Document:

gap-fourtharablcreditagr

Execution Version         U.S. $2,200,000,000  FOURTH AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT  Dated as of July 13, 2022  among  THE GAP, INC.  as Parent Borrower,  THE SUBSIDIARIES OF THE PARENT BORROWER NAMED HEREIN,  as Borrowers,  THE BANKS AND FINANCIAL INSTITUTIONS NAMED HEREIN,  as Lenders,  THE BANKS NAMED HEREIN  as Issuing Banks,    BOFA SECURITIES, INC.,  JPMORGAN CHASE BANK, N.A.,  CITIBANK, N.A.,  MORGAN STANLEY MUFG LOAN PARTNERS, LLC  and  HSBC BANK USA, NATIONAL ASSOCIATION,  as Joint Lead Arrangers,    U.S. BANK NATIONAL ASSOCIATION,  as Documentation Agent,    WELLS FARGO BANK, NATIONAL ASSOCIATION  and  SUMITOMO MITSUI BANKING CORPORATION  as Syndication Agents,    BANK OF AMERICA, N.A.,  as Agent,    and     BOFA SECURITIES, INC.   and   SUMITOMO MITSUI BANKING CORPORATION  as Co-Sustainability Coordinators  

 

    TABLE OF CONTENTS  PAGE  ARTICLE I  DEFINITIONS AND ACCOUNTING TERMS  SECTION 1.01 Certain Defined Terms .............................................................................. 2  SECTION 1.02 Computation of Time Periods ................................................................. 84  SECTION 1.03 Accounting Terms ................................................................................... 84  SECTION 1.04 Exchange Rates; Currency Equivalents. ................................................. 85  SECTION 1.05 Change of Currency. ............................................................................... 85  SECTION 1.06 Times of Day ........................................................................................... 86  SECTION 1.07 Letter of Credit Amounts. ....................................................................... 86  SECTION 1.08 Limited Conditions Acquisitions. ........................................................... 86  SECTION 1.09 Divisions ................................................................................................. 87  SECTION 1.10 Borrower Representative ......................................................................... 87  SECTION 1.11 Interest Rates ........................................................................................... 88  SECTION 1.12 Quebec Interpretive Provision ................................................................ 88  SECTION 1.13 Additional Alternative Currencies .......................................................... 88  ARTICLE II  AMOUNTS AND TERMS OF THE ADVANCES  SECTION 2.01 The Revolving Credit Advances; Reserves ............................................ 90  SECTION 2.02 Making the Advances .............................................................................. 90  SECTION 2.03 Swing Line Advances. ............................................................................ 93  SECTION 2.04 Letters of Credit. ..................................................................................... 96  SECTION 2.05 Fees ....................................................................................................... 107  SECTION 2.06 Reduction and Increase of the Revolving Credit Commitments;  Additional Issuing Banks .................................................................................... 108  SECTION 2.07 Repayment of Advances ....................................................................... 113  SECTION 2.08 Interest on Advances ............................................................................. 113  

 

       SECTION 2.09 Interest Rate Determination .................................................................. 114  SECTION 2.10 Prepayments of Advances. .................................................................... 119  SECTION 2.11 Increased Costs ..................................................................................... 121  SECTION 2.12 Illegality ................................................................................................ 123  SECTION 2.13 Cash Collateral ...................................................................................... 124  SECTION 2.14 Defaulting Lenders ................................................................................ 125  ARTICLE III  GUARANTY  SECTION 3.01 Guaranty ................................................................................................ 127  SECTION 3.02 Waivers by Loan Parties ....................................................................... 128  SECTION 3.03 Benefit of Guaranty; Stay of Acceleration ............................................ 129  SECTION 3.04 Subordination of Subrogation, Etc. ....................................................... 129  SECTION 3.05 [Reserved] ............................................................................................. 129  SECTION 3.06 Limitation .............................................................................................. 129  SECTION 3.07 Contribution with Respect to Guaranty Obligations ............................. 129  SECTION 3.08 Liability Cumulative ............................................................................. 130  SECTION 3.09 Release of Borrowers and Guarantors: ................................................. 130  ARTICLE IV  PAYMENTS, TAXES, EXTENSIONS, ETC.  SECTION 4.01 Payments Generally; Agent’s Clawback ............................................... 131  SECTION 4.02 Taxes ..................................................................................................... 133  SECTION 4.03 Sharing of Payments by Lenders .......................................................... 138  SECTION 4.04 Evidence of Debt/Borrowings ............................................................... 139  ARTICLE V  CONDITIONS OF LENDING  SECTION 5.01 Conditions Precedent to Effectiveness of this Amendment and  Restatement ......................................................................................................... 140  SECTION 5.02 Conditions Precedent to Credit Extension ............................................ 143  

 

       ARTICLE VI  REPRESENTATIONS AND WARRANTIES  SECTION 6.01 Representations and Warranties of the Loan Parties ............................ 144  ARTICLE VII  COVENANTS OF THE LOAN PARTIES  SECTION 7.01 Affirmative Covenants .......................................................................... 148  SECTION 7.02 Negative Covenants .............................................................................. 157  SECTION 7.03 Financial Covenants .............................................................................. 179  SECTION 7.04 Reporting Requirements ....................................................................... 180  ARTICLE VIII  EVENTS OF DEFAULT  SECTION 8.01 Events of Default .................................................................................. 183  SECTION 8.02 Application of Funds ............................................................................. 186  ARTICLE IX  THE AGENT  SECTION 9.01 Appointment and Authority .................................................................. 188  SECTION 9.02 Rights as a Lender ................................................................................. 189  SECTION 9.03 Exculpatory Provisions ......................................................................... 189  SECTION 9.04 Reliance by Agent ................................................................................. 190  SECTION 9.05 Delegation of Duties ............................................................................. 190  SECTION 9.06 Resignation of Agent ............................................................................ 191  SECTION 9.07 Non-Reliance on Agent and Other Lenders .......................................... 192  SECTION 9.08 No Other Duties, Etc. ............................................................................ 193  SECTION 9.09 Agent May File Proofs of Claim; Credit Bidding ................................. 193  SECTION 9.10 Lender ERISA Matters. ......................................................................... 195  SECTION 9.11 Collateral and Guaranty Matters ........................................................... 196  SECTION 9.12 Bank Product Documents, Hedging Obligations and Secured Supply  Chain Financings ................................................................................................ 197  SECTION 9.13 Recovery of Erroneous Payments ......................................................... 197  

 

       ARTICLE X  MISCELLANEOUS  SECTION 10.01 Amendments, Etc. ............................................................................... 198  SECTION 10.02 Notices, Etc. ........................................................................................ 199  SECTION 10.03 No Waiver; Remedies ......................................................................... 202  SECTION 10.04 Costs and Expenses. ............................................................................ 202  SECTION 10.05 Right of Set-off ................................................................................... 204  SECTION 10.06 Binding Effect ..................................................................................... 205  SECTION 10.07 Assignments and Participations .......................................................... 205  SECTION 10.08 Payments Set Aside ............................................................................. 210  SECTION 10.09 Severability of Provisions ................................................................... 211  SECTION 10.10 Independence of Provisions ................................................................ 211  SECTION 10.11 Confidentiality .................................................................................... 211  SECTION 10.12 Replacement of Lenders ...................................................................... 211  SECTION 10.13 Headings.............................................................................................. 212  SECTION 10.14 Entire Agreement ................................................................................ 212  SECTION 10.15 Execution in Counterparts ................................................................... 212  SECTION 10.16 Consent to Jurisdiction ........................................................................ 212  SECTION 10.17 GOVERNING LAW ........................................................................... 213  SECTION 10.18 USA PATRIOT Act ............................................................................ 213  SECTION 10.19 No Advisory or Fiduciary Responsibility ........................................... 213  SECTION 10.20 Judgment Currency ............................................................................. 214  SECTION 10.21 Electronic Execution of Assignments and Certain Other Documents 214  SECTION 10.22 Acknowledgement and Consent to Bail-In of Affected Financial  Institutions........................................................................................................... 215  SECTION 10.23 WAIVER OF JURY TRIAL ............................................................... 215  

 

       SECTION 10.24 Acknowledgement Regarding Any Supported QFCs ......................... 216  SECTION 10.25 Canadian Anti-Money Laundering Legislation .................................. 217    SCHEDULES AND EXHIBITS  SCHEDULES  Schedule 1.01A - Commitment Amounts  Schedule 1.01B - Change of Control  Schedule 1.01C - Existing Letters of Credit  Schedule 1.01D - Sustainability Schedule  Schedule 6.01(h) - Environmental Matters  Schedule 6.01(i) - ERISA Matters  Schedule 6.01(r)(i) - DDAs   Schedule 6.01(r)(ii) - Credit Card Arrangements  Schedule 7.01(p) - Post-Closing Matters  Schedule 7.02(a) - Existing Debt  Schedule 10.02 - Agent’s Office; Certain Addresses for Notices  EXHIBITS  Exhibit A-1  - Form of Committed Advance Notice  Exhibit A-2  - Form of Swing Line Advance Notice  Exhibit B  - Form of Note  Exhibit C  - Form of Assignment and Acceptance  Exhibit D  - Form of Assumption Agreement  Exhibit E  - Form of Administrative Questionnaire  Exhibit F  - Form of ABL Intercreditor Agreement  Exhibit G  - Form of Supplemental Guaranty  Exhibit H-1 - Form of United States Tax Compliance Certificate (For Foreign  Lenders That Are Not Partnerships For United States Federal  Income Tax Purposes)  Exhibit H-2 - Form of United States Tax Compliance Certificate (For Foreign  Participants That Are Not Partnerships For United States Federal  Income Tax Purposes)  Exhibit H-3 - Form of United States Tax Compliance Certificate (For Foreign  Participants That Are Partnerships For United States Federal  Income Tax Purposes)  Exhibit H-4 - Form of United States Tax Compliance Certificate (For Foreign  Lenders That Are Partnerships For United States Federal Income  Tax Purposes)  Exhibit I  - Form of Borrowing Base Certificate  Exhibit J  - Form of Sustainability Pricing Certificate    

 

    FOURTH AMENDED AND RESTATED REVOLVING CREDIT  AGREEMENT, dated as of July 13, 2022 (this “Agreement”), among The Gap, Inc., a Delaware  corporation (the “Parent Borrower”), and certain of Parent Borrower’s direct or indirect wholly- owned domestic subsidiaries from time to time party hereto, as borrowers (collectively referred to  herein as the “U.S. Borrowers” and each, individually, as a “U.S. Borrower”), Gap (Canada) Inc.,  a Canadian corporation, Old Navy (Canada) Inc., a Canadian corporation, and certain of Parent  Borrower’s other direct or indirect wholly-owned subsidiaries incorporated or organized under the  laws of Canada or a province or territory thereof from time to time party hereto, as borrowers  (collectively referred to herein as the “Canadian Borrowers” and each, individually, as a “Canadian  Borrower” and together with the U.S. Borrowers, collectively, referred to herein as “Borrowers”  and each, individually, as a “Borrower”), the other Loan Parties (with such term and each other  capitalized term used but not defined in this preamble having the meaning assigned thereto in  Article I) from time to time party hereto, the Lenders from time to time party hereto, the Issuing  Banks and Bank of America, N.A. (“Bank of America”), as administrative agent and collateral  agent (together with any permitted successor in such capacity, the “Agent”) for the Lenders and  the Issuing Banks hereunder.  RECITALS:  WHEREAS, the Parent Borrower, certain of its subsidiaries, certain banks and  financial institutions, and Bank of America, as administrative agent, are parties to a Third  Amended and Restated Revolving Credit Agreement dated as of May 7, 2020 (as amended,  restated, amended and restated, extended, supplemented, or otherwise modified prior to the date  hereof, the “Existing Credit Agreement”);  WHEREAS, Borrowers have requested that the Agent, the Lenders and Issuing  Banks replace the Existing Credit Agreement with this Agreement, in each case, on the terms  and subject to the conditions set forth in this Agreement;  WHEREAS, the U.S. Borrowers and the U.S. Guarantors have agreed to secure  all of the Obligations by granting to Agent, for the benefit of the Secured Parties, a security  interest in the Collateral;   WHEREAS, the Canadian Borrowers and the Canadian Guarantors have agreed  to secure all of the Obligations by granting to Agent, for the benefit of the Secured Parties, a  security interest in the Collateral;  WHEREAS, the Lenders and Issuing Banks are willing to make certain loans and  other extensions of credit to the Borrowers of up to such amounts upon the terms and conditions  set forth herein; and  WHEREAS, all annexes, schedules, exhibits and other attachments (collectively,  “Appendices”) to this Agreement are incorporated herein by reference, and taken together with  this Agreement, shall constitute but a single agreement.  These Recitals shall be construed as part  of this Agreement.  

 

   2      NOW, THEREFORE, in consideration of the premises and the mutual covenants  hereinafter contained, and for other good and valuable consideration, the parties hereto agree as  follows  ARTICLE I  DEFINITIONS AND ACCOUNTING TERMS  SECTION 1.01  Certain Defined Terms.  As used in this Agreement, the  following terms shall have the following meanings (such meanings to be equally applicable to  both the singular and plural forms of the terms defined):  “2029 Notes” means Parent Borrower’s 3.625% Senior Notes due 2029 issued on  September 27, 2021 in an initial aggregate principal amount of $750,000,000.  “2031 Notes” means Parent Borrower’s 3.875% Senior Notes due 2031 issued on  September 27, 2021 in an initial aggregate principal amount of $750,000,000.  “ABL Intercreditor Agreement” means an intercreditor agreement substantially in  the form of Exhibit F or any other intercreditor agreement on terms that are not less  favorable in any material respect to the Secured Parties than those contained in the form  attached as Exhibit F.  “ABL Priority Collateral” shall mean all present and future right, title and interest  of the Loan Parties in the following types of Collateral, whether now owned or hereafter  acquired, existing or arising and wherever located:  (1) all Accounts and Receivables (other than, at any time when a Lien  permitted by clause 6(B) of the definition of Permitted Liens is outstanding, the  Accounts and Receivables arising under agreements for sale of Non-ABL Priority  Collateral described in clauses (1) through (4) of the definition of such term to the  extent constituting identifiable proceeds of such Non-ABL Priority Collateral);  (2) all Payment Intangibles, including all intercompany loans,  corporate and other tax refunds and all Credit Card Receivables and all other  rights to payment arising therefrom in a credit-card, debit-card, prepaid-card or  other payment-card transaction (other than any Payment Intangibles constituting  identifiable proceeds of Non-ABL Priority Collateral described in clauses (1)  through (4) of the definition of such term);  (3) all Inventory;  (4) all Deposit Accounts, Securities Accounts and Commodity  Accounts (including the cash management accounts, the blocked accounts, the  lockbox accounts and the government lockbox accounts) and all cash, Cash  Equivalents and other assets contained in, or credit to, and all Securities  Entitlements arising from, any such Deposit Accounts, Securities Accounts or  Commodity Accounts (in each case, other than any identifiable proceeds of Non- 

 

   3      ABL Priority Collateral described in clauses (1) through (4) of the definition of  such term).  (5) all rights to business interruption insurance and all rights to credit  insurance with respect to any Accounts (in each case, regardless of whether the  Agent is the loss payee with respect thereto);  (6) solely to the extent evidencing, governing, securing or otherwise  relating to any of the items constituting ABL Priority Collateral under clauses (1)  through (5) above, (i) all General Intangibles and Intangibles (excluding in each  case any Intellectual Property and Capital Stock of Subsidiaries of the Parent  Borrower, but including contract rights and all rights as consignor or consignee,  whether arising by contract, statute or otherwise), (ii) Instruments (including  Promissory Notes), (iii) Documents (including each warehouse receipt or bill of  lading covering any Inventory), (iv) licenses from any Governmental Authority to  sell any Inventory and (v) Chattel Paper;  (7) all collateral and guarantees given by any other person with respect  to any of the foregoing, and all other Supporting Obligations (including letter-of- credit rights) with respect to any of the foregoing;  (8) all books and Records to the extent relating to any of the  foregoing; and  (9) all products and proceeds of the foregoing.   Notwithstanding the foregoing, the term “ABL Priority Collateral” shall not  include any assets referred to in clauses (1) through (4) of the definition of the term  “Non-ABL Priority Collateral” (as hereinafter defined).   All capitalized terms used in  this definition but not defined in this Agreement shall have the meanings set forth in the  UCC or the PPSA, as applicable, including that (a) Payment Intangibles shall include  “intangibles” as defined in the PPSA under which the account debtor’s principal  obligation is a monetary obligation, (b) General Intangibles shall include “intangibles” as  defined in the PPSA, and (c) Commodity Accounts shall include “futures accounts” as  defined in the PPSA.   “Acceptable Document of Title” means, with respect to any Inventory, a tangible,  negotiable bill of lading or other Document (as defined in the “UCC”) or “document of  title” (as defined in the “PPSA”), as applicable that (a) is issued by a common carrier  which is not the subject of any Sanction or on any specially designated nationals list  maintained by OFAC, (b) is issued to the order of a Loan Party or, within 60 days (or  such later date agreed by the Agent) of the Agent’s request following the occurrence of  an In-Transit Documentation Event,  the order of the Agent, and (c) names the Agent as a  notify party and bears a conspicuous notation on its face of the Agent’s security interest  therein.    “Account” has the meaning specified in the UCC or PPSA, as applicable, and also  means a right to payment of a monetary obligation, whether or not earned by  

 

   4      performance, (a) for property that has been or is to be sold, leased, licensed, assigned, or  otherwise disposed of, (b) for services rendered or to be rendered, or (c) arising out of the  use of a credit or charge card or information contained on or for use with the card.  “ACH” means automated clearing house transfers.   “Acquired Indebtedness” means, with respect to any specified Person: (1)  Indebtedness of any other Person existing at the time such other Person is merged,  consolidated or amalgamated with or into or became a Restricted Subsidiary of such  specified Person, and (2) Indebtedness secured by a Lien encumbering any asset acquired  by such specified Person.  Acquired Indebtedness will be deemed to have been Incurred,  with respect to clause (1) of the preceding sentence, on the date such Person becomes a  Restricted Subsidiary and, with respect to clause (2) of the preceding sentence, on the  date of consummation of such acquisition of such assets.  “Acquisition” means, with respect to any Person, (a) the acquisition by such  Person of the Capital Stock of any other Person resulting in such other Person becoming  a Subsidiary of such Person, (b) the acquisition by such Person of all or substantially all  of the assets of any other Person or of a division or business line of such Person, or (c)  any merger, amalgamation or consolidation of such Person or a Subsidiary of such Person  with any other Person so long as the surviving or continuing entity of such merger,  amalgamation or consolidation is such Person or a Subsidiary of such Person.  “Act” has the meaning specified in Section 10.18 hereof.  “Additional Refinancing Amount” means, in connection with the Incurrence of  any Refinancing Indebtedness, the aggregate principal amount of additional  Indebtedness, Disqualified Capital Stock or Preferred Stock Incurred to pay accrued and  unpaid interest, premiums (including tender premiums), expenses, defeasance costs and  fees in respect thereof.  “Additional Revolving Commitments” has the meaning specified in Section  2.06(b).  “Additional Security Documents” has the meaning specified in Section 7.01(q).    “Adjustment Date” means the last day of the Fiscal Quarter ending October 29,  2022 and the last day of each subsequent Fiscal Quarter.    “Administrative Questionnaire” means an Administrative Questionnaire in  substantially the form of Exhibit E or any other form approved by the Agent.  “Advance” means an extension of credit by a Lender to a Borrower under Article  II in the form of a Revolving Credit Advance or a Swing Line Advance.  “Affected Financial Institution” means (a) any EEA Financial Institution, or (b)  any UK Financial Institution.    

 

   5      “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.  “Affiliate Transaction” has the meaning specified in Section 7.02(e).  “Agent” has the meaning specified in the preamble to this Agreement.  “Agent Parties” has the meaning specified in Section 10.02(c).  “Agent’s Office” means, with respect to any currency, the Agent’s address and, as  appropriate, account as set forth on Schedule 10.02 with respect to such currency, or such  other address or account with respect to such currency as the Agent may from time to  time notify to Parent Borrower and the Lenders.  “Aggregate Commitments” means the sum of the Commitments of all the  Lenders. As of the Restatement Date, the Aggregate Commitments are $2,200,000,000.   “Agreed Currency” shall mean Dollars or any Alternative Currency, as  applicable.  “Agreement” has the meaning specified in the preamble hereto.   “Agreement Currency” has the meaning specified in Section 10.20 hereof.   “Allocable Amount” has the meaning specified in Section 3.07(b).  “Alternative Currency” means each of Euro, Sterling, Yen, Canadian Dollars and  any other currencies (other than Dollars) requested by the Borrowers and approved by  each of the Lenders and the Issuing Banks in accordance with Section 1.13.   “Alternative Currency Advance” shall mean an Alternative Currency Daily Rate  Advance or an Alternative Currency Term Rate Advance, as applicable.  “Alternative Currency Daily Rate” shall mean, for any date, with respect to any  Advance:   (a) denominated in Sterling, the rate per annum equal to SONIA  determined pursuant to the definition thereof plus the SONIA Adjustment;   (b) denominated in any other Alternative Currency (other than  Canadian Dollars) (to the extent such Advance denominated in such currency will bear  interest at a daily rate, the daily rate per annum as designated with respect to such  Alternative Currency at the time such Alternative Currency is approved by the Agent and  the relevant Lenders and Issuing Banks, plus the adjustment (if any) determined by the  Agent and the relevant Lenders and Issuing Banks in accordance with Section 1.13;  provided, that, if any Alternative Currency Daily Rate shall be less than zero, such rate  shall be deemed zero for purposes of this Agreement.  Any change in an Alternative  

 

   6      Currency Daily Rate shall be effective from and including the date of such change  without further notice.  For the avoidance of doubt, all Advances denominated in Sterling  will be Alternative Currency Daily Rate Advances.  “Alternative Currency Daily Rate Advance” shall mean an Advance that bears  interest at a rate based on the definition of “Alternative Currency Daily Rate”.  All  Alternative Currency Daily Rate Advances must be denominated in an Alternative  Currency.  “Alternative Currency Equivalent” means, at any time, with respect to any  amount denominated in Dollars, the equivalent amount thereof in the applicable  Alternative Currency as determined by the Agent or the applicable Issuing Bank, as the  case may be, at such time on the basis of the Spot Rate (determined in respect of the most  recent Revaluation Date) for the purchase of such Alternative Currency with Dollars.  “Alternative Currency Sublimit” means (x) with respect to Alternative Currencies  other than Canadian Dollars, an amount equal to the lesser of the Revolving Credit  Commitments and $250,000,000 and (y) with respect to Alternative Currencies including  Canadian Dollars, an amount equal to the lesser of the Revolving Credit Commitments  and $400,000,000.  The Alternative Currency Sublimit is part of, and not in addition to,  the Revolving Credit Commitments.   “Alternative Currency Term Rate” shall mean, for any Interest Period, with  respect to any Advance:   (a)  denominated in Euros, the rate per annum equal to the Euro  Interbank Offered Rate (“EURIBOR”), as published on the applicable Reuters screen  page (or such other commercially available source providing such quotations as may be  designated by the Agent from time to time) on the day that is two (2) TARGET Days  preceding the first day of such Interest Period with a term equivalent to such Interest  Period;   (b)  denominated in Yen, the rate per annum equal to the Tokyo  Interbank Offer Rate (“TIBOR”), as published on the applicable Reuters screen page (or  such other commercially available source providing such quotations as may be  designated by the Agent from time to time) on the day that is two (2) Business Days  preceding the first day of such Interest Period with a term equivalent to such Interest  Period; or   (c) denominated in any other Alternative Currency (to the extent such  Advance denominated in such currency will bear interest at a term rate, but not including,  for the avoidance of doubt, Credit Extensions denominated in Canadian Dollars), the term  rate per annum as designated with respect to such Alternative Currency at the time such  Alternative Currency is approved by the Agent and the relevant Lenders and Issuing  Banks, plus the adjustment (if any) determined by the Agent and the relevant Lenders and  Issuing Banks in accordance with Section 1.13;  

 

   7      provided, that, if any Alternative Currency Term Rate shall be less than zero, such rate  shall be deemed zero for purposes of this Agreement.  For the avoidance of doubt, all  Advances denominated in Euros or Yen will be Alternative Currency Term Rate  Advances.  “Alternative Currency Term Rate Advance” shall mean an Advance that bears  interest at a rate based on the definition of “Alternative Currency Term Rate”.  All  Alternative Currency Term Rate Advances must be denominated in an Alternative  Currency.    “AML Legislation” has the meaning specified in Section 10.25.   “Appendices” has the meaning specified in the Recitals to this Agreement.  “Applicable Authority” shall mean (a) with respect to Term SOFR, CME or any  Governmental Authority having jurisdiction over the Agent or CME and (b) with respect  to any Alternative Currency, the applicable administrator for the Relevant Rate for such  Alternative Currency or any Governmental Authority having jurisdiction over the Agent  or such administrator with respect to its publication of the applicable Relevant Rate in  each case acting in such capacity.  “Applicable Margin” means:   (a) From and after the Restatement Date until the first Adjustment Date, the  percentages set forth in Level I of the pricing grid below; and  (b)    From and after the first Adjustment Date and on each Adjustment Date  thereafter, the Applicable Margin shall be determined from the following pricing grid  based upon the Average Daily Excess Availability as of the Fiscal Quarter ended  immediately preceding such Adjustment Date; provided, however, that notwithstanding  anything to the contrary set forth herein, upon the occurrence and during the continuance  of an Event of Default, the Agent may, and at the direction of the Majority Lenders shall,  upon written notice to the Parent Borrower, increase the Applicable Margin to that set  forth in Level II (even if the Average Daily Excess Availability requirements for a  different Level have been met) and interest shall accrue at the Default Rate; provided  further if any Borrowing Base Certificates are at any time restated or otherwise revised  (including as a result of an audit) or if the information set forth in any Borrowing Base  Certificates otherwise proves to be false or incorrect such that the Applicable Margin  would have been higher than was otherwise in effect during any period, without  constituting a waiver of any Default or Event of Default arising as a result thereof,  interest due under this Agreement shall be immediately recalculated at such higher rate  for any applicable periods and shall be due and payable on demand.   Level Average Daily  Excess Availability  Applicable Margin  for Term SOFR  Advances, BA  Rate Advances,  Applicable Margin  for Index Rate  Loans  

 

   8      Alternative  Currency Term  Rate Advances,  Alternative  Currency Daily  Rate Advances  and Letter of  Credit Fees  I Greater than 50% of  the Aggregate  Commitments  1.25% 0.25%  II Less than or equal to  50% of the  Aggregate  Commitments   1.50% 0.50%    It is hereby understood and agreed that the Applicable Margin with respect to  Letter of Credit Fees and Advances set forth above shall be subject to adjustment (or to  no adjustment, as applicable) from time to time based upon the Sustainability Margin  Adjustment (to be calculated and applied as set forth in the Sustainability Schedule);  provided that in no event shall the Applicable Margin with respect to Letter of Credit  Fees or any Advances be less than 0%.  “Applicable Specified Secured Indebtedness” has the meaning assigned to that  term in Section 7.01(q).   “Applicable Time” means, with respect to any borrowings and payments in any  Alternative Currency, the local time in the place of settlement for such Alternative  Currency as may be determined by the Agent or the applicable Issuing Bank, as the case  may be, to be necessary for timely settlement on the relevant date in accordance with  normal banking procedures in the place of payment.  “Appraised Value” means the appraised orderly liquidation value, net of costs and  expenses to be incurred in connection with any such liquidation, which value is expressed  as a percentage of Cost of Eligible Inventory as set forth in the inventory stock ledger of  the Borrowers, which value shall be determined from time to time by the most recent  appraisal undertaken by an independent appraiser engaged by the Agent.  “Appropriate Lender” means, at any time, (a) with respect to the Revolving Credit  Facility, a Lender that has a Commitment with respect to such Facility or holds a  Revolving Credit Advance at such time, (b) with respect to the Letter of Credit Sublimit,  (i) the Issuing Banks and (ii) if any Letters of Credit have been issued pursuant to Section  2.04(a), the Lenders and (c) with respect to the Swing Line Sublimit, (i) the Swing Line  

 

   9      Lender and (ii) if any Swing Line Advances are outstanding pursuant to Section 2.03(a),  the Lenders.  “Approved Bank” has the meaning specified in the definition of “Cash  Equivalents”.   “Approved Fund” means any Fund that is administered or managed by (a) a  Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that  administers or manages a Lender.  “Assignment and Acceptance” means an assignment and acceptance entered into  by a Lender and an Eligible Assignee, and accepted by the Agent (if such acceptance is  required by this Agreement), in substantially the form of Exhibit C.  “Assumption Agreement” means an agreement, substantially in the form of  Exhibit D, by which an Eligible Assignee agrees to become a Lender hereunder pursuant  to Section 2.06(b), agreeing to be bound by all obligations of a Lender hereunder.  “Auto-Extension Letter of Credit” has the meaning specified in Section  2.04(b)(iii).  “Availability” means, as of any date of determination thereof by the Agent, the  result, if a positive number, of:  (a)    the Loan Cap, minus   (b)    the Total Revolving Credit Outstandings.  “Availability Period” means the period from and including the Restatement Date  to the Termination Date.  “Availability Reserves” means, without duplication of any other Reserves or  items to the extent such items are otherwise addressed or excluded through eligibility  criteria or have been deducted in the calculation of Eligible Inventory and Eligible Credit  Card Receivables, as applicable, as reported on the most recent Borrowing Base  Certificate, such reserves as the Agent from time to time determines in its Permitted  Discretion as being appropriate: (a) to reflect the impediments to the Agent’s ability to  realize upon the ABL Priority Collateral, (b) to reflect claims and liabilities that the  Agent determines will need to be satisfied in connection with the realization upon the  ABL Priority Collateral, (c) to reflect criteria, events, conditions, contingencies or risks  which adversely affect in any material respects any component of the Borrowing Base, or  (d) to reflect that an Event of Default then exists.  Without limiting the generality of the  foregoing, Availability Reserves may include, in the Agent’s Permitted Discretion, (but  are not limited to) reserves based on: (i) rent; (ii) customs duties, and other costs to  release Inventory included in the Borrowing Base which is being imported into the  United States or Canada; (iii) outstanding Taxes and other governmental charges,  including, without limitation, ad valorem, real estate, personal property, sales, claims of  the PBGC and other Taxes not otherwise in dispute which may have priority over the  

 

   10      interests of the Agent in the ABL Priority Collateral; (iv) salaries, wages and benefits due  to employees of any Loan Party; (v) Customer Credit Liabilities; (vi) Customer Deposits;  (vii) reserves for reasonably anticipated changes in the Appraised Value of Eligible  Inventory between appraisals; (viii) warehousemen’s or bailee’s charges and other  Permitted Liens which may have priority over the interests of the Agent in the ABL  Priority Collateral; (ix) amounts due to vendors on account of consigned goods; (x)  royalties payable in respect of licensed merchandise; (xi) the Canadian Priority Payables  Reserve; and (xii) the Canadian Wage Earner Protection Act Reserve.  “Average Daily Excess Availability” means the average daily Availability for the  immediately preceding Fiscal Quarter.  “Bail-In Action” means the exercise of any Write-Down and Conversion Powers  by the applicable Resolution Authority in respect of any liability of an Affected Financial  Institution.  “Bail-In Legislation” means, (a) with respect to any EEA Member Country  implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the  Council of the European Union, the implementing law, rule, regulation or requirement for  such EEA Member Country from time to time which is described in the EU Bail-In  Legislation Schedule, and (b) with respect to the United Kingdom, Part I of the United  Kingdom Banking Act 2009 (as amended from time to time) and any other law,  regulation or rule applicable in the United Kingdom relating to the resolution of unsound  or failing banks, investment firms or other financial institutions or their affiliates (other  than through liquidation, administration or other insolvency proceedings).   “Bank of America” means Bank of America, N.A., including its Affiliates and  branches.  “Bank Product Document” means any agreement or instrument providing for  Bank Products.  “Bank Products” means any one or more of the following types of services or  facilities extended to Parent Borrower or any of its Subsidiaries by a Cash Management  Bank:  (a) any treasury or other cash management services, including (i) deposit account,  (ii) automated clearing house (ACH) origination and other funds transfer, (iii) depository  (including cash vault and check deposit), (iv) zero balance accounts and sweep, and other  ACH Transactions, (v) return items processing, (vi) controlled disbursement, (vii)  positive pay, (viii) lockbox, (ix) account reconciliation and information reporting, (x)  payables outsourcing, (xi) payroll processing, and (xii) daylight overdraft facilities and  (b) card services, including (i) credit card (including purchasing card and commercial  card), (ii) prepaid card, including payroll, stored value and gift cards, (iii) merchant  services processing, and (iv) debit card services.  “Bank Products Obligations” means any debts, liabilities and obligations as  existing from time to time of Parent Borrower or any of its Subsidiaries arising from or in  connection with any Bank Products under any Bank Product Document.  

 

   11      “BA Rate” means with respect to each Interest Period for a BA Rate Advance, the  rate of interest per annum equal to the average rate applicable to Canadian Dollar  bankers’ acceptances having an identical or comparable term as the proposed BA Rate  Advance displayed and identified as such on the display referred to as the “CDOR Page”  (or any display substituted therefor) of Refinitv Benchmark Services Limited as of  approximately 10:00 a.m. Toronto time on such day (or, if such day is not a Business  Day, as of 10:00 a.m. Toronto time on the immediately preceding Business Day);  provided that if such rate does not appear on the CDOR Page at such time on such date,  the rate for such date will be the annual discount rate (rounded upward to the nearest  whole multiple of 1/100 of 1.0%) as of 10:00 a.m. Toronto time on such day at which a  Canadian chartered bank listed on Schedule 1 of the Bank Act (Canada) as selected by the  Agent in consultation with Parent Borrower is then offering to purchase Canadian Dollar  bankers’ acceptances accepted by it having such specified term (or a term as closely as  possible comparable to such specified term); provided that if the BA Rate shall be less  than zero, such rate shall be deemed zero for purposes of this Agreement.   “BA Rate Advance” means an Advance which bears interest based on the BA  Rate.  All BA Rate Advances shall be denominated in Canadian Dollars.  “Base Rate”  means for any day a fluctuating rate per annum equal to the highest  of (a) the Federal Funds Rate for such day 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”, (c) Term SOFR for an Interest Period of one month commencing on such day plus  1.00% and (d) 1.00%.  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.  If the Base Rate is being used  as an alternate rate of interest pursuant to Section 2.09(c) hereof, then the Base Rate shall  be the greatest of (a), (b) and (d) above and shall be determined without reference to  clause (c) above.    “Base Rate Advance” means an Advance which bears interest based on the Base  Rate.  All Base Rate Advances shall be denominated in Dollars.  “Beneficial Ownership Certification” means a certification regarding beneficial  ownership required by the Beneficial Ownership Regulation.  “Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.   “BIA” means the Bankruptcy and Insolvency Act (Canada).   “Blocked Account Agreement” means with respect to a DDA established by a  Loan Party, an agreement, in form and substance reasonably satisfactory to the Agent,  establishing control (as defined in the UCC or the PPSA if applicable) of such account by  the Agent and whereby the bank maintaining such account agrees, upon the occurrence  

 

   12      and during the continuance of a Cash Dominion Period, to comply only with the  instructions originated by the Agent without the further consent of any Loan Party.  “Blocked Account Bank” means each bank with whom deposit accounts are  maintained in which any funds of any of the Loan Parties from one or more DDAs are  concentrated and with whom a Blocked Account Agreement has been, or is required to  be, executed in accordance with the terms hereof.  “Blocked Accounts” has the meaning provided in Section 7.01(i)(ii).  “Borrower” and “Borrowers” has the meaning set forth in the preamble to this  Agreement.  “Borrower Materials” has the meaning specified in Section 1.04.  “Borrowing” means a Revolving Credit Borrowing or a Swing Line Borrowing,  as the context may require.  “Borrowing Base” means, at any time of calculation, an amount equal to:  (a) the face amount of Eligible Credit Card Receivables multiplied by 90%;  plus  (b) the Cost of Eligible Inventory (other than Eligible In-Transit Inventory),  multiplied by the product of 90% (which shall increase to 92.5% for the four consecutive  Fiscal Months of February, March, April and May of each Fiscal Year) multiplied by the  Appraised Value of such Eligible Inventory; plus  (c) the Cost of Eligible In-Transit Inventory, multiplied by the product of 90%  (which shall increase to 92.5% for the four consecutive Fiscal Months of February,  March, April and May of each Fiscal Year) multiplied by the Appraised Value of such  Eligible In-Transit Inventory; provided that the aggregate amount of Eligible In-Transit  Inventory included in the Borrowing Base pursuant to this clause (c) shall not exceed  20% of the gross amount of Eligible Inventory and Eligible In-Transit Inventory  otherwise permitted to be included in the Borrowing Base; minus    (d) the then applicable amount of all Reserves.  The Borrowing Base at any time shall be determined by reference to the most  recent Borrowing Base Certificate.  “Borrowing Base Certificate” means a certificate substantially in the form of  Exhibit I hereto (with such changes therein as may be required by the Agent to reflect the  components of and Reserves against the Borrowing Base as provided for hereunder from  time to time), executed and certified as accurate and complete by a Responsible Officer  of the Parent Borrower which shall include appropriate exhibits, schedules, supporting  documentation, and additional reports as reasonably requested by the Agent.  

 

   13      “Branded Card Subsidiary” means any Subsidiary which holds no material assets  other than assets and rights subject to a Branded Credit Card Arrangement.  “Branded Credit Card Arrangement” means any securitization, factoring,  accelerated monetization or other similar arrangement related solely to any amounts  which are or may become owing to a Branded Card Subsidiary pursuant to or in  connection with branded credit card(s), including payments from Barclays, any  replacement thereof, or any other processor or partner in any branded credit card  arrangement.  “Branded Credit Card Assets” means any of the following assets (or interests  therein) from time to time originated, acquired or otherwise owned by a Branded Card  Subsidiary or in which a Branded Card Subsidiary has any rights or interests which are  the subject of a Branded Credit Card Arrangement, in each case, without regard to where  such assets or interests are located: (1) receivables, payment obligations, installment  contracts, and similar rights, whether currently existing or arising or estimated to arise in  the future, and whether in the form of accounts, chattel paper, general intangibles,  instruments or otherwise (including any drafts, bills of exchange or similar notes and  instruments), (2) royalty and other similar payments made related to the use of trade  names and other intellectual property, business support, training and other services,  including, without limitation, licensing fees, lease payments and similar revenue streams  and (3) intellectual property rights relating solely to the generation of any of the  foregoing types of assets.  “Business Day”   means any day other than a Saturday, Sunday or other day on  which commercial banks are authorized to close under the Laws of, or are in fact closed  in the jurisdiction where the Agent’s Office with respect to Obligations denominated in  Dollars or Canadian Dollars is located; provided that:  (a) if such day relates to any interest rate settings as to an Alternative  Currency Advance denominated in Euro, any fundings, disbursements,  settlements and payments in Euro in respect of any such Alternative Currency  Advance, or any other dealings in Euro to be carried out pursuant to this  Agreement in respect of any such Alternative Currency Advance, means a  Business Day that is also a TARGET Day;  (b) if such day relates to any interest rate settings as to an Alternative  Currency Advance denominated in (i) Sterling, means a day other than a day  banks are closed for general business in London because such day is a Saturday,  Sunday or a legal holiday under the laws of the United Kingdom; and (ii) Yen,  means a day other than when banks are closed for general business in Japan;   (c) if such day relates to any interest rate settings as to an Alternative  Currency Advance denominated in a currency other than, Euro, Sterling or Yen,  means any such day on which dealings in deposits in the relevant currency are  conducted by and between banks in the applicable offshore interbank market for  such currency; and  

 

   14      (d)  if such day relates to any fundings, disbursements, settlements and  payments in a currency other than Euro in respect of an Alternative Currency  Advance denominated in a currency other than Euro, or any other dealings in any  currency other than Euro to be carried out pursuant to this Agreement in respect  of any such Alternative Currency Advance (other than any interest rate settings),  means any such day on which banks are open for foreign exchange business in the  principal financial center of the country of such currency.  “Canadian Base Rate” means, for any day, the per annum rate of interest equal to  the highest of (a) the Federal Funds Rate for such day, plus 0.50%, (b) the rate of interest  in effect for such day as publicly announced from time to time by Bank of America  (acting through its Canada branch) in Toronto, Ontario as its “base rate” for commercial  loans made by it in Dollars, such rate being a reference rate and not necessarily  representing the lowest or best rate being charged to any customer, (c) Term SOFR  (determined for a Credit Extension denominated in Dollars) for an Interest Period  commencing on such day of one month, plus 1.00% and (d) 1.00%.  Any change in such  rate announced by Bank of America (acting through its Canada branch) shall take effect  at the opening of business on the day specified in the public announcement thereof.  “Canadian Base Rate Advance” means an Advance to a Canadian Borrower  which bears interest based on the Canadian Base Rate.  All Canadian Base Rate  Advances shall be denominated in Dollars.   “Canadian Blocked Accounts” has the meaning specified in Section 7.01(i).  “Canadian Borrower” and “Canadian Borrowers” has the meaning specified in the  preamble to this Agreement.  “Canadian Collateral” means the Collateral owned by (or, in the event such  Collateral has been foreclosed upon, immediately prior to such foreclosure that was  owned by) a Canadian Loan Party.  “Canadian Defined Benefit Plan” means a Canadian Pension Plan which contains  a “defined benefit provision” as defined in subsection 147.1(1) of the Income Tax Act  (Canada).  “Canadian Dollars,” and the sign “CND$” each means lawful money of Canada.  “Canadian Dominion Account” means a special concentration account established  by a Canadian Borrower at an Affiliate or branch of the Agent in Canada, over which the  Agent has exclusive control for withdrawal purposes pursuant to the terms and provisions  of this Agreement and the other Loan Documents.  “Canadian Guarantor” means each Guarantor that is incorporated or otherwise  organized under the laws of Canada or any province or territory thereof.  

 

   15      “Canadian Guaranty” means the guarantee of the Obligations of each Loan Party  hereunder by the Canadian Loan Parties in Article 3 hereunder or in a supplemental  guarantee in accordance with Section 7.01(n) of this Agreement.  “Canadian Loan Party” means each Canadian Borrower and each Canadian  Guarantor.  “Canadian Pension Event” means (a) the whole or partial withdrawal of a Loan  Party from a Canadian Defined Benefit Plan during a plan year where any additional  funding obligations of the Loan Party would be triggered by such withdrawal; (b) the  filing of a notice of intent to terminate in whole or in part a Canadian Defined Benefit  Plan; (c) the treatment by a Governmental Authority of a Canadian Defined Benefit Plan  amendment as a termination or partial termination; or (d) the appointment of a trustee by  a Governmental Authority to administer the termination, in whole or in part, of a  Canadian Defined Benefit Plan.  “Canadian Pension Plan” means a pension plan that is required to be registered  under applicable Canadian federal or provincial pension benefits standards legislation,  and that is sponsored or maintained by any Loan Party in respect of its Canadian  employees or former employees, but, for the avoidance of doubt, does not include any  statutory plans such as the Canada Pension Plan and the Quebec Pension Plan.  “Canadian Prime Rate” means, for any day, the per annum rate of interest equal to  the highest of (a) the rate of interest in effect for such day or so designated from time to  time by Bank of America (acting through its Canada branch) as its “prime rate” for  commercial loans made by it in Canada in Canadian Dollars, such rate being a reference  rate and not necessarily representing the lowest or best rate being charged to any  customer, (b) the BA Rate for a 30-day interest period as determined on such day plus  1.00% and (c) 1.00%.  Any change in such rate announced by Bank of America (acting  through its Canada branch) shall take effect at the opening of business on the day  specified in the public announcement thereof.  “Canadian Prime Rate Advance” means an Advance to a Canadian Borrower  which bears interest based on the Canadian Prime Rate.  All Canadian Prime Rate  Advances shall be denominated in Canadian Dollars.   “Canadian Priority Payables Reserve” means, as of any date of determination, an  Availability Reserve in such amount as the Agent may determine in its Permitted  Discretion to reflect amounts secured by any Liens in Canada, choate or inchoate, which  rank or are capable of ranking in priority to the Liens of the Agent, including any such  amounts due and not paid for wages, vacation pay, severance pay, amounts due and not  paid under any legislation relating to workers’ compensation or to employment insurance,  all amounts deducted or withheld and not paid and remitted when due under the Income  Tax Act (Canada), all amounts collected but not remitted when due under the Excise Tax  Act (Canada) or otherwise on account of sales tax, goods and services tax, value added  tax, harmonized sales tax, excise tax, and any other tax payable pursuant to the Excise  Tax Act (Canada) or similar applicable provincial legislation, government royalties,  

 

   16      amounts currently or past due and not paid for realty, municipal or similar taxes (to the  extent impacting personal or movable property), all amounts due and not contributed,  remitted or paid to any Canadian Pension Plans (including all unfunded wind up or  solvency deficiency amounts), as required by the PBA relating to Canadian Pension  Plans, or under the Canada Pension Plan or Quebec Pension Plan, and all amounts in  respect of similar statutory or other claims, in each case, that would have or would  reasonably be expected to have priority over or rank pari passu with any Liens of the  Agent in Canada now or in the future, other than amounts included in the Canadian Wage  Earner Protection Act Reserve.   “Canadian Security Agreements” means that certain Amended and Restated  Canadian Security Agreement, dated as of the Restatement Date, and that certain Deed of  Hypothec dated May 5, 2020, each made by the Canadian Loan Parties party thereto in  favor of the Agent, on behalf of the Agent and the Secured Parties, each as amended,  restated, supplemented or otherwise modified from time to time.  “Canadian Sublimit” means an amount equal to $200,000,000.  The Canadian  Sublimit is part of, and not in addition to, the Revolving Credit Commitments.  “Canadian Wage Earner Protection Act Reserve” means, as of any date of  determination, an Availability Reserve in such amount as the Agent may determine in its  Permitted Discretion to reflect the amounts that may become due under the Wage Earner  Protection Program Act (Canada) or secured by Section 81.3 or Section 81.4 of the BIA  with respect to the employees of any Loan Party employed in Canada which would give  rise to a Lien with priority under applicable Law over the Liens of the Agent.  “Capital Expenditures” means, for any period, the additions to property, plant and  equipment, capitalized investment and development costs, and other capital expenditures  (including capitalized software) of Parent Borrower and its consolidated Subsidiaries that  are (or should be) set forth in a consolidated statement of cash flows of Parent Borrower  for such period prepared in accordance with GAAP.  “Capital Lease” of any Person means any lease of any property (whether real,  personal or mixed) by such Person as lessee, which lease should, in accordance with  GAAP, be required to be accounted for as a capital lease on the balance sheet of such  Person.  “Capital Lease Obligations” means the obligations of any Person to pay rent or  other amounts under a Capital Lease, the amount of which is required to be capitalized on  the balance sheet of such Person in accordance with GAAP (with GAAP calculated, for  purposes of this definition, as in effect on December 31, 2018); provided that, for the  avoidance of doubt, obligations of Parent Borrower or the Restricted Subsidiaries, or of a  special purpose or other entity not consolidated with Parent Borrower and the Restricted  Subsidiaries that (a) initially were not included on the consolidated balance sheet of  Parent Borrower as capital lease obligations and were subsequently characterized as  capital lease obligations or, in the case of such a special purpose or other entity becoming  consolidated with Parent Borrower and the Restricted Subsidiaries were required to be  

 

   17      characterized as capital lease obligations upon such consolidation, in either case, due to a  change in accounting treatment or otherwise, or (b) were required to be characterized as  capital lease obligations but would not have been required to be treated as capital lease  obligations on December 31, 2018 had they existed at that time, shall for all purposes not  be treated as Capital Lease Obligations or Indebtedness.   “Capital Stock” means:  (1) in the case of a corporation, corporate stock or shares;  (2) in the case of an association or business entity, any and all shares,  interests, participations, rights or other equivalents (however designated) of  corporate stock;  (3) in the case of a partnership or limited liability company,  partnership or membership interests (whether general or limited); and  (4) any other interest or participation that confers on a Person the right  to receive a share of the profits and losses of, or distributions of assets of, the  issuing Person.  “Cash Collateralize” means to pledge and deposit with or deliver to the Agent, for  the benefit of the Agent, an Issuing Bank or the Swing Line Lender (as applicable) and  the Lenders, as collateral for L/C Obligations, Obligations in respect of Swing Line  Advances, or obligations of Lenders to fund participations in respect of either thereof (as  the context may require), cash or deposit account balances or, if the applicable Issuing  Bank or Swing Line Lender benefiting from such collateral shall agree in its sole  discretion, other credit support, in each case pursuant to documentation in form and  substance satisfactory to (a) the Agent and (b) such Issuing Bank or the Swing Line  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 Dominion Period” means (a) each period beginning on the date that  Availability shall have been less than the greater of (x) $190.0 million and (y) 10.0% of the  Loan Cap, and ending on the date that Availability shall have exceeded such levels, at all  times, for a period of thirty (30) consecutive days, or (b) upon the occurrence of any Event  of Default, the period that such Event of Default shall be continuing. The termination of a  Cash Dominion Period as provided herein shall in no way limit, waive or delay the  occurrence of a subsequent Cash Dominion Period in the event that the conditions set forth  in this definition again arise.  “Cash Equivalents” means, as at any date, (a) securities issued or directly and fully  guaranteed or insured by the United States or Canada or any agency or instrumentality  thereof (provided that the full faith and credit of the United States or Canada, as applicable,  is pledged in support thereof) having maturities of not more than twelve months from the  date of acquisition, (b) securities with maturities of one year or less from the date of  acquisition issued or fully guaranteed by any state, province, commonwealth or territory of  the United States or Canada, or by any subdivision or taxing authority of any such state,  

 

   18      province, commonwealth or territory, the securities of which state, province,  commonwealth, territory, political subdivision or taxing authority (as the case may be) are  rated either (i) A or better by S&P or A2 or better by Moody’s or (ii) SP1 or better by S&P  or V-MIG 1 or better by Moody’s, (c) Dollar or Canadian Dollar denominated time deposits  and certificates of deposit of (i) any Lender, (ii) any domestic commercial bank of  recognized standing having capital and surplus in excess of $500,000,000 or (iii) any bank  whose short-term commercial paper rating from S&P is at least A-1 or the equivalent  thereof or from Moody’s is at least P-1 or the equivalent thereof (any such bank being an  “Approved Bank”), in each case with maturities of not more than 270 days from the date of  acquisition, (d) commercial paper and variable or fixed rate notes issued by any Approved  Bank (or by the parent company thereof) or any variable rate notes issued by, or guaranteed  by, any United States or Canadian domestic corporation rated A-1 (or the equivalent  thereof) or better by S&P or P-1 (or the equivalent thereof) or better by Moody’s and  maturing within six months of the date of acquisition, (e) repurchase agreements entered  into by any Person with a bank or trust company (including any of the Lenders) or  recognized securities dealer having capital and surplus in excess of $500,000,000 for direct  obligations issued by or fully guaranteed by the United States or Canada in which such  Person shall have a perfected first priority Lien (subject to no other Liens) and having, on  the date of purchase thereof, a fair market value of at least 100% of the amount of the  repurchase obligations and (f) Investments, classified in accordance with GAAP as current  assets, in money market investment programs registered under the Investment Company Act  of 1940 which are administered by reputable financial institutions having capital of at least  $500,000,000 and the portfolios of which are limited to Investments of the character  described in the foregoing subdivisions (a) through (e).  “Cash Management Bank” means any Person counterparty to a Bank Product  Document who is (x) Bank of America or any Affiliate or branch of Bank America or (y)  any other Lender or any Affiliate or branch of such Lender so long as, in the case of this  clause (y), Parent Borrower and the applicable Lender (or its Affiliate or branch) shall  have delivered notice thereof to the Agent.   “CCAA” means the Companies’ Creditors Arrangement Act (Canada).  “CERCLA” means the Comprehensive Environmental Response, Compensation,  and Liability Act of 1980, as amended (42 U.S.C. § 9601 et seq.), and any regulations  promulgated thereunder.  “CFC” means a “controlled foreign corporation” within the meaning of  Section 957(a) of the Code.  “Change in Law” has the meaning specified in Section 2.11.  “Change of Control” means the occurrence, after the date of this Agreement, of (i)  any Person or two or more Persons acting in concert acquiring beneficial ownership  (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the  Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the  Parent Borrower (or other securities convertible into such securities) representing 50% or  

 

   19      more of the combined voting power of all securities of the Parent Borrower entitled to  vote in the election of directors; (ii) during any period of up to 24 consecutive months,  commencing before or after the date of this Agreement, individuals who at the beginning  of such 24-month period were directors of the Parent Borrower ceasing for any reason to  constitute a majority of the Board of Directors of the Parent Borrower unless the Persons  replacing such individuals were nominated or approved by the Board of Directors of the  Parent Borrower; provided, that, the Person or group of Persons referred to in clause (i)  of this definition of Change of Control shall not include any Person listed on Schedule  1.01B or any group of Persons in which one or more of the Persons listed on Schedule  1.01B are members; or (iii) a “Change of Control” (as defined in the Senior Notes  Indenture) shall have occurred under the Senior Notes Indenture.    “Charges” means all federal, state, provincial, county, city, municipal, local,  foreign or other governmental taxes (including taxes owed to the PBGC at the time due  and payable), levies, assessments, duties, charges, claims or encumbrances owed by any  Loan Party and upon or relating to (a)  the Obligations, (b) the Collateral, (c) the  employees, payroll, income, capital or gross receipts of any Loan Party, (d) any Loan  Party’s ownership or use of any properties or other assets, or (e) any other aspect of any  Loan Party’s business.  “CME” means CME Group Benchmark Administration Limited.  “Code” means the Internal Revenue Code of 1986, as amended from time to time.  “Collateral” means all assets and interests in assets and proceeds thereof now  owned or hereafter acquired by any Loan Party in or upon which a Lien is granted by  such Person in favor of the Agent under any of the Collateral Documents or is required to  be granted in accordance with the requirements set forth in Section 7.01(l) and Section  7.01(q).   “Collateral Access Agreement” means an agreement reasonably satisfactory in  form and substance to the Agent executed by (a) a bailee or other Person in possession of  Collateral, and (b) any landlord of Real Estate leased by any Loan Party, pursuant to  which such Person (i) acknowledges the Agent’s Lien on the Collateral, (ii) releases or  subordinates such Person’s Liens on the Collateral held by such Person or located on  such Real Estate, (iii) provides the Agent with access to the Collateral held by such bailee  or other Person or located in or on such Real Estate, (iv) as to any landlord, provides the  Agent with a reasonable time to remove and/or sell and dispose of the Collateral from  such Real Estate, and (v) makes such other agreements with the Agent as the Agent may  reasonably require related to the use and access of the Collateral.  “Collateral Documents” means the U.S. Security Agreement, the Canadian  Security Agreements and all similar agreements entered into guarantying payment of, or  granting a Lien upon property as security for payment of, the Obligations.  “Collateral Requirement” shall have the meaning assigned that term in clause  (6)(B) of the definition of “Permitted Liens”.  

 

   20      “Commitment” means a Revolving Credit Commitment.  “Commitment Increase” has the meaning specified in Section 2.06(b).  “Commitment Increase Effective Date” has the meaning specified in Section  2.06(b).  “Commitment Increase Notice” has the meaning specified in Section 2.06(b)  “Commitment Percentage” means, with respect to any Lender at any time, the  percentage of the Revolving Credit Facility represented by such Lender’s Revolving  Credit Commitment at such time.  If the Revolving Credit Commitment of each Lender to  make Advances and the obligation of the Issuing Banks to make L/C Credit Extensions  have been terminated pursuant to Section 8.01 or if the Revolving Credit Commitments  have expired, then the Commitment Percentage of each Lender in respect of the  Revolving Credit Facility shall be determined based on the Commitment Percentage of  such Lender in respect of the Revolving Credit Facility most recently in effect, giving  effect to any subsequent assignments.  “Committed Advance Notice” means a notice of (a) a Revolving Credit  Borrowing, (b) a conversion of Advances from one Type to the other, or (c) a  continuation of any Contract Rate Loan, pursuant to Section 2.02(a), which, if in writing,  shall be substantially in the form of Exhibit A-1 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), appropriately completed and signed by a  Responsible Officer of the applicable Borrower.  “Committed Borrowing” means a borrowing consisting of simultaneous  Revolving Credit Advances of the same Type, in the same currency and, in the case of  any Contract Rate Loan, having the same Interest Period made by each of the Lenders  pursuant to Section 2.01.  “Compliance Period” has the meaning specified in Section 7.03(b).   “Confidential Information” means certain non-public, confidential or proprietary  information and material disclosed, from time to time, either orally, in writing,  electronically or in some other form by the Parent Borrower in connection with the Loan  Documents.  Confidential Information shall include, but not be limited to non-public,  confidential or proprietary information, trade secrets, know-how, inventions, techniques,  processes, algorithms, software programs, documentation, screens, icons, schematics,  software programs, source documents and other MIS related information; contracts,  customer lists, financial information, financial forecasts, sales and marketing plans and  information and business plans, products and product designs; textile projections and  results; ideas, designs and artwork for all types of marketing, advertising, public relations  and commerce (including ideas, designs and artwork related to the World Wide Web and  any Web Site of the Parent Borrower or any Subsidiary); textile designs; advertising,  strategies, plans and results; sourcing information; vendor lists, potential product labeling  and marking ideas; all materials including, without limitation, documents, drawings,  

 

   21      samples, sketches, designs, and any other information concerning, color palette and color  standards furnished to a Recipient by the Parent Borrower or any Subsidiary; customer  base(s); and other non-public information relating to the Parent Borrower’s or any  Subsidiary’s business.  “Conforming Changes” means, with respect to the use, administration of or any  conventions associated with SOFR, SONIA or any proposed Successor Rate for an  Agreed Currency or Term SOFR, as applicable, any conforming changes to the  definitions of “Base Rate”, “Alternative Currency Daily Rate”, “Alternative Currency  Term Rate”, “BA Rate”, “Canadian Base Rate”, “Canadian Prime Rate”, “Daily Simple  SOFR”, “SOFR”, “Term SOFR”, “SONIA”, “TIBOR” and “Interest Period” (and, in  each case, the definitions in any component thereof), 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 definitions of “Business  Day” and “U.S. Government Securities 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 applicable rate(s) and to permit the administration thereof by the Agent in a  manner substantially consistent with market practice for such Agreed Currency (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 administration of such rate for  such Agreed Currency 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).   “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” and any derivative thereof each means, with reference to the  accounts or financial reports of any Person, the consolidated accounts or financial reports  of such Person and each Subsidiary of such Person determined in accordance with  GAAP, including principles of consolidation, consistent with those applied in the  preparation of the Consolidated financial statements of the Parent Borrower referred to in  Section 6.01(f).  “Consolidated Depreciation and Amortization Expense” means, with respect to  any Person for any period, the total amount of depreciation and amortization expense,  including the amortization of intangible assets and deferred financing fees and  amortization of unrecognized prior service costs and actuarial gains and losses related to  pensions and other post-employment benefits, of such Person and its Restricted  Subsidiaries for such period on a consolidated basis and otherwise determined in  accordance with GAAP.  “Consolidated EBITDA” means, as of any date of determination, the EBITDA of  Parent Borrower and its Restricted Subsidiaries for the most recently ended four full  fiscal quarters for which internal financial statements are available, on a consolidated  

 

   22      basis, calculated on a pro forma basis consistent with the calculations made under the  definition of Consolidated Secured Net Leverage Ratio or Pro Forma Compliance, as  applicable.   “Consolidated Interest Expense” means, with respect to any Person for any  period, the sum, without duplication, of:  (1) consolidated interest expense of such Person and its Restricted  Subsidiaries for such period, to the extent such expense was deducted in computing  Consolidated Net Income (including the interest component of Capital Lease Obligations  and net payments and receipts (if any) pursuant to interest rate Hedging Obligations,  amortization of deferred financing fees and original issue discount, debt issuance costs,  commissions, fees and expenses, expensing of any bridge, commitment or other financing  fees and non-cash interest expense attributable to movement in mark to market valuation  of Hedging Obligations or other derivatives (in each case permitted hereunder) under  GAAP); plus  (2) consolidated capitalized interest of such Person and its Restricted  Subsidiaries for such period, whether paid or accrued; plus  (3) commissions, discounts, yield and other fees and charges Incurred in  connection with any securitization financing which are payable to Persons other than  Parent Borrower and the Restricted Subsidiaries; minus  (4) interest income for such period.  For purposes of this definition, interest on a Capital Lease Obligation shall be  deemed to accrue at an interest rate reasonably determined by Parent Borrower to be the  rate of interest implicit in such Capital Lease Obligation in accordance with GAAP.  “Consolidated Net Income” means, with respect to any Person for any period, the  aggregate of the Net Income of such Person and its Restricted Subsidiaries for such  period, on a consolidated basis; provided, however, that:  (1) any net after-tax extraordinary, nonrecurring or unusual gains or losses  (less all fees and expenses relating thereto) or expenses or charges shall be excluded;  (2) any severance expenses, relocation expenses, restructuring expenses,  curtailments or modifications to pension and post-retirement employee benefit plans,  excess pension charges, any expenses related to any reconstruction, decommissioning,  recommissioning or reconfiguration of fixed assets for alternate uses and fees, expenses  or charges relating to facilities closing costs, acquisition integration costs, facilities  opening costs, project start-up costs, business optimization costs, signing, retention or  completion bonuses, expenses, commissions or charges related to any issuance,  redemption, repurchase, retirement or acquisition of Equity Interests, Investment,  acquisition, disposition, recapitalization or issuance, repayment, refinancing, amendment  or modification of Indebtedness (in each case, whether or not successful), and any fees,  expenses or charges related to the Transactions or the Senior Notes, in each case, shall be  

 

   23      excluded; provided that the aggregate amount excluded from Consolidated Net Income  pursuant to this clause (2), together with the aggregate amount added back to EBITDA  pursuant to clause (6) of the definition thereof, shall not exceed 15% of EBITDA in any  Test Period;  (3) effects of purchase accounting adjustments (including the effects of such  adjustments pushed down to such Person and such Subsidiaries and including, without  limitation, the effects of adjustments to (A) Capital Lease Obligations or (B) any other  deferrals of income) in amounts required or permitted by GAAP, resulting from the  application of purchase accounting or the amortization or write-off of any amounts  thereof, net of taxes, shall be excluded;  (4) the Net Income for such period shall not include the cumulative effect of a  change in accounting principles during such period;  (5) any net after-tax income or loss from disposed, abandoned, transferred,  closed or discontinued operations or fixed assets and any net after-tax gains or losses on  disposal of disposed, abandoned, transferred, closed or discontinued operations or fixed  assets shall be excluded; provided that notwithstanding any classification of any Person,  business, assets or operations as discontinued operations because a definitive agreement  for the sale, transfer or other disposition in respect thereof has been entered into, such  Person shall not exclude any such net after-tax income or loss or any such net after-tax  gains or losses attributable thereto until such sale, transfer or other disposition has been  consummated;  (6) any net after-tax gains or losses (less all fees and expenses or charges  relating thereto) attributable to business dispositions or asset dispositions other than in the  ordinary course of business (as determined in good faith by management of Parent  Borrower) shall be excluded; provided, that notwithstanding any classification of any  Person, business, assets or operations as discontinued operations because a definitive  agreement for the sale, transfer or other disposition in respect thereof has been entered  into, Parent Borrower shall not exclude any such net after-tax income or loss or any such  net after-tax gains or losses attributable thereto until such sale, transfer or other  disposition has been consummated;  (7) any net after-tax gains or losses (less all fees and expenses or charges  relating thereto) attributable to the early extinguishment of indebtedness, Hedging  Obligations or other derivative instruments shall be excluded;  (8) (a) the Net Income for such period of any Person that is not a Subsidiary  of such Person, or is an Unrestricted Subsidiary, or that is accounted for by the equity  method of accounting, shall be included only to the extent of the amount of dividends or  distributions or other payments paid in cash (or to the extent converted into cash) to the  referent Person or a Restricted Subsidiary thereof in respect of such period and (b) the  Net Income for such period shall include any dividend, distribution or other payment in  cash (or to the extent converted into cash) received by the referent Person or a Subsidiary  

 

   24      thereof (other than an Unrestricted Subsidiary of such referent Person) from any Person  in excess of, but without duplication of, the amounts included in subclause (a);  (9) [Reserved];  (10) an amount equal to the amount of Tax Distributions actually made to any  parent or equity holder of such Person in respect of such period in accordance with  Section 7.02(b)(ii)(11) shall be included as though such amounts had been paid as income  taxes directly by such Person for such period;  (11) any impairment charges or asset write-offs, in each case pursuant to  GAAP, and the amortization of intangibles and other fair value adjustments arising  pursuant to GAAP shall be excluded;  (12) any non-cash expense realized or resulting from management equity plans,  stock option plans, employee benefit plans or post-employment benefit plans, or grants or  sales of stock, stock appreciation or similar rights, stock options, restricted stock,  preferred stock or other rights shall be excluded;  (13) any (a) non-cash compensation charges, (b) costs and expenses related to  employment of terminated employees, or (c) costs or expenses realized in connection  with or resulting from stock appreciation or similar rights, stock options or other rights  existing on the Restatement Date of officers, directors and employees, in each case of  such Person or any Restricted Subsidiary, shall be excluded;  (14) accruals and reserves that are established or adjusted within 12 months  after the Restatement Date and that are so required to be established or adjusted in  accordance with GAAP or as a result of adoption or modification of accounting policies  shall be excluded;  (15) non-cash gains, losses, income and expenses resulting from fair value  accounting required by the applicable standard under GAAP and related interpretations  shall be excluded;  (16) any currency translation gains and losses related to currency  remeasurements of Indebtedness, and any net loss or gain resulting from hedging  transactions for currency exchange risk, shall be excluded;  (17) (a) to the extent covered by insurance and actually reimbursed, or, so long  as such Person has made a determination that there exists reasonable evidence that such  amount will in fact be reimbursed by the insurer and only to the extent that such amount  is (i) not denied by the applicable carrier in writing within 180 days and (ii) in fact  reimbursed within 365 days of the date of such evidence (with a deduction for any  amount so added back to the extent not so reimbursed within 365 days), expenses with  respect to liability or casualty events or business interruption shall be excluded and (b)  amounts in respect of which such Person has determined that there exists reasonable  evidence that such amounts will in fact be reimbursed by insurance in respect of lost  revenues or earnings in respect of liability or casualty events or business interruption  

 

   25      shall be included (with a deduction for amounts actually received up to such estimated  amount, to the extent included in Net Income in a future period); and  (18) non-cash charges for deferred tax asset valuation allowances shall be  excluded.  “Consolidated Non-Cash Charges” means, with respect to any Person for any  period, the non-cash expenses (other than Consolidated Depreciation and Amortization  Expense) of such Person and its Restricted Subsidiaries reducing Consolidated Net  Income of such Person for such period on a consolidated basis and otherwise determined  in accordance with GAAP; provided that if any such non-cash expenses represent an  accrual or reserve for potential cash items in any future period, the cash payment in  respect thereof in such future period shall be subtracted from EBITDA in such future  period to the extent paid, but excluding from this proviso, for the avoidance of doubt,  amortization of a prepaid cash item that was paid in a prior period.  “Consolidated Secured Net Leverage Calculation Date” has the meaning specified  in the definition of “Consolidated Secured Net Leverage Ratio.”  “Consolidated Secured Net Leverage Ratio” means, with respect to any Person, at  any date, the ratio of (i) Secured Indebtedness of such Person and its Restricted  Subsidiaries as of such date of calculation (determined on a consolidated basis in  accordance with GAAP)  which includes only (A) the Obligations and any other  Indebtedness secured by the ABL Priority Collateral and (B) any Indebtedness secured by  Non-ABL Priority Collateral, less the amount of cash and Cash Equivalents in excess of  any Restricted Cash that would be stated on the balance sheet of such Person and its  Restricted Subsidiaries and held by such Person and its Restricted Subsidiaries as of such  date of determination to (ii) EBITDA of such Person for the four full fiscal quarters for  which internal financial statements are available immediately preceding such date on  which such additional Indebtedness is Incurred.  In the event that Parent Borrower or any Restricted Subsidiary Incurs, repays,  repurchases or redeems any Indebtedness or issues, repurchases or redeems Disqualified  Capital Stock or Preferred Stock subsequent to the commencement of the period for  which the Consolidated Secured Net Leverage Ratio is being calculated but prior to the  event for which the calculation of the Consolidated Secured Net Leverage Ratio is made  (the “Consolidated Secured Net Leverage Calculation Date”), then the Consolidated  Secured Net Leverage Ratio shall be calculated giving pro forma effect to such  Incurrence, repayment, repurchase or redemption of Indebtedness, or such issuance,  repurchase or redemption of Disqualified Capital Stock or Preferred Stock as if the same  had occurred at the beginning of the applicable four-quarter period; provided that, for  purposes of clause (6)(B) or (D) of the definition of “Permitted Lien”, Parent Borrower  may elect pursuant to an Officer’s Certificate delivered to Agent to treat all or any  portion of the commitment under any Indebtedness as being Incurred at the time of  delivery of such Officer’s Certificate, in which case any subsequent Incurrence of  Indebtedness under such commitment shall not be deemed, for purposes of this  calculation, to be an Incurrence at such subsequent time, and to the extent Parent  

 

   26      Borrower elects pursuant to such an Officer’s Certificate delivered to Agent to treat all or  any portion of the commitment under any Indebtedness as being Incurred at the time of  delivery of such Officer’s Certificate, solely for purposes of clause (6)(B) or (D) of the  definition of “Permitted Lien”, Parent Borrower shall deem all or such portion of such  commitment as having been Incurred and to be outstanding for purposes of calculating  the Consolidated Secured Net Leverage Ratio for any period in which Parent Borrower  makes any such election and for any subsequent period until such commitments are no  longer outstanding or until Parent Borrower elects to withdraw such election.  For purposes of making the computation referred to above, Investments,  acquisitions, dispositions, mergers, amalgamations, consolidations and discontinued  operations (as determined in accordance with GAAP), in each case with respect to an  operating unit of a business, that Parent Borrower or any Restricted Subsidiary has made  during the four-quarter reference period or subsequent to such reference period and on or  prior to or simultaneously with the Consolidated Secured Net Leverage Calculation Date  (each, for purposes of this definition, a “pro forma event”) shall be calculated on a pro  forma basis assuming that all such Investments, acquisitions, dispositions, mergers,  amalgamations, consolidations or discontinued operations (and the change of any  associated fixed charge obligations and the change in EBITDA resulting therefrom) had  occurred on the first day of the four-quarter reference period; provided that,  notwithstanding any classification of any Person, business, assets or operations as  discontinued operations because a definitive agreement for the sale, transfer or other  disposition in respect thereof has been entered into, Parent Borrower shall not make such  computations on a pro forma basis for any such classification for any period until such  sale, transfer or other disposition has been consummated. If since the beginning of such  period any Person that subsequently became a Restricted Subsidiary or was merged with  or into Parent Borrower or any Restricted Subsidiary since the beginning of such period  shall have consummated any pro forma event that would have required adjustment  pursuant to this definition, then the Consolidated Secured Net Leverage Ratio shall be  calculated giving pro forma effect thereto for such period as if such pro forma event had  occurred at the beginning of the applicable four-quarter period. If since the beginning of  such period any Restricted Subsidiary is designated an Unrestricted Subsidiary or any  Unrestricted Subsidiary is designated a Restricted Subsidiary, then the Consolidated  Secured Net Leverage Ratio shall be calculated giving pro forma effect thereto for such  period as if such designation had occurred at the beginning of the applicable four-quarter  period.  For purposes of this definition, whenever pro forma effect is to be given to any  pro forma event, the pro forma calculations shall be made in good faith by a responsible  financial or accounting officer of Parent Borrower.   If any Indebtedness bears a floating rate of interest and is being given pro forma  effect, the interest on such Indebtedness shall be calculated as if the rate in effect on the  Consolidated Secured Net Leverage Calculation Date had been the applicable rate for the  entire period (taking into account any Hedging Obligations applicable to such  Indebtedness if such Hedging Obligation has a remaining term in excess of 12 months).   Interest on a Capital Lease Obligation shall be deemed to accrue at an interest rate  

 

   27      reasonably determined by a responsible financial or accounting officer of Parent  Borrower to be the rate of interest implicit in such Capital Lease Obligation in  accordance with GAAP.  For purposes of making the computation referred to above,  interest on any Indebtedness under a revolving credit facility computed on a pro forma  basis shall be computed based upon the average daily balance of such Indebtedness  during the applicable period. Interest on Indebtedness that may optionally be determined  at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank  offered rate, or other rate, shall be deemed to have been based upon the rate actually  chosen, or, if none, then based upon such optional rate chosen as Parent Borrower may  designate.  For purposes of this definition, any amount in a currency other than Dollars will  be converted to Dollars based on the average exchange rate for such currency for the  most recent twelve month period immediately prior to the date of determination in a  manner consistent with that used in calculating EBITDA for the applicable period.  “Consolidated Taxes” means, with respect to any Person for any period, the  provision for taxes based on income, profits or capital, including, without limitation, state  franchise and similar taxes, foreign withholding taxes (including penalties and interest  related to such taxes or arising from tax examinations) and any Tax Distributions taken  into account in calculating Consolidated Net Income.  “Consolidated Total Indebtedness” means, as of any date of determination, an  amount equal to the sum (without duplication) of (1) the aggregate principal amount of  all outstanding Indebtedness of Parent Borrower and the Restricted Subsidiaries  (excluding any undrawn letters of credit) consisting of bankers’ acceptances and  Indebtedness for borrowed money, plus (2) the aggregate amount of all outstanding  Disqualified Capital Stock of Parent Borrower and the Restricted Subsidiaries and all  Preferred Stock of Restricted Subsidiaries, with the amount of such Disqualified Capital  Stock and Preferred Stock equal to the greater of their respective voluntary or involuntary  liquidation preferences, in each case determined on a consolidated basis in accordance  with GAAP.   “Constitutive Documents” means, with respect to any Person, the certificate of  incorporation or registration (including, if applicable, certificate of change of name),  articles of incorporation or association, memorandum of association, charter, bylaws,  certificate of limited partnership, partnership agreement, trust agreement, joint venture  agreement, certificate of formation, articles of organization, limited liability company  operating or members agreement, joint venture agreement or one or more similar  agreements, instruments or documents constituting the organization or formation of such  Person.   “Contingent Obligations” means, with respect to any Person, any obligation of  such Person guaranteeing any leases, dividends or other obligations that do not constitute  Indebtedness (“primary obligations”) of any other Person (the “primary obligor”) in any  manner, whether directly or indirectly, including, without limitation, any obligation of  such Person, whether or not contingent:  

 

   28      (1) to purchase any such primary obligation or any property constituting direct  or indirect security therefor,  (2) to advance or supply funds:  (a) for the purchase or payment of any such primary obligation; or  (b) to maintain working capital or equity capital of the primary obligor  or otherwise to maintain the net worth or solvency of the primary obligor; or  (3) to purchase property, securities or services primarily for the purpose of  assuring the owner of any such primary obligation of the ability of the primary obligor to  make payment of such primary obligation against loss in respect thereof.   “Contract Rate Loan” means any Advance bearing interest at Term SOFR, the BA  Rate or an Alternative Currency Term Rate.  “Contractual Obligations” means, with respect to any Person, any security issued  by such Person or any document or undertaking (other than a Loan Document) to which  such Person is a party or by which it or any of its property is bound or to which any of its  property is subject.  “Convert,” “Conversion” and “Converted” each refers to a conversion of  Advances of one Type into Advances of another Type pursuant to Section 2.02 or 2.09.  “Copyrights” has the meaning specified in the applicable Security Agreements.  “Cost” means the lower of cost or market value of Inventory, based upon the  Loan Parties’ accounting practices, known to the Agent, which practices are in effect on  the Restatement Date, with such changes as permitted by GAAP, as such calculated cost  is determined from invoices received by the Loan Parties, the Loan Parties’ purchase  journals or the Loan Parties’ stock ledger.   “Co-Sustainability Coordinators” means BofA Securities, Inc. and Sumitomo  Mitsui Banking Corporation.  “Covenant Trigger” shall have the meaning specified in Section 7.03(b).  “Covenant Trigger Date” shall have the meaning specified in Section 7.03(b).   “Covered Party” has the meaning specified in Section 10.24(a).  “Credit Card Issuer” means any person (other than a Borrower or other Loan  Party) who issues or whose members issue credit cards, including, without limitation,  MasterCard or VISA bank credit or debit cards or other bank credit or debit cards issued  through MasterCard International, Inc., Visa, U.S.A., Inc. or Visa International and  American Express, Discover, Diners Club, Carte Blanche, Barclays and other issuers  approved by the Agent (such approval not to be unreasonably withheld).   

 

   29      “Credit Card Notifications” means, collectively, the notices to Credit Card Issuers  or Credit Card Processors who are parties to credit card agreements with any Loan Party,  which Credit Card Notifications shall require the ACH or wire transfer no less frequently  than each Business Day (and whether or not there are then any outstanding Obligations)  of all payments due from Credit Card Processors to (i) a Dominion Account, or (ii) any  other Blocked Account in the United States (or in the case of Canadian Loan Parties,  Canada).  “Credit Card Processor” means any servicing or processing agent or any factor or  financial intermediary who facilitates, services, processes or manages the credit  authorization, billing transfer and/or payment procedures with respect to any Loan  Party’s sales transactions involving credit card or debit card purchases by customers  using credit cards or debit cards issued by any Credit Card Issuer.   “Credit Card Receivables” means each “payment intangible” (as defined in the  UCC or, as applicable, each “intangible” as defined in the PPSA under which the account  debtor’s principal obligation is a monetary obligation) together with all income, payments  and proceeds thereof, owed by a Credit Card Issuer, Credit Card Processor or applicable  e-commerce service provider or electronic payment services provider to a Loan Party  resulting from charges by a customer of a Loan Party (i) on credit or debit cards issued by  such Credit Card Issuer or (ii) from PayPal, Inc., Stripe, Square or any other e-commerce  service provider or electronic payment services provider as the Agent shall reasonably  approve from time to time, in each case, in connection with the sale of goods by a Loan  Party, or services performed by a Loan Party, in each case, in the ordinary course of its  business.  “Credit Extension” means each of the following: (a) an Advance made or to be  made to any Borrower; and (b) with respect to any Letter of Credit, any issuance,  extension of the expiry date, or increase in the amount thereof, for the account of any  Borrower.  “Customer Credit Liabilities” means at any time, an amount not to exceed 50% of  the aggregate remaining value at such time, taking into account Parent Borrower’s  historical realization rates, of (a) outstanding gift certificates and gift cards of the Loan  Parties entitling the holder thereof to use all or a portion of the certificate or gift card to  pay all or a portion of the purchase price for any Inventory, (b) outstanding merchandise  credits of the Loan Parties, and (c) liabilities in connection with frequent shopping  programs of the Loan Parties.  “Customer Deposits” means at any time, the aggregate amount at such time of (a)  deposits made by customers with respect to the purchase of goods or the performance of  services and (b) layaway obligations of the Loan Parties.  “Customs Broker Agreement” means an agreement in form and substance  reasonably satisfactory to the Agent among a Loan Party, a customs broker, freight  forwarder, consolidator or carrier, and the Agent, in which the customs broker, freight  forwarder, consolidator or carrier acknowledges that it has control over and holds the  

 

   30      documents evidencing ownership of the subject Inventory for the benefit of the Agent  and agrees to hold and dispose of the subject Inventory solely as directed by the Agent.  “Daily Simple SOFR” shall mean, for any day, a per annum rate equal to the  secured overnight financing rate published on such date by the Federal Reserve Bank of  New York (or a successor administrator), as administrator of the benchmark, on its  website (or any successor source satisfactory to the Agent (in consultation with the Parent  Borrower)).   “DDA” means each checking, savings or other demand deposit account  maintained by any of the Loan Parties.  All funds in each DDA shall be conclusively  presumed to be Collateral and proceeds of Collateral and the Agent and the Lenders shall  have no duty to inquire as to the source of the amounts on deposit in any DDA.  “Debtor Relief Laws” means the Bankruptcy Code of the United States, the BIA,  the CCAA, the Winding-up and Restructuring Act (Canada) 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, Canada or other applicable jurisdictions from time to time as now and  hereafter in effect and affecting the rights of creditors generally including, without  limitation, any corporate or other law of any jurisdiction permitting a debtor to obtain a  stay or a compromise of the claims of its creditors against it.  “Default” means an event which would constitute an Event of Default but for the  requirement that notice be given or time elapse, or both.  “Default Rate” means (a) when used with respect to Obligations other than Letter  of Credit Fees, an interest rate equal to (i) the Base Rate, the Canadian Base Rate or the  Canadian Prime Rate, as applicable plus (ii) 2.0% per annum plus, in the case of  Obligations consisting of Index Rate Loans, the Applicable Margin for Index Rate Loans;  provided, however, that with respect to a Contract Rate Loan or an Alternative Currency  Daily Rate Advance, the Default Rate shall be an interest rate equal to the interest rate  (including any Applicable Margin for Contract Rate Loans or Alternative Currency Daily  Rate Advances, as applicable) otherwise applicable to such Advance plus 2.0% per  annum, and (b) when used with respect to Letter of Credit Fees, a rate equal to the  applicable Standby Letter of Credit Fee plus 2.0% per annum.  “Defaulting Lender” means, subject to Section 2.14(b), any Lender that, as  determined by the Agent, (a) has failed to perform any of its funding obligations  hereunder, including in respect of its Advances or participations in respect of Letters of  Credit or Swing Line Advances, within three Business Days of the date required to be  funded by it hereunder, unless such Lender notifies the Agent in writing that such failure  is the result of such Lender's determination that one or more conditions precedent to  funding (which conditions precedent, together with the applicable default, if any, shall be  specifically identified in such writing) has not been satisfied, (b) has notified the Parent  Borrower or the Agent in writing that it does not intend to comply with its funding  obligations or has made a public statement to that effect with respect to its funding  

 

   31      obligations hereunder or under other agreements in which it commits to extend credit,  unless such writing or public statement states that such position is based on such Lender's  determination that a condition precedent to funding (which condition precedent, together  with the applicable default, if any, shall be specifically identified in such writing or  public statement) cannot be satisfied, (c) has failed, within three Business Days after  request by the Agent, to confirm in writing in a manner satisfactory to the Agent that it  will comply with its funding obligations, provided that such Lender shall cease to be a  Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation of  the Agent or (d) has, or has a direct or indirect parent company that has, (i) become the  subject of a Bail-In Action or a proceeding under any Debtor Relief Law, (ii) had a  receiver, interim receiver, monitor, conservator, trustee, administrator, assignee for the  benefit of creditors or similar Person charged with reorganization or liquidation of its  business or a custodian appointed for it, or (iii) taken any action in furtherance of, or  indicated its consent to, approval of or acquiescence in any such proceeding or  appointment; 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 and Canada or from the enforcement of judgments or writs of  attachment on its assets or permit such Lender (or such governmental authority or  instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements  made with such Lender.    “Designated Non-cash Consideration” means the Fair Market Value (as  determined in good faith by Parent Borrower) of non-cash consideration received by  Parent Borrower or a Restricted Subsidiary in connection with a Disposition that is so  designated as Designated Non-cash Consideration pursuant to an Officer’s Certificate,  setting forth such valuation, less the amount of Cash Equivalents received in connection  with a subsequent sale of such Designated Non-cash Consideration.  “Designated Preferred Stock” means Preferred Stock of Parent Borrower or any  direct or indirect parent of Parent Borrower (other than Disqualified Capital Stock), that  is issued for cash (other than to Parent Borrower or any of its Subsidiaries or an employee  stock ownership plan or trust established by Parent Borrower or any of its Subsidiaries)  and is so designated as Designated Preferred Stock, pursuant to an Officer’s Certificate,  on the issuance date thereof.  “Disposition” means with respect to any property, any sale, lease, license, sale  and leaseback, assignment, conveyance, transfer or other disposition thereof (including  by means of a “plan of division” under the Delaware Limited Liability Company Act or  any comparable transaction under any similar law).  The terms “Dispose” and “Disposed  of” shall have correlative meanings.  “Disqualified Capital Stock” means, with respect to any Person, any Capital Stock  of such Person which, by its terms (or by the terms of any security into which it is convertible or  for which it is redeemable or exchangeable), or upon the happening of any event:  

 

   32      (1) matures or is mandatorily redeemable, pursuant to a sinking fund  obligation or otherwise (other than as a result of a change of control or asset sale),  (2) is convertible or exchangeable for Indebtedness or Disqualified  Capital Stock of such Person or any of its Restricted Subsidiaries, or  (3) is redeemable at the option of the holder thereof, in whole or in part  (other than solely as a result of a change of control or asset sale), in each case prior to 91  days after the Termination Date; provided, however, that only the portion of Capital Stock  which so matures or is mandatorily redeemable, is so convertible or exchangeable or is so  redeemable at the option of the holder thereof prior to such date shall be deemed to be  Disqualified Capital Stock; provided, further, however, that if such Capital Stock is issued  to any employee or to any plan for the benefit of employees of Parent Borrower or its  Subsidiaries or by any such plan to such employees, such Capital Stock shall not constitute  Disqualified Capital Stock solely because it may be required to be repurchased by such  Person in order to satisfy applicable statutory or regulatory obligations or as a result of  such employee’s termination, death or disability; provided, further, that any class of Capital  Stock of such Person that by its terms authorizes such Person to satisfy its obligations  thereunder by delivery of Capital Stock that is not Disqualified Capital Stock shall not be  deemed to be Disqualified Capital Stock.  “Documentation Agent” means U.S. Bank National Association.  “Documents” means all “documents,” as such term is defined in the UCC or  “documents of title” as such term is defined in the PPSA, as applicable, now owned or  hereafter acquired by any Loan Party, wherever located.  “Dollar Equivalent” means, at any time, (a) with respect to any amount  denominated in Dollars, such amount, and (b) with respect to any amount denominated in  any Alternative Currency, the equivalent amount thereof in Dollars as determined by the  Agent or the applicable Issuing Bank, as the case may be, at such time on the basis of the  Spot Rate (determined in respect of the most recent Revaluation Date) for the purchase of  Dollars with such Alternative Currency.  “Dollars,” “dollars” and the sign “$” each means lawful money of the United  States.  “Domestic Subsidiary” means, at any time, any of the direct or indirect  Subsidiaries of the Parent Borrower that is incorporated or organized under the laws of  any state of the United States of America or the District of Columbia.  “Dominion Account” means the U.S. Dominion Account and the Canadian  Dominion Account.  “EBITDA” means, with respect to any Person for any period, the Consolidated  Net Income of such Person and its Restricted Subsidiaries for such period plus, without  duplication, to the extent the same was deducted in calculating Consolidated Net Income:  (1) Consolidated Taxes; plus  

 

   33      (2) EBITDA Fixed Charges and costs of surety bonds in connection with  financing activities; plus  (3) Consolidated Depreciation and Amortization Expense; plus  (4) Consolidated Non-Cash Charges; plus  (5) any expenses or charges (other than Consolidated Depreciation and  Amortization Expense) related to any issuance of Equity Interests, Investment,  acquisition, disposition, recapitalization or the incurrence, modification or repayment of  Indebtedness permitted to be incurred by this Agreement (including a refinancing  thereof) (whether or not successful), including (i) such fees, expenses or charges related  to the Transactions and (ii) any amendment or other modification of the Senior Notes or  other Indebtedness; plus  (6) business optimization expenses and other restructuring charges, reserves  or expenses (which, for the avoidance of doubt, shall include, without limitation, the  effect of facility closures, facility consolidations, retention, severance, systems  establishment costs, contract termination costs, future lease commitments and excess  pension charges); provided that the aggregate amount added back to EBITDA pursuant to  this clause (6), together with the aggregate amount excluded from Consolidated Net  Income pursuant to clause (2) of the definition thereof, shall not exceed 15% of EBITDA  in any Test Period; plus   (7) [Reserved]; plus  (8) any costs or expense incurred pursuant to any management equity plan or  stock option plan or any other management or employee benefit plan or agreement or any  stock subscription or shareholder agreement, to the extent that such cost or expenses are  funded with cash proceeds contributed to the capital of Parent Borrower or any Loan  Party or net cash proceeds of an issuance of Equity Interests of Parent Borrower (other  than Disqualified Capital Stock) solely to the extent that such net cash proceeds are  excluded from the calculation of Excluded Contributions; plus  (9) [Reserved]; and  less, without duplication, to the extent the same increased Consolidated Net  Income,  (10) non-cash items increasing Consolidated Net Income for such period  (excluding the recognition of deferred revenue or any items which represent the reversal  of any accrual of, or cash reserve for, anticipated cash charges that reduced EBITDA in  any prior period and any items for which cash was received in a prior period).  “EBITDA Fixed Charges” means, with respect to any Person for any period, the  sum, without duplication, of:  (1) Consolidated Interest Expense (excluding amortization  or write-off of deferred financing costs) of such Person for such period, and (2) all cash  dividend payments (excluding items eliminated in consolidation) on any series of  

 

   34      Preferred Stock or Disqualified Capital Stock of such Person and its Restricted  Subsidiaries.  “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.   “Eligible Assignee” means (a) a Lender; (b) an Affiliate or branch of a Lender; (c)  an Approved Fund; and (d) any other financial institution, finance company, institutional  lender or Funds approved by (i) the Agent, (ii) in the case of any assignment of a  Revolving Credit Commitment, the Issuing Banks and the Swing Line Lender, and (iii)  unless an Event of Default has occurred and is continuing, the Parent Borrower (each  such approval in clauses (i), (ii) and (iii) not to be unreasonably withheld or delayed).  No  Loan Party or any Affiliate thereof shall be an Eligible Assignee with respect to any  Revolving Credit Advance or any Revolving Credit Commitment.  “Eligible Credit Card Receivables” means at the time of any determination  thereof, each Credit Card Receivable that satisfies the following criteria at the time of  creation and continues to meet the same at the time of such determination: (i) has been  earned by performance and represents the bona fide amounts due to a Loan Party from a  Credit Card Issuer or Credit Card Processor, and in each case originated in the ordinary  course of business of such Loan Party, and (ii) is not ineligible for inclusion in the  calculation of the Borrowing Base pursuant to any of clauses (a) through (i) below.  Without limiting the foregoing, to qualify as an Eligible Credit Card Receivable,  such Credit Card Receivable shall indicate no Person other than a Loan Party as payee or  remittance party. In determining the amount to be so included, the face amount of a  Credit Card Receivable shall be reduced by, without duplication, to the extent not  reflected in such face amount, (i) the amount of all accrued and actual discounts, claims,  credits or credits pending, promotional program allowances, price adjustments, finance  charges or other allowances (including any amount that a Loan Party is obligated to  rebate to a customer, a Credit Card Issuer or Credit Card Processor pursuant to the terms  of any agreement or understanding (written or oral)) and (ii) the aggregate amount of all  cash received in respect of such Credit Card Receivable but not yet applied by the Loan  Parties to reduce the amount of such Credit Card Receivable. Any Credit Card  

 

   35      Receivable included within any of the following categories shall not constitute an  Eligible Credit Card Receivable:  (a) Credit Card Receivables which do not constitute an “Account” or a  “payment intangible” (as defined in the UCC) or, as applicable, an “intangible” as  defined in the PPSA under which the account debtor’s principal obligation is a monetary  obligation;  (b) Credit Card Receivables that have been outstanding for more than five (5)  Business Days from the date of sale;  (c) Credit Card Receivables (i) that are not subject to a perfected first priority  security interest in favor of the Agent (other than Permitted Liens arising by operation of  Law), or (ii) with respect to which a Loan Party does not have good, valid and marketable  title;  (d) Credit Card Receivables which are disputed, or with respect to which a  claim, counterclaim, offset or chargeback has been asserted (to the extent of such dispute,  claim, counterclaim, offset or chargeback);  (e) Credit Card Receivables as to which the Credit Card Processor has the  right under certain circumstances to require a Loan Party to repurchase the Credit Card  Receivables from such Credit Card Processor;  (f) Credit Card Receivables due from a Credit Card Issuer or Credit Card  Processor which is the subject of any bankruptcy or insolvency proceedings;  (g) Credit Card Receivables which are not a valid, legally enforceable  obligation of the applicable Credit Card Issuer with respect thereto;  (h) Credit Card Receivables which do not conform to all representations and  warranties in the Loan Documents relating to Credit Card Receivables; or  (i) Credit Card Receivables which the Agent determines in its Permitted  Discretion after consultation with Borrower to be uncertain of collection.   “Eligible In-Transit Inventory” means, as of any date of determination thereof,  without duplication of other Eligible Inventory, In-Transit Inventory:  (a) (i) which has been shipped from a location outside the U.S. and Canada  for receipt by a Loan Party, but which has not yet been delivered to such Loan Party,  which In-Transit Inventory has been in transit for less than sixty (60) days from the date  of determination, or (ii) which has been received at a distribution center of a Loan Party  in the U.S. or Canada from the applicable carrier but which has not been entered into  such Loan Party’s inventory stock ledger (i.e., “on the dock” or “on the yard”);  (b) for which the purchase order is in the name of a Loan Party and title and  risk of loss has passed to such Loan Party;  

 

   36      (c) for which either (A) (i) within 60 days (or such later date agreed by the  Agent) of the Agent’s request following the occurrence of an In-Transit Documentation  Event, an Acceptable Document of Title has been issued, and (ii) if requested by the  Agent in its Permitted Discretion and subject to Section 7.01(p), in each case as to which  the Agent has control over, or possession as required by the PPSA, as applicable, of, the  documents of title which evidence ownership of the subject Inventory (such as by the  delivery of a Customs Broker Agreement) or (B) to the extent the steps required in (A)  have not been taken, the Agent has, in its Permitted Discretion, imposed Reserves in  respect thereof;  (d) which is insured to the reasonable satisfaction of the Agent consistent with  industry norms (including, without limitation, marine cargo insurance);   (e) for which payment of the purchase price has been made by such Loan  Party or the purchase price is supported by a Commercial Letter of Credit;  (f) which otherwise would constitute Eligible Inventory;  (g) which is sold by a vendor that the Agent has determined, in its Permitted  Discretion, has a right to reclaim, divert shipment of, repossess, stop delivery, claim any  reservation or title or otherwise assert rights against the Inventory, unless the Agent has  imposed Reserves in respect thereof in its Permitted Discretion; and  (h) which meet such other eligibility criteria as the Agent may establish in its  Permitted Discretion after consultation with Borrower and after conducting its due  diligence with respect to such In-Transit Inventory;  provided that the Agent may, in its Permitted Discretion, exclude any particular  In-Transit Inventory from the definition of “Eligible In-Transit Inventory” in the event  the Agent determines in its Permitted Discretion that such In-Transit Inventory is subject  to any Person’s right of reclamation, repudiation, stoppage in transit or any event has  occurred or is reasonably anticipated by the Agent to arise which may otherwise  adversely impact the ability of the Agent to realize upon such Inventory.  “Eligible Inventory” means, as of the date of determination thereof, (i) Eligible  In-Transit Inventory and (ii) items of Inventory of a Loan Party that are finished goods,  merchantable and readily saleable to the public in the ordinary course of the a Loan  Party’s business, in each case that, except as otherwise agreed by the Agent, (A) complies  with each of the representations and warranties respecting Inventory made by the Loan  Parties in the Loan Documents, and (B) is not excluded as ineligible by virtue of one or  more of the criteria set forth below. The following items of Inventory shall not be  included in Eligible Inventory:  (a) Inventory that is not solely owned by a Loan Party or a Loan Party does  not have good and valid title thereto;  (b) Inventory that is leased by or is on consignment to a Loan Party or which  is consigned by a Loan Party to a Person which is not a Loan Party;  

 

   37      (c) Inventory (other than In-Transit Inventory) that is not located in the  United States of America or Canada (excluding territories or possessions of either of  them);  (d) Inventory (other than In-Transit Inventory) that is not located at a location  that is owned or leased by a Loan Party, except (i) Inventory in transit between such  owned or leased locations or locations which meet the criteria set forth in clause (ii)  below or located at a warehouse, distribution center, internet fulfillment company or  other similar location with respect to which the Agent has obtained a Collateral Access  Agreement or, if determined to be necessary by the Agent in its Permitted Discretion,  established an Availability Reserve (without duplication of any Availability Reserves  calculated in determining the Borrowing Base, pursuant to subsection (d) of the definition  thereof) in an aggregate amount not to exceed, prior to a Cash Dominion Period, the sum  of two (2) months’ rent, taxes and fees reasonably estimated for such location (it being  understood that the Agent shall have no obligation to impose any such Reserve, even to  the extent that no Collateral Access Agreement exists as to the applicable location), or (ii)  to the extent that the Loan Parties have furnished the Agent with (A) any UCC or PPSA  financing statements or other documents that the Agent may determine to be necessary to  perfect its security interest in such Inventory at such location, and (B) a Collateral Access  Agreement executed by the Person owning any such location on terms reasonably  acceptable to the Agent or, if determined to be necessary by the Agent in its Permitted  Discretion, established an Availability Reserve (without duplication of any Availability  Reserves calculated in determining the Borrowing Base, pursuant to subsection (d) of the  definition thereof) in an aggregate amount not to exceed, prior to a Cash Dominion  Period, the sum of two (2) months’ rent, taxes and fees reasonably estimated for such  location (it being understood that the Agent shall have no obligation to impose any such  Reserve, even to the extent that no Collateral Access Agreement exists as to the  applicable location);  (e) Inventory that is, in the Agent’s Permitted Discretion, comprised of goods  which (i) are damaged, defective, “seconds,” or otherwise unmerchantable, (ii) are to be  returned to the vendor, (iii) are custom items, work in process, raw materials, or that  constitute samples, spare parts, promotional, marketing, labels, bags and other packaging  and shipping materials or supplies used or consumed in a Loan Party’s business, (iv) are  not in compliance with all standards imposed by any Governmental Authority having  regulatory authority over such Inventory, its use or sale, or (v) are bill and hold goods;  (f) Inventory that is not subject to a perfected first priority Lien in favor of the  Agent (other than, with respect to In-Transit Inventory, statutory Liens in favor of  carriers permitted under clause (2) of the definition of “Permitted Liens”, and Permitted  Liens arising by operation of law);  (g) Inventory that is not insured in compliance with the provisions of Section  7.01(f) hereof;   (h) Inventory that has been sold but not yet delivered or as to which a Loan  Party has accepted a deposit;  

 

   38      (i) Inventory that is subject to any licensing, patent, royalty, trademark, trade  name or copyright agreement with any third party from which a Loan Party or any of its  Subsidiaries has received written notice of termination in respect of any such agreement,  or with respect to which such Loan Party is in litigation in respect of such Inventory and  such litigation relates to the use of such license by a Loan Party, to the extent that the  Agent determines, in its Permitted Discretion, that such termination or litigation would be  reasonably likely to impair the Agent’s ability to sell or otherwise dispose of such  Inventory;  (j) Inventory acquired in a Permitted Acquisition or which is not of the type  usually sold in the ordinary course of the Loan Parties’ business, unless and until the  Agent has completed or received (A) an appraisal of such Inventory from an independent  appraiser engaged by the Agent and establishes an advance rate and Inventory Reserves  (if applicable) therefor, and otherwise agrees that such Inventory shall be deemed  Eligible Inventory, and (B) upon the reasonable request of the Agent, a commercial field  examination, all of the results of the foregoing to be reasonably satisfactory to the Agent;  or  (k) Inventory deemed by the Agent in its Permitted Discretion after  consultation with Parent Borrower to be ineligible for inclusion in the calculation of the  Borrowing Base.  “EMU Legislation” means the legislative measures of the European Council for  the introduction of, changeover to or operation of a single or unified European currency.  “Environmental Law” means any Requirement of Law relating to (a) the  generation, use, handling, transportation, treatment, storage, disposal, release or discharge  of Hazardous Substances, (b) pollution or the protection of the environment, health and  safety or natural resources or (c) occupational safety and health, industrial hygiene, land  use or the protection of plants or animals, including, without limitation, CERCLA, in  each case as amended from time to time, and including the regulations promulgated and  the rulings issued from time to time thereunder.  “Equipment” means all “equipment,” as such term is defined in the UCC or the  PPSA, as applicable, now owned or hereafter acquired by any Loan Party, wherever  located.  “Equity Interests” means Capital Stock and all warrants, options or other rights to  acquire Capital Stock (but excluding any debt security that is convertible into, or  exchangeable for, Capital Stock).  “ERISA” means the Employee Retirement Income Security Act of 1974, as  amended from time to time, and the regulations promulgated and rulings issued  thereunder.  “ERISA Affiliate” means any trade or business (whether or not incorporated)  which is a member of a controlled group of which a Loan Party is a member or which is  

 

   39      under common control with a Loan Party within the meaning of Section 414 of the Code,  and the regulations promulgated and rulings issued thereunder.   “ERISA Event” means a reportable event with respect to a Plan within the  meaning of §4043 of ERISA, other than those events as to which the thirty (30)-day  notice period has been waived.  “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule  published by the Loan Market Association (or any successor person), as in effect from  time to time.     “Euro” and “EUR” mean the lawful currency of the Participating Member States  introduced in accordance with the EMU Legislation.  “Events of Default” has the meaning specified in Section 8.01.  “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the  rules and regulations of the SEC promulgated thereunder.  “Excluded Account” means a DDA (i) which is used for the sole purpose of  making payroll and withholding tax payments related thereto and other employee wage  and benefit payments, severance, and accrued and unpaid employee compensation  payments (including salaries, wages, benefits and expense reimbursements, 401(k), and  other retirement plans and employee benefits), (ii) which is used solely as an escrow  account or as a fiduciary or trust account held exclusively for the benefit of an  unaffiliated third party, (iii) which is a zero balance account which sweeps into a Blocked  Account on each Business Day, (iv) which is used for disbursements by Parent Borrower  or any Loan Party and into which no proceeds of Collateral or any other collections or  any Advances or Notes are received, or (v) which is not otherwise subject to the  provisions of this definition and has a daily balance at no time of greater than $5,000,000,  or taken together with any other DDAs that are excluded pursuant to this clause (v), have  a balance at any time of no more than $30,000,000 in aggregate.  “Excluded Contributions” means, at any time the cash and Cash Equivalents  received by Parent Borrower after the Restatement Date from:  (a) contributions to its common equity capital, and  (b) the sale (other than to a Subsidiary of Parent Borrower or to any  Subsidiary management equity plan or stock option plan or any other management or  employee benefit plan or agreement) of Capital Stock (other than Disqualified Capital  Stock and Designated Preferred Stock) of Parent Borrower,  in each case designated as Excluded Contributions pursuant to an Officer’s  Certificate (but excluding any amounts distributed pursuant to Section 7.02(b)).   “Excluded Property” has the meaning assigned to such term in the U.S. Security  Agreement or the Canadian Security Agreements, as applicable.  

 

   40      “Excluded Subsidiary” means:  (a) each Immaterial Subsidiary;  (b) each Subsidiary that is prohibited by applicable Law, rule or regulation or  by any Contractual Obligation existing on the Restatement Date or on the  date such Subsidiary becomes a Subsidiary (to the extent not incurred in  connection with becoming a Subsidiary), in each case, from guaranteeing  the Obligations hereunder, or which would require governmental  (including regulatory) consent, approval, license or authorization to  provide a guarantee of the applicable Obligations hereunder unless such  consent, approval, license or authorization has been received;  (c) any Subsidiary that is a special purpose entity, captive insurance company,  or not-for-profit Subsidiary;  (d) any Subsidiary acquired pursuant to a Permitted Acquisition or similar  Investment which (at the time of such Permitted Acquisition or  Investment) been financed with secured Indebtedness permitted to be  incurred under this Agreement as assumed Indebtedness (and not incurred  in contemplation of such Permitted Acquisition or Investment) and any  Subsidiary thereof that guarantees such secured Indebtedness, in each case  to the extent, and so long as, such secured Indebtedness prohibits such  Subsidiary from becoming a Loan Party;  (e) any direct or indirect Domestic Subsidiary of any Foreign Subsidiary  (other than a Foreign Subsidiary which is incorporated or otherwise  organized in Canada or any province or territory thereof) that is a CFC;  (f) any FSHCO;  (g) any Subsidiary organized in a jurisdiction other than the United States, any  State thereof, or the District of Columbia (including, for the avoidance of  doubt, any Subsidiary organized in a territory of the United States) or  Canada or any province or territory thereof;  (h) any Subsidiary if in the reasonable good faith determination of the Parent  Borrower in consultation with the Agent a guarantee by such Subsidiary  would result in materially adverse tax consequences to the Parent  Borrower or any of its Subsidiaries;  (i) any Unrestricted Subsidiary;  (j) any Subsidiary with respect to which the Agent reasonably agrees in  writing that the cost or other consequences of providing a guarantee is  likely to be excessive in relation to the value to be afforded to the Lenders  thereby and which does not guarantee any other Indebtedness of any Loan  Party;   

 

   41      (k) any other Subsidiary if in the reasonable good faith determination of  Parent Borrower in consultation with the Agent, a guarantee by such  Subsidiary would result in materially adverse tax consequences to Parent  Borrower or any of its Subsidiaries; provided that this clause (k) shall not  apply to any Subsidiary incorporated or otherwise organized in Canada (or  any province or territory thereof) unless the material adverse tax  consequences of such Subsidiary providing a guarantee result from a  Change in Law after the date of this Agreement; and  (l) any Branded Card Subsidiary;  provided, that, notwithstanding the foregoing, (x) no Subsidiary that is an issuer  or guarantor in respect of the Senior Notes shall constitute an Excluded Subsidiary and  (y) no Borrower or direct parent entity of a Borrower shall be an Excluded Subsidiary.   “Excluded Swap Obligation” means, with respect to any Loan Party, any  Hedging Obligation if, and to the extent that, all or a portion of the Obligations of such  Loan Party of, or the grant by such Loan Party of a security interest to secure, such  Hedging Obligation (or any Obligations thereof) is or becomes illegal under the  Commodity Exchange Act or any rule, regulation or order of the Commodity Futures  Trading Commission (or the application or official interpretation of any thereof).  If a  Hedging Obligation arises under a master agreement governing more than one swap, such  exclusion shall apply only to the portion of such Hedging Obligation that is attributable to  swaps for which such Obligation or security interest is or becomes illegal.  “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, with respect to an Advance or L/C Advance to a U.S. Borrower, United  States federal withholding taxes imposed on amounts payable to or for the account of  such Lender with respect to an applicable interest in an Advance, L/C Advance or  Commitment pursuant to a law in effect on the date on which (i) such Lender acquires the  applicable interest in the applicable Commitment or, in the case of an Advance or L/C  Advance not acquired by such Lender pursuant to a prior Commitment, the date on which  such Lender acquires the applicable interest in the applicable Advance or L/C Advance   (other than, in each case, pursuant to an assignment request by the Parent Borrower under  Section 10.12) or (ii) such Lender changes its Lending Office, except in each case to the  extent that, pursuant to Section 4.02(a)(iii) or Section 4.02(c), amounts with respect to  such Taxes were payable either to such Lender’s assignor immediately before such  Lender acquired the applicable interest in the applicable Commitment, Advance or L/C  Advance or to such Lender immediately before it changed its Lending Office, (c) Taxes  attributable to such Recipient’s failure to comply with Section 4.02(e), (d) any Taxes  imposed pursuant to FATCA, and (e) with respect to an Advance or L/C Advance to a  

 

   42      Canadian Borrower, Canadian Taxes that would not have been imposed but for such  Recipient (i) not dealing at arm’s length for purposes of the Income Tax Act (Canada)  with a Loan Party, or (ii) being a “specified shareholder” (as defined in subsection 18(5)  of the Income Tax Act (Canada)) of a Loan Party or not dealing at arm’s length for  purposes of the Income Tax Act (Canada) with any such specified shareholder, except, in  the case of clauses (e)(i) or (ii) above, where the non-arm’s length relationship arises or  where the Recipient is (or is deemed to be) a specified shareholder of any Loan Party or  does not deal at arm’s length with a specified shareholder of any Loan Party, on account  of the Recipient having executed, delivered, become a party to, performed its obligations  under, received payments under, received or perfected a security interest under, or  enforced this Agreement or any other Loan Document.  “Existing Credit Agreement” has the meaning specified in the recitals hereto.  “Existing Letter of Credit” means each letter of credit listed on Schedule 1.01C.  “Facility” means the Revolving Credit Facility, the Swing Line Sublimit, or the  Letter of Credit Sublimit, as the context may require.  “Fair Market Value” means, with respect to any asset or property, the price which  could be negotiated in an arm’s-length transaction, for cash, between a willing seller and  a willing and able buyer.  “FATCA” means Sections 1471 through 1474 of the Code, as in effect on the date  hereof (and any amended or successor version that is substantively comparable and not  materially more onerous to comply with), any present or future Treasury Regulations  issued thereunder or interpretations thereof, any agreements entered into pursuant to  Section 1471(b)(1) of the Code, as in effect on the date hereof (or any amended or  successor version described above), and any intergovernmental agreement, treaty or  convention among Governmental Authorities (and any related legislation, rules or official  administrative guidance) implementing such Sections of the Code.  “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; provided that if the Federal Funds Rate shall be  less than zero, such rate shall be deemed zero for purposes of this Agreement.  “Fee Letter” means (a) the fee letter dated as of June 7, 2022 among the Parent  Borrower and Bank of America and (b) each other fee letter entered into from time to  time by the Parent Borrower and the Swing Line Lender or Issuing Bank.  

 

   43      “FILO Term Loans” has the meaning specified in Section 2.06(b).  “Fiscal Month” means any of the monthly accounting periods of Parent Borrower  and its Subsidiaries.  “Fiscal Quarter” means any quarter in any Fiscal Year, the duration of such  quarter being defined in accordance with GAAP applied consistently with that applied in  the preparation of the Parent Borrower’s financial statements referred to in Section  6.01(f), as set forth on a schedule delivered to the Agent.  “Fiscal Year” means a fiscal year of Parent Borrower and its Subsidiaries, as set  forth on a schedule delivered to the Agent.    “Fixed Charge Coverage Ratio” means, for any period, the ratio of (a)  Consolidated EBITDA for such period minus the sum of (i) Unfinanced Capital  Expenditures plus (ii) the portion of taxes based on income actually paid in cash and  provisions for cash income taxes, to (b) Fixed Charges for such period.  “Fixed Charges” means, for any period, the sum of (a) any scheduled amortization  payments paid or payable during such period on all Indebtedness of Parent Borrower and  its Restricted Subsidiaries (including the principal component of all obligations in respect  of all Capital Lease Obligations), plus (b) consolidated cash Interest Expense of Parent  Borrower and its Restricted Subsidiaries for such period, minus (c) consolidated cash net  interest income of Parent Borrower and its Restricted Subsidiaries for such period plus  (d) solely for the purposes of calculating the Fixed Charge Coverage Ratio when  determining compliance with the Payment Conditions for the making of a Restricted  Payment, the amount of Restricted Payments to be made at such time and previously  made in cash in reliance on the Payment Conditions during such period, in each case, on  a consolidated basis in accordance with GAAP.  “Foreign Lender” means, with respect to any U.S. Borrower, a Lender that is not a  United States Person.  “Foreign Subsidiary” means, at any time, any direct or indirect Subsidiary of the  Parent Borrower that is not a Domestic Subsidiary.  “Fronting Bank” has the meaning specified in Section 10.07(g).   “Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with  respect to any Issuing Bank, such Defaulting Lender’s Commitment Percentage of the  outstanding L/C Obligations in respect of Letters of Credit issued by such Issuing Bank  other than L/C Obligations 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 Swing Line Lender, such Defaulting Lender’s  Commitment Percentage of Swing Line Advances made by the Swing Line Lender other  than Swing Line 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.  

 

   44      “FSHCO” means any Domestic Subsidiary that owns no material assets (directly  or through its Subsidiaries) other than Equity Interests of one or more Foreign  Subsidiaries (other than a Foreign Subsidiary which is incorporated or otherwise  organized in Canada or any province or territory thereof) that are CFCs.  “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.   “GAAP” means generally accepted accounting principles in the United States set  forth in the opinions and pronouncements of the Accounting Principles Board and the  American Institute of Certified Public Accountants and statements and pronouncements  of the Financial Accounting Standards Board or such other principles as may be approved  by a significant segment of the accounting profession in the United States, applied on a  basis consistent (except for changes concurred in by the Parent Borrower’s independent  public accountants) with the most recent audited consolidated financial statements of the  Parent Borrower and its Subsidiaries delivered pursuant to Section 7.04.  “Governmental Authority” means any nation or government, any state, province,  territory, city, municipal entity or other political subdivision thereof, and any  governmental, executive, legislative, judicial, administrative or regulatory agency,  department, authority, instrumentality, commission, board or similar body, whether  federal, state, provincial, territorial, local or foreign.  “Governmental Authorization” means any authorization, approval, consent,  franchise, license, covenant, order, ruling, permit, certification, exemption, notice,  declaration or similar right, undertaking or other action of, to or by, or any filing,  qualification or registration with, any Governmental Authority, in each case having the  force of law.  “Guarantee” means the guarantee of the Obligations by the Loan Parties in Article  III hereunder or in a supplemental guarantee in accordance with Section 7.01(n) of this  Agreement.   “Guarantied Obligations” means as to any Person, any obligation of such Person  guarantying or otherwise having the economic effect of guarantying any Indebtedness,  lease, dividend, or other obligation (“primary obligation”) of any other Person (the  “primary obligor”) in any manner, including any obligation or arrangement of such  Person to (a) purchase or repurchase any such primary obligation, (b) advance or supply  funds (i) for the purchase or payment of any such primary obligation or (ii) to maintain  working capital or equity capital of the primary obligor or otherwise to maintain the net  worth or solvency or any balance sheet condition of the primary obligor, (c) purchase  property, securities or services primarily for the purpose of assuring the owner of any  such primary obligation of the ability of the primary obligor to make payment of such  primary obligation, (d) protect the beneficiary of such arrangement from loss (other than  product warranties given in the ordinary course of business), or (e) indemnify the owner  of such primary obligation against loss in respect thereof; provided, however, that the  

 

   45      term Guarantied Obligations shall not include endorsements of instruments for deposit or  collection in the ordinary course of business or standard contractual indemnities.  The  amount of any Guarantied Obligations at any time shall be deemed to be an amount equal  to the lesser at such time of (x) the stated or determinable amount of the primary  obligation in respect of which such Guarantied Obligations is incurred, and (y) the  maximum amount for which such Person may be liable pursuant to the terms of the  instrument embodying such Guarantied Obligations, or, if not stated or determinable, the  maximum reasonably anticipated liability (assuming full performance) in respect thereof.   “Guaranties” means the U.S. Guaranty, the Canadian Guaranty and any other  guaranty executed by any Guarantor in favor of Agent, for the benefit of the Secured  Parties, in respect of the Obligations.  “Guarantor Payment” has the meaning specified in Section 3.07(a).  “Guarantors” means (x) each Borrower (as to the other Loan Parties’ Obligations)  and (y) each other Restricted Subsidiary that is a party hereto or executes a supplement  hereto in accordance with Section 7.01(n), for itself and the ratable benefit of the Secured  Parties, in connection with the transactions contemplated by this Agreement and the other  Loan Documents; provided, that, notwithstanding anything to the contrary in this  Agreement or in any other Loan Document, in no event shall an Excluded Subsidiary be a  Guarantor of or otherwise obligated in respect of any Obligation of a U.S. Borrower,  provided further that upon the release or discharge of such Person from its Guaranty in  accordance with this Agreement, such Person shall cease to be a Guarantor.  “Hazardous Substance” means (i) any hazardous substance or toxic substance as  such terms are presently defined or used in § 101(14) of CERCLA (42 U.S.C. §  9601(14)), in 33 U.S.C. § 1251 et. seq. (Clean Water Act), or 15 U.S.C. § 2601 et. seq.  (Toxic Substances Control Act) or applicable Environmental Law in Canada; and (ii) as  of any date of determination, any additional substances or materials which are hereafter  incorporated in or added to the definition of “hazardous substance” or “toxic substance”  or similar definitions for purposes of CERCLA, 33 U.S.C. § 1251 et. seq. (Clean Water  Act), or 15 U.S.C. § 2601 et. seq. (Toxic Substances Control Act) or applicable  Environmental Law in Canada.  “Hedge Bank” means any Person counterparty to a Swap Contract who is (x)  Bank of America or any Affiliate or branch of Bank America or (y) any other Lender or  any Affiliate or branch of such Lender so long as, in the case of this clause (y), Parent  Borrower and the applicable Lender (or its Affiliate or branch) shall have delivered  notice thereof to the Agent; provided that any such notice may designate any Person as a  Hedge Bank with respect to all Hedging Obligations arising under a single master  agreement.    “Hedging Obligations” means, with respect to any Person, the obligations of such  Person under any Swap Contract.   “Honor Date” has the meaning specified in Section 2.04(c)(i).  

 

   46      “Immaterial Subsidiary” means any Subsidiary that (a) did not, as of last day of  the Fiscal Quarter of Parent Borrower most recently ended for which financial statements  have been (or were required to be be) delivered pursuant to Section 7.04(a) or (b), have  assets with a value in excess of 2.5% of the Total Assets or revenues representing in  excess of 2.5% of total revenues of Parent Borrower and its Subsidiaries on a  consolidated basis as of such date, and (b) taken together with all such Subsidiaries as of  such date that are not Loan Parties as a result of being Immaterial Subsidiaries, did not  have assets with a value in excess of 5.0% of the Total Assets or revenues representing in  excess of 5.0% of total revenues of Parent Borrower and its Subsidiaries on a  consolidated basis as of such date. Notwithstanding the foregoing, in no event shall a  Borrower be designated an Immaterial Subsidiary under this Agreement.  “Increased Amount” has the meaning specified in Section 7.02(g).  “Increasing Lender” has the meaning specified in Section 2.06(b).   “Incur” means issue, assume, guarantee, incur or otherwise become liable for;  provided, however, that any Indebtedness or Capital Stock of a Person existing at the  time such person becomes a Subsidiary (whether by merger, amalgamation,  consolidation, acquisition or otherwise) shall be deemed to be Incurred by such Person at  the time it becomes a Subsidiary. “Incurred” and “Incurrence” shall have like meanings.  “Incurrence Fixed Charge Coverage Ratio” means for any period, the ratio of  Consolidated EBITDA for such period to EBITDA Fixed Charges for such period;  provided, that in the event that the Parent Borrower or any Restricted Subsidiary Incurs,  repays, repurchases or redeems any Indebtedness or issues, repurchases or redeems  Disqualified Capital Stock or Preferred Stock subsequent to the commencement of the  period for which the Incurrence Fixed Charge Coverage Ratio is being calculated but  prior to the event for which the calculation of the Incurrence Fixed Charge Coverage  Ratio is made, then the Incurrence Fixed Charge Coverage Ratio shall be calculated  giving pro forma effect to such Incurrence, repayment, repurchase or redemption of  Indebtedness, or such issuance, repurchase or redemption of Disqualified Capital Stock  or Preferred Stock, as if the same had occurred at the beginning of the applicable four- quarter period.  For purposes of making the computation referred to above, Investments,  acquisitions, dispositions, mergers, amalgamations, consolidations and discontinued  operations (as determined in accordance with GAAP), in each case with respect to an  operating unit of a business, that the Parent Borrower or any Restricted Subsidiary has  made during the applicable Test Period or subsequent to such Test Period and on or prior  to or simultaneously with the date of calculation of the Incurrence Fixed Charge  Coverage Ratio (each, for purposes of this definition, a “pro forma event”) shall be  calculated on a pro forma basis assuming that all such Investments, acquisitions,  dispositions, mergers, amalgamations, consolidations, or discontinued operations (and the  change of any associated fixed charge obligations and the change in EBITDA resulting  therefrom) had occurred on the first day of such Test Period; provided that,  notwithstanding any classification of any Person, business, assets or operations as  discontinued operations because a definitive agreement for the sale, transfer or other  disposition in respect thereof has been entered into, Parent Borrower shall not make such  

 

   47      computations on a pro forma basis for any period until such sale, transfer or other  disposition has been consummated. If since the beginning of such Test Period any Person  that subsequently became a Restricted Subsidiary or was merged with or into Parent  Borrower or any Restricted Subsidiary since the beginning of such period shall have  consummated any pro forma event, that would have required adjustment pursuant to this  definition, then the Incurrence Fixed Charge Coverage Ratio shall be calculated giving  pro forma effect thereto for such Test Period as if such pro forma event had occurred at  the beginning of the applicable Test Period. If since the beginning of such Test Period  any Restricted Subsidiary is designated an Unrestricted Subsidiary or any Unrestricted  Subsidiary is designated a Restricted Subsidiary, then the Incurrence Fixed Charge  Coverage Ratio shall be calculated giving pro forma effect thereto for such Test Period as  if such designation had occurred at the beginning of the applicable Test Period.  “Indebtedness” or “Debt” means, with respect to any Person:  (1) the principal of any indebtedness of such Person, whether or not  contingent, (a) in respect of borrowed money, (b) evidenced by bonds, notes, debentures  or similar instruments or letters of credit or bankers’ acceptances (or, without duplication,  reimbursement agreements in respect thereof), (c) representing the deferred and unpaid  purchase price of any property (except any such balance that constitutes (i) a trade  payable or similar obligation to a trade creditor Incurred in the ordinary course of  business, (ii) any earn-out obligations until such obligation becomes a liability on the  balance sheet of such Person in accordance with GAAP and (iii) liabilities accrued in the  ordinary course of business), which purchase price is due more than twelve months after  the date of placing the property in service or taking delivery and title thereto, (d) in  respect of Capital Lease Obligations, or (e) representing any Hedging Obligations, if and  to the extent that any of the foregoing indebtedness would appear as a liability on a  balance sheet (excluding the footnotes thereto) of such Person prepared in accordance  with GAAP;  (2) to the extent not otherwise included, any obligation of such Person to be  liable for, or to pay, as obligor, guarantor or otherwise, the obligations referred to in  clause (1) of another Person (other than by endorsement of negotiable instruments for  collection in the ordinary course of business); and  (3) to the extent not otherwise included, Indebtedness of another Person  secured by a Lien on any asset owned by such Person (whether or not such Indebtedness  is assumed by such Person); provided, however, that the amount of such Indebtedness  will be the lesser of:  (a) the Fair Market Value (as determined in good faith by Parent  Borrower) of such asset at such date of determination, and (b) the amount of such  Indebtedness of such other Person;  provided, however, that, notwithstanding the foregoing, Indebtedness shall be  deemed not to include (1) Contingent Obligations incurred in the ordinary course of  business and not in respect of borrowed money; (2) deferred or prepaid revenues; (3)  purchase price holdbacks in respect of a portion of the purchase price of an asset to  satisfy warranty or other unperformed obligations of the respective seller; (4) [Reserved];  

 

   48      (5) trade and other ordinary course payables, accrued expenses and intercompany  liabilities arising in the ordinary course of business; (6) obligations in respect of cash  management services; (7) in the case of Parent Borrower and the Restricted Subsidiaries  (x) all intercompany Indebtedness having a term not exceeding 364 days (inclusive of  any roll-over or extensions of terms) and made in the ordinary course of business and (y)  intercompany liabilities in connection with cash management, tax and accounting  operations of Parent Borrower and the Restricted Subsidiaries; and (8) any obligations  under Hedging Obligations; provided that such agreements are entered into for bona fide  hedging purposes of Parent Borrower or the Restricted Subsidiaries (as determined in  good faith by the board of directors or senior management of Parent Borrower, whether  or not accounted for as a hedge in accordance with GAAP) and, in the case of any foreign  exchange contract, currency swap agreement, futures contract, option contract or other  similar agreement, such agreements are related to business transactions of Parent  Borrower or the Restricted Subsidiaries entered into in the ordinary course of business  and, in the case of any interest rate protection agreement, interest rate future agreement,  interest rate option agreement, interest rate swap agreement, interest rate cap agreement,  interest rate collar agreement, interest rate hedge agreement or other similar agreement or  arrangement, such agreements substantially correspond in terms of notional amount,  duration and interest rates, as applicable, to Indebtedness of Parent Borrower or the  Restricted Subsidiaries Incurred without violation of this Agreement.  Notwithstanding anything in this Agreement to the contrary, Indebtedness shall  not include, and shall be calculated without giving effect to, the effects of Statement of  Financial Accounting Standards No.  133 and related interpretations to the extent such  effects would otherwise increase or decrease an amount of Indebtedness for any purpose  under this Agreement as a result of accounting for any embedded derivatives created by  the terms of such Indebtedness; and any such amounts that would have constituted  Indebtedness under this Agreement but for the application of this sentence shall not be  deemed an Incurrence of Indebtedness under this Agreement.  “Indemnified Taxes” means all (a) Taxes, other than Excluded Taxes, imposed on  or with respect to any payment made by or on account of any obligation of any Loan  Party under any Loan Document and (b) to the extent not otherwise described in  clause (a), Other Taxes.  “Indemnitee” has the meaning specified in Section 10.04(c).   “Independent Financial Advisor” means an accounting, appraisal or investment  banking firm or consultant, in each case of nationally recognized standing, that is, in the  good faith determination of Parent Borrower, qualified to perform the task for which it  has been engaged.  “Index Rate Loan” means any Advance bearing interest at the Base Rate, the  Canadian Base Rate or the Canadian Prime Rate.   “Intellectual Property” means any and all Patents, Copyrights and Trademarks.  

 

   49      “Interest Expense” means, with respect to any Person for any fiscal period,  interest expense of such Person determined in accordance with GAAP for the relevant  period ended on such date.  “Interest Period” means, for each Contract Rate Loan comprising part of the same  Borrowing, the period commencing on the date of such Type of Advance or the date of  the Conversion of any Advance into such Type of an Advance and ending on the last day  of the period selected by the applicable Borrower pursuant to the provisions below and,  thereafter, each subsequent period commencing on the last day of the immediately  preceding Interest Period and ending on the last day of the period selected by such  Borrower pursuant to the provisions below.  The duration of each such Interest Period  shall be 1,  3 or 6 months (or, in the case of a Contract Rate Loan denominated in  Canadian Dollars, 1, 2 or 3 months) (subject, in each case, to availability for the interest  rate applicable to the relevant currency), in each case as such Borrower may, upon notice  received by the Agent in accordance with Section 2.02; provided, however, that:  (i) no Borrower may select any Interest Period which ends after the  Termination Date;  (ii) Interest Periods commencing on the same date for Advances  comprising part of the same Borrowing shall be of the same duration;  (iii) whenever the last day of any Interest Period would otherwise occur  on a day other than a Business Day, the last day of such Interest Period shall be  extended to occur on the next succeeding Business Day, provided, in the case of  any Interest Period for a Contract Rate Loan, that if such extension would cause  the last day of such Interest Period to occur in the next following calendar month,  the last day of such Interest Period shall occur on the next preceding Business  Day;   (iv) [reserved]; and  (v) 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.  “In-Transit Documentation Event” means any date that Availability shall have been  less than 20.0% of the Loan Cap.   “In-Transit Inventory” means Inventory of a Loan Party which is in the  possession of a common carrier and is in transit from (i) a foreign vendor of a Loan Party  from a location outside of the United States or Canada to a location of a Loan Party that  is within the United States or Canada or (ii) a vendor of a Loan Party from a location  within the United States or Canada to a location of a Loan Party within the United States  or Canada.  

 

   50      “Inventory” shall have the meaning provided in the UCC or, as applicable, the  PPSA, and shall also include, without limitation, all: (a) goods which (i) are leased by a  Person as lessor, (ii) are held by a Person for sale or lease or to be furnished under a  contract of service, (iii) are furnished by a Person under a contract of service, or (iv)  consist of raw materials, work in process, or materials used or consumed in a business;  (b) goods of said description in transit; (c) goods of said description which are returned,  repossessed or rejected; and (d) packaging, advertising, and shipping materials related to  any of the foregoing.  “Inventory Reserves” means, without duplication of any other Reserve, such  reserves as may be established from time to time by the Agent in its Permitted Discretion  after consultation with Borrower with respect to the determination of the saleability, at  retail, of the Eligible Inventory, which reflect such other factors as affect the market  value of the Eligible Inventory or which reflect claims and liabilities that the Agent  determines will need to be satisfied in connection with the realization upon the Inventory.  Without limiting the generality of the foregoing, Inventory Reserves may, in the Agent’s  Permitted Discretion after consultation with Borrower, include (but are not limited to)  reserves based on:  (a) obsolescence;  (b) seasonality;  (c) Shrink;  (d) imbalance;  (e) change in Inventory character;  (f) change in Inventory composition;  (g) change in Inventory mix;  (h) mark-downs (both permanent and point of sale);  (i) retail mark-ons and mark-ups inconsistent with prior period practice and  performance, industry standards, current business plans or advertising calendar and  planned advertising events; and  (j) out-of-date and/or expired Inventory.  “Investment Company Act of 1940” has the meaning specified in Section 6.01(k).  “Investment Grade Securities” means:  (1) securities issued or directly and fully guaranteed or insured by the U.S.  government or any agency or instrumentality thereof (other than Cash Equivalents),  

 

   51      (2) securities that have a rating equal to or higher than Baa3 (or equivalent) by  Moody’s and BBB- (or equivalent) by S&P, but excluding any debt securities or loans or  advances between and among Parent Borrower and its Subsidiaries,  (3) investments in any fund that invests exclusively in investments of the type  described in clauses (1) and (2) of this definition which fund may also hold material  amounts of cash pending investment and/or distribution, and  (4) corresponding instruments in countries other than the United States  customarily utilized for high quality investments and in each case with maturities not  exceeding two years from the date of acquisition.  “Investments” means, with respect to any Person, all investments by such Person  in other Persons (including Affiliates) in the form of loans (including guarantees),  advances or capital contributions (excluding accounts receivable, trade credit and  advances to customers and commission, travel and similar advances to officers,  employees and consultants made in the ordinary course of business and any assets or  securities received in satisfaction or partial satisfaction thereof from financially troubled  account debtors to the extent reasonably necessary in order to prevent or limit loss and  any prepayments and other credits to suppliers made in the ordinary course of business),  repayments of intercompany Indebtedness pursuant to clauses (a) and (b) of the definition  of “Junior Indebtedness”, purchases or other acquisitions for consideration of  Indebtedness, Equity Interests or other securities issued by any other Person and  investments that are required by GAAP to be classified on the balance sheet of such  Person in the same manner as the other investments included in this definition to the  extent such transactions involve the transfer of cash or other property.  For purposes of  the definition of “Unrestricted Subsidiary” and Section 7.02(b):  (1) “Investments” shall include the portion (proportionate to Parent  Borrower’s equity interest in such Subsidiary) of the Fair Market Value (as determined in  good faith by Parent Borrower) of the net assets of such Subsidiary at the time that such  Subsidiary is designated an Unrestricted Subsidiary; provided, however, that upon a  redesignation of such Subsidiary as a Restricted Subsidiary, Parent Borrower shall be  deemed to continue to have a permanent “Investment” in an Unrestricted Subsidiary  equal to an amount (if positive) equal to:  (a) its “Investment” in such Subsidiary at the time of such redesignation less  (b) the portion (proportionate to its equity interest in such Subsidiary) of the  Fair Market Value (as determined in good faith by Parent Borrower) of the net assets of  such Subsidiary at the time of such redesignation; and  (2) any property transferred to or from an Unrestricted Subsidiary shall be  valued at its Fair Market Value (as determined in good faith by Parent Borrower) at the  time of such transfer, in each case as determined in good faith by the Board of Directors  of Parent Borrower.   “IRS” means the United States Internal Revenue Service.  

 

   52      “ISP” shall mean, 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).  “Issue” means, with respect to any Letter of Credit, either to issue, or to extend  the expiry of, or to renew, or to increase the amount of, such Letter of Credit, and the  term “Issued” or “Issuance” shall have corresponding meanings.   “Issuing Bank” means Bank of America, JPMorgan Chase Bank, N.A., Citibank,  N.A., HSBC Bank USA, National Association, MUFG Union Bank, N.A. or Morgan  Stanley Bank, N.A. or any other Lender which agrees to become, and is designated as an  Issuing Bank under Section 2.06(c) or any Affiliate or branch thereof as agreed to from  time to time by Parent Borrower and such Issuing Bank, that may from time to time Issue  Letters of Credit for the account of Parent Borrower or any of its Subsidiaries.  “Issuing Commitment” means, as to any Issuing Bank, the amount set forth  opposite such Issuing Bank’s name on Schedule 1.01A under the caption “Issuing  Commitment”, as such amount may be reduced or increased pursuant to the terms hereof.  “Joinder Agreement” means (a) with respect to the joinder of a Domestic  Subsidiary pursuant to Section 7.01(n), a joinder agreement substantially in the form of  Exhibit B to the U.S. Security Agreement and (b) with respect to the joinder of a  Subsidiary organized under the laws of Canada (or and province or territory thereof)  pursuant to Section 7.01(n), a joinder agreement substantially in the form of Exhibit B to  the Amended and Restated Canadian Security Agreement.  “Joint Lead Arrangers” means each of the entities identified on the cover page  hereof as joint lead arrangers.  “Joint Venture” means any Person a portion (but not all) of the Capital Stock of  which is owned directly or indirectly by a Borrower or a Subsidiary thereof but which is  not a Wholly Owned Subsidiary and which is engaged in a business that is similar to or  complementary with the business of Borrowers and their Subsidiaries as permitted under  this Agreement.    “Judgment Currency” has the meaning specified in Section 10.20.  “Junior Indebtedness” means (a) the Senior Notes and any other unsecured  Indebtedness for borrowed money (other than intercompany Indebtedness owing to  Parent Borrower or to a Subsidiary if an Investment in such Subsidiary by the obligor of  such Indebtedness in such amount would be permitted at such time; provided that any  repayment of such Indebtedness will be deemed an Investment in such Subsidiary in such  amount), (b) any Indebtedness which is by its terms subordinated in right of payment or  lien priority to the Obligations (other than intercompany Indebtedness owing to Parent  Borrower or to a Subsidiary if an Investment in such Subsidiary by the obligor of such  Indebtedness in such amount would be permitted at such time; provided that any  repayment of such Indebtedness will be deemed an Investment in such Subsidiary in such  amount) and (c) any Indebtedness secured by Non-ABL Priority Collateral.  

 

   53      “Junior Lien Priority Indebtedness” means Indebtedness of the Loan Parties that  is secured by Liens on the Collateral ranking junior in priority to the Liens securing the  Obligations and the Senior Note; provided that the trustee, collateral agent and/or other  authorized representative for the holders of such Indebtedness shall execute a  junior lien  intercreditor agreement or collateral trust agreement reasonably satisfactory to Agent  reflecting the junior-lien status of the Liens securing such Indebtedness as it relates to the  Collateral.   “Laws” means, collectively, all international, foreign, federal, state, provincial,  territorial, municipal and local statutes, treaties, rules, guidelines, regulations, ordinances,  codes and administrative or judicial precedents or authorities, including the interpretation  or administration thereof by any Governmental Authority charged with the enforcement,  interpretation or administration thereof, and all Governmental Authorizations, in each  case having the force of law.  “L/C Advance” means, with respect to each Lender, such Lender’s funding of its  participation in any L/C Borrowing in accordance with its Commitment Percentage.  All  L/C Advances shall be denominated in Dollars or, as regards to Canadian Borrowers,  Canadian Dollars.  “L/C Borrowing” means an extension of credit resulting from a drawing under  any Letter of Credit which has not been reimbursed on the date when made or refinanced  as a Revolving Credit Borrowing.  All L/C Borrowings shall be denominated in Dollars  or, as regards Canadian Borrowers, Canadian Dollars.  “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance  thereof or extension of the expiry date thereof, or the increase of the amount thereof.  “L/C Obligations” means, as at any date of determination, the aggregate amount  available to be drawn under all outstanding Letters of Credit plus the aggregate of all  Unreimbursed Amounts, including all L/C Borrowings.  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 1.07.  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 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.  “LCA Election” has the meaning specified in Section 1.08.  “LCA Test Date” has the meaning specified in Section 1.08.  “Lease” means any written agreement, pursuant to which a Loan Party is entitled  to the use or occupancy of any space in a structure, land, improvements or premises for  any period of time.  “Lender Party” and “Lender Recipient Party” means any Lender and any Issuing  Bank.  

 

   54      “Lenders” means the Lenders listed on the signature pages hereof as Lenders and  as the Swing Line Lender, as the context may require, and each Eligible Assignee that  shall become a party hereto pursuant to Section 10.07.  “Lending Office” means, as to any Lender, the office or offices of such Lender  described as such in such Lender’s Administrative Questionnaire, or such other office or  offices as a Lender may from time to time notify to the Parent Borrower and the Agent,  which office may include any Affiliate of such Lender or any domestic or foreign branch  of such Lender or such Affiliate.  Unless the context otherwise requires each reference to  a Lender shall include its applicable Lending Office.  “Letter of Credit” means any letter of credit issued hereunder and shall include  the Existing Letters of Credit.  A Letter of Credit may be a Trade Letter of Credit or a  Standby Letter of Credit.  Letters of Credit may be issued in Dollars or in an Alternative  Currency.  “Letter of Credit Application” means an application and agreement for the  issuance or amendment of a Letter of Credit in the form from time to time in use by any  Issuing Bank.  “Letter of Credit Expiration Date” means the day that is seven days prior to the  Termination Date then in effect (or, if such day is not a Business Day, the next preceding  Business Day).  “Letter of Credit Fee” has the meaning specified in Section 2.04(h).  “Letter of Credit Sublimit” means an amount equal to $300,000,000.  The Letter  of Credit Sublimit is part of, and not in addition to, the Revolving Credit Facility.  “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge,  hypothec, security interest or similar encumbrance of any kind in respect of such asset,  whether or not filed, recorded or otherwise perfected under applicable Law (including  any conditional sale or other title retention agreement or any lease in the nature thereof);  provided that in no event shall an operating lease, a license or an agreement to sell be  deemed to constitute a Lien.  “Limited Condition Acquisition” means any purchase or other acquisition, by  merger, amalgamation, consolidation or otherwise, by the Parent Borrower or any  Subsidiary of Equity Interests in, or all or substantially all the assets of (or all or  substantially all the assets constituting a business unit, division, product line or line of  business of), any Person, the consummation of which is not conditioned on the  availability of, or on obtaining, third party financing.  “Limited Condition Acquisition Payment Conditions” means, at the time of  determination with respect to any Limited Condition Acquisition, that (a) no Default or  Event of Default then exists or would arise as a result of entering into such Limited  Condition Acquisition, (b) Availability for the 30 consecutive day period immediately  preceding such date of calculation shall have been not less than the greater of (x) $332.50  

 

   55      million and (y) 17.5% of the Loan Cap and (c) after giving pro forma effect to such  Limited Condition Acquisition (as determined on the date of calculation of the Limited  Condition Acquisition Payment Conditions in accordance with Section 1.08 hereof and  on a pro forma and projected basis through the closing date of such Limited Condition  Acquisition), Availability will be equal to or greater than the greater of (x) $332.50  million and 17.5% of the Loan Cap. At any time when any Advances (but not, for the  avoidance of doubt, L/C Obligations) are outstanding, prior to undertaking any Limited  Condition Acquisition, as evidence of satisfaction of the condition contained in clause (c)  above, the Loan Parties shall deliver to the Agent (x) a Borrowing Base Certificate (i)  updated with respect to the Collateral reported thereon as of the immediately preceding  Fiscal Month ending more than 15 days prior to the signing date of such Limited  Condition Acquisition (provided that, if a Weekly Borrowing Base Delivery Event shall  be continuing, such Borrowing Base Certificate shall be delivered as required pursuant to  Section 7.04(i) hereof) and (ii) prepared on a pro forma basis after giving effect to such  Limited Condition Acquisition, and (y) the projections referred to in clause (b) above,  prepared by a Responsible Officer of Parent Borrower; provided that, if the aggregate  consideration for such Limited Condition Acquisition is less than $10,000,000, the  foregoing Borrowing Base Certificate and pro forma projections shall not be required;  provided; further that nothing herein shall be deemed a waiver of the requirement under  this Agreement of compliance with clauses (a) and (b) above with respect to any Limited  Condition Acquisition, and the consummation of any such Limited Condition Acquisition  by the Loan Parties shall be deemed a representation and warranty by the Loan Parties  that such requirement has been met.  “Liquidation” means the exercise by the Agent of those rights and remedies  accorded to the Agent under the Loan Documents and applicable Law as a creditor of the  Loan Parties with respect to the realization on the Collateral, including (after the  occurrence and during the continuation of an Event of Default) the conduct by the Loan  Parties acting with the consent of the Agent, of any public, private or “going out of  business”, “store closing”, or other similarly themed sale or other disposition of the  Collateral for the purpose of liquidating the Collateral. Derivations of the word  “Liquidation” (such as “Liquidate”) are used with like meaning in this Agreement.   “Loan Cap” means, at any time of determination, the lesser of (a) the Aggregate  Commitments and (b) the Borrowing Base.  “Loan Documents” means, collectively, this Agreement, the Guaranties, any note  delivered pursuant to Section 4.04(d), the Collateral Documents, any Borrowing Base  Certificate, the ABL Intercreditor Agreement or any intercreditor agreement delivered  pursuant to the definition of Junior Lien Priority Indebtedness and each application or  agreement and other documents delivered in connection with Letters of Credit pursuant to  Section 2.04 and any other agreement between or among any Loan Party and the Agent  designated therein as a “Loan Document”, in each case as amended, supplemented or  otherwise modified hereafter from time to time in accordance with the terms thereof.  “Loan Parties” means, collectively, each of the Borrowers and Guarantors from  time to time party hereto.  

 

   56      “Majority Lenders” means, as of any date of determination, Lenders having more  than 50% of the sum of the (a) Total Revolving Credit Outstandings (with the aggregate  amount of each Lender’s risk participation and funded participation in L/C Obligations  and Swing Line Advances being deemed “held” by such Lender for purposes of this  definition) and (b) aggregate unused Revolving Credit Commitments; provided that there  shall be excluded for purposes of making a determination of Majority Lenders the unused  Revolving Credit Commitment of any Defaulting Lender.  “Margin Stock” has the meaning assigned to such term in Regulation U of the  Board of Governors of the Federal Reserve System, as in effect from time to time.   “Material Adverse Change” means any event which has or would reasonably be  expected to have a Material Adverse Effect.  “Material Adverse Effect” means, a material adverse effect on (x) the business,  financial condition or operations of Borrowers and their respective Subsidiaries, taken as  a whole, (y) the ability of Borrowers or the other Loan Parties to perform their payment  obligations under the Loan Documents when due, or (z) the validity or enforceability of  any of the Loan Documents or the rights and remedies of Agent and the Lenders under  any of the Loan Documents.  “Monthly Borrowing Base Delivery Event” means, so long as no Weekly  Borrowing Base Delivery Event has occurred and is continuing, the failure of Parent  Borrower to maintain Availability at least equal to the greater of (x) $900,000,000 and (y)  60.0% of the Loan Cap. For purposes of this Agreement, the occurrence of a Monthly  Borrowing Base Delivery Event shall be deemed continuing until Availability has  exceeded the greater of (x) $900,000,000 and (y) 60.0% of the Loan Cap for thirty (30)  consecutive calendar days, in which case a Monthly Borrowing Base Delivery Event  shall no longer be deemed to be continuing for purposes of this Agreement. The  termination of a Monthly Borrowing Base Delivery Event as provided herein shall in no  way limit, waive or delay the occurrence of a subsequent Monthly Borrowing Base  Delivery Event in the event that the conditions set forth in this definition again arise.  “Moody’s” means Moody’s Investors Service, Inc.  “Multiemployer Plan” means a “multiemployer plan” as defined in Section  4001(a)(3) of ERISA to which a Loan Party or any ERISA Affiliate is making or  accruing an obligation to make contributions or has within any of the preceding five plan  years made or accrued an obligation to make contributions.   “Net Income” means, with respect to any Person, the net income (loss) of such  Person and its Restricted Subsidiaries, determined in accordance with GAAP and before  any reduction in respect of Preferred Stock dividends.   “Net Proceeds” means (a) with respect to any Disposition by any Loan Party, or  any extraordinary receipt received or paid to the account of any Loan Party, the excess, if  any, of (i) the sum of cash and cash equivalents received in connection with such  transaction (including any cash or cash equivalents received by way of deferred payment  

 

   57      pursuant to, or by monetization of, a note receivable or otherwise, but only as and when  so received) over (ii) the sum of (A) the principal amount of any Indebtedness that is  secured by the applicable asset by a Lien permitted hereunder which is senior to the  Agent’s Lien on such asset and that is required to be repaid (or to establish an escrow for  the future repayment thereof) in connection with such transaction (other than  Indebtedness under the Loan Documents), (B) the reasonable and customary out-of- pocket expenses incurred by such Loan Party in connection with such transaction  (including, without limitation, appraisals, and brokerage, legal, title and recording or  transfer tax expenses and commissions) paid by any Loan Party to third parties (other  than Affiliates)) and (C) any funded escrow account established by the Loan Parties to  pay federal, state, provincial and local income or other Taxes estimated to be payable by  any Loan Party as a result thereof (provided that to the extent and at the time any such  amounts are released from such reserve and not applied to pay such Taxes, such amounts  shall constitute Net Proceeds); and  (b)    with respect to the sale or issuance of any Equity Interest by any Loan Party,  or the incurrence or issuance of any Indebtedness by any Loan Party, the excess of (i) the  sum of the cash and cash equivalents received in connection with such transaction over  (ii) the underwriting discounts and commissions, and other reasonable and customary  out-of-pocket expenses, incurred by such Loan Party in connection therewith.  “Non-ABL Priority Collateral” shall mean all present and future right, title and  interest of the Loan Parties in the following types of assets and property, whether now owned or  hereafter acquired, existing or arising and wherever located:    (1) all Equipment, all Intellectual Property, all real property and  interests therein and all Fixtures;  (2) all Capital Stock and other Investment Property (other than  investment property constituting ABL Priority Collateral under clause (4) or (6)  of the definition of such term);  (3) all Commercial Tort Claims that do not relate to ABL Priority  Collateral;  (4) all insurance policies relating to Non-ABL Priority Collateral, but,  for the avoidance of doubt, excluding business interruption insurance and credit  insurance with respect to any Accounts or Credit Card Receivables;  (5) except to the extent constituting ABL Priority Collateral under  clause (6) or (7) of the definition of such term, all documents, all General  Intangibles, Intangibles, all Instruments and all Letter-of-Credit Rights;  (6) all collateral and guarantees given by any other person with respect  to any of the foregoing, and all Supporting Obligations (including Letter-of-Credit  Rights) with respect to any of the foregoing;  

 

   58      (7) all books and Records to the extent relating to any of the  foregoing;  (8) all products and proceeds of the foregoing.    Notwithstanding the foregoing, the term “Non-ABL Priority Collateral” shall not  include any assets referred to in clauses (1) through (5) of the definition of the term  “ABL Priority Collateral”.  All capitalized terms used in this definition but not defined in  this Agreement shall have the meanings set forth in the UCC or the PPSA, as applicable.    “Non-Consenting Lender” shall have the meaning specified in Section 10.01(e).   “Non-Extension Notice Date” has the meaning specified in Section 2.04(b).  “Note” means a promissory note made by any Borrower in favor of a Lender, in  substantially the form of Exhibit B hereto, evidencing the aggregate indebtedness of such  Borrower to such Lender resulting from the Revolving Credit Advances, or Swing Line  Advances, as the case may be, made by such Lender.  “Obligation” means all loans, advances, debts, liabilities and obligations for the  performance of covenants or for payment of monetary amounts (whether or not such  performance is then required or contingent, or such amounts are liquidated or  determinable) owing by any Loan Party (or its Subsidiary) to any Secured Party under  any Loan Document, and all covenants and duties regarding such amounts, of any kind or  nature, present or future, whether or not evidenced by any note, agreement, letter of credit  agreement or other instrument, arising under this Agreement, any of the other Loan  Documents, any Bank Product Documents, any Secured Hedge Agreement (other than  with respect to any Loan Party’s obligations that constitute Excluded Swap Obligations  solely with respect to such Loan Party) or any Secured Supply Chain Financing.  This  term includes all principal, Letter of Credit Obligations, interest (including all interest  that accrues after the commencement of any case or proceeding by or against any Loan  Party in bankruptcy, whether or not allowed in such case or proceeding), fees, Secured  Hedging Obligations (other than with respect to any Loan Party’s Secured Hedging  Obligations that constitute Excluded Swap Obligations solely with respect to such Loan  Party), expenses, attorneys’ fees and any other sum chargeable to any Loan Party under  this Agreement, any of the other Loan Documents, any Bank Product Documents, any  Secured Hedge Agreements or any Secured Supply Chain Financing (including all  monetary obligations that accrue after the commencement of any case or proceeding by  or against any Loan Party in bankruptcy, whether or not allowed in such case or  proceeding).    “OFAC” means the Office of Foreign Assets Control of the United States  Department of the Treasury.   “Officer” means, with respect to any Person, the Chairman of the Board, Chief  Executive Officer, Chief Financial Officer, President, any Executive Vice President,  Senior Vice President or Vice President, the Treasurer or the Secretary of such Person.  

 

   59      “Officer’s Certificate” means, with respect to any Person, a certificate signed on  behalf of such Person by an Officer which meets the requirements set forth in this  Agreement.  “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, L/C  Advance or Loan Document).   “Other Relevant Rate Successor Rate” has the meaning specified in Section  2.09(c).    “Other Taxes” means all present or future stamp, court, documentary, intangible,  recording, filing or similar Taxes that arise from any payment made under, from the  execution, delivery, performance, enforcement or registration of, from the receipt or  perfection of a 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 10.07(h)).  “Outstanding Amount” means (i) with respect to Revolving Credit Advances and  Swing Line Advances on any date, the aggregate outstanding principal amount thereof  after giving effect to any borrowings and prepayments or repayments of Revolving Credit  Advances or Swing Line Advances, as the case may be, occurring on such date; and (ii)  with respect to any L/C Obligations on any date, the amount of such L/C Obligations on  such date after giving effect to any L/C Credit Extension occurring on such date and any  other changes in the aggregate amount of the L/C Obligations as of such date, including  as a result of any reimbursements by the Loan Parties of Unreimbursed Amounts.  “Overadvance” means a Credit Extension to the extent that, immediately after its  having been made, Availability is less than zero.  “Overnight Rate” means, for any day, (a) with respect to any amount denominated  in Dollars, the greater of (i) the Federal Funds Rate and (ii) an overnight rate determined  by the Agent or the applicable Issuing Bank, as the case may be, in accordance with  banking industry rules on interbank compensation, and (b) with respect to any amount  denominated in an Alternative Currency, the rate of interest per annum at which  overnight deposits in the applicable Alternative Currency, in an amount approximately  equal to the amount with respect to which such rate is being determined, would be  offered for such day by a branch or Affiliate of Bank of America in the applicable  offshore interbank market for such currency to major banks in such interbank market.  “Parent Borrower” has the meaning specified in the preamble to this Agreement.  “Participant” has the meaning specified in Section 10.07(d).  

 

   60      “Participant Register” has the meaning specified in Section 10.07(d).   “Participating Member State” means each state so described in any EMU  Legislation.   “Patents” has the meaning specified in the applicable Security Agreements.  “Payment Conditions” means, at the time of determination with respect to any  specified transaction or payment, that:   (a) no Default or Event of Default then exists or would arise as a result of  entering into such transaction or the making such payment,   (b) immediately after giving effect to such transaction or payment, one of the  following tests shall be satisfied:  (i) (1) Availability  for the 30 consecutive day period  immediately preceding such specified transaction or payment shall not  have been less than the greater of $332.50 million and 17.5% of the Loan  Cap, and (2) Availability on the date of such specified transaction or  payment shall not be less than the greater of such amounts; or  (ii) (1) Availability  for the 30 consecutive day period  immediately preceding such specified transaction or payment shall not  have been less than the greater of $237.50 million and 12.5% of the Loan  Cap, (2) Availability on the date of such specified transaction or payment  shall not be less than the greater of such amounts, and (3) the Fixed  Charge Coverage Ratio, based on the most recently completed Test  Period, shall not be less than 1.00 to 1.00; or  (iii) (1) no Revolving Credit Advances (x) shall have been  outstanding for the 30 consecutive day period immediately preceding such  specified transaction or payment, and (2) such transaction or payment is to  be funded solely with cash on hand; and  (c) unless Parent Borrower shall be in compliance with clause (b)(iii) above, no  later than the date of effectiveness of such transaction or payment (the “Effective Date”),  (1) Parent Borrower has notified the Agent of any transaction made in reliance on the  Payment Conditions with a value of greater than $75,000,000 (or in the case of any  Investment in a Restricted Subsidiary, $150,000,000) (which notice shall be deemed to  have been provided on the Effective Date if received by the Agent within fifteen (15)  Business Days after the Effective Date) and (2) if such transaction has a value of greater  than $125,000,000 (or, in the case of any Investment in a Restricted Subsidiary,  $200,000,000), a financial officer of Parent Borrower has delivered an Officer’s  Certificate to the Agent certifying as to compliance with the preceding clauses (a) and (b)  and demonstrating (in reasonable detail) the calculations required thereby (which  Officer’s Certificate shall be deemed to have been delivered on the Effective Date if  received by the Agent within fifteen (15) Business Days after the Effective Date).   

 

   61      “PBA” means the Pension Benefits Act (Ontario) or any other Canadian federal or  provincial pension benefits standards legislation applicable to a Canadian Pension Plan.  “Permitted Acquisition” means any Acquisition in which the following conditions  are satisfied:  (a)    (i) with respect to any Acquisition other than a Limited Condition  Acquisition, the Loan Parties shall have satisfied the Payment Conditions, and (ii) with  respect to a Limited Condition Acquisition, the Loan Parties shall have satisfied the  Limited Condition Acquisition Payment Conditions and such satisfaction shall be  determined in accordance with Section 1.08;  (b)    if proceeds of the Advances are used to pay all or a portion of the  consideration for such Acquisition, such Acquisition shall have been approved by the  Board of Directors of the Person (or similar governing body if such Person is not a  corporation) which is the subject of such Acquisition and such Person shall not have  announced that it will oppose such Acquisition or shall not have commenced any action  which alleges that such Acquisition shall violate applicable Law; and  (c)    if proceeds of the Advances are used to pay all or a portion of the  consideration for such Acquisition, after giving effect to such Acquisition, the Loan  Parties, on a Consolidated basis, shall be Solvent.  “Permitted Discretion” means a determination made by the Agent in the exercise  of its reasonable credit judgment, exercised in good faith in accordance with customary  business practices for comparable asset-based lending transactions in the retail industry.  “Permitted Investments” means:  (1) any Investment in Parent Borrower or any Restricted Subsidiary; provided  that the aggregate amount of Investments by Loan Parties in Restricted Subsidiaries that  are not Loan Parties in reliance on this Clause (1) shall not exceed (when combined with  Investments made by Loan Parties in Subsidiaries that are not (or do not become in  connection with such transaction) Loan Parties in reliance on Clauses (3), (21) and (22)  of the definition of Permitted Investment) the greater of $150.0 million and 9.5% of  Consolidated EBITDA; provided, further that, upon notification to the Agent, the dollar  amount set forth in the foregoing proviso shall be reset at the greater of $150.0 million  and 9.5% of Consolidated EBITDA on any such date as the Payment Conditions become  satisfied;  (2) any Investment in Cash Equivalents or Investment Grade Securities;  (3) any Permitted Acquisition; provided that the aggregate amount of  Investments by Loan Parties in Restricted Subsidiaries that are not Loan Parties (or do  not merge into a Loan Party in connection with such transaction) in reliance on this  Clause (3) shall not exceed (when combined with Investments made by Loan Parties in  Subsidiaries that are not (or do not become in connection with such transaction) Loan  Parties in reliance on Clauses (1), (21) and (22) of the definition of Permitted Investment)  

 

   62      the greater of $150.0 million and 9.5% of Consolidated EBITDA; provided, further that,  upon notification to the Agent, the dollar amount set forth in the foregoing proviso shall  be reset at the greater of $150.0 million and 9.5% of Consolidated EBITDA on any such  date as the Payment Conditions become satisfied;  (4) any Investment in securities or other assets not constituting Cash  Equivalents and received in connection with any disposition of assets permitted by  Section 7.02(d);  (5) any Investment existing on the Restatement Date or an Investment  consisting of any extension, modification or renewal of any Investment existing on the  Restatement Date; provided that the amount of any such Investment may be increased (x)  as required by the terms of such Investment as in existence on the Restatement Date or  (y) as otherwise permitted under this Agreement;  (6) loans and advances to officers, directors, employees or consultants of  Parent Borrower or any of its Subsidiaries (i) in the ordinary course of business in an  aggregate outstanding amount (valued at the time of the making thereof, and without  giving effect to any write-downs or write-offs thereof) not to exceed $25.0 million at the  time of Incurrence, (ii) in respect of payroll payments and expenses in the ordinary  course of business and (iii) in connection with such Person’s purchase of Equity Interests  of Parent Borrower or any direct or indirect parent of Parent Borrower solely to the extent  that the amount of such loans and advances shall be contributed to Parent Borrower in  cash as common equity;  (7) any Investment acquired by Parent Borrower or any Restricted Subsidiary  (a) in exchange for any other Investment or accounts receivable held by Parent Borrower  or such Restricted Subsidiary in connection with or as a result of a bankruptcy, workout,  reorganization or recapitalization of the issuer of such other Investment or accounts  receivable, or (b) as a result of a foreclosure by Parent Borrower or any Restricted  Subsidiary with respect to any secured Investment or other transfer of title with respect to  any secured Investment in default, or as a result of a Bail-In Action with respect to any  contractual counterparty of Parent Borrower or any Restricted Subsidiary;  (8) Hedging Obligations permitted under Section 7.02(a)(ii)(10);  (9) [Reserved];  (10) additional Investments by Parent Borrower or any Restricted Subsidiary  having an aggregate Fair Market Value (as determined in good faith by Parent Borrower),  taken together with all other Investments made pursuant to this clause (10) that are at that  time outstanding, not to exceed the greater of $150.0 million and 9.5% of Consolidated  EBITDA; provided, however, that if any Investment pursuant to this clause (10) is made  in any Person that is not a Loan Party at the date of the making of such Investment and  such Person becomes a Loan Party after such date, such Investment shall thereafter be  

 

   63      deemed to have been made pursuant to clause (1) above and shall cease to have been  made pursuant to this clause (10) for so long as such Person continues to be a Loan Party;    (11) [Reserved];  (12) Investments the payment for which consists of Equity Interests of Parent  Borrower (other than Disqualified Capital Stock) or any direct or indirect parent of Parent  Borrower, as applicable; provided, however, that such Equity Interests will not increase  the amount available for Restricted Payments under 7.02(b)(ii)(8);  (13) any transaction to the extent it constitutes an Investment that is permitted  by and made in accordance with the provisions of Section 7.02(e)(ii) (except transactions  described in clauses (2), (4), (6), (8)(B) and (15) of Section 7.02(e)(ii));  (14) guarantees issued in accordance with Section 7.02(a) and Section 7.01(n)  including, without limitation, any guarantee or other obligation issued or incurred under  this Agreement in connection with any letter of credit issued for the account of Parent  Borrower or any of its Subsidiaries (including with respect to the issuance of, or  payments in respect of drawings under, such letters of credit);  (15) Investments consisting of or to finance purchases and acquisitions of  inventory, supplies, materials, services or equipment or purchases of contract rights or  licenses or leases of intellectual property;   (16) [Reserved];   (17) [Reserved];   (18) Investments of a Restricted Subsidiary acquired after the Restatement  Date or of an entity merged into, amalgamated with, or consolidated with Parent  Borrower or a Restricted Subsidiary in a transaction that is not prohibited by Section  7.02(h) after the Restatement Date to the extent that such Investments were not made in  contemplation of such acquisition, merger, amalgamation or consolidation and were in  existence on the date of such acquisition, merger, amalgamation or consolidation;  (19) Investments in the ordinary course of business consisting of Uniform  Commercial Code Article 3 endorsements for collection or deposit and Uniform  Commercial Code Article 4 customary trade arrangements with customers;  (20) advances in the form of a prepayment of expenses, so long as such  expenses are being paid in accordance with customary trade terms of Parent Borrower or  the Restricted Subsidiaries;  (21)  Investments in Joint Ventures or Unrestricted Subsidiaries having an  aggregate Fair Market Value (as determined in good faith by Parent Borrower), taken  together with all other Investments made pursuant to this clause (21) that are at that time  outstanding, not to exceed (x) $50.0 million, plus (y) an amount equal to any returns  (including dividends, interest, distributions, returns of principal, profits on sale,  

 

   64      repayments, income and similar amounts) actually received in respect of any such  Investment (with the Fair Market Value each Investment being measured at the time  made and without giving effect to subsequent changes in value); provided that the  aggregate amount of Investments made in reliance on this Clause (21) shall not exceed  (when combined with Investments made by Loan Parties in Subsidiaries that are not (or  do not become in connection with such transaction) Loan Parties in reliance on Clauses  (1), (3) and (22) of the definition of Permitted Investment) the greater of $150.0 million  and 9.5% of Consolidated EBITDA; provided, however, that if any Investment pursuant  to this clause (21) is made in any Person that is not a Loan Party at the date of the making  of such Investment and such Person becomes a Loan Party after such date, such  Investment shall thereafter be deemed to have been made pursuant to clause (1) above  and shall cease to have been made pursuant to this clause (21) for so long as such Person  continues to be a Loan Party; provided, further that, upon notification to the Agent, the  dollar amount set forth in the foregoing proviso shall be reset at the greater of $150.0  million and 9.5% of Consolidated EBITDA on any such date as the Payment Conditions  become satisfied;  (22) any Investment in any Subsidiary of Parent Borrower or any Joint Venture  in connection with intercompany cash management arrangements or related activities  arising in the ordinary course of business; provided that the aggregate amount of  Investments made by Loan Parties in Subsidiaries or joint ventures that are not Loan  Parties in reliance on this Clause (22) shall not exceed (when combined with Investments  made by Loan Parties in Subsidiaries that are not (or do not become in connection with  such transaction) Loan Parties in reliance on Clauses (1), (3) and (21) of the definition of  Permitted Investment) the greater of $150.0 million and 9.5% of Consolidated EBITDA;  provided, however, that if any Investment pursuant to this clause (22) is made in any  Person that is not a Loan Party at the date of the making of such Investment and such  Person becomes a Loan Party after such date, such Investment shall thereafter be deemed  to have been made pursuant to clause (1) above and shall cease to have been made  pursuant to this clause (22) for so long as such Person continues to be a Loan Party;  provided, further that, upon notification to the Agent, the dollar amount set forth in the  foregoing proviso shall be reset at the greater of $150.0 million and 9.5% of Consolidated  EBITDA on any such date as the Payment Conditions become satisfied;  (23) Guarantied Obligations of any Loan Party or any Restricted Subsidiary of  leases or of other obligations that do not constitute Indebtedness, in each case entered  into in the ordinary course of business; and  (24) subject to Pro Forma Compliance with the Payment Conditions, any other  Investments.   “Permitted Liens” means, with respect to any Person:  (1) pledges, bonds or deposits and other Liens granted by such Person under  workmen’s compensation laws, unemployment or employment insurance laws or similar  legislation, or good faith deposits in connection with bids, tenders, contracts (other than  for the payment of Indebtedness) or leases to which such Person is a party, or deposits to  

 

   65      secure public or statutory obligations of such Person or deposits of cash or U.S. or  Canadian government bonds to secure surety or appeal bonds, performance and return of  money bonds, or deposits as security for contested Taxes or import duties or for the  payment of rent, in each case Incurred in the ordinary course of business;  (2) Liens imposed by law, such as landlords’, carriers’, warehousemen’s,  mechanics’, materialmen’s, repairmen’s, construction or other like Liens securing  obligations that are not overdue by more than 45 days or that are being contested in good  faith by appropriate proceedings or other Liens arising out of judgments or awards  against such Person with respect to which such Person shall then be proceeding with an  appeal or other proceedings for review;  (3) Liens for Taxes not yet overdue by more than 45 days, or that are being  contested in good faith by appropriate proceedings, if adequate reserves with respect  thereto have been provided in accordance with GAAP;  (4) deposits to secure performance and surety bonds or bid bonds or with  respect to other regulatory requirements or letters of credit, bankers’ acceptances or  similar obligations (other than Indebtedness for borrowed money) issued pursuant to the  request of and for the account of such Person in the ordinary course of its business;  (5) minor survey exceptions, minor encumbrances, trackage rights, special  assessments, easements or reservations of, or rights of others for, licenses, rights-of-way,  sewers, electric lines, telegraph and telephone lines and other similar purposes, servicing  agreements, development agreements, site plan agreements and other similar  encumbrances incurred in the ordinary course of business or zoning or other restrictions  as to the use of real properties or Liens incidental to the conduct of the business of such  Person or to the ownership of its properties which were not Incurred in connection with  Indebtedness and which do not in the aggregate materially adversely affect the value of  said properties or materially impair their use in the operation of the business of such  Person;  (6) (A) Liens on assets of a Subsidiary that is not a Loan Party securing  Indebtedness of a Subsidiary that is not a Loan Party permitted to be Incurred pursuant to  Section 7.02(a);  (B) Liens on Non-ABL Priority Collateral securing any Indebtedness  permitted to be Incurred by this Agreement (such Indebtedness, “Specified Secured  Indebtedness”) if, as of the date such Indebtedness was Incurred, and after giving pro  forma effect thereto and the application of the net proceeds therefrom (but without  netting the proceeds thereof), the Consolidated Secured Net Leverage Ratio of Parent  Borrower does not exceed 2.75 to 1.00; provided that (I) any Liens on the ABL Priority  Collateral securing such Specified Secured Indebtedness shall be junior to the Liens on  the ABL Priority Collateral securing the Obligations pursuant to an ABL Intercreditor  Agreement and/or a junior lien intercreditor agreement or collateral trust agreement  reasonably satisfactory to Agent reflecting the junior-lien status of the Liens securing  such Indebtedness as it relates to the ABL Priority Collateral, (II) no such Liens on ABL  

 

   66      Priority Collateral securing Specified Secured Indebtedness may be incurred unless the  Obligations shall have been secured by valid and perfected Liens on the Non-ABL  Priority Collateral (other than any Real Estate) that secures such Specified Secured  Indebtedness (the requirement to secure the Obligations by valid and perfected Liens on  such Non-ABL Priority Collateral shall be referred to herein as the “Collateral  Requirement”), which Liens on the Non-ABL Priority Collateral may be subordinated to  the Liens on the Non-ABL Priority Collateral securing such Specified Secured  Indebtedness pursuant to an ABL Intercreditor Agreement (and any such Non-ABL  Priority Collateral that shall become subject to Liens securing the Obligations in  accordance with this clause (II) shall continue to constitute “Non-ABL Priority  Collateral” for all purposes of this Agreement), (III) the Specified Secured Indebtedness  secured by such Liens shall not be secured by any property or assets of Parent Borrower  or any Restricted Subsidiary other than Collateral (or assets that will become Collateral in  accordance with this definition), (IV) the final maturity date of any such Specified  Secured Indebtedness shall be no earlier than the 91 days after the Termination Date, and  (V) none of the obligors or guarantors with respect to such Specified Secured  Indebtedness shall be a Person that is not a Loan Party;  (C) Liens securing obligations in respect of Indebtedness permitted to be  Incurred pursuant to clause (4) or (14) (to the extent such guarantees are issued in respect  of any Indebtedness) of Section 7.02(a)(ii); provided that, in the case of clause (14) any  Lien on the ABL Priority Collateral in reliance on this clause (6)(C) shall be junior to the  Liens on the ABL Priority Collateral securing the Obligations pursuant to the ABL  Intercreditor Agreement and/or a junior lien intercreditor agreement or collateral trust  agreement reasonably satisfactory to Agent reflecting the junior-lien status of the Liens  securing such Indebtedness as it relates to ABL Priority Collateral;  (D) Liens on ABL Priority Collateral securing any Indebtedness permitted to  be Incurred by this Agreement if, as of the date such Indebtedness was Incurred, and after  giving pro forma effect thereto and the application of the net proceeds therefrom (but  without netting the proceeds thereof), the Consolidated Secured Net Leverage Ratio of  Parent Borrower does not exceed 2.75 to 1.00; provided that (I) any Lien on the ABL  Priority Collateral in reliance on this clause (6)(D) shall be junior to the Liens on the  ABL Priority Collateral, as applicable, securing the Obligations pursuant to the ABL  Intercreditor Agreement and/or a junior lien intercreditor agreement or collateral trust  agreement reasonably satisfactory to Agent reflecting the junior-lien status of the Liens  securing such Indebtedness as it relates to the ABL Priority Collateral, (II) the  Indebtedness secured by such Liens shall not be secured by any property or assets of  Parent Borrower or any Restricted Subsidiary other than ABL Priority Collateral, (III) the  final maturity date of any such Indebtedness shall be no earlier than the 91 days after the  

 

   67      Termination Date, and (IV) none of the obligors or guarantors with respect to such  Indebtedness shall be a Person that is not a Loan Party;  (E) Liens created pursuant to the Collateral Documents or otherwise securing  the Obligations;  (7) Liens existing on the Restatement Date (other than Liens securing the  Senior Notes);  (8) Liens on assets, property or shares of stock of a Person at the time such  Person becomes a Subsidiary; provided, however, that such Liens are not created or  Incurred in connection with, or in contemplation of, such other Person becoming such a  Subsidiary; provided, further, however, that such Liens may not extend to any other  property owned by Parent Borrower or any Restricted Subsidiary (other than pursuant to  after-acquired property clauses in effect with respect to such Lien at the time of  acquisition on property of the type that would have been subject to such Lien  notwithstanding the occurrence of such acquisition); provided, further, that any Lien on  assets that would otherwise be included in the Borrowing Base in reliance on this clause  (8) shall be junior to the Liens on the ABL Priority Collateral securing the Obligations  pursuant to the ABL Intercreditor Agreement and/or a junior lien intercreditor agreement  or collateral trust agreement reasonably satisfactory to the Agent reflecting the junior-lien  status of the Liens securing such Indebtedness as it relates to ABL Priority Collateral;   (9) Liens on assets or property at the time Parent Borrower or a Restricted  Subsidiary acquired the assets or property, including any acquisition by means of a  merger, amalgamation or consolidation with or into Parent Borrower or any Restricted  Subsidiary; provided, however, that such Liens are not created or Incurred in connection  with, or in contemplation of, such acquisition; provided, further, however, that the Liens  may not extend to any other property owned by Parent Borrower or any Restricted  Subsidiary (other than pursuant to after-acquired property clauses in effect with respect to  such Lien at the time of acquisition on property of the type that would have been subject  to such Lien notwithstanding the occurrence of such acquisition); provided, further, that  any Lien on assets that would otherwise be included in the Borrowing Base in reliance on  this clause (9) shall be junior to the Liens on the ABL Priority Collateral securing the  Obligations pursuant to the ABL Intercreditor Agreement and/or a junior lien  intercreditor agreement or collateral trust agreement reasonably satisfactory to Agent  reflecting the junior-lien status of the Liens securing such Indebtedness as it relates to  ABL Priority Collateral;  (10) [Reserved];  (11) Liens securing Hedging Obligations (and, for the avoidance of doubt,  Swap Obligations) not incurred in violation of this Agreement;  (12) [Reserved];  

 

   68      (13) leases, subleases, licenses and sublicenses of real property which do not  materially interfere with the ordinary conduct of the business of Parent Borrower or any  of the Restricted Subsidiaries;  (14) Liens arising from Uniform Commercial Code financing statement filings  (or equivalent filings including under the PPSA) regarding operating leases or other  obligations not constituting Indebtedness;  (15) Liens in favor of Parent Borrower or any Loan Party;  (16) [Reserved];  (17) pledges and deposits and other Liens made in the ordinary course of  business to secure liability to insurance carriers;  (18) Liens on the Equity Interests of Unrestricted Subsidiaries;  (19) leases or subleases, and licenses or sublicenses (including with respect to  intellectual property) granted to others in the ordinary course of business, and Liens on  real property which is not owned but is leased or subleased by Parent Borrower or any  Restricted Subsidiary;  (20) Liens to secure any refinancing, refunding, extension, renewal or  replacement (or successive refinancings, refundings, extensions, renewals or  replacements) as a whole, or in part, of any Indebtedness secured by any Lien referred to  in clauses (6)(B), (6)(C), (6)(D), (7), (8), (9), (11), (15), (25) and (35) of this definition;  provided, however, that (x) such new Lien shall be limited to all or part of the same  property (including any after acquired property to the extent it would have been subject to  the original Lien) that secured the original Lien (plus improvements on and accessions to  such property, proceeds and products thereof, customary security deposits and any other  assets pursuant to the after-acquired property clauses to the extent such assets secured (or  would have secured) the Indebtedness being refinanced, refunded, extended, renewed or  replaced), and (y) the Indebtedness secured by such Lien at such time is not increased to  any amount greater than the sum of (A) the outstanding principal amount (or accreted  value, if applicable) described under clauses (6)(B), 6(C), (6)(D), (7), (8), (9), (10), (11),  (15), (25) and (35) at the time the original Lien became a Permitted Lien under this  Agreement and, in the case of any Lien on Collateral, shall not have a greater priority  level with respect to Liens securing the Obligations that the Liens securing the  Indebtedness so refinanced, refunded, extended, renewed or replaced, (B) unpaid accrued  interest and premiums (including tender premiums), and (C) an amount necessary to pay  any underwriting discounts, defeasance costs, commissions, fees and expenses related to  such refinancing, refunding, extension, renewal or replacement; provided, further,  however, that (X) in the case of any Liens to secure any refinancing, refunding, extension  or renewal of Indebtedness secured by a Lien referred to in clause (6)(B) or (6)(D), the  principal amount of any Indebtedness Incurred for such refinancing, refunding, extension  or renewal shall be deemed secured by a Lien under clause (6)(B) or (6)(D), as  applicable, and not this clause (20) for purposes of determining the principal amount of  

 

   69      Indebtedness outstanding under clause (6)(B) and (6)(D) and (Y) in the case of Liens to  secure any refinancing, refunding, extension or renewal of Indebtedness secured by a  Lien referred to in clause (6)(B), (6)(D), (8), (9) or (15), such new Lien shall have  priority equal to or more junior than the Lien securing such refinanced, refunded,  extended or renewed Indebtedness;  (21) except to the extent the applicable equipment constitutes Borrowing Base  Collateral, Liens on equipment of Parent Borrower or any Restricted Subsidiary granted  in the ordinary course of business to Parent Borrower’s or such Restricted Subsidiary’s  client at which such equipment is located;  (22) judgment and attachment Liens not giving rise to an Event of Default and  notices of lis pendens and associated rights related to litigation being contested in good  faith by appropriate proceedings and for which adequate reserves have been made;  (23) Liens arising out of conditional sale, title retention, consignment or similar  arrangements for the sale or purchase of goods entered into in the ordinary course of  business;  (24) Liens incurred to secure cash management services or to implement cash  pooling arrangements in the ordinary course of business;  (25) Liens incurred to secure Junior Indebtedness in an amount not to exceed  the then available incremental capacity described in 2.06(b);  (26) any encumbrance or restriction (including put and call arrangements) with  respect to Capital Stock of any joint venture or similar arrangement securing obligations  of such joint venture or pursuant to any joint venture or similar agreement;  (27) any amounts held by a trustee in the funds and accounts under any  indenture issued in escrow pursuant to customary escrow arrangements pending the  release thereof, or under any indenture pursuant to customary discharge, redemption or  defeasance provisions;  (28) Liens (i) arising by virtue of any statutory or common law provisions  relating to banker’s Liens, rights of set-off or similar rights and remedies as to deposit  accounts or other funds maintained with a depository or financial institution, (ii)  attaching to commodity trading accounts or other commodity brokerage accounts  incurred in the ordinary course of business or (iii) encumbering reasonable customary  initial deposits and margin deposits and similar Liens attaching to brokerage accounts  incurred in the ordinary course of business and not for speculative purposes;  (29) Liens (i) in favor of credit card companies pursuant to agreements  therewith and (ii) in favor of customers;  (30) [reserved];  

 

   70      (31) Liens that are contractual rights of set-off relating to purchase orders and  other agreements entered into with customers, suppliers or service providers of Parent  Borrower or any Restricted Subsidiary in the ordinary course of business;  (32) in the case of real property that constitutes a leasehold or subleasehold  interest, (x) any Lien to which the fee simple interest (or any superior leasehold interest)  is or may become subject and any subordination of such leasehold or subleasehold  interest to any such Lien in accordance with the terms and provisions of the applicable  leasehold or subleasehold documents, and (y) any right of first refusal, right of first  negotiation or right of first offer which is granted to the lessor or sublessor;  (33) agreements to subordinate any interest of Parent Borrower or any  Restricted Subsidiary in any accounts receivable or other prices arising from inventory  consigned by Parent Borrower or any such Restricted Subsidiary pursuant to an  agreement entered into in the ordinary course of business;  (34) Liens on securities that are the subject of repurchase agreements  constituting Cash Equivalents under clause (4) of the definition thereof;  (35) [reserved];  (36) Liens securing insurance premium financing arrangements; provided that  such Liens are limited to the applicable unearned insurance premiums;  (37) Liens on Collateral securing Junior Lien Priority Indebtedness permitted  to be incurred under Section 7.02(a)(ii)(23); and  (38) solar power purchase agreements and the stationary battery services  agreement related to Parent Borrower’s distribution center located in Fresno, California  and the payment-in-lieu-of-tax agreement related to Parent Borrower’s distribution center  located  in Fishkill, New York.   “Permitted Overadvance” means an Overadvance made by the Agent, in its  discretion, which:  (a)    is made to maintain, protect or preserve the Collateral and/or the Secured  Parties’ rights under the Loan Documents or which is otherwise for the benefit of the  Secured Parties;   (b)    is made to enhance the likelihood of, or to maximize the amount of,  repayment of any Obligation;  (c)    is made to pay any other amount chargeable to any Loan Party hereunder;  and  (d)    together with all other Permitted Overadvances then outstanding, shall not  (i) exceed ten percent (10%) of the Borrowing Base at any time and (ii) unless a  

 

   71      Liquidation is occurring, remain outstanding for more than forty-five (45) consecutive  Business Days, unless in each case, the Majority Lenders otherwise agree;  provided, however, that the foregoing shall not (i) modify or abrogate any of the  provisions of Section 2.04 regarding the Lenders’ obligations with respect to Letters of  Credit or Section 2.04 regarding the Lenders’ obligations with respect to Swing Line  Advances, or (ii) result in any claim or liability against the Agent (regardless of the  amount of any Overadvance) for Unintentional Overadvances and such Unintentional  Overadvances shall not reduce the amount of Permitted Overadvances allowed  hereunder, and further provided that in no event shall the Agent make an Overadvance, if  after giving effect thereto, the principal amount of the Credit Extensions would exceed  the Aggregate Commitments (as in effect prior to any termination of the Commitments  pursuant to Section 2.06(b)).  “Person” means an individual, partnership, limited liability company, unlimited  liability company, corporation (including a business trust), joint stock company, trust,  unincorporated association, joint venture or other entity, or a government or any political  subdivision or agency thereof.  “Plan” means an employee benefit plan (other than a Multiemployer Plan)  maintained by a Loan Party or any ERISA Affiliate for its employees and subject to Title  IV of ERISA.  “Platform” has the meaning set forth in Section 7.04.  “PPSA” means the Personal Property Security Act (Ontario) (or any successor  statute) or similar legislation (including the Civil Code of Quebec) of any other Canadian  jurisdiction the laws of which are required by such legislation to be applied in connection  with the issue, perfection, effect of perfection, enforcement, enforceability, opposability,  validity or effect of security interests or other applicable Lien.  “Preferred Stock” means any Equity Interest with preferential right of payment of  dividends or upon liquidation, dissolution, or winding up.  “Pro Forma Compliance” means, with respect to any determination for any period  and any transaction, that such determination shall be made by giving pro forma effect to  each such transaction, as if each such transaction had been consummated on the first day  of such period, based on, in the case of determinations made in reliance on pro-forma  financial statement calculations only, historical results accounted for in accordance with  GAAP and, to the extent applicable, reasonable assumptions that are specified in detail in  the relevant compliance certificate, financial statement or other document provided to  Agent or any Lender in connection herewith (which shall be prepared by Parent Borrower  in good faith (subject to the approval of the Agent, not to be unreasonably withheld)) and  for such purposes historical financial statements shall be recalculated as if such  transaction had been consummated at the beginning of the applicable period, and any  Indebtedness or other liabilities to be incurred, assumed or repaid had been incurred,  assumed or repaid at the beginning of such period (and assuming that such Indebtedness  

 

   72      to be incurred bears interest during any portion of the applicable measurement period  prior to the relevant acquisition at the weighted average of the interest rates applicable to  such Indebtedness incurred during such period) and, to the extent pro forma financial  statements are required to be prepared by Parent Borrower under Regulation S-X of the  Securities Act of 1933 (“Reg. S-X”) reflecting such transaction for any period, all pro  forma calculations made hereunder with respect to such transaction and for such period  shall be in conformity with Reg. S-X at all times after such pro-forma financial  statements reflecting such transactions are required to be filed by Parent Borrower under  Reg. S-X.   “Public Lender” has the meaning set forth in Section 7.04.  “QFC Credit Support” has the meaning specified in Section 10.24.   “Real Estate” means all Leases and all land, together with the buildings,  structures, parking areas, and other improvements thereon, now or hereafter owned by  any Loan Party, including all easements, rights-of-way, and similar rights relating thereto  and all leases, tenancies, and occupancies thereof.  “Recipient” has the meaning specified in Section 10.11.  “Refinancing Indebtedness” has the meaning specified in Section 7.02(a)(ii)(15).  “Refunding Capital Stock” has the meaning specified in Section 7.02(b)(ii)(2).  “Register” has the meaning specified in Section 10.07(c).  “Regulated Bank” means a (x) commercial bank with a consolidated combined  capital and surplus of at least $5,000,000,000 or (y) any Affiliate of a Person set forth in  clause (x) above to the extent that (1) all of the Capital Stock of such Affiliate is directly  or indirectly owned by either (A) such Person set forth in clause (x) above or (B) a parent  entity that also owns, directly or indirectly, all of the Capital Stock of such Person set  forth in clause (x) above and (2) such Affiliate is a securities broker or dealer registered  with the SEC under Section 15 of the Exchange Act.  “Related Parties” means, with respect to any Person, such Person’s Affiliates and  the partners, directors, officers, employees, agents, trustees and advisors of such Person  and of such Person’s Affiliates.  “Relevant Rate” shall mean with respect to any Credit Extension denominated in  (a) Dollars, Term SOFR, (b) Sterling, SONIA, (c) Euros, EURIBOR, (d) Yen, TIBOR  and (e) Canadian Dollars, the BA Rate, as applicable.   “Removal Effective Date” has the meaning specified in Section 9.06(b).  “Request for Credit Extension” means (a) with respect to a Borrowing, conversion  or continuation of Revolving Credit Advances, a Committed Advance Notice, (b) with  

 

   73      respect to an L/C Credit Extension, a Letter of Credit Application, and (c) with respect to  a Swing Line Advance, a Swing Line Advance Notice.  “Requirements of Law” means, with respect to any Person, all laws, constitutions,  statutes, ordinances, rules and regulations, all orders, writs, decrees, injunctions,  judgments, determinations, and awards of an arbitrator, a court or any other  Governmental Authority, and all Governmental Authorizations, binding upon or  applicable to such Person or to any of its properties, assets or businesses.  “Rescindable Amount” has the meaning specified in Section 4.01(c).   “Reserves” means, without duplication, all Inventory Reserves and Availability  Reserves.  “Resignation Effective Date” has the meaning specified in Section 9.06(a).  “Resolution Authority” means an EEA Resolution Authority or, with respect to  any UK Financial Institution, a UK Resolution Authority.   “Responsible Officer” means, with respect to any certificate, report or notice to be  delivered or given hereunder, unless the context otherwise requires, the president, chief  executive officer, chief financial officer or treasurer of the Parent Borrower or other  executive officer of the Parent Borrower who in the normal performance of his or her  operational duties would have knowledge of the subject matter relating to such  certificate, report or notice and, solely for purposes of notices given pursuant to Article  II, any other officer or employee of the applicable Loan Party so designated by any of the  foregoing officers in a notice to the Agent or any other officer or employee of the  applicable Loan Party designated in or pursuant to an agreement between the applicable  Loan Party and the Agent.  “Restatement Date” means July 13, 2022.  “Restricted Cash” means cash and Cash Equivalents held by Parent Borrower and  the Restricted Subsidiaries that would appear as “restricted” on a consolidated balance  sheet of Parent Borrower or any of the Restricted Subsidiaries.  “Restricted Investment” means any Investment that is not a Permitted Investment.  “Restricted Payments” has the meaning specified in Section 7.02(b)(i).  “Restricted Subsidiary” means, with respect to any Person, any Subsidiary of such  Person other than an Unrestricted Subsidiary of such Person.  Unless the context  otherwise requires, the term “Restricted Subsidiary” shall mean a Restricted Subsidiary  of Parent Borrower.  Each Loan Party shall constitute a Restricted Subsidiary.  “Retired Capital Stock” has the meaning specified in Section 7.02(b)(ii)(2).  

 

   74      “Revaluation Date” means (a) with respect to any Revolving Credit Advance,  each of the following:  (i) each date of an Alternative Currency Advance or a BA Rate  Advance, (ii) each date of a continuation of an Alternative Currency Term Rate Advance  or of a BA Rate Advance pursuant to Section 2.02, and (iii) such additional dates as the  Agent shall reasonably determine or the Majority Lenders shall reasonably require; and  (b) with respect to any Letter of Credit, each of the following:  (i) each date of issuance  of a Letter of Credit denominated in an Alternative Currency, (ii) each date of an  amendment of any such Letter of Credit denominated in an Alternative Currency having  the effect of increasing the amount thereof (solely with respect to the increased amount),  (iii) each date of any payment by an Issuing Bank under any Letter of Credit  denominated in an Alternative Currency, and (iv) to the extent warranted by  circumstances, such additional dates as the Agent or the Issuing Banks shall reasonably  determine or the Majority Lenders shall reasonably require.  “Revolving Credit Advance” means an advance by a Lender to any Borrower  under Section 2.01(a).  “Revolving Credit Borrowing” means a borrowing consisting of simultaneous  Revolving Credit Advances of the same Type and, in the case of Contract Rate Loans,  having the same Interest Period.  “Revolving Credit Commitment” means, as to each Lender, its obligation to (a)  make Revolving Credit Advances to the Borrowers pursuant to Section 2.01(a), (b)  purchase participations in L/C Obligations, and (c) purchase participations in Swing Line  Advances, in an aggregate principal amount at any one time outstanding not to exceed the  amount set forth opposite such Lender’s name on Schedule 1.01A under the caption  “Revolving Credit Commitment” or in the Assignment and Acceptance pursuant to which  such Lender becomes a party hereto, as applicable, as such amount may be adjusted from  time to time in accordance with this Agreement.  “Revolving Credit Facility” means, at any time, the aggregate amount of the  Lenders’ Revolving Credit Commitments at such time.  “S&P” means S&P Global Ratings, a Standard & Poor’s Financial Services LLC  business, and any successor thereto.  “Sale/Leaseback Transaction” means an arrangement relating to property now  owned or hereafter acquired by Parent Borrower or a Restricted Subsidiary whereby  Parent Borrower or such Restricted Subsidiary transfers such property to a Person and  Parent Borrower or such Restricted Subsidiary leases it from such Person, other than  leases between any of Parent Borrower and a Restricted Subsidiary or between Restricted  Subsidiaries.  “Same Day Funds” means (a) with respect to disbursements and payments in  Dollars, immediately available funds, and (b) with respect to disbursements and  payments in an Alternative Currency, same day or other funds as may be determined by  the Agent or the applicable Issuing Bank, as the case may be, to be customary in the  

 

   75      place of disbursement or payment for the settlement of international banking transactions  in the relevant Alternative Currency.  “Sanctioned Jurisdiction” means any country or territory to the extent that such  country or territory itself is the subject of any Sanction.   “Sanctioned Person” has the meaning specified in Section 6.01(m).   “Scheduled Unavailability Date” has the meaning specified in Section 2.09(c)(ii).  “Sanction(s)” means any sanction administered or enforced by the United States  Government (including without limitation, OFAC), the federal government of Canada,  the United Nations Security Council, the European Union, Her Majesty’s Treasury  (“HMT”) or other relevant sanctions authority.   “SEC” means the United States Securities and Exchange Commission or any  Governmental Authority succeeding to, or exercising any, of its principal functions.  “Secured Hedge Agreement” means any Swap Contract by and between Parent  Borrower or any of its Subsidiaries and any Hedge Bank.  “Secured Hedging Obligations” means the obligations of Parent Borrower or any  of its Subsidiaries arising under any Secured Hedge Agreement.  “Secured Indebtedness” means any Consolidated Total Indebtedness secured by a  Lien.  “Secured Parties” means, collectively, the Agent, the Lenders, the Issuing Banks,  the Swing Line Lender, any Cash Management Bank that is party to a Bank Product  Document, any Hedge Bank that is a party to a Secured Hedge Agreement and any  Supply Chain Bank that is party to a Secured Supply Chain Financing.  “Secured Supply Chain Financing” means any Supply Chain Financing that is  entered into by and between Parent Borrower or any Subsidiary and any Supply Chain  Bank, including any such Supply Chain Financing that is in effect on the Restatement  Date.   “Senior Notes” means the 2029 Notes and the 2031 Notes.   “Senior Notes Indentures” means the Indenture dated as of September 27, 2021  among Parent Borrower, each of the guarantors party thereto and U.S. Bank National  Association.    “Senior Representative” means, with respect to any Indebtedness, the trustee,  administrative agent, collateral agent, security agent or similar agent under the indenture  or agreement pursuant to which such Indebtedness is issued, incurred or otherwise  obtained, as the case may be, and each of their successors in such capacities.  

 

   76      “Shrink” means Inventory which has been lost, misplaced, stolen, or is otherwise  unaccounted for.  “Significant Subsidiary” means any Restricted Subsidiary that would be a  “Significant Subsidiary” within the meaning of Rule 1-02 under Regulation S-X  promulgated by the SEC (or any successor provisions).  “Similar Business” has the meaning specified in Section 7.02(f).  “SOFR” means the Secured Overnight Financing Rate as administered by the  Federal Reserve Bank of New York (or a successor administrator).    “SOFR Adjustment” shall mean, with respect to each of Daily Simple SOFR and  Term SOFR, 0.10%.   “Solvent” means, with respect to any Person organized under the laws of the  United States, or any state thereof, or Canada, or any province or territory thereof, on a  particular date, that on such date (a) the fair value of the assets of such Person, at a fair  valuation, will exceed the debts and liabilities, direct, subordinated, contingent or  otherwise, of such Person; (b) the present fair saleable value of the property of such  Person will be greater than the amount that will be required to pay the probable liability  of such Person on its debts and other liabilities, direct, subordinated, contingent or  otherwise, as such debts and other liabilities become absolute and matured; (c) such  Person will be able to pay its debts and liabilities, direct, subordinated, contingent or  otherwise, as such debts and liabilities become absolute and matured; (d) such Person  will not have unreasonably small capital with which to conduct the businesses in which it  is engaged as such businesses are conducted on such date and are proposed to be  conducted after such date.  “SONIA” shall mean, with respect to any applicable determination date, the  Sterling Overnight Index Average Reference Rate published on the fifth Business Day  preceding such date on the applicable Reuters screen page (or such other commercially  available source providing such quotations as may be designated by the Agent from time  to time); provided however that if such determination date is not a Business Day, SONIA  means such rate that applied on the first Business Day immediately prior thereto.   “SONIA Adjustment” shall mean, with respect to SONIA, 0.0326% per annum.  “Specified Secured Indebtedness” has the meaning specified in the definition of  Permitted Liens.  “Spot Rate” for a currency means the rate determined by the Agent or an Issuing  Bank, as applicable, to be the rate quoted by the Person acting in such capacity as the  spot rate for the purchase by such Person of such currency with another currency through  its principal foreign exchange trading office at approximately 11:00 a.m. on the date two  Business Days prior to the date as of which the foreign exchange computation is made;  provided that the Agent or such Issuing Bank may obtain such spot rate from another  financial institution designated by the Agent or such Issuing Bank if the Person acting in  

 

   77      such capacity does not have as of the date of determination a spot buying rate for any  such currency; and provided further that such Issuing Bank may use such spot rate quoted  on the date as of which the foreign exchange computation is made in the case of any  Letter of Credit denominated in an Alternative Currency.   “Standby Letter of Credit” means a letter of credit or other credit support  instrument issued for the benefit of a Person party to a contractual arrangement with the  Parent Borrower or any of its Subsidiaries as credit support for the obligations of the  Parent Borrower or such Subsidiary thereunder.  “Sterling” and “£” mean the lawful currency of the United Kingdom.  “Store” means any retail store (which may include any Real Estate, fixtures,  Equipment, Inventory and other property related thereto) operated, or to be operated, by  any Loan Party.  “Store Account” means any account at a bank that is used solely for receiving  store receipts from a Store (together with any other deposit accounts at any time  established or used by any Loan Party for receiving such store receipts from any Store).  “Subsidiary” means, with respect to any Person, any corporation, partnership,  trust or other Person of which more than 50% of the outstanding capital stock (or similar  property right in the case of partnerships and trusts and other Persons) having ordinary  voting power to elect a majority of the board of directors of such corporation (or similar  governing body or Person with respect to partnerships and trusts and other Persons)  (irrespective of whether or not 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) is at the time directly or indirectly owned by such Person, by such Person  and one or more other Subsidiaries of such Person, or by one or more other Subsidiaries  of such Person.  Unless the context otherwise requires, the term “Subsidiary” shall mean  a Subsidiary of Parent Borrower.  “Successor Rate” has the meaning specified in Section 2.09(c).   “Supply Chain Bank” means any Person counterparty to a Supply Chain  Financing who is (x) Bank of America or any Affiliate or branch of Bank America or (y)  any other Lender or any Affiliate or branch of such Lender so long as, in the case of this  clause (y), Parent Borrower and the applicable Lender (or its Affiliate or branch) shall  have delivered a notice thereof to the Agent.  “Supply Chain Financing” means any agreement to provide to Parent Borrower or  any Subsidiary (x) letters of credit, guarantees or other credit support provided in respect  of trade payables of Parent Borrower or any Subsidiary, in each case issued for the  benefit of any bank, financial institution or other person that has acquired such trade  payables pursuant to “supply chain” or other similar financing for vendors and suppliers  of Parent Borrower or any Subsidiaries, so long as (i) other than in the case of Secured  Supply Chain Financings, such arrangement is unsecured (except as otherwise permitted  herein), (ii) the terms of such trade payables shall not have been extended in connection  

 

   78      with the Supply Chain Financing and (iii) such Indebtedness represents amounts not in  excess of those which Parent Borrower or any of its Subsidiaries would otherwise have  been obligated to pay to its vendor or supplier in respect of the applicable trade payables,   (y) customary leasing finance arrangements or (z) any arrangement pursuant to which a  Supply Chain Bank acquires payables owed by Parent Borrower or any of its Subsidiaries  to its vendor or supplier.  “Supported QFC” has the meaning specified in Section 10.24.   “Sustainability Pricing Certificate” has the meaning set forth in the Sustainability  Schedule.  “Sustainability Revolving Commitment Fee Adjustment” has the meaning set  forth in the Sustainability Schedule.  “Sustainability Schedule” means Schedule 1.01D.  “Sustainability Structuring Agent Engagement Letter” means that certain  Sustainability Structuring Agent Engagement Letter, dated as of June 22, 2022, among  BofA Securities, Inc. and Parent Borrower.   “Swap Contract” means (a) any agreement with respect to any swap, forward,  future or derivative transaction or option or similar agreement involving, or settled by  reference to, one or more rates, currencies, cross-currency hedges, commodities, equity or  debt instruments or securities, or economic, financial or pricing indices or measures of  economic, financial or pricing risk or value or any similar transaction or any combination  of these transactions; provided that no phantom stock or similar plan providing for  payments only on account of services provided by current or former directors, officers,  employees or consultants of Borrowers or any of their respective Subsidiaries shall be a  “Swap Agreement” and (b) any agreement with respect to any transactions (together with  any related confirmations) which are subject to the terms and conditions of, or are  governed by, any master agreement published by the International Swaps and Derivatives  Association, Inc., any International Foreign Exchange Master Agreement or any other  similar master agreement.  “Swap Obligation” means, with respect to any Loan Party, any obligation to pay  or perform under any agreement, contract or transaction that constitutes a “swap” within  the meaning of section 1(a)(47) of the Commodity Exchange Act.  “Swing Line” means the revolving credit facility made available by the Swing  Line Lender pursuant to Section 2.03.  “Swing Line Advance” means an advance made available by the Swing Line  Lender pursuant to Section 2.03(a).  Swing Line Advances shall be denominated in  Dollars.  “Swing Line Advance Notice” means a notice of a Swing Line Borrowing  pursuant to Section 2.03(b), which if in writing, shall be substantially in the form of  

 

   79      Exhibit A-2 or such other form as approved by the Agent (including any form on an  electronic platform or electronic transmission system as shall be approved by the Agent),  appropriately completed and signed by a Responsible Officer of the applicable Borrower.  “Swing Line Borrowing” means a borrowing of a Swing Line Advance pursuant  to Section 2.03.  “Swing Line Lender” means Bank of America, including any of its Affiliates and  branches, in its capacity as provider of Swing Line Advances.    “Swing Line Sublimit” means an amount equal to the lesser of (a) $200,000,000  and (b) the Revolving Credit Facility; provided that Swing Line Borrowings by Canadian  Borrowers shall not exceed the lesser of (a) $20,000,000 and (y) any unused portion of  the Canadian Sublimit.  The Swing Line Sublimit is part of, and not in addition to, the  Revolving Credit Facility.  “Syndication Agents” means Wells Fargo Bank, National Association and  Sumitomo Mitsui Banking Corporation.  “TARGET Day” means any day on which TARGET2 (or, if such payment system  ceases to be operative, such other payment system, if any, determined by the Agent to be  a suitable replacement) is open for the settlement of payments in Euro.  “TARGET2” means the Trans European Automated Real Time Gross Settlement  Express Transfer payment system which utilized a single shared platform and which was  launched on November 19, 2007.   “Tax Benefit” has the meaning specified in Section 4.02(f).  “Tax Distributions” means any distributions described in Section 7.02(b)(ii)(11).   “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.  “Tax Group” has the meaning specified in Section 7.02(b)(ii)(11).  “Termination Date” means July 13, 2027, or the earlier date of termination in  whole of the Commitments pursuant to Section 2.06(a) or 8.01.  “Term SOFR” shall mean:   (a) for any Interest Period with respect to a Term SOFR Advance, the  rate per annum equal to the Term SOFR Screen Rate two U.S. Government Securities  Business Days prior to the commencement of such Interest Period with a term equivalent  to such Interest Period; provided that if the rate is not published prior to 11:00 a.m. on  such determination date then Term SOFR means the Term SOFR Screen Rate on the first  

 

   80      U.S. Government Securities Business Day immediately prior thereto, in each case, plus  the SOFR Adjustment for such Interest Period; and    (b) for any interest calculation with respect to a Base Rate Advance or  a Canadian Base Rate Advance on any date, a per annum rate determined in accordance  with the immediately preceding clause (a) for a one month Interest Period;   provided, that if the Term SOFR determined in accordance with the foregoing clauses (a)  or (b) would otherwise be less than zero, the Term SOFR shall be deemed zero for  purposes of this Agreement.    “Term SOFR Advance” shall mean an Advance that bears interest at a rate based  on clause (a) of the definition of “Term SOFR”.  All Term SOFR Advances must be  denominated in U.S. Dollars.   “Term SOFR Replacement Date” has the meaning specified in Section 2.09(c).    “Term SOFR Screen Rate” shall mean the forward-looking SOFR term rate  administered by CME (or any successor administrator satisfactory to the Agent) and  published on the applicable Reuters screen page (or such other commercially available  source providing such quotations as may be designated by the Agent from time to time.    “Term SOFR Successor Rate” has the meaning specified in Section 2.09(c).   “Test Period” means, as of any date of determination, the most recently completed  twelve Fiscal Months of the Loan Parties ended on or prior to such time (taken as one  accounting period) for which financial statements (and the related compliance certificate)  have been delivered (or are required to have been delivered) to the Agent.   “TIBOR” has the meaning specified in the definition of “Alternative Currency  Term Rate”.    “Total Assets” means, as of any date of determination, the consolidated assets of  the Parent Borrower and its Subsidiaries at the end of the Fiscal Quarter immediately  preceding such date, determined in accordance with GAAP.  “Total Revolving Credit Outstandings” means the aggregate Outstanding Amount  of all Advances, Swing Line Advances and L/C Obligations.  “Trade Letter of Credit” means a direct-pay sight trade or documentary letter of  credit issued for the benefit of a vendor in connection with the purchase of goods by the  Parent Borrower or any of its Subsidiaries in the ordinary course of business.  “Trademarks” has the meaning specified in the applicable Security Agreements.  “Transactions” means (A) the entry into and incurrence of indebtedness pursuant  to this Agreement and (B) the payment of fees and expenses in connection with the  foregoing.  

 

   81      “Type” shall mean the type of Advance determined with regard to the interest  option applicable thereto, i.e. whether a Base Rate Advance, Canadian Base Rate  Advance, BA Rate Advance, Canadian Prime Rate Advance, Term SOFR Advance,  Alternative Currency Term Rate Advance or Alternative Currency Daily Rate Advance.  “UCC” means the Uniform Commercial Code as the same may, from time to  time, be enacted and in effect in the State of New York; provided, that to the extent that  the UCC is used to define any term herein or in any Loan Document and such term is  defined differently in different Articles or Divisions of the UCC, the definition of such  term contained in Article or Division 9 shall govern; provided, further, that in the event  that, by reason of mandatory provisions of law, any or all of the attachment, perfection,  publication or priority of, or remedies with respect to, Agent’s or any Lender’s Lien on  any Collateral is governed by the Uniform Commercial Code as enacted and in effect in  another State other than the State of New York, the term “UCC” means the Uniform  Commercial Code in such other State.  “UCP” has the meaning specified in Section 2.04(g).  “UK Financial Institution” means any BRRD Undertaking (as such term is  defined under the PRA Rulebook (as amended form time to time) promulgated by the  United Kingdom Prudential Regulation Authority) or any person subject to IFPRU 11.6  of the FCA Handbook (as amended from time to time) promulgated by the United  Kingdom Financial Conduct Authority, which includes certain credit institutions and  investment firms, and certain affiliates of such credit institutions or investment firms,  “UK Resolution Authority” means the Bank of England or any other public  administrative authority having responsibility for the resolution of any UK Financial  Institution  “Unfinanced Capital Expenditures” means for any period, Capital Expenditures of  Parent Borrower and its Restricted Subsidiaries made in cash during such period, except  to the extent financed with the proceeds of Capital Lease Obligations or other  Indebtedness (other than Advances incurred hereunder), common Capital Stock or  Disqualified Capital Stock, casualty proceeds, condemnation proceeds or other proceeds  that would not be included in EBITDA, less cash received from the sale of any fixed  assets of Parent Borrower and its Restricted Subsidiaries (including, without limitation,  assets of the type that may constitute Equipment hereunder) during such period; provided  that the aggregate amount of Unfinanced Capital Expenditures during such period may  not be less than zero.  “Unintentional Overadvance” means an Overadvance which, to the Agent’s  knowledge, did not constitute an Overadvance when made but which has become an  Overadvance resulting from changed circumstances beyond the control of the Lenders,  including, without limitation, a reduction in the Appraised Value of property or assets  included in the Borrowing Base or misrepresentation by the Loan Parties.  

 

   82      “United States Person” means any Person that is a “United States Person” as  defined in Section 7701(a)(30) of the Code.  “United States Tax Compliance Certificate” has the meaning specified in  Section 4.02(e)(ii)(B)(3).  “Unreimbursed Amount” has the meaning specified in Section 2.04(c)(i).  “Unrestricted Subsidiary” means:   (1) any Subsidiary of Parent Borrower that at the time of determination shall  be designated an Unrestricted Subsidiary by the Board of Directors of Parent Borrower in  the manner provided below; and  (2) any Subsidiary of an Unrestricted Subsidiary.  Parent Borrower may designate any Subsidiary of Parent Borrower (including any  newly acquired or newly formed Subsidiary of Parent Borrower) to be an Unrestricted  Subsidiary unless at the time of such designation such Subsidiary or any of its  Subsidiaries owns any Equity Interests or Indebtedness of, or owns or holds any Lien on  any property of, Parent Borrower or any other Restricted Subsidiary that is not a  Subsidiary of the Subsidiary to be so designated, in each case at the time of such  designation; provided, however, that the Subsidiary to be so designated and its  Subsidiaries do not at the time of designation have and do not thereafter Incur any  Indebtedness pursuant to which the lender has recourse to any of the assets of Parent  Borrower or any of the Restricted Subsidiaries unless otherwise permitted under Section  7.02(b); provided, further, however, that either:  (a) the Subsidiary to be so designated has total consolidated assets of $1,000  or less; or  (b) if such Subsidiary has consolidated assets greater than $1,000, then such  designation would be permitted under Section 7.02(b).  Parent Borrower may designate any Unrestricted Subsidiary to be a Restricted  Subsidiary; provided, however, that immediately after giving effect to such designation,  Parent Borrower shall be in Pro Forma Compliance with the Payment Conditions.  As of the Restatement Date, no entity is an Unrestricted Subsidiary.  “Unused Commitment Fee Rate” means 0.250% per annum.  It is understood and  agreed that the Unused Commitment Fee Rate shall be subject to adjustment (or to no  adjustment, as applicable) from time to time based upon the Sustainability Revolving  Commitment Fee Adjustment (to be calculated and applied as set forth in the  Sustainability Schedule); provided that in no event shall the Unused Commitment Fee  Rate be less than 0%.  “U.S. Blocked Accounts” has the meaning specified in Section 7.01(i)(ii).  

 

   83      “U.S. Borrower” and “U.S. Borrowers” have the meanings specified in the  preamble to this Agreement.   “U.S. Collateral” means the Collateral owned by (or, in the event such Collateral  has been foreclosed upon, immediately prior to such foreclosure that was owned by) a  U.S. Loan Party.   “U.S. Dominion Account” means a special concentration account established by  Parent Borrower at an Affiliate or branch of the Agent in the United States, over which  the Agent has exclusive control for withdrawal purposes pursuant to the terms and  provisions of this Agreement and the other Loan Documents.  “U.S. Government Securities Business Day” means any Business Day, except any  Business Day on which any of the Securities Industry and Financial Markets Association,  the New York Stock Exchange or the Federal Reserve Bank of New York is not open for  business because such day is a legal holiday under the federal laws of the United States or  the laws of the State of New York, as applicable.    “U.S. Guarantor” means each Guarantor that is a Domestic Subsidiary.  “U.S. Guaranty” means the guarantee of the Obligations of each Loan Party  hereunder by the U.S. Loan Parties in Article III hereunder or in a supplemental  guarantee in accordance with Section 7.01(n) of this Agreement.  “U.S. Loan Party” means each U.S. Borrower and each U.S. Guarantor.   “U.S. Security Agreement” means that certain Amended and Restated Security  Agreement, dated as of the Restatement Date, made by the Loan Parties party thereto in  favor of the Agent, on behalf of the Agent, and the Secured Parties, as amended, restated,  supplemented or otherwise modified from time to time.   “U.S. Special Resolution Regimes” has the meaning specified in Section 10.24.   “Weekly Borrowing Base Delivery Event” means either (i) the occurrence and  continuance of any Event of Default, or (ii) the failure of Parent Borrower to maintain  Availability at least equal to the greater of (a) 12.5% of the Loan Cap, and (b) $237.5  million. For purposes of this Agreement, the occurrence of a Weekly Borrowing Base  Delivery Event shall be deemed continuing (i) so long as such Event of Default exists,  and/or (ii) if the Weekly Borrowing Base Delivery Event arises as a result of the  Borrower’s failure to achieve Availability as required hereunder, until Availability has  exceeded the greater of (x) 12.5% of the Loan Cap, and (y) $237.5 million for thirty (30)  consecutive calendar days, in which case a Weekly Borrowing Base Delivery Event shall  no longer be deemed to be continuing for purposes of this Agreement. The termination of  a Weekly Borrowing Base Delivery Event as provided herein shall in no way limit, waive  or delay the occurrence of a subsequent Weekly Borrowing Base Delivery Event in the  event that the conditions set forth in this definition again arise.  

 

   84      “Weighted Average Life to Maturity” means, when applied to any Indebtedness  or Disqualified Capital Stock or Preferred Stock, as the case may be, at any date, the  quotient obtained by dividing (1) the sum of the products of the number of years from the  date of determination to the date of each successive scheduled principal payment of such  Indebtedness or redemption or similar payment with respect to such Disqualified Capital  Stock or Preferred Stock multiplied by the amount of such payment, by (2) the sum of all  such payments.  “Wholly Owned Restricted Subsidiary” means any Wholly Owned Subsidiary  that is a Restricted Subsidiary.  “Wholly Owned Subsidiary” of any Person means a Subsidiary of such Person  100% of the outstanding Capital Stock or other ownership interests of which (other than  directors’ qualifying shares or shares required pursuant to applicable Law) shall at the  time be owned by such Person or by one or more Wholly Owned Subsidiaries of such  Person.  “Withdrawal Liability” has the meaning specified in Part I of Subtitle E of Title  IV of ERISA.  “Write-Down and Conversion Powers” means, (a) with respect to any EEA  Resolution Authority, the write-down and conversion powers of such EEA Resolution  Authority from time to time under the Bail-In Legislation for the applicable EEA Member  Country, which write-down and conversion powers are described in the EU Bail-In  Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the  applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or  change the form of a liability of any UK Financial Institution or any contract or instrument  under which that liability arises, to convert all or part of that liability into shares, securities  or obligations of that person or any other person, to provide that any such contract or  instrument is to have effect as if a right had been exercised under it or to suspend any  obligation in respect of that liability or any of the powers under that Bail-In Legislation  that are related to or ancillary to any of those powers.   “Yen” and “¥” mean the lawful currency of Japan.  SECTION 1.02  Computation of Time Periods.  In this Agreement in the  computation of periods of time from a specified date to a later specified date, the word “from”  means “from and including” and the words “to” and “until” each means “to but excluding”.  SECTION 1.03  Accounting Terms.  (a) Generally.  All accounting terms not specifically or completely defined  herein shall be construed in conformity with, and all financial data (including financial  ratios and other financial calculations) required to be submitted pursuant to this  Agreement shall be prepared in conformity with GAAP as in effect from time to time,  except as otherwise specifically prescribed herein.   (b) Changes in GAAP.  Notwithstanding any change in GAAP occurring after  

 

   85      the Restatement Date, the computations of all financial ratios and requirements set forth  in any Loan Document shall continue to be computed in accordance with GAAP prior to  such change therein.  SECTION 1.04  Exchange Rates; Currency Equivalents.  The Agent, the Issuing  Banks or the Swing Line Lender, as applicable, shall determine the Spot Rates as of each  Revaluation Date to be used for calculating Dollar Equivalent amounts of the Borrowing Base,  Credit Extensions and Outstanding Amounts denominated in Alternative Currencies.  Such Spot  Rates shall become effective as of such Revaluation Date and shall be the Spot Rates employed  in converting any amounts between the applicable currencies until the next Revaluation Date to  occur.  Except for purposes of financial statements delivered by Loan Parties hereunder or  calculating financial covenants hereunder or except as otherwise provided herein, the applicable  amount of any currency (other than Dollars) for purposes of the Loan Documents shall be such  Dollar Equivalent amount as so determined by the Agent, an Issuing Bank or the Swing Line  Lender, as applicable, absent manifest error.  (b) Wherever in this Agreement in connection with a Committed Borrowing,  conversion, continuation or prepayment of an Advance or the issuance, amendment or  extension of a Letter of Credit, an amount, such as a required minimum or multiple  amount, is expressed in Dollars, but such Committed Borrowing, Advance or Letter of  Credit is denominated in an Alternative Currency, unless otherwise expressed in this  Agreement, such amount shall be the relevant Alternative Currency Equivalent of such  Dollar amount (rounded to the nearest unit of such Alternative Currency, with 0.5 of a  unit being rounded upward), as determined by the Agent or the applicable Issuing Bank,  as the case may be.  (c) For purposes of determining the Borrowing Base (and each component  thereof), the Borrowers shall report (i) asset values with respect to any asset included in  the Borrowing Base in the currency shown in the Borrowers’ financial records or  invoiced by the Borrowers, as applicable, for such asset, (ii) any Inventory Reserves with  respect to any item of Inventory in the currency in which the asset value for such item of  Inventory is reported pursuant to clause (i) above, and (iii) any Availability Reserve in  the currency of the underlying claims, liabilities or obligations giving rise to such  Availability Reserve.    SECTION 1.05  Change of Currency.Each obligation of the Loan Parties to make  a payment denominated in the national currency unit of any member state of the European Union  that adopts the Euro as its lawful currency after the date hereof shall be redenominated into Euro  at the time of such adoption (in accordance with the EMU Legislation).  If, in relation to the  currency of any such member state, the basis of accrual of interest expressed in this Agreement  in respect of that currency shall be inconsistent with any convention or practice in the London  interbank market for the basis of accrual of interest in respect of the Euro, such expressed basis  shall be replaced by such convention or practice with effect from the date on which such member  state adopts the Euro as its lawful currency; provided that if any Committed Borrowing in the  currency of such member state is outstanding immediately prior to such date, such replacement  shall take effect, with respect to such Committed Borrowing, at the end of the then current  Interest Period.  

 

   86      (b) Each provision of this Agreement shall be subject to such reasonable  changes of construction as the Agent may from time to time specify to be appropriate to  reflect the adoption of the Euro by any member state of the European Union and any  relevant market conventions or practices relating to the Euro.   (c) Each provision of this Agreement also shall be subject to such reasonable  changes of construction as the Agent may from time to time specify to be appropriate to  reflect a change in currency of any other country and any relevant market conventions or  practices relating to the change in currency.  SECTION 1.06  Times of Day.  Unless otherwise specified, all references herein  to times of day shall be references to Eastern time (daylight or standard, as applicable).  SECTION 1.07  Letter of Credit Amounts.  Unless otherwise specified, all  references herein to the amount of a Letter of Credit at any time shall be deemed to mean the  Dollar Equivalent of the maximum face amount of such Letter of Credit after giving effect to all  increases thereof contemplated by such Letter of Credit or the Issuer Documents related thereto,  whether or not such maximum face amount is in effect at such time.  SECTION 1.08  Limited Conditions Acquisitions.  In connection with any action  being taken solely in connection with a Limited Condition Acquisition, for purposes of:  (a)    determining compliance with any provision of this Agreement which  requires satisfaction of the Limited Condition Acquisition Payment Conditions; and  (b)    determining compliance with representations, warranties, defaults or Events  of Default (in each case, other than for purposes of Section 5.02);  in each case, at the option of Parent Borrower (Parent Borrower’s election to  exercise such option in connection with any Limited Condition Acquisition, an “LCA Election”),  the date of determination of whether any such action is permitted hereunder, shall be deemed to  be the date the definitive agreements for such Limited Condition Acquisition are entered into  (the “LCA Test Date”) (provided that Parent Borrower shall be required to make an LCA  Election on or prior to the date on which the definitive agreements for such Limited Condition  Acquisition have been entered into, and provided further that with respect to any required  calculation of the Limited Condition Acquisition Payment Conditions on the LCA Test Date,  such calculation shall be effective only in the event that such Limited Condition Acquisition is  consummated within 180 days following the LCA Test Date), and if, after giving pro forma  effect to the Limited Condition Acquisition and the other transactions to be entered into in  connection therewith (including any incurrence of Indebtedness and the use of proceeds thereof)  as if they had occurred at the beginning of the most recent Test Period ending prior to the LCA  Test Date (after giving effect to any increases or decrease in Indebtedness of Parent Borrower  and its Restricted Subsidiaries since such date), Parent Borrower could have taken such action on  the relevant LCA Test Date in compliance with such ratio, representation, warranty, default,  Events of Default or basket, such ratio, representation, warranty, default, Event of Default or  basket shall be deemed to have been complied with for purposes of such Limited Condition  Acquisition. For the avoidance of doubt, if Parent Borrower has made an LCA Election and any  

 

   87      of the ratios or baskets for which compliance was determined or tested as of the LCA Test Date  are exceeded as a result of fluctuations in any such ratio or basket, including due to fluctuations  in Consolidated EBITDA of Parent Borrower or the Person subject to such Limited Condition  Acquisition, at or prior to the consummation of the relevant transaction or action, such baskets or  ratios will not be deemed to have been exceeded as a result of such fluctuations. If Parent  Borrower has made an LCA Election for any Limited Condition Acquisition, then in connection  with any subsequent calculation of any ratios, representations, warranties, defaults, Events of  Default or basket availability (including with respect to satisfaction of the Limited Condition  Acquisition Payment Conditions in connection therewith but excluding satisfaction of any  component of the Payment Conditions based on Availability) with respect to the incurrence of  Indebtedness or Liens, or the making of Restricted Payments, mergers, the conveyance, lease or  other transfer of all or substantially all of the assets of the Borrower, the prepayment,  redemption, purchase, defeasance or other satisfaction of Indebtedness, the consummation of any  other Permitted Acquisition or the designation of a Subsidiary on or following the relevant LCA  Test Date and prior to the earlier of the date on which such Limited Condition Acquisition is  consummated or the date that the definitive agreement for such Limited Condition Acquisition is  terminated or expires without consummation of such Limited Condition Acquisition, any such  ratios representations, warranties, defaults, Events of Default or baskets shall be calculated on a  pro forma basis assuming such Limited Condition Acquisition and other transactions in  connection therewith (including any incurrence of Indebtedness and the use of proceeds thereof)  has been consummated (it being further understood and agreed, however, that neither any  Consolidated Net Income or Consolidated EBITDA therefrom, nor any assets of the target to be  acquired pursuant to such Limited Condition Acquisition, shall be included in Parent Borrower’s  Consolidated Net Income or Consolidated EBITDA, or in the calculation of the Borrowing Base,  as applicable, in any such subsequent calculation until such Limited Condition Acquisition has  actually closed).   SECTION 1.09  Divisions.  For all purposes under the Loan Documents, in connection  with any division or plan of division under Delaware law (or any comparable event under a  different jurisdiction’s laws):  (a) if any asset, right, obligation or liability of any Person becomes  the asset, right, obligation or liability of a different Person, then it shall be deemed to have been  transferred from the original Person to the subsequent Person, and (b) if any new Person comes  into existence, such new Person shall be deemed to have been organized on the first date of its  existence by the holders of its Equity Interests at such time.  SECTION 1.10  Borrower Representative .  Each Loan Party hereby designates Parent  Borrower as its representative and agent for all purposes under the Loan Documents, including  requests for Advances and Letters of Credit, designation of interest rates, delivery or receipt of  communications, preparation and delivery of Borrowing Base Certificates and financial reports,  receipt and payment of Obligations, requests for waivers, amendments or other accommodations,  actions under the Loan Documents (including in respect of compliance with covenants), and all  other dealings with the Agent, any Issuing Bank or any Lender, and Parent Borrower hereby  accepts such appointment.  The Agent and the Lenders shall be entitled to rely upon, and shall be  fully protected in relying upon, any notice or communication delivered by Parent Borrower on  behalf of any Loan Party.  The Agent and the Lenders may give any notice or communication  with a Loan Party hereunder to Parent Borrower on behalf of such Loan Party.  Each of the  Agent, the Issuing Banks and the Lenders shall have the right, in its discretion, to deal  

 

   88      exclusively with Parent Borrower for any or all purposes under the Loan Documents.  Each Loan  Party agrees that any notice, election, communication, representation, agreement or undertaking  made on its behalf by Parent Borrower shall be binding upon and enforceable against it.  SECTION 1.11  Interest Rates.  The Agent does not warrant, nor accept responsibility,  nor shall the Agent have any liability with respect to the administration, submission or any other  matter related to any reference rate referred to herein or with respect to any rate (including, for  the avoidance of doubt, the selection of such rate and any related spread or other adjustment) that  is an alternative or replacement for or successor to any such rate (including, without limitation,  any Successor Rate) (or any component of any of the foregoing) or the effect of any of the  foregoing, or of any Conforming Changes. The Agent and its affiliates or other related entities  may engage in transactions or other activities that affect any reference rate referred to herein, or  any alternative, successor or replacement rate (including, without limitation, any Successor Rate)  (or any component of any of the foregoing) or any related spread or other adjustments thereto, in  each case, in a manner adverse to the Borrowers. The Agent may select information sources or  services in its reasonable discretion to ascertain any reference rate referred to herein or any  alternative, successor or replacement rate (including, without limitation, any Successor Rate) (or  any component of any of the foregoing), in each case pursuant to the terms of this Agreement,  and shall have no liability to any Borrower, any Lender or any other person or entity for damages  of any kind, including direct or indirect, special, punitive, incidental or consequential damages,  costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity),  for any error or other action or omission related to or affecting the selection, determination, or  calculation of any rate (or component thereof) provided by any such information source or  service.  SECTION 1.12  Quebec Interpretive Provision. For purposes of any Collateral located in  the Province of Quebec or charged by any deed of hypothec (or any other Loan Document) and  for all other purposes pursuant to which the interpretation or construction of a Loan Document  may be subject to the Laws of the Province of Quebec or a court or tribunal exercising  jurisdiction in the Province of Quebec, (i) “personal property” shall be deemed to include  “movable property”, (ii) “real property” shall be deemed to include “immovable property”, (iii)  “tangible property” shall be deemed to include “corporeal property”, (iv) “intangible property”  shall be deemed to include “incorporeal property”, (v) “security interest” and “mortgage” shall  be deemed to include a “hypothec”, (vi) all references to filing, registering or recording under the  UCC or PPSA shall be deemed to include publication by registration under the Civil Code of  Quebec, (vii) all references to “perfection” of or “perfected” Liens shall be deemed to include a  reference to the “opposability” of such Liens to third parties, (viii) any “right of offset”, “right of  setoff” or similar expression shall be deemed to include a “right of compensation”, (ix) “goods”  shall be deemed to include “corporeal movable property” other than chattel paper, documents of  title, instruments, money and securities, (x) an “agent” shall be deemed to include a  “mandatary”, (xi) “foreclosure” shall be deemed to include the “exercise of a hypothecary right”,  (xii) “lease” shall be deemed to include a “lease” or a “contract of leasing (crédit-bail)”, as  applicable, and (xiii) “deposit account” shall be deemed to include a “financial account” (within  the meaning of Article 2713.6 of the Civil Code of Quebec).  SECTION 1.13  Additional Alternative Currencies.    

 

   89      (a) Parent Borrower may from time to time request that Alternative Currency  Advances be made and/or Letters of Credit be issued in a currency other than those  specifically listed in the definition of the term “Alternative Currency”.  In the case of any  such request with respect to the making of Alternative Currency Advances, such request  shall be subject to the approval of the Agent and the Lenders; and in the case of any such  request with respect to the issuance of Letters of Credit, such request shall be subject to  the approval of the Agent and the Issuing Banks.  (b) Any such request shall be made to the Agent not later than 11:00 a.m., 20  Business Days prior to the date of the desired Credit Extension (or such other time or date  as may be agreed by the Agent and, in the case of any such request pertaining to Letters  of Credit, the Issuing Banks, in its or their sole discretion).  In the case of any such  request pertaining to Alternative Currency Advances, the Agent shall promptly notify  each Lender thereof; and in the case of any such request pertaining to Letters of Credit,  the Agent shall promptly notify each Issuing Bank thereof.  Each Lender (in the case of  any such request pertaining to Alternative Currency Advances) or Issuing Bank (in the  case of a request pertaining to Letters of Credit) shall notify the Agent, not later than  11:00 a.m., ten Business Days after receipt of such request whether it consents, in its sole  discretion, to the making of Alternative Currency Advances or the issuance of Letters of  Credit, as the case may be, in such requested currency.  (c) Any failure by a Lender or an Issuing Bank, as the case may be, to  respond to such request within the time period specified in the preceding clause (b) shall  be deemed to be a refusal by such Lender or such Issuing Bank, as the case may be, to  permit Alternative Currency Advances to be made or Letters of Credit to be issued in  such requested currency.  If the Agent and all the Lenders consent to making Alternative  Currency Advances in such requested currency and the Agent and such Lenders  reasonably determine that an appropriate interest rate is available to be used for such  requested currency, the Agent shall so notify the Parent Borrower and (i) the Agent and  such Lenders may amend the definition of Alternative Currency Daily Rate or Alternative  Currency Term Rate to the extent necessary to add the applicable rate for such currency  and any applicable adjustment for such rate and (ii) to the extent the definition of  Alternative Currency Daily Rate or Alternative Currency Term Rate, as applicable, has  been amended to reflect the appropriate rate for such currency, such currency shall  thereupon be deemed for all purposes to be an Alternative Currency hereunder for  purposes of any borrowings of Alternative Currency Advances; and if the Agent and the  Issuing Banks consent to the issuance of Letters of Credit in such requested currency, the  Agent shall so notify the Parent Borrower and (i) the Agent and the Issuing Banks may  amend the definition of Alternative Currency Daily Rate or Alternative Currency Term  Rate, as applicable, to the extent necessary to add the applicable rate for such currency  and any applicable adjustment for such rate and (ii) to the extent the definition of  Alternative Currency Daily Rate or Alternative Currency Term Rate, as applicable, has  been amended to reflect the appropriate rate for such currency, such currency shall  thereupon be deemed for all purposes to be an Alternative Currency hereunder for  purposes of any Letter of Credit issuances.  If the Agent shall fail to obtain consent to any  request for an additional currency under this Section 1.13, the Agent shall promptly so  notify the Parent Borrower.   

 

   90      ARTICLE II  AMOUNTS AND TERMS OF THE ADVANCES  SECTION 2.01  The Revolving Credit Advances; Reserves.  (a) Each Lender severally agrees, on the terms and conditions hereinafter set  forth, to make Revolving Credit Advances to any Borrower from time to time on any  Business Day during the Availability Period in Dollars or in one or more Alternative  Currencies, in an aggregate amount not to exceed at any time outstanding the amount of  such Lender’s Revolving Credit Commitment; provided, however, that after giving effect  to any Revolving Credit Borrowing, (i) the Total Revolving Credit Outstandings at such  time shall not exceed the Loan Cap at such time, (ii) the aggregate Outstanding Amount  of the Revolving Credit Advances of any Lender, plus such Lender’s Revolving Credit  Commitment Percentage of the Outstanding Amount of all L/C Obligations, plus such  Lender’s Revolving Credit Commitment Percentage of the Outstanding Amount of all  Swing Line Advances shall not exceed such Lender’s Revolving Credit Commitment,  (iii) the aggregate Outstanding Amount of all Revolving Credit Advances denominated in  Alternative Currencies plus the L/C Obligations in respect of Letters of Credit issued in  Alternative Currencies shall not exceed the Alternative Currency Sublimit; (iv) the  aggregate Outstanding Amount of all Revolving Credit Advances made to the Canadian  Borrowers shall not exceed the Canadian Sublimit and (v) the Canadian Borrowers shall  not be permitted to request Revolving Credit Advances in any currency other than  Dollars and Canadian Dollars.  Within the limits of each Lender’s Revolving Credit  Commitment, and subject to the other terms and conditions hereof, the Borrowers may  borrow under this Section 2.01(a), prepay under Section 2.10, and reborrow under this  Section 2.01(a).  Revolving Credit Advances may be Index Rate Loans, Alternative  Currency Daily Rate Advances or Contract Rate Loans, as further provided herein.    (b) The Inventory Reserves and Availability Reserves as of the Restatement  Date are set forth in the Borrowing Base Certificate delivered pursuant to Section 5.01(h)  hereof.   (c) The Agent shall have the right, at any time and from time to time after the  Restatement Date in its Permitted Discretion, to establish or modify Reserves or to  eliminate then existing Reserves, and the Agent shall provide the Parent Borrower with  prompt written notice of the same.   (d) On the Restatement Date, the Revolving Credit Commitments will replace  the “Revolving Credit Commitments” under (and as defined in) the Existing Credit Agreement in  their entirety. Any Revolving Credit Advances outstanding under the Existing Credit Agreement  immediately prior to the Restatement Date shall be deemed to be borrowed under this Agreement  on the Restatement Date and will be reallocated on a pro rata basis among the Lenders based on  their Revolving Credit Commitments hereunder.    SECTION 2.02  Making the Advances.  (a)  Each Revolving Credit Borrowing,  each conversion of Revolving Credit Advances from one Type to the other, and each  

 

   91      continuation of Contract Rate Loans shall be made upon the applicable Borrower’s irrevocable  notice to the Agent, which may be given by (x) telephone or (y) a Committed Advance Notice;  provided that any telephonic notice must be confirmed immediately by delivery to the Agent of a  Committed Advance Notice.  Each such Committed Advance Notice must be received by the  Agent not later than 11:00 a.m. (i) three Business Days prior to the requested date of any  Borrowing of, conversion to or continuation of Contract Rate Loans denominated in Dollars or  Canadian Dollars, (ii) four Business Days prior to the requested date of any Borrowing or  continuation of Alternative Currency Advances denominated in Alternative Currencies (other  than Canadian Dollars), and (iii) on the requested date of any Borrowing of Index Rate Loans  denominated in Dollars and two Business Days prior to the requested date of any Borrowing of  Index Rate Loans denominated in Canadian Dollars.  Each Borrowing of, conversion to or  continuation of Contract Rate Loans shall be in a minimum principal amount of $5,000,000 or  CND$5,000,000, as applicable.  Except as provided in Sections 2.02(c), 2.03(c) and 2.04(c), each  Borrowing of or conversion to Base Rate Advances or Canadian Base Rate Advances shall be in  a minimum principal amount of $1,000,000 and each Borrowing of or conversion to Canadian  Prime Rate Advances shall be in a minimum principal amount of CND$1,000,000.  Each  Committed Advance Notice (whether telephonic or written) shall specify (i) whether the  applicable Borrower is requesting a Revolving Credit Borrowing, a conversion of Revolving  Credit Advances from one Type to the other, or a continuation of Contract Rate Loans, (ii) the  requested date of the Borrowing, conversion or continuation, as the case may be (which shall be  a Business Day), (iii) the principal amount of Advances to be borrowed, converted or continued,  (iv) the Type of Advances to be borrowed or to which existing Revolving Credit Advances are to  be converted, (v) if applicable, the duration of the Interest Period with respect thereto and (vi) the  currency of the Revolving Credit Advances to be borrowed.  If a Borrower fails to specify a  currency in a Committed Advance Notice requesting a Revolving Credit Borrowing, then the  Revolving Credit Advances so requested shall be made in Dollars as regards to a U.S. Borrower  and in Canadian Dollars as regards a Canadian Borrower.  If a Borrower fails to specify a Type  of Advance in a Committed Advance Notice or if a Borrower fails to give a timely notice  requesting a conversion or continuation, then the applicable Revolving Credit Advances shall be  made as, or converted to, the applicable Index Rate Loans; provided, however, that (x) in the  case of a failure to timely request a continuation of Alternative Currency Term Rate Advances  denominated in an Alternative Currency, such Alternative Currency Term Rate Advances shall  be continued as Alternative Currency Term Rate Advances in their original currency with an  Interest Period of one month and (y) in the case of a failure to timely request a continuation of  BA Rate Advances, such Revolving Credit Advances shall be continued as Canadian Prime Rate  Advances or, as regards a U.S. Borrower, shall be repaid.  Any such automatic conversion to  Index Rate Loans shall be effective as of the last day of the Interest Period then in effect with  respect to the applicable Contract Rate Loans.  If a Borrower requests a Borrowing of,  conversion to, or continuation of Contract Rate Loans in any such Committed Advance Notice,  but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of  one month.  No Revolving Credit Advance may be converted into or continued as a Revolving  Credit Advance denominated in a different currency, but instead must be prepaid in the original  currency of such Revolving Credit Advance and reborrowed in the other currency.  (b) Following receipt of a Committed Advance Notice, the Agent shall  promptly notify each Lender of the amount (and currency) of its Commitment Percentage  of the applicable Revolving Credit Advances, and if no timely notice of a conversion or  

 

   92      continuation is provided by the applicable Borrower, the Agent shall notify each Lender  of the details of any automatic conversion to Index Rate Loans or continuation of  Alternative Currency Term Rate Advances, in each case as described in Section 2.02(a).   In the case of a Revolving Credit Borrowing, each appropriate Lender shall make the  amount of its Advance available to the Agent in Same Day Funds at the Agent’s Office  for the applicable currency not later than 2:00 p.m., in the case of any Advance  denominated in Dollars or Canadian Dollars, and not later than the Applicable Time  specified by the Agent in the case of any Revolving Credit Advance in an Alternative  Currency (other than Canadian Dollars), in each case on the Business Day specified in  the applicable Committed Advance Notice.  Upon satisfaction of the applicable  conditions set forth in Section 5.02 (and, if such Borrowing is the initial Credit Extension  hereunder, Section 5.01), the Agent shall make all funds so received available to the  applicable Borrower in like funds as received by the Agent either by (i) crediting the  account of such Borrower on the books of Bank of America with the amount of such  funds or (ii) wire transfer of such funds, in each case in accordance with instructions  provided to (and reasonably acceptable to) the Agent by such Borrower; provided,  however, that if, on the date the Committed Advance Notice with respect to such  Borrowing denominated in Dollars or Canadian Dollars is given by the Parent Borrower,  there are L/C Borrowings outstanding (and the Parent Borrower shall have been notified  of such L/C Borrowings), then the proceeds of such Borrowing, first, shall be applied to  the payment in full of any such L/C Borrowings, and, second, shall be made available to  the Parent Borrower as provided above.  (c) During the existence of an Event of Default no Revolving Credit  Advances may be requested as, converted to or continued as Contract Rate Loans  (whether in Dollars or any Alternative Currency) without the consent of the Majority  Lenders, and the Majority Lenders may demand that, other than BA Rate Advances made  to a Canadian Borrower, any or all of the then outstanding Revolving Credit Advances  that are Alternative Currency Term Rate Advances be prepaid, or redenominated into  Dollars in the amount of the Dollar Equivalent thereof, on the last day of the then current  Interest Period with respect thereto.  (d) The Agent shall promptly notify the applicable Borrower and the Lenders  of the interest rate applicable to any Interest Period for Contract Rate Loans upon  determination of such interest rate.  At any time that Index Rate Loans are outstanding,  the Agent shall notify the applicable Borrower(s) and the Lenders of any change in Bank  of America’s prime rate used in determining the Base Rate and the Canadian Prime Rate  and in Bank of America’s base rate used in determining the Canadian Base Rate promptly  following the public announcement of such change.  (e) After giving effect to all Revolving Credit Borrowings, all conversions of  Revolving Credit Advances from one Type to the other, and all continuations of  Revolving Credit Advances as the same Type, there shall not be more than ten Interest  Periods in effect.  (f) Notwithstanding anything to the contrary in this Agreement, any Lender  may exchange, continue or rollover all of the portion of its Advances in connection with  

 

   93      any refinancing, extension, loan modification or similar transaction permitted by the  terms of this Agreement, pursuant to a cashless settlement mechanism approved by the  Parent Borrower, the Agent, and such Lender.  (g) The Agent, the Lenders, the Swing Line Lender and the Issuing Banks  shall have no obligation to make any Advance or to provide any Letter of Credit if an  Overadvance would result. The Agent may, in its discretion, make Permitted  Overadvances without the consent of the Borrowers, the Lenders, the Swing Line Lender  and the Issuing Banks and the Borrowers and each Lender and Issuing Bank shall be  bound thereby. Any Permitted Overadvance may constitute a Swing Line Loan. A  Permitted Overadvance is for the account of the Parent Borrower and shall constitute a  Base Rate Advance and an Obligation and shall be repaid by the Parent Borrower in  accordance with the provisions of Section 2.07. The making of any such Permitted  Overadvance on any one occasion shall not obligate the Agent or any Lender to make or  permit any Permitted Overadvance on any other occasion or to permit such Permitted  Overadvances to remain outstanding. The making by the Agent of a Permitted  Overadvance shall not modify or abrogate any of the provisions of Section 2.04 regarding  the Lenders’ obligations to purchase participations with respect to Letter of Credits or of  Section 2.03 regarding the Lenders’ obligations to purchase participations with respect to  Swing Line Advances. The Agent shall have no liability for, and no Loan Party or Lender  shall have the right to, or shall, bring any claim of any kind whatsoever against the Agent  with respect to Unintentional Overadvances regardless of the amount of any such  Overadvance(s).  (h) With respect to SOFR, Term SOFR, Daily Simple SOFR, any Alternative  Currency Daily Rate, any Alternative Currency Term Rate or the BA Rate, the Agent will  have the right to make Conforming Changes from time to time and, notwithstanding  anything to the contrary herein or in any other Loan Document, any amendments  implementing such Conforming Changes will become effective without any further  action or consent of any other party to this Agreement or any other Loan Document;  provided that, with respect to any such amendment effected, the Agent shall post each  such amendment implementing such Conforming Changes to the Parent Borrower and  the Lenders reasonably promptly after such amendment becomes effective.   SECTION 2.03  Swing Line Advances.  (a) The Swing Line.  Subject to the terms and conditions set forth herein, the  Swing Line Lender, in reliance upon the agreements of the other Lenders set forth in this  Section 2.03, may in its sole discretion make loans (each such loan, a “Swing Line  Advance”) to the Borrowers on such terms (subject to Section 2.07(b)) as may be agreed  between the Swing Line Lender and the Parent Borrower from time to time, on any  Business Day during Availability Period in Dollars or, if to a Canadian Borrower, Dollars  or Canadian Dollars in an aggregate amount not to exceed at any time outstanding the  amount of the Swing Line Sublimit, notwithstanding the fact that such Swing Line  Advances, when aggregated with the Commitment Percentage of the Outstanding  Amount of Revolving Credit Advances and L/C Obligations of a Lender acting as Swing  Line Lender, may exceed the amount of such Lender’s Commitment; provided, however,  

 

   94      that after giving effect to any Swing Line Advance, (i) the Total Revolving Credit  Outstandings shall not exceed the Loan Cap, (ii) the aggregate Outstanding Amount of all  Revolving Credit Advances made to the Canadian Borrowers shall not exceed the  Canadian Sublimit, and (iii) the aggregate Outstanding Amount of the Revolving Credit  Advances of any Lender, plus such Lender’s Commitment Percentage of the Outstanding  Amount of all L/C Obligations, plus such Lender’s Commitment Percentage of the  Outstanding Amount of all Swing Line Advances shall not exceed such Lender’s  Commitment, and provided, further, that no Borrower shall use the proceeds of any  Swing Line Advance to refinance any outstanding Swing Line Advance.  Within the  foregoing limits, and subject to the other terms and conditions hereof, the Borrowers may  borrow under this Section 2.03, prepay under Section 2.10, and reborrow under this  Section 2.03.  Immediately upon the request of the Swing Line Lender, each Lender shall  be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the  applicable Swing Line Lender a risk participation in such Swing Line Advance in an  amount equal to the product of such Lender’s Commitment Percentage times the amount  of such Swing Line Advance.  (b) Borrowing Procedures.  Each Swing Line Borrowing shall be made upon  the irrevocable notice by a Borrower to the Swing Line Lender and the Agent, which may  be given by (x) telephone or (y) by a Swing Line Advance Notice; provided that any  telephonic notice must be confirmed promptly by delivery to the Swing Line Lender and  the Agent of a Swing Line Advance Notice.  Each such Swing Line Advance Notice must  be received by the Swing Line Lender and the Agent not later than, in the case of Swing  Line Advances, 1:00 p.m. on the requested borrowing date, and shall specify (i) the  amount to be borrowed, which shall be a minimum of $500,000 or CND$500,000, as  applicable, and (ii) the requested borrowing date, which shall be a Business Day.   Promptly after receipt by the Swing Line Lender of any telephonic Swing Line Advance  Notice, the Swing Line Lender will confirm with the Agent (by telephone or in writing)  that the Agent has also received such Swing Line Advance Notice and, if not, the Swing  Line Lender will notify the Agent (by telephone or in writing) of the contents thereof.   Unless the Swing Line Lender has received notice (by telephone or in writing) from the  Agent (including at the request of any Lender) prior to 3:00 p.m. on the date of the  proposed Swing Line Borrowing (A) directing the Swing Line Lender not to make such  Swing Line Advance as a result of the limitations set forth in the first proviso to the first  sentence of Section 2.03(a), or (B) that one or more of the applicable conditions specified  in Article V is not then satisfied, then, subject to the terms and conditions hereof, the  Swing Line Lender may, not later than 4:00 p.m. on the borrowing date specified in such  Swing Line Advance Notice, make the amount of its Swing Line Advance available to  the applicable Borrower at its office by crediting the account of such Borrower on the  books of the Swing Line Lender in immediately available funds.  (c) Refinancing of Swing Line Advances.  (i) The Swing Line Lender at any time in its sole discretion may  request, on behalf of the applicable Borrower (which hereby irrevocably  authorizes the Swing Line Lender to so request on its behalf), that each Lender  make an Index Rate Loan in an amount equal to such Lender’s Commitment  

 

   95      Percentage of the amount of Swing Line Advances then outstanding.  Such  request shall be made in writing (which written request shall be deemed to be a  Committed Advance Notice for purposes hereof) and in accordance with the  requirements of Section 2.02, without regard to the minimum and multiples  specified therein for the principal amount of Index Rate Loans, but subject to the  unutilized portion of the Revolving Credit Commitments and the conditions set  forth in Section 5.02.  The Swing Line Lender shall furnish Parent Borrower and  the applicable Borrower with a copy of the applicable Committed Advance Notice  promptly after delivering such notice to the Agent.  Each Lender shall make an  amount equal to its Commitment Percentage of the amount specified in such  Committed Advance Notice available to the Agent in immediately available funds  (and the Agent may apply Cash Collateral available with respect to the applicable  Swing Line Advance) for the account of the Swing Line Lender at the Agent’s  Office not later than 1:00 p.m. on the day specified in such Committed Advance  Notice, whereupon, subject to Section 2.03(c)(ii), each Lender that so makes  funds available shall be deemed to have made an Index Rate Loan to the  applicable Borrower in such amount.  The Agent shall remit the funds so received  to the Swing Line Lender.  (ii) If for any reason any Swing Line Advance cannot be refinanced by  such a Committed Borrowing in accordance with Section 2.03(c)(i), the request  for Index Rate Loans submitted by the Swing Line Lender as set forth herein shall  be deemed to be a request by the Swing Line Lender that each of the Lenders fund  its risk participation in the relevant Swing Line Advance and each Lender’s  payment to the Agent for the account of the Swing Line Lender pursuant to  Section 2.03(c)(i) shall be deemed payment in respect of such participation.  (iii) If any Lender fails to make available to the Agent for the account  of the Swing Line Lender any amount required to be paid by such Lender  pursuant to the foregoing provisions of this Section 2.03(c) by the time specified  in Section 2.03(c)(i), the Swing Line 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 Swing Line Lender at a rate per annum  equal to the Overnight Rate, plus any administrative, processing or similar fees  customarily charged by the Swing Line 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 Committed Borrowing or funded participation in the relevant Swing Line  Advance, as the case may be.  A certificate of the Swing Line 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 Swing Line Advances pursuant to this  Section 2.03(c) shall be absolute and unconditional and shall not be affected by  any circumstance, including (A) any setoff, counterclaim, recoupment, defense or  

 

   96      other right which such Lender may have against the Swing Line 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 2.03(c) is  subject to the conditions set forth in Section 5.02.  No such funding of risk  participations shall relieve or otherwise impair the obligation of any Borrower to  repay Swing Line Advances, together with interest as provided herein.  (d) Repayment of Participations.    (i) At any time after any Lender has purchased and funded a risk  participation in a Swing Line Advance, if the Swing Line Lender receives any  payment on account of such Swing Line Advance, the Swing Line Lender will  distribute to such Lender its Commitment Percentage thereof in the same funds as  those received by the Swing Line Lender.  (ii) If any payment received by the Swing Line Lender in respect of  principal or interest on any Swing Line Advance is required to be returned by the  Swing Line Lender under any of the circumstances described in Section 10.09  (including pursuant to any settlement entered into by the Swing Line Lender in its  discretion), each Lender shall pay to the Swing Line Lender its Commitment  Percentage 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  Overnight Rate.  The Agent will make such demand upon the request of the  Swing Line Lender.  The obligations of the Lenders under this clause shall  survive the payment in full of the Obligations and the termination of this  Agreement.  (e) Interest for Account of Swing Line Lender.  The Swing Line Lender shall  be responsible for invoicing Parent Borrower for interest on the Swing Line Advances.   Until each Lender funds its Index Rate Loan or risk participation pursuant to this Section  2.03 to refinance such Lender’s Commitment Percentage of any Swing Line Advance,  interest in respect of such Commitment Percentage shall be solely for the account of the  Swing Line Lender.  (f) Payments Directly to Swing Line Lender.  The Borrowers shall make all  payments of principal and interest in respect of the Swing Line Advances directly to the  Swing Line Lender.  SECTION 2.04  Letters of Credit.    (a) The Letter of Credit Commitment.  (i) Subject to the terms and conditions set forth herein, (A) each  Issuing Bank agrees, in reliance upon the agreements of the Lenders set forth in  this Section 2.04 and within the limits of its Issuing Commitment, (1) from time  to time on any Business Day during the period from the Restatement Date until  

 

   97      the Letter of Credit Expiration Date, to issue Letters of Credit denominated in  Dollars, any Alternative Currency or such other currency as maybe agreed by  such Issuing Bank in its sole discretion and the Agent that is a lawful currency  readily available and freely transferable and convertible into Dollars (which  additional currency, solely for purposes of the applicable Letter of Credit, the  drawings thereunder and the reimbursement thereof, shall be deemed to be an  “Alternative Currency”) for the account of Parent Borrower and its Subsidiaries,  and to amend Letters of Credit previously issued by it, in accordance with  subsection (b) below, 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 Parent Borrower and its Subsidiaries and any drawings thereunder;  provided that after giving effect to any L/C Credit Extension with respect to any  Letter of Credit, (1) the Total Revolving Credit Outstandings shall not exceed the  Loan Cap, (2) the aggregate Outstanding Amount of the Revolving Credit  Advances of any Lender, plus such Lender’s Commitment Percentage of the  Outstanding Amount of all Swing Line Advances, plus such Lender’s  Commitment Percentage of the Outstanding Amount of all L/C Obligations shall  not exceed such Lender’s Revolving Credit Commitment, (3) the L/C Obligations  in respect of Letters of Credit issued in Alternative Currencies shall not exceed  the Alternative Currency Sublimit, (4) the aggregate Outstanding Amount of all  Revolving Credit Advances made to the Canadian Borrowers shall not exceed the  Canadian Sublimit, and (5) the Outstanding Amount of the L/C Obligations shall  not exceed the Letter of Credit Sublimit.  Notwithstanding the foregoing, Morgan  Stanley Bank, N.A. shall not be required to issue any Trade Letters of Credit  without its consent.   Each request by a Borrower for the issuance or amendment  of a Letter of Credit shall be deemed to be a representation by such Borrower that  the L/C Credit Extension so requested complies with the conditions set forth in  the proviso to the preceding sentence.  Within the foregoing limits, and subject to  the terms and conditions hereof, the ability of the Borrowers to obtain Letters of  Credit shall be fully revolving, and accordingly the Borrowers 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.  All Existing Letters of  Credit shall be deemed to have been issued pursuant hereto, and from and after  the Restatement Date shall be subject to and governed by the terms and conditions  hereof.  Each Issuing Bank may, in its discretion, arrange for one or more Letters  of Credit to be issued by Affiliates or branches of such Issuing Bank, in which  case the term “Issuing Bank” shall include any such Affiliate or branch with  respect to Letters of Credit issued by such Affiliate or branch.  (ii) No Issuing Bank shall issue any Letter of Credit, if:  (1) subject to Section 2.04(b)(iii), the expiry date of the requested  Letter of Credit would occur more than twelve months after the date of issuance,  or, in the case of any Letter of Credit denominated in Indian rupees, nineteen  months after the date of issuance, unless the Majority Lenders have approved  such expiry date; or  

 

   98      (2) the expiry date of the requested Letter of Credit would occur after  the Letter of Credit Expiration Date, unless (A) all the Lenders have approved  such expiry date or (2) the applicable Issuing Bank has approved of such expiry  date and the Parent Borrower has agreed that the Outstanding Amount of L/C  Obligations in respect of such requested Letter of Credit shall be Cash  Collateralized or backstopped pursuant to arrangements reasonably satisfactory to  such Issuing Bank prior to the Letter of Credit Expiration Date.  (iii) No Issuing Bank shall be under any obligation to issue any Letter  of Credit if:   (1) any order, judgment or decree of any Governmental  Authority or arbitrator shall by its terms purport to enjoin or restrain such  Issuing Bank from issuing the Letter of Credit, or any Law applicable to  such Issuing Bank or any request or directive (whether or not having the  force of law) from any Governmental Authority with jurisdiction over  such Issuing Bank shall prohibit, or request that such Issuing Bank refrain  from, the issuance of letters of credit generally or such Letter of Credit in  particular or shall impose upon such Issuing Bank with respect to the  Letter of Credit any restriction, reserve or capital requirement (for which  such Issuing Bank is not otherwise compensated hereunder) not in effect  on the Restatement Date, or shall impose upon such Issuing Bank any  unreimbursed loss, cost or expense which was not applicable on the  Restatement Date and which such Issuing Bank in good faith deems  material to it;   (2) the issuance of such Letter of Credit would violate one or  more policies of such Issuing Bank applicable to letters of credit  generally;   (3) except as otherwise agreed by the Agent and such Issuing  Bank, such Letter of Credit is in an initial stated amount less than $20,000;   (4) such Letter of Credit is to be denominated in a currency  other than Dollars or an Alternative Currency;  (5) any Lender is at that time a Defaulting Lender, unless such  Issuing Bank has entered into arrangements, including the delivery of  Cash Collateral, satisfactory to such Issuing Bank (in its sole discretion)  with the applicable Borrower or such Lender to eliminate such Issuing  Bank’s actual or potential Fronting Exposure (after giving effect to  Section 2.14(a)(iv)) with respect to the Defaulting Lender arising from  such Letter of Credit; or  (6) the Letter of Credit contains any provisions for automatic  reinstatement of the stated amount after any drawing thereunder.  

 

   99      (iv) The applicable Issuing Bank shall not amend any Letter of Credit  if such Issuing Bank would not be permitted at such time to issue such Letter of  Credit in its amended form under the terms hereof.  (v) The applicable Issuing Bank shall be under no obligation to amend  any Letter of Credit if (A) such Issuing Bank would have no obligation at such  time to issue the Letter of Credit in its amended form under the terms hereof, or  (B) the beneficiary of such Letter of Credit does not accept the proposed  amendment to such Letter of Credit.  (vi) The applicable Issuing Bank shall act on behalf of the Lenders  with respect to any Letters of Credit issued by it and the documents associated  therewith, and such Issuing Bank shall have all of the benefits and immunities  (A) provided to the Agent in Article IX with respect to any acts taken or  omissions suffered by such Issuing Bank in connection with Letters of Credit  issued by it or proposed to be issued by it and Issuer Documents pertaining to  such Letters of Credit as fully as if the term “Agent” as used in Article IX  included such Issuing Bank with respect to such acts or omissions, and (B) as  additionally provided herein with respect to such Issuing Bank.  (b) Procedures for Issuance and Amendment of Letters of Credit; Auto- Extension Letters of Credit.    (i) Each Letter of Credit shall be issued or amended, as the case may  be, upon the request of any Borrower delivered to an Issuing Bank (with a copy to  the Agent) in the form of a Letter of Credit Application, appropriately completed  and signed by a Responsible Officer of such Borrower.  Such Letter of Credit  Application must be received by the applicable Issuing Bank and the Agent (x)  not later than 11:00 a.m. at least two Business Days prior to the proposed issuance  date or date of amendment, as the case may be, of any Letter of Credit  denominated in Dollars, and (y) not later than 11:00 a.m. at least five Business  Days prior to the proposed issuance date or date of amendment, as the case may  be, of any Letter of Credit denominated in an Alternative Currency; or in each  case such later date and time as such Issuing Bank may agree in a particular  instance in its sole discretion, prior to the proposed issuance date or date of  amendment, as the case may be.  In the case of a request for an initial issuance of  a Letter of Credit, such Letter of Credit Application shall specify in form and  detail reasonably satisfactory to such Issuing Bank: (A) the proposed issuance  date of the requested Letter of Credit (which shall be a Business Day); (B) the  amount and currency thereof; (C) the expiry date thereof; (D) the name and  address of the beneficiary thereof; (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; and (H) such other matters as  such Issuing Bank may reasonably require.  In the case of a request for an  amendment of any outstanding Letter of Credit, such Letter of Credit Application  shall specify in form and detail reasonably satisfactory to such Issuing Bank (1)  

 

   100      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 such Issuing Bank may reasonably require.   Additionally, Parent Borrower and/or the applicable Subsidiary shall furnish to  the applicable Issuing Bank and the Agent such other documents and information  pertaining to such requested Letter of Credit issuance or amendment, including  any Issuer Documents, as such Issuing Bank or the Agent may reasonably require.  (ii) Promptly after receipt of any Letter of Credit Application, the  applicable Issuing Bank will confirm with the Agent (by telephone or in writing)  that the Agent has received a copy of such Letter of Credit Application from a  Borrower and, if not, such Issuing Bank will provide the Agent with a copy  thereof.  Unless such Issuing Bank has received written notice from any Lender,  the Agent or any Loan Party, at least one 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 V shall not then be satisfied, then,  subject to the terms and conditions hereof, such Issuing Bank shall, on the  requested date, issue a Letter of Credit for the account of such Borrower (or the  applicable Subsidiary subject to Section 2.04(l)) or enter into the applicable  amendment, as the case may be, in each case in accordance with such 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 such Issuing Bank a risk participation in  such Letter of Credit in an amount equal to the product of such Lender’s  Commitment Percentage times the amount of such Letter of Credit.  (iii) If the applicable Borrower so requests in any applicable Letter of  Credit Application, the applicable Issuing Bank may, in its sole discretion, agree  to issue a Letter of Credit that has automatic extension provisions (each, an  “Auto-Extension Letter of Credit”); provided that any such Auto-Extension Letter  of Credit must permit the such Issuing Bank to prevent any such extension at least  once in each twelve-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-month period to be  agreed upon at the time such Letter of Credit is issued.  Unless otherwise directed  by the applicable Issuing Bank, neither Parent Borrower nor any Subsidiary shall  be required to make a specific request to such 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 applicable Issuing  Bank to permit the extension of such Letter of Credit at any time to an expiry date  not later than the Letter of Credit Expiration Date (unless the applicable Issuing  Bank has otherwise agreed, in which case such expiry date may be later than the  Letter of Credit Expiration Date, and if any such Letter of Credit is outstanding on  the Letter of Credit Expiration Date, Parent Borrower shall Cash Collateralize the  Outstanding Amount of all L/C Obligations with respect to such Letter of Credit);  provided, however, that such Issuing Bank shall not permit any such extension if  (A) such Issuing Bank has determined that it would not be permitted, or would  

 

   101      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 clause (ii) or  (iii) of Section 2.04(a) or otherwise), or (B) it has received notice (which may be  by telephone or in writing) on or before the day that is seven Business Days  before the Non-Extension Notice Date (1) from the Agent that the Majority  Lenders have elected not to permit such extension or (2) from the Agent, any  Lender, Parent Borrower or the applicable Subsidiary that one or more of the  applicable conditions specified in Section 5.02 is not then satisfied, and in each  such case directing such Issuing Bank not to permit such extension.  (iv) 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 applicable Issuing Bank will also deliver to the applicable  Borrower or Subsidiary and the Agent a true and complete copy of such Letter of  Credit or amendment.  (c) Drawings and Reimbursements; Funding of Participations.  (i) The Issuing Bank for any Letter of Credit shall, within the time  allowed by applicable Laws or the specific terms of the Letter of Credit following  its receipt thereof, examine all documents purporting to represent a demand for  payment under such Letter of Credit.  Such Issuing Bank shall promptly after such  examination notify the Agent and the applicable Borrower or Subsidiary in  writing of such demand for payment if such Issuing Bank has made or will make  a disbursement thereunder; provided that any failure to give or delay in giving  such notice shall not relieve the applicable Borrower of its obligation to reimburse  such Issuing Bank and the Lenders with respect to any such disbursement.  In the  case of a Letter of Credit denominated in an Alternative Currency, the applicable  Borrower shall reimburse such Issuing Bank in such Alternative Currency, unless  (A) the applicable Issuing Bank (at its option) shall have specified in such notice  that it will require reimbursement in Dollars, or (B) in the absence of any such  requirement for reimbursement in Dollars, the applicable Borrower shall have  notified such Issuing Bank promptly following receipt of the notice of drawing  that such Borrower or applicable Subsidiary will reimburse such Issuing Bank in  Dollars.  In the case of any such reimbursement in Dollars of a drawing under a  Letter of Credit denominated in an Alternative Currency, such Issuing Bank shall  notify the applicable Borrower and/or Subsidiary of the Dollar Equivalent of the  amount of the drawing promptly following the determination thereof.  If an  Issuing Bank shall make any payment under a Letter of Credit, the applicable  Borrower or Subsidiary shall reimburse such Issuing Bank through the Agent in  an amount equal to the amount of such drawing and in the applicable currency not  later than 2:00 p.m. (or the Applicable Time in the case of reimbursement in an  Alternative Currency) on the date the applicable Borrower or Subsidiary receives  notice of such payment by the applicable Issuing Bank (each such date, an “Honor  Date”), the applicable Borrower or Subsidiary shall reimburse such Issuing Bank  through the Agent in an amount equal to the amount of such drawing.  If the  applicable Borrower or Subsidiary fails to so reimburse such Issuing Bank by  

 

   102      such time, the Agent shall promptly notify each Lender of the Honor Date, the  amount of the unreimbursed drawing (expressed in Dollars in the amount of the  Dollar Equivalent thereof in the case of a Letter of Credit denominated in an  Alternative Currency) (the “Unreimbursed Amount”), and the amount of such  Lender’s Commitment Percentage thereof.  In such event, the applicable  Borrower shall be deemed to have requested a Revolving Credit Borrowing of  Index Rate Loans 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 2.02 for the principal amount of Index Rate Loans, but subject to the  amount of the unutilized portion of the Revolving Credit Commitments and the  conditions set forth in Section 5.02 (other than the delivery of a Committed  Advance Notice).  Any notice given by such Issuing Bank or the Agent pursuant  to this Section 2.04(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 2.04(c)(i)  make funds available (and the Agent may apply Cash Collateral provided for this  purpose) for the account of the applicable Issuing Bank, in Dollars, at the Agent’s  Office in an amount equal to its Commitment Percentage 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 2.04(c)(iii), each  Lender that so makes funds available shall be deemed to have made a Base Rate  Advance to the applicable U.S. Borrower or a Canadian Prime Rate Advance or  Canadian Base Rate Advance to the applicable Canadian Borrower, as applicable,  in such amount.  The Agent shall remit the funds so received to such Issuing Bank  in Dollars or Canadian Dollars, as applicable.   (iii) With respect to any Unreimbursed Amount that is not fully  refinanced by a Revolving Credit Borrowing of Base Rate Advances, Canadian  Base Rate Advances or Canadian Prime Rate Advances because the conditions set  forth in Section 5.02 cannot be satisfied or for any other reason, the applicable  Borrower shall be deemed to have incurred from the applicable Issuing Bank an  L/C Borrowing in the amount of the Unreimbursed Amount that is not so  refinanced, which L/C Borrowing shall be due and payable on written demand  (together with interest) and shall bear interest at the Default Rate.  In such event,  each Lender’s payment to the Agent for the account of such Issuing Bank  pursuant to Section 2.04(c)(ii) shall be deemed payment in respect of its  participation in such L/C Borrowing and shall constitute an L/C Advance from  such Lender in satisfaction of its participation obligation under this Section 2.04.  (iv) Until each Lender funds its Revolving Credit Advance or L/C  Advance pursuant to this Section 2.04(c) to reimburse the applicable Issuing Bank  for any amount drawn under any Letter of Credit, interest in respect of such  Lender’s Commitment Percentage of such amount shall be solely for the account  of such Issuing Bank.  

 

   103      (v) Each Lender’s obligation to make Revolving Credit Advances or  L/C Advances to reimburse the applicable Issuing Bank for amounts drawn under  Letters of Credit, as contemplated by 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 such Issuing Bank, any Borrower, any other 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  Revolving Credit Advances pursuant to this Section 2.04(c) is subject to the  conditions set forth in Section 5.02 (other than delivery by a Borrower of a  Committed Advance Notice).  No such making of an L/C Advance shall relieve or  otherwise impair the obligation of the applicable Borrower and/or Subsidiary to  reimburse such Issuing Bank for the amount of any payment made by such  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 applicable Issuing Bank 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)(ii), then, without limiting the other provisions of this  Agreement, such Issuing Bank 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 such Issuing Bank at a rate per annum equal to the  applicable Overnight Rate from time to time in effect, plus any administrative,  processing or similar fees customarily charged by such 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  Revolving Credit Advance included in the relevant Revolving Credit Borrowing  or L/C Advance in respect of the relevant L/C Borrowing, as the case may be.  A  certificate of such Issuing Bank submitted to any Lender (through the Agent) with  respect to any amounts owing under this clause (vi) shall be conclusive absent  manifest error.  (d) Repayment of Participations.    (i) At any time after an Issuing Bank has made a payment under any  Letter of Credit and has received from any Lender such Lender’s L/C Advance in  respect of such payment in accordance with Section 2.04(c), if the Agent receives  for the account of such Issuing Bank any payment in respect of the related  Unreimbursed Amount or interest thereon (whether directly from any Borrower,  any Subsidiary or otherwise, including proceeds of Cash Collateral applied  thereto by the Agent), the Agent will distribute to such Lender its Commitment  Percentage thereof in the same funds as those received by the Agent.  (ii) If any payment received by the Agent for the account of an Issuing  Bank pursuant to Section 2.04(c)(i) is required to be returned under any of the  

 

   104      circumstances described in Section 10.05 (including pursuant to any settlement  entered into by such Issuing Bank in its discretion), each Lender shall pay to the  Agent for the account of such Issuing Bank its Commitment Percentage 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  applicable Overnight Rate from time to time in effect.  The obligations of the  Lenders under this clause shall survive the payment in full of the Obligations and  the termination of this Agreement.  (e) Obligations Absolute.  The obligation of the Borrowers and the applicable  Subsidiaries to reimburse an Issuing Bank for each drawing under each Letter of Credit  and to repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and  shall be paid strictly in accordance with the terms of this Agreement under all  circumstances, including the following:  (i) any lack of validity or enforceability of such Letter of Credit, this  Agreement, or any other Loan Document;  (ii) the existence of any claim, counterclaim, setoff, defense or other  right that any Borrower or any other Subsidiary may have at any time against any  beneficiary or any transferee of such Letter of Credit (or any Person for whom  any such beneficiary or any such transferee may be acting), an Issuing Bank or  any other Person, whether in connection with this Agreement, the transactions  contemplated hereby or by such Letter of Credit or any agreement or instrument  relating thereto, or any unrelated transaction;  (iii) any draft, demand, certificate or other document presented under  such 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;  (iv) any payment by an Issuing Bank under such Letter of Credit  against presentation of a draft or certificate that does not strictly comply with the  terms of such Letter of Credit; or any payment made by an 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,  interim receiver, monitor, 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;   (v) any adverse change in the relevant exchange rates or in the  availability of the relevant Alternative Currency to any Borrower or any other  Subsidiary or in the relevant currency markets generally; or  (vi) any other circumstance or happening whatsoever, whether or not  similar to any of the foregoing, including any other circumstance that might  

 

   105      otherwise constitute a defense available to, or a discharge of, any Borrower or any  other Subsidiary.  The applicable Borrower and/or Subsidiary 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 the instructions of such Borrower or Subsidiary or other  irregularity, the applicable Borrower and/or Subsidiary will immediately notify the  applicable Issuing Bank.  The Borrowers and their Subsidiaries shall be conclusively  deemed to have waived any such claim against the applicable Issuing Bank and its  correspondents unless such notice is given as aforesaid.  (f) Role of Issuing Banks.  Each Lender and each Borrower agrees, on behalf  of itself and its Subsidiaries, that, in paying any drawing under a Letter of Credit, an  Issuing Bank shall not have any responsibility to obtain any document (other than any  sight 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 Banks, the  Agent, any of their respective Related Parties nor any correspondent, participant or  assignee of an 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 or the  Majority Lenders, as applicable; (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 Issuer  Document. Parent Borrower and its Subsidiaries hereby assume all risks of the acts or  omissions of any beneficiary or transferee with respect to its use of any Letter of Credit  issued at its request; provided, however, that this assumption is not intended to, and shall  not, preclude Parent Borrower or any Subsidiary 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 Banks, the Agent, any of their respective Related Parties nor any  correspondent, participant or assignee of an Issuing Bank shall be liable or responsible  for any of the matters described in clauses (i) through (vi) of Section 2.04(e); provided,  however, that anything in such clauses to the contrary notwithstanding, Parent Borrower  or its Subsidiaries may have a claim against an Issuing Bank, and such Issuing Bank may  be liable to Parent Borrower or its Subsidiaries, to the extent, but only to the extent, of  any direct, as opposed to consequential or exemplary, damages suffered by Parent  Borrower or any Subsidiary which Parent Borrower or such Subsidiary proves were  caused by such Issuing Bank’s willful misconduct or gross negligence or such Issuing  Bank’s willful failure to pay under any Letter of Credit after the presentation to it by the  beneficiary of a sight 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, an  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 such Issuing Bank shall not be responsible for the validity or sufficiency of  any instrument transferring or assigning or purporting to transfer 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.  

 

   106      (g) Applicability of ISP and UCP.  Unless otherwise expressly agreed by the  applicable Issuing Bank and the applicable Borrower when a Letter of Credit is issued  (including any such agreement applicable to an Existing Letter of Credit), (i) the rules of  the ISP shall apply to each Standby Letter of Credit, and (ii) the rules of the Uniform  Customs and Practice for Documentary Credits, as most recently published by the  International Chamber of Commerce at the time of issuance (the “UCP”) shall apply to  each Trade Letter of Credit.  (h) Letter of Credit Fees.  The applicable Borrower and/or Subsidiary shall  pay to the Agent for the account of each Lender in accordance with its Commitment  Percentage a Letter of Credit fee (the “Letter of Credit Fee”) (i) for each Trade Letter of  Credit, equal to 50% of the Applicable Margin for Term SOFR Advances times the daily  amount available to be drawn under such Letter of Credit, and (ii) for each Standby Letter  of Credit equal to the Applicable Margin for Term SOFR Advances times the Dollar  Equivalent of the daily amount available to be drawn under such Letter of Credit;  provided, however, any Letter of Credit Fees otherwise payable for the account of a  Defaulting Lender with respect to any Letter of Credit as to which such Defaulting  Lender has not provided Cash Collateral satisfactory to the applicable Issuing Bank  pursuant to this Section 2.04 shall be payable, to the maximum extent permitted by  applicable Requirement of Law, to the other Lenders in accordance with the upward  adjustments in their respective Commitment Percentages allocable to such Letter of  Credit pursuant to Section 2.14(a)(iv), with the balance of such fee, if any, payable to  such Issuing Bank for its own account.  For purposes of computing the daily amount  available to be drawn under any Letter of Credit, the amount of such Letter of Credit  shall be determined in accordance with Section 1.07.  Letter of Credit Fees shall be (i)  due and payable in arrears on the first 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 Letter of Credit Expiration Date and thereafter on written demand and (ii)  computed on a quarterly basis in arrears.  If there is any change in the applicable Standby  Letter of Credit Fee during any quarter, the daily amount available to be drawn under  each Standby Letter of Credit shall be computed and multiplied by the applicable  Standby Letter of Credit Fee separately for each period during such quarter that such  applicable Standby Letter of Credit Fee was in effect.  Notwithstanding anything to the  contrary contained herein, upon the request of the Majority Lenders, while any Event of  Default exists, all Letter of Credit Fees shall accrue at the Default Rate.  (i) Fronting Fee and Documentary and Processing Charges Payable to Issuing  Banks.  The applicable Borrower and/or Subsidiary shall pay directly to the applicable  Issuing Bank for its own account a fronting fee (i) with respect to each Trade Letter of  Credit, at the rate per annum equal to 0.125%, computed on the amount of such Letter of  Credit, and payable upon the issuance thereof, (ii) with respect to any amendment of a  Trade Letter of Credit increasing the amount of such Letter of Credit, at a rate separately  agreed between Parent Borrower and such Issuing Bank, computed on the amount of such  increase, and payable upon the effectiveness of such amendment, and (iii) with respect to  each Standby Letter of Credit, at the rate per annum equal to 0.125%, computed on the  daily amount available to be drawn under such Letter of Credit on a quarterly basis in  arrears  Such fronting fee shall be due and payable on the first day of each February,  

 

   107      May, August and November in respect of the most recently-ended quarterly period (or  portion thereof, in the case of the first payment), commencing with the first such date to  occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date  and thereafter on written demand.  For purposes of computing the daily amount available  to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be  determined in accordance with Section 1.07.  In addition, the applicable Borrower or, in  the case of any Letter of Credit issued at the request of a Subsidiary, such Subsidiary  shall pay directly to each Issuing Bank for its own account the customary issuance,  presentation, amendment and other processing fees, and other standard costs and charges,  of such 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.  (j) Conflict with Issuer Documents.  In the event of any conflict between the  terms hereof and the terms of any Issuer Document, the terms hereof shall control.  (k) Monthly Report.  Each Issuing Bank, on the last Business Day of each  month until the Termination Date, shall calculate the L/C Obligations on such date in  respect of Letters of Credit issued by it (converting any amounts of the L/C Obligations  which are denominated in an Alternative Currency to Dollars for purposes of such  calculation) and shall promptly send notice of such L/C Obligations to the Agent, the  Parent Borrower and each Lender, and the Agent shall then determine the excess amount,  if any, referred to in the first sentence of Section 2.10(b)(i) or (ii) and shall promptly  inform the Parent Borrower of such amount and the Parent Borrower shall promptly upon  receipt thereof make the payments provided for in Section 2.10(b)(i) or (ii) above if  applicable.  (l) Letters of Credit Issued for Subsidiaries.  Notwithstanding that a Letter of  Credit issued or outstanding hereunder is in support of any obligations of, or is for the  account of, a Subsidiary, the Borrowers shall be obligated to reimburse the applicable  Issuing Bank hereunder for any and all drawings under such Letter of Credit.  The  Borrowers hereby acknowledge that the issuance of Letters of Credit for the account of  Subsidiaries inures to the benefit of Borrowers, and that the Borrowers’ business derives  substantial benefits from the businesses of such Subsidiaries.  SECTION 2.05  Fees.  (a)  Commitment Fee.  The Borrowers agree to pay to the  Agent for the account of each Lender in accordance with its Commitment Percentage, a  commitment fee equal to the Unused Commitment Fee Rate multiplied by the actual daily  amount by which the Aggregate Commitments exceed the Total Revolving Credit Outstandings.   The commitment fee shall accrue at all times during the Availability Period, including at any  time during which one or more of the conditions in Article V is not met, and shall be due and  payable quarterly in arrears on the first day of each February, May, August and November,  commencing with the first such date to occur after the Restatement Date, and on the last day of  the Availability Period.   (b) Other Fees.  The Borrowers hereby agree to pay the fees and charges  referred to in the Fee Letter.  

 

   108      SECTION 2.06  Reduction and Increase of the Revolving Credit Commitments;  Additional Issuing Banks.    (a)  Parent Borrower may, upon notice to the Agent, terminate the unused  portions of the Letter of Credit Sublimit, the Swing Line Sublimit, or the unused Revolving  Credit Commitments, or from time to time permanently reduce the unused portions of the Letter  of Credit Sublimit, the Swing Line Sublimit, or the unused Revolving Credit Commitments;  provided that (i) any such notice shall be received by the Agent not later than 11:00 a.m. four  Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall  be in an aggregate amount of $5,000,000 or any whole multiple of $1,000,000 in excess thereof,  (iii) Parent Borrower shall not terminate or reduce the unused portions of the Letter of Credit  Sublimit, the Swing Line Sublimit, or the unused Revolving Credit Commitments if, after giving  effect thereto and to any concurrent prepayments hereunder, the Total Revolving Credit  Outstandings would exceed the Loan Cap and (iv) if, after giving effect to any reduction of the  unused Revolving Credit Commitments, the Alternative Currency Sublimit, the Letter of Credit  Sublimit or the Swing Line Sublimit exceeds the amount of the Revolving Credit Commitments,  such Sublimit shall be automatically reduced by the amount of such excess.  The Agent will  promptly notify the Lenders of any such notice of termination or reduction of Commitments.  A  notice provided by Parent Borrower under this clause (a) may state that such notice is  conditioned upon the availability of other financing, in which case such notice may be revoked  by Parent Borrower (by notice to the Agent prior to the specified date of such termination or  reduction) if such condition is not satisfied.  The amount of any such Revolving Credit  Commitment reduction shall not be applied to the Alternative Currency Sublimit, the Letter of  Credit Sublimit or the Swing Line Sublimit unless otherwise specified by Parent Borrower.  Any  reduction of any Commitments shall be applied to the Commitment of each applicable Lender  according to its Commitment Percentage.  All fees accrued until the effective date of any  termination of any Commitments shall be paid on the effective date of such termination.  (b) Parent Borrower shall have the right, at any time and from time to time  after the Restatement Date and prior to the Termination Date to (i) increase the amount of  the Revolving Credit Commitments, which increased Revolving Credit Commitments  shall be provided by one or more Lenders (subject to the consent of such Lenders in their  sole and absolute discretion) or Assuming Lenders (provided that any such Assuming  Lender shall be subject to the consent of the Agent and the Issuing Banks in their sole  and absolute discretion) (any such increase, “Additional Revolving Commitments”), (ii)  increase the Issuing Commitment of an Issuing Bank (subject to the consent of such  Issuing Bank in its sole and absolute discretion) and (iii) establish a new class of term  loans under this Agreement on a “last-out” basis (any such term loans established in  accordance with this Section 2.06(b), “FILO Term Loans”), which FILO Term Loans  shall be provided by one or more Lenders (subject to the consent of such Lenders in their  sole and absolute discretion) or Assuming Lender (provided that any such Assuming  Lender shall be subject to the consent of the Agent and the Issuing Banks in their sole  and absolute discretion) (each such increase or incurrence under clause (i), (ii) or (iii)  being a “Commitment Increase”), on and subject to the following terms:  (i) The aggregate amount of Commitment Increases in the form of  Additional Revolving Commitments and/or FILO Term Loans shall not exceed  

 

   109      $500,000,000;  provided, that the aggregate amount of FILO Term Loans  established pursuant to this Section 2.06(b) shall not exceed $100,000,000 in the  aggregate.  (ii) The amount of each Commitment Increase by any Lender or any  Assuming Lender shall be in a minimum amount of $50,000,000 or an integral  multiple of $5,000,000 in excess thereof.  (iii) Any such Commitment Increase in the form of Additional  Revolving Commitments above shall be on the same terms as the Revolving  Credit Commitments, except with respect to (x) any commitment, arrangement,  upfront, or similar fees payable in connection therewith and (y) subject to the  immediately succeeding clause (iv), interest rates or unused fees.  (iv) In no event shall the interest rates or unused fees to be payable in  connection with any Additional Revolving Commitments be higher than the  amounts paid to the then existing Lenders in respect of their applicable Revolving  Credit Commitments, unless such increased interest rates or unused fees, as  applicable, are also to be paid to all then existing Lenders in respect of their  applicable Revolving Credit Commitments.  (v) No proposed Commitment Increase in the form of Additional  Revolving Commitments shall occur unless each of the following requirements in  respect thereof shall have been satisfied:  (1) The Agent shall have received from Parent Borrower an  irrevocable written notice (a “Commitment Increase Notice”), dated not later than  10 days (or such shorter period agreed to by the Agent) before such proposed  Commitment Increase Effective Date, that (1) specifies (w) (if applicable) the  proposed Issuing Commitment increase of each Issuing Bank and/or of the  Lenders which are to become Issuing Banks and the amount of each Issuing  Bank’s Issuing Commitment after giving effect thereto, (x) the aggregate amount  of the proposed Commitment Increase, (y) the Lenders whose Revolving Credit  Commitments are to be increased by the proposed Commitment Increase and/or  the Assuming Lenders which are to become Lenders and the amount by which  each such Lender’s Revolving Credit Commitment is to be so increased and/or the  amount of each such Assuming Lender’s Revolving Credit Commitment and (z)  the date (the “Commitment Increase Effective Date”) on which the proposed  Commitment Increase shall become effective, and (2) has been signed by each  Lender whose Revolving Credit Commitment is to be increased, evidencing the  consent of such Lender to the proposed Commitment Increase and Issuing Bank  whose Issuing Commitment is to be increased evidencing the consent of such  Issuing Bank thereto and/or by each such Assuming Lender; and  (2) On and as of the Commitment Increase Effective Date of the  proposed Commitment Increase (1) the following statements shall be true (and the  giving of the applicable Commitment Increase Notice shall constitute a  

 

   110      representation and warranty by Parent Borrower that on such Commitment  Increase Effective Date such statements are true):  (x) The representations and warranties contained in  Section 6.01 are correct on and as of such Commitment Increase  Effective Date before and after giving effect to the proposed  Commitment Increase, as though made on and as of such date, except  to the extent that any such representation or warranty is stated to relate  to an earlier date, in which case such representation or warranty shall  be correct on and as of such earlier date; and  (y) No event has occurred and is continuing, or would result  from such Commitment Increase, which constitutes an Event of  Default or Default; and   (z) The Agent shall have received such other approvals,  opinions or documents as the Agent may reasonably request.  (vi) No proposed Commitment Increase in the form of FILO Term  Loans shall occur unless each of the following requirements in respect thereof  shall have been satisfied:  (1) Such FILO Term Loans shall not have any obligors other than the  Loan Parties and shall not be secured by any assets other than the Collateral;   (2) Such FILO Term Loans shall not have a maturity date earlier than  the Termination Date;   (3) Such FILO Term Loans shall not provide for any amortization or  mandatory prepayments prior to the maturity thereof except for customary  amortization and mandatory prepayments reasonably acceptable to the Agent;  (4) Such FILO Term Loans may provide for incremental advance rates  different from those set forth in the definition of “Borrowing Base” so long as  such advance rates do not permit the Total Revolving Credit Outstandings plus  the aggregate principal amount of the FILO Term Loans to exceed the Borrowing  Base that would result on such date if each of the advance rates set forth in the  definition of “Borrowing Base” were 95%;   (5) FILO Term Loans may not be repaid or prepaid other than to the  extent set forth in clause (3) above and (x) in connection with a termination of all  of the Aggregate Commitments and payment in full in cash (or cash  collateralization, as applicable) of all Revolving Credit Advances, Swing Line  Advances and L/C Obligations and (y) at any time when the Payment Conditions  to make a Restricted Payment are satisfied;   (6) On and as of the Commitment Increase Effective Date of the  proposed Commitment Increase, the following statements shall be true (and the  

 

   111      giving of the applicable Commitment Increase Notice shall constitute a  representation and warranty by Parent Borrower that on such Commitment  Increase Effective Date such statements are true):  (x) The representations and warranties contained in  Section 6.01 are correct on and as of such Commitment Increase  Effective Date before and after giving effect to the proposed  Commitment Increase, as though made on and as of such date, except  to the extent that any such representation or warranty is stated to relate  to an earlier date, in which case such representation or warranty shall  be correct on and as of such earlier date; and  (y) No event has occurred and is continuing, or would result  from such Commitment Increase, which constitutes an Event of  Default or Default; and   (z) The Agent shall have received such other approvals,  opinions or documents as the Agent may reasonably request; and   (7) Each of the other terms and conditions applicable to the FILO  Term Loans shall be acceptable to the Agent.   (vii) Promptly following its receipt of a Commitment Increase Notice in  proper form, the Agent shall deliver copies thereof to each Lender and Issuing  Bank.  If, and only if, all of the terms, conditions and requirements specified in  paragraphs (i) through (iii) are satisfied in respect of any proposed Commitment  Increase on and as of the proposed Commitment Increase Effective Date thereof  and in the case of each such Assuming Lender, an Assumption Agreement, duly  executed by such Assuming Lender, the Agent and the Parent Borrower, has been  received by the Agent, then, as of such Commitment Increase Effective Date and  from and after such date, (1) the Revolving Credit Commitments of the Lenders  consenting to such Commitment Increase shall be increased by the respective  amounts specified in the Commitment Increase Notice pertaining thereto, (2)  references herein to the amounts of the Lenders’ respective Revolving Credit  Commitments shall refer to respective amounts giving effect to such Commitment  Increase, and (3) each such Assuming Lender shall be a Lender and an Issuing  Bank, if applicable, for all purposes hereof, and the Agent shall record all relevant  information with respect to such Assuming Lender and its Revolving Credit  Commitment and, if applicable, with respect to the increased Issuing Commitment  of an Issuing Bank in the Register;  (viii) It is understood that no Lender shall have any obligation  whatsoever to agree to any request made by Parent Borrower for a Commitment  Increase;  (ix) As part of such Commitment Increase in the form of Additional  Revolving Commitments, such Lender or Assuming Lender shall purchase  

 

   112      assignments in the Revolving Credit Advances and Revolving Credit  Commitments of the other Lenders so that after giving effect thereto, the  percentage held by each Lender of the Aggregate Commitments is the same as  prior to such Commitment Increase and such Lender or Assuming Lender shall  have acquired a ratable participation in all Swing Line Advances as contemplated  by Section 2.03(c)).  In connection therewith, on each Commitment Increase  Effective Date, (A) each Lender whose Revolving Credit Commitment has been  increased (each such Lender being an “Increasing Lender”) shall, before 2:00 p.m.  (New York City time) on such Commitment Increase Effective Date, make  available for the account of its Lending Office to the Agent at the address  specified in Section 10.02, in same day funds, an amount equal to the excess of  (1) such Increasing Lender’s ratable portion of the Revolving Credit Advances  then outstanding (calculated based on its Revolving Credit Commitment as a  percentage of the Aggregate Commitments of the Lenders (including each such  Assuming Lender) outstanding after giving effect to the relevant Commitment  Increase) over (2) the aggregate principal amount of then outstanding Revolving  Credit Advances made by such Increasing Lender and (B) each such Assuming  Lender shall before 2:00 p.m. (New York City time) on such Commitment  Increase Effective Date, make available for the account of its Lending Office to  the Agent at the address specified in Section 10.02 in same day funds, an amount  equal to such Assuming Lender’s ratable portion of the Revolving Credit  Advances then outstanding (calculated based on its Revolving Credit  Commitment as a percentage of the Aggregate Commitments of the Lenders  (including each such Assuming Lender) outstanding after giving effect to the  relevant Commitment Increase); and  (x) After the Agent’s receipt of such funds from each such Increasing  Lender and such Assuming Lender, the Agent will promptly thereafter cause to be  distributed like funds to the other Lenders for the account of their respective  Lending Offices in an amount to each other Lender such that the aggregate  amount of the outstanding Revolving Credit Advances owing to each Lender  (including each such Assuming Lender) after giving effect to such distribution  equals such Lender’s ratable portion of the Revolving Credit Advances then  outstanding (calculated based on its Revolving Credit Commitment as a  percentage of the Aggregate Commitments of the Lenders outstanding after  giving effect to the relevant Commitment Increase).  (c) Parent Borrower may at any time, upon at least five Business Days’ prior  written notice to the Agent and the Lenders or as part of a proposed Commitment  Increase pursuant to this Section 2.06, designate (i) as an Issuing Bank any Lender that  has agreed in writing to act as an Issuing Bank and (ii) the Issuing Commitment of such  Lender.  Thereupon, any Lender so designated as an Issuing Bank shall thenceforth issue  Letters of Credit on the terms and subject to the conditions herein, and the Agent shall  record all relevant information with respect to such Lender as such Issuing Bank in the  Register.  

 

   113      (d) Notwithstanding anything to the contrary in this Agreement, each of the  parties hereto hereby agrees that this Agreement shall be amended to the extent   necessary to reflect the existence and terms of any Commitment Increases incurred  pursuant to this Section 2.06. Any such amendment may be effected in writing by the  Agent and the Loan Parties and furnished to the other parties hereto.   SECTION 2.07  Repayment of Advances.  (a)  Each Borrower shall repay in full  the principal amount of each Revolving Credit Advance made to it owing to each Lender,  together with accrued interest and fees thereon, on the Termination Date.  (b) Swing Line Advances.  The applicable Borrower shall repay the Swing  Line Lender and each Lender that has made a Swing Line Advance for the account of  such Borrower, on the earlier of (i) the date that is ten (10) days after the date of such  Advance and (ii) the Termination Date, the principal amount of each such Swing Line  Advance made to such Borrower by the Swing Line Lender and each such Lender and  outstanding on such date.  SECTION 2.08  Interest on Advances.  Each Borrower shall pay interest on the  unpaid principal amount of each Advance made to it by each Lender from the date of such  Advance until such principal amount shall be paid in full, at the following rates per annum:  (a) Index Rate Loans; Alternative Currency Daily Rate Advances.  If such  Advance is an Index Rate Loan, a rate per annum equal at all times to the sum of (x) the  Base Rate, Canadian Base Rate or Canadian Prime Rate, as applicable, in effect from  time to time plus (y) the respective Applicable Margin in effect from time to time,  payable quarterly on the first day of each February, May, August and November. If such  Advance is an Alternative Currency Daily Rate Advance, a rate per annum equal at all  times to the sum of (x) the applicable Alternative Currency Daily Rate in effect from time  to time plus (y) the respective Applicable Margin in effect from time to time, payable  quarterly on the first day of each February, May, August and November.   (b) Contract Rate Loans.  If such Advance is a Contract Rate Loan, a rate per  annum equal at all times during each Interest Period for such Advance to the sum of (x)  Term SOFR, the BA Rate or the applicable Alternative Currency Term Rate, as  applicable, for such Interest Period plus (y) the respective Applicable Margin in effect  from time to time, payable on the last day of such Interest Period and, if such Interest  Period has a duration of more than three months, on each day which occurs during such  Interest Period every three months from the first day of such Interest Period.  (c) Swing Line Advances.  If such Advance is a Swing Line Advance, the rate  per annum for Base Rate Advances if made in Dollars to a U.S. Borrower, for Canadian  Base Rate Advances if made in Dollars to a Canadian Borrower, or for Canadian Prime  Rate Advances if made in Canadian Dollars to a Canadian Borrower.  (d) Default Interest.  (i)  If any amount of principal of any Advance is not paid  when due, whether at stated maturity, by acceleration or otherwise, such amount shall  

 

   114      thereafter bear interest at a fluctuating interest rate per annum at all times equal to the  Default Rate to the fullest extent permitted by applicable Requirement of Law.  (i) If any amount (other than principal of any Advance) payable by  any Borrower under any Loan Document is not paid when due (without regard to  any applicable grace periods), whether at stated maturity, by acceleration or  otherwise, then upon the request of the Majority Lenders, such amount shall  thereafter bear interest at a fluctuating interest rate per annum at all times equal to  the Default Rate to the fullest extent permitted by applicable Requirement of Law.  (ii) Upon the request of the Majority Lenders or the Agent (or, in the  case of any Event of Default under Section 8.01(e), automatically), while any  Event of Default exists, the Parent Borrower or the applicable Borrower  shall pay  interest on the principal amount of all outstanding Obligations hereunder at a  fluctuating interest rate per annum at all times equal to the Default Rate to the  fullest extent permitted by applicable Requirement of Law.    (iii) Accrued and unpaid interest on past due amounts (including  interest on past due interest) shall be due and payable upon written demand.  SECTION 2.09  Interest Rate Determination.  (a)  The Agent shall give prompt  notice to the Parent Borrower, the applicable Borrower and the Lenders of the applicable interest  rate determined by the Agent for purposes of Section 2.08(a) or (b).  (b)  If in connection with any request for a Term SOFR Advance, an Alternative  Currency Advance or a BA Rate Advance or a conversion of Index Rate Loans to Term SOFR  Advances, Alternative Currency Advances or BA Rate Advances or a continuation of any of  such Advances, as applicable, (i)  the Agent determines, in consultation with Parent Borrower,  (which determination shall be conclusive absent manifest error) that (A) no Successor Rate for  the Relevant Rate for the applicable Agreed Currency has been determined in accordance with  Section 2.09(c) and the circumstances under clause (i) of Section 2.09(c)  or the Scheduled  Unavailability Date,  has occurred with respect to such Relevant Rate (as applicable), or (B)  adequate and reasonable means do not otherwise exist for determining the Relevant Rate for the  applicable Agreed Currency for any determination date(s) or requested Interest Period, as  applicable, with respect to a proposed Term SOFR Advance, an Alternative Currency Advance  or a BA Rate Advance or in connection with an existing or proposed Index Rate Loan, or (ii) the  Agent or the Majority Lenders determine, in consultation with Parent Borrower, that for any  reason the Relevant Rate with respect to a proposed Advance denominated in an Agreed  Currency for any requested Interest Period or determination date(s) does not adequately and  fairly reflect the cost to such Lenders of funding such Advance, the Agent will promptly so  notify Parent Borrower and each Lender.  Thereafter, (x) the obligation of the Lenders to make  or maintain Advances in the affected currencies, as applicable, or to convert Index Rate Loans to  Term SOFR Advances, Alternative Currency Advances or BA Rate Advances, as applicable,  shall be suspended in each case to the extent of the affected Term SOFR Advances, Alternative  Currency Advances or BA Rate Advances or Interest Period or determination date(s), as  applicable, and (y) in the event of a determination described in the preceding sentence with  respect to the Term SOFR component of the Base Rate or the Canadian Base Rate, or the BA  

 

   115      Rate component of the Canadian Prime Rate, as applicable, the utilization of the Term SOFR  component in determining the Base Rate or the Canadian Base Rate, and the utilization of the  BA Rate component of the Canadian Prime Rate, as applicable, shall be suspended, in each case  until the Agent (or, in the case of a determination by the Majority Lenders, until the Agent upon  instruction of the Majority Lenders) revokes such notice.  Upon receipt of such notice, (i) the  applicable Borrower may revoke any pending request for a Borrowing of, or conversion to Term  SOFR Advances, BA Rate Advances, or Borrowing of, or continuation of Alternative Currency  Advances to the extent of the affected Term SOFR Advances, BA Rate Advance, Alternative  Currency Advances or Interest Period or determination date(s), as applicable or, failing that, will  be deemed to have converted such request into a request for a Borrowing of Index Rate Loans in  the Dollar Equivalent of the amount specified therein or as regards BA Rate Advances requested  to be made to a Canadian Borrower into a request for a Canadian Prime Rate Advance and (ii)  (A) any outstanding Term SOFR Advances shall be deemed to have been converted to Base Rate  Advances or Canadian Base Rate Advances, as applicable, at the end of the applicable Interest  Period, (B) any outstanding BA Rate Advances to a Canadian Borrower shall be deemed to have  been converted to Canadian Prime Rate Advances at the end of the applicable Interest Period and  (C) any outstanding affected Alternative Currency Advances, at the Borrower’s election, shall  either (1) be converted into a Borrowing of Base Rate Advances in the Dollar Equivalent of the  amount of such outstanding Alternative Currency Advance immediately, in the case of an  Alternative Currency Daily Rate Advance or at the end of the applicable Interest Period, in the  case of a Term SOFR Advance, BA Rate Advance or an Alternative Currency Term Rate  Advance or (2) be prepaid in full immediately, in the case of an Alternative Currency Daily Rate  Advance, or at the end of the applicable Interest Period, in the case of a Term SOFR Advance,  BA Rate Advance or an Alternative Currency Term Rate Advance; provided that if no election is  made by Parent Borrower (x) in the case of an Alternative Currency Daily Rate Advance, by the  date that is three Business Days after receipt by Parent Borrower of such notice or (y) in the case  of a Term SOFR Advance, BA Rate Advance or an Alternative Currency Term Rate Advance,  by the last day of the current Interest Period for the applicable Term SOFR Advance or  Alternative Currency Term Rate Advance, Parent Borrower shall be deemed to have elected  clause (1) above.  (c) Notwithstanding anything to the contrary in this Agreement or any other  Loan Documents, if the Agent reasonably determines, in consultation with Parent  Borrower (which determination shall be conclusive absent manifest error), or Parent  Borrower or the Majority Lenders notify the Agent (with, in the case of the Majority  Lenders, a copy to Parent Borrower) that Parent Borrower or the Majority Lenders (in  consultation with Parent Borrower) (as applicable) have determined, that:  (i) adequate and reasonable means do not exist for ascertaining the  Relevant Rate for an Agreed Currency because none of the one month, three  month or six month interest periods of such Relevant Rate (or, in the case of a  Contract Rate Loan denominated in Canadian Dollars, 1, 2 or 3 months)  (including any forward-looking term rate thereof) is available or published on a  current basis and such circumstances are unlikely to be temporary;   (ii) the Applicable Authority (or any successor administrator of the  Term SOFR Screen Rate) has made a public statement or publication of  

 

   116      information identifying a specific date after which one month, three month and  six month interest periods of the Relevant Rate for an Agreed Currency (or, in the  case of a Contract Rate Loan denominated in Canadian Dollars, 1, 2 or 3 months)  (including any forward-looking term rate thereof) or the Term SOFR Screen Rate  shall or will no longer be representative of the underlying market and economic  reality that such Relevant Rate is intended to measure, or made available, or  permitted to be used for determining the interest rate of loans denominated in  such Agreed Currency, or shall or will otherwise cease, provided that, in each  case, at the time of such statement, there is no successor administrator  that is  satisfactory to the Agent that will continue to provide such interest period(s) of  the Relevant Rate for such Agreed Currency (the latest date on which one month,  three month and six month interest periods of the Relevant Rate for such Agreed  Currency (or, in the case of a Contract Rate Loan denominated in Canadian  Dollars, 1, 2 or 3 months) (including any forward-looking term rate thereof) are  no longer representative or available permanently or indefinitely (such specific  date, the “Scheduled Unavailability Date”);  then, (x) with respect to Term SOFR, on a date and time determined by the Agent, in  consultation with Parent Borrower (any such date, the “Term SOFR Replacement Date”),  which date will be at the end of an Interest Period or on the relevant interest payment  date, as applicable, for interest calculated and solely with respect to clause (ii) above, no  later than the Scheduled Unavailability Date, Term SOFR will be replaced hereunder and  under any Loan Document with, Daily Simple SOFR plus the SOFR Adjustment 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 “Term SOFR Successor Rate”), and (y)  with respect to any (A) Relevant Rate (other than Term SOFR) or (B) any then current  Successor Rate if the events or circumstances of the type described in Section 2.09(c)(i)  or (ii) have occurred with respect to the Successor Rate then in effect (or if Daily Simple  SOFR is not available on or prior to the Term SOFR Replacement Date), reasonably  promptly after such determination by the Agent (in consultation with Parent Borrower) or  receipt by the Agent of such notice, as applicable, the Agent and Parent Borrower may  amend this Agreement solely for the purpose of replacing the Relevant Rate for an  Agreed Currency or any then current Successor Rate for an Agreed Currency in  accordance with this Section 2.09 with an alternate benchmark rate giving due  consideration to any evolving or then existing convention for similar credit facilities  syndicated and agented in the U.S. and denominated in such Agreed Currency for such  alternative benchmarks, and, in each case, including any mathematical or other  adjustments to such benchmark giving due consideration to any evolving or then existing  convention for similar credit facilities syndicated and agented in the U.S. and  denominated in such Agreed Currency for such benchmarks, which adjustment or method  for calculating such adjustment shall be published on an information service as selected  by the Agent from time to time in its reasonable discretion and may be periodically  updated (and any such proposed rate, including for the avoidance of doubt, any  adjustment thereto, an “Other Relevant Rate Successor Rate”, and together with the Term  SOFR Successor Rate, a “Successor Rate”), and any such amendment shall become  effective at 5:00 p.m. on the fifth Business Day after the Agent shall have posted such  

 

   117      proposed amendment to all Lenders and Parent Borrower unless, prior to such time,  Lenders comprising the Majority Lenders have delivered to the Agent written notice that  such Majority Lenders object to such amendment.   If the Successor Rate is Daily Simple SOFR plus the SOFR Adjustment, all  interest payments will be payable on a quarterly basis.  The Agent will promptly (in one or more notices) notify Parent Borrower and  each Lender of the implementation of any Successor Rate.  Any 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 Successor Rate shall be applied in a manner as otherwise reasonably  determined by the Agent, in consultation with Parent Borrower.  Notwithstanding anything else herein, if at any time any Successor Rate as so  determined would otherwise be less than zero, the Successor Rate will be deemed to be  zero for the purposes of this Agreement and the other Loan Documents.  In connection with the implementation of a Successor Rate, the Agent will have  the right to make Conforming Changes, in consultation with Parent Borrower, from time  to time and, notwithstanding anything to the contrary herein or in any other Loan  Document, any amendments implementing such Conforming Changes will become  effective without any further action or consent of any other party to this Agreement;  provided that, with respect to any such amendment effected, the Agent shall post each  such amendment implementing such Conforming Changes to Parent Borrower and the  Lenders reasonably promptly after such amendment becomes effective.  If at any time, including in connection with the implementation of a Successor  Rate, (i) the then-current Relevant Rate is a term rate (including Term SOFR, the BA  Rate and any Alternative Currency Term Rate), and either (A) any tenor for such  Relevant Rate is not displayed on a screen or other information service that publishes  such rate from time to time as selected by the Agent in its reasonable discretion or (B) the  regulatory supervisor for the administrator of such Relevant Rate has provided a public  statement or publication of information announcing that any tenor for such Relevant Rate  is not or will not be representative, then the Agent, in consultation with Parent Borrower,  may modify the definition of “Interest Period” or any similar or analogous definitions for  any Relevant Rate settings at or after such time to remove any tenor of such Relevant  Rate that is unavailable or non-representative for such Relevant Rate (including any  Successor Rate) settings and (ii) if a tenor that was removed pursuant to clause (i) above  either (A) is subsequently displayed on a screen or information service for a Relevant  Rate (including a Successor Rate) or (B) is not, or is no longer, subject to an  announcement that it is not or will not be representative for a Relevant Rate (including  any Successor Rate), then the Agent may, in consultation with Parent Borrower, modify  the definition of “Interest Period” or any similar or analogous definition, for all Relevant  Rate settings at or after such time to reinstate any such previously removed tenor for such  Relevant Rate (including any Successor Rate) settings.  

 

   118      (d) On the date on which the aggregate unpaid principal amount of Advances  comprising any Borrowing shall be reduced, by payment or prepayment or otherwise, to  less than $10,000,000, such Advances shall, if they are Advances of a Type other than  Base Rate Advances, Canadian Base Rate Advances or Canadian Prime Rate Advances,  automatically Convert on the last day of the Interest Period with respect to such Advance  into Base Rate Advances, Canadian Base Rate Advances or Canadian Prime Rate  Advances, as applicable, and on and after such date the right of any Borrower to Convert  such Advances into Advances of a Type other than Base Rate Advances, Canadian Base  Rate Advances or Canadian Prime Rate Advances shall terminate; provided, however,  that if and so long as each such Advance shall be of the same Type and have the same  Interest Period as  Advances comprising another Borrowing or other Borrowings, and the  aggregate unpaid principal amount of all such Advances shall equal or exceed  $5,000,000, the Borrowers shall have the right to continue all such Advances as, or to  Convert all such Advances into, Advances of such Type having such Interest Period.  (e) Upon the occurrence and during the continuance of any Event of Default  under Section 8.01(a) or (e), (i) each Term SOFR Advance and Alternative Currency  Advance will automatically, on the last day of the then existing Interest Period therefor,  convert into a Base Rate Advance or Canadian Base Rate Advance denominated in  Dollars, as applicable, (ii) each BA Rate Advance will automatically, on the last day of  the then existing Interest Period therefor, convert into a Canadian Prime Rate Advance as  regards a Canadian Borrower and shall be repaid as regards a U.S. Borrower and (iii) the  obligations of the Lenders to make, or to convert Advances into, Contract Rate Loans or  Alternative Currency Daily Rate Advances will be suspended.  (f) All computations of interest for Base Rate Advances (including Base Rate  Advances determined by reference to Term SOFR) shall be made on the basis of a year of  365 or 366 days, as the case may be, and actual days elapsed and all computations of  interest for Canadian Base Rate Advances (including Canadian Base Rate Advances  determined by reference to Term SOFR), Canadian Prime Rate Advances and BA Rate  Advances shall be made on the basis of a year of 365 days and actual days elapsed.  All  other computations of fees and interest shall be made on the basis of a 360-day year and  actual days elapsed (which results in more fees or interest, as applicable, being paid than  if computed on the basis of a 365-day year) (or, in each case of Advances denominated in  Alternative Currencies where market practice differs, in accordance with market  practice).  Interest shall accrue on each Advance for the day on which the Advance is  made, and shall not accrue on an Advance, or any portion thereof, for the day on which  the Advance or such portion is paid, provided that any Advance that is repaid on the same  day on which it is made shall, subject to Section 4.01(a), bear interest for one day.  Each  determination by the Agent of an interest rate or fee hereunder shall be conclusive and  binding for all purposes, absent manifest error. Whenever interest or fees payable by a  Canadian Loan Party are calculated on the basis of a period which is less than the actual  number of days in a calendar year, each rate of interest and fee determined pursuant to  such calculation is, for the purpose of the Interest Act (Canada), equivalent to such rate  multiplied by the actual number of days in the calendar year in which such rate is to be  ascertained and divided by the number of days used as the basis of such calculation.  The  principle of deemed reinvestment of interest does not apply to any interest calculation  

 

   119      under this Agreement, and the rates of interest stipulated in this Agreement are intended  to be nominal rates and not effective rates or yields.  Each Canadian Loan Party confirms  that it fully understands and is able to calculate the rate of interest applicable to its  Obligations based on the methodology for calculating per annum rates provided for in  this Agreement and each Canadian Loan Party hereby irrevocably agrees not to plead or  assert, whether by way of defense or otherwise, in any proceeding relating to this  Agreement or to any other Loan Documents, that the interest payable under this  Agreement and the calculation thereof has not been adequately disclosed to the Canadian  Loan Parties as required pursuant to Section 4 of the Interest Act (Canada).  Without  limiting the generality of the foregoing, if any provision of this Agreement would oblige any  Canadian Loan Party to make any payment of interest or other amount payable to any Lender in  an amount or calculated at a rate which would be prohibited by law or would result in a receipt by  that Lender of “interest” at a “criminal rate” (as such terms are construed under the Criminal  Code (Canada)), then, notwithstanding such provision, such amount or rate shall be deemed to  have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case  may be, as would not be so prohibited by applicable law or so result in a receipt by that Lender of  “interest” at a “criminal rate”, such adjustment to be effected, to the extent necessary (but only to  the extent necessary), as follows: (i) first, by reducing the amount or rate of interest; and (ii)  thereafter, by reducing any fees, commissions, costs, expenses, premiums and other amounts  required to be paid to the affected Lender which would constitute interest for purposes of section  347 of the Criminal Code (Canada).  SECTION 2.10  Prepayments of Advances.  (a) Optional.  (i)  Any Borrower may, upon notice to the Agent, at any time or  from time to time voluntarily prepay Advances made to it in whole or in part without  premium or penalty; provided that (A) such notice must be in a form acceptable to the  Agent and received by the Agent not later than 11:00 a.m. (x) three Business Days prior  to any date of prepayment of Term SOFR Advances or prior to any date of prepayment of  BA Rate Advances, (y) four Business Days prior to any date of prepayment of  Alternative Currency Advances, and (z) on the date of prepayment of Index Rate Loans;  (B) any prepayment of Term SOFR Advances shall be in a principal amount of  $5,000,000 or a whole multiple of $1,000,000 in excess thereof and any prepayment of  BA Rate Advances shall be in a principal amount of CND$5,000,000 or a whole multiple  of CND$1,000,000 in excess thereof; (C) any prepayment of Alternative Currency  Advances shall be in a minimum principal amount of $5,000,000 or a whole multiple of  $1,000,000 in excess thereof; and (D) any prepayment of Base Rate Advances or  Canadian Base Rate Advances shall be in a principal amount of $1,000,000 or a whole  multiple of $1,000,000 in excess thereof and any prepayment of Canadian Prime Rate  Advances shall be in a principal amount of CND$1,000,000 or a whole multiple of  CND$1,000,000 in excess thereof or, in each case, 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 Advances to be prepaid and, if Contract Rate Loans 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 Commitment Percentage of the  relevant Facility).  If such notice is given by any Borrower, such Borrower shall make  such prepayment and the payment amount specified in such notice shall be due and  

 

   120      payable on the date specified therein; provided that such notice of prepayment may state  that such prepayment is conditioned upon the availability of other financing, in which  case such notice may be revoked by the applicable Borrower (by notice to the Agent prior  to the specified date of such prepayment) if such condition is not satisfied (it being  understood that any revocation by a Borrower of a notice of prepayment shall entitle the  Lenders to any amounts as set forth in Section 10.04(b)).  Any prepayment of a Contract  Rate Loan shall be accompanied by all accrued interest thereon, together with any  additional amounts required pursuant to Section 10.04(b).  Each such prepayment shall be  paid to the Lenders in accordance with their respective Commitment Percentages.  (ii) Any Borrower may, upon notice to the applicable Swing Line Lender  (with a copy to the Agent), at any time or from time to time, voluntarily prepay Swing  Line Advances made to it in whole or in part without premium or penalty; provided that  (A) such notice must be received by the Swing Line 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 $500,000 or, if less, the entire principal amount thereof  then outstanding.  Each such notice shall specify the date and amount of such  prepayment.  If such notice is given by a Borrower, such Borrower shall make such  prepayment and the payment amount specified in such notice shall be due and payable on  the date specified therein.  (b) Mandatory.  (i) If for any reason the Total Revolving Credit Outstandings  exceed the Loan Cap as then in effect or the Total Revolving Credit Outstandings of the  Canadian Borrowers exceed the Canadian Sublimit then in effect, the Borrowers shall  promptly (and in any event, within one (1) Business Day) prepay, or cause to be repaid,  Revolving Credit Advances, Swing Line Advances, Unreimbursed Amounts and/or Cash  Collateralize the L/C Obligations in an aggregate amount equal to such excess; provided,  however, that, the Parent Borrower shall not be required to Cash Collateralize the L/C  Obligations pursuant to this Section 2.10(b) unless after the prepayment in full of the  Revolving Credit Advances, Swing Line Advances and Unreimbursed Amounts the Total  Revolving Credit Outstandings exceed the Loan Cap as then in effect.  Upon notice by  Parent Borrower to the Agent, the Agent shall release any Cash Collateral to the Parent  Borrower to the extent that, after such a release, the Total Revolving Credit Outstandings  at such time shall not exceed the Loan Cap.  (ii)  If the Agent notifies Parent Borrower at any time that the Outstanding  Amount of Revolving Credit Advances and Letters of Credit denominated in Alternative  Currencies at such time exceed the Alternative Currency Sublimit then in effect, then,  within five Business Days after receipt of such notice, the Borrowers shall prepay, or  cause to be prepaid, Revolving Credit Advances, Unreimbursed Amounts and/or Cash  Collateralize the L/C Obligations in an aggregate amount sufficient to eliminate such  excess; provided, however, that, Parent Borrower shall not be required to Cash  Collateralize the L/C Obligations pursuant to this Section 2.10(b) unless after the  prepayment in full of the Revolving Credit Advances and Unreimbursed Amounts the  Outstanding Amount of Revolving Credit Advances and Letters of Credit denominated in  Alternative Currencies.  

 

   121      (iii) Prepayments of the Revolving Credit Facility by any Borrower made  pursuant to this Section 2.10(b), first, shall be applied ratably to the Unreimbursed  Amounts and the Swing Line Advances owing by such Borrower, second, shall be  applied ratably to the outstanding Revolving Credit Advances owing by such Borrower,  and, third, shall be used to Cash Collateralize the remaining L/C Obligations of such  Borrower.  Upon the drawing of any Letter of Credit that has been Cash Collateralized,  the funds held as Cash Collateral shall be applied (without any further action by or notice  to or from the Parent Borrower or any other Loan Party) to reimburse the applicable  Issuing Bank or the Lenders, as applicable  SECTION 2.11  Increased Costs.  (a)  If, at any time after the date of this  Agreement, any change in any Laws (a “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 Party;  (ii) subject any Lender Party to any Tax of any kind whatsoever with respect to  this Agreement, any Letter of Credit, any participation in a Letter of Credit or any Contract  Rate Loan made by it, or change the basis of taxation of payments to such Lender Party in  respect thereof (except for (A) Indemnified Taxes, (B) Taxes described in clauses  (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes); or  (iii) impose on any Lender Party or the London or Canadian interbank market  any other condition, cost or expense (other than Taxes) affecting this Agreement or  Contract Rate Loans 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, maintaining, continuing or converting any Advance (or of maintaining its obligation  to make any such Advance), or to increase the cost to such Lender Party 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 Party hereunder (whether of principal, interest or any other amount) then, the Parent  Borrower shall from time to time, upon written demand by such Lender Party (with a copy of  such written demand to the Agent), pay to the Agent for the account of such Lender Party  additional amounts sufficient to compensate such Lender Party for such increased cost.  A  certificate as to the amount of such increased cost setting forth the basis for the calculation of  such increased costs, submitted to the Parent Borrower and the Agent by such Lender Party, shall  be conclusive and binding for all purposes, absent manifest error.  (b) If, at any time after the date of this Agreement, any Lender Party  determines that compliance with any law or regulation or any guideline or request from  any central bank or other Governmental Authority (whether or not having the force of  law) affects or would affect the amount of capital or liquidity required or expected to be  maintained by such Lender Party or any corporation controlling such Lender Party and  that the amount of such capital or liquidity is increased by or based upon the existence of  such Lender Party’s commitment to lend hereunder and other commitments of this type  

 

   122      or the issuance of (or commitment to purchase of participations in) the Letters of Credit  (or similar contingent obligations), then, upon written demand by such Lender Party  (with a copy of such written demand to the Agent), the Parent Borrower shall  immediately pay to the Agent for the account of such Lender Party, from time to time as  specified by such Lender Party, additional amounts sufficient to compensate such Lender  Party or such corporation in the light of such circumstances, to the extent that such  Lender Party reasonably determines such increase in capital or liquidity to be allocable to  the existence of such Lender Party’s commitment hereunder.  A certificate as to such  amounts submitted to the Parent Borrower and the Agent by such Lender Party and  setting forth the basis for the calculation of such amount shall be conclusive and binding  for all purposes, absent manifest error.  (c) Notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall  Street Reform and Consumer Protection Act and all requests, rules, guidelines or  directives thereunder or issued in connection therewith and (y) 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 regulatory authorities, in each case pursuant to Basel III, shall in each case be  deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.  (d) Without affecting its rights under Sections 2.11(a) or 2.10(b) or any other  provision of this Agreement, each Lender Party agrees that if there is any increase in any  cost to or reduction in any amount receivable by such Lender Party with respect to which  the Parent Borrower would be obligated to compensate such Lender Party pursuant to  Sections 2.11(a) or 2.11(b), such Lender Party shall use reasonable efforts to select an  alternative issuing office or Lending Office which would not result in any such increase  in any cost to or reduction in any amount receivable by such Lender Party; provided,  however, that no Lender Party shall be obligated to select an alternative issuing office or  Lending Office if such Lender Party determines that (i) as a result of such selection such  Lender Party would be in violation of any applicable Law, regulation, treaty, or  guideline, or would incur additional costs or expenses or (ii) such selection would be  inadvisable for regulatory reasons or inconsistent with the interests of such Lender Party.  (e) Delay in Requests.  Failure or delay on the part of any Lender Party to  demand compensation pursuant to the foregoing provisions of this Section shall not  constitute a waiver of such Lender Party’s right to demand such compensation, provided  that the Parent Borrower shall not be required to compensate a Lender Party pursuant to  the foregoing provisions of this Section for any increased costs incurred or reductions  suffered more than four months prior to the date that such Lender Party notifies the  Parent Borrower of the Change in Law giving rise to such increased costs or reductions  and of such Lender Party’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  four-month period referred to above shall be extended to include the period of retroactive  effect thereof).  (f) Without prejudice to the survival of any other agreement of the Parent  Borrower hereunder, the agreements and obligations of the Parent Borrower contained in  

 

   123      this Section 2.11 shall survive the payment in full (after the Termination Date) of all  Obligations.  SECTION 2.12  Illegality.  (a)  Notwithstanding any other provision of this  Agreement, if any Lender shall notify the Agent that the introduction of or any change in or in  the interpretation of any law or regulation makes it unlawful or impossible, or any central bank  or other Governmental Authority asserts that it is unlawful, for any Lender or its Lending Office  to perform any of its obligations hereunder or make, maintain or fund or change interest with  respect to any Credit Extension or to determine or charge interest rates based upon Term SOFR,  any Alternative Currency Daily Rate, Alternative Currency Term Rate or the BA 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 or any Alternative Currency or bankers’  acceptances in the applicable interbank market, then, on notice thereof by such Lender to the  Parent Borrower through the Agent, (i) any obligation of such Lender to issue, make, maintain,  fund or charge interest with respect to any such Credit Extension or to make or continue BA Rate  Advances, Term SOFR Advances or Alternative Currency Advances in the affected currency or  currencies or, in the case of Term SOFR Advances, to convert Base Rate Advances or Canadian  Base Rate Advances to Term SOFR Advances or, in the case of BA Rate Advances, to convert  Canadian Prime Rate Advances to BA Rate Advances, shall be suspended, (ii) if such notice  asserts the illegality of such Lender making, maintaining, continuing or converting Base Rate  Advances or Canadian Base Rate Advances the interest rate on which is determined by reference  to the Term SOFR component of the Base Rate or Canadian Base Rate, the interest rate on which  Base Rate Advances or Canadian Base Rate Advances, as applicable, of such Lender shall, if  necessary to avoid such illegality, be determined by the Agent without reference to the Term  SOFR component of the Base Rate or Canadian Base Rate, as applicable, and (iii) if such notice  asserts the illegality of such Lender making, maintaining, continuing or converting Canadian  Prime Rate Advances the interest rate on which is determined by reference to the BA Rate  component of the Canadian Prime Rate, the interest rate on which Canadian Prime Rate  Advances of such Lender shall, if necessary to avoid such illegality, be determined by the Agent  without reference to the BA Rate component of the Canadian Prime Rate, in each case until such  Lender notifies the Agent and the Parent Borrower that the circumstances giving rise to such  determination no longer exist.  Upon receipt of such notice, (x) the Borrowers shall, within five  (5) Business Days after written demand from such Lender (with a copy to the Agent), prepay or,  if applicable and (1) such Advances are denominated in Dollars, convert all Term SOFR  Advances of such Lender to Base Rate Advances or Canadian Base Rate Advances, as applicable  (the interest rate on which Base Rate Advances or Canadian Base Rate Advances, as applicable  of such Lender shall, if necessary to avoid such illegality, be determined by the Agent without  reference to the Term SOFR component of the Base Rate or Canadian Base Rate, as applicable)  or (2) convert all BA Rate Advances of such Lender to Canadian Prime Rate Advances (the  interest rate on which Canadian Prime Rate Advances of such Lender shall, if necessary to avoid  such illegality, be determined by the Agent without reference to the BA Rate component of the  Canadian Prime Rate), in each case either on the last day of the Interest Period therefor, if such  Lender may lawfully continue to maintain such Contract Rate Loans to such day, or  immediately, if such Lender may not lawfully continue to maintain such Contract Rate Loans  and (y) if such notice asserts the illegality of such Lender determining or charging interest rates  based upon Term SOFR or the BA Rate, the Agent shall during the period of such suspension  compute the Base Rate or the Canadian Base Rate applicable to such Lender without reference to  

 

   124      the Term SOFR component thereof and compute the Canadian Prime Rate applicable to such  Lender without reference to the BA Rate component thereof in each case 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 Term SOFR, such Alternative Currency Daily Rate, Alternative  Currency Term Rate or the BA Rate, as applicable.  Upon any such prepayment or conversion,  the Borrowers shall also pay accrued interest on the amount so prepaid or converted.  (b) Without affecting its rights under Section 2.11(a) or under any other  provision of this Agreement, each Lender agrees that if it becomes unlawful or  impossible for such Lender to make, maintain or fund its Contract Rate Loans or  Alternative Currency Daily Rate Advances as contemplated by this Agreement, such  Lender shall use reasonable efforts to select an alternative Lending Office from which  such Lender may maintain and give effect to its obligations under this Agreement with  respect to making, funding and maintaining such Contract Rate Loans or Alternative  Currency Daily Rate Advances; provided, however, that no Lender shall be obligated to  select an alternative Lending Office if such Lender determines that (i) as a result of such  selection such Lender would be in violation of any applicable Law, regulation, or treaty,  or would incur additional costs or expenses or (ii) such selection would be inadvisable for  regulatory reasons or inconsistent with the interests of such Lender.  SECTION 2.13  Cash Collateral.  (a)  Certain Credit Support Events.  Upon the  request of the Agent or any Issuing Bank if, as of the Letter of Credit Expiration Date, any L/C  Obligation in respect of Letters of Credit issued by such Issuing Bank for any reason remains  outstanding, the Parent Borrower shall immediately Cash Collateralize, or cause to be Cash  Collateralized, the then Outstanding Amount of all such L/C Obligations.  At any time that there  shall exist a Defaulting Lender and the aggregate unused Revolving Credit Commitments of the  non-defaulting Lenders after taking into account the aggregate Outstanding Amount of the  Revolving Credit Advances is insufficient to cover all Fronting Exposure, immediately upon the  request of the Agent, any Issuing Bank or the Swing Line Lender, the Parent Borrower shall  deliver, or cause to be delivered, to the Agent Cash Collateral in an amount sufficient to cover all  Fronting Exposure (after giving effect to Section 2.14(a)(iv) and any Cash Collateral provided by  the Defaulting Lender).    (b) Grant of Security Interest.  All Cash Collateral (other than credit support  not constituting funds subject to deposit) shall be maintained in blocked, non-interest  bearing deposit accounts at Bank of America (which Cash Collateral may, at the direction  and sole risk of the Parent Borrower, be invested in Cash Equivalents that are pledged to  the Agent).  Each Loan Party, and to the extent provided by any Lender, such Lender,  hereby grants to (and subjects to the control of) the Agent, for the benefit of the Agent  and the Lender Parties (including the Swing Line Lender), 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 2.13(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 as herein  provided, or that the total amount of such Cash Collateral is less than the applicable  Fronting Exposure and other obligations secured thereby, the Parent Borrower or the  

 

   125      relevant Defaulting Lender will, promptly upon demand by the Agent, pay or provide or,  in the case of the Parent Borrower, cause to be paid or provided, to the Agent additional  Cash Collateral in an amount sufficient to eliminate such deficiency.  (c) Application.  Notwithstanding anything to the contrary contained in this  Agreement, Cash Collateral provided under any of this Section 2.13 or Sections 2.03,  2.04, 2.10 or 8.01 in respect of Letters of Credit or Swing Line Advances shall be held  and applied to the satisfaction of the specific L/C Obligations, Swing Line Advances,  obligations to fund participations therein (including, as to Cash Collateral provided by 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.   (d) Release.  Cash Collateral (or the appropriate portion thereof) provided to  reduce Fronting Exposure or 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 10.07(b)(vi))) or (ii)  the Agent’s good faith determination that there exists excess Cash Collateral; provided,  however, (x) that Cash Collateral furnished by or on behalf of a Loan Party shall not be  released during the continuance of a Default under Section 8.01(a) or (e) or an Event of  Default (and following application as provided in this Section 2.13 may be otherwise  applied in accordance with Section 8.01), and (y) the Person providing Cash Collateral  and the applicable Issuing Bank or Swing Line Lender may agree that Cash Collateral  shall not be released but instead held to support future anticipated Fronting Exposure or  other obligations.  SECTION 2.14  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 Requirement of Law:  (i) Waivers and Amendments.  That 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 Majority Lenders.  (ii) Reallocation of Payments.  Any payment of principal, interest, fees or  other amounts received by the Agent for the account of that Defaulting Lender (whether  voluntary or mandatory, at maturity, pursuant to Article VIII or otherwise, and including  any amounts made available to the Agent by that Defaulting Lender pursuant to Section  10.08), 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 that Defaulting Lender to the  Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by  that Defaulting Lender to any Issuing Bank or Swing Line Lender hereunder; third, if so  determined by the Agent or requested by any Issuing Bank or Swing Line Lender, to be  held as Cash Collateral for future funding obligations of that Defaulting Lender of any  participation in any Swing Line Advance or Letter of Credit; fourth, as the Parent  

 

   126      Borrower may request (so long as no Default or Event of Default exists), to the funding  of any Advance in respect of which that 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 Parent Borrower, to be held in a non-interest bearing deposit  account and released in order to satisfy obligations of that Defaulting Lender to fund  Advances under this Agreement; sixth, to the payment of any amounts owing to the  Lender Parties as a result of any judgment of a court of competent jurisdiction obtained  by any Lender Party against that Defaulting Lender as a result of that 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 Loan Party as a result of any  judgment of a court of competent jurisdiction obtained by such Loan Party against that  Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations under  this Agreement; and eighth, to that Defaulting Lender or as otherwise directed by a court  of competent jurisdiction; provided that if (x) such payment is a payment of the principal  amount of any Advances or L/C Borrowings in respect of which that Defaulting Lender  has not fully funded its appropriate share and (y) such Advances or L/C Borrowings were  made at a time when the conditions set forth in Section 4.02 were satisfied or waived,  such payment shall be applied solely to pay the Advances of, and L/C Borrowings owed  to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of  any Advances of, or L/C Borrowings owed to, that Defaulting Lender.  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 2.14(a)(ii) shall be deemed paid to and redirected by that Defaulting Lender,  and each Lender irrevocably consents hereto.    (iii) Certain Fees.  That Defaulting Lender (x) shall be entitled to receive any  facility fee pursuant to Section 2.05(a) for any period during which that Lender is a  Defaulting Lender only to extent allocable to the sum of (1) the Outstanding Amount of  the Advances funded by it and (2) its Commitment Percentage of the stated amount of  Letters of Credit and Swing Line Advances for which it has provided Cash Collateral  pursuant to Section 2.03, Section 2.04, Section 2.13, or Section 2.14(a)(ii), as applicable  (and Borrowers shall (A) be required to pay to each of the Issuing Banks and the Swing  Line Lender, as applicable, the amount of such fee allocable to its Fronting Exposure  arising from that Defaulting Lender and (B) not be required to pay the remaining amount  of such fee that otherwise would have been required to have been paid to that Defaulting  Lender) and (y) shall be limited in its right to receive Letter of Credit Fees as provided in  Section 2.04(h).  (iv) Reallocation of Commitment Percentages to Reduce Fronting Exposure.   During any period in which there is a Defaulting Lender, for purposes of computing the  amount of the obligation of each non-Defaulting Lender to acquire, refinance or fund  participations in Letters of Credit or Swing Line Advances pursuant to Sections 2.03 and  2.04, the “Commitment Percentage” of each non-Defaulting Lender shall be computed  without giving effect to the Commitment of that Defaulting Lender; provided, that the  aggregate obligation of each non-Defaulting Lender to acquire, refinance or fund  participations in Letters of Credit and Swing Line Advances shall not exceed the positive  difference, if any, of (1) the Commitment of that non-Defaulting Lender minus (2) the  

 

   127      aggregate Outstanding Amount of the Revolving Credit Advances of that Lender.   Subject to Section 10.22, 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 Swing Line Advances.  If the reallocation  described in clause (a)(iv) above cannot, or can only partially, be effected, the Parent  Borrower shall, without prejudice to any right or remedy available to it hereunder or  under applicable Law, (x) first, prepay Swing Line Advances in an amount equal to the  Swing Line Lender’s Fronting Exposure and (y) second, Cash Collateralize the Issuing  Banks’ Fronting Exposure in accordance with the procedures set forth in Section 2.13.  (b) Defaulting Lender Cure.  If the Parent Borrower, the Agent, the Swing Line  Lender and the Issuing Banks agree in writing in their sole discretion that a Defaulting Lender  should no longer be deemed to be 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 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  Swing Line Advances to be held on a pro rata basis by the Lenders in accordance with their  Commitment Percentages (without giving effect to Section 2.14(a)(iv)), whereupon that 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 Loan Party 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.  ARTICLE III  GUARANTY  SECTION 3.01  Guaranty.  (a) Each Loan Party hereby agrees that such Loan Party is jointly and  severally liable for, and hereby absolutely and unconditionally guarantees to the Agent,  Lenders, Hedge Banks, Supply Chain Banks or Cash Management Banks and their respective  successors and assigns, the full and prompt payment (whether at stated maturity, by  acceleration or otherwise) and performance of, all Obligations owed or hereafter owing to the  Agent and Secured Parties by each other Loan Party.  Each Loan Party agrees that its guaranty  obligation hereunder is a continuing guaranty of payment and performance and not of  collection, that its obligations under this Article III shall not be discharged until the  Termination Date, and that its obligations under this Article III shall be absolute and  unconditional, irrespective of, and unaffected by,   

 

   128      (i) the genuineness, validity, regularity, enforceability or any future  amendment of, or change in, this Agreement, any other Loan Document, Secured Hedge  Agreement, Secured Supply Chain Financing or Bank Product Document or any other  agreement, document or instrument to which any Loan Party is or may become a party;  (ii) the absence of any action to enforce this Agreement (including this  Article III) or any other Loan Document, Secured Hedge Agreement, Secured Supply Chain  Financing or Bank Product Document or the waiver or consent by the Agent and Lenders, Hedge  Banks, Supply Chain Banks or Cash Management Banks, as applicable, with respect to any of the  provisions thereof;  (iii) the existence, value or condition of, or failure to perfect its Lien  against, any security for the Obligations or any action, or the absence of any action, by the Agent  and Lenders, Hedge Banks, Supply Chain Banks or Cash Management Banks in respect thereof  (including the release of any such security);   (iv) the insolvency of any Loan Party;   (v) any amendment, alteration, novation or variation in any manner and  to any extent (and irrespective of the effect of the same on any Guarantor) of any of the Obligations,  any liabilities and obligations of any surety, and any security of any one or more of the Secured  Parties’ arrangements with the Loan Parties or any other Person; or  (vi) any other action or circumstances that might otherwise constitute a  legal or equitable discharge or defense of a surety or guarantor.  The guaranty provided in this Article III shall continue to be effective or be  reinstated, as the case may be, if at any time any payment of any of the Loan Document  Obligations is rescinded or must otherwise be returned by any Swing Line Lender, any Issuing  Bank or any Lender, respectively, upon the insolvency, bankruptcy or reorganization of a Loan  Party or otherwise, all as though such payment had not been made.  (b) Each Loan Party shall be regarded, and shall be in the same position, as  principal debtor with respect to the Obligations guarantied hereunder. Each Loan Party expressly  represents and acknowledges that it is part of a common enterprise with the other Loan Parties and  that any financial accommodations by Lenders, Hedge Banks, Supply Chain Banks or Cash  Management Banks or any of them, to any other Loan Party hereunder and under the other Loan  Documents, Secured Hedge Agreements, Secured Supply Chain Financings or Bank Product  Documents are and will be of direct and indirect interest, benefit and advantage to all Loan Parties.  SECTION 3.02  Waivers by Loan Parties.  Each Loan Party expressly waives, to  the extent permitted by law, all rights it may have now or in the future under any statute, or at  common law, or at law or in equity, or otherwise, to compel the Agent or any other Secured  Party to marshal assets or to proceed in respect of the Obligations guarantied hereunder against  any other Loan Party, any other party or against any security for the payment and performance of  the Obligations before proceeding against, or as a condition to proceeding against, such Loan  Party.  It is agreed among each Loan Party, the Agent, the Issuing Banks, Lenders and other  Secured Parties that the foregoing waivers are of the essence of the transaction contemplated by  

 

   129      this Agreement and the other Loan Documents and that, but for the provisions of this Article III  and such waivers, the Agent, the Issuing Banks, Lenders and other Secured Parties would decline  to enter into this Agreement.  Each Loan Party expressly waives diligence, presentment and  demand (whether for non-payment or protest or of acceptance, maturity, extension of time,  change in nature or form of the Obligations, acceptance of further security, release of further  security, composition or agreement arrived at as to the amount of, or the terms of, the  Obligations, notice of adverse change in any Loan Party’s financial condition or any other fact  which might increase the risk to another Loan Party).  SECTION 3.03  Benefit of Guaranty; Stay of Acceleration.  Each Loan Party  agrees that the provisions of this Article III are for the benefit of the Secured Parties and their  respective successors, transferees, endorsees and assigns, and nothing herein contained shall  impair, as between any other Loan Party and the Agent or any other Secured Party, the  obligations of such other Loan Party under the Loan Documents, Secured Hedge Agreements,  Secured Supply Chain Financings or Bank Product Documents.  SECTION 3.04  Subordination of Subrogation, Etc..  Notwithstanding anything to  the contrary in this Agreement or in any other Loan Document, and except as set forth in Section  3.07, each Loan Party hereby expressly and irrevocably subordinates to payment of the  Obligations any and all rights at law or in equity to subrogation, reimbursement, exoneration,  contribution, indemnification or set off and any and all defenses available to a surety, guarantor  or accommodation co-obligor until the Termination Date.  Each Loan Party acknowledges and  agrees that this subordination is intended to benefit the Agent and the other Secured Parties and  shall not limit or otherwise affect such Loan Party’s liability hereunder or the enforceability of  this Article III, and that the Agent, the other Secured Parties and their respective successors and  assigns are intended third party beneficiaries of the waivers and agreements set forth in this  Section 3.04.  SECTION 3.05  [Reserved].    SECTION 3.06  Limitation.  Notwithstanding any provision herein contained to  the contrary, each Loan Party’s liability under this Article III shall be limited to an amount not to  exceed as of any date of determination the greater of:  (a) the amount of all Advances advanced to (and L/C Obligations incurred  on behalf of) the Borrowers and;  (b) the amount that could be claimed by the Agent and the other Secured  Parties from such Loan Party under this Article III without rendering such claim voidable or  avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable  state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar  foreign or domestic statute or common law after taking into account, among other things,  such Loan Party’s right of contribution and indemnification from each other Loan Party  under Section 3.07.  SECTION 3.07  Contribution with Respect to Guaranty Obligations.    

 

   130      (a) To the extent that any Loan Party shall make a payment under this  Article III of all or any of the Obligations (other than Advances made to that Borrower for  which it is primarily liable) (a “Guarantor Payment”) that, taking into account all other  Guarantor Payments then previously or concurrently made by any other Loan Party, exceeds  the amount that such Loan Party would otherwise have paid if each Loan Party had paid the  aggregate Obligations satisfied by such Guarantor Payment in the same proportion that such  Loan Party’s “Allocable Amount” (as defined below) (as determined immediately prior to  such Guarantor Payment) bore to the aggregate Allocable Amounts of each Loan Party as  determined immediately prior to the making of such Guarantor Payment, then, following the  Termination Date, such Loan Party shall be entitled to receive contribution and  indemnification payments from, and be reimbursed by, each other Loan Party for the amount  of such excess, pro rata based upon their respective Allocable Amounts in effect immediately  prior to such Guarantor Payment.  (b) As of any date of determination, the “Allocable Amount” of any Loan  Party shall be equal to the maximum amount of the claim that could then be recovered from  such Loan Party under this Article III without rendering such claim voidable or avoidable  under Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable state  Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or  common law.  (c) This Section 3.07 is intended only to define the relative rights of the  Loan Parties and nothing set forth in this Section 3.07 is intended to or shall impair the  obligations of the Loan Parties, jointly and severally, to pay any amounts as and when the  same shall become due and payable in accordance with the terms of, and subject to the  limitations contained in, this Agreement, including Section 3.01.  Nothing contained in this  Section 3.07 shall limit the liability of any Borrower to pay the Advances made directly or  indirectly to that Borrower and accrued interest, fees and expenses with respect thereto for  which such Borrower shall be primarily liable.  (d) The parties hereto acknowledge that the rights of contribution and  indemnification hereunder shall constitute assets of the Loan Parties to which such  contribution and indemnification is owing.  (e) The rights of the indemnifying Loan Parties against other Loan Parties  under this Section 3.07 shall be exercisable upon the full and indefeasible payment of the  Obligations and the termination of the Commitments.  SECTION 3.08  Liability Cumulative.  The liability of each Loan Party under this  Section 3.08 is in addition to and shall be cumulative with all liabilities of such Loan Party to the  Agent and Lenders under this Agreement and the other Loan Documents to which such Loan  Party is a party or in respect of any Obligations or obligation of the other Loan Parties, without  any limitation as to amount, unless the instrument or agreement evidencing or creating such  other liability specifically provides to the contrary.  SECTION 3.09  Release of Borrowers and Guarantors.  The Obligations of any  Loan Party (other than Parent Borrower) shall automatically terminate and be of no further force  

 

   131      or effect and such Loan Party shall be automatically released from all obligations under this  Agreement and all Loan Documents upon:  (a) the sale, disposition, exchange or other transfer (including through  merger, consolidation amalgamation or otherwise) of the Capital Stock (including any sale,  disposition or other transfer following which the applicable Loan Party is no longer a  Restricted Subsidiary), of the applicable Loan Party to a Person that is not an Affiliate of a  Loan Party if such sale, disposition, exchange or other transfer is made in a manner not in  violation of this Agreement and for a bona fide business purpose other than causing the  release of such Guaranty;  (b) the designation of such Loan Party as an Unrestricted Subsidiary in  accordance with the provisions of the definition of “Unrestricted Subsidiary”;  (c) such Subsidiary becomes an Excluded Subsidiary (as evidenced by a  notice in writing from an Officer of Parent Borrower); or  (d) repayment of all of the Obligations hereunder and termination of all of  the Commitments hereunder and termination or cash collateralization on terms acceptable to  the applicable Issuing Bank of all Letters of Credit.  ARTICLE IV  PAYMENTS, TAXES, EXTENSIONS, ETC.  SECTION 4.01  Payments Generally; Agent’s Clawback.  (a)  General.  All  payments to be made by any Loan Party shall be made without condition or deduction for any  counterclaim, defense, recoupment or setoff.  Except as otherwise expressly provided herein and  except with respect to principal of and interest on Advances denominated in an Alternative  Currency, all payments by any Loan Party hereunder shall be made to the Agent, for the account  of the respective Lenders to which such payment is owed, at the applicable Agent’s Office in  Dollars and in Same Day Funds not later than 2:00 p.m. on the date specified herein.  Except as  otherwise expressly provided herein, all payments by any Loan Party hereunder with respect to  principal and interest on Advances denominated in an Alternative Currency shall be made to the  Agent, for the account of the respective Lenders to which such payment is owed, at the  applicable Agent’s Office in such Alternative Currency and in Same Day Funds not later than the  Applicable Time specified by the Agent on the dates specified herein.  Without limiting the  generality of the foregoing, the Agent may require that any payments due under this Agreement  be made in the United States.  If, for any reason, any Loan Party is prohibited by any  Requirement of Law from making any required payment hereunder in an Alternative Currency,  such Loan Party shall make such payment in Dollars in the Dollar Equivalent of the Alternative  Currency payment amount.  The Agent will promptly distribute to each Lender its Commitment  Percentage in respect of the relevant Facility (or other applicable share as provided herein) of  such payment in like funds as received by wire transfer to such Lender’s Lending Office.  All  payments received by the Agent (i) after 2:00 p.m., in the case of payments in Dollars, or (ii)  after the Applicable Time specified by the Agent in the case of payments in an Alternative  Currency, shall in each case be deemed received on the next succeeding Business Day and any  

 

   132      applicable interest or fee shall continue to accrue.  If any payment to be made by any Loan Party  shall come due on a day other than a Business Day, payment shall be made on the next following  Business Day, and such extension of time shall be included in computing interest or fees, as the  case may be.  (b) Funding by Lenders; Presumption by Agent.  Unless the Agent shall have  received notice from a Lender prior to the proposed date of any Borrowing that such  Lender will not make available to the Agent such Lender’s share of such Borrowing, the  Agent may assume that such Lender has made such share available on such date in  accordance with Section 2.02 and may, in reliance upon such assumption, make available  to the applicable Loan Party a corresponding amount.  In such event, if a Lender has not  in fact made its share of the applicable Borrowing available to the Agent, then the  applicable Lender and the applicable Loan Party severally agree to pay to the Agent  forthwith on written demand such corresponding amount in Same Day Funds with  interest thereon, for each day from and including the date such amount is made available  to such Loan Party to but excluding the date of payment to the Agent, at (A) in the case  of a payment to be made by such Lender, the Overnight Rate and (B) in the case of a  payment to be made by a Loan Party, the interest rate applicable to Base Rate Advances.   If the applicable Loan Party and such Lender shall pay such interest to the Agent for the  same or an overlapping period, the Agent shall promptly remit to such Loan Party the  amount of such interest paid by such Loan Party for such period.  If such Lender pays its  share of the applicable Borrowing to the Agent, then the amount so paid shall constitute  such Lender’s Advance included in such Borrowing.  Any payment by a Loan Party shall  be without prejudice to any claim such Loan Party may have against a Lender that shall  have failed to make such payment to the Agent.  (c) Payments by Borrowers; Presumptions by Agent.  Unless the Agent shall  have received notice from the applicable Loan Party prior to the time at which any  payment is due to the Agent for the account of the Lender Parties hereunder that such  Loan Party will not make such payment, the Agent may assume that such Loan Party has  made such payment on such date in accordance herewith and may, in reliance upon such  assumption, distribute to the Appropriate Lenders or the Issuing Banks, as the case may  be, the amount due.  In such event, if the applicable Loan Party has not in fact made such  payment, then each of the Appropriate Lenders or Issuing Banks, as the case may be,  severally agrees to repay to the Agent forthwith on demand the amount so distributed to  such Lender Party, in Same Day Funds with interest thereon, for each day from and  including the date such amount is distributed to it to but excluding the date of payment to  the Agent, at the Overnight Rate.  With respect to any payment that the Agent makes for the account of the Lenders  or any Issuing Bank hereunder as to which the Agent determines (which determination  shall be conclusive absent manifest error) that any of the following applies (such payment  referred to as the “Rescindable Amount”) : (1) the Borrowers have not in fact made such  payment; (2) the Agent has made a payment in excess of the amount so paid by the  Borrowers (whether or not then owed); or (3) the Agent has for any reason otherwise  erroneously made such payment; then each of the Lenders or the applicable Issuing Bank,  as the case may be, severally agrees to repay to the Agent within two (2) Business Days of  

 

   133      demand the Rescindable Amount so distributed to such Lender or such Issuing Bank, in  immediately available funds with interest thereon, for each day from and including the date  such amount is distributed to it to but excluding the date of payment to the 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 or the applicable Loan Party with respect to  any amount owing under this subsection (c) or subsection (b) above shall be conclusive,  absent manifest error.  (d) Failure to Satisfy Conditions Precedent.  If any Lender makes available to  the Agent funds for any Advance to be made by such Lender to any Loan Party as provided  in the foregoing provisions of this Article II, and such funds are not made available to such  Loan Party by the Agent because the conditions to the applicable Credit Extension set forth  in Article V 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.  (e) Obligations of Lenders Several.  The obligations of the Lenders hereunder  to make Advances, to fund participations in Letters of Credit and Swing Line Advances  and to make payments pursuant to Section 10.04(d) are several and not joint.  The failure  of any Lender to make any Advance, to fund any such participation or to make any  payment under Section 10.04(d) 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 10.04(d).  (f) Funding Source.  Nothing herein shall be deemed to obligate any Lender  to obtain the funds for any Advance in any particular place or manner or to constitute a  representation by any Lender that it has obtained or will obtain the funds for any  Advance in any particular place or manner.  If any Foreign Subsidiary shall request any  Borrowing hereunder, any Lender may, with notice to the Agent and the Parent  Borrower, fulfill its Commitment by causing an Affiliate or branch of such Lender to act  as the Lender in respect of such Foreign Subsidiary (and such Lender shall, to the extent  of Advances made to and participations in Letters of Credit issued for the account of such  Foreign Subsidiary, be deemed for all purposes hereof to have pro tanto assigned such  Advances and participations to such Affiliate or branch in compliance with the provisions  of Section 10.07).  SECTION 4.02  Taxes.  (a)  Payments Free of Taxes; Obligation to Withhold;  Payments on Account of Taxes.    (i) For purposes of this Section 4.02, the term “Lender” includes the  Swing Line Lender and any Issuing Bank.  (ii) All payments by or on account of any obligation of any Loan Party  under any Loan Document shall be made without deduction or withholding for  

 

   134      any Taxes, except as required by applicable Laws.  If any applicable Laws (as  determined in the good faith discretion of the applicable withholding agent)  require the deduction or withholding of any Tax in respect of any such payment  by any Loan Party, then the applicable withholding agent shall be entitled to make  such deduction or withholding.  (iii) If any applicable withholding agent shall be required (as  determined in the good faith discretion of such applicable withholding agent) by  any applicable Laws to withhold or deduct any Taxes in respect of any payment,  then (A) the applicable withholding agent, as required by such Laws, shall  withhold or make such deductions as are determined by it to be required, (B) the  applicable withholding 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 Loan Party shall be increased as necessary so that after any required  withholding or the making of all required deductions (including any withholding  or deductions in respect of Indemnified Taxes applicable to additional sums  payable under this Section 4.02) the applicable Lender (or, in the case of any  payment made to the Agent for its own account, the Agent) receives an amount  equal to the sum it would have received had no such withholding or deduction  been made.  (b) Payment of Other Taxes by the Parent Borrower.  Without limiting the  provisions of subsection (a) above, the Parent Borrower shall timely pay to the relevant  Governmental Authority in accordance with applicable Laws, or at the option of the  Agent timely reimburse it for the payment of, any Other Taxes.  (c) Tax Indemnification.  (i) Each of the Loan Parties shall, and does hereby  agree to, jointly and severally indemnify each Recipient, and shall make payment in  respect thereof within 10 Business Days after demand therefor, for the full amount of any  Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable  to amounts payable by such Loan Party under this Section 4.02) payable or paid by such  Recipient or required to be withheld or deducted from a payment to such Recipient, and  any reasonable expenses arising therefrom or with respect thereto, regardless of whether  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 Parent Borrower by a Lender Party (with a copy to the Agent), or by the  Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest  error.  (ii) Each Lender shall, and does hereby agree to, severally indemnify,  and shall make payment in respect thereof within 10 Business Days after demand  therefor, (x) the Agent against any Indemnified Taxes attributable to such Lender  (but only to the extent that any Loan Party has not already indemnified the Agent  for such Indemnified Taxes and without limiting the obligation of the Loan  Parties to do so), (y) the Agent against any Taxes attributable to such Lender’s  

 

   135      failure to comply with the provisions of Section 10.07(d) relating to the  maintenance of a Participant Register and (z) the Agent and the Loan Parties, as  applicable, against any Excluded Taxes attributable to such Lender, in each case,  that are payable or paid by the Agent in respect of any payment to such Lender by  or on account of any obligation of any Loan Party under 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 Party hereby authorizes the Agent to set off and apply any and  all amounts at any time owing to such Lender Party under this Agreement or any  other Loan Document against any amount due to the Agent under this clause (ii).    (d) Evidence of Payments.  As soon as practicable after any payment of Taxes  by any Loan Party to a Governmental Authority as provided in this Section 4.02, the  Parent Borrower 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  required by Laws to report such payment or other evidence of such payment reasonably  satisfactory to the Agent.  (e) Status of Lenders; Tax Documentation.    (i) In addition to the requirement set forth in subsection (iii) below,  any Lender that is entitled to an exemption from or reduction of withholding tax  with respect to any payments made under any Loan Document shall deliver to the  Parent Borrower and the Agent, at the time or times reasonably requested by the  Parent Borrower or the Agent, such properly completed and executed  documentation reasonably requested by the Parent Borrower or the Agent as will  permit such payments to be made without withholding or at a reduced rate of  withholding.  In addition to the requirements set forth in the preceding sentence  and subsection (iii) below, any Lender, if reasonably requested by the Parent  Borrower or the Agent, shall deliver such other documentation prescribed by  applicable Laws or reasonably requested by the Parent Borrower or the Agent as  will enable the Parent Borrower or the Agent to determine whether or not such  Lender is subject to backup withholding or information reporting requirements  and shall otherwise cooperate with the Parent Borrower and the Agent to  minimize the amount payable by any Loan Party pursuant to this Section 4.02.  (ii) Without limiting the generality of the foregoing,  (A) any Lender that is a United States Person shall deliver to  the Parent Borrower 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 Parent Borrower or the  Agent), two properly completed and duly executed originals of IRS Form  W-9 certifying that such Lender is exempt from United States federal  backup withholding tax;   

 

   136      (B) any Foreign Lender shall, to the extent it is legally eligible  to do so, deliver to the Parent Borrower and the Agent 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 Parent Borrower or the Agent), two properly completed and duly  executed originals of 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, IRS Form W-8BEN-E (or W-8BEN, as applicable)  establishing an exemption from, or reduction of, United States  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, United  States federal withholding tax pursuant to the “business profits” or  “other income” article of such tax treaty;  (2) IRS Form W-8ECI;  (3) in the case of a Foreign Lender claiming the  benefits of the exemption for portfolio interest under Section  881(c) of the Code, (x) a properly completed and duly executed  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 Code, a “10 percent shareholder” of the Parent  Borrower within the meaning of Section 881(c)(3)(B) of the Code,  or a “controlled foreign corporation” described in Section  881(c)(3)(C) of the Code (a “United States Tax Compliance  Certificate”), and that no payments to be made to such Foreign  Lender will be effectively connected with its conduct of a U.S.  trade or business and (y) IRS Form W-8BEN-E (or W-8BEN, as  applicable); or  (4) to the extent a Foreign Lender is not the beneficial  owner (e.g., where the Foreign Lender is a partnership or a  participating Lender), IRS Form W-8IMY, accompanied by copies  of IRS Form W-8ECI, IRS Form W-8BEN-E (or W-8BEN, as  applicable), a properly completed and duly executed United States  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 if the Foreign Lender is a partnership (and not a participating  Lender) and one or more direct or indirect partners of such Foreign  Lender are claiming the portfolio interest exemption, such Foreign  Lender may provide a United States Tax Compliance Certificate  

 

   137      substantially in the form of Exhibit H-4 on behalf of such direct  and indirect partner(s);  (C) any Foreign Lender shall, to the extent it is legally eligible  to do so, deliver to the Parent Borrower and the Agent  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 Parent Borrower or the Agent), two properly completed and duly  executed originals of any other documentation prescribed by applicable  Laws as a basis for claiming exemption from or a reduction in United  States Federal withholding tax, duly completed, together with such  supplementary documentation as may be prescribed by applicable Laws to  permit the Parent Borrower 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 Code, as applicable), such Lender shall deliver to the Parent  Borrower and the Agent at the time or times prescribed by applicable  Laws and at such time or times reasonably requested by the Parent  Borrower or the Agent such documentation prescribed by applicable Laws  (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such  additional documentation reasonably requested by the Parent Borrower or  the Agent as may be necessary for the Parent Borrower and the Agent to  comply with their obligations under FATCA, to determine whether such  Lender has complied with such Lender’s obligations under FATCA or to  determine the amount, if any, to deduct and withhold from such payment.   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 documentation it previously  delivered pursuant to this Section 4.02 expires or becomes obsolete or inaccurate  in any respect, it shall update such documentation or promptly notify the Parent  Borrower and the Agent in writing of its legal ineligibility to do so.  (iv) Notwithstanding anything to the contrary in this Section 4.02(e),  no Lender shall be required to deliver any documentation that such Lender is not  legally eligible to deliver.  (v) Each Lender hereby authorizes the Agent to deliver to the Parent  Borrower and to any successor Agent any documentation provided by such  Lender to the Agent pursuant to this Section 4.02(e).  (f) Treatment of Certain Tax Benefits.  Unless required by applicable Laws,  at no time shall the Agent have any obligation to file for or otherwise pursue on behalf of  

 

   138      a Lender, or have any obligation to pay to any Lender, any refund of Taxes withheld or  deducted from funds paid for the account of such Lender.  If any Recipient determines, in  its sole discretion exercised in good faith, that it has received a refund of, credit against,  release or remission for, or repayment of any Taxes as to which it has been indemnified  by any Loan Party or with respect to which any Loan Party has paid additional amounts  pursuant to this Section 4.02 (any such refund, credit, release, remission or repayment, a  “Tax Benefit”), it shall pay to the applicable Loan Party an amount equal to such Tax  Benefit (but only to the extent of indemnity payments made, or additional amounts paid,  by a Loan Party under this Section 4.02 with respect to the Taxes giving rise to such Tax  Benefit), net of all out-of-pocket expenses (including Taxes) incurred by such Recipient,  and without interest (other than any interest paid by the relevant Governmental Authority  with respect to such Tax Benefit), provided that the applicable Loan Party, upon the  request of the Recipient, agrees to repay the amount paid over to such Loan Party (plus  any penalties, interest or other charges imposed by the relevant Governmental Authority)  to the Recipient in the event the Recipient is required to repay such Tax Benefit 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 the applicable  Loan Party 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 Tax Benefit 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 Loan Party or any other Person.  (g) Each Lender agrees with the Parent Borrower that it will take all  reasonable actions by all usual means to (i) secure and maintain the benefit of all benefits  available to it under the provisions of any applicable double tax treaty concluded by the  United States of America to which it may be entitled by reason of the location of such  Lender’s lending office or place of incorporation or its status as an enterprise of any  jurisdiction having any such applicable double tax treaty, if such benefit would reduce the  amount payable by any Loan Party in accordance with this Section 4.02 and (ii)  otherwise cooperate with the Parent Borrower to minimize the amount payable by any  Loan Party pursuant to this Section 4.02; provided, however, that no Lender shall be  obliged to disclose to any Loan Party any information regarding its tax affairs or tax  computations or to reorder its tax affairs or tax planning pursuant thereto.  (h) Survival.  Each party’s obligations under this Section 4.02 shall survive  the resignation or replacement of the Agent or any assignment of rights by, or the  replacement of, a Lender Party, the termination of the Commitments and the repayment,  satisfaction or discharge of all other Obligations.  SECTION 4.03  Sharing of Payments by Lenders.  If any Lender shall, by  exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any  principal of or interest on any of the Revolving Credit Advances made by it, or the participations  in L/C Obligations or in Swing Line Advances held by it resulting in such Lender’s receiving  payment of a proportion of the aggregate amount of such Revolving Credit Advances or  

 

   139      participations and accrued interest thereon greater than its pro rata share thereof as provided  herein, then the Lender receiving such greater proportion shall (a) notify the Agent of such fact,  and (b) purchase (for cash at face value) participations in the Revolving Credit Advances and  subparticipations in L/C Obligations and Swing Line 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 principal of and  accrued interest on their respective Revolving Credit Advances and other amounts owing them,  provided that:  (i) 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  (ii) the provisions of this Section shall not be construed to apply to (x) any  payment made by or on behalf of any Loan Party 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 2.13, or (z) any payment obtained by a Lender as consideration for the  assignment of or sale of a participation in any of its Revolving Credit Advances or  subparticipations in L/C Obligations or Swing Line Advances to any assignee or  participant, other than an assignment to the Parent Borrower or any Subsidiary thereof (as  to which the provisions of this Section shall apply).  Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do  so under applicable Law, that any Lender acquiring a participation pursuant to the foregoing  arrangements may exercise against such Loan Party rights of setoff and counterclaim with  respect to such participation as fully as if such Lender were a direct creditor of such Loan Party  in the amount of such participation.  For purposes of clause (b) of the definition of Excluded Taxes, any participation acquired  pursuant to this Section 4.03 shall be treated as having been acquired on the earlier date(s) in  which such Lender acquired the applicable interest(s) in the Commitment(s) to which such  participation relates.  SECTION 4.04  Evidence of Debt/Borrowings.  (a)  Each Lender Party shall  maintain in accordance with its usual practice an account or accounts evidencing the  indebtedness of any Loan Party to such Lender Party resulting from each Advance owing to such  Lender Party from time to time, including the amounts of principal and interest payable and paid  to such Lender Party from time to time hereunder.  (b) The Register maintained by the Agent pursuant to Section 10.07(c) shall  include a control account, and a subsidiary account for each Lender Party, in which  accounts (taken together) shall be recorded (i) the date and amount of each Borrowing  made hereunder, the Type of Advances comprising such Borrowing and the Interest  Period applicable thereto, (ii) the terms of each Assignment and Acceptance delivered to  and accepted by it, (iii) the amount of any principal or interest due and payable or to  

 

   140      become due and payable from each Loan Party to each Lender Party hereunder, and  (iv) the amount of any sum received by the Agent from any Loan Party hereunder and  each Lender Party’s share thereof.  (c) The entries made in the Register shall be conclusive and binding for all  purposes, absent manifest error.  (d) Upon the request of any Lender to the Parent Borrower made through the  Agent, the Parent Borrower shall execute and deliver, or cause to be executed and  delivered, to such Lender (through the Agent) a Note, which shall evidence such  Lender’s Advances to the Loan Parties in addition to such accounts or records.  Each  Lender may attach schedules to a Note and endorse thereon the date, Type (if applicable),  amount, currency and maturity of its Advances and payments with respect thereto.  ARTICLE V  CONDITIONS OF LENDING  SECTION 5.01  Conditions Precedent to Effectiveness of this Amendment and  Restatement.  This amendment and restatement of the Existing Credit Agreement shall become  effective on and as of the first date on which the following conditions precedent have been  satisfied or waived:  (a) The Agent shall have received the following in form and substance  satisfactory to the Agent:  (i) Executed counterparts of this Agreement, sufficient in number for  distribution by the Agent to each of the Lenders and the Parent Borrower.  (ii) The notes to the order of the Lenders to the extent requested by  any Lender pursuant to Section 4.04(d).  (iii) Duly executed copies of (A) the U.S. Security Agreement, and all  exhibits and schedules thereto and (B) the Canadian Security Agreements, and all  exhibits and schedules thereto.  (iv) Certified copies of the resolutions of the board of directors (or  persons performing similar functions) of each Loan Party approving transactions  of the type contemplated by this Agreement and each of the Loan Documents to  which it is or is to be a party.  (v) A copy of a certificate of the Secretary of State (or equivalent  Governmental Authority) of the jurisdiction of organization of each U.S. Loan  Party listing (or, as regards a Canadian Loan Party, a certificate of the Secretary  or an Assistant Secretary of each Canadian Loan Party certifying a copy of) the  certificate or articles of incorporation (or similar Constitutive Document) of each  such Loan Party and each amendment thereto on file in the office of such  Secretary of State (or such Governmental Authority) and (A) certifying that such  

 

   141      amendments are the only amendments to such Person’s certificate or articles of  incorporation (or similar constitutive document) on file in such office,  (B) certifying if customarily available in such jurisdiction, that such Person has  paid all franchise taxes (or the equivalent thereof) to the date of such certificate  and (C) as regards U.S. Loan Parties, certifying that such Person is duly organized  and is in good standing under the laws of the jurisdiction of its organization. The  Canadian Loan Parties shall deliver a certificate as to the good standing (or local  equivalent) of each Canadian Loan Party (to the extent available in the relevant  jurisdiction) as of a recent date, from the applicable Governmental Authority in  the jurisdiction of organization, incorporation or formation of such Canadian  Loan Party).  (vi) A certificate of the Secretary or an Assistant Secretary of each  Loan Party certifying the names and true signatures of the officers of such Loan  Party authorized to sign each Loan Document to which it is a party and the other  documents to be delivered hereunder.  (vii) A favorable opinion of Orrick, Herrington & Sutcliffe LLP and  Osler, Hoskin & Harcourt LLP, special counsel to the Loan Parties, in each case  in a form reasonably acceptable to the Agent and addressed to the Agent, the  Issuing Banks and each of the Lenders.  (viii) Except to the extent that the Agent reasonably agrees that such  conditions may be satisfied within a post-closing period to be set forth on  Schedule 7.01(p), (1) the Perfection Certificate and all agreements, documents,  filings, recordations and lien searches reasonably necessary or requested by the  Agent in connection with the creation, perfection and priority of the Liens in favor  of the Agent, for the benefit of the Secured Parties, securing the Obligations shall  have been duly executed, and/or made; (2) all filing and recording fees and taxes  shall have been duly paid and (3) the Agent shall be satisfied with the amount,  types and terms and conditions of all insurance maintained by Parent Borrower  and its Subsidiaries, and the Agent shall have received evidence of such  insurance, together with endorsements naming the Agent, on behalf of the  Secured Parties, as an additional insured or lender’s loss payee, as the case may  be, under all insurance policies.  (ix) All governmental, shareholder and third party consents necessary  (if any) in connection with the Transactions.  (x) A certificate of a Responsible Officer of Parent Borrower to the  effect set forth in Section 5.01(b), 5.02(a) and 5.02(b) below.  (xi) A certificate of the chief financial officer of the Parent Borrower as  to the solvency of the Parent Borrower and its Subsidiaries (after giving effect to  the Transactions and the incurrence of Revolving Credit Advances and Letters of  Credit on the Restatement Date).  

 

   142      (xii) The Joint Lead Arrangers shall have received (1) forecasts  prepared by management of the Parent Borrower and its Subsidiaries, taken as a  whole, each in form and substance reasonably satisfactory to the Joint Lead  Arrangers, of (x) balance sheets, income statements, and cash flow statements on  a quarterly basis through the end of the Fiscal Year ending on January 28, 2023  and balance sheets, income statements, and cash flow statements on an annual  basis through the end of the Fiscal Year ending February 1, 2025 (y) projected  Borrowing Bases and Availability forecasts on a quarterly basis for the Fiscal  Year ending on January 28, 2023.   (xiii) At least three days prior to the Restatement Date, any Loan Party  that qualifies as a “legal entity customer” under the Beneficial Ownership  Regulation shall deliver, to each Lender that so requests, a Beneficial Ownership  Certification in relation to such Loan Party.  (xiv) Such other documents as the Agent may reasonably request and,  upon the reasonable request of any Lender made at least ten (10) days prior to the  Restatement Date, such documentation and other information so requested in  connection with applicable “know your customer” and anti-money-laundering  rules and regulations, including the PATRIOT Act and the Proceeds of Crime  (Money Laundering) and Terrorist Financing Act (Canada), in each case at least  three days prior to the Restatement Date.  (b) There shall not have occurred since January 29, 2022 any event or  condition that has had or could be reasonably expected, either individually or in the  aggregate, to have a Material Adverse Change.  (c) There shall not be any action, suit, investigation or proceeding pending or,  to the knowledge of the Loan Parties, threatened in any court or before any arbitrator or  Governmental Authority that is reasonably likely to be adversely determined, and if,  adversely determined could reasonably be expected to have a Material Adverse Effect.   (d) The Lenders shall have completed a due diligence investigation of Parent  Borrower and its Subsidiaries in scope, and with results, satisfactory to the Lenders,  including with respect to U.S. Department of Treasury Office of Foreign Assets Control,  Foreign Corrupt Practices Act, the Corruption of Foreign Public Officials Act (Canada),  anti-money laundering laws, rules and regulations (including applicable foreign laws,  rules and regulations).  (e) Parent Borrower shall have paid all documented accrued fees and  expenses of the Agent and the Lenders (including the documented accrued fees and  expenses of counsel to the Agent and such other counsel agreed by the Parent Borrower).  (f) All amounts owing by Parent Borrower or any of its Subsidiaries to the  lenders and agents under the Existing Credit Agreement (except for the Letters of Credit  issued thereunder) shall have been, or concurrently with the initial extension of credit  made on the Restatement Date shall be, paid in full.   

 

   143      (g) After giving effect to (i) any Revolving Credit Advance funded on the  Restatement Date and (ii) all Letters of Credit to be issued at, or immediately subsequent  to, the Restatement Date, Availability plus the amount of cash and Cash Equivalents of  Parent Borrower and its Subsidiaries shall be not less than $2,000,000,000.  (h) The Agent shall have received a Borrowing Base Certificate dated the  Restatement Date, relating to the Fiscal Quarter ended on April 30, 2022, and executed  by a Responsible Officer of the Parent Borrower.   SECTION 5.02  Conditions Precedent to Credit Extension.  The obligation of  each Lender to make an Advance (including a Swing Line Advance), including on the occasion  of each Borrowing (including the initial Borrowing), and the obligation of each Issuing Bank to  Issue each Letter of Credit (including the initial Letter of Credit) shall be subject to the further  conditions precedent that on the date of such Credit Extension the following statements shall be  true (and each of the giving of the applicable Request for Credit Extension and the acceptance by  any Borrower shall constitute a representation and warranty by such Borrower that on the date of  such Credit Extension such statements are true):  (a) The representations and warranties contained in Section 6.01 are correct  on and as of the date of such Borrowing or Issuance, before and after giving effect to  such Credit Extension, and to the application of the proceeds therefrom, as though made  on and as of such date, except to the extent that any such representation or warranty is  stated to relate to an earlier date, in which case such representation or warranty shall be  true and correct on and as of such earlier date;  (b) No event has occurred and is continuing, or would result from such Credit  Extension or from the application of the proceeds therefrom, which constitutes an Event  of Default or Default; and  (c) In the case of a Credit Extension to be denominated in an Alternative  Currency (other than Canadian Dollars), there shall not have occurred any change in  national or international financial, political or economic conditions or currency exchange  rates or exchange controls which in the reasonable opinion of the Agent, the Majority  Lenders (in the case of any Advances to be denominated in an Alternative Currency other  than Canadian Dollars) or the Issuing Banks (in the case of any Letter of Credit to be  denominated in an Alternative Currency other than Canadian Dollars) would make it  impracticable for such Credit Extension to be denominated in the relevant Alternative  Currency (other than Canadian Dollars); and  (d) Immediately after giving effect to the Credit Extension requested to be  made on any such date and the use of proceeds thereof, Availability shall be greater than  zero.  (e) Solely to the extent that Availability shall be less than the greater of (x)  $900,000,000 and (y) 60.0% of the Loan Cap immediately after giving effect to the  Credit Extension requested to be made on any such date and the use of proceeds thereof,  Parent Borrower shall have delivered a Borrowing Base Certificate to the Agent for  

 

   144      distribution to the Lenders calculated as of the last day of the most recently ended Fiscal  Month ended at least 15 days prior to the date of such Credit Extension.    ARTICLE VI  REPRESENTATIONS AND WARRANTIES  SECTION 6.01  Representations and Warranties of the Loan Parties.  Each Loan  Party represents and warrants as follows:  (a) Corporate Status.  Each Loan Party is duly organized or formed, validly  existing and in good standing under the laws of its jurisdiction of incorporation or  organization and possesses all powers (corporate or otherwise) and all other  authorizations and licenses necessary to carry on its business, except where the failure to  so possess would not have a Material Adverse Effect.     (b) Corporate Authority; Non-Contravention.  The execution, delivery and  performance by each Loan Party of the Loan Documents to which it is a party and the  consummation of the transactions contemplated thereby are within such Loan Party’s  respective powers (corporate or otherwise), have been duly authorized by all necessary  action (corporate or otherwise), and do not (i) contravene such Loan Party’s Constitutive  Documents, (ii) violate any Requirements of Law in any material respect, (iii) conflict  with or result in the breach of, or constitute a default or require any payment to be made  under, any material contract, loan agreement, indenture, mortgage, deed of trust, lease or  other material instrument binding on or affecting any Loan Party or any of its properties  or (iv) result in or require the creation or imposition of any Lien upon or with respect to  any of the properties of any Loan Party.  No Loan Party is in violation of any such  Requirements of Law or in breach of any such contract, loan agreement, indenture,  mortgage, deed of trust, lease or other instrument, the violation or breach of which would  be reasonably likely to have a Material Adverse Effect.  (c) Authorization.  No authorization or approval or other action by, and no  notice to or filing with, any governmental authority or regulatory body is required for the  due execution, delivery and performance by any Loan Party of the Loan Documents to  which it is a party.  (d) Binding Effect.  Each Loan Document is the legal, valid and binding  obligation of the Loan Party thereto enforceable against such Loan Party in accordance  with its terms, except as limited by bankruptcy, insolvency or other laws of general  application relating to or affecting the enforcement of creditors’ rights generally and  general principles of equity (regardless of whether considered in a proceeding in equity  or at law).  (e) Litigation.  There is no pending or, to the Parent Borrower’s knowledge,  threatened action or proceeding affecting the Parent Borrower or any of its Subsidiaries  before any court, governmental agency or arbitrator, (i) which has a reasonable  probability (taking into account the exhaustion of all appeals and the assertion of all  

 

   145      defenses) of having a Material Adverse Effect or (ii) which purports to affect the legality,  validity or enforceability of any Loan Document.  (f) Financial Statements.  The Consolidated balance sheets of the Parent  Borrower and its Subsidiaries as of January 29, 2022, and the related Consolidated  statements of income and retained earnings of the Parent Borrower and its Subsidiaries  for the Fiscal Year then ended, certified by Deloitte & Touche LLP, copies of which have  been furnished to each Lender Party, fairly present in all material respects the  Consolidated financial condition of the Parent Borrower and its Subsidiaries taken as a  whole as at such date and the results of the operations of the Parent Borrower and its  Subsidiaries for the period ended on such date, all in accordance with GAAP consistently  applied.    (g) Material Adverse Change.  Since January 29, 2022, there has been no  Material Adverse Change.  (h) Compliance With Law.  The Parent Borrower and each of its Subsidiaries  is in compliance with all Requirements of Law (including, without limitation, all  applicable Environmental Laws) applicable to their respective properties, assets and  business other than (i) where the failure to so comply would (as to all such failures to  comply in the aggregate) not have a Material Adverse Effect or (ii) as described on  Schedule 6.01(h).  (i) ERISA.  Except as provided in Schedule 6.01(i):  (i) Neither a Loan Party nor any ERISA Affiliate is a party or subject  to, or has any obligation to make payments, or incur any material Withdrawal  Liability, to, any Multiemployer Plan.  (ii) Schedule SB (Actuarial Information) to the most recently  completed annual report (Form 5500 Series) for each Plan, copies of which have  been or will be filed with the Internal Revenue Service, is complete and accurate  in all material respects and fairly presents the funding status of such Plan, and  since the date of such Schedule SB there has been no material adverse change in  such funding status which would reasonably be likely to result in a Material  Adverse Effect.  (iii) No ERISA Event has occurred with respect to any Plan that, when  taken together with all other such ERISA Events for which liability is reasonably  expected to occur, would reasonably be likely to result in a Material Adverse  Effect.  (iv) Neither a Loan Party nor any ERISA Affiliate has been notified by  the sponsor of a Multiemployer Plan that such Multiemployer Plan is in  reorganization, insolvent or has been terminated, within the meaning of Title IV  of ERISA or has been determined to be in “endangered” or “critical” status within  the meaning of Section 432 of the Code or Section 305 or ERISA and no  

 

   146      Multiemployer Plan is reasonably expected to be in reorganization or to be  terminated, within the meaning of Title IV of ERISA.  (j) Federal Reserve Regulations.  No Loan Party is engaged in the business of  extending credit for the purpose of purchasing or carrying Margin Stock, and no proceeds  of any Advance or drawing under any Letter of Credit will be used to purchase any  Margin Stock or to extend credit to others for the purpose of purchasing or carrying any  Margin Stock.  (k) Investment Company.  Neither the Parent Borrower nor any of its  Subsidiaries is an “investment company,” or an “affiliated person” of, or “promoter” or  “principal underwriter” for, an “investment company,” as such terms are defined in the  Investment Company Act of 1940, as amended.  (l) Disclosure.  As of the Restatement Date, no information, exhibit or report  furnished by any Loan Party to the Agent or any Lender Party in connection with the  negotiation and syndication of the Loan Documents or pursuant to the terms of the Loan  Documents contained any untrue statement of a material fact or omitted to state a  material fact necessary to make the statements made therein not misleading; provided that  all financial projections, if any, that have been or will be prepared by the Parent Borrower  and made available to the Joint Lead Arrangers, the Agent, any Lender or any potential  Lender, or any other party hereto, have been or will be prepared in good faith based upon  reasonable assumptions, it being understood by the Lenders and all the other parties  hereto that such projections are subject to significant uncertainties and contingencies,  many of which are beyond the Parent Borrower’s control, and that no assurances can be  given that the projections will be realized.  (m) OFAC.  Neither the Parent Borrower, nor any of its Subsidiaries, nor, to  the knowledge of the Parent Borrower and its Subsidiaries, any director, officer,  employee, agent, affiliate or representative thereof, is an individual or entity that is, or is  owned or controlled by one or more individuals or entities that are (i) currently the  subject or target of any Sanctions, (ii) included on OFAC’s List of Specially Designated  Nationals, 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 Sanctioned Jurisdiction (any Person described in  clauses (i), (ii) or (iii) being a “Sanctioned Person”).  The Parent Borrower, its  Subsidiaries and to the knowledge of the Borrowers, their respective officers, employees,  directors and agents, are in compliance with applicable Sanctions in all material respects  and are not knowingly engaged in any activity that would reasonably be expected to  result in the Parent Borrower or any of its Subsidiaries being designated as a Sanctioned  Person.  (n) Anti-Corruption Laws.  The Parent Borrower and its Subsidiaries have  conducted their businesses in compliance with the United States Foreign Corrupt  Practices Act of 1977, the Corruption of Foreign Public Officials Act (Canada), the UK  Bribery Act 2010, and other similar anti-corruption legislation in other jurisdictions and  have instituted and maintain in effect and enforce policies and procedures designed to  

 

   147      promote and achieve compliance by the Parent Borrower, its Subsidiaries and their  respective directors, officers, employees and agents with such Laws.  (o) [Reserved].  (p) EEA Financial Institution.  Neither the Parent Borrower nor any other  Loan Party is an Affected Financial Institution.  (q) Beneficial Ownership Certification.  As of the Restatement Date, the  information included in each Beneficial Ownership Certification is true and correct in all  respects.  (r) Deposit Accounts; Credit Card Arrangements.  (i) Annexed hereto as Schedule 6.01(r)(i) is a list of all DDAs  maintained by the Loan Parties as of the Restatement Date, which Schedule  includes, with respect to each DDA (a) the name and address of the depository;  (b) the account number(s) maintained with such depository; (c) a contact person at  such depository, (d) whether such DDA is required to be a Blocked Account (and  an explanation of any exclusions); and (e) the identification of each Blocked  Account Bank.  (ii) Annexed hereto as Schedule 6.01(r)(ii) is a list describing all  arrangements as of the Restatement Date to which any Loan Party is a party with  respect to the processing and/or payment to such Loan Party of the proceeds of  any credit card charges and debit card charges for sales made by such Loan Party.  (s) Borrowing Base Certificate.  The information set forth in each Borrowing  Base Certificate is true and correct in all material respects.  (t) Canadian Pension Plans.  Except as would not reasonably be expected to  result in a Material Adverse Effect, each Canadian Loan Party is in compliance with the  requirements of the PBA with respect to each Canadian Pension Plan.  None of the Loan  Parties nor any of their Subsidiaries maintains or contributes to, or has any liability under,  any Canadian Defined Benefit Plan.  Except as would not, either individually or in the  aggregate, reasonably be expected to result in a Material Adverse Effect, (i) no Canadian  Loan Party has any withdrawal liability in connection with a Canadian Pension Plan that  is a “multi-employer plan” as that term is defined in subsection 8500(1) of the Income  Tax Regulations (Canada), (ii) no Canadian Pension Event has occurred and (iii) no Lien  has arisen, choate or inchoate, in respect of the Loan Parties or their property in  connection with any Canadian Pension Plan (save for contribution amounts not yet due).  (u) Except as would not reasonably be expected, individually or in the  aggregate, to have a Material Adverse Effect, (a) the Parent Borrower and each of its  Subsidiaries has filed all Tax returns required to have been filed by it and has timely paid  all Taxes payable by it (whether or not shown on a Tax return and including in its  capacity as withholding agent) that have become due, other than those being contested in  good faith and by proper proceedings if it has maintained adequate reserves with respect  

 

   148      thereto in accordance with GAAP, (b) the Parent Borrower and each of its Subsidiaries  has paid, or has provided adequate accruals or reserves in accordance with GAAP for the  payment of, all Taxes not yet due and payable and (c) there is no current or proposed Tax  assessment, deficiency or other claim against the Parent Borrower or any of its  Subsidiaries.  ARTICLE VII  COVENANTS OF THE LOAN PARTIES  SECTION 7.01  Affirmative Covenants.  So long as any Lender shall have any  Commitment hereunder, any Advance or other Obligation hereunder shall remain unpaid or  unsatisfied (other than contingent indemnification obligations for which a claim has not been  asserted), or any Letter of Credit shall remain outstanding, the Loan Parties shall, and shall cause  each Restricted Subsidiary to:  (a) Preservation of Existence, Etc.  Preserve and maintain, and cause each of  its Subsidiaries to preserve and maintain, its existence (corporate or otherwise), rights  (charter and statutory), and franchises except if, in the reasonable business judgment of  the Parent Borrower or such Subsidiary, as the case may be, it is in its best economic  interest not to preserve and maintain such rights or franchises and such failure to preserve  and maintain such rights or franchises would not materially adversely affect the rights of  the Lenders or the Issuing Banks hereunder or the ability of any Loan Party to perform its  obligations under the respective Loan Documents (it being understood that the foregoing  shall not prohibit, or be violated as a result of, any transactions by or involving any Loan  Party or other Subsidiary otherwise permitted under Section 7.02); and maintain in effect  and enforce policies and procedures designed to promote and achieve compliance by the  Parent Borrower, its Subsidiaries and their respective directors, officers, employees and  agents with applicable Sanctions.  (b) Compliance with Laws, Etc.  Comply, and cause each of its Subsidiaries  to comply, in all material respects with all applicable Laws (including, without limitation,  ERISA, the PBA and all Environmental Laws), rules, regulations and orders, such  compliance to include, without limitation, paying before the same become delinquent all  taxes, assessments and governmental charges imposed upon it or upon its property except  to the extent contested in good faith or where the failure to comply would not have a  Material Adverse Effect.  (c) Visitation Rights.    (i) Permit representatives and, subject to the provisions of  Section 10.11 hereof, independent contractors of the Agent, to visit and inspect  any of its properties and to discuss its affairs, finances and accounts with its  directors, officers, and accountants (at which representatives of the Loan Parties  have the right to be present), all at the expense of the Loan Parties and at such  reasonable times during normal business hours, upon reasonable advance notice  to Parent Borrower, and permit any Lender (at the sole cost and expense of such  

 

   149      Lender) to participate in any such visit, inspection or discussion; provided,  however, that when an Event of Default exists the Agent (or any of its  representatives or independent contractors) may do any of the foregoing at the  expense of the Loan Parties at any time during normal business hours and without  advance notice.  (ii) Upon the request of the Agent after reasonable prior notice and  subject to the following sentence of this Section 7.01(c)(ii), permit the Agent or  professionals (including investment bankers, consultants, accountants, and  lawyers) retained by the Agent to conduct commercial finance examinations of (i)  Parent Borrower’s practices in the computation of the Borrowing Base and (ii) the  assets included in the Borrowing Base and related financial information such as,  but not limited to, sales, gross margins, payables, accruals and reserves. Unless  Availability is at all times greater than the greater of (x) $1,200,000,000 and (y)  80.0% of the Loan Cap during such twelve month period, the Agent (A) shall  conduct one (1) commercial finance examination in any twelve month period, at  the Borrowers’ expense, provided that, (I) in the event that (x) Availability is at  any time less than the greater of (x) $285.0 million and (y) 15.0% of the Loan  Cap, the Agent may conduct up to two (2) commercial finance examinations in  any 12 month period, at the Borrowers’ expense and (II) no commercial financial  examinations shall be conducted during the twelve month period commencing  with the Restatement Date pursuant to this clause (A) unless Availability is at any  time less than the greater of (x) $285.0 million and (y) 15.0% of the Loan Cap,  (B) may conduct one (1) additional commercial finance examination at the  expense of the Lenders in any 12 month period; provided, however, that  notwithstanding anything in the foregoing clauses (A) or (B), in no event shall  there be more than two (2) commercial finance examinations in any 12 month  period unless the provisions of clause (C) are then applicable, and (C) may  conduct additional commercial finance examinations as frequently as determined  by the Agent in its Permitted Discretion if an Event of Default has occurred and is  continuing, at the expense of the Borrowers.  (iii) Upon the request of the Agent after reasonable prior notice and  subject to the following sentence of this Section 7.01(c)(iii), permit the Agent or  professionals (including appraisers) retained by the Agent to conduct appraisals of  the Collateral, including, without limitation, the assets included in the Borrowing  Base. Unless Availability is at all times greater than the greater of (x)  $1,200,000,000 and (y) 80.0% of the Loan Cap during such twelve month period,  the Agent (A) shall conduct one (1) inventory appraisal in any twelve month  period, at the Borrowers’ expense, provided that, (I) in the event that (x)  Availability is at any time less than the greater of $285.0 million and 15.0% of the  Loan Cap, the Agent may conduct up to two (2) inventory appraisals in any 12  month period, at the Borrowers’ expense and (II) no inventory appraisals shall be  conducted during the twelve month period commencing with the Restatement  Date pursuant to this clause (A) unless Availability is at any time less than the  greater of (x) $285.0 million and (y) 15.0% of the Loan Cap, (B) may conduct one  (1) additional inventory appraisal at the expense of the Lenders in any 12 month  

 

   150      period; provided, however, that notwithstanding anything in the foregoing clauses  (A) or (B), in no event shall there be more than two (2) inventory appraisals in  any 12 month period unless the provisions of clause (C) are then applicable, and  (C) the Agent may conduct additional inventory appraisals as frequently as  determined by the Agent in its Permitted Discretion if an Event of Default has  occurred and is continuing, at the expense of the Borrowers.   (d) Maintenance of Books and Records.  Keep, and cause each of its  Subsidiaries to keep, proper books of record and account, in which full and correct entries  shall be made of all financial transactions and the assets and business of the Parent  Borrower and each of its Subsidiaries in accordance with sound business practice.  (e) Maintenance of Properties, Etc.  Maintain and preserve, and cause each of  its Subsidiaries to maintain and preserve, all of its properties which are used or useful in  the conduct of its business in good working order and condition, ordinary wear and tear  excepted, consistent with sound business practice, except where the failure to so maintain  and preserve would not have a Material Adverse Effect.  (f) Maintenance of Insurance.    (i) Maintain, and cause each of its Subsidiaries to maintain, insurance  (other than earthquake or terrorism insurance) in amounts, from responsible and  reputable insurance companies or associations, with limitations, of types and on  terms as is customary for the industry; provided, that, the Parent Borrower and  each of its Subsidiaries may self-insure risks and liabilities in accordance with its  practice as of the date hereof and may in addition self-insure risks and liabilities  in amounts as are customarily self-insured by similarly situated Persons in the  industry.   (ii) Cause commercial general liability policies to be endorsed to name  the Agent as an additional insured.  (iii) Cause All Risk and Business Interruption policies to name the  Agent as a lender loss payee and to be endorsed or amended to include (i) a  provision that, from and after the Restatement Date, after the occurrence and  during the continuance of a Cash Dominion Period, in the event of an insurable  loss, the insurer shall pay all proceeds otherwise payable to the Loan Parties under  the All Risk and Business Interruption policies directly to the Agent, (ii) no  provision of coinsurance applicable to the Loan Parties, the Secured Parties or any  other Person and (iii) such other provisions as the Agent may reasonably require  from time to time to protect the interests of the Secured Parties.   (iv) Cause each such policy referred to in this Section 7.01(f) to also  provide that it shall not be canceled, modified or not renewed (i) by reason of  nonpayment of premium except upon not less than ten (10) days’ prior written  notice thereof by the insurer to the Agent (giving the Agent the right to cure  

 

   151      defaults in the payment of premiums) or (ii) for any other reason except upon not  less than thirty (30) days’ prior written notice thereof by the insurer to the Agent.  (v) Deliver to the Agent a copy of a renewal or replacement policy (or  other evidence of renewal of a policy previously delivered to the Agent, including  an insurance binder or certificate of insurance) together with evidence reasonably  satisfactory to the Agent of either payment of the premium therefor or that such  premium is being financed reasonably promptly following each such renewal,  replacement or modification.  None of the Secured Parties, or their agents or employees shall be liable for any  loss or damage insured by the insurance policies required to be maintained under this Section  7.01(f). Each Loan Party shall look solely to its insurance companies or any other parties other  than the Secured Parties for the recovery of such loss or damage and such insurance companies  shall have no rights of subrogation against any Secured Party or its agents or employees. If,  however, the insurance policies do not provide waiver of subrogation rights against such parties,  as required above, then the Loan Parties hereby agree, to the extent permitted by law, to waive  their right of recovery, if any, against the Secured Parties and their agents and employees. The  designation of any form, type or amount of insurance coverage by any Secured Party under this  Section 7.01(f) shall in no event be deemed a representation, warranty or advice by such Secured  Party that such insurance is adequate for the purposes of the business of the Loan Parties or the  protection of their properties.  (g) Use of Proceeds.  Use the proceeds of the Advances and issuances of  Letters of Credit solely to repay amounts owing under the Existing Credit Agreement and  for working capital, capital expenditures and other general corporate purposes of the  Parent Borrower and its Subsidiaries, including, without limitation, share repurchases.  (h) Anti-Corruption Laws.  Conduct its businesses in compliance with the  United States Foreign Corrupt Practices Act of 1977, the Corruption of Foreign Public  Officials Act (Canada), the UK Bribery Act 2010, and other similar anti-corruption  legislation in other jurisdictions, and maintain policies and procedures designed to  promote and achieve compliance by the Parent Borrower, its Subsidiaries and their  respective directors, officers, employees and agents with such laws.  (i) Cash Management.  (i) Credit Card Notifications.  Within 90 days after the Restatement  Date with respect to each Credit Card Issuer and Credit Card Processor listed on  Schedule 6.01(r)(ii) and within 90 days after an addition by any Loan Party of a  new Credit Card Issuer or Credit Card Processor after the Restatement Date or  such longer period as the Agent may reasonably agree, the Loan Parties shall  deliver (or shall have previously delivered) to the Agent copies of Credit Card  Notifications which have been executed on behalf of such Loan Party and  delivered to such Loan Party’s Credit Card Issuers and Credit Card Processors.  

 

   152      (ii) Creation of Dominion Accounts and Maintenance of Blocked  Accounts.  (1) With respect to each U.S. Loan Party’s DDAs  (other than  Excluded Accounts) and the U.S. Dominion Account (collectively, the “U.S.  Blocked Accounts”), within ninety (90) days (or such later date as Agent may  agree in its reasonable discretion) of the Restatement Date or, for DDAs opened  or acquired following the Restatement Date, within ninety (90) days (or such later  date as the Agent may agree in its reasonable discretion), of the opening or  establishment or acquisition of such DDA or the date any Person that owns such  DDA becomes a U.S. Loan Party hereunder, each U.S. Loan Party shall cause (or  shall have previously caused) each Blocked Account Bank, to enter into a  Blocked Account Agreement in form and substance reasonably satisfactory to the  Agent that provides for such bank or other depository institution to transfer to the  U.S. Dominion Account (in the case of other DDAs), on each Business Day, all  balances in each such Blocked Account maintained by any U.S. Loan Party with  such depository institution for application to the Obligations then outstanding  following the receipt by such bank or other depository institution of a notice from  the Agent.  Each U.S. Loan Party irrevocably appoints the Agent as such U.S.  Loan Party’s attorney-in-fact to collect such balances during a Cash Dominion  Period to the extent any such delivery is not so made.   (2) With respect to each Canadian Loan Party’s DDAs  (other than  Excluded Accounts) and the Canadian Dominion Account (collectively, the  “Canadian Blocked Accounts”, and together with the U.S. Blocked Accounts, the  “Blocked Accounts”), within ninety (90) days (or such later date as Agent may  agree in its reasonable discretion) of the Restatement Date or, for DDAs opened  or acquired following the Restatement Date, within ninety (90) days (or such later  date as the Agent may agree in its reasonable discretion), of the opening or  establishment or acquisition of such DDA or the date any Person that owns such  DDA becomes a Canadian Loan Party hereunder, each Canadian Loan Party shall  cause (or shall have previously caused) each Blocked Account Bank to enter into  a Blocked Account Agreement in form and substance reasonably satisfactory to  the Agent that provides for such bank or other depository institution to transfer to  the Canadian Dominion Account (in the case of other DDAs), on each Business  Day, all balances in each such Canadian Blocked Account maintained by any  Canadian Loan Party with such depository institution for application to the  Obligations then outstanding following the receipt by such bank or other  depository institution of a notice from the Agent.  Each Canadian Loan Party  irrevocably appoints the Agent as such Canadian Loan Party’s attorney-in-fact to  collect such balances during a Cash Dominion Period to the extent any such  delivery is not so made.  (iii) Store Accounts.  The Loan Parties shall deposit all cash proceeds  from sales of Inventory in every form, including, without limitation, cash and  checks from each Store into the Store Account of such Loan Party used solely for  such purpose in accordance with the then current practices of such Loan Party, but  in any event no less frequently than once every Business Day.  All collected funds  on deposit in the Store Accounts shall be sent by wire transfer or other electronic  

 

   153      funds transfer on each Business Day to the Blocked Accounts, except nominal  amounts which are required to be maintained in such Store Accounts under the  terms of such Loan Party’s arrangements with the bank at which such Store  Accounts are maintained, and except as the Agent may otherwise agree.   (iv) Cash Receipts.  Subject to exceptions for Store Accounts in clause  (iii) above, the Loan Parties shall ACH or wire transfer no less frequently than  once every Business Day (and whether or not there are then any outstanding  Obligations) to a Blocked Account all cash receipts of the company (including  without limitation all insurance proceeds, all Net Proceeds, all proceeds from  sales of Inventory, all amounts payable to each Loan Party from Credit Card  Issuers and Credit Card Processors and all other proceeds of ABL Priority  Collateral).  If any Loan Party receives cash or any check, draft or other item of  payment payable to a Loan Party, it shall hold the same in trust for the Agent and  promptly deposit the same into any such Blocked Account or Dominion Account.   Each Loan Party shall instruct any persons making payments on Accounts or  other Collateral to make such payments into Blocked Accounts.    (v) Dominion Account.  The Dominion Account shall at all times be  under the sole dominion and control of the Agent.  The Loan Parties hereby  acknowledge and agree that (i) the Loan Parties have no right of withdrawal from  the Dominion Account, (ii) the funds on deposit in the Dominion Account shall at  all times be collateral security for all of the Obligations and (iii) the funds on  deposit in the Dominion Account shall be applied pursuant to Section 8.02 on a  daily basis after the occurrence and during the continuation of a Cash Dominion  Period.  In the event that, notwithstanding the provisions of this Section  7.01(i)(v), any Loan Party receives or otherwise has dominion and control of any  such proceeds or collections, such proceeds and collections shall be held in trust  by such Loan Party for the Agent, shall not be commingled with any of such Loan  Party’s other funds or deposited in any account of such Loan Party and shall, not  later than the Business Day after receipt thereof, be deposited into the Dominion  Account or dealt with in such other fashion as such Loan Party may be instructed  by the Agent.  Upon the request of the Agent after the occurrence and during the  continuance of a Cash Dominion Period, the Loan Parties shall cause bank  statements and/or other reports to be delivered to the Agent not less often than  weekly, accurately setting forth all amounts deposited in each Blocked Account to  ensure the proper transfer of funds as set forth above.  (j) Information Regarding the Collateral.  Furnish to the Agent at least five  (5) days prior written notice of any change in: (i) any Loan Party’s name; or (ii) any Loan  Party’s organizational structure or jurisdiction of incorporation or formation, the location  of its registered office or chief executive office, the province or territory in which any  Canadian Collateral is located, or the province or territory in which any U.S. Collateral is  located in Canada. The Loan Parties agree not to effect or permit any change referred to  in the preceding sentence unless all filings have been made under the UCC and the PPSA,  as applicable, or otherwise that are required in order for the Agent to continue at all times  following such change to have a valid, legal and perfected first priority Lien (subject to  

 

   154      Permitted Liens) in all the Collateral for its own benefit and the benefit of the other  Secured Parties.  (k) Payment of Taxes.  The Parent Borrower will pay and discharge or cause  to be paid and discharged, and will cause each of its Subsidiaries to pay and discharge, all  Taxes imposed upon it (including in its capacity as a withholding agent) or upon its  income or profits, or upon any properties belonging to it, prior to the date on which  material penalties attach thereto, and all lawful material claims in respect of any Taxes  imposed, assessed or levied that, if unpaid, would reasonably be expected to become a  material Lien (other than a Permitted Lien) upon any properties of the Parent Borrower or  any of its Subsidiaries; provided that neither the Parent Borrower nor any of its  Subsidiaries shall be required to pay any such Tax that is being contested in good faith  and by proper proceedings if it has maintained adequate reserves with respect thereto in  accordance with GAAP or the failure to pay would not reasonably be expected,  individually or in the aggregate to result in a Material Adverse Effect.    (l) Further Assurances.    (i) Execute any and all further documents, financing statements,  agreements and instruments, and take all such further actions (including the filing  and recording of financing statements and other documents), that may be required  under any applicable Law, or which the Agent may reasonably request, to  effectuate the transactions contemplated by the Loan Documents or to grant,  preserve, protect or perfect the Liens created or intended to be created by the  Collateral Documents or the validity or priority of any such Lien, all at the  expense of the Loan Parties. The Loan Parties also agree to provide to the Agent,  from time to time upon request, evidence reasonably satisfactory to the Agent as  to the perfection and priority of the Liens created or intended to be created by the  Collateral Documents.  (ii) Upon request, cause each Subsidiary which is not a Loan Party  hereunder to deliver agreements reasonably satisfactory to the Agent granting the  Agent the right and license to use the assets and properties of such Subsidiary,  including all Intellectual Property, equipment and fixtures owned by such  Subsidiary, in connection with any Liquidation of the Collateral.   (m) Compliance with Terms of Leaseholds.  Except as otherwise expressly  permitted hereunder, (a) make all payments and otherwise perform all obligations in  respect of all Leases to which any Loan Party or any of its Subsidiaries is a party and  keep such Leases in full force and effect, (b) not allow such Leases to lapse or be  terminated or any rights to renew such Leases to be forfeited or cancelled, in each case,  except in the ordinary course of business, consistent with past practices, or except to the  extent that such actions are determined to be in the best interests of the business as  reasonably determined by the Parent Borrower, (c) notify the Agent of any default by any  party with respect to such Leases (except to the extent that such default applies to leases  subject to good faith negotiations) and cooperate with the Agent, upon the Agent’s  reasonable request, in all reasonable respects to cure any such default and (d) cause each  

 

   155      of its Subsidiaries to do the foregoing, except, in the case of any of clauses (a) through  (d) above, where the failure to do so, either individually or in the aggregate, would not be  reasonably likely to have a Material Adverse Effect.  (n) New Subsidiaries.    (i) Within thirty (30) Business Days of the formation of any Restricted  Subsidiary, acquisition of a Restricted Subsidiary or at any time a Subsidiary  becomes a Restricted Subsidiary or ceases to be an Excluded Subsidiary, Parent  Borrower shall notify Agent of such event and, promptly thereafter (and in any  event within 30 days or such longer period as Agent may agree) (i) cause each  such new Restricted Subsidiary that is not an Excluded Subsidiary to deliver to  Agent (A) a Joinder Agreement (which Joinder Agreement will specify whether  such new Loan Party will be a “Borrower” hereunder) and (B) a supplemental  Guaranty in the form attached hereto as Exhibit G, and to deliver to Agent such  security documents, together with appropriate financing statements, reasonably  requested by Agent, all in form and substance reasonably satisfactory to Agent,  and (ii) provide or cause to be provided to Agent all other customary and  reasonable documentation requested thereby, including, to the extent requested by  Agent, one or more opinions of counsel reasonably satisfactory to Agent, which in  its opinion is appropriate and customary with respect to such execution and  delivery of the applicable documentation referred to above.  Upon execution and  delivery of the Joinder Agreement by each such new Restricted Subsidiary, such  Restricted Subsidiary shall become a Loan Party hereunder with the same force  and effect as if originally named as a Loan Party herein.  The execution and  delivery of the Joinder Agreement shall not require the consent of any Loan Party  or Lender hereunder.  The rights and obligations of each Loan Party hereunder  shall remain in full force and effect notwithstanding the addition of any Loan  Party hereunder.    (ii) Notwithstanding anything to the contrary contained herein, neither  Borrower nor any Subsidiary of any Borrower shall be required to execute and  deliver any joinder agreement, Guaranty, Collateral Document or any other  document or grant a Lien in any property held by it if such action (A) for reasons  of cost, legal limitations or other matters is unreasonably burdensome in relation  to the benefits to the Lenders of such Borrower’s or such Subsidiary’s guaranty or  security as reasonably determined by Parent Borrower and Agent or (B) is  Excluded Property or otherwise would not be required with respect to the  Collateral owned by a Loan Party pursuant to the terms of the Collateral  Documents.  (o) Designation of Subsidiaries.  A Financial Officer of Parent Borrower may  at any time designate any Restricted Subsidiary as an Unrestricted Subsidiary or any  Unrestricted Subsidiary as a Restricted Subsidiary in accordance with the definition of  “Unrestricted Subsidiary”.  With respect to the assets of Unrestricted Subsidiaries and  Restricted Subsidiaries that are Loan Parties being included in the calculation of the  Borrowing Base, (a) if a Restricted Subsidiary is designated by Borrowers as an  

 

   156      Unrestricted Subsidiary, the assets of such Subsidiary shall immediately be excluded  from the Borrowing Base, and (b) if an Unrestricted Subsidiary is designated by  Borrowers as a Restricted Subsidiary after the Restatement Date, then the assets of such  Subsidiary shall not be included in the calculation of the Borrowing Base until (i) Agent  consents (such consent not to be unreasonably withheld) to such inclusion (except to the  extent such Subsidiary’s assets were previously included in the Borrowing Base) and (ii)  Agent has received satisfactory appraisals and field exams with respect to the assets of  such Subsidiary, if applicable, as reasonably required by Agent and (iii) the Loan Parties  have complied with Section 7.01(n) with respect to such Subsidiary.  As of the  Restatement Date, there are no Unrestricted Subsidiaries.  (p) Post-Closing Matters.  Execute and deliver the documents and complete  the tasks set forth on Schedule 7.01(p), in each case within the time limits specified on  such schedule, as such time limits may be extended from time to time by Agent in its  reasonable discretion.   (q) Collateral Requirement.    (i) Upon the occurrence of the Collateral Requirement, each of the  Loan Parties will grant to the Agent for the benefit of the Secured Parties,  substantially contemporaneously with the grant to the holders of such Specified  Secured Indebtedness, valid and perfected security interests in all of the Non-ABL  Priority Collateral of the Loan Parties that will secure Specified Secured  Indebtedness pursuant to clause (6)(B) of the definition of “Permitted Liens”  (other than any Real Estate) that triggered such Collateral Requirement (such  Specified Secured Indebtedness, the “Applicable Specified Secured  Indebtedness”) and which Non-ABL Priority Collateral is not covered by the then  existing Security Documents by entering into additional Security Documents (the  “Additional Security Documents”) that are in form and substance reasonably  acceptable to the Agent.  (ii) All such security interests shall be granted pursuant to  documentation consistent with the security documentation granted to the holders  of the Applicable Specified Secured Indebtedness and otherwise reasonably  satisfactory in form and substance to the Agent and (subject to exceptions as are  acceptable to the holders of the Applicable Specified Secured Indebtedness and  otherwise reasonably acceptable to the Agent) shall constitute, upon taking all  necessary perfection action (which the Loan Parties agree to promptly take) valid  and enforceable perfected security interests (except to the extent that the  enforceability thereof may be limited by applicable bankruptcy, insolvency,  reorganization, moratorium or other similar laws generally affecting creditors’  rights and by equitable principles (regardless of whether enforcement is sought in  equity or at law)), superior to and prior to the rights of all third Persons (other  than the holders of the Applicable Specified Secured Indebtedness) and subject to  no other Liens except for Permitted Liens.  The Additional Security Documents or  instruments related thereto shall be duly recorded or filed in such manner and in  such places as are required by law to establish, perfect, preserve and protect  

 

   157      (subject to exceptions as are acceptable to the holders of the Applicable Specified  Secured Indebtedness and otherwise reasonably acceptable to the Agent) the  Liens in favor of the Collateral Agent required to be granted pursuant to such  Additional Security Documents and all Taxes, fees and other charges payable in  connection therewith shall be paid in full.    (iii) Each Agent and each Lender agrees that, notwithstanding anything  to the contrary in this Section 7.01(q), no Loan Party shall be required to grant  any Lien on or security interest in any Non-ABL Priority Collateral, or take any  action to establish, perfect, preserve or protect any such Lien or security interest,  except and only to the extent such Lien or security interest is granted to, or such  action to establish, perfect, preserve or protect any such Lien or security interest is  required by, the holders of the Applicable Specified Secured Indebtedness or their  representative.   (iv)  At such time as the Lien on or security interest in such Non-ABL  Priority Collateral is released by the holders of the Applicable Specified Secured  Indebtedness, subject to the terms of this Section 7.01(q) with respect to any other  Specified Secured Indebtedness, the Agent shall, and it hereby authorized to,  release the Lien on and security interest in such Non-ABL Priority Collateral held  by the Agent.   (iv) Parent Borrower agrees that the requirements of this Section  7.01(q) shall be satisfied (or waived by the Agent) as soon as reasonably  practicable but in no event later than the date on which any of the foregoing  actions are required to be taken for the benefit of the holders of the Applicable  Specified Secured Indebtedness secured by such Non-ABL Priority Collateral  (subject to exceptions as are reasonably acceptable to the Agent).  SECTION 7.02  Negative Covenants.  So long as any Lender shall have any  Commitment hereunder, any Advance or other Obligation hereunder shall remain unpaid or  unsatisfied, or any Letter of Credit shall remain outstanding (other than contingent  indemnification obligations for which a claim has not been asserted), no Loan Party shall, nor  shall it permit any Restricted Subsidiary to, directly or indirectly:  (a) Indebtedness.  (i) (x) Parent Borrower shall not, and shall not permit any of the  Restricted Subsidiaries to, directly or indirectly, Incur any Indebtedness  (including Acquired Indebtedness) or issue any shares of Disqualified Capital  Stock; and (y) Parent Borrower shall not permit any of the Restricted Subsidiaries  (other than any Loan Party) to issue any shares of Preferred Stock.  (ii) The limitations set forth in Section 7.02(a)(i) shall not apply to:   (1) the Incurrence by Parent Borrower or any Restricted Subsidiary of  Indebtedness pursuant to any Loan Document;  

 

   158      (2) the Senior Notes;  (3) Indebtedness, Preferred Stock and Disqualified Capital Stock of  Parent Borrower and the Restricted Subsidiaries existing on the Restatement Date  (other than Indebtedness described in clauses (1) and (2) of this Section  7.02(a)(ii)) and, if such Indebtedness is for borrowed money and is in excess of  $100,000,000, listed on Schedule 7.02(a) hereto;   (4) Indebtedness (including Capital Lease Obligations) Incurred by  Parent Borrower or any Restricted Subsidiary, Disqualified Capital Stock issued  by Parent Borrower or any Restricted Subsidiary and Preferred Stock issued by  any Restricted Subsidiary to finance (whether prior to or within 365 days after)  the acquisition, lease, construction, repair, replacement or improvement of  property (real or personal) or equipment (whether through the direct purchase of  assets or the Capital Stock of any Person owning such assets) that, when  aggregated with the principal amount or liquidation preference of all other  Indebtedness, Disqualified Capital Stock or Preferred Stock then outstanding and  Incurred pursuant to this clause (4), together with any Refinancing Indebtedness  in respect thereof Incurred pursuant to clause (15) below, does not exceed at any  one time outstanding the greater of $250.0 million and 2.0% of Total Assets  as of  the date such Indebtedness is Incurred (plus, in the case of any Refinancing  Indebtedness, the Additional Refinancing Amount);  (5) Indebtedness Incurred by Parent Borrower or any Restricted  Subsidiary constituting reimbursement obligations with respect to letters of credit  and bank guarantees issued in the ordinary course of business, including without  limitation letters of credit in respect of workers’ compensation claims, health,  disability or other benefits to employees or former employees or their families or  property, casualty or liability insurance or self-insurance, and letters of credit in  connection with the maintenance of, or pursuant to the requirements of,  Environmental Law, or other Indebtedness with respect to reimbursement type  obligations regarding workers’ compensation claims;  (6) Indebtedness arising from agreements of Parent Borrower or any  Restricted Subsidiary providing for indemnification, adjustment of acquisition or  purchase price or similar obligations (including earn-outs), in each case, Incurred  or assumed in connection with the Transactions, any Investments or any  acquisition or disposition of any business, assets or a Subsidiary not prohibited by  this Agreement, other than guarantees of Indebtedness Incurred by any Person  acquiring all or any portion of such business, assets or Subsidiary for the purpose  of financing such acquisition;  (7) Indebtedness of Parent Borrower to a Restricted Subsidiary,  provided that (except in respect of intercompany current liabilities incurred in the  ordinary course of business in connection with the cash management, tax and  accounting operations of Parent Borrower and its Subsidiaries) any such  Indebtedness owed to a Restricted Subsidiary that is not a Loan Party is  

 

   159      subordinated in right of payment to the Obligations; provided, further, that any  subsequent issuance or transfer of any Capital Stock or any other event which  results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or  any other subsequent transfer of any such Indebtedness (except any pledge of  such Indebtedness constituting a Permitted Lien but not the transfer thereof upon  foreclosure) shall be deemed, in each case, to be an Incurrence of such  Indebtedness not permitted by this clause (7);  (8) shares of Preferred Stock of a Restricted Subsidiary issued to  Parent Borrower or another Restricted Subsidiary; provided that any subsequent  issuance or transfer of any Capital Stock or any other event which results in any  Restricted Subsidiary that holds such shares of Preferred Stock of another  Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other  subsequent transfer of any such shares of Preferred Stock (except to Parent  Borrower or another Restricted Subsidiary) shall be deemed, in each case, to be  an issuance of shares of Preferred Stock not permitted by this clause (8);  (9) Indebtedness of a Restricted Subsidiary to Parent Borrower or  another Restricted Subsidiary; provided that if a Loan Party incurs such  Indebtedness to a Restricted Subsidiary that is not a Loan Party (except in respect  of intercompany current liabilities incurred in the ordinary course of business in  connection with the cash management, tax and accounting operations of Parent  Borrower and its Subsidiaries), such Indebtedness is subordinated in right of  payment to the Obligations; provided, further, that any subsequent issuance or  transfer of any Capital Stock or any other event which results in any Restricted  Subsidiary holding such Indebtedness ceasing to be a Restricted Subsidiary or any  other subsequent transfer of any such Indebtedness (except to Parent Borrower or  another Restricted Subsidiary or any pledge of such Indebtedness constituting a  Permitted Lien but not the transfer thereof upon foreclosure) shall be deemed, in  each case, to be an Incurrence of such Indebtedness not permitted by this clause  (9);  (10) Hedging Obligations that are not incurred for speculative purposes  but (A) for the purpose of fixing or hedging interest rate risk with respect to any  Indebtedness that is permitted by the terms of this Agreement to be outstanding;  (B) for the purpose of fixing or hedging currency exchange rate risk with respect  to any currency exchanges; or (C) for the purpose of fixing or hedging commodity  price risk with respect to any commodity purchases or sales and, in each case,  extensions or replacements thereof;  (11) obligations (including reimbursement obligations with respect to  letters of credit, bank guarantees, warehouse receipts and similar instruments) in  respect of performance, bid, appeal and surety bonds, completion guarantees and  similar obligations provided by Parent Borrower or any Restricted Subsidiary in  the ordinary course of business or consistent with past practice or industry  practice;  

 

   160      (12) Indebtedness or Disqualified Capital Stock of Parent Borrower or  Indebtedness, Disqualified Capital Stock or Preferred Stock of any Restricted  Subsidiary in an aggregate principal amount or liquidation preference, which  when aggregated with the principal amount and liquidation preference of all other  Indebtedness, Disqualified Capital Stock and Preferred Stock then outstanding  and Incurred pursuant to this clause (12), together with any Refinancing  Indebtedness in respect thereof incurred pursuant to clause (15) below, does not  exceed at any one time outstanding the greater of $1,000,000,000 and 45% of  Consolidated EBITDA as of the date such Indebtedness is incurred (plus, in the  case of any Refinancing Indebtedness, the Additional Refinancing Amount);   (13) [Reserved];  (14) any guarantee by Parent Borrower or any Restricted Subsidiary of  Indebtedness or other obligations of Parent Borrower or any Restricted Subsidiary  so long as the Incurrence of such Indebtedness Incurred by Parent Borrower or  such Restricted Subsidiary is permitted under the terms of this Agreement;  provided that (A) if such Indebtedness is by its express terms subordinated in  right of payment to the Obligations by such Restricted Subsidiary, as applicable,  any such guarantee with respect to such Indebtedness shall be subordinated in  right of payment to the Obligations, substantially to the same extent as such  Indebtedness is subordinated to the Obligations, (B) if such guarantee is of  Indebtedness of Parent Borrower, such guarantee is Incurred in accordance with,  or not in contravention of, Section 7.01(n) solely to the extent Section 7.01(n) is  applicable and (C) the aggregate principal amount of Indebtedness or other  obligations of a Subsidiary that is not a Loan Party guaranteed by a Loan Party in  reliance on this clause (14) shall not exceed the greater of $100.0 million and  6.25% of Consolidated EBITDA, at any time outstanding;    (15) the Incurrence by Parent Borrower or any of the Restricted  Subsidiaries of Indebtedness or Disqualified Capital Stock, or by any Restricted  Subsidiary of Preferred Stock of a Restricted Subsidiary, that serves to refund,  refinance or defease any Indebtedness Incurred or Disqualified Capital Stock or  Preferred Stock issued as permitted under clauses (2), (3), (4) (12), (15) and (24)  of this Section 7.02(a)(ii) up to the outstanding principal amount (or, if applicable,  the liquidation preference, face amount, or the like) or, if greater, committed  amount (only to the extent the committed amount could have been Incurred on the  date of initial Incurrence and was deemed Incurred at such time for the purposes  of this Section 7.02(b)) of such Indebtedness or Disqualified Capital Stock or  Preferred Stock, in each case at the time such Indebtedness was Incurred or  Disqualified Capital Stock or Preferred Stock was issued pursuant to clauses (2),  (3), (4), (12), (15) and (24) of this Section 7.02(a)(ii), or any Indebtedness,  Disqualified Capital Stock or Preferred Stock Incurred to so refund or refinance  such Indebtedness, Disqualified Capital Stock or Preferred Stock, plus any  additional Indebtedness, Disqualified Capital Stock or Preferred Stock Incurred to  pay premiums (including tender premiums), accrued and unpaid interest,  expenses, defeasance costs and fees in connection therewith (subject to the  

 

   161      following proviso, “Refinancing Indebtedness”) prior to its respective maturity;  provided, however, that such Refinancing Indebtedness:  (A) has a Weighted Average Life to Maturity at the time  such Refinancing Indebtedness is Incurred which is not less than the  shorter of (x) the remaining Weighted Average Life to Maturity of the  Indebtedness, Disqualified Capital Stock or Preferred Stock being  refunded, refinanced or defeased and (y) the Weighted Average Life to  Maturity that would result if all payments of principal on the Indebtedness,  Disqualified Capital Stock and Preferred Stock being refunded or  refinanced that were due on or after the date that is one year following the  Termination Date were instead due on such date;   (B) to the extent such Refinancing Indebtedness  refinances (a) Indebtedness junior in right of payment to the Obligations,  such Refinancing Indebtedness is junior in right of payment to the  Obligations, (b) Disqualified Capital Stock or Preferred Stock, such  Refinancing Indebtedness is Disqualified Capital Stock or Preferred Stock,  and (c) Indebtedness secured by a Lien on the Collateral that is pari passu  or junior to the Lien on the Collateral securing the Obligations, such  Refinancing Indebtedness is secured by a Lien on the Collateral that is  pari passu with or junior to the Lien on the Collateral securing the  Obligations to the same extent as such Indebtedness, and a Senior  Representative of such Refinancing Indebtedness acting on behalf of the  holders of such Indebtedness shall have become party to or otherwise  subject to the provisions of an ABL Intercreditor Agreement and/or a  junior lien intercreditor agreement or collateral trust agreement reasonably  satisfactory to the Agent; and  (C) shall not include (x) Indebtedness of a Restricted  Subsidiary that is not a Loan Party that refinances Indebtedness of Parent  Borrower or another Loan Party, or (y) Indebtedness of Parent Borrower  or a Restricted Subsidiary that refinances Indebtedness of an Unrestricted  Subsidiary;   (16) [Reserved];   (17) Indebtedness of Parent Borrower that is equity-linked and not  guaranteed by any Subsidiary of Parent Borrower in an amount not to exceed  $250.0 million at any time outstanding;   (18) Indebtedness arising from the honoring by a bank or other financial  institution of a check, draft or similar instrument drawn against insufficient funds  in the ordinary course of business; provided that such Indebtedness is  extinguished within five Business Days of its Incurrence;  

 

   162      (19) Indebtedness of Parent Borrower or any Restricted Subsidiary  supported by a Letter of Credit, in a principal amount not in excess of the stated  amount of such Letter of Credit;  (20) [Reserved];  (21) Indebtedness of Parent Borrower or any Restricted Subsidiary  consisting of (A) the financing of insurance premiums or (B) take-or-pay  obligations contained in supply arrangements, in each case, in the ordinary course  of business;  (22) Indebtedness consisting of Indebtedness of Parent Borrower or a  Restricted Subsidiary to current or former officers, directors and employees  thereof or any direct or indirect parent thereof, their respective estates, spouses or  former spouses, in each case to finance the purchase or redemption of Equity  Interests of Parent Borrower or any direct or indirect parent of Parent Borrower to  the extent described in Section 7.02(b)(ii)(4);   (23) Indebtedness in respect of Obligations of Parent Borrower or any  Restricted Subsidiary to pay the deferred purchase price of goods or services or  progress payments in connection with such goods and services; provided that such  obligations are incurred in connection with open accounts extended by suppliers  on customary trade terms in the ordinary course of business and not in connection  with the borrowing of money or any Hedging Obligations;   (24) [Reserved];  (25) [Reserved];  (26) [Reserved];  (27) [Reserved];  (28) [Reserved];  (29) unsecured or Junior Lien Priority Indebtedness which is incurred  by Parent Borrower or another Loan Party in connection with the replacement or  reduction or other modification of any obligations owing by Parent Borrower or  its Subsidiaries under any leases; provided that such Indebtedness matures at least  91 days after the Termination Date; and  (30) other Indebtedness so long as (i) the Incurrence Fixed Charge  Coverage Ratio of Parent Borrower for the most recently ended Test Period  immediately preceding the date on which such additional Indebtedness is incurred  would have been at least 2.00 to 1.00 determined on a pro forma basis and (ii) any  Liens securing such Indebtedness are otherwise permitted pursuant to clause  (6)(B) or (D) of the definition of Permitted Liens; provided that such Indebtedness  matures at least 91 days after the Termination Date.  

 

   163      (iii) For purposes of determining compliance with this Section 7.02(a)  at the time of incurrence, the Parent Borrower will be entitled to divide and  classify an item of Indebtedness in more than one of the categories of  Indebtedness described (1) through (29) of Section 7.02(a)(ii) (or any portion  thereof) without giving pro forma effect to the Indebtedness Incurred pursuant to  any other clause or paragraph of Section 7.02(a)(ii) (or any portion thereof) when  calculating the amount of Indebtedness that may be Incurred pursuant to any such  clause or paragraph (or any portion thereof).   Accrual of interest, the accretion of accreted value, the payment of interest or  dividends in the form of additional Indebtedness, Disqualified Capital Stock or Preferred Stock,  as applicable, amortization of original issue discount, the accretion of liquidation preference and  increases in the amount of Indebtedness outstanding solely as a result of fluctuations in the  exchange rate of currencies will not be deemed to be an Incurrence of Indebtedness, Disqualified  Capital Stock or Preferred Stock for purposes of this Section 7.02(a).  In addition, Guaranties of,  or obligations in respect of letters of credit relating to, Indebtedness which is otherwise included  in the determination of a particular amount of Indebtedness shall not be included in the  determination of such amount of Indebtedness; provided that the Incurrence of the Indebtedness  represented by such guarantee or letter of credit, as the case may be, was in compliance with this  Section 7.02(a).  For purposes of determining compliance with any Dollar-denominated restriction  on the Incurrence of Indebtedness, the Dollar-equivalent principal amount of Indebtedness  denominated in a foreign currency shall be calculated based on the relevant currency exchange  rate in effect on the date such Indebtedness was Incurred, in the case of term debt, or first  committed or first Incurred (whichever yields the lower Dollar equivalent), in the case of  revolving credit debt.  However, if the Indebtedness is Incurred to refinance other Indebtedness  denominated in a foreign currency, and the refinancing would cause the applicable Dollar- denominated restriction to be exceeded if calculated at the relevant currency exchange rate in  effect on the date of the refinancing, the Dollar-denominated restriction will be deemed not to  have been exceeded so long as the principal amount of the refinancing Indebtedness does not  exceed the principal amount of the Indebtedness being refinanced.  Notwithstanding any other provision of this Section 7.02(a), the maximum  amount of Indebtedness that Parent Borrower and the Restricted Subsidiaries may Incur pursuant  to this Section 7.02(a) shall not be deemed to be exceeded, with respect to any outstanding  Indebtedness, solely as a result of fluctuations in the exchange rate of currencies.  The principal  amount of any Indebtedness Incurred to refinance other Indebtedness, if Incurred in a different  currency from the Indebtedness being refinanced, will be calculated based on the currency  exchange rate applicable to the currencies in which the respective Indebtedness is denominated  that is in effect on the date of the refinancing.  (b) Limitation on Restricted Payments.  (i) Parent Borrower shall not, and shall not permit any of the  Restricted Subsidiaries to, directly or indirectly:  

 

   164      (1) declare or pay any dividend or make any distribution on account of  any of Parent Borrower’s or any of the Restricted Subsidiaries’ Equity Interests,  including any payment made in connection with any merger, amalgamation or  consolidation involving Parent Borrower (other than (A) dividends or  distributions payable solely in Equity Interests (other than Disqualified Capital  Stock) of Parent Borrower or (B) dividends or distributions by a Restricted  Subsidiary so long as, in the case of any dividend or distribution payable on or in  respect of any class or series of securities issued by a Restricted Subsidiary that is  not a Wholly Owned Restricted Subsidiary, Parent Borrower or a Restricted  Subsidiary receives at least its pro rata share of such dividend or distribution in  accordance with its Equity Interests in such class or series of securities);  (2) purchase or otherwise acquire or retire for value any Equity  Interests of Parent Borrower or any direct or indirect parent of Parent Borrower;  (3) make any principal payment on, or redeem, repurchase, defease or  otherwise acquire or retire for value, in each case prior to any scheduled  repayment or scheduled maturity, any Junior Indebtedness of Parent Borrower or  any other Loan Party (other than the payment, redemption, repurchase,  defeasance, acquisition or retirement of (A) Junior Indebtedness in anticipation of  satisfying a sinking fund obligation or principal installment and (B) Indebtedness  permitted under clauses (7) and (9) of Section 7.02(a)(ii)); or  (4) make any Restricted Investment.   (all such payments and other actions set forth in subclauses (1) through (4) above  being collectively referred to as “Restricted Payments”).  (ii) The provisions of Section 7.02(b)(i) shall not prohibit:  (1) the payment of any dividend or distribution or the consummation  of any irrevocable redemption within 60 days after the date of declaration thereof,  if at the date of declaration or the giving of notice of such irrevocable redemption,  as applicable, such payment would have complied with the provisions of this  Agreement; provided that if such dividend, distribution or redemption is being  made pursuant to Section 7.02(b)(ii)(18), a Reserve shall be established by Agent  in an amount equal to the Restricted Payment so declared;  (2) the redemption, repurchase, retirement or other acquisition of any  Equity Interests (“Retired Capital Stock”) or Junior Indebtedness of Parent  Borrower, any direct or indirect parent of Parent Borrower or any Loan Party in  exchange for, or out of the proceeds of, the substantially concurrent sale of,  Equity Interests of Parent Borrower or any direct or indirect parent of Parent  Borrower or contributions to the equity capital of Parent Borrower (other than any  Disqualified Capital Stock or any Equity Interests sold to a Subsidiary of  Parent  Borrower) (collectively, including any such contributions, “Refunding Capital  Stock”) subject to satisfaction of the following:  

 

   165      (A) the declaration and payment of dividends on the  Retired Capital Stock out of the proceeds of the substantially  concurrent sale (other than to a Subsidiary of Parent Borrower) of  Refunding Capital Stock; and   (B) if immediately prior to the retirement of Retired  Capital Stock, the declaration and payment of dividends thereon  was permitted under clause (6) of this Section 7.02(b)(ii) and not  made pursuant to this clause (2)(B), the declaration and payment of  dividends on the Refunding Capital Stock (other than Refunding  Capital Stock the proceeds of which were used to redeem,  repurchase, retire or otherwise acquire any Equity Interests of any  direct or indirect parent of Parent Borrower) in an aggregate  amount per year no greater than the aggregate amount of dividends  per annum that were declarable and payable on such Retired  Capital Stock immediately prior to such retirement;  (3) the redemption, repurchase, defeasance, or other acquisition or  retirement of Junior Indebtedness of Parent Borrower or any Loan Party made by  exchange for, or out of the proceeds of the substantially concurrent sale of, new  Indebtedness of Parent Borrower or a Loan Party, which is Incurred in accordance  with Section 7.02(a) so long as:  (A) the principal amount (or accreted value, if applicable) of such  new Indebtedness does not exceed the principal amount (or  accreted value, if applicable), plus any accrued and unpaid  interest, of the Junior Indebtedness being so redeemed,  repurchased, defeased, acquired or retired for value (plus the  amount of any premium required to be paid under the terms of  the instrument governing the Junior Indebtedness being so  redeemed, repurchased, acquired or retired, plus any tender  premiums, plus any defeasance costs, fees and expenses  incurred in connection therewith);  (B) such Indebtedness is subordinated as to right of payment and  lien priority to the Obligations or the related Guarantee of such  Loan Party, as the case may be, at least to the same extent as  such Junior Indebtedness so purchased, exchanged, redeemed,  repurchased, defeased, acquired or retired for value (it being  understood that if the Junior Indebtedness so purchased,  exchanged, redeemed, repurchased, defeased, acquired or  retired for value is unsecured, such Indebtedness shall be  unsecured);  (C) such Indebtedness has a final scheduled maturity date equal to  or later than the earlier of (x) the final scheduled maturity date  of the Junior Indebtedness being so redeemed, repurchased,  

 

   166      acquired or retired and (y) 91 days following the Termination  Date; and  (D) such Indebtedness has a Weighted Average Life to Maturity at  the time Incurred which is not less than the shorter of (x) the  remaining Weighted Average Life to Maturity of the Junior  Indebtedness being so redeemed, repurchased, defeased,  acquired or retired and (y) the Weighted Average Life to  Maturity that would result if all payments of principal on the  Junior Indebtedness being redeemed, repurchased, defeased,  acquired or retired that were due on or after the date that is one  year following the Termination Date;   (4) so long as no Cash Dominion Period is continuing immediately  before or after the making of such Restricted Payment, a Restricted Payment to  pay for the repurchase, retirement or other acquisition for value of Equity  Interests of Parent Borrower or any direct or indirect parent of Parent Borrower  held by any future, present or former employee, director, officer or consultant of  Parent Borrower or any Subsidiary of Parent Borrower or any direct or indirect  parent of Parent Borrower pursuant to any management equity plan or stock  option plan or any other management or employee benefit plan or other agreement  or arrangement; provided, however, that the aggregate Restricted Payments made  under this clause (4) do not exceed $25.0 million in any calendar year, with  unused amounts in any calendar year being permitted to be carried over to the  next succeeding calendar year; provided, further, however, that such amount in  any calendar year may be increased by an amount not to exceed:  (A) the cash proceeds received by Parent Borrower or any of the Restricted  Subsidiaries from the sale of Equity Interests (other than Disqualified  Capital Stock) of Parent Borrower or any direct or indirect parent of  Parent Borrower (to the extent contributed to Parent Borrower) to  employees, directors, officers or consultants of Parent Borrower and  the Restricted Subsidiaries or any direct or indirect parent of Parent  Borrower that occurs after the Restatement Date (provided that the  amount of such cash proceeds utilized for any such repurchase,  retirement, other acquisition or dividend will not increase the amount  available for Restricted Payments under Section 7.02(b)(ii)(8)); plus  (B) the cash proceeds of key man life insurance policies received by  Parent Borrower or any direct or indirect parent of Parent Borrower (to  the extent contributed to Parent Borrower) or the Restricted  Subsidiaries after the Restatement Date;   (5) the declaration and payment of dividends or distributions to  holders of any class or series of Disqualified Capital Stock of Parent Borrower or  any Restricted Subsidiary issued or incurred in accordance with Section 7.02(a);   

 

   167      (6) the declaration and payment of dividends or distributions to  holders of any class or series of Designated Preferred Stock (other than  Disqualified Capital Stock) issued after the Restatement Date;  (7) [Reserved];  (8) so long as no Cash Dominion Period is continuing immediately  before or after the making of such Restricted Payment, Restricted Payments that  are made with (or in an aggregate amount that does not exceed the aggregate  amount of) Excluded Contributions that are received concurrently therewith;    (9) other Restricted Payments that, when taken together with all other  Restricted Payments made pursuant to this clause (9) since the Restatement Date,  would not exceed $150.0 million; provided, that no Cash Dominion Period exists  after giving pro forma effect to such Restricted Payment;   (10) the distribution, as a dividend or otherwise, of shares of Capital  Stock of, or Indebtedness owed to Parent Borrower or a Restricted Subsidiary by,  Unrestricted Subsidiaries;  (11) with respect to any taxable period for which Parent Borrower  and/or any of its Subsidiaries are members of a consolidated, combined, affiliated,  unitary or similar income tax group for U.S. federal and/or applicable state or  local income tax purposes of which a direct or indirect parent of Parent Borrower  is the common parent (a “Tax Group”), distributions (“Tax Distributions”) to any  direct or indirect parent of Parent Borrower to pay the portion of any such taxes of  such Tax Group attributable to the income of Parent Borrower and/or its  applicable Subsidiaries in an amount not to exceed the amount of such U.S.  federal, state and/or local income taxes (as applicable) that Parent Borrower  and/or its applicable Subsidiaries would have paid for such taxable period had  Parent Borrower and/or its applicable Subsidiaries been a stand-alone corporate  taxpayer or a stand-alone corporate group with respect to such taxes for all  applicable taxable periods ending after the date hereof; provided that distributions  attributable to the income of any Unrestricted Subsidiary shall be permitted only  to the extent that such Unrestricted Subsidiary made distributions to Parent  Borrower or any Restricted Subsidiary for such purpose;  (12) any Restricted Payment, if applicable:  (A) in amounts required for any direct or indirect parent of Parent  Borrower to pay fees and expenses (including franchise or  similar Taxes) required to maintain its corporate existence,  customary salary, bonus and other benefits payable to, and  indemnities provided on behalf of, officers and employees of  any direct or indirect parent of Parent Borrower and general  corporate operating and overhead expenses of any direct or  indirect parent of Parent Borrower, in each case, to the extent  

 

   168      such fees and expenses are attributable to the ownership or  operation of Borrower, if applicable, and its Subsidiaries; and  (B) in amounts required for any direct or indirect parent of Parent  Borrower to pay fees and expenses related to any equity or debt  offering of such parent (whether or not successful);  (13) repurchases of Equity Interests that occur or are deemed to occur  upon exercise of stock options or warrants if such Equity Interests represent a  portion of the exercise price of such options or warrants;  (14) [Reserved];  (15) Restricted Payments by Parent Borrower or any Restricted  Subsidiary to allow the payment of cash in lieu of the issuance of fractional shares  upon the exercise of options or warrants or upon the conversion or exchange of  Capital Stock of any such Person;  (16) [Reserved];  (17) payments or distributions to dissenting stockholders pursuant to  applicable Law, pursuant to or in connection with a consolidation, amalgamation,  merger or transfer of all or substantially all of the assets of Parent Borrower and  the Restricted Subsidiaries, taken as a whole, that complies with Section 7.02(h);  provided that if such consolidation, amalgamation, merger or transfer of assets  constitutes a Change of Control, all Obligations shall have been repaid in full (or  the Event of Default specified in Section 8.01(g) shall have been waived); and  (18) any Loan Party or their Restricted Subsidiaries may make  Restricted Payments so long as Borrowers are in Pro Forma Compliance with the  Payment Conditions;   provided, however, that at the time of, and after giving effect to, any Restricted  Payment permitted under clauses (8), (9) and (10) of this Section 7.02(b)(ii), no Default shall  have occurred and be continuing or would occur as a consequence thereof (provided, however,  that Borrower may make regularly-scheduled dividend payments on its existing Preferred Stock  in accordance with the terms thereof pursuant to Section 7.02(b)(ii)(6), regardless of whether any  Default has occurred or is continuing or would occur as a consequence thereof); provided,  further, that any Restricted Payments made with property other than cash shall be calculated  using the Fair Market Value (as determined in good faith by Parent Borrower) of such property.  (iii) As of the Restatement  Date, all of the Subsidiaries of Parent  Borrower will be Restricted Subsidiaries.  For purposes of designating any  Restricted Subsidiary as an Unrestricted Subsidiary, all outstanding Investments  by Parent Borrower and the Restricted Subsidiaries (except to the extent repaid) in  the Subsidiary so designated will be deemed to be Restricted Payments in an  amount determined as set forth in the last sentence of the definition of  “Investments.”  Such designation will only be permitted if a Restricted Payment  

 

   169      or Permitted Investment in such amount would be permitted at such time and if  such Subsidiary otherwise meets the definition of an Unrestricted Subsidiary.   (iv) Notwithstanding anything else set forth in this Section 7.02(b) or  the definition of “Permitted Investments” to the contrary, no Restricted Payment  or Investment (other than an Investment in Parent Borrower or another Loan  Party) of material intellectual property owned by Parent Borrower or another  Loan Party shall be permitted under this Agreement.     (c) Limitations on Restrictions Affecting Subsidiaries.  No Loan Party shall,  or shall permit any of its Restricted Subsidiaries to, directly or indirectly, create or  otherwise cause or suffer to exist any consensual encumbrance or consensual restriction  which prohibits or limits the ability of any Loan Party or Restricted Subsidiary to:  (i) pay dividends or make any other distributions to Parent Borrower  or any Restricted Subsidiary (1) on its Capital Stock; or (2) with respect to any  other interest or participation in, or measured by, its profits; or  (ii) make loans or advances to Parent Borrower or any Restricted  Subsidiary that is a direct or indirect parent of such Restricted Subsidiary;  except in each case for such encumbrances or restrictions existing under or by  reason of:  (1) (A) contractual encumbrances or restrictions in effect on the  Restatement Date and (B) contractual encumbrances or restrictions pursuant to  this Agreement, the other Loan Documents, and, in each case, similar contractual  encumbrances effected by any amendments, modifications, restatements,  renewals, supplements, refundings, replacements or refinancings of such  agreements or instruments;  (2) (A) the Senior Notes Indenture, the 2029 Notes, the 2031 Notes or  the guarantees thereunder, or (B) any ABL Intercreditor Agreement;  (3)  applicable Law or any applicable rule, regulation or order;  (4) any agreement or other instrument of a Person acquired by Parent  Borrower or any Restricted Subsidiary which was in existence at the time of such  acquisition (but not created in contemplation thereof or to provide all or any  portion of the funds or credit support utilized to consummate such acquisition),  which encumbrance or restriction is not applicable to any Person, or the properties  or assets of any Person, other than the Person and its Subsidiaries, or the property  or assets of the Person and its Subsidiaries, so acquired;  (5) contracts or agreements for the sale of assets, including any  restriction with respect to a Restricted Subsidiary imposed pursuant to an  agreement entered into for the sale or disposition of the Capital Stock or assets of  such Restricted Subsidiary;  

 

   170      (6) Secured Indebtedness otherwise permitted to be Incurred pursuant  to Section 7.02(a) and Section 7.02(g) that limits the right of the debtor to dispose  of the assets securing such Indebtedness;  (7) restrictions on cash or other deposits or net worth imposed by  customers under contracts entered into in the ordinary course of business;  (8) customary provisions in joint venture agreements and other similar  agreements entered into in the ordinary course of business;  (9) purchase money obligations for property acquired and Capital  Lease Obligations in the ordinary course of business;  (10) customary provisions contained in leases, licenses and other  similar agreements entered into in the ordinary course of business;  (11) any encumbrance or restriction that restricts in a customary manner  the subletting, assignment or transfer of any property or asset that is subject to a  lease, license or similar contract, or the assignment or transfer of any such lease,  license (including without limitation, licenses of intellectual property) or other  contracts;  (12) other Indebtedness, Disqualified Capital Stock or Preferred Stock  (A) of Parent Borrower or any Restricted Subsidiary that is a Loan Party or a  Foreign Subsidiary or (B) of any Restricted Subsidiary that is not a Loan Party or  a Foreign Subsidiary so long as such encumbrances and restrictions contained in  any agreement or instrument will not materially affect Parent Borrower’s or any  Loan Party’s ability to make anticipated principal or interest payments on the  Loans (as determined in good faith by Parent Borrower), provided that in the case  of each of clauses (A) and (B), such Indebtedness, Disqualified Capital Stock or  Preferred Stock is permitted to be Incurred subsequent to the Restatement Date  pursuant to Section 7.02(a);  (13) any Restricted Investment not prohibited by Section 7.02(b) and  any Permitted Investment; or  (14) any encumbrances or restrictions of the type referred to in Section  7.02(c)(i) or (ii) above imposed by any amendments, modifications, restatements,  renewals, increases, supplements, refundings, replacements or refinancings of the  contracts, instruments or obligations referred to in clauses (1) through (14) above;  provided that such amendments, modifications, restatements, renewals, increases,  supplements, refundings, replacements or refinancings are, in the good faith  judgment of Parent Borrower, no more restrictive with respect to such dividend  and other payment restrictions than those contained in the dividend or other  payment restrictions prior to such amendment, modification, restatement, renewal,  increase, supplement, refunding, replacement or refinancing.  

 

   171      For purposes of determining compliance with this Section 7.02(c), (i) the priority of any  Preferred Stock in receiving dividends or liquidating distributions prior to dividends or  liquidating distributions being paid on common stock shall not be deemed a restriction on the  ability to make distributions on Capital Stock and (ii) the subordination of loans or advances  made to Parent Borrower or a Restricted Subsidiary to other Indebtedness Incurred by Parent  Borrower or any such Restricted Subsidiary shall not be deemed a restriction on the ability to  make loans or advances.   (d) Sale of Capital Stock and Assets. Except as set forth herein, no Loan Party  shall, or shall permit any of its Restricted Subsidiaries to, sell, transfer, convey, assign or  otherwise Dispose of any of its properties or other assets, including the Capital Stock of  any of its Subsidiaries (whether in a public or a private offering or otherwise), other than:  (i) the Disposition (including the abandonment of any Copyright,  Patent, Trademark or other intellectual property or surrender or transfer for no  consideration) of obsolete, no longer used or useful, surplus, uneconomic,  negligible or worn out property in the ordinary course of business or otherwise as  may be required pursuant to the terms of any lease, sublease, license or  sublicense;  (ii) the sale of inventory or other assets in the ordinary course of  business;  (iii) Dispositions permitted by Sections 7.02(b), 7.02(g) and 7.02(h);  (iv) (1) the sale or issuance of any Subsidiary’s Capital Stock to Parent  Borrower or any Restricted Subsidiary and (2) the sale or issuance of Capital  Stock of Parent Borrower to any employee (and, where required by law, to any  officer or director) under any employment or compensation plans or to qualify  such officers and directors;  (v) the sale of assets that do not constitute Borrowing Base assets  subsequent to the Restatement Date, so long as (1) no Default or Event of Default  then exists or would result therefrom, (2) each such sale or other disposition is in  an arm’s-length transaction and the respective Borrower or Subsidiary receives at  least fair market value, and (3) the consideration received by such Borrower or  such Subsidiary consists of at least 75% cash and is paid at the time of the closing  of such sale; provided, however, that the following shall be deemed to be cash in  respect of assets that are not ABL Priority Collateral: (A) the assumption by the  transferee of Indebtedness or other liabilities contingent or otherwise of Parent  Borrower or any of its Restricted Subsidiaries (other than Junior Indebtedness)  and the valid release of Parent Borrower or such Restricted Subsidiary, by all  applicable creditors in writing, from all liability on such Indebtedness or other  liability in connection with such Disposition, (B) Indebtedness (other than Junior  Indebtedness) of any Restricted Subsidiary that is no longer a Restricted  Subsidiary as a result of such Disposition, to the extent that Parent Borrower and  each other Restricted Subsidiary are released from any guarantee of payment of  

 

   172      such Indebtedness in connection with such Disposition and (C) any Designated  Non-cash Consideration received by Parent Borrower or any Restricted  Subsidiary in such asset sale having an aggregate Fair Market Value (as  determined in good faith by Parent Borrower), taken together with all other  Designated Non-cash Consideration received pursuant to this Section 7.02(d)(v)  that is at that time outstanding, not to exceed the greater of $50.0 million and  3.125% of Consolidated EBITDA at the time of the receipt of such Designated  Non-cash Consideration (with the Fair Market Value of each item of Designated  Non-cash Consideration being measured at the time received and without giving  effect to subsequent changes in value);  (vi) subject to compliance with Payment Conditions, the sale of assets  that constitute Borrowing Base assets subsequent to the Restatement Date, so long  as (1) each such sale or other disposition is in an arm’s-length transaction and the  respective Borrower or Subsidiary receives at least fair market value, and (2) the  consideration received by Parent Borrower and its Subsidiaries in connection with  such sale consists of at least 75% cash and is paid at the time of the closing of  such sale;   (vii) Dispositions of cash and Cash Equivalents;  (viii) Dispositions of Accounts in connection with compromise, write  down or collection thereof in the ordinary course of business and consistent with  past practice;  (ix) leases, subleases, licenses or sublicenses of property which do not  materially interfere with the business of Borrowers and their Restricted  Subsidiaries;  (x) Dispositions of Capital Stock to directors where required by  applicable Law or to satisfy other requirements of applicable Law with respect to  the ownership of Capital Stock of Foreign Subsidiaries;   (xi) Dispositions of the Capital Stock of any Joint Venture to the extent  required by the terms of customary buy/sell type arrangements entered into in  connection with the formation of such Joint Venture;   (xii) transfer or disposition of property subject to or as a result of a  casualty or condemnation (or agreement in lieu of condemnation) (1) upon receipt  of net cash proceeds of such casualty or (2) to a Governmental Authority as a  result of condemnation (or agreement in lieu of condemnation);  (xiii) bulk sales or other Dispositions of Inventory of a Loan Party not in  the ordinary course of business in connection with Store closings, at arm’s length;  provided, that (1) all sales of Inventory in connection with Store closings pursuant  to this clause (xiii) shall be in accordance with liquidation agreements and with  professional liquidators reasonably acceptable to the Agent and (2) Parent  Borrower shall have delivered an updated Borrowing Base Certificate in  

 

   173      connection with any Disposition pursuant to this clause (xiii) involving greater  than $25.0 million of Inventory included in the Borrowing Base;  (xiv) (1) any Loan Party may Dispose of its property to another Loan  Party, (2) any Restricted Subsidiary that is not a Loan Party may Dispose of its  property to another Restricted Subsidiary that is not a Loan Party and (3) asset  Dispositions among Loan Parties and their Restricted Subsidiaries in the ordinary  course of business;  (xv) Dispositions of any property to the extent that (1) (x) such property  is exchanged for credit against the purchase price of similar replacement property  or (y) such Disposition represents an exchange of assets (including a combination  of Cash Equivalents and assets) for assets related to a Similar Business of  comparable or greater market value or usefulness to the business of Parent  Borrower and the Restricted Subsidiaries as a whole, as determined in good faith  by Parent Borrower or (z) such Disposition represents a swap of assets or lease,  assignment or sublease of any real or personal property in exchange for services  (including in connection with any outsourcing arrangements) of comparable or  greater value or usefulness to the business of Parent Borrower and its Restricted  Subsidiaries as a whole, as determined in good faith by Parent Borrower, or (2)  the proceeds of such Disposition are reasonably promptly applied to the purchase  price of such replacement property;  (xvi) Dispositions of assets which constitute Investments permitted  under Section 7.02(b);   (xvii) Dispositions of property (other than ABL Priority Collateral) in  connection with (i) Sale/Leaseback Transactions for fair value (as determined at  the time of the consummation thereof in good faith by the applicable Loan Party  or Restricted Subsidiary) so long as (x) 75% of the consideration received by such  Loan Party or Restricted Subsidiary from such Sale/Leaseback Transaction is in  the form of cash and (ii) any Sale/Leaseback Transactions between Excluded  Subsidiaries;   (xviii) [Reserved];  (xix) Dispositions of assets or issuances of Parent Borrower or any  Restricted Subsidiary or sale of Capital Stock of Parent Borrower or any  Restricted Subsidiary which assets or Capital Stock so Disposed or issued, in any  single transaction or related series of transactions, have a fair market value (as  determined in good faith by Parent Borrower) of less than $10,000,000;  (xx) foreclosure or any similar action with respect to any property or  other asset of Parent Borrower or any of its Subsidiaries;  (xxi) any Disposition of Capital Stock in, or Indebtedness or other  securities of, an Unrestricted Subsidiary;  

 

   174      (xxii) any Disposition of Capital Stock of a Restricted Subsidiary  pursuant to an agreement or other obligation with or to a Person (other than Parent  Borrower or a Restricted Subsidiary) from whom such Restricted Subsidiary was  acquired or from whom such Restricted Subsidiary acquired its business and  assets (having been newly formed in connection with such acquisition), in each  case following the Restatement Date, made as part of such acquisition and in each  case comprising all or a portion of the consideration in respect of such sale or  acquisition;  (xxiii) Dispositions of receivables in connection with the compromise,  settlement or collection thereof in the ordinary course of business or in  bankruptcy or similar proceedings and exclusive of factoring or similar  arrangements;  (xxiv) any surrender, expiration or waiver of contract rights or the  settlement, release, recovery on or surrender of contract, tort or other claims of  any kind;   (xxv) Dispositions of real property for the purpose of (x) resolving minor  title disputes or defects, including encroachments and lot line adjustments or, or  (y) granting easements, rights of way or access and egress agreements, or (z) to  any Governmental Authority in consideration of the grant, issuance, consent or  approval of or to any development agreement, change of zoning or zoning  variance, permit or authorization in connection with the conduct of any Loan  Party’s business, in each case which does not materially interfere with the  business conducted on such real property;   (xxvi)  [Reserved]; and  (xxvii) (1) any transfer of accounts receivable and related assets in  connection with any factoring or similar arrangements entered into by Foreign  Subsidiaries (other than any Foreign Subsidiary organized in Canada or any  province or territory thereof) on arms’ length terms or (2) any transfer of Branded  Credit Card Assets in connection with any Branded Credit Card Arrangement;   provided, that any Disposition of Trademarks of the Loan Parties, which  Trademarks are necessary or useful in connection with the exercise of any rights or remedies  with respect to the ABL Priority Collateral, pursuant to any of the foregoing clauses to any  Person that is not a Loan Party shall be made expressly subject to a non-exclusive, irrevocable  (until the Obligations have been paid in full) royalty-free license in favor of the Agent to use  such Trademarks in connection with the exercise of any such rights or remedies.   (e) Affiliate Transactions.  (i) Parent Borrower shall not, and shall not permit any of the  Restricted Subsidiaries to, directly or indirectly, make any payment to, or sell,  lease, transfer or otherwise dispose of any of its properties or assets to, or  purchase any property or assets from, or enter into or make or amend any  

 

   175      transaction or series of transactions, contract, agreement, understanding, loan,  advance or guarantee with, or for the benefit of, any Affiliate of Parent Borrower  (each of the foregoing, an “Affiliate Transaction”) involving aggregate  consideration in excess of $50.0 million, unless:  (1) such Affiliate Transaction is on terms that are not materially less  favorable to Parent Borrower or the relevant Restricted Subsidiary than those that  could have been obtained in a comparable transaction by Parent Borrower or such  Restricted Subsidiary with an unrelated Person; and  (2) Parent Borrower delivers to Agent a resolution adopted in good  faith by the majority of the Board of Directors of Parent Borrower, approving  such Affiliate Transaction and set forth in an Officer’s Certificate certifying that  such Affiliate Transaction complies with clause (1) above.  (ii) The provisions of Section 7.02(e)(i) shall not apply to the  following:  (1) transactions between or among Parent Borrower and/or any of the  Restricted Subsidiaries (or an entity that becomes a Restricted Subsidiary as a  result of such transaction) and any merger, consolidation or amalgamation of  Parent Borrower and any direct parent of Parent Borrower; provided that such  parent shall have no material liabilities and no material assets other than cash,  Cash Equivalents and the Capital Stock of Parent Borrower and such merger,  consolidation or amalgamation is otherwise in compliance with the terms of this  Agreement and effected for a bona fide business purpose;  (2) Restricted Payments permitted by Section 7.02(b) and Permitted  Investments;  (3) the payment of reasonable and customary fees and reimbursement  of expenses paid to, and indemnity provided on behalf of, officers, directors,  employees or consultants of Parent Borrower, any Restricted Subsidiary, or any  direct or indirect parent of Parent Borrower;  (4) transactions in which Parent Borrower or any Restricted  Subsidiary, as the case may be, delivers to Agent a letter from an Independent  Financial Advisor stating that such transaction is fair to Parent Borrower or such  Restricted Subsidiary from a financial point of view or meets the requirements of  clause (1) of Section 7.02(e)(i);  (5) payments or loans (or cancellation of loans) to officers, directors,  employees or consultants which are approved by a majority of the Board of  Directors of Parent Borrower in good faith;  (6) any agreement as in effect as of the Restatement Date or any  amendment thereto (so long as any such agreement together with all amendments  thereto, taken as a whole, is not more disadvantageous to the Lenders in any  

 

   176      material respect than the original agreement as in effect on the Restatement Date)  or any transaction contemplated thereby as determined in good faith by Parent  Borrower;  (7) the existence of, or the performance by Parent Borrower or any  Restricted Subsidiary of its obligations under the terms of any stockholders or  limited liability company agreement (including any registration rights agreement  or purchase agreement related thereto) to which it is a party as of the Restatement  Date, any transaction, agreement or arrangement described in the offering  memorandum relating to the Senior Notes and, in each case, any amendment  thereto or similar transactions, agreements or arrangements which it may enter  into thereafter; provided, however, that the existence of, or the performance by  Parent Borrower or any Restricted Subsidiary of its obligations under, any future  amendment to any such existing transaction, agreement or arrangement or under  any similar transaction, agreement or arrangement entered into after the  Restatement Date shall only be permitted by this clause (7) to the extent that the  terms of any such existing transaction, agreement or arrangement together with all  amendments thereto, taken as a whole, or new transaction, agreement or  arrangement are not otherwise more disadvantageous to the Lenders in any  material respect than the original transaction, agreement or arrangement as in  effect on the Restatement Date;  (8) (A) transactions with customers, clients, suppliers or purchasers or  sellers of goods or services, or transactions otherwise relating to the purchase or  sale of goods or services, in each case in the ordinary course of business and  otherwise in compliance with the terms of this Agreement, which are fair to  Parent Borrower and the Restricted Subsidiaries in the reasonable determination  of the Board of Directors or the senior management of  Parent Borrower, or are on  terms at least as favorable as might reasonably have been obtained at such time  from an unaffiliated party or (B) transactions with joint ventures or Unrestricted  Subsidiaries entered into in the ordinary course of business and consistent with  past practice or industry norm;  (9) [Reserved];  (10) the issuance of Equity Interests (other than Disqualified Capital  Stock) of Parent Borrower to any Person;  (11) the issuances of securities or other payments, awards or grants in  cash, securities or otherwise pursuant to, or the funding of, employment  arrangements, management equity plans, stock option and stock ownership plans  or similar employee benefit plans approved by the Board of Directors of Parent  Borrower or the Board of Directors of any direct or indirect parent of Parent  Borrower, or the Board of Directors of a Restricted Subsidiary, as applicable, in  good faith;  

 

   177      (12) the entering into of any tax sharing agreement or arrangement that  complies with clauses (11) and (12) of Section 7.02(b)(ii) and the performance  under any such agreement or arrangement;  (13) any contribution to the capital of Parent Borrower;  (14) transactions permitted by, and complying with, Section 7.02(h);  (15) transactions between Parent Borrower or any Restricted Subsidiary  and any Person, a director of which is also a director of Parent Borrower or any  direct or indirect parent of Parent Borrower; provided, however, that such director  abstains from voting as a director of Parent Borrower or such direct or indirect  parent of Parent Borrower, as the case may be, on any matter involving such other  Person;  (16) pledges of Equity Interests of Unrestricted Subsidiaries;  (17) the formation and maintenance of any consolidated group or  subgroup for tax, accounting or cash pooling or management purposes in the  ordinary course of business;  (18) any employment agreements entered into by Parent Borrower or  any Restricted Subsidiary and their respective officers and employees in the  ordinary course of business;   (19) transactions undertaken in good faith (as certified by a responsible  financial or accounting officer of Parent Borrower in an Officer’s Certificate) for  the purpose of improving the consolidated tax efficiency of Parent Borrower and  its Subsidiaries and not for the purpose of circumventing any covenant set forth in  this Agreement; and   (20) non-exclusive licenses of intellectual property to or among  Borrowers, their respective Restricted Subsidiaries and their Affiliates.  (f) Amendments of Certain Documents; Line of Business.  No Loan Party  shall amend its charter, bylaws or other organizational documents in any manner  materially adverse to the interest of the Lenders or such Loan Party’s duty or ability to  repay the Obligations.  No Loan Party shall engage in any business other than the  businesses currently engaged in by it on the Restatement Date or businesses that are  similar, reasonably related, incidental or ancillary thereto or is a reasonable extension,  development or expansion thereof (a “Similar Business”).  (g) Liens.  Parent Borrower shall not, and shall not permit any of its  Restricted Subsidiaries to, directly or indirectly, create, Incur or suffer to exist any Lien  securing Indebtedness of the Parent Borrower or any Restricted Subsidiary, other than  Permitted Liens, on any asset or property of Borrower or such Restricted Subsidiary.    

 

   178      With respect to any Lien securing Indebtedness that was permitted to secure such  Indebtedness at the time of the Incurrence of such Indebtedness, such Lien shall also be  permitted to secure any Increased Amount of such Indebtedness.  The “Increased  Amount” of any Indebtedness shall mean any increase in the amount of such  Indebtedness in connection with any accrual of interest, the accretion of accreted value,  the amortization of original issue discount, the payment of interest in the form of  additional Indebtedness with the same terms or in the form of common stock of Parent  Borrower, the payment of dividends on Preferred Stock in the form of additional shares  of Preferred Stock of the same class, accretion of original issue discount or liquidation  preference and increases in the amount of Indebtedness outstanding solely as a result of  fluctuations in the exchange rate of currencies or increases in the value of property  securing Indebtedness described in clause (3) of the definition of “Indebtedness.”  (h) Mergers, Amalgamations, Fundamental Changes, Etc.  No Loan Party  shall, or shall permit any of its Restricted Subsidiaries to, directly or indirectly, by  operation of law or otherwise, enter into any merger, consolidation or amalgamation, or  liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or Dispose  of all or substantially all of its property or business, except that:   (i)  any Borrower may be merged, amalgamated or consolidated with  or into another Borrower; provided that in all mergers, amalgamations or  consolidations involving Parent Borrower, Parent Borrower shall be the  continuing or surviving entity;  (ii) any Restricted Subsidiary of a Borrower may be merged,  amalgamated or consolidated with or into a Borrower (provided that such  Borrower shall be the continuing or surviving entity) or with or into any  Guarantor (provided that such Guarantor shall be the continuing or surviving  entity);   (iii) any Subsidiary of a Borrower that is not a Guarantor may be  merged, amalgamated or consolidated with or into any other Subsidiary of a  Borrower that is not a Guarantor; provided that if one Subsidiary to such merger,  amalgamation or consolidation is a Wholly Owned Subsidiary, the Wholly  Owned Subsidiary shall be the continuing or surviving entity;  (iv) any Borrower may Dispose of any or all of its assets to another  Borrower and any Subsidiary of a Borrower may Dispose of any or all of its  assets to, or enter into any merger, amalgamation or consolidation with, (1) a  Borrower or any Guarantor (upon voluntary liquidation or otherwise), (2) a  Subsidiary that is not a Guarantor if the Subsidiary making the Disposition is not  a Guarantor; provided that any such Disposition by a Wholly Owned Subsidiary  must be to a Wholly Owned Subsidiary, or (3) pursuant to a Disposition otherwise  permitted by Section 7.02(d);   (v) any Investment expressly permitted by Section 7.02(b) may be  structured as a merger, consolidation or amalgamation;    

 

   179      (vi) any Subsidiary may be dissolved or liquidated so long as any  Dispositions of assets of such Person in connection with such liquidation or  dissolution would be to Persons entitled to receive such assets;   (vii) any Subsidiary may enter into any merger, amalgamation or  consolidation in connection with a Disposition otherwise permitted by Section  7.02(d).  (i) Sanctions.  Parent Borrower shall not, directly or indirectly, or permit any  Subsidiary to directly or indirectly, use the proceeds of any Credit Extension, or lend,  contribute or otherwise make available such proceeds to any Subsidiary, joint venture  partner or other individual or entity, (a) in furtherance of an offer, payment, promise to  pay, or authorization of the payment or giving of money, or anything else of value, to, or  (b) to fund, finance or facilitate any activities of or business with, in each case, any  individual or entity, or in any Sanctioned Jurisdiction, that, at the time of such funding, is  the subject of Sanctions, or in any other manner that will result in a violation by any  individual or entity (including any individual or entity participating in the transaction,  whether as Lender, Joint Lead Arranger, Agent, Issuing Bank, Swing Line Lender, or  otherwise) of Sanctions.   (j) Anti-Corruption Laws.  Parent Borrower shall not, directly or indirectly,  or permit any Subsidiary to directly or indirectly, use the proceeds of any Credit  Extension, or lend, contribute or otherwise make available for such proceeds to any  Subsidiary, joint venture partner or other individual or entity, for any purpose which  would breach the United States Foreign Corrupt Practices Act of 1977, the Corruption of  Foreign Public Officials Act (Canada), the UK Bribery Act 2010, and other similar anti- corruption legislation in other jurisdictions.  (k) Deposit Accounts; Credit Card Processors.  Parent Borrower shall not, and  shall not permit any Restricted Subsidiary, to open new bank accounts that are collection  accounts unless the applicable Loan Parties shall have delivered to the Agent appropriate  Blocked Account Agreements consistent with the provisions of Section 7.01(i) and  otherwise reasonably satisfactory to the Agent. No Restricted Subsidiary shall maintain  any bank accounts or any agreements with Credit Card Issuers or Credit Card Processors  other than the ones contemplated in this Agreement.  SECTION 7.03  Financial Covenants.  So long as any Advance or any other  Obligation of any Loan Party under any Loan Document shall remain unpaid, any Letter of  Credit shall be outstanding or any Lender shall have any Commitment hereunder, Parent  Borrower will, unless it has the written consent of the Majority Lenders to do otherwise:  (a) [Reserved].    (b) Fixed Charge Coverage Ratio.  If Availability shall be less than the greater  of (x) $190.0 million and (y) 10.0% of the Loan Cap (such greater amount, the “Covenant  Trigger” and the date on which the Covenant Trigger occurs, the “Covenant Trigger  Date”), until the date that Availability shall have been greater than or equal to the  

 

   180      Covenant Trigger for 30 consecutive days thereafter (such period, a “Compliance  Period”), maintain a Fixed Charge Coverage Ratio as of (x) the Covenant Trigger Date  and (y) last day of each subsequently completed Test Period ending during a Compliance  Period, in each case determined on the basis of the most recently completed Test Period,  of not less than 1.00:1.00.  SECTION 7.04  Reporting Requirements.  Parent Borrower will furnish to the  Agent for distribution to the Lenders:  (a) As soon as available and in any event within 45 days after the end of each  of the first three Fiscal Quarters, Consolidated balance sheets of the Parent Borrower and  its Subsidiaries as of the end of such Fiscal Quarters and Consolidated statements of  income and retained earnings of the Parent Borrower and its Subsidiaries for the period  commencing at the end of the previous Fiscal Year and ending with the end of such  Fiscal Quarter, setting forth in each case in comparative form the figures for (i) such  period set forth in the projections delivered pursuant to Section 7.04(j) hereof, (ii) the  corresponding Fiscal Quarter of the previous Fiscal Year and (iii) the corresponding  portion of the previous Fiscal Year, certified by the chief financial officer or treasurer of  the Parent Borrower and accompanied by a certificate of said officer stating that such  have been prepared in accordance with GAAP.   (b) As soon as available and in any event within 75 days after the end of each  Fiscal Year, a copy of the annual report for such year for the Parent Borrower and its  Subsidiaries, containing Consolidated financial statements of the Parent Borrower and its  Subsidiaries for such Fiscal Year, setting forth in each case in comparative form the  figures for the previous Fiscal Year and certified by Deloitte & Touche LLP or other  independent public accountants reasonably acceptable to the Majority Lenders, which  report and 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.  (c) If Availability is at any time less than the greater of (i) $350.0 million and  (ii) 20.0% of the Loan Cap, then within 30 days after the end of each Fiscal Month of  each Fiscal Year of Parent Borrower, Parent Borrower will furnish to the Agent for  distribution to the Lenders a Consolidated balance sheet of Parent Borrower and its  Subsidiaries as at the end of such Fiscal Month, and the related Consolidated statements  of income and retained earnings for such Fiscal Month, and for the portion of the  Borrower’s Fiscal Year then ended, certified by the chief financial officer or treasurer of  Parent Borrower and accompanied by a certificate of said officer stating that such have  been prepared in accordance with GAAP;  (d) Together with the financial statements required by Sections 7.04(a), (b)  and(c), a compliance certificate signed by the chief financial officer, treasurer or assistant  treasurer of the Parent Borrower stating (i) whether or not he or she has knowledge of the  occurrence of any Event of Default or Default and, if so, stating in reasonable detail the  facts with respect thereto and (ii) whether or not the Parent Borrower is in compliance  

 

   181      with the requirements set forth in Section 7.03 and showing the computations used in  determining such compliance or non-compliance.  (e) As soon as possible and in any event within five Business Days after a  Responsible Officer becomes aware of each Event of Default and Default, a statement of  a Responsible Officer of the Parent Borrower setting forth details of such Event of  Default or Default and the action which the Parent Borrower has taken and proposes to  take with respect thereto.  (f) Promptly after the sending or filing thereof, copies of all reports which the  Parent Borrower sends to any of its security holders, and copies of all reports and  registration statements which the Parent Borrower or any Subsidiary files with the  Securities and Exchange Commission (the “SEC”) or any national securities exchange.  (g) Promptly following any request therefor, information and documentation  reasonably requested by the Agent or any Lender for purposes of compliance with  applicable “know your customer” requirements under the PATRIOT Act, the Proceeds of  Crime (Money Laundering) and Terrorist Financing Act (Canada), the Beneficial  Ownership Regulation or other applicable anti-money laundering laws.  (h) (i) Such other information respecting the condition or operations, financial  or otherwise, of the Parent Borrower or any of its Subsidiaries as any Lender Party,  through the Agent, may from time to time reasonably request; and (ii) and promptly upon  receiving a request therefrom from the Agent or BofA Securities, Inc., in its capacity as a  Co-Sustainability Coordinator, such other information regarding sustainability matters  and practices of Parent Borrower or any of its Subsidiaries in respect of KPI Metrics (as  defined in the Sustainability Schedule) (including with respect to corporate governance,  environmental, social and employee matters, respect for human rights, anti-corruption  and anti-bribery) as the Agent, Lender, Issuing Bank or BofA Securities, Inc., in its  capacity as a Co-Sustainability Coordinator, may reasonably request for purposes of  compliance with any legal or regulatory requirement applicable to it.  (i) No later than 15 Business Days after the last day of each Fiscal Quarter  (or, if such day is not a Business Day, on the next succeeding Business Day),  commencing with the Fiscal Quarter ending July 30, 2022, a Borrowing Base Certificate  showing the Borrowing Base as of the close of business as of the last day of the  immediately preceding Fiscal Quarter (provided that the Appraised Value percentage  applied to the Eligible Inventory set forth in each Borrowing Base Certificate shall be the  percentage set forth in the most recent appraisal obtained by the Agent pursuant to  Section 7.01(c) for the applicable quarterly period in which such Borrowing Base  Certificate is delivered), each Borrowing Base Certificate to be certified as complete and  correct in all material respects by a Responsible Officer of Parent Borrower; provided  that (x) at any time that a Weekly Borrowing Base Delivery Event has occurred and is  continuing (or if Parent Borrower elects, so long as the frequency of delivery is  maintained by Parent Borrower through the second week of January for the following  calendar year), such Borrowing Base Certificate shall be delivered on Wednesday of each  week (or, if Wednesday is not a Business Day, on the next succeeding Business Day), as  

 

   182      of the close of business on the immediately preceding Saturday, (y) Parent Borrower shall  be required to compute the Borrowing Base and deliver an updated Borrowing Base  Certificate in connection with any bulk sale or other Disposition of ABL Priority  Collateral outside of the ordinary course of business, in each case, constituting greater  than 5% of the Borrowing Base (or, in the case of Dispositions pursuant to Section  7.02(d)(xiii), such other amount set forth in Section 7.02(d)(xiii)) and (z) at any time that  a Monthly Borrowing Base Delivery Event has occurred and is continuing (or if Parent  Borrower elects, so long as the frequency of delivery is maintained by Parent Borrower  through the second week of January of the following calendar year), such Borrowing  Base Certificate shall be delivered on the 15th day of each Fiscal Month (or, if such day  is not a Business Day, on the next succeeding Business Day), as of the close of business  as of the last day of the immediately preceding Fiscal Month;   (j)  Within 60 days after the end of each Fiscal Year of Parent Borrower,  forecasts prepared by management of Parent Borrower, in form reasonably satisfactory to the  Agent, of Consolidated balance sheets and statements of income or operations and cash flows of  Parent Borrower and its Subsidiaries, and an Availability analysis, in each case on a quarterly  basis for the immediately following Fiscal Year (including the Fiscal Year in which the maturity  date occurs), and as soon as available, any significant revisions to such forecast with respect to  such Fiscal Year; and  (k) Simultaneously with the delivery of each set of consolidated financial  statements referred to in clauses (a), (b) and (c) above, related consolidating financial statements  reflecting adjustments necessary to eliminate the accounts of Unrestricted Subsidiaries (if any)  from such consolidated financial statements.   (l) With respect to each Fiscal Year (commencing with the Fiscal Year  ending January 28, 2023), as soon as available and in any event within 180 days following the  end of such Fiscal Year, a Sustainability Pricing Certificate for the most recently ended Fiscal  Year; provided that for any Fiscal Year, Parent Borrower may elect not to deliver a Sustainability  Pricing Certificate, and such election shall not constitute a Default or Event of Default (but such  failure to so deliver a Sustainability Pricing Certificate by the end of such 180-day period shall  result in the Sustainability Revolving Commitment Fee Adjustment and the Sustainability  Margin Adjustment being applied as set forth in the Sustainability Schedule in respect of  situations where the Sustainability Pricing Certificate is not so delivered by the end of such  period).  Documents required to be delivered pursuant to Section 7.04(a), (b) or (c) or  Section 7.04(f) (to the extent any such documents are included in materials otherwise filed with  the SEC) may be delivered electronically and if so delivered, shall be deemed to have been  delivered on the date (i) on which the Parent Borrower posts such documents, or provides a link  thereto on the Parent Borrower’s website on the Internet at the website address  “www.gapinc.com” (or any successor page notified to the Lenders); or (ii) on which such  documents are posted on the Parent Borrower’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).  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  

 

   183      responsibility to monitor compliance by the Parent Borrower 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.  Parent Borrower hereby acknowledges that (a) the Agent will make available to the  Lender Parties materials and/or information provided by or on behalf of the Parent Borrower  hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks  or a substantially similar electronic transmission system (the “Platform”) and (b) certain of the  Lender Parties (each, a “Public Lender”) may have personnel who do not wish to receive  material non-public information with respect to the Parent 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.  Parent 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 (w) all such Borrower 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; (x) by marking Borrower  Materials “PUBLIC,” the Parent Borrower shall be deemed to have authorized the Agent and the  Lender Parties to treat such Borrower Materials as not containing any material non-public  information (although it may be sensitive and proprietary) with respect to the Parent Borrower or  its securities for purposes of United States Federal and state securities laws (provided, however,  that to the extent such Borrower Materials constitute Confidential Information, they shall be  treated as set forth in Section 10.11); (y) all Borrower Materials marked “PUBLIC” are  permitted to be made available through a portion of the Platform designated “Public Side  Information;” and (z) the Agent 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.”  Notwithstanding the foregoing, the Parent Borrower shall be under  no obligation to mark any Borrower Materials “PUBLIC”.  ARTICLE VIII  EVENTS OF DEFAULT  SECTION 8.01  Events of Default.  If any of the following events (“Events of  Default”) shall occur and be continuing:  (a) Non-Payment.  Any Loan Party shall fail to pay any principal of any  Advance or any reimbursement obligation under any Letter of Credit when the same  becomes due and payable, and in the currency required hereunder or shall fail to Cash  Collateralize the Outstanding Amount of L/C Obligations in the amounts and at the times  required pursuant to Section 2.04; or shall fail to pay any interest on any Advance, fees or  any other amounts hereunder or under any other Loan Document within five days after  the same become due and payable by it; or  (b) Representations and Warranties.  Any representation or warranty made by  any Loan Party in any Loan Document (whether made on behalf of itself or otherwise) or  by any Loan Party (or any of its officers) in connection with any Loan Document  

 

   184      (including, without limitation, any representation made in any Borrowing Base  Certificate) shall prove to have been incorrect in any material respect when made; or  (c) Specific Covenants and Other Defaults.  (i) Any Loan Party shall fail to  perform or observe any covenant contained in Section 7.01(a) (as to the existence of each  Borrower), 7.01(g), 7.01(i), 7.01(p), 7.02, 7.03 or 7.04(e); (ii) any Loan Party shall fail to  perform or observe any covenant contained in Section 7.04 (other than Section 7.04(e)) if  the failure to perform or observe such covenant shall continue unremedied for five (5)  Business Days (or, in the case of Section 7.01(i), two (2) Business Days if Borrowing  Base Certificates are being delivered weekly); and (iii) any Loan Party shall fail to  perform or observe such other term, covenant or agreement contained in any Loan  Document on its part to be performed or observed if the failure to perform or observe  such other term, covenant or agreement shall remain unremedied for 30 days after written  notice thereof shall have been given to such Loan Party by any Lender Party; or  (d) Cross-Default.  A default or breach shall occur under any other agreement,  document or instrument to which any Loan Party or any Restricted Subsidiary is a party  that is not cured within any applicable grace period therefor, and such default or breach  (i) involves the failure to make any payment when due in respect of any Indebtedness  (other than the Obligations) of any Loan Party or any Restricted Subsidiary in an  aggregate amount of not less than $75,000,000, or (ii) causes or permits any holder of  such Indebtedness or a trustee, with the giving of notice, if required, to cause  Indebtedness or a portion thereof in excess of $75,000,000 in the aggregate outstanding  principal amount to become due prior to its stated maturity or prior to its regularly  scheduled dates of payment, or cash collateral in respect thereof (in excess of  $75,000,000) is demanded as a result of any such breach or default, in each case,  regardless of whether such right is exercised, by such holder or trustee; provided that this  clause (d)(ii) shall not apply to secured Indebtedness that becomes due as a result of the  voluntary sale or transfer of the property or assets securing such Indebtedness, if such  sale or transfer is permitted hereunder and under the documents providing for such  Indebtedness; or  (e) Insolvency Proceeding, Etc.  Any Loan Party shall generally not pay its  debts as such debts become due, or shall admit in writing its inability to pay its debts  generally, or shall make a general assignment for the benefit of creditors; or any  proceeding shall be instituted by or against any Loan Party seeking to adjudicate it a  bankrupt or insolvent, or seeking receivership, interim receivership, liquidation, winding  up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its  debts under any Debtor Relief Law, or seeking the entry of an order for relief or the  appointment of a receiver, interim receiver, monitor, trustee, custodian or other similar  official for it or for any substantial part of its property and, in the case of any such  proceeding instituted against it (but not instituted by it), either such proceeding shall  remain undismissed or unstayed for a period of 60 days, or any of the actions sought in  such proceeding (including, without limitation, the entry of an order for relief against, or  the appointment of a receiver, interim receiver, monitor, trustee, custodian or other  similar official for, it or for any substantial part of its property) shall occur; or any Loan  

 

   185      Party shall take any corporate action to authorize any of the actions set forth above in this  subsection (e); or  (f) Judgments.  One or more judgments or orders for the payment of money in  excess of $75,000,000 in the aggregate shall be rendered against any Loan Party and  either (i) enforcement proceedings shall have been commenced by any creditor upon such  judgment or order or (ii) there shall be any period of forty-five (45) consecutive days  during which a stay of enforcement of such judgment or order, by reason of a pending  appeal or otherwise, shall not be in effect; provided, however, that any such judgment or  order shall not give rise to an Event of Default under this Section 8.01(f) if and so long as  (A) the amount of such judgment or order which remains unsatisfied is covered by a valid  and binding policy of insurance between the respective Loan Party and the insurer  covering full payment of such unsatisfied amount and (B) such insurer has been notified,  and has not disputed the claim made for payment, of the amount of such judgment or  order; or  (g) Change of Control.  A Change of Control shall have occurred; or  (h) ERISA and Canadian Pension Plans.  Any of the following events or  conditions shall have occurred and such event or condition, when aggregated with any  and all other such events or conditions set forth in this subsection (h), has resulted or is  reasonably expected to result in liabilities of the Loan Parties and/or the ERISA Affiliates  in an aggregate amount that would have a Material Adverse Effect:  (i) any ERISA Event shall have occurred with respect to a Plan; or  (ii) any of the Loan Parties or any of the ERISA Affiliates shall have  been notified by the sponsor of a Multiemployer Plan that it has incurred  Withdrawal Liability to such Multiemployer Plan; or  (iii) any of the Loan Parties or any of the ERISA Affiliates shall have  been notified by the sponsor of a Multiemployer Plan that such Multiemployer  Plan is in reorganization, is insolvent or is being terminated, within the meaning  of Title IV of ERISA, or has been determined to be in “endangered” or “critical”  status within the meaning of Section 432 of the Code or Section 305 of ERISA  and, as a result of such reorganization, insolvency, termination or determination,  the aggregate annual contributions of the Loan Parties and the ERISA Affiliates to  all of the Multiemployer Plans that are in reorganization, are insolvent, being  terminated or in endangered or critical status at such time have been or will be  increased over the amounts contributed to such Multiemployer Plans for the plan  years of such Multiemployer Plans immediately preceding the plan year in which  such reorganization, insolvency or termination occurs; or  (iv) any failure to satisfy the applicable minimum funding standards  under Section 412(a) of the Code or Section 302(a) of ERISA, whether or not  waived, shall exist with respect to one or more of the Plans; or  

 

   186      (v) any Lien shall exist on the property and assets of any of the Loan  Parties or any of the ERISA Affiliates in favor of the PBGC;   (vi) a Canadian Pension Event shall have occurred; or   (vii) any Lien arises (save for contribution amounts not yet due) in  connection with any Canadian Pension Plans.  (i) Invalidity of Loans Documents.  (i) Any provision of any Loan Document,  at any time after its execution and delivery and for any reason (other than as a result of  the gross negligence or willful misconduct of the Agent or indefeasible payment in full of  the Obligations), ceases to be in full force and effect; or any Loan Party or any other  Person contests in any manner the validity or enforceability of any provision of any Loan  Document; or any Loan Party denies that it has any or further liability or obligation under  any provision of any Loan Document, or purports to revoke, terminate or rescind any  provision of any Loan Document or seeks to avoid, limit or otherwise adversely affect  any Lien purported to be created under any Security Document; or (ii) any Lien purported  to be created under any Collateral Document shall cease to be, or shall be asserted by any  Loan Party or any other Person not to be, a valid and perfected Lien on a material portion  of the Collateral, with the priority required by the applicable Collateral Document (other  than as a result of the gross negligence or willful misconduct of the Agent);  then, and in any such event, the Agent shall at the request, or may with the  consent, of the Majority Lenders, by notice to the Parent Borrower, (A) declare the obligation of  each Lender to make Advances to be terminated, whereupon the same shall forthwith terminate,  (B) declare the Advances, all interest thereon and all other amounts payable under this  Agreement to be forthwith due and payable, whereupon the Advances, all such interest and all  such amounts shall become and be forthwith due and payable, without presentment, demand,  protest or further notice of any kind, all of which are hereby expressly waived by each Loan  Party, (C) declare the obligation of the Issuing Banks to issue further Letters of Credit to be  terminated, whereupon the same shall forthwith terminate, and/or (D) demand from time to time  that the Parent Borrower, and if such demand is made the Parent Borrower shall, pay or cause to  be paid to the Agent for the benefit of the Issuing Banks, an amount in immediately available  funds equal to the then outstanding L/C Obligations which shall be held by the Agent (or the  applicable Issuing Bank) As Cash Collateral and applied to the reduction of such L/C  Obligations as drawings are made on outstanding Letters of Credit; provided, however, that in  the event of an actual or deemed entry of an order for relief with respect to any Loan Party under  the Federal Bankruptcy Code, the obligation of each Lender to make Advances shall  automatically be terminated, the Cash Collateral obligations under subsection (D) above shall be  automatically due and payable without demand, the then outstanding Advances, all such interest  and all such amounts shall automatically become and be due and payable, without presentment,  demand, protest or any notice of any kind, all of which are hereby expressly waived by each  Loan Party and the obligation of the Issuing Banks to Issue Letters of Credit shall automatically  be terminated.  SECTION 8.02  Application of Funds.  After the exercise of remedies provided  for in Section 8.01 (or after the Loans have automatically become immediately due and payable  

 

   187      and the L/C Obligations have automatically been required to be Cash Collateralized as set forth  in the proviso to Section 8.01), any amounts received on account of the Obligations shall be  applied by the Agent in the following order:  First, to payment of that portion of the Obligations constituting fees, indemnities,  expenses and other amounts (including fees, charges and disbursements of counsel to the Agent  and amounts payable under Article II) payable to the Agent;  Second, to payment of that portion of the Obligations constituting indemnities,  expenses, and other amounts (other than principal, interest and fees) payable to the Lenders and  Issuing Banks (including amounts payable under Article II), ratably among them in proportion to  the amounts described in this clause Second payable to them;  Third, to the extent not previously reimbursed by the Lenders, to payment to the  Agent of that portion of the Obligations constituting principal and accrued and unpaid interest on  any Permitted Overadvances;  Fourth, to the extent that Swing Line Advances have not been refinanced by a  Revolving Credit Borrowing, payment to the Swing Line Lender of that portion of the  Obligations constituting accrued and unpaid interest on the Swing Line Advances;  Fifth, to the extent that Swing Line Advances have not been refinanced by a  Revolving Credit Borrowing, to payment to the Swing Line Lender of that portion of the  Obligations constituting unpaid principal of the Swing Line Advances;  Sixth, to payment of that portion of the Obligations constituting accrued and  unpaid interest on the Revolving Credit Borrowings and fees (including Letter of Credit Fees),  ratably among the Lenders and the Issuing Banks in proportion to the respective amounts  described in this clause Sixth payable to them;  Seventh, to payment of that portion of the Obligations constituting unpaid  principal of the Revolving Credit Borrowings, ratably among the Lenders in proportion to the  respective amounts described in this clause Seventh held by them;  Eighth, to the Agent for the account of the Issuing Banks, to Cash Collateralize  that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters of Credit;  Ninth, to payment of that portion of the Obligations arising from Bank Products  and Secured Hedging Obligations, ratably among the Secured Parties in proportion to the  respective amounts described in this clause Ninth held by them;  Tenth, to payment of that portion of the Obligations arising from Secured Supply  Chain Financings, ratably among the Secured Parties in proportion to the respective amounts  described in this clause Tenth held by them;  Eleventh, to payment of that portion of the Obligations constituting unpaid  accrued and unpaid interest on the FILO Term Loans, if any, ratably among the Lenders in  proportion to the respective amounts described in this clause Eleventh payable to them;  

 

   188      Twelfth, to payment of that portion of the Obligations constituting unpaid  principal of the FILO Term Loans, if any, ratably among the Lenders in proportion to the  respective amounts described in this clause Twelfth payable to them;  Thirteenth, to payment of all other Obligations, ratably among the Secured Parties  in proportion to the respective amounts described in this clause Thirteenth held by them;   Last, the balance, if any, after all of the Obligations have been indefeasibly paid in  full, to the Loan Parties or as otherwise required by Law.    Subject to Section 2.13, amounts used to Cash Collateralize the aggregate undrawn amount of  Letters of Credit pursuant to clause Eighth 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 Obligations, if any, in the order set forth above.     ARTICLE IX  THE AGENT  SECTION 9.01  Appointment and Authority.  Each of the Lenders and Issuing  Banks hereby irrevocably appoints 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 Banks, and neither the Parent  Borrower nor any other Loan Party shall have rights as a third party beneficiary of any of such  provisions.  Each Issuing Bank shall act on behalf of the Lenders with respect to any Letters  of Credit Issued by it and the documents associated therewith until such time and except for so  long as the Agent may elect to act for each Issuing Bank with respect thereto; provided, however,  that such Issuing Bank shall have all of the benefits and immunities (i) provided to the Agent in  this Article IX with respect to any acts taken or omissions suffered by such Issuing Bank in  connection with Letters of Credit Issued by it or proposed to be Issued by it and the applications  and agreements for letters of credit pertaining to the Letters of Credit as fully as if the term  “Agent,” as used in this Article IX, included such Issuing Bank with respect to such acts or  omissions, and (ii) as additionally provided in this Agreement with respect to such Issuing Bank.  For the purposes of holding any hypothec granted pursuant to the laws of the  Province of Quebec, each of the Secured Parties hereby irrevocably appoints and authorizes the  Agent and, to the extent necessary, ratifies the appointment and authorization of the Agent, to act  as the hypothecary representative of the Secured Parties as contemplated under Article 2692 of  the Civil Code of Quebec, and to enter into, to take and to hold on their behalf, and for their  benefit, any hypothec, and to exercise such powers and duties that are conferred upon the Agent  under any related deed of hypothec.  The Agent shall have the sole and exclusive right and  authority to exercise, except as may be otherwise specifically restricted by the terms hereof, all  

 

   189      rights and remedies given to the Agent in its capacity as hypothecary representative pursuant to  any such deed of hypothec and applicable Law.  Any person who becomes a Secured Party in  accordance with the terms of this Agreement, shall be deemed to have consented to and  confirmed the Agent as the person acting as hypothecary representative holding the aforesaid  hypothecs as aforesaid and to have ratified as of the date it becomes a Secured Party, all actions  taken by the Agent in such capacity.  The substitution of the Agent pursuant to the provisions of  this Article IX shall also constitute the substitution of the Agent as hypothecary representative as  aforesaid without any further act or formality being required to appoint such successor Agent as  the successor hypothecary representative for the purposes of any then existing deeds of hypothec.   The execution by Bank of America, as the Agent in the capacity as hypothecary representative  for the Secured Parties, prior to this Agreement of any deeds of hypothec is hereby ratified and  confirmed.  SECTION 9.02  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, act as the financial advisor or in any other advisory  capacity for and generally engage in any kind of business with the Parent 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.  SECTION 9.03  Exculpatory Provisions.  Neither the Agent nor any Co- Sustainability Coordinator shall have any duties or obligations except those expressly set forth  herein and in the other Loan Documents.  Without limiting the generality of the foregoing, each  of the Agent and the Co-Sustainability Coordinators, as applicable:  (a) shall not be subject to any fiduciary or other implied duties, regardless of  whether a Default has occurred and is continuing;  (b) 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 Majority Lenders (or such other number or percentage of the Lenders as  shall be expressly provided for herein or in the other Loan Documents), provided that the  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; and  (c) shall not, except as expressly set forth herein and in the other Loan  Documents, have any duty to disclose, and shall not be liable for the failure to disclose,  any credit or other information concerning the business, prospects, operations, property,  financial and other condition or creditworthiness of any of the Loan Parties or any of  their Affiliates, that is communicated to, obtained or in the possession of, the Agent, the  Co-Sustainability Coordinators, any Joint Lead Arranger or any of their Related Parties in  any capacity, except for notices, reports and other documents expressly required to be  

 

   190      furnished to the Lenders by the Agent or BofA Securities, Inc., in its capacity as a Co- Sustainability Coordinator, herein.  The Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the  request of the Majority Lenders (or such other number or percentage of the Lenders as shall be  necessary, or as the Agent shall believe in good faith shall be necessary, under the circumstances  as provided in Sections 10.01 and 8.01) or (ii) in the absence of its own gross negligence or  willful misconduct.  The Agent and the Co-Sustainability Coordinators shall be deemed not to  have knowledge of any Default unless and until notice describing such Default is given to the  Agent or the Co-Sustainability Coordinators, as applicable, by the Parent Borrower, a Lender or  an Issuing Bank.  Neither the Agent nor any Co-Sustainability Coordinator shall be responsible for or have any  duty to ascertain or inquire into (i) any statement, warranty or representation made in or in  connection with this Agreement or any other Loan Document, (ii) the contents of any certificate,  report or other document delivered hereunder or thereunder or in connection herewith or  therewith, (iii) the performance or observance of any of the covenants, agreements or other terms  or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity,  enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any  other agreement, instrument or document, or the creation, perfection or priority of any Lien  purported to be created by the Collateral Documents, (v) the value or sufficiency of any  Collateral, or (vi) the satisfaction of any condition set forth in Article V or elsewhere herein,  other than to confirm receipt of items expressly required to be delivered to the Agent or the Co- Sustainability Coordinators.  SECTION 9.04  Reliance by Agent and Co-Sustainability Coordinators.  The  Agent and the Co-Sustainability Coordinators shall be entitled to rely upon, and shall not incur  any liability for relying upon, any notice, request, certificate, consent, statement, instrument,  document or other writing (including any electronic message, Internet or intranet website posting  or other distribution) believed by it to be genuine and to have been signed, sent or otherwise  authenticated by the proper Person.  The Agent and the Co-Sustainability Coordinators also may  rely upon any statement made to it orally or by telephone and believed by it to have been made  by the proper Person, and shall not incur any liability for relying thereon.  In determining  compliance with any condition hereunder to the making of an Advance, or the issuance of a  Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an Issuing  Bank, the Agent may presume that such condition is satisfactory to such Lender Party unless the  Agent shall have received notice to the contrary from such Lender Party prior to the making of  such Advance or the issuance of such Letter of Credit.  The Agent and the Co-Sustainability  Coordinators may consult with legal counsel (who may be counsel for the Parent Borrower),  independent accountants and other experts selected by it, and shall not be liable for any action  taken or not taken by it in accordance with the advice of any such counsel, accountants or  experts.  SECTION 9.05  Delegation of Duties.  The Agent and the Co-Sustainability  Coordinators 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 or a Co-Sustainability Coordinator, as applicable.  The Agent, any Co-Sustainability  

 

   191      Coordinator any such sub-agent may perform any and all of its duties and exercise its rights and  powers by or through their respective Related Parties.  The exculpatory provisions of this Article  shall apply to any such sub-agent and to the Related Parties of the Agent, the Co-Sustainability  Coordinators and any such sub-agent, and shall apply to their respective activities in connection  with the syndication of the credit facilities provided for herein as well as activities as Agent or as  a Co-Sustainability Coordinator.   SECTION 9.06  Resignation of Agent.  (a)   The Agent may at any time give  notice of its resignation to the Lenders, the Issuing Banks and the Parent Borrower.  Upon receipt  of any such notice of resignation, the Majority Lenders shall have the right, in consultation with  the Parent Borrower, to appoint a successor, which shall be a bank with an office in the United  States, or an Affiliate of any such bank with an office in the United States.  If no such successor  shall have been so appointed by the Majority Lenders and shall have accepted such appointment  within 30 days after the retiring Agent gives notice of its resignation (or such earlier day as shall  be agreed by the Majority Lenders) (the “Resignation Effective Date”), then the retiring Agent  may (but shall not be obligated to) on behalf of the Lenders and the Issuing Banks, appoint a  successor Agent meeting the qualifications set forth above, provided that in no event shall any  such 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) If the Person serving as Agent is a Defaulting Lender pursuant to clause  (d) of the definition thereof, the Majority Lenders may, to the extent permitted by applicable  Law, by notice in writing to the Parent Borrower and such Person remove such Person as Agent  and, in consultation with the Parent Borrower, appoint a successor. If no such successor shall  have been so appointed by the Majority Lenders and shall have accepted such appointment  within 30 days (or such earlier day as shall be agreed by the Majority Lenders) (the “Removal  Effective Date”), then such removal shall nonetheless become effective in accordance with such  notice on the Removal Effective Date.  (c) With effect from the Resignation Effective Date or the Removal Effective  Date (as applicable) (1) 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 Banks 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 (2) 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 Agent shall  instead be made by or to each Lender and each Issuing Bank directly, until such time, if any, as  the Majority 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 4.02(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 or removed 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 Parent  

 

   192      Borrower to a successor Agent shall be the same as those payable to its predecessor unless  otherwise agreed between the Parent Borrower 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 10.04 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 in respect of any actions taken  in connection with transferring the agency to any successor Agent.  (d) Any resignation by Bank of America as Agent pursuant to this Section shall  also constitute its resignation as Issuing Bank and Swing Line Lender.  If Bank of America resigns  as an Issuing Bank, it shall retain all the rights, powers, privileges and duties of an 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 Obligations with respect thereto, including the right to require the  Lenders to make Index Rate Loans or fund risk participations in Unreimbursed Amounts pursuant  to Section 2.04(c).  If Bank of America resigns as Swing Line Lender, it shall retain all the rights  of the Swing Line Lender provided for hereunder with respect to Swing Line Advances made by  it and outstanding as of the effective date of such resignation, including the right to require the  Lenders to make Index Rate Loans or fund risk participations in outstanding Swing Line Advances  pursuant to Section 2.03(c).  Upon the acceptance of a successor’s appointment as Agent  hereunder, (a) such successor shall succeed to and become vested with all of the rights, powers,  privileges and duties of the retiring Issuing Bank and Swing Line Lender, (b) the retiring Issuing  Bank and Swing Line Lender shall be discharged from all of their respective duties and obligations  hereunder or under the other Loan Documents, and (c) the successor Issuing Bank shall issue letters  of credit in substitution for the Letters of Credit issued by Bank of America, if any, outstanding at  the time of such succession or make other arrangements satisfactory to the retiring Issuing Bank  to effectively assume the obligations of the retiring Issuing Bank with respect to such Letters of  Credit.  SECTION 9.07  Non-Reliance on Agent and Other Lenders.  Each Lender and  each Issuing Bank expressly acknowledges that none of the Agent, the Co-Sustainability  Coordinators nor any Joint Lead Arranger has made any representation or warranty to it, and that  no act by the Agent, any Co-Sustainability Coordinator or any Joint Lead Arranger hereafter  taken, including any consent to, and acceptance of any assignment or review of the affairs of any  Loan Party of any Affiliate thereof, shall be deemed to constitute any representation or warranty  by the Agent, any Co-Sustainability Coordinator or any Joint Lead Arranger to any Lender or  Issuing Bank as to any matter, including whether the Agent, any Co-Sustainability Coordinator  or the Joint Lead Arrangers have disclosed material information in their (or their Related  Parties’) possession.  Each Lender and each Issuing Bank represents to the Agent, the Co- Sustainability Coordinators and each Joint Lead Arranger that it has, independently and without  reliance upon the Agent, the Co-Sustainability Coordinators, any Joint Lead Arranger, 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 of, appraisal of, and investigation into, the  business, prospects, operations, property, financial and other condition and creditworthiness of  the Loan Parties and their 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  

 

   193      and to extend credit to the Borrowers hereunder.  Each Lender and each Issuing Bank also  acknowledges that it will, independently and without reliance upon the Agent, the Co- Sustainability Coordinators, the Joint Lead Arrangers, 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 Loan Parties.  Each Lender and each 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 Issuing Bank  agrees not to assert a claim in contravention of the foregoing. Each Lender and 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 9.08  No Other Duties, Etc..  Anything herein to the contrary  notwithstanding, none of the Co-Sustainability Coordinators, Joint Lead Arrangers,  Documentation Agent, Syndication Agents or Co-Sustainability Coordinators 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, a Lender or an Issuing  Bank hereunder.  SECTION 9.09  Agent May File Proofs of Claim; Credit Bidding.  In case of the  pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding  relative to any Loan Party, the Agent (irrespective of whether the principal of any Advance or  L/C Obligation 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 any Loan Party) shall be  entitled and empowered, by intervention in such proceeding or otherwise  (a) 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 Obligations and all other Obligations  that are owing and unpaid and to file such other documents as may be necessary or  advisable in order to have the claims of the Lenders, the Issuing Banks and the Agent  (including any claim for the reasonable compensation, expenses, disbursements and  advances of the Lenders, the Issuing Banks and the Agent and their respective agents and  counsel and all other amounts due the Lenders, the Issuing Banks and the Agent under  Sections 2.04(h) and (i), 2.06 and 10.04) allowed in such judicial proceeding; and  

 

   194      (b) to collect and receive any monies or other property payable or deliverable  on any such claims and to distribute the same;  and any custodian, receiver, interim receiver, monitor, assignee, trustee, liquidator,  sequestrator or other similar official in any such judicial proceeding is hereby authorized  by each Lender and each Issuing Bank to make such payments to the Agent and, in the  event that the Agent shall consent to the making of such payments directly to the Lenders  and the Issuing Banks, 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 2.06 and 10.04.  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 any Issuing Bank any plan of reorganization,  arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or  any Issuing Bank to authorize the Agent to vote in respect of the claim of any Lender or any  Issuing Bank in any such proceeding.  The Secured Parties hereby irrevocably authorize the Agent, at the direction of the Majority  Lenders, to credit bid all or any portion of the Obligations (including accepting some or all of the  Collateral in satisfaction of some or all of the Secured Obligations pursuant to a deed in lieu of  foreclosure or otherwise) and in such manner purchase (either directly or through one or more  acquisition vehicles) all or any portion of the Collateral (a) at any sale thereof conducted under  the provisions of the Bankruptcy Code of the United States, including under Sections 363, 1123  or 1129 of the Bankruptcy Code of the United States, or any similar Debtor Relief Laws or other  applicable Laws in any other jurisdictions to which a Loan Party is subject, (b) at any other sale  or foreclosure or acceptance of collateral in lieu of debt conducted by (or with the consent or at  the direction of) the Agent (whether by judicial action or otherwise) in accordance with any  applicable Law.  In connection with any such credit bid and purchase, the Obligations owed to  the Secured Parties shall be entitled to be, and shall be, credit bid on a ratable basis (with  Obligations with respect to contingent or unliquidated claims receiving contingent interests in the  acquired assets on a ratable basis that would vest upon the liquidation of such claims in an  amount proportional to the liquidated portion of the contingent claim amount used in allocating  the contingent interests) in the asset or assets so purchased (or in the Equity Interests or debt  instruments of the acquisition vehicle or vehicles that are used to consummate such  purchase).  In connection with any such bid (i) the Agent shall be authorized to form one or more  acquisition vehicles to make a bid, (ii) 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 Equity Interests thereof  shall be governed, directly or indirectly, by the vote of the Majority Lenders, irrespective of the  termination of this Agreement and without giving effect to the limitations on actions by the  Majority Lenders contained in Section 10.01 of this Agreement), (iii) the Agent shall be  authorized to assign the relevant Obligations to any such acquisition vehicle pro rata by the  Lenders, as a result of which each of the Lenders shall be deemed to have received a pro rata  portion of any Equity Interests and/or debt instruments issued by such an acquisition vehicle on  account of the assignment of the Obligations to be credit bid, all without the need for any  Secured Party or acquisition vehicle to take any further action, and (iv) to the extent that  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 Obligations  

 

   195      assigned to the acquisition vehicle exceeds the amount of debt credit bid by the acquisition  vehicle or otherwise), such Obligations shall automatically be reassigned to the Lenders pro rata  and the Equity Interests and/or debt instruments issued by any acquisition vehicle on account of  the 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 9.10  Lender ERISA Matters..  (a) Each Lender (x) represents and  warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from  the date such Person became a Lender party hereto to the date such Person ceases being a Lender  party hereto, for the benefit of, the Agent and each Joint Lead Arranger and their respective  Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Parent Borrower or any  other Loan Party, that at least one of the following is and will be true:   (i) such Lender is not using “plan assets” (within the meaning of  Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect  to such Lender’s entrance into, participation in, administration of and  performance of the Advances, the Letters of Credit, the Commitments or this  Agreement,  (ii) the transaction exemption set forth in one or more PTEs, such as PTE  84-14 (a class exemption for certain transactions determined by independent  qualified professional asset managers), PTE 95-60 (a class exemption for certain  transactions involving insurance company general accounts), PTE 90-1 (a class  exemption for certain transactions involving insurance company pooled separate  accounts), PTE 91-38 (a class exemption for certain transactions involving bank  collective investment funds) or PTE 96-23 (a class exemption for certain  transactions determined by in-house asset managers), is applicable with respect to  such Lender’s entrance into, participation in, administration of and performance  of the Advances, the Letters of Credit, the Commitments and this Agreement,  (iii) (A) such Lender is an investment fund managed by a “Qualified  Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B)  such Qualified Professional Asset Manager made the investment decision on  behalf of such Lender to enter into, participate in, administer and perform the  Advances, the Letters of Credit, the Commitments and this Agreement, (C) the  entrance into, participation in, administration of and performance of the  Advances, the Letters of Credit, the Commitments and this Agreement satisfies  the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to  the best knowledge of such Lender, the requirements of subsection (a) of Part I of  PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation  in, administration of and performance of the Advances, the Letters of Credit, the  Commitments and this Agreement, or  

 

   196      (iv) such other representation, warranty and covenant as may be agreed in  writing between the Agent, in its sole discretion, and such Lender.  (b) In addition, unless either (1) sub-clause (i) in the immediately preceding  clause (a) is true with respect to a Lender or (2) a Lender has provided another  representation, warranty and covenant in accordance with sub-clause (iv) in the  immediately preceding clause (a), such Lender further (x) represents and warrants, as of  the date such Person became a Lender party hereto, to, and (y) covenants, from the date  such Person became a Lender party hereto to the date such Person ceases being a Lender  party hereto, for the benefit of, the Agent and not, for the avoidance of doubt, to or for the  benefit of Parent Borrower or any other Loan Party, that the Agent is not a fiduciary with  respect to the assets of such Lender involved in such Lender’s entrance into, participation  in, administration of and performance of the Advances, the Letters of Credit, the  Commitments and this Agreement (including in connection with the reservation or  exercise of any rights by the Agent under this Agreement, any Loan Document or any  documents related hereto or thereto).   As used in this Section, the following terms shall have the following meanings:  “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 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”.   “PTE” means a prohibited transaction class exemption issued by the U.S.  Department of Labor, as any such exemption may be amended from time to time.  SECTION 9.11  Collateral and Guaranty Matters.  Without limiting the provisions  of Section 9.09, each of the Lenders (including in its capacities as a potential Cash Management  Bank, a potential Hedge Bank and a potential Supply Chain Bank) and the Issuing Banks  irrevocably authorize the Agent, at its option and in its discretion,   (a) to release any Lien on any property granted to or held by the Agent under any  Loan Document (i) upon termination of the Aggregate Commitments and payment in full of all  Obligations (other than (A) contingent indemnification obligations and (B) obligations and  liabilities under Bank Product Documents, Hedging Obligations and Secured Supply Chain  Financings that are, in each case, not due and payable at such time) and the expiration or  termination of all Letters of Credit (other than Letters of Credit as to which other arrangements  satisfactory to the Agent and the applicable Issuing Banks shall have been made), (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 to a Person  that is not a Loan Party, (iii) that constitutes Excluded Property, or (iv) as provided in Section  

 

   197      7.01(q) and (v) if approved, authorized or ratified in writing in accordance with Section 10.01;  and  (b) to release any Guarantor from its obligations hereunder if such Person ceases to  be a Restricted Subsidiary as a result of a transaction permitted under the Loan Documents.   Upon request by the Agent at any time, the Majority Lenders will confirm in writing the  Agent’s authority to release its interest in particular types or items of property, or to release any  Guarantor from its obligations under its Guaranty pursuant to this Section 9.11.  In each case as  specified in this Section 9.11, the Agent will, at the Borrowers’ expense, execute and deliver to  the applicable Loan Party such documents as such Loan Party 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, or to release such  Guarantor from its obligations under the Guaranty, in each case in accordance with the terms of  the Loan Documents and this Section 9.11.  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 any  Loan Party 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 9.12  Bank Product Documents, Hedging Obligations and Secured  Supply Chain Financings.  No Cash Management Bank, Hedge Bank or Supply Chain Bank that  obtains the benefits of Section 8.02, any Guaranty or any Collateral by virtue of the provisions  hereof or any other Loan Document shall have any right to notice of any action or to consent to,  direct or object to any action hereunder or under any other Loan Document or otherwise in  respect of the Collateral (including the release or impairment of any Collateral) 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 IX 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, Obligations arising under Bank Product Documents, Hedging Obligations  or Secured Supply Chain Financings unless the Agent has received written notice of such  Obligations, together with such supporting documentation as the Agent may request, from the  applicable Cash Management Bank, Hedge Bank or Supply Chain Bank, as the case may be.   SECTION 9.13  Recovery of Erroneous Payments.  Without limitation of any  other provision in this Agreement, if at any time the Agent makes a payment hereunder in error  to any Lender Recipient Party, whether or not in respect of an Obligation due and owing by the  Borrowers at such time, where such payment is a Rescindable Amount, then in any such event,  each Lender Recipient Party receiving a Rescindable Amount severally agrees to repay to the  Agent within two (2) Business Days of demand the Rescindable Amount received by such  Lender Recipient Party in immediately available funds in the currency so received, with interest  thereon, for each day from and including the date such Rescindable Amount is received by it to  but excluding the date of payment 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. Each Lender Recipient Party irrevocably waives any and all defenses, including  

 

   198      any “discharge for value” (under which a creditor might otherwise claim a right to retain funds  mistakenly paid by a third party in respect of a debt owed by another) or similar defense to its  obligation to return any Rescindable Amount.  The Agent shall inform each Lender Recipient  Party promptly upon determining that any payment made to such Lender Recipient Party  comprised, in whole or in part, a Rescindable Amount.   ARTICLE X  MISCELLANEOUS  SECTION 10.01  Amendments, Etc.  (a) Lenders.  Except as is otherwise expressly provided in this Section 10.01,  no amendment or waiver of any provision of this Agreement, nor consent to any  departure by any Loan Party therefrom, shall in any event be effective unless the same  shall be in writing and signed by the Majority Lenders and acknowledged by the Agent,  provided, however, that (i) no amendment, waiver or consent shall, unless in writing and  signed by all the Lenders, do any of the following:  (A) waive any of the conditions  specified in Section 5.01, (B) change the percentage of the Commitments or of the  aggregate unpaid principal amount of the Advances, or the number of Lenders, which  shall be required for the Lenders or any of them to take any action hereunder, or the  definition of “Majority Lenders” hereunder, (C) amend this Section 10.01, (D) release (or  subordinate the Lien securing the Obligations on) all or substantially all of the Collateral,  (E) release all or substantially all of the value of the Guarantees provided by the Loan  Parties and (F) subordinate any Obligations in right of payment to any other  Indebtedness;  (ii) no amendment, waiver or consent shall, unless in writing and signed  by each Lender directly affected thereby, do any of the following:  (A) increase the  Commitment of such Lender, (B) reduce the principal of, or rate of interest (other than  default interest) on, the Advances made pursuant to Section 2.01 or any reimbursement  obligation in respect of any Letter of Credit or any fees or other amounts payable  hereunder to such Lender (other than any change in the Sustainability Schedule (except  (1) with respect to the amount by which the Applicable Margin or the Unused  Commitment Fee Rate may be reduced thereunder and (2) any change to the  Sustainability Table (as defined in the Sustainability Schedule), other than any change to  the Sustainability Table in accordance with Section 2(e) of the Sustainability Schedule as  in effect on the Restatement Date)), (C) postpone any date fixed for any payment of  principal of, or interest on, the Advances made pursuant to Section 2.01 or any  reimbursement obligation in respect of any Letter of Credit or any fees or other amounts  payable hereunder to such Lender, (D) change Section 4.03 or Section 8.02 and (E)  modify the definition of “Permitted Overadvance” so as to increase the amount thereof,  or, except as provided in such definition, the time period for which a Permitted  Overadvance may remain outstanding and (iii) no amendment, waiver or consent shall,  unless in writing and signed by each Lender affected thereby, do any of the following:  (A) increase the advance rate percentages applied to eligible assets included in the  Borrowing Base and (B) modify the definition of “Borrowing Base” or any component  thereof in a manner that would result in an increase in the amount of the Borrowing Base;  provided that this clause (B) shall not limit the Agent’s right to add, increase, eliminate or  

 

   199      reduce the amount of Reserves or exercise its Permitted Discretion with respect to such  matters as otherwise provided herein); provided, further, that any Loan Document may be  amended and waived with the consent of the Agent at the request of the Parent Borrower  without the need to obtain the consent of any other Lender if such amendment or waiver  is delivered in order (i) to comply with local Law or advice of local counsel, (ii) to cure  ambiguities or defects or (iii) to cause any Loan Document to be consistent with this  Agreement and the other Loan Documents.  In addition, this Agreement may be amended  as set forth in the Sustainability Schedule.  (b) Agent, Issuing Banks and Swing Line Lender.  No amendment, waiver or  consent given or effected pursuant to this Section 10.01 shall, unless in writing and  signed by the Agent, each Issuing Bank or the Swing Line Lender, as the case may be, in  addition to the Lenders required above to take such action, affect the rights, obligations or  duties of the Agent, such Issuing Bank or Swing Line Lender, as the case may be, under  this Agreement.  (c) Limitation of Scope.  All waivers and consents granted under this  Section 10.01 shall be effective only in the specific instance and for the specific purpose  for which given.  (d) Secured Obligations.  Notwithstanding anything to the contrary in this  Agreement or any other Loan Document, no provider or holder of any Bank Products  Obligations, Hedging Obligations or obligations in respect of Secured Supply Chain  Financings shall have any voting or approval rights hereunder (or be deemed a Lender)  solely by virtue of its status as the provider or holder of such agreements or products or  the Obligations owing thereunder, nor shall the consent of any such provider or holder be  required (other than in their capacities as Lenders, to the extent applicable) for any matter  hereunder or under any of the other Loan Documents, including as to any matter relating  to the Collateral or the release of Collateral or any Loan Party.   (e) Non-Consenting Lender.  If any Lender does not consent (a “Non- Consenting Lender”) to a proposed amendment, waiver, consent or release with respect to  any Loan Document that requires the consent of each Lender and that has been approved  by the Majority Lenders, Parent Borrower may replace such Non-Consenting Lender in  accordance with Section 10.12; provided that such amendment, waiver, consent or release  can be effected as a result of the assignment contemplated by such Section (together with  all other such assignments required by Parent Borrower to be made pursuant to this  paragraph).   SECTION 10.02  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 telecopier as follows, and all notices and other  

 

   200      communications expressly permitted hereunder to be given by telephone shall be made to  the applicable telephone number, as follows:  (i) if to the Parent Borrower, the Agent, an Issuing Bank or the Swing  Line Lender, to the address, telecopier number, electronic mail address or  telephone number specified for such Person on Schedule 10.02; and   (ii) if to any other Lender, to the address, telecopier number, electronic  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 Parent  Borrower).  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 telecopier 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).  (b) Electronic Communications.  Notices and other communications to the  Lender Parties hereunder may be delivered or furnished by electronic communication  (including e-mail and Internet or intranet websites) pursuant to procedures approved by  the Agent, provided that the foregoing shall not apply to notices to any Lender Party  pursuant to Article II if such Lender Party has notified the Agent that it is incapable of  receiving notices under such Article by electronic communication.  The Agent or the  Parent Borrower may, in its discretion, agree to accept notices and other communications  to it hereunder by electronic communications pursuant to procedures approved by it,  provided that approval of such procedures may be limited to particular notices or  communications.  Unless the Agent otherwise prescribes, (i) notices and other communications sent to an e- mail address shall be deemed received upon the sender’s receipt of an acknowledgement from  the intended recipient (such as by the “return receipt requested” function, as available, return e- mail or other written acknowledgement), provided that if such notice or other communication is  not sent during the normal business hours of the recipient, such notice or communication shall be  deemed to have been sent at the opening of business on the next business day for the recipient,  and (ii) notices or communications posted to an Internet or intranet website shall be deemed  received upon the deemed receipt by the intended recipient at its e-mail address as described in  the foregoing clause (i) of notification that such notice or communication is available and  identifying the website address therefor.  (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  

 

   201      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 Loan Party, any  Lender Party or any other Person for losses, claims, damages, liabilities or expenses of  any kind (whether in tort, contract or otherwise) arising out of the Parent 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, except  to the extent that such losses, claims, damages, liabilities or expenses resulted from the  gross negligence or willful misconduct of such Agent Party; provided, however, that in  no event shall any Agent Party have any liability to any Loan Party, any Lender Party or  any other Person for indirect, special, incidental, consequential or punitive damages (as  opposed to direct or actual damages).  (d) Change of Address, Etc.  Each of the Parent Borrower, the Agent, the  Issuing Banks and the Swing Line Lenders may change its address, telecopier or  telephone number for notices and other communications hereunder by notice to the other  parties hereto.  Each other Lender may change its address, telecopier or telephone  number for notices and other communications hereunder by notice to the Parent  Borrower, the Agent, the Issuing Banks and the Swing Line 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, telecopier number and  electronic mail address to which notices and other communications may be sent and (ii)  accurate wire instructions for such Lender.  Furthermore, each Public Lender agrees to  cause at least one 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 Requirement of 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 the  Parent Borrower or its securities for purposes of United States Federal or state securities  laws.  (e) Reliance by Agent and Lender Parties.  The Agent and the Lender Parties  shall be entitled to rely and act upon any notices (including telephonic notices,  Committed Advance Notices and Swing Line Advance Notices) purportedly given by or  on behalf of the Borrowers 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 indemnify the Agent, each Lender Party and  the Related Parties of each of them from all losses, costs, expenses and liabilities  

 

   202      resulting from the reasonable reliance by such Person on each notice purportedly given  by or on behalf of any Loan Party.  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 10.03  No Waiver; Remedies.  No failure on the part of any Lender  Party or the Agent to exercise, and no delay in exercising, any right hereunder shall operate as a  waiver thereof; nor shall any single or partial exercise of any such right preclude any other or  further exercise thereof or the exercise of any other right.  The remedies herein provided are  cumulative and not exclusive of any remedies provided by law.  SECTION 10.04  Costs and Expenses.  (a) Expenses.  The Borrowers agree to pay on demand all reasonable and  documented costs and expenses of the Agent and the Co-Sustainability Coordinators  incurred in connection with the preparation, execution, delivery, modification and  amendment of this Agreement, and the other documents to be delivered hereunder,  including, without limitation, the reasonable and documented fees and out-of-pocket  expenses of counsel for the Agent (and appropriate local counsel) with respect thereto  and with respect to advising the Agent as to its rights and responsibilities under this  Agreement.  The Borrowers further agree to pay on demand all costs and expenses of the  Agent, the Co-Sustainability Coordinators, each Issuing Bank, the Swing Line Lender  and each other Lender Party (including, without limitation, reasonable and documented  fees and expenses of counsel), incurred in connection with the enforcement (whether  through negotiations, legal proceedings or otherwise) of the Loan Documents, the Letters  of Credit, the documents delivered in connection with the Swing Line Advances and the  other documents to be delivered hereunder and thereunder.  Each of BofA Securities, Inc.  and Parent Borrower agree that this clause (a) shall supersede the expense reimbursement  obligations set forth in the Sustainability Structuring Agent Engagement Letter on the  Restatement Date.    (b) Breakage.  If any payment of principal of, or Conversion of, any Contract  Rate Loan is made other than on the last day of the Interest Period for such Advance, as a  result of a payment or Conversion pursuant to Sections 2.09(e), 2.10, 2.12, acceleration  of the maturity of the Advances pursuant to Section 8.01 or for any other reason, or by an  Eligible Assignee to a Lender other than on the last day of an Interest Period for such  Advance upon an assignment of rights and obligations under this Agreement pursuant to  Section 10.07 as a result of a demand by the Parent Borrower pursuant to  Section 10.07(a), or if any Loan Party fails for any reason to make any payment or  prepayment of an Advance for which a notice of prepayment was given or that is  otherwise required to be made, whether pursuant to Sections 2.06, 2.10, 8.01 or  otherwise, or if any Loan Party fails to make payment of any Advance or drawing under  any Letter of Credit (or interest due thereon) denominated in an Alternative Currency on  its scheduled due date or any payment thereof in a different currency, or upon any failure  by any Loan Party (for a reason other than the failure of such Lender to make an  Advance) to borrow, continue or convert any Loan other than an Index Rate Loan on the  date or in the amount notified by such Loan Party , the applicable Loan Party shall, upon  

 

   203      written demand by any Lender (with a copy of such demand to the Agent), pay to the  Agent for the account of such Lender any amounts required to compensate such Lender  for any additional losses, costs or expenses which it may reasonably incur as a result of  such payment or Conversion or such failure to pay or prepay, as the case may be,  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 any Lender to fund or maintain such Advance.  (c) Indemnification by the Parent Borrower.  The Loan Parties shall  indemnify the Agent (and any sub-agent thereof), each Co-Sustainability Coordinator,  each Lender Party, 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, direct or actual (as opposed to special, indirect, consequential  or punitive) damages, liabilities and related expenses (including the reasonable and  documented fees, charges and disbursements of any counsel for any Indemnitee),  incurred by any Indemnitee or asserted against any Indemnitee by any third party or by  the Parent Borrower or any other Loan Party arising out of, in connection with, or as a  result of (i) the execution or delivery of this Agreement, any other Loan Document or any  agreement or instrument contemplated hereby or thereby, the performance by the parties  hereto of their respective obligations hereunder or thereunder or the 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, (ii) any Advance or Letter of Credit or the use or proposed use of  the proceeds therefrom (including any refusal by any 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 Hazardous Substance on or from any property owned or  operated by the Parent Borrower or any of its Subsidiaries, or any liability under  Environmental Laws related in any way to the Parent 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 the Parent Borrower or any other Loan Party, 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 (x) are found in a final and nonappealable judgment by a court of  competent jurisdiction to have resulted from (I) the gross negligence or willful  misconduct of such Indemnitee or (II) such Indemnitee’s breach in bad faith of its  obligations hereunder or under any other Loan Document or (y) result from a proceeding  (other than a proceeding against an Indemnitee arising out of the Agent or any Lender  Party acting pursuant to this Agreement or in respect of the Revolving Credit Facility in  their capacities as such) solely between or among Indemnitees not arising from any act or  omission by any Loan Party.  This Section 10.04(c) shall not apply with respect to Taxes  other than any Taxes that represent losses, damages, liabilities, or expenses arising from  any non-Tax claim.  Each of BofA Securities, Inc. and Parent Borrower agree that this  clause (c) shall supersede the indemnification obligations set forth in the Sustainability  Structuring Agent Engagement Letter on the Restatement Date.    

 

   204      (d) Reimbursement by Lenders.  To the extent that the Parent Borrower for  any reason fails to indefeasibly pay any amount required under subsection (a) or (c) of  this Section to be paid by it to the Agent (or any sub-agent thereof), any Co-Sustainability  Coordinator, any Issuing Bank or any Related Party of any of the foregoing, each Lender  severally agrees to pay to the Agent (or any such sub-agent), such Co-Sustainability  Coordinator, such Issuing Bank or such Related Party, as the case may be, such Lender’s  Commitment Percentage (determined as of the time that the applicable unreimbursed  expense or indemnity payment is sought) of such unpaid amount, provided that the  unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as  the case may be, was incurred by or asserted against the Agent (or any such sub-agent) or  such Issuing Bank in its capacity as such, or against any Related Party of any of the  foregoing acting for the Agent (or any such sub-agent) or such Issuing Bank in  connection with such capacity.  The obligations of the Lenders under this subsection (d)  are several, and the failure of any Lender to fund its obligations hereunder shall not  relieve any other Lender of its obligation, but no Lender shall be responsible for the  failure of any other Lender to fund its obligations hereunder.  (e) Waiver of Consequential Damages, Etc.  To the fullest extent permitted by  applicable Law, no Loan Party shall assert, and each Loan Party hereby waives, any  claim against any Indemnitee, on any theory of liability, for special, indirect,  consequential or punitive damages (as opposed to direct or actual damages) arising out  of, in connection with, or as a result of, this Agreement, any other Loan Document or any  agreement or instrument contemplated hereby, the transactions contemplated hereby or  thereby, any 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 other than for direct  or actual damages resulting from the gross negligence or willful misconduct of such  Indemnitee as determined by a final judgment of a court of competent jurisdiction.  (f) The Borrowers hereby acknowledge that the funding method by each  Lender of its Advances hereunder shall be in the sole discretion of such Lender.    (g) Without prejudice to the survival of any other obligation of the Loan  Parties hereunder, the indemnities and obligations contained in this Section 10.04 shall  survive the payment in full of all the Obligations.  SECTION 10.05  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 8.01 to authorize the Agent to declare the Advances due and  payable pursuant to the provisions of Section 8.01 or to demand payment of (or cash  collateralization of) all then outstanding L/C Obligations, each Lender, each 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 applicable Law, to set off and apply any and all deposits (general or  special, time or demand, provisional or final, in whatever currency) at any time held and other  

 

   205      obligations (in whatever currency) at any time owing by such Lender, such Issuing Bank or any  such Affiliate to or for the credit or the account of any Loan Party against any and all of the  Obligations of such Loan Party now or hereafter existing under this Agreement or any other  Loan Document to such Lender Party, irrespective of whether or not such Lender Party shall  have made any demand under this Agreement or any other Loan Document and although such  obligations of such Loan Party may be contingent or unmatured or are owed to a branch or office  of such Lender Party different from the branch or office holding such deposit or obligated on  such indebtedness (it being understood and agreed that, notwithstanding anything in this  Agreement or any of the other Loan Documents to the contrary, accounts, deposits, sums,  securities or other property of any Foreign Subsidiary or of any Subsidiary of a Foreign  Subsidiary (including any Foreign Subsidiary that is a Loan Party) will not serve at any time,  directly or indirectly, to collateralize or otherwise offset the Obligations of the Parent Borrower  or any Domestic Subsidiary, and, in addition, unless otherwise agreed to by the Parent Borrower,  the accounts, deposits, sums, securities or other property of a Foreign Subsidiary or Subsidiary of  a Foreign Subsidiary will only serve to collateralize or offset the Obligations of another Foreign  Subsidiary or Subsidiary of a Foreign Subsidiary that is a Borrower and is not a United States  Person for U.S. federal income tax purposes if such former Foreign Subsidiary or Subsidiary of a  Foreign Subsidiary is owned by such latter Foreign Subsidiary or Subsidiary of a Foreign  Subsidiary that is a Borrower).  The rights of each Lender, each Issuing Bank and their  respective Affiliates under this Section are in addition to other rights and remedies (including  other rights of setoff) that such Lender, such Issuing Bank or their respective Affiliates may  have.  Each Lender and each Issuing Bank agrees to notify the Parent Borrower and the Agent  promptly after any such setoff and application, provided that the failure to give such notice shall  not affect the validity of such setoff and application.  SECTION 10.06  Binding Effect.  This Agreement shall become effective when it  shall have been executed by each Loan Party to be a party hereto on the date hereof, each Issuing  Bank to be a party hereto on the date hereof, and the Agent and when the Agent shall have been  notified by each Lender that such Lender has executed it and thereafter shall be binding upon and  inure to the benefit of each Loan Party, each Issuing Bank, the Agent and each Lender and their  respective successors and assigns, except that no Loan Party shall have the right to assign its  respective rights hereunder or any interest herein without the prior written consent of the  Lenders.  SECTION 10.07  Assignments and Participations.  (a)  Successors and Assigns  Generally.  The provisions of this Agreement shall be binding upon and inure to the benefit of  the parties hereto and their respective successors and assigns permitted hereby, except that  neither the Parent Borrower nor any other Loan Party 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 Section 10.07(b), (ii) by way of  participation in accordance with the provisions of Section 10.07(d), or (iii) by way of pledge or  assignment of a security interest subject to the restrictions of Section 10.07(f) (and any other  attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this  Agreement, expressed or implied, shall be construed to confer upon any Person (other than the  parties hereto, their respective successors and assigns permitted hereby, Participants to the extent  provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the  

 

   206      Related Parties of each of the Agent and the Lender Parties) any legal or equitable right, remedy  or claim under or by reason of this Agreement.  (b) Assignments by Lenders.  Any Lender may at any time assign to one or more  assignees all or a portion of its rights and obligations under this Agreement (including all or a  portion of its Commitment(s) and the Advances (including for purposes of this Section 10.07(b),  participations in L/C Obligations and in Swing Line Advances) at the time owing to it); provided  that any such assignment shall be subject to the following conditions:  (i) Minimum Amounts.  (A) in the case of an assignment of the entire remaining amount of the  assigning Lender’s Commitment under any Facility and the Advances at the time  owing to it under such Facility or in the case of an assignment to a Lender, an  Affiliate of a Lender or an Approved Fund, no minimum amount need be  assigned; and  (B) in any case not described in subsection (b)(i)(A) of this Section,  the aggregate amount of the Commitment (which for this purpose includes  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 Acceptance  with respect to such assignment is delivered to the Agent or, if “Trade Date” is  specified in the Assignment and Acceptance, as of the Trade Date, shall not be  less than $10,000,000 unless each of the Agent and, so long as no Event of  Default has occurred and is continuing, Parent Borrower otherwise consents (each  such consent not to be unreasonably withheld or delayed);  (ii) Proportionate Amounts.  Each partial assignment shall be made as an  assignment of a proportionate part of all the assigning Lender’s rights and obligations  under this Agreement with respect to the Advances or the Commitment assigned, except  that this clause (ii) shall not (A) apply to the Swing Line Lender’s rights and obligations  in respect of Swing Line Advances or (B) prohibit any Lender from assigning all or a  portion of its rights and obligations among separate Facilities on a non-pro rata basis;  (iii) Required Consents.  No consent shall be required for any assignment  except to the extent required by subsection (b)(i)(B) of this Section and, in addition:  (1) the consent of the Parent Borrower (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 Parent Borrower 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;   (B) the consent of the Agent (such consent not to be unreasonably  withheld or delayed) shall be required for assignments in respect of any  

 

   207      Revolving Credit Commitment if such assignment is to a Person that is not a  Lender with a Commitment in respect of the applicable Facility, an Affiliate of  such Lender or an Approved Fund with respect to such Lender;  (C) the consent of each Issuing Bank (such consent not to be  unreasonably withheld or delayed) shall be required for any assignment that  increases the obligation of the assignee to participate in exposure under one or  more Letters of Credit (whether or not then outstanding); and  (D) the consent of the Swing Line Lender (such consent not to be  unreasonably withheld or delayed) shall be required for any assignment in respect  of the Revolving Credit Facility.  (iv) Assignment and Acceptance.  The parties to each assignment shall execute  and deliver to the Agent an Assignment and Acceptance, together with 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 Borrower.  Except as otherwise permitted pursuant to  the definition of Eligible Assignee, no such assignment shall be made to Parent Borrower  or any of the Parent Borrower’s Affiliates or Subsidiaries.  (vi) No Assignment to Natural Persons.  No such assignment shall be made to  (A) 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 (A), or (B) a natural person (or to a holding company, investment vehicle or trust  for, or owned and operated for the primary benefit of a natural person).  Subject to acceptance and recording thereof by the Agent pursuant to subsection (c) of this  Section, from and after the effective date specified in each Assignment and Acceptance, the  assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned  by such Assignment and Acceptance, 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 Acceptance, be released from its obligations under this Agreement (and, in  the case of an Assignment and Acceptance 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, 4.02 and 10.03 with respect to facts and  circumstances occurring prior to the effective date of such assignment.  Upon request, the  applicable Loan Party (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 Section 10.07(d).  (c) Register.  The Agent, acting solely for this purpose as a non-fiduciary agent of the  Parent Borrower (and such agency being solely for tax purposes), shall maintain at the Agent’s  

 

   208      Office a copy of each Assignment and Acceptance delivered to it and a register for the  recordation of the names and addresses of the Lenders, and the Commitments of, and principal  and interest amounts of the Advances and L/C Obligations 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 Parent Borrower, 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, notwithstanding notice to the contrary.  The  Register shall be available for inspection by the Parent Borrower 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 Parent Borrower, the Agent, the Swingline Lender or any Issuing Bank 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 the  Parent Borrower or any of the Parent 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 Obligations and/or Swing Line 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 Parent Borrower, the Agent, the Lender Parties shall continue to deal solely and  directly with such Lender in connection with such Lender’s rights and obligations under this  Agreement.  Any agreement or instrument pursuant to which a Lender sells such a participation  shall provide that such Lender shall retain the sole right to enforce this Agreement and to  approve any amendment, modification or waiver of any provision of this Agreement; provided  that such agreement or instrument may provide that such Lender will not, without the consent of  the Participant, agree to any amendment, waiver or other modification described in clause (i) of  the proviso to Section 10.01 that affects such Participant.  The Parent Borrower agrees that each  Participant shall be entitled to the benefits of Sections 2.11 and 4.02 subject to the requirements  and limitations therein, including the requirements under Section 4.02(e) (it being understood  that the documentation required under Section 4.02(e) shall be delivered solely to the  participating Lender) to the same extent as if it were a Lender and had acquired its interest by  assignment pursuant to Section 10.07(b); provided that such Participant (A) shall be subject to  the provisions of Section 10.12 as if it were a Lender, and (B) shall not be entitled to receive any  greater payment under Sections 2.11 or 4.02 with respect to any participation than its  participating Lender would have been entitled to receive, except to the extent that such  entitlement to receive greater payment results from a Change in Law after the participant  acquired the participation.  To the extent permitted by law, each Participant also shall be entitled  to the benefits of Section 10.05 as though it were a Lender, provided such Participant shall be  subject to Section 4.03 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 Parent Borrower (and such agency being solely for tax purposes), maintain  a register on which it enters the name and address of each Participant and the principal amounts  (and related interest amounts) 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  

 

   209      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) and proposed Section 1.163-5  of the United States Treasury Regulations.  The entries in the Participant Register shall be  conclusive absent manifest error, and such Lender shall treat each Person whose name is  recorded in the Participant Register as the owner of such participation for all purposes of this  Agreement, notwithstanding any notice to the contrary.  For the avoidance of doubt, the Agent  (in its capacity as Agent) shall have no responsibility for maintaining a Participant Register.  (e) [Reserved].  (f) Certain Pledges.  Any Lender may at any time pledge or assign a security interest  in all or any portion of its rights under this Agreement (including under its Note, 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.  (g) Resignation as Issuing Bank or Swing Line Lender after Assignment.   Notwithstanding anything to the contrary contained herein, if at any time a Lender that is, or has  an Affiliate or branch that is, an Issuing Bank or the Swing Line Lender (a “Fronting Bank”)  assigns all of its Revolving Credit Commitment and Revolving Credit Advances pursuant to  Section 10.07(b), such Fronting Bank may, (i) upon 30 days’ notice to the Parent Borrower and  the Lenders, resign as Issuing Bank and/or (ii) upon 30 days’ notice to the Parent Borrower,  resign as Swing Line Lender.  In the event of any such resignation as Issuing Bank or Swing  Line Lender, the Parent Borrower shall be entitled to appoint from among the Lenders a  successor Issuing Bank or Swing Line Lender hereunder; provided, however, that no failure by  the Parent Borrower to appoint any such successor shall affect the resignation of the applicable  Fronting Bank as Issuing Bank or Swing Line Lender, as the case may be.  If a Fronting Bank  resigns as Issuing Bank, it shall retain all the rights, powers, privileges and duties of an 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 Obligations with respect thereto (including the right to  require the Lenders to make Index Rate Loans or fund risk participations in Unreimbursed  Amounts pursuant to Section 2.04(c)).  If a Fronting Bank resigns as Swing Line Lender, it shall  retain all the rights of the Swing Line Lender provided for hereunder with respect to Swing Line  Advances made by it and outstanding as of the effective date of such resignation, including the  right to require the Lenders to make Index Rate Loans or fund risk participations in outstanding  Swing Line Advances pursuant to Section 2.03(c).  Upon the appointment and acceptance of  such appointment of a successor Issuing Bank and/or Swing Line 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 Swing Line 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 the applicable Fronting Bank  to effectively assume the obligations of such Fronting Bank with respect to such Letters of  Credit.  

 

   210      (h) If any Lender requests any payment from any Loan Party under Section 2.08(d),  2.11 or 4.02, or if any Lender is a Defaulting Lender, then, subject to Section 10.07(a) and  provided no Default or Event of Default shall have occurred and be continuing, the Parent  Borrower may, at its sole expense and effort, upon notice to such Lender and the Agent, require  such Lender to assign and delegate, without recourse (in accordance with and subject to the  restrictions contained in, and consents required by, Section 10.07), all of its interests, rights and  obligations under this Agreement and the related Loan Documents to an assignee that shall  assume such obligations (which assignee may be another Lender, if a Lender accepts such  assignment), provided that:    (ii) the Parent Borrower shall have paid to the Agent the assignment fee specified in  Section 10.07(b);  (iii) such Lender shall have received payment of an amount equal to 100% of the  outstanding principal of its Advances and L/C 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 10.04(b)) from the assignee (to the extent of such outstanding  principal and accrued interest and fees) or the Parent Borrower (in the case of all other amounts);  (iv) 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 4.02, such assignment will  result in a reduction in such compensation or payments thereafter; and  (v) such assignment does not conflict with applicable Requirements of Law.  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  Parent Borrower to require such assignment and delegation cease to apply..   SECTION 10.08  Payments Set Aside.  To the extent that any payment by or on  behalf of the Parent Borrower is made to the Agent or any Lender Party, or the Agent, any  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 or a transfer at undervalue, set aside or required (including pursuant to any  settlement entered into by the Agent or such Lender Party in its discretion) to be repaid to a  trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief  Law or otherwise, then (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 each 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 applicable Overnight  Rate from time to time in effect, in the applicable currency of such recovery or payment.  The  obligations of the Lender Parties under clause (b) of the preceding sentence shall survive the  payment in full of the Obligations and the termination of this Agreement.  

 

   211      SECTION 10.09  Severability of Provisions.  Any provision of this Agreement  which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be  ineffective to the extent of such prohibition or unenforceability without invalidating the  remaining provisions hereof or affecting the validity or enforceability of such provision in any  other jurisdiction.  SECTION 10.10  Independence of Provisions.  All agreements and covenants  hereunder shall be given independent effect such that if a particular action or condition is  prohibited by the terms of any such agreement or covenant, the fact that such action or condition  would be permitted within the limitations of another agreement or covenant shall not be  construed as allowing such action to be taken or condition to exist.  SECTION 10.11  Confidentiality.  Each Lender, each Issuing Bank, the Agent  and each Co-Sustainability Coordinator (each a “Recipient”) agrees that it will not disclose to  any third party any Confidential Information provided to it by the Parent Borrower; except that  Confidential Information may be disclosed (a) to its Affiliates and to its Related Parties (it being  understood that the Persons to whom such disclosure is made will be informed of the  confidential nature of such Confidential Information and instructed to keep such Confidential  Information confidential), (b) to the extent required or requested by any regulatory authority  purporting to have jurisdiction over such Person or its Related Parties (including any self- regulatory authority, such as the National Association of Insurance Commissioners), (c) to the  extent required by applicable Laws or regulations or by any subpoena or similar legal process,  (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or  under any other Loan Document or any action or proceeding relating to this Agreement or any  other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an  agreement containing provisions substantially the same as those of this Section, to (i) any  assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and  obligations under this Agreement or (ii) any actual or prospective party (or its Related Parties) to  any swap, derivative or other transaction under which payments are to be made by reference to  the Borrowers and their obligations, this Agreement or payments hereunder, (g) on a confidential  basis to (i) any rating agency in connection with rating the Parent Borrower or its Subsidiaries or  the credit facilities provided hereunder or (ii) the CUSIP Service Bureau or any similar agency in  connection with the issuance and monitoring of CUSIP numbers or other market identifiers with  respect to the credit facilities provided hereunder, (h) with the consent of the Parent Borrower or  (i) to the extent such Information (x) becomes publicly available other than as a result of a  breach of this Section or (y) becomes available to the Agent, any Co-Sustainability Coordinator,  any Lender, any Issuing Bank or any of their respective Affiliates on a nonconfidential basis  from a source other than the Parent Borrower.  In addition, the Agent, any Co-Sustainability  Coordinator 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, the Co-Sustainability Coordinators and the Lenders in connection  with the administration of this Agreement, the other Loan Documents, and the Commitments).  SECTION 10.12  Replacement of Lenders.  If any Lender is a Defaulting Lender  or a Non-Consenting Lender, then the Parent Borrower may, at its sole expense and effort, upon  notice to such Lender and the Agent, require such Lender to assign and delegate, without  recourse (in accordance with and subject to the restrictions contained in, and consents required  

 

   212      by, Section 10.07), all of its interests, rights and obligations under this Agreement and the related  Loan Documents to an assignee that shall assume such obligations (which assignee may be  another Lender, if a Lender accepts such assignment), provided that:  (a) Parent Borrower shall have paid to the Agent the assignment fee specified  in Section 10.07;  (b) such Lender shall have received payment of an amount equal to the  outstanding principal of its 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 2.11) 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); and  (c) 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  Parent Borrower to require such assignment and delegation cease to apply.   SECTION 10.13  Headings.  Article and Section headings in this Agreement are  included for convenience of reference only and shall not constitute a part of this Agreement for  any other purpose.  SECTION 10.14  Entire Agreement.  This Agreement sets forth the entire  agreement of the parties with respect to its subject matter and, except for the letter agreements  referred to in Sections 2.04(i) and 2.05(b), supersedes all previous understandings, written or  oral, in respect thereof.  SECTION 10.15  Execution in Counterparts.  This Agreement may be executed in  any number of counterparts and by different parties hereto in separate counterparts, each of  which when so executed shall be deemed to be an original and all of which taken together shall  constitute one and the same agreement.  SECTION 10.16  Consent to Jurisdiction.  (a)  Each of the parties hereto hereby  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 any party hereto 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 hereby irrevocably  agrees, to the fullest extent each may effectively do so, that each will not assert any defense that  such courts do not have subject matter or personal jurisdiction of such action or proceeding or  over any party hereto.  Each of the parties hereby irrevocably consents to the service of copies of  

 

   213      the summons and complaint and any other process which may be served in any such action or  proceeding by certified mail, return receipt requested, or by delivering of a copy of such process  to such party at its address specified in Section 10.02 or by any other method permitted by law.   Each of the parties hereby agrees that a final judgment in any such action or proceeding shall be  conclusive and may be enforced in other jurisdictions by suit on the judgment or by any other  manner provided by law.  Each Loan Party (other than the Parent Borrower) hereby agrees that  service of process may be made upon the Parent Borrower and each other Loan Party hereby  irrevocably appoints the Parent Borrower its authorized agent to accept such service of process,  and agrees that the failure of the Parent Borrower to give any notice of any such service shall not  impair or affect the validity of such service or of any judgment rendered in any action or  proceeding based thereon.  To the extent that any Loan Party has or hereafter may acquire any  immunity from jurisdiction of any court or from any legal process (whether through service or  notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise)  with respect to itself or its property, each Loan Party hereby irrevocably waives such immunity  in respect of its obligations under this Agreement.  (b) Nothing in this Section 10.16 shall affect the right of any of the parties  hereto to serve legal process in any other manner permitted by law or affect the right of  any of the parties to bring any action or proceeding against any of the parties or their  property in the courts of other jurisdictions.  SECTION 10.17  GOVERNING LAW.  THIS AGREEMENT SHALL BE  GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE  STATE OF NEW YORK, EXCEPT, IN THE CASE OF ARTICLE III, TO THE EXTENT  SUCH LAWS ARE INCONSISTENT WITH THE UCP.  SECTION 10.18  USA PATRIOT Act.  Each Lender that is subject to the Act (as  hereinafter defined) and the Agent (for itself and not on behalf of any Lender) hereby notifies the  Parent Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L.  107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record  information that identifies each Loan Party, which information includes the name and address of  each Loan Party and other information that will allow such Lender or the Agent, as applicable, to  identify each Loan Party in accordance with the Act.  The Borrowers shall, promptly following a  request by the Agent or any Lender, provide all documentation and other information that the  Agent or such Lender requests in order to comply with its ongoing obligations under applicable  “know your customer” an anti-money laundering rules and regulations, including the Act and the  Beneficial Ownership Regulation.  SECTION 10.19  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), the Parent  Borrower and each other Loan Party acknowledges and agrees that: (i) (A) the arranging and  other services regarding this Agreement provided by the Agent, the Co-Sustainability  Coordinators, the Joint Lead Arrangers and the Lenders are arm’s-length commercial  transactions between the Parent Borrower, each other Loan Party and their respective Affiliates,  on the one hand, and the Agent, Co-Sustainability Coordinators, the Joint Lead Arrangers and  the Lenders, on the other hand, (B) each of the Parent Borrower and the other Loan Parties has  

 

   214      consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed  appropriate, and (C) the Parent Borrower and each other Loan Party is capable of evaluating, and  understands and accepts, the terms, risks and conditions of the transactions contemplated hereby  and by the other Loan Documents; (ii) (A) the Agent, each Co-Sustainability Coordinator , each  Joint Lead Arranger 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 the Parent Borrower, any other Loan Party or any of  their respective Affiliates, or any other Person and (B) none of the Agent, any Co-Sustainability  Coordinator, any Joint Lead Arranger or any Lender has any obligation to the Parent Borrower,  any other Loan Party 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 (iii) the Agent, the Co-Sustainability Coordinators, the Joint Lead Arrangers and  the Lenders and their respective Affiliates may be engaged in a broad range of transactions that  involve interests that differ from those of the Parent Borrower, the other Loan Parties and their  respective Affiliates, and none of the Agent, any Co-Sustainability Coordinator, any Joint Lead  Arranger or any Lender has any obligation to disclose any of such interests to the Parent  Borrower, any other Loan Party or any of their respective Affiliates.  To the fullest extent  permitted by law, each of the Parent Borrower and the other Loan Parties hereby waives and  releases any claims that it may have against the Agent, the Co-Sustainability Coordinators, the  Joint Lead Arrangers and the Lenders with respect to any breach or alleged breach of agency or  fiduciary duty in connection with any aspect of any transaction contemplated hereby.  SECTION 10.20  Judgment Currency.  If, for the purposes of obtaining judgment  in any court, it is necessary to convert a sum due hereunder or any other Loan Document in one  currency into another currency, the rate of exchange used shall be that at which in accordance  with normal banking procedures the Agent could purchase the first currency with such other  currency on the Business Day preceding that on which final judgment is given.  The obligation  of each Loan Party in respect of any such sum due from it to the Agent or the Lenders hereunder  or under the other Loan Documents shall, notwithstanding any judgment in a currency (the  “Judgment Currency”) other than that in which such sum is denominated in accordance with the  applicable provisions of this Agreement (the “Agreement Currency”), be discharged only to the  extent that on the Business Day following receipt by the Agent of any sum adjudged to be so due  in the Judgment Currency, the Agent may in accordance with normal banking procedures  purchase the Agreement Currency with the Judgment Currency.  If the amount of the Agreement  Currency so purchased is less than the sum originally due to the Agent from any Loan Party in  the Agreement Currency, the Parent Borrower agrees, as a separate obligation and  notwithstanding any such judgment, to indemnify the Agent or the Person to whom such  obligation was owing against such loss.  If the amount of the Agreement Currency so purchased  is greater than the sum originally due to the Agent in such currency, the Agent agrees to return  the amount of any excess to the Parent Borrower (or to any other Person who may be entitled  thereto under applicable Law).  SECTION 10.21  Electronic Execution of Assignments and Certain Other  Documents .  The words “execute,” “execution,” “signed,” “signature,” and words of like import  in or related to any document to be signed in connection with this Agreement and the  transactions contemplated hereby (including without limitation Assignment and Assumptions,  amendments or other modifications, Committed Advance Notices, Swing Line Advance Notices,  

 

   215      waivers and consents) shall be deemed to include electronic signatures, the electronic matching  of assignment terms and contract formations on electronic platforms approved by the Agent or  the BofA Securities, Inc., in its capacity as a Co-Sustainability Coordinator, as applicable, or the  keeping of records in electronic form, each of which shall be of the same legal effect, validity or  enforceability as a manually executed signature or the use of a paper-based recordkeeping  system, as the case may be, to the extent and as provided for in any applicable Law, including  the Federal Electronic Signatures in Global and National Commerce Act, the New York State  Electronic Signatures and Records Act, or any other similar state laws based on the Uniform  Electronic Transactions Act or other similar applicable Laws including the Personal Information  Protection and Electronic Documents Act (Canada) and the Electronic Commerce Act, 2000  (Ontario); provided that notwithstanding anything contained herein to the contrary, neither  the  Agent nor BofA Securities, Inc., in its capacity as a Co-Sustainability Coordinator, is under any  obligation to agree to accept electronic signatures in any form or in any format unless expressly  agreed to by the Agent or BofA Securities, Inc., in its capacity as a Co-Sustainability  Coordinator, as applicable, pursuant to procedures approved by it.   SECTION 10.22  Acknowledgement and Consent to Bail-In of Affected Financial  Institutions.  Solely to the extent any Lender or Issuing Bank that is an Affected 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  Affected Financial Institution arising under any Loan Document, to the extent such liability is  unsecured, may be subject to the Write-Down and Conversion Powers of the applicable  Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:   (a) the application of any Write-Down and Conversion Powers by the  applicable Resolution Authority to any such liabilities arising hereunder which may be payable  to it by any Lender or Issuing Bank that is an Affected 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 Affected 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 the applicable Resolution Authority.  SECTION 10.23  WAIVER OF JURY TRIAL.  EACH OF THE LOAN  PARTIES, THE AGENT, THE LENDERS AND EACH ISSUING BANK HEREBY  IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL  RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM  

 

   216      (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR  RELATING TO THIS AGREEMENT, THE ADVANCES OR THE LETTERS OF CREDIT,  OR THE ACTIONS OF THE AGENT OR ANY LENDER PARTY IN CONNECTION WITH  THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT  THEREOF.  SECTION 10.24  Acknowledgement 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):  (a) In the event a Covered Entity that is party to a Supported QFC (each, a  “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution  Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support  (and any interest and obligation in or under such Supported QFC and such QFC Credit  Support, and any rights in property securing such Supported QFC or such QFC Credit  Support) from such Covered Party will be effective to the same extent as the transfer  would be effective under the U.S. Special Resolution Regime if the Supported QFC and  such QFC Credit Support (and any such interest, obligation and rights in property) were  governed by the laws of the United States or a state of the United States. In the event a  Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a  proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan  Documents that might otherwise apply to such Supported QFC or any QFC Credit  Support that may be exercised against such Covered Party are permitted to be exercised  to no greater extent than such Default Rights could be exercised under the U.S. Special  Resolution Regime if the Supported QFC and the Loan Documents were governed by the  laws of the United States or a state of the United States. Without limitation of the  foregoing, it is understood and agreed that rights and remedies of the parties with respect  to a Defaulting Lender shall in no event affect the rights of any Covered Party with  respect to a Supported QFC or any QFC Credit Support.     (b) As used in this Section 10.24, the following terms have the following  meanings:      “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.      “Covered Entity” means any of the following:  (i) a “covered entity” as that term is  defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank”  as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii)  

 

   217      a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R.  § 382.2(b).     “Default Right” has the meaning assigned to that term in, and shall be interpreted  in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.     “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).    SECTION 10.25  Canadian Anti-Money Laundering Legislation.  If the Agent has  ascertained the identity of any Loan Party or any authorized signatories of any Loan Party for the  purposes of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada)  and other anti-terrorism laws and “know your client” policies, regulations, laws or rules  applicable in Canada (the Proceeds of Crime (Money Laundering) and Terrorist Financing Act  (Canada) and other such anti-terrorism laws, applicable policies, regulations, laws, or rules in  Canada, collectively, including any guidelines or orders thereunder, “AML Legislation”), then  the Agent:  (a) shall be deemed to have done so as an agent for each Lender and this  Agreement shall constitute a “written agreement” in such regard between each Lender  and the Agent within the meaning of the applicable AML Legislation; and  (b) shall provide to the Lenders, copies of all information obtained in such  regard without any representation or warranty as to its accuracy or completeness.  Notwithstanding the preceding sentence and except as may otherwise be agreed in writing, each  Lender agrees that the Agent has no obligation to ascertain the identity of the Loan Parties or any  authorized signatories of the Loan Parties on behalf of any Lender, or to confirm the  completeness or accuracy of any information it obtains from any Loan Party or any such  authorized signatory in doing so.  [The remainder of this page intentionally left blank.]  

 

  [Signature Page to Credit Agreement]      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be  executed by their respective officers thereunto duly authorized, as of the date first above written.      THE GAP, INC.      By:  /s/ Katrina O’Connell  Name:  Katrina O’Connell   Title:    Executive Vice President and Chief  Financial Officer        

 

  [Signature Page to Credit Agreement]      ATHLETA LLC  BANANA REPUBLIC, LLC  OLD NAVY, LLC  GAP (CANADA) INC.  OLD NAVY (CANADA) INC., as Borrowers      By:  /s/ Katrina O’Connell  Name:  Katrina O’Connell   Title:    Executive Vice President and Chief  Financial Officer          

 

  [Signature Page to Credit Agreement]      ATHLETA (ITM) INC.  ATHLETA, INC.  BANANA REPUBLIC (APPAREL), LLC  BANANA REPUBLIC (ITM) INC.  DIRECT CONSUMER SERVICES, LLC  GAP (APPAREL), LLC  GAP (ITM) INC.  GAP INTERNATIONAL SALES, INC.  GAP INTERNATIONAL SOURCING  (AMERICAS) LLC  GAP INTERNATIONAL SOURCING  (CALIFORNIA), LLC  GAP INTERNATIONAL SOURCING (JV), LLC  GAP INTERNATIONAL SOURCING (U.S.A.)  INC.  GAP INTERNATIONAL SOURCING, INC.  GAP (PUERTO RICO), INC.  GPS CONSUMER DIRECT, INC.  GPS CORPORATE FACILITIES, INC.  GPS REAL ESTATE, INC.  GPS SERVICES, INC.  GPS STRATEGIC ALLIANCES LLC  GPSDC (NEW YORK) INC.  MB 550 TFB, LLC  OLD NAVY (APPAREL), LLC  OLD NAVY (ITM) INC.  OLD NAVY INTERNATIONAL SOURCING,  INC., as Guarantors      By:  /s/ Katrina O’Connell  Name:  Katrina O’Connell   Title:    Executive Vice President and Chief  Financial Officer        

 

  [Signature Page to Credit Agreement]      THE AGENT:    BANK OF AMERICA, N.A.  By:   /s/ Joseph Burt  Name:  Joseph Burt  Title:   Senior Vice President        

 

  [Signature Page to Credit Agreement]      THE LENDERS:    BANK OF AMERICA, N.A.  By:   /s/ Joseph Burt  Name:  Joseph Burt  Title:   Senior Vice President         BANK OF AMERICA, N.A. (acting through its  Canada branch)  By:   /s/ Sylwia Durkiewicz  Name:  Sylwia Durkiewicz  Title:   Vice President           

 

  [Signature Page to Credit Agreement]      THE ISSUING BANKS:    BANK OF AMERICA, N.A.  By:   /s/ Joseph Burt  Name:  Joseph Burt  Title:   Senior Vice President              

 

  [Signature Page to Credit Agreement]      THE SWING LINE LENDER:  BANK OF AMERICA, N.A.  By:   /s/ Joseph Burt  Name:  Joseph Burt  Title:   Senior Vice President        BANK OF AMERICA, N.A. (acting through its  Canada branch)  By:   /s/ Sylwia Durkiewicz  Name:  Sylwia Durkiewicz  Title:   Vice President           

 

   [Signature Page to Credit Agreement]    JPMORGAN CHASE BANK, N.A., as Lender  By:   /s/ Joon Hur  Name:  Joon Hur  Title:   Executive Director      

 

   [Signature Page to Credit Agreement]    JPMORGAN CHASE BANK, N.A., as Issuing  Bank  By:   /s/ Joon Hur  Name:  Joon Hur  Title:   Executive Director      

 

   [Signature Page to Credit Agreement]    Citibank, N.A., as a Lender and Issuing Bank  By:   /s/ Michelle Pratt  Name:  Michelle Pratt  Title:   Vice President     

 

   [Signature Page to Credit Agreement]    HSBC Bank USA, N.A., as a Lender and Issuing  Bank  By:   /s/ James Smith  Name:  James Smith  Title:   VP, Global Relationship Manager     

 

   [Signature Page to Credit Agreement]    MORGAN STANLEY BANK, N.A., as a Lender  and Issuing Bank  By:   /s/ Michelle King  Name:  Michelle King  Title:   Authorized Signatory     

 

   [Signature Page to Credit Agreement]    MUFG Union Bank, N.A., as a Lender and Issuing  Bank  By:   /s/ John Eissele  Name:  John Eissele  Title:   Managing Director     

 

   [Signature Page to Credit Agreement]    Sumitomo Mitsui Banking Corporation, as a Lender  By:   /s/ Benjamin C. Gent  Name:  Benjamin C. Gent  Title:   Executive Director               

 

   [Signature Page to Credit Agreement]    U.S. Bank National Association, as a Lender   By:   /s/ Nykole Hanna  Name:  Nykole Hanna  Title:   Authorized Signatory        U.S. Bank National Association, acting through its  Canada Branch, as a Lender   By:   /s/ Nykole Hanna  Name:  Nykole Hanna  Title:   Authorized Signatory        

 

   [Signature Page to Credit Agreement]    WELLS FARGO BANK, NATIONAL  ASSOCIATION, as a Lender   By:   /s/ Paul Steffens  Name:  Paul Steffens  Title:   Assistant Vice President     

 

   [Signature Page to Credit Agreement]    The Bank of Nova Scotia, as a Lender   By:   /s/ Sarah Shaikh  Name:  Sarah Shaikh  Title:   Managing Director     

 

   [Signature Page to Credit Agreement]    Deutsche Bank AG New York Branch, as a Lender   By:   /s/ Jonathan Lidz  Name:  Jonathan Lidz  Title:   Director        By:   /s/ Leonardo Melhem  Name:  Leonardo Melhem  Title:   Director     

 

   [Signature Page to Credit Agreement]      GOLDMAN SACHS BANK USA   By:   /s/ Ananda DeRoche  Name:  Ananda DeRoche  Title:   Authorized Signatory    

 

  A-1-1   Form of Committed Advance Notice     EXHIBIT A-1    FORM OF COMMITTED ADVANCE NOTICE    Date:  ___________, 20__1  To: Bank of America, N.A., as Agent  Ladies and Gentlemen:  Reference is made to that certain Fourth Amended and Restated Revolving Credit  Agreement, dated as of July 13, 2022 (as amended, restated, amended and restated,  supplemented or otherwise modified from time to time, the “Agreement;” the terms defined  therein being used herein as therein defined), among The Gap, Inc., a Delaware corporation  (“Parent Borrower”), certain of the Parent Borrower’s direct or indirect wholly-owned domestic  subsidiaries from time to time party thereto, as borrowers (collectively referred to herein as the  “U.S. Borrowers” and each, individually, as a “U.S. Borrower”), Gap (Canada) Inc., a Canadian  corporation, Old Navy (Canada) Inc., a Canadian corporation, certain of the Parent Borrower’s  other direct or indirect wholly-owned subsidiaries incorporated or organized under the laws of  Canada or a province or territory thereof from time to time party thereto, as borrowers  (collectively referred to herein as the “Canadian Borrowers” and each, individually, as a  “Canadian Borrower” and together with the U.S. Borrowers, collectively, referred to herein as  “Borrowers” and each, individually, as a “Borrower”), the other Loan Parties from time to time  party thereto, the Lenders from time to time party thereto, the Issuing Banks and Bank of  America, N.A., as administrative agent and collateral agent (together with any permitted  successor in such capacity, the “Agent”).  The undersigned hereby requests (select one):    A Revolving Credit Borrowing     A conversion of Revolving Credit Advances   A Continuation of Contract Rate Loans  1. On   (a Business Day).    1  Shall be received by the Agent not later than 11:00 a.m. (New York City time) (i) three Business Days prior  to the requested date of any Borrowing of, conversion to or continuation of Contract Rate Loans  denominated in Dollars or Canadian Dollars, (ii) four Business Days prior to the requested date of any  Borrowing or continuation of Alternative Currency Advances denominated in Alternative Currencies (other  than Canadian Dollars), and (iii) on the requested date of any Borrowing of Index Rate Loans.  

 

   A-1-2   Form of Committed Advance Notice     2. In the amount of [$][CAD$][€][£][ JP¥ ] .  3. Comprised of   .    [Type of Advance requested]  4. For Contract Rate Loans:  with an Interest Period of   months.  [Signature page follows]  

 

  A-1-3   Form of Committed Advance Notice     The Committed Borrowing, if any, requested herein complies with the provisos to the  first sentence of Section 2.01(a) of the Agreement.  [BORROWER]  By:     Name:     Title:  

 

  A-2-1   Form of Swing Line Advance Notice     EXHIBIT A-2  FORM OF SWING LINE ADVANCE NOTICE  Date:  ___________, 20__2_  To: Bank of America, N.A., as Agent  Ladies and Gentlemen:  Reference is made to that certain Fourth Amended and Restated Revolving Credit  Agreement, dated as of July 13, 2022 (as amended, restated, amended and restated,   supplemented or otherwise modified from time to time, the “Agreement;” the terms defined  therein being used herein as therein defined), among The Gap, Inc., a Delaware corporation  (“Parent Borrower”), certain of the Parent Borrower’s direct or indirect wholly-owned domestic  subsidiaries from time to time party thereto, as borrowers (collectively referred to herein as the  “U.S. Borrowers” and each, individually, as a “U.S. Borrower”), Gap (Canada) Inc., a Canadian  corporation, Old Navy (Canada) Inc., a Canadian corporation, certain of the Parent Borrower’s  other direct or indirect wholly-owned subsidiaries incorporated or organized under the laws of  Canada or a province or territory thereof from time to time party thereto, as borrowers  (collectively referred to herein as the “Canadian Borrowers” and each, individually, as a  “Canadian Borrower” and together with the U.S. Borrowers, collectively, referred to herein as  “Borrowers” and each, individually, as a “Borrower”), the other Loan Parties from time to time  party thereto, the Lenders from time to time party thereto, the Issuing Banks and Bank of  America, N.A., as administrative agent and collateral agent (together with any permitted  successor in such capacity, the “Agent”)  The undersigned hereby requests (select one):    A Borrowing of Swing Line Advances  1. On   (a Business Day).  2. In the amount of [$][CAD$] .  3. Comprised of   .    [Type of Swing Line Advance requested]   [Signature page follows]      2  Shall be received by the Swing Line Lender and the Agent not later than, in the case of Swing Line  Advances, 1:00 p.m. (New York City time) on the requested borrowing date.  

 

  A-2-2   Form of Swing Line Advance Notice     The Swing Line Borrowing, if any, requested herein complies with Section 2.03 of the  Agreement.  [BORROWER]  By:     Name:     Title:      

 

  B-1  Form of Note     EXHIBIT B  FORM OF NOTE    , 20   FOR VALUE RECEIVED, the undersigned (the “Borrower”), hereby promises to pay to  _____________________ or registered assigns (the “Lender”), in accordance with the provisions  of the Agreement (as hereinafter defined), the principal amount of each [Revolving Credit  Advance][Swing Line Advance] from time to time made by the Lender to the Borrowers under  that certain Fourth Amended and Restated Revolving Credit Agreement, dated as of July 13,  2022 (as amended, restated, amended and restated, supplemented or otherwise modified from  time to time, the “Agreement;” the terms defined therein being used herein as therein defined),  among The Gap, Inc., a Delaware corporation (“Parent Borrower”), certain of the Parent  Borrower’s direct or indirect wholly-owned domestic subsidiaries from time to time party  thereto, as borrowers (collectively referred to herein as the “U.S. Borrowers” and each,  individually, as a “U.S. Borrower”), Gap (Canada) Inc., a Canadian corporation, Old Navy  (Canada) Inc., a Canadian corporation, certain of the Parent Borrower’s other direct or indirect  wholly-owned subsidiaries incorporated or organized under the laws of Canada or a province or  territory thereof from time to time party thereto, as borrowers (collectively referred to herein as  the “Canadian Borrowers” and each, individually, as a “Canadian Borrower” and together with  the U.S. Borrowers, collectively, referred to herein as “Borrowers” and each, individually, as a  “Borrower”), the other Loan Parties from time to time party thereto, the Lenders from time to  time party thereto, the Issuing Banks and Bank of America, N.A., as administrative agent and  collateral agent (together with any permitted successor in such capacity, the “Agent”).  The Borrowers promise to pay interest on the unpaid principal amount of each  [Revolving Credit Advance][Swing Line Advance] from the date of such Advance until such  principal amount is paid in full, at such interest rates and at such times as provided in the  Agreement. All [Revolving Credit Advances][Swing Line Advances], all payments of principal  and interest shall be made to the Administrative Agent for the account of the Lender in Dollars in  immediately available funds at the Agent’s Office.  If any amount is not paid in full when due  hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date  thereof until the date of actual payment (and before as well as after judgment) computed at the  per annum rate set forth in the Agreement.  This Note is referred to in the Agreement, is entitled to the benefits thereof and may be  prepaid in whole or in part subject to the terms and conditions provided therein. Upon the  occurrence and continuation of one or more of the Events of Default specified in the Agreement,  all amounts then remaining unpaid on this Note shall become, or may be declared to be,  immediately due and payable all as provided in the Agreement.  [Revolving Credit  Advances][Swing Line Advances] made by the Lender shall be evidenced by one or more loan  accounts or records maintained by the Lender in the ordinary course of business. The Lender  may also attach schedules to this Note and endorse thereon the date, amount and maturity of its  [Revolving Credit Advances][Swing Line Advances] and payments with respect thereto.  

 

  B-2  Form of Note     The Borrowers, for themselves, their respective successors and assigns, hereby waives  diligence, presentment, protest and demand and notice of protest, demand, dishonor and non- payment of this Note.    

 

  B-3  Form of Note     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW YORK.  [BORROWER]  By:     Name:     Title:   

 

  B-4  Form of Note     ADVANCES AND PAYMENTS with respect thereto    Date  Type of  Advance  Made  Amount of  Advance  Made  End of  Interest  Period  Amount of  Principal or  Interest  Paid This  Date  Outstanding  Principal  Balance  This Date  Notation  Made By                                                                                                                                                                                                                                                                                

 

     C-1  Form of Assignment and Acceptance     EXHIBIT C  ASSIGNMENT AND ACCEPTANCE  This Assignment and Acceptance (this “Assignment and Acceptance”) is dated as of the  Effective Date set forth below and is entered into by and between [the][each]3 Assignor identified in  item 1 below ([the][each, an] “Assignor”) and [the][each]4 Assignee identified in item 2 below  ([the][each, an] “Assignee”).  [It is understood and agreed that the rights and obligations of [the  Assignors][the Assignees]5 hereunder are several and not joint.]6  Capitalized terms used but not  defined herein shall have the meanings given to them in the Credit Agreement identified below (the  “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The  Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and  incorporated herein by reference and made a part of this Assignment and Acceptance as if set forth  herein in full.  For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the  Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and  assumes from [the Assignor][the respective Assignors], subject to and in accordance with the  Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the  Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’] rights and  obligations in [its capacity as a Lender][their respective capacities as Lenders] under the Credit  Agreement and any other documents or instruments delivered pursuant thereto to the extent related to  the amount and percentage interest identified below of all of such outstanding rights and obligations  of [the Assignor][the respective Assignors] under the respective facilities identified below (including,  without limitation, the Letters of Credit and the Swing Line Advances included in such facilities) and  (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and  any other right of [the Assignor (in its capacity as a Lender)][the respective Assignors (in their  respective capacities as Lenders)] against any Person, whether known or unknown, arising under or  in connection with the Credit Agreement, any other documents or instruments delivered pursuant  thereto or the Advance transactions governed thereby or in any way based on or related to any of the  foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory  claims and all other claims at law or in equity related to the rights and obligations sold and assigned    3  For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is  from a single Assignor, choose the first bracketed language.  If the assignment is from multiple Assignors,  choose the second bracketed language.  4  For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a  single Assignee, choose the first bracketed language.  If the assignment is to multiple Assignees, choose the  second bracketed language.  5  Select as appropriate.  6  Include bracketed language if there are either multiple Assignors or multiple Assignees.  

 

     C-2  Form of Assignment and Acceptance     pursuant to clause (i) above (the rights and obligations sold and assigned by [the][any] Assignor to  [the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as  [the][an] “Assigned Interest”).  Each such sale and assignment is without recourse to [the][any]  Assignor and, except as expressly provided in this Assignment and Acceptance, without  representation or warranty by [the][any] Assignor.  1. Assignor[s]: ______________________________       ______________________________  2. Assignee[s]: ______________________________     ______________________________   [for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]    3. Borrower(s): The Gap, Inc., a Delaware corporation, (the “Parent Borrower”), certain of  Parent Borrower’s direct or indirect wholly-owned domestic subsidiaries from time to  time party thereto, Gap (Canada) Inc., a Canadian corporation, Old Navy (Canada) Inc., a  Canadian corporation, and certain of Parent Borrower’s other direct or indirect wholly- owned subsidiaries incorporated or organized under the laws of Canada or a province or  territory thereof from time to time party thereto.  4. Agent: Bank of America, N.A., as the administrative agent under the Credit Agreement  5. Credit Agreement: Fourth Amended and Restated Revolving Credit Agreement, dated  as of July 13, 2022 (as amended, restated, amended and restated, supplemented or  otherwise modified from time to time, the “Agreement;” the terms defined therein being  used herein as therein defined), among the Borrowers, the other Loan Parties from time to  time party thereto, the Lenders from time to time party thereto, the Issuing Banks and the  Agent  6. Assigned Interest[s]:          Assignor[s]7        Assignee[s]8      Facility  Assigned9  Aggregate  Amount of  Commitment/Advanc es  for all Lenders10  Amount of  Commitment /Advances  Assigned  Percentage  Assigned of  Commitment/  Advances11      CUSIP   Number            7  List each Assignor, as appropriate.  8  List each Assignee, as appropriate.  9  Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being  assigned under this Assignment (e.g. “Revolving Credit Commitment”, “Issuing Commitment”, etc.).  10  Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to  take into account any payments or prepayments made between the Trade Date and the Effective Date.  11  Set forth, to at least 9 decimals, as a percentage of the Commitment/Advances of all Lenders thereunder.  

 

     C-3  Form of Assignment and Acceptance       ____________ $________________ $_________ ____________%     ____________ $________________ $_________ ____________%     ____________ $________________ $_________ ____________%   [7. Trade Date: __________________]12  Effective Date: __________________, 20__ [TO BE INSERTED BY THE AGENT AND WHICH  SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER  THEREFOR.]  [Signature pages follow]   12  To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be  determined as of the Trade Date.  

 

   C-4  Form of Assignment and Acceptance     The terms set forth in this Assignment and Acceptance are hereby agreed to:  ASSIGNOR  [NAME OF ASSIGNOR]    By: _____________________________  Name:   Title:    ASSIGNEE  [NAME OF ASSIGNEE]    By: _____________________________  Name:   Title:  Consented to and Accepted:    BANK OF AMERICA, N.A., as Agent    By: _________________________________  Name:        Title:    [Consented to:]13    By: _________________________________  Name:        Title:    13  To be added only if the consent of the Borrowers and/or other parties (e.g. Swing Line Lender, Issuing  Banks) is required by the terms of the Credit Agreement.  

 

   C-5  Form of Assignment and Acceptance     ANNEX 1 TO ASSIGNMENT AND ACCEPTANCE  STANDARD TERMS AND CONDITIONS FOR   ASSIGNMENT AND ACCEPTANCE  1. Representations and Warranties.  1.1. Assignor.  [The][Each] Assignor (a) represents and warrants that (i) it is the  legal and beneficial owner of [the][[the relevant] Assigned Interest, (ii) [the][such] Assigned  Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full  power and authority, and has taken all action necessary, to execute and deliver this Assignment  and Acceptance and to consummate the transactions contemplated hereby; and (b) assumes no  responsibility with respect to (i) any statements, warranties or representations made in or in  connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality,  validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any  collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or  Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance  or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of  their respective obligations under any Loan Document.  1.2. Assignee.  [The][Each] Assignee (a) represents and warrants that (i) it has full  power and authority, and has taken all action necessary, to execute and deliver this Assignment  and Acceptance and to consummate the transactions contemplated hereby and to become a  Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee under  Section 10.07(b)(iii) and (v) of the Credit Agreement (subject to such consents, if any, as may be  required under Section 10.07(b)(iii) of the Credit Agreement), (iii) from and after the Effective  Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to  the extent of [the][the relevant] Assigned Interest, shall have the obligations of a Lender  thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type  represented by [the][such] Assigned Interest and either it, or the Person exercising discretion in  making its decision to acquire [the][such] Assigned Interest, is experienced in acquiring assets of  such type, (v) it has received a copy of the Credit Agreement, and has received or has been  accorded the opportunity to receive copies of the most recent financial statements delivered  pursuant to Section 7.04 thereof, as applicable, and such other documents and information as it  deems appropriate to make its own credit analysis and decision to enter into this Assignment and  Acceptance and to purchase [the][such] Assigned Interest, (vi) it has, independently and without  reliance upon the Agent or any other Lender and based on such documents and information as it  has deemed appropriate, made its own credit analysis and decision to enter into this Assignment  and Acceptance and to purchase [the][such] Assigned Interest, and (vii) if it is a foreign lender,  attached hereto is any documentation required to be delivered by it pursuant to the terms of the  Credit Agreement, duly completed and executed by [the][such] Assignee; and (b) agrees that (i)  it will, independently and without reliance upon the Agent, [the][any] Assignor or any other  Lender, and based on such documents and information as it shall deem appropriate at the time,  continue to make its own credit decisions in taking or not taking action under the Loan  

 

   C-6  Form of Assignment and Acceptance     Documents, and (ii) it will perform in accordance with their terms all of the obligations which by  the terms of the Loan Documents are required to be performed by it as a Lender.  2. Payments.  From and after the Effective Date, the Agent shall make all  payments in respect of [the][each] Assigned Interest (including payments of principal, interest,  fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued to but  excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued  from and after the Effective Date.  3. General Provisions.  This Assignment and Acceptance shall be binding upon,  and inure to the benefit of, the parties hereto and their respective successors and assigns.  This  Assignment and Acceptance may be executed in any number of counterparts, which together  shall constitute one instrument.  This Assignment and Acceptance may, if agreed by Bank of  America, 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  Assignment and Acceptance may be executed in as many counterparts as necessary or  convenient, including both paper and electronic counterparts, but all such counterparts are one  and the same Assignment and Acceptance.  For the avoidance of doubt, the authorization under  this paragraph may include, without limitation, use or acceptance by Bank of America 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.  Notwithstanding anything contained herein  to the contrary, Bank of America is under no obligation to accept an Electronic Signature in any  form or in any format unless expressly agreed to by Bank of America pursuant to procedures  approved by it; provided, further, without limiting the foregoing, (a) to the extent Bank of  America has agreed to accept such Electronic Signature, Bank of America shall be entitled to  rely on any such Electronic Signature without further verification and (b) upon the request of  Bank of America any Electronic Signature shall be promptly followed by a manually executed,  original 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.  This Assignment and Acceptance shall be governed by, and construed in  accordance with, the law of the State of  New York.      

 

   D-1  Form of Assumption Agreement     EXHIBIT D  FORM OF ASSUMPTION AGREEMENT  Dated:  _____________, 20__  The Gap, Inc.  2 Folsom Street  San Francisco, CA 94105  Attention:  Treasurer  Bank of America, N.A.     as Agent for the Lender Parties     to the Credit Agreement referred to below  [ADDRESS]  Attention:  Credit Administration  Ladies and Gentlemen:  Reference is made to the Fourth Amended and Restated Revolving Credit  Agreement, dated as of July 13, 2022 (as amended, restated, amended and restated,  supplemented or otherwise modified from time to time, the “Credit Agreement;” the terms  defined therein being used herein as therein defined), among The Gap, Inc., a Delaware  corporation (the “Parent Borrower”), certain of the Parent Borrower’s direct or indirect wholly- owned domestic subsidiaries from time to time party thereto, as borrowers (collectively referred  to herein as the “U.S. Borrowers” and each, individually, as a “U.S. Borrower”), Gap (Canada)  Inc., a Canadian corporation, Old Navy (Canada) Inc., a Canadian corporation, and certain of  Parent Borrower’s other direct or indirect wholly-owned subsidiaries incorporated or organized  under the laws of Canada or a province or territory thereof from time to time party thereto, as  borrowers (collectively referred to herein as the “Canadian Borrowers” and each, individually, as  a “Canadian Borrower” and together with the U.S. Borrowers, collectively, referred to herein as  “Borrowers” and each, individually, as a “Borrower”), the other Loan Parties from time to time  party thereto, the Lenders from time to time party thereto, the Issuing Banks and Bank of  America, N.A. (“Bank of America”), as administrative agent and collateral agent (together with  any permitted successor in such capacity, the “Agent”).  The undersigned (the “Assuming Lender”) proposes to become an Assuming  Lender pursuant to Section 2.06(b) of the Credit Agreement and, in that connection, hereby  agrees that it shall become a Lender for purposes of the Credit Agreement on the applicable  Commitment Increase Effective Date and that its [Revolving Credit Commitment][FILO Term  Loan] shall as of such date be $__________.  

 

   D-2  Form of Assumption Agreement     The undersigned (a) represents and warrants that (i) it has full power and  authority, and has taken all action necessary, to execute and deliver this Assumption Agreement  and to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be an  assignee under Section 10.07(b)(iii) and (v) of the Credit Agreement, (iii) from and after the  Commitment Increase Effective Date, it shall be bound by the provisions of the Credit  Agreement as a Lender thereunder and, to the extent of its [Revolving Credit  Commitment][FILO Term Loan], shall have the obligations of a Lender thereunder, (iv) it is  sophisticated with respect to decisions to acquire assets of the type represented by its [Revolving  Credit Commitment][FILO Term Loan] and it is experienced in transactions of such type, (v) it  has received a copy of the Credit Agreement, and has received or has been accorded the  opportunity to receive copies of the most recent financial statements delivered pursuant to  Section 7.04 thereof, as applicable, and such other documents and information as it deems  appropriate to make its own credit analysis and decision to enter into this Assumption  Agreement, (vi) it has, independently and without reliance upon the Agent or any other Lender  and based on such documents and information as it has deemed appropriate, made its own credit  analysis and decision to enter into this Assumption Agreement, and (vii) if it is a foreign lender,  attached hereto is any documentation required to be delivered by it pursuant to the terms of the  Credit Agreement, duly completed and executed by it; and (b) agrees that (i) it will,  independently and without reliance upon the Agent or any other Lender, and based on such  documents and information as it shall deem appropriate at the time, continue to make its own  credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform  in accordance with their terms all of the obligations which by the terms of the Loan Documents  are required to be performed by it as a Lender.  The effective date for this Assumption Agreement shall be the applicable  Commitment Increase Effective Date.  Upon delivery of this Assumption Agreement to the  Parent Borrower and the Agent, and satisfaction of all conditions imposed under Section 2.06(b)  as of [date specified above], the undersigned shall be a party to the Credit Agreement and have  the rights and obligations of a Lender thereunder.  As of [date specified above], the Agent shall  make all payments under the Credit Agreement in respect of the interest assigned hereby  (including, without limitation, all payments of principal, interest and facility fees) to the  Assuming Lender.  This Assumption Agreement may be executed in 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  Assumption Agreement may, if agreed by Bank of America, 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 Assumption Agreement may be executed in as  many counterparts as necessary or convenient, including both paper and electronic counterparts,  but all such counterparts are one and the same Assumption Agreement.  For the avoidance of  doubt, the authorization under this paragraph may include, without limitation, use or acceptance  by Bank of America of a manually signed paper Communication which has been converted into  

 

   D-3  Form of Assumption Agreement     electronic form (such as scanned into PDF format), or an electronically signed Communication  converted into another format, for transmission, delivery and/or retention.  Notwithstanding  anything contained herein to the contrary, Bank of America is under no obligation to accept an  Electronic Signature in any form or in any format unless expressly agreed to by Bank of America  pursuant to procedures approved by it; provided, further, without limiting the foregoing, (a) to  the extent Bank of America has agreed to accept such Electronic Signature, Bank of America  shall be entitled to rely on any such Electronic Signature without further verification and (b)  upon the request of Bank of America any Electronic Signature shall be promptly followed by a  manually executed, original 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.  [Signature pages follow]  

 

   D-4  Form of Assumption Agreement     This Assumption Agreement shall be governed by, and construed in accordance  with, the laws of the State of New York.  Very truly yours,  [NAME OF ASSUMING LENDER]  By:   Name:  Title:  Acknowledged and Agreed to:  THE GAP, INC.  By:   Name:  Title:  BANK OF AMERICA, N.A.    By:   Name:  Title:  

 

   E-1  Form of Administrative Questionnaire     EXHIBIT E    FORM OF ADMINISTRATIVE QUESTIONNAIRE  [On file with the Agent]        

 

     F-1  Form of ABL Intercreditor Agreement        EXHIBIT F  FORM OF ABL INTERCREDITOR AGREEMENT  [See Attached] 

 

EXHIBIT F   F-2  Form of ABL Intercreditor Agreement        [Form of]  INTERCREDITOR AGREEMENT  by and among  BANK OF AMERICA, N.A.,  as ABL Agent,  and  [  ],  as [First Lien Notes Agent]14  Dated as of [  ], 20[  ]      14 If the fixed asset facility is not first lien notes, defined terms referring to the “First Lien Notes” and related terms  to be updated throughout to reflect the nature of the facility (e.g. a term loan credit agreement).    

 

  -i-  TABLE OF CONTENTS  Page No.  ARTICLE 1  DEFINITIONS ........................................................................................................................ 2  Section 1.1 ........................................................................................................................... UCC Definitions 2  Section 1.2 .......................................................................................................................... Other Definitions 2  Section 1.3 ................................................................................................................... Rules of Construction 13  ARTICLE 2  LIEN PRIORITY .................................................................................................................. 13  Section 2.1 ............................................................................................................................ Priority of Liens 13  Section 2.2 ................................................................................................. Waiver of Right to Contest Liens 15  Section 2.3 ...................................................................................................................... Remedies Standstill 15  Section 2.4 ......................................................................................................................... Exercise of Rights 16  Section 2.5 ............................................................................................................................... No New Liens 18  Section 2.6 .................................................................................................................. Waiver of Marshalling 19  ARTICLE 3  ACTIONS OF THE PARTIES ............................................................................................. 19  Section 3.1 ............................................................................................................. Certain Actions Permitted 19  Section 3.2 ..................................................................................................................... Agent for Perfection 19  Section 3.3 .............................................................................................. Sharing of Information and Access 20  Section 3.4 ....................................................................................................................................... Insurance 20  Section 3.5 ............................................................... No Additional Rights For the Credit Parties Hereunder 20  Section 3.6 ................................................................................................... Inspection Rights and Insurance 20  ARTICLE 4  APPLICATION OF PROCEEDS ......................................................................................... 21  Section 4.1 ................................................................................................................ Application of Proceeds 21  Section 4.2 .................................................................................................................... Specific Performance 23  Section 4.3 .................................. Exercise of Remedies – Set Off and Tracing of and Priorities in Proceeds 23  ARTICLE 5  INTERCREDITOR ACKNOWLEDGEMENTS AND WAIVERS ..................................... 24  Section 5.1 ..................................................................................... Notice of Acceptance and Other Waivers 24  Section 5.2 ........................................... Modifications to ABL Documents and First Lien Notes Documents 25  Section 5.3 ............................................................................ Reinstatement and Continuation of Agreement 27  ARTICLE 6  INSOLVENCY PROCEEDINGS ......................................................................................... 28  Section 6.1 ............................................................................................................................... DIP Financing 28  Section 6.2 ........................................................................................................................... Relief From Stay 29  Section 6.3 .................................................................................................................................... No Contest 29  Section 6.4 .................................................................................................................................... Asset Sales 30  Section 6.5 .............................................................. Separate Grants of Security and Separate Classification 30  Section 6.6 ............................................................................................................................... Enforceability 31  Section 6.7 ................................................................................................... ABL Obligations Unconditional 31  Section 6.8 ................................................................................. First Lien Notes Obligations Unconditional 31  Section 6.9 ......................................................................................................................Adequate Protection 32  

 

  -ii-  Section 6.10 ............................................................................................................... Plan of Reorganization 32  ARTICLE 7  MISCELLANEOUS ............................................................................................................. 33  Section 7.1 ................................................................................................................... Rights of Subrogation 33  Section 7.2 ....................................................................................................................... Further Assurances 33  Section 7.3 ............................................................................................................................. Representations 33  Section 7.4 ................................................................................................................................. Amendments 34  Section 7.5 ................................................................................................................... Addresses for Notices 34  Section 7.6 ................................................................................................................... No Waiver, Remedies 34  Section 7.7 ............................................................ Continuing Agreement, Transfer of Secured Obligations 34  Section 7.8 ...............................................................................................Governing Law: Entire Agreement 35  Section 7.9 .................................................................................................................................. Counterparts 35  Section 7.10 ...................................................................................................... No Third Party Beneficiaries 35  Section 7.11 ..................................................................................................................................... Headings 35  Section 7.12 ................................................................................................................................. Severability 36  Section 7.13 ................................................................................................................................... [Reserved] 36  Section 7.14 ............................................................................................. VENUE; JURY TRIAL WAIVER 36  Section 7.15 .............................................................................................................. Intercreditor Agreement 36  Section 7.16 .......................................................................................................... No Warranties or Liability 37  Section 7.17 ...................................................................................................................................... Conflicts 37  Section 7.18 ............................................ Information Concerning Financial Condition of the Credit Parties 37  Section 7.19 ......................................................................................................................... Agent Capacities 37  

 

    [FORM OF] INTERCREDITOR AGREEMENT  THIS INTERCREDITOR AGREEMENT (as amended, supplemented, restated or otherwise  modified from time to time pursuant to the terms hereof, this “Agreement”) is entered into as of [  ], 20[   ], by and among (a) BANK OF AMERICA, N.A. (in its individual capacity, “Bank of America”), in its  capacities as administrative agent and collateral agent (together with its successors and assigns in such  capacities, the “ABL Agent”) for the financial institutions party from time to time to the ABL Credit  Agreement referred to below (such financial institutions, together with their successors, assigns and  transferees, the “ABL Credit Agreement Lenders” and, together with affiliates thereof and certain other  specified hedging parties, in their capacity as ABL Bank Products Affiliates or ABL Hedging Affiliates  (in each case, as hereinafter defined), the “ABL Lenders”), and (b) [  ] (in its individual capacity, “[   ]”),  in its capacity as notes collateral agent under the Original First Lien Notes Indenture referred to below  (together with its successors and assigns in such capacity, the “First Lien Notes Agent”) for the First  Lien Notes Secured Parties (as defined below).  RECITALS  A. Pursuant to that certain Fourth Amended and Restated Revolving Credit Agreement dated  as of July 13, 2022 by and among The Gap, Inc., as borrower (the “Parent Borrower” and, together with  certain other Subsidiaries of the Parent Borrower specified in the ABL Credit Agreement, collectively, the  “ABL Borrowers”), the ABL Credit Agreement Lenders and the ABL Agent (as such agreement may be  amended, supplemented, restated or otherwise modified from time to time, the “Original ABL Credit  Agreement”), the ABL Credit Agreement Lenders have agreed to make certain loans and other financial  accommodations to or for the benefit of the ABL Borrowers.   B. Pursuant to the Original ABL Credit Agreement, the ABL Guarantors have agreed to  guarantee the payment and performance of the ABL Borrowers’ obligations under the ABL Documents  (as hereinafter defined).  C. As a condition to the effectiveness of the Original ABL Credit Agreement and to secure  the obligations of the ABL Borrowers and the ABL Guarantors (the ABL Borrowers, the ABL Guarantors  and each other direct or indirect subsidiary or parent of the ABL Borrowers or any of their affiliates that  is now or hereafter becomes a party to any ABL Document, collectively, the “ABL Credit Parties”)  under and in connection with the ABL Documents, the ABL Credit Parties have granted to the ABL  Agent (for the benefit of the ABL Secured Parties, including the ABL Bank Products Affiliates and ABL  Hedging Affiliates) Liens on the Collateral.  D. Pursuant to that certain Indenture, dated as of [  ], 20[  ], by and among [    ], as Issuer  (the “First Lien Notes Issuer”), the First Lien Notes Guarantors (as hereinafter defined), [   ], in its  capacity as trustee (together with its successors and assigns in such capacity, the “First Lien Notes  Trustee”), and the First Lien Notes Agent (as such agreement may be amended, supplemented, restated  or otherwise modified from time to time, the “Original First Lien Notes Indenture”), the First Lien  Notes Issuer has issued senior secured notes to the First Lien Notes Holders.  E. Pursuant to the First Lien Notes Documents (as hereinafter defined), the First Lien Notes  Guarantors have provided guarantees and security for the First Lien Notes Obligations .  F. As a condition to the effectiveness of the Original First Lien Notes Indenture and to  secure the obligations of the First Lien Notes Issuer and the First Lien Notes Guarantors (the First Lien  Notes Issuer, the First Lien Notes Guarantors and each other direct or indirect subsidiary or parent of the  First Lien Notes Issuer or any of its affiliates that is now or hereafter becomes a party to any First Lien  

 

  -2-  Notes Documents, collectively, the “First Lien Notes Parties”) under and in connection with the First  Lien Notes Documents, the First Lien Notes Parties have granted to the First Lien Notes Agent (for the  benefit of the First Lien Notes Secured Parties) Liens on the Collateral.  G. Each of the ABL Agent (on behalf of the ABL Secured Parties) and the First Lien Notes  Agent (on behalf of the First Lien Notes Holders) and, by their acknowledgment hereof, the ABL Credit  Parties and the First Lien Notes Parties, agree to the relative priority of Liens on the Collateral and certain  other rights, priorities and interests as provided herein.  NOW THEREFORE, in consideration of the foregoing and for other good and valuable  consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:    DEFINITIONS  UCC Definitions.  The following terms which are defined in the Uniform Commercial  Code are used herein as so defined:  Accounts, Chattel Paper, Commodity Accounts, Deposit Accounts,  Documents, Electronic Chattel Paper, Equipment, Financial Assets, Fixtures, Instruments, Inventory,  Investment Property, Letter-Of-Credit Rights, Money, Payment Intangibles, Promissory Notes, Records,  Security, Securities Accounts, Security Entitlements, Supporting Obligations and Tangible Chattel Paper.  Other Definitions.  Subject to Section 1.1 above, unless the context otherwise requires,  all capitalized terms used but not defined herein shall have the meanings set forth in the ABL Credit  Agreement and the First Lien Notes Indenture, in each case as in effect on the date hereof.  In addition, as  used in this Agreement, the following terms shall have the meanings set forth below:  “ABL Agent” shall have the meaning assigned to that term in the introduction to this Agreement  and shall include any successor thereto as well as any Person designated as the “Agent” or  “Administrative Agent” under any ABL Credit Agreement.  “ABL Bank Products Affiliate” shall mean any ABL Credit Agreement Lender and any other  “Cash Management Bank” as defined in the ABL Credit Agreement.  “ABL Borrowers” shall have the meaning assigned to that term in the introduction to this  Agreement.  “ABL Collateral Agreement” shall mean the “U.S. Security Agreement” as defined in the ABL  Credit Agreement as in effect on the date hereof.  “ABL Collateral Documents” shall mean all “Collateral Documents” as defined in the Original  ABL Credit Agreement, and all other security agreements, mortgages, deeds of trust and other collateral  documents executed and delivered in connection with any ABL Credit Agreement, in each case as the  same may be amended, supplemented, restated or otherwise modified from time to time in accordance  with the terms thereof.  “ABL Credit Agreement” shall mean the Original ABL Credit Agreement and any other  agreement extending the maturity of, consolidating, restructuring, refunding, replacing or refinancing all  or any portion of the ABL Obligations, whether by the same or any other agent, lender or group of lenders  and whether or not increasing the amount of any Indebtedness that may be incurred thereunder.  

 

  -3-  “ABL Credit Agreement Lenders” shall have the meaning assigned to that term in the  introduction to this Agreement.  “ABL Credit Parties” shall have the meaning assigned to that term in the recitals to this  Agreement.  “ABL Documents” shall mean the ABL Credit Agreement, the ABL Collateral Documents, all  other “Loan Documents,” as defined in the ABL Credit Agreement, any Bank Product Documents  between any ABL Credit Party and any ABL Bank Products Affiliate, any Secured Hedge Agreements  between any ABL Credit Party and any Hedging Affiliate, any documents evidencing Secured Supply  Chain Financing between any ABL Credit Party and a Supply Chain Bank, those other ancillary  agreements as to which the ABL Agent or any ABL Lender is a party or a beneficiary and all other  agreements, instruments, documents and certificates, now or hereafter executed by or on behalf of any  ABL Credit Party or any of its respective Subsidiaries or Affiliates, and delivered to the ABL Agent, in  connection with any of the foregoing or any ABL Credit Agreement, in each case as the same may be  amended, supplemented, restated or otherwise modified from time to time in accordance with the terms  thereof.  “ABL Guarantors” shall mean the collective reference to the ABL Borrowers and any other  Person who becomes a guarantor under the ABL Credit Agreement.  “ABL Hedging Affiliate” shall mean any ABL Credit Agreement Lender and any other “Hedge  Bank,” as defined in the ABL Credit Agreement.  “ABL Lenders” shall have the meaning assigned to that term in the introduction to this  Agreement and shall include all ABL Bank Product Affiliates and ABL Hedging Affiliates and all  successors, assigns, transferees and replacements thereof, as well as any Person designated as a “Lender”  or an “Issuing Bank” under any ABL Credit Agreement.  “ABL Obligations” shall mean all “Obligations” as such term is defined in the ABL Credit  Agreement, including all obligations of every nature of each ABL Credit Party from time to time owed to  the ABL Agent, the ABL Secured Parties or any of them, under any ABL Document, whether for  principal, interest, fees, expenses (including interest, fees, and expenses which, but for the filing of a  petition in bankruptcy with respect to such ABL Credit Party, would have accrued on any ABL  Obligation, whether or not a claim is allowed or allowable against such ABL Credit Party for such  interest, fees, or expenses in the related Insolvency Proceeding), reimbursement of amounts drawn under  letters of credit, indemnification or otherwise, and all other amounts owing or due under the terms of the  ABL Documents, as amended, restated, modified, renewed, refunded, replaced or refinanced in whole or  in part from time to time in accordance with the terms thereof.  “ABL Priority Collateral” shall mean all Collateral consisting of the following:  (1) all Accounts and Receivables (as defined in the ABL Collateral Agreement) (other than  Accounts and Receivables arising under agreements for sale of Non-ABL Priority Collateral described in  clauses (1) through (4) of the definition of such term to the extent constituting identifiable proceeds of  such Non-ABL Priority Collateral);  (2) all Payment Intangibles, including all intercompany loans, corporate and other tax  refunds and all Credit Card Receivables (as defined in the ABL Credit Agreement) and all other rights to  payment arising therefrom in a credit-card, debit-card, prepaid-card or other payment-card transaction  

 

  -4-  (other than any Payment Intangibles constituting identifiable proceeds of Non-ABL Priority Collateral  described in clauses (1) through (4) of the definition of such term);  (3) all Inventory;  (4) all Deposit Accounts, Securities Accounts and Commodity Accounts (including the cash  management accounts, the blocked accounts, the lockbox accounts and the government lockbox accounts)  and all cash, Cash Equivalents and other assets contained in, or credit to, and all Securities Entitlements  arising from, any such Deposit Accounts, Securities Accounts or Commodity Accounts (in each case,  other than any identifiable proceeds of Non-ABL Priority Collateral described in clauses (1) through (4)  of the definition of such term).  (5)  all rights to business interruption insurance and all rights to credit insurance with respect  to any Accounts (in each case, regardless of whether the ABL Agent is the loss payee with respect  thereto);  (6) solely to the extent evidencing, governing, securing or otherwise relating to any of the  items constituting ABL Priority Collateral under clauses (1) through (5) above, (i) all General Intangibles  and Intangibles (excluding in each case any Intellectual Property and Capital Stock of Subsidiaries of the  Parent Borrower, but including contract rights and all rights as consignor or consignee, whether arising by  contract, statute or otherwise), (ii) Instruments (including Promissory Notes), (iii) Documents (including  each warehouse receipt or bill of lading covering any Inventory), (iv) licenses from any Governmental  Authority to sell any Inventory and (v) Chattel Paper;  (7) all collateral and guarantees given by any other person with respect to any of the  foregoing, and all other Supporting Obligations (including letter-of-credit rights) with respect to any of  the foregoing;  (8) all books and Records to the extent relating to any of the foregoing; and  (9) all products and proceeds of the foregoing (such proceeds, “ABL Priority Proceeds”).  Notwithstanding the foregoing, the term “ABL Priority Collateral” shall not include any assets referred to  in clauses (1) through (4) of the definition of the term “Non-ABL Priority Collateral” (as hereinafter  defined).  All capitalized terms used in this definition but not defined in this Agreement shall have the  meanings set forth in the UCC or the PPSA, as applicable, including that (a) Payment Intangibles shall  include “intangibles” as defined in the PPSA under which the account debtor’s principal obligation is a  monetary obligation, (b) General Intangibles shall include “intangibles” as defined in the PPSA, and (c)  Commodity Accounts shall include “futures accounts” as defined in the PPSA.    “ABL Recovery” shall have the meaning set forth in Section 5.3(a).  “ABL Secured Parties” shall mean, collectively, the  “Secured Parties,” as defined in the ABL  Credit Agreement, and shall include the ABL Agent and the ABL Lenders.  “Account(s)” means “accounts” as defined in the UCC, and also means a right to payment of a  monetary obligation, whether or not earned by performance, (a) for property that has been or is to be sold,  leased, licensed, assigned, or otherwise disposed of, (b) for services rendered or to be rendered, or (c)  arising out of the use of a credit or charge card or information contained on or for use with the card.  The  term “Account” does not include (a) rights to payment evidenced by chattel paper or an instrument, (b)  

 

  -5-  commercial tort claims, (c) deposit accounts, (d) investment property, or (e) letter-of-credit rights or  letters of credit.  For the avoidance of doubt, for purposes of this Agreement, “Account” shall also include  Payment Intangibles consisting of Credit Card Receivables due and owing to the Credit Parties from any  credit or debit card issuer or processor.  “Affiliate” shall mean, with respect to a specified Person, any other Person that directly or  indirectly through one or more intermediaries Controls, is Controlled by or is under common Control with  the Person specified.  “Agreement” shall have the meaning assigned to that term in the introduction to this Agreement.  “Asset Sales Proceeds Account” shall mean one or more Deposit Accounts or Securities  Accounts, in each case with a First Lien Notes Agent, holding only the proceeds of any sale or disposition  of any Non-ABL Priority Collateral and the proceeds or investment thereof.  “Bank of America” shall have the meaning assigned to that term in the introduction to this  Agreement.  “Bank Products” shall have the meaning provided in the ABL Credit Agreement as in effect on  the date hereof.  “Bank Products Documents” shall have the meaning provided in the ABL Credit Agreement as  in effect on the date hereof.  “Bankruptcy Code” means Title 11 of the United States Code, as amended.  “Borrower” shall mean any of the ABL Borrowers and the First Lien Notes Issuer.  [ “Canadian Collateral” means all assets of Canadian Subsidiaries of the Parent Borrower.]  [“Canadian Subsidiary” shall mean “Canadian Loan Party”, as defined in the Original ABL  Credit Agreement.]   “Capital Stock” shall mean:  (1) in the case of a corporation, corporate stock or shares;  (2) in the case of an association or business entity, any and all shares, interests,  participations, rights or other equivalents (however designated) of corporate stock;  (3) in the case of a partnership or limited liability company, partnership or membership  interests (whether general or limited); and  (4) any other interest or participation that confers on a Person the right to receive a share of  the profits and losses of, or distributions of assets of, the issuing Person.  “Cash Collateral” shall mean any Collateral consisting of Money or Cash Equivalents, Deposit  Accounts, Instruments, any Security Entitlement and any Financial Assets.  “Cash Equivalents” shall mean (a) U.S. dollars, pounds sterling, euros, Canadian dollars, the  national currency of any member state in the European Union or such other local currencies held by the  

 

  -6-  Company or a Restricted Subsidiary from time to time in the ordinary course of business, (b) securities  issued or directly and fully guaranteed or insured by the U.S. government, Canada, Switzerland or any  country that is a member of the European Union or any agency or instrumentality thereof in each case  maturing not more than two years from the date of acquisition, (c) certificates of deposit, time deposits  and eurodollar time deposits with maturities of one year or less from the date of acquisition, bankers’  acceptances, in each case with maturities not exceeding one year and overnight bank deposits, in each  case with any commercial bank having capital and surplus in excess of $250.0 million and whose long- term debt is rated “A” or the equivalent thereof by Moody’s or S&P (or reasonably equivalent ratings of  another internationally recognized ratings agency), (d) repurchase obligations for underlying securities of  the types described in clauses (b) and (c) above entered into with any financial institution meeting the  qualifications specified in clause (c) above, (e) commercial paper issued by a corporation (other than an  Affiliate of the Parent Borrower) rated at least “A-1” or the equivalent thereof by Moody’s or S&P (or  reasonably equivalent ratings of another internationally recognized ratings agency) and in each case  maturing within one year after the date of acquisition, (f) readily marketable direct obligations issued by  any state of the United States of America or any political subdivision thereof or any Canadian province  having at least a rating of Aa3 from Moody’s or a rating of AA- from S&P (or reasonably equivalent  ratings of another internationally recognized ratings agency) in each case with maturities not exceeding  two years from the date of acquisition, (g) Indebtedness issued by Persons with a rating of “A” or higher  from S&P or “A-2” or higher from Moody’s (or reasonably equivalent ratings of another internationally  recognized ratings agency) in each case with maturities not exceeding two years from the date of  acquisition, (h) Indebtedness issued by Persons with an Investment Grade Rating, (i) investment funds  investing at least 95% of their assets in securities of the types described in clauses (a) through (h) above   and (j) instruments equivalent to those referred to in clauses (a) through (h) above denominated in any  foreign currency comparable in credit quality and tenor to those referred to above and commonly used by  corporations for cash management purposes in any jurisdiction outside the United States of America to  the extent reasonably required in connection with any business conducted by any Subsidiary organized in  such jurisdiction.  “Collateral” shall mean all Property now owned or hereafter acquired by any Borrower or any  Guarantor in or upon which a Lien is granted or purported to be granted to the ABL Agent or the First  Lien Notes Agent under any of the ABL Collateral Documents or the First Lien Notes Collateral  Documents, together with all rents, issues, profits, products and Proceeds thereof.  “Collateral Agent” means the ABL Agent and/or the First Lien Notes Agent.  “Control” shall mean the possession, directly or indirectly, of the power (a) to vote 50% or more  of the securities having ordinary voting power for the election of directors (or any similar governing  body) of a Person, or (b) to direct or cause the direction of the management or policies of a Person,  whether through the ability to exercise voting power, by contract or otherwise. The terms “Controlling”  and “Controlled” have meanings correlative thereto.  “Control Collateral” shall mean any Collateral consisting of any Certificated Security (as  defined in Section 8-102 of the Uniform Commercial Code), Investment Property, Deposit Account,  Instruments and any other Collateral as to which a Lien may be perfected through possession or control  by the secured party, or any agent therefor.  “Copyright Licenses” shall have the meaning assigned to such term in the Intellectual Property  Security Agreement as in effect on the Closing Date.  

 

  -7-  “Copyrights” shall have the meaning assigned to such term in the Intellectual Property Security  Agreement as in effect on the Closing Date.  “Credit Documents” shall mean the ABL Documents and the First Lien Notes Documents.  “Credit Parties” shall mean the ABL Credit Parties and the First Lien Notes Parties.  “Debtor Relief Laws” shall mean the Bankruptcy Code and all other liquidation,  conservatorship, bankruptcy, assignment for 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 affecting the rights of creditors generally.  “DIP Financing” shall have the meaning set forth in Section 6.1(a).  “Discharge of ABL Obligations” shall mean, subject to Section 5.3, (a) the payment in full in  cash of the ABL Obligations that are outstanding and unpaid at the time all Indebtedness thereunder is  paid in full including, with respect to amounts available to be drawn under outstanding letters of credit  issued thereunder (or indemnities or other undertakings issued pursuant thereto in respect of outstanding  letters of credit) delivery or provision of Money or backstop letters of credit in respect thereof in  compliance with the terms of any ABL Credit Agreement (which shall not exceed an amount equal to  101.5% of the aggregate undrawn amount of such letters of credit) and (b) the termination of all  commitments to extend credit under the ABL Documents.  “Discharge of First Lien Notes Obligations” shall mean, subject to Section 5.3, (a) the payment  in full in cash of the First Lien Notes Obligations that are outstanding and unpaid at the time all  Indebtedness thereunder is paid in full and (b) with respect to any Future Notes Obligations, if applicable,  the termination of all commitments to extend credit under the First Lien Notes Documents.  “Enforcement Notice” shall mean a written notice delivered, at a time when an event of default  has occurred and is continuing, by either (a) in the case of a an event of default under the ABL  Obligations, the ABL Agent to the First Lien Notes Agent or (b) in the case of an event of default under  the First Lien Notes Obligations, the First Lien Notes Agent to the ABL Agent, in each case, announcing  that an Enforcement Period has commenced, specifying the relevant event of default and stating the  current balance of the ABL Obligations or the First Lien Notes Obligations, as applicable.  “Enforcement Period” shall mean the period of time following the receipt by either the ABL  Agent or the First Lien Notes Agent of an Enforcement Notice until the earliest of (i) in the case of an  Enforcement Period commenced by the First Lien Notes Agent, the discharge of First Lien Notes  Obligations, (ii) in the case of an Enforcement Period commenced by the ABL Agent, the discharge of  ABL Obligations, (iii) the ABL Agent or the First Lien Notes Agent (as applicable) agrees in writing to  terminate its Enforcement Period, or (iv) the date on which the applicable event of default that was the  subject of the Enforcement Notice relating to such Enforcement Period has been cured to the satisfaction  of the ABL Agent or the First Lien Notes Agent (acting at the direction of the applicable parties pursuant  to the First Lien Notes Documents), as applicable, or waived in writing in accordance with the  requirements of the applicable documents.  “Event of Default” shall mean an Event of Default under any ABL Credit Agreement or any  First Lien Notes Indenture.  “Exercise Any Secured Creditor Remedies” or “Exercise of Secured Creditor Remedies”  shall mean, except as otherwise provided in the final sentence of this definition:  

 

  -8-  (a) the taking by any ABL Secured Party or First Lien Notes Secured Party of any action to  enforce or realize upon any Lien, including the institution of any foreclosure proceedings or the noticing  of any public or private sale pursuant to Article 9 of the Uniform Commercial Code;  (b) the exercise by any ABL Secured Party or First Lien Notes Secured Party of any right or  remedy provided to a secured creditor on account of a Lien under any of ABL Documents or First Lien  Notes Documents, under applicable law, in an Insolvency or Liquidation Proceeding or otherwise,  including the election to retain any of the Collateral in satisfaction of a Lien;  (c) the taking by any ABL Secured Party or First Lien Notes Secured Party of any action or  the exercise of any right or remedy in respect of the collection on, set off against, marshaling of,  injunction respecting or foreclosure on the Collateral or the Proceeds thereof;  (d) the appointment on an application of a ABL Secured Party or First Lien Notes Secured  Party of a receiver, receiver and manager or interim receiver of all or part of the Collateral;  (e) the sale, lease, license, or other disposition of all or any portion of the Collateral by  private or public sale conducted by a ABL Secured Party or First Lien Notes Secured Party or any other  means permissible under applicable law;  (f) the exercise of any other right of a secured creditor under Part 6 of Article 9 of the  Uniform Commercial Code;  (g) the exercise by any ABL Secured Party or First Lien Notes Secured Party of any voting  rights relating to any Capital Stock included in the Collateral; and  (h) the delivery of any claim or demand relating to the Collateral to any Person (including  any securities intermediary, depository bank or landlord) in possession or control of any Collateral in  connection with the collection of the ABL Obligations or First Lien Notes Obligations after the  occurrence of an Event of Default (except, with respect to the ABL Lenders, such action shall not be  deemed an Exercise of Secured Creditor Remedies if the ABL Lenders have not terminated their  commitments to the ABL Borrowers under the ABL Credit Agreement and/or are continuing to make  loans and advances to or for the benefit of the Parent Borrower and the Guarantors).  For the avoidance of doubt, exercising any right or remedy provided to an ABL Secured Party upon the  occurrence of a Cash Dominion Period (as defined in the ABL Credit Agreement as in effect on the date  hereof), reducing advance rates and sub-limits, imposing reserves, filing a proof of claim in bankruptcy  court or seeking adequate protection in a manner consistent with this Agreement shall not be deemed to  be an Exercise of Secured Creditor Remedies.  “Financing Lease” shall mean any lease of property, real or personal, the obligations of the  lessee in respect of which are required in accordance with GAAP to be capitalized on a balance sheet of  the lessee.  “First Lien Notes” shall mean, [    ], and all other notes issued pursuant to any First Lien Notes  Indenture, in each case as the same may be amended, supplemented, restated or otherwise modified from  time to time in accordance with the terms thereof.  “First Lien Notes Agent” shall have the meaning assigned to that term in the introduction to this  Agreement and shall include any successor thereto.  

 

  -9-  “First Lien Notes Collateral Documents” shall mean all “Security Documents” as defined in the  Original First Lien Notes Indenture, and all other security agreements, mortgages, deeds of trust and other  collateral documents executed and delivered in connection with any First Lien Notes Indenture, in each  case as the same may be amended, supplemented, restated or otherwise modified from time to time in  accordance with the terms thereof.  “First Lien Notes Documents” shall mean the First Lien Notes Indenture, the First Lien Notes,  the First Lien Notes Collateral Documents, all documents evidencing Future Notes Obligations, those  other ancillary agreements as to which the First Lien Notes Agent, the First Lien Notes Trustee, or any  First Lien Notes Holder is a party or a beneficiary and all other agreements, instruments, documents and  certificates, now or hereafter executed by or on behalf of any First Lien Notes Party or any of its  respective Subsidiaries or Affiliates, and delivered to the First Lien Notes Agent or the First Lien Notes  Trustee, in connection with any of the foregoing or any First Lien Notes Indenture, in each case as the  same may be amended, supplemented, restated or otherwise modified from time to time in accordance  with the terms thereof.  “First Lien Notes Guarantors” shall mean the collective reference to the Domestic Subsidiaries  of the First Lien Notes Issuer and any other Person who becomes a guarantor under any of the First Lien  Notes Documents.  “First Lien Notes Holders” shall mean the “holders” under and as defined in the Original First  Lien Notes Indenture, and shall include all successors, assigns, transferees and replacements thereof, as  well as any Person designated as a “holder” or “Holder” under any First Lien Notes Indenture.  “First Lien Notes Indenture” shall mean the Original First Lien Notes Indenture and any other  agreement extending the maturity of, consolidating, restructuring, refunding, replacing or refinancing all  or any portion of the First Lien Notes Obligations, whether by the same or any other agent, trustee,  holder, or group of holders and whether or not increasing the amount of any Indebtedness that may be  incurred thereunder.  “First Lien Notes Issuer” shall have the meaning assigned to that term in the introduction to this  Agreement.  “First Lien Notes Obligations” shall mean (i) all obligations of every nature of each First Lien  Notes Party from time to time owed to the First Lien Notes Agent, the First Lien Notes Trustee, the First  Lien Notes Holders or any of them, under any First Lien Notes Documents, whether for principal,  interest, fees, expenses (including interest, fees, and expenses which, but for the filing of a petition in  bankruptcy with respect to such First Lien Notes Party, would have accrued on any First Lien Notes  Obligation, whether or not a claim is allowed or allowable against such First Lien Notes Party for such  interest, fees, or expenses in the related Insolvency Proceeding), indemnification or otherwise, and all  other amounts owing or due under the terms of the First Lien Notes Documents, as amended, restated,  modified, renewed, refunded, replaced or refinanced in whole or in part from time to time in accordance  with the terms thereof and (ii) all Future Notes Obligations.  “First Lien Notes Parties” shall have the meaning assigned to that term in the recitals to this  Agreement.  “First Lien Notes Recovery” shall have the meaning set forth in Section 5.3(b).  “First Lien Notes Secured Parties” shall mean the First Lien Notes Agent, the First Lien Notes  Trustee, the First Lien Notes Holders and the Future Notes Indebtedness Secured Parties.  

 

  -10-  “First Lien Notes Trustee” shall have the meaning assigned to that term in the recitals to this  Agreement, and shall include any successor thereto as well as any Person designated as “Trustee” under  any First Lien Notes Indenture.  “Future Notes Indebtedness” shall mean any Indebtedness of the First Lien Notes Issuer and/or  the First Lien Notes Guarantors that is secured by a Lien in favor of the First Lien Notes Agent pursuant  to the First Lien Notes Collateral Documents and that was permitted to be incurred and so secured under  each applicable First Lien Notes Document and ABL Document; provided that (i) the trustee, agent or  other authorized representative for the holders of such Indebtedness (other than in the case of Additional  Notes (as defined in the First Lien Notes Indenture)) and the First Lien Notes Issuer and the First Lien  Notes Guarantors shall execute a joinder to this Agreement (in a form reasonably acceptable to the ABL  Agent) and the Notes Security Agreement in the form attached thereto and (ii) the First Lien Notes Issuer  shall designate such Indebtedness as “Secured Obligations” under the Notes Security Agreement.15  “Future Notes Indebtedness Secured Parties” means holders of any Future Notes Obligations  and any trustee, authorized representative or agent of such Future Notes Obligations.  “Future Notes Obligations” shall mean all obligations of every nature of each First Lien Notes  Party from time to time owed to the Future Notes Indebtedness Secured Parties or any of them, under any  documents governing Future Notes Indebtedness, whether for principal, interest, fees, expenses (including  interest, fees, and expenses which, but for the filing of a petition in bankruptcy with respect to such First  Lien Notes Party, would have accrued on any Future Notes Obligations, whether or not a claim is allowed  or allowable against such First Lien Notes Party for such interest, fees, or expenses in the related  Insolvency Proceeding), indemnification or otherwise, and all other amounts owing or due under the  terms of the documents governing Future Notes Indebtedness, as amended, restated, modified, renewed,  refunded, replaced or refinanced in whole or in part from time to time in accordance with the terms  thereof (other than, in each case, obligations with respect to Additional Notes (as defined in the First Lien  Notes Indenture) which shall constitute First Lien Notes Obligations).  “General Intangibles” shall mean all “general intangibles” as such term is defined in the  Uniform Commercial Code including, with respect to any Credit Party, all contracts, agreements and  indentures in any form, and portions thereof, to which such Credit Party is a party or under which such  Credit Party has any right, title or interest or to which such Credit Party or any property of such Credit  Party is subject, as the same may be amended, supplemented, restated or otherwise modified from time to  time.  “Guarantor” shall mean any of the ABL Guarantors or the First Lien Notes Guarantors.  “Indebtedness” shall have the meaning provided in the ABL Credit Agreement and the First Lien  Notes Indenture as in effect on the date hereof.  “Insolvency Proceeding” shall mean (a) any case, action or proceeding before any court or other  Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership,  dissolution, winding-up or relief of debtors, or (b) any general assignment for the benefit of creditors,  composition, marshalling of assets for creditors or other similar arrangement in respect of its creditors  generally or any substantial portion of its creditors; in each case covered by clauses (a) and (b) undertaken    15 Modifications may be made with the approval of the ABL Agent to incorporate separate series of fixed asset debt  (i.e. separate credit agreements that are secured under separate security documents).   

 

  -11-  under United States Federal, State or foreign law, including the Bankruptcy Code or any other applicable  Debtor Relief Law.  “Lien” shall mean, with respect to any asset, any mortgage, lien, pledge, charge, security interest  or similar encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise  perfected under applicable law (including any conditional sale or other title retention agreement or any  lease in the nature thereof); provided that in no event shall an operating lease or an agreement to sell be  deemed to constitute a Lien.  “Lien Priority” shall mean with respect to any Lien of the ABL Agent, the ABL Secured Parties,  the First Lien Notes Agent, the First Lien Notes Secured Parties, or the Future Notes Indebtedness  Secured Parties in the Collateral, the order of priority of such Lien as specified in Section 2.1.  “Original ABL Credit Agreement” shall have the meaning assigned to that term in the  introduction to this Agreement.  “Original First Lien Notes Indenture” shall have the meaning assigned to that term in the  introduction to this Agreement.  “Non-ABL Priority Collateral” shall mean:  (1) all Equipment, all Intellectual Property, all real property and interests therein and all  Fixtures;  (2) all Capital Stock and other Investment Property (other than investment property  constituting ABL Priority Collateral under clause (4) or (6) of the definition of such term);  (3) all Commercial Tort Claims that do not relate to ABL Priority Collateral;  (4) all insurance policies relating to Non-ABL Priority Collateral, but, for the avoidance of  doubt, excluding business interruption insurance and credit insurance with respect to any Accounts or  Credit Card Receivables (as defined in the ABL Credit Agreement);  (5) except to the extent constituting ABL Priority Collateral under clause (6) or (7) of the  definition of such term, all documents, all General Intangibles, all Intangibles, all Instruments and all  Letter-of-Credit Rights;  (6) all collateral and guarantees given by any other person with respect to any of the  foregoing, and all Supporting Obligations (including Letter-of-Credit Rights) with respect to any of the  foregoing;  (7) all books and Records to the extent relating to any of the foregoing;  (8) all products and proceeds of the foregoing (such proceeds, “Notes Priority Proceeds”).   Notwithstanding the foregoing, the term “Non-ABL Priority Collateral” shall not include any assets  referred to in clauses (1) through (5) of the definition of the term “ABL Priority Collateral”.  

 

  -12-  All capitalized terms used in this definition but not defined in this Agreement shall have the  meanings set forth in the UCC or the PPSA, as applicable.    “Parent Borrower” shall have the meaning assigned to that term in the recitals to this  Agreement.  “Party” shall mean the ABL Agent or the First Lien Notes Agent, and “Parties” shall mean,  collectively, the ABL Agent and the First Lien Notes Agent.  “Patent License” shall have the meaning assigned to such term in the Intellectual Property  Security Agreement as in effect on the Closing Date.  “Patents” shall have the meaning assigned to such term in the Intellectual Property Security  Agreement as in effect on the Closing Date.  “Payment Collateral” shall mean all Accounts, Instruments, Chattel Paper, Letter-Of-Credit  Rights, Deposit Accounts (other than the Asset Sales Proceeds Account), Securities Accounts and  Payment Intangibles, together with all Supporting Obligations, in each case composing a portion of the  Collateral.  “Priority Collateral” shall mean the ABL Priority Collateral or the Non-ABL Priority  Collateral, as applicable.  “Proceeds” shall mean (a) all “proceeds,” as defined in Article 9 of the Uniform Commercial  Code, with respect to the Collateral, and (b) whatever is recoverable or recovered when any Collateral is  sold, exchanged, collected, or disposed of, whether voluntarily or involuntarily.  “Property” shall mean any interest in any kind of property or asset, whether real, personal or  mixed, or tangible or intangible.   “Secured Hedge Agreement” shall have the meaning provided in the ABL Credit Agreement as  in effect on the date hereof.  “Secured Parties” shall mean the ABL Secured Parties and the First Lien Notes Secured Parties.  “Secured Supply Chain Financing” shall have the meaning provided in the ABL Credit  Agreement as in effect on the date hereof.   “Subsidiary” shall mean with respect to any Person (the “parent”) at any date, any corporation,  limited liability company, partnership, association or other entity (a) of which Capital Stock representing  more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general  partnership interests are, as of such date, owned, Controlled or held, or (b) that is, as of such date,  otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or  more subsidiaries of the parent.  “Supply Chain Bank” shall have the meaning provided in the ABL Credit Agreement as in  effect on the date hereof.  “Trademark License” shall have the meaning assigned to such term in the Intellectual Property  Security Agreement as in effect on the Closing Date.  

 

  -13-  “Trademarks” shall have the meaning assigned to such term in the Intellectual Property Security  Agreement as in effect on the Closing Date.  “Uniform Commercial Code” shall mean the Uniform Commercial Code as the same may, from  time to time, be in effect in the State of New York; provided that to the extent that the Uniform  Commercial Code is used to define any term in any security document and such term is defined  differently in differing Articles of the Uniform Commercial Code, the definition of such term contained in  Article 9 shall govern; provided, further, that in the event that, by reason of mandatory provisions of law,  any or all of the attachment, perfection, publication or priority of, or remedies with respect to, Liens of  any Party is governed by the Uniform Commercial Code or foreign personal property security laws as  enacted and in effect in a jurisdiction other than the State of New York, the term “Uniform Commercial  Code” will mean the Uniform Commercial Code or such foreign personal property security laws as  enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to  such attachment, perfection, priority or remedies and for purposes of definitions related to such  provisions.  Rules of Construction.  Unless the context of this Agreement clearly requires otherwise,  references to the plural include the singular, references to the singular include the plural, the term  “including” is not limiting and shall be deemed to be followed by the phrase “without limitation,” and the  term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase  “and/or.”  The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement refer  to this Agreement as a whole and not to any particular provision of this Agreement.  Article, section,  subsection, clause, schedule and exhibit references herein are to this Agreement unless otherwise  specified.  Any reference in this Agreement to any agreement, instrument, or document shall include all  alterations, amendments, changes, restatements, extensions, modifications, renewals, replacements,  substitutions, joinders, and supplements thereto and thereof, as applicable (subject to any restrictions on  such alterations, amendments, changes, restatements, extensions, modifications, renewals, replacements,  substitutions, joinders, and supplements set forth herein).  Any reference herein to any Person shall be  construed to include such Person’s successors and assigns.  Any reference herein to the repayment in full  of an obligation shall mean the payment in full in cash of such obligation, or in such other manner as may  be approved in writing by the requisite holders or representatives in respect of such obligation, or in such  other manner as may be approved by the requisite holders or representatives in respect of such obligation.    LIEN PRIORITY  Priority of Liens.  Subject to the provisos in subclauses (b) and (c) of Section 4.1, notwithstanding (i) the  date, time, method, manner, or order of grant, attachment, or perfection (including any defect or  deficiency or alleged defect or deficiency in any of the foregoing) of any Liens granted to the ABL Agent  or the ABL Secured Parties in respect of all or any portion of the Collateral or of any Liens granted to the  First Lien Notes Agent or any First Lien Notes Party in respect of all or any portion of the Collateral and  regardless of how any such Lien was acquired (whether by grant, statute, operation of law, subrogation or  otherwise), (ii) the order or time of filing or recordation of any document or instrument for perfecting the  Liens in favor of the ABL Agent or the First Lien Notes Agent (or ABL Secured Parties or any First Lien  Notes Parties) in any Collateral, (iii) any provision of the Uniform Commercial Code, the Bankruptcy  Code or any other applicable Debtor Relief Law, or any other applicable law, or of the ABL Documents  or the First Lien Notes Documents, (iv) whether the ABL Agent or the First Lien Notes Agent, in each  case, either directly or through agents, holds possession of, or has control over, all or any part of the  

 

  -14-  Collateral, (v) the fact that any such Liens in favor of the ABL Agent or the First Lien Notes Agent (or  ABL Secured Parties or any First Lien Notes Secured Parties) securing or purporting to secure any of the  ABL Obligations or First Lien Notes Obligations, respectively, are (x) subordinated to any Lien securing  any obligation of the Parent Borrower or any Guarantor other than the First Lien Notes Obligations or the  ABL Obligations, respectively, or (y) otherwise subordinated, voided, avoided, invalidated or lapsed, or  (vi) any other circumstance of any kind or nature whatsoever, the ABL Agent, on behalf of itself and the  ABL Secured Parties and the First Lien Notes Agent, on behalf of itself and the other First Lien Notes  Secured Parties and the Future Notes Indebtedness Secured Parties, hereby agree that:  (1) any Lien in respect of all or any portion of the ABL Priority  Collateral now or hereafter held by or on behalf of the First Lien Notes Agent, any First  Lien Notes Secured Party or any Future Notes Indebtedness Secured Party that secures or  purports to secure all or any portion of the First Lien Notes Obligations shall in all  respects be junior and subordinate to all Liens granted to the ABL Agent and the ABL  Secured Parties in the ABL Priority Collateral to secure all or any portion of the ABL  Obligations;  (2) any Lien in respect of all or any portion of the ABL Priority  Collateral now or hereafter held by or on behalf of the ABL Agent or any ABL Secured  Party that secures or purports to secure all or any portion of the ABL Obligations shall in  all respects be senior and prior to all Liens granted to the First Lien Notes Agent, any  First Lien Notes Secured Party, or any Future Notes Indebtedness Secured Party in the  ABL Priority Collateral to secure all or any portion of the First Lien Notes Obligations;  (3) any Lien in respect of all or any portion of the Non-ABL Priority  Collateral now or hereafter held by or on behalf of the ABL Agent or any ABL Secured  Party that secures or purports to secure all or any portion of the ABL Obligations shall in  all respects be junior and subordinate to all Liens granted to the First Lien Notes Agent,  the First Lien Notes Secured Parties, and the Future Notes Indebtedness Secured Parties  in the Non-ABL Priority Collateral to secure all or any portion of the First Lien Notes  Obligations; and  (4) any Lien in respect of all or any portion of the Non-ABL Priority  Collateral now or hereafter held by or on behalf of the First Lien Notes Agent, any First  Lien Notes Secured Party, or any Future Notes Indebtedness Secured Party that secures  or purports to secure all or any portion of the First Lien Notes Obligations shall in all  respects be senior and prior to all Liens granted to the ABL Agent or any ABL Secured  Party in the Non-ABL Priority Collateral to secure all or any portion of the ABL  Obligations.  Notwithstanding any failure by any ABL Secured Party or First Lien Notes Secured Party  to perfect its security interests in the Collateral or any avoidance, invalidation, priming or subordination  by any third party or court of competent jurisdiction of the security interests in the Collateral granted to  the ABL Secured Parties or the First Lien Notes Secured Parties but, for the avoidance of doubt, subject  to the provisos in subclauses (b) and (c) of Section 4.1, the priority and rights as between the ABL  Secured Parties and the First Lien Notes Secured Parties with respect to the Collateral shall be as set forth  herein.  

 

  -15-  The subordination of Liens by the First Lien Notes Agent and the ABL Agent in favor of  one another as set forth herein shall not be deemed to subordinate the First Lien Notes Agent’s Liens or  the ABL Agent’s Liens to the Liens of any other Person.  Waiver of Right to Contest Liens.  Each of the First Lien Notes Agent, for and on behalf of itself, the First Lien Notes  Secured Parties, and the Future Notes Indebtedness Secured Parties, agrees that it and they shall not (and  hereby waives any right to) take any action to contest or challenge (or assist or support any other Person  in contesting or challenging), directly or indirectly, whether or not in any proceeding (including in any  Insolvency Proceeding), the perfection, priority, validity or enforceability of the Liens of the ABL Agent  and the ABL Secured Parties in respect of the Collateral, the allowability of claims asserted with respect  to the ABL Obligations, or the provisions of this Agreement.  Except to the extent expressly set forth in  this Agreement, the First Lien Notes Agent, for itself and on behalf of the First Lien Notes Secured  Parties and the Future Notes Indebtedness Secured Parties, agrees that none of the First Lien Notes Agent,  the First Lien Notes Secured Parties or the Future Notes Indebtedness Secured Parties will take any action  that would interfere with any Exercise of Secured Creditor Remedies undertaken by the ABL Agent or  any ABL Secured Party under the ABL Documents with respect to the ABL Priority Collateral.  Except to  the extent expressly set forth in this Agreement, the First Lien Notes Agent, for itself and on behalf of the  First Lien Notes Secured Parties and the Future Notes Indebtedness Secured Parties, hereby waives any  and all rights it, the First Lien Notes Secured Parties or the Future Notes Indebtedness Secured Parties  may have as a junior lien creditor or otherwise to contest, protest, object to, or interfere with the manner  in which the ABL Agent or any ABL Secured Party seeks to enforce its Liens in any ABL Priority  Collateral.  The foregoing shall not be construed to prohibit the First Lien Notes Agent from enforcing the  provisions of this Agreement as to the relative priority of the parties hereto.  The ABL Agent, for and on behalf of itself and the ABL Secured Parties, agrees that it  and they shall not (and hereby waives any right to) take any action to contest or challenge (or assist or  support any other Person in contesting or challenging), directly or indirectly, whether or not in any  proceeding (including in any Insolvency Proceeding), the perfection, priority, validity or enforceability of  the Liens of the First Lien Notes Agent, the First Lien Notes Secured Parties, or the Future Notes  Indebtedness Secured Parties in respect of the Collateral, the allowability of the claims asserted with  respect to the First Lien Notes Obligations, or the provisions of this Agreement.  Except to the extent  expressly set forth in this Agreement, the ABL Agent, for itself and on behalf of the ABL Secured Parties,  agrees that none of the ABL Agent or the ABL Secured Parties will take any action that would interfere  with any Exercise of Secured Creditor Remedies undertaken by the First Lien Notes Agent, any First Lien  Notes Secured Party, or any Future Notes Indebtedness Secured Party under the applicable First Lien  Notes Documents with respect to the Non-ABL Priority Collateral.  Except to the extent expressly set  forth in this Agreement, the ABL Agent, for itself and on behalf of the ABL Secured Parties, hereby  waives any and all rights it or the ABL Secured Parties may have as a junior lien creditor or otherwise to  contest, protest, object to, or interfere with the manner in which the First Lien Notes Agent, any First Lien  Notes Secured Party, or any Future Notes Indebtedness Secured Party seeks to enforce its Liens in any  Non-ABL Priority Collateral.  The foregoing shall not be construed to prohibit the ABL Agent from  enforcing the provisions of this Agreement as to the relative priority of the parties hereto.  Remedies Standstill.  Each of the First Lien Notes Agent, on behalf of itself, the First Lien Notes Secured  Parties and the Future Notes Indebtedness Secured Parties, agrees that, until the date upon which the  Discharge of ABL Obligations shall have occurred, neither such First Lien Notes Agent nor any First  

 

  -16-  Lien Notes Secured Party or any Future Notes Indebtedness Secured Party will Exercise Any Secured  Creditor Remedies with respect to any of the ABL Priority Collateral without the written consent of the  ABL Agent.  From and after the date upon which the Discharge of ABL Obligations shall have occurred  (or prior thereto upon obtaining the written consent of the ABL Agent), the First Lien Notes Agent, any  First Lien Notes Secured Party, or any Future Notes Indebtedness Secured Party may Exercise Any  Secured Creditor Remedies under the applicable First Lien Notes Documents or applicable law as to any  ABL Priority Collateral; provided, however, that any Exercise of Secured Creditor Remedies with respect  to any Collateral by the First Lien Notes Agent is at all times subject to the provisions of this Agreement,  including Section 4.1 hereof.  The ABL Agent, on behalf of itself and the ABL Secured Parties, agrees that, until the  date upon which the Discharge of First Lien Notes Obligations shall have occurred, neither the ABL  Agent nor any ABL Secured Party will Exercise Any Secured Creditor Remedies with respect to the Non- ABL Priority Collateral without the written consent of the First Lien Notes Agent.  From and after the  date upon which the Discharge of First Lien Notes Obligations shall have occurred (or prior thereto upon  obtaining the written consent of the First Lien Notes Agent), the ABL Agent or any ABL Secured Party  may Exercise Any Secured Creditor Remedies under the ABL Documents or applicable law as to any  Non-ABL Priority Collateral (other than with respect to any real property a mortgage over which has been  granted pursuant to the terms of the First Lien Notes Documents and has not been granted pursuant to the  terms of the ABL Documents); provided, however, that any Exercise of Secured Creditor Remedies with  respect to any Collateral by the ABL Agent is at all times subject to the provisions of this Agreement,  including Section 4.1 hereof.  Exercise of Rights.  No Other Restrictions.  Except as otherwise set forth in this Agreement, each of the First  Lien Notes Agent, each First Lien Notes Secured Party, each Future Notes Indebtedness Secured Party,  the ABL Agent and each ABL Secured Party shall have any and all rights and remedies it may have as a  creditor under applicable law, including the right to the Exercise of Secured Creditor Remedies; provided,  however, that the Exercise of Secured Creditor Remedies with respect to the Collateral shall be subject to  the Lien Priority and to the provisions of this Agreement, including Sections 2.3 and 4.1 hereof.  None of  the First Lien Notes Agent, any First Lien Notes Secured Party, any Future Notes Indebtedness Secured  Party, the ABL Agent or any ABL Secured Party waives any claim it may have on grounds of commercial  reasonableness.  The ABL Agent may enforce the provisions of the ABL Documents, the First Lien Notes  Agent may enforce the provisions of the applicable First Lien Notes Documents, and each may Exercise  Any Secured Creditor Remedies, all in such order and in such manner as each may determine in the  exercise of its sole discretion, consistent with the terms of this Agreement and mandatory provisions of  applicable law; provided, however, that each of the ABL Agent and the First Lien Notes Agent agrees to  provide to the other copies of any notices that it is required under applicable law to deliver to any  Borrower or any Guarantor; provided further, however, that the ABL Agent’s failure to provide any such  copies to the First Lien Notes Agent shall not impair any of the ABL Agent’s rights hereunder or under  any of the ABL Documents and the First Lien Notes Agent’s failure to provide any such copies to the  ABL Agent shall not impair any of such First Lien Notes Agent’s rights hereunder or under any of the  applicable First Lien Notes Documents.  Each of the First Lien Notes Agent, each First Lien Notes  Secured Party, each Future Notes Indebtedness Secured Party, the ABL Agent and each ABL Secured  Party agrees that it will not institute any suit or other proceeding or assert in any suit, Insolvency  Proceeding or other proceeding any claim, in the case of the First Lien Notes Agent, each First Lien Notes  Secured Party, and each Future Notes Indebtedness Secured Party against either the ABL Agent or any  other ABL Secured Party, and in the case of the ABL Agent and each other ABL Secured Party, against  either the First Lien Notes Agent or any other First Lien Notes Secured Party, seeking damages from or  

 

  -17-  other relief by way of specific performance, instructions or otherwise, with respect to, any action taken or  omitted to be taken by such Person with respect to the Collateral which is consistent with the terms of this  Agreement, and none of such Parties shall be liable for any such action taken or omitted to be taken.  Release of Liens.  (1)  In the event of (A) any private or public sale of all or any portion  of the ABL Priority Collateral in connection with any Exercise of Secured Creditor Remedies by or with  the consent of the ABL Agent (other than in connection with a refinancing as described in Section 5.2(c))  or (B) any sale, transfer or other disposition of all or any portion of the ABL Priority Collateral (other  than in connection with a refinancing as described in Section 5.2(c)), so long as such sale, transfer or  other disposition is then permitted by the ABL Documents and the First Lien Notes Documents, each of  the First Lien Notes Agent, on behalf of itself, the First Lien Notes Secured Parties, and the Future Notes  Indebtedness Secured Parties, agrees such sale, transfer, other disposition or release will be free and clear  of the Liens on such ABL Priority Collateral securing the First Lien Notes Obligations, and the First Lien  Notes Agent’s and the First Lien Notes Secured Parties’ Liens with respect to the ABL Priority Collateral  so sold, transferred, disposed or released shall terminate and be automatically unconditionally and  simultaneously released without further action.  In furtherance of, and subject to, the foregoing, the First  Lien Notes Agent agrees, at the Credit Parties’ expense, that it will promptly execute any and all Lien  releases or other documents reasonably requested by the ABL Agent in connection therewith.  The First  Lien Notes Agent hereby appoints the ABL Agent and any officer or duly authorized person of the ABL  Agent, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power  of attorney in the place and stead of such First Lien Notes Agent and in the name of such First Lien Notes  Agent or in the ABL Agent’s own name, from time to time, in the ABL Agent’s sole discretion, for the  purposes of carrying out the terms of this paragraph, to take any and all appropriate action and to execute  and deliver any and all documents and instruments as may be necessary or desirable to accomplish the  purposes of this paragraph, including any financing statements, endorsements, assignments, releases or  other documents or instruments of transfer (which appointment, being coupled with an interest, is  irrevocable).  All proceeds realized from any such sale or disposition shall be applied to the ABL  Obligations or the First Lien Notes Obligations in accordance with the terms of this Agreement.  In the event of (A) any private or public sale of all or any portion of the Non-ABL  Priority Collateral in connection with any Exercise of Secured Creditor Remedies by or with the consent  of the First Lien Notes Agent (other than in connection with a refinancing as described in Section 5.2(c))  or (B) any sale, transfer or other disposition of all or any portion of the Non-ABL Priority Collateral  (other than in connection with a refinancing as described in Section 5.2(c)), so long as such sale, transfer  or other disposition is then permitted by the First Lien Notes Documents and the ABL Documents, the  ABL Agent agrees, on behalf of itself and the ABL Secured Parties, that such sale, transfer, other  disposition or release will be free and clear of the Liens on such Non-ABL Priority Collateral securing the  ABL Obligations and the ABL Agent’s and the ABL Secured Parties’ Liens with respect to the Non-ABL  Priority Collateral so sold, transferred, disposed or released shall terminate and be automatically  unconditionally and simultaneously released without further action.  In furtherance of, and subject to, the  foregoing, the ABL Agent agrees, at the Credit Parties’ expense, that it will promptly execute any and all  Lien releases or other documents reasonably requested by the First Lien Notes Agent in connection  therewith.  The ABL Agent hereby appoints the First Lien Notes Agent and any officer or duly authorized  person of the First Lien Notes Agent, with full power of substitution, as its true and lawful attorney-in- fact with full irrevocable power of attorney in the place and stead of the ABL Agent and in the name of  the ABL Agent or in the First Lien Notes Agent’s own name, from time to time, in the First Lien Notes  Agent’s sole discretion, for the purposes of carrying out the terms of this paragraph, to take any and all  appropriate action and to execute and deliver any and all documents and instruments as may be necessary  or desirable to accomplish the purposes of this paragraph, including any financing statements,  endorsements, assignments, releases or other documents or instruments of transfer (which appointment,  

 

  -18-  being coupled with an interest, is irrevocable).  All proceeds realized from any such sale or disposition  shall be applied to the ABL Obligations or the First Lien Notes Obligations in accordance with the terms  of this Agreement.  No New Liens.  Subject to Section 2.5(c), until the date upon which the Discharge of ABL Obligations  shall have occurred, no First Lien Notes Secured Party shall acquire or hold any Lien on any assets of any  Credit Party (other than any real estate that is a Mortgaged Property) securing any First Lien Notes  Obligation which assets are not also subject to the Lien of the ABL Agent under the ABL Documents.  Subject to Section 2.5(c), if any First Lien Notes Secured Party shall (nonetheless and in breach hereof)  acquire or hold any Lien on any assets of any Credit Party securing any First Lien Notes Obligation  which assets are not also subject to the Lien of the ABL Agent under the ABL Documents, subject to the  Lien Priority set forth herein, then the First Lien Notes Agent (or the relevant First Lien Notes Party),  shall, without the need for any further consent of any other First Lien Notes Party, the Company or any  Guarantor, and notwithstanding anything to the contrary in any other First Lien Notes Document, be  deemed to also hold and have held such Lien as bailee for the benefit of the ABL Agent as security for the  ABL Obligations (subject to the Lien Priority and other terms hereof) and shall promptly notify the ABL  Agent in writing of the existence of such Lien.  Until the date upon which the Discharge of  First Lien Notes Obligations shall have  occurred, no ABL Secured Party shall acquire or hold any Lien on any assets of any Credit Party securing  any ABL Obligation which assets are not also subject to the Lien of each of the First Lien Notes Agent, or  any other agent under any First Lien Notes Documents, subject to the Lien Priority set herein. If any ABL  Secured Party shall (nonetheless and in breach of this Agreement) acquire or hold any Lien on any assets  of the Company or any Guarantor securing any ABL Obligations which assets are not also subject to the  Lien of the First Lien Notes Agent, subject to the Lien Priority set forth herein, then the ABL Agent (or  the relevant ABL Secured Party) shall, without the need for any further consent of any other ABL  Secured Party, the Company or any Guarantor and notwithstanding anything to the contrary in any other  ABL Document be deemed to also hold and have held such Lien as bailee for the benefit of the First Lien  Notes Agent as security for the First Lien Notes Obligations (subject to the Lien Priority and other terms  hereof) and shall promptly notify the First Lien Notes Agent in writing of the existence of such Lien.  Notwithstanding anything in this Agreement to the contrary, the provisions of clauses (a)  and (b) of this Section 2.5 shall not apply to (i) any real property a mortgage over which has been granted  pursuant to the terms of the First Lien Notes Documents and has not been granted pursuant to the terms of  the ABL Documents, [or] (ii) any cash or cash equivalents pledged to secure ABL Obligations consisting  of reimbursement obligations in respect of letters of credit [or (iii) or (iii) any Canadian Collateral. The  First Lien Notes Agent, on behalf of itself and/or the First Lien Notes Secured Parties, acknowledges and  agrees that, notwithstanding anything in this Agreement to the contrary, no First Lien Notes Secured  Party shall (a) have any Lien on the Canadian Collateral or any other rights thereto or interests therein, (b)  commence or take any enforcement action with respect to the Canadian Subsidiaries or the Canadian  Collateral or (c) contest, protest, object to, or interfere with the manner in which the ABL Agent or any  ABL Secured Party seeks to enforce its Liens in any Canadian Collateral]16.      16 Bracketed language to be included at the request of the ABL Agent if the fixed asset facility is not secured by  assets of the Canadian subsidiaries.   

 

  -19-  Waiver of Marshalling.  Until the Discharge of the ABL Obligations, the First Lien Notes Agent, on behalf of  itself and the applicable First Lien Notes Secured Parties, agrees not to assert and hereby waives, to the  fullest extent permitted by law, any right to demand, request, plead or otherwise assert or otherwise claim  the benefit of, any marshalling, appraisal, valuation or other similar right that may otherwise be available  under applicable law with respect to the ABL Priority Collateral or any other similar rights a junior  secured creditor may have under applicable law.  Until the Discharge of the First Lien Notes Obligations, the ABL Agent, on behalf of  itself and the ABL Secured Parties, agrees not to assert and hereby waives, to the fullest extent permitted  by law, any right to demand, request, plead or otherwise assert or otherwise claim the benefit of, any  marshalling, appraisal, valuation or other similar right that may otherwise be available under applicable  law with respect to the Non-ABL Priority Collateral or any other similar rights a junior secured creditor  may have under applicable law.    ACTIONS OF THE PARTIES  Certain Actions Permitted.  The First Lien Notes Agent and the ABL Agent may make  such demands or file such claims or proofs of claim in respect of the First Lien Notes Obligations or the  ABL Obligations, as applicable, as are necessary to prevent the waiver or bar of such claims under  applicable statutes of limitations or other statutes, court orders, or rules of procedure at any time.  Agent for Perfection.  The ABL Agent, for and on behalf of itself and each ABL  Secured Party, and the First Lien Notes Agent, for and on behalf of itself, each First Lien Notes Secured  Party and each Future Notes Indebtedness Secured Party, as applicable, each agree to hold all Control  Collateral and Cash Collateral that is part of the Collateral in their respective possession, custody, or  control (or in the possession, custody, or control of agents or bailees for either) as agent for the other  solely for the purpose of perfecting the security interest granted to each in such Control Collateral or Cash  Collateral, subject to the terms and conditions of this Section 3.2.  None of the ABL Agent, the ABL  Secured Parties, the First Lien Notes Agent, the First Lien Notes Secured Parties or the Future Notes  Indebtedness Secured Parties, as applicable, shall have any obligation whatsoever to the others to assure  that the Control Collateral is genuine or owned by any Borrower, any Guarantor, or any other Person or to  preserve rights or benefits of any Person.  The duties or responsibilities of the ABL Agent and the First  Lien Notes Agent under this Section 3.2 are and shall be limited solely to holding or maintaining control  of the Control Collateral and the Cash Collateral as agent for the other Party for purposes of perfecting the  Lien held by the First Lien Notes Agent or the ABL Agent, as applicable.  The ABL Agent is not and  shall not be deemed to be a fiduciary of any kind for the First Lien Notes Agent, the First Lien Notes  Secured Parties, the Future Notes Indebtedness Secured Parties, or any other Person.  The First Lien  Notes Agent is not and shall not be deemed to be a fiduciary of any kind for the ABL Agent, the ABL  Secured Parties, or any other Person.  In the event that (a) the First Lien Notes Agent, any First Lien  Notes Secured Party, or any Future Notes Indebtedness Secured Party receives any Collateral or Proceeds  of the Collateral in violation of the terms of this Agreement, or (b) the ABL Agent or any ABL Secured  Party receives any Collateral or Proceeds of the Collateral in violation of the terms of this Agreement,  then such First Lien Notes Agent, such First Lien Notes Secured Party, such Future Notes Indebtedness  Secured Party, the ABL Agent, or such ABL Secured Party, as applicable, shall promptly pay over such  Proceeds or Collateral to (i) in the case of clause (a), the ABL Agent, or (ii) in the case of clause (b), the  First Lien Notes Agent, in each case, in the same form as received with any necessary endorsements, for  application in accordance with the provisions of Section 4.1 of this Agreement.  

 

  -20-  Sharing of Information and Access.  In the event that the ABL Agent shall, in the  exercise of its rights under the ABL Collateral Documents or otherwise, receive possession or control of  any books and Records of any First Lien Notes Party which contain information identifying or pertaining  to the Non-ABL Priority Collateral, the ABL Agent shall, upon request from the First Lien Notes Agent  and as promptly as practicable thereafter, either make available to the First Lien Notes Agent such books  and Records for inspection and duplication or provide to the First Lien Notes Agent copies thereof.  In the  event that the First Lien Notes Agent shall, in the exercise of its rights under the applicable First Lien  Notes Collateral Documents or otherwise, receive possession or control of any books and records of any  ABL Credit Party which contain information identifying or pertaining to any of the ABL Priority  Collateral, such First Lien Notes Agent shall, upon request from the ABL Agent and as promptly as  practicable thereafter, either make available to the ABL Agent such books and records for inspection and  duplication or provide the ABL Agent copies thereof.  Insurance.  Proceeds of Collateral include insurance proceeds and, therefore, the Lien  Priority shall govern the ultimate disposition of casualty insurance proceeds.  Each of the ABL Agent, and  the First Lien Notes Agent shall be named as additional insured or loss payee, as applicable, with respect  to all insurance policies relating to Collateral.  The ABL Agent shall have the sole and exclusive right, as  against the First Lien Notes Agent, to adjust settlement of insurance claims in the event of any covered  loss, theft or destruction of ABL Priority Collateral.  The First Lien Notes Agent shall have the sole and  exclusive right, as against the ABL Agent, to adjust settlement of insurance claims in the event of any  covered loss, theft or destruction of Non-ABL Priority Collateral.  All proceeds of such insurance shall be  remitted to the ABL Agent or the applicable First Lien Notes Agent, as the case may be, and each of the  First Lien Notes Agent and ABL Agent shall cooperate (if necessary) in a reasonable manner in effecting  the payment of insurance proceeds in accordance with Section 4.1 hereof.  No Additional Rights For the Credit Parties Hereunder.  Except as provided in  Section 3.6, if any ABL Secured Party or First Lien Notes Secured Party shall enforce its rights or  remedies in violation of the terms of this Agreement, the Credit Parties shall not be entitled to use such  violation as a defense to any action by any ABL Secured Party or First Lien Notes Secured Party, nor to  assert such violation as a counterclaim or basis for set off or recoupment against any ABL Secured Party  or First Lien Notes Secured Party.  Inspection Rights and Insurance.  Without limiting any rights the ABL Agent or any other ABL Secured Party may  otherwise have under applicable law or by agreement, the ABL Agent, the ABL Secured Parties and any  representatives designated by the ABL Agent may, at any time and whether or not the First Lien Notes  Agent or any other First Lien Notes Secured Party has commenced and is continuing to Exercise Any  Secured Creditor Remedies (the “ABL Permitted Access Right”), (i) during normal business hours on  any business day, access ABL Priority Collateral that (A) is stored or located in or on, (B) has become an  accession with respect to (within the meaning of Section 9-335 of the Uniform Commercial Code), or (C)  has been commingled with (within the meaning of Section 9-336 of the Uniform Commercial Code),  Non-ABL Priority Collateral and (ii) in the event of any liquidation of the ABL Priority Collateral (or any  other Exercise of Secured Creditor Remedies by the ABL Agent or any representatives designated by the  ABL Agent (including any ABL Borrower or ABL Guarantor) acting with the consent or on behalf of the  ABL Agent), use the Non-ABL Priority Collateral (including without limitation, Equipment, Fixtures,  Intellectual Property, General Intangibles and Real Estate) (A) in the case of Non-ABL Priority Collateral  other than Intellectual Property, until the date that is 120 days after the commencement of such  liquidation of the ABL Priority Collateral or Exercise of Secured Creditor Remedies, as the case may be,  and (B) in the case of Intellectual Property until the liquidation of such ABL Priority Collateral is  

 

  -21-  completed, non-exclusively, royalty free and without other costs, expenses or charges, in the case of each  of (i) and (ii), (x) for the limited purposes of assembling, inspecting, copying or downloading information  stored on, taking actions to perfect its Lien on, completing a production run of inventory involving, taking  possession of, moving, preparing and advertising for sale, selling, liquidating (by public auction, private  sale or a “store closing”, “going out of business” or similar sale, whether in bulk, in lots or to customers  in the ordinary course of business, which sale may include augmented inventory of the same type sole in  the ABL Borrowers’ and ABL Guarantors’ business), storing or otherwise dealing with, or to Exercise  Any Secured Creditor Remedies with respect to, the ABL Priority Collateral (collectively, “ABL  Permitted Access Purposes”) and (y) without notice to, the involvement of or interference by any First  Lien Notes Secured Party or liability to any First Lien Notes Secured Party.  In the event that any ABL  Secured Party has commenced and is continuing to Exercise Any Secured Creditor Remedies with respect  to any ABL Priority Collateral, neither the First Lien Notes Agent nor any First Lien Notes Secured Party  may sell, assign or otherwise transfer the related Non-ABL Priority Collateral prior to the expiration of  the 120-day period commencing on the date such ABL Secured Party begins to Exercise Any Secured  Creditor Remedies, unless the purchaser, assignee or transferee thereof agrees to be bound by the  provisions of this Section 3.6.  If any stay or other order that prohibits the ABL Agent and other ABL  Secured Parties from commencing and continuing to Exercise Any Secured Creditor Remedies with  respect to ABL Priority Collateral has been entered by a court of competent jurisdiction, such 120-day  period shall be tolled during the pendency of any such stay or other order.  The ABL Agent and the ABL  Secured Parties shall not be obligated to pay any amounts to the First Lien Notes Agent or the First Lien  Notes Secured Parties (or any Person claiming by, through or under the First Lien Notes Secured Parties,  including any purchaser of the Non-ABL Priority Collateral) or to the ABL Borrowers and ABL  Guarantors, for or in respect of the use by the ABL Agent and the ABL Secured Parties of the Non-ABL  Priority Collateral in accordance with this Section and none of the ABL Agent or the ABL Secured  Parties shall be obligated to secure, protect, insure or repair any such Non-ABL Priority Collateral (other  than for damages caused by the ABL Agent, the ABL Secured Parties or other respective employees,  agents and representatives).  The First Lien Notes Agent and the other First Lien Notes Secured Parties shall use  commercially reasonable efforts to not hinder or obstruct the ABL Agent and the other ABL Secured  Parties from exercising the ABL Permitted Access Right.  Subject to the terms hereof, the First Lien Notes Agent may advertise and conduct public  auctions or private sales of the Non-ABL Priority Collateral without notice (except as required herein or  by applicable law) to, the involvement of or interference by any ABL Secured Party or liability to any  ABL Secured Party.    APPLICATION OF PROCEEDS  Application of Proceeds.  Revolving Nature of ABL Obligations.  Each of the First Lien Notes Agent, for and on  behalf of itself, the First Lien Notes Secured Parties, and the Future Notes Indebtedness Secured Parties,  expressly acknowledges and agrees that (i) any ABL Credit Agreement includes a revolving commitment,  that in the ordinary course of business the ABL Agent and the ABL Secured Parties will apply payments  and make advances thereunder, and that no application of any Payment Collateral or Cash Collateral or  the release of any Lien by the ABL Agent upon any portion of the Collateral in connection with a  permitted disposition under any ABL Credit Agreement shall constitute the Exercise of Secured Creditor  Remedies under this Agreement; (ii) the amount of the ABL Obligations that may be outstanding at any  

 

  -22-  time or from time to time may be increased or reduced and subsequently reborrowed, and that the terms  of the ABL Obligations may be modified, extended or amended from time to time, and that the aggregate  amount of the ABL Obligations may be increased, replaced or refinanced, in each event, without notice to  or consent by the First Lien Notes Secured Parties and without affecting the provisions hereof; and (iii) all  ABL Priority Collateral received by the ABL Agent may be applied, reversed, reapplied, credited, or  reborrowed, in whole or in part, to the ABL Obligations at any time.  The Lien Priority shall not be  altered or otherwise affected by any such amendment, modification, supplement, extension, repayment,  reborrowing, increase, replacement, renewal, restatement or refinancing of either the ABL Obligations or  the First Lien Notes Obligations, or any portion thereof.  Application of Proceeds of ABL Priority Collateral.  The ABL Agent and the First Lien  Notes Agent hereby agree that all ABL Priority Collateral, and all ABL Priority Proceeds thereof,  received by either of them in connection with any enforcement action with respect to any Collateral  (including set off and Exercise of Secured Creditor Remedies with respect to ABL Priority Collateral) or  any Insolvency Proceeding shall be applied,  1. first, to the payment of costs and expenses of the ABL Agent in connection with  such Exercise of Secured Creditor Remedies,  2. second, to the payment of the ABL Obligations in accordance with the ABL  Documents until the Discharge of ABL Obligations shall have occurred,  3. third, to the payment of the First Lien Notes Obligations, and  4. fourth, the balance, if any, to the Credit Parties or to whosoever may be lawfully  entitled to receive the same or as a court of competent jurisdiction may direct;  Application of Proceeds of Non-ABL Priority Collateral.  The ABL Agent and the First  Lien Notes Agent hereby agree that all Non-ABL Priority Collateral, and all Notes Priority Proceeds  thereof, received by either of them in connection with any enforcement action with respect to any  Collateral (including set off and Exercise of Secured Creditor Remedies with respect to Non-ABL Priority  Collateral) or any Insolvency Proceeding shall be applied,  5. first, to the payment of costs and expenses of the First Lien Notes Agent in  connection with such Exercise of Secured Creditor Remedies,  6. second, to the payment of the First Lien Notes Obligations in accordance with the  First Lien Notes Documents until the Discharge of First Lien Notes Obligations shall have occurred,  7. third, to the payment of the ABL Obligations; and  8. fourth, the balance, if any, to the Credit Parties or to whosoever may be lawfully  entitled to receive the same or as a court of competent jurisdiction may direct;  Limited Obligation or Liability.  In exercising remedies, whether as a secured creditor or  otherwise, the ABL Agent shall have no obligation or liability to the First Lien Notes Agent or to any  First Lien Notes Secured Party or to any Future Notes Indebtedness Secured Party, and no First Lien  Notes Agent shall have any obligation or liability to the ABL Agent or any ABL Secured Party, regarding  the adequacy of any Proceeds or for any action or omission, save and except solely for an action or  omission that breaches the express obligations undertaken by each Party under the terms of this  Agreement so long as such exercise of remedies is conducted in a commercially reasonable manner, in  accordance with mandatory provisions of applicable law and does not breach the provisions of this  Agreement.  Turnover of Cash Collateral After Discharge.  So long as neither the Discharge of ABL  Obligations nor the Discharge of First Lien Notes Obligations has occurred, whether or not any  Insolvency Proceeding has been commenced by or against any Borrower or any Guarantor, any Collateral  or Proceeds thereof received by any Collateral Agent or any First Lien Notes Secured Parties or the ABL  

 

  -23-  Secured Parties in connection with the exercise of any right or remedy (including set off) relating to the  Collateral or otherwise received in contravention of this Agreement shall be segregated and held in trust  and forthwith paid over to the Collateral Agent with a senior lien on such Collateral for the benefit of the  First Lien Notes Secured Parties or the ABL Secured Parties, as the case may be, in the same form as  received, with any necessary endorsements or as a court of competent jurisdiction may otherwise direct.   Each Collateral Agent is hereby authorized by the other Collateral Agent to make any such endorsements  as agent for the other Collateral Agent or any First Lien Notes Secured Parties or the ABL Secured  Parties, as the case may be.  This authorization is coupled with an interest and is irrevocable until the  Discharge of ABL Obligations and Discharge of First Lien Notes Obligations.  Upon the Discharge of  ABL Obligations, the ABL Agent shall (at the ABL Borrowers’ expense) deliver to the First Lien Notes  Agent or shall execute such documents as the First Lien Notes Agent may reasonably request (at the ABL  Borrowers’ expense) to enable the First Lien Notes Agent to have control over any Cash Collateral or  Control Collateral still in the ABL Agent’s possession, custody, or control in the same form as received  with any necessary endorsements, or as a court of competent jurisdiction may otherwise direct.  Upon the  Discharge of First Lien Notes Obligations, the First Lien Notes Agent shall (the First Lien Notes Issuer’s  expense) deliver to the ABL Agent or shall execute such documents as the ABL Agent may reasonably  request to enable the ABL Agent to have control over any Cash Collateral or Control Collateral still in the  First Lien Notes Agent’s possession, custody or control in the same form as received with any necessary  endorsements, or as a court of competent jurisdiction may otherwise direct.  Specific Performance.  Each of the ABL Agent and the First Lien Notes Agent is hereby  authorized to demand specific performance of this Agreement, whether or not any Borrower or any  Guarantor shall have complied with any of the provisions of any of the Credit Documents, at any time  when the other Party shall have failed to comply with any of the provisions of this Agreement applicable  to it.  Each of the ABL Agent, for and on behalf of itself and the ABL Secured Parties, and the First Lien  Notes Agent, for and on behalf of itself, the First Lien Notes Secured Parties, and the Future Notes  Indebtedness Secured Parties, hereby irrevocably waives any defense based on the adequacy of a remedy  at law that might be asserted as a bar to such remedy of specific performance.  Exercise of Remedies – Set Off and Tracing of and Priorities in Proceeds.  The First Lien Notes Agent, for itself and on behalf of the applicable First Lien Notes  Secured Parties, agrees that prior to an issuance of an Enforcement Notice, all funds deposited in an  account subject to a control agreement in favor of the ABL Agent or a Dominion Account (as defined in  the ABL Credit Agreement as in effect on the date hereof) that constitute ABL Priority Collateral and  then applied to the ABL Obligations shall be treated as ABL Priority Collateral and, unless the ABL  Agent has actual knowledge to the contrary, any claim that payments made to the ABL Agent through the  Deposit Accounts and Securities Accounts that are subject to such control agreements or Dominion  Accounts, respectively, are Proceeds of or otherwise constitute Non-ABL Priority Collateral are waived  by the First Lien Notes Agent and the First Lien Notes Secured Parties; provided that after the issuance of  an Enforcement Notice by the First Lien Notes Agent, all identifiable proceeds of Non-ABL Priority  Collateral shall be deemed Non-ABL Priority Collateral, whether or not held in an account subject to a  control agreement.  The ABL Agent, for itself and on behalf of the ABL Secured Parties, and the First Lien  Notes Agent, for itself and on behalf of the First Lien Notes Secured Parties, further agree that prior to an  issuance of an Enforcement Notice, any Proceeds of Collateral, whether or not deposited in an account  subject to a deposit account control agreement or a securities account control agreement, shall not (as  between the Collateral Agents, the ABL Secured Parties and the First Lien Notes Secured Parties) be  treated as Proceeds of Collateral for purposes of determining the relative priorities in the Collateral.  

 

  -24-    INTERCREDITOR ACKNOWLEDGEMENTS AND WAIVERS  Notice of Acceptance and Other Waivers.  All ABL Obligations at any time made or incurred by any Borrower or any Guarantor  shall be deemed to have been made or incurred in reliance upon this Agreement, and each of the First  Lien Notes Agent, on behalf of itself, the First Lien Notes Secured Parties, and the Future Notes  Indebtedness Secured Parties, hereby waives notice of acceptance, or proof of reliance by the ABL Agent  or any ABL Secured Party of this Agreement, and notice of the existence, increase, renewal, extension,  accrual, creation, or non-payment of all or any part of the ABL Obligations.  All First Lien Notes  Obligations at any time made or incurred by any Borrower or any Guarantor shall be deemed to have been  made or incurred in reliance upon this Agreement, and the ABL Agent, on behalf of itself and the ABL  Secured Parties, hereby waives notice of acceptance, or proof of reliance, by the First Lien Notes Agent,  any First Lien Notes Secured Party, or any Future Notes Indebtedness Secured Party of this Agreement,  and notice of the existence, increase, renewal, extension, accrual, creation, or non-payment of all or any  part of the First Lien Notes Obligations.  None of the ABL Agent, any ABL Secured Party, or any of their respective Affiliates,  directors, officers, employees, or agents shall be liable for failure to demand, collect, or realize upon any  of the Collateral or any Proceeds, or for any delay in doing so, or shall be under any obligation to sell or  otherwise dispose of any Collateral or Proceeds thereof or to take any other action whatsoever with regard  to the Collateral or any part or Proceeds thereof, except as specifically provided in this Agreement.  If the  ABL Agent or any ABL Lender honors (or fails to honor) a request by any Borrower for an extension of  credit pursuant to any ABL Credit Agreement or any of the other ABL Documents, whether the ABL  Agent or any ABL Lender has knowledge that the honoring of (or failure to honor) any such request  would constitute a default under the terms of any First Lien Notes Indenture, or any other First Lien Notes  Document (but not a default under this Agreement) or an act, condition, or event that, with the giving of  notice or the passage of time, or both, would constitute such a default, or if the ABL Agent or any ABL  Secured Party otherwise should exercise any of its contractual rights or remedies under any ABL  Documents (subject to the express terms and conditions hereof), neither the ABL Agent nor any ABL  Secured Party shall have any liability whatsoever to the First Lien Notes Agent, any First Lien Notes  Secured Party, or any Future Notes Indebtedness Secured Party as a result of such action, omission, or  exercise (so long as any such exercise does not breach the express terms and provisions of this  Agreement).  The ABL Agent and the ABL Secured Parties shall be entitled to manage and supervise  their loans and extensions of credit under any ABL Credit Agreement and any of the other ABL  Documents as they may, in their sole discretion, deem appropriate, and may manage their loans and  extensions of credit without regard to any rights or interests that the First Lien Notes Agent or any of the  First Lien Notes Secured Parties or any of the Future Notes Indebtedness Secured Parties have in the  Collateral, except as otherwise expressly set forth in this Agreement.  Each of the First Lien Notes Agent,  on behalf of itself, the First Lien Notes Secured Parties, and the Future Notes Indebtedness Secured  Parties, agrees that neither the ABL Agent nor any ABL Secured Party shall incur any liability as a result  of a sale, lease, license, application, or other disposition of all or any portion of the Collateral or Proceeds  thereof, pursuant to the ABL Documents, so long as such disposition is conducted in accordance with  mandatory provisions of applicable law and does not breach the provisions of this Agreement.  None of the First Lien Notes Agent, any First Lien Notes Secured Party, any Future  Notes Indebtedness Secured Party, or any of their respective Affiliates, directors, officers, employees, or  agents shall be liable for failure to demand, collect, or realize upon any of the Collateral or any Proceeds,  or for any delay in doing so, or shall be under any obligation to sell or otherwise dispose of any Collateral  

 

  -25-  or Proceeds thereof or to take any other action whatsoever with regard to the Collateral or any part or  Proceeds thereof, except as specifically provided in this Agreement.  If the First Lien Notes Agent, any  First Lien Notes Secured Party, or any Future Notes Indebtedness Secured Party honors (or fails to honor)  a request by any Borrower for an extension of credit pursuant to any any First Lien Notes Indenture, or  any of the other First Lien Notes Documents, whether the First Lien Notes Agent, any First Lien Notes  Secured Party, or any Future Notes Indebtedness Secured Party has knowledge that the honoring of (or  failure to honor) any such request would constitute a default under the terms of any ABL Credit  Agreement or any other ABL Document (but not a default under this Agreement) or an act, condition, or  event that, with the giving of notice or the passage of time, or both, would constitute such a default, or if  the First Lien Notes Agent, any First Lien Notes Secured Party, or any Future Notes Indebtedness  Secured Party otherwise should exercise any of its contractual rights or remedies under the First Lien  Notes Documents (subject to the express terms and conditions hereof), none of the First Lien Notes  Agent, any First Lien Notes Secured Party, or any Future Notes Indebtedness Secured Party shall have  any liability whatsoever to the ABL Agent or any ABL Secured Party as a result of such action, omission,  or exercise (so long as any such exercise does not breach the express terms and provisions of this  Agreement).  The First Lien Notes Agent, the First Lien Notes Secured Parties, and the Future Notes  Indebtedness Secured Parties shall be entitled to manage and supervise their loans and extensions of  credit under the First Lien Notes Documents as they may, in their sole discretion, deem appropriate, and  may manage their loans and extensions of credit without regard to any rights or interests that the ABL  Agent or any ABL Secured Party has in the Collateral, except as otherwise expressly set forth in this  Agreement.  The ABL Agent, on behalf of itself and the ABL Secured Parties, agrees that none of the  First Lien Notes Agent, the First Lien Notes Secured Parties, or the Future Notes Indebtedness Secured  Parties shall incur any liability as a result of a sale, lease, license, application, or other disposition of the  Collateral or any part or Proceeds thereof, pursuant to the First Lien Notes Documents, so long as such  disposition is conducted in accordance with mandatory provisions of applicable law and does not breach  the provisions of this Agreement.  Modifications to ABL Documents and First Lien Notes Documents.  Each of the First Lien Notes Agent, on behalf of itself, the First Lien Notes Secured  Parties, and the Future Notes Indebtedness Secured Parties, hereby agrees that, without affecting the  obligations of the First Lien Notes Agent, the First Lien Notes Secured Parties, and the Future Notes  Indebtedness Secured Parties hereunder, the ABL Agent and the ABL Secured Parties may, at any time  and from time to time, in their sole discretion without the consent of or notice to the First Lien Notes  Agent, any First Lien Notes Secured Party, or any Future Notes Indebtedness Secured Party (except to the  extent such notice or consent is required pursuant to the express provisions of this Agreement), and  without incurring any liability to the First Lien Notes Agent, any First Lien Notes Secured Party, or any  Future Notes Indebtedness Secured Party or impairing or releasing the subordination provided for herein,  amend, restate, supplement, replace, refinance, extend, consolidate, restructure, or otherwise modify any  of the ABL Documents in any manner whatsoever, including, without limitation, to:  change the manner, place, time, or terms of payment or renew, alter or  increase, all or any of the ABL Obligations or otherwise amend, restate, supplement, or otherwise  modify in any manner, or grant any waiver or release with respect to, all or any part of the ABL  Obligations or any ABL Documents or any related documents;  retain or obtain a Lien on any property of any person to secure any of the  ABL Obligations, and in connection therewith to enter into any additional documents related to  the ABL Credit Agreement;  

 

  -26-  amend, or grant any waiver, compromise, or release with respect to, or  consent to any departure from, any guaranty or other obligations of any person obligated in any  manner under or in respect of the ABL Obligations;  release its Lien on any Collateral or other Property;  exercise or refrain from exercising any rights against any Borrower, any  Guarantor, or any other Person;  retain or obtain the primary or secondary obligation of any other Person with  respect to any of the ABL Obligations; and  otherwise manage and supervise the ABL Obligations as the ABL Agent shall  deem appropriate.  The ABL Agent, on behalf of itself and the ABL Secured Parties, hereby agrees that,  without affecting the obligations of the ABL Agent and the ABL Secured Parties hereunder, the First Lien  Notes Agent, the First Lien Notes Secured Parties, and the Future Notes Indebtedness Secured Parties  may, at any time and from time to time, in their sole discretion without the consent of or notice to the  ABL Agent or any ABL Secured Party (except to the extent such notice or consent is required pursuant to  the express provisions of this Agreement), and without incurring any liability to the ABL Agent or any  ABL Secured Party or impairing or releasing the subordination provided for herein, amend, restate,  supplement, replace, refinance, extend, consolidate, restructure, or otherwise modify any of the First Lien  Notes Documents in any manner whatsoever, including, without limitation, to:  change the manner, place, time, or terms of payment or renew, alter or  increase, all or any of the First Lien Notes Obligations or otherwise amend, restate, supplement,  or otherwise modify in any manner, or grant any waiver or release with respect to, all or any part  of the First Lien Notes Obligations or any of the First Lien Notes Documents;  retain or obtain a Lien on any Property of any Person to secure any of the  First Lien Notes Obligations, and in connection therewith to enter into any additional First Lien  Notes Documents;  amend, or grant any waiver, compromise, or release with respect to, or  consent to any departure from, any guaranty or other obligations of any Person obligated in any  manner under or in respect of the First Lien Notes Obligations;  release its Lien on any Collateral or other Property;  exercise or refrain from exercising any rights against any Borrower, any  Guarantor, or any other Person;  retain or obtain the primary or secondary obligation of any other Person with  respect to any of the First Lien Notes Obligations; and  otherwise manage and supervise the applicable First Lien Notes Obligations  as the applicable Term Agent shall deem appropriate.  The ABL Obligations and the First Lien Notes Obligations of any series may be  refinanced, in whole or in part, in each case, without notice to, or the consent (except to the extent a  

 

  -27-  consent is required to permit the refinancing transaction under any ABL Document or any First Lien  Notes Document) of the ABL Agent, the ABL Secured Parties,  First Lien Notes Agent, the First Lien  Notes Secured Parties, or the Future Notes Indebtedness Secured Parties, as the case may be, all without  affecting the Lien Priorities provided for herein or the other provisions hereof, provided, however, that the  holders of such refinancing Indebtedness (or an authorized agent or trustee on their behalf) bind  themselves in writing to the terms of this Agreement pursuant to such documents or agreements  (including amendments or supplements to this Agreement) as the ABL Agent or the First Lien Notes  Agent, as the case may be, shall reasonably request and in form and substance reasonably acceptable to  the ABL Agent or the First Lien Notes Agent, as the case may be, and any such refinancing transaction  shall be in accordance with any applicable provisions of both the ABL Documents and the First Lien  Notes Documents.  Reinstatement and Continuation of Agreement.  If the ABL Agent or any ABL Secured Party is required in any Insolvency Proceeding or  otherwise to turn over or otherwise pay to the estate of any Borrower, any Guarantor, or any other Person  any payment made in satisfaction of all or any portion of the ABL Obligations (an  “ABL Recovery”),  then the ABL Obligations shall be reinstated to the extent of such ABL Recovery.  If this Agreement shall  have been terminated prior to such ABL Recovery, this Agreement shall be reinstated in full force and  effect in the event of such ABL Recovery, and such prior termination shall not diminish, release,  discharge, impair, or otherwise affect the obligations of the Parties from such date of reinstatement.  All  rights, interests, agreements, and obligations of the ABL Agent, the First Lien Notes Agent, the ABL  Secured Parties, the First Lien Notes Secured Parties, and the Future Notes Indebtedness Secured Parties  under this Agreement shall remain in full force and effect and shall continue irrespective of the  commencement of, or any discharge, confirmation, conversion, or dismissal of, any Insolvency  Proceeding by or against any Borrower or any Guarantor or any other circumstance which otherwise  might constitute a defense available to, or a discharge of any Borrower or any Guarantor in respect of the  ABL Obligations or the First Lien Notes Obligations.  No priority or right of the ABL Agent or any ABL  Secured Party shall at any time be prejudiced or impaired in any way by any act or failure to act on the  part of any Borrower or any Guarantor or by the noncompliance by any Person with the terms, provisions,  or covenants of any of the ABL Documents, regardless of any knowledge thereof which the ABL Agent  or any ABL Secured Party may have.  If the First Lien Notes Agent, any First Lien Notes Secured Party, or any Future Notes  Indebtedness Secured Party is required in any Insolvency Proceeding or otherwise to turn over or  otherwise pay to the estate of any Borrower, any Guarantor, or any other Person any payment made in  satisfaction of all or any portion of the First Lien Notes Obligations (a “First Lien Notes Recovery”),  then the First Lien Notes Obligations shall be reinstated to the extent of such First Lien Notes Recovery.   If this Agreement shall have been terminated prior to such First Lien Notes Recovery, this Agreement  shall be reinstated in full force and effect in the event of such First Lien Notes Recovery, and such prior  termination shall not diminish, release, discharge, impair, or otherwise affect the obligations of the Parties  from such date of reinstatement.  All rights, interests, agreements, and obligations of the ABL Agent,  the  First Lien Notes Agent, the ABL Secured Parties, the First Lien Notes Secured Parties, and the Future  Notes Indebtedness Secured Parties under this Agreement shall remain in full force and effect and shall  continue irrespective of the commencement of, or any discharge, confirmation, conversion, or dismissal  of, any Insolvency Proceeding by or against any Borrower or any Guarantor or any other circumstance  which otherwise might constitute a defense available to, or a discharge of any Borrower or any Guarantor  in respect of the ABL Obligations or the First Lien Notes Obligations.  No priority or right of the the First  Lien Notes Agent, any First Lien Notes Secured Party, or any Future Notes Indebtedness Secured Party  shall at any time be prejudiced or impaired in any way by any act or failure to act on the part of any  

 

  -28-  Borrower or any Guarantor or by the noncompliance by any Person with the terms, provisions, or  covenants of any of the First Lien Notes Documents, regardless of any knowledge thereof which the First  Lien Notes Agent, any First Lien Notes Secured Party, or any Future Notes Indebtedness Secured Party  may have.    INSOLVENCY PROCEEDINGS  DIP Financing.  If any Borrower or any Guarantor shall be subject to any Insolvency Proceeding at any  time prior to the Discharge of ABL Obligations, and the ABL Agent or the ABL Secured Parties shall  seek to provide any Borrower or any Guarantor with, or consent to a third party providing, any financing  under Section 364 of the Bankruptcy Code (or any comparable provision of any other applicable Debtor  Relief Law) or consent to any order for the use of cash collateral under Section 363 of the Bankruptcy  Code (or any comparable provision of any other applicable Debtor Relief Law) (each, a “DIP  Financing”), with such DIP Financing to be secured by all or any portion of the ABL Priority Collateral  (including assets that, but for the application of Section 552 of the Bankruptcy Code (or any comparable  provision of any other applicable Debtor Relief Law) would be ABL Priority Collateral) (it being  understood that the ABL Agent and the ABL Secured Parties shall not propose any DIP Financing with  respect to the Non-ABL Priority Collateral in competition with the First Lien Notes Agent and the First  Lien Notes Secured Parties without the consent of the First Lien Notes Agent), then each of the First Lien  Notes Agent, on behalf of itself, the First Lien Notes Secured Parties, and the Future Notes Indebtedness  Secured Parties, agrees that it will raise no objection and will not support any objection to such DIP  Financing or to the Liens securing the same on the grounds of a failure to provide “adequate protection”  for the Liens of such First Lien Notes Agent securing the First Lien Notes Obligations or on any other  grounds (and will not request any adequate protection solely as a result of such DIP Financing), so long as  (i) the First Lien Notes Agent retains its Lien on the Collateral to secure the First Lien Notes Obligations  (in each case, including Proceeds thereof arising after the commencement of the Insolvency Proceeding)  and, as to the Non-ABL Priority Collateral only, such Lien has the same priority as existed prior to the  commencement of the Insolvency Proceeding and any Lien on Non-ABL Priority Collateral securing such  DIP Financing is junior and subordinate to the Lien of the First Lien Notes Agent on the Non-ABL  Priority Collateral, (ii) all Liens on ABL Priority Collateral securing any such DIP Financing shall be  senior to or on a parity with the Liens of the ABL Agent and the ABL Secured Parties securing the ABL  Obligations on ABL Priority Collateral and (iii) if the ABL Agent receives an adequate protection Lien on  post-petition assets of the debtor to secure the ABL Obligations, the First Lien Notes Agent also may seek  to obtain an adequate protection Lien on such post-petition assets of the debtor to secure the First Lien  Notes Obligations, provided that (x) such Liens in favor of the ABL Agent and the First Lien Notes Agent  shall be subject to the provisions of Section 6.1(c) hereof and (y) the foregoing provisions of this Section  6.1(a) shall not prevent the First Lien Notes Agent, the First Lien Notes Secured Parties, and the Future  Notes Indebtedness Secured Parties from objecting to any provision in any DIP Financing relating to any  provision or content of a plan of reorganization.  If any Borrower or any Guarantor shall be subject to any Insolvency Proceeding at any  time prior to the Discharge of First Lien Notes Obligations, and the First Lien Notes Agent, the First Lien  Notes Secured Parties, or the Future Notes Indebtedness Secured Parties shall seek to provide any  Borrower or any Guarantor with, or consent to a third party providing, any DIP Financing, with such DIP  Financing to be secured by all or any portion of the Non-ABL Priority Collateral (including assets that,  but for the application of Section 552 of the Bankruptcy Code (or any comparable provision of any other  applicable Debtor Relief Law) would be Non-ABL Priority Collateral) (it being understood that the First  

 

  -29-  Lien Notes Agent and the First Lien Notes Secured Parties shall not propose any DIP Financing with  respect to the ABL Priority Collateral in competition with the ABL Agent and the ABL Secured Parties  without the consent of the ABL Agent), then the ABL Agent, on behalf of itself and the ABL Secured  Parties, agrees that it will raise no objection and will not support any objection to such DIP Financing or  to the Liens securing the same on the grounds of a failure to provide “adequate protection” for the Liens  of the ABL Agent securing the ABL Obligations or on any other grounds (and will not request any  adequate protection solely as a result of such DIP Financing), so long as (i) the ABL Agent retains its  Lien on the Collateral to secure the ABL Obligations (in each case, including Proceeds thereof arising  after the commencement of the Insolvency Proceeding) and, as to the ABL Priority Collateral only, such  Lien has the same priority as existed prior to the commencement of the Insolvency Proceeding and any  Lien on ABL Priority Collateral securing such DIP Financing is junior and subordinate to the Lien of the  ABL Agent on the ABL Priority Collateral, (ii) all Liens on Non-ABL Priority Collateral securing any  such DIP Financing shall be senior to or on a parity with the Liens of the First Lien Notes Agent, the First  Lien Notes Secured Parties, and the Future Notes Indebtedness Secured Parties securing the First Lien  Notes Obligations on Non-ABL Priority Collateral and (iii) if the First Lien Notes Agent receives an  adequate protection Lien on post-petition assets of the debtor to secure the First Lien Notes Obligations,  the ABL Agent also may seek to obtain an adequate protection Lien on such post-petition assets of the  debtor to secure the ABL Obligations, provided that (x) such Liens in favor of the First Lien Notes Agent  and the ABL Agent shall be subject to the provisions of Section 6.1(c) hereof and (y) the foregoing  provisions of this Section 6.1(b) shall not prevent the ABL Agent and the ABL Secured Parties from  objecting to any provision in any DIP Financing relating to any provision or content of a plan of  reorganization.  All Liens granted to the ABL Agent or the First Lien Notes Agent in any Insolvency  Proceeding, whether as adequate protection or otherwise, are intended by the Parties to be and shall be  deemed to be subject to the Lien Priority and the other terms and conditions of this Agreement. [In  addition, the First Lien Notes Agent, on behalf of itself and/or the First Lien Notes Secured Parties,  acknowledges and agrees that, notwithstanding anything in this Agreement to the contrary, no First Lien  Notes Secured Party shall (a) be granted any Lien on the Canadian Collateral or any other rights thereto or  interests therein in any Insolvency Proceeding, (b) commence or take any enforcement action with respect  to the Canadian Subsidiaries or the Canadian Collateral in any Insolvency Proceeding, or (c) contest,  protest, object to, or interfere with the manner in which the ABL Agent or any ABL Secured Party seeks  to enforce its Liens in any Canadian Collateral in any Insolvency Proceeding.]17  Relief From Stay.  Until the Discharge of ABL Obligations has occurred, each of the  First Lien Notes Agent, on behalf of itself, the First Lien Notes Secured Parties, and the Future Notes  Indebtedness Secured Parties, agrees not to seek relief from the automatic stay or any other stay in any  Insolvency Proceeding in respect of any portion of the ABL Priority Collateral without the ABL Agent’s  express written consent.  Until the Discharge of First Lien Notes Obligations has occurred, the ABL  Agent, on behalf of itself and the ABL Secured Parties, agrees not to seek relief from the automatic stay  or any other stay in any Insolvency Proceeding in respect of any portion of the Non-ABL Priority  Collateral without the First Lien Notes Agent’s express written consent.  No Contest.  Each of the First Lien Notes Agent, on behalf of itself, the First Lien Notes  Secured Parties, and the Future Notes Indebtedness Secured Parties, agrees that, prior to the Discharge of  ABL Obligations, none of them shall contest (or support any other Person contesting) (a) any request by    17 Bracketed language to be included at the request of the ABL Agent if the fixed asset facility is not secured by  assets of the Canadian subsidiaries.   

 

  -30-  the ABL Agent or any ABL Secured Party for adequate protection of its interest in the Collateral (unless  in contravention of Section 6.1(b) above or unless such adequate protection would come in the form of  cash payments from the proceeds of Non-ABL Priority Collateral), or (b) any objection by the ABL  Agent or any ABL Secured Party to any motion, relief, action, or proceeding based on a claim by the  ABL Agent or any ABL Secured Party that its interests in the Collateral (unless in contravention of  Section 6.1(b) above) are not adequately protected (or any other similar request under any law applicable  to an Insolvency Proceeding), so long as any Liens granted to the ABL Agent as adequate protection of its  interests are subject to this Agreement.  The ABL Agent, on behalf of itself and the ABL Secured Parties,  agrees that, prior to the Discharge of First Lien Notes Obligations, none of them shall contest (or support  any other Person contesting) (i) any request by the First Lien Notes Agent, any First Lien Notes Secured  Party, or any Future Notes Indebtedness Secured Party for adequate protection of its interest in the  Collateral (unless in contravention of Section 6.1(a) above or unless such adequate protection would  come in the form of cash payments from the proceeds of ABL Priority Collateral), or (ii) any objection by  the First Lien Notes Agent, any First Lien Notes Secured Party, or any Future Notes Indebtedness  Secured Party to any motion, relief, action or proceeding based on a claim by the First Lien Notes Agent,  any First Lien Notes Secured Party, or any Future Notes Indebtedness Secured Party that its interests in  the Collateral (unless in contravention of Section 6.1(a) above) are not adequately protected (or any other  similar request under any law applicable to an Insolvency Proceeding), so long as any Liens granted to the  First Lien Notes Agent as adequate protection of its interests are subject to this Agreement.  Asset Sales.  Each of the First Lien Notes Agent, on behalf of itself, the First Lien Notes  Secured Parties, and the Future Notes Indebtedness Secured Parties, that it will not oppose any sale  consented to by the ABL Agent of any ABL Priority Collateral pursuant to Section 363(f) of the  Bankruptcy Code (or any comparable provision of any other applicable Debtor Relief Law) so long as the  proceeds of such sale are applied in accordance with this Agreement.  The ABL Agent agrees, on behalf  of itself and the ABL Secured Parties, that it will not oppose any sale consented to by the First Lien Notes  Agent of any Non-ABL Priority Collateral pursuant to Section 363(f) of the Bankruptcy Code (or any  comparable provision of any other applicable Debtor Relief Law) so long as the proceeds of such sale are  applied in accordance with this Agreement.  If such sale of Collateral includes both ABL Priority  Collateral and Non-ABL Priority Collateral and the Parties are unable after negotiating in good faith to  agree on the allocation of the purchase price between the ABL Priority Collateral and Non-ABL Priority  Collateral, either Party may apply to the court in such Insolvency Proceeding to make a determination of  such allocation, and the court’s determination shall be binding upon the Parties.  Separate Grants of Security and Separate Classification.  Each First Lien Notes  Secured Party, each Future Notes Indebtedness Secured Party, the First Lien Notes Agent, each ABL  Secured Party and the ABL Agent acknowledges and agrees that (i) the grants of Liens pursuant to the  ABL Security Documents and the Term Security Documents constitute two or more separate and distinct  grants of Liens and (ii) because of, among other things, their differing rights in the Collateral, the First  Lien Notes Obligations are fundamentally different from the ABL Obligations and must be separately  classified in any plan of reorganization or similar dispositive restructuring plan proposed, confirmed, or  adopted in an Insolvency Proceeding.  To further effectuate the intent of the parties as provided in the  immediately preceding sentence, if it is held that the claims of the ABL Secured Parties and the First Lien  Notes Secured Parties in respect of the Collateral constitute only one secured claim (rather than separate  classes of senior and junior secured claims), then the ABL Secured Parties and the First Lien Notes  Secured Parties hereby acknowledge and agree that all distributions from the Collateral shall be made as  if there were separate classes of ABL Obligation claims and First Lien Notes Obligation claims against  the Credit Parties (with the effect being that, to the extent that the aggregate value of the ABL Priority  Collateral or Non-ABL Priority Collateral is sufficient (for this purpose ignoring all claims held by the  other Secured Parties), the ABL Secured Parties or the First Lien Notes Secured Parties, respectively,  

 

  -31-  shall be entitled to receive, in addition to amounts distributed to them in respect of principal, pre-petition  interest and other claims, all amounts owing in respect of post-petition interest, fees, or expenses that is  available from each pool of Priority Collateral for each of the ABL Secured Parties and the First Lien  Notes Secured Parties, respectively, before any distribution from such pool of Priority Collateral is made  in respect of the claims held by the other Secured Parties, with the other Secured Parties hereby  acknowledging and agreeing to turn over to the respective other Secured Parties amounts otherwise  received or receivable by them from such pool of Priority Collateral to the extent necessary to effectuate  the intent of this sentence, even if such turnover has the effect of reducing the aggregate recoveries.  Enforceability.  The provisions of this Agreement are intended to be and shall be  enforceable under Section 510(a) of the Bankruptcy Code (or any comparable provision of any other  applicable Debtor Relief Law).  ABL Obligations Unconditional.  All rights of the ABL Agent hereunder, and all  agreements and obligations of the First Lien Notes Agent and the Credit Parties (to the extent applicable)  hereunder, shall remain in full force and effect irrespective of:  any lack of validity or enforceability of any ABL Document;  any change in the time, place or manner of payment of, or in any other term  of, all or any portion of the ABL Obligations, or any amendment, waiver or other modification,  whether by course of conduct or otherwise, or any refinancing, replacement, refunding or  restatement of any ABL Document;  any exchange, release, voiding, avoidance or non-perfection of any security  interest in any Collateral or any other collateral, or any release, amendment, waiver or other  modification, whether by course of conduct or otherwise, or any refinancing, replacement,  refunding, restatement or increase of all or any portion of the ABL Obligations or any guarantee  or guaranty thereof; or  any other circumstances that otherwise might constitute a defense (other than  payment in full of the ABL Obligations) available to, or a discharge of, any Credit Party in  respect of the ABL Obligations, or of any of the First Lien Notes Agent or any Credit Party, to  the extent applicable, in respect of this Agreement.  First Lien Notes Obligations Unconditional.  All rights of the First Lien Notes Agent  hereunder, all agreements and obligations of the ABL Agent and the Credit Parties (to the extent  applicable) hereunder, shall remain in full force and effect irrespective of:  any lack of validity or enforceability of any First Lien Notes Document;  any change in the time, place or manner of payment of, or in any other term  of, all or any portion of the First Lien Notes Obligations, or any amendment, waiver or other  modification, whether by course of conduct or otherwise, or any refinancing, replacement,  refunding or restatement of any First Lien Notes Document;  any exchange, release, voiding, avoidance or non-perfection of any security  interest in any Collateral, or any other collateral, or any release, amendment, waiver or other  modification, whether by course of conduct or otherwise, or any refinancing, replacement,  refunding, restatement or increase of all or any portion of the First Lien Notes Obligations or any  guarantee or guaranty thereof; or  

 

  -32-  any other circumstances that otherwise might constitute a defense (other than  payment in full of the First Lien Notes Obligations) available to, or a discharge of, any Credit  Party in respect of the First Lien Notes Obligations, or of any of the ABL Agent or any Credit  Party, to the extent applicable, in respect of this Agreement.  Adequate Protection.  Except to the extent expressly provided in Sections 6.1 and 6.3,  nothing in this Agreement shall limit the rights of the ABL Agent and the ABL Secured Parties, on the  one hand, and the First Lien Notes Agent, the First Lien Notes Secured Parties, and the Future Notes  Indebtedness Secured Parties, on the other hand, from seeking or requesting adequate protection with  respect to their respective interests in the applicable Collateral in any Insolvency Proceeding, including  adequate protection in the form of a cash payment, periodic cash payments, cash payments of interest,  additional collateral or otherwise; provided that (a) in the event that the ABL Agent, on behalf of itself or  any of the ABL Secured Parties, seeks or requests adequate protection in respect of the ABL Obligations  and such adequate protection is granted in the form of a Lien on additional or replacement collateral  comprising assets of the type of assets that constitute Non-ABL Priority Collateral, then the ABL Agent,  on behalf of itself and each of the ABL Secured Parties, agrees that the First Lien Notes Agent shall have  the right to seek or request a senior Lien on such collateral as security and adequate protection for the  First Lien Notes Obligations and that any Lien on such collateral securing or providing adequate  protection for the ABL Obligations shall be subordinate to the Lien on such collateral securing or  providing adequate protection for the First Lien Notes Obligations and (b) in the event that either the First  Lien Notes Agent, on behalf of itself, any of the First Lien Notes Secured Parties, or any of the Future  Notes Indebtedness Secured Parties, seeks or requests adequate protection in respect of the First Lien  Notes Obligations and such adequate protection is granted in the form of a Lien on additional or  replacement collateral comprising assets of the type of assets that constitute ABL Priority Collateral, then  each of the First Lien Notes Agent, on behalf of itself, each of the First Lien Notes Secured Parties, and  each of the Future Notes Indebtedness Secured Parties, agrees that the ABL Agent shall have the right to  seek or request a senior Lien on such collateral as security and adequate protection for the ABL  Obligations and that any Lien on such collateral securing or providing adequate protection for the First  Lien Notes Obligations shall be subordinate to the Lien on such collateral securing or providing adequate  protection for the ABL Obligations.  Plan of Reorganization.  If, in any Insolvency Proceeding, debt obligations of the reorganized debtor secured by  Liens upon the Collateral are distributed, pursuant to a plan of reorganization or similar dispositive  restructuring plan, on account of ABL Obligations and on account of First Lien Notes Obligations, then,  to the extent the debt obligations distributed on account of the ABL Obligations and on account of the  First Lien Notes Obligations are secured by Liens upon the same Collateral, the provisions of this  Agreement will survive the distribution of such debt obligations pursuant to such plan and will apply with  like effect to the Liens securing such debt obligations.  Each of the ABL Secured Parties and the First Lien Notes Secured Parties may vote on  any plan of reorganization or similar dispositive restructuring plan with respect to the ABL Obligations or  the First Lien Notes Obligations (as applicable); provided that none of the ABL Secured Parties or the  First Lien Notes Secured Parties shall propose, vote to accept, or otherwise support a plan of  reorganization, arrangement, compromise or liquidation or similar dispositive restructuring plan, or any  other document, agreement or proposal similar to the foregoing that is inconsistent with or in  contravention of the terms of this Agreement.  

 

  -33-    MISCELLANEOUS  Rights of Subrogation.  Each of the First Lien Notes Agent, on behalf of itself, the First  Lien Notes Secured Parties, and the Future Notes Indebtedness Secured Parties, agrees that no payment to  the ABL Agent or any ABL Secured Party pursuant to the provisions of this Agreement shall entitle the  First Lien Notes Agent, any First Lien Notes Secured Party, or any Future Notes Indebtedness Secured  Party to exercise any rights of subrogation in respect thereof until the Discharge of ABL Obligations shall  have occurred.  Following the Discharge of ABL Obligations, the ABL Agent agrees to execute such  documents, agreements, and instruments as the First Lien Notes Agent, any First Lien Notes Secured  Party, or any Future Notes Indebtedness Secured Party may reasonably request to evidence the transfer by  subrogation to any such Person of an interest in the ABL Obligations resulting from payments to the ABL  Agent by such Person, so long as all costs and expenses (including all reasonable legal fees and  disbursements) incurred in connection therewith by the ABL Agent are paid by the Credit Parties or such  Person upon request for payment thereof.  The ABL Agent, for and on behalf of itself and the ABL  Secured Parties, agrees that no payment to the First Lien Notes Agent, any First Lien Notes Secured  Party, or any Future Notes Indebtedness Secured Party pursuant to the provisions of this Agreement shall  entitle the ABL Agent or any ABL Secured Party to exercise any rights of subrogation in respect thereof  until the Discharge of First Lien Notes Obligations shall have occurred.  Following the Discharge of First  Lien Notes Obligations, the First Lien Notes Agent agrees to execute such documents, agreements, and  instruments as the ABL Agent or any ABL Secured Party may reasonably request to evidence the transfer  by subrogation to any such Person of an interest in the First Lien Notes Obligations resulting from  payments to the First Lien Notes Agent by such Person, so long as all costs and expenses (including all  reasonable legal fees and disbursements) incurred in connection therewith by the First Lien Notes Agent  are paid by the Credit Parties or such Person upon request for payment thereof.  Further Assurances.  The Parties will, at the cost and expense of the Credit Parties, and  at any time and from time to time, promptly execute and deliver all further instruments and documents,  and take all further action, that may be necessary or desirable, or that either Party may reasonably request,  in order to protect any right or interest granted or purported to be granted hereby or to enable the ABL  Agent or the First Lien Notes Agent to exercise and enforce its rights and remedies hereunder; provided,  however, that no Party shall be required to pay over any payment or distribution, execute any instruments  or documents, or take any other action referred to in this Section 7.2, to the extent that such action would  contravene any law, order or other legal requirement or any of the terms or provisions of this Agreement,  and in the event of a controversy or dispute, such Party may interplead any payment or distribution in any  court of competent jurisdiction, without further responsibility in respect of such payment or distribution  under this Section 7.2.  Representations.  The First Lien Notes Agent represents and warrants to the ABL Agent  that it has the requisite power and authority under the First Lien Notes Documents to enter into, execute,  deliver, and carry out the terms of this Agreement on behalf of the First Lien Notes Agent, the First Lien  Notes Secured Parties, and the Future Notes Indebtedness Secured Parties that this Agreement shall be a  binding obligation of the First Lien Notes Agent, enforceable against the First Lien Notes Agent, and that  the terms of the First Lien Notes Indenture authorize the First Lien Notes Agent to execute and deliver  this Agreement and bind the First Lien Notes Secured Parties to the terms hereof.  The ABL Agent  represents and warrants to the First Lien Notes Agent that it has the requisite power and authority under  the ABL Documents to enter into, execute, deliver, and carry out the terms of this Agreement on behalf of  itself and the ABL Secured Parties and that this Agreement shall be a binding obligation of the ABL  Agent and the ABL Secured Parties, enforceable against the ABL Agent and the ABL Secured Parties in  accordance with its terms.  

 

  -34-  Amendments.  No amendment or waiver of any provision of this Agreement nor consent  to any departure by any Party hereto shall be effective unless it is in a written agreement executed by the  First Lien Notes Agent and the ABL Agent and then such waiver or consent shall be effective only in the  specific instance and for the specific purpose for which given.  It is understood that the ABL Agent and  the First Lien Notes Agent, without the consent of any other ABL Secured Party or First Lien Notes  Secured Party, may in their discretion determine that a supplemental agreement (which may take the form  of an amendment and restatement of this Agreement) is necessary or appropriate to facilitate having  additional indebtedness or other obligations of any of the Credit Parties that is secured by liens on the  Collateral that is (x) junior in priority to the Liens of the ABL Agent in the case of ABL Priority  Collateral and (y) pari passu or junior to the Liens of the First Lien Notes Agent in the case of Non-ABL  Priority Collateral  become subject to this Agreement; provided that such additional indebtedness or other  obligations and the Liens securing such indebtedness and obligations (including the priority thereof) is  permitted to be incurred under any ABL Credit Agreement and any First Lien Notes Documents then  extant in accordance with the terms thereof.   Addresses for Notices.  Unless otherwise specifically provided herein, any notice or  other communication herein required or permitted to be given shall be in writing and may be personally  served, telecopied, or sent by overnight express courier service or United States mail and shall be deemed  to have been given when delivered in person or by courier service, upon receipt of a telecopy or five (5)  days after deposit in the United States mail (certified, with postage prepaid and properly addressed).  For  the purposes hereof, the addresses of the parties hereto (until notice of a change thereof is delivered as  provided in this Section) shall be as set forth below or, as to each party, at such other address as may be  designated by such party in a written notice to all of the other parties.  ABL Agent: Bank of America, N.A.  Attn: Nancy Wu   Mail Code: MA5-100-09-12   100 Federal St   Boston, MA, 02110   Phone: 617.434.7554   Fax: 617.535.9657   E-mail: nancy.d.wu@bofa.com    First Lien Notes Agent: [   ]   [   ]  [   ]  Attn: [  ]  Fax No.: [  ]  No Waiver, Remedies.  No failure on the part of any Party to exercise, and no delay in  exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of  any right hereunder 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.  Continuing Agreement, Transfer of Secured Obligations.  This Agreement is a  continuing agreement and shall (a) subject to Section 5.3, remain in full force and effect until the  Discharge of ABL Obligations and the Discharge of First Lien Notes Obligations shall have occurred, (b)  be binding upon the Parties and their successors and assigns, and (c) inure to the benefit of and be  enforceable by the Parties and their respective successors, transferees and assigns.  Nothing herein is  intended, or shall be construed to give, any other Person any right, remedy or claim under, to or in respect  

 

  -35-  of this Agreement or any Collateral.  All references to any Credit Party shall include any Credit Party as  debtor-in-possession and any receiver or trustee for such Credit Party in any Insolvency Proceeding.   Without limiting the generality of the foregoing clause (c), the ABL Agent, any ABL Secured Party, the  First Lien Notes Agent, any First Lien Notes Secured Party, or any Future Notes Indebtedness Secured  Party may assign or otherwise transfer all or any portion of the ABL Obligations or the First Lien Notes  Obligations, as applicable, to any other Person (other than any Borrower, any Guarantor or any Affiliate  of any Borrower or any Guarantor (except as provided in the ABL Credit Agreement or the First Lien  Notes Indenture) and any Subsidiary of any Borrower or any Guarantor), and such other Person shall  thereupon become vested with all the rights and obligations in respect thereof granted to the ABL Agent,  any ABL Secured Party, the First Lien Notes Agent, any First Lien Notes Secured Party, or any Future  Notes Indebtedness Secured Party, as the case may be, herein or otherwise.  The ABL Secured Parties and  the First Lien Notes Secured Parties may continue, at any time and without notice to the other parties  hereto, to extend credit and other financial accommodations, lend monies and provide Indebtedness to, or  for the benefit of, any Credit Party on the faith hereof.  Governing Law: Entire Agreement.  The validity, performance, and enforcement of  this Agreement shall be governed by, and construed in accordance with, the laws of the State of New  York.  This Agreement constitutes the entire agreement and understanding among the Parties with respect  to the subject matter hereof and supersedes any prior agreements, written or oral, with respect thereto.  Counterparts.  This Agreement may be executed in any number of counterparts, and it is  not necessary that the signatures of all Parties be contained on any one counterpart hereof, each  counterpart will be deemed to be an original, and all together shall constitute one and the same document.   Delivery of an executed signature page of this Agreement by facsimile or other electronic transmission  (including “.pdf” via electronic mail) shall be as effective as delivery of a manually executed counterpart  hereof. This Agreement shall be valid, binding, and enforceable against a party only when executed and  delivered by an authorized individual on behalf of the party by means of (i) any electronic signature  permitted by the federal Electronic Signatures in Global and National Commerce Act, state enactments of  the Uniform Electronic Transactions Act, and/or any other relevant electronic signatures law, including  relevant provisions of the UCC (collectively, “Signature Law”); (ii) an original manual signature; or (iii) a  faxed, scanned, or photocopied manual signature. Each electronic signature or faxed, scanned, or  photocopied manual signature shall for all purposes have the same validity, legal effect, and admissibility  in evidence as an original manual signature. Each party hereto shall be entitled to conclusively rely upon,  and shall have no liability with respect to, any faxed, scanned, or photocopied manual signature, or other  electronic signature, of any party and shall have no duty to investigate, confirm or otherwise verify the  validity or authenticity thereof. This Agreement may be executed in any number of counterparts, each of  which shall be deemed to be an original, but such counterparts shall, together, constitute one and the same  instrument. For avoidance of doubt, original manual signatures shall be used for execution or indorsement  of writings when required under the UCC or other Signature Law due to the character or intended  character of the writings.  No Third Party Beneficiaries.  This Agreement is solely for the benefit of the ABL  Agent, ABL Secured Parties, First Lien Notes Agent, First Lien Notes Secured Parties, and Future Notes  Indebtedness Secured Parties.  No other Person (including any Borrower, any Guarantor or any Affiliate  of any Borrower or any Guarantor, or any Subsidiary of any Borrower or any Guarantor) shall be deemed  to be a third party beneficiary of this Agreement.  Headings.  The headings of the articles and sections of this Agreement are inserted for  purposes of convenience only and shall not be construed to affect the meaning or construction of any of  the provisions hereof.  

 

  -36-  Severability.  If any of the provisions in this Agreement shall, for any reason, be held  invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not  affect any other provision of this Agreement and shall not invalidate the Lien Priority or the application of  Proceeds and other priorities set forth in this Agreement.  [Reserved].   VENUE; JURY TRIAL WAIVER.  EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY  SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF  THE SUPREME COURT 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, IN ANY ACTION OR  PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR FOR  RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES  HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN  RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN  SUCH NEW YORK STATE OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL  COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY  SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN  OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER  PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT  ANY ABL SECURED PARTY OR ANY FIRST LIEN NOTES SECURED PARTY MAY  OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS  AGREEMENT OR ANY ABL DOCUMENTS AGAINST ANY CREDIT PARTY OR ITS  PROPERTIES IN THE COURTS OF ANY JURISDICTION.  EACH PARTY HERETO HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A JURY  TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS  AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING  CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER  COMMON LAW OR STATUTORY CLAIMS.  EACH PARTY HERETO REPRESENTS THAT IT  HAS REVIEWED THIS WAIVER AND IT KNOWINGLY AND VOLUNTARILY WAIVES ITS  JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  IN THE EVENT  OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT  TO A TRIAL BY THE COURT.  EACH PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE  OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 7.5.  NOTHING IN THIS  AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE  PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.  Intercreditor Agreement.  This Agreement is the ABL Intercreditor Agreement referred  to in the Original ABL Credit Agreement and the ABL/Cash Flow Intercreditor Agreement referred to in  the Original First Lien Notes Indenture.  Nothing in this Agreement shall be deemed to subordinate the  payment obligations due (i) to any ABL Secured Party to the obligations due to any First Lien Notes  Secured Party or (ii) to any First Lien Notes Secured Party to the obligations due to any ABL Secured  Party, in each case whether before or after the occurrence of an Insolvency Proceeding, it being the intent  

 

  -37-  of the Parties that this Agreement shall effectuate a subordination of Liens but not a subordination of  Indebtedness.  No Warranties or Liability.  The First Lien Notes Agent, and the ABL Agent  acknowledge and agree that neither has made any representation or warranty with respect to the  execution, validity, legality, completeness, collectability or enforceability of any other ABL Document or  any First Lien Notes Document.  Except as otherwise provided in this Agreement, the First Lien Notes  Agent, and the ABL Agent will be entitled to manage and supervise their respective extensions of credit  to any Credit Party in accordance with law and their usual practices, modified from time to time as they  deem appropriate.  Conflicts.  In the event of any conflict between the provisions of this Agreement and the  provisions of any ABL Document or any First Lien Notes Document, the provisions of this Agreement  shall govern.  Information Concerning Financial Condition of the Credit Parties.  The First Lien  Notes Agent, and the ABL Agent hereby assume responsibility for keeping itself informed of the financial  condition of the Credit Parties and all other circumstances bearing upon the risk of nonpayment of the  ABL Obligations or the First Lien Notes Obligations; provided that nothing in this Section 7.18 shall  impose any obligation on the First Lien Notes Agent to keep itself informed of the financial condition or  the risk of nonpayment beyond that which may be required by the First Lien Notes Indenture.  The First  Lien Notes Agent, and the ABL Agent hereby agree that no party shall have any duty to advise any other  party of information known to it regarding such condition or any such circumstances.  In the event the  First Lien Notes Agent or the ABL Agent, in its sole discretion, undertakes at any time or from time to  time to provide any information to any other party to this Agreement, (a) it shall be under no obligation (i)  to provide any such information to such other party or any other party on any subsequent occasion, (ii) to  undertake any investigation not a part of its regular business routine, or (iii) to disclose any other  information, (b) it makes no representation as to the accuracy or completeness of any such information  and (c) the party receiving such information hereby agrees to hold harmless the other party from and  against any and all losses, claims, damages, liabilities and expenses to which such receiving party may  become subject arising out of or in connection with the use of such information.  Agent Capacities.  Except as expressly set forth herein, the ABL Agent and the First  Lien Notes Agent shall not have any duties or obligations in respect of any of the Collateral, all of such  duties and obligations, if any, being subject to and governed by the applicable ABL Documents or First  Lien Notes Documents, as the case may be.  It is understood and agreed that (i) Bank of America is  entering into this Agreement in its capacity as administrative agent and collateral agent under the Original  ABL Credit Agreement, and the provisions of the Original ABL Credit Agreement applicable to Bank of  America as administrative agent and collateral agent thereunder (including its rights, privileges,  immunities and indemnities) shall also apply to Bank of America as the ABL Agent hereunder, and (ii) [    ] is entering into this Agreement in its capacity as notes collateral agent under the Original First Lien  Notes Indenture and the provisions of the Original First Lien Notes Indenture applicable to [   ] as  collateral agent thereunder (including its rights, privileges, immunities and indemnities) shall also apply  to [   ] as First Lien Notes Agent hereunder.   [Remainder of Page Intentionally Left Blank; Signature Pages Follow.]  

 

  [The Gap - Signature Page to Intercreditor Agreement]  IN WITNESS WHEREOF, the ABL Agent, for and on behalf of itself and the ABL Secured  Parties, and the First Lien Notes Agent, for and on behalf of itself, the First Lien Notes Secured Parties,  and the Future Notes Indebtedness Secured Parties have caused this Agreement to be duly executed and  delivered as of the date first above written.  BANK OF AMERICA, N.A., in its capacity as the  ABL Agent  By:   Name:  Title:  

 

  [The Gap - Signature Page to Intercreditor Agreement]  [   ], in its capacity as the First Lien Notes Agent  By:   Name:  Title:  

 

  [The GAP  ̵  Credit Party Acknowledgement to Intercreditor Agreement]  ACKNOWLEDGMENT  Each Borrower and each Guarantor hereby acknowledges that it has received a copy of this  Agreement and consents thereto. Each Borrower and each Guarantor further acknowledges and agrees  that it is not an intended beneficiary or third party beneficiary under this Agreement and that the ABL  Documents and First Lien Notes Documents remain in full force and effect as written.  PARENT BORROWER:   THE GAP, INC.  By:   Name:  Title:  BORRROWERS AND GUARANTORS: THE ENTITIES LIST ON SCHEDULE I HERETO  By:   Name:  Title:  

 

    1        SCHEDULE I TO CREDIT PARTY ACKNOWLEDGEMENT  ATHLETA LLC  BANANA REPUBLIC, LLC  OLD NAVY, LLC,  GAP (CANADA) INC.  OLD NAVY (CANADA) INC.  ATHLETA (ITM) INC.  ATHLETA, INC.  BANANA REPUBLIC (APPAREL), LLC  BANANA REPUBLIC (ITM) INC.  DIRECT CONSUMER SERVICES, LLC  GAP (APPAREL), LLC  GAP (ITM) INC.  GAP INTERNATIONAL SALES, INC.  GAP INTERNATIONAL SOURCING (AMERICAS) LLC  GAP INTERNATIONAL SOURCING (CALIFORNIA), LLC  GAP INTERNATIONAL SOURCING (JV), LLC  GAP INTERNATIONAL SOURCING (U.S.A.) INC.  GAP INTERNATIONAL SOURCING, INC.  GPS CONSUMER DIRECT, INC.  GPS CORPORATE FACILITIES, INC.  GPS REAL ESTATE, INC.  GPS SERVICES, INC.  GPS STRATEGIC ALLIANCES LLC  GPSDC (NEW YORK) INC.  

 

    2        MB 550 TFB, LLC  OLD NAVY (APPAREL), LLC  OLD NAVY (ITM) INC.  OLD NAVY INTERNATIONAL SOURCING, INC.  

 

    1        EXHIBIT G  FORM OF SUPPLEMENTAL GUARANTY  SUPPLEMENTAL GUARANTY (this “Supplemental Guaranty”) dated as of [●],  between [●] (the “New Guarantor”) and BANK OF AMERICA, N.A., as administrative agent  (the “Agent”), under that certain Fourth Amended and Restated Revolving Loan Credit  Agreement, dated as of July 13, 2022 (as amended, restated, amended and restated,  supplemented or otherwise modified from time to time, the “Credit Agreement”), among The  Gap, Inc., a Delaware corporation (“Parent Borrower”), certain of the Parent Borrower’s direct  or indirect wholly-owned domestic subsidiaries from time to time party thereto, as borrowers  (collectively referred to herein as the “U.S. Borrowers” and each, individually, as a “U.S.  Borrower”), Gap (Canada) Inc., a Canadian corporation, Old Navy (Canada) Inc., a Canadian  corporation, and certain of Parent Borrower’s other direct or indirect wholly-owned subsidiaries  incorporated or organized under the laws of Canada or a province or territory thereof from time  to time party thereto, as borrowers (collectively referred to herein as the “Canadian Borrowers”  and each, individually, as a “Canadian Borrower” and together with the U.S. Borrowers,  collectively, referred to herein as “Borrowers” and each, individually, as a “Borrower”), the  other Loan Parties from time to time party thereto, the Lenders from time to time party thereto,  the Issuing Banks and Bank of America, N.A. (“Bank of America”), as administrative agent and  collateral agent (together with any permitted successor in such capacity, the “Agent”).  WHEREAS, certain Subsidiaries of the Parent Borrower are party to the Credit  Agreement as Guarantors;  WHEREAS, [●] desires to become a party to the Credit Agreement as a  [U.S.][Canadian] Guarantor thereunder; and  WHEREAS, terms defined in the Credit Agreement and not otherwise defined  herein have, as used herein, the respective meanings provided for therein;  NOW, THEREFORE, in consideration of the foregoing and other good and  valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties  hereto agree as follows:  1. Guaranty. The New Guarantor hereby acknowledges, agrees and confirms that,  by its execution of this Supplemental Guaranty, the New Guarantor will be deemed to be a  [U.S.][Canadian] Guarantor for all purposes under the Credit Agreement and shall have all of the  obligations of a [U.S.][Canadian] Guarantor thereunder as if it had executed the Credit  Agreement. The New Guarantor hereby ratifies, as of the date hereof, and agrees to be bound by,  all of the terms, provisions and conditions contained in the Credit Agreement and applicable to a  [U.S.][Canadian] Guarantor thereunder including without limitation all of the provisions of  Article III of the Credit Agreement and hereby represents and warranties that all of the  representations and warranties applicable to a [U.S.][Canadian] Guarantor under Section 6.01 of  the Credit Agreement (including with respect to the execution and delivery by such New  

 

    2        Guarantor of this Supplemental Guaranty) are true and correct in all material respects as to such  New Guarantor, except where such representations and warranties expressly relate to an earlier  date. The New Guarantor hereby acknowledges that it has received a copy of the Loan  Documents, as they may have been amended or supplemented from time to time.  2. Together herewith the New Guarantor has delivered to the Agent all  documentation and other information the Agent may reasonably request (a) relating to the  existence of the New Guarantor, (b) the corporate authority for and the validity of this  Supplemental Guaranty and the guaranty under the Credit Agreement and (c) required by  Governmental Authorities under applicable “know your customer” and anti-money laundering  rules and regulations, including the Patriot Act.    3. This Supplemental Guaranty may be executed in any number of counterparts,  each of which when so executed and delivered shall be an original, but all of which shall  constitute one and the same instrument. This Supplemental Guaranty may, if agreed by Bank of  America, 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  Supplemental Guaranty may be executed in as many counterparts as necessary or convenient,  including both paper and electronic counterparts, but all such counterparts are one and the same  Supplemental Guaranty.  For the avoidance of doubt, the authorization under this paragraph may  include, without limitation, use or acceptance by Bank of America 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.  Notwithstanding anything contained herein to the  contrary, Bank of America is under no obligation to accept an Electronic Signature in any form  or in any format unless expressly agreed to by Bank of America pursuant to procedures approved  by it; provided, further, without limiting the foregoing, (a) to the extent Bank of America has  agreed to accept such Electronic Signature, Bank of America shall be entitled to rely on any such  Electronic Signature without further verification and (b) upon the request of Bank of America  any Electronic Signature shall be promptly followed by a manually executed, original  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.  4. THIS SUPPLEMENTAL GUARANTY AND THE RIGHTS AND  OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND  CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE  OF NEW YORK.  [Signature pages follow] 

 

    3        IN WITNESS WHEREOF, the parties hereto have caused this Supplemental  Guaranty to be duly executed by their respective authorized officers as of the day and year first  above written.     [New Guarantor], as a  [U.S.][Canadian] Guarantor     By:     Name:    Title:        Acknowledged and Agreed  as of the date first above written:    BANK OF AMERICA, N.A.,  as Agent     By:     Name:    Title:       

 

      H-1-1  Form of United States Tax Compliance Certificate      EXHIBIT H-1  FORM OF  UNITED STATES TAX COMPLIANCE CERTIFICATE    (For Foreign Lenders That Are Not Partnerships For United States Federal Income Tax  Purposes)    Reference is hereby made to the Fourth Amended and Restated Credit Agreement  dated as of July 13, 2022 (as amended, restated, amended and restated, supplemented or  otherwise modified from time to time, the “Credit Agreement;” the terms defined therein being  used herein as therein defined), among The Gap, Inc., a Delaware corporation (“Parent  Borrower”), certain of the Parent Borrower’s direct or indirect wholly-owned domestic  subsidiaries from time to time party thereto, as borrowers (collectively referred to herein as the  “U.S. Borrowers” and each, individually, as a “U.S. Borrower”), Gap (Canada) Inc., a Canadian  corporation, Old Navy (Canada) Inc., a Canadian corporation, and certain of Parent Borrower’s  other direct or indirect wholly-owned subsidiaries incorporated or organized under the laws of  Canada or a province or territory thereof from time to time party thereto, as borrowers  (collectively referred to herein as the “Canadian Borrowers” and each, individually, as a  “Canadian Borrower” and together with the U.S. Borrowers, collectively, referred to herein as  “Borrowers” and each, individually, as a “Borrower”), the other Loan Parties from time to time  party thereto, the Lenders from time to time party thereto, the Issuing Banks and Bank of  America, N.A. (“Bank of America”), as administrative agent and collateral agent (together with  any permitted successor in such capacity, the “Agent”).      Pursuant to the provisions of Section 4.02(e) of the Agreement, the undersigned  hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any  Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a  bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent  shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (iv) it is  not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C)  of the Code and (v) no payments under any Loan Document are effectively connected with the  undersigned’s conduct of a United States trade or business..    The undersigned has furnished the Agent and the Borrower with a certificate of its  non-United States Person status on IRS Form W-8BEN, IRS Form W-8BEN-E or other  applicable form.  By executing this certificate, the undersigned agrees that (1) if the information  provided on this certificate changes, or if a lapse in time or change in circumstances renders the  information on this certificate obsolete, expired or inaccurate in any respect, the undersigned  shall promptly so inform the Borrower and the Agent in writing and deliver promptly to the  Borrower and the Agent an updated certificate or other appropriate documentation (including any  new documentation reasonably requested by the Borrower or the Agent) or promptly notify the  Borrower and the Agent in writing of its legal ineligibility to do so, and (2) the undersigned shall  

 

      H-1-2  Form of United States Tax Compliance Certificate      have at all times furnished the Borrower and the Agent with a properly completed and currently  effective certificate in either the calendar year in which each payment is to be made to the  undersigned, or in either of the two calendar years preceding each such payment, and at such  times are as reasonably requested by the Borrower or the Agent.     Unless otherwise defined herein, terms defined in the Agreement and used herein  shall have the meanings given to them in the Agreement.    [NAME OF LENDER]  By:  _______________________    Name:  ________________________   Title:  ________________________  Date: ________ __, 20[  ]    

 

    H-2-1  Form of United States Tax Compliance Certificate      EXHIBIT H-2    FORM OF  UNITED STATES TAX COMPLIANCE CERTIFICATE    (For Foreign Participants That Are Not Partnerships For United States Federal Income Tax  Purposes)    Reference is hereby made to the Fourth Amended and Restated Credit Agreement  dated as of July 13, 2022 (as amended, restated, amended and restated, supplemented or  otherwise modified from time to time, the “Credit Agreement;” the terms defined therein being  used herein as therein defined), among The Gap, Inc., a Delaware corporation (“Parent  Borrower”), certain of the Parent Borrower’s direct or indirect wholly-owned domestic  subsidiaries from time to time party thereto, as borrowers (collectively referred to herein as the  “U.S. Borrowers” and each, individually, as a “U.S. Borrower”), Gap (Canada) Inc., a Canadian  corporation, Old Navy (Canada) Inc., a Canadian corporation, and certain of Parent Borrower’s  other direct or indirect wholly-owned subsidiaries incorporated or organized under the laws of  Canada or a province or territory thereof from time to time party thereto, as borrowers  (collectively referred to herein as the “Canadian Borrowers” and each, individually, as a  “Canadian Borrower” and together with the U.S. Borrowers, collectively, referred to herein as  “Borrowers” and each, individually, as a “Borrower”), the other Loan Parties from time to time  party thereto, the Lenders from time to time party thereto, the Issuing Banks and Bank of  America, N.A. (“Bank of America”), as administrative agent and collateral agent (together with  any permitted successor in such capacity, the “Agent”).      Pursuant to the provisions of Section 4.02(e) of the Agreement, the undersigned  hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of  which it is providing this certificate, (ii) it is not a bank within the meaning of Section  881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the  meaning of Section 871(h)(3)(B) of the Code, (iv) it is not a controlled foreign corporation  related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (v) no payments  under any Loan Document are effectively connected with the undersigned’s conduct of a United  States trade or business.    The undersigned has furnished its participating Lender with a certificate of its  non-United States Person status on IRS Form W-8BEN, IRS Form W-8BEN-E or other  applicable form.  By executing this certificate, or if a lapse in time or change in circumstances  renders the information on this certificate obsolete, expired or inaccurate in any respect, the  undersigned agrees that (1) if the information provided on this certificate changes, the  undersigned shall promptly so inform such Lender in writing and deliver promptly to such  Lender an updated certificate or other appropriate documentation (including any new  documentation reasonably requested by such Lender) or promptly notify such Lender in writing  of its legal ineligibility to do so, and (2) the undersigned shall have at all times furnished such  Lender with a properly completed and currently effective certificate in either the calendar year in  

 

    H-2-2  Form of United States Tax Compliance Certificate      which each payment is to be made to the undersigned, or in either of the two calendar years  preceding each such payment, and at such times as are reasonably requested by such Lender..    Unless otherwise defined herein, terms defined in the Agreement and used herein  shall have the meanings given to them in the Agreement.    [NAME OF PARTICIPANT]  By:  _______________________    Name:  ________________________   Title:  ________________________  Date: ________ __, 20[  ]  

 

    H-3-1  Form of United States Tax Compliance Certificate     EXHIBIT H-3    FORM OF  UNITED STATES TAX COMPLIANCE CERTIFICATE    (For Foreign Participants That Are Partnerships For United States Federal Income Tax Purposes)    Reference is hereby made to the Fourth Amended and Restated Credit Agreement  dated as of July 13, 2022 (as amended, restated, amended and restated, supplemented or  otherwise modified from time to time, the “Credit Agreement;” the terms defined therein being  used herein as therein defined), among The Gap, Inc., a Delaware corporation (“Parent  Borrower”), certain of the Parent Borrower’s direct or indirect wholly-owned domestic  subsidiaries from time to time party thereto, as borrowers (collectively referred to herein as the  “U.S. Borrowers” and each, individually, as a “U.S. Borrower”), Gap (Canada) Inc., a Canadian  corporation, Old Navy (Canada) Inc., a Canadian corporation, and certain of Parent Borrower’s  other direct or indirect wholly-owned subsidiaries incorporated or organized under the laws of  Canada or a province or territory thereof from time to time party thereto, as borrowers  (collectively referred to herein as the “Canadian Borrowers” and each, individually, as a  “Canadian Borrower” and together with the U.S. Borrowers, collectively, referred to herein as  “Borrowers” and each, individually, as a “Borrower”), the other Loan Parties from time to time  party thereto, the Lenders from time to time party thereto, the Issuing Banks and Bank of  America, N.A. (“Bank of America”), as administrative agent and collateral agent (together with  any permitted successor in such capacity, the “Agent”).      Pursuant to the provisions of Section 4.02(e) of the Agreement, the undersigned  hereby certifies that (i) it is the sole record owner of the participation in respect of which it is  providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial  owners of such participation, (iii) with respect such participation, neither the undersigned nor  any of its direct or indirect partners/members that is claiming the portfolio interest exemption  (“Applicable Partners/Members”) is a bank within the meaning of Section 881(c)(3)(A) of the  Code, (iv) none of its Applicable Partners/Members is a ten percent shareholder of the Borrower  within the meaning of Section 871(h)(3)(B) of the Code, (v) none of its Applicable  Partners/Members is a controlled foreign corporation related to the Borrower as described in  Section 881(c)(3)(C) of the Code, and (v) no payments under any Loan Document are effectively  connected with the undersigned’s or any of its Applicable Partners’/Members’ conduct of a  United States trade or business.     The undersigned has furnished its participating Lender with IRS Form W-8IMY  accompanied by one of the following forms from each of its partners/members that is claiming  the portfolio interest exemption: (i) an IRS Form W-8BEN, IRS Form W-8BEN-E or other  applicable form or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN, IRS Form  W-8BEN-E or other applicable form from each of such partner’s/member’s beneficial owners  that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned  agrees that (1) if the information provided on this certificate changes, or if a lapse in time or  change in circumstances renders the information on this certificate obsolete, expired or  

 

    H-3-2  Form of United States Tax Compliance Certificate     inaccurate in any respect, the undersigned shall promptly so inform such Lender in writing and  deliver promptly to such Lender an updated certificate or other appropriate documentation  (including any new documentation reasonably requested by such Lender) or promptly notify  such Lender in writing of its legal ineligibility to do so, and (2) the undersigned shall have at all  times furnished such Lender with a properly completed and currently effective certificate in  either the calendar year in which each payment is to be made to the undersigned, or in either of  the two calendar years preceding each such payment, and at such times are as reasonably  requested by such Lender.    Unless otherwise defined herein, terms defined in the Agreement and used herein  shall have the meanings given to them in the Agreement.    [NAME OF PARTICIPANT]  By:  _______________________    Name:  ________________________   Title:  ________________________  Date: ________ __, 20[  ]  

 

  H-4-1  Form of United States Tax Compliance Certificate     EXHIBIT H-4    FORM OF  UNITED STATES TAX COMPLIANCE CERTIFICATE    (For Foreign Lenders That Are Partnerships For United States Federal Income Tax Purposes)    Reference is hereby made to the Fourth Amended and Restated Credit Agreement  dated as of July 13, 2022 (as amended, restated, amended and restated, supplemented or  otherwise modified from time to time, the “Credit Agreement;” the terms defined therein being  used herein as therein defined), among The Gap, Inc., a Delaware corporation (“Parent  Borrower”), certain of the Parent Borrower’s direct or indirect wholly-owned domestic  subsidiaries from time to time party thereto, as borrowers (collectively referred to herein as the  “U.S. Borrowers” and each, individually, as a “U.S. Borrower”), Gap (Canada) Inc., a Canadian  corporation, Old Navy (Canada) Inc., a Canadian corporation, and certain of Parent Borrower’s  other direct or indirect wholly-owned subsidiaries incorporated or organized under the laws of  Canada or a province or territory thereof from time to time party thereto, as borrowers  (collectively referred to herein as the “Canadian Borrowers” and each, individually, as a  “Canadian Borrower” and together with the U.S. Borrowers, collectively, referred to herein as  “Borrowers” and each, individually, as a “Borrower”), the other Loan Parties from time to time  party thereto, the Lenders from time to time party thereto, the Issuing Banks and Bank of  America, N.A. (“Bank of America”), as administrative agent and collateral agent (together with  any permitted successor in such capacity, the “Agent”).      Pursuant to the provisions of Section 4.02(e) of the Agreement, the undersigned  hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s)  evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or  indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s)  evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Agreement  or any other Loan Document, neither the undersigned nor any of its direct or indirect  partners/members that is claiming the portfolio interest exemption (“Applicable  Partners/Members”) is a bank within the meaning of Section 881(c)(3)(A) of the Code, (iv) none  of its Applicable Partners/Members is a ten percent shareholder of the Borrower within the  meaning of Section 871(h)(3)(B) of the Code, (v) none of its Applicable Partners/Members is a  controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the  Code, and (v) no payments under any Loan Document are effectively connected with the  undersigned’s or any of its Applicable Partners’/Members’ conduct of a United States trade or  business.    The undersigned has furnished the Agent and the Borrower with IRS Form W- 8IMY accompanied by one of the following forms from each of its partners/members that is  claiming the portfolio interest exemption:  (i) an IRS Form W-8BEN, IRS Form W-8BEN-E or  other applicable form or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN, IRS  Form W-8BEN-E or other applicable form from each of such partner’s/member’s beneficial  

 

  H-4-2  Form of United States Tax Compliance Certificate     owners that is claiming the portfolio interest exemption.  By executing this certificate, the  undersigned agrees that (1) if the information provided on this certificate changes, or if a lapse in  time or change in circumstances renders the information on this certificate obsolete, expired or  inaccurate in any respect, the undersigned shall promptly so inform the Borrower and the Agent,  in writing and deliver promptly to the Borrower and the Agent an updated certificate or other  appropriate documentation (including any new documentation reasonably requested by the  Borrower or the Agent) or promptly notify the Borrower and the Agent in writing of its legal  ineligibility to do so, and (2) the undersigned shall have at all times furnished the Borrower and  the Agent with a properly completed and currently effective certificate in either the calendar year  in which each payment is to be made to the undersigned, or in either of the two calendar years  preceding each such payment, and at such times are as reasonably requested by the Borrower or  the Agent.    Unless otherwise defined herein, terms defined in the Agreement and used herein  shall have the meanings given to them in the Agreement.  [NAME OF LENDER]  By:  _______________________    Name:  ________________________   Title:  ________________________  Date: ________ __, 20[  ]    

 

  I-1  Form of Borrowing Base Certificate     EXHIBIT I    FORM OF BORROWING BASE CERTIFICATE    [See Attached]    

 

  J-1  Form of Sustainability Pricing Certificate     EXHIBIT J    FORM OF SUSTAINABILITY PRICING CERTIFICATE    [See Attached]EX-4.1

 Exhibit 4.1 

Execution Version 

THIRTY-SIXTH SUPPLEMENTAL INDENTURE 

THIRTY-SIXTH SUPPLEMENTAL INDENTURE (this “Thirty-Sixth Supplemental Indenture”), dated as of July 13, 2022, between
Fidelity National Information Services, Inc., a Georgia corporation (the “Company”), and The Bank of New York Mellon Trust Company, N.A., a national banking association (the “Trustee”). 

WHEREAS, the Company, certain other parties thereto and the Trustee entered into an Indenture (the “Base Indenture”), dated
as of April 15, 2013, pursuant to which the Company may issue Securities from time to time; 
 WHEREAS, the Company proposes to issue
and establish a new series of Securities in accordance with Section 3.1 of the Base Indenture pursuant to this Thirty-Sixth Supplemental Indenture (the Base Indenture, as supplemented and amended by this Thirty-Sixth Supplemental Indenture, the
“Indenture”); and 
 WHEREAS, all things necessary to make this Thirty-Sixth Supplemental Indenture the legal, valid and
binding obligation of the Company have been done. 
 NOW, THEREFORE, for and in consideration of the premises, it is mutually covenanted and
agreed as follows: 
 ARTICLE 1 

DEFINITIONS 

Section 1.01. Definitions. Capitalized terms used herein without definition shall have the respective meanings given them in the
Base Indenture, provided that references to “this Indenture”, “herein”, “hereof” and “hereunder” and other words of a similar import in the Base Indenture shall be deemed to be a reference to the Base
Indenture as supplemented and amended by this Thirty-Sixth Supplemental Indenture. Any references to “Article” or “Section” herein shall be a reference to an article or section of this Thirty-Sixth Supplemental Indenture unless
expressly specified otherwise. For purposes of this Thirty-Sixth Supplemental Indenture, the following terms shall have the meanings specified below, notwithstanding any contrary definition in the Base Indenture. 

“Below Investment Grade Rating Event” means the rating on the Notes (as hereinafter defined) is lowered by each of the Rating
Agencies and the Notes are rated below an Investment Grade Rating by each of the Rating Agencies on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Notes is under publicly
announced consideration for possible downgrade by any Rating Agency). 

 “Change of Control” means the occurrence of any of the following:
(1) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties and assets of the
Company and its Subsidiaries taken as a whole to any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act) other than the Company and its Subsidiaries; (2) the approval by the holders of
the Company’s common stock of any plan or proposal for the liquidation or dissolution of the Company (whether or not otherwise in compliance with the provisions of the Indenture); (3) the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the then outstanding number of shares of the Company’s voting stock; or (4) the
Company consolidates or merges with or into any entity, pursuant to a transaction in which any of the outstanding voting stock of the Company or such other entity is converted into or exchanged for cash, securities or other property (except when
voting stock of the Company constitutes, or is converted into, or exchanged for, at least a majority of the voting stock of the surviving person). 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating
Event. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Fitch” means Fitch Ratings, Inc. 

“Investment Grade Rating” means a rating equal to or higher than BBB- (or the
equivalent) by Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, respectively. 

“Moody’s” means Moody’s Investors Service, Inc. 

“Rating Agencies” means each of Fitch, Moody’s and S&P, so long as such entity makes a rating of the Notes publicly
available; provided, however, if any of Fitch, Moody’s or S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the control of the Company, the Company shall be allowed
to designate a “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) of the Exchange Act (as certified by a resolution of the Board of Directors of the Company) as a replacement agency for the
agency that ceased to make such a rating publicly available. For the avoidance of doubt, failure by the Company to pay rating agency fees to make a rating of the Notes shall not be a “reason outside of the control of the Company” for the
purposes of the preceding sentence. 
 “S&P” means Standard & Poor’s Global Ratings, a division of
S&P Global Inc. 
 “Treasury Rate” means, with respect to any Redemption Date, the yield determined by the Company in
accordance with the following two paragraphs. 

  
 2 

 The Treasury Rate shall be determined by the Company after 4:15 p.m., New York City time (or
after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third Business Day preceding the Redemption Date based upon the yield or yields for the most recent day that
appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as “Selected Interest Rates (Daily)—H.15” (or any successor designation or
publication) (“H.15”) under the caption “U.S. government securities–Treasury constant maturities–Nominal” (or any successor caption or heading). In determining the Treasury Rate, the Company shall select, as
applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the Redemption Date to the Stated Maturity of the principal of the Notes (the “maturity date of the Notes”, and the period to
the maturity date of the Notes, the “Remaining Life”); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields – one yield corresponding to the Treasury constant
maturity on H.15 immediately shorter than and one yield corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life – and shall interpolate to the maturity date of the Notes on a straight-line basis (using
the actual number of days) using such yields and rounding the result to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury
constant maturity on H.15 closest to the Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as
applicable, of such Treasury constant maturity from the Redemption Date. 
 If on the third Business Day preceding the Redemption Date H.15
is no longer published, the Company shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second Business Day preceding such Redemption Date of
the United States Treasury security maturing on, or with a maturity that is closest to, the maturity date of the Notes. If there is no United States Treasury security maturing on the maturity date of the Notes, but there are two or more United
States Treasury securities with a maturity date equally distant from the maturity date of the Notes, one with a maturity date preceding the maturity date of the Notes and one with a maturity date following the maturity date of the Notes, the Company
shall select the United States Treasury security with a maturity date preceding the maturity date of the Notes. If there are two or more United States Treasury securities maturing on the maturity date of the Notes or two or more United States
Treasury securities meeting the criteria of the preceding sentence, the Company shall select from among these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average of
the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States
Treasury security shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal places. 

  
 3 

 Section 1.02. The Base Indenture is hereby amended, solely with respect to the Notes,
by amending the definitions of “Affiliate”, “Credit Agreement”, “Credit Facilities”, “Eligible Cash Equivalents” and “Guarantors” as they appear in Section 1.1 thereof to read as follows: 

“Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, directly or indirectly
controlled by, or under direct or indirect common control with, such Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under
common control with”) with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by
contract or otherwise. 
 “Credit Agreement” means the Seventh Amended and Restated Credit Agreement, dated as of
September 21, 2018, among the Company, J.P. Morgan Chase Bank, N.A., as administrative agent, and various financial institutions and other persons from time to time party thereto, as amended by that certain Amendment Agreement, dated as of
March 29, 2019, that certain Second Amendment Agreement, dated as of April 5, 2019, that certain Third Amendment and Joinder Agreement, dated as of May 29, 2019, that certain Fourth Amendment Agreement, dated as of March 2, 2021,
and as may be further amended, supplemented, or modified from time to time after the date thereof. 
 “Credit Facilities”
means one or more credit facilities (including the Credit Agreement) with banks or other lenders providing for revolving loans or term loans or the issuance of letters of credit or bankers’ acceptances or the like. 

“Eligible Cash Equivalents” means any of the following: (i) securities issued or directly and fully guaranteed or
insured by the United States or any agency or instrumentality thereof (provided that the full faith and credit of the United States is pledged in support thereof) maturing not more than one year after the date of acquisition (or such other
maturities if not prohibited by the Credit Agreement); (ii) time deposits in and certificates of deposit of any Eligible Bank (or in any other financial institution to the extent the amount of such deposit is within the limits insured by the Federal
Deposit Insurance Corporation), provided that such investments have a maturity date not more than two years after the date of acquisition and that the average life of all such investments is one year or less from the respective dates of
acquisition; (iii) repurchase obligations with a term of not more than 180 days for underlying securities of the types described in clause (i) above or clause (iv) below entered into with any Eligible Bank or securities dealers of
recognized national standing; (iv) direct obligations issued by any state of the United States or any political subdivision or public instrumentality thereof, provided that such investments mature, or are subject to tender at the option
of the holder thereof, within 365 days after the date of acquisition (or such other maturities if not prohibited by the Credit Agreement) and, at the time of acquisition, have a rating of at least
“A-2” or “P-2” (or long-term ratings of at least “A3” or “A-”) from either S&P or
Moody’s, or, with respect to municipal bonds, a rating of at least MIG 2 or VMIG 2 from Moody’s (or equivalent ratings by any other nationally recognized rating agency); (v) commercial paper of any Person other than an Affiliate of the
Company and other than structured investment vehicles, provided that such investments have a rating of at least A-2 or P-2 from either S&P or Moody’s and
mature within 180 days after the date of acquisition (or such other maturities if not prohibited by the Credit Agreement); (vi) overnight and demand deposits in and bankers’ acceptances of any Eligible Bank and demand deposits in any bank or
trust company to the extent insured by the Federal 

  
 4 

 
Deposit Insurance Corporation against the Bank Insurance Fund; (vii) money market funds (and shares of investment companies that are registered under the Investment Company Act of 1940)
substantially all of the assets of which comprise investments of the types described in clauses (i) through (vi); (viii) United States dollars, or money in other currencies received in the ordinary course of business; (ix) asset-backed
securities and corporate securities that are eligible for inclusion in money market funds; (x) fixed maturity securities which are rated BBB- and above by S&P or Baa3 and above by Moody’s;
provided such investments will not be considered Eligible Cash Equivalents to the extent that the aggregate amount of investments by the Company and its Subsidiaries in fixed maturity securities which are rated BBB+, BBB or BBB- by S&P or Baa1, Baa2 or Baa3 by Moody’s exceeds 20% of the aggregate amount of their investments in fixed maturity securities; and (xi) instruments equivalent to those referred to in clauses
(i) through (vi) above or funds equivalent to those referred to in clause (vii) above denominated in Euros or any other foreign currency customarily used by corporations for cash management purposes in jurisdictions outside the United
States to the extent advisable in connection with any business conducted by the Company or any Subsidiary, all as determined in good faith by the Company. 

“Guarantors” means, subject to Section 12.7, any Subsidiaries that become Guarantors pursuant to Section 9.9. 

Section 1.03. The Base Indenture is hereby amended, solely with respect to the Notes, by amending Section 9.9 to read as follows:

 “Section 9.9. Guarantees. If this Section 9.9 is specified as applicable to the Securities of a series pursuant to
Section 3.1, the Company will cause each of its wholly-owned Subsidiaries that is formed or otherwise incorporated in the United States or a state thereof or the District of Columbia that guarantees or becomes a
co-obligor in respect of any Debt of the Company under the Credit Facilities after the initial issue date of the Securities of such series to enter into a supplemental indenture in the form of Exhibit A (which
shall not be required to be signed by the other then-existing Guarantors) or as otherwise specified with respect to the Securities of such series pursuant to which such Subsidiary shall agree to guarantee the Securities of such series on the terms
set forth in Article 12 hereof or on such other terms as are specified as applicable to such series pursuant to Section 3.1. Any such additional Guarantor shall be subject to release from such Guarantee under the circumstances set forth in
Section 12.7 or as otherwise specified with respect to such Securities.” 
 Section 1.04. The Base Indenture is hereby
amended, solely with respect to the Notes, by amending Section 12.7(2) thereof to read as follows: 
 “(2) at any time that such
Guarantor is released from all of its obligations (other than contingent indemnification obligations that may survive such release) as a guarantor or co-obligor of all Debt of the Company under the Credit
Facilities except a discharge by or as a result of payment under such guarantee;”. 
 Section 1.05. Reserved. 

  
 5 

 Section 1.06. Reserved. 

Section 1.07 The Base Indenture is hereby amended, solely with respect to the Notes, by amending Section 4.6(c) and
Section 4.6(d) thereof to read as follows: 
 “(c) In the case of an election under Section 4.4, the Company shall have
delivered to the Trustee an Opinion of Counsel to the effect that (i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (ii) since the date of this Indenture, there has been a change
in the applicable federal income tax law, in either case to the effect that, and based thereon such opinion shall confirm that, the beneficial owners of such Securities and any coupons appertaining thereto will not recognize income, gain or loss for
federal income tax purposes as a result of such defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such defeasance had not occurred. 

(d) In the case of an election under Section 4.5, the Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that the beneficial owners of such Securities and any coupons appertaining thereto will not recognize income, gain or loss for federal income tax purposes as a result of such covenant defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such covenant defeasance had not occurred.” 
 ARTICLE
2 
 THE NOTES 

There is hereby established a new series of Securities with the following terms: 

Section 2.01. Title; Nature. Pursuant to the terms hereof and Sections 2.1, 3.1 and 3.3 of the Base Indenture, the Company hereby
creates a series of Securities designated as the “4.500% Senior Notes due 2025” (the “Notes”), which shall be deemed “Securities” for all purposes under the Base Indenture. The CUSIP Number of the Notes shall be
31620MBV7. 
 Section 2.02. Principal Amount. The limit upon the aggregate principal amount of the Notes which may be
authenticated and delivered under the Indenture (except for Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of other Notes pursuant to Sections 3.4, 3.5, 3.6, 8.6 or 10.7 of the Base Indenture or
Section 2.06 or 2.08 of this Thirty-Sixth Supplemental Indenture and except (i) for any Notes which, pursuant to Section 3.3 of the Base Indenture, are deemed never to have been authenticated and delivered thereunder and (ii) as
provided in the last sentence of Section 3.1(c) of the Base Indenture) is $750,000,000. The Company may from time to time, without notice to, or the consent of, the Holders of the Notes increase the principal amount of the Notes, on the same
terms and conditions (except for the issue date, the public offering price and, in some cases, the first interest payment date and the initial interest accrual date); provided that if any additional Notes are issued at a price that causes
them to have “original issue discount” within the meaning of the Internal Revenue 

  
 6 

 
Code of 1986, as amended, and the regulations thereunder, such additional Notes shall not have the same CUSIP Number as the original Notes. The Notes shall be initially issued on the date hereof
and thereafter upon any reopening of the series of which the Notes are a part. 
 Section 2.03. Stated Maturity of Principal.
The date on which the principal of the Notes is payable, unless the Notes are theretofore accelerated or redeemed or purchased pursuant to the Indenture, shall be July 15, 2025. The Notes shall bear no premium upon payment at Stated Maturity.

 Section 2.04. Interest. The rate at which the Notes shall bear interest shall be 4.500% per annum. Interest shall be computed
on the basis of a 360-day year of twelve 30-day months and shall be payable semi-annually in arrears in accordance herewith and with the Indenture. Interest on the Notes
shall accrue on the principal amount from, and including, the most recent date to which interest has been paid or duly provided for or, if no interest has been paid or duly provided for, from, and including, the date hereof, in each case to, but
excluding, the next Interest Payment Date or the date on which the principal of the Notes has been paid or made available for payment, as the case may be. The Interest Payment Dates of the Notes shall be January 15 and July 15 of each
year. The initial Interest Payment Date shall be January 15, 2023. The Regular Record Date corresponding to any Interest Payment Date occurring on January 15 shall be the immediately preceding January 1 (whether or not a Business
Day), and the Regular Record Date corresponding to any Interest Payment Date occurring on July 15 shall be the immediately preceding July 1 (whether or not a Business Day). Interest payable on the Notes on an Interest Payment Date shall be
payable to the Persons in whose name the Notes are registered at the close of business on the Regular Record Date for such Interest Payment Date provided, however, that Defaulted Interest shall be payable as provided in the Base Indenture.

 Section 2.05. Place of Payment. The Place of Payment where the principal of and premium, if any, and interest on the Notes
shall be payable is at the agency of the Company maintained for that purpose at the office of The Bank of New York Mellon Trust Company, N.A., 240 Greenwich Street, 7E, Attention: Corporate Trust Administration, New York, New York 10286;
provided, however, that payment of interest due on an Interest Payment Date may be made at the option of the Company by check mailed to the address of the Person entitled thereto as such address shall appear in the Register or by transfer to
an account maintained by the Person entitled thereto with a bank located in the United States; provided that the Paying Agent shall have received the relevant wire transfer information by the related Regular Record Date; and provided
further that the Depositary, or its nominee, as Holder of Notes in global form, shall be entitled to receive payments of interest, principal and premium, if any, by wire transfer of immediately available funds. 

Section 2.06. Optional Redemption. 

(a) The provisions of Article 10 of the Base Indenture shall be applicable to the Notes, subject to the provisions of this Section 2.06.

  
 7 

 (b) The Company may, at its option, redeem the Notes, in whole or in part, at any time and
from time to time, at a Redemption Price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of (1) (a) the sum of the present values of the remaining scheduled payments of principal and interest
thereon discounted to the Redemption Date (assuming the Notes matured on the maturity date of the Notes) on a semi-annual basis (assuming a 360-day year of twelve 30-day
months) at the Treasury Rate plus 25 basis points, less (b) interest accrued to the Redemption Date, and (2) 100% of the principal amount of Notes to be redeemed, plus, in either case, accrued and unpaid interest, if any, on the Notes being
redeemed to, but excluding, the Redemption Date (subject to the right of Holders of record on the relevant Regular Record Date to receive interest due on any Interest Payment Date that is on or prior to the Redemption Date). The Company shall give
the Trustee written notice of the Redemption Price with respect to any redemption pursuant to this clause (b) promptly after the calculation thereof and the Trustee shall have no responsibility for such calculation. 

(c) The Company’s actions and determinations in determining the Redemption Price shall be conclusive and binding for all purposes, absent
manifest error. 
 (d) Notice of any redemption will be mailed or electronically delivered (or otherwise transmitted in accordance with the
Depositary’s procedures) at least 10 days but not more than 60 days before the Redemption Date to each holder of Notes to be redeemed. Any redemption or notice thereof pursuant to this Section 2.06 may, at the Company’s discretion, be
subject to one or more conditions precedent, including, but not limited to, completion of an equity offering, other offering, issuance of indebtedness or other transaction or event. For so long as the Notes are held by The Depository Trust Company
(or another Depositary), the Company will not be responsible for giving notice to anyone other than the Depositary. 
 (e) In the case of a
partial redemption of the Notes, selection of the Notes for redemption will be made pro rata, by lot or by such other method as the Trustee in its sole discretion deems appropriate and fair. No Notes of a principal amount of $2,000 or less will be
redeemed in part. If any Note is to be redeemed in part only, the notice of redemption that relates to such Note will state the portion of the principal amount of such Note to be redeemed. A new Note in a principal amount equal to the unredeemed
portion of such Note will be issued in the name of the holder of such Note upon surrender for cancellation of the original Note. For so long as the Notes are held by The Depository Trust Company (or another Depositary), the redemption of such Notes
shall be done in accordance with the policies and procedures of the Depositary. 
 (f) Unless the Company defaults in payment of the
Redemption Price, on and after the Redemption Date interest will cease to accrue on the Notes or portions thereof called for redemption. 

  
 8 

 Section 2.07. Reserved. 

Section 2.08. Right to Require Repurchase Upon a Change of Control Triggering Event. 

(a) Upon the occurrence of any Change of Control Triggering Event, each Holder of Notes shall have the right to require the Company to
repurchase all or any part of such Holder’s Notes pursuant to the offer described below (the “Change of Control Offer”) on the terms set forth herein (provided that with respect to the Notes submitted for repurchase in
part, the remaining portion of such Notes is in a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof) at a purchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus accrued and
unpaid interest, if any, on the Notes repurchased, to, but excluding, the date of purchase (the “Change of Control Payment”). 

(b) Within 30 days following any Change of Control Triggering Event, the Company shall mail or transmit in accordance with the applicable
procedures of the Depositary a notice to Holders of Notes, with a written copy to the Trustee, which notice shall govern the terms of the Change of Control Offer. Such notice shall state: 

(i) a description of the transaction or transactions that constitute the Change of Control Triggering Event; 

(ii) that the Change of Control Offer is being made pursuant to this Section 2.08 and that all Notes validly tendered and
not withdrawn will be accepted for payment; 
 (iii) the Change of Control Payment and the “Change of Control Payment
Date,” which date shall be no earlier than 15 days and no later than 60 days from the date such notice is mailed or transmitted; 

(iv) that Holders electing to have any Notes purchased pursuant to a Change of Control Offer will be required to surrender the
Notes, with the form entitled “Purchase Notice” attached hereto as Exhibit B completed, or transfer the Notes by book-entry transfer, to the Paying Agent at the address specified in the notice prior to the close of business on the third
Business Day preceding the Change of Control Payment Date; 
 (v) that Holders of the Notes will be entitled to withdraw
their election if the Paying Agent receives, not later than the close of business on the second Business Day preceding the Change of Control Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name of such Holder, the
principal amount of Notes delivered for purchase, and a statement that such Holder is withdrawing his or her election to have the Notes purchased; and 

(vi) if the notice is mailed or transmitted prior to the date of the consummation of the Change of Control, the notice will
state that the Change of Control Offer is conditioned on the Change of Control Triggering Event occurring on or prior to the Change of Control Payment Date. 

  
 9 

 (c) On the Change of Control Payment Date, the Company shall be required, to the extent
lawful, to: 
 (i) accept for payment all Notes or portions of Notes properly tendered and not withdrawn pursuant to the
Change of Control Offer; 
 (ii) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of
all Notes or portions of Notes properly tendered; and 
 (iii) deliver or cause to be delivered to the Trustee the Notes
properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being purchased. 

The Paying Agent will promptly mail to each Holder of Notes properly tendered and not withdrawn the Change of Control Payment for such Notes
(or with respect to Global Notes otherwise make such payment in accordance with the applicable procedures of the Depositary), and the Trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each Holder of Notes
properly tendered and not withdrawn a new Note equal in principal amount to any unpurchased portion of any Notes surrendered; provided that each new Note will be in a principal amount of $2,000 or an integral multiple of $1,000 in excess
thereof. 
 (d) The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act
and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any
securities laws or regulations conflict with this Section 2.08, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Section 2.08 by virtue of such
conflicts. 
 (e) Notwithstanding the foregoing, the Company will not be required to make an offer to repurchase the Notes upon a Change of
Control Triggering Event if (i) a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and such third party purchases all the Notes properly tendered and
not withdrawn under its offer or (ii) prior to the occurrence of the related Change of Control Triggering Event, the Company has given written notice of a redemption to the Holders of the Notes as provided under Section 2.06 hereof unless
the Company has failed to pay the Redemption Price on the Redemption Date. 
 Section 2.09. No Sinking Fund. There shall be no
obligation of the Company to redeem or purchase the Notes pursuant to any sinking fund or analogous provisions, or except as set forth in Section 2.08 hereof, to repay any of the Notes prior to July 15, 2025 at the option of a Holder
thereof. Article 11 of the Base Indenture shall not apply to the Notes. 
 Section 2.10. Guarantees. The Notes initially will
not be guaranteed by any Subsidiary. Section 9.9 and Article 12 of the Indenture shall apply to the Notes. 

  
 10 

 Section 2.11. Denominations. The Notes shall be issued in fully registered form
as Registered Securities (and shall in no event be issuable in the form of Bearer Securities) in denominations of two thousand Dollars ($2,000) or any amount in excess thereof which is an integral multiple of one thousand Dollars ($1,000). The Notes
shall be denominated, and all payments thereon shall be made, in Dollars. 
 Section 2.12. Global Notes. The Notes shall
initially be issued in global form. The Depository Trust Company shall be the initial Depositary for the Notes. The Notes shall be transferred only in accordance with the provisions of Section 3.5 of the Base Indenture. Beneficial interests in
Notes issued in global form shall be exchangeable for certificated Securities representing such Notes only the circumstances set forth in the seventh paragraph of Section 3.5 of the Base Indenture. 

Section 2.13. Form of Notes. The form of the global Security representing the Notes is attached hereto as Exhibit A. 

Section 2.14. Defeasance. For purposes of the Notes, Section 2.08 of this Thirty-Sixth Supplemental Indenture shall be
considered an additional covenant specified pursuant to Section 3.1 of the Base Indenture for purposes of Section 4.5 of the Base Indenture. 

Section 2.15. Events of Default. The Events of Default set forth in Sections 5.1 (1), (2), (3), (4), (5), (6) and (7) of the
Base Indenture shall apply to the Notes. 
 Section 2.16. Other Provisions. The Trustee is appointed as the initial Registrar
and Paying Agent for the Notes. The Trustee may authenticate the Notes by manual, facsimile or electronic signature. 
 ARTICLE 3 

MISCELLANEOUS 

Section 3.01. Base Indenture; Effect of the Thirty-Sixth Supplemental Indenture. The Base Indenture, as supplemented
and amended hereby, is in all respects ratified and confirmed, and the terms and conditions thereof, as amended hereby, shall be and remain in full force and effect. The Base Indenture and the Thirty-Sixth Supplemental Indenture shall be read, taken
and construed as one and the same instrument. 
 Section 3.02. Conflict with Trust Indenture Act. If any provision hereof
limits, qualifies or conflicts with another provision hereof which is required or deemed to be included in this Thirty-Sixth Supplemental Indenture by any of the provisions of the Trust Indenture Act, such required or deemed included provision shall
control. 
 Section 3.03. Successors and Assigns. All covenants and agreements in this Thirty-Sixth Supplemental Indenture by
the Company or any Guarantor shall bind its successors and assigns, whether expressed or not. 

  
 11 

 Section 3.04. Separability Clause. In case any provision in this Thirty-Sixth
Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 3.05. Benefits of Indenture. Nothing in this Thirty-Sixth Supplemental Indenture, the Base Indenture or in the Notes,
express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, the Registrar, any Paying Agent and the Holders, any benefit or any legal or equitable right, remedy or claim under the Indenture. 

Section 3.06. Recitals. The recitals contained in this Thirty-Sixth Supplemental Indenture shall be taken as the statements of the
Company; and the Trustee shall have no liability or responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Thirty-Sixth Supplemental Indenture. 

Section 3.07. Governing Law. THIS THIRTY-SIXTH SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK. 
 Section 3.08. Counterparts. This Thirty-Sixth Supplemental
Indenture may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 

[The Remainder of This Page Intentionally Left Blank; Signature Pages Follow] 

  
 12 

 IN WITNESS WHEREOF, the parties hereto have caused this Thirty-Sixth Supplemental Indenture
to be duly executed as of the date first written above. 
  

			
	 FIDELITY NATIONAL INFORMATION SERVICES, INC.

		
	 By:
	 	/s/ Virginia Daughtrey
		 	 Name: Virginia Daughtrey

		 	 Title:   Executive Vice President, Treasurer

  

			
	 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

		
	 By:
	 	/s/ Lawrence M. Kusch
		 	 Name: Lawrence M. Kusch

		 	 Title: Vice President

  
 [Signature Page to
Thirty-Sixth Supplemental Indenture] 

 Exhibit A 

FORM OF NOTE CERTIFICATE 
 THIS SECURITY IS
IN GLOBAL FORM WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN CERTIFICATED FORM, THIS
SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  

			
	 No. A-[     ]
	  	 CUSIP No. 31620MBV7

 4.500% SENIOR NOTES DUE 2025 

FIDELITY NATIONAL INFORMATION SERVICES, INC., a Georgia corporation, promises to pay to Cede & Co., or its registered assigns, the principal sum of [
] Dollars ($[ ]) on July 15, 2025. 
 Interest Payment Dates: January 15 and July 15, with the first Interest Payment Date to be
January 15, 2023 
 Regular Record Dates: January 1 and July 1 (whether or not a Business Day) 

Dated: 

  
 A-1 

			
	FIDELITY NATIONAL INFORMATION SERVICES, INC.
		
	By:	 	 
		 	Name:
		 	Title:

  
 A-2 

 Certificate of Authentication 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee, certifies that this is one of the Securities of the series described in the
within-mentioned Indenture. 
  

			
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
		
	By:	 	 
		 	Authorized Signatory

 Dated: 

  
 A-3 

 FIDELITY NATIONAL INFORMATION SERVICES, INC. 

4.500% SENIOR NOTES DUE 2025 

Capitalized terms used herein without definition shall have the respective meanings ascribed to them in the Indenture referred to below unless
otherwise indicated. This Security is one of the series of Securities designated on the face hereof issued under the Indenture, unlimited in aggregate principal amount (the “Notes”). 

1. INTEREST. Fidelity National Information Services, Inc., a Georgia corporation (the “Company”), promises to pay interest on
the principal amount of this Security at the rate of 4.500% per annum, payable semiannually in arrears on January 15 and July 15 of each year (each, an “Interest Payment Date”), commencing on January 15, 2023, until
the principal is paid or made available for payment. Interest on this Security will accrue from, and including, the most recent date to which interest has been paid or duly provided for or, if no interest has been paid or duly provided for, from,
and including, July 13, 2022, in each case to, but excluding, the next Interest Payment Date or the date on which the principal hereof has been paid or made available for payment, as the case may be. Interest shall be computed on the basis of a
360-day year of twelve 30-day months. 
 2. METHOD OF
PAYMENT. The Company shall pay interest on this Security (except defaulted interest, if any, which shall be paid on such special payment date as may be fixed in accordance with the Indenture referred to below) on the applicable Interest Payment Date
to the Persons who are registered Holders at the close of business on January 1 and July 1 (whether or not a Business Day) immediately preceding the applicable Interest Payment Date. A holder must surrender this Security to a Paying Agent
to collect principal and premium payments. The Company shall pay principal, premium, if any, and interest in money of the United States that at the time of payment is legal tender for payment of public and private debts. 

3. PAYING AGENT AND REGISTRAR. Initially, The Bank of New York Mellon Trust Company, N.A., the Trustee under the Indenture, shall act as
Paying Agent and Registrar. The Company may change or appoint any Paying Agent, Registrar or co-Registrar without notice to any Holder. The Company or any of its Subsidiaries may act as Paying Agent, Registrar
or co-Registrar. 
 4. INDENTURE. The Company issued this Security under the Indenture (the
“Base Indenture”), dated as of April 15, 2013, among Fidelity National Information Services, Inc., certain other parties thereto and The Bank of New York Mellon Trust Company, N.A., as Trustee, as amended by the Thirty-Sixth
Supplemental Indenture (the “Thirty-Sixth Supplemental Indenture”), dated as of July 13, 2022, between the Company and said Trustee (the Base Indenture, as amended by the Thirty-Sixth Supplemental Indenture, the
“Indenture”). The terms of this Security were established pursuant to the Thirty-Sixth Supplemental Indenture. The terms of this Security include those stated in the Indenture and those made part of the Indenture by reference to the

  
 A-4 

 
Trust Indenture Act of 1939, as amended (“TIA”). This Security is subject to all such terms, and Holders are referred to the Indenture and the TIA. The Company will provide a
copy of the Indenture, without charge, upon written request to the Company sent to 601 Riverside Avenue, Jacksonville, Florida 32204, Attention: Corporate Secretary. 

5. PERSONS DEEMED OWNERS. Subject to Section 3.8 of the Base Indenture, the registered Holder or Holders of this Security shall be
treated as owners of it for all purposes. 
 6. OPTIONAL REDEMPTION. The Company may, at its option, redeem the Notes, in whole or in part,
at any time and from time to time, at a Redemption Price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of (1) (a) the sum of the present values of the remaining scheduled payments of
principal and interest thereon discounted to the Redemption Date (assuming the Notes matured on the maturity date of the Notes) on a semi-annual basis (assuming a 360-day year of twelve 30-day months) at the Treasury Rate plus 25 basis points, less (b) interest accrued to the Redemption Date, and (2) 100% of the principal amount of Notes to be redeemed, plus, in either case, accrued and unpaid
interest, if any, on the Notes being redeemed to, but excluding, the Redemption Date (subject to the right of Holders of record on the relevant Regular Record Date to receive interest due on any Interest Payment Date that is on or prior to the
Redemption Date). 
 Any redemption or notice thereof pursuant to Section 2.06 of the Thirty-Sixth Supplemental Indenture may, at the
Company’s discretion, be subject to one or more conditions precedent, including, but not limited to, completion of an equity offering, other offering, issuance of indebtedness or other transaction or event. 

7. RESERVED. 
 8. CHANGE OF
CONTROL TRIGGERING EVENT. In the event of a Change of Control Triggering Event, the Holders of Notes shall have the right to require the Company to repurchase all or any part of such Holder’s Notes at a purchase price in cash equal to 101% of
the aggregate principal amount of the Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased, to, but excluding, the date of purchase pursuant to the provisions of Section 2.08 of the Thirty-Sixth Supplemental
Indenture, subject to compliance with the procedures specified pursuant to the Thirty-Sixth Supplemental Indenture. 
 9. LEGAL HOLIDAYS. In
any case where any Interest Payment Date, Redemption Date, Stated Maturity or Maturity of this Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other provision of the Indenture or of this Security), payment of
principal, premium, if any, or interest need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on such date; provided that
no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date, Redemption Date, Stated Maturity or Maturity, as the case may be. 

  
 A-5 

 10. UNCLAIMED MONEY. Subject to the terms of the Indenture, if money for the payment of
principal, premium, if any, or interest remains unclaimed for two years, the Trustee or Paying Agent shall pay the money back to the Company at its request, and thereafter Holders entitled to the money shall, as an unsecured general creditor, look
only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease. 

11. AMENDMENT, SUPPLEMENT. Subject to certain exceptions, the Indenture or this Security may be amended or supplemented with the consent of
the Holders of at least a majority in aggregate principal amount of the Securities of each series affected by the amendment. Without the consent of any Holder, the Company, the Guarantors, if any, and the Trustee may amend or supplement the
Indenture or this Security to, among other things, cure certain ambiguities or correct certain mistakes or to create another series of Securities and establish its terms. 

12. DEFAULTS AND REMEDIES. The Events of Default set forth in Sections 5.1(1), (2), (3), (4), (5), (6) and (7) of the Base Indenture
apply to this Security. 
 If an Event of Default, other than an Event of Default described in Section 5.1(5) or (6) of the Base
Indenture, with respect to the Outstanding Securities of the same series as this Security occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of all Outstanding Securities of the same series as this
Security, by written notice to the Company (and, if given by the Holders, to the Trustee), may declare the principal of and accrued and unpaid interest, if any, on the aggregate principal amount of all Outstanding Securities of the same series as
this Security to be due and payable, and upon any such declaration, such principal and interest, if any, shall be immediately due and payable; provided that, after such a declaration of acceleration with respect to this Security has been
made, the Holders of a majority in aggregate principal amount of all Outstanding Securities of the same series as this Security, by written notice to the Trustee, may rescind and annul such declaration and its consequences as provided, and subject
to satisfaction of the conditions set forth, in the Indenture. If an Event of Default specified in Section 5.1(5) or Section 5.1(6) of the Base Indenture occurs with respect to the Securities of the same series as this Security, the
principal of and accrued and unpaid interest, if any, on all the Outstanding Securities of that series shall automatically become immediately due and payable without any declaration or act by the Trustee, the Holders of the Securities or any other
party. 
 The Holders of a majority in aggregate principal amount of all Outstanding Securities of the same series as this Security, by
written notice to the Trustee, may waive, on behalf of all Holders of such Securities, any past Default or Event of Default with respect to such securities and its consequences except (a) a Default or Event of Default in the payment of the
principal of, or interest on, any such Security or (b) a Default or Event of Default in respect of a covenant or provision of the Indenture which, pursuant to the Indenture, cannot be amended or modified without the consent of each Holder of
each affected Outstanding Security of the same series as this Security. Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured. 

  
 A-6 

 13. AMOUNT UNLIMITED. The aggregate principal amount of Securities which may be
authenticated and delivered under the Indenture is unlimited. The Securities may be issued from time to time in one or more series. The Company may from time to time, without the consent of the Holders of this Security, issue additional Securities
of the series of which this Security is a part on substantially the same terms and conditions as those of this Security. 
 14. TRUSTEE
DEALINGS WITH COMPANY. Subject to the TIA, The Bank of New York Mellon Trust Company, N.A., as Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company, the
Guarantors, if any, or their respective affiliates, and may otherwise deal with the Company, the Guarantors, if any, or their respective affiliates, as if it were not Trustee. 

15. NO RECOURSE AGAINST OTHERS. No director, officer, employee, stockholder, member, general or limited partner of the Company or any
Guarantor as such or in such capacity shall have any personal liability for any obligations of the Company or any Guarantor under this Security, any guarantee or the Indenture or for any claim based on, in respect of or by reason of such obligations
or their creation. Each Holder, by accepting this Security, waives and releases all such liability. Such waiver and release are part of the consideration for the issue of this Security. 

16. DISCHARGE OF INDENTURE. The Indenture contains certain provisions pertaining to discharge and defeasance. 

17. GUARANTEES. This Security initially will not be guaranteed by any Subsidiary. Section 9.9 and Article 12 of the Indenture shall apply
to this Security. 
 18. AUTHENTICATION. This Security shall not be valid until the Trustee signs the certificate of authentication by
manual, facsimile or electronic signature on the other side of this Security. 
 19. GOVERNING LAW. THIS SECURITY SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK. 
 20. ABBREVIATIONS. Customary abbreviations may be used in the
name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= custodian), and U/G/M/A (= Uniform Gifts to
Minors Act). 
 [Remainder of Page Intentionally Left Blank] 

  
 A-7 

 ASSIGNMENT FORM 

If you, as Holder of this Security, want to assign this Security, fill in the form below: I or we assign and transfer this Security to: 

—————————————————— 

(Insert assignee’s social security or tax ID number) 
  

	
	 
	 
	 

 (Print or type assignee’s name, address, and zip code) 

and irrevocably appoint: 
  

	
	 

 as agent to transfer this Security on the books of the Company. The agent may substitute another to act for him/her. 

 

	
	Date:                                     
                       
	
	Your signature:
	
	(Your signature must correspond with the name as it appears upon the face of this Security in every particular without alteration or enlargement or any change whatsoever and be guaranteed by a guarantor institution participating in
the Securities Transfer Agents Medallion Program or in such other guarantee program acceptable to the Trustee)
	
	Signature
	Guarantee: _____________________

  
 A-8 

 [FORM OF NOTATION OF GUARANTEE, if applicable] 

Each of the undersigned (collectively, the “Guarantors”) have guaranteed, jointly and severally, absolutely, unconditionally
and irrevocably (such guarantee by each Guarantor being referred to herein as the “Guarantee”) (i) the due and punctual payment of the principal of (and premium, if any) and interest on the 4.500% Senior Notes due 2025 (the
“Notes”) issued by Fidelity National Information Services, Inc., a Georgia corporation (the “Company”), whether at Stated Maturity, by acceleration or otherwise (including, without limitation, the amount that would
become due but for the operation of any automatic stay provision of any Bankruptcy Law), the due and punctual payment of interest on the overdue principal and interest, if any, on the Notes, to the extent lawful, and the due and punctual performance
of all other obligations of the Company to the Holders or the Trustee all in accordance with the terms set forth in Article 12 of the Indenture and (ii) in case of any extension of time of payment or renewal of any Notes or any of such other
obligations, that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at Stated Maturity, by acceleration or otherwise subject, however, in the case of clauses (i) and
(ii) above, to the limitations set forth in Section 12.3 of the Base Indenture. 
 No director, officer, employee, stockholder, general
or limited partner or incorporator, past, present or future, of the Guarantors, as such or in such capacity, shall have any personal liability for any obligations of the Guarantors under the Guarantees by reason of his, her or its status as such
director, officer, employee, stockholder, general or limited partner or incorporator. Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for the issuance of the
Guarantees. 
 Each Holder of a Note by accepting a Note agrees that any Guarantor named below shall have no further liability with respect
to its Guarantee if such Guarantor otherwise ceases to be liable in respect of its Guarantee in accordance with the terms of the Indenture. 

Capitalized terms used herein without definition shall have the meanings assigned to them in the Notes. 

The Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication on the Notes upon which the Guarantee
is noted shall have been executed by the Trustee under the Indenture by the manual, facsimile or electronic signature of one of its authorized signatories. 

[The Remainder of This Page Intentionally Left Blank; Signature Pages Follow] 

  
 A-9 

 Guarantors: 
  

			
	[•], 
as Guarantors
		
	By:	 	 
		 	Name:
		 	Title:

  
 A-10 

 Exhibit B 

PURCHASE NOTICE 
 (1)
Pursuant to Section 2.08 of the Thirty-Sixth Supplemental Indenture, the undersigned hereby elects to have its Note repurchased by the Company. 

(2) The undersigned hereby directs the Trustee or the Company to pay it an amount in cash equal to 101% of the aggregate principal amount to
be repurchased (as set forth below), plus interest accrued to, but excluding, the Change of Control Payment Date, as applicable, as provided in the Thirty-Sixth Supplemental Indenture. 

 

	
	Dated:
	
	Signature(s)
	
	Signature(s) must be guaranteed by an Eligible Guarantor Institution with membership in an approved signature guarantee program pursuant to Rule 17Ad-15 under the Securities Exchange Act of
1934.
	
	Signature Guaranteed

 Social Security or other Taxpayer Identification Number of recipient of Change of Control Payment 

Principal amount to be repurchased: 
 Remaining
aggregate principal amount following such repurchase (at least U.S.$2,000 or an integral multiple of $1,000 in excess thereof): 
 NOTICE:
The signature to the foregoing election must correspond to the name as written upon the face of the related Note in every particular, without alteration or any change whatsoever. 

  
 B-1

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