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EXECUTION VERSION  US_153737865v8                     FACILITY AGREEMENT    dated as of August 9, 2022    by and among    The Oncology Institute, Inc.,  as the Borrower,    the other Loan Parties party hereto from time to time,    the Lenders    and    DEERFIELD PARTNERS, L.P.,   as agent for itself and the Secured Parties                    

 

i  US_153737865v8  Table of Contents  ARTICLE 1 DEFINITIONS ......................................................................................................................... 1  Section 1.1 General Definitions ................................................................................................ 1  Section 1.2 Interpretation ........................................................................................................ 22  Section 1.3 Business Day Adjustment .................................................................................... 23  Section 1.4 Loan Records ....................................................................................................... 23  Section 1.5 Accounting Terms and Principles ........................................................................ 24  Section 1.6 Officers ................................................................................................................ 24  ARTICLE 2 AGREEMENT FOR THE LOAN ......................................................................................... 24  Section 2.1 Disbursements ...................................................................................................... 24  Section 2.2 Payments; Prepayments; Make Whole Amount; Prepayment Fee. ..................... 24  Section 2.3 Payment Details ................................................................................................... 26  Section 2.4 Taxes .................................................................................................................... 26  Section 2.5 Costs, Expenses and Losses ................................................................................. 29  Section 2.6 Interest ................................................................................................................. 29  Section 2.7 Interest on Late Payments; Default Interest ......................................................... 29  Section 2.8 Fee ........................................................................................................................ 30  Section 2.9 Warrants ............................................................................................................... 30  ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE LOAN PARTIES .......................... 33  Section 3.1 No Default ........................................................................................................... 33  Section 3.2 Solvency. ............................................................................................................. 33  Section 3.3 Enforceability....................................................................................................... 33  Section 3.4 Existence, Qualification and Power ..................................................................... 33  Section 3.5 Litigation .............................................................................................................. 33  Section 3.6 Corporate Authorization; Conflicts...................................................................... 34  Section 3.7 Governmental Authorizations .............................................................................. 34  Section 3.8 Ownership of Real Estate and Personal Property. ............................................... 34  Section 3.9 Intellectual Property ............................................................................................. 35  Section 3.10 Taxes. ................................................................................................................... 35  Section 3.11 Service and Product Agreements ......................................................................... 35  Section 3.12 Compliance with Laws ........................................................................................ 35  Section 3.13 SEC Documents ................................................................................................... 35  Section 3.14 Financial Statements; Financial Condition .......................................................... 36  Section 3.15 Accounting Controls ............................................................................................ 37  Section 3.16 ERISA .................................................................................................................. 37  Section 3.17 Subsidiaries .......................................................................................................... 38  Section 3.18 Shares of Stock .................................................................................................... 38  Section 3.19 Material Agreements ............................................................................................ 39  Section 3.20 Use of Proceeds; Margin Stock............................................................................ 39  Section 3.21 Environmental Matters ........................................................................................ 39  Section 3.22 Investment Company Act. ................................................................................... 40  Section 3.23 Labor Relations .................................................................................................... 40  Section 3.24 Jurisdictions of Organization; Chief Executive Office ........................................ 40  Section 3.25 Deposit and Other Accounts ................................................................................ 40  Section 3.26 Disclosure ............................................................................................................ 40  Section 3.27 Certain Federal Regulations. ................................................................................ 41  

 

ii  US_153737865v8  Section 3.28 Securities Law and Principal Market Matters. ..................................................... 41  Section 3.29 Application of Takeover Provisions; Rights Agreement ..................................... 44  Section 3.30 Brokers Fees ........................................................................................................ 44  Section 3.31 Status as Senior Indebtedness.. ............................................................................ 44  Section 3.32 Healthcare Matters. .............................................................................................. 44  ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF LENDERS ............................................. 44  Section 4.1 Acquisition for Own Accoun ............................................................................... 47  Section 4.2 Accredited Investor .............................................................................................. 47  Section 4.3 Exemptions. ......................................................................................................... 47  Section 4.4 Diligence .............................................................................................................. 47  Section 4.5 No Recommendation or Endorsement. ................................................................ 47  ARTICLE 5 CONDITIONS OF DISBURSEMENT .................................................................................. 48  Section 5.1 Conditions to the Disbursement ........................................................................... 48  ARTICLE 6 AFFIRMATIVE COVENANTS ............................................................................................ 49  Section 6.1 Preservation of Existence, Etc. ............................................................................ 49  Section 6.2 Compliance with Laws ........................................................................................ 49  Section 6.3 Authorizations ...................................................................................................... 49  Section 6.4 Maintenance of Property ...................................................................................... 50  Section 6.5 Insurance .............................................................................................................. 50  Section 6.6 Payment of Taxes................................................................................................. 50  Section 6.7 Notices. ................................................................................................................ 50  Section 6.8 SEC Documents; Financial Statements ............................................................... 50  Section 6.9 Inspections ........................................................................................................... 51  Section 6.10 Disclosure ............................................................................................................ 51  Section 6.11 Cash Management Systems ................................................................................. 52  Section 6.12 Further Assurances .............................................................................................. 52  Section 6.13 Environmental Matters. ....................................................................................... 53  Section 6.14 ERISA Notices ..................................................................................................... 53  Section 6.15 Form D ................................................................................................................. 53  Section 6.16 Listing of Stock. ................................................................................................... 54  Section 6.17 Disclosure; No MNPI. ......................................................................................... 54  Section 6.18 Value Priced Securities ........................................................................................ 56  Section 6.19 Use of Proceeds ................................................................................................... 56  Section 6.20 Landlord Waivers ................................................................................................. 56  ARTICLE 7 NEGATIVE COVENANTS .................................................................................................. 58  Section 7.1 Merger, Consolidation, Etc. ................................................................................. 58  Section 7.2 Restricted Payments ............................................................................................. 59  Section 7.3 Liens .................................................................................................................... 59  Section 7.4 Dispositions ......................................................................................................... 61  Section 7.5 Indebtedness ........................................................................................................ 62  Section 7.6 Investments .......................................................................................................... 64  Section 7.7 Affiliate Transactions .......................................................................................... 65  Section 7.8 Conduct of Business ............................................................................................ 65  Section 7.9 Amendments to Organizational Documents and Other Documents .................... 65  Section 7.10 Accounting and Organizational Changes ............................................................. 65  Section 7.11 Payments of Certain Indebtedness ....................................................................... 66  Section 7.12 Burdensome Agreements and Negative Pledges ................................................. 66  

 

iii  US_153737865v8  Section 7.13 OFAC; Patriot Act; Anti-Corruption Laws.......................................................... 67  Section 7.14 Hazardous Materials ............................................................................................ 67  Section 7.15 Investment Company Act. ................................................................................... 67  Section 7.16 Financial Covenants. ............................................................................................ 67  ARTICLE 8 EVENTS OF DEFAULT ....................................................................................................... 68  Section 8.1 Events of Default ................................................................................................. 68  Section 8.2 Remedies .............................................................................................................. 70  ARTICLE 9 MISCELLANEOUS .............................................................................................................. 71  Section 9.1 Notices ................................................................................................................. 71  Section 9.2 Cost and Expense Reimbursement ...................................................................... 72  Section 9.3 Governing Law .................................................................................................... 73  Section 9.4 Successors and Assigns ....................................................................................... 74  Section 9.5 Entire Agreement; Amendments.......................................................................... 74  Section 9.6 Severability .......................................................................................................... 76  Section 9.7 Counterparts ......................................................................................................... 76  Section 9.8 Survival ................................................................................................................ 76  Section 9.9 No Waiver ............................................................................................................ 76  Section 9.10 Indemnity ............................................................................................................. 76  Section 9.11 No Usury .............................................................................................................. 77  Section 9.12 Specific Performance ........................................................................................... 78  Section 9.13 Agent .................................................................................................................... 78  Section 9.14 USA Patriot Act ................................................................................................... 82  Section 9.15 Independent Nature of Secured Parties ................................................................ 82  Section 9.16 No Fiduciary Relationship ................................................................................... 82  Section 9.17 Joint and Several .................................................................................................. 82  Section 9.18 No Third Parties Benefited .................................................................................. 83  Section 9.19 Binding Effect ...................................................................................................... 83  Section 9.20 Marshaling; Payments Set Aside ......................................................................... 83  Section 9.21 No Waiver; Cumulative Remedies ...................................................................... 83  Section 9.22 Right of Setoff ..................................................................................................... 83  Section 9.23 Sharing of Payments, Etc ..................................................................................... 83  Section 9.24 Certain Securities Matters .................................................................................... 84  

 

US_153737865v8  Annexes    Annex A Convertible Loan Amount    Schedules  Schedule 2.3 Closing Date Lenders, Wire Instructions and Notice Information  Schedule 3.8 Ownership of Real Estate and Personal Property  Schedule 3.17   Borrower’s Subsidiaries  Schedule 3.18  Stock  Schedule 3.19  Material Agreements  Schedule 3.20  Use of Proceeds; Margin Stock  Schedule 3.21  Environmental Matters  Schedule 3.23  Labor Relations  Schedule 3.24  Jurisdictions of Organization; Chief Executive Office  Schedule 3.25  Deposit and Other Accounts  Schedule 3.28(l) Transaction Related Information  Schedule 6.23  Post-Closing Obligations  Schedule 7.3(a)  Existing Liens  Schedule 7.5(a)  Existing Indebtedness  Schedule 7.6(f)  Existing Investments    Exhibits    Exhibit A  Form of Note  Exhibit B-1  Form of Closing Date Perfection Certificate  Exhibit B-2  Form of Perfection Certificate (Post-Closing Date)  Exhibit C  Form of Warrant  Exhibit D  Closing Checklist  Exhibit E  Form of Registration Rights Agreement  Exhibit F  Form of Compliance Certificate  Exhibit G  Form of Assignment and Assumption  Exhibit H  Form of Solvency Certificate      

 

  US_153737865v8    FACILITY AGREEMENT  This FACILITY AGREEMENT (this “Agreement”), dated as of August 9, 2022, is entered into by  and among The Oncology Institute, Inc., a Delaware corporation (the “Borrower”), the other Loan Parties  (as defined below) party hereto from time to time, the lenders set forth on the signature page of this  Agreement (together with their successors and permitted assigns, the “Lenders”), Deerfield Partners, L.P.,  as agent for itself and the other Secured Parties referred to herein (in such capacity, together with its  successors and assigns in such capacity, “Agent,” and, together with the Lenders, the Borrower and the  other Loan Parties party hereto, the “Parties”).  W I T N E S S E T H:  WHEREAS, the Borrower desires that the Lenders, on a several but not joint basis, extend certain  term loans to the Borrower to provide funds necessary to (i) provide funds for the Borrower’s working  capital and general corporate purposes, and (ii) pay a portion of the fees, costs and expenses related to the  foregoing and entering into this Agreement and providing the Loans contemplated hereby, in each case  subject to the terms and conditions set forth in this Agreement;  WHEREAS, it is a condition to the Lenders’ willingness to provide such Loans that the Borrower  secure all of the Obligations (including the Obligations of the other Loan Parties) by granting to Agent, for  the benefit of the Secured Parties, a first priority perfected Lien upon substantially all of its personal and  real property, including all of the issued and outstanding Stock of its direct Subsidiaries that is owned by  the Borrower, on the terms set forth herein; and  WHEREAS, each of the Loan Parties is willing to guarantee all of the Obligations (and, in the case  of the Borrower, the Obligations of the other Loan Parties), and to grant to Agent, for the benefit of the  Secured Parties, a first priority perfected Lien upon substantially all of its respective personal and real  property, including all of the issued and outstanding Stock of its direct Subsidiaries that is owned by such  Loan Party, on the terms set forth herein.  NOW, THEREFORE, in consideration of the mutual agreements set forth herein, the Parties hereby  agree as follows:  ARTICLE 1  DEFINITIONS  Section 1.1 General Definitions. Wherever used in this Agreement, the Exhibits or the Schedules  attached hereto, unless the context otherwise requires, the following terms have the following meanings:  “Acquisition” means any transaction or series of related transactions for the purpose of or resulting,  directly or indirectly, in (a) the acquisition of all or substantially all of the assets of a Person, or of any  business, business line, unit of operation  or division of a Person, (b) the acquisition (by merger or  otherwise) of in excess of fifty percent (50%) of the Stock of any Person or otherwise causing any Person  to become a Subsidiary of a Loan Party or (c) a merger or consolidation or any other combination with  another Person.   “Additional Amounts” has the meaning set forth in Section 2.4(a).  “Affiliate” means, with respect to any Person, any other Person that directly or indirectly (a)  controls, or is controlled by, or is under common control with, such Person; or (b) is a general partner,  

 

 2  US_153737865v8  manager or managing member of such Person. Without limiting the foregoing, a Person shall be deemed to  be “controlled by” any other Person if such other Person possesses, directly or indirectly, the power to vote  ten percent (10%) or more of the securities (on a fully diluted basis) having ordinary voting power for the  election of directors or managers or the power to direct or cause the direction of the management and  policies of such Person, whether by contract or otherwise. Unless expressly stated otherwise herein, no  Secured Party shall, for the purposes of this Agreement or any of the other Facility Documents, be deemed  an Affiliate of the Borrower, any other Loan Party or any of its respective Subsidiaries, any PA Entity or  any of its respective Subsidiaries. With respect to a Lender, any investment fund or managed account that  is managed on a discretionary basis by the same investment manager as such Lender shall, for purposes  hereof, be deemed to be an Affiliate of such Lender.  “Agent” has the meaning set forth in the preamble to this Agreement.  “Agreed Disclosure Process” has the meaning set forth in Section 6.17(d).  “Agreement” has the meaning set forth in the preamble to this Agreement.  “Announcing Form 8-K” has the meaning set forth in Section 6.17(a).  “Anti-Corruption Laws” has the meaning set forth in Section 3.27.  “Anti-Money Laundering Laws” has the meaning set forth in Section 3.27.  “Applicable Law” means, with respect to any Person, the common law and any federal, provincial,  state, territorial, local, foreign, multinational or international laws, statutes, codes, treaties, standards, rules  and regulations, guidelines, ordinances, orders, judgments, writs, injunctions, decrees (including  administrative or judicial precedents or authorities) and the interpretation or administration thereof by, and  other determinations, directives, requirements or requests of, any Governmental Authority, in each case  whether or not having the force of law and that are applicable to and binding upon such Person or any of  its property or to which such Person or any of its property is subject, including all Health Care Laws.   “Approved Fund” means any investment fund that is administered or managed by (a) a Lender, (b)  an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.   “Assignment and Assumption” means an assignment and assumption agreement entered into by a  Lender and an assignee, substantially in the form of Exhibit G or any other form reasonably approved by  the Agent.  “Authorization” means, with respect to any Person, any permit, approval, accreditation,  authorization, license, registration, certificate, clearance, concession, grant, franchise, variance or  permission from, and any other contractual obligations with, any Governmental Authority, in each case  whether or not having the force of law and applicable to and binding upon such Person or any of its property  or to which such Person or any of its property is subject (including all Health Care Permits), and any  supplements or amendments with respect to the foregoing.   “Authorized Officer” means the chief executive officer, the president or the chief financial officer  of the Borrower or any other officer having substantially the same authority and responsibility.  “Bankruptcy Code” means Title 11 of the United States Code, as in effect from time to time.  “Borrower” has the meaning set forth in the preamble to this Agreement.  

 

 3  US_153737865v8  “Business Day” means any day other than a Saturday, Sunday or other day on which commercial  banks are authorized to close under the Applicable Laws of, or are in fact closed in, New York, New York.  “Capital Lease” means, with respect to any Person, any lease of any property (whether real,  personal or mixed) by that Person as lessee that, in conformity with GAAP, is or should be accounted for  as a capital lease on the balance sheet of that Person (subject to Section 1.5).  “Capital Lease Obligations” means, at the time any determination thereof is to be made, the amount  of the liability of a Person in respect of a Capitalized Lease that would at such time be required to be  capitalized and reflected as a liability on a balance sheet (excluding the footnotes thereto) of such Person  prepared in accordance with GAAP (subject to Section 1.5).  “Cash Equivalents” means (a) any readily-marketable securities (i) issued by, or directly,  unconditionally and fully guaranteed or insured by the United States federal government or (ii) issued by  any agency of the United States federal government the obligations of which are fully backed by the full  faith and credit of the United States federal government, (b) any readily-marketable direct obligations issued  by any other agency of the United States federal government, any state of the United States or any political  subdivision of any such state or any public instrumentality thereof, in each case having a rating of at least  “A-1” from S&P or at least “P-1” from Moody’s, (c) any commercial paper rated at least “A-1” by S&P or  “P-1” by Moody’s and issued by any Person organized under the laws of any state of the United States, (d)  any United States dollar-denominated time deposit, insured certificate of deposit, overnight bank deposit  or bankers’ acceptance issued or accepted by any commercial bank that (A) is organized under the laws of  the United States, any state thereof or the District of Columbia, (B) is “adequately capitalized” (as defined  in the regulations of its primary federal banking regulators) and (C) has Tier 1 capital (as defined in such  regulations) in excess of $250,000,000 and (e) shares of any United States money market fund that (i) has  substantially all of its assets invested continuously in the types of investments referred to in clause (a), (b),  (c) and/or (d) above with maturities as set forth in the proviso below, (ii) has net assets in excess of  $500,000,000 and (iii) has obtained from either S&P or Moody’s the highest rating obtainable for money  market funds in the United States; provided, however, that the maturities of all obligations specified in any  of clause (a), (b), (c) and (d) above shall not exceed one year.  “CHAMPVA” means, collectively, the Civilian Health and Medical Program of the Department of  Veterans Affairs, a program of medical benefits covering retirees and dependents of former members of the  armed services administered by the United States Department of Veterans Affairs, and all Applicable Laws,  rules, regulations, orders or requirements pertaining to such program.   “Change of Control” means (a) the occurrence of any Major Transaction, (b) any single “person”  or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act) is or shall at any time  become the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that  a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group  has the right to acquire, whether such right is exercisable immediately or only after the passage of time  (such right, an “option right”)), directly or indirectly, of 50% or more on a fully diluted basis of the voting  interests in the Borrower’s Stock (and taking into account all such securities that such person or group has  the right to acquire pursuant to any option right), (c) a sale (including by way of an exclusive lease or  license) of all or substantially all of the assets of the Borrower (including, for the avoidance of doubt, the  sale of all or substantially all of the assets of Borrower and its Subsidiaries) or of the Borrower’s Stock  shall occur or be consummated, (d) any change in the composition of the board of directors of the Borrower  such that the individuals who, as of the Closing Date, constituted the board of directors of the Borrower  (such board of directors being hereinafter referred to as the “Incumbent Board”) cease for any reason to  constitute at least a majority of the board of directors of the Borrower; provided, however, that any  individual who becomes a member of the board of directors of the Borrower whose election, or nomination  

 

 4  US_153737865v8  for election by the Borrower’s shareholders, was approved by a vote of at least a majority of those  individuals who are members of the board of directors of the Borrower and who were also members of the  Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such  individual were a member of the Incumbent Board or (d) the occurrence of a “change of control,” however  so defined in any document, agreement or instrument governing or evidencing any Indebtedness with a  principal amount in excess of $5,000,000 or, in each case, any term of similar effect.  “Closing Date” means the date of this Agreement.  “CMS” means The Centers for Medicare and Medicaid Services, which administers the Medicare  and Medicaid programs under the Department of Health and Human Services, and any successor thereto.  “Code” means the Internal Revenue Code of 1986, as amended, and any Treasury Regulations  promulgated thereunder.  “Collateral” has the meaning given to it in the Security Agreement and any other applicable Facility  Document.  Notwithstanding anything contained in this Agreement or any other Facility Document, in no  event will any Excluded Asset constitute Collateral.  “Collateral Documents” means the Security Agreement, each Control Agreement, each Perfection  Certificate, any subordination or intercreditor agreement entered into by any Secured Party with respect to  any Indebtedness or other obligations permitted under the Facility Documents, any mortgage delivered in  connection with this Agreement, any landlord agreement, any warehouse agreement, any bailee waiver, any  collateral access agreement and any other instruments or documents or delivered by any Loan Party, any of  their respective Subsidiaries or any other Person pledging or granting a lien on Collateral or guarantying  the payment and performance of the Obligations pursuant to this Agreement or any of the other Facility  Documents in order to grant to Agent, on behalf of the Secured Parties, a Lien on any real, personal or  mixed property of that Loan Party as security for the Obligations, as any of the foregoing may be amended,  restated and/or modified from time to time.  “Common Stock” means the common stock, $0.0001 par value per share of the Borrower.  “Company Share Major Transaction” has the meaning set forth in the Notes.   “Compliance Certificate” means a certificate, duly authorized by an Authorized Officer of the  Borrower, substantially in the form of Exhibit F hereto.  “Control Agreement” means, with respect to any deposit account, securities account, commodity  account, securities entitlement or commodity contract, an agreement, in form and substance reasonably  satisfactory to the Required Lenders, among Agent, the financial institution or other Person at which such  account is maintained or with which such entitlement or contract is carried and the Loan Party maintaining  such account or owning such entitlement or contract, effective to grant “control” (within the meaning of  Articles 8 and 9 under the applicable UCC) over such account to Agent (for the benefit of the Secured  Parties).  “Conversions” has the meaning set forth in the Notes.  “Convertible Securities” means any securities (other than Options) directly or indirectly convertible  into or exchangeable or exercisable for shares of Common Stock.  “Conversion Shares” has the meaning set forth in Section 3.18.  

 

 5  US_153737865v8  “Copyrights” means, collectively, all of the following: (a) all copyrights, rights and interests in  copyrights, works protectable by copyright, unregistered copyright rights, copyright registrations and  copyright applications, including those registrations and applications listed in the schedules to any  Copyright Security Agreement; (b) all renewals of any of the foregoing; (c) all income, royalties, damages  and payments now or hereafter due and/or payable under any of the foregoing or with respect to any of the  foregoing, including damages or payments for past, present or future infringements of any of the foregoing;  (d) the right to sue for past, present and future infringements of any of the foregoing; and (e) all rights  corresponding to any of the foregoing throughout the world.  “Covered Person” has the meaning set forth in Section 3.28(e).  “Debtor Relief Laws” means the Bankruptcy Code and all other liquidation, conservatorship,  bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency,  reorganization or similar debtor relief laws of the United States or other applicable jurisdictions from time  to time in effect and affecting the rights of creditors generally.  “Default” means any event that, with the giving of notice, lapse of time or fulfillment of any other  applicable condition (or any combination of the foregoing), would constitute an Event of Default.  “Deerfield Lenders” means the Lenders identified as a Deerfield Lender on Annex A hereto and its  Affiliates and related funds.  “Disbursement” has the meaning set forth in Section 2.1(a).  “Disbursement Date” means the date that any Disbursement is funded by the applicable Lenders.  “Disposition” mean (a) the sale, lease, conveyance or other disposition (including abandonment)  of any assets or property (including any sale and leaseback and any transfer or conveyance of any assets or  property pursuant to a Division/Series Transaction), (b) the sale or transfer by any Loan Party or any  Subsidiary of any Loan Party of any Stock issued to it by any Subsidiary of any Loan Party, and (c) the  issuance of any Stock by any Loan Party or any Subsidiary of any Loan Party. “Dispose” has a correlative  meaning.  “Disqualification Event” has the meaning set forth in Section 3.28(e).  “Disqualified Lender” means (a) each Person that is a direct competitor of the Borrower or any of  its Subsidiaries, in each case, that is separately identified in writing by the Borrower to the Agent and  reasonably acceptable to the Agent, (b) any controlling Affiliate (other than with respect to such Affiliate  at which sufficient customary barriers are in place at such entities to prevent the sharing confidential  information with respect to the Borrower with the controlled direct competitor of the Borrower) or  controlled Affiliate of any such Person referred to in clause (a) above that is either (i) identified in writing  to the Agent and the Lenders by the Borrower from time to time or (ii) clearly identifiable on the basis of  such Affiliate’s name; provided that, in the case of clauses (a) and (b) above, (i) no identification of a Person  as a competitor or a controlling or controlled Affiliate of a competitor shall be effective to retroactively  disqualify any Person that is, at the time of such identification, already a Lender, and (x) no Person that  operates as a brokerage, insurance business, pension fund (or other benefit fund), hedge fund, private equity  fund, other investment fund, or investment banking, investment management, investment advisory, or  similar business, (y) any non-profit research or non-profit enterprise or (z) any investment fund managed  by any of the Lenders or the Agent or any Affiliate or related fund of any of the Lenders or the Agent, shall  constitute a Disqualified Lender, whether or not such Person owns an interest in a competitor or a controlled  Affiliate of a competitor. Notwithstanding anything to the contrary contained in this Agreement, (A) the  

 

 6  US_153737865v8  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 Lenders and (B) the Borrower  (on behalf of itself and the other Loan Parties) and the Lenders acknowledge and agree that no Secured  Party shall have any responsibility or obligation to determine whether any Lender or potential Lender is a  Competitor (it being understood and agreed, however, that each potential Lender shall be required to  represent and warrant in the related Assignment and Assumption Agreement that such potential Lender is  not a Disqualified Lender) and that the Agent shall have no liability with respect to any assignment or  participation made to a Disqualified Lender.  “Disqualified Stock” means any Stock that, by its terms (or by the terms of any security or other  Stock into that it is convertible or for which it is exchangeable), or upon the happening of any event or  condition, (a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or  is redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that is one year  and one day following the Maturity Date (excluding any provisions requiring redemption upon a “change  of control” or similar event that results in the occurrence of the Facility Termination Date), (b) is convertible  into or exchangeable for (i) debt securities or (ii) any Stock referred to in clause (a) above, in each case, at  any time on or prior to the date that is one year and one day following the Maturity Date at the time such  Stock is issued, (c) is entitled to receive scheduled dividends or distributions in cash prior to the date that  is one year and one day following the Maturity Date, or (d) includes, or provides any holder thereof, with  any liquidation preference (other than solely on an as-converted Common Stock basis or in a de minimis  amount necessary to comply with the Applicable Laws), except upon a the filing of a bankruptcy of the  Borrower or any other material rights in priority to the rights of the holders of the Common Stock, in their  capacities as such; provided that, if such Stock is issued pursuant to a plan for the benefit of employees of  the Borrower or any Subsidiary or by any such plan to such employees, such Stock shall not constitute  Disqualified Stock solely because it may be required to be repurchased by the Borrower or its Subsidiaries  in order to satisfy applicable statutory or regulatory obligations or as a result of such employee’s  termination, death or disability.   “Division/Series Transaction” means, with respect to the Loan Parties and their Subsidiaries, that  any such Person (a) divides into two or more Persons (whether or not the original Loan Party or Subsidiary  thereof survives such division) or (b) creates, or reorganizes into, one or more series, in each case as  contemplated under the laws of any jurisdiction.  “Dollars” and the “$” sign mean the lawful currency of the United States of America.  “DTC” has the meaning set forth in Section 3.28(k).  “Eligible Market” means the New York Stock Exchange, Inc., the NYSE American, the Nasdaq  Capital Market, the Nasdaq Global Market or the Nasdaq Global Select Market (or, in each case, any  successor thereto).   “Employee Benefit Plan” means any “employee benefit plan” within the meaning of Section 3(3)  of ERISA, and any stock purchase, stock option, stock-based severance, employment, change-in-control,  medical, disability, fringe benefit, bonus, incentive, deferred compensation, employee loan and any other  employee benefit plan, agreement, program, policy or other arrangement, whether or not subject to ERISA,  under which (A) any current or former employee, director or independent contractor of the Borrower or any  of its Subsidiaries has any present or future right to benefits and that is contributed to, sponsored by or  maintained by the Borrower or any of its Subsidiaries or (B) the Borrower or any of its Subsidiaries has had  or has or would reasonably be expected to have any present or future obligation or liability.  

 

 7  US_153737865v8  “Environmental Laws” means all Applicable Laws and Authorizations relating to (a) pollution or  protection of the environment, (b) any Hazardous Materials activity, or (c) occupational safety and health,  industrial hygiene (as they relate to exposure to Hazardous Materials), or the protection of human health or  welfare from exposure to Hazardous Materials.  “Environmental Liabilities” means all Liabilities (including costs of removal and remedial actions,  natural resource damages and costs and expenses of investigation and feasibility studies, including the cost  of environmental consultants and attorneys’ costs) that may be imposed on, incurred by or asserted against  any TOI Party or any Subsidiary of any TOI Party as a result of, or related to, any Proceeding or demand  by any Person, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil  statute or common law or otherwise, arising under any Environmental Law, and resulting from the  ownership, lease, sublease or other operation or occupation of property by any TOI Party or any Subsidiary  of any TOI Party, whether on, prior or after the Closing Date.  “ERISA” means the Employee Retirement Income Security Act of 1974 (or any successor  legislation thereto) and the regulations promulgated and rulings issued thereunder.  “ERISA Affiliate” means, collectively, any TOI Party any Subsidiary of any such TOI Party, and  any Person under common control or treated as a single employer with, any TOI Party or any Subsidiary of   any TOI Party, within the meaning of Section 414(b) or (c) of the Code, and solely with respect to Section  412 of the Code (and other provisions of the Code significantly related thereto (e.g., Sections 430 through  436 of the Code)), under Section 414(m) or (o) of the Code.  “ERISA Event” means any of the following: (a) a “reportable event” described in Section 4043(b)  or (c) of ERISA (unless the thirty (30)-day notice requirement has been duly waived under the applicable  regulations) with respect to a Title IV Plan; (b) the withdrawal of any ERISA Affiliate from a Title IV Plan  subject to Section 4063 of ERISA during a plan year in which it was a substantial employer, as defined in  Section 4001(a)(2) of ERISA; (c) the complete or partial withdrawal of any ERISA Affiliate from any  Multiemployer Plan; (d) with respect to any Multiemployer Plan, the filing of a notice of reorganization,  insolvency or termination, or treatment of a plan amendment as termination, under Section 4041A of  ERISA; (e) the filing of a notice of intent to terminate a Title IV Plan, or treatment of a plan amendment as  termination, under Section 4041 of ERISA; (f) the institution of Proceedings to terminate a Title IV Plan  or Multiemployer Plan by the PBGC; (g) the failure to make any required contribution to any Title IV Plan  or Multiemployer Plan when due; (h) the imposition of a Lien under Section 412 or 430(k) of the Code or  Section 303 or 4068 of ERISA on any property (or rights to property, whether real or personal) of any  ERISA Affiliate; (i) the failure of an Employee Benefit Plan or any trust thereunder intended to qualify for  tax exempt status under Section 401 or 501 of the Code to qualify thereunder; (j) a Title IV plan is in “at  risk” status within the meaning of Code Section 430(i); (k) a Multiemployer Plan is in “endangered status”  or “critical status” within the meaning of Section 432(b) of the Code; or (l) any other event or condition  that constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee  to administer, any Title IV Plan or Multiemployer Plan or for the imposition of any liability upon any  ERISA Affiliate under Title IV of ERISA other than for contributions to Title IV Plans and Multiemployer  Plans in the ordinary course and PBGC premiums due but not delinquent.  “Erroneous Payment” has the meaning set forth in Section 2.10.  “Erroneous Payment Return Deficiency” has the meaning set forth in Section 2.10.  “Erroneous Payment Subrogation Rights” has the meaning set forth in Section 2.10.  “Event of Default” has the meaning set forth in Section 8.1.  

 

 8  US_153737865v8  “Exchange Act” means the Securities Exchange Act of 1934, as amended, including the rules and  regulations promulgated thereunder.  “Excluded Accounts” has the meaning set forth in Section 6.11.  “Excluded Assets” has the meaning set forth in the Security Agreement.  “Excluded Taxes” means with respect to any recipient of any payment to be made under any  Facility Document: (a) Taxes imposed on (or measured by) net income (however denominated), franchise  Taxes and branch profits Taxes, in each case (i) imposed as a result of such Lender being organized under  the laws of, or having its principal office or applicable lending office located in, the jurisdiction imposing  such Tax (or any political subdivision thereof), or (ii) that are Other Connection Taxes, (b) in the case of a  Lender, any withholding Tax imposed on amounts payable to or for the account of such Lender with respect  to its interest in a Loan under a law in effect at the time such Lender becomes a party to this Agreement or  changes its lending office, except to the extent such Lender acquired its interest in the Loans from a  transferor that was entitled, immediately before such transfer, to receive Additional Amounts with respect  to such withholding Tax pursuant to Section 2.4(a) or was itself a Lender so entitled immediately before  changing its lending office, (c) any Taxes attributable to the failure of such recipient to comply with Section  2.4(d), or (d) any withholding Tax imposed under FATCA.  “Exit Fee” has the meaning set forth in Section 2.8.  “Facility Documents” means this Agreement, any Guaranty, the Notes, the Collateral Documents,  each Compliance Certificate, the Solvency Certificate, the Fee Letter, any other solvency certificate, any  written notices from the Borrower with respect to request of Disbursements under Section 2.1, the Warrants,  the Registration Rights Agreement, and all other documents, agreements and instruments delivered in  connection with any of the foregoing, in each case, as amended, restated, supplemented or otherwise  modified from time to time.  “Facility Termination Date” has the meaning set forth in Section 2.2(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 agreements entered into  pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices  adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental  Authorities and implementing such Sections of the Code..  “FCPA” has the meaning set forth in Section 3.27.  “Federal Funds Rate” means, for any day, a rate per annum (rounded upward to the nearest 1/100th  of 1%) equal to the rate published by the Federal Reserve Bank of New York on the preceding Business  Day or, if no such rate is so published, the average rate per annum charged to three (3) federal funds brokers  on such day, as determined by the Agent.  “Federal Reserve Board” means the Board of Governors of the Federal Reserve System or any  entity succeeding to any of its principal functions.  “Fee Letter” means the Fee Letter, dated as of the Closing Date, between alterDomus and the  Borrower.  

 

 9  US_153737865v8  “Final Payment” means such amount of cash and Warrants as may be necessary to repay the  outstanding principal amount of the Loans and any other amounts (including the Obligations) owing by the  Borrower and the other Loan Parties to the Secured Parties pursuant to the Facility Documents.  “Foreign Lender” has the meaning set forth in Section 2.4(d).  “Foreign Subsidiary” means a Subsidiary that is not organized under the laws of any State of the  United States or of the District of Columbia.  “GAAP” means generally accepted accounting principles in the United States, as in effect from  time to time, applied in a manner consistent with that used in preparing the financial statements referred to  in Section 6.8, but subject to Section 1.5.   “Governmental Authority” means any federal, state, foreign or international government,  regulatory or administrative agency, any state or other political subdivision thereof having jurisdiction over  any TOI Party or any Subsidiary of any TOI Party, any central bank (or similar monetary or regulatory  authority) thereof, any entity exercising executive, legislative, judicial, regulatory or administrative  functions of or pertaining to government, and any corporation or other entity owned or controlled, through  stock or capital ownership or otherwise, by any of the foregoing. For the avoidance of doubt, Governmental  Authority shall include the SEC, the Principal Market, the Financial Industry Regulatory Authority and any  agency, branch or other governmental body, entity or panel charged with the responsibility and/or vested  with the authority to administer and/or enforce any Health Care Laws, including any Medicare or Medicaid  administrators, contractors, intermediaries or carriers.   “Governmental Payor” means Medicare, Medicaid, TRICARE, CHAMPVA, any state health plan  adopted pursuant to Title XIX of the Social Security Act, any other state or federal health care program and  any other Governmental Authority that presently or in the future maintains a Third Party Payor Program.  “Guarantee” by any Person means any obligation, contingent or otherwise, of such Person directly  or indirectly guaranteeing any Indebtedness or other obligation of any other Person and, without limiting  the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person  (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or  other obligation (whether arising by virtue of partnership arrangements, by agreement to keep-well, to  purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement conditions  or otherwise), or (b) entered into for the purpose of assuring in any other manner the obligee of such  Indebtedness or other obligation of the payment thereof or to protect such obligee against loss in respect  thereof (in whole or in part); provided, however, that the term Guarantee shall not include endorsements  for collection or deposit in the ordinary course of business. The term “Guarantee” used as a verb has a  corresponding meaning.  “Guarantor” means each Subsidiary of the Borrower and each other Person who provides a  guaranty of any of the Obligations under the Security Agreement or other Facility Document, including  pursuant to a joinder agreement thereto.  “Guaranty” means a Guaranty made by a Guarantors in favor of the Agent, for the ratable benefit  of the Lender Parties, in form and substance reasonably acceptable to the Agent.  “Hazardous Material” means (a) any radioactive materials, asbestos-containing materials, urea  formaldehyde foam insulation, polychlorinated biphenyls, radon gas, petroleum and petroleum by-products  and derivatives and (b) any other chemical, material or substance, waste, pollutant or contaminant that is  

 

 10  US_153737865v8  prohibited, limited or subject to regulation, investigation, control or remediation by or pursuant to any  Environmental Law, in each case because of its dangerous or deleterious properties or characteristics.  “Health Care Laws” means all Applicable Laws relating to the provision and/or administration of,  and/or payment for, health care services, items and supplies including, without limitation, including without  limitation Applicable Laws related to: (a) fraud and abuse, including, without limitation, the federal Anti- Kickback Statute (42 U.S.C. §1320a-7b(b)), the Eliminating Kickbacks in Recovery Act of 2018 (18 U.S.C.  § 220), the Stark Law (42 U.S.C. §1395nn), the civil False Claims Act (31 U.S.C. §§ 3729 et seq.), the  criminal False Claims Act 18 U.S.C. § 287, the False Statements Relating to Health Care Matters Act (18  U.S.C. § 1035), the Health Care Fraud Act (18 U.S.C. § 1347), the Program Fraud Civil Remedies Act (31  U.S.C. §§ 3801-3812), the Anti-Kickback Act of 1986 (41 U.S.C. §§ 51-58), the Laws regarding Exclusion  and Civil Monetary Penalties (42 U.S.C. §§ 1320a-7, 1320a-7a and 1320a-7b), and any state,  commonwealth or local laws similar to any of the foregoing; (b) the Patient Protection and Affordable Care  Act (Pub. L. No. 111-148) and the Health Care and Education Reconciliation Act of 2010 (Pub. L. No. 111- 152); (c) Medicare, Medicaid, CHAMPVA, TRICARE, the State Children’s Health Insurance Program  (Title XXI of the Social Security Act), and any other Third Party Payor Programs; (d) the licensure,  permitting, registration or regulation of healthcare providers, suppliers, professionals, facilities or payors;  (e) patient health care; (f) quality, safety certification and accreditation standards and requirements; (g)  billing, coding or the submission or payment of claims or collection of accounts receivable or refund of  overpayments; (h) HIPAA; (i) the practice of medicine and other health care professions or the organization  of medical or professional entities; (j) state kickback, fee-splitting, false claims, or self-referral prohibitions;  (k) the Federal Controlled Substances Act (21 U.S.C. 801 § et. seq., and all rules and regulations of the  United States Drug Enforcement Administration), the federal Food Drug and Cosmetic Act (21 U.S.C. §§  301 et seq.), including current Good Manufacturing Practices, and similar standards of the United States  Food and Drug Administration, and any related state laws and regulations; (l) the Clinical Laboratory  Improvement Amendments and the regulations promulgated thereunder and similar state laws; (m) the  provision of free or discounted care or services; (n) laws and regulations regulating the generation,  transportation, treatment, storage, disposal and other handling of medical or radioactive waste, and (o) any  and all other applicable health care laws, regulations, and manual provisions, policies and administrative  guidance, each of clauses (a) through (o) as may be amended, modified or supplemented from time to time  and any successor statutes thereto and regulations promulgated thereunder from time to time.  “Health Care Permits” means any and all Authorizations issued or required under applicable Health  Care Laws.   “HIPAA” means the (a) Health Insurance Portability and Accountability Act of 1996; (b) the Health  Information Technology for Economic and Clinical Health Act (Title XIII of the American Recovery and  Reinvestment Act of 2009); and (c) any federal, state and local laws regulating the privacy and/or security  of individually identifiable health information, including, without limitation, state laws providing for  notification of breach of privacy or security of individually identifiable health information, in each case  with respect to the Applicable Laws described in clauses (a), (b) and (c) of this definition, as the same may  be amended, modified or supplemented from time to time, any successor statutes thereto, any and all rules  or regulations promulgated from time to time thereunder.  “Indebtedness” means, with respect to any Person, (a) all indebtedness for borrowed money of such  Person; (b) the deferred purchase price of assets or services of such Person (other than (i) trade payables  entered into in the ordinary course of business and that are not more than ninety (90) days past due, and (ii)  deferred compensation and severance, pension, health and welfare retirement and equivalent benefits to  current or former employees, directors or managers of such Person and its Subsidiaries), including earn- outs, that, in accordance with GAAP, should be shown to be a liability on the balance sheet; (c) all  guarantees of Indebtedness by such Person; (d) the face amount of all letters of credit issued or acceptance  

 

 11  US_153737865v8  facilities established for the account of such Person (or for which such Person is liable), including without  duplication, all drafts drawn thereunder; (e) all Capital Lease Obligations of such Person; (f) all  indebtedness (including Indebtedness of other types covered by the other clauses of this definition) of such  Person or another Person secured by any Lien on any assets or property of such Person, whether or not such  indebtedness has been assumed or is recourse (with the amount thereof, in the case of any such indebtedness  that has not been assumed by such Person, being measured as the lower of (x) fair market value of such  property and (y) the amount of the indebtedness secured); (g) indebtedness created or arising under any  conditional sale or title retention agreement, or incurred as financing, in either case with respect to assets  or property acquired by such Person (even if the rights and remedies of the seller or lender under such  agreement in the event of default are limited to repossession or sale of such assets or property); (h) all  obligations of such Persons evidenced by notes, bonds, debentures or similar instruments, including  obligations so evidenced incurred in connection with the acquisition of property, assets or businesses; (i)  all obligations of such Person, whether or not contingent, in respect of Disqualified Stock, valued at, in the  case of redeemable preferred Stock, the greater of the voluntary liquidation preference and the involuntary  liquidation preference of such Stock plus accrued and unpaid dividends; (j) all direct or indirect liability,  contingent or otherwise, of such Person with respect to any other Indebtedness, lease, dividend or other  obligations of another Person if the primary purpose or intent of the Person incurring such liability, or the  primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid  or discharged, or that any agreements relating thereto will be complied with, or that the holders of such  liability will be protected (in whole or in part) against loss with respect thereto; (k) all direct or indirect  liability, contingent or otherwise, of such Person under Swap Contracts; (l) all direct or indirect liability,  contingent or otherwise, of such Person to make take-or-pay or similar payments if required regardless of  nonperformance by any other party or parties to an agreement; and (m) all direct or indirect liability,  contingent or otherwise, of such Person for the obligations of another Person through any agreement to  purchase, repurchase or otherwise acquire such obligation or any assets or property constituting security  therefor, to provide funds for the payment or discharge of such obligation or to maintain the solvency,  financial condition or any balance sheet item or level of income of another Person.  “Indemnified Person” has the meaning set forth in Section 9.10(a).  “Indemnified Taxes” means (a) any Taxes imposed on or with respect to any payments made by or  on account of any obligation of any Loan Party under any Facility Document, other than Excluded Taxes,  and (b) to the extent not otherwise described in clause (a) above in this definition, Other Taxes.  “Indemnity” has the meaning set forth in Section 9.10(a).  “Inside Information” means any “material non-public information” (within the meaning of  applicable U.S. securities laws, including Section 10(b) of, and Rule 10b5-1 promulgated under, the  Exchange Act) in respect of, or relating to, the Borrower or any of its Affiliates or securities or any other  company with any publicly listed or traded securities.  “Intellectual Property” means all rights, title and interests in or relating to (a) intellectual property  and industrial property arising under any Applicable Law, including all Copyrights, Patents, Software,  Trademarks, Internet Domain Names, Trade Secrets, (b) all IP Ancillary Rights relating thereto and (c) IP  Licenses.  “Interest Payment Date” has the meaning set forth in Section 2.6.  “Interest Rate” means 4.00% per annum.  

 

 12  US_153737865v8  “Internet Domain Name” means all right, title and interest (and all related IP Ancillary Rights)  arising under any Law in or relating to internet domain names.  “Investment” means (i) the purchase or acquisition of any Stock, or any obligations or other  securities of, or any interest in, any Person, including the establishment or creation of a Subsidiary, (ii) the  consummation of any Acquisitions or any other acquisition of any of the assets of another Person or of any  business or division of any Person, including by way of merger, consolidation, other combination or  otherwise, or (iii) the making, purchase or acquisition of any advance, loan, extension of credit (other than  trade payables in the ordinary course of business) or capital contribution to or any other investment in, any  Person including any Loan Party, any Affiliate of any Loan Party or any Subsidiary of any Loan Party.  “Investment Company Act” means the Investment Company Act of 1940, as amended.  “IP Ancillary Rights” means, with respect to any Intellectual Property of the type described in  clauses (a) and (c) of the definition of “Intellectual Property,” as applicable, all foreign counterparts to, and  all divisionals, reversions, continuations, continuations-in-part, reissues, reexaminations, renewals and  extensions of, such Intellectual Property and all income, royalties, proceeds and Liabilities at any time due  or payable or asserted under or with respect to any of the foregoing or otherwise with respect to such  Intellectual Property, including all rights to sue or recover at law or in equity for any past, present or future  infringement, misappropriation, dilution, violation or other impairment thereof, and, in each case, all rights  to obtain any other IP Ancillary Right.  “IP License” means all contractual obligations (and all related IP Ancillary Rights), whether written  or oral, granting any right, title and interest in or relating to any Intellectual Property of the type described  in clause (a) of the definition of Intellectual Property.  “IRS” means the United States Internal Revenue Service.  “Latest Balance Sheet Date” has the meaning set forth in Section 3.14(e).  “Lenders” has the meaning set forth in the preamble to this Agreement.  “Liabilities” means all claims, actions, suits, judgments, damages, losses, liabilities, obligations,  responsibilities, fines, penalties, sanctions, costs, fees, Taxes, commissions, charges, disbursements and  expenses (including those incurred upon any appeal or in connection with the preparation for and/or  response to any subpoena or request for document production relating thereto), in each case of any kind or  nature (including interest accrued thereon or as a result thereof and fees, charges and disbursements of  financial, legal and other advisors and consultants), whether joint or several, and whether direct, indirect,  contingent, consequential, actual, punitive, treble or otherwise.  “Licensed Personnel” means any Person (including any physician) involved in the delivery of  health care or medical items, products services or supplies, employed or retained by any Loan Party or any  Subsidiary of any Loan Party.  “Lien” means any lien, pledge, preferential arrangement, mortgage, security interest, deed of trust,  charge, assignment, hypothecation, title retention or other encumbrance on or with respect to property or  interest in property having the practical effect of constituting a security interest.  “Loan” means any loan or other credit extension made available or provided from time to time by  any of the Lenders to the Borrower pursuant to this Agreement or any other Facility Document or, as the  

 

 13  US_153737865v8  context may require, the principal amount thereof from time to time outstanding and shall include any  funded Disbursement.   “Loan Parties” means the collective reference to the Borrower and all of the Guarantors.  “Loss” has the meaning set forth in Section 9.10(a).  “Major Transaction” has the meaning set forth in the Notes.  “Major Transaction Conversion” has the meaning set forth in the Notes.  “Major Transaction Redemption” has the meaning set forth in the Notes.  “Make Whole Amount” means, on any date of prepayment, payment, redemption (including any  Major Transaction Redemption, Optional Redemption, acceleration of the Loans following the occurrence  of an Event of Default, an exercise of any Secured Party’s rights or remedies available under the Facility  documents, upon the consummation of a Change of Control, by an optional payment or termination or  otherwise) or repayment of all or any portion of the Loans, an amount in cash equal to (a) solely to the  extent such prepayment, payment, redemption or repayment is being made in connection with (i) an exercise  of remedies by Agent, the Lenders, the Secured Parties or their representatives or their agents in connection  with a foreclosure proceeding against any of the Loan Parties or the Collateral or (ii) a Proceeding under  Debtor Relief Laws, in each case of clauses (a)(i) and (a)(ii), the present value, as determined by Agent and  all Lenders in their sole discretion (which shall be conclusive absent manifest error), of all required interest  payments, fees, charges and premiums due on the Loans that are prepaid, paid, redeemed (including  pursuant to a Major Transaction Redemption or Optional Redemption) or repaid from the date of  prepayment, payment, redemption or repayment (as applicable) through and including the Maturity Date  (assuming that the interest rate applicable to all such interest is the applicable Interest Rate for such Loans),  discounted to the date of prepayment, payment, redemption or repayment or on a quarterly basis (assuming  a 360-day year and actual days elapsed) at a rate equal to the then applicable Treasury Yield, or (b) with  respect to any other prepayment, payment, redemption or repayment that is made for a situation or scenario  not covered by clause (a) above, all required interest payments, fees, charges and premiums due on the  Loans that are prepaid, paid, redeemed or repaid from the date of prepayment, payment, redemption or  repayment as applicable) through and including the Maturity Date (assuming that the interest rate applicable  to all such interest is the applicable Interest Rate for such Loans), and for the avoidance of doubt, without  any discount rate applying thereto (but assuming a 360-day year and actual days elapsed).   “Margin Stock” means “margin stock” as such term is defined in Regulation T, U or X of the  Federal Reserve Board.  “Material Adverse Effect” means a material adverse effect on (a) the business, operations, results  of operations, financial condition or assets of any TOI Party or its Subsidiaries, (b) the legality, validity,  binding effect or enforceability of any provision of any Facility Document, (c) the ability of any Loan Party  to perform its obligations under any Facility Document, (d) the creation, perfection or priority of the Liens  granted under the Facility Documents or the value of the Collateral (taken as a whole) or a material portion  of the Collateral, or (e) the rights and remedies of the Secured Parties under any Facility Document.  “Material Agreements” has the meaning set forth in Section 3.19.  “Material IP” means, as of any date of determination, intellectual property of the Loan Parties that,  individually or in the aggregate, is necessary and material to the conduct of the business of the Loan Parties  and their Subsidiaries.  

 

 14  US_153737865v8  “Maturity Date” means August 9, 2027.  “Medicaid” means, collectively, the health care assistance program established by Title XIX of the  Social Security Act (42 U.S.C. 1396 et seq.) and any statutes succeeding thereto, and all Applicable Laws,  rules, regulations, manuals, orders or requirements pertaining to such program, including (a) all federal  statutes affecting such program; (b) all state statutes and plans for medical assistance enacted in connection  with such program and federal rules and regulations promulgated in connection with such program; and (c)  all applicable provisions of all rules, regulations, manuals, orders and administrative guidance,  reimbursement, and requirements of all Governmental Authorities promulgated in connection with such  program (whether or not having the force of law), in each case as the same may be amended, restated,  supplemented or otherwise modified from time to time.     “Medicare” means, collectively, the health insurance program for the aged and disabled established  by Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) and any statutes succeeding thereto, and  all Applicable Laws, rules, regulations, manuals, orders or requirements pertaining to such program  including (a) all federal statutes (whether set forth in Title XVIII of the Social Security Act (42 U.S.C. 1395  et seq.) or elsewhere) affecting such program; and (b) all applicable provisions of all rules, regulations,  manuals, orders, administrative guidance, reimbursement and requirements of all Governmental Authorities  promulgated in connection with such program (whether or not having the force of law), in each case, as the  same may be amended, restated, supplemented or otherwise modified from time to time.  “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.  “Multiemployer Plan” means any multiemployer plan, as defined in Section 3(37) or 4001(a)(3) of  ERISA, as to which any TOI Party or ERISA Affiliate incurs or otherwise has, or could reasonably be  expected to have, any obligation or Liabilities (including under Section 4212 of ERISA).  “Necessary Disclosure” has the meaning set forth in Section 6.17(d).  “Net Revenue” means, for any period, the net revenue of the Borrower and its consolidated  Subsidiaries such period, as determined in accordance with the GAAP and as reported in the Borrower’s  periodic report (on Form 10-Q or Form 10-K), as the case may be, filed  by the Borrower with the SEC for  the quarter or year ended (and, in the case of a quarterly report on Form 10-Q, the relevant quarterly reports  on Form 10-Q or annual report on Form 10-K covering the preceding applicable fiscal quarters).  “Note” means a promissory note in the form attached hereto as Exhibit A, as amended, restated,  amended and restated, supplemented, modified or otherwise changed from time to time, and convertible  into shares of Common Stock as so provided therein.  “Obligations” means all Loans, any Make Whole Amount, Exit Fee, interests, fees, expenses, costs,  liabilities, indebtedness and other obligations (monetary (including post-petition interest, costs, fees,  expenses and other amounts, whether allowed or not) or otherwise) of (or owed by) the Borrower and the  other Loan Parties under or in connection with the Facility Documents, in each case howsoever created,  arising or evidenced, whether direct or indirect (including those acquired by assignment), absolute or  contingent, now or hereafter existing, or due or to become due.  “Outside Counsel” means, in respect of any Lender, such Lender’s outside counsel as may be  designated from time to time by such Lender for purposes hereof and the other Loan Documents (including,  to the extent applicable, receiving notices and communications hereunder and under the other Loan  Documents).  

 

 15  US_153737865v8  “OFAC” has the meaning set forth in Section 3.27.  “Optional Redemption” has the meaning as set forth in the Notes.  “Options” means any rights, warrants or options to subscribe for or purchase shares of Common  Stock or Convertible Securities.  “Organizational Documents” means (a) for any corporation, the certificate or articles of  incorporation, the bylaws, the constitution, any certificate of designation or instrument relating to the rights  of holders or preferred stock of such corporation, and any shareholder agreement, (b) for any partnership,  the partnership agreement and, if applicable, certificate of limited partnership, (c) for any limited liability  company, the operating or limited liability company agreement and articles or certificate of formation or  (d) for any other entity, any other document setting forth the manner of election or duties of the officers,  directors, managers or other similar or equivalent persons or Persons, or the designation, amount or relative  rights, limitations and preference of the Stock of such entity.  “Other Connection Taxes” means with respect to any recipient, Taxes imposed as a result of a  present or former connection between such recipient and the jurisdiction imposing such Taxes (except a  connection arising solely from such recipient having executed, delivered, become a party to, performed its  obligations or received a payment under, received or perfected a security interest under, engaged in any  transaction pursuant to or enforced any Facility Document, or sold or assigned an interest in any Facility  Document).  “Other Taxes” means any and all present or future stamp, court or documentary, intangible,  recording, filing or similar Taxes arising from any payment made hereunder or from the execution,  issuance, delivery, registration, enforcement or transfer of, or otherwise with respect to, any Facility  Document, except such Taxes that are Other Connection Taxes imposed with respect to a transfer or  assignment under any Facility Document; provided, that, notwithstanding the foregoing or anything else in  this Agreement, Other Taxes shall include such aforementioned Taxes incurred in connection with the  issuance of the Conversion Shares, the Warrants or the Warrant Shares, but shall not include such  aforementioned Taxes incurred in connection with any subsequent transfer or other transaction with respect  to the Conversion Shares, the Warrants or the Warrant Shares.  “PA Documents” means all agreements, instruments and other documents between the Borrower  or any of its Subsidiaries and any PA Entity related to any master services agreement, practice consulting  agreement. support services or similar management agreement, and operational and administrative services  agreement, including for the provision of billing and collection, space, equipment, marketing and staffing  services.  “PA Entities” means any affiliated physician-owned professional entity that is classified as a  variable interest entity of the Borrower or its Subsidiaries pursuant to GAAP, including The Oncology  Institute CA, a Professional Corporation, The Oncology Institute FL, LLC, and The Oncology Institute TX,  a Texas professional association.  “Parties” has the meaning set forth in the preamble to this Agreement.  “Patents” means, collectively, all of the following: (a) all patents and patent applications including,  without limitation, those listed on any schedule to any Patent Security Agreement and the inventions and  improvements described and claimed therein, and patentable inventions; (b) the reissues, divisions,  continuations, renewals, extensions and continuations-in-part of any of the foregoing; (c) all income,  royalties, damages and payments now or hereafter due and/or payable under any of the foregoing or with  

 

 16  US_153737865v8  respect to any of the foregoing, including, without limitation, damages and payments for past, present and  future infringements of any of the foregoing; (d) the right to sue for past, present and future infringements  of any of the foregoing; and (e) all rights corresponding to any of the foregoing throughout the world.  “PBGC” means the United States Pension Benefit Guaranty Corporation or any successor thereto.   “Perfection Certificate” means (a) with respect to the perfection certificate delivered on or prior to  the Closing Date, such perfection certificate executed or delivered by any Loan Party or any of its  Subsidiaries to any Secured Party in substantially the form of Exhibit B-1, and (b) with respect to the  perfection certificate delivered at any time after the Closing Date, such perfection certificate executed or  delivered by any Loan Party or any of its Subsidiaries to any Secured Party in substantially the form of  Exhibit B-2.  “Permitted Acquisition” means any Acquisition by a Loan Party of all of the Stock of a Target  (subject to any local law requirements regarding qualifying shares) or all or substantially all of the assets  of a Target, in each case, to the extent that each of the following conditions shall have been satisfied:  (a) the Borrower shall have delivered each of the following to each Lender:  (i) subject to Section 6.17, as soon as available, executed copies of the Acquisition  agreement and all material agreements and documents pursuant to which such Acquisition is to be  consummated; provided that, no later than the third (3rd) Business Day following the date of such  Acquisition documents, the Borrower shall file a current report on Form 8-K with the SEC  describing the terms of the transaction contemplated by such Acquisition documents, including  such Acquisition documents as exhibits thereto and disclosing any other material non-public  information provided to any of the Secured Parties in connection with such Acquisition (or  otherwise); and  (ii) to the extent required to be delivered to (and permitted to be shared by) a Loan  Party or any of its Affiliates pursuant to the applicable Acquisition agreement, all required material  regulatory and third party approvals;  (b) such Acquisition shall not be hostile and shall have been approved by the board of directors  (or equivalent governing body) and/or the holders of Stock of the Target;  (c) no Default or Event of Default shall exist at the time of the consummation of such  Acquisition or after giving effect to such Acquisition and all other transactions contemplated by the  applicable Acquisition Documents;  (d) the total consideration paid or payable (including all transaction costs, Indebtedness  incurred, assumed and/or reflected on a consolidated balance sheet of the Loan Parties and their Subsidiaries  after giving effect to such Acquisition and the maximum amount of all deferred payments, including earn- outs, bonuses and other contingent payment obligations, valued at the maximum amount of such potential  liability) for all Acquisitions consummated shall not exceed $25,000,000 for any one Acquisition or series  of related Acquisitions and $50,000,000 in the aggregate for any fiscal year of the Borrower;  (e) (i) the Target, the Target’s Subsidiaries and their respective assets and properties and the  Stock of the Target and the Target’s Subsidiaries shall be in compliance with Section 6.12 and the applicable  provisions of the Security Agreement and the other Facility Documents and all actions in connection  therewith shall have been taken and completed in a manner reasonably acceptable to the Agent; (ii) to the  extent required by the Facility Documents, the Target and its Subsidiaries shall have become Guarantors  

 

 17  US_153737865v8  under the Facility Documents and have executed and delivered such documents reasonably requested by  the Agent in connection therewith and (iii) all other actions shall have been taken that are necessary or  reasonably requested the Agent to (A) to the extent required by the Facility Documents, provide a first  priority Lien to the Agent (for the benefit of the Secured Parties) in the assets and properties of the Target  and its Subsidiaries and the Stock of the Target and its Subsidiaries and (B) effectuate the foregoing in this  clause (e);  (f) all transactions in connection with such Acquisition shall be consummated, in all material  respects, in accordance with all Applicable Laws and in conformity with all material applicable  Authorizations and all material applicable Authorizations shall have been obtained;  (g) the Target shall be in the same business or lines of business in which the Borrower and its  Subsidiaries are engaged as of the Closing Date, and shall be physician affiliated practice group for which  the Borrower or any other Loan Party is entering into a management services arrangement, in each case,  substantially consistent with other such Acquisitions made by the Borrower and its Subsidiaries prior to the  Closing Date;  (h) (i) at the time of, and after giving effect to, such Acquisition and all other transactions  contemplated by the applicable Acquisition documents, all representations and warranties in the Facility  Documents shall be true, correct and complete in all material respects (without duplication of any  materiality qualifier contained therein); and   (j) the Agent shall have received a certificate, in form reasonably satisfactory to each Agent,  signed by an Authorized Officer and certifying that all the conditions set forth in this definition of  “Permitted Acquisition” have been satisfied.  “Permitted Investments” means each of the Investments permitted under Section 7.6.  “Permitted Liens” means Liens permitted under Section 7.3.  “Person” means and includes any natural person, individual, partnership, joint venture, corporation,  trust, limited liability company, limited company, joint stock company, unincorporated organization,  government entity or any political subdivision or agency thereof, or any other entity.   “Portfolio Interest Certificate” has the meaning set forth in Section 2.4(d).   “Principal Market” means the Nasdaq Capital Market (or any successor to the foregoing), subject  to the first sentence of Section 6.16.   “Proceeding” means any investigation, inquiry, litigation, review, hearing, suit, claim, audit,  arbitration, proceeding or action (in each case, whether civil, criminal, administrative, investigative or  informal) commenced, brought, conducted or heard by or before, or otherwise involving, any Governmental  Authority or arbitrator.  “Pro Rata Share” means, with respect to any Lender, the percentage obtained by dividing (a) such  Lender’s outstanding Loans, by (b) the total outstanding amount of Loans held by all Lenders.  “Qualifying Sub Debt” means Indebtedness of the Borrower in an aggregate outstanding principal  amount at any time not to exceed the sum of (x) $50,000,000 and (y) the aggregate principal amount of the  Loans that have been repaid, prepaid, paid, redeemed or converted into Conversion Shares that has been  subordinated and made junior to the payment in full of the Obligations, and evidenced by a subordination  

 

 18  US_153737865v8  agreement in form and substance reasonably satisfactory to the Required Lenders; provided that, (a) at the  time such Qualifying Sub Debt is incurred, no Default or Event of Default has occurred or would occur as  a result of such incurrence, and (b) the documentation evidencing such Qualifying Sub Debt shall have  been delivered to the Lenders and shall contain all of the following terms: (i) it shall be unsecured, (ii) it  shall bear interest at a rate that is reasonably acceptable to the Required Lenders, (iii) it shall not require  principal repayments thereof prior to a date that is 181 days after the repayment in full in cash of the  Obligations, (iv) if it has any covenants, such covenants (including covenants relating to incurrence of  indebtedness) shall be less restrictive than those set forth herein, (v) it shall have no restrictions on the  Borrower’s ability to grant Liens securing the Obligations, (vi) it shall permit the incurrence of senior  indebtedness under this Agreement, (vii) it may be cross-accelerated with the Obligations and other senior  indebtedness of the Borrower (but shall not be cross-defaulted except for payment defaults that the senior  lenders have not waived) and may be accelerated upon bankruptcy, and (viii) it shall provide for the  complete, automatic and unconditional release of any and all guarantees of such Qualifying Sub Debt  granted by the Borrower and its Subsidiaries in the event of the sale by any Person of the Borrower and/or  its Subsidiaries or the sale by any Person of all or substantially all of the Borrower’s and/or its Subsidiaries’  assets (including in the case of a foreclosure).  “Real Estate” means any real property owned, leased, subleased or otherwise operated or occupied  by any Loan Party or any Subsidiary of any Loan Party.  “Register” has the meaning set forth in Section 1.4(b).  “Registration Rights Agreement” means that certain Amended and Restated Registration Rights  Agreement, dated as of the Closing Date, entered into by the Persons parties thereto and substantially in the  form of Exhibit E, as amended, restated, supplemented or otherwise modified from time to time in  accordance with the terms thereof.  “Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System as  in effect from time to time and any successor to all or a portion thereof establishing reserve requirements.  “Release” means any release, threatened release, spill, emission, leaking, pumping, pouring,  emitting, emptying, escape, injection, deposit, disposal, discharge, dispersal, dumping, leaching or  migration of Hazardous Material into or through the environment.   “Reporting Period” has the meaning set forth in Section 6.8.  “Required Authorizations” has the meaning set forth in Section 3.7.  “Required Lenders” means, at any time, the Lenders having Pro Rata Shares in an aggregate Dollar  amount that exceeds 50% of the outstanding Loans.  “Restricted Payments” means, with respect to any Person, (a) the declaration or making of any  dividend payment or other distribution of assets, properties, cash, rights, obligations or securities on account  of any of its Stock, (b) the purchasing, redemption or other acquisition for value of any of its Stock now or  hereafter outstanding or (c) the making of any payment or prepayment of principal of, premium, if any,  interest, fees, redemption, exchange, purchase, retirement, defeasance, sinking fund or similar payment  with respect to, any Indebtedness subordinated (including any Qualifying Sub Debt) to the Obligations as  to right and time of payment or as to other rights and remedies thereunder.  “S&P” means Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill  Companies, Inc., and any successor thereto.  

 

 19  US_153737865v8  “Sanctioned Country” has the meaning set forth in Section 3.27.  “Sanctions” has the meaning set forth in Section 3.27.  “Sarbanes-Oxley” has the meaning set forth in Section 3.28(a).  “SDN List” has the meaning set forth in Section 3.27.  “SEC” means the United States Securities and Exchange Commission.  “SEC Documents” means all reports, schedules, forms, statements and other documents filed by  any Loan Party or any of its Subsidiaries with the SEC pursuant to the Securities Act or the Exchange Act  (including all financial statements and schedules included therein, all exhibits thereto and all documents  incorporated by reference therein).  “Secured Parties” means Agent, the Lenders, holders of other Obligations, holders of Notes and all  Indemnified Persons.  “Securities” means the Loans, the Notes, and the related guaranties set forth in the Security  Agreement of the Guarantors, the Conversion Shares, the Warrants and the Warrant Shares.  “Securities Act” means the Securities Act of 1933, as amended, including the rules and regulations  promulgated thereunder.  “Security Agreement” means the Guaranty and Security Agreement executed and delivered on the  Closing Date pursuant to which, among other things, the Loan Parties party thereto grant to Agent for the  benefit of the Secured Parties a security interest and Lien in all of their Collateral to secure the Obligations  and the Guarantors party thereto provide guaranties to Agent for the benefit of the Secured Parties, as  amended, restated, supplemented or otherwise modified from time to time.  “Segregated Governmental Account” means a deposit account of a Loan Party maintained in  accordance with the requirements of Section 6.11, the only funds on deposit in which constitute the direct  proceeds of Medicare and Medicaid payments made by Governmental Payors.  “Social Security Act” means the Social Security Act of 1965 as set forth in Title 42 of the United  States Code, as amended, and any successor statute thereto, as interpreted by the rules and regulations  issued thereunder, in each case as in effect from time to time.  “Solvency Certificate” means a solvency certificate in substantially the form of Exhibit I or such  other solvency certificate in form and substance reasonably satisfactory to the Required Lenders.  “Solvent” means, with respect to any Person as of any date of determination, that, as of such date,  (a) the value of the assets of such Person (both at fair value and present fair saleable value) is greater than  the total amount of liabilities (including contingent and unliquidated liabilities) of such Person, (b) such  Person is able to pay all liabilities of such Person as such liabilities mature and (c) such Person does not  have unreasonably small capital in relation to such Person’s business as contemplated as of such date. In  computing the amount of contingent or unliquidated liabilities at any time, such liabilities shall be computed  at the amount that, in light of all the facts and circumstances existing at such time, represents the amount  that can reasonably be expected to become an actual or matured liability.  

 

 20  US_153737865v8  “Software” means (a) all computer programs, including source code and object code versions, (b)  all data, databases and compilations of data, whether machine readable or otherwise, and (c) all  documentation, training materials and configurations related to any of the foregoing.   “Stock” means (a) all shares of capital stock (whether denominated as common stock or preferred  stock), equity interests, beneficial, partnership or membership interests (or units thereof), joint venture  interests, participations or other ownership or profit interests in or equivalents (regardless of how  designated) of or in a Person (other than an individual), whether voting or non-voting; and (b) all securities  convertible into or exchangeable for any other Stock and all warrants, options or other rights to purchase,  subscribe for or otherwise acquire any other Stock, whether or not presently convertible, exchangeable or  exercisable.  “Stockholder Approval” means the receipt of the affirmative vote of the holders of a majority of  the shares of Common Stock of the Borrower present in person or represented by proxy at a duly called  meeting of the Borrower’s stockholders at which the requisite quorum is present of a proposal (the  “Proposal”) to approve the issuance of any such shares of Common Stock (including, for the avoidance of  doubt, any Additional Conversion Shares) issuable upon conversion or exercise of, or otherwise pursuant  to, the Notes and the Warrants in excess of 14,428,074 shares of Common Stock for purposes of Nasdaq  Marketplace Rule 5635(d).   “Subsidiary,” with respect to any Person, any corporation, partnership, joint venture, limited  liability company, association or other entity, the management of which is, directly or indirectly, controlled  by, or of which an aggregate of more than fifty percent (50%) of the voting Stock is, at the time, owned or  controlled directly or indirectly by, such Person or one or more Subsidiaries of such Person.  “Successor Major Transaction” has the meaning set forth in the Notes.   “Swap Contract” means any agreement, contract or transaction that constitutes a “swap” within the  meaning of Section 1a(47) of the Commodity Exchange Act.  “Sweep Agreement” has the meaning set forth in Section 6.11(b).  “Target” means any Person or a business unit, product line, division or asset group of any such  Person acquired or proposed to be acquired in an Acquisition.   “Tax Affiliate” means (a) the Borrower and its Subsidiaries and (b) any Affiliate of any Loan Party  with which any Loan Party files or is required to file consolidated, combined or unitary U.S. federal income  tax returns.  “Tax Returns” has the meaning set forth in Section 3.10.  “Taxes” means all present or future taxes, levies, imposts, stamp or other duties, deductions,  charges or withholdings imposed by a Governmental Authority, together with any interest, additions to tax,  penalties or other liabilities with respect thereto.  “Third Party Payor” means any Governmental Payor, Blue Cross and/or Blue Shield, private  insurers, managed care plans, and any other Person that presently or in the future maintains Third Party  Payor Programs.   “Third Party Payor Authorizations” means all participation agreements, provider or supplier  agreements, enrollments, accreditations and billing numbers necessary to participate in, be enrolled in  

 

 21  US_153737865v8  and/or receive reimbursement from a Third Party Payor Program, including all Medicare and Medicaid  participation agreements.  “Third Party Payor Programs” means all payment or reimbursement programs sponsored or  maintained by any Third Party Payor.   “Title IV Plan” means an Employee Benefit Plan subject to Title IV of ERISA, other than a  Multiemployer Plan, to which any ERISA Affiliate incurs or otherwise has or could reasonably be expected  to have any obligation or Liabilities (including under Section 4069 of ERISA).  “TOI Parties” means the Loan Parties and the PA Entities.  “Trademarks” means, collectively, all of the following: (a) all trademarks, trade names, corporate  names, company names, business names, fictitious business names, trade styles, service marks, logos, other  business identifiers, prints and labels on which any of the foregoing have appeared or appear, all  registrations and recordings thereof, and all applications in connection therewith including those listed on  any schedule to any Trademark Security Agreement; (b) all renewals thereof; (c) all income, royalties,  damages and payments now or hereafter due and/or payable under any of the foregoing or with respect to  any of the foregoing including damages and payments for past, present and future infringements of any of  the foregoing; (d) the right to sue for past, present and future infringements of any of the foregoing; (e) all  rights corresponding to any of the foregoing throughout the world; and (f) all goodwill associated with and  symbolized by any of the foregoing.  “Trade Secrets” means all right, title and interest (and all related IP Ancillary Rights) arising under  any Applicable Law in or relating to trade secrets.  “Trading Day” has the meaning set forth in the Notes.  “Transaction Related Information” has the meaning set forth in Section 3.28(l).  “Transactions” means (a) the funding of the Disbursement and (b) the payment of fees,  commissions, costs and expenses in connection with each of the foregoing.  “Treasury Yield” means a yield determined by the Agent by reference to the most recent Federal  Reserve Statistical Release H.15 (519) (or any successor or substitute publication of the Federal Reserve  Board) that has become publicly available at least two (2) Business Days prior to the applicable date of any  prepayment, payment, redemption or repayment hereunder that is subject to a Make Whole Amount, and  shall be the most recent weekly average yield to maturity (expressed as a rate per annum) under the caption  “Treasury Constant Maturities” for the year corresponding to the remaining average life of the Loans, as  determined by the Agent, through the ninetieth (90th) day preceding the third anniversary of the Closing  Date had the Loans not been prepaid, plus 50 basis points. If no such “Treasury Constant Maturities” shall  exactly correspond to such remaining average life of the Loans being prepaid, as determined by the Agent,  yields for the two most closely corresponding published “Treasury Constant Maturities” shall be used to  interpolate a single yield on a straight-line basis (rounding, in the case of relevant periods, to the nearest  month). The Treasury Yield shall be computed to the fifth decimal place and then rounded to the fourth  decimal point.  “TRICARE” means, collectively, a program of medical benefits covering former and active  members of the uniformed services and certain of their dependents, financed and administered by the United  States Departments of Defense, Health and Human Services and Transportation, and all Applicable Laws  applicable to such programs.  

 

 22  US_153737865v8  “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New  York or any other applicable jurisdiction, the laws of which are required to be applied in connection with  the issue of perfection of security interests.   “United States” and “U.S.” each means the United States of America.  “USA Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools  Required to Intercept and Obstruct Terrorism Act of 2001, P.L. 107-56, as amended from time to time.  “Warrants” has the meaning set forth in Section 2.9(a).  “Warrant Shares” has the meaning set forth in Section 3.18.  Section 1.2 Interpretation. The division of this Agreement and the other Facility Documents into  Articles and Sections and the use of headings and captions is for convenience of reference only and shall  not modify or affect the interpretation or construction of this Agreement or any of its provisions. The words  “herein,” “hereof,” “hereunder,” “hereinafter” and “hereto” and words of similar import refer to this  Agreement or other applicable Facility Document. The term “or” has, except where otherwise indicated,  the inclusive meaning represented by the phrase “and/or.” The term “documents” and “agreements” include  any and all instruments, documents, agreements, certificates, indentures, notices and other writings,  however evidenced. The use in any of the Facility Documents of the word “include” or “including,” when  following any general statement, term or matter, shall not be construed to limit such statement, term or  matter to the specific items or matters set forth immediately following such word or to similar items or  matters, whether or not non-limiting language (such as “without limitation” or “but not limited to” or words  of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or  matters that fall within the broadest possible scope of such general statement, term or matter. References to  a specified Article, Exhibit, Section or Schedule shall be construed as a reference to that specified Article,  Exhibit, Section or Schedule of this Agreement (or other applicable Facility Document). Unless specifically  stated otherwise, any reference to any of the Facility Documents means such document as the same shall  be amended, restated, supplemented or otherwise modified and from time to time in effect in accordance  with the terms hereof or thereof, as applicable. The references to “assets” and “properties” in the Facility  Documents are meant to be mean the same and are used throughout the Facility Documents  interchangeably, and such words shall be deemed to refer to any and all tangible and intangible assets and  properties, including cash, securities, Stock, accounts and contract rights. Terms (including uncapitalized  terms) not otherwise defined herein and that are defined in the UCC shall have the meanings therein  described. The payment, prepayment, redemption or repayment of any principal, interest, fees, charges,  amounts and/or other Obligations under this Agreement or the other Facility Documents (including the  Make Whole Amount and the Exit Fee) shall be made in cash in Dollars unless expressly stated otherwise  herein or therein. Any reference to “payment in full,” “payment in full in cash,” “paid in full,” “paid in full  in cash,” “repaid in full,” “repaid in full in cash,” “prepaid in full,” “prepaid in full in cash,” “redeemed in  full,” “redeemed in full in cash” or any other term or word of similar effect used in this Agreement or any  other Facility Document with respect to the Loans or the Obligations shall mean all Obligations (including  any Make Whole Amount and the Exit Fee, but excluding (x) unasserted contingent indemnification  obligations and (y) those Obligations under any Facility Document that are not due or payable at the time  when all other Obligations are paid in full in cash) have been repaid in full (i) in cash and, as and to the  extent applicable pursuant to Section 2.9, satisfied through the issuance of Warrants) or (ii) satisfied through  the issuance of Conversion Shares in respect of the principal amount of the Loans and in cash in respect of  all other Obligations, in each case in accordance and compliance with the terms and provisions of the Notes,  this Agreement and the other Facility Documents, but, for the avoidance of doubt, solely to the extent that,  after giving effect to both the payment in cash and such payment through the issuance of Warrants and/or  Conversion Shares, the full amount of all such Obligations have been fully and completely satisfied))  

 

 23  US_153737865v8  (excluding contingent claims for indemnification to the extent no claim giving rise thereto has been  asserted) have been repaid in full in cash (or, as applicable, partially paid in cash and partially satisfied  through the issuance of the Warrants and/or Conversion Shares in accordance and compliance with the  terms and provisions of the Notes, this Agreement and the other Facility Documents, but, for the avoidance  of doubt, solely to the extent that, after giving effect to both the payment in cash and such payment through  the issuance of the Warrants and/or Conversion Shares, the entire amount of all such Obligations have been  satisfied in full) and have been fully performed.  Section 1.3 Business Day Adjustment. Except as otherwise expressly stated herein or in any other  Facility Document (and except on the Maturity Date or any date of acceleration of any of the Obligations,  in which case, such payment or performance shall be due on or prior to such day regardless of whether such  day is a Business Day), if the day by which any payment or other performance is due to be made is not a  Business Day, that payment or performance shall be made by the next succeeding Business Day unless that  next succeeding Business Day falls in a different calendar month, in which case that payment or other  performance shall be made by the Business Day immediately preceding the day by which such payment or  other performance is due to be made; provided that interest will continue to accrue for each additional day  in connection therewith.  Section 1.4 Loan Records.  (a) The Borrower shall record on its books and records the amount of the Loans, the  interest rate applicable thereto, all payments of principal and interest thereon and the principal  balance thereof from time to time outstanding.  (b) The Agent, acting solely for this purpose as a non-fiduciary agent (solely for Tax  purposes) shall establish and maintain at one of its offices a record of ownership (the “Register”)  in which the Agent agrees to register by book entry the interests (including any rights to receive  payment hereunder) of each Lender in the Loans and any assignment of any such interest or  interests, and accounts in the Register in accordance with its usual practice in which it shall record  (i) the names and addresses of the Lenders (and any change thereto pursuant to this Agreement),  (ii) the amount of the Loans and each funding of any participation therein, (iii) the amount of any  principal, interest, fee or other amount due and payable or paid, and (iv) any other payment received  by the Lenders from the Borrower and its application to the Loans. Reasonably promptly after  making each such registration, the Agent shall provide written notice thereof to the Borrower.  The  entries in the Register shall be conclusive, in the absence of manifest error, and the Borrower, each  Lender and the Agent shall treat each Person whose name is recorded in the Register as the owner  of the Loans for all purposes of this Agreement.   (c) The Loans made by each Lender are evidenced by this Agreement. Additionally,  the Borrower shall execute and deliver to each Lender (and/or, if applicable and if so requested by  any assignee Lender pursuant to the assignment provisions of Section 9.4) on the Closing Date (or,  if such assignment is made after the Closing Date, promptly (and, in any event, within three (3)  Business Days thereof) after such Lender’s request) a Note, payable to such Lender in an amount  equal to the unpaid principal amount of applicable Loans held by such Lender (which, at the request  of such Lender, may provide separate Notes for separate or different parts of the Loans held by  such Lender). The ability of any Loans to convert to Conversion Shares is set forth in the Note  related to such Loan. Notwithstanding anything to the contrary contained in this Agreement, the  Loans (including any Notes evidencing the Loans) are registered obligations, the right, title and  interest of the Lenders and their successors and assignees in and to the Loans shall be transferable  only upon notation of such transfer in the Register and no assignment thereof shall be effective  

 

 24  US_153737865v8  until recorded therein. This Section 1.4 shall be construed so that the Loan is at all times maintained  in “registered form” within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code.  (d) The Borrower, the Agent and the Lenders shall treat each Person whose name is  recorded in the Register as a Lender for all purposes of this Agreement. Information contained in  the Register with respect to any Lender shall be available for access by the Borrower or any Lender  at any reasonable time and from time to time upon reasonable prior written notice.  Section 1.5 Accounting Terms and Principles.  All accounting determinations required to be made  pursuant hereto shall, unless expressly otherwise provided herein, be made in accordance with GAAP. No  change in the accounting principles used in the preparation of any financial statement hereafter adopted by  any Loan Party or any of its Subsidiaries shall be given effect for purposes of measuring compliance with  any provision of this Agreement or otherwise determining any relevant ratios and baskets which govern  whether any action is permitted hereunder unless the Borrower and the Required Lenders agree to modify  such provisions to reflect such changes in GAAP, and unless such provisions are modified, all financial  statements and similar documents provided hereunder shall be provided together with a reconciliation  between the calculations and amounts set forth therein before and after giving effect to such change in  GAAP.  Section 1.6 Officers. Any document, agreement or instrument delivered under the Facility Documents  that is signed by an Authorized Officer or another officer of a Loan Party shall be conclusively presumed  to have been authorized by all necessary corporate, partnership, limited liability company and/or other  action on the part of such Loan Party, and such Authorized Officer or other officer shall be conclusively  presumed to have acted on behalf of such Loan Party in such person’s capacity as an officer of such Loan  Party and not in any individual capacity.  ARTICLE 2  AGREEMENT FOR THE LOAN  Section 2.1 Disbursements.  (a) Disbursement of Loans. Each Lender on the Closing Date (or such later  date required pursuant to when the written notice regarding the Disbursement was  delivered to each Lender) severally but not jointly agrees to lend to the Borrower on such  date, the principal amount of the senior secured convertible term loans set forth opposite  such Lender’s name in Annex A under the heading “Convertible Loan Amount” (the  “Convertible Loan”) by making such amounts available to the Borrower by promptly  wiring such amounts to an account or accounts designated in writing by the Borrower on  the proposed date of funding. Amounts borrowed under this Section 2.1(a) are referred to  as the “Disbursement.”  (b) No Re-Borrowing. Amounts borrowed hereunder that are paid, repaid,  redeemed and/or prepaid may not be re-borrowed under any circumstance.   Section 2.2 Payments; Prepayments; Make Whole Amount; Prepayment Fee.  (a) The Borrower shall pay in cash (and/or in Warrants, to the extent applicable  pursuant to the terms set forth in Section 2.9) to each of the Lenders its Pro Rata Share (i) of the  outstanding principal amount of the Obligations and all other Obligations on the earlier (such earlier  date, the “Facility Termination Date”) of (i) the Maturity Date and (ii) the date the principal amount  of the Obligations is declared to be or automatically becomes due and payable following an Event  

 

 25  US_153737865v8  of Default.  In addition to the foregoing, the outstanding principal amount of the Obligations and  all other Obligations shall be paid in accordance with the terms set forth in the Notes.   (b) No principal amount of the Loans shall be permitted to be voluntarily prepaid,  repaid, redeemed or paid by any Loan Party prior to the Maturity Date (other than pursuant to an  Optional Redemption).  Notwithstanding the foregoing, if any principal on the Loans is prepaid,  repaid, redeemed or paid at any time, for any reason (including as a result of an acceleration of the  Loans following the occurrence of an Event of Default, an exercise of any Secured Party’s rights  or remedies available under the Facility Documents, upon the consummation of a Change of  Control, by any optional prepayment or termination or otherwise, including pursuant to a Major  Transaction Redemption, an Optional Redemption or any reduction in any principal on the Loans  upon any Major Transaction Conversion or conversion of the Notes or pursuant to Section 2.2(e)),  then in addition to the principal amount of the Loans and other Obligations and the issuance of  Warrants pursuant to Section 2.9 or issuance of the Conversion Shares (as applicable)), the  Borrower shall contemporaneously pay in cash (i) any accrued and unpaid interest owed on such  principal, (ii) solely in the case of a prepayment, repayment, redemption or payment (x) following  the occurrence of an Event of Default or an exercise of any Secured Party’s rights or remedies  available under the Facility Documents, or (y) in connection with a Major Transaction Redemption  or an Optional Redemption (which for the avoidance of doubt, does not include any conversion of  the Notes into Conversion Shares), the Make Whole Amount and (iii) except in the case of any  Major Transaction Conversion in respect of a Company Share Major Transaction, other conversion  of the Notes into Conversion Shares (except a Successor Major Transaction, in which case the Exit  Fee shall be payable) or payment of the Exercise Price of any Warrant through a reduction of  principal as provided in Section 2.2(e), the Exit Fee, in each case, applicable to the principal amount  of the Loans so prepaid, repaid, redeemed, paid or otherwise reduced, which Make Whole Amount  and Exit Fee shall be deemed an Obligation and shall be fully earned as of the Closing Date.  The  Exit Fee, as applicable, and Make Whole Amount Fee shall be paid by the Borrower to the Lenders  based on their respective Pro Rata Shares of the principal amount of the Loans prepaid, repaid,  redeemed, paid or otherwise reduced on the date of such prepayment, repayment, redemption,  payment or other reduction.   The Parties acknowledge and agree that, in light of the impracticality and extreme difficulty  of ascertaining actual damages, the Exit Fee, as applicable, and Make Whole Amount are intended  to be reasonable calculations of the actual damages that would be suffered by the Secured Parties  as a result of any such prepayment, repayment, redemption, payment, other reduction or  termination. The Parties further acknowledge and agree that the Agent and the Lenders would not  have entered into this Agreement without the Loan Parties agreeing to pay the Make Whole Amount  and Exit Fee in the aforementioned instances. The Parties hereto further acknowledge and agree  that the Make Whole Amount and Exit Fee are not intended to act as a penalty or to punish the  Borrower or any other Loan Party for any such prepayment, repayment, redemption, payment or  other reduction.  (c) Each cash payment, repayment, redemption and prepayment by the Borrower or  any other Loan Party shall be applied (i) first, to all fees, costs and expenses (including any  attorneys’ fees) owed to the Agent under the Facility Documents, (ii) second, ratably to all fees,  costs and expenses (including any attorneys’ fees) owed to any Lender under the Facility  Documents, (iii) third, ratably to accrued and unpaid interest owed to the Lenders under the Facility  Documents, (iv) fourth, ratably to the principal amount of the Loans owed to the Lenders (including  any Make Whole Amount and Exit Fee), and (v) fifth, to all other Obligations owing to Agent, any  Lender or any other Secured Party, and, with respect to any such Obligations owed to the Lenders,  

 

 26  US_153737865v8  shall be allocated among the Lenders in accordance with and in proportion to their respective Pro  Rata Shares.  (d) Any conversions of the Loans (and Notes evidencing such Loans) by any Lender  into Conversion Shares, any prepayments of principal by the Borrower or any other Loan Party  (whether in cash or otherwise) or any payment of the Exercise Price (as defined in the applicable  Warrant) of any Warrant by reducing the principal amount of the Loans in an amount equal to such  Exercise Price, shall be applied against, and reduce, principal repayments required pursuant to  Section 2.2(a) with respect to each applicable Lender’s Loans (and Notes evidencing such Loans),  in each case, as of the date of such applicable conversion or exercise or applicable cash prepayment  until the earlier to occur of (i) the time such principal repayment obligation has been satisfied in  full (whether by repayment or as a result of Conversions by the Lenders), and (ii) 5:00 p.m. (New  York City time) on the Trading Day immediately preceding the date such principal repayment is  due (i.e. following the earlier of clauses (i) and (ii), such conversion or prepayment would be  applied against the principal repayment required pursuant to Section 2.2(a)).   (e) Notwithstanding the foregoing, any Lender which is also a holder of Warrants  may, at such Lender’s sole option, in accordance with the terms of the applicable Warrant, pay the  Exercise Price (as defined in the applicable Warrant) by reducing the principal amount of such  Lender’s Loans in an amount equal to such Exercise Price, in connection with a Note Exchange  Exercise (as defined in the applicable Warrant) and in accordance with Section 2(d) of the  applicable Warrant.  For the avoidance of doubt and notwithstanding anything to the contrary  contained herein, the reduction of principal set forth in this Section 2.2(e) does not constitute and  is not associated with the issuance of a new warrant or with the payment of a Make Whole Amount.   Section 2.3 Payment Details. All payments, prepayments, redemptions and repayments of the  Obligations by the Borrower or any other Loan Party hereunder and under any of the other Facility  Documents shall be made to the applicable Secured Party for the benefit of the recipient of such payment  and shall be made without setoff or counterclaim. Payments, prepayments, redemptions and repayments of  any amounts and other Obligations due to Agent, the Lenders or the other Secured Parties under this  Agreement or the other Facility Documents shall be made in cash in Dollars in immediately available funds  prior to 2:00 p.m. (New York City time) on the date that any such payment is due, using the wire information  or address for the Agent or such applicable Lender that is set forth on Schedule 2.3 or at such other bank or  place as the Agent or such applicable Lenders shall from time to time designate in writing at least three (3)  Business Days prior to the date such payment is due (or for any other Secured Party at such bank or place  as such Secured Party shall from time to time designate in writing). Any payment received by the Agent,  any Lender or any other Secured Party after such time may, in Agent’s or such applicable Lender’s or  Secured Party’s discretion, be deemed to have been made on the following Business Day. The Borrower  shall pay all and any fees, costs and expenses (administrative or otherwise) imposed by banks, clearing  houses or any other financial institutions in connection with making any payments under any of the Facility  Documents.  Section 2.4 Taxes.  (a) Any and all payments hereunder or pursuant to any other Facility Document shall  be made free and clear of and without deduction for Taxes except as required by Applicable Law.  If any Loan Party shall be required by Applicable Law to deduct or withhold any Taxes from or in  respect of any sum payable hereunder or pursuant to any other Facility Document, (i) such Loan  Party shall be entitled to make such deductions or withholding, (ii) such Loan Party shall pay the  full amount deducted or withheld to the applicable Governmental Authority in accordance with  Applicable Law, and (iii) to the extent that the deduction or withholding is made on account of  

 

 27  US_153737865v8  Indemnified Taxes, the sum payable by the applicable Loan Party shall be increased by as much as  shall be necessary so that after making all required deductions or withholdings of Indemnified  Taxes (including deductions or withholdings of Indemnified Taxes applicable to additional sums  payable under this Section 2.4), each Lender or Agent shall receive an amount equal to the sum it  would have received had no such deductions or withholdings of Indemnified Taxes been made (any  and all such additional amounts payable being hereinafter referred to as “Additional Amounts”).  As soon as practicable, but in any event within thirty (30) days, after the date of any payment of  such Taxes, the applicable Loan Party shall furnish to the applicable Lender or Agent the original  or a certified copy of a receipt evidencing payment thereof or other evidence of such payment  reasonably satisfactory to such Lender.  (b) In addition, the Loan Parties shall pay all Other Taxes to the applicable  Governmental Authority in accordance with Applicable Law. Within thirty (30) days after the date  of any payment of Other Taxes by any Loan Party, the Borrower shall furnish to the applicable  Lender or Agent the original or a certified copy of a receipt evidencing payment thereof or other  evidence of such payment reasonably satisfactory to such Lender or Agent.  (c) The Borrower shall indemnify, within ten (10) days after receipt of demand  therefor, each Lender or Agent for all Indemnified Taxes (including all Indemnified Taxes imposed  on amounts payable under this Section 2.4(c)) paid or payable by such Lender or Agent, and any  reasonable expenses arising therefrom or relating thereto, whether or not such Indemnified Taxes  were correctly or legally asserted. A certificate of the applicable Lender or Agent setting forth the  amounts to be paid thereunder and delivered to the Borrower shall be absolute, conclusive and  binding, absent manifest error.  (d) (i) Any Lender that is entitled to an exemption from or reduction of withholding  Tax with respect to payments made under any Facility Document shall deliver to the Borrower and  the Agent, at the time or times reasonably requested by the Borrower or the Agent, such properly  completed and executed documentation reasonably requested by the Borrower or the Agent as will  permit such payments to be made without withholding or at a reduced rate of withholding.  In  addition, any Lender, if reasonably requested by the Borrower or the Agent, shall deliver such other  documentation reasonably requested by the Borrower or the Agent as will enable the Borrower or  the Agent to determine whether or not such Lender is subject to backup withholding or information  reporting requirements.  Notwithstanding the foregoing, except for the documentation required to  be provided by such Lender pursuant to Section 2.4(d)(ii), a Lender shall not be required to provide  any information or documentation with respect to its investors that such Lender  in its reasonable  judgment determines 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:  (A) Each Lender that is a United States person (as such term is defined in Section 7701(a)(30) of the  Code) (“U.S. Person”) shall, on or before the date on which the Lender becomes a party to this Agreement,  provide to Borrower a properly completed and executed IRS Form W-9 certifying that such Lender is not  subject to backup withholding tax.   (B) Each Lender that is not a U.S. Person (a “Foreign Lender”) shall, on or before the date on which  such Foreign Lender becomes a party to this Agreement, provide Borrower and the Agent with a properly  completed and executed IRS Form W-8ECI, W-8BEN, W-8BEN-E, W-8IMY or other applicable forms  (together with any required supporting documentation), or any other applicable certificate or document  

 

 28  US_153737865v8  reasonably requested by the Borrower, and, if such Foreign Lender is relying on the portfolio interest  exception of Section 871(h) or Section 881(c) of the Code (or any successor provision thereto), shall also  provide the Borrower and the Agent with a certificate (the “Portfolio Interest Certificate”) representing that  such Foreign Lender is not a “bank” for purposes of Section 881(c) of the Code (or any successor provision  thereto), is not a 10% holder of the Borrower described in Section 871(h)(3)(B) of the Code (or any  successor provision thereto), and is not a controlled foreign corporation receiving interest from a related  person (within the meaning of Sections 881(c)(3)(C) and 864(d)(4) of the Code or any successor provisions  thereto). 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 Portfolio Interest  Certificate on behalf of such direct or indirect partners. Each Lender shall provide new forms (or successor  forms) as reasonably requested by the Borrower or the Agent from time to time and shall notify the  Borrower in writing within a reasonable time after becoming aware of any event requiring a change in the  most recent forms previously delivered by such Lender to the Borrower.  The Agent shall provide (and, at  all times be eligible to provide) t the Borrower a valid and duly completed IRS Form W-9 establishing that  it is not subject to US backup withholding.  (e) If a payment 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, such Lender shall deliver to the Borrower and the Agent, at the  times prescribed by law or as reasonably requested by the Borrower or the Agent, such  documentation as is required in order for the Borrower or the Agent to comply with its obligations  under FATCA, to determine that such Lender has or has not complied with its obligations under  FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes  of this Section 2.4(e), “FATCA” shall include any amendments made to FATCA after the date of  this Agreement.  (f) Each Lender and Agent agrees that if  it becomes aware that any form or  certification it previously delivered has become inaccurate in any respect, it shall update such form  or certification or promptly notify the Borrower and the Agent in writing of its legal inability to do  so.  (g) If a Lender or the Agent determines, in its sole discretion exercised in good faith,  that it has received a refund of any Indemnified Taxes as to which it has been indemnified pursuant  to this Section 2.4 (including by the payment of Additional Amounts), such Lender or the Agent  shall promptly pay such refund (but only to the extent of indemnity payments made or Additional  Amounts paid under this Section 2.4 with respect to the Taxes refunded) to the Borrower, net of all  out-of-pocket expense (including any Taxes imposed thereon) of such Lender  or the Agent  incurred in obtaining such refund or making such payment, provided that the Borrower, upon the  request of such Lender or the Agent, agrees to repay the amount paid over to the Borrower (plus  any penalties, interest or other charges imposed by the relevant Governmental Authority) to such  Lender or the Agent if such Lender or the Agent is required to repay such refund to such  Governmental Authority. Notwithstanding anything to the contrary in this Section 2.4(g), in no  event shall a Lender or the Agent be required to pay any amount to the Borrower pursuant to this  Section 2.4(g), the payment of which would place such Lender or the Agent in a less favorable net  after-Tax position than such Lender or the Agent would have been in if the Tax subject to  indemnification and giving rise to such refund had not been deducted or otherwise imposed and the  indemnification payments with respect to such Tax had never been paid. Nothing in this Section  2.4(g) shall require any Lender to disclose any information it deems confidential (including its tax  returns) to any Person, including the Borrower.  

 

 29  US_153737865v8  (h) Notwithstanding anything else in this Agreement, in no event will any Loan Party  be required to pay any Additional Amounts or other indemnity payment under this Section 2.4 with  respect to withholding or other Taxes (other than Other Taxes) required in respect of the ownership  or disposition of the Conversion Shares, the Warrant, the Warrant Shares, the Registration Rights  Agreement or any substantially similar equity interest in the Borrower.  Section 2.5 Costs, Expenses and Losses. If, as a result of any failure by the Borrower or any other  Loan Party to pay any sums or Obligations due under this Agreement or any other Facility Document on  the due date therefor (after the expiration of any applicable grace periods, but without giving effect to any  grace period after the occurrence of an Event of Default of the type set forth in Section 8.1(d)), any Secured  Party shall incur costs, expenses and/or losses, by reason of the liquidation or redeployment of deposits  from third parties or in connection with obtaining funds to make or maintain the Loans, the Borrower shall  pay to such Secured Party upon request by such Secured Party, the amount of such costs, expenses and/or  losses within fifteen (15) days after receipt by the Borrower of a certificate from such Secured Party setting  forth in reasonable detail such costs, expenses and/or losses, along with supporting documentation. For the  purposes of the preceding sentence, “costs, expenses and/or losses” shall include any interest paid or  payable to carry any unpaid amount and any loss, premium, penalty or expense that may be incurred in  obtaining, liquidating or employing deposits of or borrowings from third parties and/or third Persons in  order to make, maintain or fund the Loans or any portion thereof.  Section 2.6 Interest. From and after the Closing Date, the outstanding principal amount of the Loans,  any overdue interest and any other amounts and Obligations shall bear interest at the Interest Rate  (calculated on the basis of the actual number of days elapsed in each month based on a year of 360 days).  Interest shall be paid in cash quarterly in arrears commencing on October 1, 2022 and on the first Business  Day of each January, April, July and October thereafter (each, an “Interest Payment Date”).  Notwithstanding the foregoing or anything to the contrary contained herein, on the date any principal  amount of the Loans is prepaid, repaid, redeemed, reduced or paid, or required to be prepaid, repaid,  redeemed, reduced or paid (each such date being deemed an Interest Payment Date), for any reason  hereunder (on the Maturity Date or otherwise), including a conversion under any of the Notes, all accrued  but unpaid interest on such principal amount shall be payable in cash.  Section 2.7 Interest on Late Payments; Default Interest.  (a) Without limiting the remedies available to the Secured Parties under the Facility  Documents or otherwise, to the maximum extent permitted by Applicable Law, if the Borrower or  any other Loan Party fails to make a required payment of principal or interest on any Loan or make  a required payment of any other Obligation when due (in each case, subject to any cure period  provided for in Section 8.1(a)), the Borrower shall pay, in respect of such principal, interest and  other Obligations, interest thereon at the rate per annum equal to the Interest Rate plus ten percent  (10%) for so long as such payment remains outstanding. Such interest shall be payable in cash on  demand.  (b) At the election of the Required Lenders while any Event of Default exists (or  automatically while any Event of Default under Section 8.1(a) or 8.1(d) exists), the Borrower shall  pay interest (after as well as before entry of judgment thereon to the extent permitted by Applicable  Law) on the Obligations (other than Obligations on which interest is payable at the rate set forth in  Section 2.7(a)), if any, from and after the date of occurrence of such Event of Default, at a rate per  annum equal to the Interest Rate then in effect for the Loans, plus two percent (2.0%). Such interest  shall be payable in cash on demand.  

 

 30  US_153737865v8  Section 2.8 Exit Fee. Notwithstanding anything to the contrary in the Facility Documents, at the time  any of the Loans are paid, repaid, discharged, redeemed or prepaid (whether before, at the time of or after  the Maturity Date or any acceleration, bankruptcy or Optional Redemption, Major Transaction Redemption  or otherwise) or upon a Successor Major Transaction Conversion, the Borrower shall pay to each Lender  its Pro Rate Share of a non-refundable exit fee (the “Exit Fee”) equal to 1.95% of the amount of Loans so  paid, repaid, redeemed, discharged or prepaid pursuant to the terms of the Notes; provided, however, that  no Exit Fee shall be payable upon any Major Transaction Conversion in respect of a Company Share Major  Transaction, other conversion of the Notes into Conversion Shares (except for a Successor Major  Transaction Conversion) or payment of the Exercise Price of any Warrant through a reduction of principal  as provided in Section 2.2(e). The Exit Fee is fully earned on the date hereof and shall be due and payable  in cash upon each such payment, repayment, redemption or prepayment of the applicable Loans.  Section 2.9  Warrants.  (a) On each date any principal amount of any of the Loans is paid, repaid, redeemed  or prepaid at any time prior to the Maturity Date (including upon any acceleration, bankruptcy,  Optional Redemption or otherwise but, for the avoidance of doubt not pursuant to (x) a Major  Transaction Redemption, (y) conversion of the Notes into Conversion Shares or Major Transaction  Conversion (as such term is defined in the Notes) or (z) any reduction of principal pursuant to  Section 2.2(e)), the Borrower shall issue to the Lender whose Loan is paid, repaid, redeemed or  prepaid a warrant to purchase an aggregate amount of Conversion Shares into which such principal  amount was convertible immediately prior to such payment, repayment, redemption or prepayment  at the then Conversion Price then in effect pursuant to the terms (computed without regard to any  limitations on conversion thereof) of the Note and at an exercise price per share equal to such  Conversion Price then in effect, such warrant to be in substantially the form of Exhibit C and with  an expiration date of the Maturity Date (each, a “Warrant” and, collectively, the “Warrants”).  Each  Warrant shall include a Cap Allocation Amount determined in accordance with Section 2(l) of the  Note being paid, repaid, redeemed or prepaid.  (b) Notwithstanding anything herein to the contrary, the class of Common Stock  issuable upon exercise of each of the Warrants shall (but, without duplication of any adjustment to  the Conversion Price that is reflected in the number of shares underlying such Warrants at the time  of their issuance) be adjusted to reflect any adjustments in the number of shares or class of Common  Stock into which such Warrant is exercisable that would have taken effect pursuant to the terms of  such Warrant had such Warrant been issued on the Closing Date and remained outstanding through  the date of such issuance.  Section 2.10 Return of Payments.  (a) Each Lender hereby agrees that, if the Agent or any subagent pays an amount to a Lender under  this Agreement in the belief or expectation that a related payment has been or will be received by the Agent  or subagent from the Borrower and such related payment is not received by the Agent or subagent, then the  Agent or subagent will be entitled to recover such amount from such Lender on demand without setoff,  counterclaim or deduction of any kind.  (b) If the Agent or subagent (x) notifies a Lender, or any Person who has received funds on behalf of  a Lender (any such Lender or other recipient (and each of their respective successors and assigns), a  “Payment Recipient”) that the Agent or subagent has determined in its sole discretion (whether or not after  receipt of any notice under immediately succeeding clause (c) that any funds (as set forth in such notice  from the Agent or subagent) received by such Payment Recipient from Agent, the subagent or any of their  Affiliates were erroneously or mistakenly transmitted to, or otherwise erroneously or mistakenly received  

 

 31  US_153737865v8  by, such Payment Recipient (whether or not known to such Payment Recipient on its behalf) (any such  funds, whether transmitted or received as a payment, prepayment or repayment of principal, interest, fees,  distribution or otherwise, individually and collectively, an “Erroneous Payment”) and (y) demands in  writing the return of such Erroneous Payment (or a portion thereof) (provided, that, without limiting any  other rights or remedies (whether at law or in equity), the Agent or subagent may not make any such demand  under this clause (b) with respect to an Erroneous Payment unless such demand is made within ninety (90)  Business Days of the date of receipt of such Erroneous Payment by the applicable Payment Recipient), such  Erroneous Payment shall at all times remain the property of the Agent or subagent pending its return or  repayment as contemplated below in this Section 2.10 and held in trust for the benefit of the Agent or  subagent, and such Lender shall (or, with respect to any Payment Recipient who received such funds on its  behalf, shall cause such Payment Recipient to) promptly, but in no event later than two (2) Business Days  thereafter (or such later date as the Agent or subject may, in its sole discretion, specify in writing), return  to the Agent or subagent the amount of any such Erroneous Payment (or portion thereof) as to which such  a demand was made, in same day funds (in the currency so received), together with interest thereon (except  to the extent waived in writing by the Agent or subagent) in respect of each day from and including the date  such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such  amount is repaid to the Agent or subagent in same day funds at the greater of the Federal Funds Rate and a  rate determined by the Agent or subagent in accordance with banking industry rules on interbank  compensation from time to time in effect, and to the extent permitted by applicable law, such Payment  Recipient shall not assert any right or claim to the Erroneous Payment, and hereby waives any claim,  counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim  by the Agent or subagent for the return of any Erroneous Payments received, including, without limitation,  waiver of any defense based on “discharge for value” or any similar theory or doctrine.  A notice of the  Agent or subagent to any Payment Recipient under this clause (b) shall be conclusive, absent manifest error.  (c) Without limiting immediately preceding clause (b), each Payment Recipient agrees that if it  receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment  of principal, interest, fees, distribution or otherwise) from the Agent or subagent (or any of their Affiliates)  (x) that is in a different amount than, or on a different date from, that specified in this Agreement or in a  notice of payment, prepayment or repayment sent by the Agent or subagent (or any of their Affiliates) with  respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice  of payment, prepayment or repayment sent by the Agent or subagent (or any of their Affiliates), or (z) that  such Payment Recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in  whole or in part), then in each such case:  (i) it acknowledges and agrees that (1) in the case of immediately preceding clauses (x) or (y), an error  and mistake shall be presumed to have been made (absent written confirmation from the Agent or subagent  to the contrary) or (2) an error and mistake has been made (in the case of immediately preceding clause  (z)), in each case, with respect to such payment, prepayment or repayment; and  (ii) such Lender shall (and shall use commercially reasonable efforts to cause any other recipient that  receives funds on its respective behalf to) promptly (and, in all events, within one (1) Business Day of its  knowledge (or deemed knowledge) of the occurrence of any of the circumstances described in immediately  preceding clauses (x), (y) and (z)) notify the Agent or subagent of its receipt of such payment, prepayment  or repayment, the details thereof (in reasonable detail) and that it is so notifying the Agent or subagent  pursuant to this clause (c), and upon demand from the Agent or subagent, it shall promptly, but in all events  no later than one (1) Business Day thereafter, return to the Agent or subagent the amount of any such  Erroneous Payment (or portion thereof) as to which such a demand was made in same day funds (in the  currency so received), together with interest thereon in respect of each day from and including the date such  Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount  is repaid to the Agent or subagent in same day funds at the greater of the Federal Funds Rate and a rate  

 

 32  US_153737865v8  determined by the Agent or subagent in accordance with banking industry rules on interbank compensation  from time to time in effect.  (d) Each Lender hereby authorizes the Agent or subagent to set off, net and apply any and all amounts  at any time owing to such Lender under any Loan Document, or otherwise payable or distributable by the  Agent or subagent to such Lender under any Loan Document with respect to any payment of principal,  interest, fees or other amounts, against any amount that the Agent or subagent has demanded to be returned  under immediately preceding clause (b).  (e) (A) In the event that an Erroneous Payment (or portion thereof) is not recovered by the Agent or  subagent for any reason, after demand therefor in accordance with immediately preceding clause (b), from  any Lender that has received such Erroneous Payment (or portion thereof) (and/or from any Payment  Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf) (and without  limiting the Agent’s or subagent’s rights and remedies under this Section 2.10) (such unrecovered amount,  an “Erroneous Payment Return Deficiency”), the Agent or subagent shall be subrogated to all the rights of  such Lender with respect to such amount, and an Erroneous Payment shall not pay, prepay, repay, discharge  or otherwise satisfy any Obligations owed by the Borrower.   (f) In addition to any rights and remedies of the Agent or subagent provided by law, the Agent or  subagent shall have the right, without prior notice to any Lender, any such notice being expressly waived  by such Lender, to the extent permitted by applicable law, with respect to any Erroneous Payment for which  a demand has been made in accordance with this Section 2.10 and which has not been returned to the Agent  or subagent, to set off and appropriate and apply against such amount any and all deposits (general or  special, time or demand, provisional or final but excluding trust accounts), in any currency, and any other  credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or  contingent, matured or unmatured, at any time held or owing by the Agent or subagent or any of their  Affiliate, branch or agency thereof to or for the credit or the account of such Lender.  The Agent and  subagent agrees promptly to notify the Lender after any such setoff and application made by the Agent or  subagent; provided, that the failure to give such notice shall not affect the validity of such setoff and  application.  (g) The parties hereto agree that (x) irrespective of whether the Agent or subagent may be equitably  subrogated, in the event that an Erroneous Payment (or portion thereof) is not recovered from any Payment  Recipient that has received such Erroneous Payment (or portion thereof) for any reason, the Agent or  subagent shall be subrogated to all the rights and interests of such Payment Recipient (and, in the case of  any Payment Recipient who has received funds on behalf of a Lender, to the rights and interests of such  Lender, as the case may be) under the Loan Documents with respect to such amount (the “Erroneous  Payment Subrogation Rights”) and (y) an Erroneous Payment shall not pay, prepay, repay, discharge or  otherwise satisfy any Obligations owed by the Borrower or any other Loan Party; provided that this Section  2.10 shall not be interpreted to increase (or accelerate the due date for), or have the effect of increasing (or  accelerating the due date for), the Obligations of the Borrower relative to the amount (and/or timing for  payment) of the Obligations that would have been payable had such Erroneous Payment not been made by  the Agent or subagent; provided, further, that for the avoidance of doubt, immediately preceding clauses  (x) and (y) shall not apply to the extent any such Erroneous Payment is, and solely with respect to the  amount of such Erroneous Payment that is, comprised of funds received by the Agent or subagent from  Borrower for the purpose of paying, repaying, discharging, or otherwise satisfying any Obligations.  (h) To the extent permitted by applicable law, no Payment Recipient shall assert any right or claim to  an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or  right of set-off or recoupment with respect to any demand, claim or counterclaim by the Agent or subagent  

 

 33  US_153737865v8  for the return of any Erroneous Payment received, including, without limitation, any defense based on  “discharge for value” or any similar doctrine.  (i) Each party’s obligations, agreements and waivers under this Section 2.10 shall survive the  resignation or replacement of the Agent or subagent, any transfer of rights or obligations by, or the  replacement of, a Lender, the termination of the Commitments and/or the repayment, satisfaction or  discharge of all Obligations (or any portion thereof) under any Loan Document.  ARTICLE 3  REPRESENTATIONS AND WARRANTIES OF THE LOAN PARTIES  In order to induce the Lenders to make the Loans pursuant to this Agreement and to induce Agent  and the Lenders to enter into this Agreement, the Loan Parties, jointly and severally, represent and warrant  on (i) the Closing Date (ii) each Disbursement Date, and (iii) each date such representation or warranty is  remade or deemed remade in any Facility Document, in each case, that:  Section 3.1 No Default. No Default or Event of Default has occurred or will result from the  transactions contemplated by the Facility Documents.  Section 3.2 Solvency. On the Closing Date (both before and after giving effect to the Transactions)  and on each Disbursement Date (both before and after giving effect to such Disbursement and the use of  proceeds thereof), each Loan Party (a) is Solvent and (b) has not taken action, and, to its knowledge, no  action has been taken by a third party, for the winding up, dissolution or liquidation or similar executory or  judicial proceeding in respect of, any Loan Party or for the appointment of a liquidator, custodian, receiver,  trustee, administrator or other similar officer for any Loan Party or any or all of its assets or revenues.  Section 3.3 Enforceability. This Agreement and each other Facility Document constitutes (or, in the  case of each of the Warrants when issued, will constitute), a legal, valid and binding obligation of such  Loan Party, enforceable against each Loan Party that is party thereto in accordance with its terms, except  as the enforcement hereof or thereof may be limited by insolvency, bankruptcy, reorganization, moratorium  or other similar Applicable Laws affecting creditors rights generally or by general equitable principles  (whether considered in a proceeding in equity or at law).  Section 3.4 Existence, Qualification and Power. Each Loan Party and, to the knowledge of any Loan  Party, each PA Entity is validly existing as a corporation, limited liability company or limited partnership,  as applicable, and is in good standing (to the extent such concept is applicable in the relevant jurisdiction)  under the laws of the jurisdiction of its incorporation, organization or formation, as applicable. Each Loan  Party and, to the knowledge of any Loan Party, each PA Entity, (a) has full power and authority (and all  Authorizations) to (i) own its assets, conduct its business and operate its facilities and (ii) with respect to  each of the Loan Parties, to (A) issue the Securities in accordance with the Facility Documents, (B) enter  into, execute, deliver and perform its obligations under, the Facility Documents, including the issuance of  the Securities and the reservation for issuance of the Conversion Shares and the Warrant Shares and (C)  consummate the transactions contemplated under the Facility Documents, and (b) is duly qualified as a  foreign corporation, limited liability company or limited partnership, as applicable, and licensed and in  good standing, under the laws of each jurisdiction where its ownership, lease or operation of property or  the conduct of its business requires such qualification or license, except, in each case of this clause (b),  where the failure to be so qualified, licensed or in good standing could not reasonably be expected,  individually or in the aggregate, to have a Material Adverse Effect.  Section 3.5 Litigation. No Proceeding is pending before or, to the knowledge of the Loan Parties,  threatened by, any Governmental Authority (a) to which any Loan Party and, to the knowledge of any Loan  

 

 34  US_153737865v8  Party, any PA Entity, is a party, (b) that purports to affect or pertain to the Facility Documents, the  Transactions or the other transaction contemplated hereby or thereby or (c) that has as the subject thereof  any assets owned by any Loan Party or any of its Subsidiaries, or, to the knowledge of any Loan Party, any  PA Entity, in each case, that could reasonably be expected, individually or in the aggregate, to have a  Material Adverse Effect. No injunction, writ, temporary restraining order or any order of any nature has  been issued by any court or other Governmental Authority purporting to enjoin or restrain the execution,  delivery or performance of this Agreement or any other Facility Document or directing that the transactions  provided for herein or therein not be consummated as herein or therein provided. None of the TOI Parties  or any of the directors (or equivalent persons) or officers of any TOI Party or any of its Subsidiaries has  been the subject of any investigation by the SEC or any other Governmental Authority regarding any  securities-law matter of otherwise involved (as a plaintiff, defendant, witness or otherwise) in securities- related litigation or other securities-related Proceedings during the past five (5) years.  Section 3.6 Corporate Authorization; Conflicts. This Agreement and the other Facility Documents  have been duly authorized, executed and delivered by each Loan Party and, to the extent applicable, the  holders of the Borrower’s Stock. The execution, delivery and performance of the Facility Documents by  each Loan Party party thereto and the consummation of the transactions contemplated herein and therein  will not (a) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute  a default under, or result in the creation or imposition of any Lien (other than pursuant to the Facility  Documents) upon any assets of any TOI Party pursuant to, any agreement, document or instrument to which  such Loan Party is a party or by which any Loan Party is bound or to which any of the assets or property of  any Loan Party is subject (including any PA Document), except, with respect to this clause (a), as could not  reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, (b) result in (x)  any violation, or conflict with any, of the provisions of the Organizational Documents or (y) any material  violation of, or conflict in any material respect, any of the provisions of the PA Documents, (c) result in the  violation of any Applicable Law, except, with respect to this clause (c), as would not reasonably be  expected, individually or in the aggregate, to have a Material Adverse Effect, (d) result in the violation of  any judgment, order, rule, corporate integrity agreement, regulation, determination or decree of any  Governmental Authority, or (e) affect any TOI Party’s or any Subsidiary of a TOI Party’s right to receive,  or reduce the amount of, payments and reimbursements from Third Party Payors, or materially adversely  affect any Health Care Permit of itself or any TOI Party.  Section 3.7 Governmental Authorizations. (a) (i) Each Loan Party and, to the knowledge of any Loan  Party, each PA Entity, holds, and is operating in compliance in all respects with, all franchises, grants,  Authorizations, licenses, permits, easements, consents, certificates and orders of any Governmental  Authority (collectively, “Required Authorizations”) required for the conduct of its business as currently  conducted, and (ii) all Required Authorizations are valid and in full force and effect, except as would not  reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect and (b) no  Authorization of, or registration, notice or filing with, any Governmental Authority is required for (i) the  execution, delivery and performance of any of the Facility Documents, and (ii) the consummation by any  Loan Party of the Transactions or the other transactions contemplated hereby or thereby, except for (A)  such as have already been obtained or made prior to the Closing Date that are in full force and effect, (B)  those required in connection with the exercise of remedies in respect of the Collateral, (C) other filings the  failure of which to obtain or make, individually or in the aggregate, has not had and could not reasonably  be expected, individually or in the aggregate, to have a Material Adverse Effect, (D) pursuant to applicable  federal and state securities laws, rules and regulations that are expressly contemplated by Section 6.8 and  by the Registration Rights Agreement, and (E) filings expressly contemplated by the Security Documents.  Section 3.8 Ownership of Real Estate and Personal Property. As of the Closing Date, the Real  Estate listed in Schedule 3.8 constitutes all of the Real Estate owned or leased by each Loan Party and each  of its Subsidiaries. Each Loan Party has good and marketable title to all of its material assets and property  

 

 35  US_153737865v8  free and clear of all Liens, except Permitted Liens. Except as could not reasonably be expected, individually  or in the aggregate, to have a Material Adverse Effect, the property held under lease by each Loan Party is  held under valid, subsisting and enforceable leases with only such exceptions with respect to any particular  lease as do not interfere in any material respect with the conduct of the business of such Loan Party.  Section 3.9 Intellectual Property. To the knowledge of each Loan Party, each Loan Party and its  Subsidiaries owns, licenses or otherwise has the right to use all Intellectual Property that is necessary and  material for the operation of its businesses as currently conducted. To the knowledge of each Loan Party,  (a) the conduct and operations of the businesses of each Loan Party and its Subsidiaries do not infringe any  Intellectual Property owned by any other Person in a manner that could reasonably be expected, individually  or in the aggregate, to have a Material Adverse Effect and (b) except as set forth on Schedule 3.9, as of the  Closing Date, no other Person has contested any right, title or interest of any Loan Party or any of its  Subsidiaries in, or relating to, any Intellectual Property owned by such Loan Party or Subsidiary, other than  as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.  Except as set forth on Schedule 3.9, as of the Closing Date, (x) there are no material Proceedings pending  (or, to the knowledge of any Loan Party, threatened in writing) affecting any Loan Party or any of its  Subsidiaries with respect to, (y) no judgment or order regarding any such claim has been rendered by any  competent Governmental Authority with respect to and (z) no settlement agreement or similar agreement  has been entered into by any Loan Party or any of its Subsidiaries (that would limit, cancel or challenge the  validity of any Loan Party’s or any of its Subsidiaries’ rights in any Intellectual Property owned by such  Loan Party or Subsidiary) with respect to, any such infringement, other than as could not reasonably be  expected, individually or in the aggregate, to have a Material Adverse Effect.   Section 3.10 Taxes. All U.S. federal, state and local income and franchise and other material Tax  returns, reports and statements (collectively, the “Tax Returns”) required to be filed by any Tax Affiliates  have been filed with the appropriate Governmental Authorities, all such Tax Returns are true and correct in  all material respects, and all Taxes, assessments and other governmental charges and impositions reflected  therein or otherwise due and payable (including in such Person’s capacity as a withholding agent)  have  been paid prior to the date on which any material Liability may be added thereto for non-payment thereof  except for those contested in good faith by appropriate proceedings diligently conducted and for which  adequate reserves are maintained on the books of the appropriate Tax Affiliate in accordance with GAAP.   Section 3.11 Service and Product Agreements. Other than customary and non-exclusive field  marketing agreements, no Loan Party has granted rights to market or sell its services or products to any  other Person, and is not bound by any agreement that affects the exclusive right of each Loan Party to  develop, license, market or sell its services or products.  Section 3.12 Compliance with Laws. Except as could not reasonably be expected, individually or in  the aggregate, to have a Material Adverse Effect, each Loan Party and, to the knowledge of any Loan Party,  each PA Entity, is in compliance with all Applicable Laws (including Health Care Laws) and  Authorizations.  Section 3.13 SEC Documents. The Borrower has filed, through the SEC’s Electronic Data Gathering,  Analysis, and Retrieval system (or successor thereto) (“EDGAR”), all of the SEC Documents within the  time frames prescribed by the SEC (including any available grace periods and extensions authorized by the  SEC) for the filing of such SEC Documents such that each filing was timely filed with the SEC. As of their  respective dates, or to the extent corrected by a subsequent restatement filed prior to the date that this  representation is made, each of the SEC Documents complied in all material respects with the requirements  of the Securities Act and/or the Exchange Act (as applicable) and the rules and regulations of the SEC  promulgated thereunder applicable to the SEC Documents. None of the SEC Documents, at the time filed  with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required  

 

 36  US_153737865v8  to be stated therein or necessary in order to make the statements therein, in the light of the circumstances  under which they were made, not misleading. Since the filing of the SEC Documents, no event has occurred  that would require an amendment or supplement to any of the SEC Documents and as to which such an  amendment or a supplement has not been filed and made publicly available on EDGAR on or prior to the  date this representation is made. The Borrower has not received any written comments from the SEC staff  that have not been resolved, to the knowledge of the Borrower, to the satisfaction of the SEC staff.  Section 3.14 Financial Statements; Financial Condition.   (a) As of their respective dates, the consolidated financial statements of the Borrower and its  Subsidiaries included in the SEC Documents complied as to form in all material respects with applicable  accounting requirements and the published rules and regulations of the SEC (including Regulation S-X)  with respect thereto. Such financial statements have been prepared in accordance with GAAP (subject, in  the case of unaudited quarterly financial statements, to normal year-end adjustments that are not material  individually or in the aggregate), and fairly present in all material respects the consolidated financial  position of the Borrower and its Subsidiaries as of the dates thereof and the consolidated results of their  operations, cash flows and changes in stockholders equity for the periods specified.   (b) There are no material off-balance sheet arrangements or any relationships with unconsolidated  entities or other Persons that (i) may have a material current or, to any of the Loan Parties’ or any of their  Subsidiaries’ knowledge, material future effect on any Loan Party’s or any of its Subsidiaries’ financial  condition, results of operations, liquidity, capital expenditures, capital resources or significant components  of revenue or expenses or (ii) that are required to be disclosed by the Borrower in the SEC Documents that  have not been so disclosed in the SEC Documents.   (c) The accounting firm that expressed its opinion with respect to the consolidated financial statements  included in the Borrower’s most recently filed annual report on Form 10-K, and reviewed the consolidated  financial statements included in the Borrower’s most recently filed quarterly report on Form 10-Q, was  independent of the Borrower pursuant to the standards set forth in Rule 2-01 of Regulation S-X promulgated  by the SEC and as required by the applicable rules and guidance of the Public Company Accounting  Oversight Board (United States), and such firm was otherwise qualified to render such opinion under  Applicable Law and the rules and regulations of the SEC.  (d) Neither the Borrower nor any of its Subsidiaries is required to file or will be required to file any  agreement, note, lease, mortgage, deed or other instrument entered into prior to the date this representation  is made and to which the Borrower or any of its Subsidiaries is a party or by which the Borrower or any of  its Subsidiaries is bound that has not been previously filed as an exhibit (including by way of incorporation  by reference) to the Borrower’s reports filed with the SEC under the Exchange Act. Other than (i) the  liabilities assumed or created pursuant to this Agreement and the other Facility Documents, (ii) liabilities  accrued for in the latest balance sheet included in the Borrower’s most recent periodic report (on Form 10- Q or Form 10-K) filed prior to the date this representation is made (the date of such balance sheet, the  “Latest Balance Sheet Date”) and (iii) liabilities incurred in the ordinary course of business since the Latest  Balance Sheet Date, the Borrower and its Subsidiaries do not have any other liabilities (whether fixed or  unfixed, known or unknown, absolute or contingent, asserted or unasserted, choate or inchoate, liquidated  or unliquidated, or secured or unsecured, and regardless of when any Proceeding with respect thereto is  instituted).   (e) The pro forma financial statements included in the SEC Documents (including by way of  incorporation by reference) comply, in all material respects, with the applicable requirements of Regulation  S-X promulgated by the SEC, the assumptions used in preparing such pro forma financial statements  provide a reasonable basis for presenting the significant effects directly attributable to the transactions or  

 

 37  US_153737865v8  events described therein, the related pro forma adjustments give appropriate effect to those assumptions,  and the pro forma columns therein reflect the proper application of those adjustments to the corresponding  historical financial statement amounts.   (f) Since the Latest Balance Sheet Date, (i) there has been no Material Adverse Effect or any event or  circumstance that could reasonably be expected, individually or in the aggregate, to have a Material Adverse  Effect and (ii) no Loan Party nor any of its Subsidiaries has sold any material assets, or entered into any  material transactions, outside of the ordinary course of business, and (iii) the Borrower has not declared,  paid or made any dividends or other distributions to holders of its Stock.   (g) All financial performance projections included in any SEC Document or otherwise publicly  disclosed by the Borrower represent the Borrower’s good faith estimate of future financial performance and  are based on assumptions believed by the Borrower to be fair and reasonable in light of current market  conditions, it being acknowledged and agreed by Agent and the Lenders that projections as to future events  are not to be viewed as facts and that the actual results during the period or periods covered by such  projections may differ from the projected results and such differences may be material.  Section 3.15 Accounting Controls. Each Loan Party and each of its Subsidiaries maintain a system of  internal accounting controls sufficient to provide reasonable assurance that (a) transactions are executed in  accordance with management’s general or specific authorizations, (b) transactions are recorded as necessary  to permit preparation of financial statements in conformity with GAAP and to maintain asset and liability  accountability, (c) access to assets or incurrence of liability is permitted only in accordance with  management’s general or specific authorization and (d) the recorded accountability for assets and liabilities  is compared with the existing assets and liabilities at reasonable intervals and appropriate action is taken  with respect to any differences. The Borrower and its Subsidiaries have (i) timely filed and made publicly  available on EDGAR all certifications, statements and documents required by (1) Rule 13a-14 or Rule 15d- 14 under the Exchange Act. The Borrower and its Subsidiaries maintain disclosure controls and procedures  required by Rule 13a-15 or Rule 15d-15 under the Exchange Act; such controls and procedures are effective  to ensure that the information required to be disclosed by the Borrower and its Subsidiaries in the reports  that they file with or submit to the SEC (A) is recorded, processed, summarized and reported accurately  within the time periods specified in the SEC’s rules and forms and (ii) is accumulated and communicated  to the Borrower’s (and, to the extent applicable, its Subsidiaries’) management, including its or their  principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding  required disclosure. The Borrower and its Subsidiaries maintain internal control over financial reporting  required by Rule 13a-15 or Rule 15d-15 under the Exchange Act; such internal control over financial  reporting is effective and does not contain any material weaknesses.  Section 3.16 ERISA. Except as set forth on Schedule 3.16, as of the Closing Date, no Loan Party or any  of their respective Subsidiaries maintains, contributes to, has an obligation to contribute to or has any  present intention to contribute to, any Title IV Plan or Multiemployer Plan; nor has any Loan Party or any  of their Subsidiaries taken any steps towards adopting or amending any Title IV Plan or contributing to or  incurring liability under a Multiemployer Plan. Except for those that could not reasonably be expected,  individually or in the aggregate, to have a Material Adverse Effect, (a) each Employee Benefit Plan, and  each trust thereunder, intended to qualify for tax exempt status under Section 401 or 501 of the Code or  other Laws so qualifies, (b) each Employee Benefit Plan is in compliance with applicable provisions of  ERISA, the Code and other Laws, (c) there are no existing or pending (or to the knowledge of any Loan  Party or any Subsidiary of a Loan Party, threatened) Proceedings (other than routine claims for benefits in  the normal course) or investigation involving any Employee Benefit Plan to which any Loan Party or any  Subsidiary of a Loan Party incurs or otherwise has or could have an obligation or any Liability and (d) no  ERISA Event has occurred or is reasonably expected to occur. On the Closing Date, no ERISA Event has  

 

 38  US_153737865v8  occurred in connection with which material obligations or material Liabilities of a Loan Party or a  Subsidiary of a Loan Party remain outstanding.  Section 3.17 Subsidiaries. As of the Closing Date, (a) all of the Subsidiaries of the Borrower and all  joint ventures and other partnerships in which any Loan Party or any of their Subsidiaries own Stock and  all PA Entities and their Subsidiaries are identified on Schedule 3.17, (b) the Stock of the Borrower and  each of its Subsidiaries identified on Schedule 3.17 is duly authorized, validly issued, fully paid and non- assessable (to the extent applicable thereto) and none of such Stock constitutes Margin Stock and (c)  Schedule 3.17 correctly sets forth the ownership interest of each of the Borrower’s Subsidiaries in each of  the Subsidiaries identified therein. All outstanding Stock of each Subsidiary of the Borrower is owned  beneficially and of record by a Loan Party or a Subsidiary of a Loan Party, free and clear of all Liens other  than (i) those in favor of Agent, for the benefit of the Secured Parties and (ii) Permitted Liens.   Section 3.18 Shares of Stock. All of the issued and outstanding shares of capital stock of the Borrower  and its Subsidiaries are duly authorized and duly and validly issued, fully paid and nonassessable, have  been issued in compliance with all federal and state and foreign securities laws and were not issued in  violation of or subject to any preemptive rights or other rights to subscribe for or purchase securities that  have not been waived in writing. The Borrower has reserved for issuance a number of shares of Common  Stock sufficient to cover all shares issuable upon conversion of, or otherwise pursuant to, the Notes (the  “Conversion Shares”) and upon the exercise of, or otherwise pursuant to, the Warrants (the “Warrant  Shares”) computed without regard to any limitations on the number of shares that may be issued on  conversion or exercise, as the case may be). Upon the issuance in accordance with the terms of the Facility  Documents (including the Notes), the holders of the Warrants and Notes will be entitled to the rights set  forth in the Warrants and Notes. The Warrant Shares issuable upon any exercise of the Warrants and the  Conversion Shares issuable upon conversion of the Notes ), in each case, have been duly authorized and,  when issued upon any such conversion, as applicable, will be duly and validly issued, fully paid and non- assessable and free from all taxes and Liens with respect to the issue thereof, with the holders thereof being  entitled to all rights accorded to a holder of Common Stock, and will not be issued in violation of, or subject  to, any preemptive or similar rights of any Person. All of the authorized, issued and outstanding shares of  Stock of the Borrower and each of its Subsidiaries (and, and in the case of its Subsidiaries, the holders  thereof) are set forth in Schedule 3.18, and, except as set forth in Schedule 3.18, there are no (a) Stock  options or other Stock incentive plans, employee Stock purchase plans or other plans, programs or  arrangements of the Borrower or any of its Subsidiaries under which Stock options, Stock or other Stock- based or Stock-linked awards are issued or issuable to officers, directors, employees, consultants or other  Persons, (b) outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any  character whatsoever relating to, or securities or rights convertible into or exchangeable or exercisable for,  any Stock of the Borrower or any of its Subsidiaries, or contracts, commitments, understandings or  arrangements by which the Borrower or any of its Subsidiaries is or may become bound to issue additional  Stock of the Borrower or any of its Subsidiaries, or options, warrants or scrip for rights to subscribe to, calls  or commitments of any character whatsoever relating to, or securities or rights convertible into or  exercisable or exchangeable for, any shares of Stock of the Borrower or any of its Subsidiaries,  (c) agreements or arrangements under which the Borrower or any of its Subsidiaries is obligated to register  the sale of any of their Stock or other securities under the Securities Act (except the Registration Rights  Agreement), (d) outstanding Stock or other securities or instruments of the Borrower or any of its  Subsidiaries that contain any redemption (mandatory or otherwise) or similar provisions, or contracts,  commitments, understandings or arrangements by which the Borrower or any of its Subsidiaries is or may  become bound to redeem a security of the Borrower or any of its Subsidiaries, (e) Stock or other securities  or instruments containing anti-dilution or similar provisions that may be triggered by the issuance of  securities of the Borrower or any of its Subsidiaries or (f) stock appreciation rights or “phantom stock”  plans or agreements or any similar plans or agreements to which Borrower or any of its Subsidiaries is a  party or by which the Borrower or any of its Subsidiaries is otherwise subject or bound. There are no (i)  

 

 39  US_153737865v8  stockholders’ agreements, voting agreements or similar agreements to which Borrower or any of its  Subsidiaries is a party or by which the Borrower or any of its Subsidiaries is otherwise subject or bound,  (ii) preemptive rights or any other similar rights to which any Stock of the Borrower or any of its  Subsidiaries is subject or (iii) any restrictions upon the voting or transfer of any Stock of the Borrower or  any of its Subsidiaries (other than restrictions on transfer imposed by U.S. federal and state securities laws).  The Borrower has received all required consents of its equity holders, warrant holders and other security  holders to waive any applicable anti-dilution provision or other adjustment of any other class or series of  Stock of the Borrower and of any outstanding warrants or convertible securities if any, that would otherwise  be triggered by reason of the issuance of the Warrants or the Warrant Shares or the Notes or the Conversion  Shares.  The issuance and delivery of the Warrants and Notes do not and, assuming full exercise of the  Warrants and/or conversion of the Notes, the exercise of the Warrants and conversion of the Notes will not:  (A) require approval from any Governmental Authority; (B) obligate the Borrower to offer to issue, or  issue, shares of Common Stock or other securities to any Person (other than the Secured Parties); or (C)  result in a right of any holder of the Borrower’s securities to adjust the exercise, conversion, exchange or  reset price under, and will not result in any other adjustments (automatic or otherwise) under, any securities  of the Borrower.  Each Loan Party has furnished to the Agent and each Lender true, correct and complete  copies of each Loan Party’s Organizational Documents and any amendments, restatements, supplements or  modifications thereto, and all other documents, agreements and instruments containing the terms of all  Stock and other securities of each Loan Party, including Stock convertible into, or exercisable or  exchangeable for, Common Stock or other Stock of any Loan Party or any of its Subsidiaries, and the  material rights of the holders thereof in respect thereto.  Section 3.19 Material Agreements. Schedule 3.19 sets forth in true, correct and complete detail all  contracts, agreements, leases, instruments and commitments to which any Loan Party or any of its  Subsidiaries are a party or by which any of them are bound, that has been, or the Borrower determines (or  should reasonably have determined) would be, required to be filed as an exhibit to the SEC Documents  pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K (collectively, the “Material Agreements”).   No Loan Party or any of its Subsidiaries is in breach or default under any Material Agreement in any  material respect, and, to the knowledge of the Loan Parties, no other party to a Material Agreement is in  default or breach thereunder in any material respect.  Section 3.20 Use of Proceeds; Margin Stock. The proceeds of the Loans are intended to be and shall  be used solely for the purposes set forth in and permitted by Section 6.19. No Loan Party and no Subsidiary  of any Loan Party is engaged principally or as one of its important activities in the business of purchasing  or selling Margin Stock or extending credit for the purpose of purchasing or carrying Margin Stock. As of  the Closing Date, except as set forth on Schedule 3.20, no Loan Party and no Subsidiary of any Loan Party  owns any Margin Stock.  Section 3.21 Environmental Matters. Except as set forth in Schedule 3.21 and except where any  failures to comply could not reasonably be expected to result, individually or in the aggregate, to have a  Material Adverse Effect, each Loan Party and each Subsidiary of each Loan Party (a) are and have been in  compliance with all applicable Environmental Laws, including obtaining and maintaining all  Authorizations and permits required by any applicable Environmental Law, (b) is not party to, and no Real  Estate currently (or to the knowledge of any Loan Party previously) owned, leased, subleased, operated or  otherwise occupied by or for any such Person is subject to or the subject of, any contractual obligation or  any pending or, to the knowledge of any Loan Party, threatened, Proceeding, audit, Lien, demand, dispute  or notice of violation or of potential liability or similar notice relating in any manner to any Environmental  Law, (c) has not caused a Release of Hazardous Materials at, to or from any Real Estate, (d) does not  currently (and, to the knowledge each any Loan Party, did not at any time previously) own, lease, sublease,  operate or otherwise occupy no Real Estate that is contaminated by any Hazardous Materials, (e) is not, and  has not been, engaged in, and has not permitted any current or former tenant to engage in, operations in  

 

 40  US_153737865v8  violation of any Environmental Law and (f) knows of no facts, circumstances or conditions reasonably  constituting notice of a violation of any Environmental Law by a Loan Party or any of its Subsidiaries,  including receipt of any information request or notice of potential responsibility under the Comprehensive  Environmental Response, Compensation and Liability Act or other Environmental Laws.  Section 3.22 Investment Company Act. None of any Loan Party, any Person controlling any Loan  Party or any Subsidiary of any Loan Party is an “investment company,” within the meaning of the  Investment Company Act, or otherwise registered or required to be registered under, the Investment  Company Act.  Section 3.23 Labor Relations. Except as set forth on Schedule 3.23, as of the Closing Date, (a) there is  no collective bargaining or similar agreement with any union, labor organization, works council or similar  representative covering any employee of any Loan Party or any of its Subsidiaries or, to the knowledge of  any Loan Party, any PA Entity or any of its Subsidiaries, (b) to the knowledge of any Loan Party, no petition  for certification or election of any such representative is existing or pending with respect to any employee  of any TOI Party or any Subsidiary of any TOI Party and (c) to the knowledge of any Loan Party, no such  representative has sought certification or recognition with respect to any employee of any TOI Party or any  Subsidiary of any TOI Party. There are no strikes, picketing, work stoppages, slowdowns or lockouts  existing, pending (or, to the knowledge of any Loan Party, threatened) against or involving any Loan Party  or any of its Subsidiaries or, to the knowledge of any Loan Party, any PA Entity or any of its Subsidiaries,  except for those that could not reasonably be expected, in the aggregate, to have a Material Adverse Effect.  Section 3.24 Jurisdictions of Organization; Chief Executive Office. Schedule 3.24 lists each Loan  Party’s jurisdiction of organization, legal name and organizational identification number, if any, and the  location of such Loan Party’s chief executive office or sole place of business, in each case as of the Closing  Date, and such Schedule 3.24 also lists all jurisdictions of organization and legal names of such Loan Party  for the five years preceding the Closing Date.  Section 3.25 Deposit and Other Accounts. Schedule 3.25 lists all banks and other financial institutions  securities intermediary or commodity intermediary at which any Loan Party maintains deposit, securities,  commodities or similar accounts as of the Closing Date, and such Schedule 3.25 correctly identifies the  name, address and any other relevant contact information reasonably requested by Agent or any Lender  with respect to each depository or intermediary, the name in which the account is held, a description of the  purpose of the account, and the complete account number therefor.  Section 3.26 Disclosure. None of the Loan Parties and their Subsidiaries and their respective officers,  directors and Affiliates has made any filing with the SEC (other than the SEC Documents), issued any press  release or made, distributed, paid for or approved (or engaged any other Person to make or distribute) any  other public statement, report, advertisement or communication on behalf of Loan Party or any of its  Subsidiaries or otherwise relating to any Loan Party or any of its Subsidiaries that contains any untrue  statement of a material fact or omits any statement of material fact necessary in order to make the statements  therein, in the light of the circumstances under which they are or were made, not misleading. None of the  statements contained in any Facility Document or exhibit, report, statement or certificate furnished by or  on behalf of any Loan Party or any of their Subsidiaries in connection with any Facility Document and the  Transactions (including the offering and disclosure materials, if any, delivered by or on behalf of any Loan  Party to any Secured Party prior to the Closing Date, but excluding any financial performance projections),  when taken as a whole, contains any untrue statement of a material fact or omits any material fact required  to be stated therein or necessary to make the statements made therein, in light of the circumstances under  which they are made, not materially misleading as of the time when made or delivered.  

 

 41  US_153737865v8  Section 3.27 Certain Federal Regulations. Each Loan Party and each of its Subsidiaries and, to the  knowledge of the Loan Parties, each PA Entity and each of its Subsidiaries, in compliance in all material  respects with all U.S. economic sanctions laws, executive orders and implementing regulations  (“Sanctions”) as administered by the U.S. Treasury Department’s Office of Foreign Assets Control  (“OFAC”) and the U.S. State Department. No Loan Party and none of its Subsidiaries and, to the knowledge  of the Loan Parties, no PA Entity and none of its Subsidiaries, (a) is a Person on the list of the Specially  Designated Nationals and Blocked Persons (the “SDN List”), (b) is a Person who is otherwise the target of  U.S. economic sanctions laws such that a U.S. Person cannot deal or otherwise engage in business  transactions with such Person, (c) is a Person organized or resident in a country or territory subject to  comprehensive Sanctions (a “Sanctioned Country”), or (d) is owned 50% or more or controlled by  (including by virtue of such Person being a director or owning voting shares or interests), or, to its  knowledge, after due inquiry, acts, directly or indirectly, for or on behalf of, any Person on the SDN List  or a government of a Sanctioned Country such that, in the case of each of the foregoing clauses (a) through  (d), the entry into, or performance under, this Agreement or any other Facility Document would be  prohibited by U.S. law. Each Loan Party and each of its Subsidiaries and, to the knowledge of the Loan  Parties, each PA Entity and each of its Subsidiaries is in compliance in all material respects with all  applicable laws related to terrorism or money laundering (“Anti-Money Laundering Laws”) including: (i)  all applicable requirements of the Currency and Foreign Transactions Reporting Act of 1970 (31 U.S.C.  5311 et. seq., (the Bank Secrecy Act)), as amended by Title III of the USA Patriot Act, (ii) the Trading with  the Enemy Act, (iii) Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 (66  Fed. Reg. 49079), and any other enabling legislation, executive order or regulations issued pursuant or  relating thereto and (iv) other applicable federal or state laws relating to “know your customer” or anti- money laundering rules and regulations. No Proceeding by or before any court or Governmental Authority  with respect to compliance by any Loan Party or any of its Subsidiaries or, to the knowledge of the Loan  Parties, by any PA Entity or any of its Subsidiaries, with any such Anti-Money Laundering Laws is pending  or, to the knowledge of each Loan Party and each Subsidiary of each Loan Party, threatened. Each Loan  Party and each of its Subsidiaries and, to the knowledge of the Loan Parties, each PA Entity and each of its  Subsidiaries, is in compliance in all material respects with all applicable anti-corruption laws, including the  U.S. Foreign Corrupt Practices Act of 1977 (“FCPA”) and the U.K. Bribery Act 2010 (“Anti-Corruption  Laws”). None of any Loan Party or any of its Subsidiaries, or, to the knowledge of the Loan Parties, any  PA Entity or any of its Subsidiaries, nor to the knowledge of any Loan Party or any Subsidiary thereof, any  director, officer, agent, employee or other Person acting on behalf of any TOI Party or any Subsidiary of  any TOI Party, has taken any action, directly or indirectly, that would result in a violation of applicable  Anti-Corruption Laws. Each Loan Party and each of its Subsidiaries and, to the knowledge of the Loan  Parties, each PA Entity and each of its Subsidiaries maintains and implements policies and procedures  reasonably designed to ensure compliance by each such TOI Parties, their Subsidiaries and their respective  directors, officers, employees and agents with Sanctions, Anti-Money Laundering Laws and Anti- Corruption Laws.  Section 3.28 Securities Law and Principal Market Matters.  (a) The Borrower and its Subsidiaries are in compliance in all material respects with  applicable provisions of the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations  thereunder (collectively, “Sarbanes-Oxley”).  (b) Neither the Borrower nor any of its Subsidiaries nor, to the Borrower’s knowledge,  any director, officer or employee, of the Borrower or any of its Subsidiaries, has received or  otherwise obtained any material complaint, allegation, assertion or claim, whether written or oral,  regarding the accounting or auditing practices, procedures, methodologies or methods of the  Borrower or any of its Subsidiaries or its internal accounting controls, including any complaint,  allegation, assertion or claim that the Borrower or any of its Subsidiaries has engaged in  

 

 42  US_153737865v8  questionable accounting or auditing practices. No attorney representing the Borrower or any of its  Subsidiaries, whether or not employed by the Borrower or any of its Subsidiaries, has reported  evidence of a material violation of securities laws or breach of fiduciary duty or similar violation  by the Borrower or any of its Subsidiaries or any of their respective officers, directors, employees  or agents to the Borrower’s or any of its Subsidiaries’ board of directors (or equivalent governing  body) or any committee thereof or to any director (or equivalent person) or officer of the Borrower  or any of its Subsidiaries. There have been no internal or SEC investigations regarding accounting  or revenue recognition discussed with, reviewed by or initiated at the direction of the chief  executive officer, the principal financial officer or the principal accounting officer (in each case, or  officer holding such equivalent position) of the Borrower or any of its Subsidiaries, the Borrower’s  or any of its Subsidiaries’ board of directors (or equivalent governing body) or any committee  thereof.  (c) The Borrower is not, and has not since November 12, 2021 been, a “shell  company” (as defined in Rule 12b-2 under the Exchange Act) or an issuer of the type identified in  Rule 144(i)(1)(i) under the Securities Act, and on November 18, 2021, the Borrower filed with the  SEC a Form 8-K that included “Form 10 Information” reflecting its status as an entity that is no  longer an issuer of the type identified in Rule 144(b)(1)(i) under the Securities Act. The Borrower  is eligible to register the Warrant Shares and the Conversion Shares for resale by the holders thereof  on a registration statement on Form S-1 under the Securities Act, and, as of the date of this  representation is made, there are no facts, conditions or circumstances that would cause the  Borrower not to be eligible to register the Warrant Shares and the Conversion Shares for resale by  the holders thereof on a registration statement on Form S-3 under the Securities Act on and after  November 18, 2022. The SEC has never issued any stop order or other order suspending the  effectiveness of any registration statement filed by the Borrower under the Securities Act or the  Exchange Act.  (d) Assuming the accuracy of the representations and warranties made by the Lenders  in Article 4 of this Agreement, the offer, sale and issuance by the Loan Parties of the Securities are  exempt from registration under the Securities Act (pursuant to Section 4(a)(2) thereof and Rule 506  of Regulation D thereunder or otherwise) and applicable state securities laws.  (e) None of the Loan Parties, any of its predecessors, any director, executive officer,  other officer of any Loan Party participating in the offering of the Securities, any beneficial owner  (as that term is defined in Rule 13d-3 under the Exchange Act) of 20% or more of any Loan Party’s  outstanding voting equity securities, calculated on the basis of voting power, any “promoter” (as  that term is defined in Rule 405 under the Securities Act) connected with any Loan Party at the  time this representation is made, any placement agent or dealer participating in the offering of the  Securities and any of such agents’ or dealer’s directors, executive officers, other officers  participating in the offering of the Securities (each, a “Covered Person”) is subject to any of the  “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a  “Disqualification Event”). The Borrower has exercised reasonable care to determine (i) the identity  of each person that is a Covered Person and (ii) whether any Covered Person is subject to a  Disqualification Event. Each Loan Party has complied in all material respects, to the extent  applicable, with its disclosure obligations under Rule 506(e). With respect to each Covered Person,  the Borrower has established procedures reasonably designed to ensure that the Borrower receives  notice from each such Covered Person of (A) any Disqualification Event relating to that Covered  Person, and (B) any event that would, with the passage of time, become a Disqualification Event  relating to that Covered Person, in each case occurring up to and including the date this  representation is made. No Loan Party is any other reason disqualified from reliance upon Rule 506  of Regulation D for purposes of the offer, sale and issuance of the Securities.  

 

 43  US_153737865v8  (f) Neither the Borrower, nor any of its Affiliates, nor any Person acting on its or their  behalf, has engaged or will engage in any form of general solicitation or general advertising (within  the meaning of Regulation D under the Securities Act) in connection with the offer, sale or issuance  of the Securities.  (g) Neither the Borrower, nor any of its Affiliates, nor any Person acting on its or their  behalf has, directly or indirectly, made, or will make, any offers or sales of any Stock or other  securities, or solicited or will solicit any offers to buy any Stock or other securities, under  circumstances that would require registration of any of the Securities under the Securities Act or  cause this offering of the Securities to be integrated with prior offerings by the Borrower for  purposes of any applicable stockholder approval provisions of the Principal Market or any other  authority.  (h) The Common Stock is registered pursuant to Section 12(b) of the Exchange Act,  and neither the Borrower nor any of its Subsidiaries has taken, or will take, any action designed to  terminate, or that is likely to have the effect of terminating, the registration of the Common Stock  under the Exchange Act; nor has the Borrower or any of its Subsidiaries received any notification  that the SEC is contemplating terminating such registration.   (i) None of the Loan Parties, or, to the knowledge of the Loan Parties, any of their  respective officers, directors or Affiliates and no one acting on any such Person’s behalf has, (i)  taken, directly or indirectly, any action designed to cause or to result in the stabilization or  manipulation of the price of the Common Stock of any other security of any Loan Party to facilitate  the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation  for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any  compensation for soliciting another to purchase any other securities of any Loan Party.  (j) Neither the Borrower nor any of its Subsidiaries is in violation of any of the rules,  regulations or requirements of the Principal Market, and, to the knowledge of the Borrower and its  Subsidiaries, there are no facts or circumstances that could reasonably lead to delisting or  suspension or termination of trading of the Common Stock on the Principal Market. Since 2019, (i)  the Common Stock has been listed or designated for quotation, as applicable, on the Principal  Market, (ii) trading in the Common Stock has not been suspended by the SEC or the Principal  Market, and (iii) neither the Borrower nor any of its Subsidiaries has received any communication,  written or oral, from the SEC or the Principal Market regarding the suspension or termination of  trading of the Common Stock on the Principal Market. The transactions contemplated by this  Agreement and the other Facility Documents, including the issuance and sale of the Warrant Shares  and Conversion Shares hereunder and thereunder do not contravene, or require stockholder  approval pursuant to, the rules and regulations of the Principal Market. The Warrant Shares and  Conversion Shares have been approved for listing on the Principal Market.  (k) The Common Stock is eligible for clearing through The Depository Trust  Company (“DTC”), through its Deposit/Withdrawal At Custodian (DWAC) system, and the  Borrower is eligible for and participating in the Direct Registration System (DRS) of DTC with  respect to the Common Stock. The transfer agent for the Common Stock is a participant in, and the  Common Stock is eligible for transfer pursuant to, DTC’s Fast Automated Securities Transfer  Program. The Common Stock is not, and has not at any time been, subject to any DTC “chill,”  “freeze” or similar restriction with respect to any DTC services, including the clearing of  transactions in shares of Common Stock through DTC.  

 

 44  US_153737865v8  (l)  Except for the Transactions (collectively, the “Transaction Related Information”),  no event, liability, development or circumstance has occurred or exists, or is contemplated to occur  with respect to the Borrower or any of its Subsidiaries, or any of its or their business, properties,  prospects, operations or financial condition, (i) that would be required to be disclosed by the  Borrower under applicable securities laws on a registration statement on Form S-1 filed with the  SEC relating to an issuance and sale by the Borrower of Common Stock or (ii) that, under applicable  securities laws, is required to have been, or be, publicly disclosed by the Borrower (on SEC Form  8-K otherwise) prior to, on or within four (4) Business Days after the date this representation is  made, and, in either case, that  has not been publicly disclosed by the Borrower at least one (1)  Business Day prior to the date this representation is made. None of the Loan Parties nor any of their  officers, directors (or equivalent persons), Affiliates, attorneys, agents or representatives or other  Persons acting on their behalf has provided or made available to any Secured Party or its Affiliates,  attorneys, agents or representatives with any information that constitutes or could be deemed to  constitute material, nonpublic information, other than the Transaction Related Information, which  shall be publicly disclosed in accordance with Section 6.17. The Loan Parties understand and  acknowledge that the Secured Parties, their Affiliates and Persons acting on their behalf and will  rely on the foregoing representations and the provisions of Section 6.17 in effecting transactions in  the Securities and other securities of the Borrower and of other Persons.  Section 3.29 Application of Takeover Provisions; Rights Agreement. There is no control share  acquisition, business combination or other similar anti-takeover provision under the Borrower’s  Organizational Documents or the laws of the State of Delaware that is or could become applicable to any  of the Secured Parties as a result of the transactions contemplated by the Facility Documents and the  Borrower’s fulfilling its obligations with respect thereto, including the Borrower’s issuance of the Securities  and any Secured Party’s ownership of the Securities. The Borrower has not adopted a stockholders rights  plan (or “poison pill”) or similar arrangement relating to accumulations of beneficial ownership of Common  Stock or a change in control of the Borrower.  Section 3.30 Brokers Fees. The Borrower and the other Loan Parties are solely responsible for the  payment of any fees, costs, expenses and commissions of any placement agent, broker or financial adviser  relating to or arising out of the transactions contemplated by the Facility Documents. The Borrower and the  other Loan Parties will pay, and hold each of the Secured Parties harmless against, any liability, loss or  expense (including attorneys’ fees, costs and expenses) arising in connection with any claim for any such  payment.  Section 3.31 Status as Senior Indebtedness. All Obligations constitute senior secured Indebtedness  entitled to the benefits of the subordination and/or intercreditor provisions contained in the applicable  subordination and/or intercreditor agreements governing any subordinated Indebtedness.  Section 3.32 Healthcare Matters; PA Entities.  (a) Except as could not reasonably be expected, individually or in the aggregate, to have a Material  Adverse Effect, each Loan Party, each of its Subsidiaries and each PA Entity, is, and at all times during the  past three (3) years has been, in compliance with all Health Care Laws and requirements of Third Party  Payor Programs applicable to it, its assets, business or operations.   (b) Except as could not reasonably be expected, individually or in the aggregate, to have a Material  Adverse Effect: (i) each of the Loan Parties, its Subsidiaries and each  PA Entity, holds, and at all times  during the past three (3) years has held, all Health Care Permits necessary for it to own, lease, sublease and  operate (as applicable) its assets and to conduct its respective business and operations as presently  conducted (including to provide the services described in the Form 10-K most recently filed prior to the  

 

 45  US_153737865v8  Closing Date and to participate in and obtain reimbursement under all Third Party Payor Programs in which  such Person participates) without restriction; (ii) all such Health Care Permits are, and at all applicable  times during the past three (3) years have been, in full force and effect, and there is and during the past  three (3) years, has been no default under, violation of or other noncompliance with the terms and conditions  of any such Health Care Permit. During the past three (3) years, no Governmental Authority has taken, or  to the knowledge of any Loan Party intends to take, action to suspend, revoke, terminate, place on probation,  restrict, limit, modify or not renew any Health Care Permit of any TOI Party or any of its Subsidiaries.  (c) Each PA Entity holds, and at all times during the three calendar years immediately preceding the  Closing Date has held, in full force and effect, all Third Party Payor Authorizations necessary to participate  in and be reimbursed by all Third Party Payor Programs in which such PA Entity participates or is enrolled,  except where a failure to hold such Third Party Payor Authorization could not reasonably be expected,  individually or in the aggregate, to have a Material Adverse Effect. Except as could not reasonably be  expected, individually or in the aggregate, to have a Material Adverse Effect, there is no inquiry,  investigation, audit, claim review or other action pending, or to the knowledge of any Loan Party,  threatened, that could result in a suspension, revocation, termination, restriction, limitation, modification  or non-renewal of any Third Party Payor Authorization or result in any PA Entity’s exclusion from any  Third Party Payor Program.  (d) Except as could not reasonably be expected, individually or in the aggregate, to have a Material  Adverse Effect: (i) the Licensed Personnel of any PA Entity, hold and, during the past three (3) years, have  held, all professional licenses and other Health Care Permits and all Third Party Payor Authorizations  required in the performance of such Licensed Personnel’s duties for such PA Entity, (ii) each such Health  Care Permit and Third Party Payor Authorization is in full force and effect and, to the knowledge of each  Loan Party, no suspension, revocation, termination, impairment, modification, restriction, limitation,  impairment or non-renewal of any such Permit or Third Party Payor Authorization is pending or threatened  and (iii) to the knowledge of any Loan Party, the Licensed Personnel have complied and currently are in  compliance with all applicable Health Care Laws.  (e) Except as could not reasonably be expected, individually or in the aggregate, to have a Material  Adverse Effect, (i) there are no pending (or, to the knowledge of any Loan Party, threatened) Proceedings  against or affecting any Loan Party or any of its Subsidiaries or any PA Entity, any of its Subsidiaries or  Licensed Personnel, relating to any actual or alleged non-compliance with any Health Care Law or  requirement of any Third Party Payor Program, (ii) there currently exist no restrictions, deficiencies,  required plans of correction or other such remedial measures with respect to any Health Care Permit of any  PA Entity, or any of their participation in any Third Party Payor Program; (iii) no validation review,  program integrity review, audit, inquiry or other investigation by or on behalf of any Governmental  Authority and related to any Loan Party or any of its Subsidiaries, or any PA Entity or any of its  Subsidiaries, or the operations thereof (i) has been conducted during the past three (3) years, or (ii) is  scheduled, pending or, to the knowledge of any Loan Party, threatened.  (f) During the past three (3) years, no Loan Party, no Subsidiary of any Loan Party and, to the  knowledge of any Loan Party, no PA Entity and Subsidiary of any PA Entity,  (a) has retained an  overpayment received from, or failed to refund any amount due to, any Third Party Payor in violation of  any Health Care Law, or (b) has received written notice of, or has knowledge of, any overpayment or refund  due to any Third Party Payor that could reasonably be expected, individually or in the aggregate, to have  constituted a violation of any Health Care Law.  (g) No TOI Party and no Subsidiary of any TOI Party, nor any officer, Affiliate, employee or agent of  any TOI Party or any Subsidiary of any TOI Party, directly or indirectly, has (a) offered or paid or solicited  or received any remuneration, in cash or in kind, or made any financial arrangements, in violation of any  

 

 46  US_153737865v8  Health Care Law; (b) given or agreed to give, or is aware that there has been made or that there is any  agreement to make, any gift or gratuitous payment of any kind, nature or description (whether in money,  property or services) in violation of any Health Care Law; (c) made or agreed to make, or is aware that  there has been made or that there is any agreement to make, any contribution, payment or gift of funds or  property to, or for the private use of, any governmental official, employee or agent where either the  contribution, payment or gift or the purpose of such contribution, payment or gift is or was illegal under the  Applicable Laws of any Governmental Authority having jurisdiction over such payment, contribution or  gift; or (d) made, or agreed to make, or is aware that there has been made or that there is any agreement to  make, any payment to any Person with the intention or understanding that any part of such payment could  be in violation of any Health Care Law or used or was given for any purpose other than that described in  the documents supporting such payment. To the knowledge of each Loan Party and each Subsidiary of a  Loan Party, during the past three (3) years, no Person has filed against any TOI Party or any of its Affiliates  an action under any federal or state whistleblower statute, including under the False Claims Act of 1863  (31 U.S.C. § 3729 et seq.).  (h) During the past three (3) years, no Loan Party and no Subsidiary of any Loan Party, nor any owner,  officer, director, partner, agent, managing employee or Person with a “direct or indirect ownership interest”  (as that phrase is defined in 42 C.F.R. § 420.201) in any Loan Party or any Subsidiary of any Loan Party,  nor any PA Entity, any Subsidiary of any PE Entity, any owner, officer, director, partner, agent, managing  employee or Person with a “direct or indirect ownership interest” (as that phrase is defined in 42 C.F.R. §  420.201) in any PE Entity or any Subsidiary of any PE Entity, any Licensed Personnel of any TOI Party or  any Subsidiary of any TOI Party, has been (a) excluded from any Governmental Payor program pursuant  to 42 U.S.C. § 1320a-7 and related regulations, (b) ”suspended” or “debarred” from selling products to the  U.S. government or its agencies pursuant to the Federal Acquisition Regulation, relating to debarment and  suspension applicable to federal government agencies generally (42 C.F.R. Subpart 9.4), or other  Applicable Laws or regulations, or (c) listed on the General Services Administration list of excluded parties.  (i) No Loan Party and no Subsidiary of any Loan Party, nor any owner, officer, director, partner, agent,  managing employee or Person with a “direct or indirect ownership interest” (as that phrase is defined in 42  C.F.R. § 1001.1001) in any PA Entity or any Subsidiary of any PE Entity, is a party to, or bound by, any  corporate integrity agreement, corporate compliance agreement, deferred prosecution agreement or other  similar agreement with any Governmental Authority concerning compliance with Health Care Laws in any  material respects.  (j) Except as could not reasonably be expected, individually or in the aggregate, to have a Material  Adverse Effect, (i) during the past three (3) years, no Loan Party or PA Entity, has experienced a material  data breach (which term shall include without limitation any Breach of Unsecured Protected Health  Information as such capitalized terms are defined by HIPAA), which required notification to any  Governmental Authority; and (ii) each Loan Party and each PA Entity, is, and for the past three (3) years  has been, in compliance  with HIPAA, the terms of applicable written agreements governing the processing  of individually identifiable health information by any TOI Party and such TOI Party’s privacy and security  policies.  (k) Each PA Document constitutes a legal, valid and binding obligation of such Loan Party,  enforceability against each Loan Party that is party thereto in accordance with its terms, except as the  enforcement hereof or thereof may be limited by insolvency, bankruptcy, reorganization, moratorium or  similar Applicable Law affecting creditors rights generally and no Loan Party nor any of its Subsidiaries  has received written notice that nay party to any PA Document has any accrued right to terminate any such  PA Document on account of a default by any Person thereunder.  

 

 47  US_153737865v8  ARTICLE 4  REPRESENTATIONS AND WARRANTIES OF THE LENDERS    Each Lender represents and warrants that:  Section 4.1 Acquisition for Own Account. Such Lender is acquiring the Securities for its own account  and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except  pursuant to sales registered under, or exempted from, the registration requirements of the Securities Act;  provided, however, that by making the representations herein (including the representations in Section 4.3),  such Lender does not agree to hold any of the Securities for any minimum or other specific term and  reserves the right to assign, transfer or otherwise dispose of any of the Securities at any time pursuant to an  effective registration statement under, or an exemption from the registration requirements of, the Securities  Act.  Section 4.2 Accredited Investor. Such Lender is an “accredited investor” as that term is defined in  Rule 501(a) of Regulation D under the Securities Act and has such knowledge and experience in business  and financial matters so as to be capable of evaluating the merits and risks of its investment in the Securities.  Section 4.3 Exemptions. Such Lender understands that the Securities are being offered and sold to it  in reliance on specific exemptions from the registration requirements of the United States federal and state  securities laws and that the Borrower is relying in part upon the truth and accuracy of, and such Lender’s  compliance with, the representations, warranties, agreements, acknowledgments and understandings of  such Lender set forth herein in order to determine the availability of such exemptions.  Further, such Lender  understands that the Notes, the Conversion Shares and the Warrants issued or issuable under this Agreement  and the other Facility Documents are characterized as “restricted securities” under the U.S. federal  securities laws inasmuch as they are being acquired from the Borrower in a transaction not involving a  public offering and that under such laws and applicable regulations such securities may not be resold except  pursuant to an effective registration statement under the Securities Act (including a registration statement  filed pursuant to the Registration Rights Agreement) or pursuant to an applicable exemption from the  registration requirements under the Securities Act.  Section 4.4 Diligence. Such Lender and its advisors, if any, have been furnished with all materials  relating to the business, finances and operations of the Loan Parties and their Subsidiaries and materials  relating to the offer and sale of the Securities that have been requested by such Lender. Such Lender and  its advisors, if any, have been afforded the opportunity to ask questions of the Loan Parties. None of any  such inquiries, any other due diligence investigations conducted by any Lender or its advisors or its  representatives, if any, and the making by such Lender or representations and warranties pursuant to this  Article 4 shall modify, amend or otherwise affect such Lender’s right to rely on the representations and  warranties of the Loan Parties and their Subsidiaries contained in Article 3 shall modify, amend or  otherwise affect such Lender’s right to rely on the representations, warranties, covenants and agreements  of the Loan Parties contained in Article 3 and elsewhere in this Agreement and the other Facility  Documents.  Section 4.5 No Recommendation or Endorsement. Such Lender understands that no United States  federal or state agency or any other government or Governmental Authority has passed on or made any  recommendation or endorsement of the Securities or the fairness or suitability of the investment in the  Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.  

 

 48  US_153737865v8  ARTICLE 5  CONDITIONS OF DISBURSEMENT  Section 5.1 Conditions to the Disbursement. The obligation of the Lenders to make the Disbursement  shall be subject to the satisfaction (or written waiver) of the following conditions in a manner satisfactory  to each Lender:  (a) Agent and the Lenders shall have received executed counterparts of this  Agreement and each other Facility Document set forth on the closing checklist attached hereto as  Exhibit D, other than those that are specified therein as permitted to be delivered after the Closing  Date;  (b) each Lender shall have received a certificate from an Authorized Officer of the  Borrower certifying that all of the conditions set forth in this Section 5.1 have been, or  contemporaneously with the funding of the Disbursement will be, satisfied;  (c) except for any action specified in Exhibit D to be taken after the Closing date or  any Facility Document as permitted to be taken after the Closing Date, no Loan Party or any of its  Subsidiaries shall have any Indebtedness, all other Indebtedness of the Loan Parties and their  Subsidiaries, other than Indebtedness permitted under Section 7.5,  shall have been or shall be  substantially contemporaneously with the funding of the Loan on the Closing Date, paid off  pursuant to payoff letters reasonably satisfactory to the Lenders, and any Liens relating thereto and  any other Liens that are not Permitted Liens shall have been or shall substantially  contemporaneously with the funding of the Loan on the Closing Date be terminated in a manner  reasonably satisfactory to the Lenders;  (d) all actions necessary to establish that the Agent (for the benefit of the Secured  Parties) will have perfected first priority Liens (subject to Permitted Liens) in the Collateral under  the Facility Documents shall have been or shall substantially contemporaneously with the funding  of the Loan on the Closing Date be taken;  (e) the fees required to be paid pursuant to Section 2.8 of Agent and the Lenders and  all other fees required to be paid on the Closing Date pursuant to this Agreement and the other  Facility Documents and all costs and expenses required to be paid on the Closing Date (including  pursuant to Section 9.2) pursuant to this Agreement and the other Facility Documents, in the case  of costs and expenses, to the extent invoiced prior to the Closing Date, shall have been, or  substantially contemporaneously with the Disbursement shall be, paid (which amounts, at the sole  option of the Lenders, may be offset against the proceeds of the Disbursement);  (f) the Agent and the Lenders shall have received at least three (3) Business Days prior  to the Closing Date all documentation and other information required by regulatory authorities  under applicable “know your customer” and anti-money laundering rules and regulations, including  the USA Patriot Act, that has been reasonably requested by Agent or any Lender at least ten (10)  days in advance of the Closing Date;   (g) no Default or Event of Default shall have occurred or could reasonably be expected  to result from such Disbursement or the use of the proceeds therefrom;  (h) immediately prior to and after giving effect to such Disbursement and the use of  proceeds thereof, each representation and warranty by any Loan Party or any of its Subsidiaries  contained herein or in any other Facility Document shall be true, correct and complete in all  

 

 49  US_153737865v8  material respects (without duplication of any materiality qualifier contained therein) as of such  date, except to the extent that such representation or warranty expressly relates to an earlier date  (in which event such representations and warranties shall be true, correct and complete in all  material respects (without duplication of any materiality qualifier contained therein) as of such  earlier date);  (i)  there shall not exist any Proceeding, order, injunction or decree of any  Governmental Authority or in any court restraining or prohibiting (or attempting to restrain or  prohibit) the funding of such Disbursement hereunder;  (j) the payment by the Borrowers of the fees required to be paid pursuant to Section  2.8 to the Agent and the Lenders on such Disbursement Date and all other fees required to be paid  on such Disbursement Date pursuant to this Agreement and the other Facility Documents and all  costs and expenses required to be paid on such Disbursement Date (including pursuant to Section  9.2) pursuant to this Agreement and the other Facility Documents (which amounts, at the sole  option of the Lenders, may be offset against the proceeds of such Disbursement);  (k) the Agent and the Lenders shall have received a Solvency Certificate duly executed  by an Authorized Officer of the Borrower;  (l) if requested by the Agent or any of the Lenders, the Agent and the Lenders shall  have received an opinion of the Loan Parties’ counsel in form and substance reasonably satisfactory  to the Lenders; and   (m) such other conditions, documents and deliverables that the Agent or any Lender  may reasonably request shall have been satisfied or delivered, as applicable.  ARTICLE 6  AFFIRMATIVE COVENANTS  Section 6.1 Preservation of Existence, Etc. The Loan Parties shall and shall cause their Subsidiaries  and, to the extent permitted by Applicable Law, the PA Entities and their Subsidiaries to (a) preserve and  maintain in full force and effect their organizational existence and good standing (to the extent such concept  is applicable) under the Applicable Laws of its jurisdiction of incorporation, organization or formation, as  applicable, except in connection with a transaction permitted under Section 7.1and (b) preserve and  maintain all qualifications to do business in each other jurisdiction not covered by clause (b) above in which  the failure to be so qualified could reasonably be expected, individually or in the aggregate, to have a  Material Adverse Effect.  Section 6.2 Compliance with Laws. The Loan Parties shall, and shall cause their Subsidiaries and, to  the extent permitted by Applicable Law, the  PA Entities and their Subsidiaries, to, (a) comply with all  Applicable Laws (including Health Care Laws), except where the necessity of compliance therewith is  contested in good faith by appropriate proceedings or where the failure to so comply would not reasonably  be expected to have a Material Adverse Effect, and (b) maintain in effect and enforce policies and  procedures designed to ensure compliance by the TOI Parties, their Subsidiaries and their respective  directors, officers, employees and agents with Anti-Corruption Laws, Anti-Money Laundering Laws and  applicable Sanctions.  Section 6.3 Authorizations. The Loan Parties shall, and shall cause their Subsidiaries and, to the extent  permitted by Applicable Law,  the PA Entities and their Subsidiaries, to, obtain, make and keep in full force  and effect all licenses, certificates, approvals, registrations, clearances and Authorizations required to the  

 

 50  US_153737865v8  conduct of their businesses, except where the failure to make and keep Authorizations in full force and  effect could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.  Section 6.4 Maintenance of Property. Each Loan Party shall, except as otherwise permitted by this  Agreement, maintain, and shall cause each of its Subsidiaries and, to the extent permitted by Applicable  Law, the PA Entities and its Subsidiaries to maintain, and preserve all its assets and property that are  material to its businesses in good working order and condition, ordinary wear and tear and casualty and  condemnation excepted and shall make all necessary repairs thereto and renewals and replacements thereof  in the ordinary course of business consistent with past practices, except where the failure to do so could not  reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.  Section 6.5 Insurance. The Loan Parties shall, and shall cause each of their Subsidiaries and, to the  extent permitted by Applicable Law, the PA Entities and their Subsidiaries, to, maintain with financially  sound and reputable insurance companies insurance with respect to their assets, properties and businesses,  against such hazards and liabilities, of such types and in such amounts, as is customarily maintained by  companies in the same or similar businesses similarly situated. Each such policy of insurance of the Loan  Parties shall (a) in the case of each liability policy, name Agent (on behalf, and for the benefit, of, the  Secured Parties) as an additional insured thereunder as its interests may appear and (b) in the case of each  casualty insurance policy contain a lender’s loss payable clause or endorsement that names Agent, (on  behalf, and for the benefit, of the Secured Parties), as the lender’s loss payee thereunder and, to the extent  available, provide the insurer will give at least thirty (30) days’ prior written notice to Agent of any  modification or cancellation of such policy (or ten (10) days’ prior written notice in the case of the failure  to pay any premiums thereunder). A true and complete listing of such insurance, including issuers,  coverages and deductibles, shall be provided to Agent and the applicable Lender(s) promptly following  Agent’s or any Lender’s request.  Section 6.6 Payment of Taxes. Each Loan Party shall, and shall cause each of its Subsidiaries and, to  the extent permitted by Applicable Law, the PA Entities and its Subsidiaries, to, pay all material Taxes,  assessments, levies and other governmental charges imposed upon it or any of its properties or assets or in  respect of any of its income, businesses or franchises before any material penalty accrues thereon, and all  other material claims (including claims for labor, services, materials and supplies) for sums that have  become due and payable and that by law have or may become a Lien upon any of its properties or assets,  prior to the time when any material penalty or fine shall be incurred with respect thereto; provided, that no  such Tax, assessment, levy, charge or claim need be paid if it is being contested in good faith by appropriate  Proceedings promptly instituted and diligently conducted, so long as adequate reserves or other appropriate  provision, if any, as shall be required in conformity with GAAP shall have been made therefor.  Section 6.7 Notices.  Subject to Section 6.17, the Loan Parties shall promptly (and, in any event, within  two (2) Business Days) notify each Secured Party of the occurrence of (i) any Default or Event of Default  and, (ii) each event that, at the giving of notice, lapse of time, determination of materiality or fulfillment of  any other applicable condition (or any combination of the foregoing), would constitute a default or an event  of default (however described) under any Facility Document; (iii) any event of occurrence that constitutes  a Material Adverse Effect.  Section 6.8 SEC Documents; Financial Statements. The Borrower shall comply in all respects with  its filing requirements under Section 13 or 15(d) of the Exchange Act, as applicable and shall,  contemporaneously with the filing of its quarterly unaudited and annual audited consolidated and  consolidating financial statements, deliver to each Lender a Compliance Certificate. From the Closing Date  until the first date on which no Notes or Warrants remain outstanding (the period ending on such date, the  “Reporting Period”), the Borrower shall timely (without giving effect to any extensions pursuant to Rule  12b-25 of the Exchange Act) file (or furnish, as applicable) all SEC Documents required to be filed with  

 

 51  US_153737865v8  (or furnished to) the SEC pursuant to the Exchange Act, and the Borrower and its Subsidiaries shall not  terminate the registration of the Common Stock under the Exchange Act or otherwise terminate its status  as an issuer required to file reports under the Exchange Act, even if the securities laws would otherwise  permit any such termination. None of such SEC Documents, when filed or furnished, shall contain any  untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary  in order to make the statements therein, in the light of the circumstances under which they were made, not  materially misleading.  All financial statements included in any such SEC Documents shall fairly present  in all material respects the consolidated financial position of the Borrower and its Subsidiaries as of the  dates thereof and the consolidated results of their operations and cash flows for the periods presented and  shall have been prepared in accordance with GAAP, consistently applied (subject, in the case of unaudited  quarterly financial statements, to normal year-end adjustments that are not material individually or in the  aggregate and lack of footnote disclosures). Any audit or report of the Borrower’s independent certified  public accountants on any financial statements included in any such SEC Document shall (i) contain an  unqualified opinion (subject to the exception set forth below in clause (ii) of this sentence), stating that such  consolidated financial statements present fairly in all material respects the consolidated financial position  and results of operations and cash flows of the Borrower and its Subsidiaries as of the dates thereof and for  the periods presented and have been prepared in conformity with GAAP applied on a basis consistent with  prior years, and (ii) not include any explanatory paragraph expressing substantial doubt as to going concern  status (other than any such paragraph arising from the impending maturity of the Loans solely in the case  of the audit delivered with respect to the fiscal year immediately prior to the fiscal year during which the  applicable maturity is scheduled), and no financial statements included in any such SEC Document shall  include any statement in the footnotes thereto that indicates there is substantial doubt about the Borrower’s  ability to continue as a going concern (or any statement to similar effect) (except as a result of the impending  Maturity Date).  Within forty-five (45) days after the end of each fiscal quarter of the Borrower, the Loan  Parties and their Subsidiaries shall deliver to Agent and the Lenders an updated Perfection Certificate. All  calculations in any Compliance Certificate will be made in accordance with GAAP and the applicable terms  and provisions of this Agreement and the other Facility Documents. Upon the reasonable request of any  Secured Party, the Loan Parties and their Subsidiaries shall promptly deliver to such Secured Party such  additional business, financial, corporate affairs, perfection certificates (including Perfection Certificates),  items or documents related to creation, perfection, protection, maintenance, enforcement or priority of  Agent’s Liens in the Collateral and other information as any Secured Party may from time to time  reasonably request.  Section 6.9 Inspections. On and after the date that any Secured Party believes in good faith that an  Event of Default has occurred and is continuing, each Loan Party shall, and shall cause each of its  Subsidiaries to, with respect to each owned, leased or controlled property, at all times and without notice,  at the sole option of Agent or any Lender: (a) provide access to such property to Agent, the Lenders and  their respective representatives, as frequently as Agent or any Lender determines to be appropriate; and (b)  permit Agent or any Lender to conduct field examinations, appraise, inspect, and make extracts and copies  (or take originals if reasonably necessary) from all of such Loan Party’s and its Subsidiaries’ books and  records, and evaluate and conduct appraisals and evaluations in any manner and through any medium that  Agent or any Lender considers advisable, in each instance, at the Loan Parties’ sole expense.  Section 6.10 Disclosure. Each Loan Party shall, and shall cause each of its Subsidiaries and PA Entities  and its Subsidiaries to, ensure that all written information, exhibits and reports furnished to any Secured  Party, when taken as a whole, do not and will not (or does not, as applicable) contain any untrue statement  of a material fact and do not and will not omit to state any material fact or any fact necessary to make the  statements contained therein not materially misleading in light of the circumstances in which made, and  will promptly disclose to Agent and the Lenders and correct any defect or error that may be discovered  therein or in any Facility Document or in the execution, acknowledgement or recordation thereof.  

 

 52  US_153737865v8  Section 6.11 Cash Management Systems. (a) Each Loan Party shall enter into, and cause each  depository, securities intermediary or commodities intermediary to enter into, Control Agreements with  respect to each deposit, securities, commodity or similar account maintained by such Person (other than, so  long as such accounts are not collateral under agreements, instruments or documents evidencing or  governing any other Indebtedness, (i) any payroll account so long as such payroll account is a zero balance  account, (ii) withholding tax and fiduciary accounts and (iii) any Segregated Governmental Account (such  accounts in clauses (i), (ii) and (iii), the “Excluded Accounts”)) as of and after the Closing Date; provided,  however, that the Loan Parties shall have until the date that is thirty (30) days following the Closing Date  (or such later date as may be agreed to by the Required Lenders in their sole discretion) to comply with the  provisions of this Section 6.11 with regard to such accounts (other than Excluded Accounts) of the Loan  Parties existing on the Closing Date.  (b) In addition, in order to segregate and to facilitate perfection of the Agent’s security interest and  Lien (for the benefit of the Secured Parties) in funds received from Governmental Payors making payments  under Medicare or Medicaid, if any, the Loan Parties agree that the Loan Parties shall (i) segregate  collections made from Governmental Payors making payments under Medicare or Medicaid from  collections made from all other account debtors and customers of the applicable Loan Parties, including by  (A) notifying all payors (other than Governmental Payors making payments under Medicare or Medicaid)  then instructed to make payments to such Loan Parties’ deposit accounts to make payments to a deposit  account subject to a Control Agreement, and (B) notifying all Governmental Payors making payments under  Medicare or Medicaid to make payments to a Segregated Governmental Account, and (ii) enter into, and  cause each applicable depository to enter into, a “sweep” agreement (a “Sweep Agreement”) with respect  to each Segregated Governmental Account pursuant to which such depository will agree to sweep amounts  deposited therein on daily basis to a deposit account of the Loan Parties subject to a Control Agreement in  favor of Agent (for the benefit of the Secured Parties) as and when funds clear and become available in  accordance with such depository’s customary procedures, each with such financial institution and each in  form and substance reasonably acceptable to the Required Lenders. Any change by any Loan Party in the  sweep instructions set forth in such Sweep Agreement will cause an immediate Event of Default. To the  extent any Person, whether a Governmental Payor or otherwise, remits payments to an incorrect deposit  account or otherwise makes payments not in accordance with the provisions of this Section 6.11 or an  applicable Loan Party’s payment direction, such Loan Party shall contact such Person and use its  commercially reasonable efforts to redirect payment from such Person in accordance with the terms hereof  and with applicable Health Care Laws. Each of Agent and each Lender agrees and confirms that the Loan  Parties will have sole dominion and “control” (within the meaning of Section 9-104 of the UCC and the  common law) over each Segregated Governmental Account and all funds therein, and each of Agent and  each Lender disclaims any right of any nature whatsoever to control or otherwise direct or make any claim  against the funds held in any Segregated Governmental Account from time to time.  Notwithstanding the  foregoing, the Loan Parties shall have until ninety (90) days after the Closing Date (or such later date as  may be agreed to by the Required Lenders in their sole discretion) to comply with the provisions of this  Section 6.11(b) with regard to such arrangements.   Section 6.12 Further Assurances. Promptly upon (but, in any event, within five (5) Business Days  after) the request of the Required Lenders (or the Agent acting at the direction of the Required Lenders),  the Loan Parties shall (and, subject to the limitations set forth herein and in the other Facility Documents,  shall cause each of their Subsidiaries, PA Entities and their Subsidiaries to) take such additional actions and  execute such documents as the Required Lenders (or the Agent acting at the direction of the Required  Lenders) may reasonably require from time to time in order (a) to carry out more effectively the purposes  of this Agreement or any other Facility Document, (b) to subject to the Liens created by any of the Facility  Documents any of the assets or properties, rights or interests covered by any of the Facility Documents, (c)  to perfect and maintain the validity, effectiveness and priority of any of the Facility Documents and the  Liens intended to be created thereby, and (d) to better assure, grant, preserve, protect and confirm to the  

 

 53  US_153737865v8  Secured Parties the rights granted or now or hereafter intended to be granted to the Secured Parties under  any Facility Document. Without limiting the generality of the foregoing, the Loan Parties shall cause each  of their Subsidiaries on the date of the formation (including pursuant to a Division/Series Transaction) or  acquisition thereof, to guaranty the Obligations and to cause each such Subsidiary to grant to Agent, for the  benefit of the Secured Parties, a security interest in, subject to the limitations set forth herein and in the  Facility Documents, all of such Subsidiary’s assets and property to secure such guaranty and to take such  other actions reasonably requested by the Required Lenders with respect to making any such Subsidiary a  Loan Party under the Facility Documents. Furthermore, the Borrower shall notify Agent and the Lenders  in writing on the date of (i) the formation (including pursuant to a Division/Series Transaction) or  acquisition of any Subsidiary or (ii) the issuance by or to any Loan Party (other than by the Borrower) of  any Stock. Each Loan Party shall pledge, and shall cause each of its Subsidiaries to pledge, all of the Stock  of each of its Subsidiaries to Agent, for the benefit of the Secured Parties, to secure the Obligations,  promptly after (and in any event within ten (10) Business Days (or such later date as may be agreed to by  the Required Lenders in their sole discretion) after) the date of (A) formation (including pursuant to a  Division/Series Transaction) or acquisition of such Subsidiary or (B) the issuance of any shares of Stock of  such Subsidiary. The Loan Parties shall deliver, or cause to be delivered, promptly after (and in any event  within ten (10) Business Days (or such later date as may be agreed to by the Required Lenders in their sole  discretion) after) such date to Agent and the Lenders, appropriate resolutions, secretary certificates, certified  Organizational Documents and, if requested by any Lender, legal opinions relating to the matters described  in this Section 6.12 (which opinions shall be in form and substance reasonably acceptable to the Required  Lenders and, to the extent applicable, substantially similar to the opinions delivered on the Closing Date),  in each instance with respect to (1) each Loan Party or Subsidiary formed (including pursuant to a  Division/Series Transaction) or acquired and (2) each Loan Party or Person (other than a Loan Party) whose  Stock is being pledged, in each case of clauses (1) and (2), after the Closing Date. In connection with each  pledge of Stock, on or prior to the date of any such pledge of Stock, the Loan Parties shall deliver, or cause  to be delivered, to Agent, irrevocable proxies and Stock powers and/or assignments, as applicable, duly  executed in blank, in each case, in form and substance reasonably satisfactory to the Required Lenders.  Notwithstanding anything else contained herein or in any other Facility Document, in no event will any  Person be required to provide a security interest in any Excluded Asset.  Section 6.13 Environmental Matters. Each Loan Party shall, and shall cause each of its Subsidiaries  and PA Entities and its Subsidiaries to, comply with, and maintain its Real Estate, whether owned, leased,  subleased or otherwise operated or occupied, in compliance with all applicable Environmental Laws or as  is required by orders and directives of any Governmental Authority except where the failure to comply  could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.  Section 6.14 ERISA Notices. Promptly upon becoming aware that any of the following has occurred,  the Borrower will provide written notice to the Lenders specifying the nature of such event, what action the  Loan Party or any ERISA Affiliate has taken, is taking or proposes to take with respect thereto and, when  known, if applicable, any action taken or threatened by the Internal Revenue Service, the Department of  Labor or the PBGC with respect thereto: (a) any ERISA Event, or (b) a “prohibited transaction” as defined  under Section 406 of ERISA or Section 4975 of the Code that is not exempt under Section 408 of ERISA  or Section 4975 of the Code, under any applicable regulations and published interpretations thereunder or  under any applicable prohibited transaction, individual or class exemption issued by the Department of  Labor, with respect to any Employee Benefit Plan.  Section 6.15 Form D. The Borrower shall timely file a Form D with respect to the offering of the  Securities under the Facility Documents as required by Rule 503 under the Securities Act and to provide a  copy thereof to each Secured Party promptly after such filing. The Borrower shall make all filings and  reports relating to the offer and sale of the Securities required under applicable securities or “Blue Sky”  laws of the states of the United States following the Disbursement Date.  

 

 54  US_153737865v8  Section 6.16 Listing of Stock. The Borrower shall take all actions necessary to cause the Common Stock  to remain listed on the Principal Market during the Reporting Period, unless the Common Stock is, upon  delisting from the Principal Market, immediately relisted on another Eligible Market (whereupon such other  Eligible Market shall be deemed the Principal Market for purposes of this Agreement and the other Facility  Documents). During the Reporting Period, the Borrower shall not, and shall cause each of the Subsidiaries  not to, take any action that would be reasonably expected to result in the delisting or suspension or  termination of trading of the Common Stock on the Principal Market. The Loan Parties shall pay all fees,  costs and expenses in connection with satisfying its obligations under this Section 6.16. At all times during  the Reporting Period, (a) the Common Stock shall be eligible for clearing through DTC, through its  Deposit/Withdrawal At Custodian (DWAC) system; (b) the Borrower shall be eligible and participating in  the Direct Registration System (DRS) of DTC with respect to the Common Stock; (c) the transfer agent for  the Common Stock is a participant in, and the Common Stock shall be eligible for transfer pursuant to,  DTC’s Fast Automated Securities Transfer Program (or successor thereto); and (d) the Borrower shall use  its reasonable best efforts to cause the Common Stock to not at any time be subject to any DTC “chill,”  “freeze” or similar restriction with respect to any DTC services, including the clearing of shares of Common  Stock through DTC, and, in the event the Common Stock becomes subject to any DTC “chill,” “freeze” or  similar restriction with respect to any DTC services, the Borrower shall use its reasonable best efforts to  cause any such “chill,” “freeze” or similar restriction to be removed at the earliest possible time.  Section 6.17 Disclosure; No MNPI.  (a) At or prior to 8:00 a.m. (New York City time) on the first Business Day following  the Closing Date, the Borrower shall file with the SEC one or more Forms 8-K describing the terms  of the Transactions and the other transactions contemplated by the Facility Documents, disclosing  any other Inside Information (if any) provided or otherwise made available to any Secured Party  (or any such Secured Party’s Affiliates, agents or representatives) on or prior to the Closing Date,  and including as exhibits to such Form(s) 8-K this Agreement (including the schedules and exhibits  hereto), and the form of Note, the form of Warrant and the Registration Rights Agreement, in each  case without any redactions (such Form or Forms 8-K, collectively, the “Announcing Form 8-K”).   Subject to the foregoing, no Loan Party shall (and no Loan Party shall permit any of its Affiliates  to) issue any press releases or any other public statements with respect to the transactions  contemplated by any Facility Document or disclosing the name of any Secured Party or any of its  Affiliates; provided, however, that the Borrower shall be entitled, without the prior approval of any  Secured Party, to make any press release or other public disclosure with respect to such transactions  (i) in substantial conformity with the Announcing Form 8-K and contemporaneously therewith, (ii)  in its SEC Documents for the purpose of describing such transactions and the accounting thereof,  and (iii) as is required by Applicable Law and regulations (provided that each Secured Party shall  be consulted by the Borrower in connection with its initial press release prior to its release and shall  be provided with a copy thereof).  (b) Upon the filing of the Announcing Form 8-K, the Borrower and its Subsidiaries  shall have disclosed all Inside Information provided or made available to any Secured Party or any  of its Affiliates, attorneys, agents or representatives by any Loan Party or any of its employees,  officers, directors (or equivalent persons), attorneys, agents or representatives on or prior to the  Closing Date. Each Loan Party shall not, and shall cause each of its employees, officers, directors  (or equivalent persons), Affiliates, attorneys, agents and representatives to not, provide any Secured  Party or any of its Affiliates, attorneys, agents or representatives with any Inside Information from  and after the filing of the Announcing Form 8-K with the SEC without the express prior written  consent of such Secured Party. Each Loan Party hereby acknowledges and agrees that,  notwithstanding the provisions of this Section 6.17, no Secured Party (nor any of such Secured  Party’s Affiliates, attorneys, agents or representatives) shall have any duty of trust or confidence  

 

 55  US_153737865v8  (including any obligation under any confidentiality or non-disclosure agreement entered into by  such Secured Party) with respect to, or any obligation not to trade in any securities while aware of,  any Inside Information (i) provided by, or on behalf of, any Loan Party, any of its Affiliates or any  of its officers, directors (or equivalent persons), employees, attorneys, agents or representatives in  violation of any of the representations, covenants, provisions or agreements set forth in this Section  6.17 or (ii) otherwise possessed (or continued to be possessed) by any Secured Party (or any  Affiliate, agent or representative thereof) as a result of any breach or violation of any representation,  covenant, provision or agreement set forth in this Section 6.17 or Section 3.28(l).  The Loan Parties  understand and acknowledge that the Secured Parties, their Affiliates and Person acting on their  behalf will rely on the provisions of this Section 6.17 in effecting transactions in the Securities and  other securities of the Borrower and of other Persons.  (c) Notwithstanding anything to the contrary herein, in the event that any Loan Party  believes that a notice or communication to any Secured Party or any of its Affiliates, attorneys,  agents or representatives contains Inside Information, the Borrower shall, prior to the delivery of  such notice or communication, (i) so indicate to such Secured Party, and such indication shall  provide such Secured Party the means to refuse to receive such notice or communication; and in  the absence of any such indication, the Secured Parties, the other holders of the Securities and their  respective Affiliates, agents and representatives shall be allowed to presume that all matters relating  to such notice or communication do not constitute Inside Information and (ii) provide such notice  or communication to Outside Counsel to such Secured Party.  In the event that, in compliance with  the foregoing, the Borrower indicates to a Secured Party that a notice or other communication  contains Inside Information and such Secured Party then refuses to accept such notice or other  communication, the Borrower shall be excused from any obligation hereunder to provide such  notice or other communication to such Secured Party (subject to the Borrower’s obligation to  provide such notice or communication to Outside Counsel).  In the event that the Borrower either  (A) fails to indicate that a notice or communication to a Secured Party contains Inside Information  or otherwise provides any Secured Party with Insider Information without such Secured Party’s  prior written consent or (B) provides such notice or communication to any Secured Party  notwithstanding any such Secured Party’s refusal in writing to receive such notice or  communication, such Secured Party shall have the right to make a public disclosure in the form of  a press release, public advertisement or otherwise of the applicable Inside Information without the  prior approval by any Loan Party, its Subsidiaries or Affiliates, or any of its or their respective  officers, directors (or equivalent persons), employees, attorneys, representatives or agents, and no  Secured Party (nor any of its Affiliates, agents or representatives) shall have any liability to any  Loan Party, any of its Subsidiaries or Affiliates or any of its or their respective officers, directors  (or equivalent persons), employees, stockholders, attorneys, representatives or agents for any such  disclosure; provided, however, that, prior to making any such disclosure, the applicable Secured  Party shall provide written notice to the Borrower of its intent to do so and shall not make such  disclosure if the Borrower makes public disclosure (in the form of a widely disseminated press  release, a public filing with the SEC or other manner compliant with Regulation FD) of the  applicable Inside Information within one (1) Business Day after the delivery of such notice to the  Borrower; provided, further, however, that the applicable Secured Party shall not be entitled to  make such disclosure in the event that (x) within one (1) Business Day after the delivery of such  notice to the Borrower, the Borrower disputes in good faith that the applicable information  constitutes Inside Information and communicates in writing to the applicable Secured Party, (y) the  Borrower (at its sole expense) within three (3) Business Days following the delivery of such notice  to the Borrower submits the matter to Latham & Watkins, LLP or another nationally recognized  law firm with expertise in securities laws selected by the Borrower for a determination as to whether  such information constitutes Inside Information and (z) within three (3) Business Days following  

 

 56  US_153737865v8  the delivery of such notice to the Borrower, such law firm advises the Borrower and such Lender  in writing that the applicable information does not constitute Inside Information.  (d) Notwithstanding the foregoing, to the extent the Borrower reasonably and in good  faith determines that it is necessary to disclose Inside Information to a Secured Party for purposes  relating to any of the Facility Documents (a “Necessary Disclosure”), the Borrower shall inform  Outside Counsel to such Secured Party of such determination without disclosing the applicable  Inside Information, and the Borrower and such Outside Counsel on behalf of the applicable Secured  Party shall endeavor to agree upon a process for making such Necessary Disclosure to the  applicable Secured Party or its representatives that is mutually acceptable to such Secured Party  and the Borrower (an “Agreed Disclosure Process”). Thereafter, the Borrower shall be permitted  to make such Necessary Disclosure (only) in accordance with the Agreed Disclosure Process.  Section 6.18 Variable Priced Securities. During the Reporting Period, except as otherwise provided in  the Facility Documents, the Borrower shall not (a) in any manner issue or sell any Options or Convertible  Securities that are convertible into or exchangeable or exercisable for shares of Common Stock at a price  that varies or may vary with the market price of the Common Stock, including by way of one or more resets  to a fixed price or increases in the number of shares of Common Stock issued or issuable, or at a price that  upon the passage of time or the occurrence of certain events automatically is reduced or is adjusted or at  the option of any Person may be reduced or adjusted, whether or not based on a formulation of the then  current market price of the Common Stock (other than proportional adjustments as a result of subdivisions  or combinations of the Common Stock in the form of stock splits, stock dividends, reverse stock splits,  combinations or recapitalizations) or (b) enter into any agreement (including any equity line of credit)  whereby the Borrower may sell securities at a future determined price; provided, however, that the  restriction imposed by this clause (b) shall not apply to an SEC registered “at-the-market” offering pursuant  to an agreement between the Borrower and an investment bank that provides for the Borrower to issue  shares of Common Stock to such investment bank to settle sales of shares of Common Stock in the Principal  Market.  Section 6.19 Use of Proceeds. The proceeds of the Disbursement will be used solely to (a) pay fees,  commissions, costs and expenses in connection with the Transaction and (b) provide funds for the Borrower’s  working capital and general corporate purposes.   Section 6.20 Landlord Waivers. Each Loan Party shall use commercially reasonable efforts to obtain,  within sixty (60) days after the Closing Date, a landlord agreement or bailee or mortgagee waivers, as  applicable, from the lessor of each leased property, bailee in possession of any Collateral or mortgagee of any  owned property with respect to (to the extent leased) the Borrower’s headquarters and each location where  any material amount of Collateral is located or where material books and records are located, which agreement  shall be reasonably satisfactory in form and substance to the Required Lenders.  Section 6.21 Health Care Laws.  Except as could not reasonably be expected, individually or in the  aggregate, to have a Material Adverse Effect:   (a) Without limiting or qualifying Section 6.2, or any other provision of this Agreement or any other  Facility Document, each Loan Party shall, and shall cause each of its Subsidiaries and PA Entities and its  Subsidiaries to, comply with all applicable Health Care Laws relating to the operation of such Person’s  business.  (b) Each Loan Party shall, and shall cause each of its Subsidiaries and PA Entities and its Subsidiaries  to, (a) obtain, maintain and preserve, and cause each of its Subsidiaries to obtain, maintain and preserve,  and take all necessary action to timely renew, all material Health Care Permits (including, as applicable,  

 

 57  US_153737865v8  Health Care Permits necessary for it to be eligible to receive payment and compensation from and to  participate in Medicare, Medicaid or any other Third Party Payor programs) that are necessary or useful in  the proper conduct of its business; (b) be and remain in material compliance with all requirements for  participation in, and for licensure required to provide the goods or services that are reimbursable under,  Medicare, Medicaid and other Third Party Payor Programs; and (c)cause all Licensed Personnel to maintain  in full force and effect all professional licenses and other Health Care Permits required to perform such  duties; and (d) keep and maintain all records required to be maintained by any Governmental Authority or  otherwise under any Health Care Law.  Section 6.22 Additional Exchange Transactions.  From and after the Closing Date, for so long as the  Deerfield Lenders and their respective Attribution Parties (as defined in the Certificate of Designation of  Preferences, Rights and Limitations of the Series A Preferred Stock (as defined below) (the “Series A  Certificate of Designation”)) collectively beneficially own any Common Stock of the Borrower and the  Common Stock of the Borrower constitutes a Registered Equity Security (as defined in the Series A  Certificate of Designation), the Borrower shall not, directly or indirectly, effect any exchange of outstanding  its Common Stock for any other class or series of capital stock or other securities that is convertible into  Common Stock subject to a limitation on conversion similar to that contained in the Borrower’s Series A  Common Stock Equivalent Convertible Preferred Stock (“Series A Preferred Stock”) or in the Series B  Preferred Stock or any similar transaction (an “Additional Exchange”) or a Qualified Redemption (as  defined below), unless (i) at least five (5) Business Days prior to the consummation of such Additional  Exchange or Qualified Redemption, the Borrower notifies the Deerfield Lenders of such Additional  Exchange or Qualified Redemption, and (ii) if requested by the Deerfield Lenders, prior to the  consummation of such Additional Exchange or Qualified Redemption, the Borrower, each Deerfield Lender  and each Attribution Party designated by the Deerfield Lenders enter into, and consummate the transactions  contemplated by, an exchange agreement in substantially the form of the Exchange Agreement, dated as of  June 10, 2022, among the Borrower, Deerfield Partners, L.P. and Deerfield Private Design Fund IV, L.P.  that provides for the exchange of an aggregate number of shares of its Common Stock then beneficially  owned by the Deerfield Lenders and, if applicable, such Attribution Parties such that, immediately  following the consummation of such exchange, the transactions contemplated by such agreement and such  Additional Exchange or Qualified Redemption, the Deerfield Lenders, their Attribution Parties will  collectively beneficially own a number of shares of Common Stock that represents 4.5% of the then  outstanding shares of its  Common Stock, for shares of either, at the election of such Deerfield Lender,  Series A Preferred Stock (at the rate of one (1) share of Series A Preferred Stock for every 100 shares of  Common Stock so exchanged, subject to appropriate adjustment for any Stock Event (as defined in the  Series A Certificate of Designation) or the securities being issued in such Additional Exchange or Qualified  Redemption (provided such securities shall contain a limitation on conversion or exercise comparable to  that contained in the Series A Common Equivalent Preferred Stock and shall be issued at a rate appropriate  to reflect a number of underlying shares of Common Stock equal to the number of shares of Common Stock  surrendered in such exchange). “Qualified Redemption” means each redemption, repurchase or retirement  of outstanding shares of Common Stock by the Company (a “Redemption”) that would cause any Deerfield  Lender or any of Deerfield Lender’s Attribution Parties to beneficially own (for purposes of Section 13(d)  of the Exchange Act) more than 4.89% of the outstanding shares of Common Stock of the Borrower;  provided, that (y) the Borrower shall notify each Deerfield Lender of the Borrower’s bona fide intention to  effect a Redemption and request that the Deerfield Lender furnish to the Company the number of shares of  Common Stock then beneficially owned by such Deerfield Lender and its Attribution Parties and (z) if such  Deerfield Lender fails to deliver such information within five (5) Business Days following the Borrower’s  request therefor, such Redemption shall not constitute a Qualified Redemption.     Section 6.23   Post-Closing Obligations.  On or before the applicable date set forth on Schedule 6.23  for each action described therein, or such later date agreed to in writing by the Administrative Agent in its  sole discretion, which extension may be given by electronic mail, take, or cause to be taken, each action  

 

 58  US_153737865v8  specified and deliver each required agreement or document, as applicable.  The failure to have taken such  actions or deliver such agreements or documents by the date set forth on Schedule 6.23 (as such date may  be extended in the Administrative Agent’s sole discretion as provided herein, which extension may be given  by electronic mail) shall be an Event of Default.   Section 6.24 Stockholder Approval; Proxy Materials.   (a) The Borrower covenants and agrees that it will seek to obtain the Stockholder Approval at each  meeting of stockholders of the Borrower subsequent to the date hereof (each, a “Stockholders Meeting”)  until the Stockholder Approval is obtained.  Promptly after the Stockholder Approval is obtained, and in  any event within one (1) Business Day thereafter, the Borrower shall promptly deliver notice of the  Stockholder Approval to the Agent and file with the Commission a Form 8-K disclosing the same.  (b) In connection with each Stockholders Meeting, the Borrower will include in the proxy statement  with respect thereto (any such proxy statement, as it may be amended or supplemented from time to time,  the “Proxy Statement”) the Proposal and such information as may be necessary to enable the Stockholders’  consideration of the Proposal.  Each Proxy Statement shall include the recommendation of the Board of  Directors that stockholders vote in favor of the adoption of the Proposal at each Stockholders Meeting, and  the Borrower shall use its reasonable best efforts to obtain the Stockholder Approval at each Stockholders  Meeting, including by retaining and utilizing the efforts of a nationally recognized proxy solicitation firm.  (c) The Borrower agrees that (A) none of the information to be included or incorporated by reference  in each Proxy Statement shall at the date it is first mailed to the Borrower’s stockholders or at the time of  each Stockholders Meeting or at the time of any amendment or supplement thereof, contain any untrue  statement of a material fact or omit to state any material fact required to be stated therein or necessary in  order to make the statements therein, in light of the circumstances under which they are made, not  misleading, (B) each Proxy Statement shall comply as to form in all material respects with the requirements  of the Exchange Act.  ARTICLE 7  NEGATIVE COVENANTS  Section 7.1 Merger, Consolidation, Etc. No Loan Party shall, nor shall it permit any of its  Subsidiaries to, directly or indirectly, merge with, consolidate with or into, dissolve or liquidate into or  convey, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all  or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person,  except (i) a Subsidiary that is not a Loan Party may merge into any Loan Party or any Subsidiary of a Loan  Party, (ii) a Subsidiary that is a Loan Party may merge into any other Loan Party, (iii) any Subsidiary of the  Borrower (other than, for the avoidance of doubt, the Borrower) may liquidate or dissolve if (A) the  Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower  and it is not materially disadvantageous to the Secured Parties and (B) to the extent such Subsidiary is a  Guarantor, any such assets or business held by such subject Subsidiary shall be transferred to, or otherwise  owned or conducted by, a Loan Party after giving effect to such liquidation or dissolution, provided that, in  the case of clauses (i) and (ii) above, to the extent any such transaction involves (x) a Loan Party, the Loan  Party is the surviving Person, or (y) the Borrower, the Borrower is the surviving Person) or (b) consummate  any Division/Series Transaction. No Loan Party shall, nor shall permit any of its Subsidiaries to, establish  or form any Subsidiary, unless such Subsidiary complies with Section 6.12 and such Subsidiary executes  and/or delivers all other documents, agreements and instruments reasonably requested by the Agent or any  Lenders to perfect a Lien in favor of the Agent (for the benefit of the Secured Parties) on such Subsidiary’s  assets and to make such Subsidiary a Guarantor under the Facility Documents.  

 

 59  US_153737865v8  Section 7.2 Restricted Payments. No Loan Party shall, nor shall it permit any of its Subsidiaries to,  directly or indirectly, make any Restricted Payments, except   (a) the Borrower may repurchase its Stock from current or former officers, employees or directors of  the Borrower and its Subsidiaries (or their permitted transferees or estates) upon their death, disability or  termination of employment in an aggregate amount not to exceed $150,000 in any fiscal year of the  Borrower,  provided that, no Default or Event of Default has occurred and is continuing or would result  therefrom;  (b) (i) the Borrower may declare and make dividend payments or other distributions payable solely in  its Stock (other than Disqualifying Stock) and (ii) any Subsidiary of a Borrower may declare and pay  dividends to the Borrower or any other Loan Party;  (c) (i) the repurchase of Stock deemed to occur upon the exercise of stock options, warrants or other  convertible or exchangeable securities if such Stock represents a portion of the exercise, conversion or  exchange price thereof, and (ii) repurchases of Stock deemed to occur upon the withholding of a portion of  the Stock granted or awarded to a current or former officer, director, employee or consultant to pay for the  taxes payable by such person upon such grant or award (or upon vesting thereof)  (d) Restricted Payments made with the cash proceeds received from the substantially concurrent  issuance of Stock (other than Disqualified Stock) of the Borrower within ten (10) days of such issuance  which proceeds are not used for any other purpose;  (e) other Restricted Payments in an aggregate amount not to exceed $200,000 in any fiscal year of the  Borrower.  Section 7.3 Liens. No Loan Party shall, nor shall it permit any of its Subsidiaries to, directly or  indirectly, make, create, incur, assume or suffer to exist any Lien upon or with respect to any of its assets  or property, except:  (a) Liens existing on the Closing Date and set forth on Schedule 7.3(a);  (b) Liens in favor of the Secured Parties under the Facility Documents;  (c) carriers’, warehousemen’s, mechanics’, landlords’, materialmen’s, repairmen’s or  other similar Liens arising in the ordinary course of business that secure obligations that are not  delinquent or remain payable without penalty or that are being contested in good faith and by  appropriate Proceedings, which Proceedings have the effect of preventing the forfeiture or sale of  the assets or property subject thereto and for which adequate reserves in accordance with GAAP  are being maintained;  (d) Liens for Taxes, assessments or governmental charges or levies, in each case  imposed by law or arising in the ordinary course of business for amounts that are not past due or  payable or that are being contested in good faith by appropriate Proceedings, which Proceedings  have the effect of preventing the forfeiture or sale of the property subject thereto, and for which  adequate reserves in accordance with GAAP are being maintained;  (e) (i) Liens arising from judgments, decrees or attachments in circumstances not  constituting an Event of Default and (ii) pledges or cash deposits made in lieu of, or to secure the  performance of, judgment or appeal bonds in respect to such judgments and Proceedings described  in the foregoing clause (i);  

 

 60  US_153737865v8  (f) Liens in favor of financial institutions arising in connection with the Borrower’s  or its Subsidiaries’ deposit accounts maintained in the ordinary course held at such institutions to  secure standard fees for services charged by, but not financing made available by, such institutions  and bankers’ liens, rights of setoff or similar rights and remedies as to deposit accounts or other  funds maintained with depository institutions and payment processors; provides, that such deposit  accounts or funds are not established or deposited for the purposes of provide collateral for any  Indebtedness;   (g) Liens (other than any Lien imposed by ERISA) (i) consisting of pledges or deposits  required in the ordinary course of business in connection with workers’ compensation,  unemployment insurance and other social security legislation or to secure the performance of  tenders, statutory obligations, surety, stay, customs and appeals bonds, bids, leases (other than  Capital Leases), governmental contracts, trade contracts, performance and return of money bonds  and other similar obligations (exclusive of obligations for the payment of borrowed money or other  funded Indebtedness) or to secure liability to insurance carriers and (ii) in respect of letters of credit,  bank guarantees or similar instruments issued for the account of the Borrower or any of its  Subsidiaries in the ordinary course of business supporting obligations of the type described in the  foregoing clause (i);  (h) easements, rights of way, restrictions and other similar encumbrances affecting  real property which, in the aggregate, are not substantial in amount, do not affect the value or  marketability of such real property and which do not in any case materially interfere with the  conduct of the business of any Loan Party or its Subsidiaries;  (i) (i) any interest or title of a lessor or sublessor under any lease or sublease permitted  by this Agreement and entered into in the ordinary course of business or (ii) non-exclusive licenses  and non-exclusive sublicenses granted by a Loan Party or any Subsidiary of a Loan Party and leases  and subleases (by a Loan Party or any Subsidiary of a Loan Party as lessor or sublessor) to third  parties in the ordinary course of business not interfering with the business of the Loan Parties or  any of their Subsidiaries;  (j) Liens of a collection bank arising under Section 4-210 of the UCC (or equivalent  in foreign jurisdictions) on items in the course of collection;  (k) Liens securing Capital Lease Obligations or Liens on any assets or property  acquired or held by any Loan Party or any Subsidiary of any Loan Party securing Indebtedness  incurred or assumed for the purpose of financing (or refinancing) all or any part of the cost of  acquiring such assets or property, including vendor financing, and permitted under Section 7.5(k);  provided that (i) such Lien attaches solely to the assets or property so acquired in such transaction  and the proceeds thereof within one hundred twenty (120) days of such acquisition and (ii) the  principal amount of the Indebtedness secured thereby does not exceed 100% of the cost of such  assets or property;  (l) [reserved]  (m) Liens arising from the filing of precautionary UCC financing statements with  respect to any lease not prohibited by this Agreement;  (n) Liens arising out of consignment or similar arrangements for the sale of goods  entered into by the Borrower or any Subsidiary of the Borrower in the ordinary course of business  consistent with past practices;  

 

 61  US_153737865v8  (o) Liens in favor of customs and revenue authorities arising as a matter of law which  secure payment of customs duties in connection with the importation of goods in the ordinary  course of business consistent with past practices;   (p) Liens on unearned insurance premiums securing the financing thereof to the extent  permitted under Section 7.5(n);  (q) Liens solely on cash earnest money deposits made by the Borrower or any of its  Subsidiaries in connection with any letter of intent or purchase agreement in the ordinary course of  business;  (r) Liens in the nature of the right of setoff in favor of counterparties to contractual  agreements with any Loan Party in the ordinary course of business;  (s) cash collateral securing letters of credit permitted pursuant to Section 7.5(n);   (t) other Liens securing Indebtedness or other obligations outstanding in an aggregate  amount not to exceed $500,000 at any time outstanding; and  (u) Liens incurred in the extension, renewal or refinancing of any Indebtedness  secured by Liens described in clauses (a), (i), (j) and (r) above; provided, that any extension,  renewal or replacement Liens are limited to the property encumbered by the existing Lien and the  principal amount of any such Indebtedness may not increase.  Section 7.4 Dispositions. No Loan Party shall, nor shall it permit any of its Subsidiaries to, directly or  indirectly, dispose of (whether in one or a series of transactions) any assets or property (including the Stock  of any Subsidiary of any Loan Party, whether in a public or private offering or otherwise, and accounts and  notes receivable, with or without recourse), or, directly or indirectly, issue, sell or otherwise transfer or  provide a controlling, management or other interest in, any Stock of any Loan Party or any of its  Subsidiaries, except for:  (a) Dispositions of (i) inventory, goods or services or (ii) worn-out, obsolete, damaged  or surplus equipment, in each case of clause (i) and (ii), in the ordinary course of business;  (b) (i) Dispositions of Cash Equivalents in the ordinary course of business made to a  Person that is not an Affiliate of any Loan Party and (ii) conversions of Cash Equivalents into cash  or other Cash Equivalents;  (c) transactions expressly permitted under Section 7.3(i)(ii);  (d) Permitted Investments, to the extent any such Investment constitutes a Disposition;  (e) the sale of (i) the Stock of any Subsidiary of the Borrower to the Borrower or any  Loan Party and (ii) the Stock of any Subsidiary of the Borrower that is not a Loan Party to any  other Subsidiary of the Borrower that is not a Loan Party;  (f) the transfer of any assets or property (i) by a Loan Party (other than the Borrower)  to another Loan Party or, (ii) for no more than fair market value, by a Subsidiary that is not a Loan  Party to (A) a Loan Party or (B) any other Subsidiary that is not a Loan Party;  

 

 62  US_153737865v8  (g) the issuance by any Foreign Subsidiary of Stock to qualified directors where  required by or to satisfy any Applicable Law, including any Applicable Law with respect to  ownership of Stock in Foreign Subsidiaries;  (h) Dispositions of Investments in joint ventures to the extent required by, or made  pursuant to, customary buy/sell arrangements between, the joint venture parties set forth in joint  venture arrangements and similar binding arrangements that were entered into in the ordinary  course of business;  (i) transactions expressly permitted by Section 7.1;  (j) Dispositions of past due accounts receivable in the ordinary course of business  (including any discount and/or forgiveness thereof) or, in the case of accounts receivable in default,  in connection with the collection or compromise thereof and in any event, not involving any  securitization or factoring thereof, in the ordinary course of business;  (k) (i) any termination of any lease, (ii) any expiration of any option agreement in  respect of real or personal property, (iii) any surrender or waiver of contractual rights or the  settlement, release or surrender of contractual rights or litigation claims (including in tort) and (iv)  any lease or sublease of real property not useful in the conduct of the business of the Borrower or  its Subsidiaries, in the case of each of the foregoing clauses (i) through (iv), in the ordinary course  of business;   (l) Dispositions by way of any involuntary loss, damage or destruction of property or  any involuntary condemnation, seizure or taking, by exercise of the power of eminent domain or  otherwise, or confiscation or requisition of use of property; and  (m) other Dispositions in an aggregate amount not to exceed $250,000 in any fiscal  year of the Borrower so long as such Dispositions are not made in respect of assets or property  material or otherwise reasonably necessary to the operations and conduct of the business of the  Borrower and its Subsidiaries; and  (n) non-exclusive licenses in connection with data monetization rights in the ordinary  course of business.   Section 7.5 Indebtedness. No Loan Party shall, nor shall it permit any of its Subsidiaries to, directly  or indirectly, create, incur, assume, guarantee, permit to exist or be liable with respect to any Indebtedness,  other than:  (a) Indebtedness existing as of the Closing Date and set forth on Schedule 7.5(a)  attached hereto;  (b) the Obligations;  (c) Indebtedness not to exceed $1,000,000 in the aggregate at any time outstanding,  consisting of Capital Lease Obligations, vendor financing or Indebtedness secured by Liens  permitted by Section 7.3(k);  (d) Indebtedness in respect of treasury, depository and cash management services,  including netting services, overdraft protections, controlled disbursement services, ACH and  electronic funds transfer, credit cards, merchant cards, purchase cards and debit cards (including  

 

 63  US_153737865v8  procurement cards or p-cards), non-card e-payables services, lockbox services, stop payment  services, wire transfer services, arrangements in respect of pooled deposit or sweep accounts, check  endorsement guarantees and other similar and customary services in connection with deposit  accounts incurred in the ordinary course of business;  (e) Indebtedness to employees in respect of benefit plans and employment and  severance arrangements;  (f) Indebtedness with respect to performance bonds, surety and appeal bonds and  similar instruments incurred in the ordinary course of business;  (g) Indebtedness arising under guaranties made in the ordinary course of business of  obligations of any Loan Party that are otherwise expressly permitted hereunder; provided that if  such obligation is subordinated to the Obligations, such guaranty shall be subordinated to the  Obligations to the same extent;  (h) Indebtedness owed by (i) any Loan Party to another Loan Party, (ii) any Loan Party  to one of its Subsidiaries that is not a Loan Party, so long as such Indebtedness is unsecured and  subordinated to the Obligations in a manner reasonably satisfactory to the Required Lenders and  (iii) any Subsidiary of the Borrower that is not a Loan Party to any Loan Party Parties not to exceed,  when combined with amounts outstanding under Section 7.6(b)(ii), $250,000 in the aggregate, so  long as such Indebtedness is evidenced by a promissory note that is pledged to Agent, for the benefit  of the Secured Parties, and has such terms as the Required Lenders may reasonably require;  (i) Indebtedness arising with respect to customary indemnification obligations and  purchase price adjustments in favor of (i) sellers in connection with Acquisitions or similar  Investments permitted hereunder and (ii) purchasers in connection with Dispositions permitted  hereunder;  (j) endorsements for collection or deposit in the ordinary course of business;  (k) Indebtedness consisting of the financing of insurance premiums in the ordinary  course of business; and  (l) Qualifying Sub Debt;   (m) Swap Contracts entered into in the ordinary course of business for bona fide  hedging purposes and not for speculation;  (n) Indebtedness in respect of letters of credit (including trade letters of credit, bank  guarantees or similar instruments issued or incurred in the ordinary course of business in an  aggregate outstanding stated or face amount not to exceed $500,000;  (o) other Indebtedness (not for borrowed money) in an aggregate principal amount not  to exceed $500,000 in the aggregate at any time outstanding; and   (p) Indebtedness in respect of accounts receivables financing arrangements (i) not to  exceed 85% of the aggregate accounts receivables of the Loan Parties in the aggregate at any time  outstanding, (ii) pursuant to terms and other arrangements satisfactory to the Agent and the  Required Lenders, determined in their sole discretion, and (iii) to the extent required, subject to  

 

 64  US_153737865v8  intercreditor arrangements satisfactory to the Agent and the Required Lenders, determined in their  sole discretion.  Notwithstanding anything to the contrary herein, the accrual of interest and the payment of interest  on any Indebtedness in the form of additional Indebtedness with the same terms will not be deemed to be  an incurrence of Indebtedness for purposes of this Section.   Section 7.6 Investments. No Loan Party shall, nor shall it permit any of its Subsidiaries to, directly or  indirectly, to make any Investment except for:  (a) Investments in cash and Cash Equivalents;  (b) Investments consisting of (i) extensions of credit or capital contributions by any  Loan Party to or in any other Loan Party, (ii) extensions of credit or capital contributions by a Loan  Party to or in any Subsidiaries of the Borrower that are not Loan Parties not to exceed, when  combined with the amounts outstanding under Section 7.5(h)(iii), $250,000 in the aggregate at any  time outstanding for all such extensions of credit and capital contributions; provided that, if the  Investments described in foregoing clauses (i) and (ii) are evidenced by promissory notes, such  promissory notes shall be pledged to Agent, for the benefit of the Secured Parties, and have such  terms as the Required Lenders may reasonably require, and (iii) extensions of credit or capital  contributions by a Subsidiary of the Borrower that is not a Loan Party to or in another then-existing  Subsidiary of the Borrower that is not a Loan Party that has at least the same amount and percentage  of its Stock pledged to Agent as the party lending such credit amounts or extending such capital  contribution;  (c) loans and advances to employees of the Loan Parties and their Subsidiaries to  finance travel and relocation expenses and other ordinary business purposes in the ordinary course  of business not to exceed $100,000 in the aggregate at any time outstanding;  (d) Investments acquired in connection with the settlement of delinquent accounts  receivable in the ordinary course of business or in connection with the bankruptcy or reorganization  of suppliers or customers;  (e) Investments consisting of non-cash loans made by the Borrower to officers,  directors and employees of a Loan Party that are used by such Persons to simultaneously purchase  Stock of the Borrower;  (f) Investments existing on the Closing Date and set forth on Schedule 7.6(f);  (g) Investments comprising guarantees of Indebtedness expressly permitted by  Section 7.5;  (h) Investments constituting the establishment or creation of Subsidiaries of the  Borrower so long as the Loan Parties and any such Subsidiary comply with the applicable  provisions of Section 6.12;   (i) Investments received as the non-cash portion of consideration received in  connection with transactions permitted pursuant to Section 7.4(n);   (j) Investments consisting of Permitted Acquisitions; and  

 

 65  US_153737865v8  (k) other Investments in an aggregate amount not to exceed $1,000,000 in any fiscal  year of the Borrower.  Section 7.7 Affiliate Transactions. No Loan Party shall, and no Loan Party shall suffer or permit any  of its Subsidiaries to, directly or indirectly, (a) enter into any transaction with any Affiliate of a Loan Party  (other than transactions between or among Loan Parties and their Subsidiaries; provided that, if the  Borrower is a party to such transaction, such transaction shall be on an arm’s length basis or the terms of  such transaction shall be at least as favorable, taken as a whole, as they are to such Subsidiary that is a party  to such transaction) or any officer, employee, partner, manager or director (or similar official or governing  person) of any of the foregoing, (b) pay any management, consulting or similar fees to any of the foregoing,  (c) pay or reimburse any of the foregoing for any costs, expenses and similar items, (d) make any  indemnification payments to any such Person, or (e) enter into any partnership, joint venture, syndicate,  pool, profit-sharing or royalty agreement or other combination, or engage in any transaction with any holder  of Stock of any Loan Party, any Affiliate of any Loan Party or any equity holder of such Affiliate, whereby  its income or profits are, or might be, shared with another Person other than a wholly owned Subsidiary,  except in each case of the foregoing clauses (a) through (e) (i) with respect to transactions between or  among the Borrower and its Subsidiaries as expressly permitted by this Agreement, (ii) in the ordinary  course of business and pursuant to the reasonable requirements of the business of such Loan Party or such  Subsidiary upon fair and reasonable terms no less favorable to such Loan Party or such Subsidiary than  would be obtained in a comparable arm’s length transaction with a Person that is not an Affiliate of the  Borrower or such Subsidiary; provided, further, that in no event shall a Loan Party or any Subsidiary of a  Loan Party perform or provide any management, consulting, administrative or similar services to or for any  Person other than another Loan Party, a Subsidiary of a Loan Party or a customer who is not an Affiliate of  a Loan Party in the ordinary course of business, (iii) payment of reasonable and customary directors’ fees  and reimbursement of actual out-of-pocket expenses incurred in connection with attending board of director  meetings in the ordinary course of business consistent with past practices, (iv) customary and reasonable  compensation arrangements for officers and other employees of the Borrower and its Subsidiaries entered  into in the ordinary course of business, and (v) the transactions pursuant to the PA Documents.  Section 7.8 Conduct of Business. No Loan Party shall, and no Loan Party shall permit any of its  Subsidiaries to, directly or indirectly, engage in any line of business materially different from those lines  of business carried on by it on the Closing Date other than any business reasonably related, complementary,  ancillary, supplemental or incidental thereto or any reasonable extension thereof.  No Loan Party shall, and  no Loan Party shall permit any of its Subsidiaries to use any proceeds of the Loans to purchase or carry any  Margin Stock or extend credit to others for the purpose of purchasing or carrying any Margin Stock.   Section 7.9 Amendments to Organizational Documents and Other Documents. No Loan Party  shall, and no Loan Party shall permit any of its Subsidiaries to, directly or indirectly, amend, restate,  supplement, change, replace or otherwise modify (or waive or consent to any diversions from, or actions or  inactions affecting) any of its Organizational Documents that could reasonably be expected to be materially  adverse to the rights, remedies, interests or privileges of any of the Secured Parties or their ability to enforce  the same. No Loan Party shall, and no Loan Party shall permit any Subsidiary to, directly or indirectly,  amend, restate, supplement, change, extend, refinance, replace or otherwise modify (or waive or consent to  any diversions from, or actions or inactions affecting any Material Agreement, in each case, in a manner  that: (a) is contrary to (or is in violation or breach of or would cause a Default pursuant to) the terms and  provisions of this Agreement or any other Facility Document, or (b) could reasonably be expected to be  materially adverse to the rights, remedies, interests or privileges of any of the Secured Parties or their ability  to enforce the same.  Section 7.10 Accounting and Organizational Changes. No Loan Party shall, and no Loan Party shall  suffer or permit any of its Subsidiaries to, (a) make any significant change in accounting treatment or  

 

 66  US_153737865v8  reporting practices, except as required by GAAP, (b) change the fiscal year or method for determining the  fiscal quarters of any Loan Party or of any Subsidiary of any Loan Party (other than for the purpose of  conforming the fiscal year of any Subsidiary to that of the Borrower), (c) change its name as it appears in  official filings in its jurisdiction of organization or formation, (d) change its jurisdiction of organization or  formation, (e) change its entity identity, (f) change its organizational identification number (if any) or (g)  change the address of its chief executive office or principal place of business, provided, that in the case of  any of the Borrower’s subsidiaries changes its jurisdiction of organization or formation, the Borrower shall  provide advance notice of such change to the Agent.  Section 7.11 Payments of Certain Indebtedness. No Loan Party shall, nor shall it permit any of its  Affiliates to, directly or indirectly, purchase, redeem or defease earlier than scheduled or prepay any  principal of, premium, if any, interest or other amount payable in respect of any Qualifying Sub Debt or  any other Indebtedness that is subordinated to the Obligations as to right and timing of payment or security  and is permitted under the Facility Documents, except (i) upon any exchange or conversion of any such  Indebtedness by the holders thereof pursuant to its terms, the Borrower may pay or prepay the principal on  such Indebtedness subject to such conversion, and interest with respect thereto, but only in Stock (other  than Disqualified Stock) of the Borrower (or de minimus cash amounts in lieu of fractional shares of such  Stock of the Borrower), (ii) in connection with any refinancing thereof with the proceeds of Qualifying Sub  Deb, (iii) in connection with any settlement, repayment, redemption, retirement or acquisition for value of  any such Indebtedness in exchange for shares of Stock (other than Disqualified Stock) of the Borrower,  together with de minimus cash amounts in lieu of fractional shares), and (iv) in connection with the  repurchase, redemption, retirement or acquisition for value of any such Indebtedness with the proceeds  received from any substantially concurrent issuance of Stock (other than Disqualified Stock) of the  Borrower within ten (10) days of such issuance which proceeds are not used for any other purpose.   Section 7.12 Burdensome Agreements and Negative Pledges. No Loan Party shall, and no Loan Party  shall permit any of its Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to exist or  become effective any consensual restriction or encumbrance of any kind on the ability of any Loan Party  or Subsidiary to pay dividends or make any other distribution on any of such Loan Party’s or Subsidiary’s  Stock or to pay fees or make other payments and distributions to any Loan Party or any of its Subsidiaries,  except for those in the Facility Documents. No Loan Party shall, and no Loan Party shall permit any of its  Subsidiaries to, directly or indirectly, enter into, assume or become subject to any obligation prohibiting or  otherwise restricting the existence of any Lien upon any of its assets, whether now owned or hereafter  acquired, in favor of Agent or any other Secured Party or prohibit or otherwise restrict the Disposition of  any assets of any Loan Party or any of its Subsidiaries, except, in each case, (a) those set forth in the Facility  Documents, (b) in connection with any document or instrument governing Liens permitted pursuant Section  7.3(k); provided that any such restriction contained therein relates only to the asset or assets subject to such  Permitted Liens, (c) those imposed by Applicable Law, (d) customary provisions restricting subletting or  assignment of any lease governing a leasehold interest, or sublicensing or assignment of any licenses, of a  Subsidiary, (d) customary provisions restricting assignment of any agreement entered into by a Subsidiary  in the ordinary course of business (provided that such provision was not implemented for the purposes of  avoiding the limitations set forth in this Section 7.12); (e) any Lien permitted by Section 7.3 restricting the  transfer or encumbrance of the property subject thereto; (f) customary restrictions and conditions contained  in any agreement relating to any transaction permitted under Section 7.1 (provided that such restrictions  and conditions were not implemented for the purposes of avoiding the limitations set forth in this Section  7.12); (g) customary provisions in partnership agreements, limited liability company agreements,  organizational governance documents, asset sale and stock sale agreements and other similar agreements  entered into in the ordinary course of business that restrict the transfer of ownership interests in such  partnership, limited liability company or similar person (provided, that such provision was not implemented  for purposes of avoiding the limitations set forth in this Section 7.12); (i) restrictions on cash or other  deposits or net worth imposed by suppliers or landlords under contracts entered into in the ordinary course  

 

 67  US_153737865v8  of business; (h) any instrument governing any Qualified Sub Debt; and (i) any encumbrances or restrictions  imposed by any amendments or refinancings that are otherwise permitted by the Facility Documents or the  contracts, instruments or obligations referred to in clauses (e), (g) or (h) above; provided that such  amendments or refinancings are no more restrictive with respect to such encumbrances and restrictions than  those in effect prior to such amendment or refinancing.   Section 7.13 OFAC; Patriot Act; Anti-Corruption Laws. No Loan Party shall, and no Loan Party  shall permit any of its Subsidiaries, any PA Entity or any of its Subsidiaries, to, directly or indirectly, fail  to comply with the laws, regulations and executive orders referred to in Section 3.27. No Loan Party or  Subsidiary of a Loan Party, nor to the knowledge of any Loan Party or any of its Subsidiaries, any PA  Entity or any of its Subsidiaries, any director, officer, agent, employee or other Person acting on behalf of  any TOI Party or any such Subsidiary, will request or use the proceeds of any Loan, directly or indirectly,  (a) for any payments to any Person, including any government official or employee, political party, official  of a political party, candidate for political office or anyone else acting in an official capacity, in order to  obtain, retain or direct business or obtain any improper advantage, or otherwise take any action, directly or  indirectly, that would result in a violation of any Anti-Corruption Laws, (b) for the purpose of funding,  financing or facilitating any activities, business or transaction of or with any Person on the SDN List or a  government of a Sanctioned Country, to the extent such activities, business or transaction would be  prohibited by applicable Sanctions if conducted by a corporation incorporated in the United States or in a  European Union member state, or (c) in any manner that would result in the violation of any Sanctions  applicable to any party hereto. Furthermore, the Loan Parties will not, and will not permit their Subsidiaries  (or any PA Entity or any of their Subsidiaries) to, directly or indirectly, use the proceeds of the transaction,  or lend, contribute or otherwise make available such proceeds to any Subsidiary, Affiliate, joint venture  partner or other Person, to fund any activities of, or business with any Person, or in any country or territory,  that, in each case, at the time of such funding, is the subject of Sanctions prohibiting such funding, or in  any other manner that will result in a violation by any Person participating in the transaction of any  Sanctions.  Section 7.14 Hazardous Materials. No Loan Party shall, and no Loan Party shall permit any of its  Subsidiaries to, directly or indirectly, cause or permit to exist any Release of any Hazardous Material at, to  or from any Real Estate that would violate or form the basis of Liability under any Environmental Law,  other than such violations or liabilities that could not reasonably be expected, individually or in the  aggregate, to have a Material Adverse Effect.  Section 7.15 Investment Company Act. No Loan Party shall, and no Loan Party shall permit any of its  Subsidiaries to, directly or indirectly, be an “investment company” as such term is defined in the Investment  Company Act, or to otherwise be registered under or required to be registered under the Investment  Company Act.  Section 7.16 Financial Covenants.   (a) The Loan Parties shall not have, at any time, aggregate unrestricted cash and Cash  Equivalents of the Loan Parties that are subject to a Control Agreement of less than $40,000,000;  provided, that the requirement that such unrestricted cash and Cash Equivalents are subject to a  Control Agreement shall not be applicable until the date that Control Agreements are required to  be delivered pursuant to Section 6.11(a).  (b) The Loan Parties shall not have, on the last day of any fiscal quarter of the  Borrower, commencing with the first fiscal quarter of the Borrower for fiscal year 2023, Net  Revenues of less than the following:   

 

 68  US_153737865v8  Fiscal Quarter Minimum Net Revenue  For each fiscal quarter ending during Fiscal Year 2023 $50,000,000  For each fiscal quarter ending during Fiscal Year 2024 $75,000,000  For each fiscal quarter ending during Fiscal Year 2025  and thereafter  $100,000,000    ARTICLE 8  EVENTS OF DEFAULT  Section 8.1 Events of Default. Any of the following events, conditions or other occurrences shall  constitute an “Event of Default”:  (a) The Borrower or any other Loan Party shall have failed (i) to pay when and as  required to be paid herein or in any other Facility Document, any amount of principal of any Loan,  including upon maturity of the Loans, or (ii) to pay within five (5) Business Days after the same  shall become due, interest on any Loan, or any fee or any other amount or Obligation payable  hereunder or pursuant to any other Facility Document.  (b) Any Loan Party shall have failed to comply with or observe (i) Section 6.1, 6.6,  6.7, 6.8, 6.11, 6.12, 6.15, 6.17, 6.18, 6.19, 6.23 or Article 7, or (ii) any covenant contained in any  Facility Document (other than the covenants described in Section 8.1(a) or 8.1(b)(i) above), and  such failure, with respect to this Section 8.1(b)(ii) only, shall not have been cured within thirty (30)  days after the earlier to occur of (A) the date upon which any officer of any Loan Party or any of  its Subsidiaries becomes aware of such failure and (B) the date upon which written notice thereof  is given to any Loan Party or any of its Subsidiaries by any Secured Party;  (c) Any representation or warranty made or deemed made by any Loan Party in any  Facility Document shall have been incorrect, false or misleading in any material respect (except to  the extent that such representation or warranty is qualified by reference to materiality or Material  Adverse Effect, to which extent it shall have been incorrect, false or misleading in any respect) as  of the date it was made or deemed made.  (d) (i) Any Loan Party or any of its Subsidiaries shall generally be unable to pay its  debts as such debts become due, or shall admit in writing its inability to pay its debts as they come  due or shall make a general assignment for the benefit of creditors; (ii) any Loan Party or any of its  Subsidiaries shall declare in writing a moratorium on the payment of its debts in general; (iii) the  commencement by any Loan Party or any of its Subsidiaries of proceedings to be adjudicated  bankrupt or insolvent, or the consent by it to the commencement of bankruptcy or insolvency  proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization,  intervention or other similar relief under any Applicable Law, or the consent by it to the filing of  any such petition or to the appointment of an intervenor, receiver, liquidator, assignee, trustee,  sequestrator or other similar official of all or substantially all of its assets; (iv) the commencement  against any Loan Party or any of its Subsidiaries of a proceeding in any court of competent  jurisdiction under any bankruptcy or other Applicable Law (as now or hereafter in effect) seeking  its liquidation, winding up, dissolution, reorganization, arrangement or adjustment, or the  appointment of an intervenor, receiver, liquidator, assignee, trustee, sequestrator or other similar  official, and any such proceeding shall continue undismissed, or any order, judgment or decree  approving or ordering any of the foregoing shall continue unstayed or otherwise in effect, for a  

 

 69  US_153737865v8  period of sixty (60) days; (v) the making by any Loan Party or any of its Subsidiaries of an  assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its  debt generally as they become due; or (vi) any other event shall have occurred that, under any  Applicable Law, would have an effect analogous to any of those events listed above in this  subsection.  (e)  (i) One or more judgments, orders, decrees, arbitration awards or settlements shall  be entered or rendered against any Loan Party or any Subsidiary of a Loan Party for the payment  of money in an aggregate amount exceeding $10,000,000 that is not covered by insurance payable  by a solvent and independent third-party, non-affiliated insurance company that has been notified  of such judgment, order, decree, arbitration aware or settlement and has not denied coverage  therefor), and either (A) enforcement proceedings shall have been commenced by any creditor upon  any such judgment, order, decree, arbitration award or settlement or (B) such judgment, order,  decree, arbitration award or settlement shall not have been satisfied, vacated or discharged within  thirty (30) days after the entry or providing thereof or there shall not be in effect (by reason of a  pending appeal) any stay of enforcement thereof within thirty (30) days after the entry or providing  thereof, or (ii) one or more non-monetary judgments, orders, decrees, arbitration awards or  settlements shall be entered or rendered against any Loan Party or any Subsidiary of a Loan Party  that would reasonably be expected, individually or in the aggregate, to have a Material Adverse  Effect, and, with respect to this clause (ii), there shall be any period of thirty (30) days during which  such a stay of enforcement of such judgment, order, decree, arbitration award or settlement, by  pending appeal or otherwise, shall not be in effect.  (f) Any authorization of a Governmental Authority necessary for the execution,  delivery or performance of any Facility Document or for the validity or enforceability of any of the  Obligations under any Facility Document is not given, is withdrawn or ceases to remain in full  force or effect.  (g) The validity of any Facility Document shall be contested by any Loan Party or any  of its Subsidiaries, or any Applicable Law shall purport to render any material provision of any  Facility Document invalid or unenforceable or shall purport to prevent or materially delay the  performance or observance by any Loan Party or any of its Subsidiaries of the Obligations.  (h) Any Loan Party or any Subsidiary of any Loan Party (i) shall fail to make any  payment in respect of any Indebtedness (other than the Obligations) having an aggregate principal  amount (including undrawn committed or available amounts and including amounts owing to all  creditors under any combined or syndicated credit arrangement) of more than $5,000,000 when due  (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise) and such  failure continues after the applicable grace or notice period, if any, specified in the documents  relating thereto on the date of such failure; or (ii) shall fail to perform or observe any other condition  or covenant, or any other event shall occur or condition exist, under any agreement or instrument  relating to any such Indebtedness of more than $5,000,000, if the effect of such failure, event or  condition is to cause, or to permit the holder or holders of such Indebtedness or beneficiary or  beneficiaries of such Indebtedness (or a trustee or agent on behalf of such holder or holders or  beneficiary or beneficiaries) to cause, such Indebtedness to be declared to be due and payable (or  otherwise required immediately to be prepaid, redeemed, purchased or defeased) prior to its stated  maturity (without regard to any subordination terms with respect thereto) or cash collateral in  respect thereof to be demanded.  (i) (A) Any material provision of any Facility Document shall for any reason cease to  be valid and binding on or enforceable against any Loan Party or any Subsidiary of any Loan Party  

 

 70  US_153737865v8  party thereto; (B) any Loan Party or any Subsidiary of any Loan Party shall announce or  state in  writing that it will not honor, or shall bring an action to limit, any of its obligations or liabilities  under any Facility Document (including obligations to issue Warrant Shares upon exercise of the  Warrants and obligations to issue Conversion Shares upon conversion of the Notes); (C) any  Facility Document shall for any reason (other than pursuant to the terms thereof) cease to create a  valid security interest in the Collateral (to the extent that such perfection or priority is required  hereby) purported to be covered thereby or such security interest shall for any reason cease to be a  perfected and first priority security interest; or (D) any of the Obligations shall cease to be secured  by all of the Collateral.  (j) (i) The occurrence of any ERISA Event that could reasonably be expected,  individually or in the aggregate, to have a Material Adverse Effect or (ii) the imposition of a Lien  on any asset of a Loan Party or a Subsidiary of a Loan Party with respect to any Title IV Plan or  Multiemployer Plan.  (k) The occurrence of a “Conversion Failure” (as such term is defined in the Notes) or  any Event of Default (as such term is defined in the Warrants).  (l) The Common Stock shall cease to be registered under the Exchange Act or to be  listed on the Principal Market.  (m) The institution by any Governmental Authority of criminal proceedings against  any Loan Party pursuant to which statute or proceedings the penalties or remedies sought or  available include forfeiture to any Governmental Authority of any material portion of the property  of such Person.  (n) The occurrence of any Change of Control.  (o) There shall occur any revocation, suspension, termination, rescission, non-renewal  or forfeiture or any similar final administrative action with respect to one or more Health Care  Permits, Third Party Payor Programs or Third Party Payor Authorizations that would, individually  or in the aggregate, have a Material Adverse Effect.  (p) The occurrence of any default or event of default or similar event pursuant to any  Qualifying Sub Debt.  Section 8.2 Remedies. Upon the occurrence and during the continuance of any Event of Default the  Required Lenders may direct Agent to:  (a) declare all or any portion of the unpaid principal amount of all outstanding Loans,  all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under  any other Facility Document (including the Make Whole Amount and Exit Fee) to be immediately  due and payable; without presentment, demand, protest or other notice of any kind, all of which are  hereby expressly waived by each Loan Party;  (b) declare all or any portion of any one or more of the Commitments of each Lender  to make Loans to be suspended or terminated, whereupon all or such portion of such Commitments  shall forthwith be suspended or terminated; and/or  (c) exercise on behalf of itself and the Lenders all rights and remedies available to it  and the Lenders under the Facility Documents or applicable law;  

 

 71  US_153737865v8  provided, however, upon the occurrence of any event specified in Section 8.1(d) above, the obligation of  each Lender to make Loans shall automatically terminate and the unpaid principal amount of all outstanding  Loans and all interest and other amounts as aforesaid (including the Make Whole Amount and Exit Fee)  shall automatically become due and payable without further act of Agent or any Lender.  ARTICLE 9  MISCELLANEOUS  Section 9.1 Notices. Any notices or other information (including an financial information) required or  permitted to be given under the terms hereof shall be sent by certified or registered mail (return receipt  requested) or delivered personally or by courier (including a recognized overnight delivery service) or by  email and shall be effective five (5) days after being placed in the mail, if mailed by regular United States  mail, or upon receipt, if delivered personally or by courier (including a recognized overnight delivery  service), or when received by email in each case addressed to a party as follows (or such other address or  email address provided by such party to such other parties pursuant to the below (or such later address or  email address provided in accordance herewith):  If to the Borrower or any other Loan Party:    The Oncology Institute, Inc.  18000 Studebaker Road, Suite 800  Cerritos, California 90703  E-mail: bradhively@theoncologyinstitute.com  Attn: Brad Hively    With a copy to (which shall not be deemed to constitute notice):  Latham & Watkins LLP  355 South Grand Avenue, Suite 100  Los Angeles, CA 90071-1560  E-mail: steven.stokdyk@lw.com   brian.duff@lw.com  Attn: Steven Stokdyk  Attn: Brian Duff    If to the Agent:  c/o Deerfield Management Company, L.P.  345 Park Avenue South, 12th Floor  New York, New York 10010  E-mail: legalnotice@deerfield.com    With a copy to (which shall not be deemed to constitute notice):  Katten Muchin Rosenman LLP  525 West Monroe Street  Chicago, Illinois 60661  Attn: Mark D. Wood  E-mail: mark.wood@katten.com   

 

 72  US_153737865v8  and  Katten Muchin Rosenman LLP  50 Rockefeller Plaza  New York, New York 10020  Attn: Kirby Chin  E-mail: kirby.chin@katten.com  If to any Lender, the information for notices included on Schedule 2.3 or pursuant to any assignment  agreement assigning any Obligations to any new Lender.  Section 9.2 Cost and Expense Reimbursement. The Loan Parties agree to pay on or prior to the  Closing Date and, within ten (10) Business Days after delivery of an invoice therefor, after the Closing  Date, (a) all reasonable and documented out-of-pocket costs and expenses of the Secured Parties of  negotiation, preparation, execution, delivery, filing and administration of the Facility Documents (including  reasonable and documented out-of-pocket costs and expenses of any subagent acting on behalf of the Agent)  and any consents, amendments, waivers or other modifications thereto, (b) all reasonable and documented  out-of-pocket fees, costs and expenses of legal counsel to each Secured Party in connection with the  negotiation, preparation, execution and administration of the Facility Documents and any consents,  amendments, waivers or other modifications thereto and any other documents or matters requested by the  Borrower or any other Loan Party related thereto, (c) all reasonable and documented out-of-pocket fees,  costs and expenses of creating and perfecting Liens in favor of Agent (on behalf of the Secured Parties)  pursuant to any Facility Document, including filing and recording fees, expenses and Taxes, search fees,  title insurance premiums, and fees, costs, expenses and disbursements of counsel to each Secured Party and  of counsel providing any opinions that any Secured Party may request in respect of any Facility Documents,  Warrant Shares or Conversion Shares or the Liens created pursuant to the Facility Documents, (d) all  reasonable and out-of-pocket costs and expenses incurred by the Agent in connection with the custody or  preservation of any of the Collateral, (e) all reasonable and documented out-of-pocket costs and expenses,  including fees, costs and expenses of legal counsel to any Secured Party and fees, costs and expenses of  accountants, advisors and consultants, incurred by any Secured Party and its counsel relating to efforts to  protect, evaluate, assess or dispose of any of the Collateral, (f) all reasonable and documented out-of-pocket  costs and expenses, including fees, costs and expenses of legal counsel to each Secured Party and all  reasonable and documented out-of-pocket fees, costs and expenses of accountants, advisors and consultants  and costs of settlement, incurred by each Secured Party in enforcing any of the Facility Documents or any  Obligations of, or in collecting any payments due from, any Loan Party hereunder or under the other Facility  Documents (including in connection with the sale of, collection from, or other realization upon any of the  Collateral or the enforcement of the Facility Documents) or in connection with any refinancing or  restructuring of the credit arrangements provided under this Agreement in the nature of a “work-out” or  pursuant to any proceeding or event of the type set forth in Section 8.1(d), (g) the cost of purchasing  insurance that the Loan Parties fail to obtain as required by the Facility Documents, and (h) all reasonable  and documented out-of-pocket fees, costs and expenses (including reasonable and documented out-of- pocket costs and expenses of counsel) incurred by any Secured Party in connection with the enforcement  of its rights or remedies under the Facility Documents after the occurrence or during the continuance of an  Event of Default. Without limiting any of the foregoing provisions of this Section 9.2, any action taken by  any Loan Party under or with respect to any Facility Document, even if required under any Facility  Document or at the request of Agent or any other Secured Party, shall be at the sole expense of such Loan  Party, and neither Agent nor any other Secured Party shall be required under any Facility Document to  reimburse any Loan Party or any Subsidiary of any Loan Party therefor. The obligations and provisions  contained in this Section 9.2 shall survive the termination of this Agreement and the repayment of the  Obligations.  Notwithstanding the foregoing, in no event will the indemnity and payment provisions of this  

 

 73  US_153737865v8  Section 9.2 apply to Taxes, other than Taxes that represent damages, liabilities or expenses in respect of a  non-Tax claim.  Section 9.3 Governing Law; Venue; Jurisdiction; Service of Process; WAIVER OF JURY  TRIAL.   (a) This Agreement and the other Facility Documents (unless otherwise expressly  stated therein) shall be governed by and construed and enforced in accordance with the laws of the  State of New York.   (b) Each Party agrees that all legal proceedings concerning the interpretations,  enforcement and defense of the transactions contemplated by this Agreement and, unless otherwise  expressly stated therein, the other Facility Documents (whether brought against a party hereto or  its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced  exclusively in the state and federal courts sitting in the City of New York, borough of Manhattan  (and, in each case, the applicable state and federal appeals courts sitting in the City of New York  or, if not available or applicable, the State of New York). Each Party hereby irrevocably submits to  the exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough  of Manhattan for the adjudication of any dispute hereunder or under the other Facility Documents  or in connection herewith or with the other Facility Documents or with any transaction  contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert  in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of  any such court, or that such suit, action or proceeding is improper or is an inconvenient venue for  such proceeding; provided that nothing in this Agreement or in any other Facility Document shall  limit the right of any Secured Party to commence any suit, action or proceeding in federal, state or  other court of any other jurisdiction to the extent such Secured Party determines that such suit,  action or proceeding is necessary or appropriate to exercise its rights or remedies under this  Agreement or any of the other Facility Documents.   (c) Each Party hereby irrevocably waives personal service of process and consents to  process being served in any such suit, action or proceeding by mailing a copy thereof via registered  or certified mail or overnight delivery (with evidence of delivery) to such Party at the address in  effect for notices to it under this Agreement and agrees that such service shall constitute good and  sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit  in any way any right to serve process in any other manner permitted by law.   (d) THE PARTIES HERETO, TO THE EXTENT PERMITTED BY  APPLICABLE LAW, HEREBY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY  ACTION, SUIT, OR PROCEEDING ARISING OUT OF, IN CONNECTION WITH OR  RELATING TO, THIS AGREEMENT, THE OTHER FACILITY DOCUMENTS AND  ANY OTHER TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY. THIS  WAIVER APPLIES TO ANY ACTION, SUIT OR PROCEEDING WHETHER  SOUNDING IN TORT, CONTRACT OR OTHERWISE. EACH PARTY HERETO (A)  CERTIFIES THAT NO OTHER PARTY AND NO AGENT, REPRESENTATIVE OR  OTHER PERSON AFFILIATED WITH OR RELATED TO 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 THE FACILITY  DOCUMENTS, AS APPLICABLE, BY THE MUTUAL WAIVERS AND  CERTIFICATIONS IN THIS SECTION 9.3. EACH OF THE PARTIES HERETO  

 

 74  US_153737865v8  REPRESENT AND WARRANT THAT IT HAS HAD THE OPPORTUNITY TO REVIEW  THE JURY WAIVER CONTAINED IN THIS SECTION 9.3 WITH LEGAL COUNSEL.  Section 9.4 Successors and Assigns.   (a) This Agreement shall bind and inure to the respective successors and permitted  assigns of the Parties, except that no Loan Party may assign or otherwise transfer all or any part of  its rights or obligations (including the Obligations) under the Facility Documents without the prior  written consent of all of the Lenders, and any prohibited assignment by any of the Loan Parties  shall be absolutely void ab initio.   (b) Any Lender may assign or transfer its rights or the Obligations owing to it under  the Facility Documents to any Person (other than to a Disqualified Lender (in the absence of an  Event of Default)), the Borrower or any of its Subsidiaries or any natural person): (i) with the  written consent of the Borrower (which consent shall not be unreasonably withheld, delayed or  conditioned) unless an Event of Default under Section 8.1(a) or (d) has occurred and is continuing  or such assignment is made to an Approved Fund and (ii) with the consent of the Required Lenders;  provided, that, the Lenders as of the Closing Date may assign or transfer its rights or the Obligations  hereunder to another Person (or its Affiliates) identified to the Borrower prior to the Closing Date  without the consent of any party hereto. Upon a Lender’s assignment of any of the Loans held by  it (in accordance with this Section 9.4(b)), the Agent shall record the identity of the transferee and  other relevant information in the Register, and the transferee shall (to the extent of the interests  transferred to such transferee) have all the rights and obligations of, and shall be deemed, a Lender  with respect to such Loan hereunder or under the other Facility Documents. For the avoidance of  doubt, each assignment or transfer of the rights or Obligations of any Lender shall be subject only  to the following conditions: (i) the parties to each assignment or transfer shall execute and deliver  to Agent an Assignment and Assumption and (ii) upon the reasonable request by Agent, the  assignee or transferee shall provide all documentation and other information reasonably determined  by Agent to be required by applicable regulatory authorities required under applicable “know your  customer” and anti-money laundering rules and regulations, including the USA Patriot Act.  (c) In addition to the other rights provided in this Section 9.4, each Secured Party may  grant a security interest in, or otherwise assign as collateral, any of its rights under the Facility  Documents, whether now owned or hereafter acquired (including rights to payments of principal  or interest on the Loans), to any holder of, or trustee for the benefit of the holders of, such Secured  Party’s Indebtedness or equity securities.  (d) Each Loan Party acknowledges and agrees that the Securities may be pledged by  a holder thereof in connection with a bona fide margin agreement or other loan, financing or  Indebtedness secured by the Securities. The pledge of Securities shall not be deemed to be a  transfer, sale or assignment of the Securities under the Facility Documents, and no such holder  effecting any such pledge of Securities shall be required to provide any Loan Party or any of its  Subsidiaries with any notice thereof or otherwise make any delivery to any Loan Party pursuant to  any Facility Document. Each Loan Party hereby agrees, and agrees to cause each of its Subsidiaries,  to execute and deliver such documentation as a pledgee of the Securities may reasonably request  in connection with a pledge of the Securities to such pledgee by a holder of Securities.  Section 9.5 Entire Agreement; Amendments.  (a) The Facility Documents contain the entire understanding of the Parties with respect  to the matters covered thereby and supersede any and all other written and oral communications,  

 

 75  US_153737865v8  negotiations, commitments and writings with respect thereto.  (b) Subject to the provisions of Section 9.5(c), no amendment, restatement,  modification, supplement, change, termination or waiver of any provision of this Agreement or the  other Facility Documents (other than the Warrants, any Control Agreement or any similar  agreement or any landlord agreement or bailee or mortgagee waiver, each of which may be  amended, restated, supplemented, changed, terminated or waived in accordance with the terms  thereof), and no consent to any departure by any Loan Party therefrom shall in any event be  effective without the written concurrence of the Borrower and the Required Lenders; provided that  no such amendment, restatement, modification, change, termination, waiver or consent shall,  without the consent of each Lender with Obligations directly and adversely affected thereby, do  any of the following: (i) reduce any Loan; (ii) postpone the Maturity Date or other scheduled final  maturity date of any Loan, or postpone the date or reduce the amount of any scheduled payment  (but not mandatory prepayment) of principal of any Loan; (iii) postpone the date on which any  interest, premium or any fees are payable (other than default interest charged pursuant to  Section 2.7(b)); (iv) decrease the interest rate borne by any Loan (other than any waiver of any  increase in the interest rate applicable to any of the Loans pursuant to Section 2.7(b)) or the amount  of any premium or fees payable hereunder (including, without limitation, the Make Whole or the  Exit Fee); (v) amend this Section 9.5 or any provision of this Agreement or any other Facility  Documents providing for consent or other action by all Lenders; (vi) amend, modify, change or  waive the provisions contained in (A) this Section 9.5 in a manner that would further restrict the  rights of any Lender to assign all or any portion of its rights and obligations under this Agreement  or (B) Section 9.5(d); provided, further, that no such amendment, restatement, modification,  change, termination, waiver or consent shall, without the consent of each Lender, do any of the  following: (x) change in any manner any provision of this Agreement that by its terms, expressly  requires the approval or consent of all Lenders; (y) release or subordinate any Lien granted in favor  of Agent with respect to all or substantially all of the Collateral or release all or substantially all of  the value of the guarantees of the Obligations provided by the Guarantors, in each case, other than  in accordance with the terms of the Facility Documents; or (z)(A) change or have the effect of  changing the priority or pro rata treatment of any payments (including voluntary and mandatory  prepayments), Liens or proceeds of Collateral (including as a result in whole or in part of allowing  the issuance or incurrence, pursuant to this Agreement, the other Facility Documents or otherwise,  of new loans or other Indebtedness having any priority over any of the Obligations in respect of  payments, Liens, Collateral or proceeds of Collateral, in exchange for any Obligations or  otherwise), or (B) advance the date fixed for, or increase, any scheduled installment of principal  due to any of the Lenders under any Facility Document.  (c) No amendment, restatement, supplement, modification, change, termination,  waiver or consent of any provision of any Facility Document shall, unless in writing and signed by  Agent, (i) amend, restate, supplemented, modify, change, terminate or waive (or consent to any  diversion from) any provision of this Section 9.5(c) or of any other provision of this Agreement or  any other Facility Document that, by its terms, expressly requires the approval or concurrence of  Agent, (ii) reduce the amount or postpone the due date of or waives any fees, expenses and/or  indemnities payable to Agent hereunder or under the other Facility Documents or (iii) or otherwise  affect the rights, benefits, liabilities or duties of Agent under this Agreement or any other Facility  Document. Notwithstanding anything to the contrary in Section 9.5(b), Agent and the Borrower  may amend or modify this Agreement and any other Facility Document to (A) cure any ambiguity,  omission, defect or inconsistency therein, and (B) grant a new Lien to Agent, for the benefit of the  Secured Parties, extend an existing Lien over additional property for the benefit of the Secured  Parties or join additional Persons as Loan Parties.  

 

 76  US_153737865v8  Section 9.6 Severability. If any provision of this Agreement or any of the other Facility Documents  shall be invalid, illegal or unenforceable in any respect under any law, the validity, legality and  enforceability of the remaining provisions hereof or thereof shall not in any way be affected or impaired  thereby. The Parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable  provisions with valid provisions the economic effect of which comes as close as possible to that of the  invalid, illegal or unenforceable provision.  Section 9.7 Counterparts. This Agreement may be executed in several counterparts, and by each Party  on separate counterparts, each of which and any photocopies, facsimile copies and other electronic methods  of transmission thereof shall be deemed an original, but all of which together shall constitute one and the  same agreement.  Section 9.8 Survival.  (a) All representations and warranties made hereunder and in the other Facility  Documents, and in any document, certificate or statement delivered pursuant thereto or in  connection therewith shall survive the execution and delivery of this Agreement and the other  Facility Documents and the making of the Loan hereunder or thereunder regardless of any  investigation made by any such other Party or on its behalf. Such representations and warranties  have been or will be relied upon by the Secured Parties, regardless of any investigation made by  any Secured Party or on their behalf and notwithstanding that any Secured Party may have had  notice or knowledge of any Default or Event of Default at the time of the making of any Loan, and  shall continue in full force and effect (and shall continue to be made in accordance with the terms  of the applicable Facility Documents) as long as any Loan or any other Obligation hereunder shall  remain unpaid or unsatisfied, in each case, other than contingent obligations not due and owing.  (b) Notwithstanding anything to the contrary in the Facility Documents, all of the  provisions (including the making of the representations and warranties) herein or in any other  Facility Document that relate to the Warrants, the Warrant Shares, the Conversion Shares or any  securities Laws or that relate to the Reporting Period shall survive the payment in full of the Loans  and any other Obligations, and shall continue at all times to be made, until the end of the Reporting  Period, but all other representations, warranties, affirmative and negative covenants, events of  default, fees, penalties and other provisions not expressly surviving pursuant to this Section 9.8  shall terminate upon the payment in full of the Obligations (for the avoidance of doubt, not  including unasserted contingent indemnification obligations or any Obligations in respect of the  Facility Documents, Warrant Shares or Conversion Shares).  Section 9.9 No Waiver; Remedies Cumulative. No failure or delay on the part of the Agent or any  Lender in the exercise of any power, right or privilege hereunder or under any other Facility Document  shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence  therein, nor shall any single or partial exercise of any such power, right or privilege preclude other or further  exercise thereof or of any other power, right or privilege. All rights and remedies existing under this  Agreement and the other Facility Documents are cumulative to, and not exclusive of, any rights or remedies  otherwise available.  Section 9.10 Indemnity.  (a) The Loan Parties shall, at all times, indemnify and hold harmless (the “Indemnity”)  Agent, each Lender, each other Secured Party, each of their respective Affiliates, and each of their  respective directors, partners, officers, employees, agents, counsel and advisors (each, an  “Indemnified Person”) in connection with any losses, claims (including the reasonable attorneys’  

 

 77  US_153737865v8  fees incurred in defending against such claims in a proceeding or otherwise), damages, liabilities,  penalties or other expenses arising out of, or relating to, the Facility Documents, the extension of  credit under the Facility Documents or the Loans or the other Obligations, the use or intended use  of the Loan or the other Obligations  and the issuance of the Securities (including any transactions  or assets financed in whole or in part, directly or indirectly, therewith), any disclosure made  pursuant to Section 6.17, or the status of a Lender or other holder of Securities as an investor in any  Loan Party, that an Indemnified Person may incur or to which an Indemnified Person may become  subject, but excluding Taxes other than Taxes that represent losses, claims, damages, liabilities or  expenses in respect of a non-Tax claim (each, a “Loss”). The Indemnity shall not be available to  any Indemnified Person to the extent that a court or arbitral tribunal of competent jurisdiction issues  a final and non-appealable judgment that such Loss resulted from the gross negligence, bad faith  or willful misconduct of such Indemnified Person or the material breach of the funding obligations  of such Indemnified Person (not as a result of any action or inaction by any Loan Party or any of  its Affiliates). The Indemnity is independent of, and in addition to, any other agreement of any  Party under the Registration Rights Agreement or any other Facility Document to indemnify or any  amount to the any of the Secured Parties, and any exclusion of any obligation to pay any amount  under this Section 9.10(a) shall not affect the requirement to pay such amount under any other  section or provision hereof or under any other agreement, instrument or document.  (b) An Indemnified Person shall have the right to retain its own legal counsel with the  fees, costs and expenses of such legal counsel and of such Indemnified Person to be paid by the  Loan Parties. The indemnification required by this Section 9.10 shall be made and paid by such  Loan Parties as Losses are incurred within ten (10) Business Days of written demand by such  Indemnified Person.  (c) No settlement of (or any other agreement or arrangement related to) any Loss shall  be entered into by any Loan Party or any of its Subsidiaries without the prior written consent of the  applicable Indemnified Person.  (d) No Loan Party shall, nor shall it permit any of its Subsidiaries to, assert, and each  Loan Party on behalf of itself and its Subsidiaries, hereby waives, any claim, loss or amount against  any Indemnified Person with respect to any special, indirect, consequential or punitive damages (as  opposed to direct or actual damages) arising out of, in connection with, or as a result of, this  Agreement or any of the other Facility Documents or any undertaking or transaction contemplated  hereby or thereby. No Indemnified Person shall be liable for any damages arising from the use by  unintended recipients of any information or other materials distributed by it through  telecommunications, electronic or other information transmission systems in connection with this  Agreement or any of the other Facility Documents or the transactions contemplated hereby or  thereby.  Section 9.11 No Usury. Notwithstanding any other provision herein, the aggregate interest rate charged  with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the  nature of interest under applicable law shall not exceed the highest rate permitted by Applicable Law. If the  rate of interest (determined without regard to the preceding sentence) under this Agreement at any time  exceeds the highest lawful rate permitted by Applicable Law, the outstanding amount of the Loans made  hereunder shall bear interest at the highest lawful rate permitted by Applicable Law until the total amount  of interest due hereunder equals the amount of interest that would have been due hereunder if the stated  rates of interest set forth in this Agreement had at all times been in effect. Accordingly, if any Lender  contracts for, charges, or receives any consideration that constitutes interest in excess of the highest lawful  rate permitted by Applicable Law, then any such excess shall be cancelled automatically and, if previously  

 

 78  US_153737865v8  paid, shall at such Lender’s option be applied to the outstanding amount of the Loans made hereunder or  be refunded to the Loan Parties.  Section 9.12 Specific Performance. The Loan Parties agree (and agree on behalf of their Subsidiaries)  that irreparable damage, for which monetary relief, even if available, would not be an adequate remedy,  would occur in the event that any provision of the Facility Documents is not performed in accordance with  its specific terms or is otherwise breached. In light of the foregoing, the Loan Parties hereby agree that the  Secured Parties shall be entitled to an injunction, specific performance or other equitable relief to prevent  breaches of the Facility Documents and to enforce specifically the terms and provisions hereof and thereof  without proof of damages or otherwise and without any obligation to post a bond or other security.  Section 9.13 Agent.  (a) Each Lender hereby irrevocably appoints Deerfield Partners, L.P. (together with  any successor Agent appointed by Deerfield Partners, L.P. or any successor Agent that was  appointed by the Required Lenders), as Agent hereunder and under the other Facility Documents  and authorizes Agent to (i) execute and deliver the Facility Documents to which it is a party and  accept delivery thereof on its behalf from any Loan Party, (ii) take such other actions on its behalf  and to exercise all rights, powers and remedies and perform the duties as are expressly delegated  to Agent under the Facility Documents and (iii) exercise such powers as are reasonably incidental  thereto. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or  in any other Facility Document, Agent shall not have any duty or responsibility except those  expressly set forth herein; nor shall Agent have or be deemed to have any fiduciary relationship  with any Lender or participant, and no implied covenants, functions, responsibilities, duties,  obligations or liabilities shall be read into this Agreement or any other Facility Document or  otherwise exist against Agent. Without limiting the generality of the foregoing sentence, the use of  the term “agent” herein and in other Facility Documents with reference to Agent is not intended to  connote any fiduciary or other implied (or express) obligations arising under agency doctrine of  any Applicable Law. Instead, such term is used merely as a matter of market custom, and is intended  to create or reflect only an administrative relationship between independent contracting parties.  Each Secured Party further consents to and authorizes Agent’s execution and delivery of any  additional intercreditor or subordination agreements from time to time as contemplated by the terms  hereof on behalf of such Secured Party and agrees to be bound by the terms and provisions thereof,  including any purchase option contained therein. The provisions of this Section 9.13 are solely for  the benefit of Agent and the Lenders and none of the Borrowers or the other Loan Parties shall have  any rights as a third party beneficiary of any of the provisions in this Section 9.13. In performing  its functions and duties under this Agreement and the other Facility Documents, Agent shall act  solely as agent of Lenders and does not assume and shall not be deemed to have assumed any  obligation toward or relationship of agency or trust with or for any Borrower or any other Loan  Party. Agent may perform any of its duties hereunder, or under the Facility Documents, by or  through its agents, subagents, servicers, trustees, investment managers or employees and any such  Person shall benefit from this Section 9.13 to the extent provided by Agent. Agent shall have the  same rights and powers under the Facility Documents as any other Lender and may exercise or  refrain from exercising the same as though it were not Agent, and Agent and its Affiliates may lend  money to, invest in and generally engage in any kind of business with each Loan Party, Affiliate of  any Loan Party as if it were not Agent hereunder. The duties of Agent shall be mechanical and  administrative in nature. Agent shall not have by reason of this Agreement or the other Facility  Documents a fiduciary relationship in respect of any Lender. Nothing in this Agreement or any of  the other Facility Documents is intended to or shall be construed to impose upon Agent any  obligations in respect of this Agreement or any of the other Facility Documents except as expressly  set forth herein or therein.  

 

 79  US_153737865v8  (b) Agent may execute any of its duties under this Agreement or any other Facility  Document by or through agents, subagents, employees or attorneys in fact, and shall be entitled to  advice of counsel and other consultants or experts concerning all matters pertaining to such duties.  Agent shall not be responsible for the negligence or misconduct of any agent, subagent or attorney  in fact that it selects in the absence of gross negligence or willful misconduct as determined by a  final, non-appealable judgment of a court of competent jurisdiction.  (c)  Neither Agent nor any of its directors, officers, employees, attorneys, advisors,  representatives or agents shall (i) be liable for any action taken or omitted to be taken by any of  them under or in connection with this Agreement or any other Facility Document or the  Transactions or the transactions contemplated hereby or thereby (except to the extent resulting from  its own gross negligence or willful misconduct in connection with its duties expressly set forth  herein as determined by a final, non-appealable judgment of a court of competent jurisdiction), or  (ii) be responsible in any manner to any Lender or participant for any recital, statement,  representation or warranty made by any Loan Party or Affiliate of any Loan Party, or any officer  thereof, contained in this Agreement or in any other Facility Document, or in any certificate, report,  statement or other document referred to or provided for in, or received by Agent under or in  connection with, this Agreement or any other Facility Document, or the validity, effectiveness,  genuineness, enforceability or sufficiency of this Agreement or any other Facility Document (or  the creation, perfection or priority of any Lien or security interest therein), or for any failure of any  Loan Party or any other party to any Facility Document to perform its obligations (including the  Obligations) hereunder or thereunder. Agent shall not be under any obligation to any Lender to  ascertain or to inquire as to the observance or performance of any of the agreements contained in,  or conditions of, this Agreement or any other Facility Document, or to inspect the properties, books  or records of any Loan Party or any Loan Party’s Affiliates.  (d) Agent shall be entitled to rely, and shall be fully protected in relying, upon any  communication believed by it to be genuine and correct and to have been signed, sent or made by  the proper Person or Persons, and upon advice and statements of legal counsel (including counsel  to any Loan Party), independent accountants and other experts selected by Agent. Agent shall be  fully justified in failing or refusing to take any action under this Agreement or any other Facility  Document unless it shall first receive such advice or concurrence of the Required Lenders as it  deems appropriate and, if it so requests, confirmation from the Lenders of their obligation to  indemnify Agent against any and all liabilities and expenses (including any fees and expenses of  counsel to Agent) that may be incurred by it by reason of taking or continuing to take any such  action. Agent shall in all cases be fully protected in acting, or in refraining from acting, under this  Agreement or any other Facility Document in accordance with a request or consent of the Required  Lenders and such request and any action taken or failure to act pursuant thereto shall be binding  upon each Lender.  (e) Agent shall not be deemed to have knowledge or notice of the occurrence of any  Event of Default or Default, unless Agent shall have received written notice from a Lender or any  Loan Party referring to this Agreement and the other Facility Documents, describing such Event of  Default or Default and stating that such notice is a “notice of default.” Agent shall take such action  with respect to such Event of Default or Default as the Required Lenders may direct; provided that,  unless and until Agent has received any such request, Agent shall not take any such action, or  refrain from taking any such action, with respect to such Event of Default or Default.  (f) Each Lender acknowledges that Agent has not made any representation or  warranty to it, and that no act by Agent hereafter taken, including any consent and acceptance of  any assignment or review of the affairs of the Loan Parties or any of their Subsidiaries, shall be  

 

 80  US_153737865v8  deemed to constitute any representation or warranty by Agent to any Lender as to any matter,  including whether Agent has disclosed material information in its possession. Each Lender  represents to Agent that it has, independently and without reliance upon Agent and based on such  documents and information as it has deemed appropriate, made its own appraisal of, and  investigation into, the business, prospects, operations, property, financial and other condition and  creditworthiness of Borrower and the other Loan Parties, and made its own decision to enter into  this Agreement and the other Facility Documents and to extend credit to Borrower hereunder and  under the other Facility Documents. Each Lender also represents that it will, independently and  without reliance upon Agent and based on such documents and information as it shall deem  appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking  or not taking action under this Agreement and the other Facility Documents, and to make such  investigations as it deems necessary or appropriate to inform itself as to the business, prospects,  operations, property, financial and other condition and creditworthiness of Borrower and the other  Loan Parties. Except for notices, reports and other documents expressly herein required to be  furnished to the Lenders by Agent, Agent shall not have any duty or responsibility to provide any  Lender with any credit or other information concerning the business, prospects, operations,  property, financial or other condition or creditworthiness of Borrower or any other Loan Party that  may come into the possession of Agent.  (g) Other than with respect to the matters described in clause (i) below, which shall be  governed by such clause, whether or not the transactions contemplated hereby are consummated,  each Lender shall severally indemnify upon demand Agent and its directors, officers, partners,  employees, attorneys, advisors, representatives and agents (to the extent not reimbursed by or on  behalf of any Loan Party and without limiting the obligation of the Loan Parties to do so), according  to its applicable pro rata share, from and against any and all losses, claims (including the reasonable  attorneys’ fees incurred in defending against such claims), damages, liabilities, penalties or other  expenses arising out of, or relating to, any of Agent’s duties, responsibilities or actions set forth in  or that taken pursuant to the Facility Documents; provided that no Lender shall be liable for any  payment to any such Person of any portion of the foregoing to the extent determined by a final,  non-appealable judgment by a court of competent jurisdiction to have resulted from the applicable  Person’s gross negligence or willful misconduct. No action taken in accordance with the directions  of the Required Lenders shall be deemed to constitute gross negligence or willful misconduct for  purposes of this Section 9.13(g). Without limitation of the foregoing, each Lender shall reimburse  Agent upon demand for such Lender’s ratable share of any costs or out of pocket expenses incurred  by Agent in connection with the preparation, execution, delivery, administration, modification,  amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or  legal advice in respect of rights or responsibilities under, this Agreement, any other Facility  Document or any document contemplated by or referred to herein or therein, to the extent that  Agent is not reimbursed for such fees, costs and expenses by or on behalf of the Loan Parties. The  undertaking in this Section 9.13(g) shall survive repayment of the Loans and the other Obligations,  any foreclosure under, or modification, release or discharge of, any or all of the Facility Documents,  termination of this Agreement or the other Facility Documents and the resignation or replacement  of Agent.  (h) Agent may resign as Agent upon thirty (30) days’ notice to the Borrower and the  Lenders, and the Required Lenders have the right, at their sole election, to remove the Person  serving as Agent upon ten (10) days’ notice to Agent (or immediately upon any material breach of  Agent of its obligations under the Facility Documents). If Agent resigns under this Agreement or  the Required Lenders remove the Person serving as Agent, the Required Lenders shall appoint from  among the Lenders a successor Agent for such successor Agent and the Lenders. If no successor  Agent is appointed prior to the effective date of the resignation or removal of Agent, Agent may  

 

 81  US_153737865v8  appoint, after consulting with the Lenders, a successor Agent from among the Lenders. Upon the  acceptance of its appointment as successor Agent hereunder, such successor Agent shall succeed  to all the rights, powers and duties of the retiring or removed Agent, and the term “Agent” shall  mean such successor Agent, and the retiring or removed Agent’s appointment, powers and duties  as Agent shall be immediately and automatically terminated at such time. After any retiring Agent’s  resignation or removal hereunder as Agent, the provisions of this Section 9.13 shall inure to its  benefit (in its capacity as Agent) as to any actions taken or omitted to be taken by it while it was  Agent under this Agreement and the other Facility Documents. If no successor Agent has accepted  appointment as Agent by the date that is thirty (30) days following a retiring Agent’s notice of  resignation (or at the time of removal of a Person as Agent), the retiring Agent’s resignation or  removal shall nevertheless thereupon become effective, and the Lenders shall perform all of the  duties of Agent hereunder until such time, if any, as the Required Lenders appoint a successor  Agent as provided for above.  (i) Each Lender further agrees to indemnify Agent, its Affiliates and each of its and  their employees, advisors, attorneys, representatives and agents (to the extent not reimbursed by  any Loan Party), severally and ratably, from and against Liabilities (including Taxes, interests and  penalties imposed for not properly withholding or backup withholding on payments made to or for  the account of any Lender) that may be imposed on, incurred by or asserted against Agent, its  Affiliates or any of its or their employees, advisors, attorneys, representatives or agents in any  matter relating to or arising out of, in connection with or as a result of any Facility Document or  any other act, event or transaction related, contemplated in or attendant to any such document, or,  in each case, any action taken or omitted to be taken by Agent, its Affiliates or any of its or their  employees, advisors, attorneys, representatives or agents under or with respect to any of the  foregoing.  (j) The Lenders hereby irrevocably authorize Agent, based upon the written  instruction of the Required Lenders, to (a) credit bid and in such manner purchase (either directly  or through one or more acquisition vehicles) all or any portion of the Collateral at any sale thereof  conducted under the provisions of the Bankruptcy Code, including under Section 363 of the  Bankruptcy Code or any similar laws in any other jurisdictions to which a Loan Party is subject, or  (b) credit bid and in such manner purchase (either directly or through one or more acquisition  vehicles) all or any portion of the Collateral at any other sale or foreclosure conducted by (or with  the consent or at the direction of) Agent (whether by judicial action or otherwise) in accordance  with Applicable Law. In connection with any such credit bid and purchase, the Obligations owed  to the Lenders shall be entitled to be, and shall be, credit bid on a ratable basis (with Obligations  with respect to contingent or unliquidated claims being estimated for such purpose if the fixing or  liquidation thereof would not unduly delay the ability of Agent to credit bid and purchase at such  sale or other disposition of the Collateral and, if such claims cannot be estimated without unduly  delaying the ability of Agent to credit bid, then such claims shall be disregarded, not credit bid, and  not entitled to any interest in the asset or assets purchased by means of such credit bid) and the  Lenders whose Obligations are credit bid shall be entitled to receive interests (ratably based upon  the proportion of their Obligations credit bid in relation to the aggregate amount of Obligations so  credit bid) in the asset or assets so purchased (or in the Stock of the acquisition vehicle or vehicles  that are used to consummate such purchase). Except as provided above and otherwise expressly  provided for herein or in the other Facility Documents, Agent will not execute nor deliver a release  of any Lien on any Collateral. Upon request by Agent at any time, the Lenders will confirm in  writing Agent’s authority to release any such Liens on particular types or items of Collateral  pursuant to, and in accordance with, this Section 9.13(j). Each Secured Party whose Obligations  are credit bid under this Section 9.13(j) shall be entitled to receive interests in the Collateral or any  other asset acquired in connection with such credit bid (or in the Stock of the acquisition vehicle or  

 

 82  US_153737865v8  vehicles that are used to consummate such acquisition) on a ratable basis in accordance with the  percentage obtained by dividing (y) the amount of Obligations of such Secured Party that were  credit bid in such credit bid by (z) the aggregate amount of all Obligations that were credit bid in  such credit bid.  Section 9.14 USA Patriot Act. Each Lender that is subject to the USA Patriot Act and Agent (for itself  and not on behalf of any Lender) hereby notifies the Loan Parties that pursuant to the requirements of the  USA Patriot Act, it is required to obtain, verify and record information that identifies each Loan Party,  which information includes the name and address of each Loan Party and other information that will allow  such Lender or Agent to identify each Loan Party in accordance with the USA Patriot Act.  Section 9.15 Independent Nature of Secured Parties. The obligations of each Secured Party under the  Facility Documents are several and not joint with the obligations of any other Secured Party, and no Secured  Party shall be responsible in any way for the performance of the obligations of any other Secured Party  under the Facility Documents. Each Secured Party shall be responsible only for its own representations,  warranties, agreements and covenants under the Facility Documents. The decision of each Secured Party  to acquire the Securities pursuant to the Facility Documents has been made by such Secured Party  independently of any other Secured Party and independently of any information, materials, statements or  opinions as to the business, affairs, operations, assets, properties, liabilities, results of operations, condition  (financial or otherwise) or prospects of the Borrower or any of its Subsidiaries that may have been made or  given by any other Secured Party or by any agent, attorney, advisor, representative or employee of any  other Secured Party, and no Secured Party or any of its agents, attorneys, advisors, representatives or  employees shall have any liability to any other Secured Party (or any other Person) relating to or arising  from any such information, materials, statements or opinions. Nothing contained in the Facility Documents,  and no action taken by any Secured Party pursuant hereto or thereto (including a Secured Party’s acquisition  of Obligations, Notes, Warrants or any other Securities at the same time as any other Secured Party), shall  be deemed to constitute the Secured Parties as, and each of the Loan Parties acknowledges and agrees that  the Secured Parties do not thereby constitute, a partnership, an association, a joint venture or any other kind  of entity, or create a presumption that the Secured Parties are in any way acting in concert or as a group  with respect to such Obligations or the transactions contemplated by any of the Facility Documents, and  none of the Loan Parties shall assert any contrary position.  Section 9.16 No Fiduciary Relationship. Each of the Loan Parties acknowledges and agrees that (a)  each Secured Party is acting at arm’s length from the Loan Parties with respect to this Agreement and the  other Facility Documents and the transactions contemplated hereby and thereby; (b) no Secured Party will,  by virtue of this Agreement or any of the other Facility Documents or any transaction contemplated hereby  or thereby, be (nor, to the Loan Parties’ knowledge, otherwise is) an Affiliate of, or have any agency,  tenancy or joint venture relationship with, any Loan Party; (c) no Secured Party has acted, or is or will be  acting, as a financial advisor to, or fiduciary (or in any similar capacity) of, or has any fiduciary or similar  duty to, any Loan Party with respect to, or in connection with, this Agreement and the other Facility  Documents and the transactions contemplated hereby and thereby, and each of the Loan Parties agreed not  to assert, and hereby waives, to the fullest extent permitted under Applicable Law, any claim that any  Secured Party has any fiduciary duty to such Loan Party; (d) any advice given by a Secured Party or any of  its representatives or agents in connection with this Agreement and the other Facility Documents and the  transactions contemplated hereby and thereby is merely incidental to such Secured Party’s performance of  its obligations hereunder and thereunder (including, in the case of each of the Lenders, its acquisition of the  Securities); and (e) the Loan Parties’ decision to enter into the Facility Documents has been based solely  on the independent evaluation by the Loan Parties and their representatives.  Section 9.17 Joint and Several. The obligations of the Loan Parties hereunder and under the other  Facility Documents are joint and several. Without limiting the generality of the foregoing, reference is  

 

 83  US_153737865v8  hereby made to Section 2 of the Security Agreement, to which the obligations of the Loan Parties are  subject.  Section 9.18 No Third Parties Benefited. This Agreement is made and entered into for the sole  protection and legal benefit of the Loan Parties and the Secured Parties and their successors and permitted  assigns, and no other Person shall be a direct or indirect legal beneficiary of, or have any direct or indirect  cause of action or claim in connection with, this Agreement or any of the other Facility Documents. No  Secured Party shall have any obligation to any Person not a party to this Agreement or the other Facility  Documents.  Section 9.19 Binding Effect. This Agreement shall become effective when it shall have been executed  by each of the Loan Parties party hereto, each Lender party hereto and Agent and such executed counterparts  have been delivered to Agent and the Lenders pursuant to the terms of this Agreement.  Section 9.20 Marshaling; Payments Set Aside. No Secured Party shall be under any obligation to  marshal any property in favor of any Loan Party or any other Person or against or in payment of any  Obligation. To the extent that any Secured Party receives a payment from the Borrower, from any other  Loan Party, from the proceeds of the Collateral, from the exercise of its rights of setoff, from any  enforcement action or otherwise, and such payment is subsequently, in whole or in part, invalidated,  declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other  party, then to the extent of such recovery, the obligation or part thereof originally intended to be satisfied,  and all Liens, rights and remedies therefor, shall be revived and continued in full force and effect as if such  payment had not occurred.  Section 9.21 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on  the part of any Secured Party, any right, remedy, power or privilege under any Facility Document, shall  operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege  hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power  or privilege. No course of dealing between any Loan Party, any Affiliate of any Loan Party or any Secured  Party shall be effective to amend, modify or discharge any provision of any of the Facility Documents.  Section 9.22 Right of Setoff. Each Secured Party and each of its Affiliates is hereby authorized, without  notice or demand (each of which is hereby waived by each Loan Party), at any time and from time to time  during the continuance of any Event of Default and to the fullest extent permitted by Applicable Law, to  set off and apply any and all deposits (whether general or special, time or demand, provisional or final) at  any time held and other Indebtedness, claims or other obligations at any time owing by any Secured Party  or any of its Affiliates to or for the credit or the account of the Borrower or any other Loan Party against  any Obligation of any Loan Party now or hereafter existing, whether or not any demand was made under  any Facility Document with respect to such Obligation and even though such Obligation may be unmatured.  No Lender shall exercise any such right of setoff without the prior consent of the Required Lenders. Each  Secured Party agrees promptly to notify Agent after any such setoff and application made by such Secured  Party or its Affiliates; provided, however, that the failure to give such notice shall not affect the validity of  such setoff and application. The rights under this Section 9.22 are in addition to any other rights and  remedies (including other rights of setoff) that any Secured Party or any of its Affiliates may have.  Section 9.23 Sharing of Payments, Etc. If any Lender, directly or through any of its Affiliates, obtains  any payment of any Obligation of any Loan Party (whether voluntary, involuntary or through the exercise  of any right of setoff or the receipt of any Collateral or “proceeds” (as defined under the applicable UCC)  of Collateral) (and other than pursuant to Section 9.4) and such payment exceeds the amount such Lender  would have been entitled to receive if all payments had gone to, and been distributed in accordance with  the provisions of the Facility Documents, such Lender shall purchase for cash from other Lenders such  

 

 84  US_153737865v8  participations in their Obligations as necessary for such Lender to share such excess payment with such  Lenders to ensure such payment is applied as though it had been applied in accordance with this Agreement;  provided, however, that (i) if such payment is rescinded or otherwise recovered from such Lender in whole  or in part, such purchase shall be rescinded and the purchase price therefor shall be returned to such Lender  without interest and (ii) such Lender shall, to the fullest extent permitted by Applicable Law, be able to  exercise all its rights of payment (including the right of setoff) with respect to such participation as fully as  if such Lender were the direct creditor of the applicable Loan Party in the amount of such participation.  Section 9.24 Certain Securities Matters. Each of the Loan Parties acknowledges and agrees that none  of the Secured Parties or holders of the Securities has been asked to agree, nor has any Secured Party agreed,  to desist from purchasing or selling, long and/or short, Stock or other securities of the Borrower, or  “derivative” securities or Stock based on Stock or other securities issued by the Borrower or to hold the  Securities for any specified term; and no Secured Party nor holder of Securities shall be deemed to have  any affiliation with or control over any arm’s length counterparty in any “derivative” transaction. Each of  the Loan Parties further acknowledges and agrees that (a) one or more Secured Parties or holders of  Securities may engage in hedging and/or trading activities at various times during the period that the  Securities are outstanding, (b) such hedging and/or trading activities, if any, can reduce the value of the  Common Stock or other Stock held by the existing holders of Common Stock or other Stock of the  Borrower, both at and after the time the hedging and/or trading activities are being conducted; (c) any such  hedging and/or trading activities shall  not constitute a breach of any Facility Document or affect any of the  rights of any Secured Party or holder of Securities under any Facility Document; (d) the issuance of any  Warrant Shares or any Conversion Shares may result in dilution of the outstanding shares of Common  Stock, which dilution may be substantial under certain market conditions; and (e) the  Obligations, including  the Borrower’s obligation to issue the Warrant Shares upon exercise of the Warrants and the Conversion  Shares upon conversion of the Notes, are unconditional and absolute and not subject to any right of set off,  counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim any Loan Party  may have against any of the Secured Parties and regardless of the dilutive effect that such issuance may  have on the ownership of the other stockholders of the Borrower.  Section 9.25 Tax Treatment.  Under current U.S. federal income tax law, neither the Loan Parties nor  the Secured Parties shall treat any Loan as a contingent payment debt instrument within the meaning of  Treasury Regulation § 1.1275-4(a) (or comparable provision of any state or local Tax law), or as anything  other than debt for U.S. federal (and applicable state and local) income tax purposes, in each case unless  otherwise required pursuant to a “determination” as defined in Section 1313(a) of the Code.  [SIGNATURE PAGE FOLLOWS]  

 

  [Signature Page to Facility Agreement]    IN WITNESS WHEREOF, the Parties have caused this Agreement, including the jury waiver  contained herein, to be duly executed as of the first day written above.  BORROWER:    THE ONCOLOGY INSTITUTE, INC.,  a Delaware corporation       By: /s/ Brad Hively     Name:  Brad Hively  Title:  Chief Executive Officer      OTHER LOAN PARTIES:    THE ONCOLOGY INSTITUTE, LLC,  a Delaware limited liability company       By: /s/ Brad Hively     Name:  Brad Hively   Title:  President      TOI ACQUISITION, LLC,  a Delaware limited liability company       By: /s/ Hilda Agajanian     Name:  Hilda Agajanian  Title:  Authorized Person      TOI MANAGEMENT, LLC,  a Delaware limited liability company      By: /s/ Brad Hively     Name:  Brad Hively  Title:  President           

 

 2  US_153737865v8    LENDERS:    DEERFIELD PARTNERS, L.P.  By: Deerfield Mgmt, L.P., its General Partner  By: J. E. Flynn Capital, LLC, its General Partner    By: /s/ David Clark  ____________________________________  Name: David Clark  Title: Authorized Signatory      DEERFIELD PRIVATE DESIGN FUND V, L.P.  By: Deerfield Mgmt V, L.P., its General Partner  By: J. E. Flynn Capital V, LLC, its General Partner    By: /s/ David Clark  ____________________________________  Name: David Clark  Title: Authorized Signatory      DEERFIELD PRIVATE DESIGN FUND IV, L.P.  By: Deerfield Mgmt IV, L.P., its General Partner  By: J. E. Flynn Capital IV, LLC, its General Partner    By: /s/ David Clark  ____________________________________  Name: David Clark  Title: Authorized Signatory            AGENT:    DEERFIELD PARTNERS, L.P.  By: Deerfield Mgmt, L.P., its General Partner  By: J. E. Flynn Capital, LLC, its General Partner    By: /s/ David Clark  ____________________________________  Name: David Clark  Title: Authorized Signatory      

 

    US_153737865v8    ANNEX A  CONVERTIBLE LOAN AMOUNT  Lender      Convertible Loan Amount  % of Total  Convertible Loan  Amount  Deerfield Partners, L.P.*  $50,000,000.00  45.4545%  Deerfield Private Design Fund V, L.P.*  $50,000,000.00  45.4545%  Deerfield Private Design Fund IV, L.P.*  $10,000,000.00  9.0910%  Total  $110,000,000.00  100.0000%       *Deerfield Lenderex_409223.htm

 

Exhibit 10.4

 

 

LOAN AND SECURITY AGREEMENT

 

Dated as of May 6, 2022

 

 

NLCP Operating Partnership LP, 

 

The Other Borrowers Party Hereto

 

The Other Loan Parties Party Hereto

 

 

XXXXXXXXXXXXXXX,

 

as Agent

 

 

XXXXXXXXXXXXXXX,

 

as Sole Lead Arranger and Sole Bookrunner

 

 

 

 

 

Table of Contents

 

	 	 	Page
	 	 	 
	SECTION 1. 	DEFINITIONS; RULES OF CONSTRUCTION	1
	 	1.1	Definitions	1
	 	1.2	Accounting Terms	22
	 	1.3	Uniform Commercial Code	22
	 	1.4	Certain Matters of Construction	22
	SECTION 2. 	CREDIT FACILITIES	23
	 	2.1	Revolver Commitment	23
	 	2.2	[Reserved]	24
	 	2.3	[Reserved]	24
	SECTION 3.	INTEREST, FEES AND CHARGES	24
	 	3.1	Interest	24
	 	3.2	Fees	25
	 	3.3	Computation of Interest, Fees, Yield Protection	25
	 	3.4	Reimbursement Obligations	25
	 	3.5	Illegality	25
	 	3.6	[Reserved]	26
	 	3.7	Increased Costs; Capital Adequacy	26
	 	3.8	Mitigation	26
	 	3.9	[Reserved]	27
	 	3.10	Maximum Interest	27
	SECTION 4. 	LOAN ADMINISTRATION	27
	 	4.1	Manner of Borrowing and Funding Revolver Loans	27
	 	4.2	Defaulting Lender	28
	 	4.3	[Reserved]	29
	 	4.4	Borrower Agent	29
	 	4.5	One Obligation	29
	 	4.6	Effect of Termination	29
	SECTION 5.	PAYMENTS	29
	 	5.1	General Payment Provisions	29
	 	5.2	Repayment of Revolver Loans	29
	 	5.3	Loan to Value Ratio; Remargining	30
	 	5.4	Payment of Other Obligations	30
	 	5.5	Marshaling; Payments Set Aside	30
	 	5.6	Application and Allocation of Payments	31
	 	5.7	[Reserved]	31
	 	5.8	Account Stated	31
	 	5.9	Taxes	32
	 	5.10	Lender Tax Information	33
	 	5.11	Nature and Extent of Each Borrower’s Liability	35
	SECTION 6.	CONDITIONS PRECEDENT	37
	 	6.1	Conditions to Closing and Boarding	37

 

 

 

 

Table of Contents

(continued)

 

	 	 	 	Page
	 	 	 	 
	 	6.2	Conditions Precedent to the Initial Advance	38
	 	6.3	Conditions Precedent to All Credit Extensions	39
	SECTION 7. 	COLLATERAL	39
	 	7.1	Grant of Security Interest	39
	 	7.2	Certain After-Acquired Collateral	39
	 	7.3	Limitations	39
	 	7.4	Further Assurances	40
	SECTION 8.	COLLATERAL ADMINISTRATION	40
	 	8.1	Borrowing Base Reports	40
	 	8.2	Deposit Accounts	40
	 	8.3	Eligible Leasing Real Property	40
	 	8.4	Changes in Borrowing Base Assets	40
	 	8.5	Security Instrument	42
	 	8.6	General Provisions	42
	 	8.7	Power of Attorney	43
	SECTION 9.	REPRESENTATIONS AND WARRANTIES	43
	 	9.1	General Representations and Warranties	43
	 	9.2	Complete Disclosure	47
	SECTION 10. 	COVENANTS AND CONTINUING AGREEMENTS	47
	 	10.1	Affirmative Covenants	47
	 	10.2	Negative Covenants	52
	 	10.3	Financial Covenants	54
	SECTION 11.	EVENTS OF DEFAULT; REMEDIES ON DEFAULT	54
	 	11.1	Events of Default	54
	 	11.2	Remedies upon Default	56
	 	11.3	[Reserved]	56
	 	11.4	Setoff	57
	 	11.5	Remedies Cumulative; No Waiver	57
	 	11.6	Springing Liens	57
	SECTION 12.	AGENT	57
	 	12.1	Appointment, Authority and Duties of Agent	57
	 	12.2	Agreements Regarding Collateral and Borrower Materials	58
	 	12.3	Reliance By Agent	59
	 	12.4	Action Upon Default 	59
	 	12.5	Ratable Sharing	59
	 	12.6	Indemnification	59
	 	12.7	Limitation on Responsibilities of Agent	60
	 	12.8	Successor Agent and Co-Agents	60
	 	12.9	Due Diligence and Non-Reliance	61
	 	12.10	Remittance of Payments and Collections	61
	 	12.11	Individual Capacities	61

 

 

 

 

Table of Contents

(continued)

 

	 	 	 	Page
	 	 	 	 
	 	12.12	Titles	61
	 	12.13	[RESERVED]	62
	 	12.14	No Third Party Beneficiaries	62
	SECTION 13.	BENEFIT OF AGREEMENT; ASSIGNMENTS	62
	 	13.1	Successors and Assigns	62
	 	13.2	Participations 	62
	 	13.3	Assignments	63
	 	13.4	Replacement of Certain Lenders	63
	SECTION 14.	MISCELLANEOUS	64
	 	14.1	Consents, Amendments and Waivers	64
	 	14.2	Indemnity	65
	 	14.3	Notices and Communications	65
	 	14.4	Performance of Borrowers’ Obligations	66
	 	14.5	Credit Inquiries	66
	 	14.6	Severability	66
	 	14.7	Cumulative Effect; Conflict of Terms	66
	 	14.8	Counterparts; Execution	66
	 	14.9	Entire Agreement	66
	 	14.10	Relationship with Lenders	66
	 	14.11	No Advisory or Fiduciary Responsibility	67
	 	14.12	Confidentiality	67
	 	14.13	GOVERNING LAW	67
	 	14.14	Consent to Forum; Bail-In of EEA Financial Institutions	68
	 	14.15	Waivers by Borrowers	69
	 	14.16	Patriot Act Notice	69
	 	14.17	NO ORAL AGREEMENT	70
	 	14.18	REIT Reorganization	70
	 	14.19	RIDER	70

 

 

 

 

TABLE OF CONTENTS

 

LIST OF EXHIBITS AND SCHEDULES

 

	Exhibit A	Assignment
	Exhibit B	Assignment Notice
	Exhibit C	Closing Date Borrowing Base Report
	Exhibit D	Restructuring Terms
	Exhibit E	Form of Pledge and Security Agreement
	 	 
	Schedule 1.1	Commitments of Lenders
	Schedule 1.1A	Eligible Leasing Real Properties
	Schedule 8.2	Deposit Accounts
	Schedule 8.3.1	Location of Books and Records
	Schedule 9.1.4	Names and Capital Structure
	Schedule 9.1.15	Restrictive Agreements
	Schedule 9.1.16	Litigation
	Schedule 9.1.20	Labor Contracts
	Schedule 10.2.1	Existing Debt
	Schedule 10.2.2	Existing Liens
	Schedule 10.2.17	Existing Affiliate Transactions
	 	 

 

 

 

 

 

LOAN AND SECURITY AGREEMENT

 

THIS LOAN AND SECURITY AGREEMENT is dated as of May 6, 2022, among NLCP Operating Partnership LP, a Delaware limited partnership (the “Company” and together with any other Person that joins this Agreement as a Borrower in accordance with the terms hereof, are referred to hereinafter each individually as a “Borrower”, and individually and collectively, jointly and severally, as the “Borrowers”), the financial institutions party to this Agreement from time to time as Lenders, and Xxxxxxxxxxxxxxx (“XXX”), as agent for the Lenders (in such capacity, “Agent”).

 

R E C I T A L S:

 

Borrowers have requested that Lenders provide a credit facility to Borrowers to finance their mutual and collective business enterprise. Lenders are willing to provide the credit facility on the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, for valuable consideration hereby acknowledged, the parties agree as follows:

 

SECTION 1.    DEFINITIONS; RULES OF CONSTRUCTION

 

1.1      Definitions. As used herein, the following terms have the meanings set forth below:

 

Acquisition: a transaction or series of transactions resulting in (a) acquisition of a business, division or substantially all assets of a Person; (b) record or beneficial ownership of 50% or more of the Equity Interests of a Person; or (c) merger, consolidation or combination of a Borrower or Subsidiary with another Person.

 

Acquisition Consideration: on any date of determination with respect to any Eligible Leasing Real Property, the purchase consideration for the acquisition and all other payments, directly or indirectly, by any Obligor or any of its Subsidiaries in exchange for, or as part of, or in connection with, such acquisition, whether paid in cash or by exchange of Stock or of properties or otherwise and whether payable at or prior to the consummation of such acquisition or deferred for payment at any future time, whether or not any such future payment is subject to the occurrence of any contingency, and includes any and all payments representing the purchase price and any assumptions of Debt, Contingent Acquisition Consideration and other agreements to make any payment the amount of which is, or the terms of payment of which are, in any respect subject to or contingent upon the revenues, income, cash flow or profits (or the like) of any Person or business.

 

Affiliate: 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. “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 correlative meanings.

 

Agent Indemnitees: Agent and its officers, directors, employees, Affiliates, agents and attorneys.

 

Agent Professionals: attorneys, accountants, appraisers, auditors, business valuation experts, environmental engineers or consultants, turnaround consultants, and other professionals and experts retained by Agent.

 

Allocable Amount: as defined in Section 5.11.3.

 

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Anti-Corruption Laws: means any law of any jurisdiction applicable to any Borrower, Guarantor or their respective Affiliates or Subsidiaries from time to time concerning or relating to bribery or corruption.

 

Anti-Terrorism Laws: any law of any jurisdiction applicable to any Borrower, Guarantor or their respective Affiliates or Subsidiaries relating to terrorism or money laundering, including the Patriot Act.

 

Applicable Law: all laws, rules, regulations and governmental guidelines applicable to the Person or matter in question, including statutory law, common law and equitable principles, as well as provisions of constitutions, treaties, statutes, rules, regulations, orders and decrees of Governmental Authorities.

 

Applicable Margin: one percent (1.00%).

 

Applicable Prepayment Premium: means, as of any date of determination, an amount equal to (i) during the period from the Closing Date up to (but not including) the twelve month anniversary from the Closing Date (the “First Anniversary Date”), 1% times the Revolver Commitment on the date immediately prior to the date of determination and (ii) $0 at all times on and after the First Anniversary Date.

 

Appraised Value: means, with respect to any Eligible Leasing Real Property, the “as is” market value for non-cannabis use (the “As-is Value”) as set forth in the appraisal report of an Approved Appraiser that conducted the appraisal described in such appraisal report (it being understood that if such appraisal report provides a range of values for the As-is Value, the Appraised Value will be the midpoint of the range of As is Values set forth in such appraisal report), which appraisal shall be in compliance with the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended, the rules and regulations adopted pursuant thereto and all other regulatory laws and policies (both regulatory and internal) applicable to the Lenders and otherwise acceptable to the Agent.

 

Approved Appraiser: an independent appraiser selected by Agent in accordance with bank regulatory laws and regulations and Agent’s own internal policies.

 

Approved Fund: any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

 

Asset Disposition: a sale, lease, license, consignment, transfer or other disposition of Collateral, including any disposition in connection with a sale-leaseback transaction or synthetic lease.

 

Assignment: an assignment agreement between a Lender and Eligible Assignee, in the form of Exhibit A or otherwise satisfactory to Agent.

 

Attributable Indebtedness: means, as of any date of determination, in respect of any Capital Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP.

 

Availability: the Borrowing Base minus Revolver Usage.

 

Bail-In Action: 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: 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.

 

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Bankruptcy Code: Title 11 of the United States Code.

 

Base Rate: means the Prime Rate quoted in the Wall Street Journal (Western Edition) which is based on the base rate on corporate loans at large U.S. money center commercial banks, in the event the Wall Street Journal ceases to publish the Prime Rate, the base, reference or other rate then designated by XXX for general commercial loan reference purposes, it being understood that such rate is a reference rate, not necessarily the lowest, established from time to time, which serves as the basis upon which effective interest rates are calculated for loans making reference thereto (and, if any such announced rate is below zero, then the rate determined shall be deemed to be zero). The effective interest rate applicable to Loans shall change on the date of each change in the Wall Street Journal Prime Rate.

 

Beneficial Ownership Certification means a certification regarding beneficial ownership required by the Beneficial Ownership Regulation, which certification shall be substantially in form and substance satisfactory to Lender.

 

Beneficial Ownership Regulation means 31 C.F.R. § 1010.230.

 

Board of Governors: the Board of Governors of the Federal Reserve System.

 

Borrowed Money: with respect to any Obligor, without duplication, its (a) Debt that (i) arises from the lending of money by any Person to such Obligor, (ii) is evidenced by notes, drafts, bonds, debentures, credit documents or similar instruments, (iii) accrues interest or is a type upon which interest charges are customarily paid (excluding trade payables owing in the ordinary course of business), or (iv) was issued or assumed as full or partial payment for Property; (b) capital leases; (c) letter of credit reimbursement obligations; and (d) guaranties of any of the foregoing owing by another Person.

 

Borrower Agent: as defined in Section 4.4.

 

Borrower Materials: Borrowing Base Reports, Compliance Certificates and other information, reports, financial statements and other materials delivered by Borrowers hereunder, as well as other Reports and information provided by Agent to Lenders.

 

Borrowing: a group of Loans that are made or converted together on the same day and have the same interest option.

 

Borrowing Base: (A) Prior to the Borrowing Base Remargining Date, on any date of determination, an amount equal to fifty percent (50%) of the sum of (i) the aggregate Acquisition Consideration plus (ii) Improvement Costs for all Eligible Leasing Real Property and (B) on and after the Borrowing Base Remargining Date, on any date of determination, an amount equal to sixty five percent (65%) of the Appraised Value of all Eligible Leasing Real Property.

 

Borrowing Base Remargining Date: as defined in Section 5.3.

 

Borrowing Base Report: a report of the Borrowing Base, in form and substance satisfactory to Agent.

 

Business Day: any day other than a Saturday or a Sunday or any day on which commercial banks in Los Angeles, California, are authorized or required to close.

 

Capital Expenditures: all liabilities incurred or expenditures made by a Borrower or Subsidiary for the acquisition of fixed assets, or any improvements, replacements, substitutions or additions thereto with a useful life of more than one year and which are capital expenditures as determined in accordance with GAAP.

 

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Capital Lease: any lease required to be capitalized for financial reporting purposes in accordance with GAAP.

 

Cash Collateral: cash delivered to Agent to Cash Collateralize any Obligations, and all interest, dividends, earnings and other proceeds relating thereto.

 

Cash Collateralize: the delivery of cash to Agent, as security for the payment of Obligations, in an amount equal to with respect to any inchoate, contingent or other Obligations, Agent’s good faith estimate of the amount due or to become due, including fees, expenses and indemnification hereunder. “Cash Collateralization” has a correlative meaning.

 

Cash Equivalents: (a) marketable obligations issued or unconditionally guaranteed by, and backed by the full faith and credit of, the U.S. government, maturing within 12 months of the date of acquisition; (b) certificates of deposit, time deposits and bankers’ acceptances maturing within 12 months of the date of acquisition, and overnight bank deposits, in each case which are issued by XXX or a commercial bank organized under the laws of the United States or any state or district thereof, rated A-1 (or better) by S&P or P-1 (or better) by Moody’s at the time of acquisition, and (unless issued by a Lender) not subject to offset rights; (c) repurchase obligations with a term of not more than 30 days for underlying investments of the types described in clauses (a) and (b) entered into with any bank described in clause (b); (d) commercial paper issued by XXX or rated A-1 (or better) by S&P or P-1 (or better) by Moody’s, and maturing within nine months of the date of acquisition; and (e) shares of any money market fund that has substantially all of its assets invested continuously in the types of investments referred to above, has net assets of at least $500,000,000 and has the highest rating obtainable from either Moody’s or S&P.

 

Cash Management Services: services relating to operating, collections, payroll, trust, or other depository or disbursement accounts, including automated clearinghouse, e-payable, electronic funds transfer, wire transfer, controlled disbursement, overdraft, depository, information reporting, lockbox and stop payment services.

 

CERCLA: the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, including the Superfund Amendments and Reauthorization Act of 1986 (42 U.S.C. § 9601 et seq.).

 

Change in Law: the occurrence, after the date hereof, of (a) the adoption, taking effect or phasing in of any law, rule, regulation or treaty; (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof; or (c) the making, issuance or application of any request, guideline, requirement or directive (whether or not having the force of law) by any Governmental Authority; provided, however, that “Change in Law” shall include, regardless of the date enacted, adopted or issued, all requests, rules, guidelines, requirements or directives (i) under or relating to the Dodd-Frank Wall Street Reform and Consumer Protection Act, or (ii) promulgated pursuant to Basel III by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any similar authority) or any other Governmental Authority.

 

Change of Control: the occurrence, after the date hereof, of any of the following:

 

(a)          during any twelve month period on or after the date of this Agreement, individuals who at the beginning of such period constituted the Board of Directors of the Parent (the “Board”) (together with any new directors whose election by the Board or whose nomination for election by the shareholders of the Parent was approved by a vote of at least a majority of the members of the Board then in office who either were members of the Board at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the members of the Board then in office;

 

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(b)       any Person (including a Person’s Affiliates and associates) or group (as that term is understood under Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations thereunder), shall have acquired beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of a percentage (based on voting power, in the event different classes of stock or voting interests shall have different voting powers) of the voting stock or voting interests of the Parent equal to at least fifty percent (50%) who did not hold such beneficial ownership as of the date of this Agreement or there is consummated a merger, consolidation or similar transaction (directly or indirectly) involving the Parent if, immediately after the consummation of such merger, consolidation or similar transaction, the shareholders of the Parent immediately prior to such transaction do not own, directly or indirectly, outstanding equity securities representing more than 50% of either the combined outstanding voting power or the fair market value of the outstanding equity securities of the surviving entity (or the parent of the surviving entity); or

 

(c)         Parent shall fail to own more than fifty percent (50%) of the limited partner interests of the Company, shall fail to own such interests in the Company free of any lien, encumbrance or other adverse claim, or shall fail to control the management and policies of the Company; or

 

(d)          Company shall cease to own 100% of the Equity Interests of each Subsidiary Guarantor.

 

Claims: all claims, liabilities, obligations, losses, damages, penalties, judgments, proceedings, interest, costs and expenses of any kind (including remedial response costs, reasonable attorneys’ fees and Extraordinary Expenses) at any time (including after Full Payment of the Obligations or replacement of Agent or any Lender) incurred by any Indemnitee or asserted against any Indemnitee by any Obligor or other Person, in any way relating to (a) any Loans, Loan Documents, Borrower Materials, or the use thereof or transactions relating thereto, (b) any action taken or omitted in connection with any Loan Documents, (c) the existence or perfection of any Liens, or realization upon any Collateral, (d) exercise of any rights or remedies under any Loan Documents or Applicable Law, or (e) failure by any Obligor to perform or observe any terms of any Loan Document, in each case including all costs and expenses relating to any investigation, litigation, arbitration or other proceeding (including an Insolvency Proceeding or appellate proceedings), whether or not the applicable Indemnitee is a party thereto; provided that the amount of any “Claim” in respect of an award for damages shall be limited to the amount of any direct damages (as opposed to consequential damages) suffered by the relevant Indemnitee in respect of such Claim.

 

Closing Date: as defined in Section 6.1.

 

Code: the Internal Revenue Code of 1986.

 

Collateral: all Property described in Section 7.1 and all Property in which a security interest has been created pursuant to any Security Documents as security for any Obligations. It is understood and agreed that Collateral will include all Eligible Leasing Real Property and any other Real Estate in respect of which Agent holds Security Instruments executed by the an Obligor and which has not been released as Collateral by Agent (even if such Real Estate has become ineligible for purposes of the Borrowing Base).

 

Commitment: for any Lender, the aggregate amount of such Lender’s Revolver Commitment. Commitments means the aggregate amount of all Revolver Commitments.

 

Commitment Termination Date: the earliest to occur of (a) the Revolver Termination Date; (b) the date on which Borrowers terminate the Revolver Commitments pursuant to Section 2.1.4; or (c) the date on which the Revolver Commitments are terminated pursuant to Section 11.2.

 

Commodity Exchange Act: the Commodity Exchange Act (7 U.S.C. § 1 et seq.).

 

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Competitor: (a) any Person that is a REIT or an operating company directly and primarily engaged in substantially similar business operations as the Borrower or its Subsidiaries or (b) any Person (including a private equity fund or hedge fund) that holds a controlling interest in one or more Persons described in the foregoing clause (a) (it being acknowledged and agreed that such Person referenced in this clause (b) shall no longer be a Competitor at the time such controlling interest is no longer held).

 

Compliance Certificate: a certificate, in form and substance satisfactory to Agent, by which Borrowers certify compliance with Section 10.3.

 

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

 

Contingent Acquisition Consideration: any earnout obligation or similar deferred or contingent obligation of a Borrower or any of its Subsidiaries incurred or created in connection with any Acquisition and/or any acquisition of Property by any Obligor and/or its Subsidiaries.

 

Contingent Obligation: (a) any obligation, contingent or otherwise, of a Person arising from a guaranty, indemnity, having the economic effect of guaranteeing any Debt or other obligation, or other assurance of payment or performance of any Debt, lease, dividend or other obligation (“primary obligations”) of another Person (“primary obligor”) in any manner, whether directly or indirectly, including any obligation of such Person under any (i) guaranty, endorsement, co-making or sale with recourse of an obligation of a primary obligor; (ii) obligation to make take-or-pay or similar payments regardless of nonperformance by any other party to an agreement; and (iii) arrangement (A) to purchase any primary obligation or security therefor, (B) to supply funds for the purchase or payment of any primary obligation, (C) to maintain or assure working capital, equity capital, net worth or solvency of the primary obligor, (D) to purchase Property or services for the purpose of assuring the ability of the primary obligor to perform a primary obligation, or (E) to enter into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part) or (b) any Lien on any assets of such Person securing any Debt or other obligation of any other Person, whether or not such Debt or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Debt to obtain any such Lien. The amount of any Contingent Obligation shall be deemed to be the stated or determinable amount of the primary obligation (or, if less, the maximum amount for which such Person may be liable under the instrument evidencing the Contingent Obligation) or, if not stated or determinable, the maximum reasonably anticipated liability with respect thereto.

 

CWA: the Clean Water Act (33 U.S.C. §§ 1251 et seq.).

 

Debt: as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

 

(a)         all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

 

(b)         all direct or contingent obligations of such Person arising under or in respect of (i) letters of credit (including standby and commercial), bankers’ acceptances, demand guarantees and similar independent undertakings and (ii) surety bonds, performance bonds and similar instruments issued or created by or for the account of such Person;

 

(c)         net obligations of such Person under any Swap Contract;

 

(d)         all obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business);

 

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(e)         indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse;

 

(f)         all Attributable Indebtedness;

 

(g)         all obligations of such Person in respect of Disqualified Equity Interests; and

 

(h)         all Contingent Obligations of such Person in respect of any of the foregoing.

 

For all purposes hereof, the Debt of any Person shall include the Debt of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Debt is expressly made non-recourse to such Person. The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date. The amount of any Debt of any Person for purposes of clause (e) that is expressly made non-recourse or limited-recourse (limited solely to the assets securing such Debt) to such Person shall be deemed to be equal to the lesser of (i) the aggregate principal amount of such Debt and (ii) the fair market value of the property encumbered thereby as determined by such Person in good faith.

 

Debt Service means for any period the sum of all regularly scheduled principal and interest payments due and payable in cash on all Debt of the Borrowers and their Subsidiaries for such period.

 

Debt Service Coverage Ratio means the ratio, as of any date, of (a) EBITDA of Borrowers and their Subsidiaries for the four fiscal quarters ended most recently as of such date, to (b) Debt Service for the four fiscal quarters ended most recently as of such date.

 

Default: an event or condition that, with the lapse of time or giving of notice, would constitute an Event of Default.

 

Default Rate: for any Obligation (including, to the extent permitted by law, interest not paid when due), 5% plus the interest rate otherwise applicable thereto.

 

Defaulting Lender: any Lender that (a) has failed to comply with its funding obligations hereunder, and such failure is not cured within two Business Days; (b) has notified Agent or any Borrower that such Lender does not intend to comply with its funding obligations hereunder or under any other credit facility, or has made a public statement to that effect; (c) has failed, within three Business Days following request by Agent or any Borrower, to confirm in a manner satisfactory to Agent and Borrowers that such Lender will comply with its funding obligations hereunder; or (d) has, or has a direct or indirect parent company that has, become the subject of an Insolvency Proceeding (including reorganization, liquidation, or appointment of a receiver, custodian, administrator or similar Person by the Federal Deposit Insurance Corporation or any other regulatory authority) or Bail-In Action; provided, however, that a Lender shall not be a Defaulting Lender solely by virtue of a Governmental Authority’s ownership of an equity interest in such Lender or parent company unless the ownership provides immunity for such Lender from jurisdiction of courts within the United States or from enforcement of judgments or writs of attachment on its assets, or permits such Lender or Governmental Authority to repudiate or otherwise to reject such Lender’s agreements.

 

Deposit Account Control Agreement: control agreement satisfactory to Agent covering an Operating Account entered into by an Obligor, the Agent and the Depositary Bank, to perfect Agent’s Lien on such account.

 

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Depositary Bank: Xxxxxxxxxxxxxxx in its capacity as the bank maintaining an Operating Account for the relevant Obligor.

 

Designated Jurisdiction: a country or territory that is the subject of a Sanction.

 

Distribution: any declaration or payment of a distribution, interest or dividend on any Equity Interest (other than payment-in-kind); distribution, advance or repayment of Debt to a holder of Equity Interests; or purchase, redemption, or other acquisition or retirement for value of any Equity Interest.

 

Disbursement Instructions: means disbursement instructions, dated as of even date with this Agreement, in form and substance reasonably satisfactory to Agent, executed and delivered by Borrowers and Agent.

 

Disqualified Equity Interest means any Equity Interest that, by its terms (or the terms of any security or other Equity Interests into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (a) matures or is mandatorily redeemable (other than solely for Equity Interests that are not Disqualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations that are accrued and payable and the termination of the Commitments), (b) is redeemable at the option of the holder thereof, in whole or in part, (c) provides for scheduled payments of dividends in cash, or (d) is or becomes convertible into or exchangeable for Debt or any other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is ninety-one days after the Commitment Termination Date; provided that if such Equity Interests are issued pursuant to a plan for the benefit of employees of the Borrower or any Subsidiary or by any such plan to such employees, such Equity Interests shall not constitute Disqualified Equity Interests solely because they may be required to be repurchased by the Borrower or its Subsidiaries in order to satisfy applicable statutory or regulatory obligations or as a result of such employee’s termination, death or disability.

 

Dollars: lawful money of the United States.

 

EBITDA means, with respect to any fiscal period and with respect to Borrowers, determined in each case, on a consolidated basis in accordance with GAAP, net income (or loss), before interest expense, taxes, depreciation, amortization, reserves for current expected credit losses, stock compensation, unrealized gains or losses on loans held at fair value and other non-cash items, in each case for such fiscal period.

 

EEA Financial Institution: (a) any credit institution or investment firm established in an EEA Member Country that is subject to the supervision of an EEA Resolution Authority; (b) any entity established in an EEA Member Country that is a parent of an institution described in clause (a) above; or (c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in the foregoing clauses and is subject to consolidated supervision with its parent.

 

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

 

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

 

Eligible Assignee: (a) a Lender, Affiliate of a Lender or Approved Fund; (b) a Person approved by Borrower Agent (which approval shall not be unreasonably withheld or delayed, and shall be deemed given if no objection is made within five (5) Business Days after notice of the proposed assignment) and Agent; or (c) during an Event of Default, any Person acceptable to Agent in its discretion; provided that notwithstanding the foregoing, in no event shall any of the foregoing be an Eligible Assignee: (i) any Person described in the first sentence of Section 13.3.3 or (ii) solely if no Specified Event exists, any Competitor.

 

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Eligible Leasing Real Property: means Leasing Real Property set forth on Schedule 1.1A and, subject to the satisfaction of the conditions set forth in Section 8.4.1 and written notice by the Agent to the Borrower Agent that it approves such Leasing Real Property as an Eligible Leasing Real Property, any Additional Collateral Property; provided that upon and following the occurrence of an Eligible Leasing Real Property Trigger Event with respect to any Eligible Leasing Real Property, such Eligible Leasing Real Property shall not constitute an Eligible Leasing Real Property until such Eligible Leasing Real Property Trigger Event ceases to exist, at which time such Eligible Leasing Real Property shall automatically and without any further action of the Agent or any Lender be reinstated as an Eligible Leasing Real Property, unless the Agent provides notice to the Borrower within ten Business Days thereafter that such Eligible Leasing Property shall not be reinstated as an Eligible Leasing Real Property.

 

Eligible Leasing Real Property Trigger Event: with respect to any Eligible Leasing Real Property, (i) any amounts owing under the applicable Lease are more than thirty (30) days past due under the terms thereof, (ii) any default under the applicable Lease that would result in or permit the termination of such Lease by any party thereto under Applicable Law shall exist; and (iii) the tenant of such Leasing Real Property has either failed to obtain any Local Regulatory Permit or State License required for the lawful conduct of such tenant’s Cannabis-related (as such term is defined in the Rider) use at such Leasing Real Property or any Local Regulatory Permits or State License required for the lawful conduct of such tenant’s Cannabis-related (as such term is defined in the Rider) use at such Leasing Real Property has lapsed. 

 

Enforcement Action: any action to enforce any Obligations or Loan Documents or to exercise any rights or remedies relating to any Collateral, whether by judicial action, self-help, notification of Account Debtors, setoff or recoupment, credit bid, deed in lieu of foreclosure, action in an Insolvency Proceeding or otherwise.

 

Environment: soil, land surface or subsurface strata, surface waters (including navigable waters and ocean waters), groundwater, drinking water supply, stream sediments, ambient air (including indoor air), plant and animal life, cultural and historic resources, and any other environmental medium or natural resource.

 

Environmental Laws: Applicable Laws (including programs, permits and guidance promulgated by regulators) relating to public health (other than occupational safety and health regulated by OSHA) or the protection or pollution of the Environment, including CERCLA, RCRA and CWA.

 

Environmental Liability: any claim, demand, obligation, cause of action, allegation, order, violation, damage, injury, judgment, penalty or fine, cost of enforcement, cost of remedial action, diminution in value or any other cost or expense whatsoever, including reasonable attorneys’ fees and disbursements, resulting from the presence or use of Hazardous Substances, the violation or alleged violation of any Environmental Law, or the imposition of any Environmental Lien.

 

Environmental Lien: a Security Interest in favor of any Person for: (a) any liability under an Environmental Law; or (b) damages arising from or costs incurred by such Person in response to any actual or threatened Environmental Release.

 

Environmental Notice: a notice (whether written or oral) from any Governmental Authority or other Person of any possible noncompliance with, investigation of a possible violation of, litigation relating to, or potential fine or liability under any Environmental Law, or with respect to any Environmental Release, environmental pollution or Hazardous Substances, including any complaint, summons, citation, order, claim, demand or request for correction, remediation or otherwise.

 

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Environmental Report: the Phase I Environmental Site Assessment prepared by a Person in compliance with a current standard issued by ASTM International.

 

Environmental Release: a release as defined in CERCLA or under any other Environmental Law.

 

Equipment: means all furniture, fixtures, equipment and personal property owned by any Borrower and located or to be located in or on, and used in connection with the management, maintenance or operation of, the Eligible Leasing Real Property.

 

Equity Interest: the interest of any (a) shareholder in a corporation; (b) partner in a partnership (whether general, limited, limited liability or joint venture); (c) member in a limited liability company; or (d) other Person having any other form of equity security or ownership interest.

 

ERISA: the Employee Retirement Income Security Act of 1974.

 

ERISA Affiliate: any trade or business (whether or not incorporated) under common control with an Obligor within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

 

EU Bail-In Legislation Schedule: the EU Bail-In Legislation Schedule published by the Loan Market Association, as in effect from time to time.

 

XXX Indemnitees: XXX and its officers, directors, employees, Affiliates, agents and attorneys.

 

Event of Default: as defined in Section 11.

 

Excluded Swap Obligation: with respect to an Obligor, each Swap Obligation as to which, and only to the extent that, such Obligor’s guaranty of or grant of a Lien as security for such Swap Obligation is or becomes illegal under the Commodity Exchange Act because the Obligor does not constitute an “eligible contract participant” as defined in the Commodity Exchange Act (determined after giving effect to any keepwell, support or other agreement for the benefit of such Obligor and all guarantees of Swap Obligations by other Obligors) when such guaranty or grant of Lien becomes effective with respect to the Swap Obligation. If a Hedging Agreement governs more than one Swap Obligation, only the Swap Obligation(s) or portions thereof described in the foregoing sentence shall be Excluded Swap Obligation(s) for the applicable Obligor.

 

Excluded Taxes: (a) Taxes imposed on or measured by a Recipient’s net income (however denominated), franchise Taxes and branch profits Taxes (i) as a result of such Recipient being organized under the laws of, or having its principal office or applicable Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof), or (ii) constituting Other Connection Taxes; (b) U.S. federal withholding Taxes imposed on amounts payable to or for the account of a Lender with respect to its interest in a Loan or Commitment pursuant to a law in effect when the Lender acquires such interest (except pursuant to an assignment request by Borrower Agent under Section 13.4) or changes its Lending Office, unless the Taxes were payable to its assignor immediately prior to such assignment or to the Lender immediately prior to its change in Lending Office; (c) Taxes attributable to a Recipient’s failure to comply with Section 5.10; and (d) U.S. federal withholding Taxes imposed pursuant to FATCA. In no event shall “Excluded Taxes” include any withholding Tax imposed on amounts paid by or on behalf of a foreign Obligor to a Recipient that has complied with Section 5.10.2.

 

10

 

 

Extraordinary Expenses: subject to Section 14.2, all costs, expenses or advances that Agent may incur during a Default or Event of Default, or during the pendency of an Insolvency Proceeding of an Obligor, including those relating to (a) any audit, inspection, repossession, storage, repair, appraisal, insurance, manufacture, preparation or advertising for sale, sale, collection, or other preservation of or realization upon any Collateral; (b) any action, arbitration or other proceeding (whether instituted by or against Agent, any Lender, any Obligor, any representative of creditors of an Obligor or any other Person) in any way relating to any Collateral (including the validity, perfection, priority or avoidability of Agent’s Liens with respect to any Collateral), Loan Documents, or Obligations, including any lender liability or other Claims; (c) the exercise of any rights or remedies of Agent in, or the monitoring of, any Insolvency Proceeding; (d) settlement or satisfaction of taxes, charges or Liens with respect to any Collateral; (e) any Enforcement Action; and (f) negotiation and documentation of any modification, waiver, workout, restructuring or forbearance with respect to any Loan Documents or Obligations. Such costs, expenses and advances include transfer fees, Other Taxes, storage fees, insurance costs, permit fees, utility reservation and standby fees, legal fees, appraisal fees, brokers’ and auctioneers’ fees and commissions, accountants’ fees, environmental study fees, wages and salaries paid by Agent to employees of any Obligor or independent contractors in liquidating any Collateral, and travel expenses.

 

FATCA: sections 1471 through 1474 of the Code (including any amended or successor version if substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code, and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.

 

Federal Funds Rate: (a) the weighted average of interest rates on overnight federal funds transactions with members of the Federal Reserve System on the applicable day (or the preceding Business Day, if the applicable day is not a Business Day), as published by the Federal Reserve Bank of New York on the next Business Day; or (b) if no such rate is published on the next Business Day, the average rate (rounded up to the nearest 1/8 of 1%) charged to XXX on the applicable day on such transactions, as determined by Agent; provided, that in no event shall such rate be less than zero.

 

Fiscal Quarter: each period of three months, commencing on the first day of a Fiscal Year.

 

Fiscal Year: the fiscal year of Borrowers and Subsidiaries for accounting and tax purposes, ending on December 31 of each year.

 

FLSA: the Fair Labor Standards Act of 1938.

 

Foreign Lender: any Lender that is not a U.S. Person.

 

Foreign Plan: any employee benefit plan or arrangement (a) maintained or contributed to by any Obligor or Subsidiary that is not subject to the laws of the United States; or (b) mandated by a government other than the United States for employees of any Obligor or Subsidiary.

 

Foreign Subsidiary: a Subsidiary that is a “controlled foreign corporation” under Section 957 of the Code, such that a guaranty by such Subsidiary of the Obligations or a Lien on the assets of such Subsidiary to secure the Obligations would result in material tax liability to Borrowers.

 

Fronting Exposure: a Defaulting Lender’s interest in Protective Advances and Swingline Loans, except to the extent Cash Collateralized by the Defaulting Lender or allocated to other Lenders hereunder.

 

Full Payment: with respect to any Obligations, the full and cash payment thereof, including any interest, fees and other charges accruing during an Insolvency Proceeding (whether or not allowed in the proceeding). No Loans shall be deemed to have been paid in full unless all Commitments related to such Loans are terminated.

 

11

 

 

Fund: any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit in the ordinary course of its activities.

 

GAAP: generally accepted accounting principles in effect in the United States from time to time.

 

Governmental Approvals: all authorizations, consents, approvals, licenses and exemptions of, registrations and filings with, and required reports to, all Governmental Authorities.

 

Governmental Authority: any federal, state, local, foreign or other agency, authority, body, commission, court, instrumentality, political subdivision, central bank, or other entity or officer exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions for any governmental, judicial, investigative, regulatory or self-regulatory authority (including the Financial Conduct Authority, the Prudential Regulation Authority and any supra-national bodies such as the European Union or European Central Bank).

 

Guarantor Payment: as defined in Section 5.11.3.

 

Guarantors: Parent and each Subsidiary Guarantor.

 

Guaranty: each guaranty agreement executed by a Guarantor in favor of Agent.

 

Hazardous Substances: any material, substance, chemical, waste, product, derivative, compound, mixture, solid, liquid, vapor, mineral or gas, in each case, whether naturally occurring or man-made, that (i) is classified as hazardous, acutely hazardous, or toxic, or using words of similar import or regulatory effect under Environmental Laws and (ii) any petroleum or petroleum-derived products (including crude oil or any fraction thereof).

 

Hedging Agreement: a “swap agreement” as defined in Bankruptcy Code Section 101(53B)(A).

 

Improvement Costs: in relation to any Eligible Leasing Real Property, the amount of Capital Expenditures incurred by an Obligor in connection with (i) developing any such Eligible Leasing Real Property, (ii) the purchase of Equipment on such Eligible Leasing Real Property, (iii) the cost of remodeling an existing building or other structure on such Eligible Leasing Real Property (including design fees, demolition, construction and permitting), and (iv) the cost of constructing any building or other structure located on such Eligible Leasing Real Property.

 

Indemnified Taxes: (a) Taxes, other than Excluded Taxes, imposed on or relating to any payment of an Obligation; and (b) to the extent not otherwise described in clause (a), Other Taxes.

 

Indemnitees: Agent Indemnitees, Lender Indemnitees, and XXX Indemnitees.

 

Indemnity: the Environmental Indemnification Agreement dated as of the Closing Date executed by the Obligors, as the same may be amended, supplemented or modified from time to time.

 

Initial Interest Period: the period commencing on the Closing Date and ending on the third anniversary of the Closing Date.

 

Initial Loan Rate: means the five and sixty-five one-hundredths percent (5.65%).

 

12

 

 

Insolvency Proceeding: any case or proceeding commenced by or against a Person under any state, federal or foreign law for, or any agreement of such Person to, (a) the entry of an order for relief under the Bankruptcy Code, or any other insolvency, debtor relief or debt adjustment law; (b) the appointment of a receiver, trustee, liquidator, administrator, conservator or other custodian for such Person or any part of its Property; or (c) an assignment for the benefit of creditors.

 

Intellectual Property: all intellectual and similar Property of a Person, including inventions, designs, patents, copyrights, trademarks, service marks, trade names, trade secrets, confidential or proprietary information, customer lists, know-how, software and databases; all embodiments or fixations thereof and all related documentation, applications, registrations and franchises; all licenses or other rights to use any of the foregoing; and all books and records relating to the foregoing.

 

Intellectual Property Claim: any claim or assertion (whether in writing, by suit or otherwise) that a Borrower’s or Subsidiary’s ownership, use, marketing, sale or distribution of any Inventory, Equipment, Intellectual Property or other Property violates another Person’s Intellectual Property.

 

Inventory: as defined in the UCC, including all goods intended for sale, lease, display or demonstration; all work in process; and all raw materials, and other materials and supplies of any kind that are or could be used in connection with the manufacture, printing, packing, shipping, advertising, sale, lease or furnishing of such goods, or otherwise used or consumed in a Borrower’s business (but excluding Equipment).

 

Investment: an Acquisition, an acquisition of record or beneficial ownership of any Equity Interests of a Person, or an advance or capital contribution to or other investment in a Person.

 

IRS: the United States Internal Revenue Service.

 

Lease(s): means any lease, sublease or sub-sublease, letting, license, concession or other agreement (whether written or oral and whether now or hereafter in effect), pursuant to which any Person is granted a possessory interest in, or right to use or occupy, all or any portion of any space in Eligible Leasing Real Property, and every modification, amendment or other agreement relating to such lease, sublease, sub-sublease or other agreement entered into in connection with such lease, sublease, sub-sublease or other agreement and every guarantee of the performance and observance of the covenants, conditions and agreements to be performed and observed by the other party thereto.

 

Leasing Real Property: means real property and improvements owned in fee simple by an Obligor and being prepared for leasing or being leased by such Obligor.

 

Lender Indemnitees: Lenders and their officers, directors, employees, Affiliates, agents and attorneys.

 

Lenders: lenders party to this Agreement (including Agent in its capacity as provider of Swingline Loans) and any Person who hereafter becomes a "Lender" pursuant to an Assignment, including any Lending Office of the foregoing.

 

13

 

 

Lender Group Expenses: means to the extent payable reimbursable or indemnified by the Obligors under the Loan Documents, all (a) costs or expenses (including taxes and insurance premiums) required to be paid by any Obligor or its Subsidiaries under any of the Loan Documents that are paid, advanced, or incurred by the Lenders, (b) documented out-of-pocket fees or charges paid or incurred by Agent in connection with the administration or enforcement of the Loan Documents, including, photocopying, notarization, couriers and messengers, telecommunication, public record searches, filing fees, recording fees, publication, real estate surveys, real estate title policies and endorsements, and environmental audits, (c) Agent’s customary fees and charges imposed or incurred in connection with any background checks or OFAC/PEP searches related to any Obligor or its Subsidiaries, (d) Agent’s customary fees and charges (as adjusted from time to time) with respect to the disbursement of funds (or the receipt of funds) to or for the account of any Borrower (whether by wire transfer or otherwise), together with any out-of-pocket costs and expenses incurred in connection therewith, (e) customary charges imposed or incurred by Agent resulting from the dishonor of checks payable by or to any Obligor, (f) reasonable, documented out-of-pocket costs and expenses paid or incurred by the Lender Group to correct any default or enforce any provision of the Loan Documents, or during the continuance of an Event of Default, in gaining possession of, maintaining, handling, preserving, storing, shipping, selling, preparing for sale, or advertising to sell the Collateral, or any portion thereof, irrespective of whether a sale is consummated, (g) field examination, appraisal, and valuation fees and expenses of Agent related to any field examinations, appraisals, or valuation to the extent of the fees and charges (and up to the amount of any limitation) provided in Section 10.1.1 of this Agreement, (h) Agent’s and Lenders’ reasonable, documented costs and expenses (including reasonable and documented attorneys’ fees and expenses) relative to third party claims or any other lawsuit or adverse proceeding paid or incurred, whether in enforcing or defending the Loan Documents or otherwise in connection with the transactions contemplated by the Loan Documents, Agent’s Liens in and to the Collateral, or the Lenders’ relationship with any Obligor or any of its Subsidiaries, (i) Agent’s reasonable and documented out-of-pocket costs and expenses (including reasonable and documented attorneys’ fees and due diligence expenses) incurred in advising, structuring, drafting, reviewing, administering (including travel, meals, and lodging), syndicating (including reasonable costs and expenses relative to the rating of the CUSIP, DXSyndicateTM, SyndTrak or other communication costs incurred in connection with a syndication of the loan facilities), or amending, waiving, or modifying the Loan Documents, and (j) Agent’s and each Lender’s reasonable and documented costs and expenses (including reasonable and documented attorneys, accountants, consultants, and other advisors fees and expenses) incurred in terminating, enforcing (including attorneys, accountants, consultants, and other advisors fees and expenses incurred in connection with a “workout,” a “restructuring,” or an Insolvency Proceeding concerning any Obligor or any of its Subsidiaries or in exercising rights or remedies under the Loan Documents), or defending the Loan Documents, irrespective of whether a lawsuit or other adverse proceeding is brought, or in taking any enforcement action or any remedial action with respect to the Collateral.

 

Lending Office: the office (including any domestic or foreign Affiliate or branch) designated as such by a Lender by notice to Agent and Borrower Agent.

 

License: any license or agreement under which an Obligor is authorized to use Intellectual Property in connection with any manufacture, marketing, distribution or disposition of Collateral, any use of Property or any other conduct of its business.

 

Licensor: any Person from whom an Obligor obtains the right to use any Intellectual Property.

 

Lien: a Person’s interest in Property securing an obligation owed to, or a claim by, such Person, including any lien, security interest, pledge, hypothecation, assignment, trust, reservation, encroachment, easement, right-of-way, covenant, condition, restriction, lease, or other title exception or encumbrance.

 

Lien Waiver: an agreement, in form and substance satisfactory to Agent, by which (a) for any material Collateral located on leased premises, the lessor waives or subordinates any Lien it may have on the Collateral, and agrees to permit Agent to enter upon the premises and remove the Collateral or to use the premises to store or dispose of the Collateral; (b) for any Collateral held by a warehouseman, processor, shipper, customs broker or freight forwarder, such Person waives or subordinates any Lien it may have on the Collateral, agrees to hold any Documents in its possession relating to the Collateral as agent for Agent, and agrees to deliver the Collateral to Agent upon request; (c) for any Collateral held by a repairman, mechanic or bailee, such Person acknowledges Agent’s Lien, waives or subordinates any Lien it may have on the Collateral, and agrees to deliver the Collateral to Agent upon request; and (d) for any Collateral subject to a licensor’s Intellectual Property rights, the licensor grants to Agent the right, vis-à-vis such Licensor, to enforce Agent’s Liens with respect to the Collateral, including the right to dispose of it with the benefit of the Intellectual Property, whether or not a default exists under any applicable License.

 

14

 

 

Liquidity: with respect to any Persons, the cash and Cash Equivalents of such Peron that are not, in each case, subject to any Lien or otherwise restricted in any manner, excluding unfunded Capital Expenditure commitments unless covered by the proposed line of credit availability.

 

Loan: a Revolver Loan.

 

Loan Documents: this Agreement, Other Agreements and Security Documents.

 

Loan to Value Requirement: means as of any date, the requirement that (i) the sum of the Revolver Usage plus the lesser of: (A) the remaining unfunded amount of the Commitment and (B) Availability shall be less than (ii) sixty-five percent (65%) of the Appraised Value of the Eligible Leasing Real Property in the Borrowing Base, in each case as determined by Agent based upon the most recent appraisal, provided that the relevant appraisal establishing the Appraised Value is obtained no earlier than 30 days prior to such date of calculation.

 

Loan Year: each 12 month period commencing on the Closing Date or an anniversary thereof.

 

Margin Stock: as defined in Regulation U of the Board of Governors.

 

Material Adverse Effect: the effect of any event or circumstance that, taken alone or in conjunction with other events or circumstances, (a) has or would be reasonably expected to have a material adverse effect on (i) the business, operations, Properties, or financial condition of the Obligors, taken as a whole, (ii) the value of the Collateral taken as a whole, (iii) the enforceability of any Loan Documents, or on the validity or priority of Agent’s Liens on any Collateral, or (iv) the ability of an Obligor to perform its obligations under the Loan Documents, including repayment of any Obligations; or (b) results in a material impairment of the enforceability of Agent’s Liens with respect to all or a material portion of the Collateral.

 

Material Contract: any agreement or arrangement to which a Borrower or Subsidiary is party (other than the Loan Documents) (a) that is deemed to be a material contract under any securities law applicable to such Person, including the Securities Act of 1933; (b) for which breach, termination, nonperformance or failure to renew would reasonably be expected to have a Material Adverse Effect; or (c) that relates to Subordinated Debt.

 

Material Indebtedness: any Debt for Borrowed Money (other than the Obligations) or Hedging Agreement of any Obligor having an aggregate principal amount (including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) of $1,000,000 or more.

 

Moody’s: Moody’s Investors Service, Inc. or any successor acceptable to Agent.

 

Multiemployer Plan: any employee benefit plan of the type described in Section 4001(a)(3) of ERISA and that is subject to Title IV of ERISA, to which an Obligor or ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions.

 

Multiple Employer Plan: a Plan that has two or more contributing sponsors, including an Obligor or ERISA Affiliate, at least two of whom are not under common control, as described in Section 4064 of ERISA.

 

15

 

 

Notice of Borrowing: a request by Borrower Agent for a Borrowing of Revolver Loans, in form satisfactory to Agent.

 

Obligations: all (a) principal of and premium, if any, on the Loans, (b) interest on the Loans (including any interest that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding, expenses, fees, indemnification obligations, Extraordinary Expenses and other amounts payable by Obligors under Loan Documents), (c) Lender Group Expenses (including any fees or expenses that accrue after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), and (e) other Debts, obligations, liabilities, guaranties of any kind owing by Obligors arising out of, under, pursuant to, or evidenced by this Agreement or any of the other Loan Documents and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all interest not paid when due and all other expenses or other amounts that any Obligor is required to pay or reimburse by the Loan Documents or by law or otherwise in connection with the Loan Documents, whether allowed in any Insolvency Proceeding, whether arising from an extension of credit, acceptance, loan, guaranty, indemnification or otherwise, and whether direct or indirect, absolute or contingent, due or to become due, primary or secondary, or joint or several; provided, that Obligations of an Obligor shall not include its Excluded Swap Obligations. Any reference in this Agreement or in the Loan Documents to the Obligations shall include all or any portion thereof and any extensions, modifications, renewals, or alterations thereof, both prior and subsequent to any Insolvency Proceeding.

 

Obligor: each Borrower and each Guarantor.

 

OFAC: Office of Foreign Assets Control of the U.S. Treasury Department.

 

Operating Account: means the account maintained by each Borrower or other Obligor with XXX into which the gross revenues from all or a portion of the Eligible Leasing Real Property are deposited and which are under the exclusive control of XXX for withdrawal purposes.

 

Operating Expenses: means, for any period, the total of all expenditures incurred by each Borrower, computed in accordance with GAAP, of whatever kind relating to the operation, maintenance and management of the Leasing Real Property, which expenditures are incurred on a regular monthly or other periodic basis (including such expenses paid less often than monthly, such as real estate taxes and insurance), including utilities, ordinary repairs and maintenance, insurance, license fees, Taxes, advertising expenses, management fees, payroll and related taxes, computer processing charges, and other similar costs.

 

Organic Documents: with respect to any Person, its charter, certificate or articles of incorporation, bylaws, articles of organization, limited liability agreement, operating agreement, members agreement, shareholders agreement, partnership agreement, certificate of partnership, certificate of formation, voting trust agreement, or similar agreement or instrument governing the formation or operation of such Person.

 

OSHA: the Occupational Safety and Hazard Act of 1970.

 

Other Agreement: each fee letter, Lien Waiver, Disbursement Instructions, Indemnity, Borrowing Base Report, Compliance Certificate or any note, instrument or agreement (other than this Agreement or a Security Document) now or hereafter executed and delivered by an Obligor to Agent or a Lender pursuant to this Agreement, any Guaranty, the Pledge and Security Agreement or any Security Instruments.

 

Other Connection Taxes: Taxes imposed on a Recipient due to a present or former connection between it and the taxing jurisdiction (other than connections arising from the Recipient having executed, delivered, become party to, performed obligations or received payments under, received or perfected a Lien or engaged in any other transaction pursuant to, enforced, or sold or assigned an interest in, any Loan or Loan Document).

 

16

 

 

Other Taxes: all present or future stamp, court, documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a Lien under, or otherwise with respect to, any Loan Document, except Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 13.4(c)).

 

Overadvance: means, at any time, the Revolver Usage exceeds the Borrowing Base.

 

Parent: means NewLake Capital Partners, Inc.

 

Participant: as defined in Section 13.2.

 

Patriot Act: the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. No. 107-56, 115 Stat. 272 (2001).

 

Payment Item: each check, draft or other item of payment payable to a Borrower, including those constituting proceeds of any Collateral.

 

PBGC: the Pension Benefit Guaranty Corporation.

 

Pension Plan: any employee pension benefit plan (as defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by any Obligor or ERISA Affiliate or to which the Obligor or ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the preceding five plan years.

 

Permitted Discretion: a determination made in the exercise, in good faith, of reasonable business judgment (from the perspective of a secured, asset-based lender).

 

Permitted Lien: as defined in Section 10.2.2.

 

Person: any individual, corporation, limited liability company, partnership, joint venture, association, trust, unincorporated organization, Governmental Authority or other entity.

 

Plan: an employee benefit plan (as defined in Section 3(3) of ERISA) maintained for employees of an Obligor or ERISA Affiliate, or to which an Obligor or ERISA Affiliate is required to contribute on behalf of its employees.

 

Platform: as defined in Section 14.3.3.

 

Pledge and Security Agreement: that certain Pledge and Security Agreement dated as of the date hereof between the Subsidiary Guarantors on the Closing Date and the Agent for the benefit of the Secured Parties, and thereafter any Pledge and Security Agreement between a Subsidiary of the Company that becomes a Subsidiary Guarantor after the Closing Date and the Agent for the benefit of the Secured Parties, in each case, substantially in the form of Exhibit E.

 

Pro Rata Share: with respect to any Lender, a percentage (rounded to the ninth decimal place) determined (a) by dividing the amount of such Lender’s Revolver Commitment by the aggregate outstanding Revolver Commitments; or (b) following termination of the Revolver Commitments, by dividing the amount of such Lender’s Loans by the aggregate outstanding Loans or, if all Loans have been paid in full, by dividing such Lender’s and its Affiliates’ remaining Obligations by the aggregate remaining Obligations. The term “Pro Rata” or “Pro Rata basis” refers to the allocation or distribution to the Lenders in accordance with their Pro Rata Shares.

 

17

 

 

Project Financing Statement: the UCC-1 financing statements required by Agent in connection with the establishment and maintenance of the Revolver Loans.

 

Properly Contested: with respect to any obligation of an Obligor, (a) the obligation is subject to a bona fide dispute regarding amount or the Obligor’s liability to pay; (b) the obligation is being properly contested in good faith by appropriate proceedings promptly instituted and diligently pursued; (c) appropriate reserves have been established in accordance with GAAP; (d) non-payment could not have a Material Adverse Effect and has not resulted in forfeiture or sale of any assets of the Obligor; (e) no Lien (other than a Permitted Lien) is imposed on assets of the Obligor, unless bonded and stayed to the satisfaction of Agent; and (f) if the obligation results from entry of a judgment or other order, such judgment or order is stayed pending appeal or other judicial review.

 

Property: any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible.

 

Protective Advances: as defined in Section 2.1.6.

 

Purchase Money Debt: (a) Debt (other than the Obligations) for payment of any of the purchase price of fixed assets; (b) Debt (other than the Obligations) incurred within 10 days before or after acquisition of any fixed assets, for the purpose of financing any of the purchase price thereof; and (c) any renewals, extensions or refinancings (but not increases) thereof.

 

Purchase Money Lien: a Lien that secures Purchase Money Debt, encumbering only the fixed assets acquired with such Debt and constituting a Capital Lease or a purchase money security interest under the UCC.

 

Qualified ECP: an Obligor with total assets exceeding $10,000,000, or that constitutes an “eligible contract participant” under the Commodity Exchange Act and can cause another Person to qualify as an “eligible contract participant” under Section 1a(18)(A)(v)(II) of such act.

 

RCRA: the Resource Conservation and Recovery Act of 1976, as amended (42 U.S.C. § 6901 et seq.).

 

Real Estate: all right, title and interest (whether as owner, lessor or lessee) in any real Property or any buildings, structures, parking areas or other improvements thereon.

 

Recipient: Agent, any Lender or any other recipient of a payment to be made by an Obligor under a Loan Document or on account of an Obligation.

 

Refinancing Conditions: (a) the Refinancing Debt is in an aggregate principal amount that does not exceed the principal amount of the Debt being extended, renewed or refinanced; (b) it has a final maturity no sooner than, a weighted average life no less than, and an interest rate no greater than, the Debt being extended, renewed or refinanced; (c) it is subordinated to the Obligations at least to the same extent as the Debt being extended, renewed or refinanced; (d) the representations, covenants and defaults applicable to it are no less favorable to Borrowers than those applicable to the Debt being extended, renewed or refinanced; (e) no additional Lien is granted to secure it; (f) no additional Person is obligated on such Debt; (g) upon giving effect to it, no Default or Event of Default exists; and (h) it is not on terms and conditions that, taken as a whole, are or could reasonably be expected to be materially adverse to the interests of Lenders.

 

18

 

 

Refinancing Debt: Borrowed Money that is the result of an extension, renewal or refinancing of Debt permitted under Section 10.2.1(b).

 

REIT: a “real estate investment trust” for U.S. federal income tax purposes.

 

Report: as defined in Section 12.2.3.

 

Required Lenders: two or more unaffiliated Secured Parties holding more than 50% of (a) the aggregate outstanding Revolver Commitments; or (b) after termination of the Revolver Commitments, the aggregate outstanding Loans or, upon Full Payment of all Loans, the aggregate remaining Obligations; provided, however, that Commitments, Loans and other Obligations held by a Defaulting Lender and its Affiliates shall be disregarded in making such calculation, but any related Fronting Exposure shall be deemed held as a Loan by the Lender that funded the applicable Loan.

 

Restricted Investment: any Investment by a Borrower or Subsidiary, other than (a) Investments in Subsidiaries to the extent existing on the Closing Date and (b) Cash Equivalents that are subject to Agent’s Lien and control, pursuant to documentation in form and substance satisfactory to Agent.

 

Restrictive Agreement: an agreement (other than a Loan Document) that conditions or restricts (i) the right of any Obligor to repay Borrowed Money or (ii) the right of any Subsidiary Guarantor to incur Borrowed Money or to grant Liens on any Collateral, to declare or make Distributions, to modify, extend or renew any agreement evidencing Borrowed Money, or to repay any intercompany Debt.

 

Revolver Commitment: for any Lender, its obligation to make Revolver Loans up to the maximum principal amount shown on Schedule 1.1, as hereafter modified pursuant to Section 2.1.7 or an Assignment to which it is a party. “Revolver Commitments” means the aggregate amount of such commitments of all Lenders.

 

Revolver Loan: any loan made pursuant to Section 2.1 or as a Swingline Loan.

 

Revolver Termination Date: May 6, 2027.

 

Revolver Usage: the aggregate amount of outstanding Revolver Loans.

 

S&P: Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc., or any successor acceptable to Agent.

 

Sanction: any economic or trade sanctions program or embargo administered or enforced by the U.S. Government (including OFAC), United Nations Security Council, European Union, Her Majesty’s Treasury or other sanctions authority.

 

Sanctioned Entity: (a) a country or territory or a government of a country or territory, (b) an agency of the government of a country or territory, (c) an organization directly or indirectly controlled by a country or territory or its government, or (d) a Person resident in or determined to be resident in a country or territory, in each case of clauses (a) through (d) that is a target of Sanctions, including a target of any country sanctions program administered and enforced by OFAC.

 

Sanctioned Person: means, at any time (a) any Person named on the list of Specially Designated Nationals and Blocked Persons maintained by OFAC, OFAC’s consolidated Non-SDN list or any other Sanctions-related list maintained by any Governmental Authority, (b) a Person or legal entity that is a target of Sanctions, (c) any Person operating, organized or resident in a Sanctioned Entity, or (d) any Person “owned” or “controlled” (within the meaning of OFAC), individually or in the aggregate, by or acting on behalf of any such Person or Persons described in clauses (a) through (c) above.

 

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Secured Parties: Agent and Lenders.

 

Security Documents: the Guaranties, the Pledge and Security Agreement, the Security Instruments, Deposit Account Control Agreements, and all other documents, instruments and agreements now or hereafter securing (or given with the intent to secure) any Obligations.

 

Security Instrument: any mortgage, deed of trust, deed to secure debt with assignment of leases or similar security agreement, executed and delivered by an Obligor as security for the Obligations which encumbers the Eligible Leasing Real Property, as the same may be amended, restated, supplemented or modified from time to time.

 

Security Interest: any lien, pledge, mortgage, encumbrance, charge or security interest of any kind whatsoever (including the lien or retained security title of a conditional vendor) whether arising under a security instrument or as a matter of law, judicial process or otherwise.

 

Senior Officer: the president, chief executive officer or chief financial officer of a Borrower or, if the context requires, an Obligor.

 

Settlement Report: a report summarizing Revolver Loans outstanding as of a given settlement date, allocated to Lenders on a Pro Rata basis in accordance with their Revolver Commitments.

 

Solvent: as to any Person, such Person (a) owns Property whose fair salable value is greater than the amount required to pay all of its debts (including contingent, subordinated, unmatured and unliquidated liabilities); (b) owns Property whose present fair salable value (as defined below) is greater than the probable total liabilities (including contingent, subordinated, unmatured and unliquidated liabilities) of such Person as they become absolute and matured; (c) is able to pay all of its debts as they mature; (d) has capital that is not unreasonably small for its business and is sufficient to carry on its business and transactions and all business and transactions in which it is about to engage; and (e) is not “insolvent” within the meaning of Section 101(32) of the Bankruptcy Code. “Fair salable value” means the amount that could be obtained for assets within a reasonable time, either through collection or through sale under ordinary selling conditions by a capable and diligent seller to an interested buyer who is willing (but under no compulsion) to purchase.

 

Specified Event: (i) an Event of Default under Sections 11.1(a), 11.1(c) but solely to the extent of a violation of Section 10.3, or 11.1(j) or (ii) the acceleration of the Obligations.

 

Specified Obligor: an Obligor that is not then an “eligible contract participant” under the Commodity Exchange Act (determined prior to giving effect to Section 5.11).

 

Stock: (a) all shares of capital stock (whether denominated as common stock or preferred stock), equity interests, beneficial, partnership or membership interests, joint venture interests, participations or other ownership or profit interests in or equivalents (regardless of how designated) of or in a Person (other than an individual), whether voting or non-voting; and (b) all securities convertible into or exchangeable for any other Stock and all warrants, options or other rights to purchase, subscribe for or otherwise acquire any other Stock, whether or not presently convertible, exchangeable or exercisable.

 

Subordinated Debt: Debt incurred by a Borrower that is expressly subordinate and junior in right of payment to Full Payment of all Obligations, and is on terms (including maturity, interest, fees, repayment, covenants and subordination) satisfactory to Agent.

 

Subsidiary: with respect to any Person, a corporation, partnership, limited liability company, association or joint venture or other business entity of which a majority of the Equity Interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time owned or the management of which is controlled, directly, or indirectly through one or more intermediaries, by such Person.

 

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Subsidiary Guarantor: any Guarantor that is a Subsidiary of Borrower.

 

Swap Contract means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, that are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement.

 

Swap Obligations: with respect to an Obligor, its obligations under a Hedging Agreement that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act.

 

Swap Termination Value means, as to any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts.

 

Swingline Loan: any Borrowing of Base Rate Revolver Loans funded with Agent's funds, until such Borrowing is settled among Lenders or repaid by Borrowers.

 

Taxes: all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

Transferee: any actual or potential Eligible Assignee, Participant or other Person acquiring an interest in any Obligations.

 

UCC: the Uniform Commercial Code as in effect in the State of California or, when the laws of any other jurisdiction govern the perfection or enforcement of any Lien, the Uniform Commercial Code of such jurisdiction.

 

Unintentional Overadvance: as defined in Section 5.2.

 

Unused Line Fee: as defined in Section 3.2.1.

 

Unused Line Fee Rate: a per annum rate equal to 0.25%, if average daily Revolver Usage is less than 35% of the Revolver Commitments at the end of each six month period after the Closing Date.

 

U.S. Person: “United States Person” as defined in Section 7701(a)(30) of the Code.

 

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U.S. Tax Compliance Certificate: as defined in Section 5.10.2(b)(iii).

 

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

 

1.2      Accounting Terms. Under the Loan Documents (except as otherwise specified therein), all accounting terms shall be interpreted, all accounting determinations shall be made, and all financial statements shall be prepared, in accordance with GAAP applied on a basis consistent with the most recent audited financial statements of Borrowers delivered to Agent before the Closing Date, except for any change required or permitted by GAAP if Borrowers’ certified public accountants concur in such change, the change is disclosed to Agent, and all relevant provisions of the Loan Documents are amended in a manner satisfactory to Required Lenders to take into account the effects of the change.

 

1.3      Uniform Commercial Code. As used herein, the following terms are defined in accordance with the UCC in effect in the State of California from time to time: “Account,” “Account Debtor,” “Chattel Paper,” “Commercial Tort Claim,” “Deposit Account,” “Document,” “Equipment,” “General Intangibles,” “Goods,” “Instrument,” “Investment Property,” “Letter-of-Credit Right” and “Supporting Obligation.”

 

1.4      Certain Matters of Construction. The terms “herein,” “hereof,” “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision. Any pronoun used shall be deemed to cover all genders. In the computation of periods of time from a specified date to a later specified date, “from” means “from and including,” and “to” and “until” each mean “to but excluding.” The terms “including” and “include” shall mean “including, without limitation” and, for purposes of each Loan Document, the parties agree that the rule of ejusdem generis shall not be applicable to limit any provision. Section titles appear as a matter of convenience only and shall not affect the interpretation of any Loan Document. All references to (a) laws include all related regulations, interpretations, supplements, amendments and successor provisions; (b) any document, instrument or agreement include any amendments, waivers and other modifications, extensions or renewals (to the extent permitted by the Loan Documents); (c) any section mean, unless the context otherwise requires, a section of this Agreement; (d) any exhibits or schedules mean, unless the context otherwise requires, exhibits and schedules attached hereto, which are hereby incorporated by reference; (e) any Person include successors and assigns; (f) time of day mean time of day at Agent’s notice address under Section 14.3.1; or (g) discretion of Agent or any Lender mean the sole and absolute discretion of such Person exercised at any time. All references to Appraised Value, Borrowing Base components, Loans, Obligations and other amounts herein shall be denominated in Dollars, unless expressly provided otherwise, and all determinations (including calculations of Borrowing Base and financial covenants) made from time to time under the Loan Documents shall be made in light of the circumstances existing at such time. Borrowing Base calculations shall be consistent with historical methods of valuation and calculation, and calculated in accordance with this Agreement. Borrowers shall have the burden of establishing any alleged negligence, misconduct or lack of good faith by Agent or any Lender under any Loan Documents. No provision of any Loan Documents shall be construed against any party by reason of such party having, or being deemed to have, drafted the provision. Reference to a Borrower’s “knowledge” or similar concept means actual knowledge of a Senior Officer, or knowledge that a Senior Officer would have obtained if he or she had engaged in good faith and diligent performance of his or her duties, including reasonably specific inquiries of employees or agents and a good faith attempt to ascertain the matter.

 

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SECTION 2.    CREDIT FACILITIES

 

2.1      Revolver Commitment.

 

2.1.1    Revolver Loans. Each Lender agrees, severally on a Pro Rata basis up to its Revolver Commitment, on the terms set forth herein, to make Revolver Loans to Borrowers from time to time through the Commitment Termination Date. The Revolver Loans may be repaid and reborrowed as provided herein. In no event shall Lenders have any obligation to honor a request for a Revolver Loan if Revolver Usage at such time plus the requested Loan would exceed the Borrowing Base.

 

2.1.2    Notes. Loans and interest accruing thereon shall be evidenced by the records of Agent and the applicable Lender. At the request of a Lender, Borrowers shall deliver promissory note(s) to such Lender, evidencing its Loans.

 

2.1.3    [Reserved].

 

2.1.4    Termination of Revolver Commitments.

 

(a)    The Revolver Commitments shall terminate on the Revolver Termination Date, unless sooner terminated in accordance with this Agreement. Upon at least (i) 10 Business Days prior written notice to Agent at any time prior to the First Year, Borrowers may terminate the Revolver Commitments and this credit facility provided that Borrowers shall pay to Agent, in cash, the Applicable Prepayment Premium, measured as of the date of such termination; and (ii) 10 Business Days prior written notice to Agent at any time after the first Loan Year, Borrowers may, at their option, terminate the Revolver Commitments and this credit facility. Any notice of termination given by Borrowers shall be irrevocable, provided that notwithstanding the forgoing, (i) Borrowers may rescind termination notices relative to proposed payments in full of the Obligations with the proceeds of third party Debt if the closing for such issuance or incurrence does not happen on or before the date of the proposed termination (in which case, a new notice shall be required to be sent in connection with any subsequent termination), and (ii) Borrowers may extend the date of termination at any time with the consent of Agent (which consent shall not be unreasonably withheld or delayed).

 

(b)    [Reserved].

 

2.1.5    [Reserved].

 

2.1.6    Protective Advances. Agent shall be authorized, in its discretion, at any time after the occurrence and during the continuance of a Default or an Event of Default and notwithstanding that any conditions in Section 6 are not or cannot be satisfied, to make Revolver Loans (“Protective Advances”) (a) up to an aggregate amount of $10,000,000 outstanding at any time, if Agent deems such Loans necessary or desirable to preserve or protect Collateral, or to enhance the collectability or repayment of Obligations, as long as such Loans do not cause Revolver Usage to exceed the aggregate Revolver Commitments; or (b) to pay any other amounts chargeable to Obligors under any Loan Documents, including interest, costs, fees and expenses. Lenders shall participate on a Pro Rata basis in Protective Advances outstanding from time to time. Required Lenders may at any time revoke Agent’s authority to make further Protective Advances under clause (a) by written notice to Agent. Absent such revocation, Agent’s determination that funding of a Protective Advance is appropriate shall be conclusive.

 

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2.1.7    Increase in Revolver Commitments. Borrowers may request an increase in Revolver Commitments from time to time upon notice to Agent, as long as (a) the requested increase is in a minimum amount of $5,000,000 and is offered on the same terms as existing Revolver Commitments, including a closing fee equal to 0.75% times the total increased amount of the Revolver Commitment, which fee shall be fully earned and due and on the date of each such increase in Revolver Commitment pursuant to this Section 2.1.7, (b) total increases under this Section do not exceed $70,000,000 and no more than 5 increases are made, and (c) the requested increase does not cause the Commitments to exceed 90% of any applicable cap under any Subordinated Debt agreement. Agent shall promptly notify Lenders of the requested increase and, within 10 Business Days thereafter, each Lender shall notify Agent if and to what extent such Lender commits to increase its Revolver Commitment. Any Lender not responding within such period shall be deemed to have declined an increase. If Lenders fail to commit to the full requested increase, Eligible Assignees may issue additional Revolver Commitments and become Lenders hereunder. Agent may allocate, in its discretion, the increased Revolver Commitments among committing Lenders and, if necessary, Eligible Assignees. Provided the conditions set forth in Section 6.3 are satisfied, total Revolver Commitments shall be increased by the requested amount (or such lesser amount committed by Lenders and Eligible Assignees) on a date agreed upon by Agent and Borrower Agent, but no later than 45 days following Borrowers’ increase request. Agent, Borrowers, and new and existing Lenders shall execute and deliver such documents and agreements as Agent deems appropriate to evidence the increase in and allocations of Revolver Commitments. On the effective date of an increase, the Revolver Usage and other exposures under the Revolver Commitments shall be reallocated among Lenders, and settled by Agent as necessary, in accordance with Lenders’ adjusted shares of such commitments.

 

2.2      [Reserved].

 

2.3      [Reserved].

 

SECTION 3.    INTEREST, FEES AND CHARGES

 

3.1      Interest.

 

3.1.1    Rates and Payment of Interest.

 

(a)    The Obligations shall bear interest as follows: (i) during the Initial Interest Period at the Initial Loan Rate and (ii) during the period commencing on the first day immediately after the Initial Interest Period through and including the Revolver Termination Date, at the greater of: (i) Base Rate in effect from time to time plus the Applicable Margin and (ii) 4.75%.

 

(b)    During an Insolvency Proceeding with respect to any Borrower, or during any other Event of Default if Agent or Required Lenders in their discretion so elect, Obligations shall bear interest at the Default Rate (whether before or after any judgment), payable on demand.

 

(c)    Interest shall accrue from the date a Loan is advanced or Obligation is incurred or payable, until paid in full by Borrowers, and shall in no event be less than zero at any time. Interest accrued on the Loans shall be due and payable in arrears, (i) on the first day of each month; (ii) on any date of prepayment, with respect to the principal amount being prepaid; and (iii) on the Commitment Termination Date. Interest accrued on any other Obligations shall be due and payable as provided in the Loan Documents or, if no payment date is specified, on demand.

 

3.1.2    Late Charges. To the extent permitted by applicable laws, the Agent or the Required Lenders shall have the right to assess, and the Borrowers shall pay, a late fee if any principal, interest, or fees under this Agreement are not paid within ten (10) days after their due date, and in such a case, the late charge shall be in an amount equal to the greater of Five Dollars ($5.00) or six percent (6%) of the amount not timely paid.

 

3.1.3    [Reserved].

 

3.1.4    [Reserved].

 

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3.2      Fees.

 

3.2.1    Unused Line Fee. Commencing on the date that is 6 months after the Closing Date (the “Initial ULF Date”), Borrowers shall pay to Agent, for the Pro Rata benefit of Lenders, a fee (the “Unused Line Fee”) equal to the Unused Line Fee Rate times the amount by which the Revolver Commitments exceed the average daily Revolver Usage commencing on the Initial ULF Date and on May 31 and November 30 of each year thereafter (each an “ULF Payment Date”). Such fee shall be due and payable on each ULF Payment Date with respect to the six month period then ended. Notwithstanding the foregoing, if at all times during the six months prior to a ULF Payment Date the Obligors maintained not less than $10,000,000 in one or more deposit accounts maintained with one or more Lenders, then the Unused Line Fee due on such ULF Payment Date shall be waived.

 

3.2.2    Fee Letters. Borrowers shall pay all fees set forth in any fee letter executed in connection with this Agreement.

 

3.3      Computation of Interest, Fees, Yield Protection. All interest, as well as fees and other charges calculated on a per annum basis, shall be computed for the actual days elapsed, based on a year of 360 days. Each determination by Agent of any interest, fees or interest rate hereunder shall be final, conclusive and binding for all purposes, absent manifest error. All fees shall be fully earned when due and shall not be subject to rebate, refund or proration. All fees payable under Section 3.2 are compensation for services and are not, and shall not be deemed to be, interest or any other charge for the use, forbearance or detention of money. A certificate as to amounts payable by Borrowers under Section 3.4, 3.6, 3.7, 3.9 or 5.9, submitted to Borrower Agent by Agent or the affected Lender shall be final, conclusive and binding for all purposes, absent manifest error, and Borrowers shall pay such amounts to the appropriate party within 10 days following receipt of the certificate.

 

3.4      Reimbursement Obligations. Borrowers shall pay all Extraordinary Expenses promptly upon request. Borrowers shall also reimburse Agent for all legal, accounting, appraisal, consulting, and other fees and expenses incurred by it in connection with (a) negotiation and preparation of any Loan Documents, including any modification thereof; (b) administration of and actions relating to any Collateral, Loan Documents and transactions contemplated thereby, including any actions taken to perfect or maintain priority of Agent’s Liens on any Collateral, to maintain any insurance required hereunder or to verify Collateral; and (c) subject to the limits of Section 10.1.1(b), any examination or appraisal with respect to any Obligor or Collateral by Agent’s personnel or a third party. All legal, accounting and consulting fees shall be charged to Borrowers by Agent’s professionals at their full hourly rates, regardless of any alternative fee arrangements that Agent, any Lender or any of their Affiliates may have with such professionals that otherwise might apply to this or any other transaction. Borrowers acknowledge that counsel may provide Agent with a benefit (such as a discount, credit or accommodation for other matters) based on counsel’s overall relationship with Agent, including fees paid hereunder. If, for any reason (including inaccurate reporting in any Borrower Materials), it is determined that a higher Applicable Margin should have applied to a period than was actually applied, then the proper margin shall be applied retroactively and Borrowers shall immediately pay to Agent, for the ratable benefit of Lenders, an amount equal to the difference between the amount of interest and fees that would have accrued using the proper margin and the amount actually paid. All amounts payable by Borrowers under this Section shall be due on demand.

 

3.5      Illegality. If any Lender determines that any Applicable Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender to perform any of its obligations hereunder, to make, maintain, fund or charge applicable interest or fees with respect to any Loan, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars, then, on notice thereof by such Lender to Agent, any obligation of such Lender to perform such obligations, to make, maintain or fund the Loan (or to charge interest or fees with respect thereto), shall be suspended until such Lender notifies Agent that the circumstances giving rise to such determination no longer exist. Upon delivery of such notice, Borrowers shall prepay the applicable Loan. Upon any such prepayment, Borrowers shall also pay accrued interest on the amount so prepaid.

 

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3.6      [Reserved].

 

3.7      Increased Costs; Capital Adequacy.

 

3.7.1    Increased Costs Generally. If any Change in Law shall:

 

(a)    impose, modify or deem applicable any reserve, liquidity, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender;

 

(b)    subject any Recipient to Taxes (other than (i) Indemnified Taxes, (ii) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes, and (iii) Connection Income Taxes) with respect to any Loan, Commitment or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

 

(c)    impose on any Lender or interbank market any other condition, cost or expense (other than Taxes) affecting any Loan, Commitment or Loan Document;

 

and the result thereof shall be to increase the cost to a Lender of making or maintaining any Loan or Commitment, or converting to or continuing any interest option for a Loan, or to reduce the amount of any sum received or receivable by a Lender hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, Borrowers will pay to it such additional amount(s) as will compensate it for the additional costs incurred or reduction suffered.

 

3.7.2    Capital Requirements. If a Lender determines that a Change in Law affecting such Lender or its holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s, or holding company’s capital as a consequence of this Agreement, or such Lender’s Commitments, Loans, or participations in Loans, to a level below that which such Lender or holding company could have achieved but for such Change in Law (taking into consideration its policies with respect to capital adequacy), then from time to time Borrowers will pay to such Lender, such additional amounts as will compensate it or its holding company for the reduction suffered.

 

3.7.3    [Reserved].

 

3.7.4    Compensation. Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of its right to demand such compensation, but Borrowers shall not be required to compensate a Lender for any increased costs or reductions suffered more than nine months (plus any period of retroactivity of the Change in Law giving rise to the demand) prior to the date that the Lender notifies Borrower Agent of the applicable Change in Law and of such Lender’s intention to claim compensation therefor.

 

3.8      Mitigation. If any Lender gives a notice under Section 3.5 or requests compensation under Section 3.7, or if Borrowers are required to pay any Indemnified Taxes or additional amounts with respect to a Lender under Section 5.9, then at the request of Borrower Agent, such Lender shall use reasonable efforts to designate a different Lending Office or to assign its rights and obligations hereunder to another of its offices, branches or Affiliates, if, in the judgment of such Lender, such designation or assignment (a) would eliminate the need for such notice or reduce amounts payable or to be withheld in the future, as applicable; and (b) would not subject the Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to it or unlawful. Borrowers shall pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

 

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3.9      [Reserved].

 

3.10    Maximum Interest. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by Applicable Law (“maximum rate”). If Agent or any Lender shall receive interest in an amount that exceeds the maximum rate, the excess interest shall be applied to the principal of the Obligations or, if it exceeds such unpaid principal, refunded to Borrowers. In determining whether the interest contracted for, charged or received by Agent or a Lender exceeds the maximum rate, such Person may, to the extent permitted by Applicable Law, (a) characterize any payment that is not principal as an expense, fee or premium rather than interest; (b) exclude voluntary prepayments and the effects thereof; and (c) amortize, prorate, allocate and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.

 

SECTION 4.    LOAN ADMINISTRATION

 

4.1      Manner of Borrowing and Funding Revolver Loans.

 

4.1.1    Notice of Borrowing.

 

(a)    To request Revolver Loans, Borrower Agent shall give Agent a Notice of Borrowing by 11:00 a.m. on the requested funding date, in the case of Revolver Loans. Notices received by Agent after such time shall be deemed received on the next Business Day. Each Notice of Borrowing shall be irrevocable and shall specify (A) the Borrowing amount and (B) the requested funding date (which must be a Business Day).

 

(b)    Unless payment is otherwise made by Borrowers, the becoming due of any Obligation (whether principal, interest, fees or other charges, including Extraordinary Expenses) shall be deemed to be a request for a Revolver Loan on the due date in the amount due and the Loan proceeds shall be disbursed as direct payment of such Obligation. In addition, Agent may, at its option, charge such amount against any operating, investment or other account of a Borrower maintained with Agent or any of its Affiliates.

 

(c)    If a Borrower maintains a disbursement account with Agent or any of its Affiliates, then presentation for payment in the account of a Payment Item when there are insufficient funds to cover it shall be deemed to be a request for a Revolver Loan on the presentation date, in the amount of the Payment Item. Proceeds of the Loan may be disbursed directly to the account.

 

4.1.2    Fundings by Lenders. Except for Swingline Loans, Agent shall endeavor to notify Lenders of each Notice of Borrowing (or deemed request for a Borrowing) by 1:00 p.m. on the proposed funding date for a Loan. Each Lender shall fund its Pro Rata Share of a Borrowing in immediately available funds by 11:00 a.m. on the next Business Day. Subject to its receipt of such amounts from Lenders, Agent shall disburse the Borrowing proceeds in a manner directed by Borrower Agent and acceptable to Agent. Unless Agent receives (in sufficient time to act) written notice from a Lender that it will not fund its share of a Borrowing, Agent may assume that such Lender has deposited or promptly will deposit its share with Agent, and Agent may disburse a corresponding amount to Borrowers. A Lender may fulfill its obligations under Loan Documents through one or more Lending Offices, and this shall not affect any obligation of Obligors under the Loan Documents or with respect to any Obligations. If a Lender’s share of a Borrowing or of a settlement under Section 4.1.3 which Agent has disbursed to Borrowers is not received by Agent, then Borrowers agree to repay to Agent on demand the amount of such share, together with interest thereon from the date disbursed until repaid, at the rate applicable to the Borrowing.

 

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4.1.3    Swingline Loans; Settlement.

 

(a)    To fulfill any request for a Base Rate Revolver Loan hereunder, Agent may in its discretion advance Swingline Loans to Borrowers, up to an aggregate outstanding amount of $5,000,000. Swingline Loans shall constitute Revolver Loans for all purposes, except that payments thereon shall be made to Agent for its own account until Lenders have funded their participations therein as provided below.

 

(b)    Settlement of Loans, including Swingline Loans, among Lenders and Agent shall take place on a date determined from time to time by Agent (but at least weekly, unless the settlement amount is de minimis), on a Pro Rata basis in accordance with the Settlement Report delivered by Agent to Lenders. Between settlement dates, Agent may in its discretion apply payments on Revolver Loans to any existing Unintentional Overadvance or Swingline Loan, regardless of any designation by Borrowers or anything herein to the contrary. Each Lender hereby purchases, without recourse or warranty, an undivided Pro Rata participation in all Unintentional Overadvances and Swingline Loans outstanding from time to time until settled. If an Unintentional Overadvance or a Swingline Loan cannot be settled among Lenders, whether due to an Obligor’s Insolvency Proceeding or for any other reason, each Lender shall pay the amount of its participation in the Loan relating to such Unintentional Overadvance or Swingline Loan to Agent, in immediately available funds, within one Business Day after Agent’s request therefor. Lenders’ obligations to make settlements and to fund participations are absolute, irrevocable and unconditional, without offset, counterclaim or other defense, and whether or not the Commitments have terminated, an Overadvance exists or the conditions in Section 6 are satisfied.

 

4.2      Defaulting Lender. Notwithstanding anything herein to the contrary:

 

4.2.1    Reallocation of Pro Rata Share; Amendments. For purposes of determining Lenders’ obligations or rights to fund, participate in or receive collections with respect to Loans (including existing Swingline Loans and Protective Advances), Agent may in its discretion reallocate Pro Rata Shares by excluding a Defaulting Lender’s Commitments and Loans from the calculation of shares. A Defaulting Lender shall have no right to vote on any amendment, waiver or other modification of a Loan Document, except as provided in Section 14.1.1(c).

 

4.2.2    Payments; Fees. Agent may, in its discretion, receive and retain any amounts payable to a Defaulting Lender under the Loan Documents, and a Defaulting Lender shall be deemed to have assigned to Agent such amounts until all Obligations owing to Agent, non-Defaulting Lenders and other Secured Parties have been paid in full. Agent may use such amounts to cover the Defaulting Lender’s defaulted obligations, to Cash Collateralize such Lender’s Fronting Exposure, to readvance the amounts to Borrowers or to repay Obligations. A Lender shall not be entitled to receive any fees accruing hereunder while it is a Defaulting Lender and its unfunded Commitment shall be disregarded for purposes of calculating the unused line fee under Section 3.2.1.

 

4.2.3    Status; Cure. Agent may determine in its discretion that a Lender constitutes a Defaulting Lender and the effective date of such status shall be conclusive and binding on all parties, absent manifest error. Borrowers and Agent may agree in writing that a Lender has ceased to be a Defaulting Lender, whereupon Pro Rata Shares shall be reallocated without exclusion of the reinstated Lender’s Commitments and Loans, and the Revolver Usage and other exposures under the Revolver Commitments shall be reallocated among Lenders and settled by Agent (with appropriate payments by the reinstated Lender) in accordance with the readjusted Pro Rata Shares. Unless expressly agreed by Borrowers and Agent, or as expressly provided herein with respect to Bail-In Actions and related matters, no reallocation of Commitments and Loans to non-Defaulting Lenders or reinstatement of a Defaulting Lender shall constitute a waiver or release of claims against such Lender. The failure of any Lender to fund a Loan or otherwise to perform obligations hereunder shall not relieve any other Lender of its obligations under any Loan Document. No Lender shall be responsible for default by another Lender.

 

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4.3      [Reserved].

 

4.4    Borrower Agent. Each Borrower hereby designates NLCP Operating Partnership LP, a Delaware limited partnership (“Borrower Agent”) as its representative and agent for all purposes under the Loan Documents, including requests for and receipt of Loans, designation of interest rates, delivery or receipt of communications, delivery of Borrower Materials, payment of Obligations, requests for waivers, amendments or other accommodations, actions under the Loan Documents (including in respect of compliance with covenants), and all other dealings with Agent or any Lender. Borrower Agent hereby accepts such appointment. Agent and Lenders shall be entitled to rely upon, and shall be fully protected in relying upon, any notice or communication (including any notice of borrowing) delivered by Borrower Agent on behalf of any Borrower. Agent and Lenders may give any notice or communication with a Borrower hereunder to Borrower Agent on behalf of such Borrower. Each of Agent and Lenders shall have the right, in its discretion, to deal exclusively with Borrower Agent for all purposes under the Loan Documents. Each Borrower agrees that any notice, election, communication, delivery, representation, agreement, action, omission or undertaking by Borrower Agent shall be binding upon and enforceable against such Borrower.

 

4.5      One Obligation. The Loans and other Obligations constitute one general obligation of Borrowers and are secured by Agent’s Lien on all Collateral; provided, however, that Agent and each Lender shall be deemed to be a creditor of, and the holder of a separate claim against, each Borrower to the extent of any Obligations jointly or severally owed by such Borrower.

 

4.6     Effect of Termination. On the effective date of the termination of all Commitments, the Obligations shall be immediately due and payable. Until Full Payment of the Obligations, all undertakings of Borrowers contained in the Loan Documents shall continue, and Agent shall retain its Liens in the Collateral and all of its rights and remedies under the Loan Documents. Agent shall not be required to terminate its Liens unless it receives a written agreement, in each case satisfactory to it, protecting Agent and Lenders from dishonor or return of any Payment Item previously applied to the Obligations. Sections 3.4, 3.7, 5.5, 5.9, 5.10, 12, 14.2, this Section, and each indemnity or waiver given by an Obligor or Lender in any Loan Document, shall survive Full Payment of the Obligations.

 

SECTION 5.    PAYMENTS

 

5.1      General Payment Provisions. All payments of Obligations shall be made in Dollars, without offset, counterclaim or defense of any kind, free and clear of (and without deduction for) any Taxes, except as required by Applicable Law, and in immediately available funds, not later than 12:00 noon on the due date. Any payment after such time shall be deemed made on the next Business Day. Payments shall be applied in accordance with Section 5.6.

 

5.2     Repayment of Revolver Loans. Revolver Loans shall be due and payable in full on the Revolver Termination Date, unless payment is sooner required hereunder. Revolver Loans may be prepaid from time to time, without penalty or premium. Upon the occurrence of a Change of Control, the Revolver Commitments shall be terminated and the Revolver Loans shall be due and payable in full on or before the occurrence of such Change of Control, without prepayment or penalty. In the event that Agent or any Borrower determines that an Overadvance exists prior to an advance, it will notify the other party hereto of such determination, and Borrowers must, within 10 days following demand made to Borrower Agent by Agent, repay the Revolver Loans in an amount sufficient to reduce the Revolver Usage to the Borrowing Base or provide such additional Eligible Leasing Real Property in order to return the Revolver Usage to the Borrowing Base; provided that notwithstanding the foregoing, if an Overadvance is solely the result of Leasing Real Property that was included in the Borrowing Base becoming ineligible (an “Unintentional Overadvance”), then (i) the Lenders authorize Agent to continue, and the Lenders will continue to, make Revolver Loans (each an “Agent Overdvance”) to Borrowers notwithstanding the existence of such Unintentional Overadvance, so long as (A) after giving effect to such Revolver Loans, the outstanding Revolver Usage does not exceed the Borrowing Base by more than 20% of the Borrowing Base, and (B) after giving effect to such Revolver Loans, the outstanding Revolver Usage does not exceed the Revolver Commitments of the Lenders, and (ii) if the Agent fails to approve an additional Leasing Real Property proposed by Borrower for inclusion in the Borrowing within 15 days following such demand for repayment made to Borrower Agent, then Borrower Agent and Agent shall negotiate in good faith to agree on a plan (a “Plan”) to cure such Overadvances within 45 days after the initial 15 day period referenced above through adding an additional Leasing Real Property to the Borrowing Base (including taking the steps required to cause such Leasing Real Property to become an Eligible Leasing Real Property) and/or repaying Loans, and following agreement by Borrower Agent and Agent on the Plan, the Borrower shall execute such Plan in accordance with its terms or, if no agreement by Borrower Agent and Agent is reached on the Plan, cure such Overadvances within 45 days after the initial 15 day period referenced above. In the event Agent obtains actual knowledge that the Revolver Usage exceeds the amounts permitted by this Section 5.2, regardless of the amount of, or reason for, such excess, Agent shall notify the Lenders as soon as practicable unless Agent determines that prior notice would result in imminent harm to the Collateral or its value, in which case Agent may to the extent permitted thereunder make a Protective Advance pursuant to and in accordance with Section 2.16 and provide notice as promptly as practicable thereafter. Each Unintentional Overadvance shall be deemed to be a Revolver Loan hereunder. Prior to settlement of any Agent Overadvance or any Protective Advance made by Agent pursuant to the preceding sentence, all payments with respect thereto, including interest thereon, shall be payable to Agent solely for its own account. Each Lender shall be obligated to settle with Agent as provided in Section 4.1.3 for the amount of such Lender’s Pro Rata Share of any Unintentional Overadvance.

 

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5.3      Loan to Value Ratio; Remargining. From and after the Borrowing Base Remargining Date (as defined below), each Borrower shall, and shall cause each Subsidiary Guarantor, to comply with the Loan to Value Requirement. In the event that (i) the Agent obtains appraisals of all Eligible Leasing Real Properties that indicates the Appraised Values thereof following the occurrence and during the continuance of an Event of Default and the Appraised Values of the Eligible Leasing Real Properties indicate that the Loan to Value Requirement is not satisfied and (ii) Borrowers’ Debt Service Coverage Ratio is less than 1.40 to 1.00, Borrowers agree to, within 10 days after written notice from Agent to Borrower Agent (the date with respect to the first such written notice from the Agent that is the earlier of (i) the last day of such ten day period, and (ii) the date the Borrower makes such prepayment or provides such Additional Collateral Property, the “Borrowing Base Remargining Date”), prepay such amount of principal necessary to bring the Loan into compliance with the Loan to Value Requirement, along with any and all other costs and expenses which Borrowers are required to pay in connection with a prepayment of the Loan, which prepayment will be applied in accordance with Section 5.6 or provide such Additional Collateral Property in accordance with Section 8.4.1, in order to bring the Loan into compliance with the Loan to Value Requirement.

 

5.4      Payment of Other Obligations. Obligations other than Loans, including and Extraordinary Expenses, shall be paid by Borrowers as provided in the Loan Documents or, if no payment date is specified, on demand.

 

5.5      Marshaling; Payments Set Aside. None of Agent or Lenders shall be under any obligation to marshal any assets in favor of any Obligor or against any Obligations. If any payment by or on behalf of Borrowers is made to Agent or any Lender, or if Agent or any Lender exercises a right of setoff, and any of such payment or setoff is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by Agent or a Lender in its discretion) to be repaid to a trustee, receiver or any other Person, then the Obligation originally intended to be satisfied, and all Liens, rights and remedies relating thereto, shall be revived and continued in full force and effect as if such payment or setoff had not occurred.

 

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5.6      Application and Allocation of Payments.

 

5.6.1    Application. Payments made by Borrowers hereunder shall be applied (a) first, as specifically required hereby; (b) second, to Obligations then due and owing; (c) third, to other Obligations specified by Borrowers; and (d) fourth, as determined by Agent in its discretion.

 

5.6.2    Post-Default Allocation. Notwithstanding anything in any Loan Document to the contrary, during an Event of Default under Section 11.1(j), or during any other Event of Default at the discretion of Agent or Required Lenders, monies to be applied to the Obligations, whether arising from payments by Obligors, realization on Collateral, setoff or otherwise, shall be allocated as follows:

 

(a)    first, to all fees, indemnification, costs and expenses, including Extraordinary Expenses, owing to Agent;

 

(b)    second, to all other amounts owing to Agent, including Swingline Loans and Protective Advances, and participations that a Defaulting Lender has failed to settle or fund;

 

(c)    third, to all Obligations constituting fees, indemnification, costs or expenses owing to Lenders;

 

(d)    fourth, to all Obligations constituting interest;

 

(e)    fifth, to all Loans; and

 

(f)    last, to all remaining Obligations.

 

Amounts shall be applied to payment of each category of Obligations only after Full Payment of amounts payable from time to time under all preceding categories. If amounts are insufficient to satisfy a category, they shall be paid ratably among outstanding Obligations in the category.

 

5.6.3    Erroneous Application. Agent shall not be liable for any application of amounts made by it in good faith and, if any such application is subsequently determined to have been made in error, the sole recourse of any Lender or other Person to which such amount should have been paid shall be to recover the amount from the Person that actually received it (and, if such amount was received by a Secured Party, the Secured Party agrees to return it).

 

5.7      [Reserved].

 

5.8      Account Stated. Agent shall maintain, in accordance with its customary practices, loan account(s) evidencing the Debt of Borrowers hereunder. Any failure of Agent to record anything in a loan account, or any error in doing so, shall not limit or otherwise affect the obligation of Borrowers to pay any amount owing hereunder. Entries made in a loan account shall constitute presumptive evidence of the information contained therein. If any information contained in a loan account is provided to or inspected by any Person, the information shall be conclusive and binding on such Person for all purposes absent manifest error, except to the extent such Person notifies Agent in writing within 30 days after receipt or inspection that specific information is subject to dispute.

 

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5.9      Taxes.

 

5.9.1    Payments Free of Taxes; Obligation to Withhold; Tax Payment.

 

(a)    All payments of Obligations by Obligors shall be made without deduction or withholding for any Taxes, except as required by Applicable Law. If Applicable Law (as determined by Agent in its Permitted Discretion) requires the deduction or withholding of any Tax from any such payment by Agent or an Obligor, then Agent or such Obligor shall be entitled to make such deduction or withholding based on information and documentation provided pursuant to Section 5.10.

 

(b)    If Agent or any Obligor is required by the Code to withhold or deduct Taxes, including backup withholding and withholding taxes, from any payment, then (i) Agent shall pay the full amount that it determines is to be withheld or deducted to the relevant Governmental Authority pursuant to the Code, and (ii) to the extent the withholding or deduction is made on account of Indemnified Taxes, the sum payable by the applicable Obligor shall be increased as necessary so that the Recipient receives an amount equal to the sum it would have received had no such withholding or deduction been made.

 

(c)    If Agent or any Obligor is required by any Applicable Law other than the Code to withhold or deduct Taxes from any payment, then (i) Agent or such Obligor, to the extent required by Applicable Law, shall timely pay the full amount to be withheld or deducted to the relevant Governmental Authority, and (ii) to the extent the withholding or deduction is made on account of Indemnified Taxes, the sum payable by the applicable Obligor shall be increased as necessary so that the Recipient receives an amount equal to the sum it would have received had no such withholding or deduction been made.

 

5.9.2    Payment of Other Taxes. Without limiting the foregoing, Borrowers shall timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at Agent’s option, timely reimburse Agent for payment of, any Other Taxes.

 

5.9.3    Tax Indemnification.

 

(a)    Each Borrower shall indemnify and hold harmless, on a joint and several basis, each Recipient against any Indemnified Taxes (including those imposed or asserted on or attributable to amounts payable under this Section) payable or paid by a Recipient or required to be withheld or deducted from a payment to a Recipient, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. Each Borrower shall make payment within 10 days after demand for any amount or liability payable under this Section. A certificate as to the amount of such payment or liability delivered to Borrowers by a Lender (with a copy to Agent), or by Agent on its own behalf or on behalf of any Recipient, shall be conclusive absent manifest error.

 

(b)    Each Lender shall indemnify and hold harmless, on a several basis, (i) Agent against any Indemnified Taxes attributable to such Lender (but only to the extent Borrowers have not already paid or reimbursed Agent therefor and without limiting Borrowers’ obligation to do so), (ii) Agent and Obligors, as applicable, against any Taxes attributable to such Lender’s failure to maintain a Participant register as required hereunder, and (iii) Agent and Obligors, as applicable, against any Excluded Taxes attributable to such Lender, that are payable or paid by Agent or an Obligor in connection with any Obligations, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. Each Lender shall make payment within 10 days after demand for any amount or liability payable under this Section. A certificate as to the amount of such payment or liability delivered to any Lender by Agent shall be conclusive absent manifest error.

 

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5.9.4    Evidence of Payments. As soon as practicable after payment by an Obligor of any Taxes pursuant to this Section, Borrower Agent shall deliver to Agent the original or a certified copy of a receipt issued by the appropriate Governmental Authority evidencing the payment, a copy of any return required by Applicable Law to report the payment or other evidence of payment reasonably satisfactory to Agent.

 

5.9.5    Treatment of Certain Refunds. Unless required by Applicable Law, at no time shall Agent have any obligation to file for or otherwise pursue on behalf of a Lender, nor have any obligation to pay to any Lender, any refund of Taxes withheld or deducted from funds paid for the account of a Lender. If a Recipient determines in its discretion that it has received a refund of Taxes that were indemnified by Borrowers or with respect to which a Borrower paid additional amounts pursuant to this Section, it shall pay the amount of such refund to Borrowers (but only to the extent of indemnity payments or additional amounts actually paid by Borrowers with respect to the Taxes giving rise to the refund), net of all out-of-pocket expenses (including Taxes) incurred by such Recipient and without interest (other than interest paid by the relevant Governmental Authority with respect to such refund). Borrowers shall, upon request by the Recipient, repay to the Recipient such amount paid over to Borrowers (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) if the Recipient is required to repay such refund to the Governmental Authority. Notwithstanding anything herein to the contrary, no Recipient shall be required to pay any amount to Borrowers if such payment would place it in a less favorable net after-Tax position than it 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. In no event shall Agent or any Recipient be required to make its tax returns (or any other information relating to its taxes that it deems confidential) available to any Obligor or other Person.

 

5.9.6    Survival. Each party’s obligations under Sections 5.9 and 5.10 shall survive the resignation or replacement of Agent or any assignment of rights by or replacement of a Lender, the termination of the Commitments, and the repayment, satisfaction, discharge or Full Payment of any Obligations.

 

5.10    Lender Tax Information.

 

5.10.1    Status of Lenders. Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments of Obligations shall deliver to Borrowers and Agent, at the time or times reasonably requested by the Borrower or the Agent, such properly completed and executed documentation reasonably requested by Borrowers or Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by Borrowers or Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by Borrowers or Agent to enable them to determine whether such Lender is subject to backup withholding or information reporting requirements. Notwithstanding the foregoing, such documentation (other than documentation described in Sections 5.10.2(a), (b) and (d)) shall not be required if a Lender reasonably believes delivery of the documentation would subject it to any material unreimbursed cost or expense or would materially prejudice its legal or commercial position.

 

5.10.2    Documentation. Without limiting the foregoing, if any Borrower is a U.S. Person,

 

(a)    Any Lender that is a U.S. Person shall deliver to Borrowers and Agent on or prior to the date on which such Lender becomes a Lender hereunder (and from time to time thereafter upon reasonable request of Borrowers or Agent), executed copies of IRS Form W-9, certifying that such Lender is exempt from U.S. federal backup withholding Tax;

 

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(b)    Any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to Borrowers and 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 hereunder (and from time to time thereafter upon reasonable request of Borrowers or Agent), whichever of the following is applicable:

 

(i)    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-8BENE 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 other payments under the Loan Documents, IRS Form W-8BEN or IRS Form W-8BENE establishing an exemption from or reduction of U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;

 

(ii)    executed copies of IRS Form W-8ECI;

 

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

 

(iv)    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-8BENE, a U.S. Tax Compliance Certificate in form satisfactory to Agent and Borrower Agent, 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 of its direct or indirect partners is claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate on behalf of each such direct and indirect partner satisfactory to Agent and Borrower Agent;

 

(c)    any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to Borrowers and 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 hereunder (and from time to time thereafter upon reasonable request of the Borrowers or the 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 Borrowers or Agent to determine the withholding or deduction required to be made; and

 

(d)    if payment of an Obligation to a Lender 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), such Lender shall deliver to Borrowers and Agent, at the time(s) prescribed by law and otherwise upon reasonable request by the Borrowers or the Agent, such documentation prescribed by Applicable Law (including Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Agent as may be appropriate for Borrowers or Agent to comply with their obligations under FATCA and to determine that such Lender has complied with its obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (d), “FATCA” shall include any amendments made to FATCA after the date hereof.

 

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5.10.3    Redelivery of Documentation. If any form or certification previously delivered by a Lender pursuant to this Section expires or becomes obsolete or inaccurate in any respect, such Lender shall promptly update the form or certification or notify Borrowers and Agent in writing of its inability to do so.

 

5.11    Nature and Extent of Each Borrower’s Liability.

 

5.11.1    Joint and Several Liability. Each Borrower agrees that it is jointly and severally liable for, and absolutely and unconditionally guarantees to Agent and Lenders the prompt payment and performance of, all Obligations, except its Excluded Swap Obligations. Each Borrower agrees that its guaranty obligations hereunder constitute a continuing guaranty of payment and not of collection, that such obligations shall not be discharged until Full Payment of the Obligations, and that such obligations are absolute and unconditional, irrespective of (a) the genuineness, validity, regularity, enforceability, subordination or any future modification of, or change in, any Obligations or Loan Document, or any other document, instrument or agreement to which any Obligor is or may become a party or be bound; (b) the absence of any action to enforce this Agreement (including this Section) or any other Loan Document, or any waiver, consent or indulgence of any kind by Agent or any Lender with respect thereto; (c) the existence, value or condition of, or failure to perfect a Lien or to preserve rights against, any security or guaranty for any Obligations or any action, or the absence of any action, by Agent or any Lender in respect thereof (including the release of any security or guaranty); (d) the insolvency of any Obligor; (e) any election by Agent or any Lender in an Insolvency Proceeding for the application of Section 1111(b)(2) of the Bankruptcy Code; (f) any borrowing or grant of a Lien by any other Borrower, as debtor-in-possession under Section 364 of the Bankruptcy Code or otherwise; (g) the disallowance of any claims of Agent or any Lender against any Obligor for the repayment of any Obligations under Section 502 of the Bankruptcy Code or otherwise; or (h) any other action or circumstances that might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, except Full Payment of the Obligations.

 

5.11.2    Waivers.

 

(a)    Each Borrower expressly waives all rights that it may have now or in the future under any statute, at common law, in equity or otherwise, to compel Agent or Lenders to marshal assets or to proceed against any Obligor, other Person or security for the payment or performance of any Obligations before, or as a condition to, proceeding against such Borrower. Each Borrower waives all defenses available to a surety, guarantor or accommodation co-obligor other than Full Payment of Obligations and waives, to the maximum extent permitted by law, any right to revoke any guaranty of Obligations as long as it is a Borrower. It is agreed among each Borrower, Agent and Lenders that the provisions of this Section 5.11 are of the essence of the transaction contemplated by the Loan Documents and that, but for such provisions, Agent and Lenders would decline to make Loans. Each Borrower acknowledges that its guaranty pursuant to this Section is necessary to the conduct and promotion of its business, and can be expected to benefit such business.

 

(b)    Agent and Lenders may, in their discretion, pursue such rights and remedies as they deem appropriate, including realization upon Collateral or any Real Estate by judicial foreclosure or nonjudicial sale or enforcement, without affecting any rights and remedies under this Section 5.11. If, in taking any action in connection with the exercise of any rights or remedies, Agent or any Lender shall forfeit any other rights or remedies, including the right to enter a deficiency judgment against any Borrower or other Person, whether because of any Applicable Laws pertaining to “election of remedies” or otherwise, each Borrower consents to such action and waives any claim based upon it, even if the action may result in loss of any rights of subrogation that any Borrower might otherwise have had. Any election of remedies that results in denial or impairment of the right of Agent or any Lender to seek a deficiency judgment against any Borrower shall not impair any other Borrower’s obligation to pay the full amount of the Obligations. Each Borrower waives all rights and defenses arising out of an election of remedies, such as nonjudicial foreclosure with respect to any security for Obligations, even though that election of remedies destroys such Borrower’s rights of subrogation against any other Person. Agent may bid Obligations, in whole or part, at any foreclosure, trustee or other sale, including any private sale, and the amount of such bid need not be paid by Agent but shall be credited against the Obligations. The amount of the successful bid at any such sale, whether Agent or any other Person is the successful bidder, shall be conclusively deemed to be the fair market value of the Collateral, and the difference between such bid amount and the remaining balance of the Obligations shall be conclusively deemed to be the amount of the Obligations guaranteed under this Section 5.11, notwithstanding that any present or future law or court decision may have the effect of reducing the amount of any deficiency claim to which Agent or any Lender might otherwise be entitled but for such bidding at any such sale.

 

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5.11.3    Extent of Liability; Contribution.

 

(a)    Notwithstanding anything herein to the contrary, each Borrower’s liability under this Section 5.11 shall not exceed the greater of (i) all amounts for which such Borrower is primarily liable, as described in clause (c) below, and (ii) such Borrower’s Allocable Amount.

 

(b)    If any Borrower makes a payment under this Section 5.11 of any Obligations (other than amounts for which such Borrower is primarily liable) (a “Guarantor Payment”) that, taking into account all other Guarantor Payments previously or concurrently made by any other Borrower, exceeds the amount that such Borrower would otherwise have paid if each Borrower had paid the aggregate Obligations satisfied by such Guarantor Payments in the same proportion that such Borrower’s Allocable Amount bore to the total Allocable Amounts of all Borrowers, then such Borrower shall be entitled to receive contribution and indemnification payments from, and to be reimbursed by, each other Borrower for the amount of such excess, ratably based on their respective Allocable Amounts in effect immediately prior to such Guarantor Payment. The “Allocable Amount” for any Borrower shall be the maximum amount that could then be recovered from such Borrower under this Section 5.11 without rendering such payment voidable under Section 548 of the Bankruptcy Code or under any applicable state fraudulent transfer or conveyance act, or similar statute or common law.

 

(c)    Section 5.11.3(a) shall not limit the liability of any Borrower to pay or guarantee Loans made directly or indirectly to it (including Loans advanced hereunder to any other Person and then re-loaned or otherwise transferred to, or for the benefit of, such Borrower), and all accrued interest, fees, expenses and other related Obligations with respect thereto, for which such Borrower shall be primarily liable for all purposes hereunder. Agent and Lenders shall have the right, at any time in their discretion, to condition Loans upon a separate calculation of borrowing availability for each Borrower and to restrict the disbursement and use of Loans to a Borrower based on that calculation.

 

(d)    Each Obligor that is a Qualified ECP when its guaranty of or grant of Lien as security for a Swap Obligation becomes effective hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide funds or other support to each Specified Obligor with respect to such Swap Obligation as may be needed by such Specified Obligor from time to time to honor all of its obligations under the Loan Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP’s obligations and undertakings under this Section 5.11 voidable under any applicable fraudulent transfer or conveyance act). The obligations and undertakings of each Qualified ECP under this Section shall remain in full force and effect until Full Payment of all Obligations. Each Obligor intends this Section to constitute, and this Section shall be deemed to constitute, a guarantee of the obligations of, and a “keepwell, support or other agreement” for the benefit of, each Obligor for all purposes of the Commodity Exchange Act.

 

5.11.4    Joint Enterprise. Each Borrower has requested that Agent and Lenders make this credit facility available to Borrowers on a combined basis, in order to finance Borrowers’ business most efficiently and economically. Borrowers’ business is a mutual and collective enterprise, and the successful operation of each Borrower is dependent upon the successful performance of the integrated group. Borrowers believe that consolidation of their credit facility will enhance the borrowing power of each Borrower and ease administration of the facility, all to their mutual advantage. Borrowers acknowledge that Agent’s and Lenders’ willingness to extend credit and to administer the Collateral on a combined basis hereunder is done solely as an accommodation to Borrowers and at Borrowers’ request.

 

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5.11.5    Subordination. Each Borrower hereby subordinates any claims, including any rights at law or in equity to payment, subrogation, reimbursement, exoneration, contribution, indemnification or set off, that it may have at any time against any other Obligor, howsoever arising, to the Full Payment of its Obligations.

 

SECTION 6.    CONDITIONS PRECEDENT

 

6.1      Conditions to Closing and Boarding. In addition to the conditions set forth in Section 6.2 and Section 6.3, Lenders shall not be required to fund any requested Loan or otherwise extend credit to Borrowers hereunder, until the date (“Closing Date”) that each of the following conditions has been satisfied:

 

(a)    Borrowers shall deliver to Agent all Leases in respect of the Eligible Leasing Real Property listed on the Closing Date Borrowing Base Report signed by the landlord and tenant thereunder, which shall be satisfactory to Agent in form and substance;

 

(b)    Each of this Agreement, each Guaranty, the Pledge and Security Agreement, each Deposit Account Control Agreement with respect to each Operating Account shall have been duly executed and delivered to Agent by each of the signatories thereto.

 

(c)    Agent shall have received UCC and Lien searches and other evidence satisfactory to Agent that such Liens are the only Liens upon the Collateral, except Permitted Liens, and copies for filing of UCC‐1 financing statements in form and substance satisfactory to Agent the filing of which are necessary to perfect its Liens in the Collateral which can be perfected by the filing thereof.

 

(d)    Agent shall have received duly executed agreements establishing each Operating Account and related lockbox, in form and substance, satisfactory to Agent.

 

(e)    Agent shall have received certificates, in form and substance satisfactory to it, from a knowledgeable Senior Officer of the Borrower Agent certifying that, after giving effect to the initial Loans and transactions hereunder, (i) the Obligors, taken as a whole, are Solvent; (ii) no Default or Event of Default exists; and (iii) the representations and warranties set forth in Section 9 are true and correct.

 

(f)    Agent shall have received a certificate of a duly authorized officer of each Obligor, certifying (i) that attached copies of such Obligor’s Organic Documents are true and complete, and in full force and effect, without amendment except as shown; (ii) that an attached copy of resolutions authorizing execution and delivery of the Loan Documents is true and complete, and that such resolutions are in full force and effect, were duly adopted, have not been amended, modified or revoked, and constitute all resolutions adopted with respect to this credit facility; and (iii) to the title, name and signature of each Person authorized to sign the Loan Documents. Agent may conclusively rely on this certificate until it is otherwise notified by the applicable Obligor in writing.

 

(g)    Agent shall have received a written opinion of counsels to the Obligors (including Hunton Andrews Kurth LLP) in form and substance reasonably satisfactory to Agent.

 

(h)    Agent shall have received copies of the charter documents of each Obligor, certified by the Secretary of State or other appropriate official of such Obligor’s jurisdiction of organization. Agent shall have received good standing certificates for each Obligor, issued by the Secretary of State or other appropriate official of such Obligor’s jurisdiction of organization and each jurisdiction where such Obligor’s conduct of business or ownership of Property necessitates qualification.

 

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(i)    Agent shall have completed its business, financial and legal due diligence of Obligors, including a roll-forward of its previous field examination, with results satisfactory to Agent. No material adverse change in the financial condition of any Obligor or in the quality, quantity or value of any Collateral shall have occurred since December 31, 2021.

 

(j)    Borrowers shall have paid all fees and expenses to be paid to Agent and Lenders on the Closing Date.

 

(k)    Agent and Lenders shall have received the documentation and other information so requested in connection with applicable “know your customer” and Anti-Terrorism Laws, rules and regulations, including the Patriot Act;

 

(l)    If any Borrower qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, such Borrower must deliver a Beneficial Ownership Certification in relation to such Borrower;

 

(i)    All other agreements, documents and/or exhibits which may be required, in Agent’s and each such Lenders’ judgment, to assure compliance with the requirements of this Agreement and the other Loan Documents.

 

6.2      Conditions Precedent to the Initial Advance. Agent and Lenders will make the initial advance only after the following conditions precedent are satisfied or waived as determined by Agent and Lenders:

 

(a)    Agent shall have received copies of policies or certificates of insurance for the insurance policies carried by Borrowers, all in compliance, in all material respects, with the Loan Documents.

 

(b)    Agent shall have received a Borrowing Base Report as of the date of the initial advance.

 

(c)    Borrowers must provide to Agent, in form and substance reasonably acceptable to Agent, the Security Instruments in respect of the Eligible Leasing Real Property set forth in the Borrowing Base Report dated as of the date of the initial advance.

 

(d)    Borrowers must provide to Agent, in form and substance reasonably acceptable to Agent, the Environmental Reports relating to each of the Eligible Leasing Real Properties, addressed to and actually received by the Obligors. Borrowers must also provide copies of all environmental documents prepared, adopted, certified or filed by or with any Governmental Authority in connection with the Eligible Leasing Real Property, including any initial study or environmental impact report, prepared, adopted, certified or filed by or with any Governmental Authority.

 

(e)    Agent must have received evidence that the Eligible Leasing Real Property is subject to no prior Lien, excepting only Permitted Liens; and

 

(f)    Agent has received subordination, nondisturbance and attornments executed by the relevant Obligors with respect to the Leases relating to the Eligible Leasing Real Property set forth in the Borrowing Base Report dated as of the date of the initial advance, in form and substance satisfactory to Agent.

 

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6.3      Conditions Precedent to All Credit Extensions. Agent and Lenders shall in no event be required to make any Loan hereunder, if the following conditions are not satisfied on such date and upon giving effect thereto:

 

(a)    No Default or Event of Default exists;

 

(b)    The representations and warranties of each Obligor in the Loan Documents are true and correct in all material respects (except for representations and warranties that relate solely to an earlier date);

 

(c)    All conditions precedent in any Loan Document are satisfied;

 

(d)    No event has occurred or circumstance exists that has or would reasonably be expected to have a Material Adverse Effect; and

 

(e)    As of the date immediately prior to an advance and after giving effect to an advance, the Loan does not result in Overadvance.

 

Each request (or deemed request) by a Borrower for any credit extension shall constitute a representation by Borrowers that the foregoing conditions are satisfied on the date of such request and on the date of the credit extension. As an additional condition to a credit extension, Agent may request any other information, certification, document, instrument or agreement as it deems appropriate.

 

SECTION 7.    COLLATERAL

 

7.1      Grant of Security Interest. To secure the prompt payment and performance of its Obligations, each Borrower hereby grants to Agent, for the benefit of Secured Parties, a continuing security interest in and Lien upon the following personal Property of such Borrower whether now owned or hereafter acquired, and wherever located:

 

(a)    all Operating Accounts;

 

(b)    All Equity Interests representing an ownership interest in any Subsidiary Guarantor;

 

(c)    all accessions to, substitutions for, and all replacements, products, and cash and non-cash proceeds of each of the foregoing clauses; and

 

(d)    all books and records pertaining to the foregoing.

 

7.2      Certain After-Acquired Collateral. Borrowers shall promptly notify Agent in writing if, after the Closing Date, any Borrower obtains any interest in any Collateral consisting of Operating Accounts or Equity Interest in a Subsidiary Guarantor and, upon Agent’s reasonable request, shall promptly take such actions as Agent deems appropriate to effect Agent’s duly perfected, first priority Lien upon such Collateral (subject to Permitted Liens), including obtaining any appropriate possession or control agreement. If any Collateral is in the possession of a third party, at Agent’s request, Borrowers shall obtain an acknowledgment that such third party holds the Collateral for the benefit of Agent.

 

7.3    Limitations. The Lien on Collateral granted hereunder is given as security only and shall not subject Agent or any Lender to, or in any way modify, any obligation or liability of Borrowers relating to any Collateral.

 

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7.4      Further Assurances. All Liens granted to Agent under the Loan Documents are for the benefit of Secured Parties. Promptly upon request, Borrowers shall deliver such instruments and agreements, and shall take such actions, as Agent deems appropriate under Applicable Law to evidence or perfect its Lien on any Collateral, or otherwise to give effect to the intent of this Agreement. Each Borrower authorizes Agent to file any financing statement and ratifies any action taken by Agent before the Closing Date to effect or perfect its Lien on any Collateral.

 

SECTION 8.    COLLATERAL ADMINISTRATION

 

8.1      Borrowing Base Reports. Within 30 days of the end of each month, Borrowers shall deliver to Agent (and Agent shall promptly deliver same to Lenders) a Borrowing Base Report as of the close of business of the previous month. All information (including calculation of Availability) in a Borrowing Base Report shall be certified by Borrowers. Upon notice to the Borrower Agent, Agent may from time to time adjust such report to the extent any information or calculation set forth therein does not comply with this Agreement.

 

8.2      Deposit Accounts. Schedule 8.2 shows all Operating Accounts maintained by Borrowers. Each Borrower shall take all actions necessary to establish Agent’s first priority Lien on each Operating Account. An Obligor shall be the sole account holder(s) of each Operating Account and shall not allow any Person (other than Agent and the depository bank) to have control over their Operating Accounts or any Property deposited therein. Borrowers shall promptly notify Agent of any opening or closing of an Operating Account, and with the consent of Agent, will amend Schedule 8.2 to reflect same.

 

8.3      Eligible Leasing Real Property.

 

8.3.1    Records and Schedules of Eligible Leasing Real Property . Each Borrower must, and must cause each Subsidiary Guarantor to, set up and maintain accurate and complete books, accounts and records pertaining to each Leasing Real Property in a manner reasonably acceptable to Agent, and the location of such books and records and the books and records described in clause (b) of Section 7.1 is set forth on Schedule 8.3.1. Each Borrower will, and will cause each Subsidiary Guarantor to, subject (unless a Default or Event of Default exists) to reasonable notice and normal business hours, to permit representatives of Agent to have free access to and to inspect and copy such books, records and contracts of each Borrower and Subsidiary Guarantor and, to the extent the relevant Obligor is permitted under the relevant Lease to so inspect, to inspect the Eligible Leasing Real Property and to discuss each Borrower’s and each Subsidiary Guarantor’s affairs, finances and accounts with any of its principal officers, all at such times and as often as may reasonably be requested. Any such inspection by Agent is for the sole benefit and protection of Agent, and Agent has no obligation to disclose the results thereof to each Borrower, each Subsidiary Guarantor, or to any third party.

 

8.4      Changes in Borrowing Base Assets. Each Borrower shall have the ability to add new Leasing Real Property (each a “Additional Collateral Property”), subject to Agent’s approval, and upon the satisfaction of each of the following conditions precedent.

 

8.4.1    Additions to Borrowing Base. Each Borrower shall have the ability to add new Leasing Real Property at any time upon the satisfaction of each of the following conditions precedent:

 

(a)    Such Additional Collateral Property shall constitute Eligible Leasing Real Property as of the Addition Effective Date (as defined below);

 

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(b)    Borrowers shall provide Agent with ten (10) Business Days written notice prior notice of the proposed addition (an “Addition Notice”), and such notice shall specify the effective date of such addition (the “Addition Effective Date”) of such Borrower’s desire to add Additional Collateral Property and include: (i) the identity of the tenant of the lease with respect to such Additional Collateral Property, (ii) a complete and correct copy of the Lease with respect to such Additional Collateral Property signed by the landlord and tenant thereunder, (iii) a certification by the Borrower Agent that amounts owing under the Lease with respect to such Additional Collateral Property are not more than thirty (30) days past due under the terms thereof, (iv) the results of a title search performed not more than 30 days prior to the Addition Effective Date showing that such Additional Collateral Property is not subject to any prior Liens other than Permitted Liens, (v) Environmental Reports with respect to such Additional Collateral Property addressed to and actually received by the applicable Obligor, (vi) copies of all environmental documents prepared, adopted, certified or filed by or with any Governmental Authority with respect to Additional Collateral Property, including any initial study or environmental impact report, prepared, adopted, certified or filed by or with any Governmental Authority, (vii) the deed for the applicable Additional Collateral Property, and (viii) copies of all applicable licenses required for the tenant to operate on Additional Collateral Property;

 

(c)    the Agent shall have received a Borrowing Base Report as of the Addition Effective Date which shall include any Leasing Real Property being added to the Borrowing Base on the Removal Effective Date, and exclude any Leasing Real Properties being removed from the Borrowing Base on the Addition Effective Date and;

 

(d)    As of the Addition Effective Date, the applicable Additional Collateral Property must be vested as a fee simple interest, free of liens and encumbrances (other than Permitted Liens), in the name of an Obligor;

 

(e)    the Agent shall have received on or before the Addition Effective Date a duly executed original of a Security Instrument in recordable form covering such Additional Collateral Property

 

(f)    the applicable Obligor shall execute and deliver to Agent on or before the Addition Effective Date an environmental indemnity agreement substantially in the form of the Indemnity and completed in a manner reasonably satisfactory to the Agent with respect to such Additional Collateral Property;

 

(g)    for each Additional Collateral Property, the Borrowers shall provide evidence on or before the Addition Effective Date of compliance with Section 10.1.18 in respect of such Additional Collateral Property;

 

(h)    if the Subsidiary that owns such Additional Collateral Property is not a Subsidiary Guarantor at the time of the Addition Notice, such Subsidiary shall become a Subsidiary Guarantor under the Loan Documents and deliver a Guaranty, Pledge and Security Agreement and other documents reasonably requested by Agent prior to the Addition Effective Date; and

 

(i)    If the Additional Collateral Property is to be added on or after the Borrowing Base Remargining Date, Agent shall have received, reviewed and approved a written appraisal for the Additional Collateral Property prepared in conformance with the Lenders’ requirements, confirming to the satisfaction of Agent that Obligors will comply with the Loan to Value Requirements after such property is added to the Borrowing Base.

 

8.4.2    Removal of Leasing Real Property from the Borrowing Base.

 

Each Borrower may remove Leasing Real Property from the Borrowing Base or release a Security Instrument on any Business Day upon satisfaction of the following conditions (the “Removal Conditions”):

 

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(a)    Borrowers shall provide Agent with at least five (5) Business Days’ prior notice of the proposed removal or release (a “Removal Notice”), and such notice shall specify the effective date of such removal (the “Removal Effective Date”) and include a description of such Leasing Real Property;

 

(b)    the Agent shall have received a Borrowing Base Report as of the Removal Effective Date which shall exclude such Leasing Real Property and any other Leasing Real Properties being removed from the Borrowing Base on the Removal Effective Date and shall include any Leasing Real Property being added to the Borrowing Base on the Removal Effective Date;

 

(c)    No Default or Event of Default exists;

 

(d)    No Overadvance exists after giving effect to (i) the exclusion of such Leasing Real Property and any other Leasing Real Properties being removed from the Borrowing Base on the Removal Effective Date and (ii) the addition of any Leasing Real Property being added to the Borrowing Base on the Removal Effective Date; and

 

(e)     The representations and warranties of each Obligor in the Loan Documents shall be true and correct (except for representations and warranties that relate solely to an earlier date).

 

Upon the satisfaction of the Removal Conditions with respect to any Leasing Real Property, the Agent will, at the applicable Obligor’s expense and without any representations, warranties or recourse of any kind whatsoever, execute and deliver to such Obligor such documents as such Obligor shall reasonably request to terminate and evidence the termination of (i) the Security Instrument covering such Leasing Real Property, and (ii) the security interest granted by the Borrowers hereunder in the Equity Interests in the Subsidiary Guarantor that owns such Leasing Real Property and the security interest granted in the other assets of the Subsidiary Guarantor in favor of the Agent pursuant to its respective Guaranty, if the Subsidiary Guarantor that owns such Leasing Real Property ceases to satisfy the definition of Subsidiary Guarantor after giving effect to the removal of Leasing Real Property from the Borrowing Base, and in each case, deliver to the Borrower Agent all tangible Collateral, if any, being released from the Agent’s security interest that had been previously delivered by an Obligor to the Agent.

 

8.5      Security Instrument. Each Borrower shall cause a Security Instrument (or amendment thereto) to be executed and delivered to the Agent that encumbers any Eligible Leasing Real Property acquired by an Obligor after the Closing Date. Any such Security Instrument (including without limitation the Security Instrument delivered on or before the Closing Date) shall be retained by Agent and not recorded unless an Event of Default occurs under this Agreement or any other Loan Document. In the event of any such recordation of any such Security Instrument, (i) at the Agent’s option and sole discretion, Agent may obtain updated environmental reports, environmental impact reports, entitlement information and any other reports and other documents and information Agent deems necessary in connection with the applicable real property, in each case at the sole expense of the Borrowers.

 

8.6      General Provisions.

 

8.6.1    Defense of Title. Each Borrower shall defend its title to Collateral (except in connection with asset transfers permitted by the Loan Documents) and Agent’s Liens therein against all Persons, claims and demands, except Permitted Liens.

 

8.6.2    Patriot Act . Promptly following any request therefor, Borrowers shall provide information and documentation reasonably requested by the Agent or any Lender for purposes of compliance with applicable “know your customer” requirements under the Patriot Act, the Beneficial Ownership Regulation or other applicable Anti-Terrorism Laws, including but not limited to a Beneficial Ownership Certification form reasonably acceptable to Agent or Lender.

 

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8.7      Power of Attorney. Each Borrower hereby irrevocably constitutes and appoints Agent (and all Persons designated by Agent) as such Borrower’s true and lawful attorney (and agent-in-fact) for the purposes provided in this Section. Agent, or Agent’s designee, may, without notice and in either its or a Borrower’s name, but at the cost and expense of Borrowers:

 

(a)    Endorse a Borrower’s name on any Payment Item or other proceeds of Collateral (including Lease payments) that come into Agent’s possession or control; and

 

(b)    During an Event of Default, (i) collect, liquidate and receive balances in any Operating Accounts, and take control, in any manner, of proceeds of Collateral; (ii) receive, open and dispose of mail addressed to a Borrower, and notify postal authorities to deliver any such mail to an address designated by Agent; (iii) use information contained in any data processing, electronic or information systems relating to Collateral; and (iv) take all other actions as Agent deems appropriate to fulfill any Borrower’s obligations under the Loan Documents.

 

SECTION 9.    REPRESENTATIONS AND WARRANTIES

 

9.1      General Representations and Warranties. To induce Agent and Lenders to enter into this Agreement and to make available the Commitments and Loans, each Borrower represents and warrants that:

 

9.1.1    Organization and Qualification. Each Obligor is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization. Each Borrower, Guarantor and Subsidiary is duly qualified, authorized to do business and in good standing as a foreign corporation in each jurisdiction where failure to be so qualified could reasonably be expected to have a Material Adverse Effect. No Obligor is an EEA Financial Institution.

 

9.1.2    Power and Authority. Each Obligor is duly authorized to execute, deliver and perform its Loan Documents. The execution, delivery and performance of the Loan Documents have been duly authorized by all necessary action, and do not (a) require any consent or approval of any holders of Equity Interests of any Obligor, except those already obtained; (b) contravene the Organic Documents of any Obligor; (c) violate or cause a default under any Applicable Law or Material Contract; (d) result in or require imposition of a Lien (except pursuant to the Loan Documents and other than Permitted Liens) on any Property constituting Collateral, or (e) result in a breach of or constitute a default under any indenture or loan or credit agreement or any other agreement, lease or instrument to which such Obligor is a party or by which it or its properties may be bound or affected where any such breach or default could individually or in the aggregate reasonably be expected to have a Material Adverse Effect. Each Obligor has all power, authority, permits, consents, authorizations and licenses necessary to carry on its business, except to the extent that any failure to have any such power, authority, permit, consent, authorization or license could not individually or in the aggregate reasonably be expected to have a Material Adverse Effect.

 

9.1.3    Enforceability. Each Loan Document is a legal, valid and binding obligation of each Obligor party thereto, enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally.

 

9.1.4    Capital Structure. Schedule 9.1.4 shows, as of the Closing Date for each Borrower and Subsidiary, its name, jurisdiction of organization, authorized and issued Equity Interests, holders of its Equity Interests, and agreements binding on such holders with respect to such Equity Interests. Except as disclosed on Schedule 9.1.4, in the five years preceding the Closing Date, no Borrower or Subsidiary has acquired any substantial assets from any other Person nor been the surviving entity in a merger or combination. Each Borrower has good title to its Equity Interests in the Subsidiary Guarantors, subject only to Agent’s Lien, and all such Equity Interests are duly issued, fully paid and non-assessable. There are no outstanding purchase options, warrants, subscription rights, agreements to issue or sell, convertible interests, phantom rights or powers of attorney relating to Equity Interests of any Subsidiary Guarantor.

 

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9.1.5    Title to Properties; Priority of Liens. Each Borrower and Guarantor Subsidiary has good and marketable title to (or valid leasehold interests in) the Eligible Leasing Real Property described in the Security Instruments delivered to Agent on or before the initial advance hereunder, subject to no lien, charge, mortgage, deed of trust, restriction or encumbrance, except Permitted Liens. There are no construction, mechanics’, materialman’s or other similar Liens which have been filed for work, labor or materials affecting the Leasing Real Properties which are or may be Liens prior to, or equal or subordinate to, the Liens created by the Loan Documents.

 

9.1.6    Reserved.

 

9.1.7    Financial Statements. The consolidated balance sheet, and related statements of income, cash flow and shareholders’ equity, of Parent and its Subsidiaries that have been and are hereafter delivered to Agent and Lenders, are prepared in accordance with GAAP, and fairly present the financial positions and results of operations of Borrowers and Subsidiaries at the dates and for the periods indicated. All projections delivered from time to time to Agent and Lenders have been prepared in good faith, based on reasonable assumptions in light of the circumstances at such time. Since December 31, 2021, there has been no change in the condition, financial or otherwise, of any Borrower or Subsidiary that could reasonably be expected to have a Material Adverse Effect. All factual information set forth in any notes to such financial statements taken as a whole (other than forward-looking information and projections and information of a general economic nature and general information about Obligors’ industry) is true and accurate, in all material respects, on the date of such financial statements and is not incomplete by omitting to state any fact necessary to make such information (taken as a whole) not misleading in any material respect at such time in light of the circumstances under which such information was provided.

 

9.1.8    [Reserved].

 

9.1.9    Taxes.

 

(a)    Each Borrower, Guarantor and Subsidiary has filed all federal, state and local tax returns and other reports that it is required by law to file, and has paid, or made provision for the payment of, all Taxes upon it, its income and its Properties that are due and payable, except to the extent being Properly Contested.

 

(b)    All transfer taxes, deed stamps, intangible taxes or other amounts in the nature of transfer taxes due and owing under Applicable Law in connection with the transfer of the Eligible Leasing Real Property to the applicable Obligor have been paid or are being paid simultaneously herewith. All taxes and governmental assessments due and owing in respect of the Eligible Leasing Real Property have been paid, or an escrow of funds in an amount sufficient to cover such payments has been established hereunder. To each Borrower’s knowledge, other than Permitted Liens, there are no pending or proposed special or other assessments for public improvements or otherwise affecting the Eligible Leasing Real Property, nor are there any contemplated improvements to the Eligible Leasing Real Property that would reasonably be expected to result in such special or other assessments and which, in each case, would reasonably be expected to result in a Material Adverse Effect.

 

9.1.10    Brokers. There are no brokerage commissions, finder’s fees or investment banking fees payable in connection with the financing transactions contemplated by the Loan Documents.

 

9.1.11    [Reserved].

 

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9.1.12    Governmental Approvals. Each Borrower and Subsidiary has, is in compliance in all material respects with, and is in good standing with respect to, all Governmental Approvals necessary to conduct its business and to own, lease and operate its Properties, except to the extent that any failure to have any Governmental Approval could not individually or in the aggregate reasonably be expected to have a Material Adverse Effect. All necessary import, export or other licenses, permits or certificates for the import or handling of any goods or other Collateral have been procured and are in effect, and Borrowers and Subsidiaries have complied with all foreign and domestic laws with respect to the shipment and importation of any goods or Collateral, except where noncompliance could not reasonably be expected to have a Material Adverse Effect.

 

9.1.13    Compliance with Laws. Each Borrower and Subsidiary has duly complied, and its Properties and business operations are in compliance, in all material respects with all Applicable Law, except where noncompliance could not reasonably be expected to have a Material Adverse Effect. There have been no citations, notices or orders of noncompliance issued to any Borrower or Subsidiary under any Applicable Law that could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.

 

9.1.14    Compliance with Environmental Laws. Except as specifically disclosed in the Environmental Report or any other written document provided by Borrower pursuant to Sections 6.2(b) or 8.4.1(b)(v), in each case relating to an Eligible Leasing Real Property, each Borrower and each Subsidiary Guarantor: (a) has not received any Environmental Notice or otherwise learned of any Environmental Liability relating to the Leasing Real Property and the Equipment arising in connection with (i) any non-compliance with or violation of the requirements of any Environmental Law, or (ii) the Environmental Release or threatened Environmental Release of any Hazardous Substance into the environment that would reasonably be expected to have a Material Adverse Effect; (b) has no knowledge of any threatened or actual liability in connection with the Environmental Release or threatened Environmental Release of any Hazardous Substance into the Environment relating to the Leasing Real Property or the Equipment that would reasonably be expected to have a Material Adverse Effect; and (c) has not received any Environmental Notice or otherwise learned of any federal or state investigation evaluating whether any remedial action is needed to respond to an Environmental Release or threatened Environmental Release of any Hazardous Substances into the Environment. No Borrower has received any notice of any violation of any Environmental Laws relating to any Eligible Leasing Real Property and Equipment that could reasonably be expected to have a Material Adverse Effect.

 

9.1.15    Burdensome Contracts. No Borrower or Subsidiary Guarantor is a party or subject to any contract, agreement or charter restriction that could reasonably be expected to have a Material Adverse Effect. No Borrower or Subsidiary Guarantor is party or subject to any Restrictive Agreement, except as shown on Schedule 9.1.15. No such Restrictive Agreement prohibits the execution, delivery or performance of any Loan Document by an Obligor.

 

9.1.16    Litigation. Except as shown on Schedule 9.1.16, there are no proceedings or investigations pending or, to any Borrower’s knowledge, threatened against any Borrower, Guarantor or Subsidiary, or any of their businesses, operations, Properties, prospects or conditions, or affecting any of the Eligible Leasing Real Property or their respective other assets, if any, that (a) relate to any Loan Documents or transactions contemplated thereby; or (b) could reasonably be expected to have a Material Adverse Effect if determined adversely to any Borrower or Guarantor. No Borrower or Guarantor is in default with respect to any order, injunction or judgment of any Governmental Authority.

 

9.1.17    No Defaults. No event or circumstance has occurred or exists that constitutes a Default or Event of Default. No Borrower, Guarantor or Subsidiary Guarantor is in default, and no event or circumstance has occurred or exists that with the passage of time or giving of notice would constitute a default, under any contract, except any such default, event or circumstance could not reasonably be expected to have a Material Adverse Effect. No Borrower or Subsidiary is obligated for the payment of any commission or other fee with respect to the purchase of any Eligible Leasing Real Property, or if such Borrower or Subsidiary is so obligated, such commission or other fee has been paid in full.

 

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9.1.18    ERISA. No Obligor, none of their Subsidiaries, nor any of their ERISA Affiliates maintains or contributes to any Pension Plan, Multiemployer Plan, Multiple Employer Plan or Foreign Plan.

 

9.1.19    [Reserved].

 

9.1.20    Labor Relations. Except as described on Schedule 9.1.20, no Borrower or Subsidiary is party to or bound by any collective bargaining agreement, management agreement or consulting agreement. There are no material grievances, disputes or controversies with any union or other organization of any Borrower’s or Subsidiary’s employees, or, to any Borrower’s knowledge, any asserted or threatened strikes, work stoppages or demands for collective bargaining.

 

9.1.21    [Reserved].

 

9.1.22    Not a Regulated Entity. No Obligor is (a) an “investment company” or a “person directly or indirectly controlled by or acting on behalf of an investment company” within the meaning of the Investment Company Act of 1940; or (b) subject to regulation under the Federal Power Act, the Interstate Commerce Act, any public utilities code or any other Applicable Law regarding its authority to incur Debt.

 

9.1.23    Margin Stock. No Borrower or Subsidiary is engaged, principally or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any Margin Stock. No Loan proceeds will be used by Borrowers to purchase or carry, or to reduce or refinance any Debt incurred to purchase or carry, any Margin Stock or for any related purpose governed by Regulations T, U or X of the Board of Governors.

 

9.1.24    OFAC. No Borrower, Subsidiary or any director or officer thereof, or, to Borrower Agent’s knowledge, any employee, agent, affiliate or representative thereof, is or is owned or controlled by any individual or entity that is currently the subject or target of any Sanction or is located, organized or resident in a Designated Jurisdiction; provided, that if Borrower Agent obtains knowledge that any employee, agent or representative is or is owned or controlled by any individual or entity that is currently the subject or target of any Sanction or is located, organized or resident in a Designated Jurisdiction, the Borrower will immediately terminate its employee, agency or representative relationship, as applicable.

 

9.1.25     Anti-Corruption Laws. Each Borrower and Subsidiary has conducted its business in accordance with applicable Anti-Corruption Laws and has instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.

 

9.1.26    [Reserved].

 

9.1.27    Condemnation. No condemnation proceeding or moratorium is pending or threatened against the Eligible Leasing Real Property.

 

9.1.28    [Reserved].

 

9.1.29    Closing Date Borrowing Base Report. The Borrowing Base Report attached hereto as Exhibit C and made a part hereof by this reference (the “Closing Date Borrowing Base Report”), reflects as of the date of the initial advance, the Eligible Leasing Real Property, the relevant Subsidiaries that own each such parcel of Eligible Leasing Real Property, and the tenant in respect of each parcel of Eligible Leasing Real Property.

 

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9.1.30    Unregistered Securities. Each Subsidiary Guarantor has not: (a) issued any unregistered securities in violation of the registration requirements of Section 5 of the Securities Act of 1933, as amended, or any other law; or (b) violated any rule, regulation or requirement under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, in either case where the effect of such violation would constitute a Material Adverse Effect as to such Subsidiary Guarantor.

 

9.1.31    Leases. Borrowers’ have delivered Agent true, correct and complete copies of all Leases currently affecting the Eligible Leasing Real Property and there are no oral agreements with respect to any such Lease. Each Lease constitutes the legal, valid and binding obligation of an Obligor and the lessee thereunder, is in full force and effect and is enforceable in accordance with its terms. There are no defaults with respect to any such Lease that would permit any party thereto to terminate such Lease.

 

9.1.32    Beneficial Ownership. The information included in the Beneficial Ownership Certification is true and correct in all respects.

 

9.2     Complete Disclosure. All factual information taken as a whole (other than forward-looking information and projections and information of a general economic nature and general information about Obligors’ industry furnished by or on behalf of an Obligor in writing to Agent or any Lender (including all information contained in the Schedules hereto or in the other Loan Documents)) for purposes of or in connection with this Agreement or the other Loan Documents, and all other such factual information taken as a whole (other than forward-looking information and projections and information of a general economic nature and general information about Obligors’ industry) hereafter furnished by or on behalf of an Obligor in writing to Agent or any Lender will be, true and accurate, in all material respects, on the date as of which such information is dated or certified and not incomplete by omitting to state any fact necessary to make such information (taken as a whole) not misleading in any material respect at such time in light of the circumstances under which such information was provided. The Obligors, taken as a whole, are Solvent.

 

SECTION 10.    COVENANTS AND CONTINUING AGREEMENTS

 

10.1    Affirmative Covenants. As long as any Commitments or Obligations are outstanding, each Borrower shall, and shall cause each Subsidiary Guarantor to:

 

10.1.1    Inspections; Appraisals.

 

(a)    Permit Agent from time to time, subject (unless a Default or Event of Default exists) to reasonable notice and normal business hours, to visit, inspect or conduct an appraisal, to the extent, in the case of any Leasing Real Property, the relevant Obligor is permitted to do so under the relevant Lease, visit and inspect, the Properties of any Borrower or Subsidiary Guarantor, inspect, audit and make extracts from any Borrower’s or Subsidiary Guarantor’s books and records, and discuss with its officers, employees, agents, advisors and independent accountants such Borrower’s or Subsidiary Guarantor’s business, financial condition, assets, prospects and results of operations. Further each Borrower agrees that Agent and other consultants as Agent may require and their representatives will have, to the extent the relevant Obligor has such access under the relevant Lease, access to each Eligible Leasing Real Property at all reasonable times and will have the right, to the extent the relevant Obligor has such right under the relevant Lease, to enter each such Eligible Leasing Real Property and to conduct such inspections thereof as they deem necessary or desirable for the protection of Lenders’ interests. Lenders may participate in any such visit or inspection, at their own expense. Secured Parties shall have no duty to any Obligor to make any inspection, nor to share any results of any inspection, appraisal or report with any Obligor. Borrowers acknowledge that all inspections, appraisals and reports are prepared by Agent and Lenders for their purposes, and Borrowers shall not be entitled to rely upon them.

 

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(b)    Reimburse Agent for (i) all its reasonable documented out-of-pocket charges, costs and expenses in connection with the one examination per Loan Year of Obligors’ books and records or any other financial or Collateral matters as it deems appropriate and, during the continuance of any Default or Event of Default, any other examination of Obligors’ books and records or any other financial or Collateral matters as it deems appropriate; and (ii) during the continuance of any Default or Event of Default, appraisals of any or all of the Leasing Real Properties included in the Collateral prepared by an appraiser acceptable to Agent are initiated during a Default or Event of Default, all charges, costs and expenses relating thereto shall be reimbursed by Borrowers without regard to such limits. Borrowers shall pay Agent’s then standard charges for examination activities, including charges for its internal examination and appraisal groups, as well as the charges of any third party used for such purposes.

 

10.1.2    Financial and Other Information. Keep adequate records and books of account with respect to its business activities, in which proper entries are made in accordance with GAAP reflecting all financial transactions; and furnish to Agent and Lenders (provided that the Parent’s public filing of any such financial statements or reports with the SEC shall constitute delivery of such financial statements or reports to the Agent and Lenders):

 

(a)    as soon as available, and in any event within 90 days after the close of each Fiscal Year, a consolidated balance sheet of the Parent and its Subsidiaries as of the end of such Fiscal Year and the related consolidated statements of income, cash flow and shareholders equity of the Parent for such Fiscal Year, which consolidated statements shall be audited and certified (without qualification) by a firm of independent certified public accountants of recognized standing selected by Parent and acceptable to Agent, and shall set forth in comparative form corresponding figures for the preceding Fiscal Year;

 

(b)    as soon as available, and in any event within 45 days after the end of each calendar quarter, a compiled consolidated balance sheet of the Parent and its Subsidiaries as of the end of such month and the related consolidated statements of income and cash flow of the Parent and its Subsidiaries for such month and for the portion of the Fiscal Year then elapsed, setting forth in comparative form corresponding figures for the preceding Fiscal Year and certified by the chief financial officer of Parent as prepared in accordance with GAAP and fairly presenting the financial position and results of operations for such month and period, subject to normal year-end adjustments and the absence of footnotes;

 

(c)    concurrently with delivery of financial statements under clauses (a) and (b) above, or more frequently if requested by Agent while a Default or Event of Default exists, a Compliance Certificate executed by the chief financial officer of Company;

 

(d)    [reserved];

 

(e)    not more than 90 days following the commencement of each calendar year, projections of Borrowers’ consolidated balance sheets, results of operations, cash flow and Availability for the next Fiscal Year, month by month;

 

(f)    as soon as available, and in any event within 10 days of the expiration of any State License (as such term is defined in the Rider) or any Local Regulatory Permit (as defined in the Rider), evidence of the renewal thereof in respect of any Eligible Leasing Real Property;

 

(g)    [Reserved];

 

(h)    [Reserved];

 

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(i)    within a reasonable period of time (taking into account the nature of the information and/or report requested, the degree of difficulty of obtaining such information or producing such report and such Obligor’s access to such information if held by or disclosure thereof is controlled by any Person other than an Obligor or Subsidiary thereof), such other reports and information (financial or otherwise) as Agent may reasonably request from time to time in respect of the Collateral or any Obligor’s financial condition or business to the extent such Obligor is not prohibited from disclosing such information to the Agent by the terms of any confidentiality agreement in effect between an Obligor and any other Person that is not an Affiliate of an Obligor, provided that in any such case, the Borrowers will use their commercially reasonable efforts to obtain approval to share such information with Agent, and after the Closing Date, Borrowers agree to use commercially reasonable efforts to not enter into confidentiality agreements with any Person that would prohibit Borrowers from disclosing the information described in this Section 10.1.2(i);

 

(j)    [Reserved];

 

(k)    [Reserved];

 

(l)    as soon as available, and in any event within 30 days of the end of each month, a Borrowing Base Report in form and substance acceptable to Agent calculating the Borrowing Base, certified by the CFO or other authorized individual, of Company;

 

(m)    [Reserved]; and

 

(n)    as soon as available, and in any event within 90 days of the end of each Fiscal Year, measured annually, financial reporting for tenants or at minimum property level financial reporting for all non-public tenants as required per the Lease in connection with any Eligible Leasing Real Property.

 

10.1.3    Notices. Notify Agent and Lenders in writing, promptly after a Borrower’s obtaining knowledge thereof, of any of the following that affects an Obligor: (a) the threat or commencement of any proceeding or investigation, whether or not covered by insurance, if an adverse determination could have a Material Adverse Effect; (b) any pending or threatened labor dispute, strike or walkout, or the expiration of any material labor contract; (c) any default under or termination of a Material Contract; (d) the occurrence of any Default or Event of Default; (e) any judgment in an amount exceeding $1,000,000; (f) the assertion of any Intellectual Property Claim, that could reasonably be expected to have a Material Adverse Effect; (g) any violation or asserted violation of any Applicable Law (including ERISA, OSHA, FLSA, or any Environmental Laws) that could reasonably be expected to have a Material Adverse Effect; (h) any Environmental Release by an Obligor or on any Eligible Leasing Real Property owned leased or occupied by an Obligor that could reasonably be expected to have a material Adverse Effect; or receipt of any Environmental Notice; (i) [reserved]; or (j) the discharge of or any withdrawal or resignation by Borrowers’ independent accountants that audit the Borrower’s financial statements.

 

10.1.4    [Reserved].

 

10.1.5    Compliance with Laws. Comply with all Applicable Laws, including ERISA, Environmental Laws, FLSA, OSHA, Anti-Terrorism Laws, and laws regarding collection and payment of Taxes, and maintain all Governmental Approvals necessary to the ownership of its Properties or conduct of its business, unless failure to so comply (other than failure to comply with Anti-Terrorism Laws) or maintain could not reasonably be expected to have a Material Adverse Effect. Without limiting the generality of the foregoing, if any Environmental Release occurs at or on any Eligible Leasing Real Property that could reasonably be expected to have a Material Adverse Effect, it shall act promptly and diligently to investigate and report to Agent and all appropriate Governmental Authorities the extent of, and to make appropriate action to remediate such Environmental Release, whether or not directed to do so by any Governmental Authority.

 

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10.1.6    Taxes. Pay and discharge all Taxes prior to the date on which they become delinquent or penalties attach, unless such Taxes are being Properly Contested.

 

10.1.7    Insurance. In addition to the insurance required hereunder with respect to Collateral, maintain insurance with financially sound and reputable insurance companies, with respect to the Leasing Real Property and business of Borrowers and Subsidiary Guarantors of such type and in such amounts, and with such coverages and deductibles as are customary for companies similarly situated.

 

10.1.8    [Reserved].

 

10.1.9    [Reserved].

 

10.1.10    [Reserved].

 

10.1.11    Anti-Corruption Laws. Conduct its business in compliance in all material respects with applicable anti-corruption laws and maintain policies and procedures designed to promote and achieve compliance with such laws.

 

10.1.12    Responsibility for Improvements.

 

(a)    Each Borrower or applicable Subsidiary Guarantor must expeditiously complete and fully pay for the construction of the each Eligible Leasing Real Property in a good and workmanlike manner and in accordance with the plans therefor, and in compliance in all material respects with Applicable Law, and any covenants, conditions, restrictions and reservations applicable thereto, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

(b)    Each Borrower or applicable Guarantor Subsidiary must correct or cause to be corrected, within a time period required by Agent from time to time: (i) any defect in the improvements, (ii) any encroachment by any part of the improvements or any other structure located on the Eligible Leasing Real Property on any building line, easement, property line or restricted area if such defect or encroachment would constitute a breach of the Lease that would permit the Borrower or applicable Guarantor, as applicable, to terminate such Lease.

 

10.1.13    [Reserved].

 

10.1.14    Title to the Property. Each Borrower will warrant and defend the validity and priority of the Liens of the Security Instrument on the Eligible Leasing Real Property against the claims of all Persons whomsoever, subject only to Permitted Liens.

 

10.1.15    Use of Proceeds.

 

(a)    Subject to the terms and conditions of Section 2, each Obligor will not, and will not permit any of its Subsidiaries to, use the proceeds of any advance made hereunder for any purpose other than (a) on the Closing Date, to pay the fees, costs, and expenses incurred in connection with this Agreement, the other Loan Documents, and the transactions contemplated hereby and thereby, and (b) for any lawful purpose that is not prohibited by this Agreement or the other Loan Documents; provided that (x) no part of the proceeds of the Loans will be used to purchase or carry any such Margin Stock or to extend credit to others for the purpose of purchasing or carrying any such Margin Stock or for any purpose that violates the provisions of Regulation T, U or X of the Board of Governors, (y) no part of the proceeds of any Loan will be used, directly or indirectly, to make any payments to a Sanctioned Entity or a Sanctioned Person, to fund any investments, loans or contributions in, or otherwise make such proceeds available to, a Sanctioned Entity or a Sanctioned Person, to fund any operations, activities or business of a Sanctioned Entity or a Sanctioned Person, or in any other manner that would result in a violation of Sanctions by any Person, and (z) that no part of the proceeds of any Loan will be used, directly or indirectly, 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 Sanctions, Anti-Corruption Laws, anti-money laundering laws or Anti-Terrorism Laws.

 

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(b)    Each Borrower will not request any advance, and will not use, and each Borrower will ensure that its Subsidiaries and its or their respective directors, officers, employees and agents do not use, the proceeds of any advance 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. Each Borrower will not, directly or indirectly, use the proceeds of the advances, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person, (i) to fund any activities or business of or with any Person, or in any country or territory, that, at the time of such funding, is, or whose government is, the subject of Sanctions, or (ii) in any other manner that would result in a violation of Sanctions by any Person (including any Person participating in the advances, whether as underwriter, advisor, investor, or otherwise).

 

10.1.16    Subordination, nondisturbance and attornments.  At the request of the Agent to the Borrower Agent made following the occurrence and during the continuance of an Event of Default, Borrower Agent shall promptly, but in any event within 10 Business Days obtain and deliver to the Agent the countersignature by the applicable tenant for each such subordination, nondisturbance and attornments in respect of Eligible Leasing Real Property previously executed by an Obligor. 

 

10.1.17    Single Purpose Entity Provisions. Each Subsidiary Guarantors’ sole business purpose must be to own and operate the real property in which it holds a fee simple interest.

 

10.1.18    Leasing Real Property Accounts. Each Obligor must maintain all Eligible Leasing Real Property into which rents from tenants are paid with XXX.

 

10.1.19    Operating Accounts. During the term of the Loan, each Borrower will maintain the following accounts:

 

(a)    Operating Account. From and after the date that is 90 days after the Closing Date, each Borrower must at all times deposit, or cause to be deposited, in each case, promptly but in any event within two (2) Business Days of receipt thereof, all gross revenues from the Eligible Leasing Real Property into the Operating Account. If any Borrower or Subsidiary receives cash or Payment Items with respect to any Eligible Leasing Real Property, it shall hold same in trust for Agent and promptly into the applicable Operating Account pursuant to the terms of the preceding sentence. Withdrawals by any Borrower, or the applicable Subsidiary, from such Operating Account may be made if no Event of Default exists.

 

(b)    Security Agreement for Operating Accounts. Each Obligor will maintain with XXX each deposit account where proceeds from the Eligible Leasing Real Property are deposited. Each Borrower hereby grants to Agent, for the ratable benefit of the Lenders, a first lien security interest in each of the Operating Accounts, whether now existing or hereafter established, and all funds from time to time on deposit therein. Borrowers and each Guarantor Subsidiary (if applicable) shall obtain an agreement (in form and substance satisfactory to Agent) in respect of each Operating Account, establishing Agent’s control over and Lien in the applicable Operating Account. Each Borrower will maintain, and cause each Subsidiary Guarantor to maintain, each Operating Account free and clear of any claim, lien or other encumbrance other than the security interest granted to Agent hereunder and Permitted Liens. The parties acknowledge and agree that each of the Operating Accounts is a “deposit account” within the meaning of Section 9-104 of the UCC. Agent will at all times have “control” of the Operating Accounts and all assets now or hereafter credited thereto within the meaning of Section 9-106 of the UCC or Section 9-104(a) of the UCC for purposes of maintaining its first and prior perfected security interest therein.

 

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10.2    Negative Covenants. As long as any Commitments or Obligations are outstanding, each Borrower shall not, and shall cause each Subsidiary Guarantor not to:

 

10.2.1    Permitted Debt. Create, incur, guarantee or suffer to exist any Debt, except:

 

(a)    the Obligations;

 

(b)    Debt set forth on Schedule 10.2.1 including any Refinancing Debt as long as each Refinancing Condition is satisfied;

 

(c)    unsecured trade payables incurred in the ordinary course of business which (i) are not evidenced by a note, and (ii) are outstanding not more than ninety (90) days past the date incurred; and

 

(d)    solely in respect of Company, any other Debt.

 

10.2.2    Permitted Liens. Create or suffer to exist any Lien upon any of the Collateral, except the following (collectively, “Permitted Liens”):

 

(a)    Liens in favor of Agent;

 

(b)    Purchase Money Liens securing Purchase Money Debt;

 

(c)    Liens for Taxes not yet due or being Properly Contested;

 

(d)    statutory Liens (other than Liens for Taxes) arising in the ordinary course of business, but only if (i) payment of the obligations secured thereby is not yet due or is being Properly Contested, and (ii) such Liens do not materially impair the value or use of the Property or materially impair operation of the business of any Borrower or Subsidiary;

 

(e)    Liens arising by virtue of a judgment or judicial order against any Borrower or Subsidiary, or any Property of a Borrower or Subsidiary, that do not constitute an Event of Default under Section 11.1(g);

 

(f)    easements, rights-of-way, restrictions, covenants or other agreements of record, and other similar charges or encumbrances on Real Estate, that do not secure any monetary obligation and do not interfere with the ordinary course of business;

 

(g)    Liens incurred or deposits made in the ordinary course of business to secure the performance of government tenders, bids, contracts, statutory obligations and other similar obligations, as long as such Liens are at all times junior to Agent’s Liens and are required or provided by law;

 

(h)    carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business which are not overdue for a period of more than sixty (60) days or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person; and

 

(i)    any Liens affecting any Subsidiary of a Borrower that is not a Guarantor;

 

(j)    existing Liens shown on Schedule 10.2.2;

 

(k)    solely in respect of Company, any other Liens.

 

10.2.3    [Reserved].

 

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10.2.4    Distributions. Declare or make any Distributions to any Person that is not an Obligor in any calendar quarter, except for: (a) Distributions made or declared if no Event of Default arising from the Borrowers’ failure to comply with Section 10.3 or an Event of Default Section 11.1(a) or 11.1(j) shall exist immediately before making or declaring such Distribution or would result therefrom, (b) such Distribution is a dividend by the Borrower payable in additional shares of its common stock; (c) such Distribution is made or declared by a Subsidiary Guarantor to Borrower, and (d) such Distribution is required to maintain such Borrower’s legal status as a REIT. Notwithstanding the foregoing or anything in this Agreement or any of the other Loan Documents to the contrary, and notwithstanding that an Event of Default may have occurred, each of the Guarantors shall have the right to make distributions to any Borrower, any Borrower shall have the right to make Distributions to Parent, and Parent shall have the right to make Distributions to its shareholders, in amounts (x) sufficient to enable each such entity to qualify as a REIT and avoid the imposition of U.S. federal or state income or excise taxes, assuming each such entity intended to qualify and otherwise qualified as a REIT and (y) otherwise sufficient to enable Parent to so qualify and avoid such taxes.

 

10.2.5    Restricted Investments. Make any Restricted Investment if any Event of Default exists at the time such Restricted Investment is made or immediately after giving effect thereto.

 

10.2.6    Disposition of Assets. Make any Asset Disposition (including, but not limited to, any sale, lease or transfer of any interest of any Obligor, legal or equitable, in the Leasing Real Property), except a transfer of Property by a Subsidiary or Obligor to an Obligor; provided that notwithstanding the foregoing, so long as no Event of Default exists at the time such Asset Disposition is made or immediately thereafter, Company may make any Asset Disposition other than a Disposition of Eligible Leasing Real Property or proceeds from the same.

 

10.2.7    Loans. Make any loans or other advances of money to any Person if any Event of Default exists at the time such Restricted Investment is made or immediately after giving effect thereto, except (a) advances to an officer or employee for salary, travel expenses, commissions and similar items in the ordinary course of business; (b) prepaid expenses and extensions of trade credit made in the ordinary course of business; and (c) deposits with financial institutions permitted hereunder.

 

10.2.8    [Reserved].

 

10.2.9    Fundamental Changes. (a) Change its name in any of its Organic Documents unless the Borrower Agent provides written notice to the Agent no later than ten (10) Business Days after such change becoming effective; (b) change its tax, charter or other organizational identification number; (c) change its form or state of organization; merge, combine or consolidate with any Person, whether in a single transaction or in a series of related transactions.

 

10.2.10    Subsidiaries. Form or acquire any Subsidiary after the Closing Date; provided that notwithstanding the foregoing, Company may form or acquire Subsidiaries after the Closing Date.

 

10.2.11    Organic Documents. Amend, modify or otherwise change any of its Organic Documents if such amendment, modification or other change could be materially adverse to the Lenders.

 

10.2.12    Tax Consolidation. File or consent to the filing of any consolidated income tax return with any Person other than Obligors and their Subsidiaries.

 

10.2.13    Accounting Changes. Make any material change in accounting treatment or reporting practices, except as required by GAAP and in accordance with Section 1.2; or change its Fiscal Year.

 

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10.2.14    Restrictive Agreements. Become a party to any Restrictive Agreement, except a Restrictive Agreement (a) in effect on the Closing Date; (b) relating to secured Debt permitted hereunder, as long as the restrictions apply only to collateral for such Debt; or (c) constituting customary restrictions on assignment in leases and other contracts.

 

10.2.15    [reserved].

 

10.2.16    Conduct of Business. Engage in any business that would change the Parent’s status as a real estate investment trust under Section 856 of the Code.

 

10.2.17    Affiliate Transactions. Enter into or be party to any transaction with an Affiliate, except (a) transactions expressly permitted by the Loan Documents; (b) payment of reasonable compensation to officers and employees for services actually rendered, and payment of customary directors’ fees and indemnities; (c) transactions solely among Borrowers; (d) transactions with Affiliates consummated prior to the Closing Date, as shown on Schedule 10.2.17; and (e) transactions with Affiliates in the ordinary course of business, upon fair and reasonable terms fully disclosed to Agent and no less favorable than would be obtained in a comparable arm’s-length transaction with a non-Affiliate.

 

10.2.18    Plans. (a) Become party to any Multiemployer Plan, Multiple Employer Plan, or Foreign Plan or (b) commence any Pension Plan.

 

10.2.19    Amendments to Subordinated Debt. Amend, supplement or otherwise modify any document, instrument or agreement relating to any Subordinated Debt, if such results in the Obligations not being fully benefited by the subordination provisions thereof.

 

10.2.20    [Reserved].

 

10.2.21    Security Instrument. No transfer, conveyance, lease, sale or other disposition will relieve any Obligors from personal liability for its obligations hereunder, whether or not the transferee assumes the Security Instrument. Agent may, without notice to any Obligor, deal with any successor owner of all or any portion of the Eligible Leasing Real Property in the same manner as with such Obligor, without in any way discharging the liability of Obligors hereunder.

 

10.3    Financial Covenants. As long as any Commitments or Obligations are outstanding, Borrowers shall:

 

10.3.1    Liquidity. Throughout the term of the Loan, Borrowers and Guarantors must maintain Liquidity equal to or greater than $1,000,000 in aggregate at all times.

 

10.3.2    Debt Service Coverage Ratio. Throughout the term of the Loan, Borrowers must maintain Debt Service Coverage Ratio equal to or greater than 1.50 to 1.00, measured as of the end of each fiscal quarter for the period of consecutive four fiscal quarters then ended.

 

SECTION 11.    EVENTS OF DEFAULT; REMEDIES ON DEFAULT

 

11.1    Events of Default. Each of the following shall be an “Event of Default” if it occurs for any reason whatsoever, whether voluntary or involuntary, by operation of law or otherwise:

 

(a)    Any Borrower fails to pay its Obligations when due (whether at stated maturity, on demand, upon acceleration or otherwise);

 

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(b)    Any representation, warranty or other written statement of an Obligor made in connection with any Loan Documents or transactions contemplated thereby is incorrect or misleading in any material respect when given;

 

(c)    A Borrower breaches or fail to perform any covenant contained in Section 7.2, 7.3, 7.4, 8.2, 8.3, 8.5, 8.6, 10.1.1, 10.1.2, 10.1.16, 10.1.17, 10.1.19, 10.2 or 10.3;

 

(d)    An Obligor breaches or fails to perform any other covenant contained in any Loan Documents, and such breach or failure is not cured within 15 days after a Senior Officer of such Obligor has knowledge thereof or receives notice thereof from Agent, whichever is sooner; provided, however, that such notice and opportunity to cure shall not apply if the breach or failure to perform is not capable of being cured within such period or is a willful breach by an Obligor;

 

(e)    If the obligation of any Guarantor under its Guaranty is limited or terminated by operation of law or by such Guarantor (other than in accordance with the terms of this Agreement or such Guaranty) or if any Guarantor in writing repudiates or revokes or purports to repudiate or revoke any such guaranty; any Loan Document that purports to create a Lien, shall, for any reason, fail or cease to create a valid Lien and, (except to the extent of Permitted Liens) first priority Lien on the Collateral covered thereby, except (a) as a result of a disposition of the applicable Collateral in a transaction permitted under this Agreement, (b) with respect to Collateral the aggregate value of which, for all such Collateral, does not exceed at any time, $100,000, or (c) as the result of an action or failure to act on the part of Agent; the validity or enforceability of any Loan Document shall at any time for any reason (other than solely as the result of an action or failure to act on the part of Agent) be declared to be null and void, or a proceeding shall be commenced by an Obligor, or by any Governmental Authority having jurisdiction over an Obligor, seeking to establish the invalidity or unenforceability thereof, or an Obligor shall deny in writing that such Obligor has any liability or obligation purported to be created under any Loan Document;

 

(f)    Any Obligor or any Subsidiary of any Obligor (i) fails to make any payment in respect of any Material Indebtedness (other than the Obligations) when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) and such failure continues after the applicable grace or notice period, if any, specified in the document relating thereto on the date of such failure; or (ii) fails to perform or observe any other condition or covenant, or any other event shall occur or condition exist, under any agreement or instrument relating to any such Material Indebtedness, if the effect of such failure, event or condition is to cause, or to permit the holder or holders of such Material Indebtedness or beneficiary or beneficiaries of such Material Indebtedness (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause such Material Indebtedness to be declared to be due and payable (or otherwise required immediately to be prepaid, redeemed, purchased or defeased) prior to its stated maturity (without regard to any subordination terms with respect thereto) or cash collateral in respect thereof to be demanded;

 

(g)    One or more judgments, non-interlocutory orders, decrees or arbitration awards shall be entered against any one or more of the Obligors involving in the aggregate a liability of $1,000,000 or more (to the extent not paid or covered by insurance or indemnities as to which the insurer or indemnifying party has been notified of such judgment or order and the applicable insurance company or indemnifying party has not denied coverage thereof), and the same shall remain unsatisfied, unvacated and unstayed pending appeal for a period of 60 days after the entry thereof;

 

(h)    [reserved];

 

(i)    An Obligor is enjoined, restrained or in any way prevented by any Governmental Authority from conducting any material part of its business; an Obligor suffers the loss, revocation or termination of any material license, permit, lease or agreement necessary to its business if the effect thereof would reasonably be expected to have a Material Adverse Effect; there is a cessation of any material part of an Obligor’s business for a material period of time (to the extent not covered by business interruption insurance and the applicable insurance company has not denied coverage thereof); an Obligor agrees to or commences any liquidation, dissolution or winding up of its affairs; or the Obligors, taken as a whole, are not Solvent;

 

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(j)    An Insolvency Proceeding is commenced by an Obligor; an Obligor makes an offer of settlement, extension or composition to its unsecured creditors generally; a trustee is appointed to take possession of any substantial Property of or to operate any of the business of an Obligor; or an Insolvency Proceeding is commenced against an Obligor and: the Obligor consents to institution of the proceeding, the petition commencing the proceeding is not timely contested by the Obligor, the petition is not dismissed within 30 days after filing, or an order for relief is entered in the proceeding;

 

(k)    [Reserved];

 

(l)    An Obligor or any of its Senior Officers is criminally indicted or convicted for (i) a felony committed in the conduct of the Obligor’s business, or (ii) violating any state or federal law (including the Controlled Substances Act, Money Laundering Control Act of 1986 and Illegal Exportation of War Materials Act) that could lead to forfeiture of any material Property or any Collateral; or

 

(m)    Any event occurs or condition exists that has a Material Adverse Effect.

 

11.2    Remedies upon Default. . If an Event of Default described in Section 11.1(j) occurs with respect to any Borrower, then to the extent permitted by Applicable Law, all Obligations shall become automatically due and payable and all Commitments shall terminate, without any action by Agent or notice of any kind. In addition, or if any other Event of Default exists, Agent may in its discretion (and shall upon written direction of Required Lenders) do any one or more of the following from time to time:

 

(a)    declare any Obligations immediately due and payable, whereupon they shall be due and payable without diligence, presentment, demand, protest or notice of any kind, all of which are hereby waived by Borrowers to the fullest extent permitted by law;

 

(b)    terminate, reduce or condition any Commitment or adjust the Borrowing Base; and

 

(c)    exercise any other rights or remedies afforded under any agreement, by law, at equity or otherwise, including the rights and remedies of a secured party under the UCC. Such rights and remedies include the rights to (i) take possession of any Collateral; (ii) require Borrowers to assemble Collateral, at Borrowers’ expense, and make it available to Agent at a place designated by Agent; (iii) enter any premises where Collateral is located and store Collateral on such premises until sold (and if the premises are owned or leased by a Borrower, Borrowers agree not to charge for such storage); and (iv) sell or otherwise dispose of any Collateral in its then condition, or after any further manufacturing or processing thereof, at public or private sale, with such notice as may be required by Applicable Law, in lots or in bulk, at such locations, all as Agent, in its discretion, deems advisable. Each Borrower agrees that 10 days’ notice of any proposed sale or other disposition of Collateral by Agent shall be reasonable, and that any sale conducted on the internet or to a licensor of Intellectual Property shall be commercially reasonable. Agent may conduct sales on any Obligor’s premises, without charge, and any sale may be adjourned from time to time in accordance with Applicable Law. Agent shall have the right to sell, lease or otherwise dispose of any Collateral for cash, credit or any combination thereof, and Agent may purchase any Collateral at public or, if permitted by law, private sale and, in lieu of actual payment of the purchase price, may credit bid and set off the amount of such price against the Obligations.

 

11.3    [Reserved].

 

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11.4    Setoff. At any time during an Event of Default, Agent, Lenders, and any of their Affiliates are authorized, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by Agent, such Lender or such Affiliate to or for the credit or the account of an Obligor against its Obligations, whether or not Agent, such Lender or such Affiliate shall have made any demand under this Agreement or any other Loan Document and although such Obligations may be contingent or unmatured or are owed to a branch or office of Agent, such Lender or such Affiliate different from the branch or office holding such deposit or obligated on such indebtedness. The rights of Agent, each Lender and each such Affiliate under this Section are in addition to other rights and remedies (including other rights of setoff) that such Person may have.

 

11.5    Remedies Cumulative; No Waiver.

 

11.5.1    Cumulative Rights. All agreements, warranties, guaranties, indemnities and other undertakings of Obligors under the Loan Documents are cumulative and not in derogation of each other. The rights and remedies of Agent and Lenders under the Loan Documents are cumulative, may be exercised at any time and from time to time, concurrently or in any order, and are not exclusive of any other rights or remedies available by agreement, by law, at equity or otherwise. All such rights and remedies shall continue in full force and effect until Full Payment of all Obligations.

 

11.5.2    Waivers. No waiver or course of dealing shall be established by (a) the failure or delay of Agent or any Lender to require strict performance by any Obligor under any Loan Document, or to exercise any rights or remedies with respect to Collateral or otherwise; (b) the making of any Loan during a Default, Event of Default or other failure to satisfy any conditions precedent; or (c) acceptance by Agent or any Lender of any payment or performance by an Obligor under any Loan Documents in a manner other than that specified therein. Any failure to satisfy a financial covenant on a measurement date shall not be cured or remedied by satisfaction of such covenant on a subsequent date.

 

11.6    Springing Liens. In accordance with Section 8.5, upon the occurrence of an Event of Default, Agent may, upon written notice to each Borrower, in its sole discretion, file or record Security Instruments covering the Leasing Real Property; it being understood and agreed that neither Borrowers nor Agent will file or record any Security Instrument with respect to the Leasing Real Property until the occurrence of an Event of Default.

 

SECTION 12.    AGENT

 

12.1    Appointment, Authority and Duties of Agent.

 

12.1.1    Appointment and Authority. Each Secured Party appoints and designates XXX as Agent under all Loan Documents. Agent may, and each Secured Party authorizes Agent to, enter into all Loan Documents to which Agent is intended to be a party and accept all Security Documents. Any action taken by Agent in accordance with the provisions of the Loan Documents, and the exercise by Agent of any rights or remedies set forth therein, together with all other powers reasonably incidental thereto, shall be authorized by and binding upon all Secured Parties. Without limiting the generality of the foregoing, Agent shall have the sole and exclusive authority to (a) act as the disbursing and collecting agent for Lenders with respect to all payments and collections arising in connection with the Loan Documents; (b) execute and deliver as Agent each Loan Document, including any intercreditor or subordination agreement, and accept delivery of each Loan Document; (c) act as collateral agent for Secured Parties for purposes of perfecting and administering Liens under the Loan Documents, and for all other purposes stated therein; (d) manage, supervise or otherwise deal with Collateral; and (e) take any Enforcement Action or otherwise exercise any rights or remedies with respect to any Collateral or under any Loan Documents, Applicable Law or otherwise. Agent alone shall be authorized to determine eligibility and applicable advance rates under the Borrowing Base, whether to impose or release any reserve, or whether any conditions to funding of any Loan have been satisfied, which determinations and judgments, if exercised in good faith, shall exonerate Agent from liability to any Secured Party or other Person for any error in judgment.

 

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12.1.2    Duties. The title of “Agent” is used solely as a matter of market custom and the duties of Agent are administrative in nature only. Agent has no duties except those expressly set forth in the Loan Documents, and in no event does Agent have any agency, fiduciary or implied duty to or relationship with any Secured Party or other Person by reason of any Loan Document or related transaction. The conferral upon Agent of any right shall not imply a duty to exercise such right, unless instructed to do so by Lenders in accordance with this Agreement.

 

12.1.3    Agent Professionals. Agent may perform its duties through agents and employees. Agent may consult with and employ Agent Professionals, and shall be entitled to act upon, and shall be fully protected from the Secured Parties in any action taken in good faith reliance upon, any advice given by an Agent Professional. Agent shall not be responsible to the Secured Parties for the negligence or misconduct of any agents, employees or Agent Professionals selected by it with reasonable care.

 

12.1.4    Instructions of Required Lenders. The rights and remedies conferred upon Agent under the Loan Documents may be exercised without the necessity of joining any other party, unless required by Applicable Law. In determining compliance with a condition for any action hereunder, including satisfaction of any condition in Section 6, Agent may presume that the condition is satisfactory to a Secured Party unless Agent has received notice to the contrary from such Secured Party before Agent takes the action. Agent may request instructions from Required Lenders or other Secured Parties with respect to any act (including the failure to act) in connection with any Loan Documents or Collateral, and may seek assurances to its satisfaction from Secured Parties of their indemnification obligations against Claims that could be incurred by Agent. Agent may refrain from taking any discretionary act until it has received such instructions or assurances, and shall not incur liability to any Person by reason of so refraining. Instructions of Required Lenders shall be binding upon all Secured Parties, and no Secured Party shall have any right of action whatsoever against Agent as a result of Agent acting or refraining from acting pursuant to instructions of Required Lenders. Notwithstanding the foregoing, instructions by and consent of specific parties shall be required to the extent provided in Section 14.1.1. In no event shall Agent be required to take any action it determines in its discretion is contrary to Applicable Law or any Loan Documents or could subject any Agent Indemnitee to liability.

 

12.2    Agreements Regarding Collateral and Borrower Materials.

 

12.2.1    Lien Releases; Care of Collateral. Secured Parties authorize Agent to release any Lien on any Collateral (a) upon Full Payment of the Obligations; (b) pursuant to Section 8.4.2 or any other provision of this Agreement or any other Loan Document that requires the Agent to release its Liens on any Collateral, (c) that is the subject of a disposition or Lien that Borrowers certify in writing is a Permitted Lien entitled to priority over Agent’s Liens (and Agent may rely conclusively on such certificate without further inquiry); (d) that does not constitute a material part of the Collateral; or (e) subject to Section 14.1, with the consent of Required Lenders. Secured Parties authorize Agent to subordinate its Liens to any Purchase Money Lien or other Lien entitled to priority hereunder. Agent has no obligation to assure that any Collateral exists or is owned by an Obligor, or is cared for, protected or insured, nor to assure that Agent’s Liens have been properly created, perfected or enforced, or are entitled to any particular priority, nor to exercise any duty of care with respect to any Collateral.

 

12.2.2    Possession of Collateral. Agent and Secured Parties appoint each Secured Party as agent (for the benefit of Secured Parties) for the purpose of perfecting Liens in Collateral held or controlled by it, to the extent such Liens are perfected by possession or control. If a Secured Party obtains possession or control of any Collateral, it shall notify Agent thereof and, promptly upon Agent’s request, deliver such Collateral to Agent or otherwise deal with it in accordance with Agent’s instructions.

 

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12.2.3    Reports. Agent shall promptly provide to Lenders, when complete, any field examination, audit or appraisal report prepared for Agent with respect to any Obligor or Collateral (“Report”). Reports and other Borrower Materials may be made available to Lenders by providing access to them on the Platform, but Agent shall not be responsible for system failures or access issues that may occur from time to time. Each Lender agrees (a) that Reports are not intended to be comprehensive audits or examinations, and that Agent or any other Person performing an audit or examination will inspect only limited information and will rely significantly upon Borrowers’ books, records and representations; (b) that Agent makes no representation or warranty as to the accuracy or completeness of any Borrower Materials and shall not be liable for any information contained in or omitted from any Borrower Materials, including any Report; and (c) to keep all Borrower Materials confidential and strictly for such Lender’s internal use, not to distribute any Report or other Borrower Materials (or the contents thereof) to any Person (except to such Lender’s Participants, attorneys and accountants), and to use all Borrower Materials solely for administration of the Obligations. Each Lender shall indemnify and hold harmless Agent and any other Person preparing a Report from any action such Lender may take as a result of or any conclusion it may draw from any Borrower Materials, as well as from any Claims arising as a direct or indirect result of Agent furnishing same to such Lender, via the Platform or otherwise.

 

12.3    Reliance By Agent. Agent shall be entitled to rely, and shall be fully protected in relying, upon any certification, notice or other communication (including those by telephone, telex, telegram, telecopy, e-mail or other electronic means) believed by it to be genuine and correct and to have been signed, sent or made by the proper Person. Agent shall have a reasonable and practicable amount of time to act upon any instruction, notice or other communication under any Loan Document, and shall not be liable for any delay in acting.

 

12.4    Action Upon Default. Agent shall not be deemed to have knowledge of any Default or Event of Default, or of any failure to satisfy any conditions in Section 6, unless it has received written notice from a Borrower or Required Lenders specifying the occurrence and nature thereof. If a Lender acquires knowledge of a Default, Event of Default or failure of such conditions, it shall promptly notify Agent and the other Lenders thereof in writing. Each Secured Party agrees that, except as otherwise provided in any Loan Documents or with the written consent of Agent and Required Lenders, it will not take any Enforcement Action, accelerate Obligations or assert any rights relating to any Collateral.

 

12.5    Ratable Sharing. If any Lender obtains any payment or reduction of any Obligation, whether through set-off or otherwise, in excess of its ratable share of such Obligation, such Lender shall forthwith purchase from Secured Parties participations in the affected Obligation as are necessary to share the excess payment or reduction on a Pro Rata basis or in accordance with Section 5.6.2, as applicable. If any of such payment or reduction is thereafter recovered from the purchasing Lender, the purchase shall be rescinded and the purchase price restored to the extent of such recovery, but without interest. Notwithstanding the foregoing, if a Defaulting Lender obtains a payment or reduction of any Obligation, it shall immediately turn over the full amount thereof to Agent for application under Section 4.2.2 and it shall provide a written statement to Agent describing the Obligation affected by such payment or reduction. No Lender shall set off against an Operating Account without Agent’s prior consent.

 

12.6    Indemnification. EACH SECURED PARTY SHALL INDEMNIFY AND HOLD HARMLESS AGENT INDEMNITEES, TO THE EXTENT NOT REIMBURSED BY OBLIGORS, ON A PRO RATA BASIS, AGAINST ALL CLAIMS THAT MAY BE INCURRED BY OR ASSERTED AGAINST ANY SUCH INDEMNITEE, PROVIDED THAT ANY CLAIM AGAINST AN AGENT INDEMNITEE RELATES TO OR ARISES FROM ITS ACTING AS OR FOR AGENT (IN THE CAPACITY OF AGENT). If Agent is sued by any receiver, trustee or other Person for any alleged preference or fraudulent transfer, then any monies paid by Agent in settlement or satisfaction of such proceeding, together with all interest, costs and expenses (including attorneys’ fees) incurred in the defense of same, shall be promptly reimbursed to Agent by each Secured Party to the extent of its Pro Rata Share.

 

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12.7    Limitation on Responsibilities of Agent. Agent shall not be liable to any Secured Party for any action taken or omitted to be taken under the Loan Documents, except for losses directly and solely caused by Agent’s gross negligence or willful misconduct. Agent does not assume any responsibility for any failure or delay in performance or any breach by any Obligor, Lender or other Secured Party of any obligations under the Loan Documents. Agent does not make any express or implied representation, warranty or guarantee to Secured Parties with respect to any Obligations, Collateral, Liens, Loan Documents or Obligor. No Agent Indemnitee shall be responsible to Secured Parties for any recitals, statements, information, representations or warranties contained in any Loan Documents or Borrower Materials; the execution, validity, genuineness, effectiveness or enforceability of any Loan Documents; the genuineness, enforceability, collectability, value, sufficiency, location or existence of any Collateral, or the validity, extent, perfection or priority of any Lien therein; the validity, enforceability or collectability of any Obligations; or the assets, liabilities, financial condition, results of operations, business, creditworthiness or legal status of any Obligor or Account Debtor. No Agent Indemnitee shall have any obligation to any Secured Party to ascertain or inquire into the existence of any Default or Event of Default, the observance by any Obligor of any terms of the Loan Documents, or the satisfaction of any conditions precedent contained in any Loan Documents.

 

12.8    Successor Agent and Co-Agents.

 

12.8.1    Resignation; Successor Agent. Agent may resign at any time by giving at least 30 days written notice thereof to Lenders and Borrowers. Required Lenders may appoint a successor that is (a) a Lender or Affiliate of a Lender; or (b) a financial institution reasonably acceptable to Required Lenders and (provided no Default or Event of Default exists) Borrowers. If no successor is appointed by the effective date of Agent’s resignation, then on such date, Agent may appoint a successor reasonably acceptable to it in its discretion (which shall be a Lender unless no Lender accepts the role or a financial institution reasonably acceptable to Required Lenders and (provided no Default or Event of Default exists) Borrowers) or, in the absence of such appointment, Required Lenders shall automatically assume all rights and duties of Agent. The successor Agent shall thereupon succeed to and become vested with all the powers and duties of the retiring Agent without further act. The retiring Agent shall be discharged from its duties hereunder on the effective date of its resignation, but shall continue to have all rights and protections available to Agent under the Loan Documents with respect to actions, omissions, circumstances or Claims relating to or arising while it was acting or transferring responsibilities as Agent or holding any Collateral on behalf of Secured Parties, including the indemnification set forth in Sections 12.6 and 14.2, and all rights and protections under this Section 12. Any successor to XXX by merger or acquisition of stock or this loan shall continue to be Agent hereunder without further act on the part of any Secured Party or Obligor.

 

12.8.2    Co-Collateral Agent. If appropriate under Applicable Law, Agent may appoint a Person to serve as a co-collateral agent or separate collateral agent under any Loan Document. Each right, remedy and protection intended to be available to Agent under the Loan Documents shall also be vested in such agent. Secured Parties shall execute and deliver any instrument or agreement that Agent may request to effect such appointment. If any such agent shall die, dissolve, become incapable of acting, resign or be removed, then all the rights and remedies of the agent, to the extent permitted by Applicable Law, shall vest in and be exercised by Agent until appointment of a new agent.

 

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12.9    Due Diligence and Non-Reliance. Each Lender acknowledges and agrees that it has, independently and without reliance upon Agent or any other Lenders, and based upon such documents, information and analyses as it has deemed appropriate, made its own credit analysis of each Obligor and its own decision to enter into this Agreement and to fund Loans hereunder. Each Secured Party has made such inquiries as it feels necessary concerning the Loan Documents, Collateral and Obligors. Each Secured Party acknowledges and agrees that the other Secured Parties have made no representations or warranties concerning any Obligor, any Collateral or the legality, validity, sufficiency or enforceability of any Loan Documents or Obligations. Each Secured Party will, independently and without reliance upon any other Secured Party, and based upon such financial statements, documents and information as it deems appropriate at the time, continue to make and rely upon its own credit decisions in making Loans, and in taking or refraining from any action under any Loan Documents. Except for notices, reports and other information expressly requested by a Lender, Agent shall have no duty or responsibility to provide any Secured Party with any notices, reports or certificates furnished to Agent by any Obligor or any credit or other information concerning the affairs, financial condition, business or Properties of any Obligor (or any of its Affiliates) which may come into possession of Agent or its Affiliates.

 

12.10   Remittance of Payments and Collections.

 

12.10.1    Remittances Generally. Payments by any Secured Party to Agent shall be made by the time and date provided herein, in immediately available funds. If no time for payment is specified or if payment is due on demand and request for payment is made by Agent by 1:00 p.m. on a Business Day, then payment shall be made by the Secured Party by 3:00 p.m. on such day, and if request is made after 1:00 p.m., then payment shall be made by 11:00 a.m. on the next Business Day. Payment by Agent to any Secured Party shall be made by wire transfer, in the type of funds received by Agent. Any such payment shall be subject to Agent’s right of offset for any amounts due from such payee under the Loan Documents.

 

12.10.2    Failure to Pay. If any Secured Party fails to deliver when due any amount payable by it to Agent hereunder, such amount shall bear interest, from the due date until paid in full, at the greater of the Federal Funds Rate or the rate determined by Agent as customary for interbank compensation for two Business Days and thereafter at the Default Rate for Revolver Loans. In no event shall Borrowers be entitled to credit for any interest paid by a Secured Party to Agent, nor shall a Defaulting Lender be entitled to interest on amounts held by Agent pursuant to Section 4.2.

 

12.10.3    Recovery of Payments. If Agent pays an amount to a Secured Party in the expectation that a related payment will be received by Agent from an Obligor and such related payment is not received, then Agent may recover such amount from the Secured Party. If Agent determines that an amount received by it must be returned or paid to an Obligor or other Person pursuant to Applicable Law or otherwise, then Agent shall not be required to distribute such amount to any Secured Party. If Agent is required to return any amounts applied by it to Obligations held by a Secured Party, such Secured Party shall pay to Agent, on demand, its share of the amounts required to be returned.

 

12.11  Individual Capacities. As a Lender, XXX shall have the same rights and remedies under the Loan Documents as any other Lender, and the terms “Lenders,” “Required Lenders” or any similar term shall include XXX in its capacity as a Lender. Agent, Lenders and their Affiliates may accept deposits from, lend money to, act as financial or other advisor to, and generally engage in any kind of business with, Obligors and their Affiliates, as if they were not Agent or Lenders hereunder, without any duty to account therefor to any Secured Party. In their individual capacities, Agent, Lenders and their Affiliates may receive information regarding Obligors, their Affiliates and their Account Debtors (including information subject to confidentiality obligations), and shall have no obligation to provide such information to any Secured Party.

 

12.12  Titles. Each Lender, other than XXX, that is designated in connection with this credit facility as an “Arranger,” “Bookrunner” or “Agent” of any kind shall have no right or duty under any Loan Documents other than those applicable to all Lenders, and shall in no event have any fiduciary duty to any Secured Party.

 

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12.13    [RESERVED].

 

12.14    No Third Party Beneficiaries. This Section 12 is an agreement solely among Secured Parties and Agent, and shall survive Full Payment of the Obligations. This Section 12 does not confer any rights or benefits upon Borrowers or any other Person. As between Borrowers and Agent, any action that Agent may take under any Loan Documents or with respect to any Obligations shall be conclusively presumed to have been authorized and directed by Secured Parties.

 

SECTION 13.    BENEFIT OF AGREEMENT; ASSIGNMENTS

 

13.1    Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of Borrowers, Agent, Lenders, Secured Parties, and their respective successors and assigns, except that (a) no Borrower shall have the right to assign its rights or delegate its obligations under any Loan Documents; and (b) any assignment by a Lender must be made in compliance with Section 13.3. Agent may treat the Person which made any Loan as the owner thereof for all purposes until such Person makes an assignment in accordance with Section 13.3. Any authorization or consent of a Lender shall be conclusive and binding on any subsequent transferee or assignee of such Lender.

 

13.2    Participations.

 

13.2.1    Permitted Participants; Effect. Subject to Section 13.3.3, any Lender may sell to a financial institution (“Participant”) a participating interest in the rights and obligations of such Lender under any Loan Documents. Despite any sale by a Lender of participating interests to a Participant, such Lender’s obligations under the Loan Documents shall remain unchanged, it shall remain solely responsible to the other parties hereto for performance of such obligations, it shall remain the holder of its Loans and Commitments for all purposes, all amounts payable by Borrowers shall be determined as if it had not sold such participating interests, and Borrowers and Agent shall continue to deal solely and directly with such Lender in connection with the Loan Documents. Each Lender shall be solely responsible for notifying its Participants of any matters under the Loan Documents, and Agent and the other Lenders shall not have any obligation or liability to any such Participant. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 5.9 unless Borrowers agree otherwise in writing.

 

13.2.2    Voting Rights. Each Lender shall retain the sole right to approve, without the consent of any Participant, any amendment, waiver or other modification of a Loan Document other than that which forgives principal, interest or fees, reduces the stated interest rate or fees payable with respect to any Loan or Commitment in which such Participant has an interest, postpones the Commitment Termination Date or any date fixed for any regularly scheduled payment of principal, interest or fees on such Loan or Commitment, or releases any Borrower, Guarantor or substantially all Collateral.

 

13.2.3    Participant Register. Each Lender that sells a participation shall, acting as a non-fiduciary agent of Borrowers (solely for tax purposes), maintain a register in which it enters the Participant’s name, address and interest in Commitments and Loans (and stated interest). Entries in the register shall be conclusive, absent manifest error, and such Lender shall treat each Person recorded in the register as the owner of the participation for all purposes, notwithstanding any notice to the contrary. No Lender shall have an obligation to disclose any information in such register except to the extent necessary to establish that a Participant’s interest is in registered form under the Code.

 

13.2.4    Benefit of Setoff. Each Participant shall have a right of set-off in respect of its participating interest to the same extent as if such interest were owing directly to a Lender, and each Lender shall also retain the right of set-off with respect to any participating interests sold by it. By exercising any right of set-off, a Participant agrees to share with Lenders all amounts received through its set-off, in accordance with Section 12.5 as if such Participant were a Lender.

 

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13.3    Assignments.

 

13.3.1    Permitted Assignments. A Lender may assign to an Eligible Assignee any of its rights and obligations under the Loan Documents, as long as (a) each assignment is of a constant, and not a varying, percentage of the transferor Lender’s rights and obligations under the Loan Documents and, in the case of a partial assignment, is in a minimum principal amount of $5,000,000 (unless otherwise agreed by Agent in its discretion) and integral multiples of $500,000 in excess of that amount; (b) except in the case of an assignment in whole of a Lender’s rights and obligations, the aggregate amount of the Commitments retained by the transferor Lender is at least $5,000,000 (unless otherwise agreed by Agent in its discretion); and (c) the parties to each such assignment shall execute and deliver an Assignment to Agent for acceptance and recording. Nothing herein shall limit the right of a Lender to pledge or assign any rights under the Loan Documents to secure obligations of such Lender, including a pledge or assignment to a Federal Reserve Bank; provided, however, that no such pledge or assignment shall release the Lender from its obligations hereunder nor substitute the pledge or assignee for such Lender as a party hereto.

 

13.3.2    Effect; Effective Date. Upon delivery to Agent of an assignment notice in the form of Exhibit B and a processing fee of $3,500 (unless otherwise agreed by Agent in its discretion), the assignment shall become effective as specified in the notice, if it complies with this Section 13.3. From such effective date, the Eligible Assignee shall for all purposes be a Lender under the Loan Documents, and shall have all rights and obligations of a Lender thereunder. Upon consummation of an assignment, the transferor Lender, Agent and Borrowers shall make appropriate arrangements for issuance of replacement and/or new notes, if applicable. The transferee Lender shall comply with Section 5.10 and deliver, upon request, an administrative questionnaire satisfactory to Agent.

 

13.3.3    Certain Assignees. No assignment or participation may be made to a Borrower, Affiliate of a Borrower, Defaulting Lender or natural person. Agent shall have no obligation to determine whether any assignment is permitted under the Loan Documents. Any assignment by a Defaulting Lender must be accompanied by satisfaction of its outstanding obligations under the Loan Documents in a manner satisfactory to Agent, including payment by the Defaulting Lender or Eligible Assignee of an amount sufficient upon distribution (through direct payment, purchases of participations or other methods acceptable to Agent in its discretion) to satisfy all funding and payment liabilities of the Defaulting Lender. If any assignment by a Defaulting Lender (by operation of law or otherwise) does not comply with the foregoing, the assignee shall be deemed a Defaulting Lender for all purposes until compliance occurs.

 

13.3.4    Register. Agent, acting as a non-fiduciary agent of Borrowers (solely for tax purposes), shall maintain (a) a copy (or electronic equivalent) of each Assignment delivered to it, and (b) a register for recordation of the names, addresses and Commitments of, and the Loans and interest owing to, each Lender. Entries in the register shall be conclusive, absent manifest error, and Borrowers, Agent and Lenders shall treat each Person recorded in such register as a Lender for all purposes under the Loan Documents, notwithstanding any notice to the contrary. Agent may choose to show only one Borrower as the borrower in the register, without any effect on the liability of any Obligor with respect to the Obligations. The register shall be available for inspection by Borrowers or any Lender, from time to time upon reasonable notice.

 

13.4    Replacement of Certain Lenders. If a Lender (a) within the last 120 days failed to give its consent to any amendment, waiver or action for which consent of all Lenders was required and Required Lenders consented, (b) is a Defaulting Lender, or (c) within the last 120 days gave a notice under Section 3.5 or requested payment or compensation under Section 3.7 or 5.9 (and has not designated a different Lending Office pursuant to Section 3.8), then Agent or Borrower Agent may, upon 10 days’ notice to such Lender, require it to assign its rights and obligations under the Loan Documents to Eligible Assignee(s), pursuant to appropriate Assignment(s), within 20 days after the notice. Agent is irrevocably appointed as attorney-in-fact to execute any such Assignment if the Lender fails to execute it. Such Lender shall be entitled to receive, in cash, concurrently with such assignment, all amounts owed to it under the Loan Documents through the date of assignment.

 

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SECTION 14.    MISCELLANEOUS

 

14.1    Consents, Amendments and Waivers.

 

14.1.1    Amendment. No modification of any Loan Document, including any extension or amendment of a Loan Document or any waiver of a Default or Event of Default, shall be effective without the prior written agreement of Agent (with the consent of Required Lenders) and each Obligor party to such Loan Document; provided, however, that

 

(a)    without the prior written consent of Agent, no modification shall alter any provision in a Loan Document that relates to any rights, duties or discretion of Agent;

 

(b)    [Reserved];

 

(c)    without the prior written consent of each affected Lender, including a Defaulting Lender, no modification shall (i) increase the Commitment of such Lender; (ii) reduce the amount of, or waive or delay payment of, any principal, interest or fees payable to such Lender (except as provided in Section 4.2); (iii) extend the Revolver Termination Date applicable to such Lender’s Obligations; or (iv) amend this clause (c); and

 

(d)    without the prior written consent of all Lenders (except any Defaulting Lender), no modification shall (i) alter Section 5.6.2, 7.1 (except to add Collateral) or 14.1.1; (ii) amend the definition of Borrowing Base (or any defined term used in such definition) if the effect of such amendment is to increase borrowing availability, (iii) amend the definition of Pro Rata Share or Pro Rata or Required Lenders; (iv) except for releases of Collateral expressly required hereunder or under the other Loan Documents, including pursuant to Section 8.4.2 and Section 12.2.1 of this Agreement or in connection with a merger, disposition or similar transaction expressly permitted hereby, release all or substantially all Collateral; or (v) except for releases expressly required hereunder or under the other Loan Documents, including pursuant to Section 8.4.2 and Section 12.2.1 of this Agreement or in connection with a merger, disposition or similar transaction expressly permitted hereby, release any Obligor from liability for any Obligations.

 

14.1.2    Limitations. The agreement of Borrowers shall not be required for any modification of a Loan Document that deals solely with the rights and duties of Lenders and/or Agent as among themselves. Only the consent of the parties to any agreement relating to fees shall be required for modification of such agreement. Any waiver or consent granted by Agent or Lenders hereunder shall be effective only if in writing and only for the matter specified.

 

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14.1.3    Payment for Consents. No Borrower will, directly or indirectly, pay any remuneration or other thing of value, whether by way of additional interest, fee or otherwise, to any Lender (in its capacity as a Lender hereunder) as consideration for agreement by such Lender with any modification of any Loan Documents, unless such remuneration or value is concurrently paid, on the same terms, on a Pro Rata basis to all Lenders providing their consent.

 

14.2    Indemnity. EACH BORROWER SHALL INDEMNIFY AND HOLD HARMLESS THE INDEMNITEES AGAINST ANY CLAIMS THAT MAY BE INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE, INCLUDING CLAIMS ASSERTED BY ANY OBLIGOR OR OTHER PERSON OR ARISING FROM THE NEGLIGENCE OF AN INDEMNITEE, INCLUDING ANY VIOLATION WITH RESPECT TO OR IN CONNECTION WITH OFAC. In no event shall any party to a Loan Document have any obligation thereunder to indemnify, hold harmless or reimburse an Indemnitee with respect to a Claim that is determined in a final, non-appealable judgment by a court of competent jurisdiction to result from the gross negligence or willful misconduct of such Indemnitee.

 

14.3    Notices and Communications.

 

14.3.1    Notice Address. Subject to Section 14.3.2, all notices and other communications by or to a party hereto shall be in writing and shall be given to any Borrower, at Borrower Agent’s address shown on the signature pages hereof, and to any other Person at its address shown on the signature pages hereof (or, in the case of a Person who becomes a Lender after the Closing Date, at the address shown on its Assignment), or at such other address as a party may hereafter specify by notice in accordance with this Section 14.3. Each communication shall be effective only (a) if given by facsimile transmission, when transmitted to the applicable facsimile number, if confirmation of receipt is received; (b) if given by mail, three Business Days after deposit in the U.S. mail, with first-class postage pre-paid, addressed to the applicable address; or (c) if given by personal delivery, when duly delivered to the notice address with receipt acknowledged. Notwithstanding the foregoing, no notice to Agent pursuant to Section 2.1.4, 2.3 or 4.1.1 shall be effective until actually received by the individual to whose attention at Agent such notice is required to be sent. Any written communication that is not sent in conformity with the foregoing provisions shall nevertheless be effective on the date actually received by the noticed party. Any notice received by Borrower Agent shall be deemed received by all Borrowers.

 

14.3.2    Communications. Electronic and telephonic communications (including e-mail, messaging, voice mail and websites) may be used only in a manner acceptable to Agent. Secured Parties make no assurance as to the privacy or security of electronic or telephonic communications. E-mail and voice mail shall not be effective notices under the Loan Documents.

 

14.3.3    Platform. Borrower Materials shall be delivered pursuant to procedures approved by Agent, including electronic delivery (if possible) upon request by Agent to an electronic system maintained by Agent (“Platform”). Borrower Agent shall notify Agent of each posting of Borrower Materials on the Platform and the materials shall be deemed received by Agent only upon its receipt of such notice. Borrower Materials and other information relating to this credit facility may be made available to Secured Parties on the Platform. The Platform is provided “as is” and “as available.” Agent does not warrant the accuracy or completeness of any information on the Platform nor the adequacy or functioning of the Platform, and expressly disclaims liability for any errors or omissions in the Borrower Materials or any issues involving the Platform. 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 AGENT WITH RESPECT TO BORROWER MATERIALS OR THE PLATFORM. No Agent Indemnitee shall have any liability to Borrowers, Secured Parties or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) relating to use by any Person of the Platform, including any unintended recipient, nor for delivery of Borrower Materials and other information via the Platform, internet, e-mail, or any other electronic platform or messaging system.

 

14.3.4    Public Information. Obligors and Secured Parties acknowledge that “public” information may not be segregated from material non-public information on the Platform. Secured Parties acknowledge that Borrower Materials may include Obligors’ material non-public information, and should not be made available to personnel who do not wish to receive such information or may be engaged in investment or other market-related activities with respect to an Obligor’s securities.

 

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14.3.5    Non-Conforming Communications. Agent and Lenders may rely upon any communications purportedly given by or on behalf of any Borrower even if they were not made in a manner specified herein, were incomplete or were not confirmed, or if the terms thereof, as understood by the recipient, varied from a later confirmation. Each Borrower shall indemnify and hold harmless each Indemnitee from any liabilities, losses, costs and expenses arising from any electronic or telephonic communication purportedly given by or on behalf of a Borrower.

 

14.4    Performance of Borrowers’ Obligations. Agent may, in its discretion at any time and from time to time during the existence of an Event of Default, at Borrowers’ expense, pay any amount or do any act required of a Borrower under any Loan Documents or otherwise lawfully requested by Agent to (a) enforce any Loan Documents or collect any Obligations; (b) protect, insure, maintain or realize upon any Collateral; or (c) defend or maintain the validity or priority of Agent’s Liens in any Collateral, including any payment of a judgment, insurance premium, warehouse charge, finishing or processing charge, or landlord claim, or any discharge of a Lien. All payments, costs and expenses (including Extraordinary Expenses) of Agent under this Section shall be reimbursed to Agent by Borrowers, on demand, with interest from the date such reimbursements is demanded until paid in full, at the Default Rate applicable to Revolver Loans. Any payment made or action taken by Agent under this Section shall be without prejudice to any right to assert an Event of Default or to exercise any other rights or remedies under the Loan Documents.

 

14.5    Credit Inquiries. Agent and Lenders may (but shall have no obligation) to respond to usual and customary credit inquiries from third parties concerning any Obligor or Subsidiary.

 

14.6    Severability. Wherever possible, each provision of the Loan Documents shall be interpreted in such manner as to be valid under Applicable Law. If any provision is found to be invalid under Applicable Law, it shall be ineffective only to the extent of such invalidity and the remaining provisions of the Loan Documents shall remain in full force and effect.

 

14.7    Cumulative Effect; Conflict of Terms. The provisions of the Loan Documents are cumulative. The parties acknowledge that the Loan Documents may use several limitations or measurements to regulate similar matters, and they agree that these are cumulative and that each must be performed as provided. Except as otherwise provided in another Loan Document (by specific reference to the applicable provision of this Agreement), if any provision contained herein is in direct conflict with any provision in another Loan Document, the provision herein shall govern and control.

 

14.8    Counterparts; Execution. Any Loan Document may be executed in counterparts, each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement shall become effective when Agent has received counterparts bearing the signatures of all parties hereto. Agent may (but shall have no obligation to) accept any signature, contract formation or record-keeping through electronic means, which shall have the same legal validity and enforceability as manual or paper-based methods, to the fullest extent permitted by Applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any similar state law based on the Uniform Electronic Transactions Act. Upon request by Agent, any electronic signature or delivery shall be promptly followed by a manually executed or paper document.

 

14.9    Entire Agreement. Time is of the essence with respect to all Loan Documents and Obligations. The Loan Documents constitute the entire agreement, and supersede all prior understandings and agreements, among the parties relating to the subject matter thereof.

 

14.10    Relationship with Lenders. The obligations of each Lender hereunder are several, and no Lender shall be responsible for the obligations or Commitments of any other Lender. Amounts payable hereunder to each Lender shall be a separate and independent debt. It shall not be necessary for Agent or any other Lender to be joined as an additional party in any proceeding for such purposes. Nothing in this Agreement and no action of Agent, Lenders or any other Secured Party pursuant to the Loan Documents or otherwise shall be deemed to constitute Agent and any Secured Party to be a partnership, joint venture or similar arrangement, nor to constitute control of any Obligor.

 

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14.11    No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated by any Loan Document, Borrowers acknowledge and agree that (a)(i) this credit facility and any arranging or other services by Agent, any Lender, any of their Affiliates or any arranger are arm’s-length commercial transactions between Borrowers and their Affiliates, on one hand, and Agent, any Lender, any of their Affiliates or any arranger, on the other hand; (ii) Borrowers have consulted their own legal, accounting, regulatory and tax advisors to the extent they have deemed appropriate; and (iii) Borrowers are capable of evaluating, and understand and accept, the terms, risks and conditions of the transactions contemplated by the Loan Documents; (b) each of Agent, Lenders, their Affiliates and any arranger is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for Borrowers, their Affiliates or any other Person, and has no obligation with respect to the transactions contemplated by the Loan Documents except as expressly set forth therein; and (c) Agent, Lenders, their Affiliates and any arranger may be engaged in a broad range of transactions that involve interests that differ from those of Borrowers and their Affiliates, and have no obligation to disclose any of such interests to Borrowers or their Affiliates. To the fullest extent permitted by Applicable Law, each Borrower hereby waives and releases any claims that it may have against Agent, Lenders, their Affiliates and any arranger with respect to any breach of agency or fiduciary duty in connection with any transaction contemplated by a Loan Document.

 

14.12    Confidentiality. Each of Agent, Lenders shall maintain the confidentiality of all Information (as defined below), except that Information may be disclosed (a) to its Affiliates, and to its and their partners, directors, officers, employees, agents, advisors and representatives (provided they are informed of the confidential nature of the Information and instructed to keep it confidential); (b) to the extent requested by any governmental, regulatory or self-regulatory authority purporting to have jurisdiction over it or its Affiliates; (c) to the extent required by Applicable Law or by any subpoena or other legal process; (d) to any other party hereto; (e) in connection with any action or proceeding relating to any Loan Documents or Obligations; (f) subject to an agreement containing provisions substantially the same as this Section, to any Transferee or any actual or prospective party (or its advisors) to any swap, derivative or other transaction under which payments are to be made by reference to an Obligor or Obligor’s obligations; (g) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) is available to Agent, any Lender or any of its Affiliates on a nonconfidential basis from a source other than Borrowers; (h) on a confidential basis to a provider of a Platform; or (i) with the consent of Borrower Agent. Notwithstanding the foregoing, Agent and Lenders may publish or disseminate general information concerning this credit facility for league table, tombstone and advertising purposes, and may use Borrowers’ logos, trademarks or product photographs in advertising materials. As used herein, “Information” means information received from an Obligor or Subsidiary relating to it or its business. A Person required to maintain the confidentiality of Information pursuant to this Section shall be deemed to have complied if it exercises a degree of care similar to that accorded its own confidential information. Agent and Lenders acknowledges that (i) Information may include material non-public information; (ii) it has developed compliance procedures regarding the use of such information; and (iii) it will handle the material non-public information in accordance with Applicable Law.

 

14.13    GOVERNING LAW. UNLESS EXPRESSLY PROVIDED IN ANY LOAN DOCUMENT, THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND ALL CLAIMS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW PRINCIPLES EXCEPT FEDERAL LAWS RELATING TO NATIONAL BANKS.

 

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14.14    Consent to Forum; Bail-In of EEA Financial Institutions.

 

14.14.1    Forum. EACH BORROWER HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE COURT SITTING IN CALIFORNIA OR THE UNITED STATES DISTRICT COURT OF THE LOS ANGELES DISTRICT OF CALIFORNIA, IN ANY DISPUTE, ACTION, LITIGATION OR OTHER PROCEEDING RELATING IN ANY WAY TO ANY LOAN DOCUMENTS, AND AGREES THAT ANY DISPUTE, ACTION, LITIGATION OR OTHER PROCEEDING SHALL BE BROUGHT BY IT SOLELY IN ANY SUCH COURT. EACH BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES ALL CLAIMS, OBJECTIONS AND DEFENSES THAT IT MAY HAVE REGARDING ANY SUCH COURT’S PERSONAL OR SUBJECT MATTER JURISDICTION, VENUE OR INCONVENIENT FORUM. EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 14.3.1. A final judgment in any proceeding of any such court shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or any other manner provided by Applicable Law.

 

14.14.2    Other Jurisdictions. Nothing herein shall limit the right of Agent or any Lender to bring proceedings against any Obligor in any other court, nor limit the right of any party to serve process in any other manner permitted by Applicable Law. Nothing in this Agreement shall be deemed to preclude enforcement by Agent of any judgment or order obtained in any forum or jurisdiction.

 

14.14.3    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 the parties, each party hereto (including each Secured Party) acknowledges that any liability arising under a Loan Document of any Secured Party that is an EEA Financial Institution, to the extent such liability is unsecured, 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 under any Loan Documents which may be payable to it by any Secured Party that is an EEA Financial Institution; and (b) the effects of any Bail-In Action on any such liability, including (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 undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under any 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.

 

14.14.4    Judicial Reference. If the waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature between them arising at any time shall be decided by a reference to a private judge, who shall be a retired state or federal court judge, mutually selected by the parties or, if they cannot agree, then any party may seek to have a private judge appointed in accordance with California Code of Civil Procedure §§ 638 and 640 (or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts). The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive. The private judge shall have the power, among others, to grant provisional relief, including without limitation, entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed. If during the course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Court for such relief. The proceeding before the private judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery rules and orders applicable to judicial proceedings in the same manner as a trial court judge. The parties agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon pursuant to California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies. The private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph.

 

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The parties agree that time is of the essence in conducting the referenced proceedings. The parties shall promptly and diligently cooperate with one another and the referee, and shall perform such acts as may be necessary to obtain prompt and expeditious resolution of the dispute or controversy in accordance with the terms hereof. The costs shall be borne equally by the parties.

 

EACH OF THE PARTIES HEREBY AGREES THAT THE PROVISIONS CONTAINED HEREIN HAVE BEEN FAIRLY NEGOTIATED ON AN ARMS-LENGTH BASIS, WITH EACH OF THE PARTIES AGREEING TO THE SAME KNOWINGLY AND BEING AFFORDED THE OPPORTUNITY TO HAVE ITS LEGAL COUNSEL CONSENT TO THE MATTERS CONTAINED HEREIN.

 

14.15    Waivers by Borrowers. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH BORROWER WAIVES (A) THE RIGHT TO TRIAL BY JURY (WHICH AGENT AND EACH LENDER HEREBY ALSO WAIVE) IN ANY ACTION, PROCEEDING, COUNTERCLAIM OR DISPUTE OF ANY KIND RELATING IN ANY WAY TO ANY LOAN DOCUMENTS, OBLIGATIONS OR COLLATERAL; (B) PRESENTMENT, DEMAND, PROTEST, NOTICE OF PRESENTMENT, DEFAULT, NON-PAYMENT, MATURITY, RELEASE, COMPROMISE, SETTLEMENT, EXTENSION OR RENEWAL OF ANY COMMERCIAL PAPER, ACCOUNTS, DOCUMENTS, INSTRUMENTS, CHATTEL PAPER AND GUARANTIES AT ANY TIME HELD BY AGENT ON WHICH A BORROWER MAY IN ANY WAY BE LIABLE, AND HEREBY RATIFIES ANYTHING AGENT MAY DO IN THIS REGARD; (C) NOTICE PRIOR TO TAKING POSSESSION OR CONTROL OF ANY COLLATERAL; (D) ANY BOND OR SECURITY THAT MIGHT BE REQUIRED BY A COURT PRIOR TO ALLOWING AGENT TO EXERCISE ANY RIGHTS OR REMEDIES; (E) THE BENEFIT OF ALL VALUATION, APPRAISEMENT AND EXEMPTION LAWS; (F) ANY CLAIM AGAINST AGENT OR ANY LENDER, ON ANY THEORY OF LIABILITY, FOR SPECIAL, INDIRECT, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES (AS OPPOSED TO DIRECT OR ACTUAL DAMAGES) IN ANY WAY RELATING TO ANY ENFORCEMENT ACTION, OBLIGATIONS, LOAN DOCUMENTS OR TRANSACTIONS RELATING THERETO; AND (G) NOTICE OF ACCEPTANCE HEREOF. Each Borrower acknowledges that the foregoing waivers are a material inducement to Agent and Lenders entering into this Agreement and that they are relying upon the foregoing in their dealings with Borrowers. Each Borrower has reviewed the foregoing waivers with its legal counsel and has knowingly and voluntarily waived its jury trial and other rights following consultation with legal counsel. In the event of litigation, this Agreement may be filed as a written consent to a trial by the court.

 

14.16    Patriot Act Notice. Agent and Lenders hereby notify Borrowers that pursuant to the Patriot Act, Agent and Lenders are required to obtain, verify and record information that identifies each Borrower, including its legal name, address, tax ID number and other information that will allow Agent and Lenders to identify it in accordance with the Patriot Act. Agent and Lenders will also require information regarding any personal guarantor and may require information regarding Borrowers’ management and owners, such as legal name, address, social security number and date of birth. Borrowers shall, promptly upon request, provide all documentation and other information as Agent or any Lender may request from time to time in order to comply with any obligations under any “know your customer,” anti-money laundering or other requirements of Applicable Law. For legal entity borrowers, Lender or Agent will require the legal entity to provide identifying information about each beneficial owner and/or individuals who have significant responsibility to control, manage or direct the legal entity.

 

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14.17    NO ORAL AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN AGREEMENTS BETWEEN THE PARTIES.

 

14.18    REIT Reorganization. Company may elect to effect a REIT Reorganization to facilitate the Parent’s future listing on the Nasdaq Global Market stock exchange or the New York Stock Exchange. Agent and the Lenders agree that once informed that the REIT Reorganization is to proceed, they will in good faith consider to continue to offer financing to the Company based on the terms and conditions set forth in the proposal attached hereto as Exhibit D (the “Restructuring Terms”) The Obligors understand and agree that the foregoing is not a commitment to lend or to continue to lend and that loan committee approval will have to be obtained by each Lender in order to proceed with any financing after the effective date of the REIT Reorganization; provided, that if (i) within 90 days following written notice (the “Restructuring Notice”) by the Company to the Agent requesting formal approval of the Restructuring Terms, the Agent and the Lenders do not obtain credit approval for such Restructuring Terms or (ii) within 90 days following the Restructuring Notice, amendments to the Loan Documents implementing the Restructuring Terms are not effective (provided that Borrower is working diligently and negotiating such amendments in good faith), in each case under clause (i) or (ii), other than as a result of the occurrence of any event following the Closing Date of any event or circumstance that has had a Material Adverse Effect that is continuing at the time of or after the Restructuring Notice, the Borrowers may terminate the Commitments on at least ten Business Days prior written notice to Agent (or such shorter time period approved by the Agent) without prepayment penalty or premium (including the Applicable Prepayment Premium). On the termination date, Borrowers shall make Full Payment of all Obligations, net of Lenders’ Prorated Fees, which the Lenders agrees to refund to the Company. For purposes of this Section 14.18, Prorated Fees means (i) in respect of any agent fees paid pursuant to the Loan Documents on a recurring annual basis which were paid by Borrowers during the “Agent Fee Accrual Period” (as defined below) in which the repayment by the Borrowers described in the foregoing paragraph is made, the prorated portion of such agent fees for the remaining portion of such Agent Fee Accrual Period and (ii) in respect of the up-front fees paid to the Agent for the ratable account of the Lenders on the Closing Date and any up-front fees paid to the Agent for the ratable account of the Lenders increasing their Commitments in connection with any increase in the amount of the aggregate Revolver Commitments pursuant to Section 2.17 of the Loan Agreement or otherwise pursuant to the Fee Letter, the prorated portion thereof for the remaining portion of the term of this Agreement. For purposes of this Section 14.18, the term “Agent Fee Accrual Period” means (i) initially, the period commencing on the Closing Date and ending on the first anniversary of the Closing Date, and (ii) thereafter, each successive one year period thereafter. It is understood and agreed that if Lenders offer to continue financing and willing and able to proceed within the 90 day Restructuring Notice period and Borrowers do not proceed and terminate the Commitments, then there will be no reimbursement of the Prorated Fees and Borrowers will owe the Applicable Prepayment Premium.

 

For purposes of this Section 14.18, REIT Reorganization means the sale by the Company and or its Subsidiaries of all of its ownership interest in the Subsidiary Guarantors and any other Subsidiaries that own Leasing Real Property and/or all of the Leasing Real Property owned by the Company and its Subsidiaries (collectively, the “Portfolio”) to an independent, private company that is not an Affiliate of the Parent or the Borrowers (the “Private Company”), with the purchase price for the Portfolio (the “REIT Reorganization Purchase Price”) being paid for as follows: not more than 99.5% of the REIT Reorganization Purchase Price will be paid by the Private Company through the issuance of one or more seller notes and the remainder of the REIT Reorganization Purchase Price will be paid in cash on the date the sale closes.

 

14.19    RIDER. The Rider attached hereto is incorporated herein by this reference.

 

[Remainder of page intentionally left blank; signatures begin on following page]

 

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IN WITNESS WHEREOF, this Agreement has been executed and delivered as of the date set forth above.

 

	 	BORROWERS:
	 	 
	 	NLCP Operating Partnership LP,
	 	a Delaware limited partnership
	 	 
	 	By: NewLake Capital Partners, Inc.,
	 	its general partner
	 	 
	 	By:/s/ David Weinstein
	 	Name: David Weinstein
	 	Title: Chief Executive Officer
	 	 
	 	Address:
	 	 
	 	27 Pine Street, Suite 50,
	 	New Canaan, CT 06840
	 	Attn: Anthony Coniglio

 

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	 	AGENT AND LENDERS:
	 	 
	 	XXXXXXXXXXXXXXX,
	 	as Agent and Lender
	 	 
	 	By: XXXXXXXXXXXXXXX
	 	Name: XXXXXXXXXXXXXXX
	 	Title: XXXXXXXXXXXXXXX
	 	 
	 	Address:
	 	 
	 	XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
	 	XXXXXXXXXXXXXXXX
	 	XXXXXXXXXXXXXXXXXXXXXXXXXXXXX
	 	XXXXXXXXXXXXXXXXXXXXXXXX
	 	 
	 	XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX,
	 	as a Lender

 

 

72

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}]]