Document:

Exhibit

EXHIBIT  10.1

£450,000,000
CREDIT AGREEMENT
Dated as of October 12, 2018
 
among
CSC COMPUTER SCIENCES INTERNATIONAL OPERATIONS LIMITED
 
as the Borrower 
 
DXC TECHNOLOGY COMPANY
as the Company
THE LENDERS FROM TIME TO TIME PARTY HERETO
as Lenders 
 
LLOYDS BANK PLC
 
as the Administrative Agent
LLOYDS BANK PLC,
CITIBANK, N.A.,
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,
MIZUHO BANK, LTD., 
MUFG BANK, LTD. and
RBC CAPITAL MARKETS 
as Joint Lead Arrangers

    
    

	
					
	Table of Contents

	 
	 
	 
	 
	Page

	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	1

	 
	Section 1.01
	 
	Certain Defined Terms
	1

	 
	Section 1.02
	 
	Computation of Time Periods
	15

	 
	Section 1.03
	 
	Accounting Terms
	15

	ARTICLE II AMOUNT AND TERMS OF THE ADVANCES
	16

	 
	Section 2.01
	 
	The Advances
	16

	 
	Section 2.02
	 
	Making the Advances
	17

	 
	Section 2.03
	 
	[Reserved]
	18

	 
	Section 2.04
	 
	Fees
	18

	 
	Section 2.05
	 
	[Reserved]
	18

	 
	Section 2.06
	 
	Repayment and Prepayment of the Advances
	18

	 
	Section 2.07
	 
	Interest on the Advances
	18

	 
	Section 2.08
	 
	Interest Rate Determination
	19

	 
	Section 2.09
	 
	[Reserved]
	21

	 
	Section 2.10
	 
	Increased Costs
	21

	 
	Section 2.11
	 
	Payments and Computations
	23

	 
	Section 2.12
	 
	Taxes
	24

	 
	Section 2.13
	 
	Sharing of Payments, Etc
	30

	 
	Section 2.14
	 
	Evidence of Debt
	31

	 
	Section 2.15
	 
	Use of Proceeds
	31

	 
	Section 2.16
	 
	[Reserved]
	32

	 
	Section 2.17
	 
	Mitigation Obligations; Replacement of Lenders; Non-Ratable Termination of Commitments
	32

	 
	Section 2.18
	 
	Incremental Commitments
	33

	ARTICLE III CONDITIONS OF LENDING
	35

	 
	Section 3.01
	 
	Condition Precedent to Effectiveness
	35

	 
	Section 3.02
	 
	Conditions Precedent to Funding the Initial Advances
	36

	 
	Section 3.03
	 
	Conditions Precedent to Funding the Incremental Advances
	36

	 
	Section 3.04
	 
	Existing Credit Agreement
	37

	ARTICLE IV REPRESENTATIONS AND WARRANTIES
	37

	 
	Section 4.01
	 
	Representations and Warranties of the Borrower and the Company
	37

	ARTICLE V COVENANTS
	41

	 
	Section 5.01
	 
	Affirmative Covenants of the Company
	41

	 
	Section 5.02
	 
	Negative Covenants of the Company
	44

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	ARTICLE VI EVENTS OF DEFAULT
	46

	 
	Section 6.01
	 
	Events of Default
	46

	ARTICLE VII GUARANTY
	49

	 
	Section 7.01
	 
	Unconditional Guaranty
	49

	 
	Section 7.02
	 
	Guaranty Absolute
	51

	 
	Section 7.03
	 
	Waivers and Acknowledgments
	51

	 
	Section 7.04
	 
	Subrogation
	52

	 
	Section 7.05
	 
	Continuing Guaranty; Assignments
	52

	ARTICLE VIII THE ADMINISTRATIVE AGENT
	52

	 
	Section 8.01
	 
	Appointment and Authority
	52

	 
	Section 8.02
	 
	Rights as a Lender
	53

	 
	Section 8.03
	 
	Exculpatory Provisions
	53

	 
	Section 8.04
	 
	Reliance by Administrative Agent
	54

	 
	Section 8.05
	 
	Indemnification
	54

	 
	Section 8.06
	 
	Resignation of Administrative Agent
	55

	 
	Section 8.07
	 
	Delegation of Duties
	55

	 
	Section 8.08
	 
	Non-Reliance on Administrative Agent and Other Lenders
	56

	ARTICLE IX MISCELLANEOUS
	56

	 
	Section 9.01
	 
	Amendments, Etc
	56

	 
	Section 9.02
	 
	Notices, Etc
	57

	 
	Section 9.03
	 
	No Waiver; Remedies
	59

	 
	Section 9.04
	 
	Costs, Expenses and Indemnification
	59

	 
	Section 9.05
	 
	Right of Set-off
	61

	 
	Section 9.06
	 
	Binding Effect
	61

	 
	Section 9.07
	 
	Assignments and Participations
	61

	 
	Section 9.08
	 
	[Reserved]
	65

	 
	Section 9.09
	 
	Governing Law
	65

	 
	Section 9.10
	 
	Execution in Counterparts
	65

	 
	Section 9.11
	 
	Consent to Jurisdiction; Waiver of Immunities
	65

	 
	Section 9.12
	 
	[Reserved]
	65

	 
	Section 9.13
	 
	Waiver of Trial by Jury
	66

	 
	Section 9.14
	 
	[Reserved]
	66

	 
	Section 9.15
	 
	Survival of Certain Provisions
	66

	 
	Section 9.16
	 
	Severability
	66

	 
	Section 9.17
	 
	Headings
	66

	 
	Section 9.18
	 
	[Reserved]
	66

	 
	Section 9.19
	 
	Confidentiality
	66

	 
	Section 9.20
	 
	No Fiduciary Duty
	67

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SCHEDULES
	
			
	Schedule I
	Initial Lenders’ Initial Commitments
	 

	Schedule 1.01
	Litigation and Investigations
	1.01-1

	Schedule 1.02
	Administrative Agent’s Address
	1.02-1

	Schedule 1.03
	Timetables
	1.03-1

EXHIBITS
	
			
	Exhibit A
	Form of Assignment and Assumption
	A-1

	Exhibit B-1
	Form of Opinion of CMS Cameron McKenna LLP
	B-1-1

	Exhibit B-2
	Form of Opinion of William L. Deckelman, Jr., Counsel for the Company
	B-2-1

	Exhibit C
	Form of Notice of Borrowing
	C-1

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CREDIT AGREEMENT
Dated as of October 12, 2018
This CREDIT AGREEMENT is entered into as of October 12, 2018, among CSC Computer Sciences International Operations Limited (company number 7073279), a company incorporated in England (the “Borrower”), DXC Technology Company, a Nevada corporation (formerly known as Everett SpinCo, Inc.) (the “Company”), the Lenders from time to time party hereto, and Lloyds Bank plc, as administrative agent (the “Administrative Agent”).
In consideration of the premises and the agreements, provisions and covenants herein contained, the Borrower, the Company, the Lenders and the Administrative Agent agree as follows:
Article I 
DEFINITIONS AND ACCOUNTING TERMS
Section 1.01    Certain Defined Terms.  As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):
“Administrative Agent” has the meaning specified in the recital of parties.
“Administrative Agent’s Account” means the account of the Administrative Agent maintained by the Administrative Agent at Lloyds Bank plc at its office at Citymark, 150 Fountainbridge, Edinburgh EH3 9PE, Account No. 00002727, Reference: CSC Computer Sciences.
“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent.
“Advance” means an Initial Advance or an Incremental Advance.
“Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person or is a director or executive officer (as such term is used in Regulation S-K promulgated under the Securities Act of 1933, as amended) of such Person.
“Agency Fee Letter” means the fee letter dated the date of this Agreement between the Company and the Administrative Agent setting out fees payable to the Administrative Agent pursuant to Section 2.04(a).
“Agreement” means this Credit Agreement, as this Credit Agreement may be amended, supplemented or otherwise modified from time to time.

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“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Company or its Subsidiaries from time to time concerning or relating to bribery or corruption.
“Applicable Lending Office” means, with respect to each Lender, the office of such Lender described as such in such Lender’s Administrative Questionnaire or such other office as a Lender may from time to time notify the Company and the Administrative Agent.
“Applicable Margin” means 0.80% per annum.
“Appropriate Lender” means, at any time, with respect to any Class of Borrowing, a Lender that has a Commitment with respect to such Class at such time. 
“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.
“Arrangement Fee Letter” means the fee letter dated the date of this Agreement between the Company and the Administrative Agent setting out fees payable to the Administrative Agent, for the account of the Initial Lenders, pursuant to Section 2.04(b).
“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee, and accepted by the Administrative Agent, in substantially the form of Exhibit A hereto.
“Availability Period” means the period from and including the Effective Date to and including the date that is 30 days thereafter.
“Bank Levy” means the bank levy introduced by Section 73 of and Schedule 19 to the Finance Act 2011 (as amended) and any other levy or Tax of a similar nature which is imposed by reference to the assets, liabilities or capital of any financial institution in any jurisdiction.
“Base Reference Bank Rate” means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Administrative Agent at its request by the Base Reference Banks:
(i) in relation to LIBOR:
(A) (other than where paragraph (B) below applies) as the rate at which the relevant Base Reference Bank could borrow funds in the London interbank market in the relevant currency and for the relevant period, were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period; or

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(B) if different, as the rate (if any and applied to the relevant Base Reference Bank and the relevant currency and period) which contributors to the applicable Screen Rate are asked to submit to the relevant administrator.
“Base Reference Banks” means, in relation to LIBOR, the principal London offices of such banks as may be appointed by the Administrative Agent in consultation with the Borrower.
“Beneficial Ownership Certification” means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.
“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.
“Borrower” has the meaning assigned to such term in the recital of parties.
“Borrowing” means a borrowing of Advances of the same Class made by each of the Appropriate Lenders pursuant to this Agreement on the same date to the Borrower pursuant to the same Notice of Borrowing.
“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general business in London.
“Capital Lease” means, with respect to any Person, any lease of any property by that Person as lessee which would, in conformity with GAAP, be required to be accounted for as a capital lease on the balance sheet of that Person.
“Change of Status Date” means the date on which the Borrower ceases to be a Subsidiary of the Company.
“Change of Status Maturity Date” means the earlier of (a) the last day of the Interest Period for the Advances outstanding on the Change of Status Date or (b) if the Lenders agree to waive the Borrower’s reimbursement obligations under Section 9.04(b), the date that is 45 days after the Change of Status Date. 
“Class” means, when used in reference to any Advance or Borrowing, refers to whether such Advance, or the Advances comprising such Borrowing, are Initial Advances or Incremental Advances, when used in reference to any Commitment, refers to whether such Commitment is an Initial Commitment or an Incremental Commitment and when used in reference to any Lender, refers to whether such Lender has an Advance or Commitment with respect to the applicable Class. 
“Code” means the Internal Revenue Code of 1986, as amended.
“Commitment” means an Initial Commitment or an Incremental Commitment.
“Consolidated EBITDA” means, for any period, the sum of (a) net income, plus (b) to the extent (except in the case of clause (b)(xvii) below) deducted in determining net 

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income for such period, the sum of (i) provisions for income taxes, plus (ii) consolidated interest expense and preferred dividends, plus (iii) depreciation and amortization (including, but not limited to, deferred financing costs, organization costs, goodwill, comprehensive income and non-compete amortization), plus (iv) extraordinary, unusual and non-recurring losses and charges, plus (v) other non-cash charges, plus (vi) fees, costs and expenses (including amounts in respect of settlements or judgments) related to, and any reserves established in respect of, the litigation and investigations identified on Schedule 1.01 hereto plus (vii) debt extinguishment charges and expenses, plus (viii) foreign currency translation losses, plus (ix) losses on investments, plus (x) mark-to-market and foreign currency conversion losses on hedging transactions and intercompany accounts, plus (xi) non-compete expenses, plus (xii) losses on sales of fixed assets not in the ordinary course of business, after giving effect to any related charges for, reduction of or provisions for taxes thereon, plus (xiii) minority interests, plus (xiv) charges and expenses arising from any changes in accounting with respect to pensions, plus (xv) charges and expense arising from any revaluation, lump-sum settlement, annuitization of pension assets and liabilities or contractual termination benefits, plus (xvi) fees, costs and expenses incurred in connection with any proposed or consummated acquisition permitted hereunder, plus (xvii) cost savings, operating expense reductions and synergies resulting from, or related to, mergers and other business combinations, acquisitions, divestitures, restructurings, cost savings initiatives and other similar initiatives and actions that are projected by the Company in good faith to be realized within 12 months from the fiscal quarter ended immediately after a merger or other business combination, acquisition or divestiture is consummated or any other restructuring, cost savings initiative or other initiative or action (calculated on a pro forma basis as though such cost savings, operating expense reductions and synergies had been realized on the first day of such period and as if such cost savings, operating expense reductions and synergies were realized during the entirety of such period), net of the amount of actual benefits realized during such period from such actions; provided that the aggregate amount of cost savings, operating expense reductions and synergies included pursuant to this clause (xvii), other than any cost savings, operating expense reductions and synergies of the type that would be permitted to be included in pro forma financial statements prepared in accordance with Regulation S-X under the Securities Act of 1933, as amended, shall not exceed $250,000,000; provided further that no cost savings, operating expense reductions and synergies shall be added back pursuant to this clause (xvii) to the extent duplicative of any expenses or charges otherwise added back to Consolidated EBITDA, whether through a pro forma adjustment or otherwise, for such period, minus (c) to the extent included in the calculation of net income for such period, the sum of (i) extraordinary, unusual or non-recurring gains, plus (ii) debt extinguishment gains, plus (iii) foreign currency translation gains, plus (iv) gains on investments, plus (v) mark-to-market and foreign currency conversion gains on hedging transactions and intercompany accounts, plus (vi) gains on sales of fixed assets not in the ordinary course of business, after giving effect to any related charges for, reduction of or provisions for, taxes thereon, plus (vii) other income (including other income attributable to minority interests).  For the purpose of calculating Consolidated EBITDA for any Person for any period, if during such period such Person or any Subsidiary of such Person shall have made a Material Acquisition or Material Disposition, Consolidated EBITDA for such period shall be calculated after giving pro forma effect to such Material Acquisition or 

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Material Disposition as if such Material Acquisition or Material Disposition occurred on the first day of such period.  “Material Acquisition” means any acquisition or series of related acquisitions that involves consideration (including non-cash consideration) with a fair market value, as of the date of the closing thereof, in excess of US$100,000,000 (or its equivalent in any other currency or currencies); provided that the Company may, in its sole discretion, treat an acquisition or series of related acquisitions that involve consideration of less than US$100,000,000 (or its equivalent in any other currency or currencies) as a Material Acquisition.  “Material Disposition” means any disposition of property or series of related dispositions of property that involves consideration (including non-cash consideration) with a fair market value, as of the date of the closing thereof, in excess of US$100,000,000 (or its equivalent in any other currency or currencies); provided that the Company may, in its sole discretion, treat a disposition or series of related dispositions that involves consideration of less than US$100,000,000 (or its equivalent in any other currency or currencies) as a Material Disposition.

“Consolidated Interest Expense” means, for any period, total interest expense (including that portion attributable to Capital Leases in accordance with GAAP and capitalized interest) of the Company and its Subsidiaries on a consolidated basis with respect to all outstanding Debt of the Company and its Subsidiaries, including all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing, net costs under Interest Rate Agreements and amounts referred to in Section 2.04 payable to the Administrative Agent and the Lenders that are considered interest expense in accordance with GAAP, but excluding, however, net interest and charges in connection with cash pooling and multi-currency notional pooling programs).
“Consolidated Total Debt” means, as of any date of determination, all Debt (excluding Equity-linked Debt and “advances” and “overdrafts” in respect of cash pooling and multi-currency notional pooling programs) of the Company and its Subsidiaries on a consolidated basis.
“CTA” means the Corporation Tax Act 2009.
“Customary Permitted Liens” means, with respect to any Person, any of the following Liens:
(a)    Liens with respect to the payment of taxes, assessments or governmental charges in each case that are not yet due or that are being contested in good faith by appropriate proceedings and with respect to which adequate reserves or other appropriate provisions are being maintained to the extent required by GAAP;
(b)    Liens of landlords arising by statute or lease contracts entered into in the ordinary course, inchoate, statutory or construction liens, and liens of suppliers, mechanics, carriers, materialmen, warehousemen, producers, operators or workmen and other liens imposed by law created in the ordinary course of business for amounts not yet due or that are being contested in good faith by appropriate proceedings and with respect to which 

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adequate reserves or other appropriate provisions are being maintained to the extent required by GAAP;
(c)    liens, pledges or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance or other types of social security benefits, taxes, assessments, statutory obligations or other similar charges or to secure the performance of bids, tenders, sales, leases, contracts (other than for the repayment of borrowed money) or in connection with surety, appeal, customs or performance bonds or other similar instruments;
(d)    encumbrances arising by reason of zoning restrictions, easements, licenses, reservations, covenants, rights-of-way, utility easements, building restrictions and other similar encumbrances on the use of real property not materially detracting from the value of such real property and not materially interfering with the ordinary conduct of the business conducted at such real property;
(e)    encumbrances arising under leases or subleases of real property that do not, individually or in the aggregate, materially detract from the value of such real property or materially interfere with the ordinary conduct of the business conducted at such real property;
(f)    encumbrances arising under licenses or sublicenses of intellectual property granted in the ordinary course of such Person’s business; 
(g)    financing statements with respect to a lessor’s rights in and to personal property leased to such Person in the ordinary course of such Person’s business; and
(h)    liens, pledges or deposits made in the ordinary course of banking arrangements in connection with any netting or set-off arrangements for the purpose of netting debit and credit balances.
“Debt” means, with respect to any Person, (a) indebtedness of such Person for borrowed money, (b) obligations of such Person evidenced by bonds, debentures, notes or other similar instruments and (c) obligations of such Person as lessee under Capital Leases; provided that “Debt” shall not include borrowings against the cash surrender value of life insurance policies covering employees of the Company or its Affiliates and owned by the Company so long as (i) recourse for such borrowings is limited to such policies and the proceeds thereof and (ii) any value assigned to such policies on the consolidated financial statements of the Company and its Subsidiaries is net of the amount of such borrowings.
“Default Interest” has the meaning specified in Section 2.07.
“Effective Date” means the first date on which the conditions precedent set forth in Section 3.01 have been satisfied.

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“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 9.07 (b)(iii) and Section 9.07 (b)(vi) (subject to such consents, if any, as may be required under Section 9.07 (b)(iii).
“Employee Benefit Plan” means any “employee benefit plan” as defined in Section 3(3) of ERISA which is or was maintained or contributed to by the Company, its Subsidiaries or any of its ERISA Affiliates.
“Environmental Law” means any and all statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or other governmental restrictions with or of any federal, state or local governmental authority within the United States or any State or territory thereof and which relate to the pollution or protection of the environment or the release of any hazardous materials into the environment.
“Equity-linked Debt” means Debt that is required to be converted at, or prior to, maturity into equity securities of the Company.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder.
“ERISA Affiliate” means any Person who for purposes of Title IV of ERISA is a member of the Company’s controlled group, or under common control with the Company, within the meaning of Section 414 of the Code and the regulations promulgated and rulings issued thereunder.  Any former ERISA Affiliate of the Company or its Subsidiaries shall continue to be considered an ERISA Affiliate within the meaning of this definition with respect to the period such entity was an ERISA Affiliate of the Company or its Subsidiaries and with respect to liabilities arising after such period for which the Company or its Subsidiaries could be liable under the Code or ERISA.
“ERISA Event” means (a) the occurrence of a reportable event, within the meaning of Section 4043 of ERISA, unless the 30-day notice requirement with respect thereto has been waived by the PBGC; (b) the provision by the administrator of any Pension Plan of a notice of intent to terminate such Pension Plan pursuant to Section 4041(a)(2) of ERISA (including any such notice with respect to a plan amendment referred to in Section 4041(e) of ERISA); (c) the cessation of operations at a facility in the circumstances described in Section 4062(e) of ERISA; (d) the withdrawal by the Company or an ERISA Affiliate from a Multiple Employer Plan during a plan year for which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (e) the failure by the Company or any ERISA Affiliate to make a payment to a Pension Plan required under Section 303(k) of ERISA, which Section imposes a lien for failure to make required payments; (f) the institution by the PBGC of proceedings to terminate a Pension Plan, pursuant to Section 4042 of ERISA, or the occurrence of any event or condition which, in the reasonable judgment of the Company, might constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, a Pension Plan; (g) the withdrawal by the Company or any ERISA Affiliate from any Multiemployer Plan or the termination of such 

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Multiemployer Plan resulting in liability pursuant to Title IV of ERISA; or (h) a determination that any Pension Plan is, or is expected to be, in “at-risk” status (within the meaning of Section 303(i)(4)(A) of ERISA or Section 430(i)(4)(A) of the Code).
“Events of Default” has the meaning specified in Section 6.01.
“Exchange Act Report” means, collectively, the Annual Reports of the Company on Form 10-K, from time to time, the Quarterly Reports on Form 10-Q, from time to time, and Reports on Form 8-K of the Company filed with or furnished to the SEC from time to time.
“Existing Credit Agreement” means that certain credit agreement dated as of December 16, 2015 among CSC Computer Sciences UK Holdings Limited, the Company, the lenders from time to time party thereto and Lloyds Bank plc, as administrative agent, as amended, supplemented or otherwise modified from time to time prior to the Effective Date.
“FATCA” means:
(a)    Sections 1471 to 1474 of the Code or any associated regulations or other official guidance;

(b)    any treaty, law, regulation or other official guidance enacted in any other jurisdiction, or relating to an intergovernmental agreement between the United States and any other jurisdiction, which (in either case) facilitates the implementation of paragraph (a) above; or

(c)    any agreement pursuant to the implementation of paragraphs (a) or (b) above with the United States Internal Revenue Service, the United States government or any governmental or taxation authority in any other jurisdiction.

“FATCA Application Date” means:
(a)    in relation to a “withholdable payment” described in Section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments from sources within the United States), July 1, 2014;

(b)    in relation to a “withholdable payment” described in Section 1473(1)(A)(ii) of the Code (which relates to “gross proceeds” from the disposition of property of a type that can produce interest from sources within the United States), January 1, 2019; or

(c)    in relation to a “passthru payment” described in Section 1471(d)(7) of the Code not falling within paragraphs (a) or (b) above, January 1, 2019, 

or, in each case, such other date from which such payment may become subject to a deduction or withholding required by FATCA as a result of any change in FATCA after the date of this Agreement.

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“FATCA Deduction” means a deduction or withholding from a payment under a Loan Document required by FATCA.
“FATCA Exempt Party” means a party that is entitled to receive payments free from any FATCA Deduction.
“Funding Date” means each date on which the Initial Lenders make or are to make (as the case may be) an Initial Advance, which dates shall occur during the Availability Period.
“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination.
“Governmental Authority” means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).
“Guaranteed Obligations” has the meaning specified in Section 7.01.
“Holding Company” has the meaning specified in Section 6.01 (h).
“Incremental Advances” means Advances made by one or more Incremental Lenders to the Borrower pursuant to this Agreement.  
 “Incremental Assumption Agreement” has the meaning specified in Section 2.18(b).
“Incremental Commitment” means the commitment of any Incremental Lender, established pursuant to Section 2.18, to make Incremental Advances to the Borrower.
“Incremental Facility” means, at any time, the aggregate amount of Incremental Commitments of the Incremental Lenders party to the Incremental Assumption Agreement related thereto.
 “Incremental Facility Amendment” has the meaning specified in Section 2.18(a).
“Incremental Lender” shall mean any bank, financial institution or other investor with an Incremental Commitment or an outstanding Incremental Advance.
“Indemnified Person” has the meaning specified in Section 9.04 (c).

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“Initial Advance” means a loan made by an Initial Lender to the Borrower during the Availability Period pursuant to Section 2.01(a)(i).
“Initial Commitment” means the commitment of an Initial Lender to make Initial Advances during the Availability Period in an aggregate principal amount not to exceed the amount for such Initial Lender set forth on Schedule I.  
“Initial Lender” shall mean any bank, financial institution or other investor with an Initial Commitment or an outstanding Initial Advance.
“Interest Period” means the period commencing on the applicable Funding Date and ending three months thereafter, and each period thereafter commencing on the last day of the preceding Interest Period and ending three months thereafter; provided, however, that:
(a)    any Interest Period which would end after the Maturity Date will end on the Maturity Date;
(b)    any Interest Period that begins on the last Business Day of any calendar month, or on any day for which there is no corresponding day in the last month of such Interest Period, shall end on the last Business Day of the month at the end of such Interest Period; 
(c)    whenever the last day of any Interest Period would otherwise occur on a day other than a Business Day, the last day of such Interest Period shall be extended to occur on the next succeeding Business Day, provided, that if such extension would cause the last day of such Interest Period to occur in the next following calendar month, the last day of such Interest Period shall occur on the next preceding Business Day; and
(d)    the initial Interest Period with respect to any Incremental Advance shall commence on the date of borrowing of such Incremental Advance and end on the last day of the Interest Period then applicable to the Advances outstanding immediately prior to the borrowing of such Incremental Advance.
“Interest Rate Agreement” means any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement or other similar agreement or arrangement to which the Company or any of its Subsidiaries is a party.
“Interpolated Screen Rate” means, in relation to any Advance, the rate (rounded to the same number of decimal places as the two relevant Screen Rates) which results from interpolating on a linear basis between: 
(a) the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Interest Period of that Advance; and 
(b) the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Interest Period of that Advance, 

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each as of the Specified Time for the currency of that Advance.
“ITA” means the Income Tax Act 2007. 
“Lenders” means the Initial Lenders, the Incremental Lenders, if any, and any other Person that shall become a party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.
“LIBOR” means, in relation to any Interest Period with respect to any Advance:
(a) the applicable Screen Rate as of the Specified Time for the currency of that Loan and for a period equal in length to the Interest Period of that Loan; or 
(b)  as otherwise determined pursuant to Section 2.08 (b), 
and, if that rate is less than zero, LIBOR shall be deemed to be zero.
 “Lien” means any lien, mortgage, pledge, security interest, charge or encumbrance of any kind (including any interest of a vendor or lessor under any conditional sale or other title retention agreement and any lease in the nature thereof).
“Loan Document” means this Agreement, the Agency Fee Letter, the Arrangement Fee Letter and any Note.
“Majority Lenders” means at any time Lenders holding greater than 66 2/3 % of the sum of (i) the then unpaid principal amount of the Advances held by all Lenders and (ii) the unfunded Commitments of all Lenders then outstanding.
“Majority LIBOR Lenders” means at any time Lenders holding greater than 50% of the sum of (i) the then unpaid principal amount of the Advances held by all Lenders and (ii) the unfunded Commitments of all Lenders then outstanding.
“Maturity Date” means the earlier of (a) January 15, 2022 or, if such day is not a Business Day, the first Business Day thereafter and (b) the Change of Status Maturity Date or, if such day is not a Business Day, the first Business Day thereafter.
“Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which the Company or any ERISA Affiliate of the Company is making, or is obligated to make, contributions or has within any of the preceding six plan years been obligated to make or accrue contributions.
“Multiple Employer Plan” means a Single Employer Plan, as defined in Section 4001(a)(15) of ERISA, which (a) is maintained for employees of the Company or an ERISA Affiliate and at least one Person other than the Company and its ERISA Affiliates or (b) was so maintained and in respect of which the Company or an ERISA Affiliate could 

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have liability under Section 4063, 4064 or 4069 of ERISA in the event such plan has been or were to be terminated.
“Note” means a promissory note of the Borrower payable to the order of any Lender, delivered pursuant to a request made under Section 2.14, evidencing the aggregate indebtedness of the Borrower to such Lender resulting from the Advances made or held by such Lender.
“Participant” has the meaning specified in Section 9.07(d).
“PBGC” means the U.S. Pension Benefit Guaranty Corporation.
“Pension Plan” means a Single Employer Plan or a Multiple Employer Plan or both.
“Person” means an individual, partnership, corporation, business trust, joint stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof.
“Potential Event of Default” means a condition or event which, after notice or lapse of time or both, would constitute an Event of Default if that condition or event were not cured or removed within any applicable grace or cure period.
“Protected Party” means a Lender which is or will be subject to any liability, or required to make any payment, for or on account of Tax in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Loan Document.
“Qualifying Lender” means:
(a)    a Lender which is beneficially entitled to interest payable to that Lender in respect of an Advance under a Loan Document and is:

(i)    a Lender:

(A)    which is a bank (as defined for the purpose of Section 879 of the ITA) making an Advance (or a portion thereof) under a Loan Document and is within the charge to UK corporation tax as respects any payments of interest made in respect of such Advance (or such portion) or would be within such charge as respects such payments apart from Section 18A of the CTA; or

(B)    in respect of an Advance (or a portion thereof) made by a person that was a bank (as defined for the purpose of Section 879 of the ITA) at the time that such Advance (or such portion) was made and within the charge to UK corporation tax as respects any payments of interest made in respect of such Advance (or such portion); or, 

(ii)    a Treaty Lender; or

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(b)    a Lender which is a building society (as defined for the purpose of Section 880 of the ITA) making an Advance (or a portion thereof) under a Loan Document.

“Quotation Day” means, in relation to any period for which an interest rate is to be determined the first day of that period unless market practice differs in the Relevant Interbank Market for a currency, in which case the Quotation Day for that currency will be determined by the Administrative Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Quotation Day will be the last of those days).

“Register” has the meaning specified in Section 9.07 (c).
“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents and advisors of such Person and of such Person’s Affiliates.
“Relevant Interbank Market” means the London interbank market.
“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom.
“Sanctioned Country” means, at any time, a country or territory which is the subject or target of any comprehensive territorial Sanctions.
“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, the United Nations Security Council, or the European Union, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person controlled by any such Person.
“Screen Rate” means, in relation to LIBOR, the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for the relevant currency and period displayed on pages LIBOR01 or LIBOR02 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate), or on the appropriate page of such other information service which publishes that rate from time to time in place of Thomson Reuters. If such page or service ceases to be available, the Administrative Agent may specify another page or service displaying the relevant rate with the consent of the Company (not to be unreasonably withheld or delayed).

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“Significant Subsidiary” means, at any time, the Borrower and any Subsidiary of the Company which accounts for more than 5% of consolidated total assets or 5% of consolidated revenue of the Company determined in accordance with GAAP.
“Single Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, which (a) is maintained for employees of the Company or any ERISA Affiliate and no Person other than the Company and its ERISA Affiliates or (b) was so maintained and in respect of which the Company or an ERISA Affiliate could have liability under Section 4062 or 4069 of ERISA in the event such plan has been or were to be terminated.
“Specified Time” means a time determined in accordance with Schedule 1.03 hereto.
“Sterling” and “£”means the lawful currency of England.
“Subsidiary” of any Person means any corporation, association, partnership or other business entity of which at least 50% of the total voting power of shares of stock or other securities entitled to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a combination thereof.  Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Company.
“Taxes” means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same); and “Tax” and “Taxation” shall be construed accordingly.
“Tax Credit” means a credit against, relief or remission for, or repayment of any Tax.
“Tax Deduction” means a deduction or withholding for or on account of Tax from a payment under a Loan Document, other than a FATCA Deduction. 
“Tax Payment” means either the increase in a payment made by a Borrower to a Lender under Section 2.12 (a) (Tax Gross-Up) or a payment under Section 2.12 (b) (Tax Indemnity).
“Treaty Lender” means a Lender which:
(a)    is treated as a resident of a Treaty State for the purposes of the Treaty;
(b)    does not carry on a business in the UK through a permanent establishment with which that Lender’s participation in an Advance is effectively connected; and
(c)    meets all other conditions in the Treaty for full exemption from Tax on interest in the UK, assuming the completion of any necessary procedural formalities.

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“Treaty State” means a jurisdiction having a double taxation agreement (a “Treaty”) with the UK which makes provision for full exemption from Tax imposed by the UK on interest.
 “UK” means the United Kingdom of Great Britain and Northern Ireland.
“US Tax Borrower” means:
(a)    a Borrower which is resident for tax purposes in the United States of America; or
(b)    a Borrower some or all of whose payments under the Loan Documents are from sources within the United States for US federal income tax purposes.
“VAT” means: 
(a) any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); and
(b) any other tax of a similar nature, whether imposed in a member state of the European Union in substitution for, or levied in addition to, such tax referred to in paragraph (a), or imposed elsewhere.
“US$” each means lawful currency of the United States of America.
 “Withdrawal Liability” has the meaning given such term under Part I of Subtitle E of Title IV of ERISA.
Section 1.02    Computation of Time Periods.  In this Agreement in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each means “to but excluding”.
Section 1.03    Accounting Terms.  All accounting terms not specifically defined herein shall be construed in accordance with GAAP consistent with those applied in the preparation of the financial statements referred to in Section 4.01 (e).  All computations determining compliance with financial covenants or terms, including definitions used therein, shall be prepared in accordance with generally accepted accounting principles in effect at the time of the preparation of, and in conformity with those used to prepare, the historical financial statements delivered to the Lenders pursuant to Section 4.01 (e).  If at any time the computations for determining compliance with financial covenants or provisions relating thereto utilize generally accepted accounting principles different than those then being utilized in the financial statements being delivered to the Lenders, such financial statements shall be accompanied by a reconciliation statement.  If at any time any change in GAAP or the required adoption by the Company of international financial reporting standards would affect the computation of any financial ratio or requirement set forth in this Agreement, and either the Company or the Majority Lenders shall so request, the Administrative Agent, the Lenders and the Company shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof 

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in light of such change in GAAP or the adoption of such international financial reporting standards (subject to the approval of the Majority Lenders); provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP in effect at the time of the preparation of, and in conformity with those used to prepare, the historical financial statements delivered to the Lenders pursuant to Section 4.01(e) and (ii) the Company shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP or the adoption of such international financial reporting standards.  Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein, (a) whether a lease constitutes a capital lease or an operating lease shall be determined based on GAAP as in effect on the date hereof, notwithstanding any modification or interpretative change thereto after the date hereof and (b) all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made (i) without giving effect to any election under Accounting Standards Codification 825-10-25 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any Debt or other liabilities of the Company or any Subsidiary thereof at “fair value”, as defined therein and (ii) without giving effect to any treatment of Debt in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Debt in a reduced or bifurcated manner as described therein, and such Debt shall at all times be valued at the full stated principal amount thereof.
ARTICLE II     
AMOUNT AND TERMS OF THE ADVANCES
Section 2.01    The Advances.
(b)    (i)     Each Initial Lender severally agrees, on the terms and conditions hereinafter set forth, to make up to three Initial Advances denominated in Sterling during the Availability Period to the Borrower in an aggregate principal amount not to exceed its Initial Commitment.
(ii)    Each Incremental Advance shall be made by the applicable Incremental Lender on the date and in the amount provided for in the applicable Incremental Facility Amendment.

(c)    The Borrower may make up to three borrowings of the Initial Advances, each of which shall be made on a Funding Date during the Availability Period.  Any amount borrowed under this Section 2.01 and subsequently repaid or prepaid may not be reborrowed.  The relevant portion of the Initial Commitment of each Initial Lender shall terminate immediately and without further action on each Funding Date after giving effect to the funding of such portion of such Initial Lender’s Initial Commitment on such date.

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Section 2.02    Making the Advances(a)    (i)    Each Borrowing of Initial Advances shall be made by delivery of a notice (a “Notice of Borrowing”), given not later than 12:00 noon (London time) on the second Business Day prior to each proposed Funding Date, by the Company to the Administrative Agent, which shall give to each Initial Lender prompt notice thereof.  Such Notice of a Borrowing, in substantially the form of Exhibit C hereto, shall specify therein the requested (i) Funding Date for such Borrowing, (ii)  Class of such Borrowing and (iii) aggregate amount of such Borrowing.  Each Initial Lender shall, before 11:00 A.M. (London time) on the requested Funding Date of such Borrowing, make available for the account of its Applicable Lending Office to the Administrative Agent at its address referred to in Section 9.02, in same day funds, such Lender’s ratable portion of such Borrowing.  Upon fulfillment of the applicable conditions set forth in Article III, the Administrative Agent will make such funds available to the Borrower in like funds as received by the Administrative Agent either by (i) crediting the account of the Borrower on the books of the Administrative Agent with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the Borrower.
(ii)    Each Borrowing of Incremental Advances shall be made on such notice and funded at such time as shall be provided in the applicable Incremental Facility Amendment.

(b)    Anything in subsection (a) above to the contrary notwithstanding, if any Appropriate Lender shall notify the Administrative Agent that the introduction of or any change in or in the interpretation of any law or regulation, in each case after the Effective Date, makes it unlawful, or that any central bank or other Governmental Authority asserts that it is unlawful, for such Lender or its Applicable Lending Office to perform its obligations hereunder to make the Advances or to fund or maintain all or a portion of the Advances hereunder, the Commitment of such Lender to make the Advances or to maintain all or a portion of the Advances shall forthwith be suspended until the Administrative Agent shall notify the Company and the Borrower that such Lender has determined that the circumstances causing such suspension no longer exist and the Borrower shall prepay the portion of the Advances held by such Lender, either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Advance to such day, or immediately, if such Lender may not lawfully continue to maintain such portion of the Advances.
(c)    Unless the Administrative Agent shall have received notice from an Appropriate Lender at least one hour prior to the time any Borrowing is due to be funded by the Appropriate Lenders that such Lender will not make available to the Administrative Agent such Lender’s ratable portion of such Borrowing, the Administrative Agent may assume that such Lender has made such portion available to the Administrative Agent on the date of such Borrowing in accordance with subsection (a) of this Section 2.02 and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount.  If and to the extent that such Lender shall not have so made such ratable portion available to the Administrative Agent, such Lender and the Borrower severally agree to repay to the Administrative Agent forthwith on demand such corresponding amount together with interest thereon, for each day 

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from the date such amount is made available to the Borrower until the date such amount is repaid to the Administrative Agent, at (i) in the case of the Borrower, the higher of (A) the interest rate applicable at the time to the Advances comprising such Borrowing and (B) the cost of funds incurred by the Administrative Agent in respect of such amount and (ii) in the case of such Lender, the cost of funds incurred by the Administrative Agent in respect of such amount.  If such Lender shall repay to the Administrative Agent such corresponding amount, such amount so repaid shall constitute such Lender’s Advance as part of such Borrowing for purposes of this Agreement.
(d)    The failure of any Lender to make an Advance to be made by it as part of any Borrowing shall not relieve any other Appropriate Lender of its obligation, if any, hereunder to make its Advance on the date of such Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the Advance to be made by such other Lender on the date of any Borrowing.
(e)    Each Notice of Borrowing shall be irrevocable and binding on the Borrower.
Section 2.03    [Reserved].
Section 2.04    Fees.     The Company agrees to pay (a) to the Administrative Agent, the fees payable pursuant to the Agency Fee Letter and (b) to the Administrative Agent, for the account of each Initial Lender, the fees payable pursuant to the Arrangement Fee letter, in each case in the amounts and at the times specified in such letters.  
Section 2.05    [Reserved].
Section 2.06    Repayment and Prepayment of the Advances. 
(a)    Repayment on Maturity Date.  The Borrower shall repay to the Administrative Agent for the account of the Lenders the outstanding principal amount of the Advances on the Maturity Date.
(b)    [Reserved].
(c)    Voluntary Prepayments of the Advances.  The Borrower shall not have any right to prepay any principal amount of the Advances other than as provided in this subsection (c).  The Borrower may, at any time after the applicable Funding Date, and upon notice to the Administrative Agent provided not later than 12:00 noon (London time) at least two Business Days prior to the proposed date of prepayment, in each case stating the proposed date and principal amount of the prepayment, prepay such stated amount; provided, however, that (i) each partial prepayment shall be in an aggregate principal amount of not less than £5,000,000 and (ii)  the Borrower shall pay all accrued interest to the date of such prepayment on the portion of the Advances being prepaid and shall be obligated to reimburse the Lenders in respect thereof pursuant to Section 9.04(b).
Section 2.07    Interest on the Advances.  The Borrower shall pay interest accrued on the principal amount of the Advances outstanding from time to time (i) in the case of the Initial Advances, from the applicable Funding Date and (ii) in the case of any Incremental Advances, from the date on which such Incremental Advances are made, until such principal 

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amount shall be paid in full at a rate per annum equal at all times during the Interest Period for the applicable Advances to the sum of LIBOR for such Interest Period plus the Applicable Margin, payable in arrears on the last day of such Interest Period; provided that the Administrative Agent may, upon the request of the Majority Lenders, require that the Borrower pay interest (“Default Interest”) on any principal amount of the Advances which is not paid when due (whether at stated maturity, by acceleration or otherwise) from the date on which such amount is due until such amount is paid in full, payable on demand, at a rate per annum equal at all times to 2% per annum above the rate per annum required to be paid on such amount immediately prior to the date on which such amount became due; provided, however, that following the making of the request or the granting of the consent specified by Section 6.01 to authorize the Administrative Agent to declare the Advances due and payable pursuant to the provisions of Section 6.01, and upon acceleration of the Advances, Default Interest shall accrue and be payable hereunder whether or not previously required by the Majority Lenders.
Section 2.08    Interest Rate Determination.  
(b)    The Administrative Agent shall give prompt notice to the Company, the applicable Borrower and the Lenders of the applicable interest rate determined by the Administrative Agent for purposes of Section 2.07.
(c)    If no Screen Rate is available for LIBOR for the Interest Period of a Loan, the applicable LIBOR  shall be the Interpolated Screen Rate for a period equal in length to the Interest Period of that Loan. 
 
(d)    If no Screen Rate is available for LIBOR  for:
(A)    the currency of a Loan; or 
(B)    the Interest Period of a Loan and it is not possible to calculate the Interpolated Screen Rate, 

the applicable LIBOR shall be the Base Reference Bank Rate as of the Specified Time for the currency of that Loan and for a period equal in length to the Interest Period of that Loan.
 
(e)    If paragraph (c) above applies but no Base Reference Bank Rate is available for the relevant currency or Interest Period there shall be no LIBOR for that Loan and Section 2.08(e) below shall apply to that Loan for that Interest Period.
(f)    Notwithstanding anything to the contrary in this Agreement or any other Loan Documents, if the Administrative Agent determines (which determination shall be conclusive absent manifest error), or the Company or the Majority LIBOR Lenders notify the Administrative Agent (with, in the case of the Majority LIBOR Lenders, a copy to the Company) that the Company or Majority LIBOR Lenders (as applicable) have determined, that:

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(A)    adequate and reasonable means do not exist for ascertaining LIBOR for the applicable currency and the requested Interest Period, including, without limitation, because the Screen Rate is not available or published on a current basis and such circumstances are unlikely to be temporary; or
(B)    the supervisor for the administrator of LIBOR or a Governmental Authority having jurisdiction over the Administrative Agent has made a public statement identifying a specific date after which LIBOR or the Screen Rate shall no longer be made available, or used for determining the interest rate of loans (such specific date, the “Scheduled Unavailability Date”),

then, after such determination by the Administrative Agent or receipt by the Administrative Agent of such notice, as applicable, the Administrative Agent and the Company may amend this Agreement to replace LIBOR with an alternate benchmark rate (including any mathematical or other adjustments to the benchmark (if any) incorporated therein) giving due consideration to the then prevailing market convention broadly accepted by the syndicated loan market for determining a rate of interest for syndicated loans at such time (any such proposed rate, a “LIBOR Successor Rate”), together with any proposed LIBOR Successor Rate Conforming Changes (as defined below) and, notwithstanding anything to the contrary in Section 9.01, any such amendment shall become effective at 5:00 p.m. (New York City time) on the fifth Business Day after the Administrative Agent shall have posted such proposed amendment to all Lenders and the Company unless, prior to such time, Lenders comprising the Majority LIBOR Lenders have delivered to the Administrative Agent written notice that such Majority LIBOR Lenders do not accept such amendment.
If no LIBOR Successor Rate has been determined and the circumstances under clause (i) above exist or the Scheduled Unavailability Date has occurred (as applicable), the Administrative Agent will promptly so notify the Company and each Lender. Thereafter, the obligation of the Lenders to make or maintain Advances shall be suspended (to the extent of the affected Advances or Interest Periods).  Upon receipt of such notice, the Company may revoke any pending request for a Borrowing of Advances (to the extent of the affected Advances or Interest Periods) or, failing that, will be deemed to have converted such request into a request for a Borrowing of Advances bearing interest at a rate for short term borrowings of Sterling determined in good faith by the Agent in a manner substantially consistent with market practice in consultation with the Company and, notwithstanding anything to the contrary in Section 9.01, such rate shall become effective at 5:00 p.m. (New York City time) on the fifth Business Day after the Administrative Agent shall have posted such proposed rate to all Lenders unless, prior to such time, Lenders comprising the Majority LIBOR Lenders have delivered to the Administrative Agent written notice that such Majority LIBOR Lenders do not accept such rate, in each case in the amount specified therein.

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“LIBOR Successor Rate Conforming Changes” means, with respect to any proposed LIBOR Successor Rate, any conforming changes to the definitions of Base Reference Bank Rate and Interest Period and any related definitions, the timing and frequency of determining rates and making payments of interest and other administrative matters as may be appropriate, in the discretion of the Administrative Agent and with the consent of the Company (such consent not to be unreasonably withheld, delayed or conditioned), to reflect the adoption of such LIBOR Successor Rate and to permit the administration thereof by the Agent in a manner substantially consistent with market practice (or, if the Administrative Agent determines that adoption of any portion of such market practice is not administratively feasible or that no market practice for the administration of such LIBOR Successor Rate exists, in such other manner of administration as the Administrative Agent determines with the consent of the Company (such consent not to be unreasonably withheld, delayed or conditioned)).  For the avoidance of doubt, any amendment effectuating any LIBOR Successor Rate Conforming Changes shall be subject to the Company’s approval.
Section 2.09    [Reserved].
Section 2.10    Increased Costs.
(a)    If, due to either (i) the introduction of or any change in or in the interpretation of any law or regulation, in each case after the Effective Date, or (ii) the compliance with any guideline or request from any central bank or other Governmental Authority (whether or not having the force of law), in each case issued after the Effective Date, there shall be any increase in the cost (other than with respect to Taxes) to any Lender of agreeing to make or making, funding or maintaining a portion of the Advances, then the Borrower shall from time to time, upon demand by such Lender (with a copy of such demand to the Administrative Agent), pay to the Administrative Agent for the account of such Lender additional amounts sufficient to compensate such Lender for such increased cost.  A reasonably detailed certificate as to the amount and manner of calculation of such increased cost, submitted to the Company, the Borrower and the Administrative Agent by such Lender, shall be conclusive and binding for all purposes, absent manifest error.
(b)    If any Lender determines that compliance with any law or regulation or any guideline or request from any central bank or other Governmental Authority (whether or not having the force of law), in each case issued after the Effective Date, affects or would affect the amount of capital or liquidity required or expected to be maintained by such Lender or any corporation controlling such Lender and that the amount of such capital or liquidity is increased by or based upon the existence of such Lender’s commitment to lend hereunder and other commitments of this type, then, upon demand by such Lender (with a copy of such demand to the Administrative Agent), the Borrower shall immediately pay to the Administrative Agent for the account of such Lender, from time to time as specified by such Lender, additional amounts sufficient to compensate such Lender or such corporation in the light of such circumstances, to the extent that such Lender reasonably determines such increase in capital or liquidity to be allocable to the existence of such Lender’s commitment to lend hereunder.  A reasonably detailed certificate as to such amounts and 

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the manner of calculation thereof submitted to the Borrower and the Administrative Agent by such Lender shall be conclusive and binding for all purposes, absent manifest error.  For the avoidance of doubt and notwithstanding anything in this Section to the contrary, this Section 2.10(b) shall apply to the implementation or application of, or compliance with, Basel III or CRD IV and any law or regulation that implements or applies Basel III or CRD IV, regardless of the date enacted, adopted, issued or implemented. 
(c)    If a Lender shall change its Applicable Lending Office, such Lender shall not be entitled to receive any greater payment under Section 2.10 and Section 2.12 than the amount such Lender would have been entitled to receive if it had not changed its Applicable Lending Office, unless such change was made at the request of the Company or at a time when the circumstances giving rise to such greater payment did not exist.
(d)    Section 2.10 (a) and Section 2.10 (b) do not apply to the extent any increased cost is (i) attributable to a Tax Deduction required by law to be made by the Borrower, (ii) attributable to a FATCA Deduction required to be made by a party, (iii) compensated for by Section 2.12 (b)(or would have been compensated for under Section 2.12 (b) but was not so compensated solely because of the exclusions in Section 2.12 (b) applied) or (iv) is attributable to the implementation or application of, or compliance with, a Bank Levy.

(e)    In this Section 2.10:

		
	(i)
	“Basel III” means:

(A)    the agreements on capital requirements, a leverage ratio and liquidity standards contained in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III: International framework for liquidity risk measurement, standards and monitoring” and “Guidance for national authorities operating the countercyclical capital buffer” published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or restated;
(B)    the rules for global systematically important banks contained in “Global systemically important banks: assessment methodology and the additional loss absorbency requirements – Rules text” published by the Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated; and
(C)    any further guidance or standards published by the Basel Committee on Banking Supervision relating to “Basel III”.

		
	(ii)
	“CRD IV” means:

(A)     Regulation (EU) No 575/2013 of European parliament and of Council of 26 June 2013 on prudential requirements for credit institutions and investment firms; and

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(B)    Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/97/EC and repealing Directives 2006/481/EC and 2006/49 EC.

Section 2.11    Payments and Computations.
(a)    The Borrower shall make each payment hereunder (except with respect to principal of, interest on, and other amounts relating to, the Advances) not later than 1:00 P.M. (London time) on the day when due in Sterling to the Administrative Agent at its address referred to in Schedule 1.02 in same day funds, without setoff, deduction or counterclaim.  The Borrower shall make each payment hereunder with respect to principal of, interest on, and other amounts relating to, the Advances not later than 11:00 A.M. on the day when due to the Administrative Agent, by deposit of such funds to the Administrative Agent’s Account in same day funds, without setoff, or counterclaim.  Subject to the immediately succeeding sentence, the Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest ratably to the Lenders for the account of their respective Applicable Lending Offices and like funds relating to the payment of any other amount payable to any Lender to such Lender for the account of its Applicable Lending Office, in each case to be applied in accordance with the terms of this Agreement.  Upon receipt of principal or interest paid after an Event of Default and an acceleration or a deemed acceleration of amounts due hereunder, the Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest ratably in accordance with each Lender’s outstanding Advances to the Lenders for the account of their respective Applicable Lending Offices.  Upon its acceptance of an Assignment and Assumption and recording of the information contained therein in the Register pursuant to Section 9.07 (c), from and after the effective date specified in such Assignment and Assumption, the Administrative Agent shall make all payments hereunder in respect of the interest assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Assumption shall make all appropriate adjustments in such payments for periods prior to such effective date directly between themselves.
(b)    All computations of interest shall be made by the Administrative Agent on the basis of a year of 365 days, in each case for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest is payable.  Each determination by the Administrative Agent of an interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error.
(c)    Whenever any payment hereunder shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest; provided, however, if such extension would cause payment of interest on or principal of the Advances to be made in the next following calendar month, such payment shall be made on the next preceding Business Day.
(d)    Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Lenders hereunder that the Borrower 

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will not make such payment in full, the Administrative Agent may assume that the Borrower has made such payment in full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender.  If and to the extent that the Borrower shall not have so made such payment in full to the Administrative Agent, each Lender shall repay to the Administrative Agent forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to the Administrative Agent at the cost of funds incurred by the Administrative Agent in respect of such amount.
Section 2.12    Taxes.
Unless a contrary indication appears, in this Section 2.12 a reference to “determines” or “determined” means a determination made in good faith and acting reasonably by the person making the determination.
(a)    Tax Gross-Up
(i)    The Borrower shall make all payments to be made by it to a Lender without any Tax Deduction, unless a Tax Deduction is required by law.
(ii)    The Borrower shall promptly upon becoming aware that it must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Administrative Agent accordingly.  Similarly, a Lender shall notify the Administrative Agent on becoming so aware in respect of a payment payable to that Lender.  If the Administrative Agent receives such notification from a Lender it shall notify the Borrower.
(iii)    If a Tax Deduction is required by law to be made by the Borrower, the amount of the payment due from the Borrower shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.
(iv)    A payment shall not be increased under paragraph (iii) above by reason of a Tax Deduction on account of Tax imposed by the UK, if on the date on which the payment falls due:
(A)    the payment could have been made to the relevant Lender without a Tax Deduction if the Lender had been a Qualifying Lender, but on that date that Lender is not or has ceased to be a Qualifying Lender other than as a result of any change after the date it became a Lender under this Agreement in (or in the interpretation, administration, or application of) any law or Treaty or any published practice or published concession of any relevant taxing authority; or 
(B)    the relevant Lender is a Treaty Lender and the Borrower is able to demonstrate that the payment could have been made to the Lender 

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without the Tax Deduction had that Lender complied with its obligations under paragraph (vii) below.
(v)    If the Borrower is required to make a Tax Deduction, it shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law.
(vi)    Within thirty days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Borrower making that Tax Deduction shall deliver to the Administrative Agent for the Lender entitled to the payment evidence reasonably satisfactory to that Lender that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.
(vii)    A Treaty Lender and the Borrower which makes a payment to which that Treaty Lender is entitled shall co-operate in completing any procedural formalities necessary for the Borrower to obtain authorization to make that payment without a Tax Deduction. 
(b)    Tax Indemnity
(i)    The Borrower shall (within ten Business Days of demand by the Administrative Agent) pay to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party in respect of a Loan Document.
(ii)    Paragraph (i) above shall not apply: 
(A)    with respect to any Tax assessed on a Lender:
(1)    under the law of the jurisdiction in which that Lender is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Lender is treated as resident for tax purposes; or
(2)    under the law of the jurisdiction in which that Lender’s Applicable Lending Office is located in respect of amounts received or receivable in that jurisdiction,
if that Tax is: imposed on or calculated by reference to the net income received or receivable (but not any sum deemed to be received or receivable) by that Lender; or attributable to the implementation or application of, or compliance with the Bank Levy; or
(B)    to the extent a loss, liability or cost is compensated for by an increased payment under Section 2.12 (a) (Tax gross-up) or relates to a FATCA Deduction required to be made by a party.
(iii)    A Protected Party making, or intending to make a claim under paragraph (i) above shall promptly notify (with reasonable details) the Administrative Agent of the 

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event which will give, or has given, rise to the claim, following which the Administrative Agent shall notify the Borrower. 
(iv)    A Protected Party shall, on receiving a payment from a Borrower under this Section 2.12 (b), notify the Administrative Agent.
(c)    Tax Credit
If the Borrower makes a Tax Payment and the relevant Lender determines that: 
(i)    a Tax Credit is attributable to an increased payment of which that Tax Payment forms part, to that Tax Payment or to a Tax Deduction in consequence of which that Tax Payment was required; and 
(ii)    that Lender has obtained and utilized that Tax Credit, the Lender shall pay an amount to the Borrower which that Lender determines will leave it (after that payment) in the same after-Tax position as it would have been in had the Tax Payment not been required to be made by the Borrower.
If the Borrower makes a Tax Deduction in respect of a payment of interest to a Treaty Lender, and Section 2.12 (a) applies to increase the amount of the payment due to that Treaty Lender from the Borrower, the Borrower must promptly provide the Treaty Lender with a tax deduction certificate evidencing the Tax Deduction.  The Treaty Lender must, within a reasonable period following receipt of the certificate, apply to the appropriate tax authority for a refund of the amount of the Tax Deduction and on receipt by the Treaty Lender of that amount, that refund will be considered a Tax Credit and this Section 2.12 (c) will apply.

(d)    Lender Status Confirmation
Each Lender which becomes a party to this Agreement after the date of this Agreement shall indicate, in the Assignment and Assumption which it executes on becoming a party to this Agreement, and for the benefit of the Administrative Agent and without liability to the Borrower, which of the following categories it falls in:
(i)    not a Qualifying Lender;
(ii)    a Qualifying Lender (other than a Treaty Lender); or
(iii)    a Treaty Lender.
If such Lender fails to indicate its status in accordance with this Section 2.12 (d) then such Lender shall be treated for the purposes of this Agreement (including by the Borrower) as if it is not a Qualifying Lender until such time as it notifies the Administrative Agent which category applies (and the Administrative Agent, upon receipt of such notification, shall inform the Borrower). For the avoidance of doubt, an Assignment and Assumption shall not be invalidated by any failure of a Lender to comply with this Section 2.12 (d).

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(e)    Stamp taxes
The Borrower shall pay and, within three Business Days of demand, indemnify each Lender against any cost, loss or liability that Lender incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Loan Document, except any such duty or Tax payable solely in respect of an Assignment and Assumption or any other document pursuant to which a Lender assigns (in whole or in part) its interest in the Loan or pursuant to which a Lender changes its Applicable Lending Office.
(f)    VAT
(i)    All amounts expressed to be payable under a Loan Document by any party hereto to a Lender which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply, and accordingly, subject to paragraph (ii) below, if VAT is or becomes chargeable on any supply made by any Lender to any party under a Loan Document and such Lender is required to account to the relevant tax authority for the VAT, such party must pay to such Lender (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and such Lender must promptly provide an appropriate VAT invoice to such party).
(ii)    If VAT is or becomes chargeable on any supply made by any Lender (the “Supplier”) to any other Lender (the “Recipient”) under a Loan Document, and any party other than the Recipient (the “Relevant Party”) is required by the terms of any Loan Document to pay an amount equal to the consideration for that supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration):
(A)    (where the Supplier is the person required to account to the relevant tax authority for the VAT) the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to the amount of the VAT. The Recipient must (where this paragraph A applies) promptly pay to the Relevant Party an amount equal to any credit or repayment the Recipient receives from the relevant tax authority which the Recipient reasonably determines relates to the VAT chargeable on that supply; and
(B)    (where the Recipient is the person required to account to the relevant tax authority for the VAT) the Relevant Party must promptly, following demand from the Recipient, pay to the Recipient an amount equal to the VAT chargeable on that supply but only to the extent that the Recipient reasonably determines that it is not entitled to credit or repayment from the relevant tax authority in respect of that VAT.
(iii)    Where a Loan Document requires any party hereto to reimburse or indemnify a Lender for any cost or expense,  such party shall reimburse or indemnify (as the case may be) such Lender for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that such Lender reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority.

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(iv)    Any reference in this Section 2.12 (f) to any party hereto shall, at any time when such party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to a person who is treated as making the supply, or (as appropriate) receiving the supply, under the grouping rules (as provided for in Article 11 of Council Directive 2006/112/EC (or as implemented by the relevant Member State) or under any similar rules of the relevant jurisdiction.
(v)    In relation to any supply made by a Lender to any party hereto under a Loan Document, if reasonably requested by such Lender, such party must promptly provide such Lender with details of such party’s VAT registration and such other information as is reasonably requested in connection with such Lender’s VAT reporting requirements in relation to such supply.
(g)    FATCA Information
(i)    Subject to paragraph (iii) below, each party hereto shall, within ten Business Days of a reasonable request by another party hereto:
(A)    confirm to such other party whether it is:
(1)    a FATCA Exempt Party; or
(2)    not a FATCA Exempt Party; or
(B)    supply to such other party such forms, documentation and other information relating to its status under FATCA (including its applicable “passthru payment percentage” or other information required under the US Treasury Regulations or other official guidance including intergovernmental agreements) as such other party reasonably requests for the purposes of such other party’s compliance with FATCA.
(ii)    If a party hereto confirms to another party hereto pursuant to paragraph (i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt Party, such party shall notify such other party reasonably promptly.
(iii)    Paragraph (i) above shall not oblige any Lender to do anything which would in its reasonable opinion constitute a breach of:
(A)    any law or regulation;
(B)    any fiduciary duty; or
(C)    any duty of confidentiality.
(iv)    If a party hereto fails to confirm its status or to supply forms, documentation or other information requested in accordance with paragraph (i) above (including, for the avoidance or doubt, where paragraph (iii) above applies), then: 

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(A)    if such party failed to confirm whether it is (and/or remains) a FATCA Exempt Party then such party shall be treated for the purposes of the Loan Documents as if it is not a FATCA Exempt Party; and
(B)    if such party failed to confirm its applicable “passthru payment percentage” then such party shall be treated for the purposes of the Loan Documents (and payments made there under) as if its applicable “passthru payment percentage” is 100%,
until (in each case) such time as the party in question provides the requested confirmation, forms, documentation or other information.

(v)    If the Borrower is a US Tax Borrower, or where the Administrative Agent reasonably believes that its obligations under FATCA require it, each Lender shall, within ten Business Days of:
(A)    where the Borrower is a US Tax Borrower and the relevant Lender is an Original Lender, the date of this Agreement; 
(B)    where the Borrower is a US Tax Borrower and the relevant Lender is a new lender, the date upon which such Lender becomes a Lender; or
(C)    where the Borrower is not a US Tax Borrower, the date of a request from the Administrative Agent,
supply to the Administrative Agent:
(1)    a withholding certificate on Form W-8 or Form W-9 (or any successor form) (as applicable); or
(2)    any withholding statement and other documentation, authorizations and waivers as the Administrative Agent may require to certify or establish the status of such Lender under FATCA.
The Administrative Agent shall provide any withholding certificate, withholding statement, documentation, authorizations and waivers it receives from a Lender pursuant to this paragraph (v) to the Borrower and shall be entitled to rely on any such withholding certificate, withholding statement, documentation, authorizations and waivers provided without further verification.  The Administrative Agent shall not be liable for any action taken by it under or in connection with this paragraph (v).

(vi)    Each Lender agrees that if any withholding certificate, withholding statement, documentation, authorizations and waivers provided to the Administrative Agent pursuant to paragraph (v) above is or becomes materially inaccurate or incomplete, it shall promptly update such withholding certificates, withholding statement, documentation, authorizations and waivers or promptly notify the Administrative Agent in writing of its legal inability to do so.  The 

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Administrative Agent shall provide any such updated withholding certificate, withholding statement, documentation, authorizations and waivers to the Borrower.  The Administrative Agent shall not be liable for any action taken by it under or in connection with this paragraph (vi).
(h)    FATCA Deduction
(i)    Each party hereto may make any FATCA Deduction it is required by FATCA to make, and any payment required in connection with that FATCA Deduction, and no party hereto shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.  
(ii)    Each party hereto shall promptly upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction) notify the party hereto to whom it is making the payment and, in addition, shall notify the Borrower, the Administrative Agent and the other Lenders.

(i)    Each Lender shall, in consultation with the Borrower, take all reasonable steps to mitigate any circumstances which arise and which would result in any amount becoming payable under or pursuant to Section 2.10 or Section 2.12, including, but not limited to, transferring its rights and obligations under the Loan Documents to another Affiliate or Applicable Lending Office.  This Section 2.12 (i) does not in any way limit the obligations of the Borrower under the Loan Documents.

Section 2.13    Sharing of Payments, Etc.    If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any portion of the Advances or other obligations hereunder held by it resulting in such Lender receiving payment of a proportion of the aggregate amount of the Advances and accrued interest thereon or other such obligations greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Advances and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective portions of the Advances and other amounts owing them; provided that:
(i)    if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and
(ii)    the provisions of this paragraph shall not be construed to apply to (x) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement, or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any portion of the Advances to any assignee or participant, other than to the Company or any Subsidiary thereof (as to which the provisions of this paragraph shall apply).

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The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.
Section 2.14    Evidence of Debt.
(a)    Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from the Advances owing to such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. The Borrower agrees that upon notice by any Lender to the Borrower (with a copy of such notice to the Administrative Agent) to the effect that a promissory note or other evidence of indebtedness is required or appropriate in order for such Lender to evidence (whether for purposes of pledge, enforcement or otherwise) the Advances owing to or to be made by such Lender, the Borrower shall promptly execute and deliver to such Lender promissory notes or other evidence of such indebtedness, in form and substance reasonably satisfactory to the Borrower and such Lender, payable to the order of such Lender in a principal amount equal to the Advances held or to be made by such Lender; provided, however, that the execution and delivery of such promissory note or other evidence of indebtedness shall not be a condition precedent to the making of the Advances under this Agreement.
(b)    The Register maintained by the Administrative Agent pursuant to Section 9.07 (c) shall include a control account, and a subsidiary account for each Lender, in which accounts (taken together) shall be recorded (i) the date and amount of the Advances and the Interest Period applicable thereto, (ii) the terms of each Assignment and Assumption delivered to and accepted by it, if any, (iii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder, and (iv) the amount of any sum received by the Administrative Agent from the Borrower hereunder and each Lender’s share thereof.
(c)    The entries made in the Register shall be conclusive and binding for all purposes, absent manifest error.
Section 2.15    Use of Proceeds.
(a)    The Advances shall be used by the Borrower (i) first, to repay advances under the Existing Credit Agreement, until such advances have been repaid in full and (ii) thereafter, for general corporate purposes.
(b)    No portion of the proceeds of the Advances shall be used by the Borrower or any of its Subsidiaries in any manner which might cause the Advances or the application of such proceeds to violate, or require any Lender to make any filing or take any other action under, Regulation U or Regulation X of the Board of Governors of the Federal Reserve System.
(c)    The Borrower will not knowingly use, and the Company shall procure that it and its Subsidiaries and their respective directors, officers, employees and agents shall not 

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knowingly use, the proceeds of the Advances (A) 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, (B) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (C)  in any manner that would result in the violation of any Sanctions applicable to any party hereto.
Section 2.16    [Reserved].
Section 2.17    Mitigation Obligations; Replacement of Lenders; Non-Ratable Termination of Commitments.
(a)    Designation of a Different Lending Office.  If any Lender requests compensation under Section 2.10, or requires the Borrower to pay any additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.12 then such Lender shall (at the request of the Company) use reasonable efforts to designate a different lending office for funding or holding its portion of the Advances hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.10 or Section 2.12, or eliminate such unlawfulness, as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.
(b)    Replacement of Lenders.  If any Lender requests compensation under Section 2.10, or if the Borrower is required to pay additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.12 and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with Section 2.17 (a), then the Company may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 9.07), all of its interests, rights (other than its existing rights to payments pursuant to Section 2.10, Section 2.12 or Section 9.04) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that:
(i)    the Company shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 9.07;
(ii)    such Lender shall have received payment of an amount equal to the outstanding principal of its portion of the Advance, accrued interest thereon and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 9.04 (b)) from the assignee (to the extent of such outstanding principal and accrued interest) or the Borrower (in the case of all other amounts);

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(iii)    in the case of any such assignment resulting from a claim for compensation under Section 2.10 or payments required to be made pursuant to Section 2.12, such assignment will result in a reduction in such compensation or payments thereafter;
(iv)    such assignment does not conflict with applicable law; and
(v)    no Event of Default or Potential Event of Default shall have occurred and be continuing.
A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Company to require such assignment and delegation cease to apply.
(c)    Non-Ratable Termination of Commitments.  If any Lender requests compensation under Section 2.10 and the Majority Lenders are not also doing the same, or if the Borrower is required to pay additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.12 and the Borrower is not also required to make such payments to the Majority Lenders, and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with Section 2.17 (a), then the Company may, upon notice to such Lender and the Administrative Agent, terminate the Commitments of such Lender in full; provided that:
(i)    such Lender shall have received payment of an amount equal to the outstanding principal of its portion of the Advance, accrued interest thereon and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 9.04 (b)) from the Borrower; and
(ii)    no Event of Default or Potential Event of Default shall have occurred and be continuing.
The Commitments of a Lender may not be terminated if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Company to terminate such Commitment cease to apply.
Section 2.18    Incremental Commitments.
(a)    The Borrower may, by written notice to the Administrative Agent on any three occasions prior to the Maturity Date, request Incremental Commitments in an aggregate amount not to exceed £100,000,000 from one or more Incremental Lenders (which may include any existing Lender); provided, that each Incremental Lender (which is not an existing Lender) shall be subject to the approval requirements of Section 9.07.  Such notice shall set forth (A) the amount of the Incremental Commitments being requested (which shall be in an amount not less than £20,000,000 individually and integral multiples of £5,000,000 in excess thereof), (B) the date on which such Incremental Commitments are requested to become effective  and (C) the terms of such Incremental Commitments (which terms shall be subject to Section 2.18(e) below).  The 

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designation of Incremental Commitments as Advances shall be made pursuant to an amendment (each, an “Incremental Facility Amendment”) to this Agreement and, as appropriate, the other Loan Documents, executed by the Borrower, the Company, the Administrative Agent and each applicable Incremental Lender.  No Lender shall be obligated to increase its Commitments pursuant to this Section 2.18 unless it so agrees.
(b)    The Borrower and each Incremental Lender shall execute and deliver to the Administrative Agent an agreement in form and substance reasonably satisfactory to the Administrative Agent (each, an “Incremental Assumption Agreement”) to evidence the Incremental Commitment of such Incremental Lender.  Each Incremental Assumption Agreement shall specify the terms of the Incremental Advances to be made thereunder, and the Incremental Advances thereunder shall be subject to Section 2.18(e) below and otherwise be made on terms and conditions agreed to by the Borrower and the applicable Incremental Lenders, and acceptable to the Administrative Agent.  The Administrative Agent shall promptly notify each Lender as to the effectiveness of each Incremental Assumption Agreement.  
(c)    Each of the parties hereto hereby agrees that the Administrative Agent may take any and all action as may be reasonably necessary to ensure that all Incremental Advances, when originally made, are included in each Borrowing of outstanding Advances on a pro rata basis.
(d)    Notwithstanding the terms of Section 9.01, any Incremental Facility Amendment may, without the consent of any other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower, to implement the provisions of this Section, a copy of which shall be made available to each Lender.
(e)    Notwithstanding the foregoing, no Incremental Commitment shall become effective under this Section 2.18 unless: 

		
	(i)
	on the date of such effectiveness (unless otherwise agreed among the Incremental Lenders, the Company and the Borrower, and consented to by the Administrative Agent (such consent not to be unreasonably withheld or delayed)): (A) the representations and warranties set forth in Article IV are correct in all material respects (except those representations and warranties qualified by materiality, which shall be true and correct) on and as of such date, as though made on and as of such date, except to the extent that any such representation or warranty expressly relates only to an earlier date, in which case it was correct in all material respects (except those representations and warranties qualified by materiality, which shall be true and correct) as of such earlier date and the Administrative Agent (acting at the direction of the applicable Incremental Lenders) shall have received a certificate to that effect dated such date and executed by the Company and (B) no Event of Default or Potential Event of Default shall have occurred and be continuing or would result from such Incremental Commitment; 

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	(ii)
	the Administrative Agent shall have received such legal opinions, board resolutions and other closing certificates and documentation (including opinions of counsel) as the Administrative Agent (acting at the direction of the applicable Incremental Lenders) shall reasonably request;

		
	(iii)
	the Incremental Advances made pursuant to any Incremental Commitment shall have terms identical to the existing Advances, including with respect to maturity date and interest rate margins; and

		
	(iv)
	the fee paid to any Incremental Lender in connection with its Incremental Commitment shall not exceed, on a percentage of their respective Commitments basis, the fee paid to any Initial Lender.

ARTICLE III     
CONDITIONS OF LENDING
Section 3.01    Condition Precedent to Effectiveness. The effectiveness of this Agreement is subject to the condition precedent that the Administrative Agent receives on or before the Effective Date the following, each in form and substance reasonably satisfactory to the Administrative Agent:
(a)    This Agreement, executed by the Borrower, the Company, the Administrative Agent and each Initial Lender listed on Schedule I attached hereto;
(b)    Copies of (i) the resolutions of the Board of Directors of each of the Borrower and the Company, approving this Agreement, and (ii) all documents evidencing other necessary corporate action and governmental approvals, if any, with respect to this Agreement, in each case certified as of the Effective Date by a Director, the Secretary or an Assistant Secretary of the Borrower or the Company, as applicable;
(c)    A certificate of the Secretary, an Assistant Secretary or an officer of each of the Borrower and the Company, dated the Effective Date, certifying the names and true signatures of the officers of the Borrower or the Company, as the case may be, authorized to sign this Agreement and the other documents to be delivered by the Borrower or the Company hereunder;
(d)    A certificate of the Secretary, an Assistant Secretary or an officer of each of the Borrower and the Company, dated the Effective Date, certifying the correctness and completeness of the copies of the Borrower’s and the Company’s Certificate of Incorporation and Bylaws or other constitutive documents previously delivered to the Administrative Agent, together, in the case of the Company, with a good standing certificate from the state of its incorporation, each to be dated a recent date prior to the Effective Date;

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(e)    A favorable opinion of CMS Cameron McKenna Nabarro Olswang LLP, dated the Effective Date, substantially in the form of Exhibit B-1 hereto;
(f)    A favorable opinion of William L. Deckelman, Jr., Executive Vice President and General Counsel of the Company, dated the Effective Date, substantially in the form of Exhibit B-2 hereto; 
(g)    A certificate of an authorized officer of the Company, dated the Effective Date, stating that the representations and warranties of the Company contained in Article IV are correct, in all material respects (except those representations and warranties qualified by materiality, which shall be true and correct) on and as of the Effective Date, as though made on and as of such date, except to the extent that any such representation or warranty expressly relates only to an earlier date, in which case they were correct in all material respects (except those representations and warranties qualified by materiality, which shall be true and correct) as of such earlier date, and that no Event of Default or Potential Event of Default exists on and as of the Effective Date; and
(h)    If the Borrower qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, a duly executed and completed Beneficial Ownership Certification for the Borrower.
Section 3.02    Conditions Precedent to Funding the Initial Advances.  The obligation of the Initial Lenders to make the Initial Advances on the applicable Funding Date shall be subject to the further conditions precedent that, on the applicable Funding Date, the following statements shall be true (and acceptance by the Borrower of the proceeds of the Initial Advances shall constitute a representation and warranty by the Company that on the applicable Funding Date such statements are true):
(a)    The representations and warranties of the Company contained in Article IV (other than the representations set forth in the second sentence of Section 4.01 (e) and clause (i) of Section 4.01 (f)) are correct in all material respects (except those representations and warranties qualified by materiality, which shall be true and correct) on and as of the applicable Funding Date, before and immediately after giving effect to the funding of the Initial Advances and to the application of the proceeds therefrom, as though made on and as of such date, except to the extent that any such representation or warranty expressly relates only to an earlier date, in which case they were correct in all material respects (except those representations and warranties qualified by materiality, which shall be true and correct) as of such earlier date; and
(b)    No event has occurred and is continuing, or would result from the Initial Advances or from the application of the proceeds therefrom, which constitutes an Event of Default or a Potential Event of Default.
Section 3.03    Conditions Precedent to Funding the Incremental Advances.  The obligation of any Incremental Lender to fund its Incremental Advances shall be subject to the conditions set forth in the applicable Incremental Facility Amendment.

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Section 3.04    Existing Credit Agreement. The Lenders that are parties to the Existing Credit Agreement comprising the “Majority Lenders” as defined therein hereby waive any requirement of advance notice of prepayment of “Advances” (as defined in the Existing Credit Agreement) pursuant to Section 2.06 thereof.
ARTICLE IV     
REPRESENTATIONS AND WARRANTIES
Section 4.01    Representations and Warranties of the Borrower and the Company.  The Company and, with respect to Section 4.01 (a), Section 4.01 (b), Section 4.01 (c) and Section 4.01 (d) to the extent such Sections relate to the Borrower, the Borrower represent and warrant as follows:
(a)    Due Organization, etc.  Each of the Borrower and the Company is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of organization.  Each of the Borrower and, to the extent applicable, the Company is duly qualified to do business as a foreign corporation in good standing in all other jurisdictions which require such qualification, except to the extent that failure to so qualify would not have a material adverse effect on the business, financial condition or operations of the Company and the Subsidiaries, taken as a whole.  Each Significant Subsidiary of the Company is duly organized and validly existing under the laws of the jurisdiction of its incorporation or formation.  Each such Subsidiary is duly qualified to do business in all other jurisdictions which require such qualification, except to the extent that failure to so qualify would not have a material adverse effect on the business, financial condition or operations of the Company and the Subsidiaries, taken as a whole.
(b)    Due Authorization, etc.  The execution, delivery and performance by the Borrower and the Company of this Agreement are within the Borrower’s and the Company’s corporate powers, have been duly authorized by all necessary corporate action, and do not contravene (i) the Borrower’s or the Company’s certificate of incorporation or bylaws or other constitutive documents or (ii) law or any material contractual restriction binding on or affecting the Borrower or the Company, as the case may be.
(c)    Governmental Consent.  No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution, delivery and performance by the Borrower or the Company of this Agreement except for those which have been obtained prior to the Effective Date and remain in full force and effect.
(d)    Validity.  This Agreement is a valid and binding obligation of the Borrower and the Company enforceable against the Borrower and the Company in accordance with its terms, subject to the effect of applicable bankruptcy, insolvency, arrangement, moratorium and other similar laws affecting creditors’ rights generally, concepts of reasonableness and to the application of general principles of equity.
(e)    Condition of the Company.  The consolidated balance sheet of the Company as at March 31, 2018, and the related consolidated statements of income and stockholders’ equity 

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of the Company for the fiscal year then ended, copies of which have been furnished to the Administrative Agent, fairly present the consolidated financial condition of the Company as at such date and the consolidated results of the operations of the Company for the fiscal year ended on such date, all in accordance with GAAP consistently applied.  There has been no material adverse change in the business, financial condition or operations of the Company and the Subsidiaries, taken as a whole, since March 31, 2018.
(f)    Litigation.  There is no pending or (to the knowledge of the Company) threatened investigation, action or proceeding against the Company or any of its Subsidiaries before any court, governmental agency or arbitrator which (i) except as disclosed in the Exchange Act Reports filed prior to the Effective Date, would, if adversely determined, reasonably be expected to have a material adverse effect on the business, financial condition or operations of the Company and the Subsidiaries, taken as a whole, or (ii) purports to affect the legality, validity or enforceability of this Agreement.
(g)    Margin Regulations.  No proceeds of the Advances will be used to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any margin stock in any manner that violates or would cause a violation of Regulation U or Regulation X.
(h)    Payment of Taxes.  Except as disclosed in the Exchange Act Reports filed prior to the Effective Date, the Company and each of its Significant Subsidiaries have filed or caused to be filed all Tax returns (federal, state, local and foreign) required to be filed and paid all amounts of Taxes shown thereon to be due, including interest and penalties, except (i) for such Taxes as are being contested in good faith and by proper proceedings and with respect to which appropriate reserves are being maintained by the Company or any such Subsidiary, as the case may be and (ii) to the extent that the failure to file such returns or pay such Taxes would not reasonably be expected to have a material adverse effect on the business, financial condition or operations of the Company and the Subsidiaries, taken as a whole.
(i)    Governmental Regulation.  Neither the Borrower nor the Company is required to register as an investment company under the Investment Company Act of 1940, as amended.
(j)    ERISA.  Except as disclosed in the Exchange Act Reports filed prior to the Effective Date:
		
	(i)
	no ERISA Event has occurred or is reasonably expected to occur (other than for premiums payable under Title IV of ERISA), that would reasonably be expected to result in a liability to the Company or its ERISA Affiliates of more than US$250,000,000 (or its equivalent in any other currency or currencies) over the amount previously reflected for any such liabilities, in accordance with GAAP, on the financial statements delivered pursuant to Section 4.01 (e);

38
    
    

		
	(ii)
	Schedule B (Actuarial Information) to the most recently completed annual report (Form 5500 Series) for each Pension Plan, copies of which have been filed with the Internal Revenue Service and furnished to the Administrative Agent, is complete and, to the best knowledge of the Company, accurate, and since the date of such Schedule B there has been no change in the funding status of any such Pension Plan except any change that would not reasonably be expected to have a material adverse effect on the business, financial condition or operations of the Company and the Subsidiaries, taken as a whole;

		
	(iii)
	as of the most recent valuation date for each Multiemployer Plan for which the actuarial report is available, the potential liability to the Company or any of its ERISA Affiliates for a complete withdrawal from such Multiemployer Plan, when aggregated with such potential liability for a complete withdrawal for all Multiemployer Plans, based on information available pursuant to Section 4221(e) of ERISA, does not exceed US$250,000,000 (or its equivalent in any other currency or currencies);

		
	(iv)
	the Company and each of its ERISA Affiliates are in compliance with all applicable provisions and requirements of ERISA and the regulations and published interpretations thereunder with respect to each Employee Benefit Plan, and have performed all their obligations under each Employee Benefit Plan except for any such failure to perform or comply that would not reasonably be expected to have a material adverse effect on the business, financial condition or operations of the Company and the Subsidiaries, taken as a whole;

		
	(v)
	each Employee Benefit Plan that is intended to qualify under Section 401(a) of the Code has received a determination letter from the Internal Revenue Service that the Employee Benefit Plan is so qualified (or a timely application for such a determination letter is pending), and to the best of the Company’s knowledge, the Employee Benefit Plan has not been operated in any way that would result in the Employee Benefit Plan no longer being so qualified except as would not reasonably be expected to have a material adverse effect on the business, financial condition or operations of the Company and the Subsidiaries, taken as a whole; and

		
	(vi)
	neither the Company nor any ERISA Affiliate has been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is insolvent, in reorganization or has been terminated or has been determined to be in “endangered” or “critical” status, within the meaning of Title IV of ERISA, and, to the best knowledge of the Company, no Multiemployer Plan is reasonably expected to be insolvent, in reorganization or to be terminated or to be determined to be in “endangered” or “critical” status within the meaning of Title IV of ERISA, in each case, resulting in a liability to the Company 

39
    
    

or its ERISA Affiliates of more than US$250,000,000 (or its equivalent in any other currency or currencies).
(k)    Disclosure.  
		
	(i)
	The documents, certificates and written materials furnished to the Administrative Agent or any Lender by or on behalf of the Company and/or the Borrower for use in connection with the transactions contemplated in this Agreement, taken as a whole with other documents, certificates and written materials furnished contemporaneously therewith, do not contain any untrue statement of fact or omit to state a material fact (known to the Company or the Borrower (as the case may be) in the case of any documents, certificates or written statements not furnished by it) necessary in order to make the statements contained therein not misleading in light of the circumstances under which the same were made; and

		
	(ii)
	As of the Effective Date, the information included in the Beneficial Ownership Certification with respect to the Borrower provided to any Lender is true and correct in all respects.

(l)    Insurance.  The Company and its Subsidiaries (i) maintain insurance with responsible and reputable insurance companies or associations in such amounts and covering such risks as are usually insured by companies engaged in similar businesses or (ii) maintain a plan or plans of self-insurance to such extent and covering such risks as is usual for companies of comparable size engaged in the same or similar business, which plans shall include, among other things, adequate reserves for the risks that are self-insured.
(m)    Environmental Matters.  Except as disclosed in the Exchange Act Reports filed prior to the Effective Date, (i) the Company and each of its Subsidiaries is in compliance with all Environmental Laws except to the extent any non-compliance would not reasonably be expected to have a material adverse effect on the business, financial condition or operations of the Company and the Subsidiaries, taken as a whole, and (ii) there has been no “release or threatened release of a hazardous substance” (as defined by the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. § 9601 et seq.) or any other release, emission or discharge into the environment of any hazardous or toxic substance, pollutant or other materials by the Company or its Subsidiaries other than as permitted under applicable Environmental Law and other than those which would not have a material adverse effect on the business, financial condition or operations of the Company and the Subsidiaries, taken as a whole. Other than disposals for which the Company has been indemnified in full, to the knowledge of the Company, all “hazardous waste” (as defined by the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq. and the regulations thereunder, 40 CFR Part 261 (“RCRA”)) generated at the Company’s or any Subsidiaries’ properties have in the past been and are currently disposed of at sites which maintain valid permits under RCRA and any applicable state or local Environmental Law, except to the extent where the failure to so dispose would not reasonably be expected have a material adverse effect on the business, financial condition or operations of the Company and the Subsidiaries, taken as a whole.

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(n)    Anti-Corruption Laws and Sanctions.  The Company has implemented and maintains in effect policies and procedures designed to promote and achieve compliance by the Company, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Company, its Subsidiaries and to the knowledge of the Company its directors, officers, employees and Administrative Agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.  None of (a) the Company, any Subsidiary or to the knowledge of the Company any of the directors or officers of the Company, (b) to the knowledge of the Company or such Subsidiary, any director or officer of any Subsidiary of the Company or (c) to the knowledge of the Company, any employee or agent of the Company or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.
ARTICLE V     
COVENANTS
Section 5.01    Affirmative Covenants of the Company.  The Company covenants and agrees that the Company will, unless and until the Advances shall have been paid in full, unless Majority Lenders shall otherwise consent in writing:
(a)    Compliance with Laws, Etc.  Comply, and cause each of its Subsidiaries to comply, with all applicable laws, rules, regulations and orders, except to the extent any non-compliance would not reasonably be expected to have a material adverse effect on the business, financial condition or operations of the Company and the Subsidiaries, taken as a whole, such compliance to include, without limitation, (x) complying with all Environmental Laws and (y) paying before the same become delinquent all Taxes imposed upon it or upon its property except to the extent contested in good faith.
(b)    Reporting Requirements.  Furnish to the Administrative Agent:
		
	(i)
	as soon as available and in any event within 60 days of the end of each of the first three fiscal quarters of each fiscal year of the Company, a copy of the quarterly report (x) for such quarter for the Company, containing a consolidated balance sheet and consolidated statements of income and (x) for the period consisting of the fiscal year then elapsed, for the Company, containing consolidated statements of stockholders’ equity and cash flows;

		
	(ii)
	as soon as available and in any event within 120 days after the end of each fiscal year of the Company, a copy of the consolidated annual audit report for such year for the Company, containing financial statements (including a consolidated balance sheet, consolidated statements of income, retained earnings and cash flows of the Company) for such year, accompanied by an opinion of Deloitte & Touche or other nationally recognized independent public accountants.  The opinion shall be unqualified (as to going concern, scope of audit and disagreements over the accounting or other treatment of offsets) and shall state that such consolidated financial statements present 

41
    
    

fairly the consolidated financial position of the Company as at the dates indicated and the results of their operations and cash flow for the periods indicated in conformity with GAAP applied on a basis consistent with prior years (except as stated therein) and that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with generally accepted auditing standards;
		
	(iii)
	together with each delivery of the report of the Company pursuant to clause (i) or clause (ii) above, a compliance certificate for the quarter or year, as applicable, executed by an authorized financial officer of the Company (A) stating, in the case of the financial statements delivered under Section 5.01 (b)(i) for such quarter, that such financial statements fairly present the financial condition of the Company and its Subsidiaries as at the dates indicated and the results of operations of the Company and its Subsidiaries and cash flow for the periods indicated in conformity with GAAP applied on a basis consistent with prior years (except as otherwise stated therein), subject to the absence of footnotes and changes resulting from audit and normal year-end adjustment, (B) stating that such authorized financial officer has reviewed the terms of this Agreement and has made, or caused to be made under his or her supervision, a review in reasonable detail of the transactions and financial condition of the Company and its Subsidiaries during the accounting period covered by such financial statements and that such authorized financial officer does not have knowledge of the existence, as at the date of the compliance certificate, of any condition or event that constitutes an Event of Default or a Potential Event of Default or, if any such condition or event exists, specifying the nature thereof and what action the Company has taken, is taking and proposes to take with respect thereto and (C) demonstrating in reasonable detail compliance at the end of such accounting periods with the restrictions contained in Section 5.02 (c).

		
	(iv)
	promptly, and in any event within five days, after any authorized financial officer of the Company becomes aware of the occurrence of an Event of Default or Potential Event of Default continuing on the date of such statement, a statement of an authorized financial officer of the Company setting forth details of such Event of Default or Potential Event of Default and the action which the Company has taken and proposes to take with respect thereto;

		
	(v)
	promptly after the sending or filing thereof, copies of all proxy statements, financial statements and reports that the Company or any of its Subsidiaries sends to its stockholders generally, and copies of all regular, periodic and special reports, and all registration statements, that the Company or any of its Subsidiaries files with the FCA or any governmental authority that may be substituted therefor, or with any national securities exchange;

		
	(vi)
	promptly after the commencement thereof, notice of all material actions, suits and proceedings before any court or government department, 

42
    
    

commission, board, bureau, agency or instrumentality, domestic or foreign, affecting the Company or any of its Subsidiaries, of the type described in Section 4.01 (f);
		
	(vii)
	promptly after the occurrence thereof, notice of (A) any event which makes any of the representations contained in Section 4.01 (m) inaccurate or (B) the receipt by the Company of any notice, order, directive or other communication from a governmental authority alleging violations of or noncompliance with any Environmental Law which would reasonably be expected to have a material adverse effect on the business, financial condition or operations of the Company and the Subsidiaries, taken as a whole;

		
	(viii)
	promptly following any request therefor, provide information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with applicable “know your customer” and anti-money-laundering rules and regulations, including, without limitation, the Beneficial Ownership Regulation; and

		
	(ix)
	such other information respecting the business, financial condition or operations of the Company and the Subsidiaries as any Lender through the Administrative Agent may from time to time reasonably request.

In lieu of furnishing to the Administrative Agent paper copies of the documents required to be delivered pursuant to Section 5.01(b)(i), Section 5.01(b)(ii), Section 5.01(b)(v), Section 5.01(b)(vi) and Section 5.01(b)(ix), the Company’s obligations to deliver such documents or information shall be deemed to be satisfied upon the relevant documents or information being publicly available at its Internet website located at http://www.dxc.com or through the SEC’s EDGAR system.  Notwithstanding the foregoing, the Company shall deliver paper copies of such documents to any Lender that requests the Company to deliver such paper copies.
(c)    Corporate Existence, Etc.  The Company will, and will cause each of its Significant Subsidiaries to, at all times maintain its fundamental business and preserve and keep in full force and effect its corporate existence and all material rights, franchises and licenses necessary or desirable in the normal conduct of its business, in each case as applicable, except (i) as permitted under Section 5.02(b) and (ii) if, in the reasonable business judgment of the Company, it is in the business interest of the Company or such Subsidiary not to preserve and maintain such legal existence (except with respect to the Company), rights (charter and statutory), franchises and licenses, and such failure to preserve the same would not reasonably be expected to have a material adverse effect on the business, financial condition or operations of the Company and the Subsidiaries, taken as a whole.
(d)    Maintenance of Insurance.  The Company will and will cause each of its Significant Subsidiaries to maintain insurance with responsible and reputable insurance companies or associations in such amounts and covering such risks as are usually insured by companies engaged in similar businesses.  Notwithstanding the foregoing, the Company and such Subsidiaries may maintain a plan or plans of self-insurance to such extent and covering such risks as is usual for 

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companies of comparable size engaged in the same or similar business, which plans shall include, among other things, adequate reserves for the risks that are self-insured.  On request the Company will advise the Administrative Agent and the Lenders concerning any such plan or plans for self-insurance.
(e)    Visitation Rights. Once per calendar year, at any reasonable time and from time to time during normal business hours and with reasonable prior notice, permit the Administrative Agent or any of the Lenders or any agents or representatives thereof (at their sole cost and expense), to visit the properties of, the Company and any of its Subsidiaries, and to discuss the affairs, finances and accounts of the Company and any of its Subsidiaries with any of their officers, employees, or if an Event of Default is continuing, with their independent certified public accountants; provided that if an Event of Default is continuing, such visits shall not be limited to once per calendar year.
(f)    Keeping of Books.  Keep, and will cause each of its Significant Subsidiaries to keep, in all material respects, proper books of record and account in accordance with GAAP.
Section 5.02    Negative Covenants of the Company.  The Company covenants and agrees that, unless and until the Advances shall have been paid in full and the Commitments of the Lenders shall have terminated, unless Majority Lenders shall otherwise consent in writing:
(a)    Liens, Etc.  The Company will not create or suffer to exist, or permit any of its Significant Subsidiaries to create or suffer to exist, any Lien  upon or with respect to any of its properties, whether now owned or hereafter acquired, or assign, or permit any of such Subsidiaries to assign, any right to receive income, in each case to secure or provide for the payment of any Debt of any Person, unless the Company’s obligations hereunder shall be secured equally and ratably with, or prior to, any such Debt; provided however that the foregoing restriction shall not apply to the following Liens which are permitted:
		
	(i)
	Customary Permitted Liens;

		
	(ii)
	Liens in favor of the United States to secure amounts paid to the Company or any of its Subsidiaries as advance or progress payments under government contracts entered into by it so long as such Liens cover only (x) special bank accounts into which only such advance or progress payments are deposited and (y) supplies covered by such government contracts and material and other property acquired for or allocated to the performance of such government contracts;

		
	(iii)
	attachment, judgment and other similar Liens arising in connection with legal proceedings, provided that any such judgment does not constitute an Event of Default;

		
	(iv)
	Liens on accounts receivable resulting from the sale of such accounts receivable;

44
    
    

		
	(v)
	Liens on assets of any Significant Subsidiary of the Company existing at the time such Person becomes a Significant Subsidiary or is merged into or consolidated with the Company or a Significant Subsidiary (other than any such Lien created in contemplation of becoming a Significant Subsidiary);

		
	(vi)
	purchase money Liens upon or in any asset acquired or held by the Company or any Significant Subsidiary (including any capital interest in any Person) to secure the purchase price of such asset or to secure Debt incurred solely for the purpose of financing the acquisition of or construction of improvements on or with respect to any such asset (provided that the amount of Debt secured by such Lien does not exceed 100% of the purchase price of such asset and transaction costs relating to such acquisition or the costs of such construction) and Liens existing on such asset at the time of its acquisition (other than any such Lien created in contemplation of such acquisition); and the interest of the lessor thereof in any asset that is subject to a Capital Lease;

		
	(vii)
	Liens on deposits securing obligations under cash pooling and multi-currency notional pooling programs;

		
	(viii)
	Liens, other than Liens described in clauses (i) through (vii) and in clauses (ix) and (x), to secure Debt not in excess of an aggregate of the greater of US$500,000,000 (or its equivalent in any other currency or currencies) and 5% of the shareholders’ equity of the Company;

(ix)    Liens resulting from any extension, renewal or replacement (or successive extensions, renewals or replacements), in whole or in part, of any Debt secured by any Lien referred to in clauses (v) and (vi) so long as (x) the aggregate principal amount of any such Debt shall not increase as a result of any such extension, renewal or replacement and (y) Liens resulting from any such extension, renewal or replacement shall cover only such property which secured the Debt that is being extended, renewed or replaced; and
		
	(x)
	Liens securing Debt owing to the Company or any of the Subsidiaries.

(b)    Restrictions on Fundamental Changes.  The Company will not, and will not permit any of its Significant Subsidiaries to, merge or consolidate with or into, or convey, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all or substantially all of the assets of the Company and its Subsidiaries, taken as a whole (whether now owned or hereafter acquired), to any Person (other than the Company or any Subsidiary of the Company, so long as the Company, directly or indirectly, owns 80% or more of the voting stock thereof), or enter into any partnership, joint venture, syndicate, pool or other combination, unless (a) no Event of Default or Potential Event of Default has occurred and is continuing or would result therefrom and (b) in the case of any consolidation or merger involving the Company, either (i) the Company is the surviving entity or (ii) the Person surviving or resulting from such consolidation or merger shall have assumed the obligations of the Company hereunder in an agreement or instrument reasonably satisfactory in form and substance to the Administrative Agent and such 

45
    
    

surviving corporation shall have delivered, for the benefit of the Lenders and the Administrative Agent, such other documents as may reasonably be requested, including, without limitation, information in respect of “know your customer” and similar requirements, an incumbency certificate and an opinion of nationally recognized independent counsel, or other independent counsel reasonably satisfactory to the Majority Lenders, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof.
(c)    Financial Covenants.
		
	(i)
	Minimum Interest Coverage Ratio.  The Company will not permit at the end of any quarterly financial reporting period the ratio of Consolidated EBITDA to Consolidated Interest Expense for the period of four consecutive fiscal quarters ending on the last day of such quarterly financial reporting period, taken as a single period, to be less than 3.00 to 1.00.

		
	(ii)
	Consolidated Total Debt to Consolidated EBITDA Ratio.  The Company will not permit at the end of any quarterly financial reporting period the ratio of Consolidated Total Debt as of the last day of such quarterly financial reporting period to Consolidated EBITDA for the period of four consecutive fiscal quarters ending on the last day of such quarterly financial reporting period, taken as a single period, to exceed 3.00 to 1.00.

ARTICLE VI     
EVENTS OF DEFAULT
Section 6.01    Events of Default.  If any of the following events (“Events of Default”) shall occur and be continuing:
(a)    The Borrower or the Company shall fail to pay any principal of the Advances when the same becomes due and payable or the Borrower or the Company shall fail to pay any interest on the Advances or any fees or other amounts payable hereunder within five days of the date due;
(b)    Any representation or warranty made by the Company and/or the Borrower herein or in connection with this Agreement shall prove to have been incorrect in any material respect when made;
(c)    The Borrower or the Company shall fail to perform or observe (i) any term, covenant or agreement contained in Section 2.15, Section 5.01 (c) (with respect to the existence of the Company) or Section 5.02, or (ii) any other term, covenant or agreement contained in this Agreement on its part to be performed or observed if the failure to perform or observe such other term, covenant or agreement shall remain unremedied for 30 days after the earlier to occur of (i) written notice thereof having been given to the Company or the Borrower by the Administrative Agent at the request of any Lender or (ii) actual knowledge thereof by the Company of such failure;

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(d)    The Company or any of its Significant Subsidiaries shall fail to pay any principal of or premium or interest on any of its Debt or any payment obligations in respect of guarantees of the Company or any such Significant Subsidiary of Debt owed to any Person other than the Company and the Subsidiaries which is outstanding in a principal amount of at least US$250,000,000 (or its equivalent in any other currency or currencies) in the aggregate (but excluding Debt arising under this Agreement), when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt or guarantee; or any other event shall occur or condition shall exist under any agreement or instrument relating to any such Debt and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate, or to permit the acceleration of, the maturity of such Debt; or any such Debt shall be declared to be due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment or by a required prepayment of insurance proceeds or by a required prepayment as a result of formulas based on asset sales or excess cash flow), redeemed, purchased or defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be required to be made, in each case prior to the stated maturity thereof;
(e)    The Borrower, the Company or any of its Significant Subsidiaries shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against the Borrower, the Company or any of its Significant Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it), either such proceeding shall remain undismissed or unstayed for a period of 60 days, or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any substantial part of its property) shall occur; or the Company, the Borrower or any of their Significant Subsidiaries shall take any corporate or partnership action to authorize any of the actions set forth above in this subsection (e);
(f)    Any judgment or order for the payment of money in excess of US$250,000,000 (or its equivalent in any other currency or currencies) shall be rendered against the Company, the Borrower or any of their Significant Subsidiaries and is not promptly paid by the Company, the Borrower or any of their Significant Subsidiaries and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there shall be any period of 30 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; provided, however, that any such judgment or order shall not be an Event of Default under this Section 6.01(f) if and to the extent that (i) the amount of such judgment or order is covered by a valid and binding policy of insurance covering payment thereof, (ii) such insurer shall be rated at least “A-” by A.M. Best Company and the Company deems the claims recovery as “probable” in its financial statements 

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and (iii) such insurer has been notified of, and has not disputed the claim made for payment of, the amount of such judgment or order;
(g)
		
	(i)
	There occurs one or more ERISA Events which individually or in the aggregate results in liability to the Company or any of its ERISA Affiliates in excess of US$250,000,000 (or its equivalent in any other currency or currencies) over the amount previously reflected for any such liabilities, in accordance with GAAP, on the financial statements delivered pursuant to Section 4.01 (e);

		
	(ii)
	The Company or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan that it has incurred an aggregate Withdrawal Liability for all years to such Multiemployer Plan in an amount that, when aggregated with all other amounts required to be paid to Multiemployer Plans by the Company and its ERISA Affiliates as Withdrawal Liability (determined as of the date of such notification), exceeds US$250,000,000 (or its equivalent in any other currency or currencies); or

		
	(iii)
	The Company or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is insolvent, in reorganization or is being terminated or has been determined to be in “endangered” or “critical” status, within the meaning of Title IV or ERISA, if as a result of such event the aggregate annual contributions of the Company and its ERISA Affiliates to all Multiemployer Plans that are then insolvent, in reorganization or being terminated or have been determined to be in endangered or critical status have been or will be increased over the amounts contributed to such Multiemployer Plans for the plan year of such Multiemployer Plan immediately preceding the plan year in which the event occurs by an amount exceeding, in each case, resulting in a liability to the Company or its ERISA Affiliates of more than US$250,000,000 (or its equivalent in any other currency or currencies);

(h)    Any Person or two or more Persons acting in concert shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of the SEC under the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the Company (or other securities convertible into such securities) representing 35% or more of the combined voting power of all securities of the Company entitled to vote in the election of directors, other than securities having such power only by reason of the happening of a contingency: provided that if the Company shall become a wholly owned Subsidiary of a publicly owned Person whose beneficial ownership is, immediately after the Company shall become such a wholly owned subsidiary of such Person, substantially identical to that of the Company immediately prior to such circumstance (a “Holding Company”), such circumstance shall not be an Event of Default under this Section 6.01 (h) unless the beneficial ownership of such Holding Company shall be acquired as set forth in this Section 6.01 (h); or

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(i)    Any provision of Article VII shall for any reason cease to be valid and binding on or enforceable against the Company or the Borrower (if applicable), or the Company shall so state in writing:

then, and in any such event, the Administrative Agent shall at the request, or may with the consent, of the Majority Lenders, by notice to the Borrower and the Company, declare the Advances, all interest thereon and all other amounts payable under this Agreement to be forthwith due and payable, whereupon the Advances, all such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are here expressly waived by the Company and the Borrower; provided, however, that in the event of an actual or deemed entry of an order for relief with respect to the Company under the Federal Bankruptcy Code, the Advances, all such interest and all such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Company and the Borrower.
ARTICLE VII     
GUARANTY
Section 7.01    Unconditional Guaranty.  The Company hereby absolutely, unconditionally and irrevocably guarantees the punctual payment when due, whether at scheduled maturity or by acceleration, demand or otherwise, of all obligations of the Borrower now or hereafter existing under or in respect of this Agreement and each other Loan Document (including, without limitation, any extensions, modifications, substitutions, amendments or renewals of any or all of the foregoing obligations), whether direct or indirect, absolute or contingent, and whether for principal, interest, premiums, fees, indemnities, contract causes of action, costs, expenses or otherwise (such obligations being the “Guaranteed Obligations”), and agrees to pay any and all expenses (including, without limitation, fees and expenses of counsel) incurred by the Administrative Agent or any Lender in enforcing any rights under this Agreement.  Without limiting the generality of the foregoing, the Company’s liability shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by the Borrower to the Administrative Agent or any Lender under or in respect of this Agreement and the other Loan Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving the Borrower.
Section 7.02    Guaranty Absolute.  (a)  The Company guarantees that the Guaranteed Obligations will be paid strictly in accordance with the terms of this Agreement and each other Loan Document, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Administrative Agent or any Lender with respect thereto.  The obligations of the Company under or in respect of this Guaranty are independent of the Guaranteed Obligations or any other obligations of the Borrower under or in respect of this Agreement and the other Loan Documents, and a separate action or actions may be brought and prosecuted against the Company to enforce this Guaranty, irrespective of whether any action is brought against the Borrower or whether the Borrower is joined in any such action or actions.  The liability of the Company under this Guaranty shall be 

49
    
    

irrevocable, absolute and unconditional irrespective of, and the Company hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to, any or all of the following:
		
	(i)
	any lack of validity or enforceability against the Borrower of this Agreement, any other Loan Document or any agreement or instrument relating thereto;

		
	(ii)
	any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations or any other obligations of the Borrower under or in respect of this Agreement and the other Loan Documents, or any other amendment or waiver of or any consent to departure from this Agreement or any other Loan Document, including, without limitation, any increase in the Guaranteed Obligations resulting from the extension of additional credit to the Borrower or any of its Subsidiaries or otherwise;

		
	(iii)
	any taking, exchange, release or non-perfection of any collateral, or any taking, release or amendment or waiver of, or consent to departure from, any other guaranty, for all or any of the Guaranteed Obligations;

		
	(iv)
	any manner of application of any collateral, or proceeds thereof, to all or any of the Guaranteed Obligations, or any manner of sale or other disposition of any collateral for all or any of the Guaranteed Obligations or any other obligations of the Borrower under this Agreement and the other Loan Documents or any other assets of the Borrower or any of its Subsidiaries;

		
	(v)
	any change, restructuring or termination of the corporate structure or existence of the Borrower or any of its Subsidiaries;

		
	(vi)
	any failure of the Administrative Agent or any Lender to disclose to the Company any information relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of the Borrower now or hereafter known to the Administrative Agent or such Lender (the Company waiving any duty on the part of the Administrative Agent and the Lenders to disclose such information);

		
	(vii)
	the release or reduction of liability of the Company or other guarantor or surety with respect to the Guaranteed Obligations; or

		
	(viii)
	any other circumstance (including, without limitation, to the fullest extent permitted under applicable law, any statute of limitations) or any existence of or reliance on any representation by the Administrative Agent or any Lender that might otherwise constitute a defense available to, or a discharge of, the Borrower or any other guarantor or surety.

This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned by the 

50
    
    

Administrative Agent or any Lender or any other Person upon the insolvency, bankruptcy or reorganization of the Borrower or otherwise, all as though such payment had not been made.
Section 7.03    Waivers and Acknowledgments.  
(a)  The Company hereby unconditionally and irrevocably waives promptness, diligence, notice of acceptance, presentment, demand for performance, notice of nonperformance, default, acceleration, protest or dishonor and any other notice with respect to any of the Guaranteed Obligations and this Guaranty and any requirement that the Administrative Agent or any Lender protect, secure, perfect or insure any Lien or any property subject thereto or exhaust any right or take any action against the Borrower or any other Person or any collateral.
(b)    The Company hereby unconditionally and irrevocably waives any right to revoke this Guaranty and acknowledges that this Guaranty is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future.
(c)    The Company hereby unconditionally and irrevocably waives (i) any defense arising by reason of any claim or defense based upon an election of remedies by the Administrative Agent or any Lender that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of the Company or other rights of the Company to proceed against the Borrower, any other guarantor or any other Person or any collateral and (ii) any defense based on any right of set-off or counterclaim against or in respect of the obligations of the Company hereunder.
(d)    The Company hereby unconditionally and irrevocably waives any duty on the part of the Administrative Agent or any Lender to disclose to the Company any matter, fact or thing relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of the Borrower or any of its Subsidiaries now or hereafter known by the Administrative Agent or such Lender.
(e)    The Company acknowledges that it will receive substantial direct and indirect benefits from the financing arrangements contemplated by this Agreement and the other Loan Documents and that the waivers set forth in Section 7.02 and this Section 7.03 are knowingly made in contemplation of such benefits.
Section 7.04    Subrogation.  The Company hereby unconditionally and irrevocably agrees not to exercise any rights that it may now have or hereafter acquire against the Borrower or any other insider guarantor that arise from the existence, payment, performance or enforcement of the Company’s obligations under or in respect of this Guaranty, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of the Administrative Agent or any Lender against the Borrower or any other insider guarantor or any collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from the Borrower or any other insider guarantor, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim, remedy or right, unless and until all of the 

51
    
    

Guaranteed Obligations and all other amounts payable under this Guaranty shall have been paid in full in cash and the Commitments shall have expired or been terminated.  If any amount shall be paid to the Company in violation of the immediately preceding sentence at any time prior to the later of (a) the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this Guaranty and (b) the Maturity Date, such amount shall be received and held in trust for the benefit of the Administrative Agent and the Lenders, shall be segregated from other property and funds of the Company and shall forthwith be paid or delivered to the Administrative Agent in the same form as so received (with any necessary endorsement or assignment) to be credited and applied to the Guaranteed Obligations and all other amounts payable under this Guaranty, whether matured or unmatured, in accordance with the terms of this Agreement and the other Loan Documents.  If (i) the Company shall make payment to the Administrative Agent or any Lender of all or any part of the Guaranteed Obligations, (ii) all of the Guaranteed Obligations and all other amounts payable under this Guaranty shall have been paid in full in cash and (iii) the Maturity Date shall have occurred, the Administrative Agent and the Lenders will, at the Company’s request and expense, execute and deliver to the Company appropriate documents, without recourse and without representation or warranty, necessary to evidence the transfer by subrogation to the Company of an interest in the Guaranteed Obligations resulting from such payment made by the Company pursuant to this Guaranty.
Section 7.05    Continuing Guaranty; Assignments.  This Guaranty is a continuing guaranty and shall (a) remain in full force and effect until the later of (i) the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this Guaranty and (ii) the Maturity Date, (b) be binding upon the Company, its successors and assigns and (c) inure to the benefit of and be enforceable by the Administrative Agent and the Lenders and their successors, transferees and assigns.  Without limiting the generality of clause (c) of the immediately preceding sentence, the Administrative Agent or any Lender may assign or otherwise transfer all or any portion of its rights and obligations under this Agreement (including, without limitation, all or any portion of its Commitment and the Advances owing to it) to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to the Administrative Agent or such Lender herein or otherwise, in each case as and to the extent provided in Section 8.06 or Section 9.07, as the case may be.
ARTICLE VIII     
THE ADMINISTRATIVE AGENT
Section 8.01    Appointment and Authority.  Each Lender hereby irrevocably appoints the Administrative Agent specified in the recital of the parties to act on its behalf as the Administrative Agent hereunder and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this Article are solely for the benefit of the Administrative Agent and the Lenders, and, except as expressly set forth in Section 8.06, no Borrower shall have any rights as a third party beneficiary of any of such provisions.  It is understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other similar term) with reference to the 

52
    
    

Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.
Section 8.02    Rights as a Lender.  The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with, the Company or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.
Section 8.03    Exculpatory Provisions.
(a)    The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature.  Without limiting the generality of the foregoing, the Administrative Agent:
(i)    shall not be subject to any fiduciary or other implied duties, regardless of whether an Event of Default or Potential Event of Default has occurred and is continuing;
(ii)    shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Majority Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents); provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law; and
(iii)    shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Company or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.
(b)    The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Majority Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Section 9.01 and Section 6.01), or (ii) in the 

53
    
    

absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment.  The Administrative Agent shall be deemed not to have knowledge of any Potential Event of Default or Event of Default or the event or events that give or may give rise to any Potential Event of Default or Event of Default unless and until the Company or any Lender shall have given notice to the Administrative Agent describing such Potential Event of Default or Event of Default and such event or events.
(c)    The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Potential Event of Default or Event of Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article III or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.
Section 8.04    Reliance by Administrative Agent.  The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of an Advance that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender unless an officer of the Administrative Agent responsible for the transactions contemplated hereby shall have received notice to the contrary from such Lender prior to the making of such Advance, and such Lender shall not have made available to the Administrative Agent such Lender’s ratable portion of the applicable Borrowing.  The Administrative Agent may consult with legal counsel (who may be counsel for the Company), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.
Section 8.05    Indemnification.  The Lenders agree to indemnify the Administrative Agent (to the extent the Borrower is required to reimburse the Administrative Agent pursuant to Section 9.04 and only to the extent not reimbursed by the Borrower), ratably according to the respective principal amounts of the Advances then held by each of them, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against the Administrative Agent in any way relating to or arising out of this Agreement or any action taken or omitted by the Administrative Agent under this Agreement, provided that no Lender shall be liable for any portion of such liabilities, obligations, 

54
    
    

losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Administrative Agent’s gross negligence or willful misconduct.  Without limitation of the foregoing, each Lender agrees to reimburse the Administrative Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including counsel fees) incurred by the Administrative Agent in connection with the preparation, execution, delivery, administration, syndication, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, to the extent that the Administrative Agent is not reimbursed for such expenses by the Borrower.
Section 8.06    Resignation of Administrative Agent.  
(a)  The Administrative Agent may at any time give notice of its resignation to the Lenders and the Company.  Upon receipt of any such notice of resignation, the Majority Lenders shall have the right, in consultation with the Company, to appoint a successor, which shall be a bank with an office in London, or an Affiliate of any such bank with an office in London.  If no such successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Majority Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above.  Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.
(b)    [Reserved].
(c)    With effect from the Resignation Effective Date (1) the retiring Administrative Agent shall be discharged from its duties and obligations as Administrative Agent hereunder and under the other Loan Documents and (2) except for any indemnity payments owed to the retiring Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties as Administrative Agent of the retiring Administrative Agent (other than any rights to indemnity payments owed to the retiring Administrative Agent), and the retiring Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents.  After the retiring Administrative Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Article and Section 9.04 shall continue in effect for the benefit of such retiring Administrative Agent, its sub‐agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent.
Section 8.07    Delegation of Duties.  The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder by or through any one or more sub‐agents appointed by the Administrative Agent.  The Administrative Agent and any such sub‐agent may perform any and all of its duties and exercise its rights and powers by or through 

55
    
    

their respective Related Parties.  Each such sub‐agent and the Related Parties of the Administrative Agent and each such sub‐agent shall be entitled to the benefits of all provisions of this Article VIII and Section 9.04 (as though such sub-agents were the “Administrative Agent” hereunder) as if set forth in full herein with respect thereto.
Section 8.08    Non-Reliance on Administrative Agent and Other Lenders.  Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.
ARTICLE IX     
MISCELLANEOUS
Section 9.01    Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other Loan Document, nor consent to any departure by the Borrower or the Company therefrom, shall in any event be effective unless the same shall be in writing and signed by the Majority Lenders, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no amendment, waiver or consent shall, unless in writing and signed by (or consented to by) each Lender affected thereby, do any of the following:
(a)    waive any of the conditions specified in Section 3.01 or Section 3.02;
(b)    increase the Commitments of such Lender;
(c)    reduce the principal of, or rate of interest on, the Advances or other amounts payable hereunder;
(d)    postpone any date fixed for any payment of principal of, or interest on, the Advances or other amounts payable hereunder;
(e)    change the percentage of the aggregate unpaid principal amount of the Advances, or the number of Lenders, that shall be required for the Lenders or any of them to take any action hereunder;
(f)    release the Company from its guaranty set forth in Article VII hereof; or
(g)    amend this Section 9.01 or the definition of “Majority Lenders”;

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and provided further that no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above to take such action, affect the rights or duties of the Administrative Agent under this Agreement or any Note.
Notwithstanding the foregoing, each Incremental Facility Amendment may be effected in accordance with Section 2.18 without the consent of any Lenders other than the Incremental Lenders providing the Incremental Facility contemplated thereby.
Furthermore, and notwithstanding anything else to the contrary contained in this Section 9.01, if the Administrative Agent and the Company shall have jointly identified an obvious error or any error or omission of a technical nature, in each case, in any provision of this Agreement or any other Loan Document, then the Administrative Agent and the Company shall be permitted to amend such provision, and such amendments shall become effective without any further action or consent of any other party to any Loan Document if the same is not objected to in writing by the Majority Lenders within five Business Days following receipt of notice thereof.
Section 9.02    Notices, Etc.
(a)    General.  Unless otherwise expressly provided in this Agreement, all notices, requests, demands, directions and other communications provided for hereunder shall be in writing (including by facsimile transmission or, to the extent provided in Section 9.02 (e), electronic communication).  All such written notices shall be mailed, faxed or delivered to the applicable address, facsimile number or electronic mail address, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:
(i)    if to the Borrower, the Company or the Administrative Agent, to the address, facsimile number, electronic mail address or telephone number set forth below, or to such other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a notice to the other parties:

Borrower:    CSC Computer Sciences International Operations Limited
c/o DXC Technology Company 
Attention: H. C. Charles Diao, Senior Vice President - Finance and Corporate Development
Phone:  (703) 245-1766 
Fax:  (888) 335-2231 
Email: cdiao@dxc.com

		
	Company: 
	DXC Technology Company.  
1775 Tysons Blvd 
Tysons, Virginia 22102 
Attention:  H. C. Charles Diao, Senior Vice President - Finance and Corporate Development 

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Phone:  (703) 245-1766 
Fax:  (888) 335-2231 
Email: cdiao@dxc.com

		
	Administrative Agent: 
	As specified on Schedule 1.02 hereto;

(ii)    if to any other Lender, to the address, facsimile number, electronic mail address or telephone number set forth in its Administrative Questionnaire;

(b)    Timing.  All such notices and other communications shall be deemed to be given or made upon the earlier to occur of (i) actual receipt by the relevant party hereto during the recipient’s normal business hours (or if delivered after normal business hours shall be deemed to have been delivered on the next Business Day) and (ii) (A) if delivered by hand or by courier, when signed for by or on behalf of the relevant party hereto; (B) if delivered by mail, four Business Days after deposit in the mail, postage prepaid; (C) if delivered by facsimile, when sent and receipt has been confirmed by telephone; and (D) if delivered by electronic mail when received; provided, however, that notices and other communications to the Administrative Agent pursuant to Article II or VII shall not be effective until actually received by such Person.  In no event shall a voicemail message be effective as a notice, communication or confirmation hereunder.
(c)    Effectiveness of Facsimile Documents and Signatures.  This Agreement and, except as otherwise specified herein, any documents delivered pursuant to or in connection with this Agreement may be transmitted and/or signed by facsimile or other electronic delivery.  The effectiveness of any such documents and signatures shall, subject to applicable law, have the same force and effect as manually-signed originals and shall be binding on the Company, the Borrower, the Administrative Agent and the Lenders.  The Administrative Agent may also require that any such documents and signatures be confirmed by a manually-signed original thereof; provided, however, that the failure to request or deliver the same shall not limit the effectiveness of any facsimile document or signature.
(d)    Reliance by the Administrative Agent and Lenders.  The Administrative Agent and the Lenders shall be entitled to rely and act upon any notices purportedly given by or on behalf of the Borrower or the Company even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof.  The Borrower shall indemnify each Indemnified Person from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower or the Company.  All telephonic notices to and other communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.
(e)    Electronic Communications.  Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, 

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provided that the foregoing shall not apply to notices to any Lender pursuant to Article II if such Lender has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication.  The Administrative Agent, the Borrower or the Company may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.
Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.
(f)    Change of Address, etc.  Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto.
Section 9.03    No Waiver; Remedies.  No failure on the part of any Lender or the Administrative Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law.
Section 9.04    Costs, Expenses and Indemnification.
(a)    The Borrower agrees to pay promptly on demand all reasonable costs and out-of-pocket expenses (other than Taxes, for which the provisions of Section 2.12 shall apply instead) of Administrative Agent (in its capacity as such) in connection with the preparation, execution, delivery, administration, syndication, modification and amendment of this Agreement (including for the avoidance of doubt in relation to an Incremental Facility Amendment) and the other documents to be delivered hereunder or thereunder, including, without limitation, the reasonable fees and out-of-pocket expenses of a single counsel for the Administrative Agent with respect thereto and with respect to advising the Administrative Agent as to its rights and responsibilities hereunder; provided that the amount payable by the Borrower hereunder in connection with the closing of this Agreement shall not exceed £20,000.  The Borrower further agrees to pay promptly on demand all costs and expenses of the Administrative Agent and of each Lender, if any (including, without limitation, reasonable counsel fees and out-of-pocket expenses but excluding, for the avoidance of doubt, Taxes), in connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of this Agreement and the other documents to be delivered hereunder, including, without limitation, reasonable counsel fees and out-of-pocket expenses in connection with the enforcement of rights under this Section 9.04 (a).

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(b)    If any payment of principal of the Advances is made other than on the last day of the Interest Period for the Advances, as a result of a payment pursuant to Section 2.05 or acceleration of the maturity of the Advances pursuant to Section 6.01 or for any other reason, the Borrower shall, upon demand by any Lender (with a copy of such demand to the Administrative Agent), pay to the Administrative Agent for the account of such Lender any amounts required to compensate such Lender for any additional losses, costs or expenses which it may reasonably incur as a result of such payment, including, without limitation, any loss, cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund or maintain such Lender’s portion of the Advances.
(c)    The Borrower agrees to indemnify and hold harmless the Administrative Agent (in its capacity as such), each Lender and each director, officer, employee, agent, attorney and affiliate of the Administrative Agent and each Lender (each an “Indemnified Person”) in connection with any expenses, losses, claims, damages or liabilities to which the Administrative Agent, a Lender or such Indemnified Persons may become subject (other than Taxes, for which the provisions of Section 2.12 shall apply instead), insofar as such expenses, losses, claims, damages or liabilities (or actions or other proceedings commenced or threatened in respect thereof) arise out of the transactions referred to in this Agreement or arise from any use or intended use of the proceeds of the Advances, or to the extent relating to the foregoing, in any way arise out of activities of the Borrower or the Company that violate Environmental Laws, and to reimburse the Administrative Agent, each Lender and each Indemnified Person, upon their demand, for any reasonable legal or other out-of-pocket expenses incurred in connection with investigating, defending or participating in any such loss, claim, damage, liability, or action or other proceeding, whether commenced or threatened (whether or not the Administrative Agent, such Lender or any such person is a party to any action or proceeding out of which any such expense arises); provided that nothing in this Section 9.04 (c) shall obligate the Borrower to pay the normal expenses of the Administrative Agent in the administration of this Agreement in the absence of pending or threatened litigation or other proceedings or the claims or threatened claims of others and then only to the extent arising therefrom.  Notwithstanding the foregoing, the Borrower shall have no obligation hereunder to an Indemnified Person with respect to indemnified liabilities which have resulted from (x) the gross negligence, bad faith or willful misconduct of such Indemnified Person, as determined by a final and nonappealable judgment by a court of competent jurisdiction, (y) a claim brought by the Borrower or the Company against an Indemnified Person for breach in bad faith of such Indemnified Person’s obligations hereunder in which the Borrower or the Company has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction or (z) a claim not involving an act or omission of the Company or the Borrower and that is brought by an Indemnified Person against another Indemnified Person (other than against the arrangers or the Administrative Agent in their capacities as such).  In the case of an investigation, litigation or proceeding to which the indemnity in this paragraph applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by the Borrower or the Company, any of the Company’s equity holders or creditors, an Indemnified Person or any other person or entity, whether or not an Indemnified Person is otherwise a party thereto.
(d)    To the fullest extent permitted by applicable law, neither the Borrower nor the Company shall assert, and the Borrower and the Company each hereby waives, any claim against 

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any Indemnified Person, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of this Agreement, or any agreement or instrument contemplated hereby, the transactions contemplated hereby, the Advances or the use of the proceeds thereof.
Section 9.05    Right of Set-off.  Upon (i) the occurrence and during the continuance of any Event of Default and (ii) the making of the request or the granting of the consent specified by Section 6.01 to authorize the Administrative Agent to declare the Advances due and payable pursuant to the provisions of Section 6.01, each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (time or demand, provisional or final, or general, but not special (in whatever currency)) at any time held and other indebtedness (in whatever currency) at any time owing by such Lender or any Affiliate thereof to or for the credit or the account of the Borrower or the Company against any and all of the obligations of the Borrower or the Company (as the case may be) now or hereafter existing under this Agreement that are then due and payable, whether or not such Lender shall have made any demand under this Agreement, and each such Affiliate is hereby irrevocably authorized to permit such setoff and application.  Each Lender agrees promptly to notify the Borrower or the Company after any such set-off and application made by such Lender, provided that the failure to give such notice shall not affect the validity of such set-off and application.  The rights of each Lender under this Section are in addition to other rights and remedies (including, without limitation, other rights of set-off) which such Lender may have.
Section 9.06    Binding Effect.  This Agreement shall be deemed to have been executed and delivered when it shall have been executed and delivered by the Lenders, the Borrower, the Company and the Administrative Agent and thereafter shall be binding upon and inure to the benefit of the Borrower, the Company, the Administrative Agent and each Lender and their respective successors and permitted assigns, except that, other than as expressly provided herein, neither the Borrower nor the Company shall have the right to assign its rights or obligations hereunder or any interest herein without the prior written consent of all Lenders.  This Agreement, the Agency Fee Letter and the Arrangement Fee Letter constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous oral agreements and understandings relating to the subject matter hereof.
Section 9.07    Assignments and Participations.
(a)    Successors and Assigns Generally.  Neither the Company nor the Borrower may assign any of its rights or transfer any of its rights or obligations under the Loan Documents unless consented to by all of the Lenders. No Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of Section 9.07 (b), (ii) by way of participation in accordance with the provisions of Section 9.07 (d) or (iii) by way of pledge or assignment of a security interest subject to the restrictions of Section 9.07 (e) (and any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, the 

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Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(b)    Assignments by Lenders.  Any Lender may at any time after the applicable Funding Date assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of the Advances at the time owing to it); provided that any such assignment shall be subject to the following conditions:
(i)    Minimum Amounts.
(A) in the case of an assignment of the entire remaining amount of the assigning Lender’s Advances at the time owing to it or contemporaneous assignments to related Approved Funds that equal at least the amount specified in paragraph (b)(i)(B) of this Section in the aggregate or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and
(B) in any case not described in paragraph (b)(i)(A) of this Section, the principal outstanding balance of the Advances of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than US$5,000,000 (or its equivalent in any other currency or currencies), unless the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed).
(ii)    Proportionate Amounts.  Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Advances.
(iii)    Required Consents.  No consent shall be required for any assignment except to the extent required by paragraph (b)(i)(B) of this Section and, in addition:
(A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment, or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within ten Business Days after having received notice thereof;
(B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender; and

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(iv)    Assignment and Assumption.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of £2,500; provided that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.
(v)    [Reserved].
(vi)    No Assignment to Natural Persons.  No such assignment shall be made to a natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person).
Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Section 2.10, Section 2.12 and Section 9.04 with respect to facts and circumstances occurring prior to the effective date of such assignment. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this Section.
(c)    Register.  The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices in England a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amounts (and currency and stated interest) of the Advances owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Company, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection by the Company and any Lender, at any reasonable time and from time to time upon reasonable prior notice.
(d)    Participations.  Any Lender may at any time, without the consent of, or notice to, the Borrower, the Company or the Administrative Agent, sell participations to any Person (other than a natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person), the Company or any of the Company’s Affiliates or Subsidiaries or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of the Advances owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to 

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the other parties hereto for the performance of such obligations, and (iii) the Borrower, the Company, the Administrative Agent and Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 8.05 with respect to any payments made by such Lender to its Participant(s).
Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in Section 9.01 (b), Section 9.01 (c) or Section 9.01 (d) that affects such Participant.  The Borrower and the Company each agree, to the fullest extent permitted under applicable law, that each Participant shall be entitled to the benefits of Section 2.10, Section 2.12 and Section 9.04 (b) (subject to the requirements and limitations therein, including the requirements under Section 2.12 (a)(vii) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Section 2.17 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Section 2.10 or Section 2.12, with respect to any participation, than its participating Lender would have been entitled to receive.  Each Lender that sells a participation agrees, at the Company's or the Borrower’s request and expense, as applicable, to use reasonable efforts to cooperate with the Company or the Borrower to effectuate the provisions of Section 2.17 (b) with respect to any Participant.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.05 as though it were a Lender; provided that such Participant agrees to be subject to Section 2.13 as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Company or the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and currency and stated interest) of each Participant’s interest in the Advances or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form within the meaning of Section 163(f), 871(h)(2) and 881(c)(2) of the Code and any related United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.
(e)    Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, central bank or other governmental authority or organization; provided that no such pledge or assignment shall 

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release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
(f)    If (i) a Lender assigns, transfers or sells a participation in any of its rights or obligations under the Loan Documents and (ii) as a result of circumstances existing at the date of the assignment, transfer or sale occurs, the Borrower would be obliged to make a payment to the new Lender under Section 2.10 (a), Section 2.10 (b) or Section 2.12, then the new Lender is only entitled to receive payment under that Section to the same extent as the existing would have been if the assignment, transfer or sale had not occurred.
Section 9.08    [Reserved].  
Section 9.09    Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of England.
Section 9.10    Execution in Counterparts.  This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.
Section 9.11    Consent to Jurisdiction; Waiver of Immunities. 
(a)    Jurisdiction.

(i)    The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement) (a “Dispute”).

(ii)    The parties hereto agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no such party will argue to the contrary.

(iii)    This Section 9.11 is for the benefit of the Administrative Agent and the Lenders only.  As a result, neither the Administrative Agent nor any Lender shall be prevented from undertaking any proceedings relating to a Dispute in any other courts with jurisdiction.    

(b)    Service of Process.  Without prejudice to any other mode of service allowed under any relevant law, the Company:
(i)    irrevocably appoints the Borrower as its for service of process in relation to any proceedings before the English courts in connection with any Loan Document; and
(ii)    agrees that failure by a process agent to notify the Company of the process will not invalidate the proceedings concerned.
Section 9.12    [Reserved]. 

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Section 9.13    Waiver of Trial by Jury.  THE COMPANY, THE BORROWER, EACH LENDER AND THE ADMINISTRATIVE AGENT EACH HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT.  The scope of this waiver is intended to be all-encompassing of any and all disputes that may be filed in any court and that relate to the subject matter of this transaction, including without limitation contract claims, tort claims, breach of duty claims and all other common law and statutory claims.  The Borrower, the Company, the Lenders and the Administrative Agent each (i) acknowledges that this waiver is a material inducement for the Borrower, the Company, each Lender and the Administrative Agent to enter into a business relationship, that the Borrower, the Company, each Lender and the Administrative Agent have already relied on this waiver in entering into this Agreement or accepting the benefits thereof, as the case may be, and that each will continue to rely on this waiver in their related future dealings and (ii) further warrants and represents that each has reviewed this waiver with its legal counsel, and that each knowingly and voluntarily waives its jury trial rights following consultation with legal counsel.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.  In the event of litigation, this Agreement may be filed as a written consent to a trial by the court.
Section 9.14    [Reserved].  
Section 9.15    Survival of Certain Provisions.  All agreements, representations and warranties made in this Agreement shall survive the execution and delivery of this Agreement and any increase in the Commitments under this Agreement.  The Company’s obligations under Section 2.10 and Section 9.04, and the Lenders’ obligations under Section 8.05 shall survive the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.
Section 9.16    Severability.  In case any provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.
Section 9.17    Headings.  Section and subsection headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose or be given any substantive effect.
Section 9.18    [Reserved].  

Section 9.19    Confidentiality.  Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and 

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other representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority purporting to have jurisdiction over it or its Affiliates (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, provided, however, that, except in the case of disclosure to bank regulators or examiners in accordance with customary banking practices, if legally permitted, written notice of each instance in which Information is required or requested to be disclosed shall be furnished to the Company not less than 30 days prior to the expected date of such disclosure or, if 30 days’ notice is not practicable under the circumstances, as promptly as practicable under the circumstances, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or any action or proceeding relating to this Agreement or the enforcement of rights hereunder, (f) subject to an agreement containing provisions substantially the same as those of this ‎Section 9.19, to (i) any assignee of or participant in, or any prospective assignee of or participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective party (or its managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives) to any swap or derivative or similar transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder, (iii) any rating agency, or (iv) the CUSIP Service Bureau or any similar organization, (g) with the consent of the Company or (h) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Administrative Agent or any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Company. In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry and service providers to the Administrative Agent and the Lenders in connection with the administration of this Agreement and the other Loan Documents.
For purposes of this Section, “Information” means all information received from the Company or any of its Subsidiaries relating to the Company or any of its Subsidiaries or any of their respective businesses, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Company or any of its Subsidiaries.  Any Person required to maintain the confidentiality of Information as provided in this Section 9.19 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.  
Section 9.20    No Fiduciary Duty.  Each of the Borrower and the Company acknowledges that the Administrative Agent, each Lender and their Affiliates (collectively, solely for purposes of this paragraph, the “Lender Parties”) is acting pursuant to a contractual relationship on an arm’s length basis, and the parties hereto do not intend that any Lender Party act or be responsible as a fiduciary to the Borrower or the Company, its management, stockholders, creditors or any other person.  Each of the Borrower and the Company and each Lender Party hereby expressly disclaims any fiduciary relationship and agrees they are each 

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responsible for making their own independent judgments with respect to any transactions entered into between them.  Each of the Borrower and the Company also hereby acknowledges that no Lender Party has advised nor is advising the Borrower or the Company as to any legal, accounting, regulatory or tax matters, and that the Borrower and the Company are consulting its own advisors concerning such matters to the extent it deems appropriate.
[Remainder of page intentionally left blank]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their respective authorized officers as of the date first written above.
CSC COMPUTER SCIENCES INTERNATIONAL OPERATIONS LIMITED, a company incorporated in England, as the Borrower
By:    /s/ Michael Woodfine____
Name:  Michael Woodfine
Title:    Director
DXC TECHNOLOGY COMPANY, a Nevada corporation, as the Company
By:    /s/ H.C. Charles Diao ____
Name:  H.C. Charles Diao
Title:   Senior Vice President, Finance and             Corporate Development

[Signature Page to Credit Agreement]
    

LLOYDS BANK PLC, 
as Administrative Agent

By:    /s/ John Togher____________
Name:  John Togher
Title:    Associate Director

[Signature Page to Credit Agreement]
    

LLOYDS BANK PLC, as Lender

By:    /s/ Lee Chester___________
Name:  Lee Chester
Title:    Associate Director

CITIBANK, N.A., as Lender

By:    /s/ Carolyn Kee__________
Name:  Carolyn Kee
Title:    Vice President

BANK OF AMERICA, N.A., as Lender

By:    /s/ Arti Dighe__________
Name:  Arti Dighe
Title:    Vice President

Mizuho Bank, Ltd., as Lender

By:    /s/ Donna DeMagistris__________
Name:  Donna DeMagistris
Title:    Authorized Signatory

MUFG BANK, LTD., as Lender

By:    /s/ Lillian Kim__________
Name:  Lillian Kim
Title:    Director

ROYAL BANK OF CANADA, as Lender

By:    /s/ Theodore Brown_________
Name: Theodore Brown
Title:   Authorized Signatory

[Signature Page to Credit Agreement]
    

SCHEDULE I
INITIAL LENDERS’ INITIAL COMMITMENTS
	
		
	Initial Lender
	Initial Commitment

	Lloyds Bank plc
	£200,000,000

	Citibank, N.A.
	£50,000,000

	Bank of America, N.A.
	£50,000,000

	Mizuho Bank, Ltd.
	£50,000,000

	MUFG Bank, Ltd.
	£50,000,000

	Royal Bank of Canada
	£50,000,000

	Total Commitments
	£450,000,000

Schedule I-1
    

SCHEDULE 1.01 – Litigation and Investigations
Vincent Forcier v. Computer Sciences Corporation and The City of New York: On October 27, 2014, the United States Attorney’s Office for the Southern District of New York and the Attorney General for the State of New York filed complaints-in-intervention on behalf of the United States and the State of New York, respectively, against Computer Sciences Corporation (“CSC”) and The City of New York. This action arose out of a qui tam complaint originally filed under seal in 2012 by Vincent Forcier, a former employee of CSC. The complaints allege that from 2008 to 2012 New York City and CSC, in its role as fiscal agent for New York City’s Early Intervention Program (“EIP”), a federal program that provides services for infants and toddlers with manifest or potential developmental delays, violated the federal and state False Claims Acts and various common law standards by allegedly orchestrating a billing fraud against Medicaid through the misapplication of default billing codes and the failure to exhaust private insurance coverage before submitting claims to Medicaid. The New York Attorney General’s complaint also alleges that New York City and CSC failed to reimburse Medicaid in certain instances where insurance had paid a portion of the claim. The lawsuits seek treble statutory damages, other civil penalties and attorneys’ fees and costs.

On January 26, 2015, CSC and the City of New York moved to dismiss Forcier’s amended qui tam complaint as well as the federal and state complaints-in-intervention. In June 2016, the Court dismissed Forcier’s amended complaint in its entirety. With regard to the complaints-in-intervention, the Court dismissed the federal claims alleging misuse of default diagnosis codes when the provider had entered an invalid code, and the state claims alleging failure to reimburse Medicaid when claims were subsequently paid by private insurance. The Court denied the motions to dismiss with respect to the federal and state claims relating to (i) submission of insurance claims with a code signifying that the patient’s policy ID was unknown, and (ii) submission of claims to Medicaid after the statutory deadline for payment by private insurance had passed, and state common law claims. In accordance with the ruling, the United States and the State of New York each filed amended complaints-in-intervention on September 6, 2016. In addition to reasserting the claims upheld by the Court, the amended complaints assert new claims alleging that the compensation provisions of CSC’s contract with New York City rendered it ineligible to serve as a billing agent under state law. 

On November 9, 2016, CSC filed motions to dismiss the amended complaints in their entirety. On August 10, 2017, the Court granted in part and denied in part the motions to dismiss, allowing the remaining causes of action to proceed. On January 9, 2018, the Company answered the complaints, and asserted a counterclaim against the State of New York on a theory of contribution and indemnification. On January 30, 2018, the State of New York filed a motion to 

Schedule 1.01-1
    

dismiss the Company’s counterclaim. The motion is fully briefed and under consideration by the Court. The Parties participated in a non-binding mediation on November 29, 2017, but no settlement has been reached to date. Commencement of discovery remains deferred. The Company believes that these claims are without merit and intends to continue to defend itself vigorously

Strauch Fair Labor Standards Act Collective Action: On July 1, 2014, plaintiffs Joseph Strauch, Timothy Colby, Charles Turner, and Vernon Carre filed an action in the U.S. District Court for the District of Connecticut on behalf of themselves and a putative nationwide collective of CSC system administrators, alleging CSC’s failure to properly classify these employees as non-exempt under the federal Fair Labor Standards Act (“FLSA”). Plaintiffs allege similar state-law Rule 23 class claims pursuant to Connecticut and California statutes, including the Connecticut Minimum Wage Act, the California Unfair Competition Law, California Labor Code, California Wage Order No. 4-2001 and the California Private Attorneys General Act. Plaintiffs claim double overtime damages, liquidated damages, pre- and post-judgment interest, civil penalties, and other state-specific remedies.

In 2015 the Court entered an order granting conditional certification under the FLSA of the collective of over 4,000 system administrators, and notice of the right to participate in the FLSA collective action was mailed to the system administrators. Approximately 1,000 system administrators, prior to the announced deadline, filed consents with the Court to participate in the FLSA collective.

On June 30, 2017, the Court granted Rule 23 certification of a Connecticut state-law class and a California state-law class consisting of professional system administrators and associate professional system administrators. Senior professional system administrators were found not to qualify for Rule 23 certification under the state-law claims. On July 14, 2017, the Company petitioned the Second Circuit Court of Appeals for permission to file an appeal of the Rule 23 decision. That petition was denied on November 21, 2017.

As a result of the Court's findings in its Rule 23 certification order, the parties entered into a stipulation to decertify the senior professional system administrators from the FLSA collective. On August 2, 2017, the Court approved the stipulation, and the FLSA collective action is currently made up of approximately 700 individuals who held the title of associate professional or professional system administrator.

Schedule 1.01-2
    

A jury trial commenced on December 11, 2017. On December 20, 2017, the jury returned a verdict in favor of plaintiffs, finding that the Company had misclassified the class of employees as exempt under federal and state laws, and finding that it had done so willfully. The Court will determine damages and address post-trial motions in further proceedings. The Company disagrees with the verdict and intends to continue to defend itself vigorously, including by appealing the verdict and the final judgment of the Court.

Computer Sciences Corporation v. Eric Pulier, et al.: On May 12, 2015, CSC and its wholly owned subsidiary, ServiceMesh Inc. (“SMI”), filed a civil complaint in the Court of Chancery of the State of Delaware against Eric Pulier, the former CEO of SMI, which had been acquired by CSC on November 15, 2013. Following the acquisition, Mr. Pulier signed a retention agreement with SMI pursuant to which he received a grant of restricted stock units of CSC and agreed to be bound by CSC’s rules and policies, including CSC’s Code of Business Conduct. Mr. Pulier resigned from SMI on April 22, 2015 amid allegations that he had engaged in fraudulent transactions with two employees of the Commonwealth Bank of Australia Ltd. (“CBA”). The original complaint against Mr. Pulier asserted claims for fraud, breach of contract and breach of fiduciary duty. In an amended complaint, CSC named TechAdvisors, LLC and Shareholder Representative Services LLC (“SRS”) as additional defendants. In ruling on a motion to dismiss filed by Mr. Pulier, the Court dismissed CSC’s claim for breach of the implied covenant of good faith, but allowed substantially all of the remaining claims to proceed. Mr. Pulier asserted counter-claims for breach of contract, fraud, negligent representation, rescission, and violations of the California Blue Sky securities law. With the exception of the claim for breach of his retention agreement, the Court dismissed in whole or in part each of Mr. Pulier’s counterclaims.

On December 17, 2015, CSC entered into a settlement agreement with the majority of the former equityholders of SMI, as well as with SRS acting in its capacity as the agent and attorney-in-fact for the settling equityholders. Pursuant to the settlement agreement, CSC received $16.5 million, which amount was equal to the settling equityholders’ pro rata share of the funds remaining in escrow from the transaction, which was recorded as an offset to selling, general and administrative costs in CSC’s statements of operations for the fiscal year ended March 31, 2016. On February 20, 2017, CSC, SRS and the former equityholders of SMI who remain named defendants entered into a partial settlement agreement by which CSC received payment of some of the funds remaining in escrow.

On July 20, 2017, the Court granted a motion by the United States for a 90-day stay of discovery pending the completion of a criminal investigation. On September 27, 2017, a grand jury empaneled by the United States District Court for the Central District of California returned an 

Schedule 1.01-3
    

indictment against Pulier, charging him with conspiracy, securities and wire fraud, obstruction of justice, and other violations of federal law (United States v. Eric Pulier, CR 17-599-AB). The Government sought an extension of the stay which the Delaware Court granted on November 3, 2017. The civil action is now stayed pending resolution of the criminal case.

Law enforcement officials in Australia have brought bribery-related charges against the two former CBA employees. One of these has since pled guilty, and in 2016 received a sentence of imprisonment. In 2016, the United States Attorney’s Office for the Central District of California announced similar criminal charges against this same CBA employee for securities fraud and wire fraud. In April 2018 the other former CBA employee was committed to stand trial in the Australian criminal courts. The Company is cooperating with and assisting the Australian and U.S. authorities in their investigations.

On February 17, 2016, Mr. Pulier filed a complaint in Delaware Chancery Court against CSC and its subsidiary - CSC Agility Platform, Inc., formerly known as SMI - seeking advancement of his legal fees and costs. On May 12, 2016, the Court ruled that CSC Agility Platform - as the successor to SMI - is liable for advancing 80% of Mr. Pulier’s fees and costs in the underlying civil action. Mr. Pulier has also filed a complaint for advancement of the legal fees and costs incurred in connection with his defense of criminal investigations by the U.S. Government and other entities. On March 30, 2017, Mr. Pulier filed a motion for judgment on the pleadings in this fee advancement matter. Mr. Pulier's motion for judgment on the pleadings and other advancement-related issues were argued before the Court on August 2, 2017, and, on August 7, 2017, the Court ruled substantially in Mr. Pulier's favor. On January 30, 2018, the Court reduced the Company’s advancement obligation to only 80% of the criminal defense fees and costs sought by Mr. Pulier. In undertakings previously provided to SMI, Mr. Pulier agreed to repay all amounts advanced to him if it should ultimately be determined that he is not entitled to indemnification.

Cisco Systems Inc. and Cisco Systems Capital Corporation v. Hewlett-Packard Co.: On August 24, 2015, Cisco Systems, Inc. (“Cisco”) and Cisco Systems Capital Corporation (“Cisco Capital”) filed an action against Hewlett Packard Co., now known as HP Inc. (“HP”) in California Superior Court, Santa Clara County, for declaratory judgment and breach of contract in connection with a contract to utilize Cisco products and services, and to finance the services through Cisco Capital. HP terminated the contract, and the parties dispute the calculation of the proper cancellation credit. On December 18, 2015, Cisco filed an amended complaint that abandoned the claim for breach of contract set forth in the original complaint and asserted a single cause of action for declaratory relief concerning the proper calculation of the cancellation 

Schedule 1.01-4
    

credit. On January 19, 2016, HP answered the complaint and filed a counterclaim for breach of contract and declaratory judgment. Discovery ended, and a trial was scheduled to begin on June 11, 2018. On June 6, 2018, the parties participated in a pre-trial settlement conference at which they agreed to a resolution of both the claim and counterclaim. The confidential settlement agreement was finalized on July 5, 2018. On August 1, 2018, pursuant to a joint stipulation of the parties, the Court approved dismissal of the action with prejudice. This case is now closed. DXC Technology Company was the party in interest in this matter pursuant to the Separation and Distribution Agreement between the then Hewlett-Packard Co. and Hewlett Packard Enterprise Company (“HPE”) and the subsequent Separation and Distribution Agreement between HPE and DXC Technology Company.

Kemper Corporate Services, Inc. v. Computer Sciences Corporation: In October 2015, Kemper Corporate Services, Inc. (“Kemper”) filed a demand for arbitration against CSC with the American Arbitration Association (“AAA”), alleging that CSC breached the terms of a 2009 Master Software License and Services Agreement and related Work Orders (the “Agreement”) by failing to complete a software translation and implementation plan by certain contractual deadlines. Kemper claimed breach of contract, seeking approximately $100 million in damages measured in part by the amount of the fees paid under the contract, as well as pre-judgment interest, and in the alternative claimed rescission of the Agreement. CSC answered the demand for arbitration denying Kemper’s claims and asserting a counterclaim for unpaid invoices for services rendered by CSC.

A single arbitrator conducted an evidentiary hearing on the merits of the claims and counterclaims in April 2017. Oral argument took place on August 28, 2017. On October 2, 2017, the arbitrator issued a partial final award, finding for Kemper on its breach of contract theory, awarding Kemper $84.2 million in compensatory damages plus prejudgment interest, denying Kemper’s claim for rescission as moot, and denying CSC’s counterclaim. Kemper moved on October 10, 2017, in federal district court in Texas to confirm the award. On November 16, 2017, the arbitrator issued a Final Award which reiterated his findings of fact and law, calculated the amount of prejudgment interest, and awarded Kemper its costs of arbitration including reasonable attorneys’ fees and expenses. On December 6, 2017, the Company filed a motion to vacate the award in federal district court in New York. A week later, the New York court stayed the action in deference to the Texas court’s decision as to which venue was more appropriate to address the vacatur arguments. On January 12, 2018, the Company appeared in the Texas action seeking a stay of the confirmation proceedings or a transfer of venue to New York. On March 2, 2018, the Texas court denied the venue transfer motion. The pending vacatur motion was accordingly transferred to the Texas court, and a new memorandum of law in support of the 

Schedule 1.01-5
    

motion was filed in that jurisdiction on March 30, 2018. The motion is fully submitted and under consideration by the Court.

The Company disagrees with the decision of the arbitrator and intends to continue to defend itself vigorously. The Company is also pursuing coverage for the full scope of the award, interest, and legal fees and expenses, under the Company's applicable insurance policies.  

Forsyth, et al. v. HP Inc. and Hewlett Packard Enterprise:  This purported class and collective action was filed on August 18, 2016 in the U.S. District Court for the Northern District of California, against HP and HPE alleging violations of the Federal Age Discrimination in Employment Act (“ADEA”), the California Fair Employment and Housing Act, California public policy and the California Business and Professions Code. Former business units of HPE now owned by the Company will be proportionately liable for any recovery by plaintiffs in this matter. Plaintiffs filed an amended complaint on December 19, 2016. Plaintiffs seek to certify a nationwide class action under the ADEA comprised of all U.S. residents employed by defendants who had their employment terminated pursuant to a work force reduction (“WFR”) plan on or after December 9, 2014 (deferral states) and April 8, 2015 (non-deferral states), and who were 40 years of age or older at the time of termination. Plaintiffs also seek to represent a Rule 23 class under California law comprised of all persons 40 years or older employed by defendants in the state of California and terminated pursuant to a WFR plan on or after August 18, 2012. On January 30, 2017, defendants filed a partial motion to dismiss and a motion to compel arbitration of claims by certain named and opt-in plaintiffs who had signed releases as part of their WFR packages. On September 20, 2017, the Court denied the partial motion to dismiss without prejudice, but granted defendants’ motions to compel arbitration for those named and opt-in plaintiffs. Accordingly, the Court has stayed the entire action pending arbitration for these individuals, and administratively closed the case. Plaintiffs filed a motion for reconsideration as well as a notice of appeal to the Ninth Circuit (which has been denied as premature). The reconsideration motion was denied without oral argument. In that same decision, the Court held that a joint arbitration was permissible. The Company subsequently sought and obtained leave of Court to file a motion for reconsideration arguing that joint arbitration is not permitted under the relevant employee agreements. The Court denied the motion on April 17, 2018, ruling that interpretation of the employee agreements is an issue delegated to the arbitrator. The American Arbitration Association, which was designated to manage the arbitration process, has selected a single arbitrator to conduct the proceedings. An initial case management conference before the arbitrator was held on June 29, 2018. Pursuant to the release agreements, however, mediation is a precondition to arbitration. A mediation is therefore scheduled for October 4-5, 2018. Former 

Schedule 1.01-6
    

business units of the Company now owned by Perspecta will be proportionately liable for any recovery by plaintiffs in this matter. 

Voluntary Disclosure of Certain Possible Sanctions Law Violations: On February 2, 2017, CSC submitted an initial notification of voluntary disclosure to the U.S. Department of Treasury, Office of Foreign Assets Control (“OFAC”) regarding certain possible violations of U.S. sanctions laws pertaining to insurance premium data and claims data processed by two partially-owned joint ventures of Xchanging, which CSC acquired during the first quarter of fiscal 2017. A copy of the disclosure was also provided to Her Majesty’s Treasury Office of Financial Sanctions Implementation in the United Kingdom. The Company’s related internal investigation is continuing, and the Company has undertaken to cooperate with and provide a full report of its findings to OFAC when completed.

In addition to the matters noted above, the Company is currently subject in the normal course of business to various claims and contingencies arising from, among other things, disputes with customers, vendors, employees, contract counterparties and other parties, as well as securities matters, environmental matters, matters concerning the licensing and use of intellectual property, and inquiries and investigations by regulatory authorities and government agencies. Some of these disputes involve or may involve litigation. The financial statements reflect the treatment of claims and contingencies based on management's view of the expected outcome. The Company consults with outside legal counsel on issues related to litigation and regulatory compliance and seeks input from other experts and advisors with respect to matters in the ordinary course of business. Although the outcome of these and other matters cannot be predicted with certainty, and the impact of the final resolution of these and other matters on the Company’s results of operations in a particular subsequent reporting period could be material and adverse, management does not believe based on information currently available to the Company, that the resolution of any of the matters currently pending against the Company will have a material adverse effect on the financial position of the Company or the ability of the Company to meet its financial obligations as they become due. Unless otherwise noted, the Company is unable to determine at this time a reasonable estimate of a possible loss or range of losses associated with the foregoing disclosed contingent matters.

Schedule 1.01-7
    

SCHEDULE 1.02 – Administrative Agent’s Address
Address:    Lloyds Bank plc
150 Fountainbridge
Edinburgh
EH3 9PE 
Attention:    Scott Christie
Phone:      +44 131 222 0330
Fax:        +44 131 347 7229
Email:        Scott.Christie@lloydsbanking.com

Schedule 1.02-1
    

SCHEDULE 1.03 – Timetables
	
							
	LIBOR is fixed
	 
	Quotation Day as of 11:00 a.m. London time.
	 
	 
	 
	 

Schedule 1.03-1
    

EXHIBIT A TO THE  
CREDIT AGREEMENT
FORM OF ASSIGNMENT AND ASSUMPTION
This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [the][each] Assignor identified in item 1 below ([the][each, an] “Assignor”) and [the][each] Assignee identified in item 2 below ([the][each, an] “Assignee”). [It is understood and agreed that the rights and obligations of [the Assignors][the Assignees] hereunder are several and not joint.] Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by [the][each] Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.
For an agreed consideration, [the][each] Assignor hereby irrevocably sells, assigns and transfers by novation to [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases, assumes and accepts transfer from [the Assignor][the respective Assignors], subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’] rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of [the Assignor][the respective Assignors] under the facility identified below (including, without limitation, any guarantees included in such facility), and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)][the respective Assignors (in their respective capacities as Lenders)] against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold, assigned and transferred by novation pursuant to clause (i) above (the rights and obligations sold, assigned and transferred by novation by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as [the][an] “Assigned Interest”). Each such sale, assignment and transfer by novation is without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by [the][any] Assignor.

Exhibit A-1

	
				
	1.
	Assignor[s]:
	 
	 

	 
	 
	 
	 

	2.
	Assignee[s]:
	 
	 

	 
	 
	 
	 

	 
	[for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]

	3.
	Borrower
	CSC Computer Sciences International Operations Limited

	4.
	Administrative Agent:
	Lloyds Bank plc, as the administrative agent under the Credit Agreement

	5.
	Credit Agreement:
	The Credit Agreement dated as of October 12, 2018 among CSC Computer Sciences International Operations Limited, DXC Technology Company, the Lenders from time to time party thereto, and Lloyds Bank plc, as administrative agent.

	6.
	Assigned Interest[s]:
	 

	
							
	Assignor[s]
	Assignee[s]
	Facility Assigned
	Aggregate Amount of Commitment/ Advance for all Lenders
	Amount of Commitment/ Advance Assigned
	Percentage Assigned of Commitment/ Advance9
	CUSIP Number

	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	$
	$
	%
	 

	 
	 
	 
	$
	$
	%
	 

	 
	 
	 
	$
	$
	%
	 

	
				
	[8.
	Trade Date:
	 
	]

Effective Date: ______________ ____, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]
The terms set forth in this Assignment and Assumption are hereby agreed to: 

Exhibit A-2

	
		
	 
	ASSIGNOR[S]

	 
	[NAME OF ASSIGNOR]

	 
	By:    

	 
	Name:
Title: 

	 
	

[NAME OF ASSIGNOR] 

	 
	By:    

	 
	Name:
Title: 

	 
	

ASSIGNEE[S]

	 
	[NAME OF ASSIGNEE]

	 
	By:    

	 
	Name:
Title: 

	 
	

[NAME OF ASSIGNEE] 

	 
	By:    

	 
	Name:
Title: 

	[Consented to and] Accepted:  
LLOYDS BANK PLC, as Administrative Agent
	 

	 
	 

	By:    
	 

	Name:
Title: 
	 

Exhibit A-3

	
	
	[Consented to:]

	CSC COMPUTER SCIENCES INTERNATIONAL OPERATIONS LIMITED

	 

	By:    

	Title:

Exhibit A-4

ANNEX 1
STANDARD TERMS AND CONDITIONS FOR  
ASSIGNMENT AND ASSUMPTION
1.    Representations and Warranties.
1.1    Assignor[s].  [The][Each] Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][the relevant] Assigned Interest, (ii) [the][such] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document, or (iv) the performance or observance by the Borrower, or any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.
1.2.    Assignee[s].  [The][Each] Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee under Section 9.07(b)(iii) and (vi) of the Credit Agreement (subject to such consents, if any, as may be required under Section 9.07(b)(iii) of the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 5.01(b)(i) and (ii) thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, and (vii) for the benefit of the Administrative Agent and without liability to the Borrower that it is [a Qualifying Lender (other than a Treaty Lender)][a Treaty Lender][not a Qualifying Lender]; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, [the][any] Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, 

Exhibit A-5

and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.
2.    Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of [the][each] Assigned Interest (including payments of principal, interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date. Notwithstanding the foregoing, the Administrative Agent shall make all payments of interest, fees or other amounts paid or payable in kind from and after the Effective Date to [the][the relevant] Assignee.
3.    General Provisions.  This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors, assigns and transferees. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy or email shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the laws of England.

Exhibit A-6

Exhibit B-1 
[Form of Opinion of CMS Cameron McKenna LLP]

Dear Sirs
£450,000,000 facility agreement (the “Facility Agreement”) dated on or about the date of this letter and made between, among others, (1) CSC Computer Sciences International Operations Limited and (2) Lloyds Bank plc as administrative agent (the “Administrative Agent”)
Introduction
We have acted as English legal advisers to the Administrative Agent in connection with the Facility Agreement.
Terminology
In this letter, terms defined in Schedule 1 (Definitions) to this letter shall have the meanings given in that schedule, and terms defined in the English Law Document shall have the same meanings when used in this letter unless otherwise defined.
Documents Examined
For the purpose of giving the opinions in this letter we have examined the following documents (the “Reviewed Documents”):
an executed copy of the English Law Document;
a copy of each signed Certificate (without examining the substance of any attachments thereto other than, in the case of the English Obligor, the Resolutions and the Constitutional Documents (as defined below));
copies of the memorandum and articles of association of the English Obligor (the “Constitutional Documents”) and copies of the Resolutions of the English Obligor, in each case certified as being true, complete and up to date as at the date of the English Obligor’s Certificate; and
the results of our online search on [  ] October 2018 of the public records on file and available for inspection at Companies House with respect to the English Obligor and the results of a telephone search made by us at the Central Index of Winding-Up Petitions on [  ] October 2018 at [  ] a.m./p.m. with respect to the English Obligor (together, the “Searches”).
Except as mentioned above, we have not examined any documents or made any enquiries in connection with the giving of this opinion.

Exhibit B-1-1

Assumptions
In considering the Reviewed Documents we have assumed:
the genuineness of all signatures and seals on the Reviewed Documents and that any signature or execution pages on which any such signatures and/or seals appear physically formed part of complete and final versions of those documents at the time of signing and/or sealing;
the accuracy and completeness of all facts stated in any such documents and of all representations and warranties given by or in respect of any party to the Reviewed Documents (except insofar as they relate to matters of law on which we expressly opine in this opinion letter);
the authenticity and completeness of all original documents submitted to us or used to provide copies to us and the conformity to original documents of all copy documents submitted to us;
that the Constitutional Documents of the English Obligor represent its entire constitution for the purposes of section 257 of the Companies Act 2006 (the “Companies Act”);
that any borrowing restrictions or other financial restrictions or limitations contained in the English Obligor’s constitution (within the meaning of section 257 of the Companies Act) have been and will be duly observed and that the English Obligor is carrying on business in accordance with its Constitutional Documents;
that the Resolutions were duly passed in accordance with the requirements of the Constitutional Documents and the Companies Act;
the English Law Document is not subject to any escrow or similar arrangement;
that in entering into the English Law Document each Obligor did so in good faith and for the purpose of carrying on its business and at the time that the English Law Document was entered into:
there were reasonable grounds for the directors of each Obligor to believe that the transactions to which the English Law Document relates, and the execution and delivery by the relevant Obligor of the English Law Document and the exercise of its rights and the performance of its obligations thereunder, would materially benefit that Obligor and be likely to promote its success for the benefit of its members as a whole; and
no Obligor was unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986 and has not and will not become so unable to pay its debts;
that none of the Obligors has passed a voluntary winding-up resolution, that no petition has been presented to or order made by a court for the winding up or dissolution of any Obligor, that no application has been made to a court for an administration order in respect of any 

Exhibit B-1-2

Obligor and no administration order has been made by any court in relation to any Obligor, that no appointment of an administrator of any Obligor has been made out of court and no notice of intention to appoint an administrator has been given or filed with any court in respect of any Obligor, that no receiver, trustee, administrator, provisional liquidator, administrative receiver or similar officer has been appointed in relation to any Obligor or any of its assets or revenues and that no procedure or step analogous to any of the foregoing has been taken in relation to any Obligor in any jurisdiction other than England & Wales;
that the information disclosed in the Searches was correct and complete and that the Foreign Obligor has not registered a UK establishment pursuant to the Overseas Companies Regulations 2009 using any name other than its name as stated in the English Law Document. It should be noted, however, that the Searches may not reveal whether any of the matters referred to in paragraphs 4.8.2 and 4.9 above have occurred;
that all parties to the English Law Document (other than the English Obligor) had the capacity and power to enter into the English Law Document under all applicable laws, that the English Law Document was duly authorised by and duly executed and delivered by or on behalf of each of the parties to the English Law Document (other than the English Obligor) under all applicable laws and that the obligations of all parties to the English Law Document under all applicable laws (other than English law), and of all parties to the English Law Document (other than the Obligors) under English law, are legal, valid, binding and enforceable obligations;
that no provision should be made in the financial statements of the English Obligor for its contingent liability under any guarantee given by it in the English Law Document (or under any security interest granted by it in respect of that guarantee);
that under all applicable laws (other than English law) the choice of law made by the Obligors in the English Law Document as the governing law of the English Law Document and the choice of jurisdiction made by the Obligors in the English Law Document are valid and binding choices that will be upheld, recognised and enforced by the courts of any jurisdiction (other than England);
that none of the Reviewed Documents have been amended, modified or superseded other than by other Reviewed Documents;
that none of the parties are or will be seeking to achieve any purpose not apparent from the English Law Document which might render the English Law Document illegal, void or unenforceable and, in particular (but without limitation), that the English Law Document (or any related transaction or transactions contemplated by or in connection with the English Law Document) does not (whether alone or in conjunction with any others) constitute financial assistance for the purpose of sections 678 or 679 of the Companies Act;

Exhibit B-1-3

the lack of bad faith and the absence of fraud, coercion, duress or undue influence on the part of any party to the English Law Document and/or its directors, employees, agents and advisers;
that the express choice of law in the English Law Document was freely made in good faith by all the parties and not for the purpose of avoiding the mandatory laws of another jurisdiction, and there are no reasons for avoiding that choice on the grounds of public policy; and
that there are no provisions of the laws of any country or jurisdiction outside England which would have any implications for the opinions we express.
Our opinion is confined to, and given on the basis of, English law as applied by the English courts at the date of this opinion letter and we have made no investigation of the laws of any country or jurisdiction other than England. Furthermore we do not express any opinion on European Union law as it affects any jurisdiction other than England (and, for this purpose, we have assumed that all statutory instruments and/or regulations made in England in purported implementation of any directive have been duly made in accordance with that directive and are valid in all respects under English law). The opinions given in this opinion letter are strictly limited to the matters stated in paragraph 5 (Opinions) below and do not extend to and are not to be read as extending by implication to any other matters in connection with the English Law Document. We express no opinion as to matters of fact.
This opinion letter and all non-contractual obligations arising out of or in connection with it shall be governed by and construed in accordance with English law as at the date of this opinion letter.
Opinions
Based upon and subject to the foregoing and subject to the reservations, qualifications and observations set out in paragraph 6 (Qualifications) below and to any matters of fact not disclosed to us, we are of the opinion that:
the English Obligor is a private limited liability company duly incorporated and registered under the laws of England;
the English Obligor has the corporate power to enter into and to perform its obligations under the English Law Document and has taken all necessary corporate action to authorise the execution and delivery of, and the performance by it of its obligations under, the English Law Document;
the obligations of each Obligor under the English Law Document constitute the legal, valid, binding and enforceable obligations of that Obligor;

Exhibit B-1-4

the execution and delivery by the English Obligor of the English Law Document, and the performance by the English Obligor of its obligations under the English Law Document, will not:
contravene any provisions of the articles of association of the English Obligor; or
violate or contravene any law of England binding on the English Obligor which is applicable to companies generally;
no registration or filing is required in England, and no authorisations, approvals, consents, licences or exemptions are required from any governmental or regulatory authority in England, in connection with the execution and delivery by any Obligor of the English Law Document or the performance by it of any of its obligations under the English Law Document;
no ad valorem stamp, registration tax or similar documentary tax or charge is required to be paid in England in respect of the execution and delivery of the English Law Document;
the express choice by each Obligor of the laws of the jurisdiction specified in the English Law Document to govern the English Law Document (the “Chosen Laws”) will be recognised and upheld by an English court; and
the express submission of each Obligor, pursuant to the English Law Document, to the jurisdiction of the courts specified in the English Law Document and the express submission of the Foreign Obligor, pursuant to the English Law Document, to the jurisdiction of the English courts, will be recognised and upheld by an English court; and
the express choice by each Obligor of the Chosen Laws to govern any non-contractual obligations arising out of or in connection with the English Law Document will be recognised and upheld by an English court if the choice satisfies the requirements of Regulation (EC) No 864/2007 of the European Parliament and of the Council of 11 July 2007 on the law applicable to non-contractual obligations (“Rome II”).
Qualifications
The opinions expressed in this opinion letter are subject to the following reservations, qualifications and observations:
Enforceability of Claims
the term “enforceable” when used in paragraph 5.3 above means that the relevant obligations are of a type and form generally enforced by the English courts. It does not mean that those obligations will necessarily be enforced in all circumstances in accordance with their terms and conditions or in foreign jurisdictions or by or against third parties or that any particular remedy will be available. Nor does it mean that a party will, or will be able to, comply with or satisfy any judgment, order or award that may be entered or made against it. It also does not address the extent to which a court judgment or an expert 

Exhibit B-1-5

determination or an arbitral decision obtained outside England will be enforced in England. Such enforcement is in any event subject to, among other things, the qualifications set out below;
an order of specific performance and an injunction are each a discretionary remedy and accordingly an English court might refuse to make such an order or grant an injunction and/or instead make an award of damages if such a remedy is sought;
claims made against all or any of the Obligors may become barred by lapse of time or may be or become subject to defences of set-off or counterclaim;
the rights and obligations of the parties to the English Law Document may be held to have been frustrated by events happening after their execution;
to the extent that the English Law Document provides that any matter is expressly to be determined by future agreement or negotiation, the relevant provision may be unenforceable or void for uncertainty;
any question as to whether or not any provision of any agreement or instrument which is illegal, invalid, not binding, unenforceable or void may be severed from the other provisions thereof in order to save those provisions would be determined by an English court in its discretion;
a party to a contract may be able to avoid its obligations under that contract (and may have other remedies) where it has entered into that contract on the basis of a mistake or has been induced to enter into that contract by a misrepresentation;
General Principles and Insolvency
the binding nature and enforceability of the obligations of each Obligor under the English Law Document are subject to matters of public policy, rules of equity and all bankruptcy, insolvency, liquidation, administration, moratorium, arrangement, reorganisation and other laws of general application relating to or affecting the rights of creditors;
any guarantees or third party security given by any person in the English Law Document are subject to all applicable principles of English law which may operate to exonerate, discharge, reduce or extinguish the liabilities of guarantors notwithstanding the express terms of such guarantees or third party security;
English Proceedings
Where all the other elements relevant to the situation at the time of the choice of English law are located in another country, the fact that the parties have chosen English law will not prejudice the application of provisions of the law of that other country which cannot be derogated from by agreement. In addition, an English court may give effect to the overriding mandatory provisions of the laws of a country other than England where obligations arising out of the English Law Document have to be or have been performed, 

Exhibit B-1-6

in so far as those overriding mandatory provisions render the performance of the English Law Document unlawful;
the enforcement against any Obligor in England of the English Law Document will be subject to all laws, regulations and guidance governing the conduct of litigation in the English courts;
an English court has discretion, whenever it is necessary to prevent injustice, to stay or strike out proceedings in England. Subject to the provisions, where applicable, of the 1968 Brussels Convention (the “1968 Convention”), Council Regulation (EC) No. 1215/2012 of 12 December 2012 (the “Jurisdiction Regulation”) and the 2007 Lugano Convention (the “2007 Convention”) on, in each case, jurisdiction and the recognition and enforcement of judgments in civil and commercial matters, an English court may stay proceedings or decline jurisdiction where it is shown that the proceedings can be tried in a more convenient forum or if concurrent proceedings are pending or being brought elsewhere or where the merits of the issues in dispute have already been judicially determined or should have been raised in previous proceedings between the parties. In addition, where the provisions of the 1968 Convention, the Jurisdiction Regulation and/or the 2007 Convention apply, the English courts will be bound to stay proceedings or decline jurisdiction if they find that the courts of a contracting or member state have already been validly seised in respect of proceedings between the same parties and involving the same cause of action, save where there is a valid and binding agreement conferring exclusive jurisdiction on the English courts. Further, pursuant to the 1968 Convention, the Jurisdiction Regulation and/or, where applicable, the 2007 Convention, if a related action is pending in the courts of another contracting or member state, the English courts may, if they find that they are not the courts first seised, stay their own proceedings, save where there is a valid and binding agreement conferring exclusive jurisdiction on the English courts;
notwithstanding the express submission referred to in paragraph 5.8 above, where the English court is seised of jurisdiction as a result of the operation of the Jurisdiction Regulation, the English court may be able to stay proceedings in England in favour of the courts of a country or state that is not an EU member state only in circumstances where there are:
proceedings involving the same parties and the same cause of action in a non-member state and provided: (i) it is expected that the judgment of the non-member state will be capable of recognition and enforcement in England; and (ii) the English court is satisfied that a stay is necessary for the proper administration of justice; or
proceedings involving a related cause of action in a non-member state and provided: (i) it is expedient to hear and determine the related actions together to avoid the risk of irreconcilable judgments resulting from separate proceedings; (ii) it is expected that the judgment of the non-member state will be capable of recognition and 

Exhibit B-1-7

enforcement in England; and (ii) the English court is satisfied that a stay is necessary for the proper administration of justice.
we express no opinion on any provision in the English Law Document purporting to waive a forum non conveniens defence or other similar right;
we express no opinion as to whether any waiver by any party of its rights to immunity from legal proceedings in respect of its obligations under the English Law Document would be effective or enforceable;
Application of Foreign Law
under article 14 of Rome II, the parties may agree to submit non-contractual obligations arising out of or in connection with the English Law Document to the law of their choice. However, Rome II only permits the parties to make such an agreement if all of the parties are pursuing a commercial activity, the agreement is freely negotiated and the choice of law does not prejudice the rights of third parties. We have not ourselves investigated any of these matters and express no opinions on any of them;
where any obligation under the English Law Document is to be performed or observed, or is based upon a matter arising, in a country or jurisdiction outside England, such obligation may not be enforced under English law if it would be unlawful, unenforceable or contrary to public policy or exchange control regulations under the laws of that country or jurisdiction and an English court may take into account the law of the place of performance in relation to the manner of performance and the steps to be taken in the event of defective performance;
if a party to the English Law Document is controlled by or otherwise connected with a person (or is itself) resident in, incorporated in or constituted under the laws of a country which is the subject of United Nations, European Community or UK sanctions implemented or effective in the United Kingdom, or is otherwise the target of any such sanctions, then the obligations to that party under the English Law Document may be unenforceable or void;
Default Interest and Indemnities
any obligation to pay or to guarantee payment of interest on overdue amounts contained in the English Law Document may be held to be void or unenforceable. An English court will only give effect to such an obligation if it can be established that the rate of interest specified does not impose a detriment on the paying party out of all proportion to any legitimate interest of the receiving party in enforcing repayment of the amounts overdue and is therefore not a charge in the nature of a penalty. Should the court decide that the rate of interest amounts to a charge in the nature of a penalty, the obligation would be unenforceable and damages would only be recoverable according to normal common law rules. We can express no view on the question of whether any 

Exhibit B-1-8

relevant rate of interest specified in the English Law Document constitutes a charge in the nature of a penalty;
any undertakings or indemnities given by any Obligor in the English Law Document in relation to United Kingdom stamp duties may be void or unenforceable under section 117 of the Stamp Act 1891;
the effectiveness of certain provisions exculpating (or, in the case of an indemnity, having the effect of exculpating) a party from liability or a duty otherwise owed may be limited by law;
an English court may refuse to give effect to any indemnity for legal costs incurred by an unsuccessful litigant and may not award by way of costs all of the expenditure incurred by a successful litigant in proceedings brought before it;
we express no opinion as to whether an English court would give effect to a currency indemnity clause contained in the English Law Document. Whilst English courts may render judgments for a monetary amount in a foreign currency, the judgment may be converted into pounds sterling for the purposes of enforcement. There is also some possibility that an English court would hold that a judgment on the English Law Document would supersede the English Law Document so that any currency indemnity would not be held to survive judgment;
Discretions, Certifications and Amendments
where any party to the English Law Document is vested with a discretion or may determine a matter in its opinion, English law may require that such discretion is exercised reasonably or that such an opinion is based on reasonable grounds;
any provision of the English Law Document to the effect that any calculation, certification or determination will be final, conclusive and/or binding will not be effective if such calculation, certification or determination is fraudulent or has an unreasonable or arbitrary basis or is given without good faith or is manifestly inaccurate, and will not necessarily prevent judicial enquiry into the merits of any claim by an aggrieved party; and
we express no opinion on any provision in the English Law Document requiring written amendments or waivers in respect of the English Law Document insofar as it suggests that oral or other amendments or waivers could not be effectively agreed upon or granted by the parties. In addition, failure to exercise a right may operate as a waiver of that right notwithstanding any provision in the English Law Document to the contrary.
This opinion letter is given solely for the benefit of the person to whom it is addressed and solely in connection with the transactions contemplated by the Facility Agreement. This opinion letter may not be relied upon for any other purpose or by any other person. This opinion letter may not be transmitted or disclosed to any other person or be quoted or referred 

Exhibit B-1-9

to in any public document without our prior written consent, save that it may be disclosed without such consent to:
any person to whom disclosure is required to be made by applicable law or court order or pursuant to the generally published rules of any supervisory or regulatory body or in connection with any judicial proceedings;
any ratings agency and its professional advisers;
the officers, employees, auditors and professional advisers of the addressees and their affiliates; and
any person, not otherwise an addressee of this opinion letter, who becomes a Lender and/or sub-participant in accordance with the Facility Agreement or is a potential sub-participant, transferee or assignee of the Lender, and their professional advisers,
on the basis that (i) such disclosure is made solely to enable any such person to be informed that an opinion has been given and to be made aware of its terms but not for the purposes of reliance, (ii) we do not assume any duty or liability to any person to whom such disclosure is made and (iii) such person agrees not to further disclose this opinion letter or its contents to any other person, other than as permitted above, without our prior written consent.
This opinion letter is given by CMS Cameron McKenna Nabarro Olswang LLP which assumes liability, and is responsible, for it. No individual owes or shall owe any duty of care to any person for this opinion letter.
Yours faithfully

CMS Cameron McKenna Nabarro Olswang LLP

Exhibit B-1-10

Schedule 1 
Definitions
In this opinion letter, the following terms have the following meanings:
“Certificates”: means the certificates from the officers of the Obligors addressed to the Administrative Agent, delivered as a condition precedent to the Facility Agreement and dated 12 October 2018.
“English Law Document”: means the Facility Agreement.
“English Obligor”: means CSC Computer Sciences International Operations Limited, a private limited liability company registered in England & Wales with registered number 07073279.
“Foreign Obligor”: means DXC Technology Company, a Nevada corporation.
“Obligors”: means the English Obligor and the Foreign Obligor.
“Resolutions”: means the written resolutions of the board of directors of the English Obligor dated 12 October 2018 approving, among other things, the execution and performance of the English Law Document.

Exhibit B-1-11

Exhibit B-2 
[Form of Opinion of William L. Deckelman, Jr., Executive Vice President, General Counsel & Secretary for the Company]
William L. Deckelman, Jr. 
Executive Vice President, General Counsel & Secretary
October 12, 2018
Lloyds Bank plc 
10 Gresham Street 
London 
EC2V 7AE, as Administrative Agent 
and each of the Lenders listed on the signature pages of the Credit Agreement referred to below
		
	Re:
	Credit Agreement dated as of October 12, 2018, by and among CSC Computer Sciences International Operations Limited, DXC Technology Company, the Lenders from time to time party thereto, and Lloyds Bank plc, as Administrative Agent.

Ladies and Gentlemen:
I am the Executive Vice President, General Counsel and Secretary of DXC Technology Company (formerly known as Everett SpinCo, Inc.), a Nevada corporation (the “Corporation”). This opinion is being rendered to you in connection with the Credit Agreement dated as of October 12, 2018 (the “Credit Agreement”), by and among CSC Computer Sciences International Operations Limited, a company incorporated in England, the Corporation, the Lenders from time to time party thereto, and Lloyds Bank plc, as Administrative Agent (the “Agent”). Terms defined in the Credit Agreement and not otherwise defined herein are used herein as therein defined.
In rendering this opinion, I have examined originals or copies, certified or otherwise identified to my satisfaction as being true copies, of the following documents and instruments:
		
	(a)
	the Credit Agreement; and

		
	(e)
	resolutions of the Board of Directors of the Corporation in respect of the Credit Agreement and the transactions contemplated thereby, and a copy of the Articles of Incorporation and Bylaws of the Corporation in effect on the date hereof.

I have also reviewed such other documents, certificates or statements of public officials and such other persons, and have made such other investigation of fact and law, as I have deemed necessary for purposes of this opinion.

Exhibit B-2-1

With respect to questions of fact material to the opinions expressed below, I have, with your consent, relied upon certificates of public officials and officers of the Corporation, in each case without having independently verified the accuracy or completeness thereof.
Based upon the foregoing, I am of the opinion that:
The Corporation is a validly existing corporation in good standing under the laws of the State of Nevada, and has all requisite corporate power and authority to own and operate its properties and to conduct its business as presently conducted. The Corporation is duly qualified to do business as a foreign corporation in good standing in all jurisdictions which require such qualification, except to the extent that failure to so qualify would not have a material adverse effect on the Corporation.
No consent, approval or authorization of, and no registration, declaration or filing with, any administrative, governmental or other public authority of the United States of America or under the General Corporation Laws of the State of Nevada is required to be obtained or made by the Corporation for the execution, delivery and performance of the Credit Agreement by the Corporation, except such filings as may be required in the ordinary course to keep in full force and effect rights and franchises material to the business of the Corporation and in connection with the payment of taxes and except to the extent that the failure to obtain such consent, approval or authorization or to make such registration, declaration of filing would not have a material adverse effect on the Corporation.
The Corporation has all requisite power and authority to enter into the Credit Agreement and carry out the transactions contemplated by, and perform its obligations under, the Credit Agreement.
The execution, delivery and performance by the Corporation of the Credit Agreement have been duly authorized by all necessary corporate action on the part of the Corporation.
There is no charter, bylaw or capital stock provision of the Corporation and no provision of any indenture to which the Corporation is a party or under which it is obligated that would prohibit the execution, delivery and performance of any provision, condition, covenant or other term of the Credit Agreement.
The foregoing opinions are subject to the following assumptions, exceptions, qualifications and limitations:
In rendering the opinions above, I have assumed: (i) the due authorization, execution and delivery of each of the documents referred to in this opinion letter by all parties thereto (other than the Corporation) and that each such document constitutes a valid, binding and enforceable obligation of each party thereto (other than the Corporation), (ii) all of the parties to the documents referred to in this opinion letter are duly organized and validly existing and have the requisite power and authority (corporate, limited liability company, partnership or other) to execute, deliver and perform their obligations under such documents (except to the 

Exhibit B-2-2

extent set forth in my opinions above regarding valid existence and power and authority of the Corporation to execute, deliver and perform its obligations under the Credit Agreement), (iii) each certificate from governmental officials reviewed by me is accurate, complete and authentic, and all official public records are accurate and complete, (iv) the legal capacity of all natural persons, (v) the genuineness of all signatures, (vi) the authenticity and accuracy of all documents submitted to me as originals, (vii) the conformity to original documents of all documents submitted to me as copies, (viii) that no laws or judicial, administrative or other action of any governmental authority of any jurisdiction not expressly opined to herein would adversely affect the opinions set forth herein and (ix) the execution, delivery and performance of the Credit Agreement do not, except to the extent set forth in the opinions above, breach or violate (x) any order, writ, judgment, injunction, decree, determination or award of any governmental authority applicable to the Corporation or any of its property or (y) any provision of any indenture, agreement or instrument to which the Corporation is a party or by which the Corporation or any of its property is bound.
The opinion expressed in paragraph 2 above is limited to those laws and regulations that, in my experience, are customarily applicable to transactions of the type embodied by the Credit Agreement.
No opinion is expressed herein as to (i) the effect of any state or federal securities laws or regulations insofar as they are applicable to or otherwise affect any party to the Credit Agreement, the transactions contemplated by the Credit Agreement or the exercise of any rights or remedies of any party to the Credit Agreement, (ii) state and federal laws and regulations applicable to banks, insurance companies or other financial institutions or the business, activities or lending transactions of the Agent, the Lenders or any assignee or participant of any such Person that may relate to the Credit Agreement or the transactions contemplated thereby or (iii) the validity, binding effect or enforceability of the Credit Agreement.
I am admitted to the practice of law in the Commonwealth of Virginia and the State of Texas. I call to your attention that I am not admitted to the practice of law in the State of Nevada; however, I am generally familiar with the General Corporation Law of the State of Nevada and have made such inquiries as I consider necessary to render the opinions expressed herein.
This opinion is limited to the effect of the present state of United States federal law and the General Corporation Law of the State of Nevada. In rendering this opinion, I assume no obligation to revise or supplement this opinion should the present laws, or the interpretation thereof, be changed.

Exhibit B-2-3

This opinion is rendered to the Agent and the Initial Lenders as of the date hereof in connection with the Credit Agreement, and may not be relied upon by any other person without my prior written consent.
Very truly yours,

 
William L. Deckelman, Jr.

Exhibit B-2-4

EXHIBIT C TO THE  
CREDIT AGREEMENT

FORM OF NOTICE OF BORROWING

Lloyds Bank plc,  
as Administrative Agent for the Lenders party 
to the Credit Agreement referred to below
Lloyds Bank plc
150 Fountainbridge
Edinburgh
EH3 9PE 
Attention: Scott Christie
[DATE] 
Ladies and Gentlemen:
The undersigned, DXC Technology Company, a Nevada corporation, refers to the Credit Agreement dated as of October 12, 2018 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”, the terms defined therein being used herein as therein defined), among the undersigned, CSC Computer Sciences International Operations Limited (company number 7073279), a company incorporated in England (the “Borrower”), certain Lenders party thereto and Lloyds Bank plc, as Administrative Agent for the Lenders, and hereby gives you notice, irrevocably, pursuant to Section 2.02 of the Credit Agreement that the undersigned hereby requests a Borrowing under the Credit Agreement, and in that connection sets forth below the information relating to such Borrowing (the “Proposed Borrowing”) as required by Section 2.02(a) of the Credit Agreement:
(a)     The Funding Date of the Proposed Borrowing is ____________.
(b)     The Class of such Proposed Borrowing is ________________.
(c)     The aggregate amount of the Proposed Borrowing is [_______________].
[The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the Proposed Borrowing:
(i)     The representations and warranties of the Company contained in Article IV of the Credit Agreement (other than the representations set forth in the second sentence of Section 4.01(e) and clause (i) of Section 4.01(f)) are correct in all material respects (except those representations and warranties qualified by materiality, which shall be true and correct) 

Exhibit C-1

on and as of the date of the Proposed Borrowing, before and immediately after giving effect to such Proposed Borrowing and to the application of the proceeds therefrom, as though made on and as of such date, except to the extent that any such representation or warranty expressly relates only to an earlier date, in which case it was correct in all material respects (except any such representation or warranty qualified by materiality, which was true and correct) as of such earlier date; and
(ii)     No event has occurred and is continuing, or would result from such Proposed Borrowing or from the application of the proceeds therefrom, which constitutes an Event of Default or a Potential Event of Default.]

	
		
	Very truly yours,
DXC TECHNOLOGY COMPANY  

	By:
	 

	 
	Name:   

	 
	Title:   

Exhibit C-2ex_125503.htm

Exhibit 10.1

 

Execution Version

 

 

 

 

 

STOCK PURCHASE AGREEMENT

 

dated as of October 11, 2018

 

between

 

Great Western Insurance Company

 

and

 

US Alliance Life and Security Company

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

	
			Article I DEFINITIONS

				1
	 	 	 	 
	 	
			Section 1.01

				
			Certain Defined Terms

				1
	 	 	 	 
	
			Article II PURCHASE AND SALE

				7
	 	 
	 	
			Section 2.01

				
			Purchase and Sale of the Shares

				7
	 	
			Section 2.02

				
			Purchase Price

				7
	 	 
	
			Article III THE CLOSING

				7
	 	 
	 	
			Section 3.01

				
			Closing

				7
	 	
			Section 3.02

				
			Payments

				8
	 	
			Section 3.03

				
			Buyer’s Additional Closing Date Deliveries

				8
	 	
			Section 3.04

				
			Seller’s Additional Closing Date Deliveries

				8
	 	 
	
			Article IV REPRESENTATIONS AND WARRANTIES REGARDING SELLER

				8
	 	 
	 	
			Section 4.01

				
			Incorporation and Authority of Seller

				8
	 	
			Section 4.02

				
			No Conflict

				9
	 	
			Section 4.03

				
			Consents and Approvals

				9
	 	 
	
			Article V REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY

				9
	 	 
	 	
			Section 5.01

				
			Incorporation and Authority of the Company

				9
	 	
			Section 5.02

				
			Capital Structure of the Company; Ownership and Transfer of the Shares

				10
	 	
			Section 5.03

				
			Statutory Statements; Absence of Undisclosed Liabilities

				10
	 	
			Section 5.04

				
			Absence of Certain Changes

				11
	 	
			Section 5.05

				
			Absence of Litigation

				11
	 	
			Section 5.06

				
			Compliance with Laws

				11
	 	
			Section 5.07

				
			Governmental Licenses and Permits

				11
	 	
			Section 5.08

				
			Intellectual Property

				12
	 	
			Section 5.09

				
			Environmental Matters

				12
	 	
			Section 5.10

				
			Material Contracts

				12
	 	
			Section 5.11

				
			Affiliate Transactions

				13
	 	
			Section 5.12

				
			Insurance Issued or Assumed by the Company

				14
	 	
			Section 5.13

				
			Reinsurance

				14
	 	
			Section 5.14

				
			Distributors and Brokers; Third-Party Administrators; Employees

				14
	 	
			Section 5.15

				
			Investment Assets

				15
	 	
			Section 5.16

				
			Insurance

				15
	 	
			Section 5.17

				
			Property

				15
	 	
			Section 5.18

				
			Taxes

				15
	 	
			Section 5.19

				
			Insurance-Product-Related Tax Matters

				16
	 	
			Section 5.20

				
			Regulatory Filings

				17
	 	
			Section 5.21

				
			Seller Guarantee

				18
	 	
			Section 5.22

				
			NO OTHER REPRESENTATIONS OR WARRANTIES

				18

 

i

 

 

	
			Article VI REPRESENTATIONS AND WARRANTIES REGARDING BUYER

				18
	 	 
	 	
			Section 6.01

				
			Incorporation and Authority of Buyer

				18
	 	
			Section 6.02

				
			No Conflict

				19
	 	
			Section 6.03

				
			Consents and Approvals

				19
	 	
			Section 6.04

				
			Absence of Litigation

				19
	 	
			Section 6.05

				
			Securities Matters

				19
	 	
			Section 6.06

				
			Financial Ability

				19
	 	
			Section 6.07

				
			Investigation

				20
	 	
			Section 6.08

				
			Brokers; No Inducement or Reliance; Independent Assessment

				20
	 	
			Section 6.09

				
			Regulatory Matters

				21
	 	
			Section 6.10

				
			Financial Statements

				21
	 	 
	
			Article VII ACTIONS PRIOR TO THE CLOSING DATE

				21
	 	 
	 	
			Section 7.01

				
			Conduct of Business Prior to the Closing

				21
	 	
			Section 7.02

				
			Access to Information

				23
	 	
			Section 7.03

				
			Regulatory and Other Authorizations; Consents

				23
	 	
			Section 7.04

				
			Intercompany Obligations

				25
	 	
			Section 7.05

				
			Intercompany Arrangements

				25
	 	
			Section 7.06

				
			Supplements to Seller Disclosure Schedule

				25
	 	 
	
			Article VIII ADDITIONAL AGREEMENTS

				26
	 	 
	 	
			Section 8.01

				
			Access to Information

				26
	 	
			Section 8.02

				
			Books and Records

				26
	 	
			Section 8.03

				
			Confidentiality

				27
	 	
			Section 8.04

				
			Insurance

				28
	 	
			Section 8.05

				
			Trade Names and Trademarks

				28
	 	
			Section 8.06

				
			Guaranties

				30
	 	
			Section 8.07

				
			D&O Liabilities

				30
	 	
			Section 8.08

				
			Further Action

				31
	 	 
	
			Article IX RESERVED

				31
	 	 
	
			Article X TAX MATTERS

				31
	 	 
	 	
			Section 10.01

				
			Section 10.01 Liability for Taxes

				31
	 	
			Section 10.02

				
			Tax Returns

				33
	 	
			Section 10.03

				
			Audits

				34
	 	
			Section 10.04

				
			Other Tax Matters

				35
	 	 
	
			Article XI CONDITIONS TO CLOSING AND RELATED MATTERS

				36
	 	 
	 	
			Section 11.01

				
			Conditions to Obligations of Seller

				36
	 	
			Section 11.02

				
			Conditions to Obligations of Buyer

				36
	 	 
	
			Article XII TERMINATION AND WAIVER

				37
	 	 
	 	
			Section 12.01

				
			Termination

				37
	 	
			Section 12.02

				
			Notice of Termination

				37

 

ii

 

 

	 	
			Section 12.03

				
			Effect of Termination

				37
	 	
			Section 12.04

				
			Extension; Waiver

				38
	 	 
	
			Article XIII INDEMNIFICATION

				38
	 	 
	 	
			Section 13.01

				
			Indemnification by Seller

				38
	 	
			Section 13.02

				
			Indemnification by Buyer

				39
	 	
			Section 13.03

				
			Notification of Claims

				40
	 	
			Section 13.04

				
			Payment

				41
	 	
			Section 13.05

				
			No Duplication; Exclusive Remedies

				41
	 	
			Section 13.06

				
			Additional Indemnification Provisions

				42
	 	
			Section 13.07

				
			Reserves

				43
	 	 
	
			Article XIV GENERAL PROVISIONS

				43
	 	 
	 	
			Section 14.01

				
			Survival

				43
	 	
			Section 14.02

				
			Expenses

				44
	 	
			Section 14.03

				
			Notices

				44
	 	
			Section 14.04

				
			Public Announcements

				45
	 	
			Section 14.05

				
			Severability

				45
	 	
			Section 14.06

				
			Entire Agreement

				45
	 	
			Section 14.07

				
			Assignment

				45
	 	
			Section 14.08

				
			No Third-Party Beneficiaries

				45
	 	
			Section 14.09

				
			Amendment

				45
	 	
			Section 14.10

				
			Schedules

				46
	 	
			Section 14.11

				
			Submission to Jurisdiction

				46
	 	
			Section 14.12

				
			Governing Law

				46
	 	
			Section 14.13

				
			Waiver of Jury Trial

				46
	 	
			Section 14.14

				
			Specific Performance

				47
	 	
			Section 14.15

				
			Waivers

				47
	 	
			Section 14.16

				
			Rules of Construction

				47
	 	
			Section 14.17

				
			Counterparts

				47

 

iii

 

 

SCHEDULES

 

	
			Schedule 1.01(b)

				
			Seller Knowledge Persons

			
	
			Schedule 1.01(c)

				
			Buyer Knowledge Persons

			
	
			Schedule 3.04(c)

				
			Resignations

			
	
			Schedule 7.01(a)

				
			Seller’s Conduct of Business

			
	
			Schedule 7.03(d)

				
			Third-Party Consents

			
	
			Schedule 7.04

				
			Intercompany Obligations

			
	
			Schedule 7.05

				
			Intercompany Arrangements

			
	
			Schedule 11.01(b)

				
			Seller Governmental Approvals

			
	
			Schedule 11.02(b)

				
			Buyer Governmental Approvals

			

 

iv

 

 

This STOCK PURCHASE AGREEMENT (including all schedules, exhibits and amendments hereto, this “Agreement”), dated as of October 11, 2018, is made by and between Great Western Insurance Company, a Utah corporation (“Seller”) and US Alliance Life and Security Company, a Kansas corporation (“Buyer”).

 

PRELIMINARY STATEMENTS

 

A.     Seller owns all of the issued and outstanding Capital Stock (the “Shares”) of Great Western Life Insurance Company, a Montana corporation (the “Company”); and

 

B.     Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, the Shares upon the terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties to this Agreement agree as follows:

 

Article I

DEFINITIONS

 

Section 1.01     Certain Defined Terms. Capitalized terms used in this Agreement have the meanings specified or referred to in this Section 1.01.

 

“Accounts Date” means June 30, 2018.

 

“Action” means any claim, action, suit, litigation, arbitration or proceeding by or before any Governmental Authority or arbitrator or arbitration panel or similar Person or body.

 

“Affiliate” means, with respect to any specified Person, any other Person that, at the time of determination, directly or indirectly through one or more intermediaries, Controls, is Controlled by or is under common Control with such specified Person.

 

“After-Tax Basis” means that, in determining the amount of the payment necessary to indemnify and hold harmless any party against Losses, the amount of such Losses shall be determined net of any Tax benefit derived (or reasonably expected to be derived) by the Indemnified Party (or any Affiliate thereof) as the result of sustaining or paying such Losses (including as the result of facts or circumstances due to which the Indemnified Party sustained or paid such Losses). Such Tax benefits shall be computed assuming that the Indemnified Party (or such Affiliate) is subject to taxation at an invariant income tax rate equal to twenty-seven and three-quarters percent (27.75%), and that any such Tax benefits are fully utilized in the Taxable period during which such Losses are sustained or paid.

 

“Agreement” shall have the meaning set forth in the preamble hereto.

 

“Business” means the business of issuing, underwriting, selling, marketing and administering (i) income and deferred annuity contracts, (ii) individual life insurance policies and (iii) disability insurance contracts, in each case, as conducted by the Company as of the Accounts Date.

 

 

 

 

“Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in the City of New York, New York are required or authorized by Law to be closed.

 

“Buyer” shall have the meaning set forth in the preamble hereto.

 

“Buyer Disclosure Schedule” means the disclosure schedule dated as of the date hereof delivered by Buyer to Seller in connection with the execution and delivery of this Agreement.

 

“Buyer Financial Statements” shall have the meaning set forth in Section 6.10.

 

“Buyer Indemnified Parties” shall have the meaning set forth in Section 13.01(a).

 

“Buyer Liens” means any Liens arising as a result of any agreement of, or any Governmental Order binding on, or any condition applicable to, or otherwise resulting from any facts or circumstances relating to, Buyer or its designated assignee(s) hereunder, but not Seller.

 

“Buyer Material Adverse Effect” means a material impairment or delay of the ability of any of Buyer or the Buyer Parties to perform their material obligations under this Agreement taken as a whole, including consummation of the transactions contemplated hereby or thereby.

 

“Capital Stock” means any capital stock of, or other type of equity ownership interest in, as applicable, a Person.

 

“Closing” shall have the meaning set forth in Section 3.01.

 

“Closing Date” shall have the meaning set forth in Section 3.01.

 

“Code” means the United States Internal Revenue Code of 1986.

 

“Company” shall have the meaning set forth in the preliminary statements hereto.

 

“Company Material Adverse Effect” means (a) a material adverse effect on the financial condition and results of operations of the Company, taken as a whole; provided, that none of the following (or the results thereof) shall constitute or be deemed to contribute to a Company Material Adverse Effect, and otherwise shall not be taken into account in determining whether a Company Material Adverse Effect has occurred or would be reasonably likely to occur: any adverse fact, circumstance, change or effect arising out of, resulting from or attributable to (i) changes in the United States or global economy or capital or financial markets, including changes in interest or exchange rates or a downturn in equity markets, (ii) political conditions generally of the United States and any natural disasters, pandemics, hostilities, acts of war, sabotage, terrorism or military actions, (iii) conditions generally affecting the industries in which the Company operates, (iv) the announcement of this Agreement and the transactions contemplated hereby and the identity of Buyer (including (A) effects related to compliance with the covenants contained herein or the failure to take any action as a result of any restrictions or prohibitions set forth herein, and (B) any adverse effect caused by (I) shortfalls or declines in revenue, margins or profitability, (II) loss of, or disruption in, any customer, supplier and/or vendor relationships, or (III) loss of personnel), (v) any changes or prospective changes in Law, SAP or the enforcement or interpretation thereof, (vi) any action taken by Buyer or its Affiliates with respect to the transactions contemplated hereby, (vii) the credit, financial strength or other ratings (other than the facts underlying any such ratings) of Seller or any of its Affiliates, including the Company, (viii) the value of any of the Investment Assets of the Company, (ix) any failure by the Company to achieve any earnings, premiums written, or other financial projections or forecasts (other than facts underlying such failure), (x) any matter set forth in the Seller Disclosure Schedule or reflected in any of the Statutory Statements or (xi) any effect that is cured by Seller prior to the Closing; provided, that, notwithstanding the foregoing, with respect to clauses (i), (ii), (iii) and (v), such fact, circumstance, change or effect shall be taken into account in determining whether a Company Material Adverse Effect has occurred or would be reasonably likely to occur solely to the extent such fact, circumstance, change or effect is disproportionately adverse with respect to the Company as compared to life insurance companies operating in the United States that issued insurance policies and annuity contracts with similar features and risks as the Insurance Contracts and which were issued during the same period in which such Insurance Contracts were issued or (b) a material impairment or delay of the ability of any of Seller or the Seller Parties to perform their material obligations under this Agreement and the other Transaction Agreements, taken as a whole, including consummation of the transactions contemplated hereby or thereby.

 

2

 

 

“Confidentiality Agreement” shall have the meaning set forth in Section 8.03(a).

 

“Control” means, with respect to any Person, the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. The terms “Controlled,” “Controlled by,” “under common Control with” and “Controlling” shall have correlative meanings.

 

“Effective Time” means 11:59:59 p.m., Central time, on the Closing Date.

 

“Eligible Insurance Proceeds” shall have the meaning set forth in Section 13.06(e).

 

“Environmental Law” means any Law relating to pollution or protection of the environment, including the use, handling, transportation, treatment, storage, disposal, release or discharge of Hazardous Materials.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Governmental Approval” means any consent, approval, license, permit, order, qualification, authorization of, or registration or other action by, or any filing with or notification to, any Governmental Authority.

 

“Governmental Authority” means any United States or non-United States federal, state or local or any supra-national, political subdivision, governmental, regulatory or administrative authority, instrumentality, agency, body or commission, self-regulatory organization or any court, tribunal, or judicial or arbitral body.

 

“Governmental Order” means any binding and enforceable order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Authority.

 

3

 

 

“Hazardous Materials” means any chemical, material or substance defined or regulated under any Environmental Law.

 

“Indemnified Party” shall have the meaning set forth in Section 13.03(a).

 

“Indemnifying Party” shall have the meaning set forth in Section 13.03(a).

 

“Insurance Contracts” means all insurance or annuity policies and contracts, together with all binders, slips, certificates, endorsements and riders thereto, issued, assumed, novated, or otherwise entered into by the Company prior to the Closing.

 

“Intellectual Property” means: (a) patents, patent applications, provisional patent applications (including any and all divisions, continuations, continuations-in-part and reissues thereof) (“Patents”), (b) trademarks, trade names, trade dress, logos, service marks and domain names (including registrations and applications therefor) and any goodwill associated therewith, any and all common Law rights therein, and registrations and applications for registration thereof, and all reissues, extensions and renewals of any of the foregoing (“Trademarks”), (c) copyrightable works and copyrights, whether or not registered, and pending applications to register the same (“Copyrights”) and (d) trade secrets, arising under the applicable Laws of the United States.

 

“Intercompany Agreements” shall have the meaning set forth in Section 5.11.

 

“Investment Assets” shall have the meaning set forth in Section 5.15.

 

“IRS” means the United States Internal Revenue Service.

 

“Knowledge” means: (a) in the case of Seller, the actual knowledge, after reasonable inquiry, of those Persons listed in Schedule 1.01(b) and (b) in the case of Buyer, the actual knowledge, after reasonable inquiry, of those Persons listed in Schedule 1.01(c).

 

“Law” means any United States or non-United States federal, state, local statute, law, ordinance, regulation, code, Governmental Order or other requirement or rule of law.

 

“Liabilities” means any and all debts, liabilities, commitments or obligations, whether direct or indirect, accrued or fixed, known or unknown, absolute or contingent, matured or unmatured or determined or determinable, whether arising in the past, present or future.

 

“Lien” means any mortgage, deed of trust, pledge, hypothecation, security interest, or other similar encumbrance or lien.

 

“Losses” means all actual, but not potential or contingent, losses, damages, costs and expenses (including reasonable attorneys’ fees), but excluding any expenses incurred by a party in enforcing any rights against the other party hereto under this Agreement.

 

“Material Contract” has the meaning set forth in Section 5.10(a).

 

4

 

 

“Montana Insurance Department” means the Insurance Department of the Office of the Montana State Auditor.

 

“Outside Date” shall have the meaning set forth in Section 12.01(b).

 

“Owned Intellectual Property” shall have the meaning set forth in Section 5.08(a).

 

“Permits” shall have the meaning set forth in Section 5.07(a).

 

“Permitted Liens” means each of the following: (a) Liens that secure debt that is reflected on the Statutory Statements, (b) Liens for Taxes, assessments or other governmental charges or levies that are not yet due or payable or that are being contested in good faith by appropriate proceedings, (c) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen, repairmen and other Liens imposed by Law for amounts not yet due, (d) Liens incurred or deposits made to a Governmental Authority in connection with a governmental authorization, registration, filing, license, permit or approval, (e) Liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance or other types of social security, (f) defects of title, easements, rights of way, covenants, restrictions and other similar Liens not materially interfering with the ordinary conduct of business, (g) Liens incurred in the ordinary course of business securing obligations or Liabilities that are not individually or in the aggregate material to the relevant asset or property, respectively, (h) zoning, building and other generally applicable land use restrictions, (i) Liens that have been placed by a third party on the fee title of the real property constituting real property over which the Company has easement rights, (j) Buyer Liens, (k) limitations on the rights of the Company under any Material Contract that are expressly set forth in such contract, (l) Liens incurred in the ordinary course of business since the date of the most recent Statutory Statements and (m) Liens in respect of broker liens created in connection with securities lending transactions and repurchase agreements.

 

“Person” means any natural person, general or limited partnership, corporation, limited liability company, limited liability partnership, firm, association or organization or other legal entity.

 

“Purchase Price” has the meaning set forth in Section 2.02.

 

“Reinsurance Agreement” shall have the meaning set forth in Section 5.13.

 

“Representative” of a Person means the directors, officers, employees, advisors, agents, stockholders, consultants, independent accountants, investment bankers, counsel or other representatives of such Person and of such Person’s Affiliates.

 

“Reserves” means the statutory policy reserves with respect to the Insurance Contracts.

 

“SAP” means the statutory accounting practices prescribed or permitted by the Montana Insurance Department as in effect at the relevant time.

 

“SEC” means the United States Securities and Exchange Commission.

 

5

 

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Seller” shall have the meaning set forth in the preamble hereto.

 

“Seller Disclosure Schedule” means the disclosure schedule dated as of the date hereof delivered by Seller to Buyer in connection with the execution and delivery of this Agreement, as supplemented pursuant to Section 7.06.

 

“Seller Guaranties” shall have the meaning set forth in Section 8.06.

 

“Seller Indemnified Parties” shall have the meaning set forth in Section 13.02(a).

 

“Seller Names and Marks” shall have the meaning set forth in Section 8.05(a).

 

“Seller’s Group” shall mean any group of companies that file Tax Returns and computes income for Tax purposes on a combined, consolidated or unitary basis that includes Seller.

 

“Shares” shall have the meaning set forth in the preliminary statements hereto.

 

“Software” means all computer software, including assemblers, applets, compilers, source code, object code, binary libraries, development tools, design tools and user interfaces, in any form or format, however fixed, and all associated documentation; provided, however, that “Software” does not include software that is available generally through retail stores, distribution networks or is otherwise subject to “shrink-wrap” or “click-through” license agreements, including any software pre-installed in the ordinary course of business as a standard part of purchased hardware.

 

“Statutory Statements” shall have the meaning set forth in Section 5.03(b).

 

“Straddle Period” has the meaning set forth in Section 10.01(c).

 

“Subsidiary” of any Person means any corporation, general or limited partnership, joint venture, limited liability company, limited liability partnership or other Person that is a legal entity, trust or estate of which (or in which) at the time of determination (a) the issued and outstanding Capital Stock having ordinary voting power to elect a majority of the board of directors (or a majority of another body performing similar functions) of such corporation or other Person (irrespective of whether at the time Capital Stock of any other class or classes of such corporation or other Person shall or might have voting power upon the occurrence of any contingency), (b) more than fifty percent (50%) of the interest in the capital or profits of such partnership, joint venture or limited liability company or (c) more than fifty percent (50%) of the beneficial interest in such trust or estate, is directly or indirectly owned by such Person.

 

“Tax” or “Taxes” means all income, premium, excise, gross receipts, ad valorem, sales, use, employment, franchise, profits, gains, property, transfer, payroll, stamp taxes or other taxes, (whether payable directly or by withholding) imposed by any Tax Authority, together with any interest and any penalties thereon or additional amounts with respect thereto; provided, that any guarantee fund assessment or escheatment obligation shall not be treated as a Tax.

 

6

 

 

“Tax Authority” means any Governmental Authority having jurisdiction over the assessment, determination, collection or imposition of any Tax.

 

“Tax Returns” means all returns, reports and claims for refunds (including elections, declarations, disclosures, schedules, estimates and information returns) required to be supplied to a Tax Authority relating to Taxes and, in each case, any amendments thereto.

 

“Third-Party Claim” shall have the meaning set forth in Section 13.03(a).

 

“Third-Party Consent” means any approval, authorization, consent, license or permission of, or waiver or other action by, or notification to, any non-affiliated third party (other than a Governmental Authority).

 

“Trademarks” shall have the meaning set forth in the definition of “Intellectual Property.”

 

“Transfer Taxes” means any and all transfer Taxes (excluding Taxes measured in whole or in part by net income), including sales, use, excise, gross receipts, registration, real estate, stamp, documentary, notarial, filing, recording, permit, license, authorization and similar Taxes.

 

“TPA” means American Memorial Life Insurance Company to the extent it is performing services pursuant to that certain Agreement for Services by and between the Company and American Memorial Life Insurance Company, dated November 2, 1998, as amended (the “TPA Agreement”).

 

“2018 Tax Estimate” shall have the meaning set forth in the Section 10.01(a).

 

Article II

PURCHASE AND SALE

 

Section 2.01     Purchase and Sale of the Shares. On the terms and subject to the conditions set forth in this Agreement, at the Closing, Seller shall sell, convey, assign, transfer and deliver to Buyer, free and clear of all Liens other than Buyer Liens, and Buyer shall purchase, acquire and accept from Seller, all of Seller’s right, title and interest in and to the Shares.

 

Section 2.02     Purchase Price. The purchase price payable by Buyer to Seller for the Shares shall be an amount equal to five hundred thousand dollars ($500,000) (the “Purchase Price”).

 

Article III

THE CLOSING

 

Section 3.01     Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at such other place as Seller and Buyer may agree (including by electronic exchanges of documents), on the last Business Day of Seller’s fiscal month immediately following the satisfaction or waiver of each of the conditions set forth in Section 11.01 and Section 11.02 (other than conditions that, by their terms, cannot be satisfied until Closing, but subject to the satisfaction or waiver of those conditions as of the Closing). The date on which the Closing takes place shall be the “Closing Date”, and the Closing shall be effective as of the Effective Time.

 

7

 

 

Section 3.02     Payments. At the Closing, Buyer shall pay to Seller an amount equal to the Purchase Price, without withholding or deduction, by wire transfer of immediately available funds to an account designated by Seller at least two (2) Business Days prior to the Closing Date.

 

Section 3.03     Buyer’s Additional Closing Date Deliveries. At the Closing, Buyer shall deliver, or cause to be delivered, to Seller:

 

(a)     the certificate referred to in Section 11.01(a)(iv) and

 

(b)     such other agreements, documents, instruments or certificates as may be reasonably required to effectuate the transactions contemplated by this Agreement.

 

Section 3.04     Seller’s Additional Closing Date Deliveries. At the Closing, Seller shall deliver, or cause to be delivered, to Buyer:

 

(a)     one or more stock certificates evidencing the Shares;

 

(b)     the certificate referred to in Section 11.02(a)(iv);

 

(c)     written resignations of each of the directors and executive officers of the Company set forth on Schedule 3.04(c), effective as of the Effective Time; and

 

(d)     such other agreements, documents, instruments or certificates as may be reasonably required to effectuate the transactions contemplated by this Agreement.

 

Article IV

REPRESENTATIONS AND WARRANTIES REGARDING SELLER

 

Except as set forth in the correspondingly identified subsection of the Seller Disclosure Schedule, Seller hereby represents and warrants to Buyer as follows:

 

Section 4.01     Incorporation and Authority of Seller.

 

(a)     Seller is a corporation duly incorporated, validly existing and in good standing under the Laws of the State of Utah.

 

(b)     Seller has all requisite corporate power to enter into, consummate the transactions contemplated by, and carry out its obligations under this Agreement. The execution and delivery by Seller, and the consummation by Seller of the transactions contemplated by, and the performance by Seller of its obligations under, this Agreement have been duly authorized by all requisite corporate action on the part of Seller. This Agreement has been, and upon execution and delivery executed and delivered by Seller, and this Agreement constitutes the legal, valid and binding obligation of Seller, enforceable against it in accordance with its terms, subject to the effect of any applicable bankruptcy, reorganization, insolvency, moratorium, rehabilitation, liquidation, fraudulent conveyance or similar Laws relating to or affecting creditors’ rights generally and subject, as to enforceability, to the effect of general equitable principles (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

8

 

 

Section 4.02     No Conflict. Provided that all consents, approvals, authorizations and other actions described in Section 4.03 have been obtained or taken, except as may result from any facts or circumstances solely relating to Buyer or its Affiliates (as opposed to any other third party), the execution, delivery and performance by Seller, and the consummation by Seller of the transactions contemplated by this Agreement do not and will not (a) violate or conflict with the organizational documents of Seller or the Company, (b) violate or conflict with any Law or other Governmental Order applicable to Seller or the Company or by which any of them or any of their respective properties or assets is bound or subject or (c) result in any breach of, or constitute a default (or event which, with the giving of notice or lapse of time, or both, would become a default) under, or give to any Person any rights of termination, acceleration or cancellation of, or result in the creation of any Lien (other than a Permitted Lien) on any of the assets or properties of Seller or the Company pursuant to, any Material Contract, other than, in the case of clauses (b) and (c), any such conflicts, violations, breaches, defaults, rights or Liens that, individually or in the aggregate, do not have, and would not reasonably be expected to have, a material impairment or delay of the ability of any of Seller or the Seller Parties to perform their material obligations under this Agreement, including consummation of the transactions contemplated hereby.

 

Section 4.03     Consents and Approvals. Except as may result from any facts or circumstances solely relating to Buyer or its Affiliates (as opposed to any other third party), the execution and delivery by Seller, this Agreement and the performance by Seller, and the consummation by Seller of the transactions contemplated by, this Agreements will not, require any Governmental Approval to be obtained or made by Seller prior to the Closing, the failure to obtain or make any or all of which would reasonably be expected to materially impair or delay the ability of Seller to perform their material obligations under this Agreement including consummation of the transactions contemplated hereby.

 

Article V

REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY

 

Except as set forth in the correspondingly identified subsection of the Seller Disclosure Schedule, Seller hereby represents and warrants to Buyer as follows:

 

Section 5.01     Incorporation and Authority of the Company.

 

(a)     The Company (i) is a corporation duly incorporated, validly existing and in good standing under the Laws of the State of Montana, and (ii) has the requisite corporate power and authority to operate the Business, except where the failures to be so incorporated or organized, in good standing or qualified, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect.

 

(b)     Seller has made available to Buyer copies of the organizational documents of the Company, as amended and in effect as of the date hereof.

 

9

 

 

Section 5.02     Capital Structure of the Company; Ownership and Transfer of the Shares.

 

(a)     Section 5.02(a) of the Seller Disclosure Schedule sets forth (i) the authorized Capital Stock of the Company and (ii) the number of shares of each class or series of Capital Stock of the Company that are issued and outstanding, together with the registered holder thereof. All the outstanding shares of Capital Stock of the Company have been duly authorized and validly issued, are fully paid and nonassessable and were not issued in violation of any preemptive or subscription rights. There are no options, calls, warrants or convertible or exchangeable securities, or conversion, preemptive, subscription or other rights, or agreements, arrangements or commitments, in any such case, obligating or which may obligate the Company to issue, sell, purchase, return or redeem any of its Capital Stock or securities convertible into or exchangeable for any of its Capital Stock, and there are no shares of Capital Stock of the Company reserved for issuance for any purpose. There are no capital appreciation rights, phantom stock plans, securities with participation rights or features, or similar obligations and commitments of the Company.

 

(b)     Seller owns all of the outstanding Capital Stock of the Company, free and clear of all Liens, other than any Buyer Liens arising as a result of this Agreement.

 

(c)     Except for this Agreement, there are no voting trusts, stockholder agreements, proxies or other rights or agreements in effect with respect to the voting, transfer or dividend rights of the Capital Stock of the Company.

 

(d)     Except for Investment Assets acquired in the ordinary course of business consistent with past practice, the Company has no Subsidiaries.

 

Section 5.03     Statutory Statements; Absence of Undisclosed Liabilities.

 

(a)     Each of the Statutory Statements has been prepared in accordance with SAP (subject to the omission of notes and normal year-end adjustments in the case of the unaudited statements) and in conformity with the practices consistently applied by the Company and presents fairly, in all material respects, the financial position and results of operations of the Company as at the respective dates and for the respective periods indicated, in accordance with SAP.

 

(b)     Seller has made available to Buyer copies of the following statutory statements, in each case together with the exhibits, schedules and notes thereto (collectively, the “Statutory Statements:” (i) the annual statements of the Company as of December 31, 2017, as filed with Montana Insurance Department and (ii) the quarterly statement of the Company as of and for the quarterly period ended June 30, 2018, as filed with the Montana Insurance Department. The Statutory Statements have been prepared in all material respects in accordance with SAP applied consistently throughout the periods involved, and present fairly, in all material respects, the statutory financial position and results of operations of the Company as of their respective dates and for the respective periods covered thereby.

 

(c)     Except (i) as set forth in the Statutory Statements, (ii) for Liabilities and obligations incurred in the ordinary course of business since the Accounts Date and (iii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect, there are no Liabilities or obligations of the Company of any nature (whether accrued, absolute, contingent or otherwise) of a type that would be required to be reflected on a balance sheet prepared in accordance with SAP.

 

10

 

 

Section 5.04     Absence of Certain Changes. Except as contemplated by this Agreement, from the Accounts Date to the date of this Agreement, the Company has conducted the Business in the ordinary course and there has not occurred any event or events that, individually or in the aggregate, have had, or would reasonably be expected to have, a Company Material Adverse Effect.

 

Section 5.05     Absence of Litigation.

 

(a)     As of the date hereof, there are no Actions (other than claims under insurance or annuity policies and contracts, or any binders, slips, certificates, endorsements or riders thereto, within applicable policy limits, or Actions with respect to which Seller or the Company have not yet been served with process) pending or, to the Knowledge of Seller, threatened in writing against the Company.

 

(b)     There are no Actions pending or, to the Knowledge of Seller, threatened against Seller or the Company that question the validity of, or seek injunctive relief with respect to, this Agreement or the right of Seller or the Company to enter into this Agreement.

 

Section 5.06     Compliance with Laws.

 

(a)     Since January 1, 2016, the Company has not been in violation of any Laws or Governmental Orders applicable to it or its assets, properties or businesses, except for violations that, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect.

 

(b)     The Company is not a party to, or bound by, any material Governmental Order applicable to it or its assets, properties or businesses.

 

Section 5.07     Governmental Licenses and Permits.

 

(a)     The Company owns, holds or possesses all material governmental qualifications, registrations, licenses, permits or authorizations that are necessary for it to conduct its Business and to own or use its assets and properties, as such Business, assets and properties are conducted, owned and used on the date hereof (collectively, the “Permits”).

 

(b)     (i) All Permits are valid and in full force and effect, (ii) the Company is not in default or violation, in any material respect, of any of the Permits, and (iii) the Company is not the subject of any pending or, to the Knowledge of Seller, threatened Action seeking the revocation, suspension, termination, modification or impairment of any Permit. Subject to obtaining the consents set forth in Section 4.03 of the Seller Disclosure Schedule, none of the Permits will be subject to revocation, suspension, withdrawal or termination as a result of the consummation of the transactions contemplated hereby.

 

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Section 5.08     Intellectual Property.

 

(a)     Section 5.08(a) of the Seller Disclosure Schedule contains a true and correct list of all Patents, registered Trademarks and registered Copyrights that are owned by the Company (the “Owned Intellectual Property”).

 

(b)     To the Knowledge of Seller: (i) the operation of the Business as conducted on the date of this Agreement does not infringe or violate any Intellectual Property of any non-affiliated third party, (ii) no Person is engaging in any activity that infringes upon the Owned Intellectual Property and (iii) there is no pending or threatened Action before any Governmental Authority alleging that the operation of the Business as currently conducted infringes or violates the Intellectual Property of any non-affiliated third party or challenging the ownership, validity or enforceability of the Owned Intellectual Property, except in the case of clauses (i) and (ii) above, as has not had, and is not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

 

(c)     To the Knowledge of Seller, the Company owns or is licensed to use or otherwise possess legally enforceable rights to use all Owned Intellectual Property.

 

Section 5.09     Environmental Matters. Since January 1, 2016, the Company has not received a written notice, request for information, claim or demand from any Governmental Authority or third party alleging liability in connection with the violation of any Environmental Law that has not been cured or otherwise resolved to the satisfaction of such Governmental Authority or third party, as the case may be, there are no material judicial or administrative proceedings pending or, to the Knowledge of Seller, threatened against the Company arising under or relating to an Environmental Law, and since January 1, 2016 to the date hereof, the Company is and has been in compliance in all material respects with any applicable Environmental Laws.

 

Section 5.10     Material Contracts.

 

(a)     Section 5.10(a) of the Seller Disclosure Schedule lists each written contract, agreement, instrument or other legally binding and enforceable commitment (each, a “Material Contract”) in force as of the date hereof (other than Insurance Contracts, Reinsurance Agreements, and any contracts, agreements, instruments or commitments that relate to the acquisition, disposition or custody of Investment Assets) to which the Company is a party, in each case, that:

 

(i)     involved aggregate payments by the Company in excess of $100,000 during the twelve (12)-month period ended December 31, 2016, or the delivery by the Company of goods or services with a fair market value in excess of $100,000 during the twelve (12)-month period ended December 31, 2016;

 

(ii)     involved receipt of payments by the Company in excess of, or any property with a fair market value in excess of, $100,000 during the twelve (12)-month period ended December 31, 2016;

 

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(iii)     has a non-affiliated Person license (as licensor or licensee) material Intellectual Property to or from the Company that is material to the conduct of the Business as conducted as of the date hereof, other than nonexclusive licenses of Intellectual Property granted in the ordinary course of business such as to or from customers, vendors, suppliers or distributors;

 

(iv)     contains covenants limiting the ability of the Company in any material respect (taken as a whole) to engage in any line of business or to compete with any Person, in each case, except for contracts and agreements that limit the ability of the Company to solicit the employment of, or hire individuals employed by, other Persons;

 

(v)     is a mortgage, indenture, loan or credit agreement, security agreement or other agreement or instrument relating to the borrowing of money or extension of credit or the direct or indirect guarantee of any obligation for borrowed money of any Person or any other Liability in respect of indebtedness for borrowed money of any Person, in each case, involving Liabilities in excess of $100,000;

 

(vi)     any material limited liability company, partnership, joint venture or other similar contract relating to the formation, creation, operation, management or control of any partnership or joint venture in respect of the Business;

 

(vii)     is a material third-party administration or other insurance policy administration agreement relating to the Insurance Contracts; or

 

(viii)     is an investment management agreement with any Affiliate of the Company.

 

(b)     Copies of all Material Contracts have been provided to Buyer. Each Material Contract is a legal, valid and binding obligation of the Company, Seller or its Affiliates party thereto, and, to the Knowledge of Seller, each other party to such Material Contract, and is enforceable against the Company, Seller or its Affiliates party thereto, and, to the Knowledge of Seller, each such other party, in accordance with its terms (except in each case as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, rehabilitation, liquidation, fraudulent conveyance or other similar Laws now or hereafter in effect relating to or affecting creditors’ rights generally, and subject to the limitations imposed by general equitable principles (whether or not such enforceability is considered in a proceeding at Law or in equity)), and none of the Company, Seller or any of its Affiliates nor, to the Knowledge of Seller, any other party to a Material Contract, is in material default or material breach or has failed to perform any material obligation under a Material Contract, and, to the Knowledge of Seller, there does not exist any event, condition or omission that would constitute such a material breach or material default (whether by lapse of time or notice or both).

 

Section 5.11     Affiliate Transactions. Section 5.11 of the Seller Disclosure Schedule sets forth a true and correct list, as of the date hereof, of all material contracts, agreements, leases, licenses and other instruments (whether or not reduced to writing), other than any Insurance Contracts, between the Company, on the one hand, and Seller or any Affiliate of Seller (other than the Company), on the other hand (collectively, “Intercompany Agreements”).

 

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Section 5.12     Insurance Issued or Assumed by the Company.

 

(a)     Section 5.12 of the Seller Disclosure Schedule sets forth a true and correct list of all issued and outstanding Insurance Contracts. Examples of the policy forms used for such Insurance Contracts have been provided to Buyer. Seller has requested from the TPA a copy of each in-force Insurance Contract. To the extent the TPA delivers any copy of an in-force Insurance Contract to Seller, whether before or after Closing, Seller shall deliver all such copies to Buyer as soon as practicable.

 

(b)     As of the date hereof, there are no material unpaid claims or assessments made against the Company by any state insurance guaranty associations or similar organizations in connection with such association’s insurance guarantee fund.

 

(c)     Seller is not aware of a material failure of the TPA to comply with the terms of the TPA Agreement, and neither Seller nor the Company has instructed the TPA to process claims otherwise than in the ordinary course of business and in accordance with past practice.

 

(d)     Since January 1, 2016, no material deficiencies have been asserted in writing by any Governmental Authority with respect to any premium rate filings that have not been cured or otherwise resolved to the satisfaction of such Governmental Authority.

 

Section 5.13     Reinsurance. Section 5.13 of the Seller Disclosure Schedule sets forth a true and correct list of all reinsurance agreements to which the Company is a party and has any existing material rights or material obligations as of the date hereof (each, a “Reinsurance Agreement”). Each Reinsurance Agreement is a legal, valid and binding obligation of the Company and, to the Knowledge of Seller, each other party thereto, and is enforceable against the Company, and, to the Knowledge of Seller, each other party thereto, in accordance with its terms (except in each case as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, rehabilitation, liquidation, fraudulent conveyance or other similar Laws now or hereafter in effect relating to or affecting creditors’ rights generally, and subject to the limitations imposed by general equitable principles (whether or not such enforceability is considered in a proceeding at law or in equity)). Neither the Company nor, to the Knowledge of Seller, any of the other parties to any Reinsurance Agreement is in material default or material breach or has failed to perform any material obligation under any such reinsurance treaty or agreement, and, to the Knowledge of Seller, there does not exist any event, condition or omission that would constitute such a material breach or material default (whether by lapse of time or notice or both). There are no pending or, to the Knowledge of Seller, threatened Actions with respect to any Reinsurance Agreement.

 

Section 5.14     Distributors and Brokers; Third-Party Administrators; Employees.

 

(a)     To the Knowledge of Seller, in the last twelve (12) months prior to the date hereof and currently, there have been and are no insurance agents, underwriters, wholesalers, brokers, reinsurance intermediaries or distributors appointed by or acting on behalf of the Company. In the last twelve (12) months prior to the date hereof and currently, there have been and are no employees of the Company.

 

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(b)     To the Knowledge of Seller, since January 1, 2016 to the date hereof, each third-party administrator that managed or administered insurance business for the Company, at the time such Person managed or administered such business, was duly licensed as required by Law (for the type of business managed or administered on behalf of the Company), and to the Knowledge of Seller, no such third-party administrator is in violation (or with or without notice or lapse of time or both, would be in violation) of any term or provision of any Law applicable to the administration or management of insurance business for the Company, except for such failures to be licensed or such violations which have been cured, resolved or settled through agreements with applicable Governmental Authorities, are barred by an applicable statute of limitations or, individually or in the aggregate, have not had, and would not reasonably be expected to have, a Company Material Adverse Effect.

 

Section 5.15     Investment Assets. Seller has made available to Buyer a true and correct list of all investment assets owned by, or held in trust for the benefit of, the Company, including bonds, notes, debentures, mortgage loans, collateral loans and all other instruments of indebtedness, stocks, partnership or joint venture interests and all other equity interests, certificates issued by or interests in trusts and derivatives as of June 30, 2018 (“Investment Assets”). The Company, or a trustee acting on the Company’s behalf, has valid title to all Investment Assets, free and clear of any Liens other than Permitted Liens.

 

Section 5.16     Insurance. As of the date of hereof, Seller or its Affiliates, with respect to the Company, maintain the insurance policies and coverages set forth in Section 5.16 of the Seller Disclosure Schedule, and all such policies are in full force and effect and no written notice of cancellation, termination or revocation or other written notice that any such insurance policy is no longer in full force or effect.

 

Section 5.17     Property. The Company does not own or lease any real property or interests in real property, except for Investment Assets.

 

Section 5.18     Taxes.

 

(a)     All (i) material Tax Returns required to be filed by or on behalf of the Company have been duly and timely filed with the appropriate Tax Authority (after giving effect to any valid extensions of time in which to make such filings) and (ii) amounts shown on such Tax Returns as due have been fully and timely paid.

 

(b)     The Company has complied in all material respects with all applicable Laws relating to withholding of Taxes and has duly and timely withheld and paid over to the appropriate Tax Authority all material amounts required to be so withheld and paid over.

 

(c)     Since January 1, 2016, Seller has not received written notice from any Tax Authority regarding a delinquency in required filings or unpaid Tax obligations that has not been cured or otherwise resolved to the satisfaction of such Taxing Authority.

 

(d)     No written waiver of any statute of limitations relating to income Taxes for which the Company is liable has been granted. All material deficiencies asserted in writing or assessments made in writing, as a result of any examinations by any Tax Authority of Tax Returns of the Company, have been fully paid or are being contested in good faith, and no other audits or investigations by any Tax Authority relating to any such Tax Returns are in progress with respect to which the Company has received written notice thereof from a Tax Authority.

 

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(e)     The Company is not a party to any Tax sharing or similar Tax agreements (relating to sharing of consolidated, combined or unitary Taxes among members of a consolidated, combined or unitary group) pursuant to which it will have any obligation to make any material payments after the Closing Date, other than any such obligations that arise pursuant to this Agreement.

 

This Section 5.18 below contains the sole and exclusive representations and warranties related to Tax matters and nothing in this Section 5.18 shall cause Seller to be liable for any Taxes for which Seller is not expressly liable pursuant to Article X. None of the representations and warranties in this Section 5.18 are made with respect to Taxes in respect of any Insurance Contracts, including any obligations in respect of withholding, information reporting or record-keeping in respect thereto.

 

Section 5.19     Insurance-Product-Related Tax Matters.

 

(a)     The Tax treatment of each Insurance Contract that was in force on or after January 1, 2016 is not, and, since the time of issuance (or subsequent modification), has not been, less favorable to the purchaser, policyholder or intended beneficiaries thereof, than the Tax treatment (i) that was purported to apply in any written materials provided by the Company to the purchaser (or policyholder) at the time of issuance (or any subsequent modification of such policy) or (ii) for which such policy was designed to qualify at the time of issuance (or subsequent modification). For purposes of this Section 5.19, the provisions of applicable Law relating to the Tax treatment of such Insurance Contracts shall include, but not be limited to, Sections 72, 101, 817, 7702, 7702A and 7702B of the Code.‬

 

(b)     All Insurance Contracts that were in force on or after January 1, 2016 that are subject (i) neither to Section 101(f) nor to Section 7702 of the Code qualify as life insurance contracts for purposes of the Code, (ii) to Section 101(f) of the Code satisfy the requirements of that section and otherwise qualify as life insurance contracts for purposes of the Code and (iii) to Section 7702 of the Code satisfy the requirements of Section 7702(a) of the Code and otherwise qualify as life insurance contracts for purposes of the Code.

 

(c)     None of the Insurance Contracts that were in force on or after January 1, 2016 is a “modified endowment contract” within the meaning of Section 7702A of the Code, except for any Insurance Contract that is being administered as a “modified endowment contract” and with respect to which the policyholder either (i) consented in writing to the treatment of such policy as a “modified endowment contract” and has not acted to revoke such consent or (ii) was informed in writing about the treatment of such policy as a “modified endowment contract,” declined to have such treatment corrected and has not subsequently requested to have such treatment corrected.

 

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(d)     Each Insurance Contract that was in force on or after January 1, 2016 that is subject to Section 817 of the Code complies with, and, at all times since issuance, has complied with, the diversification requirements applicable thereto, and the Company is treated, for federal Tax purposes, as the owner of the assets underlying such Insurance Contract.

 

(e)     The Company has not entered into any agreement or is involved in any discussions or negotiations with the IRS, or otherwise has requested relief from the IRS, regarding the failure of any insurance or annuity policy or contract (or any binders, slips, certificates, endorsements or riders thereto) currently in force to meet its intended Tax treatment.

 

(f)     The Company is not a party to or has received written notice of any federal, state, local or foreign audits or other administrative or judicial Actions with regard to the Tax treatment of any insurance or annuity policies or contracts (or any binders, slips, certificates, endorsements or riders thereto) currently in force, or of any claims by the purchasers, holders or intended beneficiaries thereof regarding the Tax treatment thereof.

 

(g)     The Company is not a party to any “hold harmless” indemnification agreement under which it is liable for the Tax treatment of any insurance or annuity policies or contracts (or any binders, slips, certificates, endorsements or riders thereto) currently in force.

 

This Section 5.19 contains the sole and exclusive representations and warranties made with respect to Taxes in respect of any Insurance Contracts, including any obligations in respect of withholding, information reporting or record-keeping in respect thereof, or the Tax treatment thereof.

 

Section 5.20     Regulatory Filings

 

(a)     The Company has filed all material reports, statements, registrations, filings, notices or submissions required to be filed with any Governmental Authority since January 1, 2016. All such reports, statements, registrations, filings, notices or submissions were in material compliance with applicable Laws when filed, and no material deficiencies have been asserted by any such Governmental Authority with respect to such registrations, filings or submissions that have not been addressed or satisfied.

 

(b)     Seller has made available for inspection by Buyer (i) any reports of examination (including financial, market conduct and similar examinations) of the Company issued by any insurance Governmental Authority, in any case, since January 1, 2016, (ii) all material Insurance Holding Company System Act filings or submissions made by the Company with any insurance Governmental Authority since January 1, 2016 through the date hereof and (iii) all analyses and reports submitted by the Company to the Montana Insurance Department since January 1, 2016 relating to its risk-based capital calculations, with the exception of the Own Risk Solvency Assessment (“ORSA”) Summary Report, which is prepared on a consolidated-basis and contains proprietary and confidential competitive information about Seller’s life and annuity segments. As of the date hereof, all material deficiencies or violations noted in the examination reports described in clause (i) above have been resolved to the reasonable satisfaction of the insurance Governmental Authority that noted such deficiencies or violations.

 

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(c)     The Company is not “commercially domiciled” under the Laws of any jurisdiction or is otherwise treated as domiciled in a jurisdiction other than its jurisdiction of organization.

 

Section 5.21     Seller Guarantee. To the Knowledge of Seller, there are no Seller Guarantees.

 

Section 5.22     NO OTHER REPRESENTATIONS OR WARRANTIES. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN ARTICLE IV OR THIS ARTICLE V (AS MODIFIED BY THE SELLER DISCLOSURE SCHEDULE, AS SUPPLEMENTED), NEITHER SELLER NOR ANY OTHER PERSON MAKES ANY OTHER EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY WITH RESPECT TO THE SELLER, THE BUSINESS, THE INSURANCE CONTRACTS, THE RESERVES, THE STATUTORY STATEMENTS, THE SHARES, THE COMPANY OR THE ASSETS AND PROPERTIES OF THE COMPANY, AND SELLER DISCLAIMS ANY OTHER REPRESENTATIONS, WARRANTIES, FORECASTS, PROJECTIONS, STATEMENTS, OR INFORMATION, WHETHER MADE BY SELLER OR ANY OF ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, DISTRIBUTORS OR REPRESENTATIVES. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, NO REPRESENTATION OR WARRANTY HAS BEEN OR IS BEING MADE WITH RESPECT TO ANY PROJECTIONS, FORECASTS, BUSINESS PLANS, ESTIMATES OR BUDGETS DELIVERED OR MADE AVAILABLE TO BUYER OR ANY OTHER PERSON.

 

Article VI

REPRESENTATIONS AND WARRANTIES REGARDING BUYER

 

Except as set forth in the correspondingly identified subsection of the Buyer Disclosure Schedule, Buyer hereby represents and warrants to Seller as follows:

 

Section 6.01     Incorporation and Authority of Buyer.

 

(a)     Buyer is a corporation duly incorporated, validly existing and in good standing under the Laws of Kansas.

 

(b)     Buyer has all requisite corporate power to enter into, consummate the transactions contemplated by, and carry out its obligations under, each of this Agreement. The execution and delivery by Buyer, the consummation by Buyer of the transactions contemplated by, and the performance by Buyer of its obligations under this Agreement have been (or will be prior to the Closing) duly authorized by all requisite corporate action on the part of Buyer. This Agreement has been duly executed and delivered by Buyer and (assuming due authorization, execution and delivery by Seller) this Agreement constitutes the legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, subject to the effect of any applicable bankruptcy, reorganization, insolvency, moratorium, rehabilitation, liquidation, fraudulent conveyance or similar Laws relating to or affecting creditors’ rights generally and subject, as to enforceability, to the effect of general equitable principles (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

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Section 6.02     No Conflict. Provided that all consents, approvals, authorizations and other actions described in Section 6.03 have been obtained or taken, except as otherwise provided in this Article VI and except as may result from any facts or circumstances solely relating to Seller or its Affiliates (as opposed to any other third party), the execution, delivery and performance by Buyer and the consummation by Buyer of the transactions contemplated by this Agreement do not and will not (a) violate or conflict with the organizational documents of Buyer, (b) violate or conflict with any Law or other Governmental Order applicable to Buyer or by which it or its properties or assets is bound or subject or (c) result in any breach of, or constitute a default (or event which, with the giving of notice or lapse of time, or both, would become a default) under, or give to any Person any rights of termination, acceleration or cancellation of, or result in the creation of any Lien (other than Permitted Liens) on any of the assets or properties of Buyer pursuant to any material note, bond, mortgage, indenture or contract which or any of their Subsidiaries is a party or by which any of such assets or properties is bound or subject, except, in the case of clauses (b) and (c), any such conflicts, violations, breaches, defaults, rights or Liens that, individually or in the aggregate, do not have, and would not reasonably be expected to have, a Buyer Material Adverse Effect.

 

Section 6.03     Consents and Approvals. Except as may result from any facts or circumstances solely relating to Seller or its Affiliates (as opposed to any other third party), the execution and delivery by Buyer does not, and the performance by Buyer, and the consummation by Buyer of the transactions contemplated by, this Agreement will not, require any Governmental Approval to be obtained or made by Buyer or any of their Affiliates prior to the Closing, the failure to obtain or make any or all of which would reasonably be expected to have a Buyer Material Adverse Effect.

 

Section 6.04     Absence of Litigation. There are no Actions pending or, to the Knowledge of Buyer, threatened in writing, against Buyer that question the validity of, or seek injunctive relief with respect to, this Agreement or the right of Buyer to enter into this Agreement.

 

Section 6.05     Securities Matters. The Shares are being acquired by Buyer for its own account and without a view to the public distribution or sale of the Shares or any interest in them. Buyer has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its investment in the Shares, and Buyer is capable of bearing the economic risks of such investment, including a complete loss of its investment in the Shares. Buyer understands that it may not sell, transfer, assign, pledge or otherwise dispose of any of the Shares other than pursuant to a registered offering in compliance with, or in a transaction exempt from, the registration requirements of the Securities Act and applicable state and foreign securities Laws.

 

Section 6.06     Financial Ability. Buyer has, and will have at the Closing, sufficient immediately available funds to pay, in cash, the Purchase Price and all other amounts payable pursuant to this Agreement or otherwise necessary to timely consummate the transactions contemplated by this Agreement. Buyer has not incurred any Liabilities or obligations, or is contemplating or aware of any Liabilities or obligations, in either case, that would impair or adversely affect such resources and capabilities. The obligations of Buyer, to effect the transactions contemplated by this Agreement are not conditioned upon the availability to Buyer or any of its Affiliates of any debt, equity or other financing in any amount whatsoever.

 

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Section 6.07     Investigation. Buyer (a) has made its own inquiry and investigation into, and, based thereon, has formed an independent judgment concerning, the Company and the Business and (b) has been furnished with or given adequate access to such information about the Company and the Business as it has requested. The only representations, warranties, covenants and agreements made by Seller are the representations, warranties, covenants and agreements expressly made in this Agreement and Seller makes no other express or implied representation or warranty with respect to the Company, Insurance Contracts, or the Business, and no express or implied representation or warranty with respect to any information provided by Seller or its Affiliates or Representatives, whether or not in the electronic data room established by Seller for Buyer, including as to (i) the operation of the Company by Buyer after the Closing in any manner or (ii) the probable success or profitability of the ownership, use or operation of the Company or the Business by Buyer after the Closing. Except for the representations and warranties of Seller expressly set forth herein, Buyer has not relied upon any representations or warranties or other information made or supplied by or on behalf of Seller or by any Affiliate of Seller.

 

Section 6.08     Brokers; No Inducement or Reliance; Independent Assessment.

 

(a)     Buyer is solely responsible for the payment of the fees and expenses of any broker, investment banker, financial adviser or other Person acting in a similar capacity in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Buyer or any Affiliate.

 

(b)     Buyer has not been induced by and has not relied upon any representations, warranties or statements, whether express or implied, made by Seller, the Company, or their respective Affiliates or Representatives that are not expressly set forth in Article IV and Article V (including the Seller Disclosure Schedule), whether or not any such representations, warranties or statements were made in writing or orally.

 

(c)     Without limiting the foregoing, none of the Company, Seller or their Affiliates or Representatives makes, will make or has made any representation or warranty, express or implied, as to the prospects of the Company or its profitability for Buyer, or with respect to any forecasts, projections or business plans made available to Buyer or any other Person (including Buyer’s Affiliates or Representatives) in connection with Buyer’s review of the Company and the Business. In addition, except as otherwise set forth herein, any estimates, projections and predictions contained or referred to in the materials that have been provided or made available to Buyer by or on behalf of Seller, including any confidential information memorandum, or any other communication, the electronic data room and all management presentations established or provided in connection with the transactions contemplated by this Agreement, (i) are not and shall not be deemed to be representations or warranties of Seller or any of its Affiliates and (ii) other than in the case of fraud, shall not form the basis, in whole or in part, for any claim against Seller or any of its Affiliates. Without limiting the generality of the foregoing, except as expressly set forth in the representations and warranties in Article IV and Article V, THERE ARE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND THE COMPANY, THE BUSINESS, THE INSURANCE CONTRACTS, AND ANY OTHER ASSETS THAT ARE TANGIBLE PERSONAL PROPERTY OR THIRD-PARTY SOFTWARE ARE BEING CONVEYED ON AN “AS IS,” “WHERE IS,” AND “WITH ALL FAULTS” BASIS AND WITHOUT ANY WARRANTY OF NON-INFRINGEMENT.

 

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Section 6.09     Regulatory Matters. Within the past five (5) years, no Governmental Authority has revoked any license or status held by Buyer or any of its Affiliates to conduct insurance operations. Buyer and its Affiliates meet all of the requirements on the part of such respective entity set forth by applicable Law (including the Laws of its jurisdiction of formation) in order for all necessary Governmental Approvals to be obtained, and there are no facts, events or circumstances, involving or relating to Buyer or any of its Affiliates, that may prevent or delay the granting of any such Governmental Approvals.

 

Section 6.10     Financial Statements. Section 6.10 of the Buyer Disclosure Schedule sets forth the audited annual and unaudited quarterly balance sheets of Buyer as of December 31, 2017 and June 30, 2018, respectively, and the related audited annual and unaudited quarterly consolidated statements of income (collectively, the “Buyer Financial Statements”). The Buyer Financial Statements has been prepared in all material respects in accordance with the statutory accounting principles prescribed or permitted by Buyer’s domiciliary state as in effect at the relevant time (subject to the omission of notes and normal year-end adjustments in the case of the unaudited statements) and in material conformity with the practices consistently applied by Buyer and presents fairly, in all material respects, the financial position and results of operations of Buyer as at the respective dates and for the respective periods indicated, in all material respects in accordance with SAP.

 

Article VII

ACTIONS PRIOR TO THE CLOSING DATE

 

Section 7.01     Conduct of Business Prior to the Closing.

 

(a)     Except as required by applicable Law, as otherwise contemplated by or necessary to effectuate this Agreement, and except for matters identified in Schedule 7.01(a), from the date of this Agreement through the Closing, unless Buyer otherwise consents in advance (which consent shall not be unreasonably withheld, delayed or conditioned), Seller shall cause the Company to conduct its Business in the ordinary course and to refrain from taking any of the following actions:

 

(i)     transfer, issue, sell or dispose of any Capital Stock or other securities of the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire Capital Stock or other securities of the Company;

 

(ii)     adopt a plan of complete or partial liquidation or rehabilitation or authorize or undertake a merger, dissolution, rehabilitation, consolidation, restructuring, recapitalization or other reorganization;

 

(iii)     amend the certificate of incorporation or by-laws of the Company;

 

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(iv)     make any material change in the underwriting, claims administration, investment, reserving or financial accounting policies, practices or principles of the Company, as applicable, in effect on the date hereof (other than any change required by, SAP or, in respect of underwriting, claims administration or investment, in the ordinary course of business);

 

(v)     incur any indebtedness for money borrowed from third parties (other than current trade accounts payable incurred in respect of property or services purchased in the ordinary course of business consistent with past practice) or assume, grant, guarantee or endorse, or otherwise as an accommodation become responsible for, the obligations of any Person, or make any loans or advances (other than, in each case, in the ordinary course of business consistent with past practice, including transactions with respect to Investment Assets);

 

(vi)     other than in the ordinary course of business, modify, amend (in any material respect) or terminate (other than at its stated expiry date) any Material Contract or any Reinsurance Agreement or enter into any contract which would, if entered into prior to the date hereof, have been a Material Contract or Reinsurance Agreement;

 

(vii)     other than with respect to the Investment Assets or in the ordinary course of business, purchase, sell, lease, exchange or otherwise dispose of or acquire any property or assets; provided that neither Seller nor the Company shall re-invest any Investment Asset that matures or is otherwise converted to cash at or prior to the Closing without the prior written consent of Buyer;

 

(viii)     acquire (by merger, consolidation, acquisition of stock or assets, bulk reinsurance or otherwise) any corporation, partnership, joint venture, association or other business organization or division thereof, or substantially all of the assets of any of the foregoing except for acquisitions of Investment Assets;

 

(ix)     settle any litigation or claim against the Company (other than claims under the Insurance Contracts, or any binders, slips, certificates, endorsements or riders thereto, within applicable policy limits), other than (A) any such settlement that is solely a monetary settlement that requires payment by the Company of less than $10,000 or (B) settlement of any such litigation or claim to the extent reserved against in the Statutory Statements;

 

(x)     default under any indebtedness or, other than in the ordinary course of business and consistent with past practice, cancel or compromise any material indebtedness or waive any material rights without receiving a realizable benefit of similar or greater value;

 

(xi)     enter into any new line of business, introduce any new products, or change in any material respect existing products;

 

(xii)     undertake or commit to make any capital expenditures; or

 

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(xiii)     enter into any legally binding commitment with respect to any of the foregoing.

 

Section 7.02     Access to Information.

 

(a)     From the date of this Agreement until the Closing Date, Seller shall, and shall cause its Affiliates to, give Buyer and its authorized Representatives, upon reasonable advance written notice and during regular business hours, reasonable access to all books, records, officers and other facilities and properties of the Company; provided, that any such access shall be conducted at Buyer’s expense, in accordance with applicable Law (including any applicable Law relating to antitrust, competition, employment or privacy issues), under the supervision of Seller’s or its Affiliates’ personnel and in such a manner as to maintain confidentiality and not to unreasonably interfere with the normal operations of Seller and its Affiliates (including the Company).

 

(b)     Notwithstanding anything to the contrary contained in this Agreement or any other agreement between Buyer and Seller executed on or prior to the date hereof, Seller shall have no obligation to make available to Buyer or its Representatives, or to provide Buyer or its Representatives with access to or copies of (i) any Tax Return filed by Seller or any of its Affiliates (other than the Company) or predecessors, or any related material or (ii) any other information, in each case if Seller determines, in its reasonable judgment, that making such information available would (A) jeopardize any attorney-client privilege, the work product immunity or any other legal privilege or similar doctrine or (B) contravene any applicable Law, Governmental Order or any fiduciary duty, it being understood that Seller shall cooperate with any requests for, and use its reasonable best efforts to obtain any, waivers that would enable any otherwise required disclosure to Buyer to occur without so jeopardizing any such privilege or immunity or contravening such applicable Law, Governmental Order or fiduciary duty.

 

Section 7.03     Regulatory and Other Authorizations; Consents.

 

(a)     Each of Buyer and Seller shall, and shall cause each of its applicable Affiliates to, (i) as soon as reasonably practicable following the date hereof (and, in the case of such filings, applications and notifications, in no event more than thirty (30) days following the date hereof) make all filings, applications and notifications with each Governmental Authority required to be made by such party, and use its reasonable best efforts to promptly obtain all Governmental Approvals, in each case, that may be or become necessary for their respective execution and delivery of, and the performance of their respective obligations pursuant to, and the consummation of the transactions contemplated by, this Agreement and (ii) take all actions as may be required or requested by any applicable Governmental Authorities or as may otherwise be necessary in order to obtain such Governmental Approvals, including by (A) seeking to prevent the initiation of, and defending any Action challenging this Agreement or the consummation of the transactions contemplated hereby and thereby, (B) the prompt provision to a Governmental Authority of non-privileged information and documents requested by such Governmental Authority or that are necessary, proper or advisable to permit consummation of the transactions contemplated by this Agreement and (C) avoiding the entry of, or causing to be lifted or rescinded, any Governmental Order adversely affecting the ability of the parties to consummate the transactions contemplated by this Agreement. The parties shall cooperate with the reasonable requests of each other in promptly seeking to obtain all such authorizations, consents, orders and approvals. Neither Seller nor Buyer shall take any action that they should be reasonably aware would have the effect of delaying, impairing or impeding the receipt of any required Governmental Approvals.

 

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(b)     In furtherance of and not in limitation of the foregoing, to the extent necessary to (i) comply with any conditions imposed by any Governmental Authority on its approval of the transactions contemplated by this Agreement, (ii) prevent the enactment, entry, enforcement or promulgation of any applicable Law restraining or prohibiting the transactions contemplated by this Agreement or (iii) vacate, modify or suspend any injunction or order that would make the consummation of the transactions contemplated by this Agreement in accordance with its terms unlawful or that would prevent or delay the consummation of the transactions contemplated by this Agreement, Buyer shall offer to accept an order to (A) divest such portion of (I) the assets and businesses of the Company or (II) the assets and businesses of Buyer and its Affiliates, (B) terminate any existing relationships or contractual rights and obligations, (C) hold separate such assets and businesses pending such divestiture, (D) increase the capitalization of Buyer or its Affiliates or (E) otherwise take or commit to take actions that, after the Closing Date, would limit Buyer’s or its Affiliates’ (including the Company’s) freedom of action with respect to, or ability to retain, one or more of the businesses, locations, employees, product lines or assets of Buyer and its Affiliates (including the Company).

 

(c)     Seller and Buyer shall promptly notify one another of any communication it receives from any Governmental Authority relating to the matters that are the subject of this Agreement and permit the other party to review in advance any proposed communication by such party to any Governmental Authority and shall provide each other with copies of all correspondence, filings or communications between such party or any of its Representatives, on the one hand, and any Governmental Authority or members of its staff, on the other hand. Except as otherwise required or requested by the applicable Governmental Authority, neither Seller nor Buyer shall agree, nor shall Seller or Buyer permit the Company to agree, to participate in any meeting with any Governmental Authority in respect of any such filings, investigation or other inquiry unless it consults with the other party in advance and, to the extent permitted by such Governmental Authority, gives the other party the opportunity to attend and participate at such meeting. Subject to the Confidentiality Agreement and Section 7.02, Seller and Buyer shall coordinate and cooperate fully with each other in exchanging such information and providing such assistance as the other party may reasonably request in connection with the foregoing; provided, that neither party shall be required to disclose to the other any of its or its Affiliates’ confidential competitive information. Neither party shall be required to comply with any provision of this Section 7.03(c) to the extent that such compliance would be prohibited by applicable Law.

 

(d)     Third-Party Consents.

 

(i)     Prior to the Closing, except as otherwise agreed by the parties, each party shall cooperate with the other and use reasonable best efforts to make or obtain the Third-Party Consents set forth in Schedule 7.03(d); provided, that neither party shall be required to compromise any right, asset or benefit or expend any amount or incur any Liabilities, make any accommodations or provide any other consideration in order to obtain any such Third-Party Consent.

 

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(ii)     From and after the Closing Date through the one month anniversary of the Closing Date, the parties shall continue to use reasonable best efforts to obtain, as promptly as practicable, any such required Third-Party Consents that have not been obtained as of the Closing Date; provided, that neither party shall be required to compromise any right, asset or benefit or expend any amount or incur any Liabilities, make any accommodations or provide any other consideration in order to obtain any such Third-Party Consent.

 

Section 7.04     Intercompany Obligations. Except for the intercompany obligations set forth in Schedule 7.04, Seller shall, and shall cause its Affiliates to, take such action, including making such payments as may be necessary, so that, prior to or concurrently with the Closing, the Company, on the one hand, and Seller and its Affiliates (other than the Company), on the other hand, shall settle, discharge, offset, pay or repay in full all intercompany loans, notes, and advances, regardless of their maturity, and all intercompany receivables and payables for the amount due, including any accrued and unpaid interest to but excluding the date of payment.

 

Section 7.05     Intercompany Arrangements.

 

(a)     Except as (i) otherwise contemplated by this Agreement, (ii) set forth in Schedule 7.05 or (iii) otherwise agreed by Seller and Buyer, Seller shall, and shall cause its Affiliates to, take such actions as may be necessary to remove the Company as a party or terminate prior to or concurrently with the Closing all Intercompany Agreements, after giving effect to Section 7.04.

 

Section 7.06     Supplements to Seller Disclosure Schedule. From time to time prior to the Closing, Seller shall be permitted to supplement or amend the Seller Disclosure Schedule solely to reflect any event, change or circumstance first arising after the date hereof, and each such supplement and amendment shall be deemed for all purposes of this Agreement to be incorporated into the Seller Disclosure Schedule. If any event, change or circumstance reflected in such supplement or amendment, absent the delivery by Seller of such supplement or amendment, would, individually or in the aggregate with any event, change or circumstance reflected in any other supplement delivered by Seller pursuant to this Section 7.06, result in, if occurring or continuing as of the Closing Date, the failure of a condition set forth in Section 11.02(a) to be satisfied, then Buyer shall have the right to terminate this Agreement upon written notice to Seller delivered no later than ten (10) Business Days following the delivery by Seller of such supplement or amendment.

 

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Article VIII

ADDITIONAL AGREEMENTS

 

Section 8.01     Access to Information. After the Closing, Buyer shall, and shall cause its Affiliates (including the Company) to, preserve, in accordance with and until such date as may be required by, Buyer’s, or its applicable Affiliates’ standard document retention policies (but for not less than six (6) years from the Closing Date or such later date as may be required by applicable Law), all pre-Closing Date records related to the Company possessed or controlled by such Person. During such period, upon any reasonable request from Seller or its Representatives, Buyer or any of its Affiliates holding such records shall (i) provide to Seller or its Representatives reasonable access to such records during normal business hours; provided, that such access shall not unreasonably interfere with the conduct of the business of Buyer or its Affiliates holding such records and (ii) permit Seller to make copies of such records, in each case, at no cost to Seller or its Representatives (other than for reasonable out-of-pocket expenses). Nothing herein shall require Buyer or its Affiliates to disclose any information to Seller if such disclosure would jeopardize any attorney-client privilege, the work product immunity or any other legal privilege or similar doctrine or contravene any applicable Law, Governmental Order or any fiduciary duty (it being understood that Buyer and its Affiliates shall cooperate in any reasonable best efforts and requests for waivers that would enable otherwise required disclosure to Seller or its Representatives to occur without so jeopardizing privilege or contravening such applicable Law, Governmental Order or fiduciary duty or agreement) or (except as provided in Section 10.02(d)(iv)) require Buyer or its Affiliates to disclose its Tax records (except for Tax records of, or with respect to, the Company) or any personnel or related records. Such records may be requested under this Section 8.01 for any reasonable purpose, including to the extent reasonably required in connection with accounting, litigation, financial reporting, federal securities disclosure, compliance with contractual obligations of Seller or its Affiliates or other similar purpose. Notwithstanding the foregoing, upon the expiration of such retention period, any and all such records may be destroyed by Buyer if Buyer sends to Seller written notice of its intent to destroy such records, specifying in reasonable detail the contents of the records to be destroyed; such records may then be destroyed after the sixtieth (60th) day following such notice unless Seller notifies Buyer that Seller desires to obtain possession of such records, in which event Buyer shall transfer the records to Seller and Seller shall pay all reasonable out-of-pocket expenses of Buyer in connection therewith.

 

Section 8.02     Books and Records.

 

(a)     At the Closing, (i) all books and records of the Company and the Business shall be transferred to Buyer and (ii) Seller shall transfer, or cause to be transferred, to Buyer all original corporate records of the Company relating to the legal existence, ownership and corporate governance of the Company and all Permits of the Company, in each case possessed or controlled by Seller or its Affiliates and that are not otherwise possessed or controlled by the Company. Prior to the Closing, Seller and Buyer shall cooperate in good faith to develop and implement a plan that will result in the delivery or transfer of all other books and records of the Company and the Business to Buyer or the Company at, or as soon as reasonably practicable following, the Closing. Subject to Section 8.03(b), except as otherwise required by applicable Law, Seller and its Affiliates shall have the right to retain copies of all books and records of the Company and their business relating to periods ending on or prior to the Closing Date.

 

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(b)     After the Closing, Seller shall, and shall cause its Affiliates to, preserve, in accordance with Seller’s, or its applicable Affiliates’, standard document retention policies and until such date as such books and records are transferred to Buyer or the Company, all pre-Closing Date books and records of the Company and the Business that have not been transferred to Buyer. During such period, upon any request from Buyer or its Representatives, Seller or any of its Affiliates holding such records shall (i) provide to Buyer or its Representatives reasonable access to such records during normal business hours; provided, that such access shall not unreasonably interfere with the conduct of the business of Seller or its Affiliates holding such records and (ii) permit Buyer to make copies of such records, in each case, at no cost to Buyer or its Representatives (other than for reasonable out-of-pocket expenses). Nothing herein shall require Seller or its Affiliates to disclose any information to Buyer if such disclosure would jeopardize any attorney-client privilege, the work product immunity or any other legal privilege or similar doctrine or contravene any applicable Law, Governmental Order or any fiduciary duty (it being understood that Seller and its Affiliates shall cooperate in any reasonable best efforts and requests for waivers that would enable otherwise required disclosure to Buyer or its Representatives to occur without so jeopardizing privilege or contravening such applicable Law, Governmental Order or fiduciary duty or agreement) or (except as provided in Section 10.02(d)(iv)) require Seller or its Affiliates to disclose its Tax records (except for Tax records of, or with respect to, the Company) or any personnel or related records.

 

Section 8.03     Confidentiality.

 

(a)     The terms of the confidentiality agreement, dated May 15, 2018 (the “Confidentiality Agreement”), between American Republic Insurance Company and its Affiliates and US Alliance Corporation and its Affiliates are incorporated into this Agreement by reference and shall continue in full force and effect until the Closing, at which time the confidentiality obligations under the Confidentiality Agreement shall terminate; provided, that any party’s remedy with respect to breaches of such Confidentiality Agreement that occurred prior to the Closing shall survive the Closing. If for any reason the transactions contemplated by this Agreement are not consummated, the Confidentiality Agreement shall continue in full force and effect in accordance with its terms.

 

(b)     From and after the Closing, Seller and its Affiliates shall, and shall cause their respective Representatives to, maintain in confidence any written, oral or other information relating to the Company or the Buyer obtained prior to the Closing Date or obtained from Buyer or its Affiliates pursuant to Section 8.01.

 

(c)     From and after the Closing, Buyer and its Affiliates (including the Company) shall, and shall cause their respective Representatives to, maintain in confidence any written, oral or other information relating to or obtained from Seller or its Affiliates prior to the Closing Date, other than information to the extent relating to the Company.

 

(d)     The requirements of Section 8.03(b) and Section 8.03(c) shall not apply to the extent that (i) any such information is or becomes generally available to the public other than (A) in the case of Buyer, as a result of disclosure by Seller, its Affiliates or any of its Representatives and (B) in the case of Seller, as a result of disclosure by Buyer, the Company (after the Closing Date) or any of their respective Affiliates or Representatives, (ii) any such information is required by applicable Law, Governmental Order or a Governmental Authority to be disclosed after prior notice has been given to the other party, (iii) any such information is reasonably necessary to be disclosed in connection with any Action or (iv) any such information was or becomes available to such party on a non-confidential basis and from a source (other than a party to this Agreement or any Affiliate or Representative of such party) that is not bound by a confidentiality agreement with respect to such information. Each of the parties hereto shall instruct its Affiliates and Representatives having access to such information of such confidentiality obligations.

 

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Section 8.04     Insurance.

 

(a)     Except as expressly provided in Section 8.04(b), effective at the time of the Closing, the Company shall cease to be insured by any insurance policies of Seller and its Affiliates (other than the Company).

 

(b)     With respect to events or circumstances relating to the Company that occurred or existed prior to the Closing Date that are covered by occurrence-based third-party liability insurance policies and any workers’ compensation insurance policies that apply to the locations at which the businesses of the Company operate, the Company may make claims under such policies and programs; provided, that by making any such claims, Buyer agrees to reimburse Seller for any increased costs incurred by Seller or its Affiliates as a result of such claims, including any retroactive or prospective premium adjustments associated with such coverage, as such amounts are reasonably determined in accordance with those policies and programs generally applicable from time to time to Seller and its Affiliates; provided, further, that the Company shall not be permitted to make any such claims if, and to the extent that, such claims are covered by insurance policies sponsored by Buyer or any of its Affiliates (including, after the Closing, the Company). As of the second (2nd) anniversary of the Closing Date, the Company shall no longer have access to such occurrence-based third-party liability insurance policies of Seller and its Affiliates and Buyer shall assume full responsibility for, and release Seller and its Affiliates from, all liability for claims, known or unknown, resulting from occurrences prior to the Closing Date. Any proceeds received by Seller or any of its Affiliates after the Closing for third-party claims under occurrence-based third-party liability insurance policies or workers’ compensation insurance policies with respect to Losses occurring prior to the Effective Time in respect of the Company shall be for the benefit of Buyer unless such proceeds relate to expenditures that have been made prior to the Effective Time or any business interruption prior to the Effective Time.

 

Section 8.05     Trade Names and Trademarks.

 

(a)     Other than as contemplated in this Agreement, Buyer is not purchasing, acquiring or otherwise obtaining any right, title or interest in or to any Intellectual Property owned by Seller or its Affiliates (other than the Company), including the name “Great Western Life Insurance Company,” “Great Western Insurance Company,” “GWLIC,” or “GWIC,” or any Trademark or Internet domain name related thereto or employing the words “Great Western Life Insurance Company,” “Great Western Insurance Company,” “GWIC,” or any variation of the foregoing or any confusingly similar Trademark or Internet domain name, (including in any and all goodwill, registrations and applications relating thereto) (collectively, the “Seller Names and Marks”), and, except as otherwise expressly provided in this Agreement, neither Buyer nor any of its Affiliates (including, after the Closing, the Company) shall have any rights in the Seller Names and Marks and neither Buyer nor any of its Affiliates (including, after the Closing, the Company) shall contest the ownership or validity of any rights of Seller or any of its Affiliates in or to the Seller Names and Marks. Buyer hereby consents to Seller causing the Company to transfer all rights, title, and interests in and to the Seller Names and Marks to Seller or any of its Affiliates prior to the Closing, and such transfer(s) shall not constitute a breach of any term or condition of this Agreement.

 

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(b)     Except as otherwise provided in this Agreement, or in connection with historical references to the Business, following the Closing Date, Buyer and its Affiliates (including the Company) shall cease and discontinue all uses of the Seller Names and Marks, either alone or in combination with other words and all Trademarks or Internet domain names similar to any of the foregoing or embodying any of the foregoing alone or in combination with other words. Seller shall allow Buyer a forty-five (45) day grace period following Closing for Buyer to comply with its obligations under Section 8.05(b)-(c). Upon mutual written consent by the parties, which consent shall not be unreasonably withheld by either party, the forty-five (45) day grace period may be extended for up to an additional forty-five (45) days. However, under no circumstances shall the grace period be in effect beyond ninety (90) days following the Closing Date. Subject to the foregoing, the rights of the Company to the Seller Names and Marks pursuant to the terms of any existing trademark agreements shall terminate on the Closing Date. As of and after the Closing Date, Buyer and its Affiliates (including the Company) shall not expressly, or by implication, do business as or represent themselves as Seller or an Affiliate of Seller.

 

(c)     In accordance with the terms of this Agreement and on the date(s) specified herein, Buyer and its Affiliates (including the Company) shall re-label, destroy, delete or exhaust all materials bearing the Seller Name and Marks in Buyer’s possession or control, including signage, advertising, promotional materials, Software, packaging, inventory, electronic materials, collateral goods, stationery, business cards, websites and other materials (except to the extent any such materials must be retained to comply with applicable Laws or document retention notices issued by any Governmental Authority), and make all filings with any office, agency or body to effect the elimination of any use of the Seller Name and Marks from the businesses of the Company, to the extent required to bring Buyer and its Affiliates into compliance with this Section 8.05. Thereafter, Buyer shall send a written statement to Seller verifying that it has re-labeled, destroyed, deleted or exhausted all materials in its possession or control bearing the Seller Name and Marks and shall send Seller representative samples of how Buyer is then using advertising and promotional materials that do not include Seller Name and Marks to the extent required by the foregoing sentence. Buyer shall take all necessary action to ensure that its Affiliates comply with this Section 8.05, and shall use commercially reasonable efforts to enforce its rights under the TPA Agreement with respect to the TPA’s use of Seller Name and Marks, including upon the termination of the TPA Agreement.

 

(d)     In the event Buyer or any Affiliate of Buyer (including the Company after the Closing) violates any of its obligations under this Section 8.05, Seller and its Affiliates may proceed against Buyer or its Affiliates in law or in equity for such damages or other relief as a court may deem appropriate. A violation of this Section 8.05 may cause Seller and its Affiliates irreparable harm, which may not be adequately compensated for by money damages. In the event of any actual or threatened violation of this Section 8.05, Seller and any of its Affiliates shall be entitled, in addition to other remedies that they may have, to seek a temporary restraining order and to seek preliminary and final injunctive relief against Buyer or such Affiliate of Buyer to prevent any violations of this Section 8.05 without the necessity of posting a bond.

 

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(e)     At the Closing, Buyer shall execute any necessary documentation in order to amend the organizational documents with respect to the Companies such that the Company can effect a change in its name to a name not containing and not confusingly similar to any of the Seller Name and Marks. Immediately after the Closing, Buyer shall cause the Company to file the application documents to register a new trade name with each applicable Governmental Authority and take all other necessary action to fulfill its obligations set forth in this Section 8.05 as soon as reasonably practicable. Within fifteen (15) days after the Closing, Buyer shall cause the Company to file the application documents to register a new trade name, which new trade name will comply with all applicable Laws, with each applicable Governmental Authority and take all other necessary action to fulfill its obligations set forth in this Section 8.05 as soon as reasonably practicable.

 

Section 8.06     Guaranties. Buyer shall use all commercially reasonable efforts to cause Seller and its Affiliates to be fully and irrevocably released, as of the Closing Date or as promptly as practicable after the Closing Date, in respect of all obligations under any guaranties, letters of credit, letters of comfort, bid bonds or performance or surety bonds or cash or other collateral obtained or given by Seller or its Affiliates (including the Company) relating to the Business and which are disclosed to Buyer by Seller or of which Buyer otherwise becomes aware (collectively, the “Seller Guaranties”). If Buyer is unable to effect such a substitution and release with respect to any Seller Guarantee, Buyer shall indemnify Seller against any and all Loss or Expense arising from such Seller Guarantee to the extent such Loss or Expense is attributable to Buyer’s or the Company’s default, breach, action or inaction with respect to the obligation underlying such Seller Guarantee. Without limiting the foregoing, after the Closing Date, Buyer will not, and will not permit any of its Affiliates, successors or assigns to, (i) renew, extend, amend or supplement any contract or otherwise extend the term of or increase any obligation that is covered by or the subject of a Seller Guarantee, (ii) transfer to a third party any such contract or other obligation or (iii) obtain a release from all obligations under such contract or other obligation contemplated by clause (i) or (ii), without providing Seller with evidence reasonably satisfactory to it that the Seller Guarantee has been irrevocably and fully irrevocably released. Any cash or other collateral posted by Seller or its Affiliates (including the Company) in respect of any Seller Guarantee shall be delivered to Seller promptly following such release.

 

Section 8.07     D&O Liabilities. From and after the Closing Date until the fourth (4th) anniversary of the Closing Date, Buyer shall, and shall cause its Affiliates to, maintain in full the indemnification obligations set forth in the organizational documents of the Company, as in effect immediately prior to the Closing, with respect to all past directors, officers and managers of the Company as well as all directors, officers and managers of the Company as of the Closing Date, in each case, for acts or omissions occurring on or prior to the Closing Date in their capacities as such, and to indemnify and hold harmless such Persons in accordance therewith. Buyer, Seller and any Person entitled to indemnification under this Section 8.07 shall cooperate in the defense of any litigation under this Section 8.07 and shall provide access to properties and individuals as reasonably requested and furnish or cause to be furnished records, information and testimony, and attend such conferences, discovery proceedings, hearings, trials or appeals, as may be reasonably requested in connection therewith.

 

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Section 8.08     Further Action.

 

(a)     Seller and Buyer (i) shall execute and deliver, or shall cause to be executed and delivered, such documents and other papers and shall take, or shall cause to be taken, such further actions as may be reasonably required to carry out the provisions of this Agreement and give effect to the transactions contemplated by this Agreement, (ii) shall refrain from taking any actions that could reasonably be expected to impair, delay or impede the Closing, (iii) without limiting the foregoing, shall use their respective reasonable best efforts to cause all the conditions to the obligations of the other party to consummate the transactions contemplated by this Agreement to be met as soon as reasonably practicable and (iv) shall cooperate in good faith to facilitate an orderly Closing and transition.

 

(b)     Each of Seller and Buyer shall keep each other reasonably apprised of the status of the matters relating to the completion of the transactions contemplated hereby, including with respect to the satisfaction of the conditions set forth in Article XI. From time to time following the Closing, Seller and Buyer shall, and shall cause their respective Affiliates to, execute, acknowledge and deliver all reasonable further conveyances, notices, assumptions, releases and acquittances and such instruments, and shall take such reasonable actions as may be necessary or appropriate to make effective the transactions contemplated hereby as may be reasonably requested by the other party.

 

Article IX

RESERVED

 

Article X

TAX MATTERS

 

Section 10.01     Liability for Taxes.

 

(a)     The Company has made an estimated Tax payment of its 2018 Federal and Montana income and premium taxes (the “2018 Tax Estimate”) to the appropriate Tax Authority. To the extent the 2018 Tax Estimate paid by the Company is less than or does not fully cover any Taxes owed by the Company for any taxable period (or portion thereof, as determined under Section 10.01(c)) ending on or prior to the Closing Date, Seller shall be liable for and pay, and shall indemnify and hold harmless the Buyer Indemnified Parties, from the remaining amount of any such Taxes; provided, that Seller shall not be liable for or pay, and shall not indemnify Buyer from and against, (A) any Taxes that result from any actual or deemed election under Sections 336(e) or 338 of the Code or any similar provisions of state, local or foreign Law as a result of the purchase of the Shares or that result from Buyer, any Affiliate of Buyer or (on or after the Closing Date) the Company engaging in any activity or transaction that would cause the transactions contemplated by this Agreement to be treated as a purchase or sale of assets of the Company for foreign, federal, state, local or other Tax purposes, (B) any Taxes for which Buyer is liable under Section 10.01(b) and (C) any Taxes to the extent taken into account as a Liability or reserve for Taxes in preparing the Statutory Statements as of the Accounts Date (Taxes described in this proviso, “Excluded Taxes”). Seller shall be entitled to any refund of Taxes, including but not limited to the 2018 Estimate, received by Buyer or its Affiliates for any taxable period ending on or prior to the Closing Date and any other amounts credited against Tax for a taxable period ending on or prior to the Closing Date (excluding any refund or credit attributable to any loss incurred in a taxable period beginning after the Closing Date and applied (e.g., as a carryback) to income in a taxable period ending on or prior to the Closing Date). Any such refunds or credits received or utilized by Buyer or its Affiliates shall be promptly, and in any event within thirty (30) days of the receipt or utilization of such refund or credit, paid over to Seller. Buyer shall and shall cause its Affiliates to take reasonable steps to secure any such refund or credit that would be available.

 

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(b)     Buyer shall be liable for and pay, and shall indemnify and hold harmless the Seller Indemnified Parties from and against, any Losses with respect to (i) any breach or failure of Buyer to perform any of its covenants or obligations contained in this Article X, (ii) Taxes imposed or required to be paid by a Seller Indemnified Party arising as a result of actions taken by the Company after the Closing Date and (iii) Excluded Taxes.

 

(c)     For purposes of Section 10.01(a) and Section 10.01(b), whenever it is necessary to determine the liability for Taxes of the Company for a taxable period beginning on or before the Closing Date and ending after the Closing Date (a “Straddle Period”), the determination of the Taxes of the Company for the portion of the Straddle Period ending on and including, and the portion of the Straddle Period beginning after, the Closing Date will be determined in the following manner:

 

(i)     in the case of any Taxes that are either based on or related to income or receipts, by assuming that the Straddle Period consisted of two stub periods, one which ended at the close of the Closing Date and the other which began at the beginning of the day following the Closing Date, items of income, gain, deduction, loss or credit of the Company for the Straddle Period will be allocated between such two stub periods or periods on a “closing of the books basis” by assuming that the books of the Company were closed at the close of the Closing Date; provided, however, that (1) transactions occurring on the Closing Date that are properly allocable (based on, among other relevant factors, factors set forth in Treasury Regulation Section 1.1502-76(b)(1)(ii)(B)) to the portion of the Closing Date after the Closing will be allocated to the stub period that is deemed to begin at the beginning of the day following the Closing Date, and (2) exemptions, allowances or deductions that are calculated on an annual basis, such as the deduction for depreciation, will be apportioned between such two stub periods or periods on a daily basis; and

 

(ii)     in the case of Taxes not described in subparagraph (i) above that are imposed on a period basis and measured by the level of any item, such Taxes will be deemed to be the amount of such Taxes for the entire period (or, in the case of such Taxes determined on an arrears basis, the amount of such Taxes for the immediately preceding period) multiplied by a fraction the numerator of which is either the number of calendar days in the Straddle Period ending on and including the Closing Date or the number of calendar days in the Straddle Period after the Closing Date, as the case may be, and the denominator of which is the number of calendar days in the entire relevant period.

 

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(d)     Notwithstanding anything herein to the contrary, Buyer shall pay, and shall indemnify Seller against, any real property transfer or gains Tax, Transfer Taxes, sales Tax, use Tax, stamp Tax, stock transfer Tax, or other similar Tax imposed on the transactions contemplated by this Agreement.

 

Section 10.02     Tax Returns.

 

(a)     Seller shall, at its own expense, prepare and timely file, or cause to be prepared and timely filed, all Tax Returns required to be filed for taxable periods ending on or before Closing. Seller shall timely remit, or cause to be timely remitted, all Taxes due in respect of such Tax Returns. All such Tax Returns shall be prepared in a manner consistent with past practice in all material respects. Seller shall provide Buyer a draft copy of any material Tax Return it is required to file pursuant to this Section 10.02(a) at least thirty (30) days prior to the due date of such Tax Return and shall consider in good faith any comments made by Buyer.

 

(b)     Buyer shall, at its own expense, file or cause to be filed all Tax Returns required to be filed with respect to the Company for taxable periods ending after the Closing Date, and Buyer shall timely remit, or cause to be timely remitted, all Taxes due in respect of such Tax Returns, subject to its right of indemnification under Section 10.01(a). Upon the written request of Buyer, Seller shall pay to Buyer, no later than five (5) days prior to the due date for the applicable Tax Return, the Taxes which are payable with respect to any Tax Return to be filed by Buyer pursuant to this Section 10.02(b) for which Seller is liable under Section 10.01(a). All such Tax Returns shall be prepared in a manner consistent with the Company’s past practice (A) to the extent consistent with applicable law or (B) in the case the applicable law is unclear, to the extent the past practice of the Company is supported by authority at a “more likely than not” level of confidence, in the good faith judgment of the Buyer. Buyer shall provide Seller a draft copy of any material Tax Return for a Straddle Period that it is required to file pursuant to this Section 10.02(b) at least thirty (30) days prior to the due date of such Tax Return and shall consider in good faith any comments made by Seller. Buyer may, at its sole discretion, cause the Company to make to make a “closing of the books” election, pursuant to Section 382 of the Code and the regulations thereunder, on the Tax Return filed with respect to the year or period that includes the Closing Date.

 

(c)     None of Buyer, Seller or the Company shall (i) withdraw, repudiate, amend, refile or otherwise modify, or cause or permit to be withdrawn, repudiated, amended, refiled or otherwise modified, any Tax Return filed by, (ii) make or change any material Tax election or any annual Tax accounting period with respect to, (iii) change any method of Tax accounting with respect to, (iv) consent to any extension or waiver of the limitations period applicable to any material Tax claim or assessment with respect to or (v) surrender any material right or claim to refund of Taxes with respect to, the Company for any taxable year or period beginning on or before the Closing Date without the prior written consent of the other parties, which shall not be unreasonably withheld, conditioned or delayed. Nothing in this Section 10.02(c) shall limit the Buyer or Company’s right or ability to file a claim for refund of Taxes of the Company for periods beginning on or before the Closing Date.

 

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(d)     Assistance and Cooperation. After the Closing Date, each of Seller and Buyer shall:

 

(i)     timely sign and deliver such certificates or forms as may be necessary or appropriate to establish an exemption from (or otherwise reduce), or file Tax Returns or other reports with respect to, Taxes described in Section 10.01;

 

(ii)     assist the other party in preparing any Tax Returns which such other party is responsible for preparing and filing in accordance with Section 10.02, and in connection therewith, provide the other party with any necessary powers of attorney;

 

(iii)     cooperate fully in preparing for and defending any audits of, or disputes with, taxing authorities regarding, any Tax Returns of the Company;

 

(iv)     make available to the other and to any taxing authority as reasonably requested all information, records and documents relating to Taxes of the Company; and

 

(v)     furnish the other with copies of all correspondence received from any taxing authority in connection with any Tax audit or information request with respect to any Taxes or Tax Returns of the Company; provided, that Buyer shall only be obligated to furnish copies of such correspondence to Seller to the extent such audit or information request relates to Taxes for which Seller may be liable under the terms of this Agreement.

 

Section 10.03     Audits.

 

(a)     Buyer shall notify Seller regarding, and within ten (10) days after, the receipt by Buyer or Affiliate of Buyer (including the Company) of written notice of any inquiries, claims, assessments, audits or similar events with respect to Taxes of the Company to the extent relating to any taxable year or period (or portion thereof) ending on or before the Closing Date; provided, that failure to comply with this provision shall not affect Buyer’s right to indemnification under this Agreement except to the extent such failure materially impairs Seller’s ability to contest any such Tax liabilities.

 

(b)     Notwithstanding anything to the contrary contained in this Agreement, Seller shall control the resolution of any inquiry, claim, assessment, audit or event to the extent relating solely to (i) taxable periods ending on or before the Closing Date, and in connection therewith Seller may employ counsel of Seller’s choice at Seller’s expense; provided, that Seller shall have no right to represent the Company’s interests in any inquiry, claim, assessment, audit or event unless Seller shall have first notified Buyer in writing of Seller’s intention to do so and of the identity of counsel, if any, chosen by Seller in connection therewith, and provided, further that Buyer and its representatives shall be permitted, at Buyer’s expense, to be present at, and participate in, any such inquiry, claim, assessment, audit or event. Notwithstanding the foregoing, Seller shall not settle any such inquiry, claim, assessment, audit or event, or surrender any right to claim a Tax refund, offset or other reduction in Tax liability of the Company that could reasonably be expected to have a material impact on Buyer or the Company for any taxable period (or portion thereof) ending after the Closing Date, unless Seller has obtained the prior consent of Buyer which consent shall not be unreasonably withheld, conditioned or delayed by Buyer.

 

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(c)     Notwithstanding anything to the contrary contained in this Agreement, Buyer shall control the resolution of any inquiry, claim, assessment, audit or event to the extent relating in whole or in part to the Straddle Period, and in connection therewith may employ counsel of Buyer’s choice at Buyer’s expense; provided, that Seller and their respective representatives shall be permitted, at Seller’s expense, to be present at, and participate in, any such inquiry, claim, assessment, audit or event to the extent relating to Taxes for which Seller may be liable pursuant to Section 10.01(a). Notwithstanding the foregoing, Buyer shall not settle any such inquiry, claim, assessment, audit or event, or surrender any right to claim a Tax refund, offset or other reduction in Tax liability of the Company for which Seller may be liable pursuant to this Section 10.03(c) and Section 10.01(a) unless Buyer has obtained the prior consent of Seller, which consent shall not be unreasonably withheld, conditioned or delayed by Seller.

 

(d)     Buyer shall have the sole right to defend the Company with respect to any issue, and settle any inquiry, claim, assessment, audit or event, or surrender any right to claim a Tax refund, offset or other reduction in Tax liability of the Company to the extent Buyer shall have agreed in writing to forego any indemnification under this Agreement with respect to such issue.

 

Section 10.04     Other Tax Matters.

 

(a)     The indemnification provided for in this Article X shall be the sole remedy for any claim in respect of Taxes and the provisions of Article XIII shall not apply to such claims, except as expressly provided. Indemnification provided for in this Article X shall be calculated on an After-Tax Basis.

 

(b)     Any claim for indemnity under this Article X may only be made at a time prior to sixty (60) days after the expiration of the applicable Tax statute of limitations with respect to the relevant Taxable period (including all periods of extension, whether automatic or permissive).

 

(c)     The parties shall treat any indemnification payment made under this Agreement as an adjustment to the Purchase Price.

 

(d)     Following the Closing, Buyer shall not permit the Company to claim any minimum tax credit, within the meaning of Section 53 of the Code, against federal or state income Tax, which credit arose with respect to Taxable years or periods (or portions thereof) ending on or prior to the Closing Date during which the Company was affiliated with Seller, within the meaning of Section 1504(a) of the Code, determined without regard to the restrictions under Section 1504(b) of the Code.

 

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Article XI

CONDITIONS TO CLOSING AND RELATED MATTERS

 

Section 11.01     Conditions to Obligations of Seller. The obligation of Seller to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or waiver by Seller, at or prior to the Closing, of each of the following conditions:

 

(a)     Representations and Warranties; Covenants. The representations and warranties of Buyer contained in Section 6.01 shall be true and correct in all respects as of the Closing as if made on the Closing Date, the other representations and warranties of Buyer contained in Article VI shall be true and correct (without giving effect to any limitations as to materiality or Buyer Material Adverse Effect set forth therein) as of the Closing as if made on the Closing Date (other than any representation or warranty expressly made as of another date, which representation or warranty shall have been true and correct as of such date), except to the extent that any failure of such representations and warranties, individually or in the aggregate, to be true and correct have not had a Buyer Material Adverse Effect, the covenants contained in this Agreement to be complied with by Buyer at or before the Closing shall have been complied with in all material respects and Seller shall have received a certificate of Buyer dated as of the Closing Date to such effect signed by a duly authorized executive officer of Buyer.

 

(b)     Approvals of Governmental Authorities. The Governmental Approvals listed in Schedule 11.01(b) shall have been received (or any waiting period shall have expired or shall have been terminated).

 

(c)     No Governmental Order. There shall be no Governmental Order in existence that prohibits the consummation of the transactions contemplated by this Agreement.

 

Section 11.02     Conditions to Obligations of Buyer. The obligations of Buyer to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or waiver by Buyer, at or prior to the Closing, of each of the following conditions:

 

(a)     Representations and Warranties; Covenants. The representations and warranties of Seller contained in Section 4.01, Section 5.01(a), Section 5.01(b), and Section 5.02 shall be true and correct in all respects as of the Closing as if made on the Closing Date, the other representations and warranties of Seller contained in Article IV and Article V shall be true and correct (without giving effect to any limitations as to materiality or Company Material Adverse Effect set forth therein, other than the representation and warranty in Section 5.04(b) and any use of the defined term “Material Contract”) as of the Closing as if made on the Closing Date (other than any representation or warranty expressly made as of another date, which representation or warranty shall have been true and correct as of such date), except to the extent that any failure of such representations and warranties, individually or in the aggregate, to be true and correct have not had a Company Material Adverse Effect, the covenants contained in this Agreement to be complied with by Seller on or before the Closing shall have been complied with in all material respects and Buyer shall have received a certificate of Seller dated as of the Closing Date to such effect signed by a duly authorized executive officer of Seller.

 

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(b)     Approvals of Governmental Authorities. The Governmental Approvals listed in Schedule 11.02(b) shall have been received (or any waiting period shall have expired or shall have been terminated).

 

(c)     No Governmental Order. There shall be no Governmental Order in existence that prohibits the consummation of the transactions contemplated by this Agreement.

 

Article XII

TERMINATION AND WAIVER

 

Section 12.01     Termination. This Agreement may be terminated prior to the Closing:

 

(a)     by the mutual written consent of Seller and Buyer;

 

(b)     by either Seller or Buyer if the Closing shall not have occurred prior to December 31, 2018 (the “Outside Date”) or such later date as the parties may mutually agree; provided, that the right to terminate this Agreement under this Section 12.01(b) shall not be available to any party whose failure to take any action required to fulfill any of such party’s obligations under this Agreement shall have been the cause of, or shall have resulted in, the failure of the Closing to occur prior to such date;

 

(c)     by either Seller or Buyer in the event of the issuance of a final, nonappealable Governmental Order prohibiting the consummation of the transactions contemplated by this Agreement;

 

(d)     by Buyer in the event of a breach by Seller of any of Seller’s covenants, representations or warranties contained herein that would result in the conditions to Closing set forth in (a) not being satisfied, and such breach is either not capable of being cured prior to the Outside Date or, if curable, Seller shall have failed to cure such breach within thirty (30) days after receipt of written notice thereof from Buyer requesting such breach to be cured;

 

(e)     by Seller in the event of a breach by Buyer of any of Buyer’s covenants, representations or warranties contained herein that would result in the conditions to Closing set forth in (a) not being satisfied, and such breach is either not capable of being cured prior to the Outside Date or, if curable, Buyer shall have failed to cure such breach within thirty (30) days after receipt of written notice thereof from Seller requesting such breach to be cured; or

 

(f)     by Buyer in accordance with Section 7.06.

 

Section 12.02     Notice of Termination. Any party desiring to terminate this Agreement pursuant to Section 12.01 shall give written notice of such termination to the other party to this Agreement.

 

Section 12.03     Effect of Termination. In the event of the termination of this Agreement as provided in Section 12.01, this Agreement shall thereafter become void and there shall be no liability on the part of any party to this Agreement, except as set forth in Section 8.03, this Article XII and Article XIV; provided, that nothing in this Section 12.03 shall relieve either Seller or Buyer from liability for (a) failure to perform its obligations set forth in Section 7.03(a) and Section 7.03(b) or (b) any willful breach of this Agreement or willful failure to perform its obligations under this Agreement.

 

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Section 12.04     Extension; Waiver. At any time prior to the Closing, each of Seller and Buyer may (a) extend the time for the performance of any of the obligations or other acts of the other party, (b) waive any inaccuracies in the representations and warranties of the other party contained in this Agreement or in any certificate, instrument, schedule or other document delivered pursuant to this Agreement or (c) waive compliance by the other party with any of the agreements or conditions contained in this Agreement. Any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the party granting such extension or waiver.

 

Article XIII

INDEMNIFICATION

 

Section 13.01     Indemnification by Seller.

 

(a)     After the Closing and subject to Article X, the other provisions of this Article XIII and Section 14.01, Seller shall indemnify and hold harmless Buyer and its Affiliates and Representatives (collectively, the “Buyer Indemnified Parties”) against all Losses that any such Buyer Indemnified Party at any time suffers or incurs, or becomes subject to, as a result of or in connection with:

 

(i)     the inaccuracy or breach of any representation or warranty made by Seller in Article IV or Article V of this Agreement; or

 

(ii)     any breach or failure by Seller to perform any of its covenants or obligations contained in this Agreement.

 

(b)     Notwithstanding any other provision to the contrary, Seller shall not be required to indemnify or hold harmless any Buyer Indemnified Party against any Losses pursuant to Section 13.01(a)(i) (other than Losses arising solely as a result of the inaccuracy or breach of any representation or warranty made by Seller in Section 4.01, Section 5.01(a), Section 5.01(b), and Section 5.02, as to which the limitations in this sentence shall not apply) (i) with respect to any claim (or series of related claims arising from the same underlying facts, events or circumstances) unless such claim (or series of related claims arising from the same underlying facts, events or circumstances) involves Losses in excess of $15,000 (nor shall any such claim or series of related claims that does not meet the $15,000 threshold be applied to or considered for purposes of calculating the aggregate amount of the Buyer Indemnified Parties’ Losses for which Seller has responsibility under clause (ii) below) and (ii) until the aggregate amount of the Buyer Indemnified Parties’ Losses exceeds $15,000, after which Seller shall, subject to the immediately succeeding sentence, be obligated to indemnify and hold harmless the Buyer Indemnified Parties against all Losses of the Buyer Indemnified Parties that in the aggregate are in excess of such amount. The cumulative aggregate liability of Seller under Section 13.01(a)(i) shall in no event exceed $50,000 (other than in respect of Losses arising solely as a result of the inaccuracy or breach of any representation or warranty made by Seller in Section 4.01, Section 5.01(a), Section 5.01(b), and Section 5.02, in which case, Seller’s aggregate liability shall not exceed $75,000).

 

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(c)     Seller shall not be required to indemnify or hold harmless any Buyer Indemnified Party against any Losses with respect to any claim arising out of or relating to matters described in Section 13.01(a) made by any Buyer Indemnified Party after the Closing if the facts and circumstances giving rise to such claim are disclosed in, referred to, permitted, or resulting from, this Agreement, the Seller Disclosure Schedule, or requested, agreed or consented to by Buyer.

 

Section 13.02     Indemnification by Buyer.

 

(a)     After the Closing and subject to Article X, the other provisions of this Article XIII and Section 14.01, Buyer shall indemnify and hold harmless Seller and its Affiliates and Representatives (collectively, the “Seller Indemnified Parties”) against all Losses that any such Seller Indemnified Party at any time suffers or incurs, or becomes subject to, as a result of or in connection with:

 

(i)     the inaccuracy or breach of any representation or warranty made by Buyer in Article VI of this Agreement; or

 

(ii)     any breach or failure by Buyer to perform any of its covenants or obligations contained in this Agreement.

 

(b)     Notwithstanding any other provision to the contrary, Buyer shall not be required to indemnify or hold harmless any Seller Indemnified Party against any Losses pursuant to Section 13.02(a)(i) (other than Losses arising solely as a result of the inaccuracy or breach of any representation or warranty made by Buyer in Section 6.01 or Section 6.08, as to which the limitations in this sentence shall not apply) (i) with respect to any claim (or series of related claims arising from the same underlying facts, events or circumstances), unless such claim (or series of related claims arising from the same underlying facts, events or circumstances) involves Losses in excess of $15,000 (nor shall any such claim or series of related claims that does not meet the $15,000 threshold be applied to or considered for purposes of calculating the aggregate amount of the Seller Indemnified Parties’ Losses for which Buyer has responsibility under clause (ii) below) and (ii) until the aggregate amount of the Seller Indemnified Parties’ Losses exceeds $15,000 after which Buyer shall, subject to the immediately succeeding sentence, be obligated to indemnify and hold harmless the Seller Indemnified Parties against all Losses of the Seller Indemnified Parties that, in the aggregate, are in excess of such amount. The cumulative aggregate liability of Buyer under Section 13.02(a)(i) shall in no event exceed $50,000 (other than in respect of Losses arising solely as a result of the inaccuracy or breach of any representation or warranty made by Buyer in Section 6.01 or Section 6.08, in which case, Buyer’s aggregate liability shall not exceed $75,000.

 

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Section 13.03     Notification of Claims.

 

(a)     A Person who may be entitled to be indemnified and held harmless under Section 13.01 or Section 13.02 (the “Indemnified Party”), shall promptly notify the party that is potentially liable therefor (the “Indemnifying Party”) in writing of any pending or threatened claim or demand by a third party that the Indemnified Party has determined has given or could reasonably give rise to such a right under this Agreement (including a pending or threatened claim or demand asserted by a third party against the Indemnified Party, such claim being a “Third-Party Claim”), describing in reasonable detail the facts and circumstances with respect to the subject matter of such claim or demand and the specific representation, warranty or provision of this Agreement that the Indemnified Party alleges to be breached; provided, that the failure to provide such notice shall not release the Indemnifying Party from any of its obligations under this Article XIII except to the extent the Indemnifying Party is prejudiced by such failure, it being understood that notices for claims in respect of a breach of a representation, warranty, covenant or agreement must be delivered prior to the expiration of any applicable survival period specified in Section 14.01 for such representation, warranty, covenant or agreement. Following delivery of a notice of a Third-Party Claim, the Indemnified Party shall deliver to the Indemnifying Party, promptly (and in any event within five (5) Business Days) after the Indemnified Party’s receipt thereof, copies of all notices and documents (including court papers) received by the Indemnified Party relating to such Third-Party Claim.

 

(b)     Following receipt of a notice of a Third-Party Claim from an Indemnified Party pursuant to Section 13.03(a), subject to Section 13.03(c), the Indemnifying Party, by notice to the Indemnified Party, may assume the defense and control of such Third-Party Claim; provided, that the Indemnifying Party shall allow the Indemnified Party a reasonable opportunity to participate in the defense of such Third-Party Claim with its own counsel and at its own expense; provided, further, that the assumption of the defense by the Indemnifying Party of any Third-Party Claim shall not require the Indemnifying Party to agree to be liable for any Losses in respect of such Third-Party Claim and shall be without prejudice to any rights or defenses of the Indemnifying Party in respect of whether the Indemnified Party is entitled to indemnification under this Article XIII for any particular Loss or Losses. If the Indemnifying Party assumes the defense of any Third-Party Claim, the Indemnifying Party shall not, as long as it diligently conducts such defense, be liable to the Indemnified Party for legal or other expenses subsequently incurred by the Indemnified Party in connection with the defense thereof. Subject to Section 13.03(c), the Indemnified Party may take any actions reasonably necessary to defend such Third-Party Claim prior to the time that it receives a notice from the Indemnifying Party as contemplated by the preceding sentence. Seller or Buyer, as the case may be, shall, and shall cause each of its Affiliates and Representatives to, cooperate fully with the Indemnifying Party in the defense of any Third-Party Claim. From and after the delivery of a notice of a claim for indemnification with respect to a Third-Party Claim, at the reasonable request of the Indemnifying Party, each Indemnified Party shall grant the Indemnifying Party and its Representatives full access, during normal business hours, to the books, records, personnel and properties of the Indemnified Party to the extent reasonably related to such Third-Party Claim at no cost to the Indemnifying Party (other than for reasonable out-of-pocket expenses of the Indemnified Parties). The Indemnifying Party shall be authorized to consent to a settlement of, or the entry of any judgment arising from, any Third-Party Claim, without the consent of any Indemnified Party; provided that (i) such settlement does not involve any finding or admission of any violation of Law on the part of the Indemnified Party, (ii) the Indemnifying Party pays or causes to be paid all amounts arising out of such settlement or judgment concurrently with the effectiveness of such settlement (other than as contemplated by Section 13.01(b) or Section 13.02(b)), (iii) such settlement does not encumber any of the material assets of any Indemnified Party or agree to any restriction or condition that would materially adversely affect any Indemnified Party or the conduct of any Indemnified Party’s business and (iv) the Indemnifying Party obtains, as a condition of any settlement or other resolution, a complete and unconditional release of each Indemnified Party from any and all liability in respect of such Third-Party Claim.

 

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(c)     No Indemnifying Party shall have any liability under this Article XIII for any Losses arising out of or in connection with any Third-Party Claim that is settled or compromised by an Indemnified Party without the prior consent of such Indemnifying Party.

 

(d)     If an Indemnified Party shall have a claim under this Article XIII that does not involve a Third-Party Claim, the Indemnified Party shall, as promptly as is practicable and in any event within twenty (20) days of the date on which the Indemnified Party had knowledge of the facts and circumstances that may give rise to such claim, give written notice to the Indemnifying Party setting forth (i) a detailed description of the claim, (ii) a good faith estimate of the amount of the claim and (iii) the specific representation, warranty or provision of this Agreement that the Indemnified Party alleges to be breached, and such notice shall be accompanied by (A) copies of all available documentation that may be necessary or appropriate for the purposes of enabling the Indemnifying Party to be informed and to take any and all appropriate decisions and actions in respect of the matter and Loss that is the subject of the claim and (B) a declaration that the Indemnified Party has in good faith already sustained some (though not necessarily all) Losses with respect to such claim; provided, that the failure to provide such notice shall not release the Indemnifying Party from any of its obligations under this Article XIII except to the extent the Indemnifying Party is prejudiced by such failure, it being understood that notices for claims in respect of a breach of a representation, warranty, covenant or agreement must be delivered prior to the expiration of any applicable survival period specified in Section 14.01 for such representation, warranty, covenant or agreement.

 

(e)     If there shall be any conflict between the provisions of this Section 13.03 and Section 10.03 (relating to Tax contests), the provisions of Section 10.03 shall control with respect to Tax contests.

 

Section 13.04     Payment. In the event an Action under this Article XIII shall have been finally determined, the amount of such final determination shall be paid to the Indemnified Party on demand in immediately available funds. An Action, and the liability for and amount of damages therefor, shall be deemed to be “finally determined” for purposes of this Article XIII when the parties to such Action have so determined by mutual agreement or, if disputed, when a final nonappealable Governmental Order shall have been entered.

 

Section 13.05     No Duplication; Exclusive Remedies.

 

(a)     Any liability for indemnification hereunder shall be determined without duplication of recovery by reason of the same Loss.

 

(b)     Prior to the Closing, other than in the case of fraud, the sole and exclusive remedy of Buyer for any breach or inaccuracy of any representation or warranty contained in this Agreement or any certificate or instrument delivered hereunder shall be refusal to consummate the transactions contemplated by this Agreement.

 

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(c)     Following the Closing, other than in the case of fraud by Buyer or Seller or any of their respective Affiliates, and except for breaches or non-performance of provisions in this Agreement for which the remedy of specific performance is available pursuant to Section 14.14, the indemnification provisions of Article XIII and, with respect to Taxes, Article X, shall be the sole and exclusive remedies of Seller and Buyer, respectively, for any breach of the representations or warranties in this Agreement and for any failure to perform or comply with any covenants or agreements contained in this Agreement. In furtherance of the foregoing, each of Buyer, on behalf of itself and each other Buyer Indemnified Party, and Seller, on behalf of itself and each other Seller Indemnified Party, hereby waives, from and after the Closing, to the fullest extent permitted under applicable Law, any and all rights, claims and causes of action (other than claims of, or causes of action arising from, fraud) it may have against Seller or any of its Affiliates or Representatives and Buyer or any of its Affiliates or Representatives, as the case may be, arising under or based upon this Agreement, any certificate or instrument delivered in connection herewith (whether under this Agreement or arising under common Law or any other applicable Law), except pursuant to: (i) the indemnification provisions set forth in this Article XIII or (ii) as provided under (A) the provisions of Article X, or (B) the provisions hereof providing for equitable remedies.

 

Section 13.06     Additional Indemnification Provisions.

 

(a)     With respect to each indemnification obligation in this Agreement (i) each such obligation shall be calculated on an After-Tax Basis, (ii) all Losses shall be net of any Eligible Insurance Proceeds and (iii) in no event shall the Indemnifying Party have liability to the Indemnified Party for any consequential, special, incidental, indirect or punitive damages, lost profits, diminution of value or similar items (other than any such damages, lost profits or similar items actually paid to any unaffiliated third party) and Losses shall not be calculated by using multiples or any valuation methodologies or similar measures used in arriving at, or that may be reflective of, the Purchase Price.

 

(b)     In any case where an Indemnified Party recovers from a third Person any amount in respect of any Loss paid by the Indemnifying Party pursuant to this Article XIII, such Indemnified Party shall promptly pay over to the Indemnifying Party the amount so recovered (after deducting therefrom the amount of reasonable costs incurred by it in procuring such recovery, which costs shall not exceed the amount so recovered), but not in excess of the sum of (i) any amount previously paid by the Indemnifying Party to or on behalf of the Indemnified Party in respect of such claim and (ii) any amount expended by the Indemnifying Party in pursuing or defending any claim arising out of such Loss.

 

(c)     If any portion of Losses to be paid by the Indemnifying Party pursuant to this Article XIII could be recovered from a third party not affiliated with the relevant Indemnified Party based on the underlying claim or demand asserted against such Indemnifying Party, then the Indemnified Party shall promptly give notice thereof to the Indemnifying Party and, upon the request of the Indemnifying Party, shall use reasonable best efforts to collect the maximum amount recoverable from such third party, in which event the Indemnifying Party shall reimburse the Indemnified Party for all reasonable costs incurred in connection with such collection (which costs of collection shall not exceed the amount recoverable from such third party). If any portion of Losses actually paid by the Indemnifying Party pursuant to this Article XIII could have been recovered from a third party not affiliated with the relevant Indemnified Party based on the underlying claim or demand asserted against such Indemnifying Party, then the Indemnified Party shall transfer, to the extent transferable, such of its rights to proceed against such third party as are necessary to permit the Indemnifying Party to recover from such third party any amount actually paid by the Indemnifying Party pursuant to this Article XIII.

 

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(d)     The parties shall treat any indemnification payment made under this Agreement as an adjustment to the Purchase Price.

 

(e)     If any portion of Losses to be paid by the Indemnifying Party pursuant to this Article XIII may be covered, in whole or in part, by third-party insurance coverage, the Indemnified Party shall promptly give notice thereof to the Indemnifying Party. The Indemnified Party shall use reasonable best efforts to collect the maximum amount of insurance proceeds thereunder, and all such proceeds actually received shall be considered “Eligible Insurance Proceeds.”

 

Section 13.07     Reserves. Notwithstanding anything to the contrary in this Agreement, Seller makes no representation or warranty with respect to, and nothing contained in this Agreement or in any other agreement, document or instrument to be delivered in connection with the transactions contemplated hereby or thereby is intended or shall be construed to be a representation or warranty (express or implied) of Seller, for any purpose of this Agreement or any other agreement, document or instrument to be delivered in connection with the transactions contemplated hereby or thereby, with respect to (a) the adequacy or sufficiency of the Reserves of the Company, (b) the future profitability of the Business or (c) the effect of the adequacy or sufficiency of the Reserves of the Company on any “line item” or asset, Liability or equity amount. Furthermore, no fact, condition, circumstance or event relating to or affecting the development of the Reserves of the Company may be used, directly or indirectly, to demonstrate or support the breach of any representation, warranty, covenant or agreement contained in this Agreement or any other agreement, document or instrument to be delivered in connection with the transactions contemplated hereby or thereby.

 

Article XIV

GENERAL PROVISIONS

 

Section 14.01     Survival. The representations and warranties of Seller and Buyer contained in or made pursuant to this Agreement or in any certificate furnished pursuant to this Agreement (other than the representations and warranties made in (a) Section 4.01, Section 5.01(a), Section 5.01(b), Section 5.02, Section 6.01, Section 6.07 and Section 6.08, which shall survive the Closing indefinitely, and (b) Section 5.18 and Section 5.19, both of which shall not survive the Closing and shall terminate as of the Closing Date) shall survive the Closing and terminate on the date that is twelve (12) months following the Closing Date (and no claims shall be made for indemnification with respect thereto under Sections 13.01 or 13.02 thereafter). The covenants and agreements that by their terms apply or are to be performed in whole or in part after the Closing Date shall survive the Closing and remain in effect for the period provided in such covenants and agreements, if any, or if later, until fully performed.

 

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Section 14.02     Expenses. All third-party expenses incurred by Seller or its Affiliates, including intercompany obligations set forth in Schedule 7.04 of the Seller Disclosure Schedule, in furtherance of the preparation, negotiation, execution, and consummation of this Agreement, including obtaining Governmental Approval for or in furtherance of the consummation of this Agreement shall be borne by the Buyer. Buyer shall, or shall cause the Company to, reimburse Seller or its Affiliates or pay all such expenses within 30 days after receiving due proof of the said expense(s). All other costs and expenses, including fees and disbursements of counsel, financial advisers and independent accountants, incurred in connection with this Agreement and the transactions contemplated by this Agreement shall be paid by the Person incurring such costs and expenses, whether or not the Closing shall have occurred.

 

Section 14.03     Notices. All notices, requests, consents, claims, demands and other communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, by e-mail with receipt confirmed (followed by delivery of an original via overnight courier service) or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 14.03):

 

	 	(a)	if to Seller:
	 	 	 
	 	 	Great Western Insurance Company
	 	 	601 6th Avenue
	 	 	Des Moines, IA 50309
	 	 	Attention: General Counsel, Eric Nemmers
	 	 	E-mail: eric.nemmers@americanenterprise.com
	 	 	 
	 	(b)	if to Buyer:
	 	 	 
	 	 	US Alliance Life Insurance Company
	 	 	4123 SW Gage Center Drive, Suite 240
	 	 	Topeka, Kansas
	 	 	Attention: Jack Brier
	 	 	E-mail: jack@usalliance.com
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Lathrop Gage LLP
	 	 	2345 Grand Boulevard
	 	 	Kansas City, Missouri 64108
	 	 	Attention: Patricia Garringer-Strickland
	 	 	E-mail: pgarringer@lathropgage.com

     

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Section 14.04     Public Announcements. No party to this Agreement or any Affiliate or Representative of such party shall issue or cause the publication of any press release or public announcement or otherwise communicate with any news media in respect of this Agreement or the transactions contemplated by this Agreement without the prior written consent of the other party (which consent shall not be unreasonably withheld or delayed), except as may be required by Law or applicable securities exchange rules, in which the case the party required to publish such press release or public announcement shall allow the other parties a reasonable opportunity to comment on such press release or public announcement in advance of such publication. Prior to the Closing, neither of the parties to this Agreement, nor any of their respective Affiliates or Representatives, shall make any disclosure concerning plans or intentions relating to the customers, agents or employees of, or other Persons with significant business relationships with, the Company without first obtaining the prior written approval of the other party, which approval shall not be unreasonably withheld.

 

Section 14.05     Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced under any Law or as a matter of public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties to this Agreement shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement be consummated as originally contemplated to the greatest extent possible.

 

Section 14.06     Entire Agreement. This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter of this Agreement and supersede all prior agreements and undertakings, both written and oral (other than the Confidentiality Agreement to the extent not in conflict with this Agreement), between or on behalf of Seller and/or its Affiliates, on the one hand, and Buyer and/or its Affiliates, on the other hand.

 

Section 14.07     Assignment. This Agreement shall not be assigned by any party hereto without the prior written consent of the other party hereto. Any attempted assignment in violation of this Section 14.07 shall be void. This Agreement shall be binding upon, shall inure to the benefit of, and shall be enforceable by the parties hereto and their permitted successors and assigns.

 

Section 14.08     No Third-Party Beneficiaries. Except as provided in Section 8.07 with respect to the directors, officers and managers of the Company and Article XIII with respect to the Seller Indemnified Parties and Buyer Indemnified Parties, this Agreement is for the sole benefit of the parties to this Agreement and their permitted successors and assigns and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

Section 14.09     Amendment. No provision of this Agreement may be amended, supplemented or modified except by a written instrument signed by all the parties.

 

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Section 14.10     Schedules. Any disclosure set forth in the Seller Disclosure Schedule with respect to any Section of this Agreement shall be deemed to be disclosed for purposes of other Sections of this Agreement to the extent that such disclosure sets forth facts in sufficient detail so that the relevance of such disclosure would be reasonably apparent to a reader of such disclosure. Matters reflected in any Section of the Seller Disclosure Schedule are not necessarily limited to matters required by this Agreement to be so reflected. Such additional matters are set forth for informational purposes and do not necessarily include other matters of a similar nature. No reference to or disclosure of any item or other matter in the Seller Disclosure Schedule shall be construed as an admission or indication that such item or other matter is material or that such item or other matter is required to be referred to or disclosed in this Agreement. Without limiting the foregoing, no such reference to or disclosure of a possible breach or violation of any contract, Law or Governmental Order shall be construed as an admission or indication that a breach or violation exists or has actually occurred.

 

Section 14.11     Submission to Jurisdiction.

 

(a)     Each of Seller and Buyer irrevocably and unconditionally submits for itself and its property in any Action arising out of or relating to this Agreement, the transactions contemplated by this Agreement, the formation, breach, termination or validity of this Agreement or the recognition and enforcement of any judgment in respect of this Agreement, to the exclusive jurisdiction of the Delaware Chancery Court, any other state court in the State of Delaware, and the United States District Court for the District of Delaware (and the appropriate appellate courts), and all claims in respect of any such Action shall be heard and determined in such aforesaid courts.

 

(b)     Any such Action may and shall be brought in such courts and each of Seller and Buyer irrevocably and unconditionally waives any objection that it may now or hereafter have to the venue or jurisdiction of any such Action in any such court or that such Action was brought in an inconvenient court and shall not plead or claim the same.

 

(c)     Service of process in any Action may be effected by mailing a copy of such process by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such party at its address as provided in Section 14.03.

 

(d)     Nothing in this Agreement shall affect the right to effect service of process in any other manner permitted by the Laws of the State of Delaware.

 

Section 14.12     Governing Law. This Agreement shall be governed by and construed in accordance with the internal Laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of Laws of any jurisdiction other than those of the State of Delaware.

 

Section 14.13     Waiver of Jury Trial. EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ITS PERFORMANCE UNDER OR THE ENFORCEMENT OF THIS AGREEMENT.

 

46

 

 

Section 14.14     Specific Performance. The parties agree that irreparable damage would occur in the event that any of the covenants or obligations contained in this Agreement are not performed in accordance with their specific terms or were otherwise breached. Accordingly, each of the parties hereto shall be entitled to injunctive or other equitable relief to prevent or cure any breach by the other party of its covenants or obligations contained in this Agreement and to specifically enforce such covenants and obligations in any court referenced in Section 14.11(a) having jurisdiction, such remedy being in addition to any other remedy to which any party may be entitled at law or in equity.

 

Section 14.15     Waivers. Any term or provision of this Agreement may be waived, or the time for its performance may be extended, in writing at any time by the party or parties entitled to the benefit thereof. Any such waiver shall be validly and sufficiently authorized for the purposes of this Agreement if, as to any party, it is authorized in writing by an authorized Representative of such party. The failure of any party hereto to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, nor in any way to affect the validity of this Agreement or any part hereof or the right of any party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any preceding or subsequent breach.

 

Section 14.16     Rules of Construction. Interpretation of this Agreement shall be governed by the following rules of construction: (a) words in the singular shall be held to include the plural and vice versa, and words of one gender shall be held to include the other gender as the context requires; (b) references to Articles, Sections, paragraphs, Exhibits and Schedules are references to the Articles, Sections, paragraphs, Exhibits and Schedules to this Agreement unless otherwise specified; (c) references to “$” shall mean United States dollars; (d) the word “including” and words of similar import when used in this Agreement shall mean “including without limiting the generality of the foregoing,” unless otherwise specified; (e) the word “or” shall not be exclusive; (f) the table of contents, articles, titles and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement; (g) this Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting or causing any instrument to be drafted; (h) the Schedules and Exhibits referred to herein shall be construed with and as an integral part of this Agreement to the same extent as if they were set forth verbatim herein; (i) unless the context otherwise requires, the words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; (j) all terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein; (k) any agreement or instrument defined or referred to herein or any agreement or instrument that is referred to herein means such agreement or instrument as from time to time amended, modified or supplemented, including by waiver or consent, and references to all attachments thereto and instruments incorporated therein; and (l) any statute or regulation referred to herein means such statute or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of any statute, includes any rules and regulations promulgated under such statute), and references to any section of any statute or regulation include any successor to such section.

 

Section 14.17     Counterparts. This Agreement may be executed in two (2) or more counterparts, and by the different parties to each such agreement in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or e-mail shall be as effective as delivery of a manually executed counterpart.

 

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47

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above by their respective duly authorized officers.

 

	
			 

				
			Great Western Insurance Company

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Timothy J. Hall

				
			 

			
	
			 

				
			 

				
			Timothy J. Hall

				
			 

			
	
			 

				
			 

				
			Executive Vice President, Business Development

			
	 	 	 	 
	 	 	 	 
	 	US Alliance Life and Security Company	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Jack Brier	 
	 	 	Jack Brier	 
	 	 	President and Chairman	 

 

Signature Page

Stock Purchase Agreement

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