Document:

ex_218071.htm

 

EXHIBIT 10.2

 

CONFIDENTIAL

 

LETTER AGREEMENT

 

 

December 7, 2020

 

Mikael Lundgren

W. TECHNOLOGIES

5122 Bolsa Avenue, Suite 109

Huntington Beach, CA 92649

 

Re: Acquisition of W. Technologies, Inc., the “Company”.

 

Dear Mr. Lundgren:

 

The original Letter of Intent dated November 4, 2019 (“Old LOI”), is herby replaced in full by this Letter Agreement and the Old Note is void and of no further force or effect. The Old LOI originally contemplated the acquisition (the “Acquisition”) by Mid Atlantic Capital Associates, Inc., (“MACA”), of two convertible promissory notes of the Company, dated September 11, 2006 and September 21, 2006 collectively (“Notes”) allegedly owned by Sarkis Sarkissian (“Sarkissian”) and of all of the outstanding shares of the Series E Preferred Stock (“Preferred”) owned of record by the C.H. Mornas Foundation (“Mornas”). Subsequent thereto, it was determined that as a result of due diligence by MACA, certain provisions/terms of the Old LOI need to be revised as hereinafter set forth. Daniel Belanger (“Daniel”) as representative of Certain Current and Prior Shareholders of the Company, concurs in such changes. The Old Note is restated in full as follows:

 

1.     Transfer of Ownership and Consideration: Pursuant to the Acquisition, the Company shall assign a new Note of which $399,832 is principal and $173,400 is interest to MACA [the “New Note”], as the old Notes were cancelled and reissued in the name of MACA as at July 31, 2020, in exchange for (i) the cancellation of the Preferred, (ii) the issuance of 550,000 restricted shares of the common stock of the Company valued at $275,000 (“Shares”), (iii) the issuance of a convertible note for $40,573 in repayment for expenses paid by MACA [the “Expenses Note”], and (iv) the issuance of 500,000 Shares of Series F Preferred Stock.

 

2.     Section 2 of the Old LOI is deleted in full.

 

3     Closing Conditions: The proposed Acquisition is subject to and conditioned upon each of the following:

 

	 	
			(a)

				
			Due Diligence Period. MACA shall have in its judgment, satisfactorily completed its due diligence review of the Company, the Notes, the Preferred and the Certificate of Incorporation as amended. MACA began its due diligence until upon full execution of the Old LOI.

			

 

Section 3(b) of the Old LOI is deleted in its entirely. 

 

	 	
			(c)

				
			Audited Financial Statement [“AFS”]: The AFS of the Company for the two (2) fiscal years ended July 31, 2020 [“Audit”] and, unaudited financial statements as October 31, 2020. Expect for Notes and the Series A Preferred Stock (“Series A PS”) all other Convertible

			

 

 

 

 

	 	
			 

				
			Securities existing before July 31, 2020 with voting and or conversion rights shall be terminated, voided or all of the provisions for ending and/or conversion rights shall be removed from the Convertible Securities.

			

 

	 	
			(d)

				
			Approvals. All necessary governmental and other material their-party approvals, consents and waivers shall have been obtained. In addition, the closing of the transaction shall be subject to receipt of the final approval of the W Tech Board of Directors.

			

 

	 	
			(e)

				
			Daniel acknowledges that except for the Series A PS, the New Note, the Expenses Note, there are no other notes preferred shares, warrants, rights, or any other securities of the Company currently outstanding which have any convertible rights whatsoever. With respect to the cancellation of the Preferred the Company and its Management are relying on statements Daniel made to the Company with respect to the issuance thereof.

			

 

	 	
			(f)

				
			The Company has approved a new Board of Directors of one person designated by MACA.

			

 

4.     Payment of Liabilities. After the Closing, Daniel, on behalf of certain prior officers and directors of the Company, shall continue to be responsible for all liabilities of the Company set forth in as disclosed in the Audit which were not otherwise known by or disclosed to MACA (“Undisclosed Liabilities”) or are listed in the unaudited financial statement at October 31, 2020. Undisclosed Liabilities not set forth on any such books and records or otherwise described in writing to MACA or which become known to MACA for any reason after the Closing by the cancellation of a portion of the Shares delivered under Section 1 hereof.

 

Section 5 of the Old LOI is deleted in its entirety. 

 

6.     Closing. The closing (“Closing”) of the transactions contemplated by the Acquisition Agreement will occur on or about December 10, 2020.

 

7.     Confidentiality. Each of the Sellers and Buyer will keep confidential all information (i) related to a potential transaction or (ii) obtained by it in respect of the other in connection with this Letter of Intent and will use such information solely in connection with the transactions contemplated hereby, and if the transactions contemplated hereby are not consummated, each will destroy, without retaining a copy thereof, any schedules, documents, or other written information obtained from the other in connection with this LOI and the transactions contemplated hereby. Notwithstanding the foregoing provisions of this paragraph, no party hereto shall be required to keep confidential or destroy any information which (i) is known or available through other lawful sources not bound by a confidentiality agreement with the disclosing party, (ii) is or becomes publicly known through no fault of the receiving party or its agents, (iii) is required to be disclosed pursuant to an order or request of a judicial authority or governmental entity (provided the disclosing party is given reasonable prior notice) or (iv) is developed by the receiving party independently of the disclosure by the disclosing party.

 

8.     Expenses. Sellers shall bear the fees and expenses incurred by it, and MACA shall bear the fees and expense incurred by it, including the Company Audit expenses and expenses in connection with the negotiation, preparation, execution, and delivery of the Letter of Agreement.

 

2

 

 

9.     Public Announcements. There will be no disclosure of the Acquisition of this Letter of Intent until the Closing has occurred. Thereafter all press releases and public announcements relating to the Acquisition will be agreed to and prepared jointly by the Company and MACA.

 

10.     Counterparts. This Letter Agreement may be executed in multiple counterparts which, when taken together, shall represent a fully executed Letter of Intent.

 

11.     Expiration. This Letter Agreement will expire at 5:00 P.M. Los Angeles, CA time on January 31, 2020, if not closed.

 

12.     Governing Law. This Letter Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflicts-of law rules thereof.

 

Section 13 of the Old LOI is deleted in its entirety. 

 

14.     Prior Communications; No Oral Modifications. This Letter Agreement supersedes all prior understandings, agreements, and representations between the Company and MACA, whether written or oral, in respect of the subject matter hereof. This Letter Agreement may not be modified other than in a writing executed by all parties and stating its intent to modify or supersede this Letter Agreement.

 

15.     Expiration. This Letter Agreement shall expire January 31, 2021.

 

If the foregoing accurately sets forth our understanding, please so indicate by signing and dating this Letter of Intent in the space provided below and returning an executed copy of this Letter of Intent to the undersigned.

 

Very truly yours.

 

MID ATLANTIC CAPITAL ASSOCIATES, INC. 

 

By: /s/ Charles Flynn                           

Charles Flynn, President

 

 

AGREED AND ACCEPTED

(as of the date first written above):

 

W TECHNOLOIGES, INC.

 

By: /s/ Mikael Lundgren                     

Mikael Lundgren, President & CEO

 

/s/ Daniel Belanger                              

Daniel Belanger, Individually and on behalf of

Certain Current or Prior Shareholders of the Company

 

 

 

3schl-ex101_20201130q2

Exhibit 10.1    FIRST AMENDMENT TO CREDIT AGREEMENT    This FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of December 16, 2020 (this  “Amendment”), is by and among SCHOLASTIC CORPORATION, a Delaware corporation (the  “Holding Company”), and SCHOLASTIC INC., a New York corporation (the “Operating Company”; the  Holding Company and the Operating Company are, collectively, the “Borrowers” and, individually, each a  “Borrower”), the Lenders (as defined below) party hereto and BANK OF AMERICA, N.A., as  administrative agent (in such capacity, the “Agent”).  Capitalized terms used herein and not otherwise  defined herein shall have the meanings ascribed thereto in the Credit Agreement, as amended pursuant to  Exhibit A.    W I T N E S S E T H    WHEREAS, the Borrowers, each lender from time to time party thereto (collectively, the  “Lenders” and individually, a “Lender”) and the Agent are parties to that certain Credit Agreement, dated  as of January 5, 2017 (as amended, restated, amended and restated, supplemented, extended, or otherwise  modified from time to time, the “Credit Agreement”);    WHEREAS, the Borrower have requested that the Lenders amend certain provisions of the Credit  Agreement; and    WHEREAS, the Lenders party hereto are willing to make such amendments to the Credit  Agreement, in accordance with and subject to the terms and conditions set forth herein.    NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good  and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto  agree as follows:    Article 1   AMENDMENTS TO CREDIT AGREEMENT  1.1 Amendments to Credit Agreement.  Effective as of the First Amendment Effective  Date, the Credit Agreement is hereby amended (a) to delete the stricken text (indicated textually in the  same manner as the following examples: stricken text and  stricken text) and (b) to add the double- underlined text (indicated textually in the same manner as the following examples: double-underlined  text and double-underlined text), in each case, as set forth in the marked pages of the Credit Agreement  (and to the extent provided in Exhibit A hereto, the exhibits, schedules and appendices to the Credit  Agreement) attached hereto as Exhibit A hereto and made a part hereof for all purposes.  1.2 Credit Agreement Exhibits and Schedules. Effective as of the First Amendment  Effective Date, each of Exhibit I and Schedule 5.02(b), as attached hereto, is made a part of the Credit  Agreement.  Article 2   CONDITIONS TO EFFECTIVENESS  2.1 Closing Conditions.  This Amendment shall be deemed effective as of December 16, 2020  (the “First Amendment Effective Date”) upon satisfaction of the following conditions (in each case, in form  and substance reasonably acceptable to the Agent):  

 

  2    (a) Executed Loan Documents.  The Agent shall have received a copy of each of the  following Loan Documents, duly executed by each Borrower, the Required Lenders and the Agent,  in each case, as applicable:  (i) this Amendment; and  (ii) the Security Agreement, together with:   a. proper financing statements in form appropriate for filing under  the Uniform Commercial Code of all jurisdictions that  the Agent  may deem necessary or desirable in order to perfect the Liens  created under the Security Agreement, covering the Collateral  described in the Security Agreement, and  b. evidence that all other actions, recordings and filings that  the  Agent may deem necessary or desirable in order to perfect the  Liens created under the Security Agreement have been taken  (including receipt of duly executed payoff letters, UCC-3  termination statements and landlords’ and bailees’ waiver and  consent agreements).  (b) Certificates and Opinions. The Agent shall have received the following, each of  which shall be originals or telecopies (followed promptly by originals) unless otherwise specified,  each properly executed by a Responsible Officer of the signing Borrower, each dated the First  Amendment Effective Date (or, in the case of certificates of governmental officials, a recent date  before the First Amendment Effective Date) and each in form and substance reasonably satisfactory  to the Agent and each of the Lenders:  (i) such certificates of resolutions or other action, incumbency certificates  and/or other certificates of Responsible Officers of each Borrower as the  Agent may reasonably require evidencing the identity, authority and  capacity of each Responsible Officer thereof authorized to act as a  Responsible Officer in connection with this Amendment and the other  Loan Documents to which such Borrower is a party;   (ii) such documents and certifications as the Agent may reasonably require to  evidence that each Borrower is duly organized, incorporated, established  or formed, and that each Borrower is validly existing, in good standing  and, solely in the case of the Borrowers, qualified to engage in business in  each jurisdiction where its ownership, lease or operation of properties or  the conduct of its business requires such qualification, except to the extent  that failure to do so could not reasonably be expected to have a Material  Adverse Effect;   (iii) a certificate, in form and substance satisfactory to the Agent, signed by a  Responsible Officer of the Borrowers certifying that the Borrowers,  individually and taken as a whole with their Consolidated Subsidiaries, are  Solvent;  

 

  3  (iv) a favorable opinion of Baker & McKenzie, LLP, counsel to the Borrowers,  addressed to the Agent and each Lender as to those matters concerning the  Borrowers and the Loan Documents as the Required Lenders may  reasonably request;  (v) a certificate signed by a Responsible Officer of the Borrowers certifying  (A) that the conditions specified in Section 3.02 of the Credit Agreement  have been satisfied, (B) the conditions specified in this Section 2.1 have  been satisfied and (C) that there has been no event or circumstance since  the date of the financial statements most recently delivered pursuant to  Section 5.01(a)(iv) of the Credit Agreement that has had or could be  reasonably expected to have, either individually or in the aggregate, a  Material Adverse Effect.  (c) Default.  After giving effect to this Amendment, no Default or Event of Default  shall exist.  (d) Fees, Costs and Expenses.  The Agent shall have received from the Borrowers:  (i) for the account of each Lender that executes and delivers to the Agent a  signature page to this Amendment on or before the First Amendment Effective Date (each  such Lender, a “Consenting Lender” and, collectively, the “Consenting Lenders”), an  amendment fee in an amount equal to five (5) basis points on the aggregate Revolving  Credit Commitments of such Consenting Lender (after giving effect to this Amendment);  (ii) such other fees, costs and expenses that are payable in connection with the  consummation of the transactions contemplated hereby and Holland & Knight LLP shall  have received from the Borrowers payment of all outstanding fees and expenses previously  incurred and all fees and expenses incurred in connection with this Amendment.  (e) Miscellaneous.  All other documents and legal matters in connection with the  transactions contemplated by this Amendment shall be reasonably satisfactory in form and  substance to the Agent and its counsel.  Article 3   MISCELLANEOUS  3.1 Amended Terms.  On and after the First Amendment Effective Date, all references to the  Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as amended  by this Amendment.  Except as specifically amended hereby or otherwise agreed, the Credit Agreement is  hereby ratified and confirmed and shall remain in full force and effect according to its terms.  3.2 FATCA.  For purposes of determining withholding Taxes imposed under the Foreign  Account Tax Compliance Act (FATCA), from and after the First Amendment Effective Date, the Borrowers  and the Agent shall treat (and the Lenders hereby authorize the Agent to treat) the Credit Agreement as not  qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471- 2(b)(2)(i).  3.3 Representations and Warranties of Borrowers.  Each Borrower represents and warrants  as follows:  

 

  4  (a) It has taken all necessary action to authorize the execution, delivery and  performance of this Amendment.  (b) This Amendment has been duly executed and delivered by such Borrower and  constitutes such Borrower’s legal, valid and binding obligation, enforceable in accordance with its  terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization,  fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally  and (ii) general principles of equity (regardless of whether such enforceability is considered in a  proceeding at law or in equity).  (c) No consent, approval, authorization or order of, or filing, registration or  qualification with, any court or governmental authority or third party is required in connection with  the execution, delivery or performance by such Person of this Amendment.  (d) The representations and warranties of such Borrower and each other Borrower  contained in Article IV of the Credit Agreement or any other Loan Document, or which are  contained in any document furnished at any time under or in connection therewith, are true and  correct in all material respects on and as of the First Amendment Effective Date, except that (i)  such representations and warranties that specifically refer to an earlier date shall be true and correct  in all material respects as of such earlier date and (ii) such representations and warranties shall be  true and correct in all respects to the extent they are qualified by a materiality standard.  (e) As of the First Amendment Effective Date, no event has occurred and is continuing  which constitutes a Default or an Event of Default.  (f) The Obligations are not reduced or modified by this Amendment and are not  subject to any offsets, defenses or counterclaims.  3.4 Reaffirmation of Obligations.  Each Borrower hereby ratifies the Credit Agreement and  each other Loan Document to which it is a party, and acknowledges and reaffirms (a) that it is bound by all  terms of the Credit Agreement and each such Loan Document applicable to it and (b) that it is responsible  for the observance and full performance of its respective Obligations.  3.5 Loan Document.  This Amendment shall constitute a Loan Document under the terms of  the Credit Agreement.  3.6 Expenses.  The Borrowers agree to pay all reasonable costs and expenses of the Agent in  connection with the preparation, execution and delivery of this Amendment, including without limitation  the reasonable fees and expenses of the Agent’s legal counsel.  3.7 Further Assurances.  The Borrowers agree to promptly take such action, upon the request  of the Agent, as is necessary to carry out the intent of this Amendment.  3.8 Entirety.  This Amendment and the other Loan Documents embody the entire agreement  among the parties hereto and supersede all prior agreements and understandings, oral or written, if any,  relating to the subject matter hereof.  3.9 Counterparts; Telecopy.  This Amendment may be in the form of an Electronic Record  and may be executed using Electronic Signatures (including, without limitation, facsimile and .pdf) and  shall be considered an original, and shall have the same legal effect, validity and enforceability as a paper  record.  This Amendment may be executed in as many counterparts as necessary or convenient, including  

 

  5  both paper and electronic counterparts, but all such counterparts are one and the same Amendment.   For  the avoidance of doubt, the authorization under this paragraph may include, without limitation, use or  acceptance by the Agent of a manually signed paper Communication which has been converted into  electronic form (such as scanned into PDF format), or an electronically signed Communication converted  into another format, for transmission, delivery and/or retention.  3.10 No Actions, Claims, Etc.  As of the date hereof, each of the Borrowers hereby  acknowledges and confirms that it has no knowledge of any actions, causes of action, claims, demands,  damages and liabilities of whatever kind or nature, in law or in equity, against the Agent, the Lenders, or  the Agent’s or the Lenders’ respective officers, employees, representatives, agents, counsel or directors  arising from any action by such Persons, or failure of such Persons to act under the Credit Agreement on  or prior to the date hereof.    3.11 GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND  CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK,  INCLUDING FOR SUCH PURPOSES SECTIONS 5-1401 AND 5-1402 OF THE GENERAL  OBLIGATIONS LAW OF THE STATE OF NEW YORK.  3.12 Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit  of the parties hereto and their respective successors and permitted assigns.  3.13 Consent to Jurisdiction; Service of Process; Waiver of Jury Trial.  The jurisdiction,  service of process and waiver of jury trial provisions set forth in Sections 8.10 and 8.12 of the Credit  Agreement are hereby incorporated by reference, mutatis mutandis.  

 

  Scholastic Inc.  First Amendment to Credit Agreement  IN WITNESS WHEREOF the parties hereto have caused this Amendment to be duly executed on  the date first above written.    BORROWERS:    SCHOLASTIC CORPORATION  By:  /s/ Gil A. Dickoff   Name:  Gil A. Dickoff  Title:  Senior Vice President and Treasurer    SCHOLASTIC INC.    By:  /s/ Gil A. Dickoff     Name:  Gil A. Dickoff  Title:  Senior Vice President and Treasurer 

 

  Scholastic Inc.  First Amendment to Credit Agreement  AGENT:    BANK OF AMERICA, N.A.,    as the Agent      By: /s/Linda Z. Mackey            Name: Linda Z. Mackey         Title:   Vice President  

 

  Scholastic Inc.  First Amendment to Credit Agreement   LENDERS:     BANK OF AMERICA, N.A.,    as a Lender      By: /s/ Jana L. Baker            Name: Jana L. Baker         Title:   Senior Vice President  

 

  Scholastic Inc.  First Amendment to Credit Agreement  WELLS FARGO BANK, NATIONAL ASSOCIATION,    as a Lender       By: /s/ William A. DeMilt, Jr.             Name: William A. DeMilt, Jr.         Title: Senior Vice President  

 

  Scholastic Inc.  First Amendment to Credit Agreement  TRUIST BANK (formerly known as Branch Banking  and Trust Company),    as a Lender       By:  /s/ W. Scott Ficke              Name:  W. Scott Fricke         Title:    Senior Vice President     

 

  Scholastic Inc.  First Amendment to Credit Agreement  FIFTH THIRD BANK,    as a Lender       By:  /s/ Valerie Schanzer              Name: Valerie Schanzer         Title:   Managing Director     

 

  Scholastic Inc.  First Amendment to Credit Agreement  CAPITAL ONE NATIONAL ASSOCIATION,    as a Lender       By:  /s/ Charlie Trisiripisal            Name:  Charlie Trisiripisal         Title:     Duly Authorized Signatory     

 

  Scholastic Inc.  First Amendment to Credit Agreement  HSBC BANK USA, NATIONAL ASSOCIATION,    as a Lender       By:  /s/ Jack Kelly              Name: Jack Kelly         Title:   Vice President #23204     

 

  Scholastic Inc.  First Amendment to Credit Agreement  THE GOVERNOR AND COMPANY OF THE BANK  OF IRELAND    as a Lender       By:  /s/ Rachel Kelly              Name: Rachel Kelly         Title:   Manager, Corporate Banking      

 

  Scholastic Inc.  First Amendment to Credit Agreement  CITIBANK, N.A.    as a Lender       By: /s/ Richard Harte Thompson            Name:  Richard Harte Thompson         Title:    Vice President  

 

  Scholastic Inc.  First Amendment to Credit Agreement  HSBC UK BANK PLC,    as a Lender       By:  /s/ Steve Sherrat             Name:  Steve Sherrat         Title:    Regional Director    

 

  Exhibit A  Amended Credit Agreement  EXHIBIT A    AMENDED CREDIT AGREEMENT    [See attached]  

 

Execution Version    Exhibit A to the First Amendment to Credit Agreement, dated as of December 16, 2020    Published Deal CUSIP Number – 807068AF8  Published Revolving Credit Facility  CUSIP Number – 807068AG6              CREDIT AGREEMENT  Dated as of January 5, 2017  among  SCHOLASTIC CORPORATION  and  SCHOLASTIC INC.  as Borrowers  and  THE INITIAL LENDERS NAMED HEREIN  as Initial Lenders  and  BRANCH BANKING AND TRUST COMPANY  as Documentation Agent,  WELLS FARGO BANK, NATIONAL ASSOCIATION  as Syndication Agent,  CAPITAL ONE NATIONAL ASSOCIATION, FIFTH THIRD BANK and HSBC BANK USA,  NATIONAL ASSOCIATION  as Co-Agents  and  BANK OF AMERICA, N.A.  as Administrative Agent          MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATEDBOFA SECURITIES, INC.  and WELLS FARGO SECURITIES, LLC as Joint Lead Arrangers and Joint Bookrunners  

 

TABLE OF CONTENTS    Page    i    TABLE OF CONTENTS  Page  ARTICLE I DEFINITIONS AND ACCOUNTING TERMS 1  SECTIONSection 1.01 ................................................................................ Certain Defined  Terms ................................................................................................... 1  SECTIONSection 1.02 ........................... Computation of Time Periods; Other Interpretive  Provisions ....................................................................................... 1621  SECTIONSection 1.03 ....................................................................................... Accounting  Terms ............................................................................................. 1722  SECTIONSection 1.04 ................................................................................ Letter of Credit  Amounts ......................................................................................... 1823  ARTICLE II AMOUNTS AND TERMS OF THE ADVANCES .................................. 1823  SECTIONSection  2.01................................................................................... Commitments  1823  SECTIONSection 2.02 .......................................................... Making the Revolving Credit  Advances ........................................................................................ 1823  SECTIONSection  2.03....................................................................................... [Reserved.]  2025  SECTIONSection 2.04 ......................................................................................... Swingline  Advances ........................................................................................ 2025  SECTIONSection 2.05 ...................................................... Termination or Reduction of the  Commitments ................................................................................. 2228  SECTIONSection 2.06 .. Repayment of Revolving Credit Advances, Swingline Advances  and Letter of Credit Advances; Evidence of Debt ......................... 2328  SECTIONSection 2.07 . Interest on Revolving Credit Advances, Swingline Advances and  Letter of Credit Advances .............................................................. 2329  SECTIONSection 2.08 ..................................................................................... Interest Rate  Determination ................................................................................ 2429  SECTIONSection 2.09 ....................................... Optional Conversion of Revolving Credit  Advances ........................................................................................ 2530  SECTIONSection 2.10 .................................................... Prepayments of Revolving Credit  Advances ........................................................................................ 2630  SECTIONSection 2.11 ................................ Increased Costs; Reserves on Eurodollar Rate  Advances ........................................................................................ 2731  

 

TABLE OF CONTENTS  (continued)  Page    ii   iii 10  SECTIONSection  2.12........................................................................................... Illegality  2833  SECTIONSection 2.13 ................................................................................... Payments and  Computations ................................................................................. 2933  SECTIONSection  2.14................................................................................................ Taxes  3035  SECTIONSection 2.15 ....................................................................... Sharing of Payments,  Etc .................................................................................................. 3539  SECTIONSection 2.16 .......................................................................................... Letters of  Credit.............................................................................................. 3540  SECTIONSection 2.17 ............................................................................................... Use of  Proceeds ......................................................................................... 4347  SECTION 2.18 Increase in the Aggregate Commitments ........................................... 43  SECTION  Section 2.18 Inability to Determine Rates ............... Error! Bookmark not defined.  Section 2.19 Obligations and Communications of the Borrowers ...................... 4550  SECTIONSection 2.20 ............................................................................... Subrogation and  Contribution ................................................................................... 4551  SECTIONSection  2.21.................................................................................................. Fees  4551  SECTIONSection 2.22 ........................................................................................ Defaulting  Lenders ........................................................................................... 4651  SECTIONSection 2.23 ......................................... Mitigation Obligations; Replacement of  Lenders ........................................................................................... 4854  SECTIONSection 2.24 ................................................................................................. Cash  Collateral ........................................................................................ 4854  ARTICLE III CONDITIONS TO EFFECTIVENESS AND LENDING ........................ 4955  SECTIONSection 3.01 ................................................................... Conditions Precedent to  Effectiveness .................................................................................. 4955  SECTIONSection 3.02 ......... Conditions Precedent to each Borrowing, each Issuance and  Renewal of Letters of Credit and each Increase  Date .................................................................................................... 51  Error! Bookmark not defined.  

 

TABLE OF CONTENTS  (continued)  Page    iii   iii 10  SECTIONSection 3.03 ......................................................... Determinations Under Section  3.01................................................................................................. 5157  ARTICLE IV REPRESENTATIONS AND WARRANTIES.......................................... 5157  SECTIONSection 4.01 ............................................ Representations and Warranties of the  Borrowers ....................................................................................... 5157  ARTICLE V COVENANTS OF THE BORROWERS................................................... 5360  SECTIONSection 5.01 ...................................................................................... Affirmative  Covenants ....................................................................................... 5360  SECTIONSection 5.02 ........................................................................................... Negative  Covenants ....................................................................................... 5664  SECTIONSection 5.03 .......................................................................................... Financial  Covenants ....................................................................................... 5968  ARTICLE VI EVENTS OF DEFAULT ........................................................................... 5968  SECTIONSection 6.01 .......................................................................................... Events of  Default............................................................................................ 5968  SECTIONSection 6.02 .................................................................................. Application of  Funds .............................................................................................. 6171  ARTICLE VII THE AGENT ............................................................................................. 6272  SECTIONSection 7.01 ............................................................................. Appointment and  Authority ........................................................................................ 6272  SECTIONSection 7.02 ........................................................................................ Rights as a  Lender ............................................................................................ 6373  SECTIONSection 7.03 ...................................................................................... Exculpatory  Provisions ....................................................................................... 6373  SECTIONSection 7.04 ...................................................................................... Reliance by  Agent .............................................................................................. 6474  SECTIONSection 7.05 ................................................................................... Delegation of  Duties ............................................................................................. 6474  SECTIONSection 7.06 .................................................................................. Resignation of  Agent .............................................................................................. 6475  SECTIONSection 7.07 .................................................. Non-Reliance on Agent and Other  Lenders ........................................................................................... 6676  SECTIONSection 7.08 .............................................................................. No Other Duties,  Etc .................................................................................................. 6677  

 

TABLE OF CONTENTS  (continued)  Page    iv   iii 10  SECTIONSection 7.09 ................................................................ Agent May File Proofs of  Claim ...................................................................................... 66; Credit  Bidding ................................................ Error! Bookmark not defined.  Section 7.10 Collateral Matters................................ Error! Bookmark not defined.  Section 7.11 Secured Cash Management Agreements and Secured Hedge  Agreements ......................................... Error! Bookmark not defined.  ARTICLE VIII MISCELLANEOUS .................................................................................. 6779  SECTIONSection 8.01 ................................................................................... Amendments,  Etc .................................................................................................. 6779  SECTIONSection 8.02 ............................................................................................ Notices,  Etc .................................................................................................. 6880  SECTIONSection 8.03 ..................................................................... No Waiver; Remedies;  Enforcement ................................................................................... 6982  SECTIONSection 8.04 ........................................................................ Costs and Expenses;  Indemnity ....................................................................................... 7083  SECTIONSection 8.05 ..................................................................................... Right of Set- off ................................................................................................... 7285  SECTIONSection 8.06 ............................................................................................ Binding  Effect .............................................................................................. 7285  SECTIONSection 8.07 .............................................................................. Assignments and  Participations.................................................................................. 7285  SECTIONSection 8.08 ................................................... Treatment of Certain Information;  Confidentiality ............................................................................... 7790  SECTIONSection 8.09 ................................................................ No Advisory or Fiduciary  Responsibility ................................................................................ 7891  SECTIONSection 8.10 .......................................................... Governing Law; Jurisdiction,  Etc ..................................................................................................... 78.  Error! Bookmark not defined.  SECTIONSection 8.11 ............................................. Execution in Counterparts; Electronic  Execution ....................................................................................... 7992  SECTIONSection 8.12 ................................................................................. Waiver of Jury  Trial ................................................................................................ 8093  SECTIONSection 8.13 ...................................................................................... USA Patriot  Act .................................................................................................. 8093  SECTIONSection 8.14 ................................................................................ Replacement of  Lenders ........................................................................................... 8093  

 

TABLE OF CONTENTS  (continued)  Page    v   iii 10  SECTIONSection 8.15 ...................................................... Survival of Representations and  Warranties ...................................................................................... 8194  SECTIONSection 8.16 .................................................................................... Payments Set  Aside .............................................................................................. 8194  SECTIONSection 8.17 ......... Acknowledgement and Consent to Bail-In of EEA Financial  Institutions...................................................................................... 8195  Section 8.18 Acknowledgment Regarding Any Supported QFCs Error! Bookmark  not defined.        Schedules   Commitment Schedule  Schedule 1.01(a)  – Certain Addresses for Notices  Schedule 2.16(h)  – Existing Letter of Credit  Schedule 4.01(i)  – Subsidiaries  Schedule 5.02(a)  – Existing Liens  Schedule 5.02(b) – Existing Debt    Exhibits   Exhibit A – Form of Revolving Credit Note  Exhibit B-1 – Form of Notice of Revolving Credit Borrowing  Exhibit B-2 – Form of Notice of Swingline Borrowing  Exhibit C – Form of Assignment and Assumption  Exhibit D – Form of Opinion of Counsel for the Borrowers  Exhibit E – Form of Financial Covenants Compliance Certificate  Exhibit F – List of Closing Documents  Exhibit G – Administrative Questionnaire  Exhibit H –   Forms of U.S. Tax Compliance Certificates  Exhibit I – Form of Secured Party Designation Notice    

 

    CREDIT AGREEMENT  Dated as of January 5, 2017  This CREDIT AGREEMENT is by and among SCHOLASTIC CORPORATION, a Delaware  corporation (the “Holding Company”), and SCHOLASTIC INC., a New York corporation (the  “Operating Company”; the Holding Company and the Operating Company are, collectively, the  “Borrowers” and, individually, each a “Borrower”), the banks, financial institutions and other institutional  lenders (the “Initial Lenders”) listed on the signature pages hereof, BRANCH BANKING AND TRUST  COMPANY, as documentation agent, WELLS FARGO BANK, NATIONAL ASSOCIATION, as  syndication agent, CAPITAL ONE NATIONAL ASSOCIATION, FIFTH THIRD BANK and HSBC  BANK USA, NATIONAL ASSOCIATION, each as co-agents, and BANK OF AMERICA, N.A.  (“Bank of America”), as administrative agent (the “Agent”) for the Lenders (as hereinafter defined).  The  parties hereto hereby agree as follows:  ARTICLE IArticle I    DEFINITIONS AND ACCOUNTING TERMS  ARTICLE IISection 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):  “Acquisition” means, as to any Person, any direct or indirect acquisition by such Person,  whether by means of (a) the purchase or other acquisition of the capital stock and other ownership  interests of another Person resulting in the acquisition of controlling interest (including the purchase  of an option, warrant or convertible or similar type security to acquire such a controlling interest at  the time it becomes exercisable by the holder thereof), whether by purchase of such equity or other  ownership interest or upon the exercise of an option or warrant for, or conversion of securities into,  such equity or other ownership interest, or (b) the purchase or other acquisition (in one transaction or  a series of transactions) of assets of another Person which constitute all or substantially all of the  assets of such Person or of a division, line of business or other business unit of such Person.  “Additional Secured Obligations” means (a) all obligations arising under Secured Cash  Management Agreements and Secured Hedge Agreements and (b) all costs and expenses incurred in  connection with enforcement and collection of the foregoing, including the fees, charges and  disbursements of counsel, in each case whether direct or indirect (including those acquired by  assumption), absolute or contingent, due or to become due, now existing or hereafter arising and  including interest, expenses and fees that accrue after the commencement by or against any Borrower  or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the  debtor in such proceeding, regardless of whether such interest, expenses and fees are allowed claims  in such proceeding; provided that the Additional Secured Obligations of a Borrower shall exclude any  Excluded Swap Obligations with respect to such Borrower.  “Administrative Questionnaire” means an Administrative Questionnaire in substantially the  form of Exhibit G or any other form approved by the Agent.    “Advance” means a Revolving Credit Advance, a Swingline Advance, or a Letter of Credit  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 officer of such Person.   

 

    2      For purposes of this definition, the term “control” (including the terms “controlling”, “controlled by”  and “under common control with”) of a Person means the possession, direct or indirect, of the power  to vote 5% or more of the Voting Stock of such Person or to direct or cause the direction of the  management and policies of such Person, whether through the ownership of Voting Stock, by contract  or otherwise.  “Agent’s Account” means, at any time, the account of the Agent most recently designated by  it for the applicable purpose by notice to the Lenders.  “Agreement” means this Credit Agreement, including all schedules, exhibits and annexes  hereto.  “Applicable Lending Office” means, as to the Agent, the Issuing Bank or any Lender, the  office or offices of such Person described as such in such Person’s Administrative Questionnaire, or  such other office or offices as such Person may from time to time notify the Borrowers and the Agent;  which office may include any Affiliate of such Person or any domestic or foreign branch of such  Person or such Affiliate.  “Applicable Rate” means, for any day,(a) with respect to any Eurodollar Rate Advance or any  Base Rate Advance or with respect to the facility fees payable hereunder, as the case may be, the  applicable rate per annum set forth below under the caption “Eurodollar Spread”, “Base Rate Spread”  or “Facility Fee Rate”, as the case may be, determined by reference to the Consolidated Debt Ratio as  of the most recent determination date:  Consolidated Debt  Ratio  Eurodollar Spread Base Rate Spread Facility Fee Rate  Level 1  Less than 0.20 to 1.0  1.175% 0.175% 0.20%  Level 2  Greater than or equal  to 0.20 to 1.0 but less  than 0.30 to 1.0  1.25% 0.25% 0.25%  Level 3 Greater  than or equal to 0.30 to  1.0 but less than 0.40 to  1.0  1.325% 0.325% 0.30%  Level 4 Greater  than or equal to 0.40 to  1.0 but less than 0.50 to  1.0  1.40% 0.40% 0.35%  Level 5 Greater  than or equal to 0.50 to  1.0  1.60% 0.60% 0.40%    

 

    3      For purposes(i) for any day on or after the First Amendment Effective Date but prior to the delivery by  the Borrowers of the foregoing, (a) the Applicable Rate shall be determined as of the end of each fiscal  quarter of the Holding Company based upon the Holding Company’s annual or quarterly Consolidated  financial statements deliveredand related certificates required pursuant to Section 5.01(a), and each  change in the Applicable Rate resulting from a change in the Consolidated Debt Ratio shall be effective  during the period commencing on and including the date that is five (5) Business Days after such date(iv)  for the fiscal year of delivery to the Agent of such Consolidated financial statements indicating such  change and ending on the date immediately preceding the effective date of the next such change, provided  that the Consolidated Debt Ratio shall be deemed to be in Level 5Borrowers ending May 31, 2021 the  rate per annum equal to, (Ax) atwith respect to any time that an Event of Default has occurredEurodollar  Rate Advance, 2.25% and is continuing or (By) at the option of the Agent or at the request of the  Required Lenders ifwith respect to any Base Rate Advance, 1.25%, and (ii) after the delivery by the  Borrowers fail to deliver the annual or quarterly Consolidatedof the financial statements and related  certificates required to be delivered pursuant to Section 5.01, during the period beginning five (5)  Business Days following(a)(iv) for the expirationfiscal year of the time for delivery thereof until the date  that is five (5) Business Days after such consolidated financial statements are delivered.  Notwithstanding anything to the contrary contained in this definitionBorrowers ending May 31, 2021, the  rate per annum equal to, (ax) the determination of the Applicable Rate for any period shall be subjectwith  respect to any Eurodollar Rate Advance, 1.60% and (y) with respect to any Base Rate Advance, 0.60%,  and (b) with respect to the provisions offee owing pursuant to Section 2.132.21(fa), and (b) the initial  Applicable Rate shall be set forth in Level 1 until the fifth Business Day immediately following  the date of delivery to the Agent of the  Consolidated financial statements described in the  immediately preceding paragraph for the first fiscal quarter to occur following the Effective Date  indicating such change in the Consolidated Debt Ratio.  Any adjustment in the Applicable Rate  shall be applicable to all Advances then existing or subsequently made or issued.  the rate per annum equal to 0.40%:  “Approved Fund” means any Person (other than a natural person) that is (or will be) engaged  in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of  credit in the ordinary course of its activities and that is administered or managed by (a) a Lender, (b)  an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a  Lender.  “Arranger” means MLPFSBofA Securities, Inc. and Wells Fargo Securities, LLC, each in its  capacity as joint lead arranger and joint bookrunner.   “Assignment and Assumption” means an assignment and assumption entered into by a  Lender and an Eligible Assignee (with the consent of any other party whose consent is required by  Section 8.07), and accepted by the Agent, in substantially the form of Exhibit C hereto or any other  form (including an electronic documentation form generated by use of an electronic platform)  approved by the Agent.  “Assuming Lender” has the meaning specified in Section 2.18(d).    “Available Amount” of any Letter of Credit means, at any time, the maximum amount  available to be drawn under such Letter of Credit at such time (assuming compliance at such time  with all conditions to drawing).  For purposes of computing the amount available to be drawn under  any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with  Section 1.04.  For all purposes of this Agreement, if on any date of determination a Letter of Credit  has expired by its terms but any amount may still be drawn thereunder by reason of the operation of  

 

    4      Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so  remaining available to be drawn.  “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the  applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.  “Bail-In Legislation” means, with respect to any EEA Member Country implementing Article  55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union,  the implementing law for such EEA Member Country from time to time which is described in the EU  Bail-In Legislation Schedule.   “Bank of America” means Bank of America, N.A., and its successors and assigns.  “Bankruptcy Event” means, with respect to any Person, such Person becomes the subject of a  bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator,  custodian, assignee for the benefit of creditors or similar Person charged with the reorganization or  liquidation of its business appointed for it, or, in the good faith determination of the Agent, has taken  any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such  proceeding or appointment.   “Base Rate” means, for any day a fluctuating rate of interest per annum equal to the highest  of (a) the Federal Funds Rate plus 0.50%, (b) the rate of interest in effect for such day as publicly  announced from time to time by Bank of America as its “prime rate,” and (c) the Eurodollar  Rate  plus 1.00%, subject to the interest rate floors set forth therein; provided that if the Base Rate shall be  less than zero, such rate shall be deemed zero for purposes of this Agreement.  The “prime rate” is a  rate set by Bank of America based upon various factors including Bank of America’s costs and  desired return, general economic conditions and other factors, and is used as a reference point for  pricing some loans, which may be priced at, above, or below such announced rate.  Any change in  such prime rate announced by Bank of America shall take effect at the opening of business on the day  specified in the public announcement of such change.  “Base Rate Advance” means a Revolving Credit Advance that bears interest as provided in  Section 2.07(a)(i) or a Swingline Advance, each based on the Base Rate.  “Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is  subject to Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the Code or (c)  any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of  Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.  “Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to  Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the Code or (c) any Person  whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of  ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.  “BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and  interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.  “BofA Securities, Inc.” means BofA Securities, Inc. (or any other registered broker-dealer  wholly-owned by Bank of America Corporation to which all or substantially all of Bank of America  Corporation’s or any of its subsidiaries’ investment banking, commercial lending services or related  businesses may be transferred following the date of this Agreement).  “Borrower Materials” has the meaning specified in Section 5.01.  

 

    5        “Borrowing” means a Revolving Credit Borrowing or a Swingline Advance.  “Business Day” means aany day other than a Saturday, Sunday or other day of the year on  which commercial banks are not required or authorized by law to close under the laws of, or are in  fact are closed, in New York City and, if the applicable Business Day, the state where the Agent’s  Applicable Lending Office is located; provided that if such day relates to any interest rate settings as  to a Eurodollar Rate Advances, on which denominated in Dollars, any fundings, disbursements,  settlements and payments in Dollars in respect of any such Eurodollar Rate Advances, or any other  dealings arein Dollars to be carried on in theout pursuant to this Agreement in respect of any such  Eurodollar Rate Advances, means any such day that is also a London interbank marketBanking Day.  “Cash Collateralize” means, to pledge and deposit with or deliver to the Agent, for the benefit  of one or more of the Issuing Bank, the Swingline Lender (as applicable) or the Lenders, as collateral for  L/C Exposure, the obligations in respect of Swingline Advances, or obligations of the Lenders to fund  participations in respect of either thereof (as the context may require), (a) cash or deposit account  balances, (b) backstop letters of credit entered into on terms, from issuers and in amounts satisfactory to  the Agent and the Issuing Bank, and/or (c) if the Agent and the Issuing Bank or Swingline Lender  shall agree, in their sole discretion, other credit support, in each case, in Dollars and pursuant to  documentation in form and substance satisfactory to the Agent and Issuing Bank or Swingline Lender  (as applicable). “Cash Collateral” shall have a meaning correlative to the foregoing and shall include  the proceeds of such cash collateral and other credit support.    “Cash Management Agreement” means any agreement that is not prohibited by the terms  hereof to provide treasury or cash management services, including deposit accounts, overnight draft,  credit cards, debit cards, p-cards (including purchasing cards and commercial cards), funds transfer,  automated clearinghouse, zero balance accounts, returned check concentration, controlled  disbursement, lockbox, account reconciliation and reporting and trade finance services and other cash  management services.  “Cash Management Bank” means any Person in its capacity as a party to a Cash Management  Agreement that, (a) at the time it enters into a Cash Management Agreement with a Borrower or any  Subsidiary thereof, is a Lender or an Affiliate of a Lender, or (b) at the time it (or its Affiliate)  becomes a Lender, is a party to a Cash Management Agreement with a Borrower or any Subsidiary  thereof, in each case in its capacity as a party to such Cash Management Agreement (even if such  Person ceases to be a Lender or such Person’s Affiliate ceased to be a Lender); provided, however,  that for any of the foregoing to be included as a “Secured Cash Management Agreement” on any date  of determination by the Agent, the applicable Cash Management Bank (other than the Agent or an  Affiliate of the Agent) must have delivered a Secured Party Designation Notice to the Agent prior to  such date of determination.  “Change in Law” means the occurrence, after the Effective Date, of any of the following:  (a)  the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule,  regulation or treaty or in the administration, interpretation, implementation or application thereof by  any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive  (whether or not having the force of law) by any Governmental Authority; provided that  notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and  Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in  connection therewith and (ii) all requests, rules, guidelines or directives promulgated by the Bank for  International Settlements, the Basel Committee on Banking Supervision (or any successor or similar  authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III,  

 

    6      shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or  issued.   “Class”, when used in reference to any Advance or Borrowing, refers to whether such  Advance, or the Advances comprising such Borrowing, are Revolving Credit Advances or Swingline  Advances.  “Code” means the Internal Revenue Code of 1986.  “Collateral” means all of the “Collateral” referred to in the Collateral Documents and all of  the other property that is or is intended under the terms of the Collateral Documents to be subject to  Liens in favor of the Agent for the benefit of the Secured Parties.  “Collateral Documents” means, collectively, the Security Agreement and each of the  collateral assignments, security agreements, pledge agreements, account control agreements or other  similar agreements delivered to the Agent pursuant to the terms hereof or any other Collateral  Document, and each of the other agreements, instruments or documents that creates or purports to  create a Lien in favor of the Agent for the benefit of the Secured Parties.  “Collateral Release Date” means the first date after the First Amendment Effective Date on  which Consolidated EBITDA for each of two consecutive fiscal quarters of the Borrowers then most  recently ended exceeds $125,000,000.  “Commitment” means a Revolving Credit Commitment.   “Commitment Date” has the meaning specified in Section 2.18(b).  “Commitment Schedule” means the Schedule attached hereto identified as such.  “Connection Income Taxes” means Other Connection Taxes that are imposed on or measured  by net income (however denominated) or that are franchise Taxes or branch profits Taxes.    “Consolidated” refers to the consolidation of accounts in accordance with GAAP.   “Consolidated Debt Ratio” shall mean, as of any time, the ratio of (a) Total Consolidated  Debt to (b) the sum of (i) Total Consolidated Debt, (ii) the aggregate value of stockholders’ equity (as  set forth in the then most current consolidated balance sheet of the Holding Company) but excluding  unrealized gains and losses reflected in other comprehensive income in respect of qualified and non- qualified defined benefit pension plans, as well as other post-retirements benefit plans of the  Borrowers and their Consolidated Subsidiaries, and (iii) the aggregate value of all preferred stock (as  set forth in the most current consolidated balance sheet of the Holding Company).  “Consolidated Interest Coverage Ratio” shall meanEBITDA” means, for any period of the  most recent four consecutive fiscal quarters of the Borrowers and their Subsidiaries ending on or  before any date of determination, the ratio ofdetermined on a Consolidated basis, without duplication,  for the Borrowers and their Consolidated Subsidiaries: (a) the sum of (i) net income (or net loss), (ii)  any extraordinary, non-recurring or unusual non-cash losses, (iii) income tax expense, (iv)  depreciation expense, (v) amortization expense (but excluding any amortization of prepublication  costs and expenses) and, (vi) gross interest expense, lessand (vii) from and after the First Amendment  Effective Date, cash charges and cash expenses directly attributable to one-time severance costs and  expenses incurred by the Borrowers in an amount not to exceed (A)  $12,000,000 in the fiscal quarter  of the Borrowers ended August 30, 2020, (B) $5,000,000 in the fiscal quarter of the Borrowers ended  

 

    7      November 30, 2020, (C) $3,000,000 in the fiscal quarter of the Borrowers ending February 28, 2021,  and (D) thereafter, $0, minus (b) any extraordinary, non-recurring or unusual non-cash gains, all as  recorded for such period.  “Consolidated Funded Debt” means, as of any date of determination, for the Borrowers and  their Consolidated Subsidiaries, the sum of: (a) the outstanding principal amount of all obligations,  whether current or long-term, for borrowed money (including Obligations hereunder) and all  obligations evidenced by bonds, debentures, notes, loan agreements or other similar instruments; (b)  all purchase money Debt; (c) the maximum amount available to be drawn under issued and  outstanding letters of credit (including standby and commercial), bankers’ acceptances, bank  guaranties, surety bonds and similar instruments; (d) all obligations in respect of the deferred  purchase price of property or services (other than trade accounts payable in the ordinary course of  business); (e) all Debt in respect of capital leases and synthetic lease obligations; (f) all obligations to  purchase, redeem, retire, defease or otherwise make any payment prior to the Termination Date in  respect of any capital stock issued by any corporation, or any equivalent interests in any other Person,  or any warrant, right or option to acquire such capital stock or equivalent interest, valued, in the case  of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference  plus accrued and unpaid dividends; (g) without duplication, all guarantees with respect to outstanding  Debt of the types specified in clauses (a) through (f) above of Persons other than any Borrower or any  Consolidated Subsidiary; and (h) all Debt of the types referred to in clauses (a) through (g) above of  any partnership or joint venture (other than a joint venture that is itself a corporation or limited  liability company) in which any Borrower or a Consolidated Subsidiary is a general partner or joint  venturer, unless such Debt is expressly made non-recourse to such Borrower or such Subsidiary.  “Consolidated Funded Debt Ratio” shall mean, as of any date of determination, the ratio of  (a) Consolidated Funded Debt as of such date to (b) Consolidated EBITDA for the four fiscal quarter  period of the Borrower then most recently ended.  “Consolidated Interest Coverage Ratio” shall mean, for any period of the most recent four  consecutive fiscal quarters of the Borrowers and their Consolidated Subsidiaries ending on or before  any date of determination, the ratio of (a) Consolidated EBITDA, to (b) gross interest expense, all as  recorded for such period.  “Consolidated Leverage Ratio” shall mean, for any period of the most recent four consecutive  fiscal quarters of the Borrowers and their Consolidated Subsidiaries ending on or before any date of  determination, the ratio of (a) Total Consolidated Debt to (b) Consolidated EBITDA for such period.  “Consolidated Liquidity” means, as of any date of determination, the sum of (ia) net income  (or net loss), (ii) any extraordinary, non-recurring or unusual non-cash losses, (iii) income tax  expense, (iv) depreciation expense, (v) amortization expense (but excluding any amortization of  prepublication costs and expenses) and (vi) gross interest expenseunrestricted cash of the Borrowers  and their Consolidated Subsidiaries as of such date, lessplus (viib) any extraordinary, non-recurring or  unusual non-cash gains,the amount by which the Revolving Credit Availability as of such date  exceeds the aggregate Revolving Credit Exposures of all Lenders as recorded forof such perioddate.  “Consolidated Total Assets” means, as of the date of any determination thereof, total assets of  the Borrowers and their Consolidated Subsidiaries.  “Convert”, “Conversion” and “Converted” each refers to a conversion of Revolving Credit  Advances of one Type into Revolving Credit Advances of the other Type pursuant to Section 2.08 or  2.09 or 2.18.  

 

    8      “Covered Entity” means any of the following:  (a) a “covered entity” as that term is defined  in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (b) a “covered bank” as that term is  defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (c) a “covered FSI” as that  term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).  “Credit Exposure” means, as to any Lender at any time, such Lender’s Revolving Credit  Exposure at such time.  “Credit Party” means the Agent, the Issuing Bank, the Swingline Lender or any other Lender.  “Debt” of any Person means, without duplication, (a) all indebtedness of such Person for  borrowed money, (b) all obligations of such Person for the deferred purchase price of property or  services (other than trade payables incurred in the ordinary course of such Person’s business), (c) all  obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all  obligations of such Person as lessee under leases that have been or should be, in accordance with  GAAP, recorded as capital leases, (e) all obligations, contingent or otherwise, of such Person in  respect of acceptances, letters of credit or similar extensions of credit (other than obligations in  respect of letters of credit issued to provide for the payment of goods or services, to backstop  worker’s compensation obligations or as rental security deposits, in each case incurred in the ordinary  course of business), (f) all Debt of others referred to in clauses (a) through (e) above or clause (g)  below guaranteed directly or indirectly in any manner by such Person, or in effect guaranteed directly  or indirectly by such Person through an agreement (1) to pay or purchase such Debt or to advance or  supply funds for the payment or purchase of such Debt, (2) to purchase, sell or lease (as lessee or  lessor) property, or to purchase or sell services, primarily for the purpose of enabling the debtor to  make payment of such Debt or to assure the holder of such Debt against loss, (3) to supply funds to or  in any other manner invest in the debtor (including any agreement to pay for property or services  irrespective of whether such property is received or such services are rendered) or (4) otherwise to  assure a creditor against loss, and (h) all Debt referred to in clauses (a) through (f) above secured by  (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by)  any Lien on property (including, without limitation, accounts and contract rights) owned by such  Person, even though such Person has not assumed or become liable for the payment of such Debt.  “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other  liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,  rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United  States or other applicable jurisdictions from time to time in effect.  “Default” means any Event of Default or any event that would constitute an Event of Default  but for the requirement that notice be given or time elapse or both.  “Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance  with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.  “Defaulting Lender” means any Lender that (a) has failed, within two (2) Business Days of  the date required to be funded or paid, to (i) fund any portion of its Advances, (ii) fund any portion of  its participations in Letters of Credit or Swingline Advances or (iii) pay over to any Credit Party any  other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender  notifies the Agent in writing that such failure is the result of such Lender’s good faith determination  that a condition precedent to funding (specifically identified and including the particular default, if  any) has not been satisfied, (b) has notified the Borrowers or any Credit Party in writing, or has made  a public statement to the effect, that it does not intend or expect to comply with any of its funding  obligations under this Agreement (unless such writing or public statement indicates that such position  

 

    9      is based on such Lender’s good faith determination that a condition precedent (specifically identified  and including the particular default, if any) to funding a loan under this Agreement cannot be  satisfied) or generally under other agreements in which it commits to extend credit, (c) has failed,  within three (3) Business Days after request by a Credit Party, acting in good faith, to provide a  certification in writing from an authorized officer of such Lender that it will comply with its  obligations (and is financially able to meet such obligations) to fund prospective Advances and  participations in then outstanding Letters of Credit and Swingline Advances under this Agreement,  provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon such  Credit Party’s receipt of such certification in form and substance satisfactory to it and the Agent, or  (d) has or has a direct or indirect parent company that has, (i) become the subject of a Bankruptcy  Event, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for  the benefit of creditors or similar Person charged with reorganization or liquidation of its business or  assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory  authority acting in such a capacity or (iii) become the subject of a Bail-In Action; provided that a  Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity  interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority  so long as such ownership interest does not result in or provide such Lender with immunity from the  jurisdiction of courts within the United States or from the enforcement of judgments or writs of  attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate,  disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the  Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above,  and the effective date of such status, shall be conclusive and binding absent manifest error, and such  Lender shall be deemed to be a Defaulting Lender (subject to Section 2.22) as of the date established  therefor by the Agent in a written notice of such determination, which shall be delivered by the Agent  to the Borrowers, the Issuing Bank, the Swingline Lender and each other Lender promptly following  such determination.  “Designated Jurisdiction” means any country or territory to the extent that such country or  territory is the subject of any Sanction.    “Dollar” and “$” mean lawful money of the United States.    “EEA Financial Institution” means (a) any credit institution or investment firm established in  any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b)  any entity established in an EEA Member Country which is a parent of an institution described in  clause (a) of this definition, or (c) any financial institution established in an EEA Member Country  which is a Subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to  consolidated supervision with its parent.  “EEA Member Country” means any of the member states of the European Union, Iceland,  Liechtenstein, and Norway.  “EEA Resolution Authority” means any public administrative authority or any Person  entrusted with public administrative authority of any EEA Member Country (including any delegee)  having responsibility for the resolution of any EEA Financial Institution.  “Effective Date” has the meaning specified in Section 3.01.  “Eligible Assignee” means any Person that meets the requirements to be an assignee under  Section 8.07 (subject to such consents, if any, required under Section 8.07(b)(iii)).  

 

    10      “Environmental Claim” means (a) any unfulfilled responsibility or liability or unlawful act or  omission under any Environmental Law; (b) any tortious act or omission or breach of contract  pertaining to any Environmental Substance; or (c) any other violation or claim under any  Environmental Law or in respect of any Environmental Substance.  “Environmental Law” and “Environmental Laws” respectively mean any one or more of the  applicable laws pertaining to:  (a) any emission, discharge, release, runoff, disposal or presence in the  environment of any Environmental Substance; (b) any cleanup, containment, manufacturing,  treatment, handling, transportation, storage or sale of or other activity pertaining to any  Environmental Substance; or (c) any other peril to public or occupational health or safety or to the  environment that may be posed by an Environmental Substance.  “Environmental Substance” means any toxic substance, hazardous material, contaminant,  waste, pollutant or other similar product or substance that may pose a threat to public or occupational  health or safety or to the environment.  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from  time to time (and any successors thereto), and the regulations promulgated and rulings issued  thereunder.  “ERISA Affiliate” means any Person that (i) for purposes of Title IV of ERISA is a member  of any of the Borrowers’ controlled group, or (ii) is under common control with any of the Borrowers,  within the meaning of Section 414 of the Internal Revenue Code.  “ERISA Event” means (a) (i) the occurrence of a reportable event, within the meaning of  Section 4043 of ERISA, with respect to any Plan unless the 30-day notice requirement with respect to  such event has been waived by the PBGC, or (ii) the requirements of subsection (1) of Section  4043(b) of ERISA (without regard to subsection (2) of such Section) are met with a contributing  sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event described in paragraph  (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with respect  to such Plan within the following 30 days; (b) the application for a minimum funding waiver with  respect to a Plan; (c) the provision by the administrator of any Plan of a notice of intent to terminate  such 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); (d) the cessation of operations at a facility of  either Borrower or any ERISA Affiliate in the circumstances described in Section 4062(e) of ERISA;  (e) the withdrawal by either or either Borrower or any 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; (f) the conditions for the imposition of a lien under Section 303(k) of ERISA shall have been  met with respect to any Plan; (g) the adoption of an amendment to a Plan requiring the provision of  security to such Plan pursuant to Section 206(g) of ERISA; or (h) the institution by the PBGC of  proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence of any event or  condition described in Section 4042 of ERISA that constitutes grounds for the termination of, or the  appointment of a trustee to administer, a Plan.  “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by  the Loan Market Association (or any successor person), as in effect from time to time.  “Eurodollar Rate” means:   (a) for any Interest Period with respect to a Eurodollar Rate Advance, the rate per  annum equal to the London Interbank Offered Rate (“LIBOR”), or a comparable or successor  rate which rate is approved by the Agent, as published on the applicable Bloomberg screen  

 

    11      page (or such other commercially available source providing such quotations as may be  designated by the Agent from time to time) (in such case, the “LIBOR Rate”) at or about  11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest  Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term  equivalent to such Interest Period; and    (b) for any interest calculation with respect to a Base Rate Advance on any date, the  rate per annum equal to the LIBOR Rate, at or about 11:00 a.m., London time, two (2)  Business Days prior to such date for Dollar deposits with a term of one (1) month  commencing that day;    provided that:  (i) to the extent a comparable or successor rate is approved by the Agent in  connection herewith, the approved rate shall be applied in a manner consistent with market practice;  provided, further that to the extent such market practice is not administratively feasible for the Agent,  such approved rate shall be applied in a manner as otherwise reasonably determined by the Agent and  (ii) if the Eurodollar Rate shall be less than zero0.25%, such rate shall be deemed zero0.25% for  purposes of this Agreement.  “Eurodollar Rate Advance” means a Revolving Credit Advance that bears interest as  provided in Section 2.07(a)(ii) and based on clause (a) of the definition of “Eurodollar Rate”.  “Events of Default” has the meaning specified in Section 6.01.  “Excluded Swap Obligation” means, with respect to any Borrower, any Swap Obligation if,  and to the extent that, all or a portion of the grant by such Borrower of a Lien to secure, such Swap  Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or  any rule, regulation or order of the Commodity Futures Trading Commission (or the application or  official interpretation thereof) by virtue of such Borrower’s failure for any reason to constitute an  “eligible contract participant” as defined in the Commodity Exchange Act (determined after giving  effect to Section 10.11 and any other “keepwell”, support or other agreement for the benefit of such  Borrower and any and all guarantees of such Borrower’s Swap Obligations by other Borrowers) at the  time the grant by such Borrower of a Lien, becomes effective with respect to such Swap Obligation.   If a Swap Obligation arises under a Master Agreement governing more than one Swap Contract, such  exclusion shall apply only to the portion of such Swap Obligation that is attributable to Swap  Contracts for which such Lien is or becomes excluded in accordance with the first sentence of this  definition.  “Excluded Taxes” means any of the following Taxes imposed on or with respect to any  Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed  on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in  each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its  principal office or, in the case of any Lender, its Applicable Lending Office located in, the  jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection  Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or  for the account of such Lender with respect to an applicable interest in an Advance or Commitment  pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Advance  or Commitment (other than pursuant to an assignment request by the Borrowers under Section 8.07)  or (ii) such Lender changes its Applicable Lending Office, except in each case to the extent that,  pursuant to Section 2.14(a)(ii), (a)(iii) or (c), amounts with respect to such Taxes were payable either  to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender  immediately before it changed its Applicable Lending Office, (c) Taxes attributable to such  

 

    12      Recipient’s failure to comply with Section 2.14(e), and (d) any U.S. federal withholding Taxes  imposed pursuant to FATCA.   “Existing Credit Agreement” means the Credit Agreement dated as of June 1, 2007 among  the Borrowers, the lenders parties thereto and JPMorgan Chase Bank, National Association, as agent,  as amended, supplemented or otherwise modified prior to the Effective Date.  “Existing Letter of Credit” has the meaning specified in Section 2.16(h).  “Facility” means the Revolving Credit Facility or the Letter of Credit Facility.  “FATCA” means Sections 1471 through 1474 of the Internal Revenue Code, as of the date of  this Agreement (or any amended or successor version that is substantively comparable and not  materially more onerous to comply with), any current or future regulations or official interpretations  thereof, any agreement entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code and  any intergovernmental agreement between a non-U.S. jurisdiction and the United States with respect  to the foregoing.  “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average  of the rates on overnight federal funds transactions with members of the Federal Reserve System, as  published by the Federal Reserve Bank of New York on the Business Day next succeeding such day;  provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such  rate on such transactions on the next preceding Business Day as so published on the next succeeding  Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the  Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole  multiple of 1/100 of 1%) charged to Bank of America on such day on such transactions as determined  by the Agent.  “Fee Letter” means the letter agreement, dated November 22, 2016, among the Borrowers, the  Agent and MLPFSBofA Securities, Inc.    “First Amendment Effective Date” means December 16, 2020.    “Foreign Lender” means, with respect to any Borrower (a) if such Borrower is a U.S. Person,  a Lender that is not a U.S. Person, and (b) if such Borrower is not a U.S. Person, a Lender that is  resident or organized under the laws of a jurisdiction other than that in which such Borrower is  resident for tax purposes.  For purposes of this definition, the United States, each State thereof and the  District of Columbia shall be deemed to constitute a single jurisdiction.   “Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to the  Issuing Bank, such Defaulting Lender’s Pro Rata Share of the outstanding L/C Exposure other than  L/C Exposure as to which such Defaulting Lender’s participation obligation has been reallocated to  other Lenders or Cash Collateralized in accordance with the terms hereof, and (b) with respect to the  Swingline Lender, such Defaulting Lender’s Pro Rata Share of Swingline Advances other than  Swingline Advances as to which such Defaulting Lender’s participation obligation has been  reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof.     “GAAP” has the meaning specified in Section 1.03.  “Governmental Authority” means the government of the United States of America, any other  nation or any political subdivision thereof, whether state or local, and any agency, authority,  

 

    13      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.  “Incremental Assumption Agreement” has the meaning specified in Section  2.18(d)(ii).   Increase Date” has the meaning specified in Section 2.18(a).  “Increasing Lender” has the meaning specified in Section 2.18(b)Hedge Bank” means  any Person in its capacity as a party to a Swap Contract that, (a) at the time it enters into a Swap  Contract not prohibited by the terms of this Agreement, is a Lender or an Affiliate of a Lender, or  (b) at the time it (or its Affiliate) becomes a Lender, is a party to a Swap Contract not prohibited by  the terms of this Agreement, in each case, in its capacity as a party to such Swap Contract (even if  such Person ceases to be a Lender or such Person’s Affiliate ceased to be a Lender); provided, in the  case of a Secured Hedge Agreement with a Person who is no longer a Lender (or Affiliate of a  Lender), such Person shall be considered a Hedge Bank only through the stated termination date  (without extension or renewal) of such Secured Hedge Agreement and provided further that for any of  the foregoing to be included as a “Secured Hedge Agreement” on any date of determination by the  Agent, the applicable Hedge Bank (other than the Agent or an Affiliate of the Agent) must have  delivered a Secured Party Designation Notice to the Agent prior to such date of determination.  “Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with  respect to any payment made by or on account of any obligation of any Borrower under any Loan  Document and (b) to the extent not otherwise described in clause (a), Other Taxes   “Interest Period” means, for each Eurodollar Rate Advance comprising part of the same  Revolving Credit Borrowing, the period commencing on the date such Eurodollar Rate Advance is  disbursed or Converted to or continued as a Eurodollar Rate Advance and ending on the date one (1),  two (2), three (3) or six (6) months thereafter (in each case, subject to availability), as selected by the  Borrowers in their Loan Notice; provided that:  (a) any Interest Period that would otherwise end on a day that is not a Business Day  shall be extended to the next succeeding Business Day unless such Business Day falls in  another calendar month, in which case such Interest Period shall end on the next preceding  Business Day;    (b) any Interest Period that begins on the last Business Day of a calendar month (or on  a day for which there is no numerically corresponding day in the calendar month at the end of  such Interest Period) shall end on the last Business Day of the calendar month at the end of  such Interest Period; and    (c) no Interest Period shall extend beyond the Termination Date of the Facility under  which such Advance was made.  “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time to  time, and the regulations promulgated and rulings issued thereunder.  “ISP” means, with respect to any Letter of Credit, the “International Standby Practices 1998”  published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof  as may be in effect at the time of issuance).    

 

    14      “Issuing Bank” means Bank of America, in its capacity as issuer of Letters of Credit  hereunder and as the “L/C Issuer” referred to in the Fee Letter, or any successor issuer of Letters of  Credit hereunder.  “ISDA Definitions” means the 2006 ISDA Definitions published by the International Swaps  and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to  time, or any successor definitional booklet for interest rate derivatives published from time to time by  the International Swaps and Derivatives Association, Inc. or such successor thereto.  “L/C Exposure” means, at any time, the sum of (a) the aggregate Available Amount of all  outstanding Letters of Credit at such time plus (b) the aggregate amount of all Letter of Credit  Advances that have not yet been reimbursed by or on behalf of the Borrowers at such time.  The L/C  Exposure of any Lender at any time shall be its Pro Rata Share of the total L/C Exposure at such time.    “L/C Related Documents” has the meaning specified in Section 2.16(f).  “Lenders” means the Initial Lenders, each Assuming Lender that shall become a party hereto  pursuant to Section 2.18 and each Person that shall become a party hereto pursuant to Section 8.07.   Unless the context otherwise requires, the term “Lenders” includes the Swingline Lender.  “Letter of Credit” has the meaning specified in Section 2.16(a)means any standby letter of  credit issued hereunder and shall include the Existing Letters of Credit.  “Letter of Credit Advance” means an advance made by the Issuing Bank resulting from a  drawing under any Letter of Credit which has not been reimbursed on the date when made or  refinanced by a Revolving Credit Borrowing in the form of a Base Rate Advance.  “Letter of Credit Agreement” has the meaning specified in Section 2.16(b)(i).   “Letter of Credit Facility” means the lesser of (a) $50,000,000, as such amount may be  reduced at or prior to such time pursuant to Section 2.05 and (b) the Revolving Credit Facility.  The  Letter of Credit Facility is part of, and not in addition to, the Revolving Credit Facility.  “LIBOR” has the meaning specified in the definition of Eurodollar Rate.  “LIBOR Replacement Date” has the meaning specified in Section 2.18(c).  “LIBOR Screen Rate” means the LIBOR quote on the applicable screen page the Agent  designates to determine LIBOR (or such other commercially available source providing such  quotations as may be designated by the Agent from time to time).  “LIBOR Successor Rate” has the meaning specified in Section 2.18(c).  “LIBOR Successor Rate Conforming Changes” means, with respect to any proposed LIBOR  Successor Rate, any conforming changes to the definition of Base Rate, Interest Period, timing and  frequency of determining rates and making payments of interest and other technical, administrative or  operational matters (including, for the avoidance of doubt, the definition of Business Day, timing of  borrowing requests or prepayment, conversion or continuation notices and length of lookback  periods) as may be appropriate, in the discretion of the Agent, to reflect the adoption and  implementation 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 Agent determines that adoption of  any portion of such market practice is not administratively feasible or that no market practice for the  

 

    15      administration of such LIBOR Successor Rate exists, in such other manner of administration as the  Agent determines is reasonably necessary in connection with the administration of this Agreement  and any other Loan Document).  “Lien” means any lien, security interest or other charge or encumbrance of any kind, or any  other type of preferential arrangement, including, without limitation, the lien or retained security title  of a conditional vendor and any easement, right of way or other encumbrance on title to real property.  “Loan Documents” means this Agreement, any Notes, the Fee Letter, each Letter of Credit  Agreement, each other L/C Related Document, the Collateral Documents, and any agreement creating  or perfecting rights in Cash Collateral pursuant to the provisions of Section 2.24 of this Agreement, as  each may be amended, supplemented or otherwise modified from time to time.  “Loan Notice” means a Notice of Revolving Credit Borrowing or a Notice of Swingline  Borrowing, which shall be substantially in the respective form of Exhibit B-1 or B-2, as applicable, or  such other form as may be approved by the Agent  (including any form on an electronic platform or  electronic transmission system as shall be approved by the Agent); each appropriately completed and  signed by a Responsible Officer of a Borrower.    “London Banking Day” means any day on which dealings in Dollar deposits are conducted by  and between banks in the London interbank market.    “Master Agreement” has the meaning set forth in the definition of “Swap Contract”.    “Material Adverse Change” means any material adverse change in the assets, business,  operations, property or condition (financial or otherwise) of the Borrowers and their Subsidiaries  taken as a whole.  “Material Adverse Effect” means a material adverse effect on (a) the assets, business,  operations, property or condition (financial or otherwise) of the Borrowers and their Subsidiaries  taken as a whole or (b) the ability of the Borrowers to perform their obligations under the Loan  Documents.  “Minimum Collateral Amount” means, at any time, (a) with respect to Cash Collateral  consisting of cash or deposit account balances provided to reduce or eliminate Fronting Exposure  during any period when a Lender constitutes a Defaulting Lender, an amount equal to 100% of the  Fronting Exposure of the Issuing Bank with respect to Letters of Credit issued and outstanding at  such time, (b) with respect to Cash Collateral consisting of cash or deposit account balances provided  in accordance with the provisions of Section 2.24(a)(i), (a)(ii) or (a)(iii), an amount equal to 100% of  the outstanding amount of all L/C Exposure, and (c) otherwise, an amount determined by the Agent  and the Issuing Bank in their sole discretion.    “MLFPS” means Merrill Lynch, Pierce, Fenner & Smith Incorporated (or any other  registered broker-dealer wholly-owned by Bank of America Corporation to which all or substantially  all of Bank of America Corporation’s or any of its subsidiaries’ investment banking, commercial  lending services or related businesses may be transferred following the date of this Agreement).   “Money Market Rate” means such rate of interest per annum (if any) as the Swingline Lender  may quote from time to time on any single commercial borrowing for a period of up to 90 days.  “Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of  ERISA, to which a Borrower or any ERISA Affiliate is making or accruing an obligation to make  

 

    16      contributions, or has within any of the preceding five plan years made or accrued an obligation to  make contributions.  “Multiple Employer Plan” means a single employer plan, as defined in Section 4001(a)(15)  of ERISA, that (a) is maintained for employees of a Borrower or any ERISA Affiliate and at least one  Person other than such Borrower and the ERISA Affiliates or (b) was so maintained and in respect of  which such Borrower or any ERISA Affiliate could have liability under Section 4064 or 4069 of  ERISA in the event such plan has been or were to be terminated.  “Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at  such time.   “Note” means a Revolving Credit Note.  “Notice of Issuance” has the meaning specified in Section 2.16(b)(i).  “Notice of Revolving Credit Borrowing” has the meaning specified in Section 2.02(a).  “Notice of Swingline Borrowing” has the meaning specified in Section 2.04(b).  “Obligations” means (a) all advances to, and debts, liabilities, obligations, covenants and  duties of, any Borrower arising under any Loan Document or otherwise with respect to any Advance  or Letter of Credit and (b) all costs and expenses incurred in connection with enforcement and  collection of the foregoing, including the fees, charges and disbursements of counsel, in each case  whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to  become due, now existing or hereafter arising and including interest, expenses and fees that accrue  after the commencement by or against any Borrower or any Affiliate thereof pursuant to any  proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding,  regardless of whether such interest, expenses and fees are allowed claims in such proceeding;  provided that, without limiting the foregoing, the Obligations of a Borrower shall exclude any  Excluded Swap Obligations with respect to such Borrower.  “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of  a present or former connection between such Recipient and the jurisdiction imposing such Tax (other  than connections arising from such Recipient having executed, delivered, become a party to,  performed its obligations under, received payments under, received or perfected a security interest  under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or  assigned an interest in any Advance or Loan Document).    “Other Taxes” means all present or future stamp, court or documentary, intangible, recording,  filing or similar Taxes that arise from any payment made under, from the execution, delivery,  performance, enforcement or registration of, from the receipt or perfection of a security interest  under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other  Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to  Section 2.23).   “Participant” has the meaning specified in Section 8.07(d).    “Participant Register” has the meaning specified in Section 8.07(d).   “PBGC” means the Pension Benefit Guaranty Corporation (or any successor).  

 

    17      “Pension Plan” means any employee pension benefit plan (including a Multiple Employer  Plan or a Multiemployer Plan) that is maintained or is contributed to by any Borrower and any ERISA  Affiliate or with respect to which such Borrower or any ERISA Affiliate has any liability and is either  covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of  the Code.  “Permitted Acquisition” means an Acquisition by a Borrower (the Person or division,  line of business or other business unit of the Person to be acquired in such Acquisition shall  be referred to herein as the “Target”), in each case that is a type of business (or assets used in  a type of business) permitted to be engaged in by the Borrower and its Subsidiaries pursuant  to the terms of this Agreement, in each case so long as:  (a) no Default shall then exist or would exist after giving effect thereto;  (b) the Borrowers shall demonstrate to the reasonable satisfaction of the  Agent that, after giving effect to the Acquisition, the Borrowers are in compliance, on a  pro forma basis, with each of the covenants set forth in Section 5.03;  (c) the Target shall have earnings before interest, taxes, depreciation and  amortization for the four (4) fiscal quarter period prior to the acquisition date in an  amount greater than $0; and  (d) such Acquisition shall not be a “hostile” Acquisition and shall have been  approved by the board of directors (or equivalent) and/or shareholders (or equivalent) of  the applicable Borrower and the Target.  “Permitted Liens” means each of the following:  (a) Liens for taxes, assessments and  governmental charges or levies to the extent not required to be paid under Section 5.01(e) hereof; (b)  Liens imposed by law, such as materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s  Liens and other similar Liens arising in the ordinary course of business securing obligations that are  not overdue for a period of more than 30 days or are being contested by good faith by appropriate  proceedings and as to which appropriate reserves are being maintained; (c) pledges or deposits to  secure obligations under workers’ compensation laws or similar legislation or to secure public or  statutory obligations; and (d) easements, rights of way and other encumbrances on title to real  property that do not render title to the property encumbered thereby unmarketable or materially  adversely affect the use of such property for its present purposes.  “Person” means an individual, partnership, corporation (including a business trust), joint  stock company, trust, unincorporated association, joint venture, limited liability company or other  entity, or a government or any political subdivision or agency thereof.  “Plan” means a Single Employer Plan or a Multiple Employer Plan.  “Platform” has the meaning specified in Section 5.01.    “Pre-Adjustment Successor Rate” has the meaning specified in Section 2.18(c).  “Pro Rata Share” of any amount means, with respect to any Lender at any time, with respect  to Revolving Credit Advances, Letter of Credit Advances or Swingline Advances, the product of such  amount times a fraction the numerator of which is the amount of such Lender’s Revolving Credit  

 

    18      Commitment at such time and the denominator of which is the Revolving Credit Facility at such time;  provided that in the case of Section 2.22 when a Defaulting Lender shall exist, any such Defaulting  Lender’s Revolving Credit Commitment shall be disregarded in the calculation.  If the Commitments  have terminated or expired, the Pro Rata Share shall be determined based upon the Commitments  most recently in effect, giving effect to any assignments and to any Lender’s status as a Defaulting  Lender at the time of determination.  “Public Lender” has the meaning specified in Section 5.01.    “QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be  interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).    “QFC Credit Support” has the meaning specified in Section 8.18.    “Recipient” means the Agent, any Lender, the Issuing Bank or any other recipient of any  payment to be made by or on account of any obligation of any Borrower hereunder.   “Register” has the meaning specified in Section 8.07(c).  “Related Adjustment” means, in determining any LIBOR Successor Rate, the first relevant  available alternative set forth in the order below that can be determined by the Agent applicable to such  LIBOR Successor Rate:  (A) the spread adjustment, or method for calculating or determining such  spread adjustment, that has been selected or recommended by the Relevant Governmental  Body for the relevant Pre-Adjustment Successor Rate (taking into account the interest  period, interest payment date or payment period for interest calculated and/or tenor  thereto) and which adjustment or method (x) is published on an information service as  selected by the Agent from time to time in its reasonable discretion or (y) solely with  respect to Term SOFR, if not currently published, which was previously so recommended  for Term SOFR and published on an information service acceptable to the Agent; or  (B) the spread adjustment that would apply (or has previously been applied)  to the fallback rate for a derivative transaction referencing the ISDA Definitions (taking  into account the interest period, interest payment date or payment period for interest  calculated and/or tenor thereto).  “Related Parties” means, with respect to any Person, such Person’s Affiliates and the  partners, directors, officers, employees, agents, trustees, administrators, managers, advisors,  consultants, service providers and representatives of such Person and of such Person’s Affiliates.    “Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve  Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board  and/or the Federal Reserve Bank of New York.    “Removal Effective Date” has the meaning specified in Section 7.06(b).    “Required Lenders” means, at any time, Lenders having Credit Exposure and unused  Commitments representing more than 50% of the sum of the total Credit Exposure and unused  Commitments at such time.  The Credit Exposure and unused Commitment of any Defaulting Lender  shall be disregarded in determining Required Lenders at any time; provided that, the amount of any  participation in any Swingline Advance and Unreimbursed Amounts that such Defaulting Lender has  

 

    19      failed to fund that have not been reallocated to and funded by another Lender shall be deemed to be  held by the Lender that is the Swingline Lender or the Issuing Bank, as the case may be, in making  such determination.  “Responsible Officer” means the chief executive officer, president, chief financial officer,  treasurer, assistant treasurer or controller of a Borrower, solely for purposes of the delivery of  incumbency certificates pursuant to Section 3.01, the secretary or any assistant secretary of a  Borrower and, solely for purposes of notices given pursuant to Article II, any other officer or  employee of the applicable Borrower so designated by any of the foregoing officers in a notice to the  Agent or any other officer or employee of the applicable Borrower designated in or pursuant to an  agreement between the applicable Borrower and the Agent.  Any document delivered hereunder that  is signed by a Responsible Officer of a Borrower shall be conclusively presumed to have been  authorized by all necessary corporate, partnership and/or other action on the part of such Borrower  and such Responsible Officer shall be conclusively presumed to have acted on behalf of such  Borrower. To the extent requested by the Agent, each Responsible Officer will provide an  incumbency certificate and to the extent requested by the Agent, appropriate authorization  documentation, in form and substance satisfactory to the Agent.   “Revolving Credit Advance” means an advance by a Lender to a Borrower as part of a  Revolving Credit Borrowing and refers to a Base Rate Advance or a Eurodollar Rate Advance.  “Revolving Credit Availability” means (a) from the First Amendment Effective Date through  the first date on which the Borrowers shall have demonstrated to the reasonable satisfaction of the  Agent that the Revolving Credit Availability Increase Conditions have been satisfied, $225,000,000  and (b) thereafter, the aggregate Revolving Credit Commitments of all Lenders at such time.  “Revolving Credit Availability Increase Conditions” means, as of any date of determination,  each of the following:  (a) Consolidated Debt Ratio as of such date shall be not more than 0.60:1;  (a) (b) Consolidated Interest Coverage Ratio, as at the last day of the  fiscal quarter of the Borrowers most recently ended, shall be not less than 3.50:1;  and  (c) Consolidated Liquidity as of such date shall be at least $200,000,000.  “Revolving Credit Borrowing” means a borrowing consisting of simultaneous Revolving  Credit Advances of the same Type made by each of the Lenders pursuant to Section 2.01.  “Revolving Credit Commitment” means, with respect to any Lender at any time (a) the  amount set forth opposite such Lender’s name on the Commitment Schedule under the caption  “Revolving Credit Commitment” (b) if such Lender has become a Lender hereunder pursuant to an  Incremental Assumption Agreement, the amount set forth in such Incremental Assumption  Agreement or (c) if such Lender has entered into any Assignment and Assumption, the amount set  forth for such Lender in the Register maintained by the Agent pursuant to Section 8.07(c), as such  amount may be reduced pursuant to Section 2.05 or increased pursuant to Section 2.18.  OnAs of the  First Amendment Effective Date, the aggregate Revolving Credit Commitments of the Lenders is  $375,000,000250,000,000.  

 

    20      “Revolving Credit Commitment Increase” has the meaning specified in Section  2.18(a).  “Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of the  outstanding principal amount of such Lender’s Revolving Credit Advances and its L/C Exposure and  Swingline Exposure at such time.   “Revolving Credit Facility” means, at any time, the aggregate amount of the Lenders’  Revolving Credit Commitments at such time.  “Revolving Credit Note” means a promissory note of a Borrower payable to the order of any  Lender requesting the same, in substantially the form of Exhibit A hereto, evidencing the aggregate  indebtedness of such Borrower to such Lender resulting from the Revolving Credit Advances made  by such Lender.  “Robinson Family” means Richard Robinson, Barbara Robinson Buckland, Florence R. Ford,  Mary Sue Robinson Morrill and William W. Robinson, the spouses and descendants of any of them,  and any trust or estate whose legal representatives or beneficiaries (or in the case of a Person with  more than one legal representative or beneficiary, at least half of whose legal representatives or  beneficiaries) consist of one or more of the foregoing individuals, spouses and descendants; and the  trusts respectively created under the will of Maurice R. Robinson and/or the will of Florence L.  Robinson so long as at least half of their respective trustees or beneficiaries continue to consist of one  or more of the foregoing individuals, spouses and/or descendants.  “S&P” means Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc.,  and any successor thereto.  “Sanction(s)” means any sanction administered or enforced by the United States Government  (including, without limitation, OFAC), the United Nations Security Council, the European Union, Her  Majesty’s Treasury (“HMT”) or other relevant sanctions authority.    “Secured Cash Management Agreement” means any Cash Management Agreement  between the any Borrower and any Cash Management Bank.    “Secured Hedge Agreement” means any interest rate, currency, foreign exchange, or  commodity Swap Contract not prohibited by the terms of this Agreement between any  Borrower and any Hedge Bank.    “Secured Obligations” means all Obligations and all Additional Secured Obligations;  provided that from and after the Collateral Release Date, Secured Obligations shall mean all  Obligations.    “Secured Obligations Period” means the period beginning on the First Amendment  Effective Date and ending on the Collateral Release Date.    “Secured Parties” means, collectively, the Agent, the Lenders, the Issuing Bank, the  Hedge Banks, the Cash Management Banks, the Indemnitees and each co-agent or sub-agent  appointed by the Agent from time to time pursuant to Section 7.05; provided that from and  after the Collateral Release Date, Secured Parties shall mean the Agent, the Lenders, the  

 

    21      Issuing Bank, the Indemnitees and each co-agent or sub-agent appointed by the Agent from  time to time pursuant to Section 7.05.    “Secured Party Designation Notice” means a notice from any Lender or an Affiliate  of a Lender substantially in the form of Exhibit I.    “Security Agreement” means the Security Agreement, dated as of the First  Amendment Effective Date, executed by the Operating Company in favor of the Agent.    “Significant Subsidiary” shall mean any Subsidiary that owns 10% or more of the total  consolidated assets of the Holding Company and its subsidiaries and contributes 10% or more of their  total consolidated revenue from operations.  Each direct and indirect parent (other than the Holding  Company or the Operating Company) of a Significant Subsidiary also shall be deemed a Significant  Subsidiary.  “Single Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of  ERISA, that (a) is maintained for employees of a Borrower or any ERISA Affiliate and no Person  other than the Borrowers and the ERISA Affiliates, or (b) was so maintained and in respect of which  a Borrower or any ERISA Affiliate could have liability under Section 4069 of ERISA in the event  such plan has been or were to be terminated.  “SOFR” with respect to any Business Day means the secured overnight financing rate  published for such day by the Federal Reserve Bank of New York, as the administrator of the  benchmark (or a successor administrator) on the Federal Reserve Bank of New York’s website (or  any successor source) at approximately 8:00 a.m. (New York City time) on the immediately  succeeding Business Day and, in each case, that has been selected or recommended by the Relevant  Governmental Body.   “Solvent” and “Solvency” mean, with respect to any Person on any date of determination,  that on such date (a) the fair value of the property of such Person is greater than the total amount of  liabilities, including contingent liabilities, of such Person, (b) the present fair saleable value of the  assets of such Person is not less than the amount that will be required to pay the probable liability of  such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and  does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay such debts  and liabilities as they mature, (d) such Person is not engaged in business or a transaction, and is not  about to engage in business or a transaction, for which such Person’s property would constitute an  unreasonably small capital, and (e) such Person is able to pay its debts and liabilities, contingent  obligations and other commitments as they mature in the ordinary course of business.  The amount of  contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and  circumstances existing at such time, represents the amount that can reasonably be expected to become  an actual or matured liability.    “Subsidiary” of any Person means any corporation, partnership, joint venture, limited liability  company, trust or estate of which (or in which) more than 50% of (a) the issued and outstanding  capital stock having ordinary voting power to elect a majority of the Board of Directors of such  corporation (irrespective of whether at the time capital stock of any other class or classes of such  corporation shall or might have voting power upon the occurrence of any contingency), (b) the  interest in the capital or profits of such limited liability company, partnership or joint venture or (c)  the beneficial interest in such trust or estate is at the time directly or indirectly owned or controlled by  

 

    22      such Person, by such Person and one or more of its other Subsidiaries or by one or more of such  Person’s other Subsidiaries.  “Supported QFC” has the meaning specified in Section 8.18.  “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative  transactions, forward rate transactions, commodity swaps, commodity options, forward commodity  contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options  or forward bond or forward bond price or forward bond index transactions, interest rate options,  forward foreign exchange transactions, cap transactions, floor transactions, collar transactions,  currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or  any other similar transactions or any combination of any of the foregoing (including any options to  enter into any of the foregoing), whether or not any such transaction is governed by or subject to any  master agreement, and (b) any and all transactions of any kind, and the related confirmations, which  are subject to the terms and conditions of, or governed by, any form of master agreement published  by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange  Master Agreement, or any other master agreement (any such master agreement, together with any  related schedules, a “Master Agreement”), including any such obligations or liabilities under any  Master Agreement.  “Swap Obligations” means with respect to any Borrower any obligation to pay or perform  under any agreement, contract or transaction that constitutes a “swap” within the meaning of Section  1a(47) of the Commodity Exchange Act.  “Swingline Advance” means an Advance made pursuant to Section 2.04.  “Swingline Exposure” means, at any time, the aggregate principal amount of all Swingline  Advances outstanding at such time.  The Swingline Exposure of any Lender at any time shall be its  Pro Rata Share of the total Swingline Exposure at such time.  “Swingline Lender” means Bank of America, N.A., in its capacity as lender of Swingline  Advances hereunder.  “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings  (including backup withholding), assessments, fees or other charges imposed by any Governmental  Authority, including any interest, additions to tax or penalties applicable thereto.  “Term SOFR” means the forward-looking term rate for any period that is approximately (as  determined by the Agent) as long as any of the Interest Period options set forth in the definition of  “Interest Period” and that is based on SOFR and that has been selected or recommended by the Relevant  Governmental Body, in each case as published on an information service as selected by the Agent from  time to time in its reasonable discretion.  “Termination Date” means the earlier of January 5, 2022 and the date of termination in whole  of the Revolving Credit Commitments pursuant to Section 2.05 or 6.01.  “Total Consolidated Debt” shall mean the consolidated Debt of the Borrowers and their  Subsidiaries.  “Type”, when used in reference to any Advance or Borrowing, refers to whether the rate of  interest on such Advance, or the Advances comprising such Borrowing, is determined by reference to  the Eurodollar Rate or the Base Rate.  

 

    23      “UCC” means the Uniform Commercial Code as in effect in the State of New York; provided  that, if perfection or the effect of perfection or non-perfection or the priority of any security interest in  any collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than  the State of New York, “UCC” means the Uniform Commercial Code as in effect from time to time in  such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of  perfection or non-perfection or priority.    “UCP” means, with respect to any Letter of Credit, the Uniform Customs and Practice for  Documentary Credits, International Chamber of Commerce (“ICC”) Publication No. 600 (or such  later version thereof as may be in effect at the time of issuance).    “Unreimbursed Amount” has the meaning specified in Section 2.16(c)(i).    “Unused Revolving Credit Commitment” means, with respect to any Lender at any time, (a)  such Lender’s Revolving Credit Commitment at such time minus (b) the sum of (i) the aggregate  principal amount of all Revolving Credit Advances, Letter of Credit Advances and Swingline  Advances made by such Lender, in each case in its capacity as a Lender, and outstanding at such  time, and (ii) such Lender’s Pro Rata Share of (A) the aggregate Available Amount of all Letters of  Credit outstanding at such time, (B) the aggregate amount of Swingline Advances outstanding at such  time, and (C) to the extent not included in clause (b)(i) of this definition, the aggregate principal  amount of all Letter of Credit Advances made by the Issuing Bank pursuant to Section 2.16(d) and  outstanding at such time.  “U.S. Tax Compliance Certificate” has the meaning specified in Section 2.14(e)(ii)(B)(3).    “U.S. Person” means any Person that is a “United States Person” as defined in  Section 7701(a)(30) of the Code.    “Voting Stock” means capital stock issued by a corporation, or equivalent interests in any  other Person, the holders of which are ordinarily, in the absence of contingencies, entitled to vote for  the election of a majority of the directors (or persons performing similar functions) of such Person,  even if the right so to vote has been suspended by the happening of such a contingency.  “Write-Down and Conversion Powers” means, with respect to any EEA Resolution  Authority, the write-down and conversion powers of such EEA Resolution Authority from time to  time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and  conversion powers are described in the EU Bail-In Legislation Schedule.  SECTION 2.02Section 1.02 Computation of Time Periods; Other Interpretive Provisions.  (a)   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 mean “to but excluding”.  (b) The definitions of terms herein shall apply equally to the singular and plural  forms of the terms defined.  Whenever the context may require, any pronoun shall include the  corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including”  shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to  have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i) any  definition of or reference to any agreement, instrument or other document (including the Loan Documents  and any organizational document) shall be construed as referring to such agreement, instrument or other  document as from time to time amended, amended and restated, modified, extended, restated, replaced or  supplemented from time to time (subject to any restrictions on such amendments, supplements or  

 

    24      modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person  shall be construed to include such Person’s successors and assigns, (iii) the words “hereto,” “herein,”  “hereof” and “hereunder,” and words of similar import when used in any Loan Document, shall be  construed to refer to such Loan Document in its entirety and not to any particular provision thereof,  (iv) all references in a Loan Document to Articles, Sections, Preliminary Statements, Exhibits and  Schedules shall be construed to refer to Articles and Sections of, and Preliminary Statements, Exhibits  and Schedules to, the Loan Document in which such references appear, (v) any reference to any law shall  include all statutory and regulatory rules, regulations, orders and provisions consolidating, amending,  replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise  specified, refer to such law or regulation as amended, modified, extended, restated, replaced or  supplemented from time to time, and (vi) the words “asset” and “property” shall be construed to have the  same meaning and effect and to refer to any and all tangible and intangible assets and properties,  including cash, securities, accounts and contract rights. Any and all references to “Borrower” regardless  of whether preceded by the term a, any, each of, all, and/or, or any other similar term shall be deemed to  refer, as the context requires, to each and every (and/or any one or all) parties constituting a Borrower,  individually and/or in the aggregate.  (c) Any reference herein to a merger, transfer, consolidation, amalgamation,  assignment, sale, disposition or transfer, or similar term, shall be deemed to apply to a division of or by a  limited liability company, or an allocation of assets to a series of a limited liability company (or the  unwinding of such a division or allocation), as if it were a merger, transfer, consolidation, amalgamation,  assignment, sale, disposition or transfer, or similar term, as applicable, to, of or with a separate Person.  Any division of a limited liability company shall constitute a separate Person hereunder (and each  division of any limited liability company that is a Subsidiary, joint venture or any other like term shall  also constitute such a Person or entity).  SECTION 2.03Section 1.03 Accounting Terms.  (a)  All accounting terms not specifically  defined herein shall be construed in accordance with generally accepted accounting principles (“GAAP”).   Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used  herein shall be construed, and all computations of amounts and ratios referred to herein shall be made, (i)  without giving effect to any election under Accounting Standards Codification 825-10-25 (previously  referred to as Statement of Financial Accounting Standards 159) (or any other Accounting Standards  Codification or Financial Accounting Standard having a similar result or effect) to value any  IndebtednessDebt or other liabilities of the Borrowers or any Subsidiary at “fair value”, as defined  therein and (ii) without giving effect to any treatment of IndebtednessDebt 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  IndebtednessDebt in a reduced or bifurcated manner as described therein, and such IndebtednessDebt  shall at all times be valued at the full stated principal amount thereof.  (b) If at any time any change in GAAP would affect the computation of any financial  ratio or requirement set forth in any Loan Document, and either the Borrowers or the Required Lenders  shall so request, the Agent, the Lenders and the Borrowers shall negotiate in good faith to amend such  ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the  approval of the Required Lenders); provided that, until so amended, (i) such ratio or requirement shall  continue to be computed in accordance with GAAP prior to such change therein and (ii) the Borrowers  shall provide to the 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.  Without limiting  the foregoing, leases shall continue to be classified and accounted for on a basis consistent with that  reflected in the audited financial statements referred to in Section 4.01(f) for all purposes of this  

 

    25      Agreement, notwithstanding any change in GAAP relating thereto, unless the parties hereto shall enter  into a mutually acceptable amendment addressing such changes, as provided for above.  SECTION 2.04Section 1.04 Letter of Credit Amounts.  Unless otherwise specified herein, the  amount of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit  in effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms or the  terms of any L/C Related Document related thereto, provides for one or more automatic increases in the  stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated  amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum  stated amount is in effect at such time.  SECTION 2.05Article II    AMOUNTS AND TERMS OF THE ADVANCES  SECTION 2.06Section 2.01 Commitments.  Subject to the terms and conditions hereinafter  set forth, each Lender severally agrees to make Revolving Credit Advances to any Borrower from time to  time on any Business Day during the period from the Effective Date until the Termination Date in an  amount for each such Advance not to exceed such Lender’s Unused Revolving Credit Commitment at  such time.  Each Revolving Credit Borrowing (other than a Swingline Advance) shall be in an aggregate  amount of $1,000,000 or an integral multiple of $500,000 in excess thereof in the case of Base Rate  Advances, or shall be in an aggregate amount of $5,000,000 or an integral multiple of $1,000,000 in  excess thereof in the case of Eurodollar Rate Advances, and shall consist of Revolving Credit Advances  of the same Type made on the same day by the Lenders ratably according to their respective  Commitments.  Each Swingline Advance shall be in an amount that is an integral multiple of $250,000  and not less than $250,000.  Within the limits of each Lender’s Revolving Credit Commitment, the  Borrowers may borrow Revolving Credit Borrowings under this Section 2.01, prepay Revolving Credit  Borrowings pursuant to Section 2.10 and reborrow Revolving Credit Borrowings under this Section 2.01;  provided that in no event shall any Borrower be permitted to borrow a Revolving Credit  Borrowing (and no Lender shall be required to fund a Revolving Credit Advance) if, after giving  effect to the funding of such Revolving Credit Borrowing (or the funding of such Revolving  Credit Advance), the aggregate amount of the Revolving Credit Exposures of all Lenders shall  exceed the Revolving Credit Availability at such time.    SECTION 2.07Section 2.02 Making the Revolving Credit Advances.  (a) (a) Each Revolving Credit Borrowing shall be made on irrevocable notice, given not later  than (x) 11:00 A.M. (New York City time) on the third Business Day prior to the date of the proposed  Revolving Credit Borrowing in the case of a Revolving Credit Borrowing consisting of Eurodollar Rate  Advances or (y) 11:00 A.M. (New York City time) on the date of the proposed Revolving Credit  Borrowing in the case of a Revolving Credit Borrowing consisting of Base Rate Advances, by the  applicable Borrower to the Agent, which shall give to each Lender prompt notice thereof.  Each such  notice of a Revolving Credit Borrowing may be given by (A) telephone or (B) notice substantially in the  form of Exhibit B-1 (a “Notice of Revolving Credit Borrowing”); provided that any telephonic notice  must be confirmed immediately by delivery by the applicable Borrower to the Agent of a Notice of  Revolving Credit Borrowing specifying therein the requested (i) date of such Revolving Credit Borrowing  (which must be a Business Day), (ii) Type of Advances comprising such Revolving Credit Borrowing,  (iii) aggregate amount of such Revolving Credit Borrowing, and (iv) in the case of a Revolving Credit  Borrowing consisting of Eurodollar Rate Advances, the initial Interest Period for each such Revolving  Credit Advance.  If the applicable Borrower fails to specify a Type of Advance in a Notice of Revolving  Credit Borrowing or if the applicable Borrower fails to give a timely notice requesting a Conversion or  

 

    26      continuation, then the applicable Advances shall be made as, or converted to, Base Rate Advances.  Any  such automatic conversion to Base Rate Advances shall be effective as of the last day of the Interest  Period then in effect with respect to the applicable Eurodollar Rate Advances.  If the applicable Borrower  requests a Borrowing of, Conversion to, or continuation of Eurodollar Rate Advances in any such Notice  of Revolving Credit Borrowing, but fails to specify an Interest Period, it will be deemed to have specified  an Interest Period of one (1) month.  Notwithstanding anything to the contrary herein, a Swingline  Advance may not be converted to a Eurodollar Rate Advance.  Each Lender shall, before 2:00 P.M. (New  York City time) on the date of such Revolving Credit Borrowing make available for the account of its  Applicable Lending Office to the Agent at the Agent’s Account, in same day funds, such Lender’s ratable  portion of such Revolving Credit Borrowing.  After the Agent’s receipt of such funds and upon  fulfillment of the applicable conditions set forth in Article III, the Agent will make such funds available to  the applicable Borrower at the Agent’s address referred to in Section 8.02; provided, however, that, in the  case of any such Borrowing, the Agent shall first make a portion of such funds equal to the aggregate  principal amount of any Letter of Credit Advances made by the Issuing Bank and by any other Lender  and outstanding on the date of such Revolving Credit Borrowing, plus interest accrued and unpaid thereon  to and as of such date, available to the Issuing Bank and such other Lenders for repayment of such Letter  of Credit Advances.  (b) (b) Anything in subsection (a) above to the contrary notwithstanding, (i) the Borrowers may  not select Eurodollar Rate Advances for any Revolving Credit Borrowing if the aggregate amount of such  Revolving Credit Borrowing is less than $5,000,000 or if the obligation of the Lenders to make  Eurodollar Rate Advances shall then be suspended pursuant to Section 2.08 or 2.12 or 2.18 and (ii) no  more than twelve separate Eurodollar Rate Advances may be outstanding at any time.  (c) (c) Each Notice of Revolving Credit Borrowing shall be irrevocable and  binding on the applicable Borrower.  In the case of any Revolving Credit Borrowing that the related  Notice of Revolving Credit Borrowing specifies is to be comprised of Eurodollar Rate Advances, the  applicable Borrower shall indemnify each Lender against any loss, cost or expense incurred by such  Lender as a result of any failure to fulfill on or before the date specified in such Notice of Revolving  Credit Borrowing for such Revolving Credit Borrowing, the applicable conditions set forth in Article III,  including, without limitation, any loss (including loss of anticipated profits), cost or expense incurred by  reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to fund the  Revolving Credit Advance, to be made by such Lender as part of such Revolving Credit Borrowing, when  such Revolving Credit Advance, as a result of such failure, is not made on such date.  Except as otherwise  provided herein, a Eurodollar Rate Advance may be continued or Converted only on the last day of an  Interest Period for such Eurodollar Rate Advance.  During the existence of a Default, no Advance may be  requested as, Converted to or continued as Eurodollar Rate Advances without the consent of the Required  Lenders, and the Required Lenders may demand that any or all of the outstanding Eurodollar Rate  Advances be converted immediately to Base Rate Advances.  (d) (d) Unless the Agent shall have received notice from a Lender prior to the  date of any Revolving Credit Borrowing of Eurodollar Rate Advances (or in the case of any Revolving  Credit Borrowing of Base Rate Advances, prior to 12:00 noon on the date of such Borrowing) that such  Lender will not make available to the Agent such Lender’s ratable portion of such Revolving Credit  Borrowing, the Agent may assume that such Lender has made such portion available to the Agent on the  date of such Revolving Credit Borrowing in accordance with subsection (a) of this Section 2.02 (or in the  case of any Revolving Credit Borrowing of Base Rate Advances, that such Lender has made such share  available in accordance with and at the time required by such Section) and the Agent may, in reliance  upon such assumption, make available to the applicable 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 Agent,  such Lender and the applicable Borrower severally agree to repay to the Agent forthwith on demand in  

 

    27      immediately available funds such corresponding amount together with interest thereon, for each day from  the date such amount is made available to such Borrower until the date such amount is repaid to the  Agent, at (i) in the case of such Borrower, the interest rate applicable at the time to Base Rate Advances,  and (ii) in the case of such Lender, the greater of the Federal Funds Rate and a rate determined by the  Agent in accordance with banking industry rules on interbank compensation, plus any administrative,  processing or similar fees customarily charged by the Agent in connection with the foregoing.  If a  Borrower and such Lender shall pay such interest to the Agent for the same or an overlapping period, the  Agent shall promptly remit to such Borrower the amount of such interest paid by such Borrower for such  period.  If such Lender shall repay to the Agent such corresponding amount, such amount so repaid shall  constitute such Lender’s Revolving Credit Advance as part of such Revolving Credit Borrowing for  purposes of this Agreement.  Any payment by a Borrower shall be without prejudice to any claim such  Borrower may have against a Lender that shall have failed to make such payment to the Agent.  A notice  of the Agent to any Lender, the Issuing Bank or the Borrowers with respect to any amount owing under  this subsection (d) shall be conclusive, absent manifest error  (e) (e) The failure of any Lender to make the Revolving Credit Advance to be made by it as part  of any Revolving Credit Borrowing shall not relieve any other Lender of its obligation, if any, hereunder  to make its Revolving Credit Advance on the date of such Revolving Credit Borrowing, but no Lender  shall be responsible for the failure of any other Lender to make the Revolving Credit Advance to be made  by such other Lender on the date of any Revolving Credit Borrowing.  (f) (f) Each determination of an interest rate by the Agent pursuant to any provision of this  Agreement shall be conclusive and binding on the Borrowers and the Lenders in the absence of manifest  error.  (g) (g) Notwithstanding anything to the contrary in this Agreement, any Lender may exchange,  continue or rollover all or the portion of its Advances in connection with any refinancing, extension, loan  modification or similar transaction permitted by the terms of this Agreement, pursuant to a cashless  settlement mechanism approved by the Borrowers, the Agent and such Lender.  (h) (h) Notwithstanding the foregoing, Swingline Advances shall be made as provided in Section  2.04.  (i)Section 2.03 [Reserved.]  (j)Section 2.04 Swingline Advances.  (k) (a) Swingline Facility.  Subject to the terms and conditions set forth herein, the Swingline  Lender, in reliance upon the agreements of the other Lenders set forth in this Section, may in its sole  discretion, make Swingline Advances to the Borrowers from time to time on any Business Day during the  period from the Effective Date until the Termination Date, in an aggregate principal amount at any time  outstanding that will not result in (i) the aggregate principal amount of outstanding Swingline Advances  exceeding $15,000,000 (notwithstanding the fact that such Swingline Advances, when aggregated with  the Pro Rata Share of the Revolving Credit Exposure of the Lender acting as Swingline Lender may  exceed the amount of such Lender’s Revolving Credit Commitment) or (ii) the total Revolving Credit  Exposures of all Lenders exceeding the total Revolving Credit CommitmentsAvailability at such time;  provided that (A) the Swingline Lender shall not be required to make a Swingline Advance to refinance  an outstanding Swingline Advance and (B) the Swingline Lender shall not be under any obligation to  make any Swingline Advance if it shall determine (which determination shall be conclusive and binding  absent manifest error) that it has, or by such Advance may have, Fronting Exposure.  Within the  foregoing limits and subject to the terms and conditions set forth herein, the Borrowers may borrow,  

 

    28      prepay and reborrow Swingline Advances.  Immediately upon the making of a Swingline Advance, each  Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the  Swingline Lender a risk participation in such Swingline Advance in an amount equal to the product of  such Lender’s Pro Rata Share times the amount of such Swingline Advance.  (l) (b) Borrowing Procedures.  Each Swingline Advance shall be made upon the applicable  Borrower’s irrevocable notice to the Swingline Lender and the Agent, which may be given by:  (A)  telephone or (B) notice substantially in the form of Exhibit B-2 (a “Notice of Swingline Borrowing”);  provided that any telephonic notice must be confirmed immediately by delivery to the Swingline Lender  and the Agent of a Notice of Swingline Borrowing.  Each such Notice of Swingline Borrowing must be  received by the Swingline Lender and the Agent not later than 1:00 p.m. on the requested borrowing date,  and shall specify (i) the amount to be borrowed, which shall be a minimum of $250,000, and (ii) the  requested date of the Borrowing (which shall be a Business Day).  Promptly after receipt by the Swingline  Lender of any Notice of Swingline Borrowing, the Swingline Lender will confirm with the Agent (by  telephone or in writing) that the Agent has also received such Notice of Swingline Borrowing and, if not,  the Swingline Lender will notify the Agent (by telephone or in writing) of the contents thereof.  Unless  the Swingline Lender has received notice (by telephone or in writing) from the Agent (including at the  request of any Lender) prior to 2:00 p.m. on the date of the proposed Swingline Advance (A) directing the  Swingline Lender not to make such Swingline Advance as a result of the limitations set forth in Section  2.04(a), or (B) that one or more of the applicable conditions specified in Article III is not then satisfied,  then, subject to the terms and conditions hereof, the Swingline Lender may, make the amount of its  Swingline Advance available to the applicable Borrower at its office by crediting the account of such  Borrower on the books of the Swingline Lender in immediately available funds.  (m) (c) Refinancing of Swingline Advances.  (i) The Swingline Lender at any time in its sole discretion may request, on behalf of  the applicable Borrower (which hereby irrevocably authorizes the Swingline Lender to so request  on its behalf), that each Lender make a Base Rate Advance in an amount equal to such Lender’s  Pro Rata Share of the amount of Swingline Advances then outstanding.  Such request shall be  made in writing (which written request shall be deemed to be a Loan Notice for purposes hereof)  and in accordance with the requirements of Sections 2.01 and 2.02, without regard to the  minimum and multiples specified therein for the principal amount of Base Rate Advances, but  subject to the unutilized portion of the Revolving Credit Facility and the conditions set forth in  Section 3.02.  The Swingline Lender shall furnish the Borrowers with a copy of the applicable  Loan Notice promptly after delivering such notice to the Agent.  Each Lender shall make an  amount equal to its Pro Rata Share of the amount specified in such Loan Notice available to the  Agent in immediately available funds (and the Agent may apply Cash Collateral available with  respect to the applicable Swingline Advance) for the account of the Swingline Lender at the  Agent’s Applicable Lending Office not later than 1:00 p.m. on the day specified in such Loan  Notice, whereupon, subject to Section 2.04(c)(ii), each Lender that so makes funds available shall  be deemed to have made a Base Rate Advance to the applicable Borrower in such amount.  The  Agent shall remit the funds so received to the Swingline Lender.    (ii) If for any reason any Swingline Advance cannot be refinanced by such a  Revolving Credit Borrowing in accordance with Section 2.04(c)(i), the request for a Base Rate  Advance submitted by the Swingline Lender as set forth herein shall be deemed to be a request by  the Swingline Lender that each of the Lenders fund its risk participation in the relevant Swingline  Advance and each Lender’s payment to the Agent for the account of the Swingline Lender  pursuant to Section 2.04(c)(i) shall be deemed payment in respect of such participation.    

 

    29      (iii) If any Lender fails to make available to the Agent for the account of the  Swingline Lender any amount required to be paid by such Lender pursuant to the foregoing  provisions of this Section 2.04(c) by the time specified in Section 2.04(c)(i), the Swingline  Lender shall be entitled to recover from such Lender (acting through the Agent), on demand, such  amount with interest thereon for the period from the date such payment is required to the date on  which such payment is immediately available to the Swingline Lender at a rate per annum equal  to the greater of the Federal Funds Rate and a rate determined by the Swingline Lender in  accordance with banking industry rules on interbank compensation, plus any administrative,  processing or similar fees customarily charged by the Swingline Lender in connection with the  foregoing.  If such Lender pays such amount (with interest and fees as aforesaid), the amount so  paid shall constitute such Lender’s Revolving Credit Advance included in the relevant Revolving  Credit Borrowing or funded participation in the relevant Swingline Advance, as the case may be.   A certificate of the Swingline Lender submitted to any Lender (through the Agent) with respect to  any amounts owing under this clause (iii) shall be conclusive absent manifest error.    (iv) Each Lender’s obligation to make Revolving Credit Advances or to purchase and  fund risk participations in Swingline Advances pursuant to this Section 2.04(c) shall be absolute  and unconditional and shall not be affected by any circumstance, including (A) any setoff,  counterclaim, recoupment, defense or other right which such Lender may have against the  Swingline Lender, any Borrower or any other Person for any reason whatsoever, (B) the  occurrence or continuance of a Default or (C) any other occurrence, event or condition, whether  or not similar to any of the foregoing; provided however, that each Lender’s obligation to make  Revolving Credit Advances pursuant to this Section 2.04(c) is subject to the conditions set forth  in Section 3.02 (other than delivery by the applicable Borrower of a Loan Notice).  No such  funding of risk participations shall relieve or otherwise impair the obligation of the Borrowers to  repay Swingline Advances, together with interest as provided herein.    (n) (d) Repayment of Participations in Swingline Advances.  (i) At any time after any Lender has purchased and funded a risk participation in a  Swingline Advance, if the Swingline Lender receives any payment on account of such Swingline  Advance, the Swingline Lender will distribute to such Lender its Pro Rata Share thereof in the  same funds as those received by the Swingline Lender.    (ii) If any payment received by the Swingline Lender in respect of principal or  interest on any Swingline Advance is required to be returned by the Swingline Lender under any  of the circumstances described in Section 8.16 (including pursuant to any settlement entered into  by the Swingline Lender in its discretion), each Lender shall pay to the Swingline Lender its Pro  Rata Share thereof on demand of the Agent, plus interest thereon from the date of such demand to  the date such amount is returned, at a rate per annum equal to the Federal Funds Rate.  The Agent  will make such demand upon the request of the Swingline Lender.  The obligations of the  Lenders under this clause shall survive the payment in full of the debts, liabilities and other  obligations under this Agreement and the other Loan Documents and the termination of this  Agreement.    (e) Interest for Account of Swingline Lender.  The Swingline Lender shall be  responsible for invoicing the Borrowers for interest on the Swingline Advances.  Until each Lender funds  its Base Rate Advance or risk participation pursuant to this Section to refinance such Lender’s Pro Rata  Share of any Swingline Advance, interest in respect of such Pro Rata Share shall be solely for the account  of the Swingline Lender.    

 

    30      (f) Payments Directly to Swingline Lender.  The Borrowers shall make all payments  of principal and interest in respect of the Swingline Advances directly to the Swingline Lender.       SECTION 2.08Section 2.05 Termination or Reduction of the Commitments.  Unless  previously terminated, the Revolving Credit Commitments shall terminate on the Termination Date.  The  Borrowers shall have the right, upon at least five Business Days’ notice to the Agent, to terminate in  whole or reduce ratably in part the unused portions of the Letter of Credit Facility and the Unused  Revolving Credit Commitments, provided that each partial reduction shall be in the aggregate amount of  $5,000,000 or an integral multiple of $1,000,000 in excess thereof.  The Letter of Credit Facility shall be  permanently reduced from time to time on the date of each reduction in the Revolving Credit Facility by  the amount, if any, by which the Letter of Credit Facility exceeds the Revolving Credit Facility after  giving effect to such reduction of the Revolving Credit Facility.  SECTION 2.09Section 2.06 Repayment of Revolving Credit Advances, Swingline Advances  and Letter of Credit Advances; Evidence of Debt.    (a) (a) Revolving Credit Advances.  The Borrowers shall repay to the Agent for the ratable  account of the Lenders on the Termination Date the aggregate principal amount of the Revolving Credit  Advances then outstanding.  (b) (b) [Reserved.]  (c) (c) Letter of Credit Advances.  The Borrowers shall repay to the Agent for  the account of the Issuing Bank and each other Lender that has made a Letter of Credit Advance the  outstanding principal amount of each Letter of Credit Advance made by each of them on the earlier of the  Termination Date or on demand.  (d) (d) Swingline Advances.  The Borrowers shall repay the then unpaid  principal amount of each Swingline Advance (and accrued interest thereon) on the earlier of (i) the  Termination Date and (ii) the first date after such Swingline Advance is made that is the 15th or last day of  a calendar month and is at least two Business Days after such Swingline Advance is made; provided that  on each date that a Revolving Credit Borrowing is made, the Borrowers shall repay all Swingline  Advances then outstanding.  (e) (e) Each Lender shall maintain in accordance with its usual practice an  account or accounts evidencing the indebtedness of the Borrowers to such Lender resulting from each  Advance made by such Lender, including the amounts of principal and interest payable and paid to such  Lender from time to time hereunder.  The Agent shall maintain accounts in which it shall record (i) the  amount of each Advance made hereunder, the Class and Type thereof and the Interest Period applicable  thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from  each Borrower to each Lender hereunder and (iii) the amount of any sum received by the Agent hereunder  for the account of the Lenders and each Lender’s share thereof.  The entries made in the accounts  maintained pursuant to this paragraph (e) shall be prima facie evidence of the existence and amounts of  the obligations recorded therein; provided that the failure of any Lender or the Agent to maintain such  accounts or any error therein shall not in any manner affect the obligation of any Borrower to repay the  Advances in accordance with the terms of this Agreement.  (f) (f) Any Lender may request that Advances made by it be evidenced by the  applicable Notes.  In such event, the Borrowers shall prepare, execute and deliver to such Lender the  applicable Notes payable to the order of such Lender (or, if requested by such Lender, to such Lender and  

 

    31      its registered assigns).  Thereafter, the Advances evidenced by such Notes and interest thereon shall at all  times (including after assignment pursuant to Section 8.07) be represented by such Notes payable to the  order of the payee named therein (or, if such promissory note is a registered note, to such payee and its  registered assigns).  (g)Section 2.07 Interest on Revolving Credit Advances, Swingline Advances and Letter of Credit  Advances.  (a) Scheduled Interest.  The Borrowers shall pay interest on the unpaid principal amount of  each Revolving Credit Advance, each Swingline Advance and each Letter of Credit Advance owing to  each Lender from the date of such Advance until such principal amount shall be paid in full, at the  following rates per annum:  (i) (i) Base Rate Advances.  During such periods as such Advance is a Base Rate Advance, a  rate per annum equal at all times to the sum of (x) the Base Rate in effect from time to time plus (y) the  Applicable Rate in effect from time to time, payable in arrears quarterly on the last day of each February,  May, August and November during such periods and on the date all Base Rate Advances shall be  Converted or paid in full.  In addition, if such Advance is a Letter of Credit Advance, interest shall be at  the rate per annum specified in Section 2.16(c)(iii) hereof, and shall be payable in accordance with such  Section 2.16(c)(iii).  (ii) (ii) Eurodollar Rate Advances.  During such periods as such Advance is a Eurodollar Rate  Advance, a rate per annum equal at all times during each Interest Period for such Advance to the sum of  (x) the Eurodollar Rate for such Interest Period for such Advance plus (y) the Applicable Rate in effect  from time to time payable in arrears on the last day of such Interest Period and, if such Interest Period has  a duration of more than three months, on each day that occurs during such Interest Period every three  months from the first day of such Interest Period and on the date such Eurodollar Rate Advance shall be  Converted or paid in full.  (iii) (iii) Swingline Advances.  With respect to a Swingline Advance, a rate per annum equal at all  times to either (x) the Base Rate in effect from time to time plus the Applicable Rate in effect from time  to time or (y) the Money Market Rate in effect from time to time, payable in accordance with the terms of  Section 2.06(d).  Each Swingline Advance shall be a Base Rate Advance unless, prior to requesting a  Swingline Advance, the applicable Borrower shall have requested that such Swingline Advance bear  interest at the Money Market Rate and the Swingline Lender shall have quoted a Money Market Rate  therefor which such Borrower shall select in its notice delivered pursuant to Section 2.04(b); provided that  the Swingline Lender shall only be required to provide interest rate quotes for a Money Market Rate to  the extent of availability of Money Market Rates by the Swingline Lender.  (i) (b) Default Interest.  Upon the occurrence and during the continuance of an Event of Default,  the Agent may, and upon the request of the Required Lenders shall, give notice to the Borrowers to pay,  and the Borrowers shall pay, interest (“Default Interest”) on the unpaid principal amount of each Advance  owing to each Lender, payable in arrears on the dates referred to in clause (a)(i) or (a)(ii) above, at a rate  per annum equal at all times to 2% per annum above the rate per annum required to be paid on such  Advance pursuant to clause (a)(i) or (a)(ii) above; provided, however, that following acceleration of the  Advances pursuant to Section 6.01, Default Interest shall accrue and be payable whether or not previously  required by the Agent.  Section 2.08 Interest Rate Determination.     Section 1.01 (a) The Agent shall give prompt notice to the Borrowers and the Lenders of  the applicable interest rate determined by the Agent for purposes of Section 2.07(a)(i), (ii) or (iii).  

 

    32      (k) (b) On the date on which the aggregate unpaid principal amount of Eurodollar Rate  Advances comprising any Borrowing shall be reduced, by payment or prepayment or otherwise, to less  than $5,000,000, such Advances shall automatically Convert into Base Rate Advances.  (l) Inability to Determine Rates.  (i) If in connection with any request for a Eurodollar Rate Advance or a Conversion to or  continuation thereof, (A) the Agent determines that (x) Dollar deposits are not being offered to banks  in the London interbank eurodollar market for the applicable amount and Interest Period of such  Eurodollar Rate Advance, or (y) adequate and reasonable means do not exist for determining the  Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Rate  Advance or in connection with an existing or proposed Base Rate Advance  (in each case with  respect to clause (A), “Impacted Loans”), or (B) the Agent or the Required Lenders determine  that for any reason Eurodollar Rate for any requested Interest Period with respect to a proposed  Eurodollar Rate Advance does not adequately and fairly reflect the cost to such Lenders of  funding such Advance, the Agent will promptly so notify the Borrowers and each Lender.   Thereafter, (I) the obligation of the Lenders to make or maintain Eurodollar Rate Advances shall  be suspended (to the extent of the affected Eurodollar Rate Advances or Interest Periods), and  (II) in the event of a determination described in the preceding sentence with respect to the Eurodollar  Rate component of the Base Rate, the utilization of the Eurodollar Rate component in determining the  Base Rate shall be suspended, in each case until the Agent (upon the instruction of the Required Lenders)  revokes such notice.  Upon receipt of such notice, the Borrowers may revoke any pending request for a  Borrowing of, Conversion to or continuation of Eurodollar Rate Advances (to the extent of the  affected Eurodollar Rate Advances or Interest Periods) or, failing that, will be deemed to have  converted such request into a request for a Borrowing of Base Rate Advances in the amount  specified therein.     (ii) Notwithstanding the foregoing, if the Agent has made the  determination described in clause (c)(i)(A) of this Section, the Agent in  consultation with the Borrowers and the Required Lenders may establish an  alternative interest rate for the Impacted Loans, in which case, such alternative rate of  interest shall apply with respect to the Impacted Loans until (A) the Agent revokes the  notice delivered with respect to the Impacted Loans under clause (c)(i) of this Section,  (B) the Agent or the Required Lenders notify the Agent and the Borrowers that such  alternative interest rate does not adequately and fairly reflect the cost to such Lenders  of funding the Impacted Loans, or (C) any Lender determines that any law has made it  unlawful, or that any Governmental Authority has asserted that it is unlawful, for such  Lender or its Applicable Lending Office to make, maintain or fund Advances whose  interest is determined by reference to such alternative rate of interest or to determine  or charge interest rates based upon such rate or any Governmental Authority has  imposed material restrictions on the authority of such Lender to do any of the  foregoing and provides the Agent and the Borrowers written notice thereof.  SECTION 2.10Section 2.09 Optional Conversion of Revolving Credit Advances.  Each  Borrower may on any Business Day, upon notice given to the Agent not later than 11:00 A.M. (New York  City time) on the third Business Day prior to the date of the proposed Conversion and subject to the  provisions of Sections 2.082.12 and 2.122.18, Convert Revolving Credit Advances of one Type  comprising the same Borrowing made to such Borrower into Revolving Credit Advances of the other  Type; provided, however, that any Conversion of Eurodollar Rate Advances into Base Rate Advances  

 

    33      shall be made only on the last day of an Interest Period for such Eurodollar Rate Advances, any  Conversion of Base Rate Advances into Eurodollar Rate Advances shall be in an amount not less than the  minimum amount specified in Section 2.02(b) and no Conversion of any Revolving Credit Advances shall  result in more separate Revolving Credit Borrowings than permitted under Section 2.02(b).  Each such  notice of a Conversion shall, within the restrictions specified above, specify (i) the date of such  Conversion, (ii) the Revolving Credit Advances to be Converted, and (iii) if such Conversion is into  Eurodollar Rate Advances, the duration of the initial Interest Period for each such Advance.  Each notice  of Conversion shall be irrevocable and binding on the applicable Borrower.  This Section shall not apply  to Swingline Advances, which may not be converted or continued.  SECTION 2.11Section 2.10 Prepayments of Revolving Credit Advances.    (a) Optional.      (i) The Borrowers may, pursuant to delivery to the Agent of written notice, at any  time or from time to time voluntarily prepay Revolving Credit Advances in whole or in part  without premium or penalty subject to Section 8.04(e); provided that, unless otherwise agreed by  the Agent, (A) such notice must be received by the Agent not later than 11:00 a.m. (New York  City time) (1) three (3) Business Days prior to any date of prepayment of Eurodollar Rate  Advances and (2) on the date of prepayment of Base Rate Advances; (B) any prepayment of  Eurodollar Rate Advances shall be in a principal amount of $5,000,000 or a whole multiple of  $1,000,000 in excess thereof; and (C) any prepayment of Base Rate Advances shall be in a  principal amount of $500,000 or a whole multiple of $100,000 in excess thereof or, if less, the  entire principal amount thereof then outstanding.  Each such notice shall specify the date and  amount of such prepayment and the Type(s) of Advance to be prepaid and, if Eurodollar Rate  Advances are to be prepaid, the Interest Period(s) of such Advances.  The Agent will promptly  notify each Lender of its receipt of each such notice, and of the amount of such Lender’s ratable  portion of such prepayment (based on such Lender’s Pro Rata Share in respect of the relevant  Facility).  If such notice is given by a Borrower, the Borrowers shall make such prepayment and  the payment amount specified in such notice shall be due and payable on the date specified  therein.  Any prepayment of a Eurodollar Rate Advance shall be accompanied by all accrued  interest on the amount prepaid, together with any additional amounts required pursuant to Section  8.04(e).  Subject to Section 2.22, such prepayments shall be paid to the Lenders in accordance  with their respective Pro Rata Share in respect of each of the relevant Facilities.    (ii) The Borrowers may, upon notice to the Swingline Lender pursuant to delivery to  the Swingline Lender of a written notice (with a copy to the Agent), at any time or from time to  time, voluntarily prepay Swingline Advances in whole or in part without premium or penalty;  provided that, unless otherwise agreed by the Swingline Lender, (A) such notice must be received  by the Swingline Lender and the Agent not later than 1:00 p.m. on the date of the prepayment,  and (B) any such prepayment shall be in a minimum principal amount of $250,000 or a whole  multiple of $250,000 in excess hereof (or, if less, the entire principal thereof then outstanding).   Each such notice shall specify the date and amount of such prepayment.  If such notice is given  by a Borrower, the Borrowers shall make such prepayment and the payment amount specified in  such notice shall be due and payable on the date specified therein.  Any prepayment of principal  shall be accompanied by all accrued interest on the amount prepaid, together with any additional  amounts required pursuant to Section 8.04(e).    (b) (b) Mandatory.  If for any reason on any Business Day (1) the sum of the aggregate principal  amount of (x) the Revolving Credit Advances and (y) the Letter of Credit Advances then outstanding plus  the aggregate Available Amount of all Letters of Credit then outstanding exceeds (2) the Revolving  

 

    34      Credit FacilityAvailability on such Business Day, then the Borrowers shall immediately prepay  Revolving Credit Advances, Swingline Advances and Letter of Credit Advances (together with all  accrued but unpaid interest thereon) and/or Cash Collateralize the L/C Exposure in an aggregate amount  equal to such excess; provided, however, that the Borrowers shall not be required to Cash Collateralize  the L/C Exposure pursuant to this Section 2.10(b) unless, after the prepayment of the Revolving Credit  Advances and Swingline Advances, the sum of the items described in clause (1) above exceeds the  Revolving Credit FacilityAvailability at such time.  Such prepayments of the Revolving Credit Facility  shall be first applied to prepay Letter of Credit Advances then outstanding until such Advances are paid in  full, and second applied to prepay Revolving Credit Advances then outstanding comprising part of the  same Borrowings until such Advances are paid in full.  (c)Section 2.11 Increased Costs; Reserves on Eurodollar Rate Advances.    (a) Increased Costs Generally.  If any Change in Law shall:    (i) impose, modify or deem applicable any reserve, special deposit, compulsory  loan, insurance charge or similar requirement against assets of, deposits with or for the account  of, or credit extended or participated in by, any Lender (except any reserve requirement  contemplated by Section 2.11(d)) or the Issuing Bank;     (ii) subject any Recipient to any Taxes (other than Indemnified Taxes, Excluded  Taxes and Connection Income Taxes) on its loans, loan principal, letters of credit, commitments,  or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or    (iii) impose on any Lender or the Issuing Bank or the London interbank market any  other condition, cost or expense affecting this Agreement or Eurodollar Rate Advances made by  such Lender or any Letter of Credit or participation therein;     and the result of any of the foregoing shall be to increase the cost to such Lender of making, converting  to, continuing or maintaining any Advance (or of maintaining its obligation to make any such Advance),  or to increase the cost to such Lender or the Issuing Bank of participating in, issuing or maintaining any  Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to  reduce the amount of any sum received or receivable by such Lender or the Issuing Bank hereunder  (whether of principal, interest or any other amount) then, upon request of such Lender or the Issuing  Bank, the Borrowers will jointly and severally pay to such Lender or the Issuing Bank, as the case may  be, such additional amount or amounts as will compensate such Lender or the Issuing Bank, as the case  may be, for such additional costs incurred or reduction suffered.    (b) Capital Requirements.  If any Lender or the Issuing Bank determines that any  Change in Law affecting such Lender or the Issuing Bank or any Applicable Lending Office of such  Lender or such Lender’s or the Issuing Bank’s holding company, if any, regarding capital or liquidity  requirements has or would have the effect of reducing the rate of return on such Lender’s or the Issuing  Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding company, if any, as a  consequence of this Agreement, the Commitments of such Lender or the Advances made by, or  participations in Letters of Credit or Swingline Advances held by, such Lender, or the Letters of Credit  issued by the Issuing Bank, to a level below that which such Lender or the Issuing Bank or such Lender’s  or the Issuing Bank’s holding company could have achieved but for such Change in Law (taking into  consideration such Lender’s or the Issuing Bank’s policies and the policies of such Lender’s or the  Issuing Bank’s holding company with respect to capital adequacy), then from time to time the Borrowers  will jointly and severally pay to such Lender or the Issuing Bank, as the case may be, such additional  

 

    35      amount or amounts as will compensate such Lender or the Issuing Bank or such Lender’s or the Issuing  Bank’s holding company for any such reduction suffered.    (c) Certificates for Reimbursement.  A certificate of a Lender or the Issuing Bank  setting forth the amount or amounts necessary to compensate such Lender or the Issuing Bank or its  holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to  the Borrowers shall be conclusive absent manifest error.  The Borrowers shall jointly and severally pay  such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate  within ten (10) days after receipt thereof.    (d) Reserves on Eurodollar Rate Advances.  The Borrowers shall jointly and  severally pay to each Lender, (i) as long as such Lender shall be required to maintain reserves with  respect to liabilities or assets consisting of or including eurocurrency funds or deposits (currently known  as “Eurocurrency liabilities”), additional interest on the unpaid principal amount of each Eurodollar Rate  Advance equal to the actual costs of such reserves allocated to such Advance by such Lender (as  determined by such Lender in good faith, which determination shall be conclusive), and (ii) as long as  such Lender shall be required to comply with any reserve ratio requirement or analogous requirement of  any central banking or financial regulatory authority imposed in respect of the maintenance of the  Commitments or the funding of Advances, such additional costs (expressed as a percentage per annum  and rounded upwards, if necessary, to the nearest five decimal places) equal to the actual costs allocated  to such Commitment or Advance by such Lender (as determined by such Lender in good faith, which  determination shall be conclusive), which in each case shall be due and payable on each date on which  interest is payable on such Advance, provided the Borrowers shall have received at least ten (10) days’  prior notice (with a copy to the Agent) of such additional interest or costs from such Lender.  If a Lender  fails to give notice ten (10) days prior to the relevant date on which interest is payable on such Advance,  such additional interest shall be due and payable ten (10) days from receipt of such notice.    (e) Delay in Requests.  Failure or delay on the part of any Lender or the Issuing  Bank to demand compensation pursuant to the foregoing provisions of this Section 2.11 shall not  constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such compensation, provided  that the Borrowers shall not be required to compensate a Lender or the Issuing Bank pursuant to the  foregoing provisions of this Section for any increased costs incurred or reductions suffered more than  nine (9) months prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the  Borrowers of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or  the Issuing Bank’s intention to claim compensation therefor (except that, if the Change in Law giving rise  to such increased costs or reductions is retroactive, then the nine (9) month period referred to above shall  be extended to include the period of retroactive effect thereof).    (f)  Notwithstanding anything to the contrary contained in this Section 2.11, a Lender  shall only be entitled to demand compensation for any increased costs pursuant to this Section 2.11 if  additional amounts to compensate for such increased costs are generally being assessed by such Lender  against similarly situated borrowers under other similar syndicated credit facilities.  SECTION 2.12Section 2.12 Illegality.  If any Lender determines that any law has made it  unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its  Applicable Lending Office to perform any of its obligations hereunder or to make, maintain or fund or  charge interest with respect to any Advance or to determine or charge interest rates based upon the  Eurodollar Rate, or any Governmental Authority has imposed material restrictions on the authority of  such Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market, then, on  notice thereof by such Lender to the Borrowers through the Agent, (a) any obligation of such Lender to  issue, make, maintain, fund or charge interest with respect to any such Advance or continue Eurodollar  

 

    36      Rate Advances or to Convert Base Rate Advances to Eurodollar Rate Advances shall be suspended, and  (b) if such notice asserts the illegality of such Lender making or maintaining Base Rate Advances the  interest rate on which is determined by reference to the Eurodollar Rate component of the Base Rate, the  interest rate on which Base Rate Advances of such Lender shall, if necessary to avoid such illegality, be  determined by the Agent without reference to the Eurodollar Rate component of the Base Rate, in each  case until such Lender notifies the Agent and the Borrowers that the circumstances giving rise to such  determination no longer exist.  Upon receipt of such notice, (i) the Borrowers shall, upon demand from  such Lender (with a copy to the Agent), prepay or, if applicable, Convert all Eurodollar Rate Advances of  such Lender to Base Rate Advances (the interest rate on which Base Rate Advances of such Lender shall,  if necessary to avoid such illegality, be determined by the Agent without reference to the Eurodollar Rate  component of the Base Rate), either on the last day of the Interest Period therefor, if such Lender may  lawfully continue to maintain such Eurodollar Rate Advances to such day, or immediately, if such Lender  may not lawfully continue to maintain such Eurodollar Rate Advances and (ii) if such notice asserts the  illegality of such Lender determining or charging interest rates based upon the Eurodollar Rate, the Agent  shall during the period of such suspension compute the Base Rate applicable to such Lender without  reference to the Eurodollar Rate component thereof until the Agent is advised in writing by such Lender  that it is no longer illegal for such Lender to determine or charge interest rates based upon the Eurodollar  Rate.  Upon any such prepayment or conversion, the Borrowers shall also jointly and severally pay  accrued interest on the amount so prepaid or converted.  SECTION 2.13Section 2.13 Payments and Computations.  (a)  The Borrowers shall make  each payment hereunder not later than 11:00 A.M. (New York City time) on the day when due to the  Agent at the Agent’s Account in same day funds and all payments to be made by the Borrowers or any of  them hereunder shall be made free and clear of and without condition or deduction for any counterclaim,  defense, recoupment or setoff.  The Agent will promptly thereafter cause to be distributed like funds  relating to the payment of principal or interest or facility fees ratably (other than amounts payable  pursuant to Section 2.04, 2.11, 2.14 or 8.04(e)) 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 any Assuming Lender becoming a Lender hereunder  as a result of a Revolving Credit Commitment Increase pursuant to Section 2.18, and upon the Agent’s  receipt of such Lender’s Incremental Assumption Agreement and recording of the information contained  therein in the Register, from and after the applicable Increase Date, the Agent shall make all payments  hereunder and under any Notes issued in connection therewith in respect of the interest assumed thereby  to the Assuming Lender.  Upon its acceptance of an Assignment and Assumption and recording of the  information contained therein in the Register pursuant to Section 8.07(c), from and after the effective date  specified in such Assignment and Assumption, the Agent shall make all payments hereunder and under  any Notes 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) (b) Each Borrower hereby authorizes each Lender, if and to the extent payment owed to such  Lender is not made when due hereunder or under any Note held by such Lender, to charge from time to  time against any or all of such Borrower’s accounts with such Lender any amount so due.  (c) (c) All computations of interest based on the Base Rate shall be made by the Agent on the  basis of a year of 365 or 366 days, as the case may be, and all computations of interest based on the  Eurodollar Rate, the Federal Funds Rate, or in respect of facility fees, Letter of Credit commissions, or  any other fees shall be made by the Agent on the basis of a year of 360 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  

 

    37      interest, fees or commissions are payable.  Each determination by the Agent of an interest rate hereunder  shall be conclusive and binding for all purposes, absent manifest error.  (d) (d) Whenever any payment hereunder or under any Notes 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 or facility fee,  as the case may be; provided, however, that, if such extension would cause payment of interest on or  principal of Eurodollar Rate Advances to be made in the next following calendar month, such payment  shall be made on the next preceding Business Day.  (e) (e) Unless the Agent shall have received notice from the applicable Borrower prior to the  date on which any payment is due to the Agent for the account of the  Lenders or the Issuing Bank  hereunder that such Borrower will not make such payment in full, the Agent may assume that such  Borrower has made such payment in full to the Agent on such date and the Agent may, in reliance upon  such assumption, cause to be distributed to each Lender or the Issuing Bank, as the case may be, on such  due date an amount equal to the amount then due such Lender or the Issuing Bank.  If and to the extent  the applicable Borrower shall not have so made such payment in full to the Agent, each Lender or the  Issuing Bank, as the case may be, severally shall repay to the Agent forthwith on demand such amount  distributed to such Lender or the Issuing Bank, in immediately available funds, 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 Agent, at the greater of the Federal Funds Rate and a rate determined by the  Agent in accordance with banking industry rules on interbank compensation.  A notice of the Agent to  any Lender, the Issuing Bank or the Borrowers with respect to any amount owing under this subsection  (e) shall be conclusive, absent manifest error.  (f) (f) If, as a result of any restatement of or other adjustment to the financial statements of the  Holding Company and its Subsidiaries or for any other reason, the Borrowers, or the Lenders determine  that (i) the Consolidated Debt Ratio as calculated by the Borrowers as of any applicable date was  inaccurate and (ii) a proper calculation of the Consolidated Debt Ratio would have resulted in higher  pricing for such period, the Borrowers shall immediately and retroactively be obligated to pay to the  Agent for the account of the applicable Lenders or the Issuing Bank, as the case may be, promptly on  demand by the Agent (or, after the occurrence of an actual or deemed entry of an order for relief with  respect to any Borrower under the Bankruptcy Code of the United States, automatically and without  further action by the Agent, any Lender or the Issuing Bank), an amount equal to the excess of the amount  of interest and fees that should have been paid for such period over the amount of interest and fees  actually paid for such period.  This paragraph shall not limit the rights of the Agent, any Lender or the  Issuing Bank, as the case may be, under any provision of this Agreement to payment of any obligations  hereunder at a rate equal to 2% per annum above the rate per annum required to be paid on such Advance  or under Article VI.  Each Borrower’s obligations under this paragraph shall survive the termination of  the aggregate Commitments and the repayment of all other debts, liabilities and obligations hereunder and  under the other Loan Documents.  (g) (g) If any Lender makes available to the Agent funds for any Advance to be made by such  Lender as provided in this Article II, and such funds are not made available to the Borrowers by the Agent  because the conditions to the applicable Borrowing or other extension of credit set forth in Article III are  not satisfied or waived in accordance with the terms hereof, the Agent shall return such funds (in like  funds as received from such Lender) to such Lender, without interest.  (h) (h) The obligations of the Lenders hereunder to make Advances, to fund participations in  Letters of Credit and Swingline Advances and to make payments pursuant to Section 8.04(c) are several  and not joint.  The failure of any Lender to make any Advance, to fund any such participation or to make  

 

    38      any payment under Section 8.04(c) on any date required hereunder shall not relieve any other Lender of  its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of  any other Lender to so make its Advance, to purchase its participation or to make its payment under  Section 8.04(c).  (i)Section 2.14 Taxes.    (j) (a) Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes.  (i) Any and all payments by or on account of any obligation of any Borrower under  any Loan Document shall be made without deduction or withholding for any Taxes, except as  required by applicable laws.  If any applicable laws (as determined in the good faith discretion of  the Agent) require the deduction or withholding of any Tax from any such payment by the Agent  or a Borrower, then the Agent or such Borrower shall be entitled to make such deduction or  withholding, upon the basis of the information and documentation to be delivered pursuant to  subsection (e) below.    (ii) If any Borrower or the Agent shall be required by the Internal Revenue Code to  withhold or deduct any Taxes, including both United States federal backup withholding and  withholding taxes, from any payment, then (A) the Agent shall withhold or make such deductions  as are determined by the Agent to be required based upon the information and documentation it  has received pursuant to subsection (e) below, (B) the Agent shall timely pay the full amount  withheld or deducted to the relevant Governmental Authority in accordance with the Internal  Revenue Code, and (C) to the extent that the withholding or deduction is made on account of  Indemnified Taxes, the sum payable by the applicable Borrower shall be increased as necessary  so that after any required withholding or the making of all required deductions (including  deductions applicable to additional sums payable under this Section 2.14) the applicable  Recipient receives an amount equal to the sum it would have received had no such withholding or  deduction been made.    (iii) If any Borrower or the Agent shall be required by any applicable laws other than  the Internal Revenue Code to withhold or deduct any Taxes from any payment, then (A) such  Borrower or the Agent, as required by such laws, shall withhold or make such deductions as are  determined by it to be required based upon the information and documentation it has received  pursuant to subsection (e) below, (B) such Borrower or the Agent, to the extent required by such  laws, shall timely pay the full amount withheld or deducted to the relevant Governmental  Authority in accordance with such laws, and (C) to the extent that the withholding or deduction is  made on account of Indemnified Taxes, the sum payable by the applicable Borrower shall be  increased as necessary so that after any required withholding or the making of all required  deductions (including deductions applicable to additional sums payable under this Section 2.14)  the applicable Recipient receives an amount equal to the sum it would have received had no such  withholding or deduction been made.    (k) (b) Payment of Other Taxes by the Borrowers.  Without limiting the provisions of subsection  (a) above, the Borrowers shall timely pay to the relevant Governmental Authority in accordance with  applicable law, or at the option of the Agent timely reimburse it for the payment of, any Other Taxes.  (l) (c) Tax Indemnifications.  (i) Each of the Borrowers shall, and does hereby, jointly and severally indemnify  each Recipient, and shall make payment in respect thereof within ten (10) days after written  

 

    39      demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes  imposed or asserted on or attributable to amounts payable under this Section 2.14) payable or  paid by such Recipient or required to be withheld or deducted from a payment to such Recipient,  and any penalties, interest and reasonable expenses arising therefrom or with respect thereto,  whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the  relevant Governmental Authority.  A certificate as to the amount of such payment or liability  delivered to the Borrowers by a Lender or the Issuing Bank (with a copy to the Agent), or by the  Agent on its own behalf or on behalf of a Lender or the Issuing Bank, shall be conclusive absent  manifest error.  Each of the Borrowers shall also, and does hereby, jointly and severally  indemnify the Agent, and shall make payment in respect thereof within ten (10) days after  demand therefor, for any amount which a Lender or the Issuing Bank for any reason fails to pay  indefeasibly to the Agent as required pursuant to Section 2.14(c)(ii) below.      (ii) Each Lender and the Issuing Bank shall, and does hereby, severally indemnify  and shall make payment in respect thereof within ten (10) days after demand therefor, (A) the  Agent against any Indemnified Taxes attributable to such Lender or the Issuing Bank (but only to  the extent that any Borrower has not already indemnified the Agent for such Indemnified Taxes  and without limiting the obligation of the Borrowers to do so), (B) the Agent and the Borrowers,  as applicable, against any Taxes attributable to such Lender’s failure to comply with the  provisions of Section 8.07(d) relating to the maintenance of a Participant Register and (C) the  Agent and the Borrowers, as applicable, against any Excluded Taxes attributable to such Lender  or the Issuing Bank, in each case, that are payable or paid by the Agent or a Borrower in  connection with any Loan Document, and any reasonable expenses arising therefrom or with  respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the  relevant Governmental Authority.  A certificate as to the amount of such payment or liability  delivered to any Lender by the Agent shall be conclusive absent manifest error.  Each Lender and  the Issuing Bank hereby authorizes the Agent to set off and apply any and all amounts at any time  owing to such Lender or the Issuing Bank, as the case may be, under this Agreement or any other  Loan Document against any amount due to the Agent under this clause (ii).      (m) (d) Evidence of Payments.  As soon as practicable after any payment of Taxes by any  Borrower to a Governmental Authority, as provided in this Section 2.14, the Borrowers shall deliver to  the Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing  such payment, a copy of any return reporting such payment or other evidence of such payment reasonably  satisfactory to the Agent.  (n) (e) Status of Lenders; Tax Documentation.  (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax  with respect to payments made under any Loan Document shall deliver to the Borrowers and the  Agent, at the time or times prescribed by applicable law and as reasonably requested by the  Borrowers or the Agent, such properly completed and executed documentation prescribed by  applicable law or reasonably requested by the Borrowers or the Agent as will permit such  payments to be made without withholding or at a reduced rate of withholding.  In addition, any  Lender, if reasonably requested by the Borrowers or the Agent, shall deliver such other  documentation prescribed by applicable law or reasonably requested by the Borrowers or the  Agent as will enable the Borrowers or the Agent to determine whether or not such Lender is  subject to backup withholding or information reporting requirements.  Notwithstanding anything  to the contrary in the preceding two sentences, the completion, execution and submission of such  documentation (other than such documentation set forth in Section 2.14(e)(ii)(A), (ii)(B) and  (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion,  

 

    40      execution or submission would subject such Lender to any material unreimbursed cost or expense  or would materially prejudice the legal or commercial position of such Lender.    (ii) Without limiting the generality of the foregoing, in the event that a Borrower is a  U.S. Person,    (A) any Lender that is a U.S. Person shall deliver to the Borrowers  and the Agent on or prior to the date on which such Lender becomes a Lender  under this Agreement (and from time to time thereafter upon the reasonable  request of the Borrowers or the Agent), executed copies of IRS Form W-9  certifying that such Lender is exempt from U.S. federal backup withholding tax;     (B) any Foreign Lender shall, to the extent it is legally entitled to do  so, deliver to the Borrowers and the Agent (in such number of copies as shall be  requested by the recipient) on or prior to the date on which such Foreign Lender  becomes a Lender under this Agreement (and from time to time thereafter upon  the reasonable request of the Borrowers or the Agent), whichever of the  following is applicable:    (1) in the case of a Foreign Lender claiming the benefits of  an income tax treaty to which the United States is a party (x) with  respect to payments of interest under any Loan Document, executed  copies of IRS Form W-8BEN-E (or W-8BEN, as applicable)  establishing an exemption from, or reduction of, U.S. federal  withholding Tax pursuant to the “interest” article of such tax treaty  and (y) with respect to any other applicable payments under any  Loan Document, IRS Form W-8BEN-E (or W-8BEN, as applicable)   establishing an exemption from, or reduction of, U.S. federal  withholding Tax pursuant to the “business profits” or “other income”  article of such tax treaty;    (2) executed originals of IRS Form W-8ECI;    (3) in the case of a Foreign Lender claiming the benefits of  the exemption for portfolio interest under Section 881(c) of the  Internal Revenue Code, (x) a certificate substantially in the form of  Exhibit H-1 to the effect that such Foreign Lender is not a “bank”  within the meaning of Section 881(c)(3)(A) of the Internal Revenue  Code, a “10 percent shareholder” of a Borrower within the meaning  of Section 881(c)(3)(B) of the Internal Revenue Code, or a  “controlled foreign corporation” described in Section 881(c)(3)(C) of  the Internal Revenue Code (a “U.S. Tax Compliance Certificate”)  and (y) executed copies of IRS Form W-8BEN-E (or W-8BEN, as  applicable); or    (4) to the extent a Foreign Lender is not the beneficial  owner, executed copies of IRS Form W-8IMY, accompanied by IRS  Form W-8ECI, IRS Form W-8BEN-E (or W-8BEN, as applicable), a  U.S. Tax Compliance Certificate substantially in the form of Exhibit  H-2 or Exhibit H-3, IRS Form W-9, and/or other certification  documents from each beneficial owner, as applicable; provided that  

 

    41      if the Foreign Lender is a partnership and one or more direct or  indirect partners of such Foreign Lender are claiming the portfolio  interest exemption, such Foreign Lender may provide a U.S. Tax  Compliance Certificate substantially in the form of Exhibit H-4 on  behalf of each such direct and indirect partner;    (C) any Foreign Lender shall, to the extent it is legally entitled to do  so, deliver to the Borrowers and the Agent (in such number of copies as shall be  requested by the recipient) on or prior to the date on which such Foreign Lender  becomes a Lender under this Agreement (and from time to time thereafter upon  the reasonable request of the Borrowers or the Agent), executed copies (or  originals, as required) of any other form prescribed by applicable law as a basis  for claiming exemption from or a reduction in U.S. federal withholding Tax, duly  completed, together with such supplementary documentation as may be  prescribed by applicable law to permit the Borrowers or the Agent to determine  the withholding or deduction required to be made; and    (D) if a payment made to a Lender under any Loan Document would  be subject to U.S. federal withholding Tax imposed by FATCA if such Lender  were to fail to comply with the applicable reporting requirements of FATCA  (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue  Code, as applicable), such Lender shall deliver to the Borrowers and the Agent at  the time or times prescribed by law and at such time or times reasonably  requested by the Borrowers or the Agent such documentation prescribed by  applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the  Internal Revenue Code) and such additional documentation reasonably requested  by the Borrowers or the Agent as may be necessary for the Borrowers and the  Agent to comply with their obligations under FATCA and to determine that such  Lender has complied with such Lender’s obligations under FATCA or to  determine the amount to deduct and withhold from such payment.  Solely for  purposes of this clause (D), “FATCA” shall include any amendments made to  FATCA after the date of this Agreement.    (iii) Each Lender agrees that if any form or certification it previously delivered  pursuant to this Section 2.14 expires or becomes obsolete or inaccurate in any respect, it shall  update such form or certification or promptly notify the Borrowers and the Agent in writing of its  legal inability to do so.    (o) (f) Treatment of Certain Refunds.  Unless required by applicable laws, at no time shall the  Agent have any obligation to file for or otherwise pursue on behalf of a Lender or the Issuing Bank, or  have any obligation to pay to any Lender or the Issuing Bank, any refund of Taxes withheld or deducted  from funds paid for the account of such Lender or the Issuing Bank, as the case may be.  If any Recipient  determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to  which it has been indemnified by any Borrower or with respect to which any Borrower has paid  additional amounts pursuant to this Section 2.14, it shall pay to such Borrower an amount equal to such  refund (but only to the extent of indemnity payments made, or additional amounts paid, by such Borrower  under this Section 2.14 with respect to the Taxes giving rise to such refund), net of all out-of-pocket  expenses (including Taxes) incurred by such Recipient, as the case may be, and without interest (other  than any interest paid by the relevant Governmental Authority with respect to such refund), provided that  each Borrower, upon the request of the Recipient, agrees to repay the amount paid over to such Borrower  (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the  

 

    42      Recipient in the event the Recipient is required to repay such refund to such Governmental Authority.   Notwithstanding anything to the contrary in this subsection, in no event will the applicable Recipient be  required to pay any amount to such Borrower pursuant to this subsection the payment of which would  place the Recipient in a less favorable net after-Tax position than such Recipient would have been in if  the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or  otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had  never been paid.  This subsection shall not be construed to require any Recipient to make available its tax  returns (or any other information relating to its taxes that it deems confidential) to any Borrower or any  other Person.  (p) (g) Survival.  Each party’s obligations under this Section 2.14 shall survive the resignation or  replacement of the Agent or any assignment of rights by, or the replacement of, a Lender or the Issuing  Bank, the termination of the Commitments and the repayment, satisfaction or discharge of all other  obligations, debts and liabilities of the Borrowers under this Agreement and the other Loan Documents.  (q)Section 2.15 Sharing of Payments, Etc.  If any Lender shall obtain any payment (whether  voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on account of the  Advances owing to it (other than pursuant to Section 2.11, 2.14 or 8.04(e)) in excess of its ratable share of  payments on account of the Advances obtained by all the Lenders, such Lender receiving such greater  proportion shall (A) notify the Agent of such fact, and (B) purchase (for cash at face value) participations  in the Advances and subparticipations in L/C Exposure and Swingline Advances 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 Advances obtained by all the Lenders  in respect of the Facilities then owing to the Lenders; provided that:  (a) if any such participations or subparticipations are purchased and all or any  portion of the payment giving rise thereto is recovered, such participations or subparticipations  shall be rescinded and the purchase price restored to the extent of such recovery, without  interest; and  (b) the provisions of this Section shall not be construed to apply to (x) any payment  made by or on behalf of a Borrower pursuant to and in accordance with the express terms of  this Agreement (including the application of funds arising from the existence of a Defaulting  Lender), (y) the application of Cash Collateral provided for in Section 2.24, or (z) any payment  obtained by a Lender as consideration for the assignment of or sale of a participation in any of  its LoansAdvances or subparticipations in L/C Exposure or Swingline Advances to any  assignee or participant.  The Borrowers agree that any Lender so purchasing a participation from another Lender pursuant to this  Section 2.15 may, to the fullest extent permitted by law, exercise all its rights of payment (including the  right of set-off) with respect to such participation as fully as if such Lender were the direct creditor of the  respective Borrowers in the amount of such participation.  SECTION 2.14Section 2.16 Letters of Credit.  (a) (a) The Letter of Credit Facility.    (i) Subject to the terms and conditions hereinafter set forth (A) Issuing Bank agrees,  in reliance on the Agreements of the Lenders set forth in this Section (1) to issue standby letters  of credit (together with the Existing Letter of Credit, the “Letters of Credit”) for the account of  any Borrower from time to time on any Business Day during the period from the Effective Date  

 

    43      hereof until 10 days before the Termination Date in an aggregate Available Amount for all  Letters of Credit not to exceed at any time the lesser of (x) the Letter of Credit Facility at such  time and (y) the Unused Revolving Credit Commitments of the Lenders at such time, (provided  that in no event shall the Issuing Bank be required to issue a Letter of Credit if, after giving effect  to such issuance, the aggregate amount of the Revolving Credit Exposures of all Lenders shall  exceed the Revolving Credit Availability at such time) and to amend or extend Letters of Credit  previously issued by it in accordance with the terms of this Section 2.16, and (2) to honor  drawings under the Letters of Credit, and (B) the Lenders severally agree to participate in Letters  of Credit issued for the account of any Borrower and any drawings thereunder.  Each request by a  Borrower for the issuance or amendment of a Letter of Credit shall be deemed to be a  representation by the Borrowers that the issuance, extension or amendment of the Letter of Credit  so requested complies with the conditions set forth in the preceding sentence.  Within the  foregoing limits, and subject to the terms and conditions hereof, each Borrower’s ability to obtain  Letters of Credit shall be fully revolving, and accordingly such Borrower may, during the  foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that  have been drawn upon and reimbursed.    (ii) No Letter of Credit shall have an expiration date (including all rights of the  applicable Borrower or the beneficiary to require renewal) later than the earlier of (A) 10 days  before the Termination Date and (B) one year after the date of issuance thereof (but such Letter of  Credit may by its terms be automatically renewable (each, an “Auto-Extension Letter of Credit”);  provided that any such Auto-Extension Letter of Credit must permit the Issuing Bank to prevent  any such extension at least once in each twelve (12) month period (commencing with the date of  issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a  day (the “Non-Extension Notice Date”) in each such twelve (12) month period to be agreed upon  at the time such Letter of Credit is issued.  Unless otherwise directed by the Issuing Bank, the  applicable Borrower shall not be required to make a specific request to the Issuing Bank for any  such extension.  Once an Auto-Extension Letter of Credit has been issued, the Lenders shall be  deemed to have authorized (but may not require) the Issuing Bank to permit the extension of such  Letter of Credit at any time to an expiry date not later than the date 10 days before the  Termination Date; provided, however, that the Issuing Bank shall not permit any such extension  if (A) the Issuing Bank has determined that it would not be permitted, or would have no  obligation at such time to issue such Letter of Credit in its revised form (as extended) under the  terms hereof (by reason of the provisions of this Section 2.16 or otherwise), or (B) it has received  notice (which may be by telephone or in writing) on or before the day that is seven (7) Business  Days before the Non-Extension Notice Date (1) from the Agent that the Required Lenders have  elected not to permit such extension or (2) from the Agent, any Lender or a Borrower that one or  more of the applicable conditions specified in Section 3.02 is not then satisfied, and in each such  case directing the Issuing Bank not to permit such extension.    (iii) The Issuing Bank shall not be under any obligation to issue any Letter of Credit  if:    (A) any order, judgment or decree of any Governmental Authority or  arbitrator shall by its terms purport to enjoin or restrain the Issuing Bank from  issuing the Letter of Credit, or any law applicable to the Issuing Bank or any  request or directive (whether or not having the force of law) from any  Governmental Authority with jurisdiction over the Issuing Bank shall prohibit, or  request that the Issuing Bank refrain from, the issuance of letters of credit  generally or the Letter of Credit in particular or shall impose upon the Issuing  Bank with respect to the Letter of Credit any restriction, reserve or capital  

 

    44      requirement (for which the Issuing Bank is not otherwise compensated  hereunder) not in effect on the Effective Date, or shall impose upon the Issuing  Bank any unreimbursed loss, cost or expense which was not applicable on the  Effective Date and which the Issuing Bank in good faith deems material to it;    (B) the issuance of the Letter of Credit would violate one or more  policies of the Issuing Bank applicable to letters of credit generally;    (C) except as otherwise agreed by the Agent and the Issuing Bank,  the Letter of Credit is in an initial stated amount of less than $100,000;     (D) the Letter of Credit is to be denominated in a currency other than  Dollars;     (E) any Lender is at that time a Defaulting Lender, unless the Issuing  Bank has entered into arrangements, including the delivery of Cash Collateral,  satisfactory to the Issuing Bank (in its sole discretion) with the Borrowers or such  Lender to eliminate the Issuing Bank’s actual or potential Fronting Exposure  (after giving effect to Section 2.22(a)(iv)) with respect to the Defaulting Lender  arising from either the Letter of Credit then proposed to be issued or that Letter  of Credit and all other L/C Exposure as to which the Issuing Bank has actual or  potential Fronting Exposure, as it may elect in its sole discretion; or    (F) the Letter of Credit contains any provisions for automatic  reinstatement of the stated amount after any drawing thereunder.    (iv) The Issuing Bank shall not amend any Letter of Credit if the Issuing Bank would  not be permitted at such time to issue the Letter of Credit in its amended form under the terms  hereof.    (v) The Issuing Bank shall be under no obligation to amend any Letter of Credit if  (A) the Issuing Bank would have no obligation at such time to issue such Letter of Credit in its  amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does not  accept the proposed amendment to the Letter of Credit.    (vi) The Issuing Bank shall act on behalf of the Lenders with respect to any Letters of  Credit issued by it and the documents associated therewith, and the Issuing Bank shall have all of  the benefits and immunities (A) provided to the Agent in Article VII with respect to any acts  taken or omissions suffered by the Issuing Bank in connection with Letters of Credit issued by it  or proposed to be issued by it and L/C Related Documents pertaining to such Letters of Credit as  fully as if the term “Agent” as used in Article VII included the Issuing Bank with respect to such  acts or omissions, and (B) as additionally provided herein with respect to the Issuing Bank.    (b) (b) Request for Issuance.   (i)  Each Letter of Credit shall be issued or amended, as the case may be, upon  request, given not later than 11:00 A.M. (New York City time) on the second Business Day prior  to the date of the proposed issuance or amendment of such Letter of Credit (or such later date and  time as the Agent and Issuing Bank may agree in a particular instance in their sole discretion), by  any Borrower to the Issuing Bank, which shall give to the Agent and each Lender prompt notice  thereof.  Each such notice of issuance of a Letter of Credit (a “Notice of Issuance”) shall be sent  

 

    45      by fax transmission, by United States mail, by overnight courier, by electronic transmission using  the system provided by the Issuing Bank, by personal delivery or by any other means acceptable  to the Issuing Bank, specifying therein (in form and detail satisfactory to the Issuing Bank), with  respect to any initial issuance of a Letter of Credit, the requested (A) date of such issuance (which  shall be a Business Day), (B) Available Amount of such Letter of Credit, (C) expiration date of  such Letter of Credit, (D) name and address of the beneficiary of such Letter of Credit, (E) the  documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text  of any certificate to be presented by such beneficiary in case of any drawing thereunder; (G) the  purpose and nature of the requested Letter of Credit; (H) such other matters as the Issuing Bank  may require, and shall be accompanied by such completed and signed application and agreement  for letter of credit as the Issuing Bank may specify to such Borrower for use in connection with  such requested Letter of Credit (in each case, a “Letter of Credit Agreement”).  In the case of a  request for an amendment of any outstanding Letter of Credit, such Letter of Credit Agreement  shall specify in form and detail satisfactory to the Issuing Bank (1) the Letter of Credit to be  amended; (2) the proposed date of amendment thereof (which shall be a Business Day); (3) the  nature of the proposed amendment; and (4) such other matters as the Issuing Bank may require.   Additionally, the applicable Borrower shall furnish to the Issuing Bank and the Agent such other  documents and information pertaining to such requested Letter of Credit issuance or amendment,  including any L/C Related Documents, as the Issuing Bank or the Agent may require.  (ii) Promptly after receipt of any Letter of Credit Agreement, the Issuing Bank will  confirm with the Agent (by telephone or in writing) that the Agent has received a copy of such  Letter of Credit Agreement from the applicable Borrower and, if not, the Issuing Bank will  provide the Agent with a copy thereof.  Unless the Issuing Bank has received written notice from  any Lender, the Agent or any Borrower, at least one (1) Business Day prior to the requested date  of issuance or amendment of the applicable Letter of Credit, that one or more applicable  conditions contained in Article III shall not then be satisfied, then, subject to the terms and  conditions hereof, the Issuing Bank shall, on the requested date, issue a Letter of Credit for the  account of the applicable Borrower or enter into the applicable amendment, as the case may be, in  each case in accordance with the Issuing Bank’s usual and customary business practices.   Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and  hereby irrevocably and unconditionally agrees to, purchase from the Issuing Bank a risk  participation in such Letter of Credit in an amount equal to the product of such Lender’s Pro Rata  Share of the Available Amount of such Letter of Credit.      (iii) Promptly after its delivery of any Letter of Credit or any amendment to a Letter  of Credit to an advising bank with respect thereto or to the beneficiary thereof, the Issuing Bank  will also deliver to the Borrowers and the Agent a true and complete copy of such Letter of Credit  or amendment.    (c) (c) Drawings and Reimbursements; Funding of Participations.    (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a  drawing under such Letter of Credit, the Issuing Bank shall notify the Borrowers and the Agent  thereof.  Not later than 11:00 a.m. on the date of any payment by the Issuing Bank under a Letter  of Credit (each such date, an “Honor Date”), the applicable Borrower shall reimburse the Issuing  Bank through the Agent  in an amount equal to the amount of such drawing.  If the Borrowers fail  to so jointly and severally reimburse the Issuing Bank by such time, the Agent shall promptly  notify each Lender of the Honor Date, the amount of the unreimbursed drawing (the  “Unreimbursed Amount”), and the amount of such Lender’s Pro Rata Share thereof.  In such  event, the Borrowers shall be deemed to have requested a  Revolving Credit Borrowing in the  

 

    46      form of a Base Rate Advance to be disbursed on the Honor Date in an amount equal to the  Unreimbursed Amount without regard to the minimum and multiples specified in Section 2.01 for  the principal amount of Base Rate Advances, but subject to the amount of the unutilized portion  of the Revolving Credit Commitments and the conditions set forth in Section 3.02 (other than the  delivery of a Loan Notice).  Any notice given by the Issuing Bank or the Agent pursuant to this  Section 2.16(c)(i) may be given by telephone if immediately confirmed in writing; provided that  the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect  of such notice.  (ii) Each Lender shall upon any notice pursuant to Section 2.16(c)(i) make funds  available (and the Agent may apply Cash Collateral provided for this purpose) for the account of  the Issuing Bank at the Agent’s Applicable Lending Office in an amount equal to its Pro Rata  Share of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified in  such notice by the Agent, whereupon, subject to the provisions of Section 2.16(c)(iii), each  Lender that so makes funds available shall be deemed to have made a Revolving Credit  Borrowing in the form of a Base Rate Advance to the applicable Borrower in such amount.  The  Agent shall remit the funds so received to the Issuing Bank.  (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a  Revolving Credit Borrowing in the form of a Base Rate Advance because the conditions set forth  in Section 3.02 cannot be satisfied or for any other reason, the Borrowers shall be deemed to have  incurred from the Issuing Bank a Letter of Credit Advance in the amount of the Unreimbursed  Amount that is not so refinanced, which Letter of Credit Advance shall be due and payable on  demand (together with interest) and shall bear interest at the a rate equal 2% per annum above the  rate per annum required to be paid on Base Rate Advances.  In such event, each Lender’s  payment to the Agent for the account of the Issuing Bank pursuant to Section 2.16(c)(ii) shall be  deemed payment in respect of its participation in such Letter of Credit Advance in satisfaction of  its participation obligation under this Section.    (iv) Until each Lender funds its Base Rate Advance or Letter of Credit Advance  pursuant to this Section 2.16(c) to reimburse the Issuing Bank for any amount drawn under any  Letter of Credit, interest in respect of such Lender’s Pro Rata Share of such amount shall be  solely for the account of the Issuing Bank.  (v) Each Lender’s obligation to make Base Rate Advances or Letter of Credit  Advances to reimburse the Issuing Bank for amounts drawn under Letters of Credit, as  contemplated by this Section 2.16(c), shall be absolute and unconditional and shall not be  affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or  other right which such Lender may have against the Issuing Bank, any Borrower, any Subsidiary  or any other Person for any reason whatsoever; (B) the occurrence or continuance of a Default; or  (C) any other occurrence, event or condition, whether or not similar to any of the foregoing;  provided, however, that each Lender’s obligation to make Letter of Credit Advances pursuant to  this Section 2.16(c) is subject to the conditions set forth in Section 3.02 (other than delivery by  the Borrowers of a Loan Notice).  No such making of a Letter of Credit Advance shall relieve or  otherwise impair the obligation of the Borrowers to reimburse the Issuing Bank for the amount of  any payment made by the Issuing Bank under any Letter of Credit, together with interest as  provided herein.  (vi) If any Lender fails to make available to the Agent for the account of the Issuing  Bank any amount required to be paid by such Lender pursuant to the foregoing provisions of this  Section 2.16(c) by the time specified in Section 2.16(c)(ii), then, without limiting the other  provisions of this Agreement, the Issuing Bank shall be entitled to recover from such Lender  

 

    47      (acting through the Agent), on demand, such amount with interest thereon for the period from the  date such payment is required to the date on which such payment is immediately available to the  Issuing Bank at a rate per annum equal to the greater of the Federal Funds Rate and a rate  determined by the Issuing Bank in accordance with banking industry rules on interbank  compensation, plus any administrative, processing or similar fees customarily charged by the  Issuing Bank in connection with the foregoing.  If such Lender pays such amount (with interest  and fees as aforesaid), the amount so paid shall constitute such Lender’s Base Rate Advance  included in the relevant Revolving Credit Borrowing or such Lender’s funding of its participation  in accordance with its Pro Rata Share in respect of the relevant Letter of Credit Advance, as the  case may be.  A certificate of the Issuing Bank submitted to any Lender (through the Agent) with  respect to any amounts owing under this Section 2.16(c)(vi) shall be conclusive absent manifest  error.  (d) (d) Repayment of Participations.    (i) At any time after the Issuing Bank has made a payment under any Letter of  Credit and has received from any Lender in respect of such payment such Lender’s Pro Rata  Share of the relevant Letter of Credit Advance in accordance with Section 2.16(c), if the Agent  receives for the account of the Issuing Bank any payment in respect of the related Unreimbursed  Amount or interest thereon (whether directly from the Borrowers or otherwise, including  proceeds of Cash Collateral applied thereto by the Agent), the Agent will distribute to such  Lender its Pro Rata Share thereof in the same funds as those received by the Agent.  (ii) If any payment received by the Agent for the account of the Issuing Bank  pursuant to Section 2.16(c)(i) is required to be returned under any of the circumstances described  in Section 8.16 (including pursuant to any settlement entered into by the Issuing Bank in its  discretion), each Lender shall pay to the Agent for the account of the Issuing Bank its Pro Rata  Share thereof on demand of the Agent, plus interest thereon from the date of such demand to the  date such amount is returned by such Lender, at a rate per annum equal to the Federal Funds Rate  from time to time in effect.  The obligations of the Lenders under this clause shall survive the  payment in full of the obligations, debts and liabilities under this Agreement and the other Loan  Documents and the termination of this Agreement.  (e) (e) Failure to Make Letter of Credit Advances.  The failure of any Lender to make the Letter  of Credit Advance or Base Rate Advance to be made by it on the date specified in Section 2.16(c) shall  not relieve any other Lender of its obligation hereunder to make its Letter of Credit Advance or Base Rate  Advance on such date, but no Lender shall be responsible for the failure of any other Lender to make the  Letter of Credit Advance or Base Rate Advance to be made by such other Lender on such date.  (f) (f) Obligations Absolute.  The obligations of the Borrowers under this Agreement, any  Letter of Credit Agreement, and any other agreement or instrument relating to any Letter of Credit shall  be unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this  Agreement, such Letter of Credit Agreement and such other agreement or instrument under all  circumstances, including, without limitation, the following circumstances:  (i) (i) any lack of validity or enforceability of this Agreement, any Note, any Letter of Credit  Agreement, any Letter of Credit, or any other agreement or instrument entered into by the  Issuing Bank  and the applicable Borrower or in favor of the Issuing Bank and relating to such Letter of Credit (all of  the foregoing being, collectively, the “L/C Related Documents”)  

 

    48      (ii) (ii) any change in the time, manner or place of payment of, or in any other term of, all or any  of the obligations of any Borrower in respect of any L/C Related Document or any other amendment or  waiver of or any consent to departure from all or any of the L/C Related Documents;  (iii) (iii) the existence of any claim, set-off, defense or other right that any Borrower may have at  any time against any beneficiary or any transferee of a Letter of Credit (or any Persons for whom any  such beneficiary or any such transferee may be acting), the Issuing Bank or any other Person, whether in  connection with the transactions contemplated by this Agreement or by such Letter of Credit, the L/C  Related Documents, the transactions contemplated hereby or thereby or any unrelated transaction;  (iv) (iv) any draft, demand, endorsement, certificate, statement or any other document presented  under or in connection with a Letter of Credit proving to be forged, fraudulent, invalid or insufficient in  any respect or any statement therein being untrue or inaccurate in any respect; or any loss or delay in the  transmission or otherwise of any document required in order to make a drawing under such Letter of  Credit;   (v) (v) payment by the Issuing Bank under a Letter of Credit against presentation of a draft or  certificate that does not strictly comply with the terms of such Letter of Credit, unless such draft or  certificate is substantially different from the applicable form specified by such Letter of Credit; or any  payment made by the Issuing Bank under such Letter of Credit to any Person purporting to be a trustee in  bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other  representative of or successor to any beneficiary or any transferee of such Letter of Credit, including any  arising in connection with any proceeding under any Debtor Relief Law;  (vi) (vi) any exchange, release or non-perfection of any Cash Collateral or other collateral, or any  release or amendment or waiver of or consent to departure from any guarantee, for all or any of the  obligations of the applicable Borrower in respect of the L/C Related Documents;  (vii) (vii) waiver by the Issuing Bank of any requirement that exists for the Issuing Bank’s  protection and not the protection of the Borrowers or any waiver by the Issuing Bank which does not in  fact materially prejudice the Borrowers;  (viii) (viii) honor of a demand for payment presented electronically even if such Letter of Credit  requires that demand be in the form of a draft;  (ix) (ix) any payment made by the Issuing Bank in respect of an otherwise complying item  presented after the date specified as the expiration date of, or the date by which documents must be  received under, such Letter of Credit if presentation after such date is authorized by the UCC, the ISP or  the UCP, as applicable; or  (x) (x) any other circumstance or happening whatsoever, whether or not similar to any of the  foregoing, including, without limitation, any other circumstance that might otherwise constitute a defense  available to, or a discharge of, the applicable Borrower or a guarantor.  The applicable Borrower shall promptly examine a copy of each Letter of Credit and each  amendment thereto that is delivered to it and, in the event of any claim of noncompliance with such  Borrower’s instructions or other irregularity, such Borrower will immediately notify the Issuing Bank.   The Borrowers shall be conclusively deemed to have waived any such claim against the Issuing Bank and  its correspondents unless such notice is given as aforesaid.  (g) (g) Compensation.  

 

    49       (i) The Borrowers shall jointly and severally pay to the Agent for the account of  each Lender, but subject to Section 2.22, a commission on such Lender’s Pro Rata Share of the  daily aggregate Available Amount of all Letters of Credit outstanding from time to time at a rate  per annum equal to the Applicable Rate for Eurodollar Rate Advances in effect from time to time  calculated in arrears and payable for the quarterly period ending on the last Business Day of each  February, May, August and November, on the Termination Date, and thereafter on demand. If  there is any change in the Applicable Rate during any quarter, the daily amount available to be  drawn under each Letter of Credit shall be computed and multiplied by the Applicable Rate  separately for each period during such quarter that such Applicable Rate was in effect.   (ii) (ii) The Borrowers shall jointly and severally pay to the Issuing Bank, for its  own account, a fronting fee with respect to each Letter of Credit, at the rate per annum specified in the  Fee Letter, computed on  the daily Available Amount under such Letter of Credit on a quarterly basis in  arrears.  Such fronting fee shall be due and payable on or prior to the date that is ten (10) Business Days  following the last Business Day of each February, May, August and November, commencing with the  first such date to occur after the issuance of such Letter of Credit, on the Termination Date and thereafter  on demand.  For purposes of computing the daily Available Amount to be drawn under any Letter of  Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06.  In  addition, the Borrowers shall jointly and severally pay directly to the Issuing Bank for its own account the  customary issuance, presentation, transfer, amendment and other processing fees, and other standard costs  and charges, of the Issuing Bank relating to letters of credit as from time to time in effect.  Such  customary fees and standard costs and charges are due and payable on demand and are nonrefundable.  (h) (h) Existing Letter of Credit.  Effective as of the Effective Date (i) the letter of credit issued  for the account of the Borrowers prior to such date under the Existing Credit Agreement and set forth on  Schedule 2.16(h) hereto (such letter of credit being the “Existing Letter of Credit”) in the aggregate face  amount not exceeding the total amount set forth on such Schedule will be deemed to have been issued as,  and be, a Letter of Credit hereunder and deemed L/C Exposure, and from and after the Effective Date  shall be subject to and governed by the terms and conditions hereof, and (ii) the Existing Letter of Credit  and the reimbursement obligations in respect thereof shall be obligations of the Borrowers hereunder.  (i) (i) Role of Issuing Bank.  Each Lender and the Borrowers agree that, in paying any drawing  under a Letter of Credit, the Issuing Bank shall not have any responsibility to obtain any document (other  than any sight or time draft, certificates and documents expressly required by the Letter of Credit) or to  ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person  executing or delivering any such document.  None of the Issuing Bank, the Agent, any of their respective  Related Parties nor any correspondent, participant or assignee of the Issuing Bank shall be liable to any  Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the  Lenders; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or  (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to  any Letter of Credit or L/C Related Document.  Each Borrower hereby assumes all risks of the acts or  omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided,  however, that this assumption is not intended to, and shall not, preclude such Borrower’s pursuing such  rights and remedies as it may have against the beneficiary or transferee at law or under any other  agreement.  None of the Issuing Bank, the Agent, any of their respective Related Parties nor any  correspondent, participant or assignee of the Issuing Bank shall be liable or responsible for any of the  matters described in Section 2.16(f); provided, however, that anything in such clauses to the contrary  notwithstanding, the Borrowers may have a claim against the Issuing Bank, and the Issuing Bank may be  liable to the Borrowers, to the extent, but only to the extent, of any direct, as opposed to consequential or  exemplary, damages suffered by the Borrowers which the Borrowers prove, as determined by a final  nonappealable judgment of a court of competent jurisdiction, were caused by the Issuing Bank’s willful  

 

    50      misconduct or gross negligence or the Issuing Bank’s willful failure to pay under any Letter of Credit  after the presentation to it by the beneficiary of a sight or time draft and certificate(s) strictly complying  with the terms and conditions of a Letter of Credit.  In furtherance and not in limitation of the foregoing,  the Issuing Bank may accept documents that appear on their face to be in order, without responsibility for  further investigation, regardless of any notice or information to the contrary, and the Issuing Bank shall  not be responsible for the validity or sufficiency of any instrument transferring, endorsing or assigning or  purporting to transfer, endorse or assign a Letter of Credit or the rights or benefits thereunder or proceeds  thereof, in whole or in part, which may prove to be invalid or ineffective for any reason.  The Issuing  Bank may send a Letter of Credit or conduct any communication to or from the beneficiary via the  Society for Worldwide Interbank Financial Telecommunication (“SWIFT”) message or overnight courier,  or any other commercially reasonable means of communicating with a beneficiary.  (j) (j) Applicability of ISP and UCP; Limitation of Liability.  Unless otherwise  expressly agreed by the Issuing Bank and the applicable Borrower when a Letter of Credit is issued  (including any such agreement applicable to the Existing Letter of Credit), the rules of the ISP shall apply  to each Letter of Credit.  Notwithstanding the foregoing, the Issuing Bank shall not be responsible to the  Borrowers for, and the Issuing Bank’s rights and remedies against the Borrowers shall not be impaired  by, any action or inaction of the Issuing Bank required or permitted under any law, order, or practice that  is required or permitted to be applied to any Letter of Credit or this Agreement, including the law or any  order of a jurisdiction where the Issuing Bank or the beneficiary is located, the practice stated in the ISP  or, if applicable, the UCP, or in the decisions, opinions, practice statements, or official commentary of the  ICC Banking Commission, the Bankers Association for Finance and Trade - International Financial  Services Association (BAFT-IFSA), or the Institute of International Banking Law & Practice, whether or  not any Letter of Credit chooses such law or practice.  (k) (k) Conflict with L/C Related Documents.  In the event of any conflict between the terms  hereof and the terms of any L/C Related Document, the terms hereof shall control.    (l) Use of Proceeds.  The proceeds of the Advances shall be available (and the Borrowers  agree that they shall use such proceeds) for general corporate purposes of the Borrowers and their  Subsidiaries (including share repurchases, refinancing existing indebtedness and consensual acquisitions).  SECTION 2.14 Increase in the Aggregate Commitments.   The Borrowers may, at  any time but in any event not more than once in any calendar year prior to the Termination Date,  by notice to the Agent, request that the aggregate amount of the Revolving Credit Commitment  be increased by an amount of $10,000,000 or an integral multiple of $10,000,000 in excess  thereof (each a “Revolving Credit Commitment Increase”) to be effective as of a date that is at  least 90 days prior to the scheduled Termination Date then in effect (the “Increase Date”) as  specified in the related notice to the Agent; provided, however that (i) in no event shall the  aggregate amount of the Revolving Credit Commitments at any time exceed $525,000,000 and  (ii) on the date of any request by the Borrowers for a Revolving Credit Commitment Increase  and on the related Increase Date, no Default shall have occurred and be continuing.  (o) The Agent shall promptly notify the Lenders of a request by the Borrowers for a  Revolving Credit Commitment Increase, which notice shall include (i) the proposed amount of  such requested Revolving Credit Commitment Increase, (ii) the proposed Increase Date and (iii)  the date by which Lenders wishing to participate in the Revolving Credit Commitment Increase  must commit to an increase in the amount of their respective Revolving Credit Commitments  (the “Commitment Date”).  Each Lender that is willing to participate in such requested  Revolving Credit Commitment Increase (each an “Increasing Lender”) shall, in its sole  

 

    51      discretion, give written notice to the Agent on or prior to the Commitment Date of the amount by  which it is willing to increase its Revolving Credit Commitment.  If the Lenders notify the Agent  that they are willing to increase the amount of their respective Revolving Credit Commitments  by an aggregate amount that exceeds the amount of the requested Revolving Credit Commitment  Increase, the requested Revolving Credit Commitment Increase shall be allocated among the  Lenders willing to participate therein in such amounts as are agreed between the Borrowers and  the Agent.  (p) Promptly following each Commitment Date, the Agent shall notify the Borrowers  as to the amount, if any, by which the Lenders are willing to participate in the requested  Revolving Credit Commitment Increase.  If the aggregate amount by which the Lenders are  willing to participate in any requested Revolving Credit Commitment Increase on any such  Commitment Date is less than the requested Revolving Credit Commitment Increase, then the  Borrowers may extend offers to one or more Eligible Assignees to participate in any portion of  the requested Revolving Credit Commitment Increase that has not been committed to by the  Lenders as of the applicable Commitment Date; provided, however, that the Revolving Credit  Commitment of each such Eligible Assignee shall be in an amount of $5,000,000 or an integral  multiple of $1,000,000 is excess thereof.  (q) On each Increase Date, each Eligible Assignee that accepts an offer to participate  in a requested Revolving Credit Commitment Increase in accordance with Section 2.18(c) (each  such Eligible Assignee, an “Assuming Lender”) shall become a Lender party to this Agreement  as of such Increase Date and the Commitment of each Increasing Lender for such requested  Revolving Credit Commitment Increase shall be so increased by such amount (or by the amount  allocated to such Lender pursuant to the last sentence of Section 2.18(b)) as of such Increase  Date; provided, however, that the Agent shall have received on or before such Increase Date the  following, each dated such date:  ( ) (A) certified copies of resolutions of the Board of Directors of each Borrower or an  authorized committee of such Board approving the Revolving Credit Commitment Increase and the  corresponding modifications to this Agreement (B) an opinion of counsel for the Borrowers in the form  and substance satisfactory to the Agent;  ( ) an assumption agreement from each Assuming Lender, if any, in form and  substance satisfactory to the Borrowers and the Agent (each an “Incremental Assumption  Agreement”), duly executed by such Eligible Assignee, the Agent and the Borrowers;   ( ) confirmation from each Increasing Lender of the increase in the amount of its Revolving  Credit Commitment in a writing satisfactory to the Borrowers and the Agent; and  ( ) an Administrative Questionnaire from each Assuming Lender, if any.  On each Increase Date, upon fulfillment of the conditions set forth in the immediately preceding  sentence of this Section 2.18(d), the Agent shall notify the Lenders (including, without limitation, each  Assuming Lender) and the Borrowers, on or before 1:00 P.M. (New York City time), of the occurrence of  the Revolving Credit Commitment Increase to be effected on such Increase Date and shall record in the  Register the relevant information with respect to each Increasing Lender and each Assuming Lender on  such date.  Upon request, each Borrower (at its expense) shall execute and deliver a Note to each  Assuming Lender.  

 

    52      (w) Conflicting Provisions.  This Section shall supersede any provisions in Section  2.15 or 8.01 to the contrary.  Section 2.17 Incremental Facility.  Except as otherwise specifically set forth herein, all  of the other terms and conditions applicable to Revolving Credit Commitment Increase shall be  identical to the terms and conditions applicable to the Revolving Credit Facility.  Section 2.18 Inability to Determine Rates  .  (a) (a) If in connection with any request for a Eurodollar Rate Advance or  a conversion to or continuation thereof, (i) the Agent determines that (A) Dollar deposits are not  being offered to banks in the London interbank market for the applicable amount and Interest  Period of such Eurodollar Rate Advance, or (B) (1) adequate and reasonable means do not exist  for determining the Eurodollar Rate for any requested Interest Period with respect to a proposed  Eurodollar Rate Advance or in connection with an existing or proposed Base Rate Advance and  (2) the circumstances described in Section 2.18(c)(i) do not apply (in each case with respect to  this clause (i), “Impacted Loans”), or (ii) the Agent or the Required Lenders determine that for  any reason Eurodollar Rate for any requested Interest Period with respect to a proposed  Eurodollar Rate Advance does not adequately and fairly reflect the cost to such Lenders of  funding such Advance, the Agent will promptly so notify the Borrowers and each Lender.  Thereafter, (x) the obligation of the Lenders to make or maintain Eurodollar Rate Advances shall  be suspended (to the extent of the affected Eurodollar Rate Advances or Interest Periods), and (y)  in the event of a determination described in the preceding sentence with respect to the Eurodollar  Rate component of the Base Rate, the utilization of the Eurodollar Rate component in  determining the Base Rate shall be suspended, in each case until the Agent (or, in the case of a  determination by the Required Lenders described in clause (ii) of this Section 2.18(a), until the  Agent upon instruction of the Required Lenders) revokes such notice.  Upon receipt of such  notice, the Borrowers may revoke any pending request for a Borrowing of, conversion to or  continuation of Eurodollar Rate Advances (to the extent of the affected Eurodollar Rate  Advances or Interest Periods) or, failing that, will be deemed to have converted such request into  a request for a Borrowing of Base Rate Advances in the amount specified therein.   (b) Notwithstanding the foregoing, if the Agent has made the  determination described in clause (a)(i) of this Section 2.18, the Agent in consultation with the  Borrowers, may establish an alternative interest rate for the Impacted Loans, in which case, such  alternative rate of interest shall apply with respect to the Impacted Loans until (i) the Agent  revokes the notice delivered with respect to the Impacted Loans under clause (a)(i) of this  Section 2.18, (ii) the Agent or the Required Lenders notify the Agent and the Borrowers that  such alternative interest rate does not adequately and fairly reflect the cost to such Lenders of  funding the Impacted Loans, or (iii) any Lender determines that any law has made it unlawful, or  that any Governmental Authority has asserted that it is unlawful, for such Lender or its  applicable lending office to make, maintain or fund Advances whose interest is determined by  reference to such alternative rate of interest or to determine or charge interest rates based upon  such rate or any Governmental Authority has imposed material restrictions on the authority of  such Lender to do any of the foregoing and provides the Agent and the Borrower written notice  thereof.  

 

    53      (c) Notwithstanding anything to the contrary in this Agreement or any other  Loan Documents, if the Agent determines (which determination shall be conclusive absent  manifest error), or the Borrowers or Required Lenders notify the Agent (with, in the case of the  Required Lenders, a copy to the Borrowers) that the Borrowers or Required Lenders (as  applicable) have determined, that:  (i) adequate and reasonable means do not exist for ascertaining  LIBOR for any Interest Period hereunder or any other tenors of LIBOR, including,  without limitation, because the LIBOR Screen Rate is not available or published on a  current basis and such circumstances are unlikely to be temporary; or  (ii) the administrator of the LIBOR Screen Rate or a Governmental  Authority having jurisdiction over the Agent or such administrator has made a public  statement identifying a specific date after which LIBOR or the LIBOR Screen Rate shall  no longer be made available, or used for determining the interest rate of loans, provided  that, at the time of such statement, there is no successor administrator that is satisfactory  to the Agent, that will continue to provide LIBOR after such specific date (such specific  date, the “Scheduled Unavailability Date”); or  (iii) the administrator of the LIBOR Screen Rate or a Governmental  Authority having jurisdiction over such administrator has made a public statement  announcing that all Interest Periods and other tenors of LIBOR are no longer  representative; or  (iv) syndicated loans currently being executed, or that include language  similar to that contained in this Section 2.18, are being executed or amended (as  applicable) to incorporate or adopt a new benchmark interest rate to replace LIBOR;  then, in the case of clauses (i)-(iii) above, on a date and time determined by the Agent  (any such date, the “LIBOR Replacement Date”), which date shall be at the end of an Interest Period or  on the relevant interest payment date, as applicable, for interest calculated and shall occur reasonably  promptly upon the occurrence of any of the events or circumstances under clauses (i), (ii) or (iii) above  and, solely with respect to clause (ii) above, no later than the Scheduled Unavailability Date, LIBOR will  be replaced hereunder and under any Loan Document with, subject to the proviso below, the first  available alternative set forth in the order below for any payment period for interest calculated that can be  determined by the Agent, in each case, without any amendment to, or further action or consent of any  other party to, this Agreement or any other Loan Document (the “LIBOR Successor Rate”; and any such  rate before giving effect to the Related Adjustment, the “Pre-Adjustment Successor Rate”):  (x) Term SOFR plus the Related Adjustment; and  (y)  SOFR plus the Related Adjustment;  and in the case of clause (iv) above, the Borrowers and the Agent may amend this  Agreement solely for the purpose of replacing LIBOR under this Agreement and under any other Loan  Document in accordance with the definition of “LIBOR Successor Rate” and such amendment will  become effective at 5:00 p.m., on the fifth Business Day  after the Agent shall have notified all Lenders  and the Borrower of the occurrence of the circumstances described in clause (iv) above unless, prior to  such time, Lenders comprising the Required Lenders have delivered to the Agent written notice that such  Required Lenders object to the implementation of a LIBOR Successor Rate pursuant to such clause;  

 

    54      provided that, if the Agent determines that Term SOFR has become available, is  administratively feasible for the Agent and would have been identified as the Pre-Adjustment Successor  Rate in accordance with the foregoing if it had been so available at the time that the LIBOR Successor  Rate then in effect was so identified, and the Agent notifies the Borrowers and each Lender of such  availability, then from and after the beginning of the Interest Period, relevant interest payment date or  payment period for interest calculated, in each case, commencing no less than thirty (30) days after the  date of such notice, the Pre-Adjustment Successor Rate shall be Term SOFR and the LIBOR Successor  Rate shall  be Term SOFR plus the relevant Related Adjustment.  The Agent will promptly (in one or more notices) notify the Borrowers and each Lender  of (x) any occurrence of any of the events, periods or circumstances under clauses (i) through (iii) above,  (y) a LIBOR Replacement Date and (z) the LIBOR Successor Rate.  Any LIBOR Successor Rate shall be applied in a manner consistent with market practice;  provided that to the extent such market practice is not administratively feasible for the Agent, such  LIBOR Successor Rate shall be applied in a manner as otherwise reasonably determined by the Agent.  Notwithstanding anything else herein, if at any time any LIBOR Successor Rate as so  determined would otherwise be less than 0.25%, the LIBOR Successor Rate will be deemed to be 0.25%  for the purposes of this Agreement and the other Loan Documents.  In connection with the implementation of a LIBOR Successor Rate, the Agent will have  the right to make LIBOR Successor Rate Conforming Changes from time to time and, notwithstanding  anything to the contrary herein or in any other Loan Document, any amendments implementing such  LIBOR Successor Rate Conforming Changes will become effective without any further action or consent  of any other party to this Agreement; provided that, with respect to any such amendment effected, the  Agent shall post each such amendment implementing such LIBOR Successor Rate Conforming Changes  to the Borrowers and the Lenders reasonably promptly after such amendment becomes effective.  If the events or circumstances of the type described in 2.18(c)(i)-(iii) have occurred with  respect to the LIBOR Successor Rate then in effect, then the successor rate thereto shall be determined in  accordance with the definition of “LIBOR Successor Rate.”  (d) Notwithstanding anything to the contrary herein, (i) after any such  determination by the Agent or receipt by the Agent of any such notice described under Section  2.18(c)(i)-(iii), as applicable, if the Agent determines that none of the LIBOR Successor Rates is  available on or prior to the LIBOR Replacement Date, (ii) if the events or circumstances  described in Section 2.18(c)(iv) have occurred but none of the LIBOR Successor Rates is  available, or (iii) if the events or circumstances of the type described in Section 2.18(c)(i)-(iii)  have occurred with respect to the LIBOR Successor Rate then in effect and the Agent determines  that none of the LIBOR Successor Rates is available, then in each case, the Agent and the  Borrowers may amend this Agreement solely for the purpose of replacing LIBOR or any then  current LIBOR Successor Rate in accordance with this Section 2.18 at the end of any Interest  Period, relevant interest payment date or payment period for interest calculated, as applicable,  with another alternate benchmark rate giving due consideration to any evolving or then existing  convention for similar U.S. dollar denominated syndicated credit facilities for such alternative  benchmarks and, in each case, including any Related Adjustments and any other mathematical or  other adjustments to such benchmark giving due consideration to any evolving or then existing  convention for similar U.S. dollar denominated syndicated credit facilities for such benchmarks,  which adjustment or method for calculating such adjustment shall be published on an  

 

    55      information service as selected by the Agent from time to time in its reasonable discretion and  may be periodically updated. For the avoidance of doubt, any such proposed rate and  adjustments shall constitute a LIBOR Successor Rate.  Any such amendment shall become  effective at 5:00 p.m. on the fifth Business Day after the Agent shall have posted such proposed  amendment to all Lenders and the Borrowers unless, prior to such time, Lenders comprising the  Required Lenders have delivered to the Agent written notice that such Required Lenders object  to such amendment.  (e) If, at the end of any Interest Period, relevant interest payment date or  payment period for interest calculated, no LIBOR Successor Rate has been determined in  accordance with clauses (c) or (d) of this Section 2.18 and the circumstances under clauses (c)(i)  or (c)(iii) above exist or the Scheduled Unavailability Date has occurred (as applicable), the  Agent will promptly so notify the Borrowers and each Lender. Thereafter, (x) the obligation of  the Lenders to make or maintain Eurodollar Rate Advances shall be suspended, (to the extent of  the affected Eurodollar Rate Advances, Interest Periods, interest payment dates or payment  periods), and (y) the Eurodollar Rate component shall no longer be utilized in determining the  Base Rate, until the LIBOR Successor Rate has been determined in accordance with clauses (c)  or (d). Upon receipt of such notice, the Borrower may revoke any pending request for a  Borrowing of, conversion to or continuation of Eurodollar Rate Advances (to the extent of the  affected Eurodollar Rate Advances, Interest Periods, interest payment dates or payment periods)  or, failing that, will be deemed to have converted such request into a request for a Borrowing of  Base Rate Advances (subject to the foregoing clause (y)) in the amount specified therein.  SECTION 2.15Section 2.19 Obligations and Communications of the Borrowers.  All  obligations, representations, warranties, covenants and other agreements of either or both of the  Borrowers under this Agreement, the Notes and the other Loan Documents shall be joint and several  liabilities of both of the Borrowers; provided, however, that anything herein or in the other Loan  Documents to the contrary notwithstanding, the liability of the Operating Company with respect to the  obligations of the Holding Company shall in no event exceed the maximum permissible amount for which  the Operating Company may be obligated under § 548 of the United States Bankruptcy Code or  applicable state fraudulent conveyance law.  Any notice given to, any knowledge held by or any  knowledge imputed to either Borrower shall be deemed to be within the knowledge of both of the  Borrowers.  Any certificate, notice, request, statement or other document or communication signed or  made on behalf or in the name of either or both of the Borrowers shall be deemed to have been signed or  made by both of the Borrowers unless expressly disclaimed in a particular document or communication.   Reference to a single specific Borrower, whether by name, officer’s title, letterhead or otherwise, shall not  constitute an express disclaimer of any of the foregoing.  Any telephone notice permitted to be given by  the Borrowers under this Article II shall be sufficient if given by an appropriate officer of either  Borrower, and shall be deemed to have been given by both Borrowers.  SECTION 2.16Section 2.20 Subrogation and Contribution.  Each Borrower covenants and  agrees that, until the obligations of the Borrowers under this Agreement and the other Loan Documents  have been fully paid and satisfied, any and all subrogation, contribution and other similar rights of such  Borrower against or in respect of (A) the other Borrower, (B) any of the assets and properties of the other  Borrower, or (C) any other co-obligor or indemnitor of any of the other Borrower’s payments or  obligations under any of the Loan Documents, whether now existing or hereafter acquired or created, and  whether resulting from any payment made by such Borrower or otherwise, shall be subordinate and  inferior in dignity and deferred as to payment to the full payment and satisfaction of all of such  obligations.  (However, such subordination of subrogation, contribution and similar rights is not intended  

 

    56      to include, and this Section is not intended to affect, the intercompany advances and dividends permitted  under this Agreement.) Neither Borrower shall seek any payment or exercise or enforce any right, power,  privilege, remedy or interest that it may have with respect to any such subrogation, contribution or other  similar right except with the prior written consent of the Agent (with the consent of the Required Lenders,  as and if required) and for the benefit of all of the Lenders.  Any payment, asset or property delivered to  or for the benefit of any Borrower in respect of any such subrogation, contribution or other similar right  shall be accepted in trust for the benefit of all of the Lenders and shall be promptly paid or delivered to  the Agent (for the benefit of all of the Lenders) to be credited and applied to the payment and satisfaction  of the obligations of the Borrowers under this Agreement and the other Loan Documents, whether  contingent, matured or unmatured, or to be held by the Agent (for the benefit of all of the Lenders) as  additional collateral, as the Agent (with the consent of the Required Lenders, as and if required) may elect  in its sole and absolute discretion.  SECTION 2.17Section 2.21 Fees.  (a) (a) Facility Fee.  The Borrowers, jointly and severally, agree to pay to the Agent for the  account of each Lender a facility fee on the aggregate amount of such Lender’s Revolving Credit  Commitment from the date hereof in the case of each Initial Lender and from the effective date specified  in the Incremental Assumption Agreement or in the Assignment and Assumption pursuant to which it  became a Lender in the case of each other Lender until the Termination Date at a rate per annum equal to  the Applicable Rate in effect from time to time, payable in arrears quarterly on the last day of each  February, May, August and November, commencing February 28, 2017, and on the Termination Date.  (b) (b) Agent’s Fees.  The Borrowers, jointly and severally, shall pay to the Agent for its own  account fees in the amounts and at the times specified in the Fee Letter.  Such fees shall be fully earned  when paid and shall not be refundable for any reason whatsoever.  (c)Section 2.22 Defaulting Lenders.    (a) Adjustments.  Notwithstanding anything to the contrary contained in this  Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no longer  a Defaulting Lender, to the extent permitted by applicable law:     (i) Waivers and Amendments.  Such Defaulting Lender’s right to approve or  disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted  as set forth in the definition of “Required Lenders” and Section 8.01.     (ii) Defaulting Lender Waterfall.  Any payment of principal, interest, fees or other  amounts received by the Agent for the account of such Defaulting Lender (whether voluntary or  mandatory, at maturity, pursuant to Article VI or otherwise) or received by the Agent from a  Defaulting Lender pursuant to Section 8.05 shall be applied at such time or times as may be  determined by the Agent as follows:  first, to the payment of any amounts owing by such  Defaulting Lender to the Agent hereunder; second, to the payment on a pro rata basis of any  amounts owing by such Defaulting Lender to the Issuing Bank or Swingline Lender hereunder;  third, to Cash Collateralize the Issuing Bank’s Fronting Exposure with respect to such Defaulting  Lender in accordance with Section 2.24; fourth, as the Borrowers may request (so long as no  Default or Event of Default exists), to the funding of any Advance in respect of which such  Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as  determined by the Agent; fifth, if so determined by the Agent and the Borrowers, to be held in a  deposit account and released pro rata in order to (A) satisfy such Defaulting Lender’s potential  future funding obligations with respect to Advances under this Agreement and (B) Cash  

 

    57      Collateralize the Issuing Bank’s future Fronting Exposure with respect to such Defaulting Lender  with respect to future Letters of Credit issued under this Agreement, in accordance with  Section 2.24; sixth, to the payment of any amounts owing to the Lenders, the Issuing Bank or  Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any  Lender, the Issuing Bank or the Swingline Lender against such Defaulting Lender as a result of  such Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no  Default or Event of Default exists, to the payment of any amounts owing to any Borrower as a  result of any judgment of a court of competent jurisdiction obtained by such Borrower against  such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under  this Agreement; and eighth, to such Defaulting Lender or as otherwise as may be required under  the Loan Documents in connection with any Lien conferred thereunder or directed by a court of  competent jurisdiction; provided that if (1) such payment is a payment of the principal amount of  any Revolving Credit Advance or Letter of Credit Advance in respect of which such Defaulting  Lender has not fully funded its appropriate share, and (2) such Revolving Credit Advances were  made or the related Letters of Credit were issued at a time when the conditions set forth in  Section 3.02 were satisfied or waived, such payment shall be applied solely to pay the Revolving  Credit Advances of, and L/C Exposure owed to, all Non-Defaulting Lenders on a pro rata basis  prior to being applied to the payment of any Revolving Credit Advances of, or L/C Exposure  owed to, such Defaulting Lender until such time as all Revolving Credit Advances and funded  and unfunded participations in L/C Exposure and Swingline Advances are held by the Lenders  pro rata in accordance with the Commitments hereunder without giving effect to Section  2.22(a)(v).  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender  that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral  pursuant to this Section 2.22(a)(ii) shall be deemed paid to and redirected by such Defaulting  Lender, and each Lender irrevocably consents hereto.     (iii) Certain Fees.    (A) Fees.  Each Defaulting Lender shall be entitled to receive fees  payable under Section 2.21(a) for any period during which that Lender is a  Defaulting Lender only to the extent allocable to the sum of (1) the  outstanding principal amount of the Revolving Credit Advances funded by it,  and (2) its Pro Rata Share of the stated amount of Letters of Credit for which  it has provided Cash Collateral pursuant to Section 2.24.    (B) Letter of Credit Fees. Each Defaulting Lender shall be entitled  to receive letter of credit fees pursuant to Section 2.16(g)(i) for any period  during which that Lender is a Defaulting Lender only to the extent allocable to  its Pro Rata Share of the stated amount of Letters of Credit for which it has  provided Cash Collateral pursuant to Section 2.24.      (C) Defaulting Lender Fees. With respect to any fee payable under  Section 2.21(a) or any letter of credit fees described in Section 2.16(g)(i) not  required to be paid to any Defaulting Lender pursuant to clause (A) or (B)  above, the Borrowers shall jointly and severally (1) pay to each Non- Defaulting Lender that portion of any such fee otherwise payable to such  Defaulting Lender with respect to such Defaulting Lender’s participation in  L/C Exposure or Swingline Advances that has been reallocated to such Non- Defaulting Lender pursuant to clause (iv) below, (2) pay to the Issuing Bank  and the Swingline Lender, as applicable, the amount of any such fee otherwise  payable to such Defaulting Lender to the extent allocable to such Issuing  

 

    58      Bank’s or Swingline Lender’s Fronting Exposure to such Defaulting Lender,  and (3) not be required to pay the remaining amount of any such fee.     (iv) Reallocation of Applicable Revolving Percentages to Reduce Fronting Exposure.   All or any part of such Defaulting Lender’s participation in L/C Exposure and Swingline  Advances shall be reallocated among the Non-Defaulting Lenders in accordance with their  respective Pro Rata Shares (calculated without regard to such Defaulting Lender’s Commitment)  but only to the extent that such reallocation does not cause the aggregate Revolving Credit  Exposure of any Non-Defaulting Lender to exceed such Non-Defaulting Lender’s Revolving  Credit Commitment.  No reallocation hereunder shall constitute a waiver or release of any claim  of any party hereunder against a Defaulting Lender arising from that Lender having become a  Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non- Defaulting Lender’s increased exposure following such reallocation.    (v) Cash Collateral, Repayment of Swingline Advances.  If the reallocation  described in clause (a)(iv) above cannot, or can only partially, be effected, the Borrowers shall,  without prejudice to any right or remedy available to it hereunder or under applicable law,  (A) first, prepay Swingline Advances in an amount equal to the Swingline Lender’s Fronting  Exposure and (B) second, Cash Collateralize the Issuing Bank’s Fronting Exposure in accordance  with the procedures set forth in Section 2.24.    (b) Defaulting Lender Cure.  If the Borrowers, the Agent, Swingline Lender and  the Issuing Bank agree in writing that a Lender is no longer a Defaulting Lender, the Agent will so notify  the parties hereto, whereupon as of the effective date specified in such notice and subject to any  conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that  Lender will, to the extent applicable, purchase at par that portion of outstanding Revolving Credit  Advances of the other Lenders or take such other actions as the Agent may determine to be necessary to  cause the Revolving Credit Advances and funded and unfunded participations in Letters of Credit and  Swingline Advances to be held on a pro rata basis by the Lenders in accordance with their Pro Rata  Shares (without giving effect to Section 2.22(a)(iv)), whereupon such Lender will cease to be a  Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued  or payments made by or on behalf of any Borrower while that Lender was a Defaulting Lender; and  provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change  hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party  hereunder arising from that Lender’s having been a Defaulting Lender.  (c) New Swingline Loans/Letters of Credit. So long as any Lender under the  Revolving Credit Facility is a Defaulting Lender, (i) the Swingline Lender shall not be required to fund  any Swingline Advances unless it is satisfied that it will have no Fronting Exposure after giving effect to  such Swingline Advance and (ii) the Issuing Bank shall not be required to issue, extend, increase,  reinstate or renew any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after  giving effect thereto.  SECTION 2.18Section 2.23 Mitigation Obligations; Replacement of Lenders.    (a) Designation of a Different Lending Office.  If any Lender requests  compensation under Section 2.11, or requires any Borrower to pay any Indemnified Taxes or additional  amounts to any Lender, the Issuing Bank, or any Governmental Authority for the account of any Lender  or the Issuing Bank pursuant to Section 2.14, or if any Lender gives a notice pursuant to Section 2.12,  then at the request of the Borrowers, such Lender or the Issuing Bank shall, as applicable, use reasonable  efforts to designate a different Applicable Lending Office for funding or booking its Advances hereunder  

 

    59      or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the  judgment of such Lender or the Issuing Bank, such designation or assignment (i) would eliminate or  reduce amounts payable pursuant to Section 2.11 or 2.14, as the case may be, in the future, or eliminate  the need for the notice pursuant to Section 2.12, as applicable, and (ii) in each case, would not subject  such Lender or the Issuing Bank, as the case may be, to any unreimbursed cost or expense and would not  otherwise be disadvantageous to such Lender or the Issuing Bank, as the case may be.  The Borrowers  hereby jointly and severally agree to pay all reasonable costs and expenses incurred by any Lender or the  Issuing Bank in connection with any such designation or assignment.    (b) Replacement of Lenders.  If any Lender requests compensation under Section  2.11, or if any Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or  any Governmental Authority for the account of any Lender pursuant to Section 2.14 and, in each case,  such Lender has declined or is unable to designate a different lending office in accordance with Section  2.23(a), the Borrowers may replace such Lender in accordance with Section 8.14.  SECTION 2.19Section 2.24 Cash Collateral.    (a) Certain Credit Support Events.  If (i) the Issuing Bank has honored any full or  partial drawing request under any Letter of Credit and such drawing has resulted in an Letter of Credit  Advance, (ii) as of the date 10 days before the Termination Date, any L/C Exposure for any reason  remains outstanding, (iii) any Borrower shall be required to provide Cash Collateral pursuant to 6.01, or  (iv) there shall exist a Defaulting Lender, the Borrowers shall immediately (in the case of clause (iii)  above) or within one (1) Business Day (in all other cases) following any request by the Agent or the  Issuing Bank, provide Cash Collateral in an amount not less than the applicable Minimum Collateral  Amount (determined in the case of Cash Collateral provided pursuant to clause (iv) above, after giving  effect to Section 2.22(a)(iv) and any Cash Collateral provided by the Defaulting Lender).      (b) Grant of Security Interest.  Each Borrower, and to the extent provided by any  Defaulting Lender, such Defaulting Lender, hereby grants to (and subjects to the control of) the Agent,  for the benefit of the Agent, the Issuing Bank and the Lenders, and agrees to maintain, a first priority  security interest in all such cash, deposit accounts and all balances therein, and all other property so  provided as collateral pursuant hereto, and in all proceeds of the foregoing, all as security for the  obligations to which such Cash Collateral may be applied pursuant to Section 2.24(c).  If at any time the  Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Agent  or the Issuing Bank as herein provided, or that the total amount of such Cash Collateral is less than the  Minimum Collateral Amount, the Borrowers will, promptly upon demand by the Agent, jointly and  severally pay or provide to the Agent additional Cash Collateral in an amount sufficient to eliminate such  deficiency. All Cash Collateral (other than credit support not constituting funds subject to deposit) shall  be maintained in one or more blocked, non-interest bearing deposit accounts at Bank of America.  The  Borrowers shall jointly and severally pay on demand therefor from time to time all customary account  opening, activity and other administrative fees and charges in connection with the maintenance and  disbursement of Cash Collateral.    (c) Application.  Notwithstanding anything to the contrary contained in this  Agreement, Cash Collateral provided under any of this Section 2.24 or Sections 2.16, 2.22 or 6.01 in  respect of Letters of Credit shall be held and applied to the satisfaction of the specific L/C Exposure,  obligations to fund participations therein (including, as to Cash Collateral provided by a Lender that is a  Defaulting Lender, any interest accrued on such obligation) and other obligations for which the Cash  Collateral was so provided, prior to any other application of such property as may be provided for herein.    

 

    60      (d) Release.  Cash Collateral (or the appropriate portion thereof) provided to reduce  Fronting Exposure or to secure other obligations shall be released promptly following (i) the elimination  of the applicable Fronting Exposure or other obligations giving rise thereto (including by the termination  of Defaulting Lender status of the applicable Lender (or, as appropriate, its assignee following  compliance with Section 8.07(b)(vi))) or (ii) the determination by the Agent and the Issuing Bank that  there exists excess Cash Collateral; provided, however, (A) any such release shall be without prejudice to,  and any disbursement or other transfer of Cash Collateral shall be and remain subject to, any other Lien  conferred under the Loan Documents and the other applicable provisions of the Loan Documents, and  (B) the Person providing Cash Collateral and the Issuing Bank may agree that Cash Collateral shall not be  released but instead held to support future anticipated Fronting Exposure or other obligations.    ARTICLE IIIArticle III    CONDITIONS TO EFFECTIVENESS AND LENDING  ARTICLE IVSection 3.01 Conditions Precedent to Effectiveness.  This Agreement shall  become effective on and as of the first date (the “Effective Date”) on which the following conditions  precedent have been satisfied:  (a) (a) There shall have occurred no Material Adverse Change since May 31, 2016.  (b) (b) There shall exist no action, suit, investigation, litigation or proceeding affecting the  Holding Company or any of its Subsidiaries pending or threatened before any court, governmental agency  or arbitrator that (i) would be reasonably likely to have a Material Adverse Effect or (ii) purports to affect  the legality, validity or enforceability of this Agreement or any Note or the consummation of the  transactions contemplated hereby.  (c) (c) All governmental and third party consents and approvals necessary in connection with the  transactions contemplated hereby shall have been obtained (without the imposition of any conditions that  are not acceptable to the Lenders) and shall remain in effect, and no law or regulation shall be applicable  in the reasonable judgment of the Lenders that restrains, prevents or imposes materially adverse  conditions upon the transactions contemplated hereby.  (d) (d) The Borrowers shall have paid all accrued fees and expenses of the Agent and the  Lenders (including the accrued fees and expenses of counsel to the Agent).  (e) (e) On the Effective Date, the following statements shall be true and the Agent shall have  received for the account of each Lender a certificate signed by a duly authorized officer of the Holding  Company, dated the Effective Date, stating that:  (i) (i) The representations and warranties contained in Section 4.01 are correct on and as of the  Effective Date, and  (ii) (ii) No event has occurred and is continuing that constitutes a Default.  (f) (f) The Agent shall have received on or before the Effective Date the following, each dated  such day, in form and substance satisfactory to the Agent and (except for any Revolving Credit Notes) in  sufficient copies for each Lender:  (i) (i) (A) Counterparts of this Agreement, executed by a Responsible Officer of each Borrower  and a duly authorized officer of each Lender, (B) the Revolving Credit Notes executed by a Responsible  

 

    61      Officer of each Borrower to the order of any Lenders requesting the same, and (C) counterparts of any  other Loan Documents executed by a Responsible Officer of the applicable Borrower and a duly  authorized officer of each other Person party thereto.  (ii) (ii) Certified copies of the resolutions of the Board of Directors of each Borrower approving  this Agreement and any Notes, and of all documents evidencing other necessary corporate action and  governmental approvals, if any, with respect to this Agreement and any Notes.  (iii) (iii) A certificate of the Secretary or an Assistant Secretary of each Borrower certifying the  names and true signatures of the officers of such Borrower authorized to sign this Agreement, the Notes  and the other documents to be delivered hereunder.  (iv) (iv) A favorable opinion of Baker & McKenzie, LLP substantially in the form of Exhibit D  hereto and as to such other matters as the Agent may reasonably request.  (v) (v) Such documents and certificates as the Agent or its counsel may reasonably request  relating to the organization, existence and good standing of the Borrowers, and any other legal matters  relating to the Borrowers or the Loan Documents, all in form and substance satisfactory to the Agent and  its counsel and as further described in the list of closing documents attached as Exhibit F.  (g) (g) The Borrowers shall have terminated the commitments, and, prior to or simultaneously  with the initial Borrowing hereunder, paid in full all Debt, interest, fees and other amounts outstanding,  under the Existing Credit Agreement, and each of the Lenders that is a party to such credit facility hereby  waives, upon execution of this Agreement, the five Business Days’ notice required by Section 2.05 of  said Credit Agreement relating to the termination of commitments thereunder.  (h)Section 3.02 Conditions Precedent to each Borrowing, each Issuance and Renewal of Letters  of Credit and each Increase Date.  The obligation of each Lender to make an Advance (other than a Letter  of Credit Advance made by the Issuing Bank or a Lender pursuant to Section 2.16(d)) on the occasion of  each Borrowing (including the initial Borrowing), and the obligation of the Issuing Bank to issue Letters  of Credit (including the initial issuance) or renew a Letter of Credit from time to time, andshall, in each  Revolving Credit Commitment Increase shallcase, be subject to the conditions precedent that the  Effective Date shall have occurred and on the date of such Borrowing, issuance or renewal or the  applicable Increase Date the following statements shall be true (and each of the giving of the applicable  Notice of Revolving Credit Borrowing, or Notice of Issuance, or request for Revolving Credit  Commitment Increase and the acceptance by the Borrowers of the proceeds of such Borrowing or such  Letter of Credit issuance or the renewal of such Letter of Credit shall constitute a representation and  warranty by the Borrowers that on the date of such Borrowing, issuance, or renewal or Increase Date such  statements are true):  (i) (i) the representations and warranties contained in Section 4.01 (excluding the representation  and warranty contained in Section 4.01(f)(ii) are correct on and as of such date before and after giving  effect to such Borrowing, issuance or renewal or such Increase Date and to the application of the proceeds  therefrom, as though made on and as of such date; and  (ii) (ii) no event has occurred and is continuing, or would result from such Borrowing, issuance  or renewal or Increase Date or from the application of the proceeds therefrom, that constitutes a Default.  (iii)Section 3.03 Determinations Under Section 3.01.  Without limiting the generality of  the provisions of the last paragraph of Section 7.03, for purposes of determining compliance with the  conditions specified in this Section, each Lender that has signed this Agreement shall be deemed to have  

 

    62      consented to, approved or accepted or to be satisfied with, each document or other matter required  thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Agent  shall have received notice from such Lender prior to the proposed Effective Date specifying its objection  thereto.  The Agent shall promptly notify the Lenders of the occurrence of the Effective Date.  (iv)Article IV    REPRESENTATIONS AND WARRANTIES  (v)Section 4.01 Representations and Warranties of the Borrowers.  The Borrowers represent and  warrant as follows:  (i) (a) Each Borrower is a corporation duly organized, validly existing and in  good standing under the laws of the State of its incorporation.  (j) (b) The execution, delivery and performance by each Borrower of this  Agreement and the other Loan Documents to be delivered by it, and the consummation of the transactions  contemplated hereby, are within such Borrower’s corporate powers, have been duly authorized by all  necessary corporate action, and do not contravene (i) such Borrower’s charter or by-laws or (ii) law or  any contractual restriction binding on or affecting such Borrower.  (k) (c) This Agreement has been, and each of the other Loan Documents to be  delivered by it when delivered hereunder will have been, duly executed and delivered by each Borrower.   This Agreement is, and each of the other Loan Documents when delivered hereunder will be, the legal,  valid and binding obligation of each Borrower party thereto enforceable against such Borrower in  accordance with their respective terms.  (l) (d) No authorization or approval or other action by, and no notice to or filing  with, any governmental authority or regulatory body or any other third party is required for the due  execution, delivery and performance by any Borrower of this Agreement or the other Loan Documents to  be delivered by it.  (m) (e) There is no pending or threatened action, suit, investigation, litigation or  proceeding, including, without limitation, any Environmental Claim, affecting the Holding Company or  any of its Subsidiaries before any court, governmental agency or arbitrator that (i) would be reasonably  likely to have a Material Adverse Effect or (ii) purports to affect the legality, validity or enforceability of  this Agreement or any Note or the consummation of the transactions contemplated hereby.  (n) (f) (i) The Consolidated balance sheet of the Holding Company and its  Subsidiaries as at May 31, 2016, and the related Consolidated statements of income and cash flows of the  Holding Company and its Subsidiaries for the fiscal year then ended, accompanied by an opinion of Ernst  & Young LLP, independent public accountants, the consolidating balance sheet of the Holding Company  and its Subsidiaries as at May 31, 2016, and the related consolidating statements of income and cash  flows of the Holding Company and its Subsidiaries for the fiscal year then ended, duly certified by the  chief financial officer of the Holding Company, and the Consolidated and consolidating balance sheet of  the Holding Company and its Subsidiaries as at August 31, 2016, and the related Consolidated and  consolidating statements of income and cash flows of the Holding Company and its Subsidiaries for the  three months then ended, duly certified by the chief financial officer of the Holding Company, copies of  which have been furnished to each Lender, fairly present, subject, in the case of said balance sheet as at  August 31, 2016, and said statements of income and cash flows for the three months then ended, to year- end audit adjustments, the Consolidated financial condition of the Holding Company and its Subsidiaries  

 

    63      as at such dates and the Consolidated results of the operations of the Holding Company and its  Subsidiaries for the periods ended on such dates, all in accordance with generally accepted accounting  principles consistently applied.  (ii) (ii) Since May 31, 2016, there has been no Material Adverse Change.  (o) (g) Each of the Borrowers and their Subsidiaries has good, marketable fee or leasehold title  (as applicable) or ownership interest to all of the material assets and properties of the Borrowers and their  Subsidiaries, free and clear of all Liens, other than Liens permitted by the Loan Documents.  (p) (h) The operations and properties of each Borrower and each of its Subsidiaries comply in all  material respects with all applicable Environmental Laws, all past non-compliance with such  Environmental Laws has been resolved without material ongoing obligations or costs, and no  circumstances exist that could reasonably be likely to (i) form the basis of an Environmental Claim  against either Borrower or any of its Subsidiaries or any of their properties that could have a Material  Adverse Effect or (ii) cause any such property to be subject to any restrictions on ownership, occupancy,  use or transferability under any Environmental Law that could have a Material Adverse Effect.  (q) (i) Set forth on Schedule 4.01(i) hereto is a complete and accurate list of all Subsidiaries of  each of the Borrowers as of the date hereof, showing (as to each such Subsidiary) the jurisdiction of its  incorporation.  All of the outstanding capital stock and other ownership interests (other than directors  qualifying shares) in each of the Borrower’s Subsidiaries has been validly issued, are fully paid and non- assessable and are owned by such Borrower or one or more of its Subsidiaries free and clear of all Liens  and, as of the date hereof, free of any outstanding options, warrants, rights of conversion or purchase or  similar rights.  (r) (j) Each of the outstanding securities issued by the Holding Company was duly authorized  and validly issued, is fully paid and non-assessable, and is not and will not be subject to any preemptive  or similar right or restriction.  Each of those outstanding securities was acquired from the issuer in a  transaction in compliance with the Securities Act of 1933, as amended, and other applicable laws.  (s) (k) No Borrower is engaged in the business of extending credit for the purpose of purchasing  or carrying margin stock (within the meaning of Regulation U issued by the Board of Governors of the  Federal Reserve System), and no proceeds of any Advance will be used to purchase or carry any margin  stock in violation of Regulation U issued by the Board of Governors of the Federal Reserve System or to  extend credit to others for the purpose of purchasing or carrying any margin stock.  (t) (l) No Borrower is an “investment company”, or a company “controlled” by an “investment  company”, within the meaning of the Investment Company Act of 1940, as amended.  (u) (m) No Borrower, nor any Subsidiary of any Borrower, nor, to the knowledge of the  Borrowers and their Subsidiaries, any director, officer, employee, agent, affiliate or representative thereof,  is an individual or entity  that is, or is owned or controlled by any individualone or entitymore  individuals or entities that isare (i) currently the subject or target of any Sanctions, (ii) included on  OFAC’s List of Specially Designated Nationals, or HMT’s Consolidated List of Financial Sanctions  Targets and the Investment Ban List, or any similar list enforced by any other relevant sanctions authority  or (iii) located, organized or resident in a Designated Jurisdiction. The Borrowers and their  Subsidiaries have conducted their businesses in compliance with all applicable Sanctions and  have instituted and maintained policies and procedures designed to promote and achieve  compliance with such Sanctions.  

 

    64       (n) The Borrowers and their Subsidiaries have conducted their business in compliance with  the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 and other similar anti- corruption legislation in other jurisdictions, and have instituted and maintained policies and procedures  designed to promote and achieve compliance with such laws.  (o) (i) Each Plan is in compliance in all material respects with the applicable  provisions of ERISA, the Code and other federal or state laws. Each Pension Plan that is  intended to be a qualified plan under Section 401(a) of the Code has received a favorable  determination letter or is subject to a favorable opinion letter from the IRS to the effect that the  form of such Plan is qualified under Section 401(a) of the Code and the trust related thereto has  been determined by the IRS to be exempt from federal income tax under Section 501(a) of the  Code, or an application for such a letter is currently being processed by the IRS. To the best  knowledge of the Borrowers, nothing has occurred that would prevent or cause the loss of such  tax-qualified status; (ii) There are no pending or, to the best knowledge of the Borrowers,  threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to  any Plan that could reasonably be expected to have a Material Adverse Effect. There has been no  prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan  that has resulted or could reasonably be expected to result in a Material Adverse Effect; (iii)  (1) No ERISA Event has occurred, and no Borrower nor any ERISA Affiliate is aware of any  fact, event or circumstance that could reasonably be expected to constitute or result in an ERISA  Event with respect to any Pension Plan or Multiemployer Plan; (2) as of the most recent  valuation date for any Pension Plan, the funding target attainment percentage (as defined in  Section 430(d)(2) of the Code) is 60% or higher and no Borrower nor any ERISA Affiliate  knows of any facts or circumstances that could reasonably be expected to cause the funding  target attainment percentage for any such plan to drop below 60% as of the most recent valuation  date; (3) no Borrower nor any ERISA Affiliate has incurred any liability to the PBGC other than  for the payment of premiums, and there are no premium payments which have become due that  are unpaid; (4) neither the Borrower nor any ERISA Affiliate has engaged in a transaction that  could be subject to Section 4069 or Section 4212(c) of ERISA; and (5) no Pension Plan has been  terminated by the plan administrator thereof nor by the PBGC, and no event or circumstance has  occurred or exists that could reasonably be expected to cause the PBGC to institute proceedings  under Title IV of ERISA to terminate any Pension Plan; (iv) Neither the Borrowers nor any  ERISA Affiliate maintains or contributes to, or has any unsatisfied obligation to contribute to, or  liability under, any active or terminated Pension Plan other than (1) on the date of this  Agreement, those listed on Schedule 4.01 hereto and (2) thereafter, Pension Plans not otherwise  prohibited by this Agreement; and (v) the Borrowers represent and warrant as of the date of this  Agreement that the Borrowers are not and will not be using “plan assets” (within the meaning of  Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to the each  Borrower’s entrance into, participation in, administration of and performance of the Advances,  the Letters of Credit, the Commitments or this Agreement.   (p) No Borrower is an EEA Financial Institution.  (q) The Borrowers are, individually and together with their Subsidiaries on a  Consolidated basis, Solvent.  (r) The provisions of the Collateral Documents are effective to create in favor  of the Agent for the benefit of the Secured Parties a legal, valid and enforceable first priority  

 

    65      Lien (subject to Permitted Liens) on all right, title and interest of the respective Borrower in the  Collateral described therein. Except for filings completed prior to the First Amendment Effective  Date and as contemplated hereby and by the Collateral Documents, no filing or other action will  be necessary to perfect or protect such Liens.    ARTICLE VArticle V    COVENANTS OF THE BORROWERS  ARTICLE VISection 5.01 Affirmative Covenants.  So long as any Advance shall remain  unpaid or any Lender shall have any Commitment hereunder, each of the Borrowers will:  (a) (a) Reporting Requirements.  Provide to the Lenders the following:  (i) (i) promptly after the commencement thereof, notice of all actions and proceedings before  any court, governmental agency or arbitrator affecting either Borrower or any of its Subsidiaries of the  type described in Section 4.01(e);  (ii) (ii) as soon as possible and in any event within five days after the occurrence of each Default  continuing on the date of such statement, a statement of the chief financial officer of the Holding  Company setting forth details of such Default and the action that the Borrowers have taken and proposes  to take with respect thereto and any other event that would be reasonably likely to have or has had a  Material Adverse Effect.  (iii) (iii) as soon as available and in any event within 60 days after the end of each of the first three  quarters of each fiscal year of the Holding Company, the Consolidated balance sheet of the Holding  Company and its Subsidiaries as of the end of such quarter and Consolidated statements of income and  cash flows of the Holding Company and its Subsidiaries for the period commencing at the end of the  previous fiscal year and ending with the end of such quarter, duly certified (subject to year-end audit  adjustments) by the chief executive officer, the chief financial officer, the chief accounting officer, the  vice-president and treasurer or the vice-president and controller of the Holding Company as having been  prepared in accordance with generally accepted accounting principles and certificates of the chief  executive officer, the chief financial officer, the chief accounting officer, the vice-president and treasurer  or the vice-president and controller of the Holding Company in substantially the form of Exhibit E as to  compliance with the terms of this Agreement and setting forth in reasonable detail the calculations  necessary to demonstrate compliance with Section 5.03;  (iv) (iv) as soon as available and in any event within 90 days after the end of each fiscal year of  the Holding Company, (A) a copy of the annual audit report for such year for the Holding Company and  its Subsidiaries, containing the Consolidated balance sheet of the Holding Company and its Subsidiaries  as of the end of such fiscal year and Consolidated statements of income and cash flows of the Holding  Company and its Subsidiaries for such fiscal year, in each case accompanied by an opinion by Ernst &  Young LLP or other independent public accountants of recognized standing regularly retained by the  Borrowers to audit their books and reasonably acceptable to the Required Lenders, which opinion shall be  prepared in accordance with generally accepted auditing standards and shall not be subject to any “going  concern” or like qualification or exception or any qualification or exception as to the scope of such audit,  (B) the consolidating balance sheet of the Holding Company and its Subsidiaries as of the end of such  fiscal year and consolidating statements of income and cash flows of the Holding Company and its  Subsidiaries for such fiscal year and (C) certificates of the chief executive officer, the chief financial  

 

    66      officer, the chief accounting officer, the vice-president and treasurer or the vice-president and controller  of the Holding Company in substantially the form of Exhibit E as to compliance with the terms of this  Agreement and setting forth in reasonable detail the calculations necessary to demonstrate compliance  with Section 5.03;  (v) (v) promptly after the sending or filing thereof, copies of all quarterly and annual reports and  proxy solicitations that the Holding Company sends to its public securityholders generally, and copies of  all reports on Form 8-K and registration statements for the public offering of securities that the Holding  Company or any Subsidiary files with the Securities and Exchange Commission or any national securities  exchange; and  (vi) (vi) such other information respecting the Borrowers or any of their Subsidiaries as any  Lender through the Agent may from time to time reasonably request.   Documents required to be delivered pursuant to clauses (iii), (iv), (v) or (vi) of this Section  5.01(a) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the  date (i) on which the Holding Company posts such documents, or provides a link thereto on the Holding  Company’s website on the Internet at the website address <www.scholastic.com>; (ii) on which such  documents are posted on the Holding Company’s behalf on an Internet or intranet website, if any, to  which each Lender and the Agent have access (whether a commercial, third-party website or whether  sponsored by the Agent); or (iii) on which such documents are filed for public availability on the U.S.  Securities and Exchange Commission’s Electronic Data Gathering and Retrieval System;  provided that:   (A) the Borrowers shall deliver paper copies of such documents to the Agent or any Lender upon its  request to the Borrowers to deliver such paper copies until a written request to cease delivering paper  copies is given by the Agent or such Lender and (B) the Holding Company shall notify the Agent and  each Lender (by fax transmission or e-mail transmission) of the posting of any such documents and  provide to the Agent by e-mail electronic versions (i.e., soft copies) of such documents.  The Agent shall  have no obligation to request the delivery of or to maintain paper copies of the documents referred to  above, and in any event shall have no responsibility to monitor compliance by the Borrowers with any  such request by a Lender for delivery, and each Lender shall be solely responsible for requesting delivery  to it or maintaining its copies of such documents.   Each Borrower hereby acknowledges that (A) the Agent and/or an Affiliate thereof may, but shall  not be obligated to, make available to the Lenders and the Issuing Bank materials and/or information  provided by or on behalf of the Borrowers hereunder (collectively, “Borrower Materials”) by posting the  Borrower Materials on IntraLinks, Syndtrak, ClearPar or a substantially similar electronic transmission  system (the “Platform”) and (B) certain of the Lenders (each, a “Public Lender”) may have personnel who  do not wish to receive material non-public information with respect to any Borrower or its Affiliates, or  the respective securities of any of the foregoing, and who may be engaged in investment and other  market-related activities with respect to such Persons’ securities.  Each Borrower hereby agrees that it  will use commercially reasonable efforts to identify that portion of the Borrower Materials that may be  distributed to the Public Lenders and that (1) all such Borrower Materials (other than copies of any duly- filed Form 10-K, 10-Q or 8-K or other filing with the Securities and Exchange Commission after they  become publically available (the “Deemed Public Materials”)) shall be clearly and conspicuously marked  “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the  first page thereof; (2) by marking Borrower Materials “PUBLIC,” the Borrowers shall be deemed to have  authorized the Agent, any Affiliate thereof, the ArrangerArrangers, the Issuing Bank and the Lenders to  treat such Borrower Materials as not containing any material non-public information (although it may be  sensitive and proprietary) with respect to any Borrower or its securities for purposes of United States  federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute  Information, they shall be treated as set forth in Section 8.08); (3) all Borrower Materials marked  

 

    67      “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Side  Information;” and (4) the Agent and any Affiliate thereof and the ArrangerArrangers shall be entitled to  treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a  portion of the Platform not designated “Public Side Information.”  With respect to Deemed Public  Materials, the Agent, the Arrangers, and the Lenders shall have the rights (and the Borrowers shall have  authorized treatment of such materials) in the manner contemplated for information marked “PUBLIC”  pursuant to clauses (2) and (3) of the immediately preceding sentence.    (b) (b) Visitation Rights.  At any reasonable time and from time to time, permit the Agent or any  of the Lenders or any agents or representatives thereof, to examine and make copies of and abstracts from  the records and books of account of, and visit the properties of, such Borrower and any of its Subsidiaries,  and to discuss the affairs, finances and accounts of such Borrower and any of its Subsidiaries with any of  their officers or directors and with their independent certified public accountants.  (c) (c) Preservation of Corporate Existence, Etc.  Preserve and maintain, and cause each of its  Significant Subsidiaries to preserve and maintain, its corporate existence, rights (charter and statutory)  and franchises; provided, however, that such Borrower and its Subsidiaries may consummate any merger  or consolidation permitted under Section 5.02(cd) and provided further that neither such Borrower nor  any of its Significant Subsidiaries shall be required to preserve any right or franchise (x) if the Board of  Directors of such Borrower or such Significant Subsidiary shall determine that the preservation thereof is  no longer desirable in the conduct of the business of such Borrower or such Significant Subsidiary, as the  case may be, and that the loss thereof is not disadvantageous in any material respect to such Borrower or  the Lenders or (y) in any jurisdiction where the failure to do so would not be reasonably likely to have a  Material Adverse Effect.  (d) (d) Compliance with Laws, Etc.  Comply, and cause each of its Subsidiaries to comply, in all  material respects, with all applicable laws, rules, regulations and orders, such compliance to include,  without limitation, compliance with ERISA and Environmental Laws other than to the extent the  noncompliance therewith or violation thereof would not be reasonably likely to have a Material Adverse  Effect.  (e) (e) Payment of Taxes, Etc.  Pay and discharge, and cause each of its Subsidiaries to pay and  discharge, before the same shall become delinquent, (i) all taxes, assessments and governmental charges  or levies imposed upon it or upon its property unless such failure to pay or discharge would not be  reasonably likely to have a significant adverse effect on the business of the Borrowers and the  Subsidiaries taken as a whole and (ii) all lawful claims that, if unpaid, might by law become a Lien upon  its property unless such failure to pay or discharge would not be reasonably likely to have a Material  Adverse Effect; provided, however, that neither such Borrowers nor any of its Subsidiaries shall be  required to pay or discharge any such tax, assessment, charge or claim that is being contested in good  faith and by proper proceedings and as to which appropriate reserves are being maintained, unless and  until any Lien resulting therefrom attaches to its property and becomes enforceable against its other  creditors.  (f) (f) Maintenance of Insurance.  Maintain, and cause each of its Subsidiaries to maintain,  insurance with responsible and reputable insurance companies or associations in such amounts and  covering such risks (excluding publisher’s liability insurance) as is usually carried by companies engaged  in similar businesses and owning similar properties in the same general areas in which such Borrower or  such Subsidiary operates; provided, however, that each Borrower and its Subsidiaries may self-insure to  the same extent as other companies engaged in similar businesses and owning similar properties in the  same general areas in which such Borrower or such Subsidiary operates and to the extent consistent with  prudent business practice; provided, further, that all such insurance maintained in accordance with  

 

    68      this Section 5.01(f) shall in any event (i) provide for not less than thirty (30) days’ prior notice to  the Agent of termination, lapse or cancellation of such insurance, (ii) name the Agent as  mortgagee (in the case of property insurance) or additional insured on behalf of the Secured  Parties (in the case of liability insurance) or loss payee (in the case of property insurance), as  applicable, (iii) if reasonably requested by the Agent, include a breach of warranty clause and  (iv) be reasonably satisfactory in all other respects to the Agent.  (g) (g) Keeping of Books.  Maintain, and cause each of its Subsidiaries to maintain, a standard  system of accounting in accordance with generally accepted accounting principles consistently applied.  (h) (h) Maintenance of Properties, Etc.  Maintain and preserve, and cause each of its Subsidiaries  to maintain and preserve, all of its properties that are used or useful in the conduct of its business in good  working order and condition, ordinary wear and tear excepted, other than to the extent any such failure to  maintain and preserve would not be reasonably likely to have a Material Adverse Effect.   (i) Anti-Corruption Laws; Sanctions.  Conduct its business in compliance in all material  respects with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 and  other similarapplicable anti-corruption legislation in other jurisdictions and with all applicable  Sanctions, and maintain policies and procedures designed to promote and achieve compliance with such  laws and Sanctions.  (j) Omitted.  (k) Security Covenants.  (i) Landlord Waivers. Subject to the time period set forth in Section  5.01(1), in the case of (A) each headquarter location of the Borrowers, each other  location where any significant administrative or governmental functions are performed  and each other location where the Borrowers maintain any books or records (electronic or  otherwise) and (B) any personal property Collateral located at any other premises leased  by a Borrower containing personal property Collateral with a value in excess at any time  of $10,000,000, the Borrowers will provide the Agent with such estoppel letters, consents  and waivers from the landlords on such real property to the extent (x) requested by the  Agent and (y) the Borrowers are able to secure such letters, consents and waivers after  using commercially reasonable efforts (such letters, consents and waivers shall be in form  and substance satisfactory to the Agent).  (ii) Further Assurances. At any time upon request of the Agent,  promptly execute and deliver any and all further instruments and documents and take all  such other action as the Agent may deem necessary or desirable to maintain in favor of  the Agent, for the benefit of the Secured Parties, Liens and insurance rights on the  Collateral that are duly perfected in accordance with the requirements of, or the  obligations of the Borrower under, the Loan Documents and all applicable laws.  (l) Post-First Amendment Effective Date Obligations.  (i) Use commercially reasonable efforts to deliver, not later than sixty (60) days after the  First Amendment Effective Date (or such later date as the Agent shall agree in its sole  

 

    69      discretion), estoppel letters, consents and/or waivers, in form and substance reasonably  satisfactory to the Agent, duly executed by each of the Borrower’s landlords with respect to any  leased real property of the types described in clauses (A) and (B) of Section 5.01(k)(i).  SECTION 6.02Section 5.02 Negative Covenants.  So long as any Advance shall remain  unpaid or any Lender shall have any Commitment hereunder, neither Borrower will:   (a) Liens, Etc.  Create or suffer to exist, or permit any of its Subsidiaries to create or suffer to  exist, any Lien on or with respect to any of its properties of the Borrowers or any Subsidiaries,  whether now owned or hereafter acquired, or assign, or permit any of its Subsidiaries to assign, any right  to receive income, other than:  (i) Liens pursuant to any Loan Document or otherwise securing any  Obligation,  (i) (ii) Permitted Liens,  (ii) (iii) purchase money Liens (including leases treated as security interests) upon or in any real  property or equipment acquired or held by any Borrower or any Subsidiary in the ordinary course of  business to secure the purchase price of such property or equipment or to secure Debt incurred solely for  the purpose of financing the acquisition of such property or equipment, or Liens existing on such property  or equipment at the time of its acquisition (other than any such Liens created in contemplation of such  acquisition that were not incurred to finance the acquisition of such property) or extensions, renewals or  replacements of any of the foregoing for the same or a lesser amount, provided, however, that no such  Lien shall extend to or cover any properties of any character other than the real property or equipment  being acquired, and no such extension, renewal or replacement shall extend to or cover any properties not  theretofore subject to the Lien being extended, renewed or replaced,  (iii) (iv) the Liens existing on the Effective Date and described on Schedule 5.02(a) hereto,  (iv) (v) Liens on property of a Person existing at the time such Person is merged into or  consolidated with any Borrower or any Subsidiary of such Borrower or becomes a Subsidiary of such  Borrower; provided that such Liens were not created in contemplation of such merger, consolidation or  acquisition and do not extend to any assets other than those of the Person so merged into or consolidated  with such Borrower or such Subsidiary or acquired by such Borrower or such Subsidiary,  (v) other (vi) Liens securing Debt in an aggregate principal amount not to exceed $50,000,000  at any time outstandingof the type permitted under Section 5.02(b)(vii);  (vi) (vii) Liens incurred in respect of judgments and awards discharged within 30 days from the  making thereof or under review in an appropriate forum so long as enforcement thereof is effectively  stayed;,  (vii) (viii) Liens incurred in respect of rental or security deposits; and,   (ix) the replacement, extension or renewal of any Lien permitted by clause (iii) or (iv) above  upon or in the same property theretofore subject thereto or the replacement, extension or renewal (without  increase in the amount or change in any direct or contingent obligor) of the Debt secured thereby., and  

 

    70      (x) Liens not contemplated by the above provisions securing Debt in  an aggregate principal amount not to exceed $25,000,000 at any time outstanding.  (b) Debt.  Create, incur, assume or suffer to exist (or permit any Subsidiary to  create, incur, assume or suffer to exist) any Debt, except:  (i) Debt under the Loan Documents,  (ii) Debt outstanding on the First Amendment Effective Date and  listed on Schedule 5.02(b) as of such date and any refinancings, refundings, renewals or  extensions thereof; provided that the amount of such Debt is not increased at the time of  such refinancing, refunding, renewal or extension except by an amount equal to a  reasonable premium or other reasonable amount paid, and fees and expenses reasonably  incurred, in connection with such refinancing and by an amount equal to any existing  commitments unutilized thereunder and the direct or any contingent obligor with respect  thereto is not changed, as a result of or in connection with such refinancing, refunding,  renewal or extension,  (iii) Debt in respect of capital leases, synthetic debt obligations, and  purchase money obligations for real property or equipment within the limitations set forth  in Section 5.02(a)(iii),  (iv) Unsecured Debt of a Subsidiary of a Borrower owed to such  Borrower or of one Borrower owed to the other Borrower, which Debt shall (i) to the  extent required by the Agent, be evidenced by promissory notes and (ii) be on terms  (including subordination terms) acceptable to the Agent,  (v) Guarantees of any Borrower in respect of Debt otherwise permitted  hereunder (other than clause (vii) of this Section 5.02(b)) of any other Borrower,  (vi) obligations (contingent or otherwise) existing or arising under any  Swap Contract, provided that (i) such obligations are (or were) entered into by such  Person in the ordinary course of business for the purpose of directly mitigating risks  associated with fluctuations in interest rates or foreign exchange rates and (ii) such Swap  Contract does not contain any provision exonerating the non-defaulting party from its  obligation to make payments on outstanding transactions to the defaulting party,  (vii) Debt secured by one or more Liens on any real property of any  Borrower; provided that (i) such Debt is not guaranteed by, or otherwise recourse to, the  Borrowers and (ii) the Liens securing such Debt shall attach to no property other than  such real property; and  (viii) Debt not contemplated by the above provisions in an aggregate  principal amount not to exceed $50,000,000 at any time outstanding; provided that  immediately before and after giving effect to the incurrence of such Debt, the Borrowers  are in pro forma compliance with each of the financial covenants set forth in Section  5.03.  

 

    71      (b) (c) Sales, Etc. of Assets.  Sell, lease, transfer or otherwise dispose of, or permit any of its  Subsidiaries to sell, lease, transfer or otherwise dispose of, any assets, or grant any option or other right to  purchase, lease or otherwise acquire any assets, except (i) (A) sales of inventory and equipment in the  ordinary course of its business and (B) sales, transfers and dispositions of assets by either Borrower or  any Subsidiary to any other Borrower or Subsidiary, (ii) in a transaction authorized by subsection (c) of  this Section, (iii) sales of assets for fair value in an aggregate amount not to exceed 1510% of  Consolidated Total Assets as of the last day of the most recently ended fiscal quarter preceding the date of  any such sale of assets and (iv) the sale of either (x) the real property located at 557 Broadway, New  York, New York, 550 Broadway, New York, New York, or Maumelle, Arkansas and Danbury,  Connecticut or (y) the real property comprising the distribution center located in Jefferson City, Missouri,  in eachthe case of any of the real property described in the foregoing clauses (x) and (y), for fair  value in connection with any sale-leaseback transaction.  Notwithstanding anything herein to the  contrary, in no event shall any Borrower sell, lease, transfer or otherwise dispose of any assets  that are or purport to be Collateral to any Subsidiary.  (c) (d) Mergers, Acquisitions, Etc.  Merge or consolidate with or into any Person, or  otherwise consummate an Acquisition of any Person or permit any of its Subsidiaries to do soeither  of the foregoing, except that (i) any Subsidiary of either Borrower may merge or consolidate with or into  any other Subsidiary of such Borrower, (ii) any Subsidiary of either Borrower may merge into such  Borrower and, (iii) either Borrower may merge with any other Person so long as such Borrower is the  surviving corporation and (iv) either Borrower or any wholly-owned Subsidiary thereof may  consummate a Permitted Acquisition, provided, in each case, that (x) no Default shall have occurred  and be continuing at the time of such proposed transaction or would result therefrom, (y) the aggregate  consideration paid by all Borrowers and their Subsidiaries in connection with all Acquisitions in  any fiscal year shall not exceed $25,000,000 and (z) for the avoidance of doubt, the Borrower  shall cause any assets acquired as part of or pursuant to a Permitted Acquisition and constituting  Collateral to be subject to the Lien created by the Security Agreement.  (d) (e) Change in Nature of Business.  Make, or permit any of its Subsidiaries to  make, any material change in the nature of the business of the Borrowers and their Subsidiaries, taken as a  whole, as carried on at the date hereof.  (e) (f) Dividends, Etc.  Declare or make any dividend payment or other  distribution of assets, properties, cash, rights, obligations or securities on account of any shares of any  class of capital stock of the Holding Company, or purchase, redeem or otherwise acquire for value (other  than any redemption or repurchase pursuant to the application of any change of control provision  contained in any issuance of convertible Debt) (or permit any of its Subsidiaries to do so) any shares of  any class of capital stock of the Holding Company or any warrants, rights or options to acquire any such  shares, now or hereafter outstanding, or enter into any transaction that has a substantially similar effect as  the previously described transactions, except that, so long as no Default shall have occurred and be  continuing at the time of any action described below or would result therefrom, the Holding Company  may (i) declare and make any dividend payment or other distribution payable in common stock of the  Holding Company, (ii) [intentionally omitted], (iii) from and after the First Amendment Effective  Date, declare or pay cash dividends to its stockholders andin an aggregate amount not to exceed, in  any fiscal quarter of the Borrowers, the sum of (x) $5,200,000 plus (y) the dollar amount of all  cash dividends payable (at the rate applicable as of the First Amendment Effective Date) in such  fiscal quarter in respect of capital stock of the Holding Company issued after the First  Amendment Effective Date as a result of the regular vesting or exercise of issued and  outstanding stock awards in the normal course of business, (iv) from the First Amendment  

 

    72      Effective Date through but excluding the date on which the Agent shall have received the  financial statements and related certificates required to be delivered pursuant to Section 5.01(a)  for the fiscal year of the Borrowers ending May 31, 2021, purchase, redeem or otherwise acquire  shares of its common stock or warrants, rights or options to acquire any such shares in an aggregate  amount equalnot to exceed $30,000,000 during such period, and (v) from and after the date on  which the Agent shall have received the financial statements and related certificates required to  be delivered pursuant to Section 5.01(a) for the fiscal year of the Borrowers ending May 31,  2021, declare or pay cash dividends to its stockholders and purchase, redeem or otherwise  acquire shares of its common stock or warrants, rights or options to acquire any such shares (any,  or any combination of the foregoing, a “Restricted Payment”) in an amount not to exceed the sum  of (Ax) the cash proceeds received after May 31, 2021 from the substantially concurrent issue of new  shares of its common stock, (By) the aggregate amount of cash received and net tax benefit received from  the exercise by employees of the Borrowers and their Subsidiaries of stock options or the purchase of  shares of stock under the employee stock purchase plan after May 31, 20062021 and (Cz) the sum of (xI)  $275,000,000 and (yII) 50% of net income of the Holding Company and its Subsidiaries arising after  May 31, 2006 and computed on a cumulative Consolidated basis and (iv) in addition to, so long as, in  the case of each of the foregoing, declare or pay cash dividends to its stockholders and purchase, redeem  or otherwise acquire shares of its common stock or warrants, rights or options to acquire any such shares  (any, or any combination of the foregoing, solely for purposes of this subclause (iv), a “Restricted  Payment”), so long as clauses (iii), (iv) and (v), immediately after giving effect to such Restricted  Payment the aggregate amount of all Restricted Payments made pursuant to this clause (iv) at such time  will not exceed (x) $200,000,000 if the Consolidated Leverage Ratio after giving effect (including pro  forma effect) to such Restricted Payment is less than 2.00 to 1.00, (y) $125,000,000 if the Consolidated  Leverage Ratio after giving effect (including pro forma effect) to such Restricted Payment is greater than  or equal to 2.00 to 1.00 butaction, Consolidated Liquidity shall be not less than or equal to 2.50 to  1.00 or (z) $0 if the Consolidated Leverage Ratio after giving effect (including pro forma effect) to such  Restricted Payment is greater than 2.50 to 1.00$300,000,000.  (f) (g) Transactions with Affiliates.  Conduct, and cause each of its Subsidiaries  to conduct, any transactions otherwise permitted under this Agreement with any of their unconsolidated  Affiliates other than (i) on terms that are fair and reasonable and no less favorable to such Borrower or  such Subsidiary than it would obtain in a comparable arm’s-length transaction with a Person not an  Affiliate and (ii) transactions between or among the Borrowers and their wholly-owned Subsidiaries not  involving any other Affiliate.  (g) (h) Accounting Changes.  Make or permit, or permit any of its Subsidiaries  to make or permit, any change in accounting policies or reporting practices, except as required or  permitted by generally accepted accounting principles.  (h) (i) Use of Proceeds.  Use the proceeds of any Advance, whether directly or  indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within  the meaning of Regulation U of the Board of Governors of the Federal Reserve System) or to extend  credit to others for the purpose of purchasing or carrying margin stock or to refund indebtedness  originally incurred for such purpose  (i) (j) Sanctions.  Directly or indirectly, use any Advance or the proceeds of  any Advance, or lend, contribute or otherwise make available such Advance or the proceeds of any  Advance to any Person, to fund any activities of or business with any Person, or in any Designated  Jurisdiction, that, at the time of such funding, is the subject of Sanctions, or in any other manner that will  

 

    73      result in a violation by any Person (including any Person participating in the transaction, whether as  Lender, Arranger, Agent, Issuing Bank, Swingline Lender, or otherwise) of Sanctions.   (k) Anti-Corruption Laws.  Directly or indirectly, use any Advance or the  proceeds of any Advance for any purpose which would breach the United States Foreign Corrupt  Practices Act of 1977, the UK Bribery Act 2010 and other similar anti-corruption legislation in other  jurisdictions.  (l) Collateral; Perfection.  During the Secured Obligations Period, effect any  change (i) in any Borrower’s legal name, (ii) in the location of any Borrower’s chief executive  office, (iii) in any Borrower’s identity or organizational structure, (iv) in any Borrower’s Federal  Taxpayer Identification Number or organizational identification number, if any, or (v) in any  Borrower’s jurisdiction of organization (in each case, including by merging with or into any  other entity, reorganizing, dissolving, liquidating, reorganizing or organizing in any other  jurisdiction), until (A) it shall have given the Agent not less than 10 days’ prior written notice (in  the form of certificate signed by a Responsible Officer), or such lesser notice period agreed to by  the Agent, of its intention so to do, clearly describing such change and providing such other  information in connection therewith as the Agent may reasonably request and (B) it shall have  taken all action reasonably satisfactory to the Agent to maintain the perfection and priority of the  security interest of the Agent for the benefit of the Secured Parties in the Collateral, if applicable.  Each Borrower agrees to promptly provide the Agent with certified organization documents  (including, without limitation, certificates of incorporation) reflecting any of the changes  described in the preceding sentence.  (m) Passive Holding Company. In the case of the Holding Company,  conduct, transact or otherwise engage in any business or operations other than the following: (i)  its ownership of the capital stock of the Operating Company, (ii) the maintenance of its legal  existence (including the ability to incur fees, costs and expenses relating to such maintenance),  (iii) the performance of its obligations and payments with respect to the Loan Documents, (iv)  any public offering of its common stock or any other issuance of its capital stock, including  pursuant to private offerings of securities, (v) making payments or Restricted Payments to the  extent otherwise permitted under this Section 5.02(f), (vi) making contributions to the capital of  its Subsidiaries, (vii) guaranteeing the obligations of the Operating Company and its Subsidiaries  in each case solely to the extent such obligations of the Operating Company and its Subsidiaries  are not prohibited hereunder, (viii) participating in tax, accounting and other administrative  matters as a member of the consolidated group of the Holding Company and its Consolidated  Subsidiaries, (ix) holding any cash or property received in connection with Restricted Payments  made by the Operating Company in accordance with Section 5.02(f), (x) providing  indemnification to officers and directors and (xi) activities incidental to the businesses or  activities described in clauses (i) to (x) of this Section 5.02(m).  SECTION 6.03Section 5.03 Financial Covenants.  So long as any Advance shall remain  unpaid or any Lender shall have any Commitment hereunder, the Borrowers will:  (a) (a) Consolidated Debt Ratio.  Maintain at all times a Consolidated Debt Ratio of not more  than 0.60:1.  

 

    74       (b) Consolidated Interest Coverage Ratio.  Maintain as at the last day of each of their fiscal  quarters, beginning with the fiscal quarter ending May 31, 2021, a Consolidated Interest Coverage  Ratio of not less than 3.50:1.  (c) Consolidated Funded Debt Ratio.  Maintain at all times after the Collateral  Release Date, a Consolidated Funded Debt Ratio of not more than 2.50 to 1.  (d) Consolidated Liquidity.  Maintain at all times after the First Amendment Effective Date,  Consolidated Liquidity of at least $200,000,000.  ARTICLE VIIArticle VI    EVENTS OF DEFAULT  ARTICLE VIIISection 6.01 Events of Default.  If any of the following events (“Events of  Default”) shall occur and be continuing:  (a) (a) any representation or warranty made in this Agreement or any other Loan Document  shall prove to have been false or misleading in any material respect when made (or deemed made); or  (b) (b) any report, statement, certificate, schedule or other document or information furnished  (whether prior to, on or after the Effective Date) in connection with this Agreement or any of the other  Loan Documents shall prove to have been false or misleading in any material respect when furnished (or  deemed furnished); or  (c) (c) any default, whether in whole or in part, shall occur in the payment of the principal of  any Advance, or shall occur and continue for more than three Business Days in the payment of any  interest on or any other amount respecting the Advances or any of the other obligations of the Borrowers  under the Loan Documents; or  (d) (d) any default, whether in whole or in part, shall occur in the due observance or  performance of any covenant, term or provision to be performed (i) under Sections 5.01(a)(ii), 5.02(e),  5.02(if), 5.02(j), 5.02(k) or 5.03 of this Agreement or (ii) under Sections 5.01(b) or 5.02 of this  Agreement (other than under Section 5.02(ef), 5.02(ij) or 5.02(jk) hereof) and such default described in  this clause (ii) shall continue for a period of five Business Days after the earlier of notice thereof to or  knowledge thereof by either Borrower; or  (e) (e) any default, whether in whole or in part, shall occur in the due observance or  performance of any other covenant, term or provision to be performed under this Agreement and the other  Loan Documents by either Borrower or any other party thereto (other than any Lender), which default is  not described in any other subsection of this Section, and such default shall continue for a period of ten  days after the earlier of notice thereof to or knowledge thereof by either Borrower; provided, however,  that if such default is capable of being cured and if the Borrowers shall have commenced to cure such  default within such period and shall proceed continuously in good faith and with due diligence to cure  such default, then such period instead shall be thirty days; or  (f) (f) (i) any payment default of $10,000,000 or more shall occur under any instrument or  agreement (other than a Loan Document) respecting any Debt of either Borrower or any of their  Subsidiaries, unless payment shall be made or action shall be taken within three Business Days after such  default in an amount or manner sufficient to cure it, provided that such payment or action will not result  

 

    75      in a breach of any term or provision of this Agreement and the other Loan Documents, with the various  financial measurements and covenants set forth in Section 5.03 of this Agreement being recalculated on a  pro forma basis (from the then most recent quarterly or subsequent pro forma calculations) to include the  effect of any such payment or (ii) any Debt of either Borrower or of any of their Subsidiaries of  $15,000,000 or more in principal or notional amount shall be accelerated or otherwise become due or be  required to be prepaid, repurchased or redeemed (other than pursuant to a regularly scheduled mandatory  prepayment, repurchase or redemption or the application of the change of control provision contained in  any Debt instrument, as in effect on the date hereof, or any substantially identical provision contained in  any subsequent issuance of debt) prior to its scheduled maturity; or  (g) (g) either Borrower or any of their Significant Subsidiaries shall (i) fail or be unable to pay  its debts generally as they become due, (ii) make a general assignment for the benefit of its creditors, (iii)  apply for or consent to the appointment of a receiver, trustee, assignee, custodian, sequestrator, liquidator  or similar official for itself or any of its assets and properties, (iv) commence a voluntary case for relief as  a debtor under the United States Bankruptcy Code, (v) file with or otherwise submit to any governmental  authority any petition, answer or other document seeking (A) reorganization, (B) an arrangement with  creditors or (C) to take advantage of any other present or future applicable law respecting bankruptcy,  reorganization, insolvency, readjustment of debts, relief of debtors, dissolution or liquidation, (vi) file or  otherwise submit any answer or other document admitting or failing to contest the material allegations of  a petition or other document filed or otherwise submitted against it in any proceeding under any such  applicable law, (vii) be adjudicated a bankrupt or insolvent, or (viii) take any action for the purpose of  effecting any of the foregoing; or  (h) (h) any case, proceeding or other action shall be commenced against either Borrower or any  of their Significant Subsidiaries for the purpose of effecting, or an order, judgment or decree shall be  entered by any court of competent jurisdiction approving (in whole or in part), anything specified in  subsection (g) of this Section, or any receiver, trustee, assignee, custodian, sequestrator, liquidator or  other official shall be appointed with respect to either Borrower or any of their Significant Subsidiaries, or  shall be appointed to take or shall otherwise acquire possession or control of all or a substantial part of the  assets and properties of either Borrower or any of their Significant Subsidiaries, and any of the foregoing  shall continue unstayed and in effect for any period of sixty days; or  (i) (i) one or more final judgments for the payment of money in excess of an aggregate of  $10,000,000 shall be rendered against either Borrower or any of their Subsidiaries and the same shall  remain undischarged for a period of thirty days during which levy and execution shall not be effectively  stayed or contested in good faith; or  (j) (j) either Borrower or any ERISA Affiliate shall, or shall be reasonably expected to, incur  liability as a result of the occurrence of any ERISA Event provided that any such event (individually or in  the aggregate with any other such event) would be reasonably likely to have or has had (in the reasonable  judgment of the Required Lenders) a Material Adverse Effect; or  (k) (k) the Holding Company shall own less than all of the outstanding securities issued by the  Operating Company, or any other Person shall acquire any option, warrant or other right to acquire any of  those securities; or  (l) (l) the Robinson Family shall cease to own (in the aggregate) at least fifty-one percent  (51.00%) of the issued and outstanding shares of Class A Stock of the Holding Company; or any other  Person shall acquire any option, warrant or other right to acquire (from the Robinson Family, the Holding  Company or otherwise) any securities issued by the Holding Company that, if exercised, would result in  the Robinson Family holding less than 51% of such stock; or  

 

    76       (m) the Board of Directors of the Holding Company shall submit to its shareholders for  adoption, or the shareholders of the Holding Company shall adopt, any supplement, modification or  amendment to or restatement of the certificate of incorporation or the by-laws of the Holding Company  that would in any way directly or indirectly (i) alter the relative voting rights or powers of the classes of  the capital stock of the Holding Company, (ii) add any additional classes of capital stock with any voting  rights, or (iii) adversely affect the rights, powers, privileges, remedies or interests of the Agent or the  Lenders under this Agreement or any other Loan Document, in any such case without the prior written  consent of the Required Lenders; or  (n) At any time during the Secured Obligations Period, any Collateral  Document after delivery thereof pursuant to the terms of the Loan Documents shall for any  reason cease to create a valid and perfected first priority Lien (subject to Liens permitted under  Section 5.02(a)) on a material portion of the Collateral purported to be covered thereby, or any  Borrower shall assert the invalidity of such Liens;  then, and in any such event, the Agent shall, at the request of, or may, with the consent of, the Required  Lenders, take any or all of the following actions (i) declare the Commitment of each Lender to make  Advances and any obligation of the Issuing Bank to issue, amend or extend Letters of Credit to be  terminated, whereupon the same shall forthwith terminate, (ii) declare the unpaid principal amount of all  outstanding Advances, all interest accrued and unpaid thereon, and all other amounts owing or payable  hereunder or under any other Loan Document to be immediately due and payable, without presentment,  demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrowers,  (iii) require that the Borrowers Cash Collateralize the L/C Exposure, and (in an amount equal to the  Minimum Collateral Amount with respect thereto); and (iv) exercise on behalf of itself, the Lenders and  the Issuing Bank all rights and remedies available to it, the Lenders and the Issuing Bank under the Loan  Documents or applicable law or equity; provided, however, that in the event of an actual or deemed entry  of an order for relief with respect to either Borrower under the United States Bankruptcy Code, (1) the  obligation of each Lender to make Advances and of the Issuing Bank to issue, amend or extend Letters of  Credit shall automatically be terminated, (2) the Advances, all such interest and all other 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 each Borrower, and (3) the obligation of the Borrowers  to Cash Collateralize the L/C Exposure as aforesaid shall automatically become effective, in each case  without further act of the Agent or any Lender.  SECTION 8.02Section 6.02 Application of Funds.  After the exercise of remedies provided  for in Section 6.01 (or after the Advances have automatically become immediately due and payable and  the L/C Exposure has automatically been required to be Cash Collateralized as set forth in the proviso to  Section 6.01) or if at any time insufficient funds are received by and available to the Agent to pay fully all  debts, liabilities and obligations then due hereunder, any amounts received on account of the all debts,  liabilities and obligations hereunder and under the other Loan Documents shall, subject to the provisions  of Sections 2.22 and 2.24, be applied by the Agent in the following order:  First, to payment of that portion of the debts, liabilities and obligations hereunder and  under the other Loan DocumentsSecured Obligations constituting fees, indemnities, expenses and  other amounts (including fees, charges and disbursements of counsel to the Agent and amounts  payable under Sections 2.08(c), 2.11, 2.12, 2.14 and 2.142.18(c)) payable to the Agent in its  capacity as such;    Second, to payment of that portion of the debts, liabilities and obligations hereunder and  under the other Loan DocumentsSecured Obligations constituting fees, indemnities and other  amounts (other than principal, interest, and letter of credit fees pursuant to Section 2.16(g)(i))  

 

    77      payable to the Lenders and the Issuing Bank (including fees, charges and disbursements of  counsel to the respective Lenders and the Issuing Bank (including fees and time charges for  attorneys who may be employees of any Lender or the Issuing Bank) arising under the Loan  Documents and amounts payable under Sections 2.08(c), 2.11, 2.12, 2.14 and 2.142.18, ratably  among them in proportion to the respective amounts described in this clause Second payable to  them;    Third, to payment of that portion of the debts, liabilities and obligations hereunder and  under the other Loan DocumentsSecured Obligations constituting accrued and unpaid letter of  credit fees pursuant to Section 2.16(g)(i) and interest on the Advances, Letter of Credit Advances  and other debts, liabilities and obligationsSecured Obligations arising under the Loan Documents,  ratably among the Lenders and the Issuing Bank in proportion to the respective amounts  described in this clause Third payable to them;    Fourth, to payment of that portion of the debts, liabilities and obligations hereunder and  under the other Loan DocumentsSecured Obligations constituting unpaid principal of the  Advances and Letter of Credit Advances and Secured Obligations then owing under any Secured  Hedge Agreements and Secured Cash Management Agreements and to the Agent for the account  of Issuing Bank, to Cash Collateralize that portion of L/C Exposure comprised of the aggregate  undrawn amount of Letters of Credit to the extent not otherwise Cash Collateralized by the  Borrowers pursuant to Sections 2.16 and 2.24, in each case ratably among the Agent, the Lenders  and, the Issuing Bank, the Hedge Banks and the Cash Management Banks in proportion to the  respective amounts described in this clause Fourth held by them; and    Last, the balance, if any, after all of the debts, liabilities and obligations hereunder and  under the other Loan Documents have been indefeasibly paid in full, to the Borrowers or as  otherwise required by law.    Subject to Sections 2.16(c) and 2.24, amounts used to Cash Collateralize the aggregate undrawn amount  of Letters of Credit pursuant to clause Fourth above shall be applied to satisfy drawings under such  Letters of Credit as they occur.  If any amount remains on deposit as Cash Collateral after all Letters of  Credit have either been fully drawn or expired, such remaining amount shall be applied to the other debts,  liabilities and obligations hereunder and under the other Loan Documents, if any, in the order set forth  above.    Notwithstanding the foregoing, Secured Obligations arising under Secured Cash Management  Agreements and Secured Hedge Agreements shall be excluded from the application described above if the  Agent has not received a Secured Party Designation Notice, together with such supporting documentation  as the Agent may request, from the applicable Cash Management Bank or Hedge Bank, as the case may  be.  Each Cash Management Bank or Hedge Bank not a party to this Agreement that has given the notice  contemplated by the preceding sentence shall, by such notice, be deemed to have acknowledged and  accepted the appointment of the Agent pursuant to the terms of Article VII for itself and its Affiliates as if  a “Lender” party hereto.  ARTICLE IXArticle VII    THE AGENT  Section 7.01 Appointment and Authority.    

 

    78       (a) Each of the Lenders and the Issuing Bank hereby irrevocably appoints,  designates and authorizes Bank of America to act on its behalf as the Agent hereunder and under the other  Loan Documents and authorizes the Agent to take such actions on its behalf and to exercise such powers  as are delegated to the Agent by the terms hereof or thereof, together with such actions and powers as are  reasonably incidental thereto.  The provisions of this Article are solely for the benefit of the Agent, the  Lenders and the Issuing Bank, and neither Borrower nor any of their Subsidiaries shall have rights as a  third party beneficiary of any of such provisions.  It is understood and agreed that the use of the term  “agent” herein or in any other Loan Documents (or any other similar term) with reference to the 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.  (b) The Agent shall also act as the “collateral agent” under the Loan Documents, and  each of the Lenders (including in its capacities as a potential Hedge Bank, and a potential Cash  Management Bank) and the Issuing Bank hereby irrevocably appoints and authorizes the Agent  to act as the agent of such Lender and the Issuing Bank for purposes of acquiring, holding and  enforcing any and all Liens on Collateral granted by any of the Borrowers to secure any of the  Secured Obligations, together with such powers and discretion as are reasonably incidental  thereto. In this connection, the Agent, as “collateral agent” and any co-agents, sub-agents and  attorneys-in-fact appointed by the Agent pursuant to Section 7.05 for purposes of holding or  enforcing any Lien on the Collateral (or any portion thereof) granted under the Collateral  Documents, or for exercising any rights and remedies thereunder at the direction of the Agent,  shall be entitled to the benefits of all provisions of this Article VII and Article VIII (including  Section 8.04(c), as though such co-agents, sub-agents and attorneys-in-fact were the “collateral  agent” under the Loan Documents) as if set forth in full herein with respect thereto.  SECTION 9.01Section 7.02 Rights as a Lender.  The Person serving as the 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 Agent and the term “Lender” or “Lenders” shall, unless otherwise  expressly indicated or unless the context otherwise requires, include the Person serving as the 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 banking, trust, financial, advisory, underwriting or other business with any  Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Agent hereunder and  without any duty to account therefor to the Lenders or to provide notice to or consent of the Lenders with  respect thereto.  SECTION 9.02Section 7.03 Exculpatory Provisions.    (a) The 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 Agent and its Related Parties:    (i) shall not be subject to any fiduciary or other implied duties, regardless of whether  a 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 Agent is required to exercise as directed in writing by the  Required Lenders (or such other number or percentage of the Lenders as shall be expressly  

 

    79      provided for herein or in the other Loan Documents), provided that the Agent shall not be  required to take any action that, in its opinion or the opinion of its counsel, may expose the Agent  to liability or that is contrary to any Loan Document or applicable law, including for the  avoidance of doubt any action that may be in violation of the automatic stay under any Debtor  Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting  Lender in violation of any Debtor Relief Law; and    (iii) shall not, except as expressly set forth herein and in the other Loan Documents,  have any duty or responsibility to disclose, and shall not be liable for the failure to disclose, any  information concerning the business, prospects, operations, property, financial and other  condition or creditworthiness relating to any Borrower or any of its Affiliates that is  communicated to or obtained by the Person serving as the Agent or any of its Affiliates in any  capacity.    (eb) Neither the Agent nor any of its Related Parties shall be liable for any action  taken or not taken by the Agent under or in connection with this Agreement or any other Loan Document  or the transactions contemplated hereby or thereby (i) with the consent or at the request of the Required  Lenders (or such other number or percentage of the Lenders as shall be necessary), or as the Agent shall  believe in good faith shall be necessary, under the circumstances as provided in Sections 6.01 and 8.01) or  (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of  competent jurisdiction by final and nonappealable judgment.  The Agent shall be deemed not to have  knowledge of any Default unless and until notice describing such Default is given in writing to the Agent  by the Borrowers, a Lender or the Issuing Bank.    (fc) Neither the Agent nor any of its Related Parties have any duty or obligation to  any Lender or participant or any other Person to ascertain or inquire into (i) any statement, warranty or  representation made in or in connection with this Agreement or any other Loan Document, (ii) the  contents of any certificate, report or other document delivered hereunder or thereunder or in connection  herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other  terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity,  enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other  agreement, instrument or document, or (vthe creation, perfection or priority of any Lien purported to be  created by the Loan Documents, (v) the value or the sufficiency of any Collateral, or (vi) 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 Agent.    SECTION 9.03Section 7.04 Reliance by Agent.  The Agent shall be entitled to rely upon, and  shall be fully protected in relying and shall not incur any liability for relying upon, any notice, request,  certificate, communication, 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 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 be fully protected in relying and shall not incur any liability for relying thereon.  In  determining compliance with any condition hereunder to the making of an Advance, or the issuance,  extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of  a Lender or the Issuing Bank, the Agent may presume that such condition is satisfactory to such Lender or  the Issuing Bank unless the Agent shall have received notice to the contrary from such Lender or the  Issuing Bank prior to the making of such Advance or the issuance of such Letter of Credit.  The Agent  may consult with legal counsel (who may be counsel for the Borrowers), 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.  For purposes of determining compliance  

 

    80      with the conditions specified in Section 3.01 and in 3.02 on the Effective Date , each Lender that has  signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with,  each document or other matter required thereunder to be consented to or approved by or acceptable or  satisfactory to a Lender unless the Agent shall have received notice from such Lender prior to the  proposed Effective Date specifying its objections.  SECTION 9.04Section 7.05 Delegation of Duties.  The Agent may perform any and all of its  duties and exercise its rights and powers hereunder or under any other Loan Document by or through any  one or more sub-agents appointed by the Agent.  The Agent and any such sub-agent may perform any and  all of its duties and exercise its rights and powers by or through their respective Related Parties.  The  exculpatory provisions of this Article shall apply to any such sub-agent (including any syndication agent,  documentation agent and co-agent) and to the Related Parties of the Agent and any such sub-agent, and  shall apply to their respective activities in connection with the syndication of the Facility as well as  activities as Agent. The Agent shall not be responsible for the negligence or misconduct of any sub-agents  except to the extent that a court of competent jurisdiction determines in a final and nonappealable  judgment that the Agent acted with gross negligence or willful misconduct in the selection of such sub- agents.   Each Lender hereby acknowledges that none of the syndication agent, the documentation agent,  any co-agent or any other Lender designated as any “Agent” on the signature pages hereof has any  responsibility or liability hereunder other than in its capacity as a Lender.  SECTION 9.05Section 7.06 Resignation of Agent.    (a) Notice.  The Agent may at any time give notice of its resignation to the Lenders,  the Issuing Bank and the Borrowers.  Upon receipt of any such notice of resignation, the Required  Lenders shall have the right, in consultation with the Borrowers, to appoint a successor, which shall be a  bank with an office in the United States, or an Affiliate of any such bank with an office in the United  States.  If no such successor shall have been so appointed by the Required Lenders and shall have  accepted such appointment within thirty (30) days after the retiring Agent gives notice of its resignation  (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective Date”), then  the retiring Agent may (but shall not be obligated to) on behalf of the Lenders and the Issuing Bank,  appoint a successor Agent meeting the qualifications set forth above; provided that in no event shall any  successor Agent be a Defaulting Lender.  Whether or not a successor has been appointed, such resignation  shall become effective in accordance with such notice on the Resignation Effective Date.    (b) Removal.  If the Person serving as Agent is a Defaulting Lender pursuant to  clause (d) of the definition thereof, the Required Lenders may, to the extent permitted by applicable law,  by notice in writing to the Borrowers and such Person remove such Person as Agent and, with the written  consent of  the Holding Company (not to be unreasonably withheld or delayed), appoint a successor;  provided that no such consent of the Holding Company shall be required if an Event of Default shall have  occurred and is continuing.  If no such successor shall have been so appointed by the Required Lenders  and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the  Required Lenders) (the “Removal Effective Date”),  then such removal shall nonetheless become  effective in accordance with such notice on the Removal Effective Date.    (c) Effect of Resignation or Removal.  With effect from the Resignation Effective  Date (i) the retiring (or removed) Agent shall be discharged from its duties and obligations hereunder and  under the other Loan Documents (except that in the case of any collateral security held by the Agent on  behalf of the Lenders or the Issuing Bank under any of the Loan Documents, the retiring (or removed)  Agent shall continue to hold such collateral security until such time as a successor Agent is appointed)  and (ii) except for any indemnity payments or other amounts then owed to the retiring (or removed)  Agent, all payments, communications and determinations provided to be made by, to or through the  

 

    81      Agent shall instead be made by or to each Lender and the Issuing Bank directly, until such time, if any, as  the Required Lenders appoint a successor Agent as provided for above.  Upon the acceptance of a  successor’s appointment as Agent hereunder, such successor shall succeed to and become vested with all  of the rights, powers, privileges and duties of the retiring (or removed) Agent (other than as provided in  Section 2.14(g) and other than any rights to indemnity payments or other amounts owed to the retiring (or  removed) Agent as of the Resignation Effective Date or the Removal Effective Date, as applicable, and  the retiring Agent shall be discharged from all of its duties and obligations hereunder or under the other  Loan Documents (if not already discharged therefrom as provided above in this Section).  The fees  payable by the Borrowers to a successor Agent shall be the same as those payable to its predecessor  unless otherwise agreed among the Borrowers and such successor.  After the retiring (or removed)  Agent’s resignation (or removal) hereunder and under the other Loan Documents, the provisions of this  Article and Section 8.04 shall continue in effect for the benefit of such retiring (or removed) Agent, its  sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by  any of them (i) while the retiring (or removed) Agent was acting as Agent and (ii) after such resignation  or removal for as long as any of them continues to act in any capacity hereunder or under the other Loan  Documents, including, without limitation, (A) acting as collateral agent or otherwise holding any  collateral security on behalf of any of the Secured Parties and (B) in respect of any actions taken in  connection with transferring the agency to any successor Agent.    (d) Issuing Bank and Swingline Lender.  Any resignation by Bank of America as  Agent pursuant to this Section shall also constitute its resignation as Issuing Bank and Swingline Lender.   If Bank of America resigns as Issuing Bank, it shall retain all the rights, powers, privileges and duties of  the Issuing Bank hereunder with respect to all Letters of Credit outstanding as of the effective date of its  resignation as Issuing Bank and all L/C Exposure with respect thereto, including the right to require the  Lenders to make Base Rate Advances or Letter of Credit Advances pursuant to Section 2.16(c).  If Bank  of America resigns as Swingline Lender, it shall retain all the rights of the Swingline Lender provided for  hereunder with respect to Swingline Advances made by it and outstanding as of the effective date of such  resignation, including the right to require the Lenders to fund risk participations in outstanding Swingline  Advances pursuant to Section 2.04(c).  Upon the appointment by the Borrowers of a successor Issuing  Bank or Swingline Lender hereunder (which successor shall in all cases be a Lender other than a  Defaulting Lender), (i) such successor shall succeed to and become vested with all of the rights, powers,  privileges and duties of the retiring Issuing Bank or Swingline Lender, as applicable, (ii) the retiring  Issuing Bank and Swingline Lender shall be discharged from all of their respective duties and obligations  hereunder or under the other Loan Documents, and (iii) the successor Issuing Bank shall issue letters of  credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make  other arrangements satisfactory to Bank of America to effectively assume the obligations of Bank of  America with respect to such Letters of Credit.    SECTION 9.06Section 7.07 Non-Reliance on Agent and Other Lenders.  Each Lender and  the Issuing Bank acknowledges that none of the Agent nor either of the Arrangers has made any  representation or warranty to it, and that no act by the Agent or either of the Arrangers hereafter  taken, including any consent to, and acceptance of any assignment or review of the affairs of any  Borrower or any Affiliate thereof, shall be deemed to constitute any representation or warranty  by the Agent or either of the Arrangers to any Lender or Issuing Bank as to any matter, including  whether the Agent or either of the Arrangers has disclosed material information in their (or their  Related Parties’) possession.  Each Lender and Issuing Bank represents to the Agent and each  Arranger that it has, independently and without reliance upon the 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 andof, appraisal of, and investigation into, the business, prospects, operations,  property, financial and other condition and creditworthiness of the Borrowers and their  

 

    82      Subsidiaries, and all applicable bank or other regulatory laws relating to the transactions  contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to  the Borrowers hereunder.  Each Lender and the Issuing Bank also acknowledges that it will,  independently and without reliance upon the 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 credit analysis, appraisals and 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, and to make such investigations as it deems necessary to inform itself as  to the business, prospects, operations, property, financial and other condition and  creditworthiness of the Borrowers.  Each Lender and Issuing Bank represents and warrants that  (i) the Loan Documents set forth the terms of a commercial lending facility and (ii) it is engaged  in making, acquiring or holding commercial loans in the ordinary course and is entering into this  Agreement as a Lender or Issuing Bank for the purpose of making, acquiring or holding  commercial loans and providing other facilities set forth herein as may be applicable to such  Lender or Issuing Bank, and not for the purpose of purchasing, acquiring or holding any other  type of financial instrument, and each Lender and the Issuing Bank agrees not to assert a claim in  contravention of the foregoing.  Each Lender and the Issuing Bank represents and warrants that it  is sophisticated with respect to decisions to make, acquire and/or hold commercial loans and to  provide other facilities set forth herein, as may be applicable to such Lender or such Issuing  Bank, and either it, or the Person exercising discretion in making its decision to make, acquire  and/or hold such commercial loans or to provide such other facilities, is experienced in making,  acquiring or holding such commercial loans or providing such other facilities.  SECTION 9.07Section 7.08 No Other Duties, Etc.  Anything herein to the contrary  notwithstanding, none of the titles listed on the cover page hereof shall have any powers, duties or  responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as  applicable, as the Agent, an Arranger, a Lender or the Issuing Bank hereunder.  Section 7.09 Agent May File Proofs of Claim; Credit Bidding  .    (a) In case of the pendency of any proceeding under any Debtor Relief Law or any other  judicial proceeding relative to any Borrower, the Agent (irrespective of whether the principal of any  Advance or any L/C Exposure shall then be due and payable as herein expressed or by declaration or  otherwise and irrespective of whether the Agent shall have made any demand on the Borrowers) shall be  entitled and empowered, by intervention in such proceeding or otherwise:  (ai) to file and prove a claim for the whole amount of the principal and interest owing  and unpaid in respect of the Advances, L/C Exposure and all other debts, liabilities and obligations that  are owing and unpaid hereunder and under the other Loan Documents and to file such other documents as  may be necessary or advisable in order to have the claims of the Lenders, the Issuing Bank and the Agent  (including any claim for the reasonable compensation, expenses, disbursements and advances of the  Lenders, the Issuing Bank and the Agent and their respective agents and counsel and all other amounts  due the Lenders, the Issuing Bank and the Agent under Sections 2.13(f), 2.16(h) and (i), 2.21, and 8.04)  allowed in such judicial proceeding; and    (bii) to collect and receive any monies or other property payable or deliverable on any  such claims and to distribute the same;  

 

    83        and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such  judicial proceeding is hereby authorized by each Lender and the Issuing Bank to make such payments to  the Agent and, in the event that the Agent shall consent to the making of such payments directly to the  Lenders and the Issuing Bank, to pay to the Agent any amount due for the reasonable compensation,  expenses, disbursements and advances of the Agent and its agents and counsel, and any other amounts  due the Agent under Sections 2.13(f), 2.21, and 8.04.    (b) Nothing contained herein shall be deemed to authorize the Agent to authorize or consent  to or accept or adopt on behalf of any Lender or the Issuing Bank any plan of reorganization,  arrangement, adjustment or composition affecting the Advances, L/C Exposure or any other debts,  liabilities and obligations that are owing and unpaid hereunder and under the other Loan Documents or  the rights of any Lender or the Issuing Bank to authorize the Agent to vote in respect of the claim of any  Lender or the Issuing Bank or in any such proceeding.      (b) (c) The Secured Parties hereby irrevocably authorize the Agent, at the  direction of the Required Lenders, to credit bid all or any portion of the Secured Obligations  (including accepting some or all of the Collateral in satisfaction of some or all of the Secured  Obligations pursuant to a deed in lieu of foreclosure or otherwise) and in such manner purchase  (either directly or through one or more acquisition vehicles) all or any portion of the Collateral  (i) at any sale thereof conducted under the provisions of the Bankruptcy Code of the United  States, including under Sections 363, 1123 or 1129 of the Bankruptcy Code of the United States,  or any similar laws in any other jurisdictions to which a Borrower is subject, (ii) at any other sale  or foreclosure or acceptance of collateral in lieu of debt conducted by (or with the consent or at  the direction of) the Agent (whether by judicial action or otherwise) in accordance with any  applicable law. In connection with any such credit bid and purchase, the Secured Obligations  owed to the Secured Parties shall be entitled to be, and shall be, credit bid on a ratable basis  (with Secured Obligations with respect to contingent or unliquidated claims receiving contingent  interests in the acquired assets on a ratable basis that would vest upon the liquidation of such  claims in an amount proportional to the liquidated portion of the contingent claim amount used  in allocating the contingent interests) in the asset or assets so purchased (or in the capital stock  and other ownership interests or debt instruments of the acquisition vehicle or vehicles that are  used to consummate such purchase). In connection with any such bid (A) the Agent shall be  authorized to form one or more acquisition vehicles to make a bid, (B) to adopt documents  providing for the governance of the acquisition vehicle or vehicles (provided that any actions by  the Agent with respect to such acquisition vehicle or vehicles, including any disposition of the  assets or capital stock and other ownership interests thereof shall be governed, directly or  indirectly, by the vote of the Required Lenders, irrespective of the termination of this Agreement  and without giving effect to the limitations on actions by the Required Lenders contained in  Section 8.01 of this Agreement), (C) the Agent shall be authorized to assign the relevant Secured  Obligations to any such acquisition vehicle pro rata by the Lenders, as a result of which each of  the Lenders shall be deemed to have received a pro rata portion of any capital stock and other  ownership interests and/or debt instruments issued by such an acquisition vehicle on account of  the assignment of the Secured Obligations to be credit bid, all without the need for any Secured  Party or acquisition vehicle to take any further action, and (D) to the extent that Secured  Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any  reason (as a result of another bid being higher or better, because the amount of Secured  Obligations assigned to the acquisition vehicle exceeds the amount of debt credit bid by the  

 

    84      acquisition vehicle or otherwise), such Secured Obligations shall automatically be reassigned to  the Lenders pro rata and the capital stock and other ownership interests and/or debt instruments  issued by any acquisition vehicle on account of the Secured Obligations that had been assigned  to the acquisition vehicle shall automatically be cancelled, without the need for any Secured  Party or any acquisition vehicle to take any further action.  Section 7.10 Collateral Matters  .  (c) (a) No amendment, waiver or consent to this Agreement shall, without  the prior written consent of each Lender directly affected thereby, (i) modify Section 2.13(a),  2.15, 6.02 or any other provision hereof in a manner that would have the effect of altering the  ratable reduction of Commitments or the pro rata sharing of payments otherwise required  hereunder, (ii) subordinate, or have the effect of subordinating, the Obligations hereunder to any  other Debt or other obligation, (iii) except as provided in Section 7.10(b)(i), subordinate, or have  the effect of subordinating, the Liens securing the Obligations to Liens securing any other Debt  or other obligation, or (iv) release, or have the effect of releasing, all or substantially all of the  Collateral securing the Obligations.  (d) (b) Each of the Lenders (including in its capacities as a potential Cash  Management Bank and a potential Hedge Bank) and the Issuing Bank irrevocably authorize the  Agent, at its option and in its discretion,  (i) to release any Lien on any property granted to or held by the Agent  under any Loan Document (i) upon payment in full of the Secured Obligations and  termination of the Commitments of each Lender, (ii) upon the Collateral Release Date,  (ii) that is sold or otherwise disposed of or to be sold or otherwise disposed of as part of  or in connection with any sale or other disposition permitted hereunder or under any other  Loan Document, or (iii) if approved, authorized or ratified in writing by the Required  Lenders in accordance with Section 8.01;  (ii) to subordinate any Lien on any property granted to or held by the  Agent under any Loan Document to the holder of any Lien on such property that is  permitted by Section 5.02(a)(iii).  (c) Upon request by the Agent at any time, the Required Lenders will confirm  in writing the Agent’s authority to release or subordinate its interest in particular types or items  of property pursuant to this Section 7.10. In each case as specified in this Section 7.10, the Agent  will, at the Borrowers’ expense, execute and deliver to the applicable Borrower such documents  as such Borrower may reasonably request to evidence the release of such item of Collateral from  the assignment and security interest granted under the Collateral Documents or to subordinate its  interest in such item in accordance with the terms of the Loan Documents and this Section 7.10.  (d) The Agent shall not be responsible for or have a duty to ascertain or inquire into  any representation or warranty regarding the existence, value or collectability of the Collateral,  the existence, priority or perfection of the Agent’s Lien thereon, or any certificate prepared by  

 

    85      any Borrower in connection therewith, nor shall the Agent be responsible or liable to the Lenders  for any failure to monitor or maintain any portion of the Collateral.  Section 7.11 Secured Cash Management Agreements and Secured Hedge Agreements  .Except as otherwise expressly set forth herein or in any Collateral Document, no Cash  Management Bank or Hedge Bank that obtains the benefit of the provisions of Section 6.03 or  any Collateral by virtue of the provisions hereof or any Collateral Document shall have any right  to notice of any action or to consent to, direct or object to any action hereunder or under any  other Loan Document or otherwise in respect of the Collateral (including the release or  impairment of any Collateral) (or to notice of or to consent to any amendment, waiver or  modification of the provisions hereof or of any Collateral Document) other than in its capacity as  a Lender and, in such case, only to the extent expressly provided in the Loan Documents.  Notwithstanding any other provision of this Article VII to the contrary, the Agent shall not be  required to verify the payment of, or that other satisfactory arrangements have been made with  respect to, Secured Obligations arising under Secured Cash Management Agreements and  Secured Hedge Agreements except to the extent expressly provided herein and unless the Agent  has received a Secured Party Designation Notice of such Secured Obligations, together with such  supporting documentation as the Agent may request, from the applicable Cash Management  Bank or Hedge Bank, as the case may be. The Agent shall not be required to verify the payment  of, or that other satisfactory arrangements have been made with respect to, Secured Obligations  arising under Secured Cash Management Agreements and Secured Hedge Agreements in the  case of the termination of this Agreement.    ARTICLE XArticle VIII    MISCELLANEOUS  ARTICLE XISection 8.01 Amendments, Etc.  No amendment or waiver of any provision of  this Agreement, nor consent to any departure by any Borrower therefrom, shall in any event be effective  unless the same shall be in writing and signed by the Required 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 all the Lenders  adversely affected thereby, do any of the following:  (a) waive any of the conditions specified in Section  3.01, (b) increase the Commitments of the Lenders or subject the Lenders to any additional obligations,  (c) reduce the principal of, or interest on, any Advance or any fees or other amounts payable hereunder,  (d) postpone any date fixed for any payment of principal of, or interest on, any Advance or any fees or  other amounts payable hereunder, (e) change the percentage of the Commitments, the aggregate unpaid  principal amount of any Advance or the percentage or number of Lenders, that shall be required for the  Lenders or any of them to take any action hereunder or (f) amend this Section 8.01; and provided further  that (x) no amendment, waiver or consent shall, unless in writing and signed by the Agent in addition to  the Lenders required above to take such action, affect the rights or duties of the Agent under this  Agreement, any Note or any other Loan Document, (y) no amendment, waiver or consent shall, unless in  writing and signed by the Issuing Bank and/or the Swingline Lender in addition to the Lenders required  above to take such action, adversely affect the rights or obligations of the Issuing Bank and/or the  Swingline Lender, as applicable, in their capacities as such under this Agreement, and (z) the Fee Letter  may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties  

 

    86      thereto.  Notwithstanding anything to the contrary herein, (A) no Defaulting Lender shall have any right  to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or  consent which by its terms requires the consent of all Lenders or each affected Lender, or all Lenders or  each affected Lender under a Facility, may be effected with the consent of the applicable Lenders other  than Defaulting Lenders), except that (1) the Commitment of any Defaulting Lender may not be increased  or extended without the consent of such Lender and (2) any waiver, amendment or modification requiring  the consent of all Lenders or each affected Lender, or all Lenders or each affected Lender under a  Facility, that by its terms affects any Defaulting Lender disproportionately adversely relative to other  affected Lenders shall require the consent of such Defaulting Lender; (B) each Lender is entitled to vote  as such Lender sees fit on any bankruptcy reorganization plan that affects the LoansAdvances, and each  Lender acknowledges that the provisions of Section 1126(c) of the Bankruptcy Code of the United States  supersedes the unanimous consent provisions set forth herein and (C) the Required Lenders shall  determine whether or not to allow a Borrower to use cash collateral in the context of a bankruptcy or  insolvency proceeding and such determination shall be binding on all of the Lenders.    Notwithstanding anything to the contrary herein, (a) this Agreement may be amended and  restated without the consent of any Lender (but with the consent of the Borrowers and the Agent) if, upon  giving effect to such amendment and restatement, such Lender shall no longer be a party to this  Agreement (as so amended and restated), the Commitments of such Lender shall have terminated, such  Lender shall have no other commitment or other obligation hereunder and shall have been paid in full all  principal, interest and other amounts owing to it or accrued for its account under this Agreement, and (b)  the Agent may amend or modify this Agreement and any other Loan Document to cure any ambiguity,  omission, mistake, defect or inconsistency therein.  SECTION 11.01Section 8.02 Notices, Etc.  (a)  Notices Generally.  Except in the case of  notices and other communications expressly permitted to be given by telephone (and except as provided  in subsection (b) below), all notices and other communications provided for herein shall be in writing and  shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by  fax transmission or e-mail transmission as follows, and all notices and other communications expressly  permitted hereunder to be given by telephone shall be made to the applicable telephone number, as  follows:  (i) if to any Borrower, the Agent, the Issuing Bank or the Swingline Lender, to the  address, fax number, e-mail address or telephone number specified for such Person on  Schedule 1.01(a); and     (ii) if to any other Lender, to the address, fax number, e-mail address or telephone  number specified in its Administrative Questionnaire (including, as appropriate, notices delivered  solely to the Person designated by a Lender on its Administrative Questionnaire then in effect for  the delivery of notices that may contain material non-public information relating to the  Borrowers).     Notices and other communications sent by hand or overnight courier service, or mailed by  certified or registered mail, shall be deemed to have been given when received; notices and other  communications sent by fax transmission shall be deemed to have been given when sent (except that, if  not given during normal business hours for the recipient, shall be deemed to have been given at the  opening of business on the next Business Day for the recipient).  Notices and other communications  delivered through electronic communications to the extent provided in subsection (b) below shall be  effective as provided in such subsection (b).    This Agreement was prepared by:  Holland & Knight LLP  

 

    87      101 S. Tryon Street, Suite 3600  Charlotte, North Carolina 28280  Attention: Tim Ryan  Phone: 980.215.7777  E-mail: Tim.Ryan@hklaw.com    (b) Electronic Communications.  Notices and other communications to the Agent,   the Lenders, the Swingline Lender and the Issuing Bank hereunder may be delivered or furnished by  electronic communication (including e-mail, FPML messaging and Internet or intranet websites) pursuant  to procedures approved by the Agent; provided that the foregoing shall not apply to notices to any Lender,  the Swingline Lender or the Issuing Bank pursuant to Article II if such Lender, Swingline Lender or the  Issuing Bank, as applicable, has notified the Agent that it is incapable of receiving notices under such  Article by electronic communication.  The Agent, the Swingline Lender, the Issuing Bank or the  Borrowers may each, in its or their 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 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 acknowledgment from the intended  recipient (such as by the “return receipt requested” function, as available, return e-mail or other written  acknowledgement) and (ii) notices and other communications posted to an Internet or intranet website  shall be deemed received by the intended recipient 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  address or other written acknowledgement) indicating that such notice or communication is available and  identifying the website address therefor; provided that for both clauses (i) and (ii), if such notice or other  communication is not sent during the normal business hours of the recipient, such notice, email or  communication shall be deemed to have been sent at the opening of business on the next Business Day for  the recipient.  (c) The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS  AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE  ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF  THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS  FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED  OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A  PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM  FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN  CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.  In no event shall the  Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to any Borrower,  any Lender, the Issuing Bank or any other Person for losses, claims, damages, liabilities or expenses of  any kind (whether in tort, contract or otherwise) arising out of any Borrower’s or the Agent’s  transmission of Borrower Materials or notices through the Platform, any other electronic platform or  electronic messaging service, or through the Internet.    (d) Change of Address, Etc.  Each of the Borrowers, the Agent, the Issuing Bank and the  Swingline Lender may change its address, fax number or telephone number or e-mail address for notices  and other communications hereunder by notice to the other parties hereto.  Each other Lender may change  its address, fax number or telephone number or e-mail address for notices and other communications  hereunder by notice to the Borrowers, the Agent, the Issuing Bank and the Swingline Lender.  In addition,  each Lender agrees to notify the Agent from time to time to ensure that the Agent has on record (i) an  effective address, contact name, telephone number, fax number and e-mail address to which notices and  

 

    88      other communications may be sent and (ii) accurate wire instructions for such Lender.  Furthermore, each  Public Lender agrees to cause at least one (1) individual at or on behalf of such Public Lender to at all  times have selected the “Private Side Information” or similar designation on the content declaration  screen of the Platform in order to enable such Public Lender or its delegate, in accordance with such  Public Lender’s compliance procedures and applicable law, including United States federal and state  securities laws, to make reference to Borrower Materials that are not made available through the “Public  Side Information” portion of the Platform and that may contain material non-public information with  respect to any Borrower or its securities for purposes of United States federal or state securities laws.  (e) Reliance by Agent, Issuing Bank and Lenders.  The Agent, the Issuing Bank and the  Lenders shall be entitled to rely and act upon any notices (including, without limitation, telephonic or  electronic notices and Loan Notices) purportedly given by or on behalf of any Borrower even if (i) such  notices were not made in a manner specified herein, were incomplete or were not preceded or followed by  any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied  from any confirmation thereof.  The Borrowers shall jointly and severally indemnify the Agent, the  Issuing Bank, each Lender and the Related Parties of each of them from all losses, costs, expenses and  liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of a  Borrower.  All telephonic notices to and other telephonic communications with the Agent may be  recorded by the Agent, and each of the parties hereto hereby consents to such recording.  SECTION 11.02Section 8.03 No Waiver; Remedies; Enforcement.  No failure on the part of  any Lender, the Issuing Bank or the Agent to exercise, and no delay in exercising, any right hereunder or  under any Note 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.  Notwithstanding anything to the contrary contained herein or in any other Loan Document, the  authority to enforce rights and remedies hereunder and under the other Loan Documents against the  Borrowers or any of them shall be vested exclusively in, and all actions and proceedings at law in  connection with such enforcement shall be instituted and maintained exclusively by, the Agent in  accordance with Section 6.01 for the benefit of all the Lenders and the Issuing Bank; provided, however,  that the foregoing shall not prohibit (a) the Agent from exercising on its own behalf the rights and  remedies that inure to its benefit (solely in its capacity as Agent) hereunder and under the other Loan  Documents, (b) the Issuing Bank or the Swingline Lender from exercising the rights and remedies that  inure to its benefit (solely in its capacity as Issuing Bank or Swingline Lender, as the case may be)  hereunder and under the other Loan Documents, (c) any Lender from exercising setoff rights in  accordance with Section 8.05 (subject to the terms of Section 2.15), or (d) any Lender from filing proofs  of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative  to any Borrower under any Debtor Relief Law; and provided, further, that if at any time there is no Person  acting as Agent hereunder and under the other Loan Documents, then (i) the Required Lenders shall have  the rights otherwise ascribed to the Agent pursuant to Section 6.01 and (ii) in addition to the matters set  forth in clauses (b), (c) and (d) of the preceding proviso and subject to Section 2.15, any Lender may,  with the consent of the Required Lenders, enforce any rights and remedies available to it and as  authorized by the Required Lenders.  SECTION 11.03Section 8.04 Costs and Expenses; Indemnity.  (a)  The Borrowers shall jointly  and severally pay (i) all reasonable and documented out-of-pocket expenses incurred by the Agent and its  Affiliates (including the reasonable fees, charges and disbursements of one counsel for the Agent), in  connection with the syndication of the credit facilities provided for herein, the preparation, negotiation,  execution, delivery and administration of this Agreement and the other Loan Documents or any  amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions  

 

    89      contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses  incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any  Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket and documented  expenses incurred by the Agent, any Lender or the Issuing Bank (including the fees, charges and  disbursements of any counsel for the Agent, any Lender or the Issuing Bank),  in connection with the  enforcement or protection of its rights (A) in connection with this Agreement and the other Loan  Documents, including its rights under this Section, or (B) in connection with Advances made or Letters of  Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout,  restructuring or negotiations in respect of such Advances or Letters of Credit.  (b) (b) The Borrowers shall jointly and severally indemnify the Agent (and any sub-agent  thereof), each Lender and the Issuing Bank, and each Related Party of any of the foregoing Persons (each  such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all  losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements of  any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any  Person (including any Borrower) arising out of, in connection with, or as a result of (i) the execution or  delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated  hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or  thereunder or the consummation of the transactions contemplated hereby or thereby, or, in the case of the  Agent (and any sub-agent thereof) and its Related Parties only, the administration of this Agreement and  the other Loan Documents (including in respect of any matters addressed in Section 2.14), (ii) any  Advance or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal  by the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in  connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any  actual or alleged presence or release of Environmental Substances on or from any property owned or  operated by a Borrower or any of its Subsidiaries, or any Environmental Claim related in any way to a  Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or  proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether  brought by a third party or by any Borrower or any of a Borrower’s directors, shareholders or creditors,  and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to  any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses  are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted  from the gross negligence or willful misconduct of such Indemnitee.  Without limiting the provisions of  Section 2.14(c), this Section 8.04(b) shall not apply with respect to Taxes other than any Taxes that  represent losses, claims, damages, etc. arising from any non-Tax claim.  (c) (c) To the extent that the Borrowers for any reason fail to indefeasibly pay any amount  required under subsection (a) or (b) of this Section to be paid by it to the Agent (or any sub-agent  thereof), the Issuing Bank, the Swingline Lender or any Related Party of any of the foregoing, each  Lender severally agrees to pay to the Agent (or any such sub-agent), the Issuing Bank, the Swingline  Lender or such Related Party, as the case may be, such Lender’s pro rata share (determined as of the time  that the applicable unreimbursed expense or indemnity payment is sought based on each Lender’s share  of the total Credit Exposure at such time) of such unpaid amount (including any such unpaid amount in  respect of a claim asserted by such Lender), such payment to be made severally among them based on  such Lender’s Pro Rata Share (determined as of the time that the applicable unreimbursed expense or  indemnity payment is sought), provided, further that, the unreimbursed expense or indemnified loss,  claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the  Agent (or any such sub-agent), the Issuing Bank or the Swingline Lender in its capacity as such, or  against any Related Party of any of the foregoing acting for the Agent (or any such sub-agent), the Issuing  Bank or the Swingline Lender in connection with such capacity.  The obligations of the Lenders under  this subsection (c) are subject to the provisions of Section 2.13(h).  

 

    90      (d) (d)  To the fullest extent permitted by applicable law, no Borrower shall assert, and each  Borrower hereby waives, and acknowledges that no other Person shall have, any claim against any  Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed  to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other  Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated  hereby or thereby, any Advance or Letter of Credit or the use of the proceeds thereof.  No Indemnitee  referred to in subsection (b) above shall be liable for any damages arising from the use by unintended  recipients of any information or other materials distributed to such unintended recipients by such  Indemnitee through telecommunications, electronic or other information transmission systems in  connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or  thereby.  (e) (e) Upon demand of any Lender (with a copy to the Agent) from time to time, the Borrowers  shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense  incurred by it as a result of):   (i) any continuation, conversion, payment or prepayment of any Advance other than  a Base Rate Advance on a day other than the last day of the Interest Period for such Advance  (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);    (ii) any failure by a Borrower (for a reason other than the failure of such Lender to  make an Advance) to prepay, borrow, continue or convert any Advance other than a Base Rate  Advance on the date or in the amount notified by the applicable Borrower; or    (iii) any assignment of a Eurodollar Rate Advance on a day other than the last day of  the Interest Period therefor as a result of a request by the Borrower pursuant to Section 8.07(a);     including any loss of anticipated profits and any loss or expense arising from the liquidation or  reemployment of funds obtained by it to maintain such Advance or from fees payable to terminate the  deposits from which such funds were obtained.  The Borrowers shall also jointly and severally pay any  customary administrative fees charged by such Lender in connection with the foregoing.    For purposes of calculating amounts payable by the Borrowers to the Lenders under this Section  8.04(e), each Lender shall be deemed to have funded each Eurodollar Rate Advance made by it at the  Eurodollar Rate for such Advance by a matching deposit or other borrowing in the London interbank  eurodollar market for a comparable amount and for a comparable period, whether or not such Eurodollar  Rate Advance was in fact so funded.  (f) (f) Without prejudice to the survival of any other agreement of the Borrowers hereunder, the  agreements and obligations of the Borrowers contained in Sections 2.08(c), 2.11, 2.12, 2.14, 2.18(c) and  8.04 shall survive the payment in full of principal, interest and all other amounts payable hereunder and  under the other Loan Documents, termination of the aggregate Commitments, resignation of the Agent  and the Termination Date.  (g)Section 8.05 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 Agent to declare the Advances due and payable pursuant to the provisions of Section  6.01, each Lender, the Issuing Bank and each of their respective Affiliates is hereby authorized at any  time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits  (general or special, time or demand, provisional or final) at any time held and other indebtedness at any  time owing by such Lender, the Issuing Bank or such Affiliate to or for the credit or the account of any  

 

    91      Borrower against any and all of the obligations of such Borrower now or hereafter existing under this  Agreement, any Note or any other Loan Document, whether or not such Lender or the Issuing Bank shall  have made any demand under this Agreement or such Note or other Loan Document and although such  obligations may be unmatured, continued, secured or unsecured, or are owed to a branch, office or  Affiliate of such Lender or the Issuing Bank different from the branch, office or Affiliate holding such  deposit or obligated on such indebtedness; provided that in the event that any Defaulting Lender shall  exercise any such right of setoff, (a) all amounts so set off shall be paid over immediately to the Agent for  further application in accordance with the provisions of Section 2.22 and, pending such payment, shall be  segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the  Agent, the Issuing Bank and the Lenders, and (b) the Defaulting Lender shall provide promptly to the  Agent a statement describing in reasonable detail the debts, liabilities and obligations owing to such  Defaulting Lender as to which it exercised such right of setoff.  Each Lender and the Issuing Bank agrees  promptly to notify the Agent and the Borrowers after any such set-off and application, provided that the  failure to give such notice shall not affect the validity of such set-off and application.  The rights of each  Lender, the Issuing Bank and its Affiliates under this Section are in addition to other rights and remedies  (including, without limitation, other rights of set-off) that such Lender, the Issuing Bank and their  respective Affiliates may have.  (h)Section 8.06 Binding Effect.  This Agreement shall become effective (other than Sections 2.01  and 2.16, which shall only become effective upon satisfaction of the conditions precedent set forth in  Section 3.01) when it shall have been executed by the Borrowers and the Agent and when the Agent shall  have been notified by each Initial Lender that such Initial Lender has executed it and thereafter shall be  binding upon and inure to the benefit of the Borrowers, the Agent and each Lender and their respective  successors and assigns, except that no Borrower shall have the right to assign its rights hereunder or any  interest herein without the prior written consent of the Lenders.  (i)Section 8.07 Assignments and Participations.    (a) Successors and Assigns Generally.  The provisions of this Agreement and the  other Loan Documents shall be binding upon and inure to the benefit of the parties hereto and thereto and  their respective successors and assigns permitted hereby, except neither Borrower may assign or  otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Agent  and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder  except (i) to an assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of  participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge  or assignment of a security interest subject to the restrictions of subsection (e) of this Section  (and any  other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this  Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties  hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in  subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of  each of the Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under  or by reason of this Agreement.    (b) Assignments by Lenders.  Any Lender may at any time assign to one or more  assignees all or a portion of its rights and obligations under this Agreement and the other Loan  Documents (including all or a portion of its Commitment(s) and the Advances (including for purposes of  this subsection (b), participations in L/C Exposure and in Swingline Advances) at the time owing to it);  provided that (in each case with respect to any Facility) any such assignment shall be subject to the  following conditions:    

 

    92      (i) Minimum Amounts.    (A) in the case of (x) an assignment of the entire remaining amount  of the assigning Lender’s Commitment under any Facility and/or the  Advances at the time owing to it (in each case with respect to any Facility) or  contemporaneous assignments to related Approved Funds (determined after  giving effect to such Assignmentsassignments) 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,  or (y) an assignment to an acquisition vehicle pursuant to Section 7.09, no  minimum amount need be assigned; and    (B) in any case not described in subsection (b)(i)(A) of this Section,  the aggregate amount of the Commitment (which for this purpose includes  Advances outstanding thereunder) or, if the Commitment is not then in effect,  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 Agent or,  if “Trade Date” is specified in the Assignment and Assumption, as of the  Trade Date, shall not be less than $5,000,000, unless each of the Agent and, so  long as no Event of Default has occurred and is continuing, the Borrowers  otherwise consent (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  and the other Loan Documents with respect to the Advances and/or the Commitment assigned,  except that this clause (ii) shall not apply to the Swingline Lender’s rights and obligations in  respect of Swingline Advances.    (iii) Required Consents.  No consent shall be required for any assignment except to  the extent required by subsection (b)(i)(B) of this Section and, in addition:    (A) the consent of the Borrowers (such consent not to be  unreasonably withheld or delayed) shall be required unless (1) an Event of  Default has occurred and is continuing at the time of such assignment or  (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved  Fund; provided that the Borrowers shall be deemed to have consented to any  such assignment unless it shall object thereto by written notice to the Agent  within ten (10) Business Days after having received notice thereof; and  provided, further, that the Borrowers’ consent shall not be required during the  primary syndication of the Facilities;    (B) the consent of the Agent (such consent not to be unreasonably  withheld or delayed) shall be required for assignments in respect of any  Revolving Credit Commitment if such assignment is to a Person that is not a  Lender with a Revolving Credit Commitment, an Affiliate of such Lender or  an Approved Fund with respect to such Lender; and    (C) the consent of the Issuing Bank and the Swingline Lender shall  be required for any assignment in respect of the Revolving Credit Facility.  

 

    93        (iv) Assignment and Assumption.  The parties to each assignment shall execute and  deliver to the Agent an Assignment and Assumption, together with, except in the case of an  assignment pursuant to Section 7.09, a processing and recordation fee in the amount of $3,500;  provided, however, that the 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 Agent an Administrative Questionnaire.    (v) No Assignment to Certain Persons.  No such assignment shall be made (A) to  any Borrower or any of a Borrower’s Affiliates or Subsidiaries, (B) to any Defaulting Lender or  any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute  any of the foregoing Persons described in this clause (B), or (C) to a natural Person (or a holding  company, investment vehicle or trust for, or owned and operated for the primary benefit of a  natural person).      (vi) Certain Additional Payments.  In connection with any assignment of rights and  obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and  until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall  make such additional payments to the Agent in an aggregate amount sufficient, upon distribution  thereof as appropriate (which may be outright payment, purchases by the assignee of  participations or subparticipations, or other compensating actions, including funding, with the  consent of the Borrowers and the Agent, the applicable pro rata share of Advances previously  requested but not funded by the Defaulting Lender, to each of which the applicable assignee and  assignor hereby irrevocably consent), to (A) pay and satisfy in full all payment liabilities then  owed by such Defaulting Lender to the Agent, the Issuing Bank or any Lender hereunder (and  interest accrued thereon) and (B) acquire (and fund as appropriate) its full pro rata share of all  Advances and participations in Letters of Credit and Swingline Advances in accordance with its  Pro Rata Share.  Notwithstanding the foregoing, in the event that any assignment of rights and  obligations of any Defaulting Lender hereunder shall become effective under applicable law  without compliance with the provisions of this paragraph, then the assignee of such interest shall  be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance  occurs.    Subject to acceptance and recording thereof by the Agent pursuant to subsection (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 Sections 2.11, 2.14 and 8.04 with respect to  facts and circumstances occurring prior to the effective date of such assignment); provided, that except to  the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will  constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been  a Defaulting Lender.  Upon request, each Borrower (at its expense) shall execute and deliver a Note to the  assignee Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement  that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such  Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section.    (c) Register.  The Agent, acting solely for this purpose as a non-fiduciary agent of  the Borrowers, shall maintain at the Agent’s Applicable Lending Office a copy of each Assignment and  

 

    94      Assumption delivered to it (or the equivalent thereof in electronic form) and a register for the recordation  of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated  interest) of the Advances and L/C Exposure owing to, each Lender pursuant to the terms hereof from time  to time (the “Register”).  The entries in the Register shall be conclusive, absent manifest error, and the  Borrowers, the 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 Borrowers 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 Borrowers or the 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, a Defaulting Lender or a Borrower or any of a Borrower’s Affiliates or Subsidiaries) (each, a  “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement  (including all or a portion of its Commitment and/or the Advances (including such Lender’s participations  in L/C Exposure and/or Swingline 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 the  other parties hereto for the performance of such obligations and (iii) the Borrowers, the Agent, the  Lenders and the Issuing Bank 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 8.04(c) without regard to the existence of any  participations.    Any agreement or instrument pursuant to which a Lender sells such a participation shall provide  that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment,  modification or waiver of any provision of this Agreement; provided that such agreement or instrument  may provide that such Lender will not, without the consent of the Participant, agree to any amendment,  waiver or other modification described in the first proviso to Section 8.01 that affects such Participant.   Each Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.11, 2.14, and  8.04(e) (subject to the requirements and limitations therein, including the requirements under Section  2.14(e) (it being understood that the documentation required under Section 2.14(e) shall be delivered to  the Lender who sells the participation)) to the same extent as if it were a Lender and had acquired its  interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees  to be subject to the provisions of Sections 2.23 and 8.14 as if it were an assignee under paragraph (b) of  this Section and (B) shall not be entitled to receive any greater payment under Sections 2.11 or 2.14, with  respect to any participation, than the Lender from whom it acquired the applicable participation would  have been entitled to receive, except to the extent such entitlement to receive a greater payment results  from a Change in Law that occurs after the Participant acquired the applicable participation.  Each Lender  that sells a participation agrees, at the Borrowers’ request and expense, to use reasonable efforts to  cooperate with the Borrowers to effectuate the provisions of Section 2.23 with respect to any Participant.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 8.05 as  though it were a Lender; provided that such Participant agrees to be subject to Section 2.15 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 Borrowers, maintain a register on which it enters the name and address of each  Participant and the principal amounts (and stated interest) of each Participant’s interest in the 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 under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the  

 

    95      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 Agent (in its  capacity as 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 (including under its Note or Notes, if any) to  secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal  Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its  obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.    (f) Resignation as Issuing Bank or Swingline Lender after Assignment.   Notwithstanding anything to the contrary contained herein, if at any time Bank of America assigns all of  its Revolving Credit Commitment and Revolving Credit Advances pursuant to subsection (b) above,  Bank of America may, (i) upon thirty (30) days’ notice to the Borrowers and the Lenders, resign as  Issuing Bank and/or (ii) upon thirty (30) days’ notice to the Borrowers, resign as Swingline Lender.  In  the event of any such resignation as Issuing Bank or Swingline Lender, the Borrowers shall be entitled to  appoint from among the Lenders a successor Issuing Bank or Swingline Lender hereunder; provided,  however, that no failure by the Borrowers to appoint any such successor shall affect the resignation of  Bank of America as Issuing Bank or Swingline Lender, as the case may be.  If Bank of America resigns  as Issuing Bank, it shall retain all the rights, powers, privileges and duties of the Issuing Bank hereunder  with respect to all Letters of Credit outstanding as of the effective date of its resignation as Issuing Bank  and all L/C Exposure  with respect thereto (including the right to require the Lenders to make Base Rate  Advances or fund risk participations in Unreimbursed Amounts pursuant to Section 2.16(c)).  If Bank of  America resigns as Swingline Lender, it shall retain all the rights of the Swingline Lender provided for  hereunder with respect to Swingline Advances made by it and outstanding as of the effective date of such  resignation, including the right to require the Lenders to make Base Rate Advances or fund risk  participations in outstanding Swingline Advances pursuant to Section 2.04(c).  Upon the appointment of a  successor Issuing Bank and/or Swingline Lender, (A) such successor shall succeed to and become vested  with all of the rights, powers, privileges and duties of the retiring Issuing Bank or Swingline Lender, as  the case may be, and (B) the successor Issuing Bank shall issue letters of credit in substitution for the  Letters of Credit, if any, outstanding at the time of such succession or make other arrangements  satisfactory to Bank of America to effectively assume the obligations of Bank of America with respect to  such Letters of Credit.  SECTION 11.04Section 8.08 Treatment of Certain Information; Confidentiality.   (a) Treatment of Certain Information.  Each of the Agent, the Lenders and the  Issuing Bank agrees to maintain the confidentiality of the Information (as defined below), except that  Information may be disclosed (i) to its Affiliates, its auditors and its Related Parties (it being understood  that the Persons to whom such disclosure is made will be informed of the confidential nature of such  Information and instructed to keep such Information confidential), (ii) to the extent required or requested  by any regulatory authority purporting to have jurisdiction over such Person or its Related Parties  (including any self-regulatory authority, such as the National Association of Insurance Commissioners),  (iii) to the extent required by applicable laws or regulations or by any subpoena or similar legal process,  (iv) to any other party hereto, (v) in connection with the exercise of any remedies hereunder or under any  other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document  or the enforcement of rights hereunder or thereunder, (vi) subject to an agreement containing provisions  substantially the same as those of this Section, to (A) any assignee of or Participant in, or any prospective  assignee of or Participant in, any of its rights and obligations under this Agreement or any Eligible  Assignee invited to be a Lender pursuant to Section 2.18(c) or (B) any actual or prospective party (or its  

 

    96      Related Parties) to any swap, derivative or other transaction under which payments are to be made by  reference to the Borrowers and its obligations, this Agreement or payments hereunder, (vii) on a  confidential basis to (A) any rating agency in connection with rating a Borrower or its Subsidiaries or the  credit facilities provided hereunder or (B) the provider of any Platform or other electronic delivery service  used by the Agent, the Issuing Bank and/or the Swingline Lender to deliver Borrower Materials or notices  to the Lenders or (C) the CUSIP Service Bureau or any similar agency in connection with the application,  issuance, publishing and monitoring of CUSIP numbers or other market identifiers with respect to the  credit facilities provided hereunder, or (viii) with the consent of the Borrowers or to the extent such  Information (1) becomes publicly available other than as a result of a breach of this Section or,  (2) becomes available to the Agent, any Lender, the Issuing Bank or any of their respective Affiliates on a  nonconfidential basis from a source other than a Borrower or (3) is independently discovered or  developed by a party hereto without utilizing any Information received from any Borrower or violating  the terms of this Section 8.08.  For purposes of this Section, “Information” means all information received  from any Borrower or any Subsidiary relating to the Borrowers or any Subsidiary or any of their  respective businesses, other than any such information that is available to the Agent, any Lender or the  Issuing Bank on a nonconfidential basis prior to disclosure by a Borrower or any Subsidiary, provided  that, in the case of information received from a Borrower or any Subsidiary after the date hereof, such  information is clearly identified at the time of delivery as confidential.  Any Person required to maintain  the confidentiality of Information as provided in this Section 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.  In addition, the  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 Agent and the Lenders in connection with the administration of this Agreement, the other  Loan Documents and the Commitments.    (b) Non-Public Information.  Each of the Agent, the Lenders and the Issuing Bank  acknowledges that (i) the Information may include material non-public information concerning a  Borrower or a Subsidiary, as the case may be, (ii) it has developed compliance procedures regarding the  use of material non-public information and (iii) it will handle such material non-public information in  accordance with applicable law, including United States federal and state securities laws.    (c) Press Releases. The Borrowers and their Affiliates agree that they will not in the  future issue any press releases or other public disclosure using the name of the Agent or any Lender or  their respective Affiliates or referring to this Agreement or any of the Loan Documents without the prior  written consent of the Agent, unless (and only to the extent that) a Borrower or such Affiliate is required  to do so under law and then, in any event the Borrowers or such Affiliate will consult with such Person  before issuing such press release or other public disclosure; provided, however, that the prohibitions and  requirements of this Section 8.08(c) shall not apply with respect to any public disclosure contained in a  report, statements or other instrument filed with or furnished to the Securities and Exchange Commission,  Nasdaq Stock Market or the Financial Industry Regulatory Authority by either  of the Borrowers.      (d) Customary Advertising Material.  The Borrowers consent to the publication by  the Agent or any Lender of customary advertising material relating to the transactions contemplated  hereby using the name, product photographs, logo or trademark of the Borrowers.    SECTION 11.05Section 8.09 No Advisory or Fiduciary Responsibility.  In connection with all  aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or  other modification hereof or of any other Loan Document), each Borrower acknowledges and agrees, and  acknowledges its Affiliates’ understanding, that:  (a) (i) the arranging and other services regarding this  Agreement provided by the Agent and any Affiliate thereof, the ArrangerArrangers and the Lenders are  

 

    97      arm’s-length commercial transactions between each Borrower and their respective Affiliates, on the one  hand, and the Agent and, as applicable, its Affiliates (including the ArrangerArrangers) and the Lenders  and their Affiliates (collectively, solely for purposes of this Section, the “Lenders”), on the other hand,  (ii) each Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has  deemed appropriate, and (iii) each Borrower is capable of evaluating, and understands and accepts, the  terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents;  (b) (i) the Agent and its Affiliates (including the ArrangerArrangers) and each Lender each is and has  been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not  been, is not, and will not be acting as an advisor, agent or fiduciary, for any Borrower or any of their  respective Affiliates, or any other Person and (ii) neither the Agent, any of its Affiliates (including the  ArrangerArrangers) nor any Lender has any obligation to any Borrower or any of their respective  Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth  herein and in the other Loan Documents; and (c) the Agent and its Affiliates (including the  ArrangerArrangers) and the Lenders may be engaged in a broad range of transactions that involve  interests that differ from those of the Borrowers and their respective Affiliates, and neither the Agent, any  of its Affiliates (including the ArrangerArrangers) nor any Lender has any obligation to disclose any of  such interests to any Borrower or any of their respective Affiliates.  To the fullest extent permitted by law,  each Borrower hereby waives and releases any claims that it may have against the Agent, any of its  Affiliates (including the ArrangerArrangers) or any Lender with respect to any breach or alleged breach  of agency or fiduciary duty in connection with any aspect of any transactions contemplated hereby.  SECTION 11.06Section 8.10 Governing Law; Jurisdiction, Etc.    (a) GOVERNING LAW.  THIS AGREEMENT, ANY NOTES AND EACH OF  THE OTHER LOAN DOCUMENTS AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE  OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING  OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT (EXCEPT,  AS TO ANY OTHER LOAN DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND THE  TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE GOVERNED BY, AND  CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  (b) SUBMISSION TO JURISDICTION.  EACH BORROWER IRREVOCABLY  AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION,  LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR  EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE AGENT,  ANY LENDER, THE ISSUING BANK, OR ANY RELATED PARTY OF THE FOREGOING IN ANY  WAY RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE  TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE  COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE  UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY  APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO  IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH  COURTS  AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION,  LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK  STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH  FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN  ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE  ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER  MANNER PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN  DOCUMENT SHALL AFFECT ANY RIGHT THAT THE AGENT, ANY LENDER OR THE ISSUING  BANK MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO  

 

    98      THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY BORROWER OR ITS  PROPERTIES IN THE COURTS OF ANY JURISDICTION.  (c) SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY  CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN  SECTION 8.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY  HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.  SECTION 11.07Section 8.11 Execution in Counterparts; Electronic Execution.  This  Agreement and each of the other Loan Documents 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.  This Agreement,  the other Loan Documents, and any separate letter agreements with respect to fees payable to the Agent or  the Issuing Bank, constitute the entire contract among the parties relating to the subject matter hereof and  supersede any and all previous agreements and understandings, oral or written, relating to the subject  matter hereof.  Delivery of an executed counterpart of a signature page of this Agreement or any other  Loan Document, or any certificate delivered thereunder, by fax transmission or e-mail transmission (e.g.  “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Agreement or such  other Loan Document or certificate.  Without limiting the foregoing, to the extent a manually executed  counterpart is not specifically required to be delivered under the terms of any Loan Document, upon the  request of any party, such fax transmission or e-mail transmission shall be promptly followed by such  manually executed counterpart.  The words “delivery,” “execute,” “execution,” “signed,” “signature,” and words of like import in  any Loan Document or any other document executed in connection herewith shall be deemed to include  electronic signatures, the electronic matching of assignment terms and contract formations on(a) This  Agreement and any document, amendment, approval, consent, information, notice, certificate,  request, statement, disclosure or authorization related to this Agreement (each a  “Communication”), including Communications required to be in writing, may be in the form of  an Electronic Record and may be executed using Electronic Signatures.  Each of the Borrowers  agrees that any Electronic Signature on or associated with any Communication shall be valid and  binding on each of the Borrowers to the same extent as a manual, original signature, and that any  Communication entered into by Electronic Signature, will constitute the legal, valid and binding  obligation of Each of the Borrowers enforceable against such in accordance with the terms  thereof to the same extent as if a manually executed original signature was delivered.Any  Communication may be executed in as many counterparts as necessary or convenient, including  both paper and electronic platforms approvedcounterparts, but all such counterparts are one and the  same Communication.  For the avoidance of doubt, the authorization under this paragraph may  include, without limitation, use or acceptance by the Agent, or and each of the keeping of records in  electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually  executed signature, physicalSecured Parties of a manually signed paper Communication which has  been converted into electronic form (such as scanned into PDF format), or an electronically  signed Communication converted into another format, for transmission, delivery thereof and/or the  use of a paper-based recordkeeping system, asretention. The Agent and each of the caseSecured  Parties may be, to the extent and as provided for in any applicable law, at its option, create one or  more copies of any Communication in the form of an imaged Electronic Record (“Electronic  Copy”), which shall be deemed created in the ordinary course of the such Person’s business, and  destroy the original paper document.  All Communications in the form of an Electronic Record,  including the Federalan Electronic Signatures in Global and National Commerce Act, the New  

 

    99      York State Electronic Signatures and Records Act, or any other similar state laws based on the  Uniform Electronic Transactions Act; provided that notwithstandingCopy, shall be considered an  original for all purposes, and shall have the same legal effect, validity and enforceability as a  paper record.  Notwithstanding anything contained herein to the contrary, the Agent is under no  obligation to agree to accept electronic signaturesan Electronic Signature in any form or in any format  unless expressly agreed to by the Agent pursuant to procedures approved by it; provided, further, without  limiting the foregoing, (a) to the extent the Agent has agreed to accept such Electronic Signature,  the Agent and each of the Secured Parties shall be entitled to rely on any such Electronic  Signature purportedly given by or on behalf of any Borrower without further verification and (b)  upon the request of the Agent or any Lender, any electronic signatureElectronic Signature shall be  promptly followed by such manually executed counterpart.  For purposes hereof, “Electronic Record”  and “Electronic Signature” shall have the meanings assigned to them, respectively, by 15 USC  §7006, as it may be amended from time to time.  (b) Each Borrower hereby acknowledges the receipt of a copy of this Agreement and  all other Loan Documents. The Agent and each Lender may, on behalf of the Borrowers, create a  microfilm or optical disk or other electronic image of this Agreement and any or all of the other  Loan Documents. The Agent and each Lender may store the electronic image of this Agreement  and the other Loan Documents in its electronic form and then destroy the paper original as part  of the Agent’s and each Lender’s normal business practices, with the electronic image deemed to  be an original and of the same legal effect, validity and enforceability as the paper originals.  SECTION 11.08Section 8.12 Waiver of Jury Trial.  EACH PARTY HERETO HEREBY  IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,  ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY  OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER  LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY  (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY  HERETO (a) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY  OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER  PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING  WAIVER AND (b) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE  BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS  BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS  SECTION.  SECTION 11.09Section 8.13 USA Patriot Act.  Each Lender that is subject to the requirements  of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”) and  the Agent (for itself and not on behalf of any Lender)  hereby notifies the Borrowers that pursuant to the  requirements of the Act, it is required to obtain, verify and record information that identifies each  Borrower, which information includes the name and address of each Borrower and other information that  will allow such Lender to identify each Borrower in accordance with the Act.  Each Borrower agrees to,  promptly following a request by the Agent or any Lender, provide all such other documentation and  information that the Agent or such Lender requests in order to comply with its ongoing obligations under  applicable “know your customer” and anti-money laundering rules and regulations, including the Act.  SECTION 11.10Section 8.14 Replacement of Lenders.  If the Borrowers are entitled to replace  a Lender pursuant to the provisions of Section 2.23(b), or if any Lender is a Defaulting Lender, then the  Borrowers may, at their sole expense and effort, upon notice to such Lender and the Agent, require such  

 

    100      Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions  contained in, and consents required by, Section 8.07), all of its interests, rights (other than its existing  rights to payments pursuant to Sections 2.11 and 2.14) 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:  (a) the Borrowers shall have paid to the Agent the assignment fee (if any) specified  in Section 8.07(b);    (b) such Lender shall have received payment of an amount equal to 100% of the  outstanding principal of its Advances and its participations in Letter of Credit Advances, accrued interest  thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents  (including any amounts under Section 8.04(e)) from the assignee (to the extent of such outstanding  principal and accrued interest and fees) or the Borrowers (in the case of all other amounts);    (c) in the case of any such assignment resulting from a claim for compensation under  Section 2.11 or payments required to be made pursuant to Section 2.14, such assignment will result in a  reduction in such compensation or payments thereafter; and    (d) such assignment does not conflict with applicable laws.    A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a  result of a waiver by such Lender or otherwise, the circumstances entitling the Borrowers to require such  assignment and delegation cease to apply.  SECTION 11.11Section 8.15 Survival of Representations and Warranties.  All representations  and warranties made hereunder and in any other Loan Document or other document delivered pursuant  hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof  and thereof.  Such representations and warranties have been or will be relied upon by the Agent and each  Lender, regardless of any investigation made by the Agent or any Lender or on their behalf and  notwithstanding that the Agent or any Lender may have had notice or knowledge of any Default at the  time of any Advance or other credit extension, and shall continue in full force and effect as long as any  Advance or any other obligation, debt or liability hereunder shall remain unpaid or unsatisfied or any  Letter of Credit shall remain outstanding  SECTION 11.12Section 8.16 Payments Set Aside.  To the extent that any payment by or on  behalf of any Borrower is made to the Agent, the Issuing Bank or any Lender, or the Agent, the Issuing  Bank or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any  part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required  (including pursuant to any settlement entered into by the Agent, the Issuing Bank or such Lender in its  discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under  any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof  originally intended to be satisfied shall be revived and continued in full force and effect as if such  payment had not been made or such setoff had not occurred, and (b) each Lender and the Issuing Bank  severally agrees to pay to the Agent upon demand its applicable share (without duplication) of any  amount so recovered from or repaid by the Agent, plus interest thereon from the date of such demand to  the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in  effect.  The obligations of the Lenders and the Issuing Bank under clause (b) of the preceding sentence  shall survive the payment in full of the obligations, debts and liabilities under this Agreement and the  other Loan Documents and the termination of this Agreement.  

 

    101      SECTION 11.13Section 8.17 Acknowledgement and Consent to Bail-In of EEA Financial  Institutions.  Solely to the extent any Lender or Issuing Bank that is an EEA Financial Institution is a  party to this Agreement and notwithstanding anything to the contrary in any Loan Document or in any  other agreement, arrangement or understanding among any such parties, each party hereto acknowledges  that any liability of any Lender or Issuing Bank that is an EEA Financial Institution arising under any  Loan Document, to the extent such liability is unsecured, may be subject to the write-down and  conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and  agrees to be bound by:   (a) the application of any Write-Down and Conversion Powers by an EEA  Resolution Authority to any such liabilities arising hereunder which may be payable to it by any Lender  or Issuing Bank that is an EEA Financial Institution; and    (b) the effects of any Bail-In Action on any such liability, including, if applicable:    (i)  a reduction in full or in part or cancellation of any such liability;    (ii)  a conversion of all, or a portion of, such liability into shares or other instruments  of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that  may be issued to it or otherwise conferred on it, and that such shares or other instruments of  ownership will be accepted by it in lieu of any rights with respect to any such liability under this  Agreement or any other Loan Document; or    (iii)  the variation of the terms of such liability in connection with the exercise of the  write-down and conversion powers of any EEA Resolution Authority.    Section 8.18 Acknowledgment Regarding Any Supported QFCs.  To the extent that the Loan Documents provide support, through a guarantee or otherwise, for any  Swap Contract or any other agreement or instrument that is a QFC (such support, “QFC Credit Support”,  and each such QFC, a “Supported QFC”), the parties acknowledge and agree as follows with respect to  the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance  Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the  regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported  QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan  Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New  York and/or of the United States or any other state of the United States):   In the event a Covered Entity  that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S.  Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit  Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support,  and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered  Party will be effective to the same extent as the transfer would be effective under the U.S. Special  Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation  and rights in property) were governed by the laws of the United States or a state of the United States. In  the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding  under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise  apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered  Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under  the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the  laws of the United States or a state of the United States. Without limitation of the foregoing, it is  

 

    102      understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in  no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit  Support.  [Signature Pages Follow]  

 

  [Signature Page to Credit Agreement]    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by  their respective authorized officers as an instrument under seal of the day and year first above written.  SCHOLASTIC CORPORATION  By:      Name:    Title:      SCHOLASTIC INC.    By:      Name:    Title:       

 

  [Signature Page to Credit Agreement]    BANK OF AMERICA, N.A.,  as Agent    By:       Name:   Title:    

 

  [Signature Page to Credit Agreement]    BANK OF AMERICA, N.A.,  as a Lender, as the Swingline Lender, and as  Issuing  Bank    By:       Name:   Title:    

 

  [Signature Page to Credit Agreement]      [   ],   as a Lender, [and as  a [   ] Agent]    By:       Name:   Title:     

 

    2    Annex A  COMMITMENTS  COMMITMENT SCHEDULE    Name of Initial Lender Revolving Credit Commitment      Bank of America, N.A.  $71,000,000.00$47,333,333.33  Wells Fargo Bank, National Association $65,000,000.00$43,333,333.33  Branch Banking and Trust CompanyTruist Bank $60,000,000.00$40,000,000.00  Fifth Third Bank, National Association $43,000,000.00$28,666,666.67  Capital One National Association $43,000,000.00$28,666,666.67  HSBC Bank USA, National Association $33,000,000.00$22,000,000.00  The Governor and Company of the Bank of Ireland $25,000,000.00$16,666,666.67  Citibank, N.A. $25,000,000.00$16,666,666.67  HSBC Bank plc $10,000,000.00$6,666,666.67     Total  $375,000,000.00$250,000,000.00      

 

Credit Agreement dated as of January 5, 2017, as amended on December 16, 2020          Schedule 5.02(b)  Existing Debt        Borrower Guarantor Type Facility Amount       Scholastic Canada Scholastic Inc.  HSBC Canada Credit  Agreement   CAD      15,000,000  Scholastic Limited et al Scholastic Inc.  HSBC UK Credit  Agreement   GBP         7,000,000  Scholastic Limited Scholastic Inc. HSBC UK Mortgage  GBP         2,000,000  Scholastic Limited Scholastic Inc. HSBC UK Mortgage  GBP         6,560,000  Scholastic Australia Scholastic Inc.  HSBC Credit  Agreement   AUD         5,000,000  Scholastic India Scholastic Inc.  Bank of America 365- Day Credit Line   USD         5,100,000  Grolier India Scholastic Inc.  Bank of America 365- Day Credit Line   USD             800,000  PT Widyadara/Grolier  Indonesia  Scholastic Inc.  Bank of America 365- DayCredit Line   USD          2,000,000  Scholastic Education  International  (Singapore)  Scholastic Inc.  Bank of America 365- Day Credit Line   SGD           5,600,000  Grolier Malaysia Scholastic Inc.  Bank of America 365- Day Credit Line   USD              200,000  Scholastic Asia Scholastic Inc.  Bank of America 365- Day Credit Line   USD              500,000  Grolier International  Philippines  Scholastic Inc.  Bank of America 365- Day Credit Line   USD               400,000      ###

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