided  in  Section 2.20  with  respect  to  an  Incremental  Term  Loan  Amendment, Section 2.25 with respect to an extension of the Maturity Date or as provided in Section  2.14(c), neither this Agreement nor any provision hereof may be waived, amended or modified except  pursuant  to  an  agreement  or  agreements  in  writing  entered  into  by  the  Borrowers  and  the  Required  Lenders  or by the  Borrowers and the Administrative Agent with the consent of the  Required Lenders;  provided that no such agreement shall (i) increase  the Commitment of any Lender without the written  consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or reduce the  rate of interest thereon, or reduce any fees payable hereunder, without the written consent of each Lender  directly affected thereby (except that (x) any amendment or modification of the financial covenants in this  Agreement  (or  defined  terms  used  in  the financial  covenants  in  this  Agreement)  shall  not  constitute  a  reduction in the  rate of interest or fees for purposes of this clause (ii) and (y) only the consent of the                                        105    

 

   Required Lenders shall be necessary to reduce or waive any obligation of any Borrower to pay interest or  any other amount at the applicable default rate set forth in Section 2.13(c) or to amend Section 2.13(c)),  (iii) postpone the scheduled date of payment of the principal amount of any Loan or LC Disbursement, or  any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such  payment, or postpone the scheduled date of expiration of any Commitment, without the written consent of  each Lender directly affected thereby, (iv) change Section 2.09(c) or 2.18(b) or (d) in a manner that would  alter the ratable reduction of Commitments or the pro rata sharing of payments required thereby, without  the written consent of each Lender (other than any Defaulting Lender), (v) change the payment waterfall  provisions  of  Section  2.24(b)  without  the  written  consent  of  each  Lender,  (vi)  change  any  of  the  provisions  of  this  Section  or  the  definition  of  “Required  Lenders”  or  any  other  provision  hereof  specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder  or make any determination or grant any consent hereunder, without the written consent of each Lender  (other  than  any  Defaulting  Lender)  (it  being  understood  that,  solely  with  the  consent  of  the  parties  prescribed  by  Section 2.20  to  be  parties  to  an  Incremental  Term  Loan  Amendment,  Incremental Term  Loans may be included in the determination of Required Lenders on substantially the same basis as the  Commitments and the Revolving Loans are included on the Effective Date), (vii) release the Company or  all  or  substantially  all  of  the  Subsidiary  Guarantors  from  their  obligations  under Article X or  the  Subsidiary Guaranty, in each case, without the written consent of each Lender (other than any Defaulting  Lender), or (viii) except as provided in clause (d) of this Section or in any Collateral Document, release  all  or  substantially  all  of  the  Collateral,  without  the  written  consent  of  each  Lender  (other  than  any  Defaulting Lender); provided further that no such agreement shall amend, modify or otherwise affect the  rights or duties of the Administrative Agent, the Issuing Bank or the Swingline Lender hereunder without  the prior written consent of the Administrative Agent, the Issuing Bank or the Swingline Lender, as the  case  may  be (it  being  understood  that  any  change  to  Section  2.24  shall  require  the  consent  of  the  Administrative  Agent, the Issuing  Bank  and  the  Swingline  Lender); and provided further that  no  such  agreement shall amend or modify the provisions of Section 2.06 without the prior written consent of the  Administrative Agent and the Issuing Bank.  Notwithstanding the foregoing, no consent with respect to  any  amendment,  waiver  or  other  modification  of  this  Agreement  shall  be  required  of  any  Defaulting  Lender, except with respect to any amendment, waiver or other modification referred to in clause (i), (ii)  or (iii) of the first proviso of this paragraph and then only in the event such Defaulting Lender shall be  directly affected by such amendment, waiver or other modification.               (c)   Notwithstanding the foregoing, (i) this Agreement and any other Loan Document  may  be  amended  (or  amended  and  restated)  with  the  written  consent  of  the  Required  Lenders,  the  Administrative Agent and each Loan Party party to each relevant Loan Document (x) to add one or more  credit  facilities  (in  addition  to  the  Incremental  Term  Loans  pursuant  to  an  Incremental  Term  Loan  Amendment)  to  this  Agreement  and  to  permit  extensions  of  credit  from  time  to  time  outstanding  thereunder  and  the  accrued  interest  and  fees  in  respect  thereof  to  share  ratably  in  the  benefits  of  this  Agreement and the other Loan Documents with the Revolving Loans, Incremental Term Loans and the  accrued  interest  and  fees  in  respect  thereof  and  (y) to  include  appropriately  the  Lenders  holding  such  credit facilities in any determination of the Required Lenders and Lenders, and (ii) in connection with (x)  new or increases to the Commitments and/or Incremental Term Loans pursuant to Section 2.20 or (y) any  extension pursuant to Section 2.25, this Agreement and any other Loan Document may be amended (or  amended and restated) with the written consent of the parties prescribed by such Sections and shall not  require the consent of the Required Lenders.               (d)   The Lenders hereby irrevocably authorize the Administrative Agent, at its option  and in its sole discretion, to release any Liens granted to the Administrative Agent by the Loan Parties on  any Collateral (i) upon the termination of all the Commitments, payment and satisfaction in full in cash of  all  Secured  Obligations  (other  than  Swap  Obligations  not  yet  due  and  payable,  Banking  Services  Obligations not yet due and payable, Unliquidated Obligations for which no claim has been made and                                        106    

 

   other  Obligations  expressly  stated  to  survive  such  payment  and  termination),  and  the  cash  collateralization  (or  receipt  of  a  backstop  letter  of  credit)  of  all  Unliquidated  Obligations  in  a  manner  (and, in the case of a backstop letter of credit, by an issuer) reasonably satisfactory to the Administrative  Agent, (ii) constituting property being sold or disposed of if the Company certifies to the Administrative  Agent  that  the  sale  or  disposition  is  made  in  compliance  with  the  terms  of  this  Agreement  (and  the  Administrative Agent may rely conclusively on any such certificate, without further inquiry), and to the  extent that the property being sold or disposed of constitutes 100% of the Equity Interest of a Subsidiary,  the  Administrative  Agent  is  authorized  to  release  such  Subsidiary  from  its  obligations  hereunder  and  under  the  other  Loan  Documents,  (iii)  constituting  property  leased  to  the  Company  or  any  Subsidiary  under  a  lease  which  has  expired  or  been  terminated  in  a  transaction  permitted  under  this  Agreement,  (iv) as required to effect any sale or other disposition of such Collateral in connection with any exercise of  remedies of the Administrative Agent and the Lenders pursuant to Article VII, or (v) in the event that  such Collateral (A) constitutes property of a Subsidiary in the event that such Subsidiary ceases to be a  Loan Party, (B) constitutes Excluded Assets or (C) constitutes the Equity Interest of a Subsidiary that is  not a Loan Party or a Pledge Subsidiary.  Any such release shall not in any manner discharge, affect, or  impair  the  Secured  Obligations  or  any  Liens  (other  than  those  expressly  being  released)  upon  (or  obligations  of  the  Loan  Parties  in  respect  of)  all  interests  retained  by  the  Loan  Parties,  including  the  proceeds of any sale, all of which shall continue to constitute part of the Collateral.  In addition, each of  the Lenders,  on  behalf  of  itself  and  any  of  its  Affiliates  that  are  Holders  of  Secured  Obligations,  irrevocably authorizes the Administrative Agent, at its option and in its discretion, (i) to subordinate any  Lien  on  any  assets  granted  to  or  held  by  the  Administrative  Agent  under  any  Loan  Document  to  the  holder of any Lien on such property that is permitted by Section 6.02(e) or (m) or (ii) in the event that the  Company shall have advised the Administrative Agent that, notwithstanding the use by the Company of  commercially reasonable efforts to obtain the consent of such holder (but without the requirement to pay  any sums to obtain such consent) to permit the Administrative Agent to retain its liens (on a subordinated  basis as contemplated by clause (i) above), the holder of such other Indebtedness requires, as a condition  to the  extension of such credit, that the  Liens on such  assets  granted  to or held by the  Administrative  Agent under any Loan Document be released, to release the Administrative Agent’s Liens on such assets.               (e)   If, in connection with any proposed amendment, waiver or consent  requiring the  consent of “each Lender” or “each Lender directly affected thereby,” the consent of the Required Lenders  is obtained, but the consent of other necessary Lenders is not obtained (any such Lender whose consent is  necessary but not obtained being referred to herein as a “Non-Consenting Lender”), then the Company  may  elect  to  replace  a  Non-Consenting  Lender  as  a  Lender  party  to  this  Agreement,  provided  that,  concurrently with such replacement, (i) another bank or other entity which is reasonably satisfactory to  the Company and the Administrative Agent shall agree, as of such date, to purchase for cash the Loans  and other Obligations due to the Non-Consenting Lender pursuant to an Assignment and Assumption and  to  become  a  Lender  for  all  purposes  under  this  Agreement  and  to  assume  all  obligations  of  the  Non- Consenting Lender to be terminated as of such date and to comply with the requirements of clause (b) of  Section 9.04, (ii) each Borrower shall pay to such Non-Consenting Lender in same day funds on the day  of  such  replacement  (1)  all  interest,  fees  and  other  amounts  then  accrued  but  unpaid  to  such  Non- Consenting  Lender  by  such  Borrower  hereunder  to  and  including  the  date of  termination,  including  without limitation payments due to such Non-Consenting Lender under Sections 2.15 and 2.17, and (2) an  amount,  if any,  equal  to the  payment  which  would have  been  due  to  such  Lender  on  the  day  of  such  replacement under Section 2.16 had the Loans of such Non-Consenting Lender been prepaid on such date  rather than sold to the replacement Lender and (iii) such Non-Consenting Lender shall have received the  outstanding  principal amount of  its  Loans  and  participations  in  LC  Disbursements.   Each  party  hereto  agrees  that  (i)  an  assignment  required  pursuant  to  this  paragraph  may  be  effected  pursuant  to  an  Assignment and Assumption executed by the Company, the Administrative Agent and the assignee (or, to  the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant  to  an  Approved  Electronic  Platform  as  to  which  the  Administrative  Agent  and  such  parties  are                                        107    

 

   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 and be  bound by the terms  thereof; provided that,  following  the  effectiveness  of  any  such  assignment,  the  other  parties  to  such  assignment  agree  to  execute  and  deliver  such documents  necessary  to  evidence  such  assignment  as  reasonably  requested  by  the  applicable  Lender,  provided  that  any  such  documents  shall  be  without  recourse to or warranty by the parties thereto.               (f)   Notwithstanding anything to the contrary herein the Administrative Agent may,  with the consent of the Borrowers only, amend, modify or supplement this Agreement or any of the other  Loan Documents to cure any ambiguity, omission, mistake, defect or inconsistency.               SECTION 9.03.  Expenses; Indemnity; Damage Waiver.  (a) The Company shall pay  (i) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent and its  Affiliates  (which  shall  be  limited,  in  the  case  of  legal  fees  and  expenses,  to  the  reasonable  and  documented fees, disbursements and other charges of one primary counsel and one local counsel in each  relevant jurisdiction) in connection with the syndication and distribution (including, without limitation,  via  the  internet or through a  service such  as Intralinks) of the  credit facilities provided  for herein, the  preparation  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 the Issuing Bank in connection with the issuance, amendment or extension of any Letter of  Credit  or  any  demand  for  payment  thereunder  and  (iii) all  reasonable  and  documented  out-of-pocket  expenses incurred by the Administrative Agent, the Issuing Bank or any Lender (which shall be limited,  in the case of legal fees and expenses, to the reasonable and documented fees, disbursements and other  charges  of  (x)  one  primary  counsel  to  the  Administrative  Agent  (and  one  local  counsel  to  the  Administrative Agent in each relevant jurisdiction), (y) one counsel to all of the other Lenders taken as a  whole (and one local counsel to all of the other Lenders taken as a whole in each relevant jurisdiction)  and (z) solely in the event of an actual or reasonably perceived conflict of interest, one additional counsel  (and one local counsel in each relevant jurisdiction) for each group of similarly affected Lenders taken as  a whole) in connection with the enforcement or protection of its rights in connection with this Agreement  and any other Loan Document, including its rights under this Section, or in connection with the Loans  made  or  Letters  of  Credit  issued  hereunder,  including  all  such  out-of-pocket  expenses  (subject  to  the  foregoing limitations with respect to legal fees and expenses) incurred during  any workout, restructuring  or negotiations in respect of such Loans or Letters of Credit.               (b)   The  Company  shall indemnify  the  Administrative  Agent,  the  Arranger,  the  Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons (each such Person  being  called  an  “Indemnitee”)  against,  and  hold  each  Indemnitee  harmless  from,  any  and  all  losses,  claims,  damages,  liabilities  and  related  expenses,  including  the  reasonable  fees,  charges  and  disbursements of any counsel for any Indemnitee (which shall be limited, in the case of legal fees and  expenses,  to  the  reasonable  and  documented  fees,  disbursements  and  other  charges  of  one  primary  counsel, and one local counsel in each applicable jurisdiction, for the Administrative Agent, and not more  than  one  outside  counsel,  and  one  local  counsel  in  each  applicable  jurisdiction,  for  all  of  the  other  Indemnitees and, solely in the case of an actual or reasonably perceived conflict of interest, one additional  counsel for each affected Indemnitee), incurred by or asserted against any Indemnitee arising out of, in  connection with, or as a result of (i) the execution or delivery of any Loan Document or any agreement or  instrument  contemplated  thereby,  the  performance  by  the  parties  hereto  of  their  respective  obligations  thereunder  or  the  consummation  of  the  Transactions  or  any  other  transactions  contemplated  hereby,  (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by the Issuing  Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection  with  such  demand  do  not  strictly  comply  with  the  terms  of  such  Letter  of  Credit),  (iii) any  actual  or                                        108    

 

   alleged presence or release of Hazardous Materials on or from any property owned or operated by the  Company or any of its Subsidiaries, or any Environmental Liability related in any way to the Company or  any  of  its  Subsidiaries,  or  (iv) any  actual  or  prospective  claim,  litigation,  investigation,  arbitration  or  proceeding relating to any of the foregoing, whether or not such claim, litigation, investigation, arbitration  or proceeding is brought by the Company or any other Loan Party or its or their respective equity holders,  Affiliates, creditors or any other third Person and whether based on contract, tort or any other theory and  regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any  Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are  determined  by a  court of competent jurisdiction by final and nonappealable judgment to have  resulted  from (x) the gross negligence or willful misconduct of such Indemnitee (or any of its Controlled Related  Parties (as defined below)), (y) the material breach by such Indemnitee of its express obligations under  this  Agreement  pursuant  to  a  claim  initiated  by  the  Company  or  (z)  any  disputes  solely  among  Indemnitees and not arising out of any act or omission of the Company or any of its Affiliates (other than  (A) any proceeding against any Indemnitee solely in its capacity or in fulfilling its role as Administrative  Agent, Arranger, Co-Syndication Agent or Documentation Agent or any other similar role with respect to  the  credit facility evidenced by this  Agreement or (B) arising as a  result of an act or omission by the  Company or any of its Affiliates).  As used in this Section 9.03(b), a “Controlled Related Party” of an  Indemnitee  means  (1)  any  Controlling  Person  or  Controlled  Affiliate  of  such  Indemnitee,  (2)  the  respective  directors,  officers,  or  employees  of  such  Indemnitee  or  any  of  its  Controlling  Persons  or  Controlled  Affiliates  and  (3)  the  respective  agents  or  representatives  of  such  Indemnitee  or  any  of  its  Controlling Persons or Controlled Affiliates, in the case of this clause (3), acting on behalf of or at the  instructions  of  such  Indemnitee,  Controlling  Person  or  such  Controlled  Affiliate; provided that  each  reference  to  a  Controlled  Affiliate,  Controlling  Person,  director,  officer  or  employee  in  this  sentence  pertains  to  a  Controlled  Affiliate,  Controlling  Person,  director,  officer  or  employee  involved  in  the  structuring, arrangement, negotiation or syndication of the credit facility evidenced by this Agreement.   Each of the Administrative Agent and the Lenders hereby agrees, on behalf of itself and its Controlled  Related Party, that any settlement entered into by the Administrative Agent or such Lender, respectively,  and its Controlled Related Party in connection with a claim or proceeding for which an indemnity claim is  made against the Company pursuant to the preceding sentence shall be so entered into in good faith and  not on an arbitrary or capricious basis.  This Section 9.03(b) shall not apply with respect to Taxes other  than any Taxes that represent losses, claims or damages arising from any non-Tax claim.               (c)   To the extent that the Company fails to pay any amount required to be paid by it  to the Administrative Agent, the Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this  Section,  each  Lender  severally  agrees  to  pay  to  the  Administrative  Agent,  the  Issuing  Bank  or  the  Swingline Lender, as the case may be, such Lender’s Applicable Percentage (determined as of the time  that  the  applicable  unreimbursed  expense  or  indemnity  payment  is  sought)  of  such  unpaid  amount  (it  being understood that the Company’s failure to pay any such amount shall not relieve the Company of  any default in the payment thereof); provided that the unreimbursed expense or indemnified loss, claim,  damage,  liability  or  related  expense,  as  the  case  may  be,  was  incurred  by  or  asserted  against  the  Administrative Agent, the Issuing Bank or the Swingline Lender in its capacity as such.               (d)   To  the  extent  permitted  by  applicable  law,  no  Borrower  shall  assert,  and  each  Borrower hereby waives, any claim against any Indemnitee (i) for any damages arising from the use by  others  of  information or  other  materials  obtained  directly  or  indirectly  from  an  Indemnitee  through  telecommunications,  electronic  or  other  information  transmission  systems  (including  the  Internet),  or  (ii) 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 or thereby, the Transactions, any  Loan or Letter of Credit or the use of the proceeds thereof.                                        109    

 

               (e)   All  amounts  due  under  this  Section  shall  be  payable  not  later  than  fifteen  (15) days after written demand therefor.               SECTION 9.04.  Successors and Assigns.  (a) The provisions of this Agreement shall  be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns  permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), except that  (i) no Borrower may assign or otherwise transfer any of its rights or obligations hereunder without the  prior written consent of each Lender (and any attempted assignment or transfer by any Borrower without  such  consent  shall  be  null  and  void)  and  (ii) no  Lender  may  assign  or  otherwise  transfer  its  rights  or  obligations hereunder except in accordance with this Section.  Nothing in this Agreement, expressed or  implied,  shall  be  construed  to  confer  upon  any  Person  (other  than  the  parties  hereto,  their  respective  successors  and  assigns  permitted  hereby  (including  any  Affiliate  of  the  Issuing  Bank  that  issues  any  Letter of Credit), Participants (to the extent provided in paragraph (c) of this Section) and, to the extent  expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing Bank  and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.               (b)   (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may  assign to  one  or  more  Persons  (other  than  an  Ineligible  Institution)  all  or  a  portion  of  its  rights  and  obligations under this Agreement (including all or a portion of its Commitment, participations in Letters  of Credit and the Loans at the time owing to it) with the prior written consent (such consent not to be  unreasonably withheld, conditioned or delayed) of:                     (A)   the  Company  (provided that  the  Company  shall  be  deemed  to  have              consented to any such assignment unless it shall object thereto by written notice to the              Administrative  Agent  within  ten  (10) Business  Days  after  having  received  notice              thereof); provided further that  no  consent  of  the  Company  shall  be  required  for  an              assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of              Default under Section 7.01(a), (b), (h), (i) or (j) has occurred and is continuing, any other              assignee (but, in each case, the assignor or assignee shall send notice of such assignment              to the Company);                      (B)   the Administrative Agent;                     (C)   the Issuing Bank; and                     (D)   the Swingline Lender.               (ii)  Assignments shall be subject to the following additional conditions:                     (A)   except  in  the  case  of  an  assignment  to  a  Lender  or  an  Affiliate  of  a              Lender  or  an  Approved  Fund  or  an  assignment  of  the  entire  remaining  amount  of  the              assigning Lender’s Commitment or Loans of any Class, the amount of the Commitment              or Loans of the assigning Lender subject to each such assignment (determined as of the              date the Assignment and Assumption with respect to such assignment is delivered to the              Administrative Agent) shall not be less than $5,000,000 unless each of the Company and              the  Administrative  Agent  otherwise  consent; provided that  no  such  consent  of  the              Company shall be required if an Event of Default under Section 7.01(a), (b), (h), (i) or (j)              has occurred and is continuing;                     (B)   each  partial  assignment  shall  be  made  as  an  assignment  of  a              proportionate  part  of  all  the  assigning  Lender’s  rights  and  obligations  under  this                                        110    

 

               Agreement; provided that this clause shall not be construed to prohibit the assignment of              a proportionate part of all the assigning Lender’s rights and obligations in respect of one              Class of Commitments or Loans;                     (C)   the  parties  to  each  assignment  shall  execute  and  deliver  to  the              Administrative Agent (x) an Assignment and Assumption or (y) to the extent applicable,              an agreement incorporating an Assignment and Assumption by reference pursuant to an              Approved Electronic Platform as to which the Administrative Agent and the parties to the              Assignment and Assumption are participants, together with a processing and recordation              fee of $3,500, such fee to be paid by either the assigning Lender or the assignee Lender              or shared between such Lenders;                      (D)   the  assignee,  if  it  shall  not  be  a  Lender,  shall  deliver  to  the              Administrative Agent an Administrative Questionnaire in which the assignee designates              one or more credit contacts to whom all syndicate-level information (which may contain              material non-public information about the Company and its affiliates and their Related              Parties or their respective securities) will be made available and who may receive such              information  in  accordance  with  the  assignee’s  compliance  procedures  and  applicable              laws, including Federal and state securities laws; and                     (E)   other than assignments to an existing Lender, any assignment or transfer              to or assumption by  any Person of all or a portion of a Lender's rights and obligations              under  this  Agreement  (including  all  or  a  portion  of  its  Commitments  or  Loans)  with              respect to a Borrower organized under the laws of the Netherlands shall only be permitted              if such Person is a Dutch Non-Public Lender.               For  the  purposes  of  this  Section 9.04(b),  the  terms  “Approved  Fund”  and  “Ineligible  Institution” have the following meanings:               “Approved  Fund”  means  any  Person  (other  than  a  natural  person)  that  is  engaged  in  making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary  course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or  (c) an entity or an Affiliate of an entity that administers or manages a Lender.               “Ineligible Institution” means (a) a natural person, (b) a Defaulting Lender or its Lender  Parent, (c) the Company, any of its Subsidiaries or any of its Affiliates, (d) a company, investment vehicle  or trust for, or owned and operated for the primary benefit of, a natural person or relative(s) thereof, or (e)  a Disqualified Institution.               (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this  Section,  from  and  after  the  effective  date  specified  in  each Assignment  and  Assumption  the  assignee  thereunder  shall  be  a  party  hereto  and,  to  the  extent  of  the  interest  assigned  by  such  Assignment  and  Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender  thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released  from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering  all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a  party hereto but shall continue to be entitled to the benefits of Sections 2.15, 2.16, 2.17 and 9.03).  Any  assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply  with  this  Section 9.04  shall  be  treated  for  purposes  of  this  Agreement  as  a  sale  by  such  Lender  of  a  participation in such rights and obligations in accordance with paragraph (c) of this Section.                                        111    

 

               (iv)  The  Administrative  Agent,  acting  for  this  purpose  as  a  non-fiduciary  agent  of  each Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered  to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of,  and  principal  amount (and  stated  interest) of the  Loans  and  LC  Disbursements  owing  to,  each  Lender  pursuant  to  the  terms  hereof  from  time  to  time  (the  “Register”).   The  entries  in  the  Register  shall  be  conclusive absent manifest error, and the Borrowers, the Administrative Agent, the Issuing Bank and the  Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a  Lender  hereunder  for  all  purposes  of  this  Agreement,  notwithstanding  notice  to  the  contrary.   The  Register  shall  be  available  for  inspection  by  the  Company,  the  Issuing  Bank  and  any  Lender,  at  any  reasonable time and from time to time upon reasonable prior notice.               (v)   Upon its receipt of (x) a duly completed Assignment and Assumption executed  by an assigning Lender and an assignee or (y) to the extent applicable, an agreement incorporating an  Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the  Administrative Agent and the parties to the Assignment and Assumption are participants, the assignee’s  completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the  processing and recordation fee referred to in paragraph (b) of this Section and any written consent to such  assignment  required  by  paragraph (b)  of  this Section,  the  Administrative  Agent  shall  accept  such  Assignment and Assumption and record the information contained therein in the Register; provided that if  either the assigning Lender or the assignee shall have failed to make any payment required to be made by  it pursuant to Section 2.05(c), 2.06(d) or (e), 2.07(b), 2.18(e) or 9.03(c), the Administrative Agent shall  have no obligation to accept such Assignment and Assumption and record the information therein in the  Register unless and until such payment shall have been made in full, together with all accrued interest  thereon.  No assignment shall be effective for purposes of this Agreement unless it has been recorded in  the Register as provided in this paragraph.               (c)   (i) Any  Lender  may,  without  the  consent  of  the  Company,  the  Administrative  Agent,  the  Issuing  Bank  or  the  Swingline  Lender,  sell  participations  to  one  or  more  banks  or  other  entities, other than an Ineligible Institution (each such bank or entity, a “Participant”), in all or a portion  of  such  Lender’s  rights  and/or  obligations  under  this  Agreement  (including  all  or  a  portion  of  its  Commitment  and/or  the  Loans  owing  to  it); provided that  (A) such  Lender’s  obligations  under  this  Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties  hereto  for  the  performance  of  such  obligations  and  (C) the  Borrowers,  the  Administrative  Agent,  the  Issuing  Bank  and  the  other  Lenders  shall  continue  to  deal  solely  and  directly  with  such Lender  in  connection  with  such  Lender’s  rights  and  obligations  under  this  Agreement.   Any  agreement  or  instrument  pursuant  to  which  a  Lender  sells  such  a  participation  shall  provide  that  such  Lender  shall  retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of  any  provision  of  this  Agreement; provided that  such  agreement  or  instrument  may  provide  that  such  Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver  described  in the first proviso  to Section 9.02(b) that affects  such  Participant.  Subject to the following  clause (B) of this Section 9.04(c)(i), each Borrower agrees that each Participant shall be entitled to the  benefits of Sections 2.15, 2.16 and 2.17 (subject to the requirements and limitations therein, including the  requirements under Section 2.17(e) and (h) (it being understood that the documentation required under  Section 2.17(e) and (h) shall be delivered to the participating Lender)) to the same extent as if it were a  Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that  such  Participant  (A)  agrees  to  be  subject  to  the  provisions  of  Sections  2.18  and  2.19  as  if  it  were  an  assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment  under Sections 2.15 or 2.17, with respect to any participation, than its participating Lender would have  been entitled to receive, except to the extent such entitlement to receive a greater payment results from a  Change in Law that occurs after the Participant acquired the applicable participation.  Each Lender that  sells a participation agrees, at the Company’s request and expense, to use reasonable efforts to cooperate                                        112    

 

   with the Company to effectuate the provisions of Section 2.19(b) with respect to any Participant.  To the  extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it  were  a  Lender; provided such  Participant  agrees  to  be  subject  to  Section  2.18(d)  as  though  it  were  a  Lender.               (ii)  A  Participant that  would  be  a  Foreign  Lender  if it  were  a  Lender  shall  not  be  entitled to the benefits of Section 2.17 unless the Company is notified of the participation sold to such  Participant and such Participant agrees, for the benefit of the Company, to comply with Section 2.17(e)  and  (h)  as  though  it  were  a  Lender  (it  being  understood  that  the  documentation  required  under  Section 2.17(e)  and  (h)  shall  be  delivered  to  the  participating  Lender).   Each  Lender  that  sells  a  participation shall, acting solely for this  purpose as  a  non-fiduciary agent of the  Borrower, maintain a  register on which it enters the name and address of each Participant and the principal amounts (and stated  interest) of each Participant’s interest in the obligations under this Agreement (the “Participant Register”);  provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register  to  any  Person  (including  the  identity  of  any  Participant  or  any  information  relating  to  a  Participant’s  interest in the obligations under this Agreement) except to the extent that such disclosure is necessary to  establish that such interest is in registered form under Section 5f.103-1(c) of the United States Treasury  Regulations or Section 1.163-5(b) of the Proposed United States Treasury Regulations (or, in each case,  any amended or successor version).  The  entries in the  Participant Register shall be conclusive  absent  manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register  as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the  contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent)  shall have no responsibility for maintaining a Participant Register.               (d)   Any  Lender  may  at  any  time  pledge  or  assign  a  security  interest  in  all  or any  portion  of  its  rights  under  this  Agreement  to  secure  obligations  of  such  Lender, including  without  limitation any pledge  or assignment to secure  obligations  to a  Federal Reserve  Bank, and  this  Section  shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or  assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute  any such pledgee or assignee for such Lender as a party hereto.               (e)   Disqualified Institutions.               (i)   No  assignment  or  participation  shall  be  made  to  any  Person  that  was  a        Disqualified Institution as of the date (the “Trade Date”) on which the assigning Lender entered        into a binding agreement to sell and assign or grant a participation in all or a portion of its rights        and obligations under this Agreement to such Person (unless the Company has consented to such        assignment  or  participation  in  writing  in  its  sole  and  absolute  discretion,  in  which  case  such        Person  will not be  considered  a  Disqualified  Institution for the  purpose of such assignment or        participation).  For  the  avoidance  of  doubt,  with  respect  to  any  assignee  or  Participant  that        becomes a Disqualified Institution after the applicable Trade Date (including as a result of the        delivery  of  a  written  supplement  to  the  list  of  “Disqualified  Institutions”  referred  to  in,  the        definition of “Disqualified Institution”), (x) such assignee or Participant shall not retroactively be        disqualified from becoming a Lender or Participant and (y) the execution by the Company of an        Assignment  and  Assumption  with  respect  to  such  assignee  will  not  by  itself result  in  such        assignee no longer being considered a Disqualified Institution. Any assignment or participation in        violation of this clause (e)(i) shall not be void, but the other provisions of this clause (e) shall        apply.               (ii)  If any assignment or participation is made to any Disqualified Institution without        the Company’s prior written consent in violation of clause (i) above, or if any Person becomes a                                        113    

 

         Disqualified Institution after the applicable Trade Date, the Company may, at its sole expense and        effort, upon notice to the applicable Disqualified Institution and the Administrative Agent, require        such Disqualified Institution to assign, without recourse (in accordance with and subject to the        restrictions  contained  in  this  Section  9.04),  all  of its  interest, rights  and  obligations  under  this        Agreement to one or more Persons (other than an Ineligible Institution) at the lesser of (x) the        principal  amount  thereof  and  (y)  the  amount  that  such  Disqualified  Institution  paid  to  acquire        such interests, rights and obligations in each case plus accrued interest, accrued fees and all other        amounts (other than principal amounts) payable to it hereunder.               (iii) Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement,        Disqualified Institutions to whom an assignment or participation is made in violation of clause (i)        above (A) will not have the right to (x) receive information, reports or other materials provided to        Lenders by the Company, the Administrative Agent or any other Lender, (y) attend or participate        in meetings attended by the Lenders and the Administrative Agent, or (z) access any electronic        site  established  for  the  Lenders  or  confidential  communications  from  counsel  to  or  financial        advisors of the Administrative Agent or the Lenders and (B) (x) for purposes of any consent to        any  amendment,  waiver  or  modification  of,  or  any  action  under,  and  for  the  purpose  of  any        direction  to  the  Administrative  Agent  or  any  Lender  to  undertake  any  action  (or  refrain  from        taking  any  action)  under  this  Agreement  or  any  other  Loan  Document,  each  Disqualified        Institution will be deemed to have consented in the same proportion as the Lenders that are not        Disqualified Institutions consented to such matter, and (y) for purposes of voting on any plan of        reorganization, each Disqualified Lender party hereto hereby agrees (1) not to vote on such plan        of  reorganization,  (2)  if  such  Disqualified  Lender  does  vote  on  such  plan  of  reorganization        notwithstanding the restriction in the foregoing clause (1), such vote will be deemed not to be in        good faith and shall be “designated” pursuant to Section 1126(e) of the Bankruptcy Code (or any        similar provision in any other applicable laws), and such vote shall not be counted in determining        whether the applicable class has accepted or rejected such plan of reorganization in accordance        with Section 1126(c) of the Bankruptcy Code (or any similar provision in any other applicable        laws) and (3) not to contest any request by any party for a determination by the Bankruptcy Court        (or other applicable court of competent jurisdiction) effectuating the foregoing clause (2).               (iv)  The  Administrative  Agent  shall  have  the  right,  and  the  Company  hereby        expressly  authorizes  the  Administrative  Agent,  to  (A)  post  the  list  of  Disqualified  Institutions        provided by the Company and any updates thereto from time to time (collectively, the “DQ List”)        on an Approved Electronic Platform, including that portion of such Approved Electronic Platform        that is designated for “public side” Lenders and/or (B) provide the DQ List to each Lender or        potential Lender requesting the same.               (v)   The Administrative  Agent shall not be responsible  or have  any liability for, or        have  any  duty  to  ascertain,  inquire  into,  monitor  or  enforce,  compliance  with  the  provisions        hereof relating to Disqualified Institutions.  Without limiting the generality of the foregoing, the        Administrative Agent shall not (x) be obligated to ascertain, monitor or inquire as to whether any        Lender or Participant or prospective Lender or Participant is a Disqualified Institution or (y) have        any  liability  with  respect  to  or  arising  out  of  any  assignment  or  participation  of  Loans,  or        disclosure of confidential information, by any other Person to any Disqualified Institution.               SECTION 9.05.  Survival.  All covenants, agreements, representations and warranties  made by the Loan Parties in the Loan Documents and in the certificates or other instruments delivered in  connection with or pursuant to this Agreement or any other Loan Document shall be considered to have  been  relied  upon  by  the  other  parties  hereto  and  shall  survive  the  execution and  delivery  of  the  Loan  Documents  and  the  making  of  any  Loans  and  issuance  of  any  Letters  of  Credit,  regardless  of  any                                        114    

 

   investigation made by any such other party or on its behalf and notwithstanding that the Administrative  Agent, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect  representation or warranty at the time any credit is extended hereunder, and shall continue in full force  and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount  payable under this Agreement or any other Loan Document is outstanding and unpaid or any Letter of  Credit is outstanding and so long as the Commitments have not expired or terminated.  The provisions of  Sections 2.15,  2.16,  2.17  and  9.03  and  Article VIII  shall  survive  and  remain  in  full  force  and  effect  regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the  expiration  or  termination  of  the  Letters  of  Credit  and  the  Commitments  or  the  termination  of  this  Agreement or any other Loan Document or any provision hereof or thereof.               SECTION 9.06.  Counterparts; Integration; Effectiveness; Electronic Execution.  This  Agreement may be executed in counterparts (and by different parties hereto on different counterparts),  each of which shall constitute an original, but all of which when taken together shall constitute a single  contract.  This Agreement, the other Loan Documents and any separate letter agreements with respect to  fees payable to the Administrative Agent constitute the entire contract among the parties relating to the  subject matter hereof and supersede any and all previous agreements and understandings, oral or written,  relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become  effective  when  it  shall  have  been  executed  by  the  Administrative  Agent  and  when  the  Administrative  Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of  the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto  and their respective successors and assigns.  Delivery of an executed counterpart of a signature page of  this Agreement by telecopy, e-mailed .pdf or any other electronic means that reproduces an image of the  actual executed signature page shall be effective as delivery of a manually executed counterpart of this  Agreement.  The  words  “execution,”  “signed,” “signature,” “delivery,”  and words  of like  import in or  relating  to  any   document  to  be  signed  in  connection  with  this  Agreement  and  the  transactions  contemplated  hereby  shall  be  deemed  to  include  Electronic  Signatures,  deliveries  or  the  keeping  of  records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a  manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system,  as  the  case  may  be,  to  the  extent  and  as  provided  for  in  any  applicable  law,  including  the  Federal  Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures  and  Records  Act,  or  any  other  similar  state  laws  based  on  the Uniform  Electronic  Transactions  Act;  provided that nothing herein shall require the Administrative Agent to accept Electronic Signatures in any  form or format without its prior written consent.               SECTION 9.07.  Severability.   Any  provision  of  any  Loan  Document  held  to  be  invalid,  illegal  or  unenforceable  in  any  jurisdiction  shall,  as  to  such  jurisdiction,  be  ineffective  to  the  extent  of  such  invalidity,  illegality  or  unenforceability  without  affecting  the  validity,  legality  and  enforceability  of  the  remaining  provisions  thereof;  and  the  invalidity  of  a  particular  provision  in  a  particular jurisdiction shall not invalidate such provision in any other jurisdiction.               SECTION 9.08.  Right of Setoff.  If an Event of Default shall have occurred and be  continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time,  to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or  demand,  provisional  or  final  and  in  whatever  currency  denominated)  at  any  time  held  and  other  obligations  at  any  time  owing  by  such  Lender  or  Affiliate  to or  for  the  credit  or  the  account  of  any  Borrower  or  any  Subsidiary  Guarantor  against  any  of  and  all  the  Secured  Obligations  held  by  such  Lender,  irrespective  of  whether  or  not  such  Lender  shall  have  made  any  demand  under  the  Loan  Documents  and  although  such  obligations  may  be  unmatured.   The  rights  of  each  Lender  under  this  Section are in addition to other rights and remedies (including other rights of setoff) which such Lender  may have.  Each Lender and the Issuing Bank agrees to notify the Company and the Administrative Agent                                        115    

 

   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.               SECTION 9.09.  Governing Law; Jurisdiction; Consent to Service of Process.               (a)   This Agreement shall be construed in accordance with and governed by the law  of the State of New York, without regard to its conflicts of laws principles.               (b)   Each  of  the  Lenders  and  the  Administrative  Agent  hereby  irrevocably  and  unconditionally  agrees  that,  notwithstanding the  governing  law  provisions  of  any  applicable  Loan  Document,  any  claims  brought  against  the  Administrative  Agent  by  any  Lender  relating  to  this  Agreement,  any  other  Loan  Document  or  the  consummation  or  administration  of  the  transactions  contemplated hereby or thereby shall be construed in accordance with and governed by the law of the  State of New York.               (c)   Each  of  the  parties  hereto  hereby irrevocably  and  unconditionally  submits,  for  itself and its property, to the exclusive jurisdiction of the United States District Court for the Southern  District  of  New  York  sitting  in  the  Borough  of  Manhattan  (or  if  such  court  lacks  subject  matter  jurisdiction, the Supreme Court of the State of New York sitting in the  Borough of Manhattan), and any  appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement  or  any  other  Loan  Document  or  the  transactions  relating  hereto  or  thereto,  or  for  recognition  or  enforcement  of  any  judgment,  and  each  of  the  parties  hereto  hereby  irrevocably  and  unconditionally  agrees that all claims in respect of any such action or proceeding may (and any such claims, cross-claims  or third party claims brought against the Administrative Agent or any of its Related Parties may only) be  heard and determined in such Federal (to the extent permitted by law) or New York State court.  Each of  the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and  may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.   Nothing in this Agreement or in any other Loan Document shall affect any right that the Administrative  Agent, the Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to  this Agreement or any other Loan Document against any Loan Party or its properties in the courts of any  jurisdiction.               (d)   Each of the parties hereto hereby irrevocably and unconditionally waives, to the  fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the  laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other  Loan Document in any court referred to in paragraph (c) of this Section.  Each of the parties hereto hereby  irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the  maintenance of such action or proceeding in any such court.               (e)   Each  party to this  Agreement irrevocably consents to service  of process in the  manner provided for notices in Section 9.01.  Each Foreign Subsidiary Borrower irrevocably designates  and appoints the Company, as its authorized agent, to accept and acknowledge on its behalf, service of  any and all process which may be served in any suit, action or proceeding of the nature referred to in  Section 9.09(c) in any federal or New York State court sitting in New York City.  The Company hereby  represents,  warrants  and  confirms  that  the  Company  has  agreed  to  accept  such  appointment  (and  any  similar  appointment by  a  Subsidiary  Guarantor  which  is  a  Foreign  Subsidiary).   Said  designation  and  appointment  shall  be  irrevocable  by  each  such  Foreign  Subsidiary  Borrower  until  all  Loans,  all  reimbursement  obligations,  interest thereon  and  all  other  amounts  payable  by  such Foreign  Subsidiary  Borrower hereunder and under the other Loan Documents shall have been paid in full in accordance with  the provisions hereof and thereof and such Foreign Subsidiary Borrower shall have been terminated as a  Borrower  hereunder  pursuant  to Section 2.23.   Each  Foreign  Subsidiary  Borrower  hereby  consents  to                                        116    

 

   process being served in any suit, action or proceeding of the nature referred to in Section 9.09(c) in any  federal or New York State court sitting in New York City by service of process upon the Company as  provided in this Section 9.09(e); provided that, to the extent lawful and possible, notice of said service  upon  such  agent  shall  be  mailed  by  registered  or  certified  air  mail,  postage  prepaid,  return  receipt  requested, to the Company and (if applicable to) such Foreign Subsidiary Borrower at its address set forth  in  the  Borrowing  Subsidiary  Agreement  to  which  it  is  a  party  or  to  any  other  address  of  which  such  Foreign Subsidiary Borrower shall have given written notice to the Administrative Agent (with a copy  thereof to the  Company).   Each  Foreign  Subsidiary  Borrower  irrevocably  waives,  to the  fullest extent  permitted by law, all claim of error by reason of any such service in such manner and agrees that such  service  shall  be  deemed  in  every respect  effective  service  of  process  upon  such  Foreign  Subsidiary  Borrower in any such suit, action or proceeding and shall, to the fullest extent permitted by law, be taken  and  held  to  be  valid  and  personal  service  upon  and  personal  delivery  to  such  Foreign  Subsidiary  Borrower.  To the extent any Foreign Subsidiary Borrower has or hereafter may acquire any immunity  from jurisdiction of any court or from any legal process (whether from service or notice, attachment prior  to  judgment,  attachment  in  aid  of  execution  of  a  judgment,  execution  or  otherwise),  each  Foreign  Subsidiary  Borrower  hereby  irrevocably  waives  such  immunity  in  respect  of  its  obligations  under  the  Loan Documents.  Nothing in this Agreement or any other Loan Document will affect the right of any  party to this Agreement to serve process in any other manner permitted by law.               SECTION 9.10.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY  WAIVES,  TO  THE  FULLEST  EXTENT  PERMITTED  BY  APPLICABLE  LAW,  ANY  RIGHT  IT  MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY  ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR  THE  TRANSACTIONS  CONTEMPLATED  HEREBY  OR  THEREBY  (WHETHER  BASED  ON  CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT  NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,  EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF  LITIGATION,  SEEK  TO  ENFORCE  THE  FOREGOING  WAIVER  AND  (B) ACKNOWLEDGES  THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO     ENTER INTO THIS  AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS  IN THIS SECTION.               SECTION 9.11.  Headings.  Article and Section headings and the Table of Contents  used herein are for convenience of reference only, are not part of this Agreement and shall not affect the  construction of, or be taken into consideration in interpreting, this Agreement.               SECTION 9.12.  Confidentiality.  Each of the Administrative Agent, the Issuing Bank  and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that  Information  may  be  disclosed  (a) to  its  and  its  Affiliates’  directors,  officers,  employees  and  agents,  including accountants, legal counsel and  other advisors (it being understood that the  Persons to whom  such disclosure is made will be informed of the confidential nature of such Information and instructed to  keep  such  Information  confidential),  and  that  the  disclosing  Administrative  Agent,  Issuing  Bank  or  Lender will be  responsible for any unauthorized  disclosure  by any of its foregoing affiliated  Persons),  (b) to the extent requested by any Governmental Authority (including any self-regulatory authority, such  as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or  regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in  connection with the exercise of any remedies under this Agreement or any other Loan Document or any  suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of  rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as  those of this Section, to (x) any assignee of or Participant in, or any prospective assignee of or Participant  in, any of its rights or obligations under this Agreement (other than a Disqualified Institution) (it being                                        117    

 

   understood that the DQ List may be disclosed to any assignee or Participant, or prospective assignee or  Participant, in reliance on this clause (f)) or (y) any actual or prospective counterparty (or its advisors) to  any swap or derivative transaction relating to any Borrower and its obligations, (g) on a confidential basis  to (x) any rating agency in connection with rating the Company or its Subsidiaries or the credit facilities  provided  for  herein  or  (y)  the  CUSIP  Service  Bureau  or  any  similar  agency  in  connection  with  the  issuance and monitoring of identification numbers with respect to the credit facilities provided for herein,  (h) with the consent of the Company or (i) to the extent such Information (1) becomes publicly available  other than as a result of a breach of this Section or (2) becomes available to the Administrative Agent, the  Issuing Bank or any Lender on a nonconfidential basis from a source other than the Company.  For the  purposes  of  this  Section,  “Information”  means  all  information  received  from  the  Company  or  any  Subsidiary  relating  to  the  Company,  any  of  its  Subsidiaries  or  its  business,  other  than  any  such  information  that  is  available to  the  Administrative  Agent,  the  Issuing  Bank  or  any  Lender  on  a  nonconfidential basis prior to disclosure by the Company and other than information pertaining to this  Agreement routinely provided  by arrangers to data  service providers, including league table  providers,  that serve the lending industry.  Any Person required to maintain the  confidentiality of Information as  provided in this Section shall be considered to have complied with its obligation to do so if such Person  has exercised the same degree of care to maintain the confidentiality of such Information as such Person  would accord to its own confidential information.         EACH  LENDER  ACKNOWLEDGES  THAT  INFORMATION  AS  DEFINED  IN  THIS  SECTION  9.12  FURNISHED  TO  IT  PURSUANT  TO  THIS  AGREEMENT  MAY  INCLUDE  MATERIAL  NON-PUBLIC  INFORMATION  CONCERNING  THE  COMPANY,  THE  OTHER  LOAN PARTIES AND  THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES,  AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING  THE  USE  OF  MATERIAL  NON-PUBLIC  INFORMATION  AND  THAT  IT  WILL  HANDLE  SUCH  MATERIAL  NON-PUBLIC  INFORMATION  IN  ACCORDANCE  WITH  THOSE  PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES  LAWS.         ALL   INFORMATION,     INCLUDING     REQUESTS    FOR    WAIVERS    AND  AMENDMENTS,  FURNISHED  BY  THE  COMPANY  OR  THE  ADMINISTRATIVE  AGENT  PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE  SYNDICATE-LEVEL  INFORMATION,  WHICH  MAY  CONTAIN  MATERIAL  NON-PUBLIC  INFORMATION  ABOUT  THE  COMPANY,  THE  LOAN  PARTIES  AND  THEIR  RELATED  PARTIES  OR  THEIR  RESPECTIVE  SECURITIES.  ACCORDINGLY,  EACH  LENDER  REPRESENTS  TO  THE  COMPANY  AND  THE  ADMINISTRATIVE  AGENT  THAT  IT  HAS  IDENTIFIED  IN  ITS  ADMINISTRATIVE  QUESTIONNAIRE  A  CREDIT  CONTACT  WHO  MAY  RECEIVE  INFORMATION  THAT  MAY  CONTAIN  MATERIAL  NON-PUBLIC  INFORMATION  IN  ACCORDANCE  WITH  ITS  COMPLIANCE  PROCEDURES  AND  APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.               SECTION 9.13.  USA PATRIOT Act.  Each Lender that is subject to the requirements  of the Patriot Act and the requirements of the Beneficial Ownership Regulation hereby notifies each Loan  Party that pursuant to the requirements of the Patriot Act and the Beneficial Ownership Regulation, it is  required  to  obtain,  verify  and  record  information  that  identifies  such  Loan  Party,  which  information  includes the name, address and tax identification number of such Loan Party and other information that  will allow such Lender to identify such Loan Party in accordance with the Patriot Act and the Beneficial  Ownership Regulation.               SECTION 9.14.  Appointment  for  Perfection.   Each  Lender  hereby  appoints  each  other Lender as its agent for the purpose of perfecting Liens, for the benefit of the Administrative Agent                                        118    

 

   and the Holders of Secured Obligations, in assets which, in accordance with Article 9 of the UCC or any  other applicable law can be perfected only by possession or control.  Should any Lender (other than the  Administrative Agent) obtain possession or control of any such Collateral, such Lender shall notify the  Administrative  Agent  thereof,  and,  promptly  upon  the  Administrative  Agent’s  request  therefor  shall  deliver such Collateral to the Administrative Agent or otherwise deal with such Collateral in accordance  with the Administrative Agent’s instructions.               SECTION 9.15.  Interest  Rate  Limitation.   Notwithstanding  anything  herein  to  the  contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other  amounts  which are treated as interest on such  Loan under applicable law (collectively the “Charges”),  shall  exceed  the  maximum  lawful  rate  (the  “Maximum  Rate”)  which  may  be  contracted  for,  charged,  taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate  of  interest  payable  in  respect  of  such  Loan  hereunder,  together  with  all  Charges  payable  in  respect  thereof, shall be limited to the Maximum Rate  and, to the extent lawful, the interest and Charges that  would have been payable in respect of such Loan but were not payable as a result of the operation of this  Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans  or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount,  together with interest thereon at the NYFRB Rate to the date of repayment, shall have been received by  such Lender.               SECTION 9.16.  No Advisory or Fiduciary Responsibility.               (a)   Each  Borrower  acknowledges  and  agrees,  and  acknowledges  its  Subsidiaries’  understanding, that no Credit Party will have any obligations except those obligations expressly set forth  herein and in the other Loan Documents and each Credit Party is acting solely in the capacity of an arm’s  length  contractual  counterparty  to  such  Borrower  with  respect  to  the  Loan  Documents  and  the  transactions contemplated herein and therein and not as a financial advisor or a fiduciary to, or an agent  of, such Borrower or any other person.  Each Borrower agrees that it will not assert any claim against any  Credit Party based on an alleged breach of fiduciary duty by such Credit Party in connection with this  Agreement and  the  transactions  contemplated  hereby.  Additionally, each  Borrower acknowledges and  agrees  that  no  Credit  Party  is  advising  such  Borrower  as  to  any  legal,  tax,  investment,  accounting,  regulatory or any other matters in any jurisdiction.  Each Borrower shall consult with its own advisors  concerning  such  matters  and  shall  be  responsible  for  making  its  own  independent  investigation  and  appraisal of the transactions contemplated herein or in the other Loan Documents, and the Credit Parties  shall have no responsibility or liability to any Borrower with respect thereto.               (b)   Each  Borrower  further  acknowledges  and  agrees,  and  acknowledges  its  Subsidiaries’ understanding, that each Credit Party, together with its Affiliates, is a full service securities  or banking firm engaged  in securities trading and brokerage  activities as  well as providing investment  banking and other financial services.  In the ordinary course of business, any Credit Party may provide  investment banking and other financial services to, and/or acquire, hold or sell, for its own accounts and  the  accounts  of  customers,  equity,  debt  and  other  securities  and  financial  instruments  (including  bank  loans and  other  obligations)  of,  such  Borrower, its  Subsidiaries  and  other  companies  with  which  such  Borrower or any of its  Subsidiaries  may  have  commercial or other relationships.  With respect to any  securities and/or financial instruments so held by any Credit Party or any of its customers, all rights in  respect of such securities and financial instruments, including any voting rights, will be exercised by the  holder of the rights, in its sole discretion.               (c)   In  addition,  each  Borrower  acknowledges  and  agrees,  and  acknowledges  its  Subsidiaries’ understanding, that each  Credit Party and  its  Affiliates may be  providing debt financing,  equity capital or other services (including financial advisory services) to other companies in respect of                                        119    

 

   which such Borrower or any of its Subsidiaries may have conflicting interests regarding the transactions  described  herein  and  otherwise.   No  Credit  Party  will  use  confidential  information  obtained  from  any  Borrower by virtue  of the  transactions  contemplated by the  Loan Documents  or its  other relationships  with  such  Borrower  in  connection  with  the  performance  by  such  Credit  Party  of  services  for  other  companies, and no Credit Party will furnish any such information to other companies.  Each Borrower  also  acknowledges  that  no  Credit  Party  has  any  obligation  to  use  in  connection  with  the  transactions  contemplated  by  the  Loan  Documents,  or  to  furnish  to  such  Borrower  or  any  of  its  Subsidiaries,  confidential information obtained from other companies.               SECTION 9.17.  Attorney  Representation.   If  any  Borrower  that  is  organized  under  the laws of the Netherlands is represented by an attorney in connection with the signing and/or execution  of the Agreement and/or any other Loan Document, it is hereby expressly acknowledged and accepted by  the  parties  to  this  Agreement  and/or  any  other  Loan  Document  that  the  existence  and  extent  of  the  attorney’s authority and the effects of the attorney’s exercise or purported exercise of his or her authority  shall be governed by the laws of The Netherlands.               SECTION 9.18.  Acknowledgement  and  Consent  to  Bail-In  of  EEA  Financial  Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement,  arrangement or understanding among any such parties, each party hereto acknowledges that any liability  of any EEA Financial Institution arising under any Loan Document may be subject to the Write-Down  and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges  and agrees to be bound by:               (a)   the  application  of  any  Write-Down  and  Conversion  Powers  by  an  EEA  Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party  hereto that is an EEA Financial Institution; and               (b)   the effects of any Bail-In Action on any such liability, including, if applicable:                     (i)   a reduction in full or in part or cancellation of any such liability;                     (ii)  a  conversion  of  all,  or  a  portion  of,  such  liability  into  shares  or other        instruments  of  ownership  in  such  EEA  Financial  Institution,  its  parent  entity,  or  a  bridge        institution that  may  be  issued  to it  or  otherwise  conferred  on it, and  that such  shares  or  other        instruments  of ownership will be  accepted by it in lieu  of any rights  with respect to any such        liability under this Agreement or any other Loan Document; or                     (iii) the variation of the terms of such liability in connection with the exercise        of the Write-Down and Conversion Powers of any EEA Resolution Authority.               SECTION 9.19.  Acknowledgement Regarding Any Supported QFCs.  To the extent  that the Loan Documents provide support, through a guarantee or otherwise, for Swap Agreements or any  other agreement or instrument that is a QFC (such support “QFC Credit Support” and each such QFC a  “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of  the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the  Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated  thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit  Support  (with  the  provisions  below  applicable  notwithstanding  that  the  Loan  Documents  and  any  Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the  United States or any other state of the United States):                                        120    

 

         In  the  event  a  Covered  Entity  that  is  party  to  a  Supported  QFC  (each,  a  “Covered  Party”)  becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported  QFC  and  the  benefit  of  such  QFC  Credit  Support  (and  any  interest  and  obligation  in  or  under  such  Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC  or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer  would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit  Support (and any such interest, obligation and rights in property) were governed by the laws of the United  States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered  Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the  Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may  be  exercised  against  such  Covered  Party  are  permitted  to  be  exercised  to  no  greater  extent  than  such  Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and  the  Loan  Documents  were  governed  by  the  laws  of  the  United  States  or  a  state  of  the  United  States.  Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties  with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to  a Supported QFC or any QFC Credit Support.               SECTION 9.20.  Releases of Subsidiary Guarantors.               (a)   A Subsidiary Guarantor shall automatically be released from its obligations under  the  Subsidiary  Guaranty  upon  the  consummation  of any  transaction  permitted  by  this  Agreement  as  a  result of which such Subsidiary Guarantor ceases to be a Subsidiary; provided that, if so required by this  Agreement, the Required Lenders shall have consented to such transaction and the terms of such consent  shall not have provided otherwise.  In connection with any termination or release pursuant to this Section,  the  Administrative  Agent  shall  (and  is  hereby  irrevocably  authorized  by  each  Lender  to)  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 Section shall be without recourse to or warranty by the Administrative Agent.               (b)   Further, the Administrative Agent may (and is hereby irrevocably authorized by  each Lender to), upon the request of the Company, release any Subsidiary Guarantor from its obligations  under the Subsidiary Guaranty if such Subsidiary Guarantor is no longer a Material Domestic Subsidiary  or a Material Dutch Subsidiary, as applicable.               (c)   At such time as the principal and interest on the Loans, all LC Disbursements, the  fees, expenses and other amounts payable under the Loan Documents and the other Secured Obligations  (other  than  Swap  Obligations  not  yet  due  and  payable,  Banking  Services  Obligations  not  yet  due  and  payable,  Unliquidated  Obligations  for  which  no  claim  has  been  made  and  other  Obligations  expressly  stated to survive such payment and termination) shall have been paid in full in cash, the Commitments  shall have been terminated and no Letters of Credit shall be outstanding, the Subsidiary Guaranty and all  obligations (other than those expressly stated to survive such termination) of each Subsidiary Guarantor  thereunder shall automatically terminate, all without delivery of any instrument or performance of any act  by any Person.               (d)   Each of the Lenders party hereto acknowledge and agree that, effective as of the  Effective  Date,  Materion  Large  Area  Coatings  LLC  is  hereby  released  from  its  obligations  under  the  Subsidiary  Guaranty  due  to  it  no  longer  qualifying  as  a  “Material  Domestic  Subsidiary”  as  of  the  Effective Date (it being understood and agree that, for the avoidance of doubt, if at any time after the  Effective  Date  such  entity  becomes  a  “Material  Domestic  Subsidiary”  it  will be  required  to  become  a  Subsidiary Guarantor pursuant to the provisions of this Agreement and the other Loan Documents.                                        121    

 

                                     ARTICLE X                                                                          Company Guarantee               In order to induce the Lenders to extend credit to the other Borrowers hereunder and for  other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged),  the Company hereby irrevocably and unconditionally guarantees, as a primary obligor and not merely as a  surety, the payment when and as due of the Secured Obligations.  The Company further agrees that the  due and punctual payment of the Secured Obligations may be extended or renewed, in whole or in part,  without notice to or further assent from it, and that it will remain bound upon its guarantee hereunder  notwithstanding any such extension or renewal of any Secured Obligation.               The  Company  waives  presentment  to,  demand  of  payment  from  and  protest  to  any  Subsidiary of any of the Secured Obligations, and also waives notice of acceptance of its obligations and  notice of protest for nonpayment.  The obligations of the Company hereunder shall not be affected by  (a) the failure of the Administrative Agent, the Issuing Bank or any Lender (or any of its Affiliates) to  assert any claim or demand or to enforce any right or remedy against any Subsidiary under the provisions  of this Agreement, any other Loan Document, any Swap Agreement, any Banking Services Agreement or  otherwise;  (b) any  extension  or  renewal  of  any  of  the  Secured  Obligations;  (c) any  rescission,  waiver,  amendment or modification of, or release from, any of the terms or provisions of this Agreement, any  other Loan Document, any Swap Agreement, any Banking Services Agreement or any other agreement;  (d) any  default,  failure  or  delay,  willful  or  otherwise,  in  the  performance  of  any  of  the  Secured  Obligations;  (e) the  failure  of  the  Administrative  Agent  (or  any  applicable  Lender  (or  any  of  its  Affiliates)) to take any steps to perfect and maintain any security interest in, or to preserve any rights to,  any security or collateral for the Secured Obligations, if any; (f) any change in the corporate, partnership  or other existence, structure or ownership of any Subsidiary or any other guarantor of any of the Secured  Obligations;  (g) the  enforceability  or  validity  of  the  Secured  Obligations  or  any  part  thereof  or  the  genuineness, enforceability or validity of any agreement relating thereto or with respect to any collateral  securing the Secured Obligations or any part thereof, or any other invalidity or unenforceability relating to  or against any Subsidiary or any other guarantor of any of the Secured Obligations, for any reason related  to this Agreement, any other Loan Document, any Swap Agreement, any Banking Services Agreement, or  any provision of applicable law, decree, order or regulation of any jurisdiction purporting to prohibit the  payment by such Subsidiary or any other guarantor of the  Secured Obligations, of any of the  Secured  Obligations  or  otherwise  affecting  any  term  of  any  of  the  Secured  Obligations;  or  (h) any  other  act,  omission or delay to do any other act which may or might in any manner or to any extent vary the risk of  the Company or otherwise operate as a discharge of a guarantor as a matter of law or equity or which  would impair or eliminate any right of the Company to subrogation.               The  Company  further  agrees  that  its  agreement  hereunder  constitutes  a  guarantee  of  payment when due (whether or not any bankruptcy or similar proceeding shall have stayed the accrual or  collection  of  any  of  the  Secured  Obligations  or  operated  as  a  discharge  thereof)  and  not  merely  of  collection, and waives any right to require that any resort be had by the Administrative Agent, the Issuing  Bank or any Lender (or any of its Affiliates) to any balance of any deposit account or credit on the books  of  the  Administrative  Agent,  the  Issuing  Bank  or  any  Lender  in  favor  of  any Subsidiary  or  any  other  Person.               The obligations  of  the  Company  hereunder  shall  not  be  subject  to  any  reduction,  limitation, impairment or termination for any reason, and shall not be subject to any defense or set-off,  counterclaim,  recoupment  or  termination  whatsoever,  by  reason  of  the  invalidity,  illegality  or  unenforceability of any of the Secured Obligations, any impossibility in the performance of any of the  Secured Obligations or otherwise (other than the defense of payment and performance in full in cash).                                        122    

 

               The Company further agrees that its obligations hereunder shall constitute a continuing  and irrevocable guarantee of all Secured Obligations now or hereafter existing and shall continue to be  effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any Secured  Obligation (including a payment effected through exercise of a right of setoff) is rescinded, or is or must  otherwise be restored or returned by the Administrative Agent, the Issuing Bank or any Lender (or any of  its  Affiliates)  upon  the  insolvency,  bankruptcy  or  reorganization  of  any  Subsidiary  or  otherwise  (including pursuant to any settlement entered into by a holder of Secured Obligations in its discretion).               In  furtherance  of  the  foregoing  and  not  in  limitation  of  any  other  right  which  the  Administrative Agent, the Issuing Bank or any Lender (or any of its Affiliates) may have at law or in  equity  against  the  Company  by  virtue  hereof,  upon  the  failure  of  any  Subsidiary  to  pay  any  Secured  Obligation when and as the same shall become due, whether at maturity, by acceleration, after notice of  prepayment or otherwise, the Company hereby promises to and will, upon receipt of written demand by  the  Administrative  Agent, the  Issuing  Bank  or  any  Lender (or any  of  its  Affiliates),  forthwith  pay,  or  cause to be paid, to the Administrative Agent, the Issuing Bank or such Lender (or any of such Lender’s  Affiliates) in cash an amount equal to the unpaid principal amount of the Secured Obligations then due,  together with accrued and unpaid interest thereon.  The Company further agrees that if payment in respect  of any Secured Obligation shall be due in a currency other than Dollars and/or at a place of payment other  than New York, Chicago or any other Eurocurrency Payment Office and if, by reason of any Change in  Law, disruption of currency or foreign exchange markets, war or civil disturbance or other event, payment  of such Secured Obligation in such currency or at such place of payment shall be impossible or, in the  reasonable  judgment  of  the  Administrative Agent,  the  Issuing  Bank  or  any  Lender  (or  any  of  its  Affiliates), disadvantageous to the Administrative Agent, the Issuing Bank or such Lender (or any of such  Lender’s  Affiliates)  in  any  material  respect,  then,  at  the  election  of  the  Administrative  Agent  or  such  Lender, the Company shall make payment of such Secured Obligation in Dollars (based upon the Dollar  Amount  thereof  on  the  date  of  payment)  and/or  in  New  York,  Chicago  or  such  other  Eurocurrency  Payment  Office  as  is  designated  by  the  Administrative  Agent  or  such  Lender  and,  as  a  separate  and  independent obligation, shall indemnify the Administrative Agent, the Issuing Bank and such Lender (and  such Lender’s Affiliates), as applicable, against any losses or reasonable out-of-pocket expenses that it  shall sustain as a result of such alternative payment.               Upon  payment  by  the  Company  of  any  sums  as  provided  above,  all  rights  of  the  Company against any Subsidiary arising as a result thereof by way of right of subrogation or otherwise  shall in all respects be subordinated and junior in right of payment to the prior indefeasible payment in  full in cash of all the Secured Obligations owed by such Subsidiary.               Nothing shall discharge or satisfy the liability of the Company hereunder except the full  performance and payment in cash of the Secured Obligations.                                [Signature Pages Follow]                                            123    

 

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed  and delivered by their respective authorized officers as of the day and year first above written.                                       MATERION CORPORATION, as the Company                                       By  /s/ Christopher E. Eberhardt                                                Name:  Christopher E. Eberhardt                                         Title:  Vice President, Tax and Treasury                                       MATERION NETHERLANDS B.V., as the Dutch                                      Borrower                                       By  /s/ Jeffrey Alan Hirt                                                       Name:  Jeffrey Alan Hirt                                         Title:  Authorized Signatory                                       JPMORGAN CHASE BANK, N.A., individually as a                                      Lender, as Swingline Lender, as Issuing Bank and as                                      Administrative Agent                                       By  /s/ Steven C. Bagnowski                                                     Name:  Steven C. Bagnowski                                         Title:  Authorized Officer                                       WELLS FARGO BANK, NATIONAL ASSOCIATION,                                      individually as a Lender and as Co-Syndication Agent                                       By  /s/ Mark M. Mountain                                                        Name:  Mark M. Mountain                                         Title:  Senior Vice President                                       BANK OF AMERICA , N.A., individually as a Lender                                      and as Co-Syndication Agent                                       By  /s/ Michael Kousaie                                                         Name:  Michael Kousaie                                         Title:  Vice President                                             Signature Page to Third Amended and Restated Credit Agreement                               Materion Corporation et al  

 

                      KEYBANK NATIONAL ASSOCIATION, individually                        as a Lender and as Documentation Agent                         By  /s/ Ashley Braniecki                                          Name:  Ashley Braniecki                           Title:  Vice President                         FIFTH THIRD BANK, as a Lender                         By  /s/ Will Batchelor                                            Name:  Will Batchelor                           Title:  Vice President                         CITIZENS BANK, N.A., as a Lender                         By  /s/ Stephen A. Maenhout                                       Name:  Stephen A. Maenhout                           Title:  Senior Vice President                                                                                                                                                 Signature Page to Third Amended and Restated Credit Agreement                 Materion Corporation et al  

 

                                SCHEDULE 2.01                                   COMMITMENTS   LENDER                                              COMMITMENT   JPMORGAN CHASE BANK, N.A.                                           $80,000,000   WELLS FARGO BANK, NATIONAL ASSOCIATION                              $75,000,000   BANK OF AMERICA, N.A.                                               $70,000,000   KEYBANK NATIONAL ASSOCIATION                                        $60,000,000   FIFTH THIRD BANK                                                    $45,000,000   CITIZENS BANK, N.A.                                                 $45,000,000   AGGREGATE COMMITMENT                                               $375,000,000                                                

 

                                  EXHIBIT A                           ASSIGNMENT AND ASSUMPTION               This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the  Effective  Date  set  forth  below  and  is  entered  into  by  and  between  [Insert  name  of  Assignor]  (the  “Assignor”)  and  [Insert  name  of  Assignee]  (the  “Assignee”).   Capitalized  terms  used  but  not  defined  herein  shall  have  the  meanings  given  to  them  in  the  Credit  Agreement  identified  below  (as  amended,  restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), receipt of a  copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in  Annex 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 Loan Documents to the  extent related to the amount and percentage interest identified below of all of such outstanding rights and  obligations of the Assignor under the respective facilities identified below (including any letters of credit,  guarantees, 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 Loan Documents or in any way based on or related to any of the foregoing,  including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or  in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights  and  obligations  sold  and  assigned pursuant  to  clauses (i)  and  (ii)  above  being  referred  to  herein  collectively as the “Assigned Interest”).  Such sale and assignment is without recourse to the Assignor  and, except as expressly provided in this Assignment and Assumption, without representation or warranty  by the Assignor.   1.    Assignor:                                          2.    Assignee:                                                                 [and is an Affiliate/Approved Fund of [identify Lender]1]   3.    Borrowers:        Materion  Corporation,  Materion  Netherlands  B.V.  and  certain  other                          Foreign Subsidiary Borrowers   4.    Administrative Agent: JPMorgan  Chase  Bank,  N.A.,  as  the  administrative  agent  under  the                          Credit Agreement   5.    Credit Agreement: Third Amended and  Restated  Credit Agreement dated as of September                          24, 2019 among Materion Corporation, Materion Netherlands B.V., the                          other Foreign Subsidiary Borrowers from time to time parties thereto, the                          Lenders parties thereto, JPMorgan Chase Bank, N.A., as Administrative                          Agent, and the other agents parties thereto   6.    Assigned Interest:                                                        1 Select as applicable                                            

 

     Aggregate Amount of     Amount of     Percentage Assigned  Commitment/Loans for all Commitment/ Loans     of         Lenders            Assigned      Commitment/Loans2  $                     $                                %  $                     $                                %  $                     $                                %    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 Assignee agrees to deliver to the Administrative Agent a completed Administrative Questionnaire in  which  the  Assignee  designates  one  or  more  credit  contacts  to  whom  all  syndicate-level  information  (which  may  contain  material  non-public  information  about  the  Company,  the  Loan  Parties  and  their  Related  Parties  or  their  respective  securities)  will  be  made  available  and  who  may  receive  such  information  in  accordance  with  the  Assignee’s  compliance  procedures  and  applicable  laws,  including  federal and state securities laws.   The terms set forth in this Assignment and Assumption are hereby agreed to:                                       ASSIGNOR                                       [NAME OF ASSIGNOR]                                       By:                                                                              Title:                                       ASSIGNEE                                       [NAME OF ASSIGNEE]                                       By:                                                                              Title:   Consented to and Accepted:   JPMORGAN CHASE BANK, N.A., as   Administrative Agent and Issuing Bank and Swingline Lender    By:                                Title:   [Consented to:] 3                                                          2 Set forth, to at least 9 decimals as a percentage of the Commitment/Loans of all Lenders thereunder.  3 To be added only if the consent of the Company is required by the terms of the Credit Agreement.                                         2    

 

   MATERION CORPORATION       By:                                Title:                                                      3    

 

                                                                      ANNEX I                       STANDARD TERMS AND CONDITIONS FOR                           ASSIGNMENT AND ASSUMPTION               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  and  (iii) it  has  full  power  and  authority,  and  has  taken  all  action  necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions  contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or  representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the  execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or  any collateral thereunder, (iii) the financial condition of the Company, any of its Subsidiaries or Affiliates  or any other Person obligated in respect of any Loan Document, (iv) any requirements under applicable  law for the Assignee to become a lender under the Credit Agreement or to charge interest at the rate set  forth therein  from  time  to  time  or  (v) the  performance  or  observance  by  the  Company,  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  satisfies  the  requirements,  if  any,  specified  in  the  Credit  Agreement  and  under  applicable law that are required to be satisfied by it in order to acquire the Assigned Interest and become a  Lender,  (iii) from  and  after  the  Effective  Date,  it  shall  be  bound  by  the provisions  of  the  Credit  Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of  a  Lender  thereunder,  (iv) it  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, together with copies  of the  most recent financial statements  delivered pursuant to Section 5.01 thereof, as applicable, and such other documents and information as it  has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and  Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and  decision independently and without reliance on the Administrative Agent, the Arranger, the Assignor or  any  other  Lender  or  any  of  their  respective  Related  Parties,  and  (vi) 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  Arranger,  any  Co-Syndication  Agent,  the  Documentation Agent, the Assignor or any other Lender or any of their respective Related Parties, 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.                                            

 

               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  any  number  of  counterparts,  which  together  shall  constitute one instrument.  Acceptance and adoption of the terms of this Assignment and Assumption by  the  Assignee and  the  Assignor  by  Electronic  Signature  or  delivery  of  an  executed  counterpart  of  a  signature  page  of  this  Assignment  and  Assumption  by  any  Approved  Electronic  Platform  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 law of the State  of New York, without regard to its conflicts of laws principles.                                             2    

 

        EXHIBIT B   [INTENTIONALLY OMITTED]                                    

 

                                  EXHIBIT C                      FORM OF INCREASING LENDER SUPPLEMENT         INCREASING  LENDER  SUPPLEMENT,  dated  __________,  20___  (this  “Supplement”),  by  and among each of the signatories hereto, to the Third Amended and Restated Credit Agreement, dated as  of September 24, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the  “Credit  Agreement”),  among  Materion  Corporation  (the  “Company”),  Materion  Netherlands  B.V.,  the  other  Foreign  Subsidiary  Borrowers  from  time  to  time  party  thereto,  the  Lenders  party  thereto  and  JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”).                                  W I T N E S S E T H               WHEREAS,  pursuant  to Section 2.20 of  the  Credit  Agreement,  the  Company  has  the  right,  subject  to  the  terms  and  conditions  thereof,  to  effectuate  from  time  to  time  an  increase  in  the  Aggregate  Commitment  and/or  one  or  more  tranches  of  Incremental  Term  Loans  under  the  Credit  Agreement  by  requesting  one  or  more  Lenders  to  increase  the  amount  of  its  Commitment  and/or  to  participate in such a tranche;               WHEREAS, the Company has given notice to the Administrative Agent of its intention to  [increase the Aggregate Commitment] [and] [enter into a tranche of Incremental Term Loans] pursuant to  such Section 2.20; and               WHEREAS,  pursuant  to Section 2.20 of  the  Credit  Agreement,  the  undersigned  Increasing Lender now desires to [increase the amount of its Commitment] [and] [participate in a tranche  of Incremental Term Loans] under the Credit Agreement by executing and delivering to the Company and  the Administrative Agent this Supplement;               NOW, THEREFORE, each of the parties hereto hereby agrees as follows:               1.  The undersigned Increasing Lender agrees, subject to the terms and conditions of the  Credit  Agreement,  that  on  the  date  of  this  Supplement  it  shall  [have  its  Commitment  increased  by  $[__________], thereby making the aggregate amount of its total Commitments equal to $[__________]]  [and]  [participate  in  a  tranche  of  Incremental  Term  Loans  with  a  commitment  amount  equal  to  $[__________] with respect thereto].               2.  The Company hereby represents and warrants that no Default or Event of Default has  occurred and is continuing on and as of the date hereof (or, with respect to any Incremental Term Loans  in respect of a Limited Conditionality Acquisition, no Event of Default under Section 7.01(a), (b), (h), (i)  or (j) has occurred and is continuing).               3.  Terms defined in the Credit Agreement shall have their defined meanings when used  herein.               4.  This Supplement shall be governed by, and construed in accordance with, the laws of  the State of New York, without regard to its conflicts of laws principles.               5.   This  Supplement  may  be  executed  in  any  number  of  counterparts  and  by  different  parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original  and all of which taken together shall constitute one and the same document.                                             

 

               IN  WITNESS  WHEREOF,  each  of  the  undersigned  has  caused  this  Supplement  to  be  executed and delivered by a duly authorized officer on the date first above written.                                       [INSERT NAME OF INCREASING LENDER]                                       By:                                                                          Name:                                      Title:   Accepted and agreed to as of the date first written above:   MATERION CORPORATION    By:                             Name:  Title:   [OTHER BORROWERS]    By:                             Name:  Title:   Acknowledged as of the date first written above:   JPMORGAN CHASE BANK, N.A.  as Administrative Agent    By:                             Name:  Title:                                          2    

 

                                  EXHIBIT D                     FORM OF AUGMENTING LENDER SUPPLEMENT               AUGMENTING  LENDER  SUPPLEMENT,  dated  __________,  20___  (this  “Supplement”) by and among each of the signatories hereto, to the Third Amended and Restated Credit  Agreement, dated as of September 24, 2019 (as amended, restated, supplemented or otherwise modified  from time  to time,  the  “Credit Agreement”), among Materion Corporation (the “Company”), Materion  Netherlands B.V., the other Foreign Subsidiary Borrowers from time to time party thereto, the Lenders  party  thereto  and  JPMorgan  Chase  Bank,  N.A.,  as  administrative  agent  (in  such  capacity,  the  “Administrative Agent”).                                  W I T N E S S E T H               WHEREAS,  the  Credit  Agreement  provides  in Section 2.20 thereof  that  any  bank,  financial  institution  or  other  entity  may  [extend  Commitments]  [and]  [participate  in  tranches  of  Incremental Term Loans] under the Credit Agreement subject to the approval of the Company and the  Administrative Agent,  by  executing  and  delivering  to  the  Company  and  the  Administrative  Agent  a  supplement to the Credit Agreement in substantially the form of this Supplement; and               WHEREAS, the undersigned Augmenting Lender was not an original party to the Credit  Agreement but now desires to become a party thereto;               NOW, THEREFORE, each of the parties hereto hereby agrees as follows:               1.   The  undersigned  Augmenting  Lender  agrees  to  be  bound  by  the  provisions  of  the  Credit  Agreement  and  agrees  that  it  shall,  on  the  date  of  this  Supplement,  become  a  Lender  for  all  purposes of the Credit Agreement to the same extent as if originally a party thereto, with a [Commitment  with  respect to  Revolving  Loans  of  $[__________]] [and]  [a  commitment  with  respect to  Incremental  Term Loans of $[__________]].               2.   The  undersigned  Augmenting  Lender  (a) represents  and  warrants  that  it  is  legally  authorized to enter into this Supplement; (b) confirms that it has received a copy of the Credit Agreement,  together with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as  applicable, and has reviewed such other documents and information as it has deemed appropriate to make  its own credit analysis and decision to enter into this Supplement; (c) agrees that it will, independently  and without reliance upon the Administrative Agent 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 Credit Agreement or any other instrument or document furnished  pursuant hereto or thereto; (d) appoints and authorizes the Administrative Agent to take such action as  agent on its behalf and to exercise such powers and discretion under the Credit Agreement or any other  instrument or document furnished pursuant hereto or thereto as are delegated to the Administrative Agent  by the terms thereof, together with such powers as are incidental thereto; and (e) agrees that it will be  bound by the provisions of the Credit Agreement and will perform in accordance with its terms all the  obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender.               3.  The undersigned’s address for notices for the purposes of the Credit Agreement is as  follows:                     [___________]                                             

 

               4.  The Company hereby represents and warrants that no Default or Event of Default has  occurred and is continuing on and as of the date hereof (or, with respect to any Incremental Term Loans  in respect of a Limited Conditionality Acquisition, no Event of Default under Section 7.01(a), (b), (h), (i)  or (j) has occurred and is continuing).               5.  Terms defined in the Credit Agreement shall have their defined meanings when used  herein.               6.  This Supplement shall be governed by, and construed in accordance with, the laws of  the State of New York, without regard to its conflicts of laws principles.               7.   This  Supplement  may  be  executed  in  any  number  of  counterparts  and  by  different  parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original  and all of which taken together shall constitute one and the same document.                        [remainder of this page intentionally left blank]                                          2    

 

               IN  WITNESS  WHEREOF,  each  of  the  undersigned  has  caused  this  Supplement  to  be  executed and delivered by a duly authorized officer on the date first above written.                                       [INSERT NAME OF AUGMENTING LENDER]                                       By:                                                                          Name:                                      Title:   Accepted and agreed to as of the date first written above:   MATERION CORPORATION    By:                             Name:  Title:   [OTHER BORROWERS]    By:                             Name:  Title:   Acknowledged as of the date first written above:   JPMORGAN CHASE BANK, N.A.  as Administrative Agent    By:                             Name:  Title:                                             3    

 

                                  EXHIBIT E                            LIST OF CLOSING DOCUMENTS                             MATERION CORPORATION                    CERTAIN FOREIGN SUBSIDIARY BORROWERS                                CREDIT FACILITIES                                  September 24, 2019                            LIST OF CLOSING DOCUMENTS1                              A.    LOAN DOCUMENTS   1.    Third  Amended  and  Restated  Credit  Agreement  (the  “Credit  Agreement”)  by  and  among        Materion  Corporation,  an  Ohio  corporation  (the  “Company”),  Materion  Netherlands  B.V.,  the        other  Foreign  Subsidiary  Borrowers  from  time  to  time  parties  thereto  (collectively  with  the        Company,  the  “Borrowers”),  the  institutions  from  time  to  time  parties  thereto  as  Lenders  (the        “Lenders”) and JPMorgan Chase Bank, N.A., in its capacity as Administrative Agent for itself        and the other Lenders (the “Administrative Agent”), evidencing a revolving credit facility to the        Borrowers from the Lenders in an initial aggregate principal amount of $375,000,000.                                    SCHEDULES         Schedule 2.01        –      Commitments        Schedule 2.06        –      Existing Letters of Credit        Schedule 3.01        –      Subsidiaries        Schedule 6.01        –      Existing Indebtedness        Schedule 6.02        –      Existing Liens        Schedule 6.04        –      Existing Investments                                      EXHIBITS         Exhibit A           –       Form of Assignment and Assumption        Exhibit B           –       [Intentionally Omitted]        Exhibit C           –       Form of Increasing Lender Supplement        Exhibit D           –       Form of Augmenting Lender Supplement        Exhibit E           –       List of Closing Documents        Exhibit F-1         –       Form of Borrowing Subsidiary Agreement        Exhibit F-2         –       Form of Borrowing Subsidiary Termination        Exhibit G-1         –       Form of Borrowing Request        Exhibit G-2         –       Form of Interest Election Request        Exhibit H           –       Form of Note                                                           1 Each  capitalized  term  used  herein  and  not  defined  herein  shall  have  the  meaning  assigned  to  such  term  in  the  above-defined  Credit  Agreement.   Items  appearing  in bold and italics shall  be  prepared  and/or  provided by  the  Company and/or Company’s counsel                                            

 

   2.    Notes  executed  by  the  initial  Borrowers  in  favor  of  each  of  the  Lenders,  if  any,  which  has        requested a note pursuant to Section 2.10(e) of the Credit Agreement.   3.    Third  Amended  and  Restated  Guaranty  executed  by  the  initial  Subsidiary  Guarantors        (collectively with the Borrowers, the “Loan Parties”) in favor of the Administrative Agent.   4.    Third  Amended  and  Restated  Pledge  and  Security  Agreement  executed  by  the  Loan  Parties,        together  with, pledged instruments  and allonges,  stock  certificates, stock  powers  executed  in        blank, pledge instructions and acknowledgments, as appropriate.         Exhibit A   –     Legal  and  Prior  Names;  Principal  Place  of  Business  and  Chief                          Executive Office; FEIN; State Organization Number and Jurisdiction                          of Incorporation; Properties Leased by the Grantors; Properties Owned                          by the Grantors; Public Warehouses or Other Locations        Exhibit B   –     Deposit Accounts; Securities Accounts        Exhibit C   –     Letter of Credit Rights; Chattel Paper        Exhibit D   –     Patents, Copyrights and Trademarks Protected under Federal Law        Exhibit E   –     Aircraft/Engines,  Ships,  Railcars  and  Other  Vehicles  Governed  by                          Federal Statute        Exhibit G   –     List of Instruments, Pledged Securities and other Investment Property        Exhibit H   –     Form of Amendment to Security Agreement        Exhibit I   –     Excluded Assets        Exhibit J   –     Commercial Tort Claims   5.    Confirmation  Agreement  executed  by  Materion Advanced  Material Technologies  and  Services        Inc.,  as  Pledgor,  the  Administrative  Agent,  as  Pledgee,  and  Materion  Netherlands  B.V.,  as        Company (each term as defined therein).   6.    Confirmatory  Grant  of  Security  Interest  in  United  States  Patents  made  by  certain  of  the  Loan        Parties in favor of the Administrative Agent for the benefit of the Holders of Secured Obligations.         Exhibit A   –     Schedule of Patents   7.    Confirmatory  Grants  of  Security  Interest  in  United  States  Trademarks  made  by  certain  of  the        Loan  Parties  in favor  of  the  Administrative  Agent  for  the  benefit  of  the  Holders  of  Secured        Obligations.         Exhibit A   –     Schedule of Trademarks   8.    Confirmatory Grants of Security Interest in United States Copyrights made by certain of the Loan        Parties in favor of the Administrative Agent for the benefit of the Holders of Secured Obligations.         Exhibit A   –     Schedule of Copyrights                              B.    UCC DOCUMENTS   9.    UCC, tax lien and name variation search reports naming each Loan Party from the appropriate        offices in relevant jurisdictions.   10.   UCC financing statements naming each Loan Party as debtor and the  Administrative  Agent as        secured party as filed with the appropriate offices in applicable jurisdictions.                                         2    

 

                          C.    CORPORATE DOCUMENTS   11.   Certificate  of  the  Secretary  or  an  Assistant  Secretary  of  each  Loan  Party  certifying  (i) that        there have been no changes in the Certificate of Incorporation or other charter document of        such Loan Party, as attached thereto and as certified as of a recent date by the Secretary of        State (or analogous governmental entity) of the jurisdiction of its organization, since the date        of the certification thereof by such governmental entity, (ii) the By-Laws or other applicable        organizational document, as attached thereto, of such Loan Party as in effect on the date of        such certification, (iii) resolutions of the Board of Directors or other governing body of such        Loan Party authorizing the  execution, delivery and performance of each Loan Document to        which it is a party, and (iv) the names and true signatures of the incumbent officers of each        Loan Party authorized to sign the Loan Documents to which it is a party, and (in the case of        each Borrower) authorized to request a Borrowing or the issuance of a Letter of Credit  under        the Credit Agreement.   12.   Good  Standing  Certificate  (or  analogous  documentation  if  applicable)  for  each  Loan  Party        from  the  Secretary  of  State  (or  analogous  governmental  entity)  of  the  jurisdiction  of  its        organization, to the extent generally available in such jurisdiction.                                  D.    OPINIONS   13.   Opinion of Jones Day, counsel for the U.S. Loan Parties.   14.   Opinion of Jones Day, counsel for the Dutch Borrower.                 E.    CLOSING CERTIFICATES AND MISCELLANEOUS   15.   A Certificate signed by the Chief Financial Officer of the Company certifying the following:         (i) all of the representations and warranties of the Company set forth in the Credit Agreement        are true and correct in all material respects (or, in the case of any representation or warranty        qualified  by  materiality  or  Material  Adverse  Effect,  in  all  respects),  (ii) no  Default  has        occurred and is then continuing and (iii) after giving effect to the Transactions, the Company        and the Subsidiaries, taken as a whole, are Solvent and will be Solvent subsequent to incurring        the indebtedness in connection with the Transactions.                                             3    

 

                                 EXHIBIT F-1                                     [FORM OF]                        BORROWING SUBSIDIARY AGREEMENT               BORROWING  SUBSIDIARY  AGREEMENT  dated  as  of  [_____],  among  Materion  Corporation,  an  Ohio  corporation  (the  “Company”),  Materion  Netherlands  B.V.,  [Name  of  Foreign  Subsidiary Borrower], a [__________] (the “New Borrowing Subsidiary”), and JPMorgan Chase Bank,  N.A. as Administrative Agent (the “Administrative Agent”).               Reference is hereby made to the Third Amended and Restated Credit Agreement dated as  of September 24, 2019 (as amended, supplemented or otherwise modified from time to time, the “Credit  Agreement”), among the Company, the Foreign Subsidiary Borrowers from time to time party thereto, the  Lenders  from  time  to  time  party  thereto  and  JPMorgan  Chase  Bank,  N.A.  as  Administrative  Agent.   Capitalized terms used herein but not otherwise defined herein shall have the meanings assigned to such  terms in the Credit Agreement.  Under the Credit Agreement, the Lenders have agreed, upon the terms  and subject to the conditions therein set forth, to make Loans to certain Foreign Subsidiary Borrowers  (collectively with the Company, the “Borrowers”), and the Company and the New Borrowing Subsidiary  desire that the New Borrowing Subsidiary become a Foreign Subsidiary Borrower.  In addition, the New  Borrowing Subsidiary hereby authorizes the Company to act on its behalf as and to the extent provided  for in Article II of the Credit Agreement.  [Notwithstanding the preceding sentence, the New Borrowing  Subsidiary  hereby  designates  the  officers  designated  on  any  incumbency  certificate  delivered  to  the  Administrative  Agent  from  time  to  time  as  being  authorized  to  request  Borrowings  under  the  Credit  Agreement on behalf of the  New Subsidiary Borrower and sign this  Borrowing Subsidiary Agreement  and  the  other Loan Documents  to which the  New Borrowing Subsidiary is, or may  from time  to time  become, a party.]               Each of the Company and the New Borrowing Subsidiary represents and warrants that  the  representations  and  warranties  of  the  Company  in  the  Credit  Agreement  relating  to  the  New  Borrowing Subsidiary and this Agreement are true and correct in all material respects (or, in the case of  any representation or warranty qualified by materiality or Material Adverse Effect, in all respects) on and  as of the date hereof, other than representations given as of a particular date, in which case they shall be  true and correct in all material respects (or, in the  case of any representation or warranty qualified  by  materiality  or  Material  Adverse  Effect,  in  all  respects) as  of  that  date.   [The  Company  and  the  New  Borrowing Subsidiary further represent and warrant that the execution, delivery and performance by the  New Borrowing Subsidiary of the transactions contemplated under this Agreement and the use of any of  the proceeds raised in connection with this Agreement will not contravene or conflict with, or otherwise  constitute  unlawful  financial  assistance  under,  Sections 677  to  683  (inclusive)  of  the  United  Kingdom  Companies  Act  2006  of  England  and  Wales  (as  amended).]5 [INSERT  OTHER  PROVISIONS  REASONABLY REQUESTED BY ADMINISTRATIVE AGENT OR ITS COUNSELS]  The Company  agrees  that  the  Guarantee  of  the  Company  contained in  the  Credit  Agreement  will  apply  to  the  Obligations  of  the  New  Borrowing  Subsidiary.   Upon  execution  of  this  Agreement  by  each  of  the  Company, the New Borrowing Subsidiary and the Administrative Agent, the New Borrowing Subsidiary  shall  be  a  party  to  the Credit  Agreement  and  shall  constitute  a  “Foreign  Subsidiary  Borrower”  for  all  purposes thereof, and the New Borrowing Subsidiary hereby agrees to be bound by all provisions of the  Credit Agreement.                                                        5 To be included only if a New Borrowing Subsidiary will be a Borrower organized under the laws of England and  Wales.                                            

 

               This Agreement shall be governed by and construed in accordance with the laws of the  State of New York, without regard to its conflicts of laws principles.                                [Signature Page Follows]      

 

               IN  WITNESS  WHEREOF,  the  parties  hereto  have  caused  this  Agreement  to  be  duly  executed by their authorized officers as of the date first appearing above.                                       MATERION CORPORATION                                        By:  _________________________________                                         Name:                                         Title:                                       [NAME OF NEW BORROWING SUBSIDIARY]                                        By:  _________________________________                                         Name:                                         Title:                                       JPMORGAN CHASE BANK, N.A., as                                      Administrative Agent                                        By:  _________________________________                                         Name:                                         Title:      

 

                                    EXHIBIT F-2                                     [FORM OF]                        BORROWING SUBSIDIARY TERMINATION   JPMorgan Chase Bank, N.A.  as Administrative Agent  for the Lenders referred to below  10 South Dearborn Street  Chicago, Illinois 60603  Attention:  [__________]                                                                            [Date]   Ladies and Gentlemen:               The undersigned, Materion Corporation (the “Company”), refers to the Third Amended  and Restated Credit Agreement dated as of September 24, 2019 (as amended, supplemented or otherwise  modified  from  time  to  time,  the  “Credit  Agreement”),  among  the  Company,  the  Foreign  Subsidiary  Borrowers from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent.   Capitalized terms used and not otherwise defined herein shall have the meanings assigned to such terms  in the Credit Agreement.               The  Company  hereby  terminates  the  status  of  [______________]  (the  “Terminated  Borrowing Subsidiary”) as a Foreign Subsidiary Borrower under the Credit Agreement.  [The Company  represents and warrants that no Loans made to the Terminated Borrowing Subsidiary are outstanding as  of the date hereof and that all amounts payable by the Terminated Borrowing Subsidiary in respect of  interest  and/or  fees  (and,  to  the  extent  notified  by  the  Administrative  Agent  or  any  Lender,  any  other  amounts payable under the Credit Agreement) pursuant to the Credit Agreement have been paid in full on  or prior to the date hereof.] [The Company acknowledges that the Terminated Borrowing Subsidiary shall  continue to be a Borrower until such time as all Loans made to the Terminated Borrowing Subsidiary  shall have been prepaid and all amounts payable by the Terminated Borrowing Subsidiary in respect of  interest  and/or  fees  (and,  to  the  extent  notified  by  the  Administrative  Agent  or  any  Lender,  any  other  amounts payable under the Credit Agreement) pursuant to the Credit Agreement shall have been paid in  full; provided that  the  Terminated  Borrowing  Subsidiary  shall  not  have  the  right  to  make  further  Borrowings under the Credit Agreement.]                                [Signature Page Follows]      

 

               This instrument shall be construed in accordance with and governed by the laws of the  State of New York, without regard to its conflicts of laws principles.                                       Very truly yours,                                       MATERION CORPORATION                                       By:                                                                             Name:                                         Title:   Copy to: JPMorgan Chase Bank, N.A.         10 South Dearborn Street         Chicago, Illinois 60603         

 

                                   EXHIBIT G-1                           FORM OF BORROWING REQUEST   JPMorgan Chase Bank, N.A.,  as Administrative Agent  for the Lenders referred to below    [10 South Dearborn, L2 Floor  Chicago, Illinois 60603  Attention: JPMorgan Loan Services  Facsimile: (844) 490-5663]6    With a copy to:    JPMorgan Chase Bank, N.A.  1300 East Ninth Street, 13th Floor  Cleveland, Ohio 44114  Attention:  Steven Bagnowski  Facsimile: (216) 781-2110         Re:  Materion Corporation, et al.                                                                            [Date]   Ladies and Gentlemen:      Reference  is hereby  made  to  the  Third  Amended  and  Restated  Credit  Agreement  dated  as  of  September 24, 2019 (as the same may be amended, restated, supplemented or otherwise modified from  time  to  time,  the  “Credit  Agreement”), among  Materion  Corporation  (the “Company”),  the  Foreign  Subsidiary Borrowers from time to time party thereto, the Lenders from time to time party thereto and  JPMorgan  Chase  Bank,  N.A.,  as  administrative  agent  (in  such  capacity,  the  “Administrative  Agent”).   Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Credit  Agreement.  The [undersigned Borrower][Company, on behalf of [Foreign Subsidiary Borrower],] hereby  gives you notice pursuant to Section 2.03 of the Credit Agreement that it requests a Borrowing under the  Credit Agreement, and in that connection the [undersigned Borrower][Company, on behalf of [Foreign  Subsidiary  Borrower],]  specifies  the  following  information  with  respect  to  such  Borrowing  requested  hereby:       1.    Name of Borrower: __________   2.    Aggregate principal amount of Borrowing:7  __________   3.    Date of Borrowing (which shall be a Business Day):  __________                                                        6 If request is in respect of Revolving Loans in a Foreign  Currency, please replace this address  with the London      address from Section 9.01(a)(ii).  7 Not less than applicable amounts specified in Section 2.02(c).     

 

  4.    Type of Borrowing (ABR or Eurocurrency):  __________   5.    Interest Period and the last day thereof (if a Eurocurrency Borrowing):8  __________   6.    Agreed Currency:  __________   7.    Location and number of the applicable Borrower’s account (or any other account agreed upon by        the  Administrative  Agent  and  such  Borrower)  to  which  proceeds  of  Borrowing  are  to  be        disbursed:  __________                                [Signature Page Follows]                                                          8 Which must comply with the definition of “Interest Period” and end not later than the Maturity Date.                                         -2-  

 

           The undersigned hereby represents and warrants that the conditions to lending specified in  Section[s] [4.01 and]1 4.02 of the Credit Agreement are satisfied as of the date hereof.                                         Very truly yours,                                                                            [MATERION CORPORATION,                                      as the Company]                                      [[FOREIGN SUBSIDIARY BORROWER],                                      as a Borrower]                                                                                                                  By:______________________________                                      Name:                                       Title:                                                                                                1 To be included only for Borrowings on the Effective Date.                                            

 

                                    EXHIBIT G-2                        FORM OF INTEREST ELECTION REQUEST   JPMorgan Chase Bank, N.A.,  as Administrative Agent  for the Lenders referred to below    [10 South Dearborn, L2 Floor  Chicago, Illinois 60603  Attention: JPMorgan Loan Services  Facsimile: (844) 490-5663]1    With a copy to:    JPMorgan Chase Bank, N.A.  1300 East Ninth Street, 13th Floor  Cleveland, Ohio 44114  Attention:  Steven Bagnowski  Facsimile: (216) 781-2110         Re:  Materion Corporation, et al.                                                                            [Date]   Ladies and Gentlemen:      Reference  is hereby  made  to  the  Third  Amended  and  Restated  Credit  Agreement  dated  as  of  September 24, 2019 (as the same may be amended, restated, supplemented or otherwise modified from  time  to  time,  the  “Credit  Agreement”),  among  Materion  Corporation  (the  “Company”), the  Foreign  Subsidiary Borrowers from time to time party thereto, the Lenders from time to time party thereto and  JPMorgan  Chase  Bank,  N.A.,  as  administrative  agent  (in  such  capacity,  the  “Administrative  Agent”).   Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Credit  Agreement.  The [undersigned Borrower][Company, on behalf of [Subsidiary Borrower],] hereby gives  you notice pursuant to Section 2.08 of the Credit Agreement that it requests to continue or convert an  existing  Borrowing  under  the  Credit  Agreement,  and  in  that  connection  the  [undersigned  Borrower][Company, on behalf of [Foreign Subsidiary Borrower],] specifies the  following information  with respect to such continuation or conversion requested hereby:        1.    List Borrower, date, Type, principal amount, Agreed Currency and Interest Period (if applicable)        of existing Borrowing and portion thereof subject to this interest election:  __________   2.    Aggregate principal amount of resulting Borrowing:  __________   3.    Effective date of interest election (which shall be a Business Day):  __________                                                        1 If request is in respect of Revolving Loans in a Foreign  Currency, please replace this address  with the London      address from Section 9.01(a)(ii).     

 

   4.    Type of Borrowing (ABR or Eurocurrency):  __________   5.    Interest Period and the last day thereof (if a Eurocurrency Borrowing):2  __________   6.    Agreed Currency:  __________                                [Signature Page Follows]                                                          2 Which must comply with the definition of “Interest Period” and end not later than the Maturity Date.      

 

                Very truly yours,     [MATERION CORPORATION,  as the Company]  [[FOREIGN SUBSIDIARY BORROWER],  as a Borrower]                                                                                                        By:______________________________  Name:   Title:                   

 

                                      EXHIBIT H                      [FORM OF] [AMENDED AND RESTATED] NOTE                                                                  [________], 20[__]         FOR VALUE RECEIVED, the undersigned, [BORROWER], a [__________] (the “Borrower”),  HEREBY  UNCONDITIONALLY  PROMISES  TO  PAY  to [LENDER] (the  “Lender”)  the  aggregate  unpaid  Dollar  Amount  of  all  Loans  made  by  the  Lender  to  the  Borrower  pursuant  to  the  “Credit  Agreement” (as defined below) on the Maturity Date or on such earlier date as may be required by the  terms of the Credit Agreement.  Capitalized terms used herein and not otherwise defined herein are as  defined in the Credit Agreement.               The  undersigned  Borrower promises  to pay interest on the  unpaid principal amount of  each Loan made to it from the date of such Loan until such principal amount is paid in full at a rate or  rates per annum determined in accordance with the terms of the Credit Agreement.  Interest hereunder is  due and payable at such times and on such dates as set forth in the Credit Agreement.               At the time  of each Loan, and  upon each  payment or prepayment of principal of each  Loan, the Lender shall make a notation either on the schedule attached hereto and made a part hereof, or  in such Lender’s own books and records, in each case specifying the amount of such Loan, the respective  Interest Period thereof (in the case of Eurocurrency Loans) or the amount of principal paid or prepaid  with  respect  to  such  Loan,  as  applicable; provided that  the  failure  of  the  Lender  to  make  any  such  recordation or notation shall not affect the Secured Obligations of the undersigned Borrower hereunder or  under the Credit Agreement.               This Note is one of the notes referred to in, and is entitled to the benefits of, that certain  Third  Amended  and  Restated  Credit  Agreement  dated  as  of  September  24,  2019  by  and  among  [the  Borrower, [Materion Corporation,] the [other] Foreign Subsidiary Borrowers from time  to time  parties  thereto, the financial institutions from time to time parties thereto as Lenders and JPMorgan Chase Bank,  N.A.,  as  Administrative  Agent  (as  the  same  may  be  amended,  restated,  supplemented  or  otherwise  modified  from  time  to  time,  the  “Credit  Agreement”).  The  Credit  Agreement,  among  other  things,  (i)  provides for the making of Loans by the Lender to the undersigned Borrower from time to time in an  aggregate  amount  not  to  exceed  at  any  time  outstanding  [the  Dollar  Amount  of  such  Lender’s  Commitment][such  Lender’s  Applicable  Percentage  of  the  Foreign  Subsidiary Borrower  Sublimit],  the  indebtedness of the undersigned Borrower resulting from each such Loan to it being evidenced by this  Note, and (ii) contains provisions for acceleration of the maturity hereof upon the happening of certain  stated events and also for prepayments of the principal hereof prior to the maturity hereof upon the terms  and conditions therein specified.               This Note is secured by the [Domestic] Collateral Documents. Reference is hereby made  to the Collateral Documents for a description of the collateral thereby mortgaged, warranted, bargained,  sold, released, conveyed,  assigned, transferred, pledged  and hypothecated, the nature and extent of the  security for this Note, the rights of the holder of this Note, the Administrative Agent in respect of such  security and otherwise.               Demand, presentment, protest and notice of nonpayment and protest are hereby waived  by the Borrower.      

 

               Whenever in this Note reference is made to the Administrative Agent, the Lender or the  Borrower,  such  reference  shall  be  deemed  to  include,  as  applicable,  a  reference  to  their  respective  successors and assigns.  The provisions of this Note shall be binding upon and shall inure to the benefit of  said successors and assigns.  The Borrower’s successors and assigns shall include, without limitation, a  receiver, trustee or debtor in possession of or for the Borrower.               [This Note amends and restates in its entirety that certain Note, dated as of [________],  20[__], by the Borrower in favor of the Lender (the “Original Note”) and all of the terms and provisions  of  the  Original  Note  shall  in  all  respects  be  superseded  hereby  in  their  entirety.  Notwithstanding  the  amendment and restatement of the Original Note by this Note, this Note shall not be deemed to evidence  or result in a novation or repayment and re-borrowing of the obligations evidenced by the Original Note.]                                        ****                                                         2    

 

               This Note shall be construed in accordance with and governed by the law of the State of  New York.                                        [BORROWER]                                                                                                                  By:                                                                       Name:                                      Title:                                

 

                SCHEDULE OF LOANS AND PAYMENTS OR PREPAYMENTS                                                                                                                                                                           Amount of                                                            Principal  Unpaid            Amount of Type of       Interest   Paid or    Principal  Notation  Date      Loan      Loan Currency Period/Rate Prepaid   Balance    Made By                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  2  

 

                                     EXHIBIT I-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 Third Amended and Restated Credit Agreement dated as  of September 24, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the  “Credit Agreement”), among Materion Corporation (the “Company”), the Dutch Borrower and the other  Foreign  Subsidiary  Borrowers  from  time  to  time  party  thereto  (collectively  with  the  Company,  the  “Borrowers”),  the  Lenders  from  time  to  time  party  thereto  and  JPMorgan  Chase  Bank,  N.A.,  as  administrative agent (in such capacity, the “Administrative Agent”).               Pursuant  to  the  provisions  of  Section  2.17  of  the  Credit  Agreement,  the  undersigned  hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s)  evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the  meaning of Section 881(c)(3)(A) of the  Code, (iii) it is  not a ten percent shareholder of the  Company  within the meaning of Section 871(h)(3)(B) of the Code, (iv) it is not a controlled foreign corporation  related to the Company as described in Section 881(c)(3)(C) of the Code and (v) the interest payments in  question are not effectively connected with the undersigned’s conduct of U.S. trade or business.               The  undersigned  has  furnished  the  Administrative  Agent  and  the  Company  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 on this certificate changes, the  undersigned shall promptly so inform the Company and the Administrative Agent and (2) the undersigned  shall have at all times furnished the Company 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 I-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 Third Amended and Restated Credit Agreement dated as  of September 24, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the  “Credit Agreement”), among Materion Corporation (the “Company”), the Dutch Borrower and the other  Foreign  Subsidiary  Borrowers  from  time  to  time  party  thereto  (collectively  with  the  Company,  the  “Borrowers”),  the  Lenders  from  time  to  time  party  thereto  and JPMorgan  Chase  Bank,  N.A.,  as  administrative agent (in such capacity, the “Administrative Agent”).               Pursuant  to  the  provisions  of  Section  2.17  of  the  Credit  Agreement,  the  undersigned  hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it  is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code,  (iii) it is not a ten percent shareholder of the Company within the meaning of Section 871(h)(3)(B) of the  Code,  (iv)  it  is  not  a  controlled  foreign  corporation  related  to  the  Company  as  described  in  Section  881(c)(3)(C) of the Code and (v) the interest payments in question are not effectively connected with the  undersigned’s conduct of U.S. trade or business.               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 on this certificate changes, the undersigned shall  promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such  Lender with a properly completed and currently effective certificate in either the calendar year in which  each  payment is to be  made to the  undersigned,  or in either of the two calendar years preceding such  payments.               Unless otherwise defined herein, terms defined in the Credit Agreement and used herein  shall have the meanings given to them in the Credit Agreement.   [NAME OF PARTICIPANT]   By:______________________________________  Name:  Title:   Date:  __________, 20[__]      

 

                                     EXHIBIT I-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 Third Amended and Restated Credit Agreement dated as  of September 24, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the  “Credit Agreement”), among Materion Corporation (the “Company”), the Dutch Borrower and the other  Foreign  Subsidiary  Borrowers  from  time  to  time  party  thereto  (collectively  with  the  Company,  the  “Borrowers”),  the  Lenders  from  time  to  time  party  thereto  and  JPMorgan  Chase  Bank,  N.A.,  as  administrative agent (in such capacity, the “Administrative Agent”).               Pursuant  to  the  provisions  of  Section  2.17  of  the  Credit  Agreement,  the  undersigned  hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing  this  certificate,  (ii)  its  direct  or  indirect  partners/members  are  the  sole  beneficial  owners  of  such  participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect  partners/members  is a bank extending credit pursuant to a loan  agreement entered into in the ordinary  course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its  direct or indirect partners/members is a ten percent shareholder of the Company within the meaning of  Section  871(h)(3)(B)  of  the  Code,  (v)  none  of  its  direct  or  indirect  partners/members  is  a  controlled  foreign corporation related to the Company as described in Section 881(c)(3)(C) of the Code and (vi) the  interest  payments  in  question  are  not  effectively  connected  with  the  undersigned’s  or  its  partners’/members’ conduct of a U.S. trade or business.               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  on  this  certificate  changes,  the  undersigned  shall  promptly  so  inform  such  Lender  and  (2)  the  undersigned  shall  have  at  all  times  furnished such Lender with a properly completed and currently effective certificate in either the calendar  year  in  which  each  payment  is  to  be  made  to  the  undersigned,  or  in  either  of  the  two  calendar  years  preceding such payments.               Unless otherwise defined herein, terms defined in the Credit Agreement and used herein  shall have the meanings given to them in the Credit Agreement.   [NAME OF PARTICIPANT]   By:______________________________________  Name:  Title:   Date:  __________, 20[__]      

 

                                     EXHIBIT I-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 Third Amended and Restated Credit Agreement dated as  of September 24, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the  “Credit Agreement”), among Materion Corporation (the “Company”), the Dutch Borrower and the other  Foreign  Subsidiary  Borrowers  from  time  to  time  party  thereto  (collectively  with  the  Company,  the  “Borrowers”),  the  Lenders  from  time  to  time  party  thereto  and  JPMorgan  Chase  Bank,  N.A.,  as  administrative agent (in such capacity, the “Administrative Agent”).               Pursuant  to  the  provisions  of  Section  2.17  of  the  Credit  Agreement,  the  undersigned  hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such  Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are  the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with  respect to the extension of credit pursuant to the Credit Agreement or any other Loan Document, neither  the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a  loan agreement entered into in the ordinary course of its trade or business within the meaning of Section  881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder  of the Company within the meaning of Section 871(h)(3)(B) of the Code, (v) none of its direct or indirect  partners/members  is  a  controlled  foreign  corporation  related  to  the  Company  as  described  in  Section  881(c)(3)(C) of the Code and (vi) the interest payments in question are not effectively connected with the  undersigned’s or its partners’/members’ conduct of a U.S. trade or business.               The  undersigned  has  furnished  the  Administrative  Agent  and  the  Company  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  on  this  certificate  changes,  the  undersigned  shall  promptly  so  inform  the  Company  and  the Administrative  Agent,  and  (2)  the  undersigned shall have at all times furnished the Company 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 4.1

 

EXECUTION VERSION

 

Hutchison China MediTech Limited

 

(an exempted company incorporated in the Cayman Islands)

 

1,700,000 American Depositary Shares

 

Representing

 

8,500,000 Ordinary Shares

 

(par value US$0.10 per share)

 

UNDERWRITING AGREEMENT

 

September 30, 2019

 

BofA Securities, Inc.

Goldman Sachs (Asia) L.L.C.

J.P. Morgan Securities LLC

 

as Representatives of the several Underwriters

c/o                               BofA Securities, Inc.

One Bryant Park
 New York, New York 10036

 

c/o          Goldman Sachs (Asia) L.L.C.

68th Floor, Cheung Kong Center

2 Queen’s Road Central

Hong Kong

 

c/o          J.P. Morgan Securities LLC

383 Madison Avenue

New York, New York 10179

 

Ladies and Gentlemen:

 

Hutchison China MediTech Limited, an exempted company incorporated in the Cayman Islands (the “Company”), and Hutchison Healthcare Holdings Limited, an exempted company incorporated in the British Virgin Islands (the “Selling Shareholder”), confirm their agreement with BofA Securities, Inc. (“BAML”), Goldman Sachs (Asia) LLC (“GS”), J.P. Morgan Securities LLC (“JPM”) and each of the other underwriters named in Schedule A hereto (collectively, the “Underwriters,” which term shall also include any underwriter substituted as hereinafter provided in Section 10 hereof), for whom BAML, GS and JPM are acting as representatives (in such capacity, the “Representatives”), with respect to the sale by the Selling Shareholder, and the purchase by the Underwriters, acting severally and not jointly, of the respective numbers of American Depositary Shares of the Company (“ADSs”), each representing five of the Company’s ordinary shares, par value US$0.10 per share (“Ordinary Shares”), as set forth in Schedule A hereto. The aforesaid 1,700,000 ADSs as described in the preceding sentence to be purchased by the Underwriters are herein called the “Securities.” The Ordinary Shares represented by the Securities are hereinafter called the “Shares”.

 

 

The Ordinary Shares to be represented by ADSs will be deposited pursuant to a deposit agreement, dated as of March 16, 2016 and amended on May 29, 2019, by and among the Company, Deutsche Bank Trust Company Americas, as depositary (the “Depositary”), and holders and beneficial holders from time to time of the American Depositary Receipts (the “ADRs”) issued by the Depositary and evidencing the ADSs (the “Deposit Agreement”). Each ADS will initially represent the right to receive five Ordinary Shares deposited pursuant to the Deposit Agreement.

 

The Company and the Selling Shareholder understand that the Underwriters propose to make a public offering of the Securities in accordance with the terms of this Agreement after this Agreement has been executed and delivered.

 

The Company has prepared and filed with the Securities and Exchange Commission (the “Commission”) an automatic shelf registration statement on Form F-3 (No. 333-217101), covering the public offering and sale of certain securities, including the Securities, under the Securities Act of 1933, as amended (the “1933 Act”), and the rules and regulations promulgated thereunder (the “1933 Act Regulations”), which automatic shelf registration statement became effective under Rule 462(e) under the 1933 Act Regulations. Such registration statement, as of any time, means such registration statement as amended by any post-effective amendments thereto to such time, including the exhibits and any schedules thereto at such time, the documents incorporated or deemed to be incorporated by reference therein at such time pursuant to Item 6 of Form F-3 under the 1933 Act and the documents otherwise deemed to be a part thereof as of such time pursuant to Rule 430B under the 1933 Act Regulations (“Rule 430B”), is referred to herein as the “Registration Statement”; provided, however, that the “Registration Statement” without reference to a time means such registration statement as amended by any post-effective amendments thereto as of the time of the first contract of sale for the Securities, which time shall be considered the “new effective date” of such registration statement with respect to the Securities within the meaning of paragraph (f)(2) of Rule 430B, including the exhibits and schedules thereto as of such time, the documents incorporated or deemed incorporated by reference therein at such time pursuant to Item 6 of Form F-3 under the 1933 Act and the documents otherwise deemed to be a part thereof as of such time pursuant to Rule 430B. The preliminary prospectus supplement dated September 30, 2019 relating to the Securities and the related base prospectus, dated April 3, 2017 and filed with the Commission as part of the Registration Statement on April 3, 2017 (the “Base Prospectus”), in the form first furnished or made available to the Underwriters for use in connection with the offering of the Securities, including the documents incorporated or deemed to be incorporated by reference therein pursuant to Item 6 of Form F-3 under the 1933 Act, are hereinafter collectively referred to as a “preliminary prospectus.” Promptly after execution and delivery of this Agreement, the Company will prepare and file a final prospectus supplement relating to the Securities in accordance with the provisions of Rule 430B and Rule 424(b) under the 1933 Act Regulations. The final prospectus supplement, in the form first furnished or made available to the Underwriters for use in connection with the offering of the Securities, including the documents incorporated or deemed to be incorporated by reference therein pursuant to Item 6 of Form F-3 under the 1933 Act, are hereinafter collectively referred to as the “Prospectus.”

 

The Company has also filed with the Commission a registration statement on Form F-6 (No. 333-209930) covering the registration of the ADSs under the 1933 Act (at any particular time, such registration statement, in the form then on file with the Commission, including all exhibits thereto, shall be referred to as the “ADS Registration Statement”). The Company has also filed a registration statement on Form 8-A (No. 001-37710) to register the Securities and the Shares in accordance with Section 12(b) of the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder (collectively, the “1934 Act”) (at any particular time, such registration statement, in the form then on file with the Commission, including all exhibits thereto, shall be referred to as the “1934 Act Registration Statement”).

 

For purposes of this Agreement, all references to the Registration Statement, the ADS Registration Statement, the 1934 Act Registration Statement, any preliminary prospectus, the Prospectus or any amendment or supplement to any of the foregoing shall be deemed to include the

 

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copy filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval system (or any successor system) (“EDGAR”).

 

As used in this Agreement:

 

“Applicable Time” means 8:50 A.M., New York City time, on September 30, 2019 or such other time as agreed by the Company and the Representatives.

 

“General Disclosure Package” means any Issuer General Use Free Writing Prospectuses issued at or prior to the Applicable Time, the most recent preliminary prospectus (including any documents incorporated therein by reference) that is distributed to investors prior to the Applicable Time and the information included on Schedule C-1 hereto, all considered together.

 

“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433 of the 1933 Act Regulations (“Rule 433”), including without limitation any “free writing prospectus” (as defined in Rule 405 under the 1933 Act Regulations (“Rule 405”)) relating to the Securities that is (i) required to be filed with the Commission by the Company, (ii) a “road show for an offering that is a written communication” within the meaning of Rule 433(d)(8)(i), whether or not required to be filed with the Commission, or (iii) exempt from filing with the Commission pursuant to Rule 433(d)(5)(i) because it contains a description of the Securities or of the offering that does not reflect the final terms, in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company’s records pursuant to Rule 433(g).

 

“Issuer General Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is intended for general distribution to prospective investors (other than a “bona fide electronic road show,” as defined in Rule 433 (the “Bona Fide Electronic Road Show”)), as evidenced by its being specified in Schedule C-2 hereto.

 

“Issuer Limited Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is not an Issuer General Use Free Writing Prospectus.

 

“Written Testing-the-Waters Communication” means any Testing-the-Waters Communication that is a written communication within the meaning of Rule 405 under the 1933 Act Regulations.

 

All references in this Agreement to financial statements and schedules and other information which are “contained,” “included” or “stated” (or other references of like import) in the Registration Statement, any preliminary prospectus or the Prospectus shall be deemed to include all such financial statements and schedules and other information incorporated or deemed incorporated by reference in the Registration Statement, any preliminary prospectus or the Prospectus, as the case may be; and all references in this Agreement to amendments or supplements to the Registration Statement, any preliminary prospectus or the Prospectus shall be deemed to include the filing of any document under the 1934 Act and the rules and regulations promulgated thereunder, incorporated or deemed to be incorporated by reference in the Registration Statement, such preliminary prospectus or the Prospectus, as the case may be.

 

SECTION 1.         Representations and Warranties.

 

(a)           Representations and Warranties by the Company. The Company represents and warrants to each Underwriter as of the date hereof, the Applicable Time and the Closing Time (as defined below), and agrees with each Underwriter, as follows:

 

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(i)            Registration Statement and Prospectuses. The Company meets the requirements for use of Form F-3 under the 1933 Act.  The Registration Statement is an “automatic shelf registration statement” (as defined in Rule 405) and remains effective. Each of the Registration Statement and the ADS Registration Statement has become effective under the 1933 Act. No stop order suspending the effectiveness of the Registration Statement or the ADS Registration Statement has been issued under the 1933 Act, no order preventing or suspending the use of any preliminary prospectus or the Prospectus and any amendment or supplement thereto has been issued and no proceedings for any of those purposes have been instituted or are pending or, to the Company’s knowledge, contemplated. The Company has complied with each request (if any) from the Commission for additional information. No post-effective amendments to the Registration Statement or the ADS Registration Statement have been filed.

 

 

Each of the Registration Statement and the ADS Registration Statement, at the time of its effectiveness, each deemed effective date with respect to the Underwriters pursuant to Rule 430B(f)(2) under the 1933 Act Regulations, the Applicable Time and the Closing Time, complied and will comply in all material respects with the requirements of the 1933 Act and the 1933 Act Regulations. Each preliminary prospectus, the Prospectus and any amendment or supplement thereto, at the time each was filed with the Commission, and, in each case, at the Applicable Time and the Closing Time complied and will comply in all material respects with the requirements of the 1933 Act and the 1933 Act Regulations and each preliminary prospectus and the Prospectus delivered to the Underwriters for use in connection with this offering was identical to the electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.

 

The documents incorporated or deemed to be incorporated by reference in the Registration Statement, the ADS Registration Statement, any preliminary prospectus and the Prospectus, when they became effective or at the time they were or hereafter are filed with the Commission, complied and will comply in all material respects with the requirements of the 1934 Act and the rules and regulations of the Commission under the 1934 Act (the “1934 Act Regulations”).

 

The 1934 Act Registration Statement has become effective, as provided in Section 12 of the 1934 Act.

 

(ii)           Accurate Disclosure. None of the Registration Statement, the ADS Registration Statement or any amendment thereto, at the time of its effectiveness, each deemed effective date with respect to the Underwriters pursuant to Rule 430B(f)(2) under the 1933 Act Regulations, on the date hereof or at the Closing Time, contained, contains or will contain an untrue statement of a material fact or omitted, omits or will omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. Each preliminary prospectus, at the time of filing thereof, did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. At the Applicable Time and the Closing Time, neither (A) the General Disclosure Package nor (B) any individual Issuer Limited Use Free Writing Prospectus, when considered together with the General Disclosure Package, included, includes or will include an untrue statement of a material fact or omitted, omits or will omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. Neither the Prospectus nor any amendment or supplement thereto, as of its issue date, at the time of any filing with the Commission pursuant to Rule 424(b) or at the Closing Time, included, includes or will include an untrue statement of a material fact or omitted, omits or will omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The documents incorporated or deemed to be incorporated by reference in the Registration

 

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Statement, the ADS Registration Statement, the General Disclosure Package and the Prospectus, at the time the Registration Statement or the ADS Registration Statement became effective or when such documents incorporated by reference were filed with the Commission, as the case may be, when read together with the other information in the Registration Statement, the ADS Registration Statement, the General Disclosure Package or the Prospectus, as the case may be, did not and will not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.

 

The representations and warranties in this subsection shall not apply to statements in or omissions from the Registration Statement (or any amendment thereto), the General Disclosure Package or the Prospectus (or any amendment or supplement thereto) made in reliance upon and in conformity with written information furnished to the Company by any Underwriter through BAML, GS or JPM expressly for use therein. For purposes of this Agreement, the only information so furnished shall be the information under the heading “Underwriting—Price Stabilization, Short Positions” contained in the Prospectus (collectively, the “Underwriter Information”).

 

(iii)          Issuer Free Writing Prospectuses. No Issuer Free Writing Prospectus conflicts or will conflict with the information contained in the Registration Statement or the Prospectus, including any document incorporated by reference therein, and any preliminary or other prospectus deemed to be a part thereof that has not been superseded or modified. Neither the Company nor any person acting on its behalf (within the meaning, for this paragraph only, of Rule 163(c) of the 1933 Act Regulations) has made an offer that is a written communication relating to the Securities prior to the initial filing of the Registration Statement.

 

(iv)          Certain Contents in the Registration Statement. The statements in the Registration Statement, the General Disclosure Package and the Prospectus under the headings “Prospectus Supplement Summary”, “Our Company”, “Risk Factors”, “Dividend Policy”, “Enforcement of Civil Liabilities”, “Description of the Securities—Ordinary Shares”, “Description of the Securities—Description of American Depositary Receipts”, “Plan of Distribution”, “Taxation” and “Underwriting”, insofar as such statements summarize legal matters, agreements, documents or proceedings discussed therein, are accurate and fair summaries of such legal matters, agreements, documents or proceedings and present the information required to be shown. The statements set forth in the Company’s current report on Form 6-K furnished to the Commission on July 30, 2019 under the headings “Financial Review” and “Operations Review”, insofar as such statements summarize legal matters, agreements, documents or proceedings discussed therein, are accurate and fair summaries of such legal matters, agreements, documents or proceedings and present the information required to be shown. The statements set forth in the Company’s Annual Report on Form 20-F for the financial year ended December 31, 2018 (the “Annual Report”) under the headings “Item 3. Key Information—D. Risk Factors”, “Item 4. Information on the Company—A. History and Development of the Company”, “Item 4. Information on the Company—B. Business Overview”, “Item 4. Information on the Company—B. Business Overview—Regulation”, “Item 5. Operating and Financial Review and Prospects”, “Item 6. Directors, Senior Management and Employees—B. Compensation”, “Item 6. Directors, Senior Management and Employees—C. Board Practices”, “Item 7. Major Shareholders and Related Party Transactions—B. Related Party Transactions” and “Item 10. Additional Information—E. Taxation”, insofar as such statements summarize legal matters, agreements, documents or proceedings discussed therein, are accurate and fair summaries of such legal matters, agreements, documents or proceedings and present the information required to be shown.

 

(v)           Contracts or Documents. There are no contracts or documents which are required under the 1933 Act and 1933 Act Regulations to be described in the Registration

 

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Statement, the General Disclosure Package or the Prospectus or to be filed as exhibits to the Registration Statement which have not been so described and filed as required.

 

(vi)          Group Structure. The entities set forth on Schedule D-1 hereto (collectively referred to herein as the “Group Entities”) constitute all of the entities held or controlled by the Company, other than those subsidiaries which do not constitute a “significant subsidiary” as such term is defined in Rule 1-02(w) of Regulation S-X under the 1933 Act. Other than the Group Entities, the Company does not own or control, directly or indirectly, any significant subsidiary as such term is defined in Rule 1-02(w) of Regulation S-X under the 1933 Act.

 

(vii)         Well-Known Seasoned Issuer. (A) At the original effectiveness of the Registration Statement, (B) at the time of the most recent amendment thereto for the purposes of complying with Section 10(a)(3) of the 1933 Act (whether such amendment was by post-effective amendment, incorporated report filed pursuant to Section 13 or 15(d) of the 1934 Act or form of prospectus), and (C) as of the Applicable Time, the Company was and is a “well-known seasoned issuer” (as defined in Rule 405).

 

(viii)        [Reserved.]

 

(ix)          Company Not Ineligible Issuer. At the time of filing the Registration Statement and any post-effective amendment thereto, at the earliest time thereafter that the Company or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) of the 1933 Act Regulations) of the Securities and at the date hereof, the Company was not and is not an “ineligible issuer,” as defined in Rule 405, without taking account of any determination by the Commission pursuant to Rule 405 that it is not necessary that the Company be considered an ineligible issuer.

 

(x)           Independent Accountants. The accountants who certified the financial statements and supporting schedules included in the Registration Statement, the General Disclosure Package and the Prospectus are, to the best knowledge of the Company after due inquiry, independent public accountants as required by the 1933 Act, the 1933 Act Regulations, the 1934 Act, the 1934 Act Regulations and the Public Company Accounting Oversight Board.

 

(xi)          [Reserved.]

 

(xii)         Company Financial Statements. The consolidated financial statements included or incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus, together with the related schedules and notes, present fairly the consolidated financial position of the Company and its subsidiaries at the dates indicated and the consolidated statements of operations, comprehensive income, changes in shareholders’ equity and cash flows of the Company and its subsidiaries for the periods specified; said consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) applied on a consistent basis throughout the periods involved. The supporting schedules, if any, present fairly in accordance with GAAP the information required to be stated therein. The selected financial data and the summary financial information of the Company and its subsidiaries included in the Registration Statement, the General Disclosure Package and the Prospectus present fairly the information shown therein and have been compiled on a basis consistent with that of the audited consolidated financial statements included therein. Except as included therein, no historical or pro forma financial statements or supporting schedules are required to be included, or incorporated by reference in the Registration Statement, the General Disclosure Package or the Prospectus under the 1933 Act or the 1933 Act Regulations. All disclosures contained in the Registration Statement, the General Disclosure Package or the Prospectus, or incorporated by reference therein, regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations of the Commission) comply with Regulation G of the 1934 Act and Item 10 of Regulation S-K of the

 

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1933 Act, to the extent applicable. The interactive data in eXtensible Business Reporting Language incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus fairly presents the information called for in all material respects and has been prepared in accordance with the Commission’s rules and guidelines applicable thereto.

 

(xiii)        Joint Venture Financial Statements. The consolidated financial statements included or incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus, together with the related schedules and notes, present fairly the consolidated financial positions of (a) Shanghai Hutchison Pharmaceuticals Limited and its subsidiaries at the dates indicated and the consolidated statements of income, comprehensive income, changes in equity and cash flows of Shanghai Hutchison Pharmaceuticals Limited and its subsidiaries for the periods specified, (b) Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited and its subsidiaries at the dates indicated and the consolidated statements of income, comprehensive income, changes in equity and cash flows of Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited and its subsidiaries for the periods specified and (c) Nutrition Science Partners Limited and its subsidiaries at the dates indicated and the consolidated statements of income, comprehensive income, changes in equity and cash flows of Nutrition Science Partners Limited and its subsidiaries for the periods specified; said consolidated financial statements of Shanghai Hutchison Pharmaceuticals Limited and its subsidiaries, Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited and its subsidiaries and Nutrition Science Partners Limited and its subsidiaries have been prepared in conformity with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board applied on a consistent basis throughout the periods involved. The supporting schedules, if any, present fairly in accordance with IFRS, as applicable, the information required to be stated therein. The selected financial data and the summary financial information of such entities included in the Registration Statement, the General Disclosure Package and the Prospectus present fairly the information shown therein and have been compiled on a basis consistent with that of the audited consolidated financial statements included therein.

 

(xiv)        No Material Adverse Change. Except as otherwise disclosed in the Registration Statement, the General Disclosure Package and the Prospectus since the respective dates as of which information is given therein, (A) there has been no material adverse change in the business affairs, business prospects, operations, condition (financial or otherwise), shareholders’ equity or results of operations of the Company and the Group Entities considered as one enterprise, whether or not arising in the ordinary course of business (a “Material Adverse Effect”), (B) there have been no transactions entered into by the Company or any of the Group Entities, other than those in the ordinary course of business, which are material with respect to the Company and the Group Entities considered as one enterprise, and (C) there has been no dividend or distribution of any kind declared, paid or made by the Company on any class of its ordinary shares. 

 

Since the date of the latest consolidated financial statements included in the Registration Statement, the General Disclosure Package and the Prospectus, neither of the Company nor any of the Group Entities has: (D) entered into or assumed any contract, (E) incurred or agreed to incur any liability (including any contingent liability) or other obligation, (F) acquired or disposed of or agreed to acquire or dispose of any business or any other asset or (G) assumed or acquired or agreed to assume or acquire any liabilities (including contingent liabilities), that would, in any of clauses (D) through (G) above, be material to the Company and the Group Entities, taken as a whole, and that are not otherwise disclosed in the Registration Statement, the General Disclosure Package and the Prospectus.

 

(xv)         Good Standing of the Company. The Company has been duly organized and is validly existing as a corporation in good standing under the laws of the Cayman Islands and

 

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has corporate power and authority to own, lease and operate its properties and to conduct its business as described in the Registration Statement, the General Disclosure Package and the Prospectus and to enter into and perform its obligations under this Agreement; and the Company is duly qualified as a foreign corporation to transact business and is in good standing in each other jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where the failure to so qualify or to be in good standing would not result in a Material Adverse Effect.

 

(xvi)        Good Standing of Group Entities. Each of the Group Entities has been duly organized and is validly existing in good standing (to the extent such concept is applicable) under the laws of the jurisdiction of its incorporation or organization, has corporate or similar power and authority to own, lease and operate its properties and to conduct its business as described in the Registration Statement, the General Disclosure Package and the Prospectus and is duly qualified to transact business and is in good standing in each jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where the failure to so qualify or to be in good standing would not result in a Material Adverse Effect. Except as otherwise disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, all of the issued and outstanding ordinary shares of each of the Group Entities has been duly authorized and validly issued, is fully paid and non-assessable and is owned by the Company (in such numbers as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus), directly or through subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance, claim or equity. None of the outstanding shares of ordinary shares of any Group Entity were issued in violation of the preemptive or similar rights of any securityholder of such Group Entity. The only subsidiaries of the Company are (A) the subsidiaries listed in Exhibit 21.1 to the Company’s registration statement on Form F-1 filed with the Commission on October 16, 2015 and (B) certain other subsidiaries which do not constitute a “significant subsidiary” as defined in Rule 1-02(w) of Regulation S-X under the 1933 Act.

 

(xvii)       Capitalization. The outstanding shares of ordinary shares of the Company, including the Securities to be purchased by the Underwriters from the Selling Shareholder, have been duly authorized and validly issued and are fully paid and non-assessable.  None of the outstanding shares of ordinary shares of the Company, including the Securities to be purchased by the Underwriters from the Selling Shareholder, were issued in violation of the preemptive or other similar rights of any securityholder of the Company.

 

The holders of outstanding Ordinary Shares as described in the Registration Statement, the General Disclosure Package and the Prospectus are not entitled to preemptive or other rights to acquire the Shares or the ADSs; there are no outstanding securities convertible into or exchangeable for, or warrants, rights or options to purchase from the Company, or obligations of the Company to issue, Ordinary Shares or any other class of share capital of the Company except as set forth in the Registration Statement, the General Disclosure Package or the Prospectus under the captions “Description of the Securities—Description of Ordinary Shares” and in the Annual Report under the captions “Item 6. Directors, Senior Management and Employees—B. Compensation” and “Item 7. Major Shareholders and Related Party Transactions—B. Related Party Transactions”; the Shares, when issued and delivered against payment therefor, may be freely deposited by the Company with the Depositary against issuance of ADRs evidencing ADSs; the ADSs, when issued and delivered against payment therefor, will be freely transferable by the Company to or for the account of the several Underwriters and (to the extent described in the Registration Statement, the General Disclosure Package and the Prospectus) the initial purchasers thereof; and there are no restrictions on subsequent transfers of the Shares or the ADSs under the laws of the Cayman Islands, the United Kingdom, the PRC or the United States, except as otherwise described in the Registration Statement, the General Disclosure Package and the Prospectus under the captions “Description of the Securities—Description of Ordinary Shares” and “Description of the

 

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Securities—Description of American Depositary Receipts”; except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, there are no outstanding securities convertible into or exchangeable for, or warrants, rights or options to purchase from any of the Group Entities, or obligation of any of the Group Entities to issue, equity shares or any other class of share capital of any of the Group Entities.

 

(xviii)      Material Contracts. Neither the Company nor any of the Group Entities has sent or received any notice regarding termination of, or intent not to renew (to the extent that such contracts and agreements are of the kind that is typically renewable), any of the material contracts or agreements specifically referred to, described in or incorporated by reference as an exhibit to the Registration Statement, the General Disclosure Package and the Prospectus, or filed as an exhibit to the Registration Statement, and no such termination or non-renewal has been, to the Company’s knowledge, threatened by the Company or any of the Group Entities or any other party to any such contract or agreement.

 

(xix)        Merger or Consolidations. Neither the Company nor any of the Group Entities has entered into any memorandum of understanding, letter of intent, definitive agreement or any similar agreements with respect to a merger or consolidation or a material acquisition or disposition of assets, technologies, business units or businesses.

 

(xx)         Authorization of Agreement. This Agreement has been duly authorized, executed and delivered by the Company.

 

(xxi)        Authorization of the Deposit Agreement. The Deposit Agreement has been duly authorized by the Company and constitutes a valid and legally binding agreement of the Company, enforceable in accordance with its terms, subject, as to enforceability, to bankruptcy, insolvency, reorganization and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles. Upon issuance by the Depositary of ADRs evidencing ADSs and the deposit of Shares in respect thereof in accordance with the provisions of the Deposit Agreement, such ADRs will be duly and validly issued and the persons in whose names the ADRs are registered will be entitled to the rights specified therein and in the Deposit Agreement; and the Deposit Agreement and the ADRs conform in all material respects to the descriptions thereof contained in the Registration Statement, the General Disclosure Package and the Prospectus.

 

(xxii)       Description of Securities. The Shares conform to all statements relating thereto contained in the Registration Statement, the General Disclosure Package and the Prospectus and such descriptions conform to the rights set forth in the instruments defining the same. No holder of Securities will be subject to personal liability by reason of being such a holder.

 

(xxiii)      Registration Rights. There are no persons with registration rights or other similar rights to have any securities registered for sale pursuant to the Registration Statement or otherwise registered for sale by the Company under the 1933 Act, except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus.

 

(xxiv)     Absence of Violations, Defaults and Conflicts. Neither the Company nor any of the Group Entities is (A) in violation of its charter, by-laws or similar organizational document, (B) in default in the performance or observance of any obligation, agreement, covenant or condition contained in any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, lease or other agreement or instrument to which the Company or any of the Group Entities is a party or by which it or any of them may be bound or to which any of the properties or assets of the Company or any Group Entity is subject (collectively, “Agreements and Instruments”), except for such defaults that would not, singly or in the aggregate, result in a Material Adverse Effect, or (C) in violation of any law, statute, rule, regulation, judgment, order, writ or decree (“Laws”) of any arbitrator, court, governmental body, regulatory body,

 

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administrative agency or other authority, body or agency having jurisdiction over the Company or any of the Group Entities or any of their respective properties, assets or operations (each, a “Governmental Entity”), including, without limitation, the AIM Rules for Companies issued by the London Stock Exchange plc (the “LSE”) from time to time (the “AIM Rules”), the UK Financial Services and Markets Act 2000, as amended (the “FSMA”), the UK Financial Services Act 2012 (the “FSA 2012”), all applicable rules and requirements of the LSE and the United Kingdom Financial Conduct Authority (the “FCA”), except in the case of (B) and (C) above, for such violations that would not, singly or in the aggregate, result in a Material Adverse Effect.

 

The execution, delivery and performance of this Agreement and the performance of the Deposit Agreement and the consummation of the transactions contemplated herein and therein and in the Registration Statement, the General Disclosure Package and the Prospectus and compliance by the Company with its obligations hereunder have been duly authorized by all necessary corporate action and do not and will not, whether with or without the giving of notice or passage of time or both, conflict with or constitute a breach of, or default or Repayment Event (as defined below) under, or result in the creation or imposition of any lien, charge or encumbrance upon any properties or assets of the Company or any Group Entity pursuant to, the Agreements and Instruments (except for such conflicts, breaches, defaults or Repayment Events or liens, charges or encumbrances that would not, singly or in the aggregate, result in a Material Adverse Effect), nor will such action result in any violation of the provisions of the charter, by-laws or similar organizational document of the Company or any of the Group Entities or any Laws of any Governmental Entity. As used herein, a “Repayment Event” means any event or condition which gives the holder of any note, debenture or other evidence of indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion of such indebtedness by the Company or any of the Group Entities.

 

(xxv)      No Approval Required. No Governmental License (as defined below) is required for the issue and sale of the Shares or the ADSs, for the deposit of the Shares being deposited with the Depositary against issuance of ADRs evidencing the ADSs to be delivered or the consummation by the Company of the transactions contemplated by this Agreement and the Deposit Agreement, except (A) the listing of the Securities on the Nasdaq Global Select Market (the “Nasdaq”) and the listing of the Shares on the AIM; (B) such Governmental Licenses as may be required under state securities or Blue Sky laws or any laws of jurisdictions outside the Cayman Islands, Hong Kong, the PRC and the United States in connection with the purchase and distribution of the Shares and ADSs by or for the respective accounts of the several Underwriters; and (C) such as have been already obtained or as may be required under the 1933 Act, the 1933 Act Regulations, the rules, state securities laws or the rules of Financial Industry Regulatory Authority, Inc. (“FINRA”).

 

(xxvi)     Listing of the ADSs. The ADSs are listed on the Nasdaq.

 

(xxvii)    Dividends and Other Distributions. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, all dividends and other distributions declared and payable on the Shares or the share capital of any of the Group Entities may be paid under the current laws and regulations of the Cayman Islands, Hong Kong, the PRC and any political subdivision thereof and all such dividends and other distributions will not be subject to withholding or other taxes under the current laws and regulations of the Cayman Islands, Hong Kong or the PRC or any political subdivision thereof and are currently otherwise free and clear of any other tax, withholding or deduction in the Cayman Islands, Hong Kong and the PRC or any political subdivision thereof and without the necessity of obtaining any consents, approvals, authorizations, orders, registrations, clearances or qualifications of or with any court or Governmental Entity having jurisdiction over the

 

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Company or any Group Entities or any of their respective properties in the Cayman Islands, Hong Kong and the PRC or any political subdivision thereof.

 

(xxviii)   No Underwriter Tax Liabilities. No stamp or other issuance or transfer taxes or duties and no capital gains, income, withholding or other taxes are payable by or on behalf of the Underwriters to the government of the British Virgin Islands, Hong Kong, the Cayman Islands, the PRC or any political subdivision or taxing authority thereof or therein, in connection with: (A) the deposit with the Depositary of the Shares by the Company against the issuance of ADRs evidencing the Securities, (B) the sale and delivery by the Selling Shareholder of the Shares and the Securities to or for the respective accounts of the several Underwriters, (C) the sale and delivery by the Underwriters of the Shares and the Securities to the initial purchasers thereof in the manner contemplated by this Agreement, or (D) other than nominal stamp duty if this Agreement or any other documents to be furnished hereunder is executed in or brought into the Cayman Islands, this Agreement or any other documents to be furnished hereunder. This Section 1(a)(xxviii) shall not apply to taxes on net income of an Underwriter imposed as a result of the Underwriter’s connection with the taxing jurisdiction other than a connection arising solely as a result of the transaction contemplated in this Agreement.

 

(xxix)     Absence of Labor Dispute. No labor dispute with the employees of the Company or any of the Group Entities exists or, to the knowledge of the Company, is imminent, and, to the knowledge of the Company, the Company is not aware of any existing or imminent labor disturbance by the employees of any of its or any Group Entity’s principal suppliers, manufacturers, customers or contractors, which, in either case, would result in a Material Adverse Effect.

 

(xxx)      Absence of Proceedings. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, there is no action, suit, proceeding, inquiry or investigation before or brought by any Governmental Entity now pending or, to the knowledge of the Company, threatened, against or affecting the Company or any of the Group Entities, which would reasonably be expected to result in a Material Adverse Effect, or which might materially and adversely affect their respective properties or assets or the consummation of the transactions contemplated in this Agreement or the performance by the Company of its obligations hereunder; and the aggregate of all pending legal or governmental proceedings to which the Company or any Group Entities is a party or of which any of their respective properties or assets is the subject which are not described in the Registration Statement, the General Disclosure Package and the Prospectus, including ordinary routine litigation incidental to the business, would not reasonably be expected to result in a Material Adverse Effect.

 

(xxxi)     Related Party Transactions. (A) Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, there is no material indebtedness (actual or contingent) and no material contract or arrangement is outstanding between the Company or any of the Group Entities on the one hand and any director or executive officer of the Company or any of the Group Entities or the affiliates (to the Company’s best knowledge after due inquiry) or members of the immediate families of such director or executive officer (including his/her spouse, children, any company or undertaking in which he/she holds a controlling interest) on the other hand; (B) there are no material relationships or transactions between the Company or any of the Group Entities on the one hand and their respective affiliates (to the Company’s best knowledge after due inquiry), executive officers, directors or 10% or greater shareholders on the other hand which, although required to be disclosed, in accordance with the 1933 Act and 1933 Act Regulations, are not disclosed in the Registration Statement, the General Disclosure Package and the Prospectus; and (C) none of the Company or any of the Group Entities is engaged in any material transactions with its directors, executive officers, 10% or greater shareholders, or any other affiliate (to the Company’s best knowledge after due inquiry), including any person who formerly was a

 

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director, executive officer and/or 10% or more shareholder, on terms that are not available from unrelated third parties on an arm’s length basis.

 

(xxxii)    Possession of Licenses and Permits. The Company and the Group Entities possess such permits, authorizations, permissions, clearances, certificates, qualifications, registrations, declarations, filings, licenses, franchises, concessions, orders, approvals, consents and other authorizations (collectively, “Governmental Licenses”) issued by the appropriate Governmental Entities necessary to conduct the business now operated by them as described in the Registration Statement, the General Disclosure Package and the Prospectus, and have made all necessary declarations and filings with the appropriate Governmental Entities, except where the failure so to possess, declare or file would not, singly or in the aggregate, result in a Material Adverse Effect. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, the Company and the Group Entities are in compliance with the terms and conditions of all Governmental Licenses, except where the failure so to comply would not, singly or in the aggregate, result in a Material Adverse Effect. All of the Governmental Licenses are valid and in full force and effect, except when the invalidity of such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not, singly or in the aggregate, result in a Material Adverse Effect. Neither the Company nor any of the Group Entities has received any notice of proceedings relating to the revocation or modification of any Governmental Licenses which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would result in a Material Adverse Effect.

 

(xxxiii)   Title to Property. The Company and the Group Entities have good and marketable title to all real property owned by them and good title to all other properties owned by them, in each case, free and clear of all mortgages, pledges, liens, security interests, claims, restrictions or encumbrances of any kind except such as (A) are described in the Registration Statement, the General Disclosure Package and the Prospectus or (B) would not, singly or in the aggregate, result in a Material Adverse Effect; and except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, all of the leases and subleases material to the business of the Company and the Group Entities, considered as one enterprise, and under which the Company or any of the Group Entities holds properties described in the Registration Statement, the General Disclosure Package or the Prospectus, are in full force and effect, and neither the Company nor any such Group Entity has any notice of any material claim of any sort that has been asserted by anyone adverse to the rights of the Company or any Group Entity under any of the leases or subleases mentioned above, or affecting or questioning the rights of the Company or such Group Entity to the continued possession of the leased or subleased premises under any such lease or sublease, except for claims that would not, or where the failure of such leases or subleases to be in full force and effect would not, singly or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(xxxiv)   Possession of Intellectual Property. In each case, except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, (A) each of the Company and the Group Entities owns, possesses, licenses or has other rights to use or can acquire on reasonable terms the patents and patent applications, copyrights, trademarks, service marks, trade names, Internet domain names, technology, know-how (including trade secrets and other unpatented and/or unpatentable proprietary rights) and other intellectual property necessary or used in any material respect to conduct its business in the manner in which it is being conducted and in the manner in which it is contemplated as set forth in the Registration Statement, the General Disclosure Package and the Prospectus (collectively, the “Intellectual Property”); (B) none of the Intellectual Property is unenforceable or invalid; (C) to the Company’s knowledge, the business of the Company and the Group Entities does not infringe, violate or conflict with (and neither the Company nor any of the Group Entities knows of any basis for alleging infringement, violation or conflict with) the rights of others with respect to the Intellectual Property, and neither the Company nor any of the Group Entities has received

 

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any notice alleging the same, that would reasonably be expected to have a Material Adverse Effect on the Company and the Group Entities, taken as a whole; (D) there are no pending or, to the best of the Company’s knowledge, threatened actions, suits, proceedings or claims by others that allege the Company or any of the Group Entities is infringing any patent, trade secret, trademark, service mark, copyright or other intellectual property or proprietary right (and neither the Company nor any of the Group Entities knows of any basis for any such claims) that would reasonably be expected to have a Material Adverse Effect on the Company and the Group Entities, taken as a whole; (E) neither the Company nor any of the Group Entities is in breach of, and the Company and the Group Entities have complied in all respects with all terms of, any license or other agreement relating to the Intellectual Property, except such breach or non-compliance that would not reasonably be expected to have a Material Adverse Effect on the Company or the Group Entities, taken as a whole; (F) except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, neither the Company nor any of the Group Entities is subject to any contractual non-competition or other similar restrictions or arrangements relating to the Company’s or such Group Entity’s intellectual property anywhere in the world; (G) each of the Company and the Group Entities has taken all necessary and appropriate steps to protect and preserve the confidentiality of applicable Intellectual Property (“Confidential Information”); and (H) (a) all use or disclosure of Confidential Information owned by the Company or the Group Entities by or to a third party has been pursuant to a written agreement between the Company, the Group Entities and such third party, and (b) all use or disclosure of Confidential Information not owned by the Company or the Group Entities has been pursuant to the terms of a written agreement between the Company, the Group Entities, and the owner of such Confidential Information, or is otherwise lawful, except that in either case the failure to do so would not reasonably be expected to have a Material Adverse Effect.

 

(xxxv)    Environmental Laws. Except as described in the Registration Statement, the General Disclosure Package and the Prospectus or would not, singly or in the aggregate, reasonably be expected to have a Material Adverse Effect (A) none of the Company or any of the Group Entities is in violation of any applicable federal, state, local or foreign statute, law, rule, regulation, ordinance, code, policy or rule of common law or any judicial or administrative interpretation thereof, including any judicial or administrative order, consent, decree or judgment, relating to pollution or protection of human health, the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata) or wildlife, including, without limitation, laws and regulations relating to the release or threatened release of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum or petroleum products, asbestos-containing materials or mold (collectively, “Hazardous Materials”) or to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials (collectively, “Environmental Laws”), (B) the Company and the Group Entities have all permits, authorizations and approvals required under any applicable Environmental Laws and are each in compliance with their requirements, (C) there are no pending or, to the Company’s knowledge, threatened administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation, investigations or proceedings relating to any Environmental Law against the Company or any of the Group Entities and (D) there are no events or circumstances that, to the Company’s knowledge, would reasonably be expected to form the basis of an order for clean-up or remediation, or an action, suit or proceeding by any private party or Governmental Entity, against or affecting the Company or any of the Group Entities relating to Hazardous Materials or any Environmental Laws.

 

(xxxvi)   Accounting Controls. The Company and each of the Group Entities maintain a system of internal accounting controls sufficient to provide reasonable assurances that (A) transactions are executed in accordance with management’s general or specific authorization; (B) transactions are recorded as necessary to permit preparation of the Company’s consolidated financial statements in conformity with GAAP and to maintain accountability for assets; (C)

 

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access to assets is permitted only in accordance with management’s general or specific authorization; (D) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences; and (E) the interactive data in eXtensible Business Reporting Language incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus fairly presents the information called for in all material respects and is prepared in accordance with the Commission’s rules and guidelines applicable thereto. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, since the end of the Company’s most recent audited fiscal year, there has been (1) no material weakness in the Company’s internal control over financial reporting (whether or not remediated) and (2) no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

The Company and each of the entities set forth on Schedule D-2 hereto (collectively referred to herein as the “Consolidated Group Entities”) maintain effective “internal control over financial reporting” (as defined under Rule 13a-15 and 15d-15 under the 1934 Act Regulations) and an effective system of “disclosure controls and procedures” (as defined in Rule 13a-15 and Rule 15d-15 under the 1934 Act Regulations) that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms, and is accumulated and communicated to the Company’s management, including its principal executive officer or officers and principal financial officer or officers, as appropriate, to allow timely decisions regarding disclosure.

 

(xxxvii)                  Operating and Financial Review and Prospects. The section entitled “Item 5. Operating and Financial Review and Prospects—A. Operating Results” (the “OFR”) in the Annual Report fairly and accurately in all material respects describes: (A) accounting policies which the Company believes are the most important in the portrayal of the Company’s financial condition and results of operations and which require management’s most difficult, subjective or complex judgments (“Critical Accounting Policies”); (B) judgments and uncertainties affecting the application of Critical Accounting Policies; and (C) the likelihood that materially different amounts would be reported under different conditions or using different assumptions; and the Company’s board of directors and management have reviewed and agreed with the selection, application and disclosure of Critical Accounting Policies and have consulted with its legal counsel and independent public accountants with regard to such disclosure.

 

The OFR fairly and accurately in all material respects describes: (A) all material trends, demands, commitments, events, uncertainties and risks, and the potential effects thereof, that the Company believes would materially affect liquidity, financial condition or results of operations of the Company, and are reasonably likely to occur; and (B) all off-balance sheet transactions, arrangements, and obligations that are reasonably likely to have a material effect on the liquidity of the Company or the Group Entities, or the availability thereof or the requirements of the Company or the Group Entities for capital resources.

 

(xxxviii)                 Compliance with the Sarbanes-Oxley Act. There is and has been no failure on the part of the Company or any of the Company’s directors or officers, in their capacities as such, to comply in all material respects with any provision of the Sarbanes-Oxley Act of 2002 and all rules and regulations promulgated thereunder or implementing the provisions thereof.

 

(xxxix)                   Payment of Taxes. The Company and the Group Entities have paid all national, local and foreign taxes required to be paid through the date hereof, except for such taxes, if any, as are being contested in good faith and as to which adequate reserves have been provided, and all returns, reports or filings which ought to have been made by or in respect of

 

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the Company and the Group Entities for taxation purposes as required by the law of the jurisdictions where the Company and the Group Entities are incorporated, managed or engage in business have been made and all such returns are correct and on a proper basis in all material respects, except where failure to pay such taxes or to make or correctly and properly file any such return, report or filing would not reasonably be expected to have a Material Adverse Effect on the Company and the Group Entities, taken as a whole; to the knowledge of the Company, no such returns, reports or filings are the subject of any dispute with the relevant revenue or other appropriate authorities except as may be being contested in good faith and by appropriate proceedings and as to which adequate reserves have been provided; the provisions included in the audited consolidated financial statements as set out in the Registration Statement, the General Disclosure Package and the Prospectus included appropriate provisions required under GAAP for all taxation in respect of accounting periods ended on or before the accounting reference date to which such audited accounts relate for which the Company was then or might reasonably be expected thereafter to become liable; and to the knowledge of the Company, neither the Company nor any of the Group Entities has received notice of any material tax deficiency with respect to the Company or any of the Group Entities.

 

(xl)          Insurance. The Company and the Group Entities carry or are entitled to the benefits of insurance, to an extent which is prudent in accordance with customary industry practice to protect the Company and the Group Entities and their respective businesses, and all such insurance is in full force and effect. The Company has no reason to believe that it or any of the Group Entities will not be able (A) to renew its existing insurance coverage as and when such policies expire or (B) to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that would not result in a Material Adverse Effect. Neither of the Company nor any of the Group Entities has been denied any insurance coverage which it has sought or for which it has applied.

 

(xli)         Investment Company Act. The Company is not required to register as an “investment company” under the Investment Company Act of 1940, as amended (the “1940 Act”).

 

(xlii)        PFIC. Based on current information and the current plans and expectations of the Company regarding the value and nature of its assets and the source and nature of its income, the Company believes that it will not be a Passive Foreign Investment Company (“PFIC”) within the meaning of Section 1297(a) of the United States Internal Revenue Code of 1986, as amended, for its taxable year ending December 31, 2019 and does not expect to be a PFIC in the foreseeable future.

 

(xliii)       FPI. The Company is a “foreign private issuer” within the meaning of Rule 405 under the 1933 Act.

 

(xliv)       FINRA. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, there are no affiliations or associations between any member of FINRA and the Company; there are no affiliations or associations between (A) any member of FINRA and (B) any of the Company’s executive officers, directors or, to the Company’s knowledge, 5% or greater security holders or any beneficial owner of the Company’s unregistered equity securities that were acquired at any time on or after the 180th day immediately preceding the date the Registration Statement was initially filed with the Commission.

 

(xlv)        No Share Offerings. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, the Company has not sold, issued or distributed any Shares during the six-month period preceding the date hereof, including any sales pursuant to Rule 144A, Regulation D or Regulation S promulgated under the 1933 Act, other than Shares

 

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issued pursuant to employee benefit plans, qualified share option plans or other employee compensation plans or pursuant to outstanding options, rights or warrants.

 

(xlvi)       Absence of Manipulation. Neither the Company nor any affiliate of the Company has taken, nor will the Company or any affiliate take, directly or indirectly, any action which is designed, or would be expected, to cause or result in, or which constitutes, the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Securities or to result in a violation of Regulation M under the 1934 Act.

 

(xlvii)      No Finder’s Fee. Except under this Agreement and for any payments to the Depositary and its custodian, there are no contracts, agreements or understandings between the Company and any person that would give rise to a valid claim against the Company or any Underwriter for a brokerage commission, finder’s fee or other like payment in connection with the issuance and sale of the Shares and the Securities.

 

(xlviii)     Foreign Corrupt Practices Act. None of the Company, any of the Group Entities or, to the knowledge of the Company, any of the corporations, partnerships, joint ventures, associations or other entities that are subsidiaries of the Company within the meaning of Rule 1-02(x) of Regulation S-X under the 1933 Act (collectively, the “Subsidiaries”) other than the Group Entities (collectively, the “Non-Group Entities”), or, to the knowledge of the Company, any director, officer, agent, employee or other representative, each of the Company or any of the Subsidiaries acting on behalf of the Company or any of the Subsidiaries is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons of the OECD Convention on Bribery of Foreign Public Official in International Business Transactions (“OECD Convention”), the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”), or any similar law or regulation to which the Company, any of the Subsidiaries, any director, officer, agent, employee or other representative of the Company or any of the Subsidiaries is subject, including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) in contravention of the FCPA and the Company, the Group Entities and, to the best of the knowledge of the Company, the Non-Group Entities and the affiliates of the Company, the Group Entities and the Non-Group Entities have conducted their businesses in compliance with the FCPA and any applicable similar law or regulation and have instituted, maintained and will continue to maintain policies and procedures designed to promote and achieve compliance with such anti-bribery and anti-corruption laws.

 

(xlix)       Money Laundering Laws. The operations of the Company, the Group Entities, and, to the knowledge of the Company, each of the Non-Group Entities are and have been conducted at all times in compliance with the money laundering statutes of all jurisdictions in which they operate, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Entity (collectively, the “Money Laundering Laws”); and no action, suit or proceeding by or before any Governmental Entity involving the Company, any of the Group Entities or, to the knowledge of the Company, any of the Non-Group Entities with respect to the Money Laundering Laws is pending or, to the best knowledge of the Company, threatened.

 

(l)            OFAC. None of the Company, any of the Group Entities, or to the knowledge of the Company, any director, officer, employee, affiliate or representative of the Company or any of the Group Entities is an individual or entity currently the subject or target of any sanctions administered by the U.S. Government (including, without limitation, the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) or the U.S. Department of State and including, without limitation, the designation as a “specially designated national” or

 

16

 

“blocked person”), the United Nations Security Council (“UNSC”), the European Union, Her Majesty’s Treasury (“HMT”), or other relevant sanctions imposed by any other governmental body to which the Company or any of the Group Entities is subject (collectively, “Sanctions”), as a result of which entry into this Agreement or the performance of any transactions contemplated herein by the Company (including, without limitation, the use of any part of the proceeds of the offering of the Shares by the Company) would cause the Company or any of the Group Entities to violate any Sanctions applicable to it, nor is the Company or any of the Group Entities located, organized or resident in a country or territory that is the subject of Sanctions (each a “Sanctioned Country”).

 

(li)           Lending Relationship. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, the Company (i) does not have any material lending or other relationship with any bank or lending affiliate of any Underwriter and (ii) does not intend to use any of the proceeds from the sale of the Securities to repay any outstanding debt owed to any affiliate of any Underwriter.

 

(lii)          Statistical and Market-Related Data. Any statistical and market-related data included in the Registration Statement, the General Disclosure Package or the Prospectus are based on or derived from sources that the Company believes, after reasonable inquiry, to be reliable and accurate and, to the extent required, the Company has obtained the written consent to the use of such data from such sources.

 

(b)           Representations and Warranties by the Selling Shareholder. The Selling Shareholder represents and warrants to each Underwriter as of the date hereof, as of the Applicable Time and as of the Closing Time, and agrees with each Underwriter, as follows:

 

(i)            Accurate Disclosure. Neither the General Disclosure Package nor the Prospectus or any amendments or supplements thereto includes any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, provided that such representations and warranties set forth in this subsection (b)(i) apply only to statements or omissions made in reliance upon and in conformity with information relating to the Selling Shareholder furnished in writing by or on behalf of the Selling Shareholder expressly for use in the Registration Statement, the General Disclosure Package, the Prospectus or any other Issuer Free Writing Prospectus or any amendment or supplement thereto (the “Selling Shareholder Information”); it being understood and agreed that the only such information furnished by such Selling Shareholder consists of the statements relating to such Selling Shareholder in the section under the heading “Selling Shareholder” in such documents.

 

(ii)           Authorization of this Agreement. This Agreement has been duly authorized, executed and delivered by or on behalf of the Selling Shareholder.

 

(iii)          Noncontravention. The execution and delivery of this Agreement and the sale and delivery of the Securities to be sold by the Selling Shareholder and the consummation of the transactions contemplated herein and compliance by the Selling Shareholder with its obligations hereunder do not and will not, whether with or without the giving of notice or passage of time or both, conflict with or constitute a breach of, or default under, or result in the creation or imposition of any tax, lien, charge or encumbrance upon the Securities to be sold by the Selling Shareholder or any property or assets of the Selling Shareholder pursuant to any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, license, lease or other agreement or instrument to which the Selling Shareholder is a party or by which the Selling Shareholder may be bound, or to which any of the property or assets of the Selling Shareholder is subject, nor will such action result in any violation of the provisions of the charter or by-laws or other organizational instrument of the Selling Shareholder, if applicable, or any applicable treaty, law, statute, rule, regulation, judgment, order, writ or decree of any

 

17

 

government, government instrumentality or court, domestic or foreign, having jurisdiction over the Selling Shareholder or any of its properties, except, in each case, for any breach, default, tax, lien, charge, encumbrance or violation that would not have an adverse effect on the ability of the Selling Shareholder to perform its obligations hereunder.

 

(iv)          Valid Title. The Selling Shareholder at the Closing Time will have valid title to the Securities to be sold by the Selling Shareholder free and clear of all security interests, claims, liens, equities or other encumbrances and the legal right and power, and all authorization and approval required by law, to enter into this Agreement and to sell, transfer and deliver the Securities to be sold by the Selling Shareholder or a valid security entitlement in respect of such Securities.

 

(v)           Absence of Manipulation. The Selling Shareholder has not taken, and will not take, directly or indirectly, any action which is designed to or which constituted or would be expected to cause or result in stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Securities.

 

(vi)          Absence of Further Requirements. No filing with, or consent, approval, authorization, order, registration, qualification or decree of any arbitrator, court, governmental body, regulatory body, administrative agency or other authority, body or agency, domestic or foreign, is necessary or required for the performance by the Selling Shareholder of its obligations hereunder, or in connection with the sale and delivery of the Securities by the Selling Shareholder hereunder or the consummation of the transactions contemplated by this Agreement or the Deposit Agreement, except such as have been already obtained or made or that, if not obtained, would not have an adverse effect on the ability of the Selling Shareholder to perform its obligations hereunder, or as may be required under the 1933 Act, the 1933 Act Regulations, the rules of the Nasdaq, state securities laws or the rules of FINRA.

 

(vii)         No Free Writing Prospectuses. The Selling Shareholder has not prepared or had prepared on its behalf or used or referred to, any “free writing prospectus” (as defined in Rule 405), and has not distributed any written materials in connection with the offer or sale of the Securities.

 

(viii)        No Association with FINRA. Neither the Selling Shareholder nor any of its affiliates directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with any member firm of FINRA or is a person associated with a member (within the meaning of the FINRA By-Laws) of FINRA.

 

(ix)          No Finder’s Fee. Except for this Agreement there are no contracts, agreements or understandings between the Selling Shareholder and any person that would give rise to a valid claim against the Selling Shareholder or any Underwriter for a brokerage commission, finder’s fee or other like payment in connection with the issuance and sale of the Securities by the Selling Shareholder.

 

(x)           Money Laundering Laws. The operations of the Selling Shareholder are and have been conducted at all times in compliance with the Money Laundering Laws applicable to it; and no action, suit or proceeding by or before any Governmental Entity involving the Selling Shareholder with respect to such Money Laundering Laws is pending or, to such Selling Shareholder’s knowledge, threatened.

 

(xi)          OFAC. None of the Selling Shareholder, or to the knowledge of the Selling Shareholder, any director, officer, employee, affiliate or representative of the Selling Shareholder is an individual or entity currently the target of any sanctions administered by the U.S. Government (including, without limitation, OFAC or the U.S. Department of State and including, without limitation, the designation as a “specially designated national” or “blocked

 

18

 

person”), UNSC, the European Union, HMT, or other relevant sanctions imposed by any other governmental body to which the Selling Shareholder is subject (collectively, “Selling Shareholder Sanctions”), as a result of which entry into this Agreement or the performance of any transactions contemplated herein by the Selling Shareholder (including, without limitation, the use of any part of the proceeds of the offering of the Shares by the Selling Shareholder) would cause the Selling Shareholder to violate any Selling Shareholder Sanctions applicable to it, nor is the Selling Shareholder located, organized or resident in a country or territory that is the subject of any Selling Shareholder Sanctions.

 

(xii)         Foreign Corrupt Practices Act. None of the Selling Shareholder or, to the knowledge of the Selling Shareholder, any of its directors, officers, employees, agents or any other person or other representative acting on behalf of the Selling Shareholder is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons of the OECD Convention, the FCPA, or any similar law or regulation to which the Selling Shareholder, any director, officer, agent, employee or other representative of the Selling Shareholder is subject, including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) in contravention of the FCPA, and the Selling Shareholder has conducted its business in compliance with the FCPA and any applicable similar law or regulation and has instituted, maintained and will continue to maintain policies and procedures designed to promote and achieve compliance with such anti-bribery and anti-corruption laws.

 

(xiii)        Material Information. As of the date hereof, as of the Applicable Time and as of the Closing Time, the sale of the Securities by the Selling Shareholder is not and will not be prompted by any material information concerning the Company which is not set forth in the Registration Statement, the General Disclosure Package or the Prospectus.

 

(xiv)        No Underwriter Tax Liabilities. No stamp or other issuance or transfer taxes or duties and no capital gains, income, withholding or other taxes are payable by or on behalf of the Underwriters to the government of the British Virgin Islands, Hong Kong or the Cayman Islands or any political subdivision or taxing authority thereof or therein, in connection with: (A) the deposit with the Depositary of the Shares by the Selling Shareholder against the issuance of ADRs evidencing the Securities, (B) the sale and delivery by the Selling Shareholder of the Shares and the Securities to or for the respective accounts of the several Underwriters, (C) the sale and delivery by the Underwriters of the Shares and the Securities to the initial purchasers thereof in the manner contemplated by this Agreement, or (D) other than nominal stamp duty if this Agreement or any other documents to be furnished hereunder is executed in or brought into the Cayman Islands, this Agreement or any other documents to be furnished hereunder. This Section 1(b)(xiv) shall not apply to taxes on net income of an Underwriter imposed as a result of the Underwriter’s connection with the taxing jurisdiction other than a connection arising solely as a result of the transaction contemplated in this Agreement.

 

(c)           Officer’s Certificates. Any certificate duly signed by any authorized officer of the Company or any of the Group Entities and delivered to the Representatives or to counsel for the Underwriters shall be deemed a representation and warranty by the Company to each Underwriter as to the matters covered thereby; and any certificate signed by or on behalf of the Selling Shareholder as such and delivered to the Representatives or to counsel for the Underwriters pursuant to the terms of this Agreement shall be deemed a representation and warranty by the Selling Shareholder to the Underwriters as to the matters covered thereby.

 

SECTION 2.         Sale and Delivery to the Underwriters; Closing.

 

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(a)           The Securities. On the basis of the representations and warranties herein contained and subject to the terms and conditions herein set forth, the Selling Shareholder agrees to sell to each Underwriter, severally and not jointly, and each Underwriter, severally and not jointly, agrees to purchase from the Selling Shareholder, at the price per ADS as set forth in Schedule A (the “Purchase Price”) the number of the Securities set forth in Schedule A opposite the name of such Underwriter, plus any additional number of the Securities which such Underwriter may become obligated to purchase pursuant to the provisions of Section 10 hereof, subject, in each case, to such adjustments among the Underwriters as the Representatives in their sole discretion shall make to eliminate any sales or purchases of fractional ADSs.

 

(b)           [Reserved]

 

(c)           Payment. Payment of the Purchase Price for, and delivery of the Securities shall be made through the facilities of the DTC, or as otherwise agreed upon by the Representatives and the Selling Shareholder, at 9:00 A.M. (New York City time) on the second (third, if the pricing occurs after 4:30 P.M. (New York City time) on any given day) business day after the date hereof (unless postponed in accordance with the provisions of Section 10), or such other time not later than ten business days after such date as shall be agreed upon by the Representatives and the Selling Shareholder (such time and date of payment and delivery being herein called “Closing Time”).

 

Payment shall be made to the Selling Shareholder by wire transfer of immediately available funds to the bank account(s) designated by the Selling Shareholder against delivery to the Representatives for the respective accounts of the Underwriters of the Securities to be purchased by each of the Underwriters. Each Underwriter has authorized the Representatives, for its account, to accept delivery of, receipt for, and make payment of the Purchase Price for, the Securities which it has agreed to purchase. The Representatives, individually and not as representative of the Underwriters, may (but shall not be obligated to) make payment of the Purchase Price for the Securities to be purchased by any Underwriter whose funds have not been received by the Closing Time, but such payment shall not relieve such Underwriter from its obligations hereunder.

 

SECTION 3.         Covenants of the Company and the Selling Shareholder. The Company and, solely with respect to the first sentence of Section 3(k), Section 3(q), Section 3(s), Section 3(u), Section 3(v) and Section 3(x) below, the Selling Shareholder covenant with each Underwriter as follows:

 

(a)           Compliance with Securities Regulations and Commission Requests. The Company, subject to Section 3(b), will comply with the requirements of Rule 430B, and will notify the Representatives immediately, and confirm the notice in writing, (i) when any post-effective amendment to the Registration Statement shall become effective or any amendment or supplement to the Prospectus shall have been filed, (ii) of the receipt of any comments from the Commission, (iii) of any request by the Commission for any amendment to the Registration Statement or any amendment or supplement to the Prospectus, including any document incorporated by reference therein, or for additional information, (iv) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or any post-effective amendment or of any order preventing or suspending the use of any preliminary prospectus or the Prospectus, or of the suspension of the qualification of the Securities for offering or sale in any jurisdiction, or of the initiation or threatening of any proceedings for any of such purposes or of any examination pursuant to Section 8(d) or 8(e) of the 1933 Act concerning the Registration Statement and (v) if the Company becomes the subject of a proceeding under Section 8A of the 1933 Act in connection with the offering of the Securities. The Company will effect all filings required under Rule 424(b), in the manner and within the time period required by Rule 424(b) (without reliance on Rule 424(b)(8)), and will take such steps as it deems necessary to ascertain promptly whether the form of prospectus transmitted for filing under Rule 424(b) was received for filing by the Commission and, in the event that it was not, it will promptly file such prospectus. The Company will make every reasonable effort to prevent the issuance of any stop order, prevention or suspension and, if any such order is issued, to obtain the lifting thereof at the earliest possible moment. The Company has paid or shall pay the required Commission filing fees relating to the Securities within the

 

20

 

time required by Rule 456(b)(1)(i) under the 1933 Act Regulations without regard to the proviso therein and otherwise in accordance with Rules 456(b) and 457(r) under the 1933 Act Regulations (including, if applicable, by updating the “Calculation of Registration Fee” table in accordance with Rule 456(b)(1)(ii) either in a post-effective amendment to the Registration Statement or on the cover page of a prospectus filed pursuant to Rule 424(b)).

 

(b)           Continued Compliance with Securities Laws. The Company will comply with the 1933 Act, the 1933 Act Regulations, the 1934 Act and the 1934 Act Regulations so as to permit the completion of the distribution of the Securities as contemplated in this Agreement and in the Registration Statement, the General Disclosure Package and the Prospectus. If at any time when a prospectus relating to the Securities is (or, but for the exception afforded by Rule 172 of the 1933 Act Regulations (“Rule 172”), would be) required by the 1933 Act to be delivered in connection with sales of the Securities, any event shall occur or condition shall exist as a result of which it is necessary, in the opinion of counsel for the Underwriters or for the Company, to (i) amend the Registration Statement in order that the Registration Statement will not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) amend or supplement the General Disclosure Package or the Prospectus in order that the General Disclosure Package or the Prospectus, as the case may be, will not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein not misleading in the light of the circumstances existing at the time it is delivered to a purchaser, or (iii) amend the Registration Statement or amend or supplement the General Disclosure Package or the Prospectus, as the case may be, in order to comply with the requirements of the 1933 Act or the 1933 Act Regulations, the Company will promptly (A) give the Representatives notice of such event, (B) prepare any amendment or supplement as may be necessary to correct such statement or omission or to make the Registration Statement, the General Disclosure Package or the Prospectus comply with such requirements and, a reasonable amount of time prior to any proposed filing or use, furnish the Representatives with copies of any such amendment or supplement and (C) file with the Commission any such amendment or supplement; provided that the Company shall not file or use any such amendment or supplement to which the Representatives or counsel for the Underwriters shall reasonably object. The Company will furnish to the Underwriters such number of copies of such amendment or supplement as the Underwriters may reasonably request. The Company has given the Representatives notice of any filings made pursuant to the 1934 Act or the 1934 Act Regulations within 48 hours prior to the Applicable Time; the Company will give the Representatives notice of its intention to make any such filing from the Applicable Time to the Closing Time and will furnish the Representatives with copies of any such documents a reasonable amount of time prior to such proposed filing, as the case may be, and will not file or use any such document to which the Representatives or counsel for the Underwriters shall reasonably object.

 

(c)           Delivery of Registration Statements. The Company has furnished or will deliver to the Representatives and counsel for the Underwriters, without charge, electronic copies of the Registration Statement as originally filed and each amendment thereto (including exhibits filed therewith or incorporated by reference therein and documents incorporated or deemed to be incorporated by reference therein) and copies of all signed consents and certificates of experts, and will also deliver to the Representatives, without charge, a conformed electronic copy of the Registration Statement as originally filed and each amendment thereto (without exhibits) for each of the Underwriters. The copies of the Registration Statement and each amendment thereto furnished to the Underwriters will be identical to the electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.

 

(d)           Delivery of Prospectuses. The Company has delivered to each Underwriter, without charge, electronic copies of each preliminary prospectus, and the Company hereby consents to the use of such copies for purposes permitted by the 1933 Act. The Company will furnish to each Underwriter, without charge, during the period when a prospectus relating to the Securities is (or, but for the exception afforded by Rule 172, would be) required to be delivered under the 1933 Act, electronic copies of the Prospectus (as amended or supplemented). The Prospectus and any amendments or

 

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supplements thereto furnished to the Underwriters will be identical to the electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.

 

(e)           Blue Sky Qualifications. The Company will use its reasonable efforts, in cooperation with the Underwriters, to qualify the Securities for offering and sale under the applicable securities laws of such states and other jurisdictions (domestic or foreign) as the Representatives may designate and to maintain such qualifications in effect so long as required to complete the distribution of the Securities; provided, however, that the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject.

 

(f)            Rule 158. The Company will timely file such reports pursuant to the 1934 Act as are necessary in order to make generally available to its securityholders as soon as practicable an earnings statement for the purposes of, and to provide to the Underwriters the benefits contemplated by, the last paragraph of Section 11(a) of the 1933 Act.

 

(g)           [Reserved.]

 

(h)           [Reserved.]

 

(i)            [Reserved]

 

(j)            Reporting Requirements. The Company, during the period when a Prospectus relating to the Securities is (or, but for the exception afforded by Rule 172, would be) required to be delivered under the 1933 Act, will file all documents required to be filed with the Commission pursuant to the 1934 Act within the time periods required by the 1934 Act and 1934 Act Regulations.

 

(k)           Issuer Free Writing Prospectuses. Each of the Company and the Selling Shareholder agrees that, unless it obtains the prior written consent of the Representatives, it will not make any offer relating to the Securities that would constitute an Issuer Free Writing Prospectus or that would otherwise constitute a “free writing prospectus,” or a portion thereof, required to be filed by the Company with the Commission or retained by the Company under Rule 433; provided that the Representatives will be deemed to have consented to the Issuer Free Writing Prospectuses listed on Schedule C-2 hereto and any “road show that is a written communication” within the meaning of Rule 433(d)(8)(i) that has been reviewed by the Representatives. The Company represents that it has treated or agrees that it will treat each such free writing prospectus consented to, or deemed consented to, by the Representatives as an “issuer free writing prospectus,” as defined in Rule 433, and that it has complied and will comply with the applicable requirements of Rule 433 with respect thereto, including timely filing with the Commission where required, legending and record keeping. If at any time following issuance of an Issuer Free Writing Prospectus there occurred or occurs an event or development as a result of which such Issuer Free Writing Prospectus conflicted or would conflict with the information contained in the Registration Statement, any preliminary prospectus or the Prospectus or included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at that subsequent time, not misleading, the Company will promptly notify the Representatives and will promptly amend or supplement, at its own expense, such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission.

 

(l)            [Reserved.]

 

(m)          [Reserved.]

 

(n)           [Reserved.]

 

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(o)           [Reserved.]

 

(p)           Copies of Reports and Communications. During a period of three years from the effective date of the Registration Statement, the Company agrees to furnish to the Representatives and, upon request, to each of the other Underwriters a copy of its annual report to shareholders.

 

(q)           Deposit of Shares. The Selling Shareholder agrees, prior to the Closing Time, to deposit Shares with the Depositary in accordance with the provisions of the Deposit Agreement and otherwise to comply with the Deposit Agreement so that ADRs evidencing ADSs will be issued by the Depositary against receipt of such Shares and delivered to the Underwriters at the Closing Time.

 

(r)            Permitted Application. The Company agrees to, upon request of any Underwriter, furnish, or cause to be furnished, to such Underwriter an electronic version of the Company’s trademarks, servicemarks and corporate logo for use on the website, if any, operated by such Underwriter for the purpose of facilitating the on-line offering of the ADSs (the “Permitted Application”); provided, however, that the Permitted Application shall be used solely for the purpose described above, is granted without any fee and may not be assigned or transferred.

 

(s)            Indemnification. The Selling Shareholder agrees to indemnify and hold each of the Underwriters harmless against any documentary, stamp, transfer or similar taxes, duties or fees and any transaction levies, commissions or brokerage charges, including any interest and penalties, which are or may be required to be paid in connection with the offer and distribution of the Shares and ADSs to be sold by the Selling Shareholder and the execution and delivery of this Agreement and the Deposit Agreement.

 

(t)            Press Release. Except as required by applicable Laws, including the AIM Rules, the Company agrees to, prior to the Closing Time, issue no press release or other communication directly or indirectly and hold no press conferences with respect to the Company or any of the Group Entities, the financial condition, results of operations, business, properties, assets, or liabilities of the Company or any of the Group Entities, or the offering of the ADSs, without the Underwriters’ prior consent.

 

(u)           No Other Prospectus. Each of the Company and the Selling Shareholder, severally and not jointly, agrees not to, at any time prior to the Closing Time, directly or indirectly, offer or sell any Shares or ADSs by means of any “prospectus” (within the meaning of the 1933 Act), or use any “prospectus” (within the meaning of the 1933 Act) in connection with the offer or sale of the Shares or ADSs, in each case other than the Prospectus.

 

(v)           No Withholding. All amounts payable by the Company and the Selling Shareholder under this Agreement and in respect of the ADRs or the underlying Shares being sold by the Selling Shareholder shall be made free and clear of and without withholding or deduction for or on account of any taxes imposed, assessed or levied by the PRC, Hong Kong, the British Virgin Islands, the Cayman Islands or any authority thereof or therein. In the event that any such withholding or deduction is required by law, the Company or the Selling Shareholder, as applicable, shall pay such additional amounts as may be necessary in order that the net amounts received after such withholding or deduction shall equal the amounts that would have been received if no withholding or deduction had been made.

 

(w)          Application For Admission to Trading of Shares. Promptly after the Closing Time, the Company shall make a valid application to the London Stock Exchange for the Shares to be admitted to trading on AIM, which application has not been rejected and the Shares have been allotted, subject only to official notice of issuance.

 

(x)           Tax Forms. The Selling Shareholder shall deliver a properly completed and executed Internal Revenue Service Form W-8 or W-9 as applicable, together with all required attachments to such form, establishing its entitlement to an exemption from U.S. backup withholding sufficiently in advance of the Closing Time.

 

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SECTION 4.         Payment of Expenses.

 

(a)           Expenses. The Selling Shareholder will pay or cause to be paid all expenses incident to the performance of the Company’s and the Selling Shareholder’s obligations under this Agreement, including (i) the preparation, printing and filing of the Registration Statement (including financial statements and exhibits) as originally filed and each amendment thereto, (ii) the preparation, printing and delivery to the Underwriters of copies of each preliminary prospectus, each Issuer Free Writing Prospectus and the Prospectus and any amendments or supplements thereto and any costs associated with electronic delivery of any of the foregoing by the Underwriters to investors, (iii) the preparation, issuance and delivery of the certificates for the Securities to the Underwriters, including any stock or other transfer taxes and any stamp or other duties payable upon the sale, issuance or delivery of the Securities to the Underwriters and the initial sale of the Securities by the Underwriters as contemplated by this Agreement, (iv) the fees and disbursements of the Company’s, the Selling Shareholder’s counsels, accountants and other advisors, (v) the qualification of the Securities under securities laws in accordance with the provisions of Section 3(e) hereof, including filing fees in connection therewith, (vi) the fees and expenses of any transfer agent or registrar for the Securities, (vii) the fees and expenses incurred in connection with the listing of the Securities on the Nasdaq and the listing of the Shares on the AIM and (viii) the costs and expenses (including, without limitation, any damages or other amounts payable in connection with legal or contractual liability) associated with the reforming of any contracts for sale of the Securities made by the Underwriters caused by a breach of the representation contained in the third sentence of Section 1(a)(ii).

 

(b)           [Reserved.]

 

(c)           Termination of Agreement. If this Agreement is terminated by the Representatives in accordance with the provisions of Section 5(x), Section 9(a)(i) or (iii) or Section 11 hereof, the Selling Shareholder shall reimburse the Underwriters for all of its out-of-pocket expenses, including the reasonable fees and disbursements of counsel for the Underwriters.

 

(d)           Allocation of Expenses. The provisions of this Section shall not affect any agreement that the Company and the Selling Shareholder may make for the sharing of such costs and expenses.

 

SECTION 5.         Conditions of Underwriters’ Obligations. The obligations of the several Underwriters hereunder are subject to the accuracy of the representations and warranties of the Company and the Selling Shareholder contained herein or in certificates of any officer of the Company or any of the Group Entities or on behalf of the Selling Shareholder delivered pursuant to the provisions hereof as of the Closing Time, to the performance by the Company and the Selling Shareholder of their respective covenants and other obligations hereunder as of or before the Closing Time, and to the following further conditions:

 

(a)           Effectiveness of Registration Statement. The Registration Statement has become effective and, at the Closing Time, no stop order suspending the effectiveness of the Registration Statement or any post-effective amendment thereto has been issued under the 1933 Act, no order preventing or suspending the use of any preliminary prospectus or the Prospectus has been issued and no proceedings for any of those purposes have been instituted or are pending or, to the Company’s knowledge, contemplated; and the Company has complied with each request (if any) from the Commission for additional information. A final prospectus containing information (if any) deemed to be part of the Registration Statement at the time of effectiveness pursuant to Rule 430B shall have been filed with the Commission in the manner and within the time frame required by Rule 424 (b) without reliance on Rule 424(b)(8) or a post-effective amendment providing such information shall have been filed with, and declared effective by, the Commission in accordance with the requirements of Rule 430B. The Company shall have paid the required Commission filing fees relating to the Securities within the time frame required by Rule 456(b)(1)(i) under the 1933 Act Regulations without regard to the proviso therein and otherwise in accordance with Rules 456(b) and 457(r) under the 1933 Act Regulations and, if applicable, shall have updated the “Calculation of Registration Fee” table in accordance with Rule

 

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456(b)(1)(ii) either in a post-effective amendment to the Registration Statement or on the cover page of a prospectus filed pursuant to Rule 424(b).

 

(b)           Opinion of U.S. Counsel for Company. At the Closing Time, the Representatives shall have received the opinion, dated the Closing Time, of Gibson, Dunn & Crutcher, U.S. counsel for the Company, in form and substance reasonably satisfactory to the Representatives, together with signed or reproduced copies of such letter for each of the other Underwriters, substantially to the effect set forth in Exhibit B hereto.

 

(c)           [Reserved]

 

(d)           Opinion of U.S. Counsel for the Selling Shareholder. At the Closing Time, the Representatives shall have received the opinion, dated the Closing Time, of Gibson, Dunn & Crutcher, U.S. counsel for the Selling Shareholder, in form and substance reasonably satisfactory to the Representatives, together with signed or reproduced copies of such letter for each of the other Underwriters, substantially to the effect set forth in Exhibit C hereto.

 

(e)           Opinion of PRC Counsel for Company. At the Closing Time, the Representatives shall have received the opinion, dated the Closing Time, of King & Wood Mallesons, PRC counsel for the Company, in form and substance reasonably satisfactory to the Representatives, together with signed or reproduced copies of such letter for each of the other Underwriters.

 

(f)            Opinion of Cayman Islands Counsel for Company. At the Closing Time, the Representatives shall have received the opinion, dated the Closing Time, of Conyers Dill & Pearman, Cayman Islands counsel for the Company, in form and substance reasonably satisfactory to the Representatives, together with signed or reproduced copies of such letter for each of the other Underwriters, substantially to the effect set forth in Exhibit D hereto.

 

(g)           Opinion of British Virgin Islands Counsel for the Selling Shareholder. At the Closing Time, the Representatives shall have received the opinion, dated the Closing Time, of Conyers Dill & Pearman, British Virgin Islands counsel for the Selling Shareholder, in form and substance reasonably satisfactory to the Representatives, together with signed or reproduced copies of such letter for each of the other Underwriters, substantially to the effect set forth in Exhibit E hereto.

 

(h)           Opinion of IP Counsels. At the Closing Time, the Representatives shall have received the opinions, dated the Closing Time, of Global Patent Group, special intellectual property counsels for the Company and Zhongzi Law Office, special intellectual property counsels for the Underwriters, in form and substance reasonably satisfactory to the Representatives, together with signed or reproduced copies of such letter for each of the other Underwriters, substantially to the effect set forth in Exhibits F-1 and F-2 hereto.

 

(i)            Opinion of Counsel for the Depositary. At the Closing Time, the Representatives shall have received the opinion, dated the Closing Time, of White & Case LLP, counsel for the Depositary, in form and substance reasonably satisfactory to the Representatives, together with signed or reproduced copies of such letter for each of the other Underwriters.

 

(j)            Opinion of U.S. Counsel for Underwriters. At the Closing Time, the Representatives shall have received the opinion, dated the Closing Time, of Shearman & Sterling LLP, U.S. counsel for the Underwriters, together with signed or reproduced copies of such letter for each of the other Underwriters. In giving such opinion such counsel may rely, as to all matters governed by the laws of jurisdictions other than the law of the State of New York and the federal securities laws of the United States, upon the opinions of counsel satisfactory to the Representatives. Such counsel may also state that, insofar as such opinion involves factual matters, they have relied, to the extent they deem proper, upon certificates of officers and other representatives of the Company and the Group Entities and certificates of public officials.

 

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(k)           Opinion of PRC Counsel for Underwriters. At the Closing Time, the Representatives shall have received the opinion in form and substance satisfactory to the Underwriters, dated the Closing Time, of Jun He LLP, PRC counsel for the Underwriters, together with signed or reproduced copies of such letter for each of the other Underwriters.

 

(l)            Officers’ Certificate. At the Closing Time, the Representatives shall have received a certificate of the Chief Executive Officer of the Company and of the chief financial or chief accounting officer of the Company, dated as of the Closing Time, to the effect that:

 

(i)            the representations and warranties of the Company in Section 1(a) hereof are true and correct with the same force and effect as though expressly made at and as of the Closing Time;

 

(ii)           the Company has complied with all of its obligations hereunder to be performed or satisfied at or prior to the Closing Time; and (iii) no stop order suspending the effectiveness of the Registration Statement under the 1933 Act has been issued, no order preventing or suspending the use of any preliminary prospectus or the Prospectus has been issued and no proceedings for any of those purposes have been instituted or are pending or, to their knowledge, contemplated by the Commission.

 

(m)          Certificate of the Selling Shareholder. At the Closing Time, the Representatives shall have received a certificate of the Selling Shareholder, dated the Closing Time, to the effect that (i) the representations and warranties of the Selling Shareholder in this Agreement are true and correct with the same force and effect as though expressly made at and as of the Closing Time and (ii) the Selling Shareholder has complied with all agreements and all conditions on its part to be performed under this Agreement at or prior to the Closing Time.

 

(n)           Accountant’s Comfort Letter. At the time of the execution of this Agreement, the Representatives shall have received from PricewaterhouseCoopers and PricewaterhouseCoopers Zhong Tian LLP letters, dated such date, in form and substance reasonably satisfactory to the Representatives, together with signed or reproduced copies of such letter for each of the other Underwriters, containing statements and information of the type ordinarily included in accountants’ “comfort letters” to underwriters with respect to the financial statements and certain financial information contained in the Registration Statement, the General Disclosure Package and the Prospectus.

 

(o)           Bring-down Comfort Letter. At the Closing Time, the Representatives shall have received from PricewaterhouseCoopers and PricewaterhouseCoopers Zhong Tian LLP letters, dated as of the Closing Time, to the effect that they reaffirm the statements made in the letters furnished pursuant to subsection (n) of this Section, except that the specified date referred to shall be a date not more than three business days prior to the Closing Time.

 

(p)           Approval of Listing. At the Closing Time, the Securities shall have been approved for listing on the Nasdaq.

 

(q)           [Reserved]

 

(r)            No Objected Filing. No Registration Statement, General Disclosure Package or Prospectus shall have been filed to which the Representatives shall have objected in writing.

 

(s)            Deposit of Shares. The Depositary shall have furnished or caused to be furnished to the Representatives at the Closing Time certificates reasonably satisfactory to the Representatives evidencing the deposit with it of the Shares being so deposited against issuance of ADRs evidencing the ADSs to be delivered by the Selling Shareholder at the Closing Time, and the execution, countersignature (if applicable), issuance and delivery of ADRs evidencing such ADSs pursuant to the Deposit Agreement.

 

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(t)            Effective Deposit Agreement. The Deposit Agreement shall be in full force and effect.

 

(u)           Lock-up Agreements. At the date of this Agreement, the Representatives shall have received an agreement substantially in the form of Exhibit A hereto signed by the Selling Shareholder.

 

(v)           [Reserved]

 

(w)          Additional Documents. At the Closing Time counsel for the Underwriters shall have been furnished with such documents and opinions as they may reasonably require for the purpose of enabling them to pass upon the issuance and sale of the Securities as herein contemplated, or in order to evidence the accuracy of any of the representations or warranties, or the fulfillment of any of the conditions, herein contained.

 

(x)           Termination of Agreement. If any condition specified in this Section shall not have been fulfilled when and as required to be fulfilled, this Agreement may be terminated by the Representatives by notice to the Company and the Selling Shareholder at any time at or prior to Closing Time, and such termination shall be without liability of any party to any other party except as provided in Section 4 and except that Sections 1, 6, 7, 8, 15, 16 and 17 shall survive any such termination and remain in full force and effect.

 

SECTION 6.         Indemnification.

 

(a)           Indemnification of Underwriters by Company. The Company agrees to indemnify and hold harmless each Underwriter, its affiliates (as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”)), its selling agents and each person, if any, who controls any Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act as follows:

 

(i)            against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto), including any information deemed to be a part thereof pursuant to Rule 430B, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact included (A) in any preliminary prospectus, any Issuer Free Writing Prospectus, the General Disclosure Package or the Prospectus (or any amendment or supplement thereto), or (B) in any materials or information provided to investors by, or with the approval of, the Company in connection with the marketing of the offering of the Securities (“Marketing Materials”), including any roadshow or investor presentations made to investors by the Company (whether in person or electronically), or the omission or alleged omission in any preliminary prospectus, Issuer Free Writing Prospectus, the General Disclosure Package, the Prospectus (or any amendment or supplement thereto) or in any Marketing Materials of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;

 

(ii)           against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 6(e) below) any such settlement is effected with the written consent of the Company and the Selling Shareholder;

 

(iii)          against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Representatives), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon

 

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any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above;

 

provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in the Registration Statement (or any amendment thereto), including any information deemed to be a part thereof pursuant to Rule 430B, any Issuer Free Writing Prospectus, the General Disclosure Package or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with the Underwriter Information.

 

(b)           Indemnification of Underwriters by the Selling Shareholder. The Selling Shareholder agrees to indemnify and hold harmless each Underwriter, its Affiliates and selling agents and each person, if any, who controls any Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act to the extent and in the manner set forth in clauses (a)(i), (ii) and (iii) above; provided that the Selling Shareholder shall be liable only to the extent that such loss, liability, claim, damage or expense arises out of an untrue statement or alleged untrue statement in or omission or alleged omission from the Registration Statement, any preliminary prospectus, the General Disclosure Package, the Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus in reliance upon and in conformity with the Selling Shareholder Information, provided, further, that the liability under this subsection of the Selling Shareholder to the Underwriters, in the aggregate, shall be limited to an amount equal to the aggregate gross proceeds after underwriting commissions and discounts, but before expenses, paid to the Selling Shareholder from the sale of Securities by the Selling Shareholder hereunder.

 

(c)           Indemnification of Company, Directors and Officers and the Selling Shareholder by Underwriters. Each Underwriter severally agrees to indemnify and hold harmless the Company, its directors, each of its officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, and the Selling Shareholder against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), any preliminary prospectus, including any information deemed to be a part thereof pursuant to Rule 430B, any Issuer Free Writing Prospectus, the General Disclosure Package or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with the Underwriter Information.

 

(d)           Actions against Parties; Notification. Each indemnified party shall give written notice as promptly as reasonably practicable to each indemnifying party of any action commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified pursuant to Sections 6(a) and 6(b) above, counsel to the indemnified parties shall be selected by the Representatives, and, in the case of parties indemnified pursuant to Section 6(c) above, counsel to the indemnified parties shall be selected by the Company or the Selling Shareholder, as applicable. An indemnifying party may participate at its own expense in the defense of any such action; provided, however, that counsel to the indemnifying party shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 or Section 7 hereof (whether or not the indemnified

 

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parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.

 

(e)           Settlement without Consent if Failure to Reimburse. If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 6(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement.

 

SECTION 7.         Contribution. If the indemnification provided for in Section 6 hereof is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred, (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Selling Shareholder, on the one hand, and the Underwriters, on the other hand, from the offering of the Securities pursuant to this Agreement or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company and the Selling Shareholder, on the one hand, and of the Underwriters, on the other hand, in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations.

 

The relative benefits received by the Company and the Selling Shareholder, on the one hand, and the Underwriters, on the other hand, in connection with the offering of the Securities pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering of the Securities pursuant to this Agreement (before deducting expenses) received by the Company and the Selling Shareholder, on the one hand, and the total underwriting discount received by the Underwriters, on the other hand, in each case as set forth on the cover of the Prospectus, bear to the aggregate public offering price of the Securities as set forth on the cover of the Prospectus.

 

The relative fault of the Company and the Selling Shareholder, on the one hand, and the Underwriters, on the other hand, shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or the Selling Shareholder or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

 

The Company, the Selling Shareholder and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 7. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 7 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission.

 

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Notwithstanding the provisions of this Section 7, no Underwriter shall be required to contribute any amount in excess of the underwriting commissions received by such Underwriter in connection with the Shares underwritten by it and distributed to the public.

 

No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

 

For purposes of this Section 7, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 7 are several in proportion to the number of Securities set forth opposite their respective names in Schedule A hereto and not joint.

 

SECTION 8.         Representations, Warranties and Agreements to Survive. Subject to Section 9, all representations, warranties and agreements contained in this Agreement or in certificates of officers of the Company or the Selling Shareholder submitted pursuant hereto, shall remain operative and in full force and effect regardless of (i) any investigation made by or on behalf of any Underwriter or its Affiliates or selling agents, any person controlling any Underwriter, its officers or directors, any person controlling the Company or any person controlling the Selling Shareholder and (ii) delivery of and payment for the Securities. A successor to any Underwriter, its directors or officers or any person controlling any Underwriter, or to the Company, its directors or officers, or any person controlling the Company, shall be entitled to the benefits of the indemnity, contribution and reimbursement agreements contained in Sections 6 and 7.

 

SECTION 9.         Termination of Agreement.

 

(a)           Termination. The Representatives may terminate this Agreement, by notice to the Company and the Selling Shareholder, at any time at or prior to the Closing Time (i) if there has been, in the judgment of the Representatives, since the time of execution of this Agreement or since the respective dates as of which information is given in the Registration Statement, the General Disclosure Package or the Prospectus, any material adverse change in the condition, financial or otherwise, or in the earnings, business affairs or business prospects of the Company and the Group Entities considered as one enterprise, whether or not arising in the ordinary course of business, or (ii) if there has occurred any material adverse change in the financial markets in the United States or the international financial markets, any outbreak of hostilities or escalation thereof or other calamity or crisis or any change or development involving a prospective change in the United States, the United Kingdom, the PRC, Hong Kong, the Cayman Islands, the British Virgin Islands or international political, financial or economic conditions, in each case the effect of which is such as to make it, in the judgment of the Representatives, impracticable or inadvisable to proceed with the completion of the offering or to enforce contracts for the sale of the Securities, or (iii) if trading in any securities of the Company has been suspended or materially limited by the Commission, Nasdaq or AIM, or (iv) if trading generally on the NYSE Amex or the New York Stock Exchange or on Nasdaq or AIM has been suspended or materially limited, or minimum or maximum prices for trading have been fixed, or maximum ranges for prices have been required, by any of said exchanges or by such system or by order of the Commission, FINRA or any other governmental authority, or (v) a material disruption has occurred in commercial banking or securities settlement or clearance services in the United States, the United Kingdom, Hong Kong, the PRC, the Cayman Islands or the British Virgin Islands or with respect to the Clearstream or Euroclear systems in Europe, or (vi) if a banking moratorium has been declared in New York, the United States, London, Hong Kong, the PRC, the Cayman Islands or the British Virgin Islands.

 

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(b)           Liabilities. If this Agreement is terminated pursuant to this Section, such termination shall be without liability of any party to any other party except as provided in Section 4 hereof, and provided further that Sections 1, 6, 7, 8, 15, 16 and 17 shall survive such termination and remain in full force and effect.

 

SECTION 10.       Default by One or More of the Underwriters.  If one or more of the Underwriters shall fail at the Closing Time to purchase the Securities which it or they are obligated to purchase under this Agreement (the “Defaulted Securities”), the Representatives shall have the right, within 24 hours thereafter, to make arrangements for one or more of the non-defaulting Underwriters, or any other underwriters, to purchase all, but not less than all, of the Defaulted Securities in such amounts as may be agreed upon and upon the terms herein set forth; if, however, the Representatives shall not have completed such arrangements within such 24-hour period, then, each of the non-defaulting Underwriters shall be obligated, severally and not jointly, to purchase the full amount thereof in the proportions that their respective underwriting obligations hereunder bear to the underwriting obligations of all non-defaulting Underwriters.

 

No action taken pursuant to this Section shall relieve any defaulting Underwriter from liability in respect of its default.

 

In the event of any such default either the (i) Representatives or (ii) the Company and the Selling Shareholder shall have the right to postpone Closing Time for a period not exceeding seven days in order to effect any required changes in the Registration Statement, the General Disclosure Package or the Prospectus or in any other documents or arrangements.  As used herein, the term “Underwriter” includes any person substituted for an Underwriter under this Section 10.

 

SECTION 11.       Default by the Selling Shareholder.

 

If the Selling Shareholder shall fail at the Closing Time to sell and deliver the number of Securities which the Selling Shareholder are obligated to sell hereunder, then the Underwriters may, at option of the Representatives, by notice from the Representatives to the Company and the Selling Shareholder, may terminate this Agreement without any liability on the fault of any non-defaulting party except that the provisions of Sections 1, 4, 6, 7, 8, 15, 16 and 17 shall remain in full force and effect. No action taken pursuant to this Section 11 shall relieve the defaulting Selling Shareholder from liability, if any, in respect of such default.

 

In the event of a default by the Selling Shareholder as referred to in this Section 11, each of the Representatives and the Company shall have the right to postpone the Closing Time for a period not exceeding seven days in order to effect any required change in the Registration Statement, the General Disclosure Package or the Prospectus or in any other documents or arrangements.

 

SECTION 12.       Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted by any standard form of telecommunication. Notices to the Underwriters shall be directed to (x) BAML at One Bryant Park, New York, New York 10036, attention of Syndicate Department (facsimile: +1-646-855-3073), with a copy to ECM Legal (facsimile: +1-212-230-8730); (y) GS at Goldman Sachs (Asia) L.L.C., 68th Floor, Cheung Kong Center, 2 Queen’s Road Central, Hong Kong, and (z) JPM at 383 Madison Avenue, New York, NY 10179, attention of Equity Syndicate (facsimile: +1-212-622-8358); notices to the Company shall be directed to it at Level 18, The Metropolis Tower, 10 Metropolis Drive, Hunghom, Kowloon, Hong Kong, attention of Non-executive Director and Company Secretary (facsimile: +852-2128-1778); and notices to the Selling Shareholder shall be directed to 48th Floor, Cheung Kong Center, 2 Queen’s Road Central, Hong Kong, attention of Director and Company Secretary.

 

SECTION 13.       No Advisory or Fiduciary Relationship. Each of the Company and the Selling Shareholder acknowledges and agrees that (a) the purchase and sale of the Securities pursuant to this Agreement, including the determination of the public offering price of the Securities and any related

 

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discounts and commissions, is an arm’s-length commercial transaction between the Selling Shareholder, on the one hand, and the several Underwriters, on the other hand, (b) in connection with the offering of the Securities and the process leading thereto, each Underwriter is and has been acting solely as a principal and is not the agent or fiduciary of the Company or any of the Group Entities or the Selling Shareholder, or their respective shareholders, creditors, employees or any other party, (c) no Underwriter has assumed or will assume an advisory or fiduciary responsibility in favor of the Company or the Selling Shareholder with respect to the offering of the Securities or the process leading thereto (irrespective of whether such Underwriter has advised or is currently advising the Company or any of the Group Entities or the Selling Shareholder on other matters) and no Underwriter has any obligation to the Company or the Selling Shareholder with respect to the offering of the Securities except the obligations expressly set forth in this Agreement, (d) the Underwriters and their respective affiliates may be engaged in a broad range of transactions that involve interests that differ from those of each of the Company and the Selling Shareholder, and (e) the Underwriters have not provided any legal, accounting, regulatory or tax advice with respect to the offering of the Securities and each of the Company and the Selling Shareholder has consulted its own respective legal, accounting, regulatory and tax advisors to the extent it deemed appropriate.

 

SECTION 14.                     Parties. This Agreement shall inure to the benefit of and be binding upon each of the Underwriters, the Company and the Selling Shareholder and their respective successors. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person, firm or corporation, other than the Underwriters, the Company and the Selling Shareholder and their respective successors and the controlling persons and officers and directors referred to in Sections 6 and 7 and their heirs and legal representatives, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision herein contained. This Agreement and all conditions and provisions hereof are intended to be for the sole and exclusive benefit of the Underwriters, the Company and the Selling Shareholder and their respective successors, and said controlling persons and officers and directors and their heirs and legal representatives, and for the benefit of no other person, firm or corporation. No purchaser of Securities from any Underwriter shall be deemed to be a successor by reason merely of such purchase.

 

SECTION 15.                     Trial by Jury. The Company (on its behalf and, to the extent permitted by applicable law, on behalf of its shareholders and affiliates), the Selling Shareholder and each of the Underwriters hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

 

SECTION 16.                     GOVERNING LAW. THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF, THE STATE OF NEW YORK.

 

SECTION 17.                     Consent to Jurisdiction; Waiver of Immunity. Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby (“Related Proceedings”) shall be instituted in (i) the federal courts of the United States of America located in the City and County of New York, Borough of Manhattan or (ii) the courts of the State of New York located in the City and County of New York, Borough of Manhattan (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any such court (a “Related Judgment”), as to which such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding. Service of any process, summons, notice or document by mail to such party’s address set forth above shall be effective service of process for any suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient forum. The Company and the Selling Shareholder

 

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irrevocably appoints Corporation Service Company as its agent to receive service of process or other legal summons for purposes of any such suit, action or proceeding that may be instituted in any state or federal court in the City and County of New York. With respect to any Related Proceeding, each party irrevocably waives, to the fullest extent permitted by applicable law, all immunity (whether on the basis of sovereignty or otherwise) from jurisdiction, service of process, attachment (both before and after judgment) and execution to which it might otherwise be entitled in the Specified Courts, and with respect to any Related Judgment, each party waives any such immunity in the Specified Courts or any other court of competent jurisdiction, and will not raise or claim or cause to be pleaded any such immunity at or in respect of any such Related Proceeding or Related Judgment, including, without limitation, any immunity pursuant to the United States Foreign Sovereign Immunities Act of 1976, as amended.

 

SECTION 18.                     TIME. TIME SHALL BE OF THE ESSENCE IN THIS AGREEMENT. EXCEPT AS OTHERWISE SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.

 

SECTION 19.                     Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same Agreement.

 

SECTION 20.                     Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof.

 

SECTION 21.                     Judgment Currency. The obligation of the Company pursuant to this Agreement in respect of any sum due to any Underwriter shall, notwithstanding any judgment in a currency other than United States dollars, not be discharged until the first business day, following receipt by such Underwriter of any sum adjudged to be so due in such other currency, on which (and only to the extent that) such Underwriter may in accordance with normal banking procedures purchase United States dollars with such other currency; if the United States dollars so purchased are less than the sum originally due to such Underwriter hereunder, the Company agrees, as a separate obligation and notwithstanding any such judgment, to indemnify such Underwriter against such loss. If the United States dollars so purchased are greater than the sum originally due to such Underwriter hereunder, such Underwriter agrees to pay to the Company an amount equal to the excess of the dollars so purchased over the sum originally due to such Underwriter hereunder.

 

SECTION 22.                     Actions by the Representations. The Representatives will act for the several Underwriters in connection with the transactions contemplated by this Agreement, and any actions under this Agreement taken by the Representatives will be binding upon all the Underwriters.

 

SECTION 23.                     Recognition of the U.S. Special Resolution Regimes.

 

(a)                                 In the event that any Underwriter that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from such Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

 

(b)                                 In the event that any Underwriter that is a Covered Entity or a BHC Act Affiliate of such Underwriter becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Underwriter are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.

 

33

 

For purposes of this Section 23, a “BHC Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k). “Covered Entity” means any of the following: (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b). “Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable. “U.S. Special Resolution Regime” means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

 

SECTION 24.                     Partial Unenforceability. The invalidity or unenforceability of any Section, paragraph or provision of this Agreement shall not affect the validity or enforceability of any other Section, paragraph or provision hereof. If any Section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.

 

SECTION 25.                     Entire Agreement. This Agreement supersedes all prior agreements and understandings (whether written or oral) between the Company, the Selling Shareholder and the Underwriters, with respect to the subject matter hereof.

 

34

 

If the foregoing is in accordance with your understanding of our agreement, please sign and return to the Company and the Selling Shareholder a counterpart hereof, whereupon this instrument, along with all counterparts, will become a binding agreement among the Underwriters, the Company and the Selling Shareholder in accordance with its terms.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
HUTCHISON CHINA MEDITECH LIMITED
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christian Hogg
    
	
 
    	
 
    	
Name: Christian Hogg
    
	
 
    	
 
    	
Title: Chief Executive Officer and   Executive Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HUTCHISON HEALTHCARE HOLDINGS LIMITED
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Edith Shih
    
	
 
    	
 
    	
Name: Edith Shih
    
	
 
    	
 
    	
Title: Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
CONFIRMED AND ACCEPTED,
    	
 
    
	
 
    	
as of the date   first above written:
    	
 
    
	
 
    	
 
    
	
BOFA SECURITIES, INC.
    	
 
    
	
GOLDMAN SACHS (ASIA) L.L.C.
    	
 
    
	
J.P. MORGAN SECURITIES LLC
    	
 
    
	
 
    	
 
    
	
By: BOFA SECURITIES, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Yvonne Lo
    	
 
    
	
 
    	
Authorized Signatory
    	
 
    
	
 
    	
 
    
	
By: 
    	
GOLDMAN SACHS (ASIA) L.L.C.
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/Michael Chiu
    	
 
    
	
 
    	
Authorized Signatory
    	
 
    
	
 
    	
 
    
	
By: 
    	
J.P. MORGAN SECURITIES LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Brian Dunlap
    	
 
    
	
 
    	
Authorized Signatory
    	
 
    
					

 

For themselves and as Representatives of the other Underwriters named in Schedule A hereto.

 

35

 

SCHEDULE A

 

The public offering price per ADS for the Securities shall be US$17.65.

 

The Purchase Price per ADS to be paid by the several Underwriters shall be US$16.76, being an amount equal to the public offering price set forth above less US$0.89 per ADS.

 

	
Name of Underwriter
    	
 
    	
The Securities
    	
 
    
	
BofA   Securities, Inc.
    	
 
    	
566,667
    	
 
    
	
Goldman Sachs   (Asia) L.L.C.
    	
 
    	
566,667
    	
 
    
	
J.P. Morgan   Securities LLC
    	
 
    	
566,666
    	
 
    
	
Total
    	
 
    	
1,700,000
    	
 
    

 

Sch A-1

 

SCHEDULE B

 

[Reserved]

 

Sch B-1

 

SCHEDULE C-1

 

Pricing Terms

 

1.                                      The Selling Shareholder is selling 1,700,000 ADSs.

 

2.                                      The public offering price per ADS shall be US$17.65.

 

SCHEDULE C-2

 

Free Writing Prospectuses

 

None.

 

Sch C-1

 

SCHEDULE D-1

 

Group Entities

 

Hutchison MediPharma Limited

 

Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Company Limited

 

Hutchison Hain Organic (Hong Kong) Limited

 

Hutchison Hain Organic (Guangzhou) Limited

 

Hutchison Healthcare Limited

 

Hutchison Consumer Products Limited

 

Nutrition Science Partners Limited

 

Shanghai Hutchison Pharmaceuticals Limited

 

Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited

 

SCHEDULE D-2

 

Consolidated Group Entities

 

Hutchison MediPharma Limited

 

Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Company Limited

 

Hutchison Hain Organic (Hong Kong) Limited

 

Hutchison Hain Organic (Guangzhou) Limited

 

Hutchison Healthcare Limited

 

Hutchison Consumer Products Limited

 

Sch D-1

 

SCHEDULE E

 

[Reserved]

 

Sch E-1

 

Exhibit A

 

September 30, 2019

 

BofA Securities, Inc.

Goldman Sachs (Asia) L.L.C.

J.P. Morgan Securities LLC

 

as Representatives of the several Underwriters named in the Underwriting Agreement

c/o                                                             BofA Securities, Inc.

One Bryant Park
 New York, New York 10036

 

c/o                               Goldman Sachs (Asia) L.L.C.

68th Floor, Cheung Kong Center

2 Queen’s Road Central

Hong Kong

 

c/o                               J.P. Morgan Securities LLC

383 Madison Avenue

New York, New York 10179

 

Re:                             Proposed Public Offering by Hutchison Healthcare Holdings Limited of American Depositary Shares representing Hutchison China MediTech Limited’s ordinary shares

 

Dear Sirs:

 

The undersigned understands that BofA Securities, Inc., Goldman Sachs (Asia) L.L.C. and J.P. Morgan Securities LLC, as Representatives of the several Underwriters to be named in the Underwriting Agreement, propose to enter into an Underwriting Agreement (the “Underwriting Agreement”) with Hutchison China MediTech Limited, an exempted company incorporated in the Cayman Islands (the “Company”) and Hutchison Healthcare Holdings Limited, an exempted company incorporated in the British Virgin Islands (the “Selling Shareholder”), providing for the public offering (the “Public Offering”) by the Selling Shareholder of American Depositary Shares (“ADSs” or “Securities”) representing the Company’s ordinary shares, par value US$0.10 per share (the “Ordinary Shares”). Terms used but not defined herein shall have the meaning assigned to them in the Underwriting Agreement.

 

In recognition of the benefit that such an offering will confer upon the undersigned, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned agrees with each underwriter to be named in the Underwriting Agreement that, during the period beginning on the date hereof and ending on the date that is 90 days from the date of the Underwriting Agreement (the “Lock-up Period”), the undersigned will not, without the prior written consent of the Representatives, directly or indirectly, (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant for the purchase of, or otherwise dispose of or transfer any shares of the Company’s ADSs or Ordinary Shares or any securities convertible into or exchangeable or exercisable for ADSs or Ordinary Shares, whether now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or hereafter acquires the power of disposition (collectively, the “Lock-Up Securities”), or exercise any right with respect to the registration of any of the Lock-up Securities, or file or cause to be filed any registration statement in connection therewith, under the Securities Act of 1933, as amended, or (ii) enter into any swap or any other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic

 

A-1

 

consequence of ownership of the Lock-Up Securities, whether any such swap or transaction is to be settled by delivery of ADSs or Ordinary Shares or other securities, in cash or otherwise.

 

Notwithstanding anything else in this agreement (the “Lock-Up Agreement”), the Lock-Up Period will terminate and the undersigned will be released from its obligations hereunder on the earlier of (1) the date that the Company advises the Representatives, in writing, prior to the execution of the Underwriting Agreement, that it has determined not to proceed with the Public Offering, (2) termination of the Underwriting Agreement before the closing of the Public Offering, or (3) October 7, 2019, if the Public Offering has not been consummated by that date.

 

Notwithstanding the foregoing, and subject to the conditions below, the undersigned may transfer the Lock-Up Securities without the prior written consent of the Representatives, provided that (1) the Representatives receive a signed lock-up agreement for the balance of the lockup period from each donee, trustee, distributee, or transferee, as the case may be, (2) any such transfer shall not involve a disposition for value, (3) such transfers are not required to be reported with the Securities and Exchange Commission on Form 4 in accordance with Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and (4) the undersigned does not otherwise voluntarily effect any public filing or report regarding such transfers:

 

(i)                                     as a bona fide gift or gifts or through will or intestacy;

 

(ii)                                  to any trust for the direct or indirect benefit of the undersigned or the immediate family of the undersigned (for purposes of this lock-up agreement, “immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than first cousin);

 

(iii)                               in connection with the transactions contemplated by the Underwriting Agreement based on the mutual agreement by and among the undersigned, the Company and the Underwriters;

 

(iv)                              as a distribution to limited partners or stockholders of the undersigned; or

 

(v)                                 to the undersigned’s affiliates or to any investment fund or other entity controlled or managed by the undersigned.

 

Furthermore, the undersigned may sell ADSs or Ordinary Shares of the Company purchased by the undersigned on the open market during the Lock-up Period if and only if (i) such sales are not required to be reported in any public filing under the Exchange Act with the Securities and Exchange Commission, or in any other public announcement, and (ii) the undersigned does not otherwise voluntarily effect any public filing under the Exchange Act with the Securities and Exchange Commission, or make any other public announcement, regarding such sales.

 

In addition, the exercise of any of the undersigned’s rights to acquire ADSs or Ordinary Shares upon the exercise or vesting, as the case may be, of options that were granted under the 2005 Chi-Med Option Scheme and the 2015 Chi-Med Option Scheme and contingent rights granted under the Company’s Long Term Incentive Scheme (the foregoing, collectively, the “Incentive Plans”) and outstanding as of the date of the Prospectus will not be subject to the restrictions set forth in this Lock-Up Agreement (it being understood that any subsequent sale, transfer or disposition of any ADSs or Ordinary Shares issued upon exercise of such options or vesting of such contingent rights under the Incentive Plans shall be subject to the restrictions set forth in this Lock-Up Agreement). Furthermore, ADSs or Ordinary Shares sold or tendered to the Company by the undersigned or withheld by the Company for tax withholding purposes in connection with the vesting or exercise of equity awards that are subject to a taxable event upon vesting or exercise will not be subject to this Lock-Up Agreement.

 

 

A-2

 

Notwithstanding anything herein to the contrary, the undersigned may establish a Rule 10b5-1 plan, provided, however, that such plan does not provide for the transfer of Lock-Up Securities during the Lock-Up Period, and provided further that no filing under Section 16 of the Exchange Act or any other public announcement shall be required or voluntarily made during the Lock-Up Period in connection with the establishment of such plan.

 

The undersigned agrees and consents to the entry of stop transfer instructions with the Company’s transfer agent and registrar against the transfer of the Lock-Up Securities except in compliance with the foregoing restrictions.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
HUTCHISON HEALTHCARE HOLDINGS LIMITED
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Title:
    

 

A-3

 

Exhibit B

 

FORM OF OPINION OF COMPANY’S U.S. COUNSEL
 TO BE DELIVERED PURSUANT TO SECTION 5(b)

 

B-1

 

Exhibit C

 

FORM OF OPINION OF SELLING SHAREHOLDER’S U.S. COUNSEL
 TO BE DELIVERED PURSUANT TO SECTION 5(d)

 

C-1

 

EXHIBIT D

 

FORM OF OPINION OF COUNSEL FOR COMPANY’S CAYMAN ISLANDS COUNSEL TO BE 
 DELIVERED PURSUANT TO SECTION 5(f)

 

D-1

 

EXHIBIT E

 

FORM OF OPINION OF COUNSEL FOR SELLING SHAREHOLDER’S BRITISH VIRGIN 
 ISLANDS COUNSEL TO BE DELIVERED PURSUANT TO SECTION 5(g)

 

E-1

 

Exhibit F-1

 

FORM OF OPINION OF COUNSEL FOR COMPANY’S INTELLECTUAL PROPERTY COUNSEL
 TO BE DELIVERED PURSUANT TO SECTION 5(h)

 

F-1-1

 

Exhibit F-2

 

FORM OF OPINION OF COUNSEL FOR UNDERWRITERS’ INTELLECTUAL PROPERTY
 COUNSEL TO BE DELIVERED PURSUANT TO SECTION 5(h)

 

F-2-1

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