Document:

Document

Exhibit 4.2

 
LYB INTERNATIONAL FINANCE III, LLC
 
Officer’s Certificate

April 20, 2020

Reference is made to the Indenture dated as of October 10, 2019 (as amended or supplemented from time to time, the “Indenture”) between LYB International Finance III, LLC, as issuer (the “Company”), LyondellBasell Industries N.V., as guarantor (the “Guarantor”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”). The Trustee is the trustee for any and all securities issued under the Indenture. Pursuant to Section 2.01 of the Indenture the undersigned officer does hereby certify, in connection with the issuance of $500,000,000 aggregate principal amount of 2.875% Guaranteed Notes due 2025 (the “2025 Notes”), $500,000,000 aggregate principal amount of 3.375% Guaranteed Notes due 2030 (the “2030 Notes”) and $1,000,000,000 aggregate principal amount of 4.200% Guaranteed Notes due 2050 (the “2050 Notes” and, together with the 2025 Notes and the 2030 Notes, the “Notes”) that the terms of the Notes are as follows:

Capitalized terms used but not otherwise defined herein shall have the meanings specified in the Indenture or in the form of Notes attached hereto as Exhibit A, Exhibit B and Exhibit C, as applicable.

2025 Notes

						
	Title:	2.875% Guaranteed Notes due 2025

	 	 
	Issuer:	LYB International Finance III, LLC
	 	 
	Form:	The 2025 Notes shall be issued in permanent global form
	

	

	Guarantor:	LyondellBasell Industries N.V.
		
	Trustee, Registrar, Transfer Agent,
Authenticating Agent, and Paying Agent:	Wells Fargo Bank, National Association.
	 	 
	Aggregate Principal Amount at Maturity:	$500,000,000
	

Principal Payment Date:
	

May 1, 2025

	 	 
	Interest:	2.875% per annum

						
	 	 
	Date from which Interest will Accrue:	April 20, 2020

	 	 
	Interest Payment Dates:	Semi-annually on May 1 and November 1, commencing on November 1, 2020
	

	

	Record Dates:	April 15 and October 15 immediately preceding the related interest payment date
	

	

	Places of Payment:	The Trustee at its Corporate Trust Office in New York City set forth in Section 4.02 of the Indenture.
	 	 
	Optional Redemption:	Prior to April 1, 2025 (one month prior to the maturity date), the Notes will be redeemable and repayable, at the Company’s option, at any time in whole, or from time to time in part, at a price equal to the greater of: 

• 100% of the principal amount of the Notes to be redeemed; and
 
• the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed that would be due if the Notes matured on April 1, 2025 (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield (as defined in the Notes) plus 40 basis points; 

plus, in either case, accrued and unpaid interest to, but excluding, the date of redemption.

On or after April 1, 2025 (one month prior to the maturity date), the Notes will be redeemable, at the Company’s option, at any time in whole, or from time to time in part, at a price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest on the Notes to be redeemed to, but excluding, the date of redemption. 

The Notes are also redeemable upon certain tax events as set forth in the Notes and Section 3.12 of the Indenture.

	 	 

        
2

						
	Conversion:	None
	 	 
	Sinking Fund:	None
	

	

	Redemption at the Option
of the Holder:	Upon a Change of Control Triggering Event as set forth in the Notes
	

	

	Additional Amounts:	As set forth in Section 4.10 of the Indenture
	 	 
	Denominations:	$2,000 and integral multiples of $1,000 in excess thereof
	 	 
	Miscellaneous:	The terms of the Notes shall include such other terms as are set forth in the form of Notes attached hereto as Exhibit A and in the Indenture.

2030 Notes

						
	Title:	3.375% Guaranteed Notes due 2030

	 	 
	Issuer:	LYB International Finance III, LLC
	 	 
	Form:	The 2030 Notes shall be issued in permanent global form
	

	

	Guarantor:	LyondellBasell Industries N.V.
		
	Trustee, Registrar, Transfer Agent, 
Authenticating Agent, and Paying Agent:	Wells Fargo Bank, National Association.
	 	 
	Aggregate Principal Amount at Maturity:	$500,000,000
	

Principal Payment Date:
	

May 1, 2030

	 	 
	Interest:	3.375% per annum

	 	 
	Date from which Interest will Accrue:	April 20, 2020

	 	 
	Interest Payment Dates:	Semi-annually on May 1 and November 1, commencing on November 1, 2020

        
3

						
	

	

	Record Dates:	April 15 and October 15 immediately preceding the related interest payment date
	

	

	Places of Payment:	The Trustee at its Corporate Trust Office in New York City set forth in Section 4.02 of the Indenture.
	 	 
	Optional Redemption:	Prior to February 1, 2030 (three months prior to the maturity date), the Notes will be redeemable and repayable, at the Company’s option, at any time in whole, or from time to time in part, at a price equal to the greater of: 

• 100% of the principal amount of the Notes to be redeemed; and
 
• the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed that would be due if the Notes matured on February 1, 2030 (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield (as defined in the Notes) plus 45 basis points; 

plus, in either case, accrued and unpaid interest to, but excluding, the date of redemption.

On or after February 1, 2030 (three months prior to the maturity date), the Notes will be redeemable, at the Company’s option, at any time in whole, or from time to time in part, at a price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest on the Notes to be redeemed to, but excluding, the date of redemption. 

The Notes are also redeemable upon certain tax events as set forth in the Notes and Section 3.12 of the Indenture.

	 	 
	Conversion:	None
	 	 
	Sinking Fund:	None
	

	

	Redemption at the Optionof the Holder:	Upon a Change of Control Triggering Event as set forth in the Notes

        
4

						
	

	

	Additional Amounts:	As set forth in Section 4.10 of the Indenture
	 	 
	Denominations:	$2,000 and integral multiples of $1,000 in excess thereof
	 	 
	Miscellaneous:	The terms of the Notes shall include such other terms as are set forth in the form of Notes attached hereto as Exhibit B and in the Indenture.

2050 Notes

						
	Title:	4.200% Guaranteed Notes due 2050

	 	 
	Issuer:	LYB International Finance III, LLC
	 	 
	Form:	The 2050 Notes shall be issued in permanent global form
	

	

	Guarantor:	LyondellBasell Industries N.V.
		
	Trustee, Registrar, Transfer Agent, 
Authenticating Agent, and Paying Agent:	Wells Fargo Bank, National Association.
	 	 
	Aggregate Principal Amount at Maturity:	$1,000,000,000
	

Principal Payment Date:
	

May 1, 2050

	 	 
	Interest:	4.200% per annum

	 	 
	Date from which Interest will Accrue:	April 20, 2020

	 	 
	Interest Payment Dates:	Semi-annually on May 1 and November 1, commencing on November 1, 2020
	

	

	Record Dates:	April 15 and October 15 immediately preceding the related interest payment date
	

	

	Places of Payment:	The Trustee at its Corporate Trust Office in New York City set forth in Section 4.02 of the Indenture.
	 	 

        
5

						
	Optional Redemption:	Prior to November 1, 2049 (six months prior to the maturity date), the Notes will be redeemable and repayable, at the Company’s option, at any time in whole, or from time to time in part, at a price equal to the greater of: 

• 100% of the principal amount of the Notes to be redeemed; and
 
• the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed that would be due if the Notes matured on November 1, 2049 (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield (as defined in the Notes) plus 45 basis points; 

plus, in either case, accrued and unpaid interest to, but excluding, the date of redemption.

On or after November 1, 2049 (six months prior to the maturity date), the Notes will be redeemable, at the Company’s option, at any time in whole, or from time to time in part, at a price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest on the Notes to be redeemed to, but excluding, the date of redemption. 

The Notes are also redeemable upon certain tax events as set forth in the Notes and Section 3.12 of the Indenture.

	 	 
	Conversion:	None
	 	 
	Sinking Fund:	None
	

	

	Redemption at the Option
of the Holder:	Upon a Change of Control Triggering Event as set forth in the Notes
	

	

	Additional Amounts:	As set forth in Section 4.10 of the Indenture
	 	 
	Denominations:	$2,000 and integral multiples of $1,000 in excess thereof
	 	 

        
6

						
	Miscellaneous:	The terms of the Notes shall include such other terms as are set forth in the form of Notes attached hereto as Exhibit C and in the Indenture.

        Subject to the representations, warranties and covenants described in the Indenture, the Company shall be entitled, subject to authorization by the Board of Directors of the Company and an Officer’s Certificate, to issue additional Notes of a series of Notes from time to time. Any such additional Notes shall have identical terms as the applicable series of Notes issued on the issue date, other than with respect to the date of issuance, the public offering price, the initial interest payment date, if applicable, and the payment of interest accruing prior to the issue date of such additional Notes (together the “Additional Notes”). Any Additional Notes will be issued in accordance with Section 2.01 of the Indenture.

        Such officer has read and understands the provisions of the Indenture and the definitions relating thereto.  The statements made in this Officer’s Certificate are based upon the examination of the provisions of the Indenture and upon the relevant books and records of the Company.  In such officer’s opinion, he has made such examination or investigation as is necessary to enable such officer to express an informed opinion as to whether or not the covenants and conditions of such Indenture relating to the issuance and authentication of the Notes have been complied with.  In such officer’s opinion, such covenants and conditions have been complied with.

[Signature Page Follows]

        
7

IN WITNESS WHEREOF, I have signed this certificate.

Dated:   April 20, 2020
			
	        LYB INTERNATIONAL FINANCE III, LLC

												
	By:	 /s/ Michael McMurray
		
	 	Name:	Michael McMurray	
	 	Title:	Executive Vice President and 
Chief Financial Officer
	

        
8

EXHIBIT A
FORM OF NOTE DUE 2025
        UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT 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 A BENEFICIAL INTEREST HEREIN.
TRANSFERS OF THIS NOTE ARE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE ARE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE TRANSFER PROVISIONS OF THE INDENTURE.
IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

Exhibit A-1

CUSIP: 50249A AB9
ISIN:  US50249AAB98

LYB International Finance III, LLC 
GLOBAL NOTE
representing up to
$500,000,000
2.875% Guaranteed Notes due 2025
Fully and Unconditionally Guaranteed by

LyondellBasell Industries N.V.

												
	No. [          	]	$[         	]
	

		

	

LYB INTERNATIONAL FINANCE III, LLC, a Delaware limited liability company, promises to pay to Cede & Co., or its registered assigns, [ ● ] DOLLARS ($[ ● ]) or such greater or lesser principal sum as may be set forth on the Schedule of Increases or Decreases in Global Note attached hereto on May 1, 2025.
Interest Payment Dates: Semi-annually on May 1 and November 1, commencing on November 1, 2020
Record Dates: April 15 and October 15 immediately preceding the related interest payment date
Additional provisions of this Note are set forth on the other side of this Note.

Exhibit A-2

IN WITNESS WHEREOF, the parties have caused this instrument to be duly executed.
									
	LYB INTERNATIONAL FINANCE III, LLC, as Issuer		
	By:	

	
	

	Name: [●] 	
	

	Title: [●] 
	

Dated: April 20, 2020

						
	LYONDELLBASELL INDUSTRIES N.V., as Guarantor	
	By:	

		Name: [●]
		Title: [●] 

Dated: April 20, 2020

This is one of the Notes referred to in the within-mentioned Indenture:
          Wells Fargo Bank, National Association, as Trustee

         

          By:_________________________________
          Name: 
          Title: 

          

Dated: April 20, 2020

Exhibit A-3

[Back of Note]
2.875% Guaranteed Notes due 2025
Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.
1.LYB International Finance III, LLC, a Delaware limited liability company (the “Company”), promises to pay interest on the principal amount of this Note at 2.875% per annum from April 20, 2020 until maturity and shall pay Additional Amounts in respect thereof as set forth in the Indenture (as defined below). The Company will pay interest semi-annually in arrears on May 1 and November 1 of each year, or if any such day is not a Business Day, on the next succeeding Business Day without the accrual of interest for the intervening period (each, an “Interest Payment Date”).  Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the Issue Date; provided that the first Interest Payment Date shall be November 1, 2020. The Company will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at the interest rate on the Notes; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace periods) from time to time on demand at the interest rate on the Notes.  Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months.
2.Method of Payment.  The Company will pay interest on the Notes to the Persons who are registered Holders of Notes at the close of business on April 15 and October 15 (whether or not a Business Day), as the case may be, immediately preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.15(b) of the Indenture with respect to defaulted interest.  Payment of interest may be made by check mailed to the Holders at their addresses set forth in the register of Holders; provided that payment by wire transfer of immediately available funds will be required with respect to principal of and interest and premium on, all Global Notes and all other Notes the Holders of which shall have provided wire transfer instructions to the Company or the Paying Agent.  Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.
3.Trustee; Paying Agent and Registrar. Wells Fargo Bank, National Association, will be the Trustee, Paying Agent and Registrar (the “Trustee”) under the Indenture with regard to the Notes.
4.Guarantee. LyondellBasell Industries N.V., a public company with limited liability (naamloze vennootschap) under the laws of the Netherlands (the “Guarantor”), unconditionally guarantees to the Holders from time to time of the Notes, upon the terms and subject to the conditions set forth in the Indenture, (a) the full and prompt payment of the 
Exhibit A-4

principal of and any premium on this Note when and as the same shall become due, whether at the Stated Maturity thereof, by acceleration, redemption or otherwise, and (b) the full and prompt payment of any interest on and any Additional Amounts with respect to this Note when and as the same shall become due, subject in each case to any applicable grace period. The Guarantee constitutes a guarantee of payment and not of collection. In the event of a default in the payment of principal of or any premium on any Note when and as the same shall become due, whether at the Stated Maturity thereof, by acceleration, call for redemption or otherwise, or in the event of a default in any sinking fund payment, or in the event of a default in the payment of any interest on or any Additional Amounts with respect to any Note when and as the same shall become due, each of the Trustee and the Holder of such Note shall have the right to proceed first and directly against the Guarantor under the Indenture without first proceeding against the Company or exhausting any other remedies which the Trustee or such Holder may have and without resorting to any other security held by it.
5.Indenture.  The Company issued the Notes under an Indenture, dated as of October 10, 2019 (as amended or supplemented from time to time, the “Indenture”), between the Company, the Guarantor and the Trustee.  This Note represents a duly authorized issue of Notes of the Company designated as its 2.875% Guaranteed Notes due 2025 (the “Notes”). The Company shall be entitled to issue additional Notes pursuant to Section 2.01 of the Indenture. The Notes issued under the Indenture shall be treated as a single class of securities under the Indenture, unless otherwise specified in the Indenture. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”). The Notes are subject to all such terms, and Holders are referred to the Indenture and the Trust Indenture Act for a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.
6.Optional Redemption.
(a)Prior to the Par Call Date, the Notes will be redeemable and repayable, at the Company’s option, at any time in whole, or from time to time in part, at a price equal to the greater of: 
(i)   100% of the principal amount of the Notes to be redeemed; and 
(ii)  the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed that would be due if the Notes matured on the Par Call Date (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield plus 40 basis points;
plus, accrued and unpaid interest to, but excluding, the date of redemption.
Exhibit A-5

On or after the Par Call Date, the Notes will be redeemable, at the Company’s option, at any time in whole, or from time to time in part, at a price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest on the Notes to be redeemed to, but excluding, the date of redemption. 

(b)Notes called for redemption become due on the date fixed for redemption. Notices of redemption will be mailed at least 10 but not more than 60 days before the redemption date to each Holder of record of the Notes to be redeemed at its registered address. The notice of redemption for the Notes will state, among other things, the amount of Notes to be redeemed, the redemption date, the redemption price or, if not ascertainable, the manner of determining the redemption price and the place(s) that payment will be made upon presentation and surrender of Notes to be redeemed. Unless the Company defaults in payment of the redemption price, interest will cease to accrue on any Notes that have been called for redemption at the redemption date. Notes called for redemption will be redeemed and repaid in principal amounts of $2,000 or any integral multiple of $1,000 in excess thereof. If less than all the Notes are redeemed at any time, the Trustee will select the Notes to be redeemed on a pro rata basis or by any other method in accordance with the procedures of DTC.
For purposes of determining the optional redemption price, the following definitions are applicable: 
“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Notes, calculated as if the maturity date of the Notes were the Par Call Date (the “Remaining Life”), that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of the Notes. 
“Comparable Treasury Price” means, with respect to any redemption date, (i) the average of the Reference Treasury Dealer Quotations obtained by the Company for the redemption date, after excluding the highest and lowest of all Reference Treasury Dealer Quotations obtained, or (ii) if the Company obtains fewer than four such Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations obtained by the Company.
“Independent Investment Banker” means BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC or Morgan Stanley & Co. LLC (and their respective successors), or, if each of such firms are unwilling or unable to select the applicable Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Trustee and reasonably acceptable to the Company.
“Par Call Date” means April 1, 2025 (one month prior to the maturity date) 
“Reference Treasury Dealer” means each of (i) BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC (and their respective 
Exhibit A-6

successors), unless any of them ceases to be a primary U.S. government securities dealer in New York City (a “Primary Treasury Dealer”), in which case the Company will substitute therefor another Primary Treasury Dealer, and (ii) any two or more other Primary Treasury Dealers selected by the Company.
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date for the Notes, an average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue for such Notes (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by the Reference Treasury Dealer at 5:00 p.m., New York City time, on the third business day preceding such redemption date.
“Treasury Yield” means, with respect to any redemption date applicable to the Notes, the rate per annum equal to the semi-annual equivalent yield to maturity (computed as of the third business day immediately preceding the redemption date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Comparable Treasury Price for the redemption date. 
7.Redemption for Changes in Taxes. In accordance with Section 3.12 of the Indenture, the Company may redeem the Notes in whole but not in part at its discretion at any time upon giving not less than 10 nor more than 60 days’ prior notice to the Holders of the Notes (which notice will be irrevocable) at a redemption price equal to 100% of the principal amount thereof, together with accrued and unpaid interest, if any, to the date fixed by the Company for redemption (a “Tax Redemption Date”) (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant Interest Payment Date and Additional Amounts (if any) in respect thereof) under the circumstances set forth in Section 3.12 of the Indenture.
8.Sinking Fund. The Company shall not be required to make sinking fund payments with respect to the Notes.
9.Change of Control Offer. If a Change of Control Triggering Event (as defined below) occurs, unless the Company has exercised its option to redeem the Notes as described in Section 6, each Holder shall have the right to require the Company to make an offer (a “Change of Control Offer”) to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes on the terms set forth herein. In a Change of Control Offer, the Company will offer payment in cash equal to 101% of the aggregate principal amount of Notes repurchased (a “Change of Control Payment”), plus accrued and unpaid interest, if any, on the Notes repurchased to the date of repurchase, subject to the right of Holders of record on the applicable record date to receive interest due on the next Interest Payment Date.
Within 30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, a notice will be mailed to Holders of the Notes describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase such Notes on the date specified in the applicable 
Exhibit A-7

notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed (a “Change of Control Payment Date”). The notice may, if mailed prior to the date of consummation of the Change of Control, state that the Change of Control Offer is conditioned on the Change of Control Triggering Event occurring on or prior to the applicable Change of Control Payment Date.
Upon the Change of Control Payment Date, the Company will, to the extent lawful: 
(a)accept for payment all Notes or portions of Notes properly tendered and not withdrawn pursuant to the Change of Control Offer;
(b)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 not withdrawn; and 
(c)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 repurchased. 
The Company will not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if 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 the third party repurchases all Notes properly tendered and not withdrawn under its offer. In addition, the Company will not repurchase any Notes if there has occurred and is continuing on the Change of Control Payment Date an Event of Default under the Indenture, other than a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event. 
The Company will comply with the applicable requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (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 the 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 the Change of Control Offer provisions of the Notes, the Company will comply with those securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control Offer provisions of the Notes by virtue of any such conflict. 
For purposes of this Section 9, the following terms will be applicable: 
“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 more series of related transactions, of all or substantially all of the Guarantor’s assets and the assets of the Guarantor’s Subsidiaries, taken as a whole, to any person, other than the Guarantor or one of its Subsidiaries; or (2) the Guarantor becomes aware of (by way of a report or any other filing pursuant to Section 13(d) of the Exchange Act, proxy, vote, written notice or otherwise) the acquisition by any person or group (within the meaning of 
Exhibit A-8

Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision), including any group acting for the purpose of acquiring, holding or disposing of securities (within the meaning of Rule 13d-5(b)(1) under the Exchange Act), in a single transaction or in a related series of transactions, by way of acquisition, merger, amalgamation, consolidation, transfer, conveyance or other business combination or purchase of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act, or any successor provision) of more than 50% of the total voting power of the voting stock of the Guarantor, other than by virtue of the imposition of a holding company, or the reincorporation of the Guarantor in another jurisdiction, so long as the beneficial owners of the voting stock of the Guarantor immediately prior to such transaction hold a majority of the voting power of the voting stock of such holding company or reincorporation entity immediately thereafter. Any disposition of a “disposed group” permitted pursuant to Section 5.01(b) of the Indenture will not constitute a Change of Control pursuant to clause (1) of the first sentence of this definition.
Notwithstanding the foregoing, a transaction will not be deemed to involve a Change of Control under clause (2) of the definition of Change of Control above if (i) the Guarantor becomes a direct or indirect wholly owned Subsidiary of a holding company and (ii)(A) the direct or indirect holders of the voting stock of such holding company immediately following that transaction are substantially the same as the holders of the Guarantor’s voting stock immediately prior to that transaction or (B) immediately following that transaction no person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of the voting stock of such holding company. The term “person,” as used in this definition of Change of Control, has the meaning given thereto in Section 13(d)(3) of the Exchange Act. 
These provisions relating to the Company’s obligation to make a Change of Control Offer may be waived or modified with the consent of the Holders of a majority in aggregate principal amount of the Notes. 
“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Event.
“investment grade rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from any replacement rating agency or rating agencies selected by the Guarantor. 
“Moody’s” means Moody’s Investors Service, Inc. and its successors. 
“rating agencies” means (1) each of Moody’s and S&P and (2) if either of 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 Guarantor’s control, a “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) of the Exchange Act selected by the Guarantor (as certified by a resolution of the Company’s Board of Directors) as a replacement agency for Moody’s or S&P, or all of them, as the case may be.
Exhibit A-9

“rating event” means the rating on the Notes is lowered by both of the two rating agencies and the Notes are rated below an investment grade rating by both of the two rating agencies, in any case on any day during the period (which period will be extended so long as the rating of the Notes is under publicly announced consideration for a possible downgrade by either of the rating agencies) commencing 60 days prior to the first public notice of the occurrence of a Change of Control or the Guarantor’s intention to effect a Change of Control and ending 60 days following consummation of such Change of Control. 
“S&P” means S&P Global Ratings, a division of S&P Global, Inc., and its successors. 
“voting stock” means, with respect to any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date, the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person.
10.Denominations, Transfer, Exchange.  The Notes are in fully registered form only, without coupons, in denominations of $2,000 and integral multiples of $1,000. A holder shall register the transfer or exchange of Notes in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges payable in connection therewith as permitted by the Indenture. The Registrar need not register the transfer or exchange of any Notes during a period beginning 15 days before the mailing of a redemption notice for any Notes or portions thereof selected for redemption.
11.Persons Deemed Owners.  The registered Holder of a Note may be treated as its owner for all purposes.
12.Amendment, Supplement and Waiver.  The Indenture or the Notes may be amended or supplemented as provided in the Indenture.
13.Defaults and Remedies.  If an Event of Default with respect to any Securities of any series at the time outstanding (other than an Event of Default relating to certain events of bankruptcy, insolvency or reorganization of the Company or the Guarantor as specified in the Indenture) occurs and is continuing, the Trustee by notice to the Company and the Guarantor, or the Holders of at least 25% in principal amount of the then outstanding Securities of the series affected by such Event of Default (or, in the case of an Event of Default described in clause (4) of Section 6.01(a) of the Indenture, if outstanding Securities of other series are affected by such Event of Default, then at least 25% in principal amount of the then outstanding Securities of all such series so affected acting as one class) by notice to the Company, the Guarantor and the Trustee, may declare the principal of (or, if any such Securities are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of that series) and all accrued and unpaid interest on all then outstanding Securities of such series or of all series, as the case may be, to be due and payable. Upon any such declaration, the amounts due and payable on the Securities shall be due and payable immediately. If an Event of Default specified in clause (6) or (7) of Section 6.01(a) of the Indenture hereof occurs, such amounts shall ipso facto become and be immediately due and payable without any declaration, notice or other act on the part of the Trustee or any Holder of the Securities. The Holders of a majority in 
Exhibit A-10

principal amount of the then outstanding Securities of the series affected by such Event of Default or all series so affected, as the case may be, by written notice to the Trustee may rescind an acceleration and its consequences (other than nonpayment of principal of or premium or interest on or any Additional Amounts with respect to the Securities) if (1) the rescission would not conflict with any judgment or decree, (2) all existing Events of Default with respect to Securities of that series (or of all series, as the case may be) have been cured or waived, except nonpayment of principal, premium, interest or any Additional Amounts that has become due solely because of the acceleration, and (3) the Trustee has been paid any amounts due to it for the compensation as may be agreed in writing by the parties from time to time, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 of the Indenture.
14.Authentication.  This Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose until authenticated by the manual signature of the Trustee.
15.GOVERNING LAW.  THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THE LAWS OF THE STATE OF NEW YORK REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.
16.CUSIP and ISIN Numbers.  Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP and ISIN numbers to be printed on the Notes and the Trustee may use CUSIP and ISIN numbers in notices of redemption as a convenience to holders.  No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.
The Company will furnish to any Holder upon written request and without charge a copy of the Indenture.  Requests may be made to the Company at the following address:
LYB International Finance III, LLC
1221 McKinney Street
Suite 300
Houston, TX 77010
Facsimile: (713) 309-4631
Attention: Chief Legal Officer

Exhibit A-11

ASSIGNMENT FORM
To assign this Note, fill in the form below:
(I) or (we) assign and transfer this Note to:   ________________________
(Insert assignee’s legal name) 
(Insert assignee’s Soc. Sec. or tax I.D. no.)
        
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
        (Print or type assignee’s name, address and zip code)
and irrevocably appoint  __________________________________________________________
 to transfer this Note on the books of the Company.  The agent may substitute another to act for him.

Date:  ___________

Your Signature: __________________
         (Sign exactly as your name appears 
on the face of this Note)

Signature Guarantee*:  _______________________

________________________
* Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

Exhibit A-12

OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Note purchased by the Company pursuant to Section 9 of the Note, check the box below:
[   ] 
If you want to elect to have only part of this Note purchased by the Company pursuant to Section 9 of the Note, state the amount you elect to have purchased:
$_______________
Date:  __________

Your Signature: _________________________________
        (Sign exactly as your name appears on the face of this Note)
Tax Identification No.:  ____________________________

Signature Guarantee*: _______________________________

________________________
* Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

Exhibit A-13

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

 The following increases or decreases in this Global Note have been made: 

																																													
	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	Date of
Exchange		 	Amount of
decrease in
Principal
Amount of this
Global Note		 	Amount of
increase in
Principal
Amount of this
Global Note		 	Principal
Amount of
Global Note
following such
decrease or increase		 	Signature of
authorized
signatory of
Trustee or
Notes Custodian		 

Exhibit A-14

EXHIBIT B
FORM OF NOTE DUE 2030
        UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT 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 A BENEFICIAL INTEREST HEREIN.
TRANSFERS OF THIS NOTE ARE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE ARE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE TRANSFER PROVISIONS OF THE INDENTURE.
IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

Exhibit B-1

CUSIP: 50249A AC7
ISIN:  US50249AAC71

LYB International Finance III, LLC 
GLOBAL NOTE
representing up to
$500,000,000
3.375% Guaranteed Notes due 2030
Fully and Unconditionally Guaranteed by

LyondellBasell Industries N.V.

												
	No. [	]	$[	]

LYB INTERNATIONAL FINANCE III, LLC, a Delaware limited liability company, promises to pay to Cede & Co., or its registered assigns, [ ● ] DOLLARS ($[ ● ]) or such greater or lesser principal sum as may be set forth on the Schedule of Increases or Decreases in Global Note attached hereto on May 1, 2030.
Interest Payment Dates: Semi-annually on May 1 and November 1, commencing on November 1, 2020
Record Dates: April 15 and October 15 immediately preceding the related interest payment date
Additional provisions of this Note are set forth on the other side of this Note.

Exhibit B-2

IN WITNESS WHEREOF, the parties have caused this instrument to be duly executed.
						
	LYB INTERNATIONAL FINANCE III, LLC, as Issuer	
	By:	

		Name: [●]
		Title: [●] 

Dated: April 20, 2020

						
	LYONDELLBASELL INDUSTRIES N.V., as Guarantor	
	By:	

		Name: [●]
		Title: [●] 

Dated: April 20, 2020

This is one of the Notes referred to in the within-mentioned Indenture:
          Wells Fargo Bank, National Association, as Trustee

         

          By:_________________________________
          Name: 
          Title: 

          

Dated: April 20, 2020

Exhibit B-3

[Back of Note]
3.375% Guaranteed Notes due 2030
Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.
1.LYB International Finance III, LLC, a Delaware limited liability company (the “Company”), promises to pay interest on the principal amount of this Note at 3.375% per annum from April 20, 2020 until maturity and shall pay Additional Amounts in respect thereof as set forth in the Indenture (as defined below). The Company will pay interest semi-annually in arrears on May 1 and November 1 of each year, or if any such day is not a Business Day, on the next succeeding Business Day without the accrual of interest for the intervening period (each, an “Interest Payment Date”).  Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the Issue Date; provided that the first Interest Payment Date shall be November 1, 2020. The Company will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at the interest rate on the Notes; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace periods) from time to time on demand at the interest rate on the Notes.  Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months.
2.Method of Payment.  The Company will pay interest on the Notes to the Persons who are registered Holders of Notes at the close of business on April 15 and October 15 (whether or not a Business Day), as the case may be, immediately preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.15(b) of the Indenture with respect to defaulted interest.  Payment of interest may be made by check mailed to the Holders at their addresses set forth in the register of Holders; provided that payment by wire transfer of immediately available funds will be required with respect to principal of and interest and premium on, all Global Notes and all other Notes the Holders of which shall have provided wire transfer instructions to the Company or the Paying Agent.  Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.
3.Trustee; Paying Agent and Registrar. Wells Fargo Bank, National Association, will be the Trustee, Paying Agent and Registrar (the “Trustee”) under the Indenture with regard to the Notes.
4.Guarantee. LyondellBasell Industries N.V., a public company with limited liability (naamloze vennootschap) under the laws of the Netherlands (the “Guarantor”), unconditionally guarantees to the Holders from time to time of the Notes, upon the terms and subject to the conditions set forth in the Indenture, (a) the full and prompt payment of the 
Exhibit B-4

principal of and any premium on this Note when and as the same shall become due, whether at the Stated Maturity thereof, by acceleration, redemption or otherwise, and (b) the full and prompt payment of any interest on and any Additional Amounts with respect to this Note when and as the same shall become due, subject in each case to any applicable grace period. The Guarantee constitutes a guarantee of payment and not of collection. In the event of a default in the payment of principal of or any premium on any Note when and as the same shall become due, whether at the Stated Maturity thereof, by acceleration, call for redemption or otherwise, or in the event of a default in any sinking fund payment, or in the event of a default in the payment of any interest on or any Additional Amounts with respect to any Note when and as the same shall become due, each of the Trustee and the Holder of such Note shall have the right to proceed first and directly against the Guarantor under the Indenture without first proceeding against the Company or exhausting any other remedies which the Trustee or such Holder may have and without resorting to any other security held by it.
5.Indenture.  The Company issued the Notes under an Indenture, dated as of October 10, 2019 (as amended or supplemented from time to time, the “Indenture”), between the Company, the Guarantor and the Trustee.  This Note represents a duly authorized issue of Notes of the Company designated as its 3.375% Guaranteed Notes due 2030 (the “Notes”). The Company shall be entitled to issue additional Notes pursuant to Section 2.01 of the Indenture. The Notes issued under the Indenture shall be treated as a single class of securities under the Indenture, unless otherwise specified in the Indenture. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”). The Notes are subject to all such terms, and Holders are referred to the Indenture and the Trust Indenture Act for a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.
6.Optional Redemption.
(a)Prior to the Par Call Date, the Notes will be redeemable and repayable, at the Company’s option, at any time in whole, or from time to time in part, at a price equal to the greater of: 
(i)  100% of the principal amount of the Notes to be redeemed; and 
(ii)  the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed that would be due if the Notes matured on the Par Call Date (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield plus 45 basis points;
plus, accrued and unpaid interest to, but excluding, the date of redemption.
On or after the Par Call Date, the Notes will be redeemable, at the Company’s option, at any time in whole, or from time to time in part, at a price equal to 100% of the principal 
Exhibit B-5

amount of the Notes to be redeemed plus accrued and unpaid interest on the Notes to be redeemed to, but excluding, the date of redemption. 

(b)Notes called for redemption become due on the date fixed for redemption. Notices of redemption will be mailed at least 10 but not more than 60 days before the redemption date to each Holder of record of the Notes to be redeemed at its registered address. The notice of redemption for the Notes will state, among other things, the amount of Notes to be redeemed, the redemption date, the redemption price or, if not ascertainable, the manner of determining the redemption price and the place(s) that payment will be made upon presentation and surrender of Notes to be redeemed. Unless the Company defaults in payment of the redemption price, interest will cease to accrue on any Notes that have been called for redemption at the redemption date. Notes called for redemption will be redeemed and repaid in principal amounts of $2,000 or any integral multiple of $1,000 in excess thereof. If less than all the Notes are redeemed at any time, the Trustee will select the Notes to be redeemed on a pro rata basis or by any other method in accordance with the procedures of DTC.
For purposes of determining the optional redemption price, the following definitions are applicable: 
“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Notes, calculated as if the maturity date of the Notes were the Par Call Date (the “Remaining Life”), that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of the Notes. 
“Comparable Treasury Price” means, with respect to any redemption date, (i) the average of the Reference Treasury Dealer Quotations obtained by the Company for the redemption date, after excluding the highest and lowest of all Reference Treasury Dealer Quotations obtained, or (ii) if the Company obtains fewer than four such Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations obtained by the Company.
“Independent Investment Banker” means BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC or Morgan Stanley & Co. LLC (and their respective successors), or, if each of such firms are unwilling or unable to select the applicable Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Trustee and reasonably acceptable to the Company.
“Par Call Date” means February 1, 2030 (three months prior to the maturity date) 
“Reference Treasury Dealer” means each of (i) BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC (and their respective successors), unless any of them ceases to be a primary U.S. government securities dealer in New York City (a “Primary Treasury Dealer”), in which case the Company will substitute 
Exhibit B-6

therefor another Primary Treasury Dealer, and (ii) any two or more other Primary Treasury Dealers selected by the Company.
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date for the Notes, an average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue for such Notes (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by the Reference Treasury Dealer at 5:00 p.m., New York City time, on the third business day preceding such redemption date.
“Treasury Yield” means, with respect to any redemption date applicable to the Notes, the rate per annum equal to the semi-annual equivalent yield to maturity (computed as of the third business day immediately preceding the redemption date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Comparable Treasury Price for the redemption date. 
7.Redemption for Changes in Taxes. In accordance with Section 3.12 of the Indenture, the Company may redeem the Notes in whole but not in part at its discretion at any time upon giving not less than 10 nor more than 60 days’ prior notice to the Holders of the Notes (which notice will be irrevocable) at a redemption price equal to 100% of the principal amount thereof, together with accrued and unpaid interest, if any, to the date fixed by the Company for redemption (a “Tax Redemption Date”) (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant Interest Payment Date and Additional Amounts (if any) in respect thereof) under the circumstances set forth in Section 3.12 of the Indenture.
8.Sinking Fund. The Company shall not be required to make sinking fund payments with respect to the Notes.
9.Change of Control Offer. If a Change of Control Triggering Event (as defined below) occurs, unless the Company has exercised its option to redeem the Notes as described in Section 6, each Holder shall have the right to require the Company to make an offer (a “Change of Control Offer”) to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes on the terms set forth herein. In a Change of Control Offer, the Company will offer payment in cash equal to 101% of the aggregate principal amount of Notes repurchased (a “Change of Control Payment”), plus accrued and unpaid interest, if any, on the Notes repurchased to the date of repurchase, subject to the right of Holders of record on the applicable record date to receive interest due on the next Interest Payment Date.
Within 30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, a notice will be mailed to Holders of the Notes describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase such Notes on the date specified in the applicable notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed (a “Change of Control Payment Date”). The notice may, if mailed prior to the 
Exhibit B-7

date of consummation of the Change of Control, state that the Change of Control Offer is conditioned on the Change of Control Triggering Event occurring on or prior to the applicable Change of Control Payment Date.
Upon the Change of Control Payment Date, the Company will, to the extent lawful: 
(a)accept for payment all Notes or portions of Notes properly tendered and not withdrawn pursuant to the Change of Control Offer;
(b)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 not withdrawn; and 
(c)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 repurchased. 
The Company will not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if 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 the third party repurchases all Notes properly tendered and not withdrawn under its offer. In addition, the Company will not repurchase any Notes if there has occurred and is continuing on the Change of Control Payment Date an Event of Default under the Indenture, other than a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event. 
The Company will comply with the applicable requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (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 the 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 the Change of Control Offer provisions of the Notes, the Company will comply with those securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control Offer provisions of the Notes by virtue of any such conflict. 
For purposes of this Section 9, the following terms will be applicable: 
“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 more series of related transactions, of all or substantially all of the Guarantor’s assets and the assets of the Guarantor’s Subsidiaries, taken as a whole, to any person, other than the Guarantor or one of its Subsidiaries; or (2) the Guarantor becomes aware of (by way of a report or any other filing pursuant to Section 13(d) of the Exchange Act, proxy, vote, written notice or otherwise) the acquisition by any person or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision), including any group acting for the purpose of acquiring, holding or disposing of securities (within the 
Exhibit B-8

meaning of Rule 13d-5(b)(1) under the Exchange Act), in a single transaction or in a related series of transactions, by way of acquisition, merger, amalgamation, consolidation, transfer, conveyance or other business combination or purchase of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act, or any successor provision) of more than 50% of the total voting power of the voting stock of the Guarantor, other than by virtue of the imposition of a holding company, or the reincorporation of the Guarantor in another jurisdiction, so long as the beneficial owners of the voting stock of the Guarantor immediately prior to such transaction hold a majority of the voting power of the voting stock of such holding company or reincorporation entity immediately thereafter. Any disposition of a “disposed group” permitted pursuant to Section 5.01(b) of the Indenture will not constitute a Change of Control pursuant to clause (1) of the first sentence of this definition.
Notwithstanding the foregoing, a transaction will not be deemed to involve a Change of Control under clause (2) of the definition of Change of Control above if (i) the Guarantor becomes a direct or indirect wholly owned Subsidiary of a holding company and (ii)(A) the direct or indirect holders of the voting stock of such holding company immediately following that transaction are substantially the same as the holders of the Guarantor’s voting stock immediately prior to that transaction or (B) immediately following that transaction no person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of the voting stock of such holding company. The term “person,” as used in this definition of Change of Control, has the meaning given thereto in Section 13(d)(3) of the Exchange Act. 
These provisions relating to the Company’s obligation to make a Change of Control Offer may be waived or modified with the consent of the Holders of a majority in aggregate principal amount of the Notes. 
“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Event.
“investment grade rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from any replacement rating agency or rating agencies selected by the Guarantor. 
“Moody’s” means Moody’s Investors Service, Inc. and its successors. 
“rating agencies” means (1) each of Moody’s and S&P and (2) if either of 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 Guarantor’s control, a “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) of the Exchange Act selected by the Guarantor (as certified by a resolution of the Company’s Board of Directors) as a replacement agency for Moody’s or S&P, or all of them, as the case may be.
“rating event” means the rating on the Notes is lowered by both of the two rating agencies and the Notes are rated below an investment grade rating by both of the two rating agencies, in any case on any day during the period (which period will be extended so long as the 
Exhibit B-9

rating of the Notes is under publicly announced consideration for a possible downgrade by either of the rating agencies) commencing 60 days prior to the first public notice of the occurrence of a Change of Control or the Guarantor’s intention to effect a Change of Control and ending 60 days following consummation of such Change of Control. 
“S&P” means S&P Global Ratings, a division of S&P Global, Inc., and its successors. 
“voting stock” means, with respect to any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date, the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person.
10.Denominations, Transfer, Exchange.  The Notes are in fully registered form only, without coupons, in denominations of $2,000 and integral multiples of $1,000. A holder shall register the transfer or exchange of Notes in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges payable in connection therewith as permitted by the Indenture. The Registrar need not register the transfer or exchange of any Notes during a period beginning 15 days before the mailing of a redemption notice for any Notes or portions thereof selected for redemption.
11.Persons Deemed Owners.  The registered Holder of a Note may be treated as its owner for all purposes.
12.Amendment, Supplement and Waiver.  The Indenture or the Notes may be amended or supplemented as provided in the Indenture.
13.Defaults and Remedies.  If an Event of Default with respect to any Securities of any series at the time outstanding (other than an Event of Default relating to certain events of bankruptcy, insolvency or reorganization of the Company or the Guarantor as specified in the Indenture) occurs and is continuing, the Trustee by notice to the Company and the Guarantor, or the Holders of at least 25% in principal amount of the then outstanding Securities of the series affected by such Event of Default (or, in the case of an Event of Default described in clause (4) of Section 6.01(a) of the Indenture, if outstanding Securities of other series are affected by such Event of Default, then at least 25% in principal amount of the then outstanding Securities of all such series so affected acting as one class) by notice to the Company, the Guarantor and the Trustee, may declare the principal of (or, if any such Securities are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of that series) and all accrued and unpaid interest on all then outstanding Securities of such series or of all series, as the case may be, to be due and payable. Upon any such declaration, the amounts due and payable on the Securities shall be due and payable immediately. If an Event of Default specified in clause (6) or (7) of Section 6.01(a) of the Indenture hereof occurs, such amounts shall ipso facto become and be immediately due and payable without any declaration, notice or other act on the part of the Trustee or any Holder of the Securities. The Holders of a majority in principal amount of the then outstanding Securities of the series affected by such Event of Default or all series so affected, as the case may be, by written notice to the Trustee may rescind an acceleration and its consequences (other than nonpayment of principal of or premium or 
Exhibit B-10

interest on or any Additional Amounts with respect to the Securities) if (1) the rescission would not conflict with any judgment or decree, (2) all existing Events of Default with respect to Securities of that series (or of all series, as the case may be) have been cured or waived, except nonpayment of principal, premium, interest or any Additional Amounts that has become due solely because of the acceleration, and (3) the Trustee has been paid any amounts due to it for the compensation as may be agreed in writing by the parties from time to time, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 of the Indenture.
14.Authentication.  This Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose until authenticated by the manual signature of the Trustee.
15.GOVERNING LAW.  THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THE LAWS OF THE STATE OF NEW YORK REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.
16.CUSIP and ISIN Numbers.  Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP and ISIN numbers to be printed on the Notes and the Trustee may use CUSIP and ISIN numbers in notices of redemption as a convenience to holders.  No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.
The Company will furnish to any Holder upon written request and without charge a copy of the Indenture.  Requests may be made to the Company at the following address:
LYB International Finance III, LLC
1221 McKinney Street
Suite 300
Houston, TX 77010
Facsimile: (713) 309-4631
Attention: Chief Legal Officer

Exhibit B-11

ASSIGNMENT FORM
To assign this Note, fill in the form below:
(I) or (we) assign and transfer this Note to:   ________________________
(Insert assignee’s legal name) 
(Insert assignee’s Soc. Sec. or tax I.D. no.)
        
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
        (Print or type assignee’s name, address and zip code)
and irrevocably appoint  __________________________________________________________
 to transfer this Note on the books of the Company.  The agent may substitute another to act for him.

Date:  ___________

Your Signature: __________________
         (Sign exactly as your name appears 
on the face of this Note)

Signature Guarantee*:  _______________________

________________________
* Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

Exhibit B-12

OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Note purchased by the Company pursuant to Section 9 of the Note, check the box below:
[   ] 
If you want to elect to have only part of this Note purchased by the Company pursuant to Section 9 of the Note, state the amount you elect to have purchased:
$_______________
Date:  __________

Your Signature: _________________________________
        (Sign exactly as your name appears on the face of this Note)
Tax Identification No.:  ____________________________

Signature Guarantee*: _______________________________

________________________
* Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

Exhibit B-13

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

 The following increases or decreases in this Global Note have been made: 

																																													
	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	Date of
Exchange			Amount of
decrease in
Principal
Amount of this
Global Note			Amount of
increase in
Principal
Amount of this
Global Note			Principal
Amount of
Global Note
following such
decrease or increase			Signature of
authorized
signatory of
Trustee or
Notes Custodian		

Exhibit B-14

EXHIBIT C
FORM OF NOTE DUE 2050
        UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT 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 A BENEFICIAL INTEREST HEREIN.
TRANSFERS OF THIS NOTE ARE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE ARE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE TRANSFER PROVISIONS OF THE INDENTURE.
IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

Exhibit C - 1

CUSIP: 50249A AD5
ISIN:  US50249AAD54

LYB International Finance III, LLC 
GLOBAL NOTE
representing up to
$1,000,000,000
4.200% Guaranteed Notes due 2050
Fully and Unconditionally Guaranteed by

LyondellBasell Industries N.V.

												
	No. [	]	$[	]

LYB INTERNATIONAL FINANCE III, LLC, a Delaware limited liability company, promises to pay to Cede & Co., or its registered assigns, [ ● ] DOLLARS ($[ ● ] or such greater or lesser principal sum as may be set forth on the Schedule of Increases or Decreases in Global Note attached hereto on May 1, 2050.
Interest Payment Dates: Semi-annually on May 1 and November 1, commencing on November 1, 2020
Record Dates: April 15 and October 15 immediately preceding the related interest payment date
Additional provisions of this Note are set forth on the other side of this Note.

Exhibit C - 2

IN WITNESS WHEREOF, the parties have caused this instrument to be duly executed.
						
	LYB INTERNATIONAL FINANCE III, LLC, as Issuer	
	By:	

		Name: [●]
		Title: [●] 

Dated: April 20, 2020

						
	LYONDELLBASELL INDUSTRIES N.V., as Guarantor	
	By:	

		Name: [●]
		Title: [●] 

Dated: April 20, 2020

This is one of the Notes referred to in the within-mentioned Indenture:
          Wells Fargo Bank, National Association, as Trustee

         

          By:_________________________________
          Name: 
          Title: 

          

Dated: April 20, 2020

Exhibit C - 3

[Back of Note]
4.200% Guaranteed Notes due 2050
Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.
1.LYB International Finance III, LLC, a Delaware limited liability company (the “Company”), promises to pay interest on the principal amount of this Note at 4.200% per annum from April 20, 2020 until maturity and shall pay Additional Amounts in respect thereof as set forth in the Indenture (as defined below). The Company will pay interest semi-annually in arrears on May 1 and November 1 of each year, or if any such day is not a Business Day, on the next succeeding Business Day without the accrual of interest for the intervening period (each, an “Interest Payment Date”).  Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the Issue Date; provided that the first Interest Payment Date shall be November 1, 2020. The Company will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at the interest rate on the Notes; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace periods) from time to time on demand at the interest rate on the Notes.  Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months.
2.Method of Payment.  The Company will pay interest on the Notes to the Persons who are registered Holders of Notes at the close of business on April 15 and October 15 (whether or not a Business Day), as the case may be, immediately preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.15(b) of the Indenture with respect to defaulted interest.  Payment of interest may be made by check mailed to the Holders at their addresses set forth in the register of Holders; provided that payment by wire transfer of immediately available funds will be required with respect to principal of and interest and premium on, all Global Notes and all other Notes the Holders of which shall have provided wire transfer instructions to the Company or the Paying Agent.  Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.
3.Trustee; Paying Agent and Registrar. Wells Fargo Bank, National Association, will be the Trustee, Paying Agent and Registrar (the “Trustee”) under the Indenture with regard to the Notes.
4.Guarantee. LyondellBasell Industries N.V., a public company with limited liability (naamloze vennootschap) under the laws of the Netherlands (the “Guarantor”), unconditionally guarantees to the Holders from time to time of the Notes, upon the terms and subject to the conditions set forth in the Indenture, (a) the full and prompt payment of the 
Exhibit C - 4

principal of and any premium on this Note when and as the same shall become due, whether at the Stated Maturity thereof, by acceleration, redemption or otherwise, and (b) the full and prompt payment of any interest on and any Additional Amounts with respect to this Note when and as the same shall become due, subject in each case to any applicable grace period. The Guarantee constitutes a guarantee of payment and not of collection. In the event of a default in the payment of principal of or any premium on any Note when and as the same shall become due, whether at the Stated Maturity thereof, by acceleration, call for redemption or otherwise, or in the event of a default in any sinking fund payment, or in the event of a default in the payment of any interest on or any Additional Amounts with respect to any Note when and as the same shall become due, each of the Trustee and the Holder of such Note shall have the right to proceed first and directly against the Guarantor under the Indenture without first proceeding against the Company or exhausting any other remedies which the Trustee or such Holder may have and without resorting to any other security held by it.
5.Indenture.  The Company issued the Notes under an Indenture, dated as of October 10, 2019 (as amended or supplemented from time to time, the “Indenture”), between the Company, the Guarantor and the Trustee.  This Note represents a duly authorized issue of Notes of the Company designated as its 4.200% Guaranteed Notes due 2050 (the “Notes”). The Company shall be entitled to issue additional Notes pursuant to Section 2.01 of the Indenture. The Notes issued under the Indenture shall be treated as a single class of securities under the Indenture, unless otherwise specified in the Indenture. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”). The Notes are subject to all such terms, and Holders are referred to the Indenture and the Trust Indenture Act for a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.
6.Optional Redemption.
(a)Prior to the Par Call Date, the Notes will be redeemable and repayable, at the Company’s option, at any time in whole, or from time to time in part, at a price equal to the greater of: 
(i)  100% of the principal amount of the Notes to be redeemed; and 
(ii)  the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed that would be due if the Notes matured on the Par Call Date (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield plus 45 basis points;
plus, accrued and unpaid interest to, but excluding, the date of redemption.
On or after the Par Call Date, the Notes will be redeemable, at the Company’s option, at any time in whole, or from time to time in part, at a price equal to 100% of the principal 
Exhibit C - 5

amount of the Notes to be redeemed plus accrued and unpaid interest on the Notes to be redeemed to, but excluding, the date of redemption. 

(b)Notes called for redemption become due on the date fixed for redemption. Notices of redemption will be mailed at least 10 but not more than 60 days before the redemption date to each Holder of record of the Notes to be redeemed at its registered address. The notice of redemption for the Notes will state, among other things, the amount of Notes to be redeemed, the redemption date, the redemption price or, if not ascertainable, the manner of determining the redemption price and the place(s) that payment will be made upon presentation and surrender of Notes to be redeemed. Unless the Company defaults in payment of the redemption price, interest will cease to accrue on any Notes that have been called for redemption at the redemption date. Notes called for redemption will be redeemed and repaid in principal amounts of $2,000 or any integral multiple of $1,000 in excess thereof. If less than all the Notes are redeemed at any time, the Trustee will select the Notes to be redeemed on a pro rata basis or by any other method in accordance with the procedures of DTC.
For purposes of determining the optional redemption price, the following definitions are applicable: 
“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Notes, calculated as if the maturity date of the Notes were the Par Call Date (the “Remaining Life”), that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of the Notes. 
“Comparable Treasury Price” means, with respect to any redemption date, (i) the average of the Reference Treasury Dealer Quotations obtained by the Company for the redemption date, after excluding the highest and lowest of all Reference Treasury Dealer Quotations obtained, or (ii) if the Company obtains fewer than four such Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations obtained by the Company.
“Independent Investment Banker” means BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC or Morgan Stanley & Co. LLC (and their respective successors), or, if each of such firms are unwilling or unable to select the applicable Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Trustee and reasonably acceptable to the Company.
“Par Call Date” means November 1, 2049 (six months prior to the maturity date) 
“Reference Treasury Dealer” means each of (i) BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC (and their respective successors), unless any of them ceases to be a primary U.S. government securities dealer in New York City (a “Primary Treasury Dealer”), in which case the Company will substitute 
Exhibit C - 6

therefor another Primary Treasury Dealer, and (ii) any two or more other Primary Treasury Dealers selected by the Company.
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date for the Notes, an average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue for such Notes (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by the Reference Treasury Dealer at 5:00 p.m., New York City time, on the third business day preceding such redemption date.
“Treasury Yield” means, with respect to any redemption date applicable to the Notes, the rate per annum equal to the semi-annual equivalent yield to maturity (computed as of the third business day immediately preceding the redemption date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Comparable Treasury Price for the redemption date. 
7.Redemption for Changes in Taxes. In accordance with Section 3.12 of the Indenture, the Company may redeem the Notes in whole but not in part at its discretion at any time upon giving not less than 10 nor more than 60 days’ prior notice to the Holders of the Notes (which notice will be irrevocable) at a redemption price equal to 100% of the principal amount thereof, together with accrued and unpaid interest, if any, to the date fixed by the Company for redemption (a “Tax Redemption Date”) (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant Interest Payment Date and Additional Amounts (if any) in respect thereof) under the circumstances set forth in Section 3.12 of the Indenture.
8.Sinking Fund. The Company shall not be required to make sinking fund payments with respect to the Notes.
9.Change of Control Offer. If a Change of Control Triggering Event (as defined below) occurs, unless the Company has exercised its option to redeem the Notes as described in Section 6, each Holder shall have the right to require the Company to make an offer (a “Change of Control Offer”) to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes on the terms set forth herein. In a Change of Control Offer, the Company will offer payment in cash equal to 101% of the aggregate principal amount of Notes repurchased (a “Change of Control Payment”), plus accrued and unpaid interest, if any, on the Notes repurchased to the date of repurchase, subject to the right of Holders of record on the applicable record date to receive interest due on the next Interest Payment Date.
Within 30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, a notice will be mailed to Holders of the Notes describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase such Notes on the date specified in the applicable notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed (a “Change of Control Payment Date”). The notice may, if mailed prior to the 
Exhibit C - 7

date of consummation of the Change of Control, state that the Change of Control Offer is conditioned on the Change of Control Triggering Event occurring on or prior to the applicable Change of Control Payment Date.
Upon the Change of Control Payment Date, the Company will, to the extent lawful: 
(a)accept for payment all Notes or portions of Notes properly tendered and not withdrawn pursuant to the Change of Control Offer;
(b)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 not withdrawn; and 
(c)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 repurchased. 
The Company will not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if 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 the third party repurchases all Notes properly tendered and not withdrawn under its offer. In addition, the Company will not repurchase any Notes if there has occurred and is continuing on the Change of Control Payment Date an Event of Default under the Indenture, other than a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event. 
The Company will comply with the applicable requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (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 the 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 the Change of Control Offer provisions of the Notes, the Company will comply with those securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control Offer provisions of the Notes by virtue of any such conflict. 
For purposes of this Section 9, the following terms will be applicable: 
“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 more series of related transactions, of all or substantially all of the Guarantor’s assets and the assets of the Guarantor’s Subsidiaries, taken as a whole, to any person, other than the Guarantor or one of its Subsidiaries; or (2) the Guarantor becomes aware of (by way of a report or any other filing pursuant to Section 13(d) of the Exchange Act, proxy, vote, written notice or otherwise) the acquisition by any person or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision), including any group acting for the purpose of acquiring, holding or disposing of securities (within the 
Exhibit C - 8

meaning of Rule 13d-5(b)(1) under the Exchange Act), in a single transaction or in a related series of transactions, by way of acquisition, merger, amalgamation, consolidation, transfer, conveyance or other business combination or purchase of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act, or any successor provision) of more than 50% of the total voting power of the voting stock of the Guarantor, other than by virtue of the imposition of a holding company, or the reincorporation of the Guarantor in another jurisdiction, so long as the beneficial owners of the voting stock of the Guarantor immediately prior to such transaction hold a majority of the voting power of the voting stock of such holding company or reincorporation entity immediately thereafter. Any disposition of a “disposed group” permitted pursuant to Section 5.01(b) of the Indenture will not constitute a Change of Control pursuant to clause (1) of the first sentence of this definition.
Notwithstanding the foregoing, a transaction will not be deemed to involve a Change of Control under clause (2) of the definition of Change of Control above if (i) the Guarantor becomes a direct or indirect wholly owned Subsidiary of a holding company and (ii)(A) the direct or indirect holders of the voting stock of such holding company immediately following that transaction are substantially the same as the holders of the Guarantor’s voting stock immediately prior to that transaction or (B) immediately following that transaction no person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of the voting stock of such holding company. The term “person,” as used in this definition of Change of Control, has the meaning given thereto in Section 13(d)(3) of the Exchange Act. 
These provisions relating to the Company’s obligation to make a Change of Control Offer may be waived or modified with the consent of the Holders of a majority in aggregate principal amount of the Notes. 
“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Event.
“investment grade rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from any replacement rating agency or rating agencies selected by the Guarantor. 
“Moody’s” means Moody’s Investors Service, Inc. and its successors. 
“rating agencies” means (1) each of Moody’s and S&P and (2) if either of 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 Guarantor’s control, a “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) of the Exchange Act selected by the Guarantor (as certified by a resolution of the Company’s Board of Directors) as a replacement agency for Moody’s or S&P, or all of them, as the case may be.
“rating event” means the rating on the Notes is lowered by both of the two rating agencies and the Notes are rated below an investment grade rating by both of the two rating agencies, in any case on any day during the period (which period will be extended so long as the 
Exhibit C - 9

rating of the Notes is under publicly announced consideration for a possible downgrade by either of the rating agencies) commencing 60 days prior to the first public notice of the occurrence of a Change of Control or the Guarantor’s intention to effect a Change of Control and ending 60 days following consummation of such Change of Control. 
“S&P” means S&P Global Ratings, a division of S&P Global, Inc., and its successors. 
“voting stock” means, with respect to any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date, the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person.
10.Denominations, Transfer, Exchange.  The Notes are in fully registered form only, without coupons, in denominations of $2,000 and integral multiples of $1,000. A holder shall register the transfer or exchange of Notes in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges payable in connection therewith as permitted by the Indenture. The Registrar need not register the transfer or exchange of any Notes during a period beginning 15 days before the mailing of a redemption notice for any Notes or portions thereof selected for redemption.
11.Persons Deemed Owners.  The registered Holder of a Note may be treated as its owner for all purposes.
12.Amendment, Supplement and Waiver.  The Indenture or the Notes may be amended or supplemented as provided in the Indenture.
13.Defaults and Remedies.  If an Event of Default with respect to any Securities of any series at the time outstanding (other than an Event of Default relating to certain events of bankruptcy, insolvency or reorganization of the Company or the Guarantor as specified in the Indenture) occurs and is continuing, the Trustee by notice to the Company and the Guarantor, or the Holders of at least 25% in principal amount of the then outstanding Securities of the series affected by such Event of Default (or, in the case of an Event of Default described in clause (4) of Section 6.01(a) of the Indenture, if outstanding Securities of other series are affected by such Event of Default, then at least 25% in principal amount of the then outstanding Securities of all such series so affected acting as one class) by notice to the Company, the Guarantor and the Trustee, may declare the principal of (or, if any such Securities are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of that series) and all accrued and unpaid interest on all then outstanding Securities of such series or of all series, as the case may be, to be due and payable. Upon any such declaration, the amounts due and payable on the Securities shall be due and payable immediately. If an Event of Default specified in clause (6) or (7) of Section 6.01(a) of the Indenture hereof occurs, such amounts shall ipso facto become and be immediately due and payable without any declaration, notice or other act on the part of the Trustee or any Holder of the Securities. The Holders of a majority in principal amount of the then outstanding Securities of the series affected by such Event of Default or all series so affected, as the case may be, by written notice to the Trustee may rescind an acceleration and its consequences (other than nonpayment of principal of or premium or 
Exhibit C - 10

interest on or any Additional Amounts with respect to the Securities) if (1) the rescission would not conflict with any judgment or decree, (2) all existing Events of Default with respect to Securities of that series (or of all series, as the case may be) have been cured or waived, except nonpayment of principal, premium, interest or any Additional Amounts that has become due solely because of the acceleration, and (3) the Trustee has been paid any amounts due to it for the compensation as may be agreed in writing by the parties from time to time, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 of the Indenture.
14.Authentication.  This Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose until authenticated by the manual signature of the Trustee.
15.GOVERNING LAW.  THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THE LAWS OF THE STATE OF NEW YORK REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.
16.CUSIP and ISIN Numbers.  Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP and ISIN numbers to be printed on the Notes and the Trustee may use CUSIP and ISIN numbers in notices of redemption as a convenience to holders.  No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.
The Company will furnish to any Holder upon written request and without charge a copy of the Indenture.  Requests may be made to the Company at the following address:
LYB International Finance III, LLC
1221 McKinney Street
Suite 300
Houston, TX 77010
Facsimile: (713) 309-4631
Attention: Chief Legal Officer

Exhibit C - 11

ASSIGNMENT FORM
To assign this Note, fill in the form below:
(I) or (we) assign and transfer this Note to:   ________________________
(Insert assignee’s legal name) 
(Insert assignee’s Soc. Sec. or tax I.D. no.)
        
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
        (Print or type assignee’s name, address and zip code)
and irrevocably appoint  __________________________________________________________
 to transfer this Note on the books of the Company.  The agent may substitute another to act for him.

Date:  ___________

Your Signature: __________________
         (Sign exactly as your name appears 
on the face of this Note)

Signature Guarantee*:  _______________________

________________________
* Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

Exhibit C - 12

OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Note purchased by the Company pursuant to Section 9 of the Note, check the box below:
[   ] 
If you want to elect to have only part of this Note purchased by the Company pursuant to Section 9 of the Note, state the amount you elect to have purchased:
$_______________
Date:  __________

Your Signature: _________________________________
        (Sign exactly as your name appears on the face of this Note)
Tax Identification No.:  ____________________________

Signature Guarantee*: _______________________________

________________________
* Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

Exhibit C - 13

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

 The following increases or decreases in this Global Note have been made: 

																																													
	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	Date of
Exchange			Amount of
decrease in
Principal
Amount of this
Global Note			Amount of
increase in
Principal
Amount of this
Global Note			Principal
Amount of
Global Note
following such
decrease or increase			Signature of
authorized
signatory of
Trustee or
Notes Custodian		

Exhibit C - 14exhibit101uscrcreditandg

                                                    Exhibit 10.1                                            EXECUTION VERSION                        Published Deal CUSIP Number:  90344JAC8                   Published Facility CUSIP Number:  90344JAD6         CREDIT AND GUARANTY AGREEMENT               Dated as of April 17, 2020                     among               U.S. CONCRETE, INC.,                   as Borrower,   CERTAIN SUBSIDIARIES OF U.S. CONCRETE, INC.,                  as Guarantors,    THE FINANCIAL INSTITUTIONS NAMED HEREIN,                   as Lenders,                       and              BANK OF AMERICA, N.A.,              as Administrative Agent,              BOFA SECURITIES, INC.,      as Sole Lead Arranger and Sole Bookrunner 

 

                                     TABLE OF CONTENTS                                                                                                Page                                              ARTICLE I                                             DEFINITIONS   1.1    Defined Terms ................................................................................................................................................. 1  1.2    Other Interpretive Provisions ........................................................................................................................ 49  1.3    Accounting Terms ......................................................................................................................................... 51  1.4    Rounding ....................................................................................................................................................... 51  1.5    Times of Day ................................................................................................................................................. 51  1.6    Currency Equivalents Generally.................................................................................................................... 51  1.7    Interest Rates ................................................................................................................................................. 52  1.8    Classification of Term Loans ........................................................................................................................ 52  1.9    Effectuation of Transactions ......................................................................................................................... 52                                              ARTICLE II                                TERM LOANS / INTEREST / PAYMENTS   2.1    The Term Loans ............................................................................................................................................ 52  2.2    Borrowings, Conversions and Continuations of Term Loans........................................................................ 52  2.3    Prepayments .................................................................................................................................................. 53  2.4    Termination of Commitments ....................................................................................................................... 55  2.5    Repayment of Term Loans ............................................................................................................................ 56  2.6    Interest ........................................................................................................................................................... 56  2.7    Fees ............................................................................................................................................................... 57  2.8    Computation of Interest and Fees .................................................................................................................. 57  2.9    Evidence of Debt ........................................................................................................................................... 57  2.10   Payments Generally; Administrative Agent’s Clawback .............................................................................. 57  2.11   Sharing of Payments by Lenders ................................................................................................................... 58  2.12   Incremental Term Loans ............................................................................................................................... 59  2.13   Extension Amendments ................................................................................................................................. 63  2.14   Refinancing Amendments ............................................................................................................................. 65  2.15   Defaulting Lenders ........................................................................................................................................ 67                                              ARTICLE III                             TAXES, YIELD PROTECTION AND ILLEGALITY   3.1    Taxes ............................................................................................................................................................. 68  3.2    Illegality ........................................................................................................................................................ 71  3.3    Inability to Determine Rates .......................................................................................................................... 72  3.4    Increased Costs .............................................................................................................................................. 73  3.5    Compensation for Losses .............................................................................................................................. 74  3.6    Mitigation Obligations; Replacement of Lenders.......................................................................................... 75  3.7    Survival ......................................................................................................................................................... 75                                             ARTICLE IV                                             CONDITIONS   4.1    Conditions to Effectiveness of Agreement .................................................................................................... 75  4.2    Conditions to Each Funding Date.................................................................................................................. 78                                                    i 

 

                                           ARTICLE V                           GENERAL WARRANTIES AND REPRESENTATIONS   5.1    Organization and Qualification ..................................................................................................................... 78  5.2    Power and Authority ..................................................................................................................................... 78  5.3    Enforceability ................................................................................................................................................ 78  5.4    Capital Structure ............................................................................................................................................ 78  5.5    Title to Properties; Priority of Liens .............................................................................................................. 79  5.6    Financial Statements; Material Adverse Effect ............................................................................................. 79  5.7    Solvency ........................................................................................................................................................ 80  5.8    Surety Obligations ......................................................................................................................................... 80  5.9    Taxes ............................................................................................................................................................. 80  5.10   Brokers .......................................................................................................................................................... 80  5.11   Intellectual Property ...................................................................................................................................... 80  5.12   Governmental Approvals .............................................................................................................................. 80  5.13   Compliance with Laws .................................................................................................................................. 80  5.14   Compliance with Environmental Laws ......................................................................................................... 80  5.15   Burdensome Contracts .................................................................................................................................. 81  5.16   Litigation ....................................................................................................................................................... 81  5.17   No Defaults ................................................................................................................................................... 81  5.18   ERISA ........................................................................................................................................................... 81  5.19   Trade Relations ............................................................................................................................................. 82  5.20   Labor Relations ............................................................................................................................................. 82  5.21   Not a Regulated Entity .................................................................................................................................. 82  5.22   Use of Proceeds; Margin Stock ..................................................................................................................... 82  5.23   Sanctions ....................................................................................................................................................... 82  5.24   Anti-Corruption Laws ................................................................................................................................... 82  5.25   Complete Disclosure ..................................................................................................................................... 83  5.26   Affected Financial Institutions ...................................................................................................................... 83  5.27   Covered Entities ............................................................................................................................................ 83  5.28   Beneficial Ownership Certification ............................................................................................................... 83                                             ARTICLE VI                                      AFFIRMATIVE COVENANTS   6.1    Books and Records ........................................................................................................................................ 83  6.2    Financial Statements and Other Information ................................................................................................. 83  6.3    Notices........................................................................................................................................................... 85  6.4    Preservation of Legal Existence and Good Standing .................................................................................... 86  6.5    Compliance with Laws .................................................................................................................................. 86  6.6    Taxes ............................................................................................................................................................. 86  6.7    Maintenance of Property ............................................................................................................................... 86  6.8    Maintenance of Insurance ............................................................................................................................. 86  6.9    Licenses ......................................................................................................................................................... 86  6.10   Inspection Rights ........................................................................................................................................... 87  6.11   Use of Proceeds ............................................................................................................................................. 87  6.12   Further Assurances; After-Acquired Property ............................................................................................... 87  6.13   Additional Loan Parties ................................................................................................................................. 88  6.14   [Reserved] ..................................................................................................................................................... 88  6.15   Compliance with ERISA ............................................................................................................................... 88  6.16   Anti-Corruption Laws; Sanctions .................................................................................................................. 88  6.17   MIRE Events ................................................................................................................................................. 89                                                    ii 

 

                                          ARTICLE VII                                       NEGATIVE COVENANTS   7.1    Limitation on Restricted Payments ............................................................................................................... 89  7.2    Limitation on Indebtedness ........................................................................................................................... 92  7.3    Limitation on Liens ....................................................................................................................................... 95  7.4    Limitations on Restrictions on Distributions from Restricted Subsidiaries ................................................... 96  7.5    Limitation on Sales of Assets and Subsidiary Stock ..................................................................................... 97  7.6    Limitation on Affiliate Transactions ............................................................................................................. 98  7.7    Limitation on Line of Business ..................................................................................................................... 99  7.8    Limitation on Fundamental Changes ............................................................................................................. 99  7.9    Impairment of Security Interest ................................................................................................................... 101  7.10   Amendment of Subordinated Obligations and Specified Junior Indebtedness ............................................ 101  7.11   Fiscal Year .................................................................................................................................................. 101                                             ARTICLE VIII                                 EVENTS OF DEFAULT AND REMEDIES   8.1    Events of Default ......................................................................................................................................... 101  8.2    Remedies upon Event of Default ................................................................................................................. 103  8.3    Application of Funds ................................................................................................................................... 103                                             ARTICLE IX                                             THE AGENT   9.1    Appointment and Authority ......................................................................................................................... 104  9.2    Rights as a Lender ....................................................................................................................................... 104  9.3    Exculpatory Provisions................................................................................................................................ 104  9.4    Reliance by Administrative Agent .............................................................................................................. 105  9.5    Delegation of Duties .................................................................................................................................... 106  9.6    Resignation of Administrative Agent .......................................................................................................... 106  9.7    Non-Reliance on the Administrative Agent, the Arranger and the Other Lenders ...................................... 107  9.8    No Other Duties, Etc ................................................................................................................................... 107  9.9    Administrative Agent May File Proofs of Claim; Credit Bidding ............................................................... 107  9.10   Concerning the Collateral, Guaranties and Related Loan Documents ........................................................ 108  9.11   Certain ERISA Matters ............................................................................................................................... 109                                              ARTICLE X                                             GUARANTY   10.1   Guaranty of the Obligations ........................................................................................................................ 110  10.2   Contribution by Guarantors ......................................................................................................................... 111  10.3   Payment by Guarantors ............................................................................................................................... 111  10.4   Liability of Guarantors Absolute ................................................................................................................. 111  10.5   Waivers by Guarantors ................................................................................................................................ 113  10.6   Guarantors’ Rights of Subrogation, Contribution, etc ................................................................................. 113  10.7   Subordination of Other Obligations ............................................................................................................ 114  10.8   Continuing Guaranty ................................................................................................................................... 114  10.9   Authority of Guarantors or Borrowers ........................................................................................................ 114  10.10  Financial Condition of the Borrower ........................................................................................................... 114  10.11  Bankruptcy, etc............................................................................................................................................ 114                                                   iii 

 

                                          ARTICLE XI                                           MISCELLANEOUS   11.1   Amendments, Etc ........................................................................................................................................ 115  11.2   Notices; Effectiveness; Electronic Communications ................................................................................... 116  11.3   No Waiver; Cumulative Remedies; Enforcement ....................................................................................... 117  11.4   Expenses; Indemnity; Damage Waiver ....................................................................................................... 118  11.5   Payments Set Aside ..................................................................................................................................... 120  11.6   Successors and Assigns ............................................................................................................................... 120  11.7   Treatment of Certain Information; Confidentiality ..................................................................................... 124  11.8   Right of Setoff ............................................................................................................................................. 125  11.9   Interest Rate Limitation ............................................................................................................................... 125  11.10  Counterparts; Integration; Effectiveness ..................................................................................................... 126  11.11  Survival of Representations and Warranties ............................................................................................... 126  11.12  Severability ................................................................................................................................................. 126  11.13  Replacement of Lenders .............................................................................................................................. 126  11.14  Governing Law; Jurisdiction; Etc ................................................................................................................ 127  11.15  Waiver of Jury Trial .................................................................................................................................... 128  11.16  No Advisory or Fiduciary Responsibility .................................................................................................... 128  11.17  Electronic Execution of Assignments and Certain Other Documents ......................................................... 128  11.18  USA PATRIOT Act .................................................................................................................................... 128  11.19  ENTIRE AGREEMENT ............................................................................................................................. 129  11.20  Acknowledgment and Consent to Bail-In of Affected Financial Institutions .............................................. 129  11.21  Acknowledgement Regarding Any Supported QFCs .................................................................................. 129                                                   iv 

 

EXHIBITS AND SCHEDULES   EXHIBIT A             FORM OF AFFILIATE ASSIGNMENT AGREEMENT EXHIBIT B             FORM OF ASSIGNMENT AND ASSUMPTION EXHIBIT C             FORM OF COMMITTED LOAN NOTICE EXHIBIT D             FORM OF NOTICE OF LOAN PREPAYMENT EXHIBIT E             FORM OF PROMISSORY NOTE EXHIBIT F             FORM OF PERFECTION CERTIFICATE AND SUPPLEMENT EXHIBIT G             FORM OF U.S. TAX COMPLIANCE CERTIFICATES EXHIBIT H             FORM OF SOLVENCY CERTIFICATE EXHIBIT I             FORM OF COMPLIANCE CERTIFICATE EXHIBIT J             FORM OF CLOSING CERTIFICATE EXHIBIT K             FORM OF MORTGAGE EXHIBIT L             AUCTION PROCEDURES   SCHEDULE 1.1          LENDERS’ COMMITMENTS SCHEDULE 1.2          GUARANTORS SCHEDULE 1.3          INVESTMENTS SCHEDULE 1.4          UNRESTRICTED SUBSIDIARIES SCHEDULE 1.5          INITIAL QUARRY PROPERTIES SCHEDULE 1.6          INITIAL NON-QUARRY PROPERTIES SCHEDULE 5.1          ORGANIZATION AND QUALIFICATION SCHEDULE 5.4          CAPITAL STRUCTURE SCHEDULE 5.8          SURETY OBLIGATIONS SCHEDULE 5.9          TAXES SCHEDULE 5.11         INTELLECTUAL PROPERTY SCHEDULE 5.14         ENVIRONMENTAL LAWS SCHEDULE 5.15         BURDENSOME CONTRACTS SCHEDULE 5.16         LITIGATION SCHEDULE 5.18         ERISA MATTERS SCHEDULE 5.20         LABOR RELATIONS SCHEDULE 7.2          INDEBTEDNESS SCHEDULE 7.3          LIENS SCHEDULE 7.4          LIMITATIONS ON RESTRICTIONS ON DISTRIBUTIONS SCHEDULE 7.6          AFFILIATE TRANSACTIONS  SCHEDULE 11.2         NOTICE INFORMATION                                                  v 

 

                            CREDIT AND GUARANTY AGREEMENT          This Credit and Guaranty Agreement, dated as of April 17, 2020, among U.S. Concrete, Inc., a Delaware  corporation (the “Borrower”), the Guarantors (as defined below) party hereto, the financial institutions from time to  time parties hereto (such financial institutions, together with their respective successors and permitted assigns, are  referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”) and Bank of America, N.A.,  as the administrative agent and collateral agent (together with its successors and permitted assigns in such capacity,  the “Administrative Agent”).                                          W I T N E S E T H:                  WHEREAS, the Borrower has requested that the Lenders provide up to $180,000,000 aggregate  principal  amount  of  Initial  Term  Loans  during  the  Delayed  Draw  Availability  Period  (as  defined  below)  for  the  purposes set forth herein, and the Lenders are willing to do so on the terms and conditions set forth herein; and                  WHEREAS, the Guarantors party hereto agree to guarantee the Borrower’s obligations hereunder.           NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth in this Agreement,  and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby  agree as follows:                                              ARTICLE I                                           DEFINITIONS          1.1     Defined Terms.  As used in this Agreement, the following terms shall have the meanings specified  below:          “ABL Agreement” means the Third Amended and Restated Loan and Security Agreement, dated as of August  31, 2017, among the Borrower, the subsidiaries of the Borrower from time to time party thereto as “Borrowers”, the  subsidiaries of the Borrower from time to time party thereto as “Guarantors”, the financial institutions party thereto  as “Lenders”, and Bank of America, as agent for the Lenders, including any notes, guarantees, collateral and security  documents, instruments and agreements executed in connection therewith, and, in each case, as amended by the First  Amendment thereto, dated as of November 14, 2017.          “ABL Intercreditor Agreement” means that certain intercreditor agreement, dated as of the Agreement Date,  by and among Bank of America, as agent under the ABL Agreement, and Bank of America, as the Administrative  Agent under this Agreement, and the other parties thereto from time to time.           “ABL Priority Collateral” has the meaning specified in the ABL Intercreditor Agreement.          “Acceleration” has the meaning specified in Section 8.1(e).          “Acceptable Intercreditor Agreement” means an intercreditor agreement containing customary terms and  conditions  for  comparable  transactions,  which  shall  be  in  form  and  substance  reasonably  acceptable  to  the  Administrative Agent.          “Acquired Indebtedness” means, with respect to any specified Person, Indebtedness of any other Person  existing at the time such other Person is merged with or into or becomes a Restricted Subsidiary of such specified  Person.          “Act” has the meaning specified in Section 11.18.          “Additional Assets” means: 

 

       (1)  any property, plant or equipment used or useful in a Related Business;          (2)  the Capital Stock of a Person that becomes a Restricted Subsidiary as a result of the acquisition of such              Capital Stock by the Borrower or another Restricted Subsidiary; or          (3)  Capital Stock constituting a minority interest in any Person that at such time is a Restricted Subsidiary;    provided, however, that any such Restricted Subsidiary described in clause (2) or (3) above is primarily engaged in a  Related Business.          “Additional  Lender”  means  any  Person  that  has  agreed  to  provide  Incremental  Term  Loans  pursuant  to  Section 2.12 or Refinancing Term Loans pursuant to Section 2.14, whether or not such Person was a Lender hereunder  immediately prior to such time.           “Additional Loan Party” has the meaning specified in Section 6.13.          “Administrative Agent” means Bank of America in its capacity as administrative agent under any of the Loan  Documents, or any successor administrative agent.          “Administrative Agent’s Liens” means the Liens in the Collateral granted to the Administrative Agent, for  the benefit of the Secured Parties, pursuant to this Agreement and the other Loan Documents.          “Administrative Agent’s Office” means the Administrative Agent’s address and, as appropriate, account as  set forth on Schedule 11.2, or such other address or account as the Administrative Agent may from time to time  notify to the Borrower and the Lenders.           “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial Institution.          “Affiliate” means with respect to any Person, another Person that directly, or indirectly through one or more  intermediaries, Controls or is Controlled by or is under common Control with the Person specified.  “Control” means  the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a  Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled”  have correlative meanings.          “Affiliate Assignment Agreement” means an Assignment and Assumption Agreement substantially in the  form of Exhibit A, with such amendments or modifications as may be approved by Administrative Agent.          “Affiliate Transaction” has the meaning specified in Section 7.6(a).          “Aggregate Payments” has the meaning specified in Section 10.2.          “Aggregate Related Business” means any Related Business operating in the aggregate products segment. For  the purposes of this definition, “aggregate” means the raw material used in the production of ready-mixed concrete.          “Agreement” means this Credit and Guaranty Agreement, as amended, amended and restated, modified or  supplemented from time to time.          “Agreement Date” means the date of this Agreement.          “All-In-Yield” means, as to any Indebtedness, the yield thereof, whether in the form of interest rate, margin,  original issue discount, upfront fees, an interest rate benchmark floor, or otherwise, in each case, Incurred or payable  by the Borrower generally to all the lenders or holders of such Indebtedness; provided that original issue discount and  upfront fees shall be equated to interest rate assuming a four-year (4-year) life to maturity (or, if less, the stated life to  maturity at the time of Incurrence of the applicable Indebtedness); provided, further, that “All-In-Yield” shall not  include  ticking  fees,  unused  line  fees,  amendment  fees,  arrangement  fees,  syndication  fees,  structuring  fees,                                                    2 

 

commitment fees, underwriting fees and similar fees (regardless of whether paid, in whole or in part, to any or all  lenders or holders of such Indebtedness) or other fees not paid generally to all lenders or holders of such Indebtedness.          “Anti-Corruption Laws” has the meaning specified in Section 5.24.          “Applicable Law” means, as to any Person, all applicable Laws binding upon such Person or to which such  a Person is subject.          “Applicable Percentage” means in respect of any Class of Term Loans, with respect to any Lender of such  Class, the percentage (carried out to the ninth decimal place) of the total outstanding principal amount of the Term  Loans of such Class represented by such Lender’s Term Loans of such Class at such time.          “Applicable Rate” means, for any day, with respect to any Initial Term Loans that are Eurodollar Rate  Term Loans or Base Rate Term Loans, the applicable per annum rate set forth in the grid below under the caption  “Eurodollar Rate Term Loan Spread” or “Base Rate Term Loan Spread”, as the case may be, based upon the  aggregate principal amount of Initial Term Loans borrowed on or after the Closing Date:                     Aggregate Principal Amount of Initial Term Eurodollar Rate   Base Rate Term     Pricing Level  Loans Borrowed on or after the Closing Date Term Loan Spread  Loan Spread         1                     ≤ $100,000,000                    2.75%              1.75%         2            > $100,000,000 and ≤ $150,000,000          3.25%              2.25%         3                     > $150,000,000                    3.75%              2.75%         “Approved Fund” means any Fund (other than a Disqualified Institution) that is administered or managed by  (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a  Lender.          “Arranger” means BofA Securities, Inc., in its capacity as sole lead arranger and sole bookrunner.          “Asset Disposition” means any sale, lease, transfer or other disposition (or series of related sales, leases,  transfers or dispositions) by the Borrower or any Restricted Subsidiary, including any such transaction by means of a  merger, consolidation or similar transaction and including an issuance of Capital Stock by a Restricted Subsidiary  (each referred to for the purposes of this definition as a “disposition”), of:          (1)  any shares of Capital Stock of a Restricted Subsidiary (other than directors’ qualifying shares or shares              required by applicable law to be held by a Person other than the Borrower or a Restricted Subsidiary);          (2)  all or substantially all the assets of any division or line of business of the Borrower or any Restricted              Subsidiary; or          (3)  any other assets of the Borrower or any Restricted Subsidiary outside the ordinary course of business              of the Borrower or such Restricted Subsidiary,           other than, in the case of clauses (1), (2) and (3) above,          (A)  a disposition by a Restricted Subsidiary to the Borrower or by the Borrower or a Restricted Subsidiary              to  a  Restricted  Subsidiary;  provided  that  if  the  transferor  of  such  property  is  a  Loan  Party  (i)  the              transferee thereof must be a Loan Party (or must become a Guarantor substantially simultaneously with              such disposition) or (ii) such disposition must be permitted by Section 7.1;          (B)  for purposes of Section 7.5, (x) a disposition that constitutes a Restricted Payment (or would constitute              a Restricted Payment but for the exclusions from the definition thereof and its component definitions)              and that is not prohibited by Section 7.1 and (y) a disposition of all or substantially all the assets of the              Borrower in accordance with Section 7.8;                                                   3 

 

       (C)  a disposition of assets with a Fair Market Value of less than $20,000,000;          (D)  a disposition of cash or Temporary Cash Investments pursuant to any transaction permitted under the              Loan Documents;          (E)  the creation of a Lien (but not the sale or other disposition of the property subject to such Lien);          (F)  the sale or discount, in each case without recourse, of accounts receivable arising in the ordinary course              of business, but only in connection with the compromise or collection thereof;          (G)  disposals or replacements of obsolete, worn out, uneconomical or surplus property or equipment;          (H)  whether or not allowable under Section 1031 of the Code, any trade or exchange of assets for Additional              Assets;  provided,  however,  that  (x)  an  amount  equal  to  the  amount  of  Net  Available Cash,  if  any,              received  by  the  Borrower  or  any  Restricted  Subsidiary  from  such  transaction  must  be  applied  in              accordance with Section 2.3(b)(iii) if such transaction otherwise constitutes an “Asset Disposition” but              for this clause (H) and (y) upon consummation of any such exchange by any Loan Party, to the extent              the assets received do not constitute Excluded Assets, the Administrative Agent shall have a perfected              Lien with the same priority as the Lien held on the assets so exchanged;          (I)  the unwinding of any Hedging Obligations;          (J)  any  Sale/Leaseback  Transactions  permitted  by  this  Agreement;  provided,  however,  that  an  amount              equal  to  the  amount  of  Net  Available  Cash,  if  any,  received  by  the  Borrower  or  any  Restricted              Subsidiary  from  such  transaction  must  be  applied  in  accordance  with  Section  2.3(b)(iii)  if  such              transaction otherwise constitutes an “Asset Disposition” but for this clause (J);          (K)  any surrender or waiver of contract rights or the settlement, release or surrender of contract, tort or other              claims of any kind, in each case, in the ordinary course of business;          (L)  the  Licensing  or  sublicensing  of  Intellectual  Property  or  other  general  intangibles  and  Licenses,              sublicenses, leases or subleases of other property, in each case, in the ordinary course of business which              do not materially interfere with the business of the Borrower and its Restricted Subsidiaries;          (M)  the sale or discount (with or without recourse, and on customary or commercially reasonable terms and              for credit management purposes) of accounts receivable that arose in the ordinary course of business              for collection;          (N)  a disposition of property pursuant to foreclosure, condemnation or eminent domain (or deed in lieu              thereof) or any similar action; provided, however, that an amount equal to the amount of Net Available              Cash from such transaction must be applied in accordance with Section 2.3(b)(iii) if such transaction              otherwise constitutes an “Asset Disposition” but for this clause (N);          (O)  any disposition of Capital Stock in, or Indebtedness or other securities of, an Unrestricted Subsidiary;              and          (Q)  any  Royalty  Interest  created,  issued  or  assumed  in  connection  with  the  acquisition  of  properties              containing aggregate reserves that are subject thereto (or created, issued or assumed within 90 days              after such acquisition), if the owner or purchaser of such Royalty Interest has recourse solely to such              properties and the proceeds thereof, subject to the obligation of the grantor or transferor of such Royalty              Interest to operate and maintain the related properties in a prudent manner or other customary standard,              to deliver the associated production (if required), and to indemnify with respect to customary matters.          Any disposition of Capital Stock of any Loan Party from the Borrower or any Restricted Subsidiary to the  Borrower or any other Restricted Subsidiary otherwise permitted by the definition hereof that results in any Guarantor                                                    4 

 

becoming a non-Guarantor shall be treated as an Investment in a non-Guarantor for purposes of (and subject to) the  definition of “Permitted Investment” and Section 7.1 in an amount equal to the Fair Market Value of such Guarantor  prior to giving effect to such disposition.          “Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible  Assignee  (with  the  consent  of  any  party  whose  consent  is  required  by  Section  11.6(b)),  and  accepted  by  the  Administrative Agent, in substantially the form of Exhibit B or any other form (including electronic documentation  generated by use of an electronic platform) approved by the Administrative Agent.          “Attorney Costs” means and includes all reasonable and documented fees, expenses and disbursements of  any law firm or other external counsel engaged by the Administrative Agent (limited to one primary counsel and not  more  than  one  local  counsel  for  each  relevant  jurisdiction  (including  relevant  foreign  jurisdictions)  or  otherwise  retained with the Borrower’s consent (such consent not to be unreasonably withheld or delayed)).          “Attributable Debt” in respect of a Sale/Leaseback Transaction means, as at the time of determination, the  present value (discounted at the rate set forth or implicit in the terms of the lease included in the Sale/Leaseback  Transaction) of the total obligations of the lessee for rental payments during the remaining term of the lease included  in  such  Sale/  Leaseback  Transaction  (including  any  period  for  which  such  lease  has  been  extended);  provided,  however, that if such Sale/Leaseback Transaction results in a Capital Lease Obligation, the amount of Indebtedness  represented thereby will be determined in accordance with the definition of “Capital Lease Obligation.”          “Auction” has the meaning specified in Section 11.6(f).          “Auction Manager” means (a) either the Administrative Agent or any of its Affiliates or (b) any other  financial institution or advisor agreed by the Borrower and the Administrative Agent (whether or not an affiliate of  the Administrative Agent) to act as an arranger in connection with any repurchases pursuant to Section 11.6(f).          “Auction Procedures” has the meaning specified in Exhibit L.          “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., a national banking association, or any successor entity  thereto.          “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy.”          “Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds  Rate plus 1/2 of 1% (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of  America as its “prime rate”, and (c) the Eurodollar Rate plus 1.00%.  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 3.3 hereof, then the Base Rate shall be the greater of clauses (a) and (b) above and  shall be determined without reference to clause (c) above.  Notwithstanding the foregoing, if the Base Rate shall be  less than 1.75%, such rate shall be deemed 1.75% for purposes of this Agreement.                                                    5 

 

       “Base Rate Term Loan” means any Term Loan during any period for which it bears interest based on the  Base Rate.          “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.          “Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I  of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include  (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code)  the assets of any such “employee benefit plan” or “plan”.          “Borrower” has the meaning specified in the introductory paragraph to this Agreement.          “Borrower Materials” has the meaning specified in Section 6.2.          “Borrowing” means a borrowing hereunder consisting of Term Loans of one Type made on the same day by  Lenders to the Borrower and, in the case of Eurodollar Rate Term Loans, having the same Interest Period.          “Borrowing Base” means, on any date of determination, an amount equal to the sum, without duplication, of:          (a)     90% of the face amount of accounts receivable of the Borrower and its Restricted Subsidiaries, plus          (b)     70% of the book value of inventory of the Borrower and its Restricted Subsidiaries, plus          (c)     the sum of (w) 85% of the net orderly liquidation value of trucks of the Borrower and its Restricted  Subsidiaries as of the latest date on which the administrative agent under any Credit Facility has received an appraisal  calculating the net orderly liquidation value of such trucks (the “Truck Appraisal Date”), plus (x) 80% of the cost of  trucks of the Borrower and its Restricted Subsidiaries acquired since the Truck Appraisal Date, minus (y) 85% of the  net orderly liquidation value of trucks of the Borrower and its Restricted Subsidiaries that have been sold since the  Truck  Appraisal  Date,  minus  (z)  85%  of  the  depreciation  amount  applicable  to  trucks  of  the  Borrower  and  its  Restricted Subsidiaries, provided that the trucks included in any calculation under this clause (c) shall include only  those trucks that are eligible to be included in a borrowing base calculation under a Credit Facility, plus           (d)     the sum of (x) 85% of the net orderly liquidation value of bulldozers, trailers, haul trucks, loaders,  excavators, earth moving equipment and related wheeled and/or tracked equipment (other than trucks included under  clause (c) above) of the Borrower and its Restricted Subsidiaries (collectively, the “Machinery”) as of the latest date  on which the administrative agent under any Credit Facility has received an appraisal calculating the net orderly  liquidation value of the Machinery (the “Machinery Appraisal Date”), minus (y) 85% of the net orderly liquidation  value of the Machinery that has been sold since the Machinery Appraisal Date, minus (z) 85% of the depreciation  amount applicable to the Machinery of the Borrower and its Restricted Subsidiaries, provided that the Machinery  included in any calculation under this clause (d) shall include only the Machinery that is eligible to be included in a  borrowing base calculation under a Credit Facility, plus           (e)     90% of the book value of aggregates reserves of the Borrower and its Restricted Subsidiaries,          in each case of clauses (a) through (e) above, determined using the most recent information available as of  the last day of the most recent Fiscal Quarter of the Borrower for which financial statements have been delivered  hereunder.          “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 state where the Administrative Agent’s Office is  located and, if such day relates to any Eurodollar Rate Term Loan, means any such day that is also a London  Banking Day.                                                    6 

 

       “Capital Expenditures” means, with respect to any Person for any period, any expenditure in respect of the  purchase or other acquisition of any fixed or capital asset (excluding normal replacements and maintenance which are  properly charged to current operations).            “Capital Lease Obligation” means an obligation that is required to be classified and accounted for as a finance  lease for financial reporting purposes in accordance with GAAP, and the amount of Indebtedness represented by such  obligation shall be the capitalized amount of such obligation determined in accordance with GAAP; and the Stated  Maturity thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the  first date upon which such lease may be terminated by the lessee without payment of a penalty. For purposes of Section  7.3, a Capital Lease Obligation will be deemed to be secured by a Lien on the property being leased.          “Capital Stock” of any Person means any and all shares, interests (including partnership interests), rights to  purchase, warrants, options, participations or other equivalents of or interests in (however designated) equity of such  Person, including any Preferred Stock, but excluding any debt securities convertible into such equity.          “Cash Management Arrangement” means any agreement or other arrangement entered into in the ordinary  course of business governing the provision of treasury or cash management services, including deposit accounts,  overdraft,  funds  transfer,  automated  clearinghouse,  zero  balance  accounts,  cash  pooling  (including  notional  cash  pooling), returned check, concentration, controlled disbursement, lockbox, account reconciliation and reporting, trade  finance services, commercial credit cards, merchant card services, purchase or debit cards (including non-card e- payables services), and any other deposit or operating account relationships or other treasury, cash management or  similar services, and in each case including any associated lines or extensions of credit and related collateral and  security arrangements.          “CFC” means (a) any Person that is a “controlled foreign corporation” (within the meaning of Section 957),  but only if a “United States person” (within the meaning of Section 7701(a)(30)) that is an Affiliate of the Borrower  or any Guarantor is, with respect to such person, a “United States shareholder” (within the meaning of Section 951(b))  described in Section 951(a)(1); and (b) each Subsidiary of any Person described in clause (a).  For purposes of this  definition, all Section references are references to the applicable Section of the Code.          “CFC Holdco” means any Domestic Subsidiary with no material assets other than Capital Stock of one or  more Foreign Subsidiaries of the Borrower that are CFCs.          “Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the  adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or  in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the  making  or  issuance  of  any  request,  rule,  guideline  or  directive  (whether  or  not  having  the  force  of  law)  by  any  Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall  Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in  connection therewith or in the implementation thereof 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 or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case  be deemed to be a “Change in Law”, regardless of the date enacted, adopted, issued or implemented.          “Change of Control” means the occurrence of any of the following events:                  (1)    any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or         becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that         for purposes of this clause (1) such person shall be deemed to have “beneficial ownership” of all shares that         any such person has the right to acquire, whether such right is exercisable immediately or only after the         passage of time), directly or indirectly, of more than 50% of the total voting power of the Voting Stock of         the Borrower (for the purposes of this clause (1), such person shall be deemed to beneficially own any         Voting Stock of the Borrower held by any other person (the “parent entity”), if such person is the beneficial         owner (as defined above in this clause (1)), directly or indirectly, of more than 50% of the voting power of         the Voting Stock of such parent entity);                                                    7 

 

               (2)    the adoption of a plan relating to the liquidation or dissolution of the Borrower; or                  (3)    the merger or consolidation of the Borrower with or into another Person or the merger of         another Person with or into the Borrower, or the sale of all or substantially all of the assets of the Borrower         (determined on a consolidated basis) to another Person other than a transaction following which (A) in the         case of a merger or consolidation transaction, holders of securities that represented 100% of the Voting         Stock of the Borrower immediately prior to such transaction own directly or indirectly at least a majority of         the voting power of the Voting Stock of the surviving Person in such merger or consolidation transaction         immediately after such transaction and (B) in the case of a sale of assets transaction, each transferee         becomes an obligor in respect of the Obligations and a Subsidiary of the transferor of such assets.          “Class”  (a) when  used  with  respect  to  Lenders,  refers  to  whether  such  Lenders  have  Term  Loans  or  Commitments  with  respect  to  a  particular  Class  of  Term  Loans  or  Commitments,  (b) when  used  with  respect  to  Commitments,  refers  to  whether  such  Commitments  are  Initial  Term  Loan  Commitments,  Incremental  Term  Commitments or Refinancing Term Commitments, in each case, not designated part of another existing Class and  (c) when used with respect to Term Loans, refers to whether such Term Loans are Initial Term Loans, Incremental  Term Loans, Extended Term Loans or Refinancing Term Loans, in each case not designated part of another existing  Class.  Commitments (and, in each case, the Term Loans made pursuant to such Commitments) that have different  terms and conditions shall be construed to be in different Classes.  Commitments (and, in each case, the Term Loans  made pursuant to such Commitments) that have the same terms and conditions shall be construed to be in the same  Class.          “Closing Date” means with respect to (a) the Initial Term Loans, the later of the Agreement Date and the first  date on which all of the applicable conditions set forth in Section 4.1 have been fulfilled (or waived in accordance  with  Section  11.1)  and  (b) any  Incremental  Term  Loans,  Extended  Term  Loans  or  Refinancing  Term  Loans,  the  Incremental Tranche Closing Date, Extension Date or Refinancing Closing Date, as applicable.          “Code” means the Internal Revenue Code of 1986, as amended.          “Collateral” means all of the Borrower’s and Guarantors’ “Collateral” and “Mortgaged Property” or “Trust  Property” or other similar term referred to in the Collateral Documents and all of the other property that is or is  purported under the terms of the Collateral Documents to be subject to the Liens in favor of the Administrative Agent  for the benefit of the Secured Parties.          “Collateral  Documents”  means,  collectively,  the  Security  Agreement,  the  Intellectual  Property  Security  Agreement, the Mortgages, each of the collateral assignments, Security Agreement Supplements, security agreements,  pledge  agreements  or  other  similar  agreements  required  to  be  delivered  to  the  Administrative  Agent  pursuant  to  Section 6.12 or 6.13, and each of the other agreements, instruments or documents that creates or purports to create a  Lien in favor of the Administrative Agent for the benefit of the Secured Parties.          “Commitment”  means  the  Initial  Term  Loan  Commitment,  the  Incremental  Term  Commitment  or  the  Refinancing  Term  Commitment  of  a  Lender,  as  the  context  may  require,  and  “Commitments”  means  such  commitments of all Lenders.          “Committed Loan Notice” means a notice of (a) a Term Borrowing, (b) a conversion of Term Loans from  one Type to the other, or (c) a continuation of Eurodollar Rate Term Loans, pursuant to Section 2.2(a), which shall  be substantially in the form of Exhibit C or such other form as may be approved by the Administrative Agent,  including any form on an electronic platform or electronic transmission system as shall be approved by the  Administrative Agent, appropriately completed and signed by a Responsible Officer of the Borrower.          “Commodity Agreement” means any commodity swap or any other similar agreement for the purposes of  protecting against or managing exposure to fluctuations in commodity prices.          “Compliance Certificate” means a certificate substantially in the form of Exhibit I.                                                    8 

 

       “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 Coverage Ratio” as of any date of determination means the ratio of (x) the aggregate amount  of EBITDA for the period of the most recent four (4) consecutive Fiscal Quarters for which financial statements of  the  Borrower  have  been  delivered  hereunder  to  (y)  Consolidated  Interest  Expense  for  such  four  Fiscal  Quarters;  provided, however, that:          (1)  if the Borrower or any Restricted Subsidiary has Incurred any Indebtedness since the beginning of such              period that remains outstanding or if the transaction giving rise to the need to calculate the Consolidated              Coverage Ratio is an Incurrence of Indebtedness, or both, then EBITDA and Consolidated Interest              Expense for such period shall be calculated after giving effect on a pro forma basis to such Indebtedness              as if such Indebtedness had been Incurred on the first day of such period;          (2)  if the Borrower or any Restricted Subsidiary has repaid, repurchased, defeased or otherwise discharged              any Indebtedness (each, a “Discharge”) since the beginning of such period or if the transaction giving              rise to the need to calculate the Consolidated Coverage Ratio involves a Discharge of Indebtedness (in              each case other than Indebtedness Incurred under any revolving credit facility unless such Indebtedness              has been or is to be permanently repaid and the related commitment terminated and not replaced) and              (x) such Indebtedness is to be Discharged on the date of such transaction or (y) an irrevocable notice of              Discharge has been given on or prior to the date of such transaction (including a conditional notice that              has become irrevocable as a result of the satisfaction or waiver of the conditions therein), then EBITDA              and Consolidated Interest Expense for such period shall be calculated on a pro forma basis as if such              Discharge  had  occurred  on  the  first  day  of  such  period  and  as  if  the  Borrower  or  such  Restricted              Subsidiary had not earned the interest income actually earned during such period in respect of cash or              Temporary Cash Investments used to Discharge such Indebtedness;          (3)  if, since the beginning of such period, the Borrower or any Restricted Subsidiary shall have made any              Asset Disposition, then EBITDA for such period shall be reduced by an amount equal to the EBITDA              (if positive) directly attributable to the assets that were the subject of such Asset Disposition for such              period, or increased by an amount equal to the EBITDA (if negative) directly attributable thereto for              such period and Consolidated Interest Expense for such period shall be reduced by an amount equal to              the Consolidated Interest Expense directly attributable to any Indebtedness of the Borrower or any              Restricted  Subsidiary  Discharged  with  respect  to  the  Borrower  and  its  continuing  Restricted              Subsidiaries in connection with such Asset Disposition for such period (or, if the Capital Stock of any              Restricted Subsidiary is sold, the Consolidated Interest Expense for such period directly attributable to              the Indebtedness of such Restricted Subsidiary to the extent the Borrower and its continuing Restricted              Subsidiaries are no longer liable for such Indebtedness after such sale);          (4)  if,  since  the  beginning  of  such  period,  the  Borrower  or  any  Restricted  Subsidiary  (by  merger  or              otherwise) shall have made an Investment in any Restricted Subsidiary (or any Person which becomes              a Restricted Subsidiary) or an acquisition of assets, including any acquisition of assets occurring in              connection with a transaction requiring a calculation to be made hereunder, which constitutes all or              substantially all of an operating unit of a business, then EBITDA and Consolidated Interest Expense              for such period shall be calculated after giving pro forma effect thereto (including the Incurrence of              any Indebtedness) as if such Investment or acquisition had occurred on the first day of such period; and          (5)  if, since the beginning of such period, any Person (that subsequently became a Restricted Subsidiary or              was merged with or into the Borrower or any Restricted Subsidiary since the beginning of such period)              shall have made any Asset Disposition, any Investment or acquisition of assets that would have required              an adjustment pursuant to clause (3) or (4) above if made by the Borrower or a Restricted Subsidiary              during such period, then EBITDA and Consolidated Interest Expense for such period shall be calculated              after  giving pro forma  effect  thereto  as  if  such  Asset  Disposition,  Investment  or  acquisition  had              occurred on the first day of such period.                                                    9 

 

       For purposes of this definition, whenever pro forma effect is to be given to an acquisition of assets, the  amount of income or earnings relating thereto and the amount of Consolidated Interest Expense associated with any  Indebtedness Incurred in connection therewith, the pro forma calculations shall be determined in good faith by a  responsible financial or accounting Responsible Officer of the 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 date of determination had been the applicable rate for the entire period (taking into account any Interest Rate  Agreement applicable to such Indebtedness, but if the remaining term of such Interest Rate Agreement is less than 12  months, then such Interest Rate Agreement shall only be taken into account for that portion of the period equal to the  remaining term thereof). If any Indebtedness that is being given pro forma effect bears an interest rate at the option of  the Borrower, the interest rate shall be calculated by applying such optional rate chosen by the Borrower. 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 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 the Borrower may designate. If any Indebtedness is Incurred under  a revolving credit facility and is being given pro forma effect, the interest on such Indebtedness shall be calculated  based  on  the  average  daily  balance  of  such  Indebtedness  for  the  four  Fiscal  Quarters  subject  to  the pro  forma calculation to the extent that such Indebtedness was Incurred solely for working capital purposes.          “Consolidated Current Assets” as of the date of determination means the aggregate amount of assets of the  Borrower and its consolidated Restricted Subsidiaries, which may properly be classified as current assets (excluding  cash and Temporary Cash Investments and the current portion of current and deferred income taxes), on a consolidated  basis.          “Consolidated Current Liabilities” as of the date of determination means the aggregate amount of liabilities  of the Borrower and its consolidated Restricted Subsidiaries which may properly be classified as current liabilities  (including taxes accrued as estimated), on a consolidated basis, after eliminating:          (1)  all intercompany items between the Borrower and any Restricted Subsidiary;          (2)  all current maturities of Indebtedness, as determined in accordance with GAAP consistently applied;              and          (3)  any liabilities resulting from mark to market requirement of any derivative security.          “Consolidated Interest Expense” means, for any period, the total interest expense (less interest income) of  the Borrower and its consolidated Restricted Subsidiaries, plus, to the extent not included in such total interest expense,  and to the extent Incurred by the Borrower or its Restricted Subsidiaries, without duplication:          (1)  interest expense attributable to Capital Lease Obligations, the interest portion of rent expense associated              with Attributable Debt in respect of the relevant lease giving rise thereto, determined as if such lease              were a capitalized lease in accordance with GAAP, and the interest component of any deferred payment              obligations;          (2)  amortization of debt discount (including the amortization of original issue discount resulting from the              issuance  of  Indebtedness  at  less  than  par)  and  debt  issuance  cost;  provided,  however,  that  any              amortization  of  bond  premium  will  be  credited  to  reduce  Consolidated  Interest  Expense  unless,              pursuant to GAAP, such amortization of bond premium has otherwise reduced Consolidated Interest              Expense;          (3)  capitalized interest;          (4)  non-cash interest expense; provided, however, that any non-cash interest expense or income attributable              to the movement in the mark to market valuation of Hedging Obligations or other derivative instruments              pursuant to GAAP shall be excluded from the calculation of Consolidated Interest Expense;                                                   10 

 

       (5)  commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’              acceptance financing;          (6)  net payments pursuant to Hedging Obligations;          (7)  the product of (a) all dividends accrued in respect of all Disqualified Stock of the Borrower and all              Preferred Stock of any Restricted Subsidiary, in each case, held by Persons other than the Borrower or              a Restricted Subsidiary (other than dividends payable solely in Capital Stock (other than Disqualified              Stock) of the Borrower), times (b) a fraction, the numerator of which is one and the denominator of              which is one minus the effective combined tax rate of the issuer of such Disqualified Stock or Preferred              Stock  (expressed  as  a  decimal)  for  such  period  (as  estimated  by  the  chief  financial  officer  of  the              Borrower in good faith);          (8)  interest Incurred in connection with Investments in discontinued operations;          (9)  interest accruing on any Indebtedness of any other Person to the extent such Indebtedness is Guaranteed              by (or secured by a Lien on the assets of) the Borrower or any Restricted Subsidiary; and          (10)  the  cash  contributions  to  any  employee  stock  ownership  plan  or  similar  trust  to  the  extent  such              contributions  are  used  by  such  plan  or  trust  to  pay  interest  or  fees  to  any  Person  (other  than  the              Borrower) in connection with Indebtedness Incurred by such plan or trust.          “Consolidated  Net  Income” means,  for  any period,  the  net  income  of  the  Borrower  and  its  consolidated  Subsidiaries; provided, however, that there shall not be included in such Consolidated Net Income:          (1)  any net income of any Person (other than the Borrower) if such Person is not a Restricted Subsidiary,              except that:                  (A)  subject to the exclusion contained in clause (4) below, the Borrower’s equity in the net income                     of any such Person for such period shall be included in such Consolidated Net Income up to                     the aggregate amount of cash actually distributed by such Person during such period to the                     Borrower or a Restricted Subsidiary as a dividend or other distribution (subject, in the case of                     a dividend or other distribution paid to a Restricted Subsidiary, to the limitations contained in                     clause (3) below); and                  (B)  the Borrower’s equity in a net loss of any such Person for such period shall be included in                     determining such Consolidated Net Income;          (2)  any net income (or loss) of any Person acquired by the Borrower or a Subsidiary in a pooling of interests              transaction (or any transaction accounted for in a manner similar to a pooling of interests) for any period              prior to the date of such acquisition;          (3)  any net income of any Restricted Subsidiary if such Restricted Subsidiary is subject to restrictions,              directly or indirectly, on the payment of dividends or the making of distributions by such Restricted              Subsidiary, directly or indirectly, to the Borrower, except that:                  (A)  subject to the exclusion contained in clause (4) below, the Borrower’s equity in the net income                     of any such Restricted Subsidiary for such period shall be included in such Consolidated Net                     Income up to the aggregate amount of cash actually distributed by such Restricted Subsidiary                     during such period to the Borrower or another Restricted Subsidiary as a dividend or other                     distribution (subject, in the case of a dividend or other distribution paid to another Restricted                     Subsidiary, to the limitation contained in this clause); and                  (B)  the Borrower’s equity in a net loss of any such Restricted Subsidiary for such period shall be                     included in determining such Consolidated Net Income;                                                   11 

 

       (4)  any net after-tax gain (or loss) realized upon the sale or other disposition of any assets of the Borrower,              its  consolidated  Subsidiaries  or  any  other  Person  (including  pursuant  to  any  sale-and-leaseback              arrangement) which are not sold or otherwise disposed of in the ordinary course of business and any              net after-tax gain (or loss) realized upon the sale or other disposition of any Capital Stock of any Person;          (5)  net after-tax extraordinary gains or losses and net after-tax nonrecurring or unusual noncash gains or              charges;          (6)  the cumulative effect of a change in accounting principles;          (7)  any net after-tax gain (or loss) attributable to the early retirement or conversion of Indebtedness;          (8)  any unrealized non-cash gains or losses or charges in respect of Hedging Obligations (including those              resulting from the application of ASC 815);          (9)  any non-cash charges or other noncash expenses or charges arising from any grant of or issuance or              repricing of Capital Stock or other equity-based awards or any amendment or substitution of any such              Capital Stock or other equity-based awards;          (10)  any net after-tax gains or losses (less all fees and expenses or charges relating thereto) attributable to              the extinguishment of Indebtedness, Hedging Obligations or other derivative instruments entered in              relation to the Indebtedness extinguished;          (11)  any gain or loss resulting from (A) any mark-to-market requirement with respect to any derivative              security, including warrants or (B) any non-cash change in value of contingent consideration associated              with any Post-Closing Payment or similar payment obligation;          (12)  any net after-tax gain or loss from disposed or discontinued operations or disposal of discontinued              operations;          (13)  gains and losses due solely to fluctuations in currency values and the related tax effects according to              GAAP;          (14)  any expenses or reserves for liabilities to the extent that the Borrower or any Restricted Subsidiary is              entitled to indemnification therefor under binding agreements; provided that any liabilities for which              the Borrower or such Restricted Subsidiary is not actually indemnified shall reduce Consolidated Net              Income in the period in which it is determined that the Borrower or such Restricted Subsidiary will not              be indemnified;          (15)  any restoration to income of any contingency reserve, except to the extent that provisions for such              reserve was made out of Consolidated Net Income accrued at any time following the Start Date; and          (16)  any charges or credits relating to the adoption of fresh start accounting principles;          in each case, for such period. Notwithstanding the foregoing, for the purposes of the covenant described  under  Section  7.1  only,  there  shall  be  excluded  from  Consolidated  Net  Income  any  repurchases,  repayments  or  redemptions of Investments, proceeds realized on the sale of Investments or return of capital to the Borrower or a  Restricted  Subsidiary  to  the  extent  such  repurchases,  repayments,  redemptions,  proceeds  or  returns  increase  the  amount of Restricted Payments permitted under Section 7.1(a)(iii)(D).          “Consolidated Net Tangible Assets” as of any date of determination, means the total amount of assets (less  accumulated depreciation, depletion and amortization, allowances for doubtful receivables, other applicable reserves  and other properly deductible items) as shown on the most recent consolidated balance sheet of the Borrower and its  Restricted  Subsidiaries,  determined  on  a  consolidated basis  in  accordance  with  GAAP,  and  after  giving  effect  to                                                   12 

 

purchase  accounting  and  after  deducting  therefrom  Consolidated  Current  Liabilities  and,  to  the  extent  otherwise  included, the amounts of:          (1)  minority interests in consolidated Subsidiaries held by Persons other than the Borrower or a Restricted              Subsidiary;          (2)  excess of cost over fair value of assets of businesses acquired, as determined in good faith by the Board              of Directors of the Borrower;          (3)  any revaluation or other write-up in book value of assets subsequent to the Agreement Date as a result              of a change in the method of valuation in accordance with GAAP consistently applied;          (4)  unamortized debt discount and expenses and other unamortized deferred charges, goodwill, patents,              trademarks, service marks, trade names, copyrights, licenses, organization or developmental expenses              and other intangible items;          (5)  treasury stock;          (6)  cash set apart and held in a sinking or other analogous fund established for the purpose of redemption              or other retirement of Capital Stock to the extent such obligation is not reflected in Consolidated Current              Liabilities; and          (7)  Investments in and assets of Unrestricted Subsidiaries.          “Consolidated Secured Leverage Ratio” as of any date of determination means the ratio of (x) the aggregate  amount of Indebtedness of the Borrower and its Restricted Subsidiaries that is secured by Liens on property of the  Borrower and its Restricted Subsidiaries as of such date of determination (minus the aggregate amount of unrestricted  cash and Temporary Cash Investments of the Borrower and its Restricted Subsidiaries included in the consolidated  balance sheet of the Borrower as of the end of the most recent fiscal period for which financial statements of the  Borrower have been delivered hereunder) to (y) the aggregate amount of EBITDA for the period of the most recent  four  consecutive  Fiscal  Quarters  for  which  financial  statements  of  the  Borrower  have  been  delivered  hereunder;  provided, however, that:          (1)  if the Borrower or any Restricted Subsidiary has Incurred any Indebtedness since the beginning of such              period that remains outstanding or if the transaction giving rise to the need to calculate the Consolidated              Secured Leverage Ratio is an Incurrence of Indebtedness, or both, then EBITDA for such period and              the amount of secured Indebtedness, cash and Temporary Cash Investments shall be calculated after              giving effect on a pro forma basis to such Indebtedness as if such Indebtedness had been Incurred on              the first day of such period;          (2)  if the Borrower or any Restricted Subsidiary has Discharged any Indebtedness since the beginning of              such period or if the transaction giving rise to the need to calculate the Consolidated Secured Leverage              Ratio involves a Discharge of Indebtedness (in each case other than Indebtedness Incurred under any              revolving credit facility unless such Indebtedness has been or is to be permanently repaid and the related              commitment terminated and not replaced) and (x) such Indebtedness is to be Discharged on the date of              such transaction or (y) an irrevocable notice of Discharge has been given on or prior to the date of such              transaction (including a conditional notice that has become irrevocable as a result of the satisfaction or              waiver  of  the  conditions  therein),  then  EBITDA  for  such  period  and  the  amount  of  secured              Indebtedness, cash and Temporary Cash Investments shall be calculated on a pro forma basis as if such              Discharge  had  occurred  on  the  first  day  of  such  period  and  as  if  the  Borrower  or  such  Restricted              Subsidiary had not earned the interest income actually earned during such period in respect of cash or              Temporary Cash Investments used to Discharge such Indebtedness;          (3)  if, since the beginning of such period, the Borrower or any Restricted Subsidiary shall have made any              Asset Disposition, then EBITDA for such period shall be reduced by an amount equal to the EBITDA                                                   13 

 

            (if positive) directly attributable to the assets that were the subject of such Asset Disposition for such              period, or increased by an amount equal to the EBITDA (if negative) directly attributable thereto for              such period;          (4)  if,  since  the  beginning  of  such  period,  the  Borrower  or  any  Restricted  Subsidiary  (by  merger  or              otherwise) shall have made an Investment in any Restricted Subsidiary (or any Person which becomes              a Restricted Subsidiary) or an acquisition of assets, including any acquisition of assets occurring in              connection with a transaction requiring a calculation to be made hereunder, which constitutes all or              substantially all of an operating unit of a business, then EBITDA for such period shall be calculated              after  giving pro  forma  effect  thereto  (including  the  Incurrence  of  any  Indebtedness)  as  if  such              Investment or acquisition had occurred on the first day of such period; and          (5)  if, since the beginning of such period, any Person (that subsequently became a Restricted Subsidiary or              was merged with or into the Borrower or any Restricted Subsidiary since the beginning of such period)              shall have made any Asset Disposition, any Investment or acquisition of assets that would have required              an adjustment pursuant to clause (3) or (4) above if made by the Borrower or a Restricted Subsidiary              during such period, then EBITDA for such period shall be calculated after giving pro forma effect              thereto as if such Asset Disposition, Investment or acquisition had occurred on the first day of such              period.          For purposes of this definition, whenever pro forma effect is to be given to an acquisition of assets, the  amount of income or earnings relating thereto and the amount of Consolidated Interest Expense associated with any  Indebtedness Incurred in connection therewith, the pro forma calculations shall be determined in good faith by a  responsible financial or accounting Responsible Officer of the 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 date of determination had been the applicable rate for the entire period (taking into account any Interest Rate  Agreement applicable to such Indebtedness, but if the remaining term of such Interest Rate Agreement is less than 12  months, then such Interest Rate Agreement shall only be taken into account for that portion of the period equal to the  remaining term thereof). If any Indebtedness that is being given pro forma effect bears an interest rate at the option of  the Borrower, the interest rate shall be calculated by applying such optional rate chosen by the Borrower. 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 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 the Borrower may designate. If any Indebtedness is Incurred under  a revolving credit facility and is being given pro forma effect, the interest on such Indebtedness shall be calculated  based  on  the  average  daily  balance  of  such  Indebtedness  for  the  four  Fiscal  Quarters  subject  to  the pro  forma calculation to the extent that such Indebtedness was Incurred solely for working capital purposes.          “Contributing Guarantors” has the meaning specified in Section 10.2.          “Coram  Quarry  Property”  shall  mean  that  certain  real  property  and  related  interests,  together  with  any  improvements located thereon, having an address of 416 Miller Pace - Yaphank Rd, Miller Place, NY 11764, and  commonly known as the “Coram Quarry.” For purposes of clauses (8), (23) and (30) of the definition of the term  “Permitted Liens,” the Coram Quarry Property shall be deemed to constitute a single parcel of real property with a  Fair Market Value in excess of $250,000.          “Coverage Indebtedness” has the meaning specified in Section 7.2(a).          “Covered Entity” has the meaning specified in Section 11.21.          “Credit Agreement Refinanced Debt” shall have the meaning provided in the definition of “Credit Agreement  Refinancing Indebtedness”.          “Credit Agreement Refinancing Indebtedness” means Indebtedness in the form of Permitted First Priority  Refinancing Debt, Permitted Junior Priority Refinancing Debt, or Permitted Unsecured Refinancing Debt, in each  case issued, Incurred or otherwise obtained by the Borrower (including by means of the extension or renewal of                                                   14 

 

existing Indebtedness) in exchange for, or to replace or refinance, in whole or part, existing Term Loans (together, the  “Credit Agreement Refinanced Debt”); provided that such exchanging, extending, renewing, replacing or refinancing  Indebtedness:          (a)   is in an original aggregate principal amount (or accreted value, if applicable) that does not exceed the              aggregate principal amount (or accreted value, if applicable) of the Credit Agreement Refinanced              Debt (plus the amount of unpaid accrued or capitalized interest and premiums thereon (including              make-whole premiums, prepayment premiums, tender premiums and amounts required to be paid in              connection with defeasance and satisfaction and discharge), underwriting discounts, original issue              discount, defeasance costs, fees (including upfront fees), commissions, costs and expenses);          (b)   does not (x) mature earlier than or (y) have a Weighted Average Life to Maturity shorter than the              applicable Credit Agreement Refinanced Debt (except by virtue of amortization or prepayment of the              Credit Agreement Refinanced Debt prior to the time of such Incurrence) or, in the case of any such              Credit Agreement Refinancing Indebtedness in the form of notes, does not have any mandatory              prepayment provisions (other than, in each case, customary offers or obligations to repurchase upon a              change of control, asset sale, or casualty or condemnation event, AHYDO payments and customary              acceleration rights after an event of default) that could result in prepayments of such notes prior to the              applicable maturity date of the Credit Agreement Refinanced Debt;          (c)   shall not be subject to any Guarantee by any Person other than a Loan Party and shall not include any              borrower or issuer other than the Borrower;          (d)   if such Credit Agreement Refinanced Debt is secured (i) such Credit Agreement Refinancing              Indebtedness shall either be (x) unsecured or (y) secured, and if secured, the Liens securing the Credit              Agreement Refinancing Indebtedness shall either be equal in priority with, or junior to, the Liens              securing the Credit Agreement Refinanced Debt (and the holders of such Credit Agreement              Refinancing Indebtedness shall be required to become subject to an Acceptable Intercreditor              Agreement) and (ii) such Credit Agreement Refinancing Indebtedness, if secured, shall not be secured              by any assets other than Collateral (except pursuant to an escrow or similar arrangement with respect              to the proceeds of such Credit Agreement Refinancing Indebtedness) and may not be secured              pursuant to any security documentation that is more restrictive to the Borrower and the Guarantors              than this Agreement and the other Loan Documents;          (e)   otherwise has terms and conditions that shall be reasonably satisfactory to the Borrower and the              lenders providing such Credit Agreement Refinancing Indebtedness; provided that, subject to the              foregoing, the covenants and events of default applicable to the Credit Agreement Refinancing              Indebtedness shall be no more restrictive, taken as a whole (as determined in good faith by the              Borrower), than the covenants and events of default applicable to the applicable Credit Agreement              Refinanced Debt (except for (1) such provisions that are applicable only to periods after the Maturity              Date (as of the date of the closing of the applicable Credit Agreement Refinancing Indebtedness) or              that are also added for the benefit of the Term Loans existing on such closing date and (2) pricing,              fees, rate floors, amortization or maturity); and          (f)   shall, concurrently with the issuance or Incurrence thereof, be applied to repay, repurchase, retire,              defease or satisfy and discharge the applicable Credit Agreement Refinanced Debt and all accrued              interest, fees, premiums (if any) and penalties in connection therewith.           “Credit  Facility”  means  one  or  more  debt  facilities  (including  the  ABL  Agreement),  commercial  paper  facilities,  securities  purchase  agreements,  indentures  or  similar  agreements,  in  each  case,  with  banks  or  other  institutional lenders or investors providing for revolving loans, term loans, receivables financings (including through  sales of receivables to lenders or to special purpose entities formed to borrow from lenders against such receivables),  letters of credit or issuances of securities, including any related notes, guarantees, collateral documents, instruments  and agreements executed in connection therewith, and, in each case, as amended, restated, amended and restated,  increased,  extended,  renewed,  refunded,  restructured,  replaced  (whether  upon  or  after  termination  or  otherwise),  refinanced, supplemented, modified or otherwise changed, in each case, in whole or in part, and without limitation as                                                  15 

 

to amount, terms, conditions, covenants and other provisions, from time to time, with the same or different lenders or  agents.          “Currency  Agreement”  means  any  foreign  exchange  contract,  currency  swap  agreement  or  other  similar  agreement with respect to currency values.          “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation,  conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership,  insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from  time to time in effect.          “Default” means any event or condition that constitutes an Event of Default or that, with the giving of any  notice, the passage of time, or both, would be an Event of Default.          “Default Notice” has the meaning assigned in Section 8.1(e).          “Default Rate” means when used with respect to any Obligations, an interest rate equal to (i) the Base Rate  plus (ii) the Applicable Rate, if any, applicable to Base Rate Term Loans, plus (iii) 2% per annum; provided, however,  that with respect to a Eurodollar Rate Term Loan, the Default Rate shall be an interest rate equal to the interest rate  (including any Applicable Rate) otherwise applicable to such Term Loan plus 2% per annum.          “Defaulting Lender” means, subject to Section 2.15(b), any Lender that (a) has failed to (i) fund all or any  portion of its Term Loans within two (2) Business Days of the date such Term Loans were required to be funded  hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the  result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions  precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied,  or (ii) pay to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within  two (2) Business Days of the date when due, (b) has notified the Borrower or the Administrative Agent in writing that  it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect  (unless such writing or public statement relates to such Lender’s obligation to fund a Term Loan hereunder and states  that such position is based on such Lender’s determination that a condition precedent to funding (which condition  precedent, together with any applicable default, shall be specifically identified in such writing or public statement)  cannot be satisfied), (c) has failed, within three (3) Business Days after written request by the Administrative Agent  or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its  prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant  to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has,  or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief  Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of  creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal  Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity or (iii)  become the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the  ownership or acquisition of any Capital Stock or other equity interest in that Lender or any direct or indirect parent  company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such  Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments  or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate,  disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Administrative  Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above, and of the effective  date of such status, shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a  Defaulting Lender (subject to Section 2.15(b)) as of the date established therefor by the Administrative Agent in a  written notice of such determination, which shall be delivered by the Administrative Agent to the Borrower and each  other Lender promptly following such determination.          “Delayed Draw Availability Period” means the period from and including the Closing Date to and including  the Delayed Draw Funding Deadline.          “Delayed Draw Funding Deadline” means December 15, 2021.                                                  16 

 

       “Designated Jurisdiction” means any country or territory to the extent that such country or territory itself is  the subject of comprehensive Sanctions (currently, Crimea, Cuba, North Korea, Iran and Syria).          “Designated  Non-cash  Consideration”  means  any  non-cash  consideration  received  by  the  Borrower  or  a  Restricted  Subsidiary  in  connection  with  an  Asset  Disposition  that  is  so  designated  as  Designated  Non-cash  Consideration pursuant to an Officers’ Certificate, setting forth the basis of such valuation, less the amount of cash or  Temporary Cash Investments received in connection with a subsequent sale or other disposition of or collection on  such Designated Non-cash Consideration.          “Designation Date” has the meaning specified in Section 2.13(g).          “Discharge” has the meaning specified in the definition of “Consolidated Coverage Ratio”.          “Disqualified Institution” means (i) any competitor of the Borrower or any of its Subsidiaries, identified in  writing by the Borrower to the Administrative Agent from time to time, (ii) such other Persons identified in writing  by the Borrower to the Administrative Agent on or prior to February 23, 2020, and (iii) in the case of any Person under  clauses (i) and (ii), any of its Affiliates (other than any bona fide debt funds) that are either (x) clearly identifiable on  the basis of such Affiliate’s name or (y) identified by name in writing to the Administrative Agent by the Borrower  from time to time.            “Disqualified Stock” means, with respect to any Person, any Capital Stock which by its terms (or by the terms  of any security into which it is convertible or for which it is exchangeable at the option of the holder) or upon the  happening of any event:          (1)  matures or is mandatorily redeemable (other than redeemable only for Capital Stock of such Person              which is not itself Disqualified Stock) pursuant to a sinking fund obligation or otherwise;          (2)  is convertible or exchangeable at the option of the holder for Indebtedness or Disqualified Stock; or          (3)  is mandatorily redeemable or must be purchased upon the occurrence of certain events or otherwise, in              whole or in part;          in each case on or prior to the date that is 91 days after the Maturity Date; provided, however, that any Capital  Stock that would not constitute Disqualified Stock but for provisions thereof giving holders thereof the right to require  such Person to purchase or redeem such Capital Stock upon the occurrence of an “asset sale” or “change of control”  occurring prior to the date that is 91 days after the Maturity Date shall not constitute Disqualified Stock if such Capital  Stock provides that the issuer thereof will not redeem or purchase any such Capital Stock pursuant to such provisions  prior to the Full Payment of the Obligations.           “Dollar” and “$” means dollars in the lawful currency of the United States.  Unless otherwise specified, all  payments under this Agreement shall be made in Dollars.          “Dollar Basket Incremental Debt” has the meaning specified in Section 2.12(b).          “Domestic Subsidiary” means any Subsidiary of the Borrower other than a Foreign Subsidiary.          “EBITDA”  for  any  period  means,  without  duplication,  the  sum  of  Consolidated  Net  Income,  plus  the  following to the extent deducted in calculating such Consolidated Net Income:          (1)  all income tax expense of the Borrower and its consolidated Restricted Subsidiaries; plus          (2)  Consolidated Interest Expense; plus                                                   17 

 

       (3)  depreciation,  depletion  and  amortization  expense  of  the  Borrower  and  its  consolidated  Restricted              Subsidiaries (excluding amortization expense attributable to a prepaid item that was paid in cash in a              prior period); plus           (4)  all other non-cash charges of the Borrower and its consolidated Restricted Subsidiaries (excluding any              such non-cash charge to the extent that it represents an accrual of or reserve for cash expenditures in              any future period); plus           (5)  the amount of any restructuring charges, integration costs or other business optimization expenses or              reserves  deducted  (and  not  added  back)  in  such  period  in  computing  Consolidated  Net  Income,              including any purchase accounting adjustments and other one-time costs incurred in connection with              acquisitions after the Agreement Date, and costs related to the closure and/or consolidation of facilities,              including severance costs; plus           (6)  extraordinary, non-recurring or unusual losses; less the following to the extent included in calculating              such Consolidated Net Income:          (A)     all non-cash items of income of the Borrower and its consolidated Restricted Subsidiaries (other                 than accruals of revenue by the Borrower and its consolidated Restricted Subsidiaries in the ordinary                 course of business); and          (B)     extraordinary, non-recurring or unusual gains;          in each case for such period. Notwithstanding the foregoing, the provision for taxes based on the income or  profits of, and the depreciation, depletion and amortization and non-cash charges of, a Restricted Subsidiary shall be  added to Consolidated Net Income to compute EBITDA only to the extent (and in the same proportion) that the net  income or loss of such Restricted Subsidiary was included in calculating Consolidated Net Income and only if a  corresponding amount would be permitted at the date of determination to be dividended to the Borrower by such  Restricted Subsidiary without prior approval (that has not been obtained), pursuant to the terms of its charter and all  agreements, instruments, judgments, decrees, orders, statutes, rules and governmental regulations applicable to such  Restricted Subsidiary or its stockholders.            “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 any Person that meets the requirements to be an assignee under Section  11.6(b)(iii) and (v) (subject to such consents, if any, as may be required under Section 11.6(b)(iii)). For the  avoidance of doubt, any Disqualified Institution is subject to Section 11.6(g).          “Environment” means ambient air, indoor air, surface water, groundwater, drinking water, soil, surface and  subsurface strata, and natural resources such as wetland, flora and fauna.          “Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws (including  common law), regulations, binding standards, ordinances, rules, judgments, binding interpretations, orders, decrees,  permits, agreements or governmental restrictions relating to pollution or the protection of the Environment or human                                                   18 

 

health (to the extent related to exposure to hazardous materials), including those relating to the manufacture,  generation, handling, transport, storage, treatment, Release or threat of Release of Hazardous Materials, air  emissions and discharges to waste or public systems.          “Environmental Liability” means any liability, contingent or otherwise (including any liability for damages,  costs of environmental remediation, fines, penalties or indemnities) whether based in contract, tort, implied or  express warranty, strict liability, criminal or civil statute or common law, directly or indirectly relating to (a) any  Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any  Hazardous Materials, (c) exposure to any Hazardous Materials, (d) Release or threatened Release of any Hazardous  Materials or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or  imposed with respect to any of the foregoing.          “Environmental Notice” means a written notice from any Governmental Authority or other Person of any  alleged noncompliance with, investigation of an alleged violation of, litigation relating to, or potential fine or liability  in the amount of $100,000 or more under any Environmental Law, or with respect to any Release, environmental  pollution or Hazardous Materials, including any complaint, summons, citation, order, claim, demand or request for  correction, remediation or otherwise.          “ERISA” means the Employee Retirement Income Security Act of 1974.          “ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with  the Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for  purposes of provisions relating to Section 412 of the Code).          “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) the withdrawal of the  Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which  such entity was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or a cessation of operations that  is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower  or any ERISA Affiliate from a Multi-employer Plan; (d) the filing of a notice of intent to terminate, the treatment of  a Pension Plan amendment as a termination under Section 4041 or 4041A of ERISA; (e) the institution by the PBGC  of proceedings to terminate a Pension Plan (other than a Multi-employer Plan); (f) any event or condition which  constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer,  any Pension Plan (other than a Multi-employer Plan); (g) the determination that any Pension Plan or Multi-employer  Plan  is considered an at-risk plan or a plan in endangered or critical status within the meaning of Sections 430, 431  and 432 of the Code or Sections 303, 304 and 305 of ERISA; (h) the imposition of any liability under Title IV of  ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or  any ERISA Affiliate; or (i) a failure by the Borrower or any ERISA Affiliate to meet all applicable requirements under  the Pension Funding Rules in respect of a Pension Plan, whether or not waived, or the failure by the Borrower or any  ERISA Affiliate to make any required contribution to a Multi-employer Plan.          “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market  Association (or any successor person), as in effect from time to time.          “Eurodollar Rate” means:          (a)     for any Interest Period with respect to a Eurodollar Rate Term Loan, the rate per annum equal to  the London Interbank Offered Rate as administered by ICE Benchmark Administration (or any other Person that  takes over the administration of such rate for U.S. Dollars for a period equal in length to such Interest Period)  (“LIBOR”) as published on the applicable Bloomberg screen page (or such other commercially available source  providing such quotations as may be designated by the Administrative Agent from time to time) at approximately  11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period, for Dollar  deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period;                                                   19 

 

       (b)     for any interest calculation with respect to a Base Rate Term Loan on any date, the rate per annum  equal to LIBOR, at or about 11:00 a.m., London time determined two (2) London Banking Days prior to such date  for U.S. Dollar deposits with a term of one month commencing that day; and          (c) if the Eurodollar Rate shall be less than 0.75%, such rate shall be deemed 0.75% for purposes of this  Agreement.          “Eurodollar Rate Term Loan” means a Term Loan that bears interest at a rate based on clause (a) of the  definition of the Eurodollar Rate.          “Event of Default” has the meaning specified in Section 8.1.          “Excess Cash Flow” means, for any Excess Cash Flow Period, the sum (without duplication) of:          (a)  the Consolidated Net Income for such Excess Cash Flow Period; plus          (b)  depreciation, depletion, amortization and other noncash charges or losses deducted in determining              such Consolidated Net Income for such Excess Cash Flow Period; minus          (c)  noncash items of income that represent the reversal of any accrual made in a prior period for              anticipated cash charges and noncash gains, in each case included in determining such Consolidated              Net Income for such Excess Cash Flow Period; plus          (d)  the sum of (i) the amount, if any, by which Net Working Capital decreased during such Excess Cash              Flow Period and (ii) the net amount, if any, by which the consolidated deferred revenues of the              Borrower and its consolidated Restricted Subsidiaries increased during such Excess Cash Flow              Period, provided that, in the case of any Permitted Acquisition or any other acquisition of all or              substantially all the equity interests in, or all or substantially all the assets of (or the assets constituting              a business unit, division, product line or line of business of), any Person permitted hereunder              consummated during such Excess Cash Flow Period or such portion thereof, any such decrease or              increase attributable to the Persons or assets subject thereto shall be determined only from and after              the consummation thereof; minus          (e)  the sum of (i) the amount, if any, by which Net Working Capital increased during such Excess Cash              Flow Period and (ii) the net amount, if any, by which the consolidated deferred revenues of the              Borrower and its consolidated Restricted Subsidiaries decreased during such Excess Cash Flow              Period, provided that, in the case of any Permitted Acquisition or any other acquisition of all or              substantially all the equity interests in, or all or substantially all the assets of (or the assets constituting              a business unit, division, product line or line of business of), any Person permitted hereunder              consummated during such Excess Cash Flow Period or such portion thereof, any such increase or              decrease attributable to the Persons or assets subject thereto shall be determined only from and after              the consummation thereof; minus          (f)  the sum of, in each case except to the extent financed with the proceeds of Long-Term Indebtedness              (other than loans under the ABL Agreement or loans under any other revolving credit facility), (i) the              aggregate amount of Capital Expenditures by the Borrower and its consolidated Restricted              Subsidiaries made in cash during such Excess Cash Flow Period, (ii) the aggregate amount of cash              consideration paid during such Excess Cash Flow Period by the Borrower and its Restricted              Subsidiaries to make Permitted Acquisitions permitted hereunder and (iii) payments in cash made by              the Borrower and its consolidated Restricted Subsidiaries with respect to any noncash charges added              back pursuant to clause (b) above in computing Excess Cash Flow for any prior Excess Cash Flow              Period; minus          (g)  the aggregate principal amount of Long-Term Indebtedness repaid or prepaid by the Borrower and its              Restricted Subsidiaries during such Excess Cash Flow Period, excluding (i) Indebtedness repaid or                                                   20 

 

            prepaid under the ABL Agreement and any other revolving credit facility (except to the extent that              any repayment or prepayment of such Indebtedness is accompanied by a permanent reduction in              related commitments), (ii) Term Loans prepaid pursuant to Section 2.3(b)(iii) or 2.3(b)(iv), (iii) any              amounts constituting a portion of the Optional Prepayment Amount that reduces (or in the preceding              Excess Cash Flow Period, did reduce) the amount payable pursuant to Section 2.3(b)(ii) and (iv)              repayments of Long-Term Indebtedness to the extent financed from the proceeds of any Incurrence or              issuance of Long-Term Indebtedness (other than loans under the ABL Agreement or loans under any              other revolving credit facility).          “Excess Cash Flow Application Date” has the meaning specified in Section 2.3(b)(ii).          “Excess Cash Flow Period” means each Fiscal Year of the Borrower, commencing with the Fiscal Year  ending December 31, 2021.          “Exchange Act” means the Securities Exchange Act of 1934, and regulations promulgated thereunder, as  amended.          “Excluded Assets” has the meaning specified in the Security Agreement.          “Excluded Contribution” means the Net  Cash Proceeds or  Temporary Cash Investments received by the  Borrower from:          (a)     contributions to its common equity capital, and          (b)     the sale (other than to the Borrower or any Subsidiary of the Borrower or to any management equity  plan or stock option plan or any other management or employee benefit plan or agreement of the Borrower or any  Subsidiary of the Borrower) of Qualified Capital Stock of the Borrower,          in each case, designated as an Excluded Contribution pursuant to an Officers’ Certificate.          “Excluded Real Property Interests” shall mean, collectively, (i) with respect to each Quarry Property, any  interest  of  Borrower  or  the  applicable  Subsidiary  in  and  to  any  improvements  situated  on,  affixed  to  or  used  in  connection with such Quarry Property, and (ii) the Coram Quarry Property.          “Excluded  Subsidiary”  means  any  (a) CFC,  (b)  CFC  Holdco,  (c)  Unrestricted  Subsidiary,  (d)  Domestic  Subsidiary that, at the time such Subsidiary becomes a Restricted Subsidiary (and for so long as such restriction or  any replacement or renewal thereof is in effect), is prohibited by any applicable contractual obligation or requirement  of Applicable Law from Guaranteeing or granting Liens to secure the Obligations or if Guaranteeing or granting Liens  to  secure  the  Obligations  would  require  governmental  (including  regulatory)  consent,  approval,  license  or  authorization unless such consent, approval, license or authorization has been received, (e) joint venture or Subsidiary  that is not a Wholly-Owned Subsidiary, or (f) Subsidiary formed solely for the purpose of merging or amalgamating  with another Person in connection with an acquisition or other Investment by the Borrower or a Guarantor; provided  that for so long as the ABL Agreement is in effect, any Domestic Subsidiary that Guarantees any borrowings under  the ABL Agreement shall not be considered to be an Excluded Subsidiary, for so long as such Guarantee is in effect.          “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 Lending Office located in,  the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b)  in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such  Lender with respect to an applicable interest in a Term Loan or Commitment pursuant to a law in effect on the date  on  which  (i)  such  Lender  acquires  such  interest  in  the  Term  Loan  or  Commitment  (other  than  pursuant  to  an  assignment request by the Borrower under Section 11.13) or (ii) such Lender changes its Lending Office, except in  each case to the extent that, pursuant to Section 3.1, amounts with respect to such Taxes were payable either to such                                                   21 

 

Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it  changed its Lending Office, (c) Taxes attributable to such Recipient’s failure to comply with Section 3.1(g) and (d)  any U.S. federal withholding Taxes imposed pursuant to FATCA.          “Existing Notes” means the Borrower’s 6.375% Senior Notes due 2024, originally issued pursuant to the  Existing Notes Indenture.          “Existing  Notes  Indenture”  means  that  certain  Indenture,  dated  June  7,  2016,  among  the  Borrower,  the  guarantors  party  thereto  from  time  to  time  and  U.S.  Bank  National  Association,  as  trustee,  as  such  has  been  supplemented to the Agreement Date and as such may be amended and further supplemented from time to time.          “Existing Tranche” has the meaning specified in Section 2.13(a).           “Extended Term Loans” has the meaning specified in Section 2.13(a).           “Extending Lender” has the meaning specified in Section 2.13(b).          “Extension Amendment” has the meaning specified in Section 2.13(d).          “Extension Date” has the meaning specified in Section 2.13(e).          “Extension Election” has the meaning specified in Section 2.13(b).           “Extension Request” has the meaning specified in Section 2.13(a).           “FASB ASC” means the Accounting Standards Codification of the Financial Accounting Standards Board.          “Fair Market Value” means, with respect to any asset or property, the price which could be negotiated in an  arm’s length, free market transaction, for cash, between a willing seller and a willing and able buyer, neither of whom  is under undue pressure or compulsion to complete the transaction. Fair Market Value will be determined in good faith  by the senior management of the Borrower, or, if the Fair Market Value is in excess of $30,000,000, by the Board of  Directors of the Borrower, in each case, whose determination will be conclusive. With respect to real property, to the  extent a recent appraisal or broker opinion has not been obtained for such property, the value used for the purposes of  this definition may be the tax-assessed value, adjusted to reflect market value as reasonably determinable by reference  to the assessor’s office in the applicable jurisdiction.          “Fair Share” has the meaning specified in Section 10.2.          “Fair Share Contribution Amount” has the meaning specified in Section 10.2.          “FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any  amended or successor version that is substantively comparable and not materially more onerous to comply with) and  any current or future regulations or official interpretations thereof and any agreements entered into pursuant to  Section 1471(b)(1) and any fiscal or regulatory legislation, rules or practices adopted pursuant to any  intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such  Sections of the Code.          “Federal Funds Rate” means, for any day, the rate per annum calculated by the Federal Reserve Bank of  New York based on such day’s federal funds transactions by depository institutions (as determined in such manner  as the Federal Reserve Bank of New York shall set forth on its public website from time to time) and published on  the next succeeding Business Day by the Federal Reserve Bank of New York as the federal funds effective rate; provided that if the Federal Funds Rate as so determined would be less than zero, such rate shall be deemed to be  zero for purposes of this Agreement.                                                   22 

 

       “Fee  Letter”  means  one  or  more  fee  letters  among  Bank  of  America,  N.A.  and/or  the Arranger  and  the  Borrower, with respect to the payment of certain fees in connection with this Agreement.          “Fiscal Quarter” means the period commencing on January 1 in any Fiscal Year and ending on the next  succeeding  March 31,  the  period  commencing  on  April 1  in  any  Fiscal  Year  and  ending  on  the  next  succeeding  June 30, the period commencing on July 1 in any Fiscal Year and ending on the next succeeding September 30, or the  period commencing on October 1 in any Fiscal Year and ending on the next succeeding December 31, as the context  may require.          “Fiscal  Year”  means  the  Borrower’s,  the  Guarantors’  and  their  Subsidiaries’  fiscal  year  for  financial  accounting purposes.  As of the Agreement Date, the current Fiscal Year of the Borrower, the Guarantors and their  Subsidiaries will end on December 31, 2020.          “Flood Insurance Laws” means, collectively, (i) the National Flood Insurance Reform Act of 1994 (which  comprehensively revised the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973) as  now or hereafter in effect or any successor statute thereto, (ii) the Flood Insurance Reform Act of 2004 as now or  hereafter in effect or any successor statute thereto and (iii) the Biggert-Waters Flood Insurance Reform Act of 2012  as now or hereafter in effect or any successor statute thereto and all rules and regulations promulgated thereunder.          “FLSA” means the Fair Labor Standards Act of 1938, as amended.          “Foreign Lender” means a Lender that is not a U.S. Person.          “Foreign Plan” means any employee benefit plan (as defined in Section 3(3) of ERISA, whether or not subject  to ERISA) or arrangement (a) maintained or contributed to by any Loan Party or Subsidiary thereof that is not subject  to the laws of the United States; or (b) mandated by a government other than the United States for employees of any  Loan Party or Subsidiary thereof.          “Foreign Subsidiary” means (1) any Restricted Subsidiary of the Borrower that is not organized under the  laws of the United States of America or any State thereof or the District of Columbia and (2) any Subsidiary of a  Foreign Subsidiary. A Restricted Subsidiary that is organized under the laws of a territory or possession of the United  States of America (whether incorporated, unincorporated, organized or unorganized) is a Foreign Subsidiary if it is  classified as a “controlled foreign corporation” for purposes of Section 957 of the Code.          “FRB” means the Board of Governors of the Federal Reserve System of the United States.          “Full Payment” or “Full Payment of the Obligations” means (a) the payment in full in cash or immediately  available funds (except for contingent indemnities and cost and reimbursement obligations, in each case, to the extent  no  claim  has  been  made)  of  all  Obligations  then  outstanding,  if  any,  and  (b) the  termination  or  expiration  of  all  Commitments and any Refinancing Term Commitments.           “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.          “Funding Date” means, with respect to any Term Loan or any Borrowing, each date on which such Term  Loan, or the Term Loans comprising such Borrowing, is or are made pursuant to Section 2.1.          “Funding Guarantor” has the meaning specified in Section 10.2.          “GAAP” means generally accepted accounting principles in the United States, including those 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, that are  applicable to the circumstances as of the date of determination, consistently applied, subject to Section 1.3(b).                                                   23 

 

       “Governmental  Approval”  means  all  authorizations,  consents,  approvals,  licenses  and  exemptions  of,  registrations and filings with, and required reports to, all Governmental Authorities.           “Governmental Authority” means the government of the United States or any other nation, or of any  political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body,  court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative  powers or functions of or pertaining to government (including any supra-national bodies such as the European  Union or the European Central Bank).          “Guarantee” means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing  any  Indebtedness  of  any  Person  and  any  financial  obligation,  direct  or  indirect,  contingent  or  otherwise,  of  such  Person:          (1)  to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of              such Person (whether arising by virtue of partnership arrangements, or by agreements to keep-well, to              purchase  assets,  goods,  securities  or  services,  to  take-or-pay  or  to  maintain  financial  statement              conditions or otherwise); or          (2)  entered into for the purpose of assuring in any other manner the obligee of such Indebtedness of the              payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); provided,              however,  that  the  term  “Guarantee”  shall  not  include  endorsements  for  collection  or  deposit  in  the              ordinary course of business. The term “Guarantee” used as a verb has a corresponding meaning. The              term “guarantor” shall mean any Person Guaranteeing any obligation.           “Guaranteed Obligation” has the meaning specified in Section 10.1.          “Guarantors” means (a) each Restricted Subsidiary (other than a CFC or CFC Holdco that does not Guarantee  any Indebtedness of the Borrower or any Domestic Subsidiary that is a Restricted Subsidiary) and (b) each other  Person who guarantees payment or performance in whole or in part of the Obligations.  The Guarantors as of the  Agreement Date are set forth on Schedule 1.2 under the heading “Guarantors.”            “Guaranty” means the guaranty made by the Guarantors in favor of the Administrative Agent, the Lenders  and the other holders of Obligations pursuant to ARTICLE X.           “Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic  substances, wastes or other pollutants including petroleum or petroleum distillates, natural gas, natural gas liquids,  asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, toxic mold, infectious or medical  wastes and all other substances, wastes, chemicals, pollutants, contaminants or compounds of any nature in any form  regulated pursuant to any Environmental Law.          “Hedging Obligations” of any Person means the obligations of such Person pursuant to any Interest Rate  Agreement, Currency Agreement or Commodity Agreement.          “HMT” has the meaning specified in the definition of “Sanctions”.          “Impacted Loans” has the meaning assigned to such term in Section 3.3(a).          “Incremental  Equivalent  Debt”  means  Indebtedness  Incurred  by  the  Borrower  consisting  of  (x)  senior  unsecured loans, senior subordinated loans, junior subordinated loans or senior secured loans secured by the Collateral  on an equal or junior priority basis with or to the Obligations, or (y) unsecured senior, senior subordinated or junior  subordinated notes, or senior secured notes secured by the Collateral on an equal or junior priority basis with or to the  Obligations, in each case issued in a public offering, Rule 144A or other private placement or otherwise, or, except in  the case of senior secured notes, a bridge facility or a syndicated loan financing, and in each case of clauses (x) and  (y), subject to the terms set forth in Section 2.12(g).                                                   24 

 

       “Incremental Term Amendment” has the meaning specified in Section 2.12(f).           “Incremental Term Commitments” has the meaning specified in Section 2.12(a).          “Incremental Term Lender” has the meaning specified in Section 2.12(a).          “Incremental Term Loan” has the meaning specified in Section 2.12(c).          “Incremental Tranche Closing Date” has the meaning specified in Section 2.12(c).          “Incur” means issue, assume, Guarantee, incur or otherwise become liable for; provided, however, that any  Indebtedness of a Person existing at the time such Person becomes a Restricted Subsidiary (whether by merger,  consolidation,  acquisition  or otherwise)  shall  be  deemed  to  be  Incurred  by  such  Person  at  the  time  it  becomes a  Restricted Subsidiary. The term “Incurrence” when used as a noun shall have a correlative meaning. For purposes of  determining compliance with any covenant hereunder relating to the Incurrence of Indebtedness:          (1)   the accrual of interest or dividends, the amortization of debt discount or the accretion of principal with               respect to a non-interest bearing or other discount security;          (2)   the  payment  of  regularly  scheduled  interest  in  the  form  of  additional  Indebtedness  of  the  same               instrument or the payment of regularly scheduled dividends on Capital Stock in the form of additional               Capital Stock of the same class and with the same terms;          (3)   the obligation to pay a premium in respect of Indebtedness arising in connection with the issuance of               a notice of redemption or the making of a mandatory offer to purchase such Indebtedness;          (4)   changes in the principal amount of any Indebtedness that is denominated in a currency other than U.S.               dollars solely as a result of fluctuations in exchange rates or currency values;          (5)   unrealized losses or charges in respect of Hedging Obligations (including those resulting from the               application of ASC 815); and          (6)   the reclassification of any outstanding Capital Stock or obligation as Indebtedness due to a change in               accounting  principles  so  long  as  such  Capital  Stock  or  obligation  was  issued  prior  to,  and  not  in               contemplation of, such accounting change;          in each case, will be deemed not to be the Incurrence of Indebtedness.          “Indebtedness” means, with respect to any Person on any date of determination (without duplication):          (1)  the principal in respect of (A) indebtedness of such Person for money borrowed and (B) indebtedness              evidenced  by  notes,  debentures,  bonds  or  other  similar  instruments  for  the  payment of which  such              Person is responsible or liable, including, in each case, any premium on such indebtedness to the extent              such premium has become due and payable;          (2)  all Capital Lease Obligations of such Person and all Attributable Debt in respect of Sale/Leaseback              Transactions entered into by such Person;          (3)  all  obligations  of  such  Person  issued  or  assumed  as  the  deferred  purchase  price  of  property,  all              conditional sale obligations of such Person and all obligations of such Person under any title retention              agreement  (but  excluding  any  accounts  payable  or  other  liability  to  trade  creditors  arising  in  the              ordinary course of business);          (4)  all obligations of such Person for the reimbursement of any obligor on any letter of credit, bankers’              acceptance or similar credit transaction (other than obligations with respect to letters of credit securing                                                   25 

 

            obligations  (other  than  obligations  described  in  clauses  (1)  through  (3)  above)  entered  into  in  the              ordinary course of business of such Person to the extent such letters of credit are not drawn upon or, if              and to the extent drawn upon, such drawing is reimbursed no later than the tenth Business Day following              payment on the letter of credit), but excluding any such obligations with respect to letters of credit              securing obligations if such Person is an obligor on such underlying obligation and such underlying              obligation constitutes Indebtedness hereunder;          (5)  the  amount  of  all  obligations  of  such  Person  with  respect  to  the  redemption,  repayment  or  other              repurchase of any Disqualified Stock of such Person or, with respect to any Preferred Stock of any              Subsidiary of such Person, the amount of such Preferred Stock to be determined in accordance with this              Agreement (but excluding, in each case, any accrued dividends);          (6)  all Guarantees by such Person of Indebtedness of the type referred to in clauses (1) through (5) or              dividends of other Persons;          (7)  all Indebtedness of the types referred to in clauses (1) through (6) of other Persons secured by any Lien              on any property or asset of such Person (whether or not such Indebtedness is assumed by such Person),              the  amount  of  such  Indebtedness  being  deemed  to  be  the  lesser  of  the  Fair  Market  Value  of  such              property or assets and the amount of the Indebtedness so secured;          (8)  to the extent not otherwise included in this definition, Hedging Obligations of such Person; and          (9)  solely for purposes of the definition of “Consolidated Current Liabilities” and Section 7.2(b)(xiii), in              connection with the purchase by the Borrower or any Restricted Subsidiary of any business, adjustments              of purchase price, earn-outs and other post-closing payments to which the seller or any of its Affiliates              may become entitled to the extent such payment is determined by a final closing balance sheet or such              payment depends on the performance of such business after the closing (“Post-Closing Payments”).          Notwithstanding the foregoing, the term “Indebtedness” excludes (i) obligations under or in connection with  Cash Management Arrangements and (ii) obligations under or in connection with Royalty Interests.          The  amount  of  any  Preferred  Stock  that  has  a  fixed  redemption,  repayment  or  repurchase  price  will  be  calculated in accordance with the terms of such Preferred Stock as if such Preferred Stock were redeemed, repaid or  repurchased on any date on which the amount of such Preferred Stock is to be determined pursuant to this Agreement;  provided, however, that if such Preferred Stock could not be required to be redeemed, repaid or repurchased at the  time  of  such  determination,  the  redemption,  repayment  or  repurchase  price  will  be  calculated  as  of  the  first  date  thereafter on which such Preferred Stock could be required to be so redeemed, repaid or repurchased. If any Preferred  Stock does not have a fixed redemption, repayment or repurchase price, the amount of such Preferred Stock will be  its maximum liquidation value.          “Indemnified Taxes” means (a) Taxes other than Excluded Taxes, imposed on or with respect to any payment  made by or on account of any obligation of any Loan Party under any Loan Document and (b) to the extent not  otherwise described in (a), Other Taxes.          “Indemnitees” has the meaning specified in Section 11.4(b).          “Information” has the meaning specified in Section 11.7.          “Initial Mortgaged Properties” shall mean, collectively, the Initial Quarry Properties and the Initial Non- Quarry Properties.            “Initial Non-Quarry Properties” means those Non-Quarry Properties set forth on Schedule 1.6.           “Initial Quarry Properties” means those Quarry Properties set forth on Schedule 1.5.                                                   26 

 

       “Initial Term Loans” means, collectively all Term Loans made pursuant to Section 2.1.          “Initial Term Loan Commitment” means, as to each Lender, its obligation to make Term Loans pursuant to  Section 2.1, in an aggregate principal amount not to exceed the amount set forth opposite such Lender’s name on  Schedule 1.1 under the caption “Initial Term Loan Commitment”, or in the Assignment and Assumption 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.          “Intellectual Property” means all intellectual and similar property of a Person, including inventions, designs,  patents, copyrights, trademarks, service marks, trade names, trade secrets, confidential or proprietary information,  customer lists, know-how, software and databases; all embodiments or fixations thereof and all related documentation,  applications, registrations and franchises; all Licenses or other rights to use any of the foregoing; and all books and  records relating to the foregoing.          “Intellectual Property Claim” means any claim or assertion (whether in writing, by suit or otherwise) that  any  Loan  Party’s  or  Subsidiary’s  ownership,  use,  marketing,  sale  or  distribution  of  any  inventory,  equipment,  Intellectual Property or other property violates another Person’s Intellectual Property.          “Intellectual Property Security Agreement” means the Intellectual Property Security Agreement, dated as of  the Agreement Date, among the applicable Loan Parties for the benefit of the Secured Parties, as amended, amended  and restated, modified or supplemented from time to time.          “Interest Payment Date” means, (a) as to any Eurodollar Rate Term Loan, the last day of each Interest  Period applicable to such Term Loan and the Maturity Date of such Term Loans; provided, however, that if any  Interest Period for a Eurodollar Rate Term Loan exceeds three months, the respective dates that fall every three  months after the beginning of such Interest Period shall also be Interest Payment Dates; and (b) as to any Base Rate  Term Loan, the last Business Day of each March, June, September and December and the Maturity Date of such  Term Loans.          “Interest Period” means, as to each Eurodollar Rate Term Loan, the period commencing on the date such  Eurodollar Rate Term Loan is disbursed or converted to or continued as a Eurodollar Rate Term Loan and ending on  the date one, two, three or six months or (if agreed to by all of the Lenders of the Class of Term Loans to which such  request relates), twelve months, thereafter (in each case, subject to availability), as selected by the Borrower in its  Committed Loan Notice; provided that:                  (i)    any Interest Period that would otherwise end on a day that is not a Business Day shall be         extended to the next succeeding Business Day unless, in the case of a Eurodollar Rate Term Loan, such         Business Day falls in another calendar month, in which case such Interest Period shall end on the next         preceding Business Day;                  (ii)   any  Interest  Period  pertaining  to  a  Eurodollar  Rate  Term  Loan  that  begins  on  the  last         Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the         calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month         at the end of such Interest Period; and                  (iii)  no Interest Period shall extend beyond the Maturity Date.          “Interest Rate” means each or any of the interest rates, including the Default Rate.          “Interest Rate Agreement” means any interest rate swap agreement, interest rate cap agreement or other  financial agreement or arrangement with respect to exposure to interest rates.          “Investment” in any Person means any advance, loan (other than advances to customers in the ordinary course  of business that are recorded as accounts receivable on the balance sheet of the lender) or other extensions of credit  (including by way of Guarantee or similar arrangement) or capital contribution to (by means of any transfer of cash                                                   27 

 

or other property to others or any payment for property or services for the account or use of others), or any purchase  or acquisition of Capital Stock, Indebtedness or other similar instruments issued by such Person. If the Borrower or  any Restricted Subsidiary issues, sells or otherwise disposes of any Capital Stock of a Person that is a Restricted  Subsidiary such that, after giving effect thereto, such Person is no longer a Restricted Subsidiary, any Investment by  the Borrower or any Restricted Subsidiary in such Person remaining after giving effect thereto will be deemed to be a  new Investment at such time. The acquisition by the Borrower or any Restricted Subsidiary of a Person that holds an  Investment in a third Person will be deemed to be an Investment by the Borrower or such Restricted Subsidiary in  such third Person at such time. Except as otherwise provided for herein, the amount of an Investment shall be its Fair  Market Value at the time the Investment is made and without giving effect to subsequent changes in value.          For  purposes  of  the  definition  of  “Unrestricted  Subsidiary,”  the  definition  of  “Restricted  Payment”  and  Section 7.1:          (1)   “Investment”  shall  include  the  portion  (proportionate  to  the  Borrower’s  equity  interest  in  such               Subsidiary) of the Fair Market Value of the net assets of any Subsidiary of the Borrower at the time               that such Subsidiary is designated as an Unrestricted Subsidiary pursuant to this Agreement; provided,               however, that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Borrower shall               be deemed to continue to have a permanent “Investment” in an Unrestricted Subsidiary equal to an               amount (if positive) equal to (A) the Borrower’s “Investment” in such Subsidiary at the time of such               redesignation less (B) the portion (proportionate to the Borrower’s equity interest in such Subsidiary)               of the Fair Market Value 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               at the time of such transfer.          “IRS” means the Internal Revenue Service and any Governmental Authority succeeding to any of its principal  functions under the Code.          “Laws” means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, binding  guidelines,  regulations,  ordinances,  codes  and  administrative  or  judicial  precedents  or  authorities,  including  the  binding  interpretation  or  administration  thereof  by  any  Governmental  Authority  charged  with  the  enforcement,  interpretation or administration thereof, and all applicable administrative orders.          “LCA Election” has the meaning specified in Section 1.2(f).          “LCA Test Date” has the meaning specified in Section 1.2(f).          “Lender” and “Lenders” have the meanings specified in the introductory paragraph to this Agreement.          “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 the  Borrower and the Administrative 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.          “LIBOR” has the meaning specified in the definition of “Eurodollar Rate”.           “LIBOR  Screen  Rate”  means  the  LIBOR  quote on  the  applicable  screen  page  the  Administrative  Agent  designates to determine LIBOR (or such other commercially available source providing such quotations as may be  designated by the Administrative Agent from time to time).          “LIBOR Successor Rate” has the meaning specified in Section 3.3(c).          “LIBOR Successor Rate Conforming Changes” means, with respect to any proposed LIBOR Successor Rate,  any conforming changes to the definition of Base Rate, Interest Period, timing and frequency of determining rates and                                                   28 

 

making payments of interest and other technical, administrative or operational matters as may be appropriate, in the  discretion of the Administrative Agent, to reflect the adoption and implementation of such LIBOR Successor Rate  and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market  practice  (or,  if  the  Administrative  Agent  determines  that  adoption  of  any  portion  of  such  market  practice  is  not  administratively feasible or that no market practice for the administration of such LIBOR Successor Rate exists, in  such other manner of administration as the Administrative Agent determines is reasonably necessary in connection  with the administration of this Agreement).          “License” means any license or agreement under which a Loan Party is authorized to use Intellectual Property  in connection with any manufacture, marketing, distribution or disposition of Collateral, any use of property or any  other conduct of its business.          “Lien” means any mortgage or deed of trust, charge, pledge, lien (statutory or otherwise), privilege, security  interest,  assignment,  easement,  hypothecation,  claim,  preference,  priority  or  other  encumbrance  (including  any  conditional sale, finance lease or other title retention agreement) upon or with respect to any property of any kind, real  or personal, moveable or immovable, now owned or hereafter acquired; provided, however, that an operating lease  shall be deemed not to constitute a Lien.           “Limited Condition Acquisition” means any acquisition of or Investment in any assets, business or Person  permitted by this Agreement, the consummation of which is not conditioned on the availability of, or on obtaining,  third party financing.          “Limited Conditionality Provision” has the meaning specified in Section 4.1.          “Loan Documents” means this Agreement, the Collateral Documents, the Fee Letters, the ABL Intercreditor  Agreement,  any  Acceptable  Intercreditor  Agreement  or  any  other  intercreditor  agreement  entered  into  by  the  Administrative Agent at any time in connection with this Agreement or any Collateral Document, any Note evidencing  any Obligations, and any other agreements, instruments, and documents to which one or more Loan Parties is a party  that, for any such other agreement, instrument or document entered into after the Agreement Date, expressly states  that it is to be treated as a “Loan Document” hereunder, and any amendments, modifications or supplements hereto or  any other Loan Document or waivers hereof or to any other Loan Documents.          “Loan Parties” means, collectively, the Borrower and each Guarantor.          “London Banking Day” means any day on which dealings in Dollar deposits are conducted by and between  banks in the London interbank eurodollar market.          “Long-Term Indebtedness” means any Indebtedness that, in accordance with GAAP, constitutes a long-term  liability.          “Margin Stock” has the meaning set forth in Regulation U of the FRB.          “Master Agreement” has the meaning specified in the definition of “Swap Contract”.          “Material Adverse Effect” means the effect of any event or circumstance that, taken in conjunction with other  events or circumstances, (a) has a material adverse effect on the business, operations, properties, or financial condition  of the Borrower and its Restricted Subsidiaries, taken as a whole, on the value of the Collateral, taken as a whole, on  the enforceability of any Loan Documents, or on the validity or priority of the Administrative Agent’s Liens on any  material portion of the Collateral; (b) creates a material impairment on the ability of any Loan Party to perform its  obligations under the Loan Documents, including repayment of any Obligations; or (c) has a material adverse effect  on the ability of the Administrative Agent or any Lender to enforce or collect the Obligations or to realize upon any  material portion of the Collateral.          “Material Contract” means any agreement or arrangement to which any Loan Party or Subsidiary thereof is  party (other than the Loan Documents) (a) for which breach, termination, nonperformance or failure to renew could                                                   29 

 

reasonably be expected to have a Material Adverse Effect; (b) that relates to the Existing Notes, any Incremental  Equivalent Debt or any Indebtedness secured by Liens Incurred pursuant to clause (30) of the definition of “Permitted  Liens”; (c) that relates to Subordinated Obligations or Specified Junior Indebtedness; or (d) that relates to Indebtedness  in an aggregate amount of $7,500,000 or more.          “Material Real Property” means any fee-owned real property located in the United States that is owned by  any Loan Party with a Fair Market Value in excess of $1,500,000 (at the Closing Date or, with respect to fee-owned  real property located in the United States acquired after the Closing Date, at the time of acquisition), but excluding  the Excluded Real Property Interests.          “Maturity Date” means (a) with respect to the Initial Term Loans, May 1, 2025; provided that the Maturity  Date of the Initial Term Loans shall automatically be deemed to be March 1, 2024 if any Existing Notes remain  outstanding as of such date; and (b) with respect to any Incremental Term Loans, Extended Term Loans or  Refinancing Term Loans, the date specified in the respective Incremental Term Amendment, Extension Amendment  or Refinancing Amendment, as applicable.          “Maximum Rate” has the meaning specified in Section 11.9.          “Minimum Extension Condition” has the meaning specified in Section 2.13(h).           “MNPI” has the meaning specified in Section 8.2.          “Moody’s” means Moody’s Investors Service, Inc., or any successor thereto.          “Mortgage Policy” has the meaning specified in Section 4.1(g)(ii).          “Mortgaged Properties” means each Material Real Property with respect to which a Mortgage is granted  pursuant to Section 4.1(g), 6.12 or 6.13.          “Mortgages” means the mortgages, deeds of trust, deeds to secure debt, and other similar security documents  delivered pursuant to Section 4.1(g) or pursuant to Section 6.12 or 6.13 each substantially in the form of Exhibit K  (with such changes as may be satisfactory to the Administrative Agent to account for local law matters).          “Multi-employer  Plan”  means  any  employee  benefit  plan  of  the  type  described  in  Section 4001(a)(3)  of  ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the  preceding five plan years, has made or been obligated to make contributions.          “Multiple  Employer  Plan”  means  a  Plan  which  has  two  or  more  contributing  sponsors  (including  the  Borrower or any ERISA Affiliate) at least two of whom are not under common control, as such a plan is described in  Section 4064 of ERISA.          “Net  Available  Cash”  from  an  Asset  Disposition  or  Recovery  Event  means  cash  payments  and  the  Fair  Market Value of any Temporary Cash Investments received therefrom (including any cash payments received by way  of deferred payment of principal pursuant to a note or installment receivable or otherwise and proceeds from the sale  or other disposition of any securities (other than Temporary Cash Investments) received as consideration, but only as  and when received, but excluding any other consideration received in the form of assumption by the acquiring Person  of Indebtedness or other obligations relating to such properties or assets or received in any other non-cash form), in  each case net of:          (1)  all legal, title, recording, engineering, environmental, accounting, investment banking and brokerage              fees, relocation expenses, title and recording tax expenses, commissions and other fees and expenses              incurred, and all Federal, state, provincial, foreign and local taxes required to be accrued as a liability              under GAAP, as a consequence of such Asset Disposition;                                                   30 

 

       (2)  all payments made in respect of any obligations that are secured by any assets subject to such Asset              Disposition, in accordance with the terms of any Lien upon or other security agreement of any kind              with respect to such assets, or which must by its terms, or in order to obtain a necessary consent to such              Asset Disposition, or by Applicable Law, be repaid out of the proceeds from such Asset Disposition;          (3)  all  distributions  and  other  payments  required  to  be  made  to  minority  interest  holders  in  Restricted              Subsidiaries or to holders of Royalty Interests as a result of such Asset Disposition;          (4)  the deduction of appropriate amounts provided by the seller as a reserve, in accordance with GAAP,              against any liabilities associated with the property or other assets disposed in such Asset Disposition              and retained by the Borrower or any Restricted Subsidiary after such Asset Disposition; and          (5)  any portion of the purchase price from an Asset Disposition placed in escrow, whether as a reserve for              adjustment of the purchase price, for satisfaction of indemnities in respect of such Asset Disposition or              otherwise in connection with that Asset Disposition; provided, however, that upon the termination of              that escrow, Net Available Cash will be increased by any portion of funds in the escrow that are released              to the Borrower or any Restricted Subsidiary;          provided that, so long as no Default shall have occurred and be continuing, the Borrower or any Restricted         Subsidiary may reinvest any portion of cash proceeds received from any Asset Disposition or Recovery Event         in  Additional  Assets  on  or  prior  to  the  Reinvestment  Prepayment  Date,  and  such  portion  of  such  cash         proceeds shall not constitute Net Available Cash except to the extent not so reinvested on or prior to the         Reinvestment Prepayment Date.          All references in this Agreement to “Net Available Cash” shall be deemed to mean cash in an amount equal         to the amount of Net Available Cash, but not necessarily the actual cash received from the relevant Asset          Disposition or Recovery Event. The Borrower and its Subsidiaries shall have no obligation to segregate, trace         or  otherwise  identify  Net  Available  Cash,  it  being  agreed  that  cash  is  fungible  and  that  the  Borrower’s         obligations  under  Section  2.3(b)(iii)  and  any  related  provisions  set  forth  herein  may  be  satisfied  by  the         application of funds from other sources.          “Net Cash Proceeds” means with respect to any issuance or sale of Capital Stock or Indebtedness, means the  cash proceeds of such issuance or sale, net of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’  fees, discounts or commissions and brokerage, consultant and other fees actually incurred in connection with such  issuance or sale and net of taxes paid or payable as a result thereof.          “Net Working Capital” means, at any date, (a) the Consolidated Current Assets of the  Borrower and its  consolidated Restricted Subsidiaries as of such date, minus (b) the Consolidated Current Liabilities of the Borrower  and its consolidated Restricted Subsidiaries as of such date.  Net Working Capital at any date may be a positive or  negative number.  Net Working Capital increases when it becomes more positive or less negative and decreases when  it becomes less positive or more negative.          “Non-Consenting Lender” means any Lender that does not approve any consent, waiver or amendment that  (a) requires the approval of all Lenders or all affected Lenders in accordance with the terms of Section 11.1 and (b)  has been approved by the Required Lenders or the Required Class Lenders, as the context requires.          “Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such time.          “Non-Extended Term Loans” has the meaning specified in Section 2.13(a).          “Non-Extending Lender” has the meaning specified in Section 2.13(f).           “Non-Quarry Property” shall mean each Material Real Property that is not a Quarry Property or a portion  thereof.                                                   31 

 

       “Note” means a promissory note made by the Borrower in favor of a Lender, substantially in the form of  Exhibit E.          “Notice of Loan Prepayment” means a notice of prepayment with respect to a Term Loan, which shall be  substantially in the form of Exhibit D or such other form as may be approved by the Administrative Agent (including  any form on an electronic platform or electronic transmission system as shall be approved by the Administrative  Agent), appropriately completed and signed by a Responsible Officer.          “Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, any Loan  Party arising under any Loan Document or otherwise with respect to any Term Loan, absolute or contingent, due or  to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement  by or against any Loan Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such  Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such  proceeding; provided that, without limiting the foregoing, the Obligations include (a) the obligation to pay principal,  interest, charges, expenses, fees, indemnities and other amounts payable by any Loan Party under any Loan Document  and  (b) the  obligation  of  the  Loan  Parties  to  reimburse  any  amount  in  respect  of  any  of  the  foregoing  that  the  Administrative Agent or any Lender, in each case in its sole discretion, may elect to pay or advance on behalf of the  Loan Parties.          “OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.          “Officers’ Certificate” means a certificate signed by two Responsible Officers.          “Opinion  of  Counsel”  means  a  written  opinion  from  legal  counsel  who  is  reasonably  acceptable  to  the  Administrative Agent.           “Optional Prepayment Amount” means, for any Excess Cash Flow Period, the aggregate amount of (x) all  optional prepayments (including any premiums associated therewith) of the Initial Term Loans during such Excess  Cash Flow Period (or, at the option of the Borrower, during such Excess Cash Flow Period and the period in the  succeeding Excess Cash Flow Period prior to the applicable Excess Cash Flow Application Date) and (y) all optional  prepayments  (including  any  premiums  associated  therewith)  of  any  Incremental  Term  Loans  and  Incremental  Equivalent Debt, in each case, secured by a Lien on any of the Collateral on a pari passu basis with the Initial Term  Loans during such Excess Cash Flow Period (or, at the option of the Borrower, during such Excess Cash Flow Period  and the period in the succeeding Excess Cash Flow Period prior to the applicable Excess Cash Flow Application Date),  excluding, in the case of each of clause (x) and (y), any such prepayments to the extent financed with the proceeds of  Long-Term  Indebtedness  (other  than  loans  under  the  ABL  Agreement  or  loans  under  any  other  revolving  credit  facility); provided, that, with respect to any prepayment of Term Loans, Incremental Term Loans or any Incremental  Equivalent Debt, in each case by the Borrower in accordance with the terms of this Agreement or the corresponding  provisions in the definitive agreement governing any Incremental Equivalent Debt, the Optional Prepayment Amount  shall include only the aggregate amount of cash actually paid by the Borrower in respect of the principal amount of  the Term Loans, Incremental Term Loans or Incremental Equivalent Debt, as the case may be, so prepaid; provided,  further, that to the extent any such prepayments made after the applicable Excess Cash Flow Period reduce Excess  Cash Flow for such Excess Cash Flow Period, such prepayments shall not also reduce Excess Cash Flow in the Excess  Cash Flow Period in which they are made.          “Organization Documents” means, (a) with respect to any corporation, the charter or certificate or articles  of incorporation and the bylaws; (b) with respect to any limited liability company, the certificate or articles of  formation or organization and operating or limited liability agreement; and (c) with respect to any partnership, joint  venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of  formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection  with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or  organization and, if applicable, any certificate or articles of formation or organization of such entity, or, in each of  clauses (a), (b) and (c), the equivalent or comparable constitutive documents with respect to any non-U.S.  jurisdiction.           “OSHA” means the Occupational Safety and Hazard Act of 1970.                                                  32 

 

       “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 Term Loan or Loan Documents).          “Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar  Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration  of, from the receipt or perfection of a security interest under, or otherwise with respect to any Loan Document, except  any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment  made pursuant to Section 3.6).          “Pari Passu Incremental Term Loans” means any then-existing Incremental Term Loans that are secured on  a pari passu basis with the Obligations in respect of the Initial Term Loans.          “Participant” has the meaning specified in Section 11.6(d).          “Participant Register” has the meaning specified in Section 11.6(d).          “PBGC” means the Pension Benefit Guaranty Corporation.          “Pension Funding Rules” means the rules of the Code and ERISA regarding minimum funding standards  with respect to Pension Plans and set forth in Sections 412, 430, 431, 432 and 436 of the Code and Sections 302,  303, 304 and 305 of ERISA.          “Pension Plan” means any employee pension benefit plan (including a Multiple Employer Plan or a Multi- employer Plan) that is maintained or is contributed to by the Borrower and any ERISA Affiliate or with respect to  which the Borrower or any ERISA Affiliate has any liability and is either covered by Title IV of ERISA or is subject  to the minimum funding standards under Section 412 of the Code.          “Perfection Certificate” shall mean a certificate in the form of Exhibit F-1 or any other form approved by  the Administrative Agent, as the same shall be supplemented from time to time by a Perfection Certificate  Supplement or otherwise.          “Perfection Certificate Supplement” shall mean a certificate supplement in the form of Exhibit F-2 or any  other form approved by the Administrative Agent.          “Permitted Acquisition” has the meaning specified in the definition of “Permitted Investment”.          “Permitted Aggregates Business Investment” means any Investment made in an Aggregate Related Business  through agreements, transactions, interests or arrangements that permit businesses to share risks or costs, achieve  economies of scale, pool resources, vertically integrate operations, comply with regulatory requirements regarding  local ownership or satisfy other objectives customarily achieved through the conduct of such businesses jointly with  third parties, relating to ownership interests in plants, production facilities, distribution facilities, quarries and other  tangible and intangible assets and properties, either directly or through entities the primary business of which is to  own or operate any of the foregoing, including entry into and Investments in the form of, or pursuant to, supply  agreements,  operating  agreements,  management  agreements,  pooling  arrangements,  royalty  agreements,  service  contracts, joint venture agreements, partnership agreements (whether general or limited), limited liability company  agreements,  subscription  agreements,  stock  purchase  agreements,  stockholder  agreements  and  other  similar  agreements with third parties (other than Unrestricted Subsidiaries).          “Permitted First Priority Refinancing Debt” means any Indebtedness Incurred by the Borrower in the form  of one or more series of senior secured notes or senior secured loans; provided that (i) such Indebtedness is secured  by the Collateral on a pari passu basis (but without regard to the control of remedies) with the Obligations and (ii) such  Indebtedness constitutes Credit Agreement Refinancing Indebtedness.                                                    33 

 

“Permitted Investment” means an Investment by the Borrower or any Restricted Subsidiary in:           (1)    the Borrower or a Restricted Subsidiary; provided that the aggregate amount of all  outstanding Investments made after the Agreement Date made pursuant to this clause (1) in Restricted  Subsidiaries that are not Guarantors by the Borrower or any Guarantor (together with Investments subject  to the proviso in clause (2) below) shall not exceed (valued at the Fair Market Value thereof at the time  made) $20,000,000 at the time of any such Investment;           (2)     any Person if (A) as a result of such Investment, such Person becomes a Restricted  Subsidiary or is merged or consolidated with or into, or transfers or conveys all or substantially all its assets  to, the Borrower or a Restricted Subsidiary, (B) immediately prior to and after giving effect to any such  transaction, no Specified Default shall have occurred and be continuing and (C) such Person’s primary  business is a Related Business (any Investment described in this clause (2), a “Permitted Acquisition”);  provided that the aggregate amount of all outstanding Investments made after the Agreement Date made  pursuant to this clause (2) in Restricted Subsidiaries that are not Guarantors by the Borrower or any  Guarantor (together with Investments subject to the proviso in clause (1) above) shall not exceed (valued at  the Fair Market Value thereof at the time made) $20,000,000 at the time of any such Investment;           (3)    cash and Temporary Cash Investments;           (4)    receivables owing to the Borrower or any Restricted Subsidiary if created or acquired in  the ordinary course of business and payable or dischargeable in accordance with customary trade terms;  provided, however, that such trade terms may include such concessionary trade terms as the Borrower or  any such Restricted Subsidiary deems reasonable under the circumstances;           (5)    payroll, travel and similar advances to cover matters that are expected at the time of such  advances ultimately to be treated as expenses for accounting purposes and that are made in the ordinary  course of business;           (6)    loans or advances to employees made in the ordinary course of business of the Borrower  or such Restricted Subsidiary;           (7)    stock, obligations or securities received in settlement of debts, including accounts  receivable, created in the ordinary course of business and owing to the Borrower or any Restricted  Subsidiary or in satisfaction of judgments;           (8)    any Person to the extent such Investment represents the non-cash portion of the  consideration received for (i) an Asset Disposition as permitted pursuant to Section 7.5 or (ii) a disposition  of assets not constituting an Asset Disposition;           (9)    any Person where such Investment was acquired by the Borrower or any of its Restricted  Subsidiaries (a) in exchange for any other Investment or accounts receivable held by the Borrower or any  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 the Borrower or any of its Restricted Subsidiaries with respect to any secured Investment or  other transfer of title with respect to any secured Investment in default;           (10)   any Person to the extent such Investments consist of prepaid expenses, negotiable  instruments held for collection and lease, utility and workers’ compensation, performance and other similar  deposits made in the ordinary course of business by the Borrower or any Restricted Subsidiary;           (11)   any Person to the extent such Investments consist of Hedging Obligations or Guarantees  of Indebtedness otherwise permitted under Section 7.2;                                            34 

 

               (12)   any Person to the extent such Investment existed on the Agreement Date or is made         pursuant to a binding commitment existing on the Agreement Date (in each case, solely to the extent set         forth on Schedule 1.3), and any extension, modification or renewal, replacement, refunding or refinancing         of any such Investments, but only to the extent not involving additional advances, contributions or other         Investments of cash or other assets or other increases thereof (other than as a result of the accrual or         accretion of interest or original issue discount or the issuance of pay-in-kind securities, in each case,         pursuant to the terms of such Investment as in effect on the Agreement Date); provided that the amount of         such Investment may be increased (a) as required by the terms of such Investment as in existence on the         Closing Date or (b) as otherwise permitted under this Agreement;                  (13)   (a) any Person engaged in a Related Business (other than an Investment in an         Unrestricted Subsidiary) having an aggregate Fair Market Value, when taken together with all other         Investments made pursuant to this clause (13)(a) that are outstanding on the date such Investment is made,         that does not exceed the greater of (x) $75,000,000 and (y) 10.0% of Consolidated Net Tangible Assets at         the time of such Investment and (b) any other Person having an aggregate Fair Market Value, when taken         together with all other Investments made pursuant to this clause (13)(b) that are outstanding on the date         such Investment is made, that does not exceed the greater of (x) $100,000,000 and (y) 15.0% of         Consolidated Net Tangible Assets at the time of such Investment; provided that, in each case, (A) each         Investment will be valued as of the date made and without regard to subsequent changes in value and (B) if         any Investment pursuant to this clause (13) is made in any Person that is not a Restricted Subsidiary of the         Borrower at the date of the making of such Investment and such Person becomes a Restricted Subsidiary of         the Borrower 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 (13) for so long as such Person         continues to be a Restricted Subsidiary;                  (14)   advances, loans, rebates and extensions of credit to suppliers, customers and vendors in         the ordinary course of business in an aggregate amount not to exceed $10,000,000 at any time outstanding;                  (15)   deposits, prepayments and other credits to suppliers or landlords made in the ordinary         course of business, including such Investments in connection with the entry into any new hauling         arrangements contemplated as of the Agreement Date;                  (16)   Investments of a Restricted Subsidiary acquired after the Agreement Date or of an entity         merged into the Borrower or merged into or consolidated with a Restricted Subsidiary after the Agreement         Date, in each case, to the extent that such Investments were not made in contemplation of or in connection         with such acquisition, merger or consolidation and were in existence on the date of such acquisition,         merger or consolidation;                  (17)   Investments the payment for which consists of Qualified Capital Stock; provided that         such Qualified Capital Stock will not increase the amount available under Section 7.1(a)(iii);                   (18)   Permitted Aggregates Business Investments having an aggregate Fair Market Value,         when taken together with all other Permitted Aggregates Business Investments made pursuant to this clause         (18) during such calendar year, that does not exceed $75,000,000; and                  (19)   Licensing, sublicensing or contribution of Intellectual Property pursuant to joint         marketing arrangements with other Persons.                  For purposes of this definition, in the event that a proposed Investment (or portion thereof) meets  the criteria of more than one of the categories of Permitted Investments described in clauses (1) through (19) above,  the Borrower will be entitled to classify (but not reclassify) such Investment (or portion thereof) in one or more of  such categories set forth above.  In addition, subject to Section 6.12(c), any intercompany Investment permitted  above that is in the form of a loan or advance owed to (A) any Loan Party shall be evidenced by an intercompany  note reasonably acceptable to the Administrative Agent (individually or pursuant to a global note, which global note  may be the Subordinated Intercompany Note referred to in the following clause (B)) and pledged by such Loan  Party as Collateral pursuant to the Collateral Documents and (B) a non-Guarantor Subsidiary by a Loan Party shall                                                  35 

 

be subordinated to the prior Full Payment of the Obligations and subject to a subordinated intercompany note in  form and substance reasonably satisfactory to the Administrative Agent (the “Subordinated Intercompany Note”).          “Permitted Junior Priority Refinancing Debt” means any Indebtedness Incurred by the Borrower in the form  of one or more series of junior lien secured notes or junior lien secured loans; provided that (i) such Indebtedness is  secured by Liens on the Collateral, all of which are on a junior lien, subordinated basis to the Obligations and the  obligations in respect of any Permitted First Priority Refinancing Debt and (ii) such Indebtedness constitutes Credit  Agreement Refinancing Indebtedness.          “Permitted Liens” means, with respect to any Person:                  (1)    Liens created pursuant to the Collateral Documents;                  (2)    pledges or deposits by such Person under worker’s compensation laws, unemployment         insurance laws or similar legislation, or pledges or 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 secure         public or statutory obligations of such Person or deposits of cash or United States government bonds to         secure surety or appeal bonds to which such Person is a party, 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;                  (3)    Liens imposed by law or in the ordinary course of business (other than in connection with         Indebtedness), such as carriers’, warehousemen’s, landlords’, mechanics’ and materialmen’s Liens, in each         case for sums not yet due or outstanding for no more than 30 days after the applicable due date unless being         contested in good faith by appropriate proceedings in accordance with Applicable Law 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 and Liens arising solely by virtue of any         contractual, statutory or common law provision relating to banker’s Liens, rights of set-off or similar rights         and remedies as to deposit accounts or other funds maintained with a creditor depository institution;         provided, however, that (A) such deposit account is not a dedicated cash collateral account and is not         subject to restrictions against access by the Borrower in excess of those set forth by regulations         promulgated by the FRB and (B) such deposit account is not intended by the Borrower or any Restricted         Subsidiary to provide collateral to the depository institution;                  (4)    Liens for Taxes, assessments or governmental charges or claims not yet subject to         penalties for non-payment or which are being contested in good faith by appropriate proceedings;                  (5)    Liens in favor of issuers of surety bonds or letters of credit issued pursuant to the request         of and for the account of such Person in the ordinary course of its business;                  (6)    minor survey exceptions or other matters that are or would be revealed by a current and         accurate survey of the subject property, minor encumbrances, easements or reservations of, or rights of         others for, licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines and other similar         purposes, or zoning or other restrictions as to the use of real property (including, without limitation,         reciprocal easement agreements, covenant, condition and restriction declarations and agreements,         community, commercial or similar association declarations or similar documents, PUD declarations and         restrictions, in each case, whether public or private) 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;                  (7)    Liens securing (i) Indebtedness Incurred to finance the construction, purchase or lease of,         or repairs, improvements or additions to, property, plant or equipment of such Person or (ii) extraction,         development, operation, production or construction costs for properties containing aggregate reserves;         provided, however, that in the case of clause (i) above, the Lien may not extend to any other property         owned by such Person or any of its Restricted Subsidiaries at the time the Lien is Incurred (other than                                                   36 

 

assets and property affixed or appurtenant thereto) and the Indebtedness (other than any interest thereon)  secured by the Lien may not be Incurred more than 180 days after the later of the acquisition, completion of  construction, repair, improvement, addition or commencement of full operation of the property subject to  the Lien, and, in the case of clause (ii) above, such Lien shall be limited to such property containing  aggregate reserves;           (8)    Liens to secure Permitted Indebtedness Incurred under Section 7.2(b)(i) and any  Refinancing Indebtedness in respect thereof; provided that (a) no such Indebtedness may be secured by any  Lien on any real property with a Fair Market Value in excess of $250,000, unless such real property is  subject to a valid and enforceable Lien in favor of the Administrative Agent to secure the Obligations, (b)  any such Liens on Term Loan Priority Collateral shall be junior relative to the Liens on the Term Loan  Priority Collateral securing the Obligations and (c) the holder of such Liens either (x) is subject to an  Acceptable Intercreditor Agreement consistent with the ABL Intercreditor Agreement or (y) is or agrees to  become bound by the terms of the ABL Intercreditor Agreement on the same basis as the agent under the  ABL Agreement;           (9)    Liens existing as of the Agreement Date that are described on Schedule 7.3;           (10)   Liens on property or shares of Capital Stock of another Person at the time such other  Person becomes a Subsidiary of such Person (other than a Lien Incurred in connection with, or to provide  all or any portion of the funds or credit support utilized to consummate, the transaction or series of  transactions pursuant to which such Person becomes such a Subsidiary); provided, however, that the Liens  may not extend to any other property owned by such Person or any of its Restricted Subsidiaries (other than  assets and property affixed or appurtenant thereto);           (11)   Liens on property at the time such Person or any of its Subsidiaries acquires the property,  including any acquisition by means of a merger or consolidation with or into such Person or a Subsidiary of  such Person (other than a Lien Incurred in connection with, or to provide all or any portion of the funds or  credit support utilized to consummate, the transaction or series of transactions pursuant to which such  Person or any of its Subsidiaries acquired such property); provided, however, that the Liens may not extend  to any other property owned by such Person or any of its Restricted Subsidiaries (other than assets and  property affixed or appurtenant thereto);           (12)   Liens securing Indebtedness or other obligations of a Subsidiary of such Person owing to  such Person or a Restricted Subsidiary of such Person so long as such Indebtedness is permitted to be  Incurred under the Agreement;           (13)   Liens securing Hedging Obligations so long as such Hedging Obligations are permitted to  be Incurred under Section 7.2(b)(viii);           (14)   Liens to secure any Refinancing (or successive Refinancings) as a whole, or in part, of  any Indebtedness secured by any Lien referred to in clause (7), (9), (10), (11) or (13) of this definition;  provided, however, that:                  (A)    such new Lien shall be limited to all or part of the same property and assets that          secured or, under the written agreements pursuant to which the original Lien arose, could secure          the original Lien; and                  (B)    the Indebtedness secured by such Lien at such time is not increased to any          amount greater than the sum of (x) the outstanding principal amount or, if greater, committed          amount of the Indebtedness described under clause (7), (9), (10) or (11) at the time the original          Lien became a Permitted Lien or, in the case of clause (13), the termination value of such Hedging          Obligation at the time of such termination, and (y) an amount necessary to pay any accrued but          unpaid interest, fees and expenses, including premiums, related to such Refinancing.                                            37 

 

        (15)   Liens Incurred to secure Cash Management Arrangements;           (16)   Liens on assets pursuant to merger agreements, stock or asset purchase agreements and  similar agreements limiting the disposition of such assets pending the closing of the transactions  contemplated thereby;           (17)   Liens on insurance policies and the proceeds thereof and other deposits securing the  financing of the premiums with respect thereto;           (18)   Liens on any cash earnest money deposits or installment payments made by the Borrower  or any Restricted Subsidiary in connection with any letter of intent or purchase agreement;           (19)   Liens upon specific items of inventory or other goods and proceeds of any Person  securing such Person’s obligations in respect of bankers’ acceptances issued or created for the account of  such Person to facilitate the purchase, shipment or storage of such inventory or other goods;           (20)   Liens encumbering deposits made to secure obligations arising from statutory, regulatory,  contractual or warranty requirements of the Borrower or any Restricted Subsidiary, including rights of  offset and setoff;           (21)   leases, Licenses, subleases and sublicenses granted to others that do not materially  interfere with the ordinary course of business of the Borrower or any Restricted Subsidiary;           (22)   Liens arising from filing precautionary UCC financing statements regarding leases;           (23)   Liens securing obligations at any one time outstanding that do not in the aggregate  exceed the greater of (x) $100,000,000 and (y) 15.0% of Consolidated Net Tangible Assets at the time such  Liens are granted or at any time that such obligations are Incurred; provided that (1) no such obligations  may be secured by any Lien on any real property with a Fair Market Value in excess of $250,000, unless  such real property is subject to a valid and enforceable Lien in favor of the Administrative Agent to secure  the Obligations, and (2) if any Liens Incurred pursuant to this clause (23) extend to, or encumber, assets  that constitute Collateral, then (A) no such Lien on any Collateral may be senior or prior to the  Administrative Agent’s Lien therein and (B) the holders of the Indebtedness or other obligations secured  thereby (or a representative or trustee on their behalf) shall enter into an Acceptable Intercreditor  Agreement providing that the Liens on the Collateral securing such Indebtedness or other obligations shall  rank, at the option of the Borrower, either equal in priority with, or junior to, the Liens on the Collateral  securing the Obligations;           (24)   Liens 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;           (25)   Liens on cash, Temporary Cash Investments or other property arising in connection with  the defeasance, discharge or redemption of Indebtedness;           (26)   Liens arising out of conditional sale, title retention, consignment or similar arrangements  for the sale of goods entered into in the ordinary course of business;           (27)   customary Liens granted in favor of a trustee to secure fees and other amounts owing to  such trustee under an indenture or other agreement pursuant to which Indebtedness not prohibited by this  Agreement is issued;           (28)   Liens encumbering property or assets under construction arising from progress or partial  payments by a customer of the Borrower or any of its Restricted Subsidiaries relating to such property or                                            38 

 

       assets; provided that such Liens shall not extend to any asset other than the specified asset being         constructed;                  (29)   with respect to any real property leased by the Borrower or any Restricted Subsidiary,         any Liens (i) on the title of such property not created by the Borrower or such Restricted Subsidiary, as         applicable, or (ii) arising pursuant to the terms and conditions of the applicable lease;                   (30)   Liens securing Indebtedness permitted to be Incurred under Section 7.2 if (i) at the time         such Liens are granted, after giving pro forma effect to such Liens and to any concurrent Incurrence of         Indebtedness secured by such Liens, and (ii) at the time of any subsequent Incurrence of Indebtedness         secured by such Liens, after giving pro forma effect to such Incurrence of Indebtedness, in each case, the         Consolidated Secured Leverage Ratio is no greater than 3.00 to 1.0; provided that (x) no such Indebtedness         may be secured by any Lien on any real property with a Fair Market Value in excess of $250,000, unless         such real property is subject to a valid and enforceable Lien in favor of the Administrative Agent to secure         the Obligations, and (y) if any Liens Incurred pursuant to this clause (30) extend to, or encumber, assets         that constitute Collateral, then (1) no such Lien on any Collateral may be senior or prior to the         Administrative Agent’s Lien therein and (2) the holders of the Indebtedness or other obligations secured         thereby (or a representative or trustee on their behalf) shall enter into an Acceptable Intercreditor         Agreement providing that the Liens on the Collateral securing such Indebtedness or other obligations shall         rank, at the option of the Borrower, either equal in priority with, or junior to, the Liens on the Collateral         securing the Obligations.  For purposes of this clause (30), (A) Indebtedness outstanding under clauses         (b)(i) and (b)(xii) of Section 7.2 shall not be included in clause (x) of Consolidated Secured Leverage         Ratio, (B) all undrawn Initial Term Loan Commitments in effect at such time shall be deemed drawn and         the aggregate principal amount of Term Loans in respect thereof shall be included in clause (x) of         Consolidated Secured Leverage Ratio and (C) the Borrower may on any date treat any other undrawn         committed amount of Indebtedness secured by such Liens as Indebtedness Incurred on such date, and any         subsequent Incurrence of such Indebtedness under and not in excess of such commitment shall not         constitute an Incurrence for purposes of this clause (30); provided that, for all purposes under this         Agreement, in connection with any such election, such undrawn commitment shall be treated as secured         Indebtedness and, subject to clause (A) of this sentence, shall be included in clause (x) of Consolidated         Secured Leverage Ratio with respect to any subsequent Incurrence of Indebtedness that is not Incurred         under such commitment;                   (31)   to the extent such Liens are limited to specific properties containing aggregate reserves,         interests therein and production therefrom, (A) Liens securing Royalty Interests and (B) Liens securing         obligations Incurred in connection with the purchase or sale of, or the transportation or distribution of,         aggregate;                   (32)   Liens securing Refinancing Indebtedness permitted under Section 7.2;                  (33)   Liens securing Incremental Equivalent Debt to the extent permitted to be Incurred         pursuant to Section 2.12(g); provided that in each case, the relative Lien priority in respect of any such         Indebtedness shall be set forth in an Acceptable Intercreditor Agreement; and                  (34)   Liens securing Permitted First Priority Refinancing Debt and Permitted Junior Priority         Refinancing Debt.          For purposes of this definition a Lien securing Indebtedness may also secure other obligations with respect  to such Indebtedness.          For  purposes  of  determining  compliance  with  this  definition,  (A)  Liens  need  not  be  Incurred  solely  by  reference to one category of Permitted Liens described in this definition but are permitted to be Incurred under any  combination thereof and of any other available exemption and (B) in the event that a Lien (or any portion thereof)  meets the criteria of one or more of the categories of Permitted Liens, the Borrower shall, in its sole discretion, classify  such Lien (or any portion thereof) in any manner that complies with this definition.                                                   39 

 

       In each case set forth above, notwithstanding any stated limitation on the assets or property that may be  subject to such Lien, a Permitted Lien on a specified asset or property or group or type of assets or property may  include Liens on all improvements, repairs, additions, attachments and accessions thereto, assets and property affixed  or appurtenant thereto, parts, replacements and substitutions therefor, and all products and proceeds thereof, including  dividends, distributions, interest and increases in respect thereof.          “Permitted Unsecured Refinancing Debt” means any Indebtedness Incurred by the Borrower in the form of  one or more series of senior unsecured notes or senior unsecured loans; provided that such Indebtedness constitutes  Credit Agreement Refinancing Indebtedness.          “Person” means any natural person, corporation, limited liability company, trust, joint venture, association,  company, partnership, Governmental Authority or other entity.          “Plan” means any employee benefit plan within the meaning of Section 3(3) of ERISA (including a  Pension Plan), maintained for employees of the Borrower or any ERISA Affiliate or any such Plan to which the  Borrower or any ERISA Affiliate is required to contribute on behalf of any of its employees.          “Platform” has the meaning specified in Section 6.2.          “Post-Closing Payments” has the meaning specified in clause (9) of the definition of “Indebtedness”.          “Preferred Stock” of a Person as applied to the Capital Stock of any Person, means Capital Stock of any class  or  classes  (however  designated)  which  is  preferred  as  to  the  payment  of  dividends  or  distributions,  or  as  to  the  distribution of assets upon any voluntary or involuntary liquidation or dissolution of such Person, over shares of  Capital Stock of any other class of such Person.          “Prepayment Premium Period” has the meaning specified in Section 2.3(a)(ii).          “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.          “Public Lender” has the meaning specified in Section 6.2.          “Public-Side Version” has the meaning specified in Section 6.2.          “Purchase Money Indebtedness” means Indebtedness (including Capital Lease Obligations) (a) consisting of  the deferred purchase price of property, conditional sale obligations, obligations under any title retention agreement,  other purchase money obligations and obligations in respect of industrial revenue bonds or similar Indebtedness, in  each  case  where  the  maturity  of  such  Indebtedness  does  not  exceed  the  anticipated useful  life of  the  asset  being  financed, and (b) Incurred to finance the acquisition by the Borrower or a Restricted Subsidiary of such asset, including  additions and improvements, in the ordinary course of business; provided, however, that any Lien arising in connection  with  any  such  Indebtedness  shall  be  limited  to  the  specific  asset  being  financed  and  all  improvements,  repairs,  additions, attachments and accessions thereto, assets and property affixed or appurtenant thereto, parts, replacements  and  substitutions  therefor,  and  all  products  and  proceeds  thereof,  including  dividends,  distributions,  interest  and  increases in respect thereof; provided further, however, that such Indebtedness is Incurred within 180 days after such  acquisition of such assets.          “Quarry Property” shall mean each Material Real Property that is operated as a quarry or aggregate mine,  together with all contiguous land that is owned by Borrower or the applicable Subsidiary for the purpose of ongoing  or future mineral or aggregate extraction, but in each case, excluding the Excluded Real Property Interests.          “QFC Credit Support” has the meaning specified in Section 11.21.          “Qualified Capital Stock” of a Person means Capital Stock of such Person other than Disqualified Stock;  provided,  however,  that  such  Capital  Stock  shall  not  be  deemed  Qualified  Capital  Stock  to  the  extent  sold  to  a                                                   40 

 

Subsidiary of such Person or financed, directly or indirectly, using funds (1) borrowed from such Person or any  Subsidiary of such Person or (2) contributed, extended, guaranteed or advanced by such Person or any Subsidiary of  such Person (including, in respect of any employee stock ownership or benefit plan). Unless otherwise specified,  Qualified Capital Stock refers to Qualified Capital Stock of the Borrower.          “Ratio-Based Incremental Debt” has the meaning specified in Section 2.12(b).          “Real Estate” means all right, title and interest (whether as owner, lessor or lessee) in any real property or  any buildings, structures, parking areas or other improvements thereon.          “Recipient” means the Administrative Agent, any Lender or any other recipient of any payment to be made  by or on account of any obligation of any Loan Party hereunder.          “Recovery Event” means any settlement of, or payment in respect of, any property or casualty insurance  claim or any condemnation proceeding relating to any asset of the Borrower or any Restricted Subsidiary.          “Refinance”  means,  in  respect  of  any  Indebtedness,  to  refinance,  extend,  renew,  refund,  repay,  prepay,  purchase, redeem, defease or retire, or to issue other Indebtedness in exchange or replacement (whether upon or after  termination or otherwise) for, such Indebtedness. “Refinanced” and “Refinancing” shall have correlative meanings.          “Refinanced Debt” has the meaning specified in Section 2.14(a).          “Refinancing Amendment” has the meaning specified in Section 2.14(f).          “Refinancing Closing Date” has the meaning specified in Section 2.14(e).          “Refinancing Indebtedness” means Indebtedness that Refinances any Indebtedness of the Borrower or any  Restricted Subsidiary Incurred in compliance with this Agreement; provided, however, that:          (1)   (a) if the Stated Maturity of the Indebtedness being Refinanced is equal to or earlier than the Maturity               Date, such Refinancing Indebtedness has a Stated Maturity no earlier than the Stated Maturity of the               Indebtedness being Refinanced (provided that, notwithstanding the foregoing, if the Indebtedness of               the Borrower or any Restricted Subsidiary being Refinanced constitutes Subordinated Obligations or               Specified Junior Indebtedness, then the Refinancing Indebtedness shall have a Stated Maturity of at               least  91  days  after  the  Maturity  Date)  and  (b)  if  the  Stated  Maturity  of  the  Indebtedness  being               Refinanced is later than the Maturity Date, the Refinancing Indebtedness has a Stated Maturity of at               least 91 days after the Maturity Date;          (2)   such Refinancing Indebtedness has a Weighted Average Life to Maturity at the time such Refinancing               Indebtedness is Incurred that is equal to or greater than the Weighted Average Life to Maturity of the               Indebtedness being Refinanced;          (3)   such Refinancing Indebtedness has an aggregate principal amount (or if Incurred with original issue               discount, an aggregate issue price) that is equal to or less than the aggregate principal amount (or if               Incurred with original issue discount, the aggregate accreted value) then outstanding (and accrued and               unpaid interest and any related fees and expenses in connection with such Refinancing, including any               premium and defeasance costs and any premium paid in connection with a tender offer for such               Indebtedness) under the Indebtedness being Refinanced, or, with respect to Hedging Obligations, such               Refinancing  Indebtedness  has  an  aggregate  principal  amount  that  is  equal  to  or  less  than  the               termination value of such Hedging Obligation at the time of such termination;           (4)   if the Indebtedness being Refinanced (a) is subordinated in right of payment to the Obligations, such               Refinancing Indebtedness is subordinated in right of payment to the Obligations at least to the same               extent  as  the  Indebtedness  being  Refinanced,  (b)  constitutes  Specified  Junior  Indebtedness,  such               Refinancing Indebtedness is subject to the same Lien priority as the Indebtedness being Refinanced                                                   41 

 

             (or is secured by Liens junior in priority to such Liens) or is unsecured or (c) is unsecured, such               Refinancing Indebtedness is unsecured;           (5)   the Refinancing Indebtedness shall not include (a) Indebtedness of a Subsidiary that is not a Guarantor               that Refinances Indebtedness of the Borrower or a Guarantor or (b) Indebtedness of the Borrower or               a Restricted Subsidiary that Refinances Indebtedness of an Unrestricted Subsidiary;           (6)   such  Refinancing  Indebtedness  shall  not  be  Guaranteed  by  any  Person  that did not  Guarantee  the               Indebtedness being Refinanced; and          (7)   if such Indebtedness being Refinanced is secured (a) such Refinancing Indebtedness shall either be (x)               unsecured or (y) secured, and if secured, the Liens securing the Refinancing Indebtedness shall either               be equal in priority with, or junior to, the Liens securing the Indebtedness being Refinanced (and the               holders  of  such  Refinancing  Indebtedness  shall  be  required  to  become  subject  to  an  Acceptable               Intercreditor Agreement)  and (b) such Refinancing Indebtedness, if secured, shall not be secured by               any assets that did not secure the obligations being Refinanced and may not be secured pursuant to               any  security  documentation  that  is  more  restrictive  to  the  Borrower  and  the  Guarantors  than  this               Agreement and the other Loan Documents.          “Refinancing Term Commitments” has the meaning specified in Section 2.14(a).          “Refinancing Term Lender” has the meaning specified in Section 2.14(b).          “Refinancing Term Loan” has the meaning specified in Section 2.14(c).          “Refinancing Term Loan Request” has the meaning specified in Section 2.14(a).          “Register” has the meaning specified in Section 11.6(c).          “Reinvestment Prepayment Date” means, with respect to any Asset Disposition or Recovery Event, the date  occurring twelve (12) months after such Asset Disposition or Recovery Event or, if the Borrower or any Restricted  Subsidiary shall have entered into a definitive binding agreement or commitment to reinvest in Additional Assets that  is executed or approved within twelve (12) months after such Asset Disposition or Recovery Event, the date occurring  eighteen (18) months after such Asset Disposition or Recovery Event, as applicable.           “Related Business” means any business in which the Borrower or any of the Restricted Subsidiaries was  engaged on the Agreement Date and any business that is in the good faith judgment of the Borrower related, ancillary  or complementary to any such business.          “Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors,  officers,  employees,  agents,  trustees,  administrators,  managers,  advisors,  consultants,  service  providers  and  representatives of such Person and of such Person’s Affiliates.          “Release” means any release, spill, emission, discharge, deposit, disposal, leaking, pumping, pouring,  dumping, emptying, injection or leaching into the Environment, or into, from or through any building, structure or  facility.          “Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New  York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve  Bank of New York for the purpose of recommending a benchmark rate to replace LIBOR in loan agreements similar  to this Agreement.          “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than events for  which the 30 day notice period has been waived.                                                   42 

 

       “Repricing Transaction” means, in connection with a transaction the primary purpose of which is to prepay,  refinance, substitute or replace the Initial Term Loans or to amend this Agreement to reduce the “effective yield”  thereof (as reasonably determined by the Administrative Agent consistent with generally accepted financial practice  and, in any event, excluding any bona fide arrangement fees, syndication fees, structuring fees, commitment fees,  underwriting fees and similar fees (regardless of whether paid, in whole or in part, to any or all lenders or holders of  such Indebtedness) or other fees not paid generally to all lenders or holders of such Indebtedness) (“Effective Yield”),  (a) the prepayment, refinancing, substitution or replacement of all or a portion of the Initial Term Loans with the  Incurrence of any Long-Term Indebtedness under this Agreement or otherwise in the form of term loans Incurred  pursuant to a credit agreement with terms (including with respect to maturity date) that are substantially similar to  those contained in this Agreement, in each case, by the Borrower or any of the Restricted Subsidiaries having an  Effective Yield at the time of Incurrence thereof that is less than the Effective Yield (calculated on the same basis) of  such Initial Term Loans at the time of Incurrence thereof, or (b) any amendment to this Agreement that reduces the  Effective Yield of such Initial Term Loans (calculated on the same basis). No “Repricing Transaction” shall be deemed  to occur as a result of (i) a transaction related to or in connection with any Change of Control, (ii) any Incurrence of  Indebtedness in aggregate principal amount in excess of the principal amount of the then-outstanding Initial Term  Loans  in  connection  with  a  Transformative  Acquisition,  (iii)  any  Incurrence  of  Indebtedness  evidenced  by  any  agreement other than (x) this Agreement or (y) any term loan credit agreement that contains terms (including with  respect to maturity date) that are substantially similar to the terms contained in this Agreement, or (iv) any Incurrence  of Indebtedness in the form of debt securities.          “Required Class Lenders” means, at any time with respect to any Class of Term Loans or Commitments,  Lenders  having  Term  Loan  Exposure  with  respect  to  such  Class  representing  more  than  50%  of  the  Term  Loan  Exposures of all Lenders of such Class.  The Term Loan Exposure of any Defaulting Lender with respect to such Class  shall be disregarded in determining Required Class Lenders at any time.          “Required Lenders” means, at any time, Lenders having or holding Term Loan Exposure representing more  than 50% of the sum of the aggregate Term Loan Exposure of all Lenders (excluding the Term Loan Exposure of any  Lender that is a Defaulting Lender).          “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial Institution,  a UK Resolution Authority.          “Responsible Officer” means the chairman of the board, president, chief executive officer, chief financial  officer, or vice president of finance, controller, treasurer or similar officer of the Borrower or, if the context requires,  another Loan Party.          “Restricted Payments” means with respect to any Person:                  (1)    the declaration or payment of any dividends or any other distributions of any sort in respect         of its Capital Stock (including any payment in respect of its Capital Stock in connection with any merger or         consolidation involving such Person) or similar payment to the direct or indirect holders of its Capital Stock         (other than (A) dividends or distributions payable solely in its Capital Stock (other than Disqualified Stock),         (B) dividends or distributions payable solely to the Borrower or a Restricted Subsidiary and (C) pro rata        dividends or other distributions made by a Subsidiary to minority stockholders (or owners of an equivalent         interest in the case of a Subsidiary that is an entity other than a corporation));                  (2)    the  purchase,  repurchase,  redemption, defeasance  or  other  acquisition  or retirement  for         value of any Capital Stock of the Borrower held by any Person (other than by a Restricted Subsidiary) other         than in exchange for Capital Stock of the Borrower that is not Disqualified Stock;                  (3)    the  purchase,  repurchase,  redemption, defeasance  or  other  acquisition  or retirement  for         value,  prior  to  scheduled  maturity,  scheduled  repayment  or  scheduled  sinking  fund  payment  of  any         Subordinated Obligations or Specified Junior Indebtedness of the Borrower or any Restricted Subsidiary         (other than (A) from the Borrower or a Restricted Subsidiary or (B) the purchase, repurchase, redemption,         defeasance or other acquisition or retirement of Subordinated Obligations or Specified Junior Indebtedness         made in anticipation of satisfying a sinking fund obligation, principal installment or final maturity, in each                                                  43 

 

       case  due  within  one  (1)  year  of  the  date  of  such  purchase,  repurchase,  redemption,  defeasance  or  other         acquisition or retirement); or                  (4)    the making of any Investment (other than a Permitted Investment) in any Person;          The amount of any Restricted Payment if made otherwise than in cash will be Fair Market Value of the assets  subject thereto.          “Restricted Subsidiary” means any Subsidiary of the Borrower that is not an Unrestricted Subsidiary.          “Restrictive Agreement” an agreement (other than a Loan Document) that conditions or restricts the right of  the Borrower, any other Loan Party or any of their respective Subsidiaries to Incur or repay any Indebtedness for  borrowed money, to grant Liens on any assets, to declare or make dividends or distributions, to modify, extend or  renew any agreement evidencing Indebtedness for borrowed money, or to repay any intercompany Indebtedness.          “Retained Declined Proceeds” has the meaning specified in Section 2.3(b)(iv).          “Royalties” means all royalties, fees, expense reimbursement and other amounts payable by any Loan Party  under a License.          “Royalty Interests” means any royalty, overriding royalty, net profits interest, production payment, master  limited partnership interest or other interest in properties containing aggregate reserves or the right to receive (or to  cause  another  Person  to  receive)  all  or  a  portion  of  the  production  or  the  proceeds  from  the  sale  of  production  attributable to such reserves.          “S&P” means Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc., and any successor  thereto.          “Sale/Leaseback  Transaction”  means  an  arrangement  relating  to  property  owned  by  the  Borrower  or  a  Restricted  Subsidiary  on  the  Agreement  Date  or  thereafter  acquired  by  the  Borrower  or  a  Restricted  Subsidiary  whereby the Borrower or a Restricted Subsidiary transfers such property to a Person (other than the Borrower or a  Restricted Subsidiary) and the Borrower or a Restricted Subsidiary leases it from such Person.          “Sanctions”  means  any  sanctions  administered  or  enforced  by  the  United  States  Government  (including  without  limitation,  OFAC),  the  United  Nations  Security  Council,  the  European  Union,  Her  Majesty’s  Treasury  (“HMT”) or other relevant sanctions authority.          “Scheduled Unavailability Date” has the meaning specified in Section 3.3(c)(ii).          “SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any  of its principal functions.          “Section 2.13 Additional Amendment” has the meaning specified in Section 2.13(d).          “Secured Parties” means, collectively, the Administrative Agent, the Lenders, each co-agent or sub-agent  appointed by the Administrative Agent from time to time pursuant to Section 9.5, and the other Persons the Obligations  owing to which are or are purported to be secured by the Collateral under the terms of the Collateral Documents.          “Security Agreement” means the Security Agreement, dated as of the Agreement Date, among the Borrower,  the Guarantors party thereto and the Administrative Agent, for the benefit of the Secured Parties, as amended, amended  and restated, modified or supplemented from time to time.          “Senior Indebtedness” means with respect to any Person:          (1)  Indebtedness of such Person, whether outstanding on the Agreement Date or thereafter Incurred; and                                                   44 

 

       (2)  all other obligations of such Person (including interest accruing on or after the filing of any petition in              bankruptcy or for reorganization relating to such Person whether or not post-filing interest is allowed              in such proceeding) in respect of Indebtedness described in clause (1) above, unless, in the case of              clauses (1) and (2), in the instrument creating or evidencing the same or pursuant to which the same is              outstanding,  it  is  provided  that  such  Indebtedness  or  other  obligations  are  subordinate  in  right  of              payment to the Obligations or the Guaranteed Obligations, as the case may be; provided, however, that              Senior Indebtedness shall not include:               (A)       any obligation of such Person to the Borrower or any Subsidiary of the Borrower;               (B)       any liability for Federal, state, local or other Taxes owed or owing by such Person;               (C)       any accounts payable or other liability to trade creditors arising in the ordinary course of                        business;               (D)       any Capital Stock;               (E)       any Indebtedness or other obligation of such Person that is subordinate in right of payment                        to any other Indebtedness or other obligation of such Person;               (F)       that portion of any Indebtedness that at the time of Incurrence was Incurred in violation of                        this Agreement;               (G)       any Indebtedness, which, when Incurred and without respect to any election under Section                        1111(b) of Title 11, United States Code, is without recourse to such Person;               (H)       any Indebtedness of or amounts owed by such Person for compensation to employees or                        for services rendered to another Person; and               (I)       Indebtedness of such Person to a Subsidiary or any other Affiliate or any such Affiliate’s                        Subsidiaries.          “Significant Subsidiary” means any Restricted Subsidiary that would be a “Significant Subsidiary” of the  Borrower  within  the  meaning  of  Rule 1-02  under  Regulation S-X  promulgated  by  the  SEC  and,  for  purpose  of  determining whether an Event of Default has occurred, any group of Restricted Subsidiaries that combined would be  such a Significant Subsidiary.          “SOFR”  with respect to any day means the secured overnight financing rate published for such day by the  Federal Reserve Bank of New York, as the administrator of the benchmark (or a successor administrator) on the  Federal Reserve Bank of New York’s website (or any successor source) and, in each case, that has been selected or  recommended by the Relevant Governmental Body.          “SOFR-Based Rate” means SOFR or Term SOFR.         “Solvent” and “Solvency” means, with respect to any Person on any date of determination, that on such  date (i) the sum of the debt (including contingent liabilities) of such Person and its Subsidiaries, taken as a whole,  does not exceed the fair saleable value (on a going concern basis) of the assets of such Person and its Subsidiaries,  taken as a whole; (ii) the capital of such Person and its Subsidiaries, taken as a whole, is not unreasonably small in  relation to the business of such Person and its Subsidiaries, taken as a whole, contemplated as of such date; and (iii)  such Person and its Subsidiaries, taken as a whole, do not intend to Incur debts (including current obligations and  contingent liabilities) beyond their ability to pay such debts as they mature in the ordinary course of business. For  the purposes hereof, the amount of any contingent liability at any time shall be computed as the amount that, in light  of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to  become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual  under Statement of Financial Accounting Standard No. 5).                                                   45 

 

       “Specified Default” means any Event of Default pursuant to clauses (a) or (f) of Section 8.1.          “Specified Junior Indebtedness” means, with respect to a Person, any Long-Term Indebtedness for borrowed  money of such Person (whether outstanding on the Agreement Date or thereafter Incurred) which (a) is secured by  Liens, all of which are junior to the Liens securing the Obligations under the Loan Documents or (b) is unsecured.          “Specified Representations” means the representations and warranties set forth in the first sentence of Section  5.1 (but only as to due organization and valid existence), the first sentence and clause (b) of the second sentence of  Section 5.2, Section 5.3, Section 5.4, the last sentence of Section 5.5(a), Section 5.5(b), Section 5.7, Section 5.21,  Section 5.22 and, solely with respect to the use of proceeds of any applicable Borrowing hereunder, Sections 5.23 and  5.24.          “Start Date” means June 7, 2016.          “Stated Maturity” means, with respect to any security, the date specified in such security as the fixed date on  which  the  final  payment  of  principal  of  such  security  is  due  and  payable,  including  pursuant  to  any  mandatory  redemption provision (but excluding any provision providing for the repurchase of such security at the option of the  holder thereof upon the happening of any contingency unless such contingency has occurred).          “Subordinated Intercompany Note” has the meaning specified in the definition of “Permitted Investment”.          “Subordinated  Obligation”  means,  with  respect  to  a  Person,  any  Indebtedness  of  such  Person  (whether  outstanding  on  the  Agreement  Date  or  thereafter  Incurred)  which  is  subordinate  in  right  of  payment  to  any  Indebtedness under the Loan Documents or the Guaranty of any Guarantor hereunder, as the case may be, pursuant to  a written agreement to that effect, except any Indebtedness that is subject to Lien subordination but not payment  subordination.          “Subsidiary”  of  a  Person  means  any  corporation,  association,  partnership,  limited  liability  company,  unlimited liability company, joint venture or other business entity of which more than fifty percent (50%) of the Voting  Stock (in the case of Persons other than corporations), is owned or controlled directly or indirectly by the Person, or  one or more of the Subsidiaries of the Person, or a combination thereof.  Unless the context otherwise clearly requires,  references herein to a “Subsidiary” refer to a Subsidiary of the Borrower.          “Successor Borrower” has the meaning specified in Section 7.8(a).          “Supported QFC” has the meaning specified in Section 11.21.          “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions,  forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity  index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price  or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions,  floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency  options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any  options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any  master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to  the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and  Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master  agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any  such obligations or liabilities under any Master Agreement.          “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.          “Temporary Cash Investments” means any of the following:                                                   46 

 

       (1)     any  investment  in  direct  obligations  of  the  United  States  of  America  or  any  agency  thereof  or  obligations guaranteed by the United States of America or any agency thereof;          (2)     investments in demand and time deposit accounts, certificates of deposit and money market deposits  maturing within 270 days of the date of acquisition thereof issued by a bank or trust company which is organized  under the laws of the United States of America, any State thereof or any foreign country recognized by the United  States of America, and which bank or trust company has capital, surplus and undivided profits aggregating in excess  of $50,000,000 (or the foreign currency equivalent thereof) and has outstanding debt which is rated “A” (or such  similar equivalent rating) or higher by at least one nationally recognized statistical rating organization (as defined in  Rule 436 under the Securities Act) or any money-market fund sponsored by a registered broker dealer or mutual fund  distributor;          (3)     repurchase obligations with a term of not more than 180 days for underlying securities of the types  described in clause (1) above entered into with a bank meeting the qualifications described in clause (2) above;          (4)     investments in commercial paper, maturing not more than 270 days after the date of acquisition,  issued by a corporation (other than an Affiliate of the Borrower) organized and in existence under the laws of the  United States of America or any foreign country recognized by the United States of America with a rating at the time  as of which any investment therein is made of “P-2” (or higher) according to Moody’s Investors Service, Inc. or “A- 2” (or higher) according to S&P;          (5)     investments in securities with maturities of nine (9) months or less from the date of acquisition  issued or fully guaranteed by any state, commonwealth or territory of the United States of America, or by any political  subdivision or taxing authority thereof, and rated at least “A-” by Standard & Poor’s Ratings Services or “A3” by  Moody’s;          (6)     investments in money market funds that invest substantially all their assets in securities of the types  described in clauses (1) through (5) above; and          (7)     in the case of a Foreign Subsidiary or any other Restricted Subsidiary that conducts business outside  of the United States, investments of a type similar to those referred to in clauses (1) through (6) above and comparable  in credit quality and tenor to those referred to in such clauses that are, in each case, commonly used by businesses for  cash management purposes in the applicable jurisdictions to the extent advisable in connection with any business  conducted by the Borrower or any Restricted Subsidiary, all as determined in good faith by the Borrower.          “Term Loan Exposure” means, with respect to any Lender, as of any date of determination, the outstanding  principal amount of the Term Loans of such Lender and all the Commitments of such Lender in effect at such time.          “Term Loan Extension Series” has the meaning specified in Section 2.13(c).          “Term Loan Increase” has the meaning specified in Section 2.12(a).          “Term Loan Priority Collateral” has the meaning specified in the ABL Intercreditor Agreement.          “Term Loans” means, collectively, all loans and advances provided for in ARTICLE II.          “Term SOFR”  means the forward-looking term rate for any period that is approximately (as determined by  the Administrative Agent) as long as any of the Interest Period options set forth in the definition of “Interest Period”  and that is based on SOFR and that has been selected or recommended by the Relevant Governmental Body, in each  case as published on an information service as selected by the Administrative Agent from time to time in its  reasonable discretion.          “Threshold Amount” means $25,000,000.          “Trade Date” has the meaning specified in Section 11.6(g).                                                   47 

 

       “Transactions” means, collectively, (a) the execution, delivery and performance by the Loan Parties of the  Loan Documents to which they are a party and the making of the Term Loans hereunder, (b) the payment of related  fees and expenses in connection with each of the foregoing and (c) the use of proceeds of the Initial Term Loans as  described in Section 6.11.          “Transformative  Acquisition”  means  any  material  Permitted  Acquisition  by  the  Borrower  or  any  of  the  Restricted Subsidiaries of or with a third party that is either (a) not permitted by the terms of the Loan Documents  immediately prior to the signing or consummation of such Permitted Acquisition or (b) if permitted by the terms of  the Loan Documents immediately prior to the signing or consummation of such Permitted Acquisition, would not  provide the Borrower and the Restricted Subsidiaries with adequate flexibility under the Loan Documents for the  continuation  and/or  expansion  of  their  combined  operations  following  such  consummation  (in  each  case,  as  conclusively determined by the Borrower in good faith).          “Type” means any type of a Term Loan determined with respect to the interest option applicable thereto,  which shall be a Eurodollar Rate Term Loan or a Base Rate Term Loan.          “UCC”  means  the  Uniform  Commercial  Code  as  in  effect  in  the  State  of  New  York;  provided  that,  if  perfection or the effect of perfection or non-perfection or the priority of any security interest in any Collateral is  governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, “UCC”  means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the  provisions hereof relating to such perfection, effect of perfection or non-perfection or priority.          “UK Financial Institution” means any BRRD Undertaking (as such term is defined under the PRA Rulebook  (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person  falling within 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.          “Unfunded  Pension  Liability”  means  the  excess  of  a  Pension  Plan’s  benefit  liabilities  under  Section  4001(a)(16)  of  ERISA,  over  the  current  value  of  that  Pension  Plan’s  assets,  determined  in  accordance  with  the  assumptions used for funding the Pension Plan pursuant to the Code, ERISA or the Pension Protection Act of 2006  for the applicable plan year.          “United States” and “U.S.” mean the United States of America.          “Unrestricted Subsidiary” means:          (1)     any Subsidiary of the Borrower that at the time of determination shall be designated an Unrestricted  Subsidiary by the Board of Directors of the Borrower in the manner provided below; and          (2)     any Subsidiary of an Unrestricted Subsidiary.          The Board of Directors of the Borrower may designate any Subsidiary of the Borrower (including any newly  acquired  or  newly  formed  Subsidiary)  to  be  an  Unrestricted  Subsidiary  unless  such  Subsidiary  or  any  of  its  Subsidiaries owns any Capital Stock or Indebtedness of, or holds any Lien on any property of, the Borrower or any  other Subsidiary of the Borrower that is not a Subsidiary of the Subsidiary to be so designated; provided, however,  that either (A) the Subsidiary to be so designated has total assets of $1,000 or less or (B) if such Subsidiary has assets  greater than $1,000, such designation would be permitted under Section 7.1 and the final paragraph of the definition  of the term “Investment.”          The  Board  of  Directors  of  the  Borrower  may  designate  any  Unrestricted  Subsidiary  to  be  a  Restricted  Subsidiary; provided, however, that immediately after giving effect to such designation (x) the Borrower could Incur                                                   48 

 

$1.00 of Coverage Indebtedness pursuant to Section 7.2(a) and (B) no Default shall have occurred and be continuing.  Any such designation by the Board of Directors of the Borrower shall be evidenced to the Administrative Agent by  promptly delivering to the Administrative Agent a copy of the resolution of the Board of Directors of the Borrower  giving  effect  to  such  designation  and  an  Officers’  Certificate  certifying  that  such  designation  complied  with  the  foregoing provisions.  Each Unrestricted Subsidiary as of the Agreement Date shall be set forth in Schedule 1.4.   Notwithstanding  the  foregoing,  for  so  long  as  the  ABL  Agreement  is  in  effect,  in  no  event  shall  any  Domestic  Subsidiary that is a “Restricted Subsidiary” under the ABL Agreement (to the extent such concept applies under the  ABL Agreement at such time) be deemed an Unrestricted Subsidiary hereunder.          “U.S. Person” means any Person that is a “United States Person” as defined in Section 7701(a)(30) of the  Code.          “U.S. Special Resolution Regimes” has the meaning specified in Section 11.21.          “U.S. Tax Compliance Certificate” has the meaning specified in Section 3.1(e)(ii)(B)(III).          “Voting Stock” of a Person means all classes of Capital Stock of such Person then outstanding and normally  entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees  thereof.          “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of  years obtained by dividing (a) the sum of the products obtained by multiplying (i) the amount of each then remaining  installment, sinking fund, serial maturity or other required payment of principal (excluding nominal amortization),  including payment at final maturity, in respect thereof, by (ii) the number of years (calculated to the nearest 1/12) that  will elapse between such date and the making of such payment by (b) the then outstanding principal amount of such  Indebtedness.           “Wholly-Owned  Subsidiary” means,  with  respect  to  any  Person,  a  Subsidiary  of  such Person,  all  of  the  Capital Stock of which (other than directors’ qualifying shares or nominee or other similar shares required pursuant  to Applicable Law) are owned by such Person or another Wholly-Owned Subsidiary of such Person.          “Withholding Agent” means the Borrower and the Administrative Agent.          “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.          1.2     Other Interpretive Provisions.  With reference to this Agreement and each other Loan Document,  unless otherwise specified herein or in such other Loan Document:                  (a)    The definitions of terms herein shall apply equally to the singular and plural forms of the  terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine  and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase  “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”   Unless  the  context  requires  otherwise,  (i)  any  definition  of  or  reference  to  any  agreement,  instrument  or  other  document (including any Organization Document) shall be construed as referring to such agreement, instrument or  other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on  such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference  herein to any Person shall be construed to include such Person’s successors and assigns, (iii) the words “hereto,”                                                   49 

 

“herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan Document, shall be construed  to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan  Document to Articles, Sections, Preliminary Statements, Exhibits and Schedules shall be construed to refer to Articles  and Sections of, and Preliminary Statements, Exhibits and Schedules to, the Loan Document in which such references  appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending,  replacing or interpreting such law and any reference to any law, rule or regulation shall, unless otherwise specified,  refer to such law, rule or regulation as amended, modified or supplemented from time to time, and (vi) the words  “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and  intangible assets and properties, including cash, securities, accounts and contract rights.                   (b)    In the computation of periods of time from a specified date to a later specified date, the  word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word  “through” means “to and including.”                  (c)    Section headings herein and in the other Loan Documents are included for convenience of  reference only and shall not affect the interpretation of this Agreement or any other Loan Document                  (d)    Any reference herein or any other Loan Document to a merger, transfer, consolidation,  amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term, shall be deemed to apply to a  division of or by a limited liability company, or an allocation of assets to a series of a limited liability company (or  the  unwinding  of  such  a  division  or  allocation),  as  if  it  were  a  merger,  transfer,  consolidation,  amalgamation,  consolidation, assignment, sale, disposition or transfer, or similar term, as applicable, to, of or with a separate Person.  Any division of a limited liability company shall constitute a separate Person hereunder (and each division of any  limited liability company that is a Subsidiary, joint venture or any other like term shall also constitute such a Person  or entity).                  (e)    In  connection  with  any  action  being  taken  in  connection  with  a  Limited  Condition  Acquisition, for purposes of determining compliance with any provision of this Agreement which requires that no  Default, Event of Default or Specified Default, as applicable, has occurred, is continuing or would result from any  such action, as applicable, such condition shall, at the option of the Borrower, be deemed satisfied, so long as no  Default, Event of Default or Specified Default, as applicable, exists on the date the definitive agreements for such  Limited Condition Acquisition are entered into.  For the avoidance of doubt, if the Borrower has exercised its option  under the first sentence of this clause (e), and any Default or Event of Default occurs following the date the definitive  agreements for the applicable Limited Condition Acquisition were entered into and prior to the consummation of such  Limited Condition Acquisition, any such Default or Event of Default shall be deemed to not have occurred or be  continuing for purposes of determining whether any action being taken in connection with such Limited Condition  Acquisition is permitted hereunder.                   (f)    In  connection  with  any  action  being  taken  in  connection  with  a  Limited  Condition  Acquisition, for purposes of:                          (i)    determining compliance with any provision of this Agreement which requires the  calculation of the Consolidated Coverage Ratio or Consolidated Secured Leverage Ratio; or                          (ii)   testing  baskets  set  forth  in  this  Agreement  (including  baskets  measured  as  a  percentage of EBITDA or Consolidated Net Tangible Assets),                   in each case, including the determination of compliance with any provision that requires that no  Default or Event of Default has occurred, is continuing or would result therefrom, and, at the option of the Borrower  (the 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, and determination of whether  any Default or Event of Default has occurred, is continuing or would result therefrom shall be deemed to be the date  the definitive agreements for such Limited Condition Acquisition are entered into (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  four  (4)  consecutive  Fiscal  Quarters  ending  prior  to  the  LCA  Test  Date  for  which                                                  50 

 

consolidated financial statements of the Borrower have been delivered hereunder, the Borrower could have taken such  action on the relevant LCA Test Date in compliance with such ratio or basket, such ratio or basket shall be deemed to  have been complied with.  For the avoidance of doubt, if the Borrower has made an LCA Election and any 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 EBITDA or Consolidated Net Tangible Assets  of the 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.          1.3     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 applied  on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the  Audited Financial Statements, except as otherwise specifically prescribed herein.  Notwithstanding the foregoing, for  purposes  of  determining  compliance  with  any  covenant  contained  herein,  Indebtedness  of  the  Borrower  and  its  Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of  FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded.                  (b)    Changes in GAAP.  If at any time any change in GAAP would affect the computation of  any financial ratio or requirement set forth in any Loan Document, and either the Borrower or the Required Lenders  shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such  ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval  of the Required Lenders); provided that, until so amended, (A) such ratio or requirement shall continue to be computed  in accordance with GAAP prior to such change therein and (B) the Borrower shall provide to the Administrative Agent  and the Lenders financial statements and other documents required under this Agreement or as reasonably requested  hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving  effect to such change in GAAP. Without limiting the foregoing, leases shall continue to be classified and accounted  for on a basis consistent with that reflected in the audited financial statements referred to in Section 6.2(a) for all  purposes of this Agreement, notwithstanding any change in GAAP relating thereto, unless the parties hereto shall  enter into a mutually acceptable amendment addressing such changes, as provided for above.                  (c)    Consolidation of Variable Interest Entities.  All references herein to consolidated financial  statements  of  the  Borrower  and  its  Subsidiaries  or  to  the  determination  of  any  amount  for  the  Borrower  and  its  Subsidiaries on a consolidated basis or any similar reference shall, in each case, be deemed to include each variable  interest entity that the Borrower is required to consolidate pursuant to FASB ASC 810 as if such variable interest  entity were a Subsidiary as defined herein.          1.4     Rounding.   Any  financial  ratios  required  to  be  maintained  by  the  Borrower  pursuant  to  this  Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to  one place more than the number of places by which such ratio is expressed herein and rounding the result up or down  to the nearest number (with a rounding-up if there is no nearest number).          1.5     Times of Day.  Unless otherwise specified, all references herein to times of day shall be references  to Eastern time (daylight or standard, as applicable).          1.6     Currency Equivalents Generally.  Any amount specified in this Agreement (other than in Articles  II, IX and X) or any of the other Loan Documents to be in Dollars shall also include the equivalent of such amount in  any currency other than Dollars, such equivalent amount thereof in the applicable currency to be determined by the  Administrative Agent at such time on the basis of the Spot Rate (as defined below) for the purchase of such currency  with Dollars.  For purposes of this Section 1.6, the “Spot Rate” for a currency means the rate determined by the  Administrative Agent 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 (2) Business Days prior to the date of such determination; provided that the  Administrative Agent may obtain such spot rate from another financial institution designated by the Administrative  Agent if the Person acting in such capacity does not have as of the date of determination a spot buying rate for any  such currency.                                                  51 

 

       1.7     Interest Rates.  The Administrative Agent does not warrant, nor accept responsibility, nor shall the  Administrative Agent have any liability with respect to the administration, submission or any other matter related to  the rates in the definition of “Eurodollar Rate” or with respect to any rate that is an alternative or replacement for or  successor to any of such rate (including, without limitation, any LIBOR Successor Rate) or the effect of any of the  foregoing, or of any LIBOR Successor Rate Conforming Changes.          1.8     Classification of Term Loans.  For purposes of this Agreement, Term Loans may be classified and  referred to by Class (e.g., an “Initial Term Loan”, “Incremental Term Loan”, “Extended Term Loan” or “Refinancing  Term Loan”) or by Type (e.g., a “Eurodollar Rate Term Loan” or “Base Rate Term Loan”).          1.9     Effectuation of Transactions.  Each of the representations and warranties of the Borrower and the  other Loan Parties contained in this Agreement (and all corresponding definitions) are made after giving effect to the  Transactions  (or  such  portion  thereof  as  shall  be  consummated  as  of  the  date  of  the  applicable  representation or  warranty), unless the context otherwise requires.                                             ARTICLE II                               TERM LOANS / INTEREST / PAYMENTS          2.1     The Term Loans.  Subject to the terms and conditions set forth herein, each Lender with an Initial  Term Loan Commitment severally (and not jointly) agrees to make Initial Term Loans to the Borrower in Dollars  from time to time on any Business Day during the Delayed Draw Availability Period; provided that (a) the principal  amount of each Initial Term Loan made by any Lender will not exceed such Lender’s Initial Term Loan Commitment  in effect at such time; (b) without limiting the requirements set forth in Section 2.2, the Borrower must deliver notice  to the Administrative Agent at least five (5) Business Days prior to any applicable Funding Date of the Borrower’s  intention to make a Borrowing of Initial Term Loans pursuant to this Section 2.1 on such Funding Date; (c) the  aggregate principal amount of Initial Term Loans to be made on any Funding Date must equal or exceed $25,000,000;  and (d) the aggregate principal amount of all Initial Term Loans made pursuant to this Section 2.1 may not exceed  $125,000,000 unless, after giving effect to the applicable Borrowing, the Borrower shall have fully drawn all Initial  Term Loan Commitments in effect as of immediately prior to such Borrowing.  Each Borrowing of Initial Term Loans  shall consist of Initial Term Loans made simultaneously by the Lenders in accordance with their respective Initial  Term Loan Commitments.  Amounts borrowed under this Section 2.1 and repaid or prepaid may not be reborrowed.   Initial Term Loans may be Base Rate Term Loans or Eurodollar Rate Term Loans as further provided herein.  The  Initial Term Loans funded on each Funding Date will be funded with original issue discount of 1.00% (it being agreed  that the Borrower shall be obligated to repay 100% of the principal amount of each Initial Term Loan and interest  shall accrue on 100% of the principal amount of the Initial Term Loans, in each case as provided herein).          2.2     Borrowings, Conversions and Continuations of Term Loans.  (a)  Each Borrowing of Term Loans  hereunder, each conversion of Term Loans from one Type to the other, and each continuation of Eurodollar Rate Term  Loans shall be made upon the Borrower’s irrevocable notice to the Administrative Agent, which may be given by (A)  telephone, or (B) a Committed Loan Notice; provided that any telephonic notice must be confirmed immediately by  delivery  to  the  Administrative  Agent  of  a  Committed  Loan  Notice.   Each  such  Committed  Loan  Notice  must be  received by the Administrative Agent not later than 11:00 a.m. (i) three (3) Business Days prior to the requested date  of any Borrowing of, conversion to or continuation of Eurodollar Rate Term Loans or of any conversion of Eurodollar  Rate Term Loans to Base Rate Term Loans, and (ii) on the requested date of any Borrowing of Base Rate Term Loans;  provided, however, that if the Borrower wishes to request Eurodollar Rate Term Loans having an Interest Period other  than one, two, three or six months in duration as provided in the definition of “Interest Period,” the applicable notice  must be received by the Administrative Agent not later than 11:00 a.m. four (4) Business Days prior to the requested  date of such Borrowing, conversion or continuation, whereupon the Administrative Agent shall give prompt notice to  the Lenders of the applicable Class of Term Loans of such request and determine whether the requested Interest Period  is acceptable to all of them.  Not later than 11:00 a.m., three (3) Business Days before the requested date of such  Borrowing, conversion or continuation, the Administrative Agent shall notify the Borrower (which notice may be by  telephone) whether or not the requested Interest Period has been consented to by all the applicable Lenders. Each  Borrowing  of,  conversion  to  or  continuation  of  Eurodollar  Rate  Term  Loans  shall  be  in  a  principal  amount  of  $5,000,000 or a whole multiple of $1,000,000 in excess thereof.  Except as provided in Section 2.3(c), each Borrowing  of or conversion to Base Rate Term Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000                                                  52 

 

in excess thereof.  Each Committed Loan Notice shall specify (i) whether the Borrower is requesting a Borrowing, a  conversion of Term Loans from one Type to the other, or a continuation of Eurodollar Rate Term 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 Term Loans to be borrowed, converted or continued, (iv) the Type of Term Loans to be  borrowed or to which existing Term Loans are to be converted, and (v) if applicable, the duration of the Interest Period  with respect thereto.  If the Borrower fails to specify a Type of Term Loan in a Committed Loan Notice or if the  Borrower fails to give a timely notice requesting a conversion or continuation, then the applicable Term Loans shall  be made as, or converted to, Eurodollar Rate Term Loans with an Interest Period of one month.  Any such automatic  conversion to Base Rate Term Loans shall be effective as of the last day of the Interest Period then in effect with  respect to the applicable Eurodollar Rate Term Loans.  If the Borrower requests a Borrowing of, conversion to, or  continuation of Eurodollar Rate Term Loans in any such Committed Loan Notice, but fails to specify an Interest  Period, it will be deemed to have specified an Interest Period of one month.                    (b)    Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly  notify each Lender of the amount of its ratable share of the applicable Class of Term Loans, and if no timely notice of  a conversion or continuation is provided by the Borrower, the Administrative Agent shall notify each Lender of the  details of any automatic conversion to Base Rate Term Loans described in Section 2.2(a).  Each applicable Lender  shall make the amount of its Term Loan available to the Administrative Agent in immediately available funds at the  Administrative Agent’s Office not later than 1:00 p.m. on the Business Day specified in the applicable Committed  Loan  Notice.   Upon  satisfaction  of  the  applicable  conditions  set  forth  in  Section  4.2  (and,  with  respect  to  any  Borrowing requested to occur on the Closing Date, if any, Section 4.1), the Administrative Agent shall make all funds  so received available to the Borrower in like funds as received by the Administrative Agent either by (i) crediting the  account of the Borrower on the books of 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 Administrative  Agent by the Borrower.                  (c)    Except as otherwise provided herein, a Eurodollar Rate Term Loan may be continued or  converted only on the last day of an Interest Period for such Eurodollar Rate Term Loan.  During the existence of a  Default, no Term Loans may be requested as, converted to or continued as Eurodollar Rate Term Loans without the  consent of the Required Lenders.                  (d)    The  Administrative  Agent  shall  promptly  notify  the  Borrower  and  the  Lenders  of  the  interest rate applicable to any Interest Period for Eurodollar Rate Term Loans upon determination of such interest rate.                  (e)    After giving effect to all Borrowings of Term Loans, all conversions of Term Loans from  one Type to the other, and all continuations of Term Loans as the same Type, there shall not be more than five Interest  Periods in effect in respect of any Class of Term Loans hereunder.                  (f)    Notwithstanding anything to the contrary in this Agreement, any Lender may exchange,  continue  or  rollover  all  of  the  portion  of  its  Term  Loans  in  connection  with  any  refinancing,  extension,  loan  modification  or  similar  transaction  permitted  by  the  terms  of  this  Agreement,  pursuant  to  a  cashless  settlement  mechanism approved by the Borrower, the Administrative Agent, and such Lender.          2.3     Prepayments.                  (a)    Optional.  (i)  Subject  to  Section  2.3(a)(ii),  the  Borrower  may,  upon  notice  to  the  Administrative Agent pursuant to delivery to the Administrative Agent of a Notice of Loan Prepayment, at any time  or from time to time voluntarily prepay Term Loans in whole or in part without premium or penalty; provided that  (A) such notice must be received by the Administrative Agent not later than 11:00 a.m. (1) three (3) Business Days  prior to any date of prepayment of Eurodollar Rate Term Loans and (2) on the date of prepayment of Base Rate Term  Loans; (B) any prepayment of Eurodollar Rate Term Loans shall be in a principal amount of $5,000,000 or a whole  multiple of $1,000,000 in excess thereof; and (C) any prepayment of Base Rate Term Loans shall be in a principal  amount of $500,000 or a whole multiple of $100,000 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) and Class of Term Loans to be prepaid and, if Eurodollar Rate Term Loans are to be prepaid, the Interest  Period(s) of such Term Loans.  The Administrative Agent will promptly notify each Lender of its receipt of each such                                                  53 

 

notice, and of the amount of such Lender’s ratable portion of such prepayment (based on such Lender’s Applicable  Percentage of the relevant Class of Term Loans).  If such notice is given by the Borrower, the Borrower shall make  such prepayment and the payment amount specified in such notice shall be due and payable on the date specified  therein.  Any prepayment of a Eurodollar Rate Term Loan shall be accompanied by all accrued interest on the amount  prepaid, together with any additional amounts required pursuant to Section 3.5.  Each prepayment of outstanding Term  Loans pursuant to this Section 2.3(a) shall be applied to the remaining scheduled installments of principal thereof  pursuant to Section 2.5 in a manner determined at the sole discretion of the Borrower and specified in the Notice of  Loan Prepayment and, subject to the other limitations expressly set forth in this Agreement, the Borrower may elect  to  apply  voluntary  prepayments  of  Term  Loans  to  one  or  more  Class  or  Classes  of  Term  Loans  selected  by  the  Borrower in its sole discretion (provided that such voluntary prepayments of the Term Loans shall be made pro rata within any such Class or Classes selected by the Borrower).  In the event that the Borrower does not specify the order  in which to apply prepayments to reduce scheduled installments of principal or as between Classes of Term Loans,  the Borrower shall be deemed to have elected that such prepayment be applied to reduce the scheduled installments  of principal in direct order of maturity on a pro rata basis among Classes of Term Loans.                           (ii)   Notwithstanding the foregoing, in the event that, on or prior to the date which is  twelve (12) months after the Closing Date (the “Prepayment Premium Period”), the Borrower (A) prepays, refinances,  substitutes or replaces any Initial Term Loans pursuant to a Repricing Transaction, or (B) effects any amendment of  this Agreement resulting in a Repricing Transaction, the Borrower shall pay to the Administrative Agent, for the  ratable account of each of the applicable Lenders, (x) in the case of clause (A), a prepayment premium of 1.00% of  the aggregate principal amount of the Initial Term Loans so prepaid, refinanced, substituted or replaced and (y) in the  case  of  clause (B),  a  fee  equal  to  1.00%  of  the  aggregate  principal  amount  of  the  applicable  Initial  Term  Loans  outstanding immediately prior to such amendment.  If, at any time during the Prepayment Premium Period, all or any  portion of the Initial Term Loans held by any Non-Consenting Lender are prepaid, refinanced, substituted or replaced  pursuant to Section 11.13 as a result of, or in connection with, such Lender not agreeing or otherwise consenting to  any  waiver,  consent,  modification  or  amendment  in  connection  with  a  Repricing  Transaction,  such  prepayment,  refinancing, substitution or replacement will be made at 101% of the principal amount so prepaid, repaid, refinanced,  substituted or replaced. All such amounts shall be due and payable on the date of effectiveness of such Repricing  Transaction; provided that, for the avoidance of doubt, the Borrower shall not be subject to the requirements of this  Section 2.3(a)(ii)  with  respect  to  any  Repricing  Transaction  occurring  after  the  end  of  the  Prepayment  Premium  Period.                  (b)    Mandatory.                         (i)    Debt Incurrences.  If the Borrower or any of its Restricted Subsidiaries issues or  Incurs any Indebtedness (other than Indebtedness expressly permitted to be Incurred pursuant to Section 2.12, 2.13 or  7.2), then on the date of such issuance or Incurrence, the Borrower shall apply an amount equal to 100% of the Net  Cash Proceeds in respect thereof to prepay Term Loans.                         (ii)   Excess  Cash  Flow.   If,  for  any  Excess  Cash  Flow  Period,  there  shall  be  any  positive Excess Cash Flow, the Borrower shall prepay Term Loans of each Class on the relevant Excess Cash Flow  Application Date (as defined below) in an aggregate amount equal to (i) 50% of such Excess Cash Flow minus (ii) the  Optional Prepayment Amount (if any) for such Excess Cash Flow Period.  Each prepayment shall be made on a date  (an “Excess Cash Flow Application Date”) no later than five (5) Business Days after the earlier of (x) the date on  which the financial statements of the Borrower referred to in Section 6.2(a) for the Fiscal Year with respect to which  such prepayment is to be made are required to be delivered to the Lenders, and (y) the date such financial statements  are actually delivered.                         (iii)  Asset Dispositions; Recovery Events.  The Borrower shall apply an amount equal  to 100% of Net Available Cash from any Asset Disposition or Recovery Event (other than any disposition of, or  Recovery Event with respect to, property that constitutes ABL Priority Collateral) to prepay Term Loans within five  (5) Business Days following actual receipt of Net Available Cash in respect thereof; provided that notwithstanding  the foregoing, (i) the Borrower shall only be required to make a mandatory prepayment with the Net Available Cash  of any Asset Disposition or Recovery Event pursuant to this Section 2.3(b)(iii) if the aggregate Net Available Cash in  respect of all Asset Dispositions and Recovery Events (excluding any disposition of or Recovery Events with respect  to property that constitutes ABL Priority Collateral) that have occurred since the Closing Date exceeds $35,000,000;                                                  54 

 

and (ii) to the extent such aggregate Net Available Cash has not exceeded $35,000,000 since the Closing Date, then  the  Borrower  and  the  Restricted  Subsidiaries  shall  be  entitled  to  retain  any  such  Net  Available  Cash,  with  no  prepayment  obligation,  and  use  such  Net  Available  Cash  for  any  purposes  not  prohibited  under  this  Agreement;  provided that, if at the time that any such prepayment would be required, the Borrower shall be required to, or to offer  to, repurchase or redeem or repay or prepay any Indebtedness secured on a pari passu basis with or senior to the  Obligations pursuant to the terms of the documentation governing such Indebtedness with the Net Available Cash of  such Asset Disposition or Recovery Event (such Indebtedness required to be offered to be so repurchased, “Other  Applicable Indebtedness”), then the Borrower (or any Restricted Subsidiary) may apply such Net Available Cash on  a pro rata basis (determined on the basis of the aggregate outstanding principal amount of the Term Loans and Other  Applicable Indebtedness at such time); provided, further, that if no Term Loans subject to such mandatory prepayment  requirement are outstanding or will be outstanding after the application of such prepayment, then the Borrower may  apply all such Net Available Cash after the repayment of such Term Loans to repay the Other Applicable Indebtedness;  provided, further, that the portion of such Net Available Cash allocated to the Other Applicable Indebtedness shall not  exceed the amount of such Net Available Cash required to be allocated to the Other Applicable Indebtedness pursuant  to the terms thereof, and the remaining amount, if any, of such Net Available Cash shall be allocated to the Term  Loans (in accordance with the terms hereof); provided, further, that to the extent the holders of Other Applicable  Indebtedness decline to have such Indebtedness repurchased or repaid with such Net Available Cash, the declined  amount of such Net Available Cash shall promptly (and in any event within ten (10) Business Days after the date of  such rejection) be applied to prepay the Term Loans in accordance with the terms hereof (to the extent such Net  Available Cash would otherwise have been required to be so applied if such Other Applicable Indebtedness was not  then outstanding).                         (iv)   Declining  Lender.   Notwithstanding  anything  in  this  Section 2.3(b)  to  the  contrary, any Lender may elect, by notice to the Administrative Agent by telephone (confirmed by hand delivery,  facsimile transmission or PDF attachment to an e-mail) at least one (1) Business Day prior to the required prepayment  date, to decline all or any portion of any mandatory prepayment of its Term Loans pursuant to this Section 2.3(b), in  which case the aggregate amount of the prepayment that would have been applied to prepay Term Loans but was so  declined may be retained by the Borrower and the Restricted Subsidiaries (such retained amount, “Retained Declined  Proceeds”).                          (v)    Order of Payments.  Each prepayment of Term Loans pursuant to this Section  2.3(b) shall be applied ratably to each Class of Term Loans then outstanding.  With respect to each Class of Term  Loans,  each  prepayment  pursuant  to  Section   2.3(b)(i),  2.3(b)(ii)  or  2.3(b)(iii)  shall  be  applied  to  the  scheduled  installments of principal thereof (following the date of prepayment) in a manner determined at the sole discretion of  the Borrower and specified to the Administrative Agent and, if not specified, in direct order of maturity.  Each such  prepayment shall be paid to the applicable Lenders in accordance with their respective Applicable Percentage of such  prepayment; provided that if no Lender exercises the right to waive a given mandatory prepayment of Term Loans  pursuant to this Section 2.3(b), then, with respect to such mandatory prepayment, the amount of such mandatory  prepayment shall be applied first to Term Loans that are Base Rate Term Loans to the full extent thereof before  application  to  Term  Loans  that  are  Eurodollar  Rate  Term  Loans  in  a  manner  that  minimizes  the  amount  of  any  payments required to be made by the Borrower pursuant to Section 3.5.                         (vi)   Prepayment Certificate.  Concurrently with any prepayment of the Term Loans  pursuant  to  Section   2.3(b)(i),  2.3(b)(ii)  or  2.3(b)(iii),  the  Borrower  shall  deliver  to  the  Administrative  Agent  a  certificate of a Responsible Officer of the Borrower demonstrating the calculation of the amount of the applicable Net  Cash Proceeds, Excess Cash Flow or Net Available Cash, as applicable, giving rise to such prepayment.           2.4     Termination of Commitments.                    (a)    Optional.  The Borrower may, upon notice to the Administrative Agent from time to time  during the Delayed Draw Availability Period, terminate (in whole or in part) the unused portion of the aggregate Initial  Term Loan Commitments; provided that (i) any such notice shall be received by the Administrative Agent not later  than 11:00 a.m. three (3) Business Days prior to the date of termination or reduction and (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.                                                    55 

 

               (b)    Mandatory.  (i) On the last Business day of each of September 2020, December 2020,  March 2021, June 2021 and September 2021, the aggregate Initial Term Loan Commitments in effect as of such date,  if any, shall be reduced automatically by $450,000.                           (ii)   The  Initial  Term  Loan  Commitment  of  each  Lender  shall  be  reduced  automatically and without further action upon the making by such Lender of any Initial Term Loan by an amount  equal to the principal amount of such Initial Term Loan.                         (iii)  Unless previously terminated pursuant to the terms of this Agreement, the Initial  Term Loan Commitment of each Lender shall terminate at 5:00 p.m. on the Delayed Draw Funding Deadline.                  (c)    Application of Commitment Reductions.  The Administrative Agent will promptly notify  the Lenders of any termination or reduction of the unused portion of the aggregate Initial Term Loan Commitments  under this Section 2.4.  Upon any reduction of the unused portion of the aggregate Initial Term Loan Commitments,  the Initial Term Loan Commitment of each Lender shall be reduced by such Lender’s ratable portion of such reduction  amount.            2.5     Repayment of Term Loans.  The Borrower shall repay to the Administrative Agent, for the benefit  of the Lenders, (i) on the last Business Day of each March, June, September and December, commencing with the last  Business Day of December 2021 (or, if earlier, the last Business Day of the applicable Fiscal Quarter during which  the Initial Term Loan Commitments have been drawn in full by the Borrower), an aggregate principal amount of the  Initial Term Loans equal to $450,000 (which payments shall be reduced as a result of the application of prepayments  in accordance with the priority set forth in Section 2.3(b)(v) above) and (ii) on the Maturity Date, the aggregate  principal amount of all Initial Term Loans outstanding on such date; provided that the amount of any such payment  set forth above shall be adjusted to account for the addition of any Extended Term Loan or Incremental Term Loans  to  contemplate  (x) the  reduction  in  the  aggregate  principal  amount  of  any  Term  Loans  that  were  converted  in  connection with the Incurrence of such Extended Term Loans, and (y) any increase to payments to the extent and as  required pursuant to the terms of any applicable Incremental Term Amendment involving a Term Loan Increase to  the Term Loans, a Refinancing Amendment to the amount of Term Loans or an Extension Amendment increasing the  amount of Term Loan payments.          2.6     Interest.  (a)  Subject to the provisions of Section 2.6(b), (i) each Eurodollar Rate Term Loan of a  particular Class of Term Loans shall bear interest on the outstanding principal amount thereof for each Interest Period  at a rate per annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate for such Class of  Term  Loans;  and  (ii)  each  Base  Rate  Term  Loan  of  a  particular  Class  of  Term  Loans  shall  bear  interest  on  the  outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate  plus the Applicable Rate for such Class of Term Loans.                  (b)    (i) If any amount of principal of any Term Loan is not paid when due (without regard to  any applicable grace periods), whether at stated maturity, by acceleration or otherwise, 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 Laws.                         (ii)   If any amount (other than principal of any Term Loan) payable by the 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 Required 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 Laws.                         (iii)  Accrued and unpaid interest on past due amounts (including interest on past due  interest) shall be due and payable upon demand.                  (c)    Interest on each Term Loan shall be due and payable in arrears on each Interest Payment  Date applicable thereto and at such other times as may be specified herein.  Interest hereunder shall be due and payable                                                   56 

 

in  accordance  with  the  terms  hereof  before  and  after  judgment,  and  before  and  after  the  commencement  of  any  proceeding under any Debtor Relief Law.          2.7     Fees.   (a)  The  Borrower  shall  pay  to  the  Arranger  and  the  Administrative  Agent  for  their  own  respective accounts fees in the amounts and at the times specified in the Fee Letters.  Such fees shall be fully earned  when paid and shall not be refundable for any reason whatsoever.                  (b)    The Borrower shall pay to the Lenders such fees as shall have been separately agreed upon  in writing in the amounts and at the times so specified.  Such fees shall be fully earned when paid and shall not be  refundable for any reason whatsoever.          2.8     Computation of Interest and Fees.  All computations of interest for Base Rate Term Loans (including  Base Rate Term Loans determined by reference to the Eurodollar Rate) shall be made on the basis of a year of 365 or  366 days, as the case may be, 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).  Interest shall accrue on each Term Loan for the day on which such  Term Loan is made, and shall not accrue on any Term Loan, or any portion thereof, for the day on which such Term  Loan or such portion is paid.  Each determination by the Administrative Agent of an interest rate or fee hereunder  shall be conclusive and binding for all purposes, absent manifest error.          2.9     Evidence  of  Debt.   The  Term  Loans  made  by  each  Lender  shall  be  evidenced  by  one  or  more  accounts or records maintained by such Lender in the ordinary course of business.  The Administrative Agent shall  maintain the Register in accordance with Section 11.6(c).  The accounts or records maintained by each Lender shall  be conclusive absent manifest error of the amount of the Term Loans made by the Lenders to the Borrower and the  interest and payments thereon.  Any failure to so record or any error in doing so shall not, however, limit or otherwise  affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations.  In the event  of any conflict between the accounts and records maintained by any Lender and the Register, the Register shall control  in  the  absence  of  manifest  error.   Upon  the  request  of  any  Lender  made  through  the  Administrative  Agent,  the  Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note, which shall evidence  such Lender’s Term Loans in addition to such accounts or records.  Each Lender may attach schedules to its Note and  endorse thereon the date, Type (if applicable), amount and maturity of its Term Loans and payments with respect  thereto.          2.10    Payments Generally; Administrative Agent’s Clawback.                    (a)    General.  All payments to be made by the Borrower shall be made free and clear of and  without condition or deduction for any counterclaim, defense, recoupment or setoff.  Except as otherwise expressly  provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account  of the respective Lenders to which such payment is owed, at the Administrative Agent’s Office in Dollars and in  immediately available funds not later than 3:00 p.m. on the date specified herein.  The Administrative Agent will  promptly distribute to each Lender its Applicable Percentage in respect of the applicable Class of Term Loans (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 Administrative Agent after 3:00 p.m. shall be deemed received on the  next succeeding Business Day and any applicable interest or fee shall continue to accrue.  If any payment to be made  by the Borrower 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 reflected on computing interest or fees, as the case may be.                  (b)    Funding by Lenders; Presumption by Administrative Agent.  Unless the Administrative  Agent shall have received notice from a Lender at least one Business Day prior to the date of any Borrowing, that  such Lender will not make available as and when required hereunder to the Administrative Agent such Lender’s  ratable  share  of  such  Borrowing,  the  Administrative  Agent  may  assume  that  such  Lender  has  made  such  share  available on such date in accordance with Section 2.2 (or, in the case of a Borrowing of Base Rate Term Loans, that  such Lender has made such share available in accordance with and at the time required by Section 2.2) and may, in  reliance upon such assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender  has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable  Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding                                                  57 

 

amount in immediately available funds with interest thereon, for each day from and including the date such amount is  made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (A) in the case  of  a  payment  to  be  made  by  such  Lender,  the  greater  of  the  Federal  Funds  Rate  and  a  rate  determined  by  the  Administrative Agent in accordance with banking industry rules on interbank compensation, plus any administrative,  processing or similar fees customarily charged by the Administrative Agent in connection with the foregoing, and (B)  in the case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Term Loans.  If the  Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period,  the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for  such period.  If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount  so paid shall constitute such Lender’s Term Loan included in such Borrowing.  Any payment by the Borrower shall  be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment  to the Administrative Agent.                         (i)    Payments  by  Borrower;  Presumptions  by  Administrative  Agent.   Unless  the  Administrative Agent shall have received notice from the Borrower prior to the time at which any payment is due to  the Administrative Agent for the account of the Lenders hereunder that the Borrower will not make such payment, the  Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith  and may, in reliance upon such assumption, distribute to the relevant Lenders of any Class the amount due.  In such  event, if the Borrower has not in fact made such payment, then each of the Lenders of the applicable Class, severally  agrees  to  repay  to  the  Administrative  Agent  forthwith  on  demand  the  amount  so  distributed  to  such  Lender  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 Administrative Agent, at the greater of the Federal Funds Rate and a  rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.          A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount owing under  this clause (b) shall be conclusive, absent manifest error.                  (c)    Failure  to  Satisfy  Conditions  Precedent.   If  any  Lender  makes  available  to  the  Administrative  Agent  funds  for  the  Initial  Term  Loan  to  be  made  by  such  Lender  as  provided  in  the  foregoing  provisions of this Article II, and such funds are not made available to the Borrower by the Administrative Agent  because the applicable conditions to the funding of the Initial Term Loans set forth in Article IV are not satisfied or  waived in accordance with the terms hereof, the Administrative Agent shall return such funds (in like funds as received  from such Lender) to such Lender, without interest.                  (d)    Obligations of Lenders Several.  The obligations of the Lenders hereunder to make Term  Loans and to make payments pursuant to Section 11.4(c) are several and not joint.  The failure of any Lender to make  any Term Loan or to make any payment under Section 11.4(c) on any date required hereunder shall not relieve any  other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure  of any other Lender to so make its Term Loan or to make its payment under Section 11.4(c).                  (e)    Funding Source.  Nothing herein shall be deemed to obligate any Lender to obtain the funds  for any Term Loan 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 Term Loan in any particular place or manner.                  (f)    Insufficient Funds.  If at any time insufficient funds are received by and available to the  Administrative Agent to pay fully all amounts of principal, interest and fees then due hereunder, such funds shall be  applied (i) first, toward payment of interest and fees then due hereunder, ratably among the parties entitled thereto in  accordance with the amounts of interest and fees then due to such parties, and (ii) second, toward payment of principal  then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal then due to  such parties.          2.11    Sharing  of  Payments  by  Lenders.   If  any  Lender  shall,  by  exercising  any  right  of  setoff  or  counterclaim or otherwise, obtain payment in respect of (a) Obligations due and payable to such Lender hereunder  and under the other Loan Documents at such time in excess of its ratable share (according to the proportion of (i) the  amount of such Obligations due and payable to such Lender at such time to (ii) the aggregate amount of the Obligations  due and payable to all Lenders hereunder and under the other Loan Documents at such time) of payments on account                                                  58 

 

of the Obligations due and payable to all Lenders hereunder and under the other Loan Documents at such time obtained  by all the Lenders at such time or (b) Obligations owing (but not due and payable) to such Lender hereunder and under  the other Loan Documents at such time in excess of its ratable share (according to the proportion of (i) the amount of  such Obligations owing (but not due and payable) to such Lender at such time to (ii) the aggregate amount of the  Obligations owing (but not due and payable) to all Lenders hereunder and under the other Loan Parties at such time)  of payment on account of the Obligations owing (but not due and payable) to all Lenders hereunder and under the  other Loan Documents at such time obtained by all of the Lenders at such time then the Lender receiving such greater  proportion  shall  (a)  notify  the  Administrative  Agent  of  such  fact,  and  (b)  purchase  (for  cash  at  face  value)  participations in the Term Loans of the other Lenders of the applicable Class, 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 Obligations then due and payable to the Lenders or owing (but not due and payable) to the  Lenders, as the case may be, provided that:                         (i)    if any such participations are purchased and all or any portion of the payment  giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of  such recovery, without interest;                         (ii)   the  provisions  of  this  Section  2.11  shall  not  be  construed  to  apply  to  (x)  any  payment made by or on behalf of the Borrower pursuant to and in accordance with the express terms of this Agreement  (including the application of funds arising from the existence of a Defaulting Lender or Disqualified Institution) or  (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its  Term Loans.          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.          2.12    Incremental Term Loans.                  (a)    The Borrower may, at any time and from time to time after the Closing Date, subject to the  terms and conditions set forth herein, request one or more new commitments which may be of the same Class as any  outstanding Term Loan (a “Term Loan Increase”) or a new Class of Term Loans (collectively with any Term Loan  Increase, the “Incremental Term Commitments”).  Any request under this Section 2.12 shall specify the requested  amount and proposed terms of the relevant Incremental Term Loans.  Incremental Term Loans may be made by any  existing Lender (but no existing Lender will have an obligation to make any Incremental Term Commitment, nor will  the Borrower have any obligation to approach any existing Lenders to provide any Incremental Term Commitment)  or  by  any  Additional  Lender  (each  such  existing  Lender  or  Additional  Lender  providing  such  Incremental  Term  Commitment, an “Incremental Term Lender”); provided that the Administrative Agent shall have consented (such  consent  not  to  be  unreasonably  conditioned,  withheld  or  delayed)  to  such  Additional  Lender’s  making  such  Incremental  Term  Loans  to  the  extent  such  consent,  if  any,  would  be  required  under  Section 11.6(b)(iii)  for  an  assignment of Term Loans to such Additional Lender.                  (b)    Notwithstanding anything to the contrary herein, without the prior written consent of the  Required Lenders, the aggregate principal amount of Incremental Term Loans shall not exceed at the time Incurred,  the sum of (i) (any such Incremental Term Loans and any Incremental Equivalent Debt, in each case, to the extent  Incurred under this clause (i), “Dollar Basket Incremental Debt”) the greater of (A) $150,000,000 and (B) 75.0% of  the amount of EBITDA for the most recent four (4) consecutive Fiscal Quarters for which financial statements of the  Borrower have been delivered hereunder, less the aggregate outstanding principal amount of all Incremental Term  Loans  and  Incremental  Equivalent  Debt  established  prior  to  such  time  to  the  extent  constituting  Dollar  Basket  Incremental Debt; plus (ii) an additional amount (any such Incremental Term Loans and any Incremental Equivalent  Debt, in each case, to the extent Incurred under this clause (ii), “Ratio-Based Incremental Debt”), so long as, in the  case  of  this  clause  (ii),  upon  the  effectiveness  of  the  applicable  Incremental  Term  Amendment  or  the  relevant  documentation relating to the relevant Incremental Equivalent Debt, as the case may be, and after giving effect to any  such Incurrence on a pro forma basis (and after giving effect to any acquisition or other Investment consummated in  connection therewith on a pro forma basis), the Consolidated Secured Leverage Ratio is no greater than 3.00 to 1.00;                                                  59 

 

provided that solely for purposes of calculating the Consolidated Secured Leverage Ratio for purposes of permitting  the Incurrence of such Ratio-Based Incremental Debt (x) the Consolidated Secured Leverage Ratio shall be determined  without netting the proceeds from the Incurrence of such Ratio-Based Incremental Debt, (y) any Incremental Term  Loans and Incremental Equivalent Debt (or any Refinancing Indebtedness in respect thereof) that is or contemplated  to be junior in right of security with outstanding Initial Term Loans or unsecured shall be deemed to be secured on a  pari passu basis with the outstanding Initial Term Loans and (z) all undrawn Initial Term Loan Commitments in effect  at such time shall be deemed drawn and the aggregate principal amount of Term Loans in respect thereof shall be  included  in  clause  (x)  of  Consolidated  Secured  Leverage  Ratio;  plus  (iii)  the  aggregate  amount  of  all  voluntary  prepayments of any Term Loans, Incremental Term Loans and/or Incremental Equivalent Debt, that, in each case, is  secured on a pari passu basis with the Term Loans (provided that such prepayment is not funded with a concurrent  Incurrence of Long-Term Indebtedness (other than loans under the ABL Agreement or loans under any other revolving  credit  facility)),  less  the  aggregate  outstanding  principal  amount  of  all  Incremental  Term  Loans  and  Incremental  Equivalent Debt established prior to such time pursuant to this clause (iii). The Borrower shall be entitled to elect to  use clause (ii) above, before using clause (i) or (iii) above, to the extent permitted thereby; provided that, unless elected  otherwise by the Borrower, any Incremental Term Loans and any Incremental Equivalent Debt shall be deemed to  have been Incurred first in reliance on clause (ii) above to the extent permitted thereby.                  (c)    On  any  date  on  which  any  Incremental  Term  Commitments  of  any  Class  are  effected  (including through any Term Loan Increase) (each such date an “Incremental Tranche Closing Date”), subject to the  satisfaction of the terms and conditions in this Section 2.12 (i) each Incremental Term Lender of such Class shall make  a Term Loan to the Borrower (an “Incremental Term Loan”) in an amount equal to its Incremental Term Commitment  of such Class and (ii) each Incremental Term Lender of such Class shall become a Lender hereunder with respect to  the  Incremental  Term  Commitment  of  such  Class  and  the  Incremental  Term  Loans of such  Class  made  pursuant  thereto.                  (d)    The  terms,  provisions  and  documentation  of  any  Incremental  Term  Loan  or  any  Incremental Term Commitment shall be as agreed between the Borrower and the applicable Incremental Term Lenders  providing such Incremental Term Loans or Incremental Term Commitments, and except as otherwise set forth herein,  to the extent not substantially consistent with any Class of Term Loans existing on the Incremental Tranche Closing  Date (as determined by the Borrower), shall be consistent with clauses (i) through (iii) below, as applicable, and  otherwise shall be reasonably satisfactory to the Administrative Agent (in its capacity as such) (other than in respect  of pricing, fees, rate floors, amortization or maturity); provided that terms that are not substantially consistent with  any Class of Term Loans existing on the Incremental Tranche Closing Date may be added without the consent of the  Administrative Agent or any existing Lender to the extent such terms are (x) also added for the benefit of the Term  Loans existing on the Incremental Tranche Closing Date or (y) only applicable after the Maturity Date of any Term  Loans existing on the Incremental Tranche Closing Date.  Notwithstanding the foregoing, in the case of a Term Loan  Increase, the terms, provisions and documentation of such Term Loan Increase shall be identical (other than with  respect to underwriting, commitment or upfront fees, original issue discount or similar fees) to the applicable Term  Loans being increased.  In any event,                         (i)    each Incremental Term Loan or Incremental Term Commitment:                          (A)    at the Borrower’s option, may rank pari passu or junior in right of payment with                 the other Term Loans or Commitments, as applicable, of such Class, may be pari passu or junior                 in right of security with the other Term Loans or Commitments, as applicable, of such Class (and,                 if  junior  in  right  of  security,  subject  to  an  Acceptable  Intercreditor  Agreement)  or  may  be                 unsecured;                          (B)    shall not mature earlier than the Maturity Date with respect to the Initial Term                 Loans;                           (C)    shall have a Weighted Average Life to Maturity not shorter than the remaining                 Weighted Average Life to Maturity of the Initial Term Loans on the date of Incurrence of such                 Incremental Term Loans (except by virtue of amortization or prepayment of the Initial Term Loans                 prior to the time of such Incurrence);                                                   60 

 

                       (D)    shall have fees and, subject to clauses (d)(i)(B) and (d)(i)(C) above, amortization                 determined by the Borrower and the applicable Incremental Term Lenders; and                          (E)    may, in the case of an Incremental Term Loan or Incremental Term Commitment                 that is pari passu in right of payment and right of security with the Initial Term Loans, provide for                 the ability to participate on a pro rata basis, or on a less than pro rata basis (but not on a greater                 than pro rata basis), in any mandatory prepayments of Term Loans hereunder, as specified in the                 applicable Incremental Term Amendment;                          (ii)   the All-In-Yield applicable to the Incremental Term Loans of each Class shall be  determined by the Borrower and the applicable new Lenders and shall be set forth in each applicable Incremental  Term Amendment; provided, however, that the All-In-Yield applicable to such Incremental Term Loans shall not be  greater than the applicable All-In-Yield payable pursuant to the terms of this Agreement with respect to the Initial  Term Loans plus 50 basis points per annum, unless the Interest Rate (together with, as provided in the proviso below,  the Eurodollar Rate or Base Rate floor) with respect to such Initial Term Loans is increased so as to cause the then  applicable All-In-Yield under this Agreement on such Initial Term Loans to equal the All-In-Yield then applicable to  the Incremental Term Loans minus 50 basis points; provided that any increase in All-In-Yield to the Initial Term  Loans due to the application of any Eurodollar Rate floor or Base Rate floor on any Incremental Term Loan shall be  effected solely through an increase in (or implementation of, as applicable) any Eurodollar Rate floor or Base Rate  floor applicable to the Initial Term Loans; and                         (iii)  there shall be no guarantors in respect of such Incremental Term Loans that are  not Guarantors and such Incremental Term Loans shall not include any borrower other than the Borrower and, to the  extent secured, Incremental Term Loans shall not be secured by assets other than Collateral (except pursuant to an  escrow or similar arrangement with respect to the proceeds of such Incremental Term Loans).                   (e)    No Incremental Term Loans shall become effective unless and until each of the following  conditions has been satisfied:                          (i)    Any  such  Incremental  Term Loan  shall  be  in  a  minimum principal  amount  of  $10,000,000 and in integral multiples of $1,000,000 in excess thereof, unless otherwise agreed by the Borrower and  the Administrative Agent;                         (ii)   The Borrower, the Administrative Agent, and any Additional Lender shall have  executed and delivered an Incremental Term Amendment;                          (iii)  The Borrower shall have paid such fees and other compensation to the Additional  Lenders and to the Administrative Agent as the Borrower, the Administrative Agent and such Additional Lenders  shall agree;                          (iv)   On the closing date of any Incremental Term Loan, (A) the representations and  warranties made by the Borrower and each Guarantor contained herein and in the other Loan Documents shall be true  and correct in all material respects on and as of such closing date, except to the extent that such representations and  warranties specifically refer to an earlier date, in which case they shall have been true and correct in all material  respects,  as  of  such  earlier  date  (provided  that  in  connection  with  any  Limited  Condition  Acquisition,  the  only  representations and warranties that will be  required to be true and correct in all material respects as of the applicable  closing date, except for such representations and warranties that specifically refer to an earlier date, in which case  such representations and warranties shall be true and correct in all material respects as of such earlier date, shall be  the Specified Representations) (provided further that, to the extent any such representation and warranty is qualified  by, or subject to, “materiality”, “Material Adverse Effect” or similar language, the same shall be true and correct in  all respects); (B) no Event of Default (or, in connection with a Limited Condition Acquisition, no Specified Default)  shall have occurred and be continuing; and (C) the Borrower shall have delivered on such closing date an Officers’  Certificate certifying the satisfaction of the conditions set forth in the foregoing clauses (A) and (B); and                                                   61 

 

                      (v)    The  Borrower  and  Additional  Lenders  shall  have  delivered  such  other  instruments,  documents  and  agreements  as  the  Administrative  Agent  may  reasonably  have  requested  in  order  to  effectuate the documentation of the foregoing.                   (f)    In connection with any Incremental Term Loan, the Administrative Agent, the Additional  Lenders and the Borrower agree to enter into any amendment required to incorporate the addition of the Incremental  Term Loans, the pricing of the Incremental Term Loans, the maturity date of the Incremental Term Loans and such  other amendments as may be necessary or appropriate in the reasonable opinion of the Administrative Agent and the  Borrower in connection therewith, including amendments to provide for the inclusion, as appropriate, of Additional  Lenders in any required vote or action of the Required Lenders, and amendments to properly reflect the pari passu or  junior right of payment or priority with respect to the Collateral (each an “Incremental Term Amendment”).  The  Lenders hereby irrevocably authorize the Administrative Agent to enter into such amendments.                  (g)    The Borrower may, at any time and from time to time after the Closing Date, subject to the  terms and conditions set forth herein, by notice to the Administrative Agent, issue one or more series of Incremental  Equivalent Debt in an aggregate principal amount not to exceed, as of the date of and after giving effect to the issuance  of any such Incremental Equivalent Debt, the aggregate amount of Incremental Term Loans then permitted to be  Incurred pursuant to Section 2.12(b).                           (i)    Any Incremental Equivalent Debt:                          (A)    at the Borrower’s option, may rank pari passu or junior in right of payment with                 respect to the Obligations in respect of outstanding Initial Term Loans or Pari Passu Incremental                 Term Loans, may be pari passu or junior in right of security with outstanding Initial Term Loans                 or  Pari  Passu  Incremental  Term  Loans  (and,  if  secured,  subject  to  an  Acceptable  Intercreditor                 Agreement) or may be unsecured;                          (B)    shall not mature earlier than the Maturity Date with respect to the Initial Term                 Loans or any Pari Passu Incremental Term Loans;                          (C)    shall have a Weighted Average Life to Maturity not shorter than the remaining                 Weighted Average Life to Maturity of the Initial Term Loans or any Pari Passu Incremental Term                 Loans  on  the  date  of  Incurrence  of  such  Incremental  Equivalent  Debt  (except  by  virtue  of                 amortization or prepayment of the Initial Term Loans or any Pari Passu Incremental Term Loans                 prior to the time of such Incurrence) (provided that any such Indebtedness in the form of bridge                 notes or bridge loans shall not be required to meet the requirement in this clause (C) so long as                 such  bridge  notes  or  bridge  loans  provide  for  automatic  conversion,  subject  to  customary                 conditions, into “permanent” financing that satisfies such requirement);                          (D)    shall have fees and, subject to clause (g)(i)(B) and (g)(i)(C) above, amortization                 determined by the Borrower and the applicable lenders in respect of such Incremental Equivalent                 Debt; and                          (E)    may, in the case of any Incremental Equivalent Debt that is pari passu in right                 of payment and right of security with then existing Term Loans, provide for the ability to participate                 on a pro rata basis, or on a less than pro rata basis (but not on a greater than pro rata basis) in any                 mandatory prepayments of such Term Loans hereunder;                         (ii)   The  All-In-Yield  applicable  to  the  Incremental  Equivalent  Debt  shall  be  determined by the Borrower and the lenders in respect of such Incremental Equivalent Debt; provided, however, that,  in the case of any Incremental Equivalent Debt that is secured by the Collateral on a pari passu basis with the Initial  Term Loans, the All-In-Yield applicable to such Incremental Equivalent Debt shall not be greater than the applicable  All-In-Yield payable pursuant to this Agreement with respect to the Initial Term Loans plus 50 basis points per annum,  unless the Interest Rate (together with, as provided in clause (y) of the proviso below, the Eurodollar Rate or Base  Rate floor) with respect to such Initial Term Loans is increased so as to cause the then applicable All-In-Yield under                                                   62 

 

this Agreement on such Initial Term Loans to equal the All-In-Yield then applicable to such Incremental Equivalent  Debt minus 50 basis points; provided further that (x) to the extent the “All-In Yield” on any Incremental Equivalent  Debt is based on a fixed rate, the difference between the “All-in Yield” on the Initial Term Loans and the “All-In  Yield” on such Incremental Equivalent Debt shall be determined based on the Eurodollar Rate in effect on the closing  date of such Incremental Equivalent Debt and (y) that any increase in All-In-Yield to the Initial Term Loans due to  the application of any Eurodollar Rate floor or Base Rate floor on any Incremental Equivalent Debt shall be effected  solely  through  an  increase  in  (or  implementation  of,  as  applicable)  any  Eurodollar  Rate  floor  or  Base  Rate  floor  applicable to the Initial Term Loans; and                         (iii)  The Incremental Equivalent Debt shall not be subject to any Guarantee by any  Person other than a Loan Party and shall not include any borrower other than the Borrower and, to the extent secured,  such Incremental Equivalent Debt shall not be secured by assets other than Collateral (except pursuant to an escrow  or similar arrangement with respect to the proceeds of such Incremental Equivalent Debt) and may not be secured  pursuant to any security documentation that is more restrictive to the Borrower and the Guarantors than this Agreement  and the other Loan Documents;                         (iv)   No  Incremental  Equivalent  Debt  shall  become  effective  unless  no  Event  of  Default (or, in connection with a Limited Condition Acquisition, no Specified Default) shall have occurred and be  continuing or would result therefrom.          2.13    Extension Amendments.                  (a)    The Borrower may, at any time and from time to time after the Closing Date, request that  all or a portion of the Term Loans of a given Class (each, an “Existing Tranche”) be amended to extend the scheduled  Maturity Date(s) with respect to all or a portion of such Term Loans (any such Term Loans which have been so  amended, “Extended Term Loans”, with any Term Loans of the Existing Tranche not so extended being referred to as  “Non-Extended Term Loans”) and to provide for other terms consistent with this Section 2.13.  In order to establish  any Extended Term Loans, the Borrower shall provide a notice to the Administrative Agent (who shall provide a copy  of such notice to each of the Lenders of the applicable Existing Tranche) (an “Extension Request”) setting forth the  proposed terms of the Extended Term Loans to be established, which Extension Request may be modified, revoked,  or revoked and reissued by the Borrower at any time prior to the effectiveness of the Extension Amendment.                    (b)    The  Borrower  shall  provide  the  applicable  Extension  Request  at  least  ten  (10) Business Days (or such shorter period as may be agreed to by the Administrative Agent) prior to the date on  which Lenders under the applicable Existing Tranche or Existing Tranches are requested to respond.  Any Lender (an  “Extending Lender”) wishing to have all or a portion of its Term Loans under the Existing Tranche subject to such  Extension Request amended into Extended Term Loans shall notify the Administrative Agent (each, an “Extension  Election”) on or prior to the date specified in such Extension Request of the amount of its Term Loans under the  Existing  Tranche  that  it  has elected  to  request  be  amended  into  Extended  Term  Loans  (subject  to  any  minimum  denomination  requirements  reasonably  imposed  by  the  Administrative  Agent).   In  the  event  that  the  aggregate  principal amount of Term Loans subject to Extension Elections exceeds the amount of Extended Term Loans requested  pursuant to the Extension Request, the Term Loans subject to Extension Elections shall be amended to Extended Term  Loans on a pro rata basis (subject to rounding by the Administrative Agent, which shall be conclusive) based on the  aggregate principal amount of Term Loans included in each such Extension Election.                  (c)    The terms of the Extended Term Loans to be established pursuant to an Extension Request  shall (x) be identical as offered to each Lender under such Existing Tranche (including as to the proposed Interest  Rates and fees payable, but excluding any arrangement, structuring or other fees payable in connection therewith that  are not generally shared with all Extending Lenders) and offered pro rata to each Lender under such Existing Tranche  and (y) shall be identical to the Term Loans under the Existing Tranche from which such Extended Term Loans are  to be amended, except that (I) all or any of the scheduled amortization payments of principal of the Extended Term  Loans may be delayed to later dates than the scheduled amortization payments of principal of the Term Loans of such  Existing Tranche, to the extent provided in the applicable Extension Amendment; provided, however, that at no time  shall there be Classes of Term Loans hereunder (including Incremental Term Loans, Refinancing Term Loans and  Extended Term Loans) which have more than three (3) different Maturity Dates (unless otherwise consented to by the  Administrative Agent); (II) the All-In-Yield with respect to the Extended Term Loans (whether in the form of interest                                                  63 

 

rate margin, upfront fees, original issue discount or otherwise) may be different than the All-In-Yield for the Term  Loans of such Existing Tranche, in each case, to the extent provided in the applicable Extension Amendment; (III) the  Extension Amendment may provide for other covenants and terms that apply solely to any period after the latest  Maturity  Date  that  is  in  effect  on  the  effective  date  of  the  Extension  Amendment  (immediately  prior  to  the  establishment of such Extended Term Loans); and (IV) Extended Term Loans may have call protection as may be  agreed by the Borrower and the Lenders thereof.  In any event, the Extended Term Loans:                         (i)    as of the Extension Date, shall not mature earlier than the Maturity Date with  respect to the Term Loans in the Existing Tranche;                         (ii)   as of the Extension Date, shall have a Weighted Average Life to Maturity not  shorter than the remaining Weighted Average Life to Maturity of the Term Loans in the Existing Tranche (except by  virtue of amortization of prepayment of the Term Loans in the Existing Tranche prior to the time of such Incurrence);                         (iii)  shall be permitted by the terms of all Acceptable Intercreditor Agreements (to the  extent any Acceptable Intercreditor Agreement is then in effect);                         (iv)   may, in the case of Extended Term Loans that are to be pari passu in right of  payment and right of security with then existing Term Loans, participate on a pro rata basis, or less than a pro rata basis (but not on a greater than pro rata basis), in any voluntary prepayments of such Term Loans hereunder, as  specified in the respective Extension Amendment.   Any Extended Term Loans amended pursuant to any Extension Request shall be designated a Class (each, a “Term  Loan Extension Series”) of Extended Term Loans for all purposes of this Agreement; provided that any Extended  Term Loans amended from an Existing Tranche may, to the extent provided in the applicable Extension Amendment,  be designated as an increase in any previously established Term Loan Extension Series with respect to such Existing  Tranche (in which case scheduled amortization with respect thereto shall be proportionately increased).                  (d)    Extended  Term  Loans  shall  be  established  pursuant  to  an  amendment  (an  “Extension  Amendment”) to this Agreement (which may include amendments to provisions related to maturity, interest margins  or fees referenced in Section 2.13(c)(II) and which, except to the extent expressly contemplated by the penultimate  sentence of this Section 2.13(d) and notwithstanding anything to the contrary set forth in Section 11.1, shall not require  the consent of any Lender other than the Extending Lenders with respect to the Extended Term Loans established  thereby)  executed  by  the  Borrower,  the  Guarantors,  the  Administrative  Agent  and  the  Extending  Lenders.   Notwithstanding anything to the contrary in this Agreement and without limiting the generality or applicability of  Section 11.1 to any Section 2.13 Additional Amendments, any Extension Amendment may provide for additional  terms  and/or  additional  amendments  other  than  those  referred  to  or  contemplated  above  (any  such  additional  amendment, a “Section 2.13 Additional Amendment”) to this Agreement and the other Loan Documents; provided  that  such  Section  2.13  Additional  Amendments  do not become  effective  prior  to  the  time  that  such  Section  2.13  Additional Amendments have been consented to (including pursuant to consents applicable to holders of any Extended  Term Loans provided for in any Extension Amendment) by such of the Lenders, the Borrower, the Guarantors and  other parties (if any) as may be required in order for such Section 2.13 Additional Amendments to become effective  in accordance with Section 11.1.  It is understood and agreed that each Lender has consented for all purposes requiring  its consent, and shall at the effective time thereof be deemed to consent to each amendment to this Agreement and the  other Loan Documents authorized by this Section 2.13 and the arrangements described above in connection therewith  except that the foregoing shall not constitute a consent on behalf of any Lender to the terms of any Section 2.13  Additional Amendment.  In connection with any Extension Amendment, the Borrower shall deliver an Opinion of  Counsel as to the enforceability of such Extension Amendment, this Agreement as amended thereby, and such of the  other Loan Documents (if any) as may be amended thereby.                   (e)    Notwithstanding  anything  to the  contrary  contained  in  this  Agreement,  on  any  date  on  which  any  Existing  Tranche  is  converted  to  extend  the  related  scheduled  Maturity  Date(s)  in  accordance  with  clause (a)  above  (an  “Extension  Date”), (i) the  scheduled repayments  set  forth  in  Section 2.5  with  respect  to  any  Existing Tranche subject to an Extension Election shall be modified to reflect a reduction in the principal amount of  Term Loans required to be paid thereunder in an amount equal to the aggregate principal amount of the Extended  Term Loans amended pursuant to the applicable Extension Amendment (with such amount to be applied ratably to                                                  64 

 

reduce scheduled repayments of such Term Loans required pursuant to Section 2.5) and (ii) the prepayments set forth  in Sections 2.3(a) and 2.3(b) shall be modified to reflect the existence of Extended Term Loans and the application of  prepayments with respect thereto.                  (f)    If, in connection with any proposed Extension Amendment, any Lender declines to consent  to the extension of its applicable Term Loans on the terms and by the deadline set forth in the applicable Extension  Request (each such other Lender, a “Non-Extending Lender”) then the Borrower may, on notice to the Administrative  Agent and the Non-Extending Lender, (i) replace such Non-Extending Lender by causing such Lender to (and such  Lender  shall  be obligated  to)  assign  pursuant  to  Section 11.13  (with  the  assignment  fee  and  any  other  costs  and  expenses to be paid by the Borrower in such instance) all of its rights and obligations under this Agreement to one or  more  assignees;  provided  that  neither  the  Administrative  Agent  nor  any  Lender  shall  have  any  obligation  to  the  Borrower to find a replacement Lender; provided, further, that the applicable assignee shall have agreed to provide an  applicable Term Loan on the terms set forth in such Extension Amendment; and provided, further, that all obligations  of the Borrower owing to the Non-Extending Lender relating to the Term Loans so assigned shall be paid in full by  the assignee Lender to such Non-Extending Lender concurrently with such Assignment and Assumption or (ii) upon  notice to the Administrative Agent, to prepay the Term Loans of such Non-Extending Lender, in whole or in part,  subject to Section 3.5, without premium or penalty.  In connection with any such replacement under this Section 2.13,  if the Non-Extending Lender does not execute and deliver to the Administrative Agent a duly completed Assignment  and Assumption and/or any other documentation necessary to reflect such replacement by the later of (A) the date on  which  the  replacement  Lender  executes  and  delivers  such  Assignment  and  Assumption  and/or  such  other  documentation and (B) the date as of which all obligations of the Borrower owing to the Non-Extending Lender  relating to the Term Loans so assigned shall be paid in full by the assignee Lender to such Non-Extending Lender,  then such Non-Extending Lender shall be deemed to have executed and delivered such Assignment and Assumption  and/or such other documentation as of such date and the Borrower shall be entitled (but not obligated) to execute and  deliver such Assignment and Assumption and/or such other documentation on behalf of such Non-Extending Lender.                   (g)    Following  any  Extension  Date,  with  the  written  consent  of  the  Borrower,  any  Non- Extending Lender may elect to have all or a portion of its Term Loans under an Existing Tranche deemed to be an  Extended Term Loans under the applicable Term Loan Extension Series on any date (each date a “Designation Date”)  prior to the maturity date of such Extended Term Loans; provided that (i) such Lender shall have provided written  notice to the Borrower and the Administrative Agent at least ten (10) Business Days (or such shorter period as may  be agreed to by the Administrative Agent) prior to such Designation Date and (ii) no more than three (3) Designation  Dates may occur in any one-year (1-year) period without the written consent of the Administrative Agent.  Following  a Designation Date, the Term Loans under the Existing Tranche held by such Lender so elected to be extended will  be deemed to be Extended Term Loans of the applicable Term Loan Extension Series and any Term Loans under an  Existing Tranche held by such Lender not elected to be extended, if any, shall continue to be “Non-Extended Term  Loans.”                  (h)    With respect to all extensions consummated by the Borrower pursuant to this Section 2.13,  (i) such extensions shall not constitute payments or prepayments for purposes of Section 2.3(a) and (ii) no Extension  Request is required to be in any minimum amount or any minimum increment, provided that the Borrower may at  their election specify as a condition (a “Minimum Extension Condition”) to consummating any such extension that a  minimum amount (to be determined and specified in the relevant Extension Request in the Borrower’s discretion and  may be waived by the Borrower) of Term Loans under an Existing Tranche be extended.  The Administrative Agent  and the Lenders hereby consent to the transactions contemplated by this Section 2.13 (including, for the avoidance of  doubt, payment of any interest, fees or premium in respect of any Extended Term Loans on such terms as may be set  forth  in  the  relevant  Extension  Request)  and  hereby  waive  the  requirements  of  any  provision  of  this  Agreement  (including Section 2.11) or any other Loan Document that may otherwise prohibit any such extension or any other  transaction contemplated by this Section 2.13.           2.14    Refinancing Amendments.                  (a)    The Borrower may, at any time or from time to time after the Closing Date, by notice to  the Administrative Agent (a “Refinancing Term Loan Request”), request the establishment of one or more new Classes  of  Term  Loans  under  this  Agreement  (any  such  new  Class,  “Refinancing  Term  Commitments”),  established  in  exchange for, or to replace, repurchase, retire or refinance, in whole or in part, as selected by the Borrower, any one                                                  65 

 

or more then-existing Class or Classes of Term Loans (with respect to a particular Refinancing Term Commitment or  Refinancing Term Loan, such existing Term Loans, “Refinanced Debt”), whereupon the Administrative Agent shall  promptly deliver a copy of each such notice to each of the Lenders holding such proposed Refinanced Debt.                  (b)    Each Refinancing Term Loan Request from the Borrower pursuant to this Section 2.14  shall set forth the requested amount and proposed terms of the relevant Refinancing Term Loans and identify the  proposed Refinanced Debt with respect thereto.  Any Refinancing Term Loans made pursuant to Refinancing Term  Commitments  made  on  a  Refinancing  Closing  Date  (as  defined  below)  shall  be  designated  a  separate  Class  of  Refinancing Term Loans for all purposes of this Agreement.  Refinancing Term Loans may be made by any existing  Lender (but no existing Lender will have an obligation to make any Refinancing Term Commitment, nor will the  Borrower have any obligation to approach any existing Lender to provide any Refinancing Term Commitment) or by  any Additional Lender (each such Additional Lender providing such Refinancing Term Commitment or Refinancing  Term  Loan,  a  “Refinancing  Term  Lender”);  provided  that  the  Administrative  Agent  shall  have  consented  (such  consent not to be unreasonably conditioned, withheld or delayed) to such Lender’s or Additional Lender’s making  such Refinancing Term Loans to the extent such consent, if any, would be required under Section 11.6(b)(iii) for an  assignment of Term Loans, to such Additional Lender.                  (c)    On any Refinancing Closing Date on which any Refinancing Term Commitments of any  Class are effected, subject to the satisfaction of the terms and conditions in this Section 2.14, (i) each Refinancing  Term Lender of such Class shall make a Term Loan, severally, but not jointly or jointly and severally with the other  Refinancing Term Lenders, to the Borrower (a “Refinancing Term Loan”) in an amount equal to its Refinancing Term  Commitment of such Class and (ii) each Refinancing Term Lender of such Class shall become a Lender hereunder  with respect to the Refinancing Term Commitment of such Class and the Refinancing Term Loans of such Class made  pursuant thereto.                  (d)    The terms, provisions and documentation of the Refinancing Term Loans and Refinancing  Term Commitments of any Class shall be as agreed between the Borrower, the applicable Refinancing Term Lenders  providing such Refinancing Term Loans or Refinancing Term Commitments and the Administrative Agent (in the  case of the Administrative Agent, only with respect to terms and provisions not otherwise specified in this Section 2.14  that adversely affect the rights or obligations of the Administrative Agent), and except as otherwise set forth herein,  to the extent not substantially identical to any Class of Term Loans existing on the Refinancing Closing Date, shall be  consistent  with  clauses (i)  through  (vi)  below  and  otherwise  shall  be  no  more  restrictive,  taken  as  a  whole  (as  determined in good faith by the Borrower), than the terms applicable to the Class of Term Loans being Refinanced  (except for (1) covenants or other provisions applicable only to periods after the Maturity Date (as of the applicable  Refinancing Closing Date) or that are also added for the benefit of the Term Loans existing on such Refinancing  Closing Date and (2) pricing, fees, rate floors, amortization or maturity).  In any event each Refinancing Term Loan  and Refinancing Term Commitment:                         (i)    at the Borrower’s option, may rank pari passu or junior in right of payment with  the  Obligations  under  the  then  existing  Term  Loans,  may  be pari passu  or  junior  in  right  of  security  with  the  Obligations  under  the  then  existing  Term  Loans  (and,  if  junior  in  right  of  security,  subject  to  an  Acceptable  Intercreditor Agreement) or may be unsecured;                         (ii)   as of the Refinancing Closing Date, shall not mature earlier than the Maturity Date  of the Refinanced Debt;                         (iii)  shall have a Weighted Average Life to Maturity not shorter than the remaining  Weighted Average Life to Maturity of the Refinanced Debt on the date of Incurrence of such Refinancing Term Loans  (except by virtue of amortization or prepayment of the Refinanced Debt prior to the time of such Incurrence);                         (iv)   shall have an applicable margin and, subject to clauses (d)(ii) and (d)(iii) above,  amortization determined by the Borrower and the applicable Refinancing Term Lenders;                         (v)    shall not be subject to any Guarantee by any Person other than a Loan Party and  shall not include any borrower other than the Borrower and, to the extent secured, such Refinancing Term Loans shall  not be secured by assets other than Collateral (except pursuant to an escrow or similar arrangement with respect to the                                                  66 

 

proceeds of such Refinancing Term Loans) and may not be secured pursuant to any security documentation that is  more restrictive to the Borrower and the Guarantors than this Agreement and the other Loan Documents; and                         (vi)   may, in the case of any Refinancing Term Loans that are pari passu in right of  payment and right of security with then existing Term Loans, provide for the ability to participate on a pro rata basis,  or on a less than pro rata basis (but not on a greater than pro rata basis), in any voluntary or mandatory prepayments  of such Term Loans hereunder, as specified in the applicable Refinancing Amendment.                  (e)    The  effectiveness  of  any  Refinancing  Amendment,  and  the  Refinancing  Term  Commitments thereunder, shall be subject to the satisfaction on the date thereof (a “Refinancing Closing Date”) of  each of the following conditions, together with any other conditions set forth in the Refinancing Amendment:                         (i)    each Refinancing Term Commitment shall be in an aggregate principal amount  that is not less than $5,000,000 and shall be in an increment of $1,000,000 (provided that such amount may be less  than $5,000,000 and not in an increment of $1,000,000 if such amount is equal to the entire outstanding principal  amount of Refinanced Debt);                          (ii)   after  giving  effect  to  such  Refinancing  Term  Commitments,  (A)  the  representations and warranties made by the Borrower and each Guarantor contained herein and in the other Loan  Documents shall be true and correct in all material respects on and as of such closing date, except to the extent that  such representations and warranties specifically refer to an earlier date, in which case they shall have been true and  correct in all material respects, as of such earlier date (provided that, to the extent any such representation and warranty  is qualified by, or subject to, “materiality”, “Material Adverse Effect” or similar language, the same shall be true and  correct in all respects); (B) no Event of Default shall have occurred and be continuing; and (C) the Borrower shall  have delivered on such closing date an Officers’ Certificate certifying the satisfaction of the conditions set forth in the  foregoing clauses (A) and (B); and                         (iii)  the principal amount (or accreted value, if applicable) of such Refinancing Term  Loans shall not exceed the principal amount (or accreted value, if applicable) of the Refinanced Debt (plus the amount  of  unpaid  accrued  or  capitalized  interest  and  premiums  thereon  (including  make-whole  premiums,  prepayment  premiums,  tender  premiums and  amounts  required  to  be paid  in  connection  with defeasance  and  satisfaction  and  discharge),  underwriting  discounts,  original  issue  discount,  defeasance  costs,  fees  (including  upfront  fees),  commissions and expenses).                  (f)    Refinancing Term Loans shall be established pursuant to an amendment (a “Refinancing  Amendment”) to this Agreement and, as appropriate, the other Loan Documents, executed by the Borrower, each  Refinancing Term Lender providing such Refinancing Term Loans and the Administrative Agent.  The Refinancing  Amendment may, without the consent of any other Loan Party, agent or Lender, effect such amendments to this  Agreement  and  the  other  Loan  Documents  as  may  be  necessary  or  appropriate,  in  the  reasonable  opinion  of  the  Administrative  Agent  and  the  Borrower,  to  effect  the  provisions  of  this  Section 2.14,  including,  if  applicable,  amendments  as  deemed  necessary  by  the  Administrative  Agent  in  its  reasonable  judgment  to  effect  any  lien  subordination and associated rights of the applicable Lenders to the extent any Refinancing Term Loans are to rank  junior in right of security.  The Borrower will use the proceeds, if any, of the Refinancing Term Loans in exchange  for,  or  to  extend,  renew,  replace,  repurchase,  retire  or  refinance,  and  shall  permanently  terminate  applicable  commitments under, substantially concurrently, the applicable Refinanced Debt.          2.15    Defaulting Lenders.                    (a)    Adjustments.  Notwithstanding anything to the contrary contained in this Agreement, if  any Lender becomes a Defaulting Lender, then, until such time as that Lender is no longer a Defaulting Lender, to the  extent permitted by Applicable Law:                         (i)    Waivers  and  Amendments.   Such  Defaulting  Lender’s  right  to  approve  or  disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in Section  11.1 and in the definition of “Required Lender” and “Required Class Lender”, as applicable.                                                   67 

 

                      (ii)   Defaulting Lender Waterfall.  Any payment of principal, interest, fees or other  amounts  received  by  the  Administrative  Agent  for  the  account  of  such  Defaulting  Lender  (whether  voluntary  or  mandatory,  at  maturity,  pursuant  to  Article  VIII  or  otherwise)  or  received  by  the  Administrative  Agent  from  a  Defaulting  Lender  pursuant  to  Section  11.8  shall  be  applied  at  such  time  or  times  as  may  be  determined  by  the  Administrative  Agent  as  follows: first,  to  the  payment  of  any  amounts  owing  by  such  Defaulting  Lender  to  the  Administrative Agent hereunder; second, as the Borrower may request (so long as no Default or Event of Default  exists), to the funding of any Term Loan in respect of which such Defaulting Lender has failed to fund its portion  thereof as required by this Agreement, as determined by the Administrative Agent; third, if so determined by the  Administrative Agent and the Borrower, to be held in a deposit account and held as cash collateral for future funding  obligations  of  the  Defaulting  Lender  under  this  Agreement; fourth, to the payment of any amounts owing to the  Lenders  as  a  result  of  any  judgment  of  a  court  of  competent  jurisdiction  obtained  by  any  Lender  against  such  Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; fifth, so long  as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any  judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of  such Defaulting Lender’s breach of its obligations under this Agreement; and sixth, to such Defaulting Lender or as  otherwise directed by a court of competent jurisdiction; provided that if such payment is a payment of the principal  amount of any Term Loans in respect of which a Defaulting Lender has not fully funded its appropriate share, such  payment shall be applied solely to pay the Term Loans of all Non-Defaulting Lenders pro rata prior to being applied  to the payment of any Term Loans of any 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 pursuant to this  Section 2.15(a)(ii) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably  consents hereto.                  (b)    Defaulting Lender Cure.  If the Borrower and the Administrative Agent agree in writing  that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto.                                             ARTICLE III                          TAXES, YIELD PROTECTION AND ILLEGALITY          3.1     Taxes.                  (a)    Defined Terms:  For purposes of this Section 3.1, the term “Applicable Law” includes  FATCA.                  (b)    Payments Free of Taxes.  Any and 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 any Taxes, except as  required by Applicable Law.  If any Applicable Law (as determined in the good faith discretion of an applicable  Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding  Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely  pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Law  and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as  necessary so that after such deduction or withholding has been made (including such deductions and withholdings  applicable to additional sums payable under this Section 3.1) the applicable Recipient receives an amount equal to the  sum it would have received had no such deduction or withholding been made.                  (c)    Payment of Other Taxes by Borrower.  The Loan Parties  shall timely pay to the relevant  Governmental Authority in accordance with Applicable Law, or at the option of the Administrative Agent timely  reimburse it for the payment of, any Other Taxes.                  (d)    Indemnification by Borrower.  Each of the Loan Parties shall indemnify each Recipient,  within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes  imposed or asserted on or attributable to amounts payable under this Section 3.1) 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  (other  than  penalties,  interest  and  expenses  directly  attributable  to  the  gross  negligence or willful misconduct of the Recipient), whether or not such Indemnified Taxes were correctly or legally                                                  68 

 

imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or  liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative  Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.                  (e)    Indemnification by the Lenders.  Each Lender shall severally indemnify the Administrative  Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only  to the extent that any Loan Party has not already indemnified the Administrative Agent for such Indemnified Taxes  and without limiting the obligation of the Loan Parties to do so), (ii) any Taxes attributable to such Lender’s failure  to comply with the provisions of Section 11.6(d) relating to the maintenance of a Participant Register and (iii) any  Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in  connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether  or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate  as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive  absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all  amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative  Agent to the Lender from any other source against any amount due to the Administrative Agent under this clause (e).                  (f)    Evidence of Payments. As soon as practicable after any payment of Taxes by the Borrower  to a Governmental Authority as provided in this Section 3.1, the Borrower shall deliver to the Administrative Agent  the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy  of any return required by laws to report such payment or other evidence of such payment reasonably satisfactory to  the Administrative Agent.                 (g)    Status of Lenders; Tax Documentation.                         (i)    Any Lender that is entitled to an exemption from or reduction of withholding Tax  with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent,  at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and  executed  documentation  reasonably  requested  by  the  Borrower  or  the  Administrative  Agent  as  will  permit  such  payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably  requested  by  the  Borrower  or  the  Administrative  Agent,  shall  deliver  such  other  documentation  prescribed  by  Applicable Law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or  the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information  reporting requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the completion,  execution and submission of such documentation (other than such documentation set forth in Section 3.1(e)(ii)(A),  (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or  submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice  the legal or commercial position of such Lender.                         (ii)   Without limiting the generality of the foregoing, in the event that the Borrower is  a U.S. Person,                          (A)    any  Lender  that  is  a  U.S.  Person  shall  deliver  to  the  Borrower  and  the                 Administrative Agent on or prior to the date on which such Lender becomes a Lender under this                 Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the                 Administrative Agent), executed copies of IRS Form W-9 certifying that such Lender is exempt                 from U.S. federal backup withholding tax;                          (B)    any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to                 the Borrower and the Administrative Agent (in such number of copies as shall be requested by the                 recipient)  on or  prior  to  the date  on  which  such  Foreign Lender  becomes  a  Lender  under  this                 Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the                 Administrative Agent), whichever of the following is applicable:                                        (1)    in  the  case  of  a  Foreign  Lender  claiming  the  benefits  of  an                                              income tax treaty to which the United States is a party (x) with                                                  69 

 

                             respect  to  payments  of  interest  under  any  Loan  Document,                               executed  copies  of  IRS  Form  W-8BEN-E  (or  W-8BEN,  as                               applicable)  establishing  an  exemption  from,  or  reduction  of,                               U.S. federal withholding Tax pursuant to the “interest” article                               of such tax treaty and (y) with respect to any other applicable                               payments under any Loan Document, IRS Form W-8BEN-E (or                               W-8BEN,  as  applicable)  establishing  an  exemption  from,  or                               reduction  of,  U.S.  federal  withholding  Tax  pursuant  to  the                               “business profits” or “other income” article of such tax treaty;                         (2)    executed copies of IRS Form W-8ECI; .                         (3)    in  the  case  of  a  Foreign  Lender  claiming  the  benefits  of  the                               exemption  for  portfolio  interest  under  Section  881(c)  of  the                               Code, (x) a certificate substantially in the form of Exhibit G-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  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  “U.S.  Tax                               Compliance Certificate”) and (y) executed copies of IRS Form                               W-8BEN-E (or W-8BEN, as applicable); or                         (4)    to  the  extent  a  Foreign  Lender  is  not  the  beneficial  owner,                               executed copies of IRS Form W-8IMY, accompanied by IRS                               Form  W-8ECI,  IRS  Form  W-8BEN-E  (or  W-8BEN,  as                               applicable), a U.S. Tax Compliance Certificate substantially in                               the form of Exhibit G-2 or Exhibit G-3, IRS Form W-9, and/or                               other  certification documents  from  each  beneficial  owner,  as                               applicable; provided that if the Foreign Lender is a partnership                               and  one  or  more  direct  or  indirect  partners  of  such  Foreign                               Lender  are  claiming  the  portfolio  interest  exemption,  such                               Foreign Lender may provide a U.S. Tax Compliance Certificate                               substantially in the form of Exhibit G-4 on behalf of each such                               direct and indirect partner;           (C)    any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to  the Borrower and the Administrative Agent (in such number of copies as shall be requested by the  recipient)  on or  prior  to  the date  on  which  such  Foreign Lender  becomes  a  Lender  under  this  Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the  Administrative Agent), executed copies of any other form prescribed by Applicable Law as a basis  for claiming exemption from or a reduction in U.S. federal with-holding Tax, duly completed,  together  with  such  supplementary  documentation  as  may  be  prescribed  by  Applicable  Law  to  permit  the  Borrower  or  the  Administrative  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  Borrower  and  the  Administrative Agent at the time or times prescribed by law and at such time or times reasonably  requested  by  the  Borrower  or  the  Administrative  Agent  such  documentation  prescribed  by  Applicable  Law  (including  as  prescribed  by  Section  1471(b)(3)(C)(i)  of  the  Code)  and  such  additional documentation reasonably requested by the Borrower or the Administrative Agent as  may be necessary for the Borrower and the Administrative Agent to comply with their obligations  under FATCA and to determine that such Lender has complied with such Lender’s obligations                                   70 

 

               under FATCA or to determine the amount to deduct and withhold from such payment. Solely for                 purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the                 date of this Agreement.                         (iii)  Each  Lender  agrees  that  if  any  form  or  certification  it  previously  delivered  pursuant to this Section 3.1 expires or becomes obsolete or inaccurate in any respect, it shall update such form or  certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.                  (h)    Treatment of Certain Refunds.  Unless required by Applicable Laws, at no time shall the  Administrative Agent have any obligation to file for or otherwise pursue on behalf of 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 that it has received a refund 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 3.1, it shall pay to  such Loan Party an amount equal to such refund (but only to the extent of indemnity payments made, or additional  amounts paid, by a Loan Party under this Section 3.1 with respect to the Taxes giving rise to such refund), 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 refund), provided that such Loan Party, upon the  request of the Recipient, agrees to repay the amount paid over to the 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 refund to such Governmental Authority.  Notwithstanding anything to the contrary in this clause (h), in no  event will the applicable Recipient be required to pay any amount to any Loan Party pursuant to this clause (h) the  payment of which would place the Recipient in a less favorable net after-Tax position than such Recipient would have  been  in  if  the  Tax  subject  to  indemnification  and  giving  rise  to  such  refund  had  not  been  deducted,  withheld  or  otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been  paid.   This  subsection  shall  not  be  construed  to  require  any  Recipient  to  available  its  tax  returns  (or  any  other  information relating to its Taxes that it deems confidential) to any Loan Party or any other Person.                  (i)    Survival.  Each party’s obligations under this Section 3.1 shall survive the resignation or  replacement  of  the  Administrative  Agent  or  any  assignment  of  rights  by,  or  the  replacement  of,  a  Lender,  the  termination of the Commitments and the repayment, satisfaction or discharge of all other Obligations.          3.2     Illegality.  If any Lender determines that any Law has made it unlawful, or that any Governmental  Authority has asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or fund  Term Loans whose interest is determined by reference to the Eurodollar Rate, or to determine or charge interest rates  based upon the Eurodollar Rate, or any Governmental Authority has imposed material restrictions on the authority of  such Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market, then, upon notice  thereof by such Lender to the Borrower (through the Administrative Agent), (a) any obligation of such Lender to make  or continue Eurodollar Rate Term Loans or to convert Base Rate Term Loans to Eurodollar Rate Term Loans shall be  suspended, and (b) if such notice asserts the illegality of such Lender making or maintaining Base Rate Term Loans  the interest rate on which is determined by reference to the Eurodollar Rate component of the Base Rate, the interest  rate on which Base Rate Term Loans of such Lender shall, if necessary to avoid such illegality, be determined by the  Administrative Agent without reference to the Eurodollar Rate component of the Base Rate, in each case until such  Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination  no longer exist.  Upon receipt of such notice, (i) the Borrower shall, upon demand from such Lender (with a copy to  the Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate Term Loans of such Lender to Base  Rate Term Loans (the interest rate on which Base Rate Term Loans of such Lender shall, if necessary to avoid such  illegality, be determined by the Administrative Agent without reference to the Eurodollar Rate component of the Base  Rate), either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such  Eurodollar Rate Term Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such  Eurodollar Rate Term Loans and (ii) if such notice asserts the illegality of such Lender determining or charging interest  rates based upon the Eurodollar Rate, the Administrative Agent shall during the period of such suspension compute  the  Base  Rate  applicable  to  such  Lender  without  reference  to  the  Eurodollar  Rate  component  thereof  until  the  Administrative Agent is advised in writing by such Lender that it is no longer illegal for such Lender to determine or  charge interest rates based upon the Eurodollar Rate.  Upon any such prepayment or conversion, the Borrower shall  also  pay  accrued  interest  on  the  amount  so  prepaid  or  converted,  together  with  any  additional  amounts  required  pursuant to Section 3.5.                                                  71 

 

       3.3     Inability to Determine Rates.                  (a)    If in connection with any request for a Eurodollar Rate Term Loan or a conversion to or  continuation thereof, (i)  the Administrative Agent determines that (A) Dollar deposits are not being offered to banks  in the London interbank Eurodollar market for the applicable amount and Interest Period of such Eurodollar Rate  Term  Loan,  or  (B)  (x)  adequate  and  reasonable  means  do  not  exist  for  determining  the  Eurodollar  Rate  for  any  requested Interest Period with respect to a proposed Eurodollar Rate Term Loan or in connection with an existing or  proposed Base Rate Term Loan and (y) the circumstances described in Section 3.3(c)(i) do not apply (in each case  with respect to this clause (i), “Impacted Loans”), or (ii) the Administrative Agent or the Required Lenders determine  that for any reason the Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Rate  Term Loan does not adequately and fairly reflect the cost to such Lenders of funding such Eurodollar Rate Term Loan,  the Administrative Agent will promptly so notify the Borrower and each Lender.  Thereafter, (x) the obligation of the  Lenders to make or maintain Eurodollar Rate Term Loans shall be suspended (to the extent of the affected Eurodollar  Rate Term Loans or Interest Periods), and (y) in the event of a determination described in the preceding sentence with  respect  to  the  Eurodollar  Rate  component  of  the  Base  Rate,  the  utilization  of  the  Eurodollar  Rate  component  in  determining  the  Base  Rate  shall  be  suspended,  in  each  case  until  the  Administrative  Agent  (or,  in  the  case  of  a  determination by the Required Lenders described in clause (ii) of Section 3.3(a), until the Administrative Agent upon  instruction of the Required Lenders) revokes such notice.  Upon receipt of such notice, the Borrower may revoke any  pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate Term Loans (to the extent of the  affected Eurodollar Rate Term Loans or Interest Periods) or, failing that, will be deemed to have converted such  request into a request for a Borrowing of Base Rate Term Loans in the amount specified therein.                  (b)    Notwithstanding the foregoing, if the Administrative Agent has made the determination  described in clause (i) of Section 3.3(a), the Administrative Agent, in consultation with the Borrower, may establish  an alternative interest rate for the Impacted Loans, in which case, such alternative rate of interest shall apply with  respect to the Impacted Loans until (i) the Administrative Agent revokes the notice delivered with respect to the  Impacted Loans under clause (i) of the first sentence of Section 3.3(a), (ii) the Administrative Agent or the Required  Lenders notify the Administrative Agent and the Borrower that such alternative interest rate does not adequately and  fairly reflect the cost to such Lenders of funding the Impacted Loans, or (iii) any Lender determines that any Law has  made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for such Lender or its applicable  Lending Office to make, maintain or fund Term Loans whose interest is determined by reference to such alternative  rate of interest or to determine or charge interest rates based upon such rate or any Governmental Authority has  imposed  material  restrictions  on  the  authority  of  such  Lender  to  do  any  of  the  foregoing  and  provides  the  Administrative Agent and the Borrower written notice thereof.                  (c)    Notwithstanding anything to the contrary in this Agreement or any other Loan Document,  if  the  Administrative  Agent  determines  (which  determination  shall  be  conclusive  absent  manifest  error),  or  the  Borrower or Required Lenders notify the Administrative Agent (with, in the case of the Required Lenders, a copy to  the Borrower) that the Borrower or Required Lenders (as applicable) have determined, that:                         (i)    adequate  and  reasonable  means  do  not  exist  for  ascertaining  LIBOR  for  any  requested Interest Period, including, without limitation, because the LIBOR Screen Rate is not available or published  on a current basis and such circumstances are unlikely to be temporary; or                         (ii)   the administrator of the LIBOR Screen Rate or a Governmental Authority having  jurisdiction over the Administrative Agent has made a public statement identifying a specific date after which LIBOR  or  the  LIBOR  Screen  Rate  shall  no  longer be  made  available,  or used  for  determining  the  interest  rate  of  loans,  provided that, at the time of such statement, there is no successor administrator that is satisfactory to the Administrative  Agent, that will continue to provide LIBOR after such specific date (such specific date, the “Scheduled Unavailability  Date”); or                         (iii)  syndicated loans currently being executed, or that include language similar to that  contained in this Section 3.3, are being executed or amended (as applicable) to incorporate or adopt a new benchmark  interest rate to replace LIBOR,                                                   72 

 

       then,  reasonably  promptly  after  such  determination  by  the  Administrative  Agent  or  receipt  by  the  Administrative  Agent  of  such  notice,  as  applicable,  the  Administrative  Agent  and  the  Borrower  may  amend  this  Agreement solely for the purpose of replacing LIBOR in accordance with this Section 3.3 with (x) one or more SOFR- Based  Rates  or  (y)  another  alternate  benchmark  rate  giving  due  consideration  to  any  evolving  or  then  existing  convention for similar U.S. dollar denominated syndicated credit facilities for such alternative benchmarks and, in  each  case,  including  any  mathematical  or  other  adjustments  to  such  benchmark  giving  due  consideration  to  any  evolving  or  then  existing  convention  for  similar  U.S.  dollar  denominated  syndicated  credit  facilities  for  such  benchmarks, which adjustment or method for calculating such adjustment shall be published on an information service  as selected by the Administrative Agent from time to time in its reasonable discretion and may be periodically updated  (the “Adjustment;” and any such proposed rate, a “LIBOR Successor Rate”), and any such amendment shall become  effective  at  5:00  p.m.  on  the  fifth  Business  Day  after  the  Administrative  Agent  shall have  posted  such  proposed  amendment to all Lenders and the Borrower unless, prior to such time, Lenders comprising the Required Lenders have  delivered to the Administrative Agent written notice that such Required Lenders (A) in the case of an amendment to  replace LIBOR with a rate described in clause (x), object to the Adjustment; or (B) in the case of an amendment to  replace LIBOR with a rate described in clause (y), object to such amendment; provided that for the avoidance of doubt,  in the case of clause (A), the Required Lenders shall not be entitled to object to any SOFR-Based Rate contained in  any such amendment.  Such LIBOR Successor Rate shall be applied in a manner consistent with market practice;  provided that to the extent such market practice is not administratively feasible for the Administrative Agent, such  LIBOR Successor Rate shall be applied in a manner as otherwise reasonably determined by the Administrative Agent.          If no LIBOR Successor Rate has been determined and the circumstances under clause (i) above exist or the  Scheduled Unavailability Date has occurred (as applicable), the Administrative Agent will promptly so notify the  Borrower and each Lender.  Thereafter, (x) the obligation of the Lenders to make or maintain Eurodollar Rate Term  Loans shall be suspended (to the extent of the affected Eurodollar Rate Term Loans or Interest Periods), and (y) the  Eurodollar Rate component shall no longer be utilized in determining the Base Rate.  Upon receipt of such notice, the  Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate Term  Loans (to the extent of the affected Eurodollar Rate Term Loans or Interest Periods) or, failing that, will be deemed  to have converted such request into a request for a Borrowing of Base Rate Term Loans (subject to the foregoing  clause (y)) in the amount specified therein.          Notwithstanding anything else herein, any definition of LIBOR Successor Rate shall provide that in no event  shall such LIBOR Successor Rate be less than 0.75% for purposes of this Agreement.          In connection with the implementation of a LIBOR Successor Rate, the Administrative Agent will have the  right to make LIBOR Successor Rate Conforming Changes from time to time in consultation with the Borrower and,  notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such  LIBOR Successor Rate Conforming Changes will become effective without any further action or consent of any other  party to this Agreement; provided that, with respect to any such amendment effected, the Administrative Agent shall  post each such amendment implementing such LIBOR Successor Rate Conforming Changes to the Lenders reasonably  promptly after such amendment becomes effective.         3.4     Increased Costs.  (a)  Increased Costs Generally.  If any Change in Law shall:                         (i)    impose, modify or deem applicable any reserve, special deposit, compulsory loan,  insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or  participated in by, any Lender (except any reserve requirement);                         (ii)   subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes  described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its  loans, loan principal, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable  thereto; or                         (iii)  impose on any Lender or the London interbank market any other condition, cost  or expense affecting this Agreement or Eurodollar Rate Term Loans made by such Lender;                                                   73 

 

and the result of any of the foregoing shall be to increase the cost to such Lender of making, converting to, continuing  or maintaining any Term Loan (or of maintaining its obligation to make any such Term Loan), or to increase the cost  to such Lender, or to reduce the amount of any sum received or receivable by such Lender (whether of principal,  interest or any other amount) then, upon request of such Lender, the Borrower will pay to such Lender such additional  amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered.                  (b)    Capital Requirements.  If any Lender determines that any Change in Law affecting such  Lender or any Lending Office of such Lender or such Lender’s holding company, if any, regarding capital or liquidity  requirements has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of  such Lender’s holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the  Term Loans made by, such Lender, to a level below that which such Lender or such Lender’s holding company could  have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such  Lender’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such  Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding company for  any such reduction suffered; provided that no Lender shall be entitled to demand compensation for any increased cost  or reduction with respect thereto unless such Lender has requested such payments from similarly situated borrowers  under comparable provisions of other credit agreements to which such Lender is a party.                  (c)    Certificates  for  Reimbursement.   A  certificate  of  a  Lender  setting  forth  the  amount  or  amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in clauses (a)  or (b) of this Section 3.4 and delivered to the Borrower shall be conclusive absent manifest error.  The Borrower shall  pay such Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof.                  (d)    Delay in Requests.  Failure or delay on the part of any Lender to demand compensation  pursuant to the foregoing provisions of this Section 3.4 shall not constitute a waiver of such Lender’s right to demand  such compensation, provided that the Borrower shall not be required to compensate a Lender pursuant to the foregoing  provisions of this Section 3.4 for any increased costs incurred or reductions suffered more than nine months prior to  the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions  and of such Lender’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such  increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include  the period of retroactive effect thereof).                  (e)    Reserves on Eurodollar Rate Term Loans.  The Borrower shall pay to each Lender, as long  as such Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including  Eurocurrency  funds  or  deposits  (currently  known  as  “Eurocurrency  liabilities”),  additional  interest  on  the  unpaid  principal amount of each Eurodollar Rate Term Loan equal to the actual costs of such reserves allocated to such Term  Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive absent  manifest error), which shall be due and payable on each date on which interest is payable on such Term Loan; provided  the Borrower shall have received at least ten (10) days’ prior notice (with a copy to the Administrative Agent) of such  additional interest from such Lender.  If a Lender fails to give notice ten (10) days prior to the relevant Interest Payment  Date, such additional interest shall be due and payable ten (10) days from receipt of such notice.          3.5     Compensation for Losses.  Upon demand of any Lender (with a copy to the Administrative Agent)  from time to time, the Borrower shall promptly compensate such Lender for and hold such Lender harmless from any  loss, cost or expense incurred by it as a result of:                  (a)    any continuation, conversion, payment or prepayment of any Term Loan other than a Base  Rate Term Loan on a day other than the last day of the Interest Period for such Term Loan (whether voluntary,  mandatory, automatic, by reason of acceleration, or otherwise);                  (b)    any failure by the Borrower (for a reason other than the failure of such Lender to make a  Term Loan) to prepay, borrow, continue or convert any Term Loan other than a Base Rate Term Loan on the date or  in the amount notified by the Borrower; or                  (c)    any assignment of a Eurodollar Rate Term Loan on a day other than the last day of the  Interest Period therefor as a result of a request by the Borrower pursuant to Section 11.13;                                                  74 

 

including any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such  Term Loan or from fees payable to terminate the deposits from which such funds were obtained.  The Borrower shall  also pay any customary administrative fees charged by such Lender in connection with the foregoing.   For purposes of calculating amounts payable by the Borrower to the Lenders under this Section 3.5, each Lender shall  be deemed to have funded each Eurodollar Rate Term Loan for such Term Loan by a matching deposit or other  borrowing in the London interbank eurodollar market for a comparable amount and for a comparable period, whether  or not such Eurodollar Rate Term Loan was in fact so funded.          3.6     Mitigation Obligations; Replacement of Lenders.                  (a)    Designation of a Different Lending Office.  Each Lender may make any Term Loan to the  Borrower through any Lending Office, provided that the exercise of this option shall not affect the obligation of the  Borrower  to  repay  such  Term  Loan  in  accordance  with  the  terms  of  this  Agreement.  If  any  Lender  requests  compensation under Section 3.4, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any  Lender, or any Governmental Authority for the account of any Lender pursuant to Section 3.1, or if any Lender gives  a  notice pursuant  to  Section 3.2,  then  at  the  request  of  the  Borrower  such  Lender  shall  use  reasonable  efforts  to  designate a different Lending Office for funding or booking its Term Loans hereunder or to assign its rights and  obligations  hereunder  to  another  of  its  offices,  branches  or  affiliates,  if,  in  the  judgment  of  such  Lender  such  designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.1 or 3.4, as the case  may be, in the future, or eliminate the need for the notice pursuant to Section 3.2, as applicable, and (ii) in each case,  would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to  such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in  connection with any such designation or assignment.                  (b)    Replacement of Lenders.  If any Lender requests compensation under Section 3.4, or if the  Borrower  is  required  to  pay  any  Indemnified  Taxes  or  additional  amounts  to  any  Lender  or  any  Governmental  Authority for the account of any Lender pursuant to Section 3.1, and in each case, such Lender has declined or is  unable to designate a different Lending Office in accordance with Section 3.6(a), the Borrower may replace such  Lender in accordance with Section 11.13.          3.7     Survival.  All of the Borrower’s obligations under this Article III shall survive termination of all  Commitments hereunder, repayment of all other Obligations hereunder, and resignation of the Administrative Agent.                                             ARTICLE IV                                            CONDITIONS          4.1     Conditions to Effectiveness of Agreement.  This Agreement shall become effective on the date on  which each of the following conditions is satisfied (it being understood that the obligations of the Lenders to make  Initial Term Loans hereunder are subject to the satisfaction of the additional conditions precedent set forth in Section  4.2):                  (a)    This Agreement, the Security Agreement, the Intellectual Property Security Agreement,  the Perfection Certificate and the ABL Intercreditor Agreement shall have been executed by each party thereto.                  (b)    All fees required to be paid on the Closing Date pursuant to the Fee Letters and reasonable  and documented out-of-pocket expenses required to be paid on the Closing Date pursuant to this Agreement, to the  extent, in the case of expenses, invoiced at least three (3) Business Days prior to the Closing Date, shall, upon the  funding of the Initial Term Loans, have been paid (which amounts may be offset against the proceeds of the Initial  Term Loans).                   (c)    The Borrower shall have executed and delivered a Note in favor of each Lender requesting  the same;                                                   75 

 

               (d)    The Administrative Agent shall have received each of the financial statements referred to  in Section 5.6(a).                  (e)    [Reserved.]                  (f)    The Administrative Agent shall have received:                         (i)    acknowledgement  copies  or  stamped  receipt  copies  of  proper  financing  statements, duly filed on or before the Closing Date under the UCC of all jurisdictions that the Administrative Agent  may deem necessary or desirable in order to perfect the Liens created under the Security Agreement, covering the  Collateral described in the Security Agreement;                         (ii)   certified copies of UCC, tax and judgment lien searches or equivalent reports or  searches,  each  of  a  recent  date  listing  all  effective  financing  statements,  lien  notices  or  comparable  documents  (together with copies of such financing statements and documents) that name any Loan Party as debtor and that are  filed in those state and county jurisdictions in which any Loan Party is organized or maintains its principal place of  business and such other searches that are required by the Perfection Certificate or that the Administrative Agent deems  necessary or appropriate, none of which encumber the Collateral covered or intended to be covered by the Collateral  Documents (other than Permitted Liens); and                         (iii)  evidence  that  all  other  actions,  recordings  and  filings  that  the  Administrative  Agent may deem necessary or desirable in order to perfect the Liens created under the Security Agreement have been  taken (including receipt of duly executed payoff letters, UCC-3 termination statements and landlords’ and bailees’  waiver and consent agreements).                  (g)    Subject to the Limited Conditionality Provision, with respect to each Initial Mortgaged  Property, a Mortgage, duly executed by the appropriate Loan Party, together with each of the following, to the extent  applicable to such Initial Mortgaged Property, shall have been delivered to the Administrative Agent:                         (i)    evidence  that  counterparts  of  such  Mortgage  have  been  duly  executed,  acknowledged and delivered and is in form suitable for filing or recording in all filing or recording offices that the  Administrative Agent may deem necessary or desirable in order to create a valid first and subsisting Lien on the  property described therein in favor of the Administrative Agent for the benefit of the Secured Parties and that all filing,  documentary, stamp, intangible and recording taxes and other fees in connection therewith have been paid;                         (ii)   a  fully  paid  American  Land  Title  Association  (or  applicable  state  equivalent)  mortgagee  policy  of  title  insurance  (the  “Mortgage  Policy”),  with  endorsements  (including  so  called  “survey  coverage” with respect to each Initial Non-Quarry Property) and in amounts acceptable to the Administrative Agent,  issued by title insurers acceptable to the Administrative Agent, insuring the lien of each Mortgage on the property  described therein, free and clear of all Liens, other than Permitted Liens; provided, however, survey coverage and any  other endorsement that requires the existence or preparation of a survey or affidavit in lieu thereof, shall not be required  with respect to any Quarry Property (including, without limitation, with respect to each Initial Quarry Property);                         (iii)  with  respect  to  each  Initial  Non-Quarry  Property,  an  American  Land  Title  Association/National Society of Professional Engineers form survey, for which all necessary fees (where applicable)  have  been  paid,  certified  to  the  Administrative  Agent  and  the  issuer  of  the  Mortgage Policy,  prepared  by  a  land  surveyor duly registered and licensed in the jurisdiction in which the applicable Initial Non-Quarry Property is located  and reasonably acceptable to the Administrative Agent, showing all buildings and other improvements, the location  of any easements, parking spaces, rights of way, building set-back lines and other dimensional regulations, in each  case located on such applicable Initial Non-Quarry Property;                         (iv)   evidence of the insurance required by the terms of Section 6.8;                         (v)    with  respect  to  each  Initial  Non-Quarry  Property,  a  completed  “Life-of-Loan”  Federal  Emergency  Management  Agency  Standard  Flood  Hazard  Determination,  and,  if  such  Initial  Non-Quarry                                                   76 

 

Property is located in a special flood hazard area, (x) a notice to (and confirmation of receipt by) the Borrower as to  the existence of a special flood hazard and, if applicable, the availability of flood hazard insurance under the National  Flood Insurance Program and (y) evidence of applicable flood insurance, if available, in each case in such form, on  such terms and in such amounts as required by the Flood Insurance Laws or as otherwise required by the Lenders; and                         (vi)   an opinion of local counsel as to the enforceability of the Mortgage and such other  matters customarily included in such opinions and reasonably requested by the Administrative Agent.                  (h)    The Administrative Agent shall have received a solvency certificate in the form attached  hereto as Exhibit H from the chief executive officer, chief financial officer or chief accounting officer of the Borrower  that shall certify as to the Solvency of the Borrower and its Subsidiaries (on a consolidated basis) after giving effect  to the Transactions.                  (i)    (i) The representations and warranties of the Loan Parties in the Loan Documents shall be  true and correct in all material respects on and as of the Closing Date, except to the extent that such representations  and warranties specifically refer to an earlier date, in which case they shall have been true and correct in all material  respects, as of such earlier date (provided that, to the extent any such representation and warranty is qualified by, or  subject to, “materiality”, “Material Adverse Effect” or similar language, the same shall be true and correct in all  respects); (ii) no Default or Event of Default shall exist at the time of, or result from, the Transactions; and (iii) the  Administrative Agent shall have received a certificate from a Responsible Officer of the Borrower, dated the Closing  Date, substantially in the form of Exhibit J, certifying the satisfaction of the conditions set forth in the foregoing  clauses (i) and (ii).                  (j)    The Administrative Agent shall have received a certificate from each Loan Party certifying  (i) that attached copies of such Loan Party’s Organization Documents are true and complete, and in full force and  effect, without amendment except as shown; (ii) that an attached copy of resolutions of the Board of Directors (or  equivalent governing body) of such Loan Party authorizing the execution and delivery of the Loan Documents and  the performance of such Loan Party’s obligations thereunder is true and complete, and that such resolutions are in full  force  and  effect,  were  duly  adopted,  have  not been  amended,  modified  or  revoked,  and  constitute  all  resolutions  adopted with respect to this Agreement; and (iii) to the title, name and signature of each Person authorized to sign the  Loan Documents on behalf of such Loan Party.  The Administrative Agent may conclusively rely on this certificate  until it is otherwise notified by the applicable Loan Party in writing.                  (k)    The Administrative Agent shall have received a written opinion of Akin Gump Strauss  Hauer & Feld LLP, as well as any local counsel to any Loan Party reasonably required by the Administrative Agent,  in form and substance reasonably satisfactory to the Administrative Agent.                  (l)    The Administrative Agent shall have received copies of the charter documents of each  Loan  Party,  certified  by  the  Secretary  of  State  or  other  appropriate  official  of  such  Loan  Party’s  jurisdiction  of  organization.  The Administrative Agent shall have received good standing certificates for each Loan Party, issued by  the Secretary of State or other appropriate official of such Loan Party’s jurisdiction of organization.                  (m)    The Administrative Agent and the Lenders shall have received, at least three (3) Business  Days  prior  to  the  Closing  Date,  a  Beneficial  Ownership  Certification  and  all  other  documentation  and  other  information  that  they  reasonably  determine  is  required  by  regulatory  authorities  under  applicable  “know  your  customer” and anti-money laundering rules and regulations, including the Act, to the extent reasonably requested at  least ten (10) Business Days prior to the Closing Date.          Execution and delivery to the Administrative Agent by a Lender of a counterpart of this Agreement shall be  deemed confirmation by such Lender that (i) all conditions precedent in this Section 4.1 have been fulfilled to the  satisfaction of such Lender, (ii) the decision of such Lender to execute and deliver to the Administrative Agent an  executed  counterpart  of  this  Agreement  was  made  by  such  Lender  independently  and  without  reliance  on  the  Administrative Agent or any other Lender as to the satisfaction of any condition precedent set forth in this Section 4.1,  and (iii) all documents sent to such Lender for approval, consent or satisfaction were acceptable to such Lender.                                                   77 

 

       Notwithstanding anything to the contrary herein or otherwise, to the extent any Mortgage referred to in clause  (g)  above,  or  any  of  the  related  deliverables  and  other  actions  referred  to  in  clauses  (g)(i)  through  (g)(vi)  above  necessary in order to create a valid and subsisting Lien on each such Initial Mortgaged Property, is not or cannot be  provided or taken, as applicable, on or prior to the Closing Date, then the providing of any such Mortgage or any such  related deliverables (or the taking of any required actions in connection therewith) shall not constitute a condition  precedent to the making of the Initial Term Loans on the Closing Date, but such Mortgages and related deliverables  shall be required to be delivered within 120 days after the Closing Date (in each case, subject to extensions to be  reasonably agreed upon by the Administrative Agent) (the foregoing, the “Limited Conditionality Provision”).          4.2     Conditions to Each Funding Date.  The obligation of each Lender to make an Initial Term Loan on  the occasion of any Borrowing (other than any conversion or continuation of any Initial Term Loan) is subject to the  Administrative Agent’s receipt of a Committed Loan Notice in accordance with the requirements hereof and to the  satisfaction of the following conditions:                  (a)    The Specified Representations shall be true and correct in all material respects on and as  of the date of such Borrowing, except to the extent that such representations and warranties specifically refer to an  earlier date, in which case they shall have been true and correct in all material respects, as of such date; provided that,  to the extent any such representation and warranty is qualified by, or subject to, “materiality”, “Material Adverse  Effect” or similar language, the same shall be true and correct in all respects.                  (b)    No Default or Event of Default shall exist at the time of, or result from, such Borrowing.          Each Borrowing (other than any conversion or continuation of any Initial Term Loan) shall be deemed to  constitute a representation and warranty by the Borrower on the date thereof that the conditions specified in  paragraphs (a) and (b) of this Section 4.2 have been satisfied.                                             ARTICLE V                         GENERAL WARRANTIES AND REPRESENTATIONS          To induce the Administrative Agent and the Lenders to enter into this Agreement and to make available the  Term  Loans  contemplated  hereby,  each  Loan  Party  represents  and  warrants  to  the  Administrative  Agent  and  the  Lenders that:          5.1     Organization and Qualification.  Each Loan Party and each Restricted Subsidiary thereof is duly  organized, validly existing and in good standing under the laws of the jurisdiction of its organization, except to the  extent  otherwise  described  on  Schedule  5.1(a).   Each  Loan  Party  and  each  Restricted  Subsidiary  thereof  is  duly  qualified, authorized to do business and in good standing as a foreign corporation in each jurisdiction where failure to  be  so  qualified  could  reasonably  be  expected  to  have  a  Material  Adverse  Effect,  except  to  the  extent  otherwise  described on Schedule 5.1(b).          5.2     Power  and  Authority.   Each  Loan  Party  is  duly  authorized  to  execute,  deliver  and  perform  its  obligations under the Loan Documents to which it is a party.  The execution, delivery and performance of the Loan  Documents have been duly authorized by all necessary action, and do not (a) require any consent or approval of any  holders of Capital Stock of any Loan Party, except those already obtained; (b) contravene the Organization Documents  of any Loan Party; (c) violate or cause a default under any Applicable Law or Material Contract; or (d) result in or  require the imposition of any Lien (other than Permitted Liens) on any Loan Party’s property.          5.3     Enforceability.  Each Loan Document is a legal, valid and binding obligation of each Loan Party  party  thereto,  enforceable  in  accordance  with  its  terms,  except  as  enforceability  may  be  limited  by  bankruptcy,  insolvency or similar laws affecting the enforcement of creditors’ rights generally.          5.4     Capital Structure.  Schedule 5.4(a) shows, as of the Closing Date, for each Loan Party and each  Subsidiary thereof, its name, jurisdiction of organization, authorized and issued shares of Capital Stock, holders of its  shares of Capital Stock, and agreements binding on such holders with respect to such shares of Capital Stock.  Except                                                   78 

 

as disclosed on Schedule 5.4(b), since December 31, 2019 and as of the Closing Date, no Loan Party or Restricted  Subsidiary has acquired any substantial assets from any other Person nor been the surviving entity in a merger or  combination.  Each Loan Party has good title to its shares of Capital Stock in its Subsidiaries, subject only to Permitted  Liens, and all such shares of Capital Stock are duly issued, and, to the extent in the form of corporate stock, fully paid  and non-assessable.  Except as described on Schedule 5.4(c) as of the Closing Date, there are no outstanding purchase  options, warrants, subscription rights, agreements to issue or sell, convertible interests, phantom rights or powers of  attorney relating to Capital Stock of any Loan Party or Subsidiary thereof.          5.5     Title to Properties; Priority of Liens.  (a) Each Loan Party and each Restricted Subsidiary thereof  has good and indefeasible title to (or valid leasehold interests in) all of its Real Estate necessary in the ordinary course  of business, and good title to all of its personal property, including all property reflected in any financial statements  delivered to the Administrative Agent or the Lenders, in each case free of Liens except Permitted Liens.  Each Loan  Party and each Restricted Subsidiary thereof has paid and discharged all lawful claims that, if unpaid, could become  a Lien on its properties, other than Permitted Liens.  Upon execution and delivery thereof by the parties thereto, the  Collateral Documents (other than the Mortgages, which are the subject of Section 5.5(b)) will be effective to create  legal and valid Liens on all the applicable Collateral in favor of the Administrative Agent for the benefit of the Secured  Parties,  except  as  may  be  limited  by  applicable  bankruptcy,  insolvency,  fraudulent  conveyance,  reorganization,  moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles  (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing and,  upon the taking of such actions set forth in the Collateral Documents, such Liens (i) to the extent contemplated in such  Collateral Documents, constitute perfected and continuing Liens on all of the applicable Collateral, (ii) have priority  over all other Liens on the Collateral, except for Permitted Liens that are expressly allowed to have priority over the  Administrative Agent’s Liens granted pursuant to the Collateral Documents and (iii) are enforceable against each  Loan Party granting such Liens.          (b)     The Mortgages executed and delivered on the Closing Date, if any, are, and the Mortgages  executed and delivered after the Closing Date will be, effective to create in favor of the Administrative Agent (for  the benefit of the Secured Parties) a legal, valid and enforceable first priority Lien on all of the applicable Loan  Party’s right, title and interest in and to the Mortgaged Property (as such term is defined in the applicable Mortgage)  thereunder and the proceeds thereof, and when such Mortgages are filed or recorded in the proper real estate filing  or recording offices, and all relevant mortgage taxes and recording charges are duly paid, the Administrative Agent  (for the benefit of the Secured Parties) shall have a perfected first priority Lien on, and security interest in, all right,  title, and interest of the applicable Loan Parties in such Mortgaged Property and, to the extent applicable, subject to  Section 9-315 of the UCC, the proceeds thereof, in each case prior and superior in right to the Lien of any other  Person, except for Permitted Liens.          5.6     Financial  Statements;  Material  Adverse  Effect.   (a)  The  Borrower  has  delivered  to  the  Administrative Agent (for distribution to the Lenders):                          (i)    the audited consolidated balance sheet of the Borrower as of December 31, 2019,  and the related statements of income, cash flow and shareholders’ equity, accompanied by the report thereon of the  Borrower’s independent certified public accountants. All such audited financial statements, including the schedules  and notes thereto, have been prepared in accordance with GAAP in all material respects and present fairly, in all  material respects, the financial position of the Borrower and its consolidated subsidiaries as at the dates thereof and  their results of operations for the periods then ended.                           (ii)   a pro forma consolidated balance sheet of the Borrower as of December 31, 2019,  and a pro forma statement of income for the four Fiscal Quarters ending as of December 31, 2019, in each case adjusted  to give effect to (A) the acquisition of Coram Materials Corp. and its affiliated entities consummated on February 24,  2020, and (B) the Transactions, as if the transactions contemplated by the foregoing clauses (A) and (B), with respect  to the pro forma balance sheet, had occurred on such date or, with respect to the pro forma statement of income, had  occurred on the first day of such period.                  (b)     Since  December 31,  2019  there  has  been  no  change  in  the  condition,  financial  or  otherwise, of the Borrower or any Subsidiary that could reasonably be expected to have a Material Adverse Effect.                                                     79 

 

       5.7     Solvency.  As of the Closing Date, the Borrower and its Subsidiaries (on a consolidated basis) are  Solvent prior to and after giving effect to the Transactions.          5.8     Surety Obligations.  Neither the Borrower nor any Restricted Subsidiary is obligated as surety or  indemnitor under any bond or other contract that assures payment or performance of any obligation of any Person,  except as described on Schedule 5.8 or as permitted under Section 7.2.         5.9     Taxes.  Except as set forth on Schedule 5.9, the Borrower and each of its Subsidiaries has timely  filed or caused to be filed all federal, state and local tax returns and other reports that it is required by law to file, and  has paid, or made provision for the payment of, all Taxes upon it, its income and its properties that are due and payable,  except (a) to the extent being contested in good faith by appropriate proceedings and (b) for Taxes in respect of which  the aggregate liability does not exceed $1,000,000.  The provision for Taxes on the books of the Borrower and its  consolidated Subsidiaries is adequate for all years not closed by applicable statutes, and for its current Fiscal Year.          5.10    Brokers.  Except as may be payable to Administrative Agent, the Arranger, the Lenders or their  respective Affiliates in connection with the funding of the Initial Term Loans, there are no brokerage commissions,  finder’s  fees  or  investment  banking  fees  payable  in  connection  with  any  transactions  contemplated  by  the  Loan  Documents.          5.11    Intellectual Property.  Except as could not reasonably be expected to have a Material Adverse Effect,  each Loan Party and each Restricted Subsidiary thereof owns or has the lawful right to use all Intellectual Property  necessary for the conduct of its business, without conflict with any rights of others.  As of the Closing Date, there is  no pending or, to any Loan Party’s knowledge, threatened Intellectual Property Claim with respect to any Loan Party,  any Restricted Subsidiary thereof or any of their property (including any Intellectual Property).  Except as disclosed  on Schedule 5.11(a), as of the Closing Date, no Loan Party or any Restricted Subsidiary thereof pays or owes any  Royalty or other compensation to any Person with respect to any Intellectual Property.  All Intellectual  Property  owned, used or Licensed by, or otherwise subject to any interests of, any Loan Party or Restricted Subsidiary thereof  as of the Closing Date is shown on Schedule 5.11(b).          5.12    Governmental  Approvals.   Each  Loan  Party  and  each  Restricted  Subsidiary  thereof  has,  is  in  compliance with, and is in good standing with respect to, all Governmental Approvals necessary to conduct its business  and to own, lease and operate its properties, except where noncompliance could not reasonably be expected to have a  Material Adverse Effect.  All necessary import and export licenses, permits or certificates for the import or export by  the Loan Parties or their respective Subsidiaries of any goods or other Collateral have been procured and are in effect,  and the Loan Parties and their respective Subsidiaries have complied with all applicable foreign and domestic Laws  with  respect  to  their  respective  export  and  import  of  any goods or  Collateral,  except  where  failure  to procure  or  noncompliance could not reasonably be expected to have a Material Adverse Effect.          5.13    Compliance with Laws.  The Borrower and each of its Restricted Subsidiaries has duly complied,  and its properties and business operations are in compliance, in all material respects with all Applicable Laws, except  where noncompliance could not reasonably be expected to have a Material Adverse Effect.  As of the Closing Date,  there have been no citations, notices or orders of material noncompliance issued to the Borrower or any of its Restricted  Subsidiaries under any Applicable Law.  No Inventory (as defined in the UCC) has been produced in violation of the  FLSA.          5.14    Compliance with Environmental Laws.  Except as disclosed on Schedule 5.14, as of the Closing  Date, none of the Borrower’s or any of its Subsidiaries’ present and, to their knowledge, none of the Borrower’s or  any  of  its  Subsidiaries’  past  operations,  Real  Estate  or  other  properties  are  subject  to  any  federal,  state  or  local  investigation known to the Borrower to determine whether any remedial action is needed to address any environmental  pollution, Hazardous Material or environmental clean-up.  As of the Closing Date, neither the Borrower nor any of its  Subsidiaries has received any material Environmental Notice.  Neither the Borrower nor any of its Subsidiaries has  any contingent liability with respect to any Release, environmental pollution or Hazardous Material on any Real Estate  now or previously owned, leased or operated by it, except as could not reasonably be expected to have a Material  Adverse Effect.                                                   80 

 

       5.15    Burdensome Contracts.  Neither the Borrower nor any of its Restricted Subsidiaries is a party or  subject to any contract, agreement or charter restriction that could reasonably be expected to have a Material Adverse  Effect.  Neither the Borrower nor any of its Restricted Subsidiaries is party or subject to any Restrictive Agreement,  except as shown on Schedule 5.15 or as otherwise permitted under Section 7.4.  No such Restrictive Agreement  prohibits the execution, delivery or performance of any Loan Document by any Loan Party.          5.16    Litigation.  Except as shown on Schedule 5.16, as of the Closing Date, there are no actions, suits,  proceedings, claims or investigations pending or, to any Loan Party’s knowledge after due and diligent investigation,  threatened or contemplated, at law, in equity, in arbitration, or before any Governmental Authority, by or against any  Loan  Party  or  any  Restricted  Subsidiary  thereof,  or  any  of  their  businesses,  operations,  properties,  prospects  or  conditions, that (a) relate to any Loan Documents or transactions contemplated thereby or (b) could reasonably be  expected  to  have  a  Material Adverse  Effect  if  determined  adversely  to  such  Loan  Party  or  Restricted  Subsidiary  thereof.  Except as shown on such Schedule, no Loan Party has a Commercial Tort Claim (other than a Commercial  Tort Claim for less than $500,000) as of the Closing Date.  As of the Closing Date, no Loan Party or any Restricted  Subsidiary thereof is in default with respect to any order, injunction or judgment of any Governmental Authority.          5.17    No Defaults.  No event or circumstance has occurred or exists that constitutes a Default or Event of  Default.  No Loan Party or any Restricted Subsidiary thereof is in default, and no event or circumstance has occurred  or exists that with the passage of time or giving of notice (i) would constitute a material default under any Material  Contract described in clause (a), (b) or (c) of the definition of “Material Contract” or (ii) as to any other Material  Contract described in clause (d) of the of the definition of “Material Contract”, permit the holder thereof to accelerate  or demand payment of such Indebtedness.  As of the Closing Date, there is no basis upon which any party (other than  a Loan Party or Restricted Subsidiary thereof) could terminate a Material Contract prior to its scheduled termination  date.          5.18    ERISA.  Except as disclosed on Schedule 5.18:                  (a)    Each Plan maintained by the Borrower or any of its Subsidiaries and any Pension Plan  maintained by the Borrower or any ERISA Affiliate is in compliance in all material respects with the applicable  provisions of ERISA, the Code, and other federal and state laws.  Each Plan maintained by the Borrower or any of its  Subsidiaries and any Pension Plan maintained by the Borrower or any ERISA Affiliate that is intended to qualify  under Section 401(a) of the Code has received a favorable determination letter or an opinion letter on which employers  may reasonably rely from the IRS or an application for such a letter is currently being processed by the IRS with  respect thereto and, to the knowledge of the Borrower, nothing has occurred which would prevent, or cause the loss  of, such qualification.  Except as would not reasonably be expected to have a Material Adverse Effect, each Loan  Party and, to the knowledge of the Loan Parties, each ERISA Affiliate has met all applicable requirements under the  Code, ERISA and the Pension Protection Act of 2006 with respect to each Plan, and no application for a waiver of the  minimum funding standards or an extension of any amortization period has been made with respect to any Plan.                  (b)    As of the Closing Date, there are no pending or, to the knowledge of the Loan Parties,  threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that could  reasonably be expected to have a Material Adverse Effect.  To the knowledge of the Loan Parties, there has been no  prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that has resulted in or  could reasonably be expected to have a Material Adverse Effect.                  (c)    (i) No ERISA Event has occurred or is reasonably expected to occur, except as would not  reasonably be expected to have a Material Adverse Effect; (ii) no Pension Plan has any Unfunded Pension Liability,  except as would not reasonably be expected to have a Material Adverse Effect; (iii) no Loan Party or, to the knowledge  of the Loan Parties, ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA  with respect to any Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA), except  as would not reasonably be expected to have a Material Adverse Effect; (iv) no Loan Party or, to the knowledge of  the Loan Parties, ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Section 4201 of  ERISA with respect to a Multi-employer Plan, except as would not reasonably be expected to have a Material Adverse  Effect (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such  liability); (v) no Loan Party or ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or  4212(c) of ERISA; and (vi) as of the most recent valuation date for any Pension Plan or Multi-employer Plan, the                                                  81 

 

funding target attainment percentage (as defined in Section 430(d)(2) of the Code) is at least 60%, and no Loan Party  or ERISA Affiliate knows of any fact or circumstance that could reasonably be expected to cause the funding target  attainment percentage for any such plan to drop below 60% as of such date.                  (d)    With  respect  to  any  Foreign  Plan,  except  as  in  the  aggregate  would  not  reasonably  be  expected to have a Material Adverse Effect, (i) all employer and employee contributions required by law or by the  terms of the Foreign Plan have been made, or, if applicable, accrued, in accordance with normal accounting practices;  (ii) the fair market value of the assets of each funded Foreign Plan, the liability of each insurer for any Foreign Plan  funded  through  insurance,  or  the  book  reserve  established  for  any  Foreign  Plan,  together  with  any  accrued  contributions, is sufficient to procure or provide for the accrued benefit obligations with respect to all current and  former participants in such Foreign Plan according to the actuarial assumptions and valuations most recently used to  account for such obligations in accordance with applicable generally accepted accounting principles; and (iii) it has  been registered as required and has been maintained in good standing with applicable regulatory authorities.          5.19    Trade Relations.  There exists no actual or threatened termination, limitation or modification of any  business relationship between the Borrower or any Subsidiary and any customer or supplier, or any group of customers  or suppliers, which individually or in the aggregate could reasonably be expected to result in a Material Adverse  Effect.  There exists no condition or circumstance that could reasonably be expected to materially impair the ability  of the Borrower or any Restricted Subsidiary to conduct its business at any time hereafter in substantially the same  manner as conducted on the Closing Date.          5.20    Labor Relations.  Except as described on Schedule 5.20, as of the Closing Date, neither the Borrower  nor any of its Restricted Subsidiaries is party to or bound by any collective bargaining agreement.  As of the Closing  Date, there are no material grievances, disputes or controversies with any union or other organization of the Borrower’s  or any of its Restricted Subsidiaries’ employees, or, to the Borrower’s knowledge, any asserted or threatened strikes,  work stoppages or demands for collective bargaining.            5.21    Not a Regulated Entity.  No Loan Party is (a) an “investment company” or a “person directly or  indirectly controlled by or acting on behalf of an investment company” within the meaning of the Investment Company  Act of 1940; or (b) subject to regulation under the Federal Power Act, the Interstate Commerce Act, any public utilities  code or any other Applicable Law regarding its authority to Incur Indebtedness.          5.22    Use of Proceeds; Margin Stock.  The Borrower shall use the proceeds of the Initial Term Loans for  working  capital  and  general  corporate  purposes,  including  to  prepay  outstanding  borrowings  under  the  ABL  Agreement and to finance future acquisitions permitted by this Agreement.  The proceeds of any Incremental Term  Loans will be used for working capital, acquisitions, repayment or prepayment of Indebtedness and other general  corporate purposes. Neither the Borrower nor any of its Subsidiaries is engaged, principally or as one of its important  activities, in the business of extending credit for the purpose of purchasing or carrying any Margin Stock.  No part of  the proceeds of any Term Loans will be used by the Borrower to purchase or carry, or to reduce or refinance any  Indebtedness Incurred to purchase or carry, any Margin Stock or for any related purpose governed by Regulations T,  U or X of the FRB in violation of any such Regulation.          5.23    Sanctions.  Neither the Borrower, nor any of its Subsidiaries, nor, to the knowledge of the Borrower  and its Subsidiaries, any director, officer, or 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 (a) currently the subject or target  of any Sanctions, (b) included on OFAC’s List of Specially Designated Nationals or HMT’s Consolidated List of  Financial Sanctions Targets, or any similar list enforced by any other relevant Sanctions authority or (c) located,  organized or resident in a Designated Jurisdiction.  The Borrower and its Subsidiaries have conducted their businesses  in compliance in all material respects with all applicable Sanctions and have instituted and maintained policies and  procedures designed to promote and achieve compliance with such Sanctions.          5.24    Anti-Corruption  Laws.   The  Borrower  and  its  Subsidiaries  have  conducted  their  businesses  in  compliance in all material respects with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act  2010, and other applicable anti-corruption legislation in other jurisdictions (collectively, “Anti-Corruption Laws”) and  have instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.                                                   82 

 

       5.25    Complete Disclosure.  None of the representations or warranties made by any Loan Party in any of  the Loan Documents as of the date such representations and warranties are made or deemed made, and none of the  statements contained in any exhibit, report, written statement or certificate furnished by or on behalf of the Borrower  or any Subsidiary in connection with the Loan Documents (excluding projections, estimates, pro forma information  and forecasts) as of the date furnished, taken as a whole and taking into account all documents filed or furnished by  the Borrower to the SEC, contains any untrue statement of a material fact or omits any material fact necessary to make  the statements made therein, in light of the circumstances under which they are made, not materially misleading as of  the time when made or delivered.  No representation or warranty is made herein concerning any projections, estimates,  pro forma information, or forecasts, and the assumptions on which they were based, or concerning any information of  a general economic nature or general information about the industry of the Borrower and its Subsidiaries contained in  any  information,  reports,  financial  statements,  exhibits  or  schedules  (it  being  understood  that  such  projections,  estimates, pro forma information and forecasts are subject to significant contingencies and uncertainties, many of  which  are  beyond  the  control  of  the  Borrower  and  any  Subsidiary,  and  no  assurances  can  be  given  that  such  projections, estimates, pro forma information and forecasts will be realized), except that such projections, estimates,  pro forma information and forecasts, as at the date they were prepared, were based on assumptions of the management  of the Borrower believed by the management of the Borrower to be reasonable at the time submitted to the Lenders.          5.26    Affected Financial Institutions.  No Loan Party is an Affected Financial Institution.          5.27    Covered Entities.  No Loan Party is a Covered Entity.          5.28    Beneficial  Ownership  Certification.   As  of  the  Closing  Date,  the  information  included  in  the  Beneficial Ownership Certification, if applicable, is true and correct in all respects.                                             ARTICLE VI                                    AFFIRMATIVE COVENANTS          The Borrower and each other Loan Party covenant to the Administrative Agent and each Lender that, from  and after the Agreement Date, so long as any of the Commitments remain in effect, and thereafter until Full Payment  of the Obligations:          6.1     Books and Records.  The Borrower shall maintain, and shall cause each Restricted Subsidiary to  maintain, at all times, adequate records and books of account with respect to their respective business activities, in  which proper entries are made in accordance with GAAP reflecting all financial transactions.          6.2     Financial  Statements  and  Other  Information.   The  Borrower  shall  furnish  to  the  Administrative  Agent (and the Administrative Agent agrees to promptly deliver or make available to the Lenders):                  (a)    as soon as available, and in any event within 90 days after the close of each Fiscal Year  (provided that such period may be extended upon election by the Borrower to the date such financial statements are  otherwise required to be filed with the SEC pursuant to Applicable Laws after giving effect to all available extension  and  cure  periods),  balance  sheets  as  of  the  end  of  such  Fiscal  Year  (commencing  with  the  Fiscal  Year  ending  December 31, 2020) and the related statements of income, cash flow and shareholders’ equity for such Fiscal Year,  on a consolidated basis for the Borrower and its consolidated Subsidiaries, which consolidated statements shall be  audited  and  certified  (without  qualification)  by  a  firm  of  independent  certified  public  accountants  of  recognized  standing  selected  by  the  Borrower  and  reasonably  acceptable  to  the  Administrative  Agent,  and  shall  set  forth  in  comparative form corresponding figures for the preceding Fiscal Year;                  (b)    as soon as available, and in any event within 45 days after the end of each of the first three  Fiscal Quarters (provided that such period may be extended upon election by the Borrower to the date such financial  statements are otherwise required to be filed with the SEC pursuant to Applicable Laws after giving effect to all  available extension and cure periods), unaudited balance sheets as of the end of such Fiscal Quarter and the related  statements of income, cash flow and shareholders’ equity for such Fiscal Quarter and for the portion of the Fiscal Year                                                   83 

 

then elapsed, on a consolidated basis for the Borrower and its consolidated Subsidiaries, setting forth in comparative  form corresponding figures for the preceding Fiscal Year and certified by a Responsible Officer of the Borrower with  relevant knowledge or responsibility of the Borrower as prepared in accordance with GAAP and fairly presenting in  all material respects the financial position and results of operations for such Fiscal Quarter and period, subject to  normal year-end adjustments and the absence of footnotes;                  (c)    concurrently with the delivery of financial statements under clause (a) or (b) above, a duly  completed  Compliance  Certificate  signed  by  a  Responsible  Officer  of  the  Borrower,  which  shall  include  as  an  attachment thereto (i) a calculation of Consolidated Interest Expense for the applicable trailing four Fiscal Quarters,  including the component figures thereof, and (ii) a separate set of financial statements (which may be unaudited)  eliminating the financial position and results of operations of the Unrestricted Subsidiaries, if any, as of the applicable  date and for the applicable period then ended;                   (d)    concurrently with delivery of financial statements under clause (a) above, copies of all  detailed  audit  reports,  final  management  letters  and  other  material  reports  submitted  to  the  Borrower  by  their  accountants in connection with such financial statements;                  (e)    not later than 30 days after the end of each Fiscal Year, projections of the Borrower’s  consolidated (i) results of operations for the next Fiscal Year, month by month, (ii) balance sheets and cash flow for  the next Fiscal Year, quarter by quarter, and (iii) balance sheet, results of operations and cash flow for the next three  Fiscal Years, year by year;                  (f)    promptly after the furnishing thereof, copies of any statement or report furnished to any  holder of debt securities of any Loan Party or any of its Subsidiaries pursuant to the terms of any indenture, loan or  credit agreement and not otherwise required to be furnished to the Lenders pursuant to this Section 6.2;                  (g)    as soon as available, but in any event within 30 days after the end of each Fiscal Year of  the Borrower, a report summarizing the insurance coverage (specifying type, amount and carrier) in effect for each  Loan Party and containing such additional information concerning such insurance coverage as the Administrative  Agent, or any Lender through the Administrative Agent, may reasonably specify;                  (h)    promptly, and in any event within ten (10) Business Days after receipt thereof by any Loan  Party or any Subsidiary thereof, copies of each notice or other correspondence received from the SEC (or comparable  agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation by such agency  regarding financial or other operational results of any Loan Party or any Subsidiary thereof;                   (i)    promptly  following  any  request  therefor,  information  and  documentation  reasonably  requested  by  the  Administrative  Agent  or  any  Lender  for  purposes  of  compliance  with  applicable  “know  your  customer” and anti-money laundering rules and regulations, including, without limitation, the Act and the Beneficial  Ownership Regulation;                   (j)    promptly  after  the  sending  or  filing  thereof,  copies  of  any  annual  report  to  be  filed  in  connection with each Plan or Foreign Plan; and                  (k)    such other reports and information (financial or otherwise) as the Administrative Agent  may reasonably request in connection with any Collateral or the financial condition or business of the Borrower or  any other Loan Party.                  Documents required to be delivered pursuant to Section 6.2(a), (b) or (j) (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 on which such documents are (i) posted on the Borrower’s behalf  on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a  commercial, third-party website or whether sponsored by the Administrative Agent); or (ii) available on the SEC’s  website on the Internet at www.sec.gov; provided that the Borrower shall notify the Administrative Agent (which shall  notify each Lender) of the posting of any such documents.                                                   84 

 

               Without limiting the delivery requirements under this Section 6.2, the Borrower hereby also agrees  to hold, within ten (10) Business Days after the required delivery of any quarterly financial statements referred to in  Section 6.2(b) above, upon the request of the Administrative Agent, a conference call with Lenders to discuss such  statements and the results of operations for the relevant reporting period (with the time and date of such conference  call, together with all information necessary to access the call, to be provided to the Administrative Agent no fewer  than three (3) Business Days prior to the date of such conference call, for posting on the Platform); provided that the  Borrower shall not be required to hold the conference call referred to in this sentence with respect to any Fiscal Quarter  for which the Borrower has held a public earnings call by management of the Borrower.                  The Borrower hereby acknowledges that (i) the Administrative Agent and/or the Arranger may, but  shall not be obligated to, make available to the Lenders materials and/or information provided by or on behalf of the  Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks, Syndtrak,  ClearPar or a substantially similar electronic transmission system (the “Platform”) and (ii) certain of the Lenders  (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information (within the  meaning of United States federal securities laws) with respect to the Borrower or its Affiliates, or the respective  securities of any of the foregoing (“MNPI”), and who may be engaged in investment and other market-related activities  with respect to such Persons’ securities.  The Borrower hereby agrees it will use commercially reasonable efforts to  prepare a version of the Borrower Materials (the “Public-Side Version”) to be used by Public Lenders; it being agreed  that (w) all Borrower Materials (including, without limitation, the Public-Side Version) made available to Public  Lenders  will  be  clearly  and  conspicuously  marked  “PUBLIC”,  which,  at  a  minimum,  will  mean  that  the  word  “PUBLIC”  will  appear  prominently on  the first  page  thereof;  (x)  by  marking  Borrower  Materials  “PUBLIC”  the  Borrower will be deemed to have authorized the Administrative Agent, the Arranger and the Lenders to treat such  Borrower Materials as not containing any MNPI (although they may be confidential or proprietary) with respect to  the Borrower or its securities for purposes of United States federal securities laws; and (y) all Borrower Materials  marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Lender.”             6.3     Notices.  The Borrower shall notify the Administrative Agent (and the Administrative Agent agrees  to  promptly  distribute  or  make  available  to  the  Lenders)  in  writing,  promptly  after  a  Responsible  Officer  of  the  Borrower obtains knowledge thereof, of any of the following that affects any Loan Party:                  (a)    the threat or commencement of any proceeding or investigation, whether or not covered by  insurance, if an adverse determination could have a Material Adverse Effect;                  (b)    any pending or threatened labor dispute, strike or walkout, or the expiration of any material  labor contract;                  (c)    any default under or termination of a Material Contract;                   (d)    the existence of any Default or Event of Default;                  (e)    any judgment in an amount exceeding $1,000,000;                  (f)    the assertion of any Intellectual Property Claim, if an adverse resolution could reasonably  be expected to have a Material Adverse Effect;                  (g)    any  violation  or  asserted  violation  of  any  Applicable  Law  (including  ERISA,  OSHA,  FLSA, or any Environmental Laws), if an adverse resolution could reasonably be expected to have a Material Adverse  Effect;                  (h)    (i) any Release by any Loan Party or on any property owned, leased or occupied by any  Loan Party or receipt of any Environmental Notice, except in either case as could not reasonably be expected to have  a  Material  Adverse  Effect,  or  (ii)  the  assertion  or  occurrence  of  any  action  or  proceeding  against  or  of  any  noncompliance by any Loan Party or any of its Subsidiaries with any Environmental Law that could reasonably be  expected to cause any property described in the Mortgages to be subject to any restrictions on ownership, occupancy,  use or transferability under any Environmental Law;                                                   85 

 

               (i)    the occurrence of any ERISA Event which could reasonably be expected to result in a  Material Adverse Effect; or                  (j)    the  discharge  of  or  any  withdrawal  or  resignation  by  the  Borrower’s  independent  accountants.          6.4     Preservation of Legal Existence and Good Standing.  The Borrower shall, and shall cause each of  its Restricted Subsidiaries to, maintain its legal existence and good standing in its jurisdiction of organization (except  as a result of a transaction permitted under Section 7.8), except, other than in the case of the legal existence of the  Borrower, where the failure to do so would not reasonably be expected to have a Material Adverse Effect.          6.5     Compliance with Laws.  The Borrower shall, and shall cause each of its Restricted Subsidiaries to,  comply with all Applicable Laws, including Environmental Laws, FLSA, OSHA, and Laws regarding collection and  payment of Taxes, and maintain all Governmental Approvals necessary to the ownership of its properties or conduct  of its business, unless failure to comply or maintain could not reasonably be expected to have a Material Adverse  Effect.  Without limiting the generality of the foregoing, if any Release occurs at or on any properties of the Borrower  or any Restricted Subsidiary, it shall act promptly and diligently to investigate and report (to the extent such Release  is of a reportable quantity) to the Administrative Agent and all appropriate Governmental Authorities the extent of,  and to make appropriate remedial action to eliminate, such Release as required by Environmental Law, whether or not  directed to do so by any Governmental Authority.          6.6     Taxes.  The Borrower shall, and shall cause each of its Restricted Subsidiaries to, pay and discharge  all  Taxes  prior  to  the  date  on  which  they  become  delinquent  or  penalties  attach, except  such  Taxes as  are  being  contested in good faith by appropriate proceedings promptly instituted and diligently pursued and, which, if adversely  resolved, the payment of which would not reasonably be expected to have a Material Adverse Effect.          6.7     Maintenance of Property.  The Borrower shall, and shall cause each of its Restricted Subsidiaries  to, maintain all of its material property necessary and useful in the conduct of its business, taken as a whole, in good  operating condition and repair, except where failure to do so would not reasonably be expected to have a Material  Adverse Effect.          6.8     Maintenance  of  Insurance.   (a)  The  Borrower  shall,  and  shall  cause  each  of  its  Restricted  Subsidiaries to, maintain (i) insurance with insurers or (ii) self insurance existing on the Closing Date and other self  insurance to the extent it is maintained in the ordinary course of business consistent with past practice and by similarly  situated Persons in the same industry of established reputation, (a) with respect to the properties and business of the  Borrower and its Restricted Subsidiaries of such type (including workers’ compensation, larceny, embezzlement, or  other  criminal  misappropriation  insurance),  in  such  amounts,  and  with  such  coverages  and  deductibles  as  are  customary  for  companies  similarly  situated;  and  (b) business  interruption  insurance  in  an  amount  not  less  than  $5,000,000.  Such insurance shall (w) provide for not less than 30 days’ prior notice to the Administrative Agent of  termination, lapse or cancellation of such insurance, (x) name the Administrative Agent as mortgagee (in the case of  property insurance) or additional insured on behalf of the Secured Parties (in the case of liability insurance) or loss  payee (in the case of property insurance), as applicable, (y) if reasonably requested by the Administrative Agent,  include a breach of warranty clause and (z) be reasonably satisfactory in all other respects to the Administrative Agent.          (b)     If any portion of any Non-Quarry Property that is a Mortgaged Property is at any time located in  an area identified by the Federal Emergency Management Agency (or any successor agency) as a Special Flood  Hazard Area with respect to which flood insurance has been made available under the National Flood Insurance Act  of 1968 (as now or hereafter in effect or successor act thereto), then the Borrower shall, or shall cause each Loan  Party to (i) maintain, or cause to be maintained, with a financially sound and reputable insurer, flood insurance in an  amount and otherwise sufficient to comply with all applicable rules and regulations promulgated pursuant to the  Flood Insurance Laws and (ii) deliver to the Administrative Agent evidence of such compliance in form and  substance reasonably acceptable to the Administrative Agent.          6.9     Licenses.  The Borrower shall, and shall cause each of its Restricted Subsidiaries to, (i) keep each  License  affecting  any  material  portion  of  the  Collateral  or  any  other  material  property  of  the  Borrower  and  its  Restricted  Subsidiaries  in  full  force  and  effect;  (ii)  promptly  notify  the  Administrative  Agent  of  any  proposed                                                  86 

 

modification to any such License, or entry into any new License, in each case at least 30 days prior to its effective  date; (iii) pay all Royalties when due; and (iv) notify the Administrative Agent of any default or breach asserted by  any Person to have occurred under any License.          6.10    Inspection Rights.  The Borrower shall, and shall cause each of its Restricted Subsidiaries to, permit  representatives of the Administrative Agent (at the expense of the Borrower) to visit and inspect any of its properties,  to examine its corporate, financial and operating records, and, to the extent reasonable, make copies thereof or abstracts  therefrom,  and  to  discuss  its  affairs,  finances  and  accounts  with  its  officers  and  independent  public  accountants  (subject to reasonable requirements of confidentiality, including requirements imposed by law or by contract), in each  case at reasonable times during normal business hours, upon reasonable advance notice to the Borrower; provided,  however, any visit or inspection permitted by this Section 6.10 shall be limited to once per twelve (12) month period  in the absence of the occurrence and continuance of an Event of Default.          6.11    Use of Proceeds.  The Borrower shall use the proceeds of the Initial Term Loans for working capital  and general corporate purposes, including to prepay outstanding borrowings under the ABL Agreement and to finance  future  acquisitions  permitted by  this  Agreement.   The  proceeds  of  any  Incremental  Term  Loans  will  be  used  for  working capital, acquisitions, repayment or prepayment of Indebtedness and other general corporate purposes. No part  of the proceeds of any Term Loans shall be used by the Borrower or any Subsidiary for any purpose that violates the  provisions of the Regulations of the FRB, including Regulation T, Regulation U or Regulation X.          6.12    Further Assurances; After-Acquired Property.  (a) Subject to the applicable limitations set forth in  the Collateral Documents and this Agreement (including with respect to Excluded Assets), the Borrower and the  Guarantors shall execute any and all further documents, financing statements, agreements and instruments, and take  all further action that may be required under Applicable Law, or that the Administrative Agent may reasonably request,  in order to grant, preserve, protect and perfect the validity and priority of the Liens created or purported to be created  by the Collateral Documents in the Collateral.                   (b)    Without  limiting  the  foregoing  but  subject  to  the  applicable  limitations  set  forth  in  the  Collateral Documents and this Agreement (including with respect to Excluded Assets), if, after the Closing Date, the  Borrower or a Guarantor acquires property that is not automatically subject to a perfected security interest under the  Collateral  Documents  and  such  property  constitutes  or  would  constitute  Collateral  (including  any  asset  of  the  Borrower or a Guarantor that becomes Collateral subsequent to the Closing Date as a result of such asset ceasing to  be an Excluded Asset), then the Borrower or such Guarantor shall:                         (i)    with respect to real property, promptly notify the Administrative Agent of the  acquisition  thereof  and,  within  120  days  after  the  date  such  notice  is  given  (or  such  longer  period  to  which  the  Administrative  Agent  may  reasonably  agree),  deliver,  upon  the  request  of  the  Administrative  Agent  in  its  sole  discretion, to the Administrative Agent with respect to each Material Real Property a Mortgage and the applicable  deliverables  related  thereto  and  described  in  Section  4.1(g),  subject  to  Lender  confirmation  that  the  deliverables  described in Section 4.1(g)(v) are satisfactory if such Material Real Property is a Non-Quarry Property (provided, and  notwithstanding anything to the contrary herein, the Administrative Agent will not accept any Mortgage with respect  to any Non-Quarry Property from the Borrower or any Subsidiary until such time as it has received confirmation from  each Lender that each Lender has completed its flood insurance review and flood insurance compliance has been  completed in accordance with Section 6.8(b)); and                         (ii)   with respect to all other assets, as soon as practicable and no later than 30 days  (or such longer period to which the Administrative Agent may reasonably agree) after such acquisition or the date  such asset ceases to be an Excluded Asset, take such actions to provide a Lien over such property in favor of the  Administrative Agent for the benefit of the Secured Parties and deliver any joinder agreements or supplements as  required by the applicable Collateral Documents.                  (c)    (i) To the extent delivery thereof is required under the applicable Collateral Document, the  Borrower shall deliver to the Administrative Agent as promptly as practicable after the Closing Date (and in any event  within 90 days after the Closing Date (or such longer period to which the Administrative Agent may reasonably agree))  (x) certificates representing the shares of Capital Stock pledged pursuant to any Collateral Document (if such shares  are certificated securities for purposes of Article 8 of the UCC), together with an undated stock power for each such                                                  87 

 

certificate executed in blank by a duly authorized officer of the pledgor thereof and (y) each promissory note required  to be delivered by the Loan Parties pursuant to any Collateral Document endorsed in blank or accompanied by an  executed transfer form in blank (in each case to the extent delivery of such endorsements or transfer forms is customary  under requirements of Applicable Law) by the pledgor thereof and (ii) the Borrower shall take, or cause the applicable  Loan Party to take, the actions specified on Schedule 6.12.          6.13    Additional Loan Parties.  In the event that after the Closing Date any Loan Party organizes, creates  or acquires any Wholly-Owned Subsidiary (or the Borrower designates any Unrestricted Subsidiary as a Restricted  Subsidiary in accordance with the terms hereof) that is a Domestic Subsidiary (other than an Unrestricted Subsidiary,  a CFC or a CFC Holdco, unless the Borrower otherwise determines) (such acquired Domestic Subsidiary or new  Restricted  Subsidiary,  an  “Additional  Loan  Party”),  the  Loan  Parties  shall,  concurrently  with  the  delivery  of  the  Compliance Certificate pursuant to Section 6.2(c) for the Fiscal Quarter during which such Domestic Subsidiary was  organized, created or acquired (or which such Unrestricted Subsidiary is designated as a Restricted Subsidiary), notify  the Administrative Agent thereof and, within 60 days after the date such notice is given (or such longer period that  may be permitted under the ABL Agreement or to which the Administrative Agent may reasonably agree):                  (a)    cause such Additional Loan Party to become a party to this Agreement as a Guarantor;                  (b)    cause such Additional Loan Party  to execute and deliver to the Administrative Agent a  Security Agreement Supplement (as defined in the Security Agreement) and such other amendments to the Collateral  Documents  as  the  Administrative  Agent  may  reasonably  deem  necessary  or  reasonably  advisable  to  grant  to  the  Administrative Agent, for the benefit of the Secured Parties, a perfected security interest (as and to the extent provided  in the Collateral Documents) in the Collateral (other than with respect to real property, which is the subject of clause  (c) below) of such Additional Loan Party;                  (c)    deliver,  upon  the  request  of  the  Administrative  Agent  in  its  sole  discretion,  to  the  Administrative Agent with respect to each Material Real Property owned or held by the each such new Additional  Loan Party, a Mortgage and the applicable deliverables related thereto and described in Section 4.1(g), subject to  Lender confirmation that the deliverables described in Section 4.1(g)(v) are satisfactory if such Material Real Property  is a Non-Quarry Property; and                   (d)    deliver such other documentation as the Administrative Agent may reasonably request in  accordance with the Collateral Documents (other than with respect to Mortgages, which are the subject of clause (c)  above) (and subject to the limitations set out therein) in order to cause the Lien created by the Collateral Documents  in such new Additional Loan Party’s Collateral and in the Capital Stock of such new Additional Loan Party to be duly  perfected in accordance with all requirements of Applicable Law, including the filing of financing statements in such  jurisdictions as may reasonably be requested by the Administrative Agent, and such other documents with respect to  such  new  Domestic  Subsidiary  (or  such  new  Restricted  Subsidiary)  as  the  Administrative  Agent may reasonably  request that are consistent with the documents in place or delivered to the Administrative Agent by the Loan Parties  on the Closing Date or as set forth in Section 6.12(c).          6.14    [Reserved].          6.15    Compliance  with  ERISA.   The  Borrower  shall,  and  shall  cause  each  of  its  Subsidiaries  to:  (a)  maintain each Plan in compliance in all material respects with the applicable provisions of ERISA, the Code and other  applicable federal or state law; (b) cause each applicable Pension Plan (other than a Multi-employer Plan) that is  intended to be qualified under Section 401 of the Code to be so qualified; (c) make all required contributions to any  Plan when due; (d) not engage in a prohibited transaction or violation of the fiduciary responsibility rules with respect  to any Plan; (e) not engage in a transaction that could be subject to Section 4069 or 4212(c) of ERISA, and (f) ensure  that no Plan (other than a Multi-employer Plan) has an Unfunded Pension Liability, in each case, that would reasonably  be expected to have a Material Adverse Effect.          6.16    Anti-Corruption Laws; Sanctions.  The Borrower shall, and shall cause each of its Subsidiaries to,  conduct its businesses in compliance in all material respects with all applicable Anti-Corruption Laws and with all  applicable Sanctions, and maintain policies and procedures designed to promote and achieve compliance with such  laws and Sanctions.                                                   88 

 

       6.17    MIRE  Events.   In  connection  with  any  amendment  to  this  Agreement  pursuant  to  which  any  increase,  extension  or  renewal  of  Term  Loans  is  contemplated,  the  Borrower  shall  cause  to  be  delivered  to  the  Administrative Agent for any Mortgaged Property the deliverables set forth in Section 4.1(g)(v) with respect to those  Mortgaged Properties that are Non-Quarry Properties as well as amendments to the Mortgages if and to the extent  required under Applicable Law, so-called “date down” and modification endorsements to the existing title policies  bringing forward the date of the existing policy to the date of the recording of such amendment and insuring the  validity and continued priority of the lien of the insured mortgage together with such other endorsements or affirmative  insurance as the Administrative Agent may reasonably request (or a new policy of title insurance if such endorsements  are not available in the applicable jurisdiction), an opinion of local counsel concerning the enforceability of such  Mortgage as so amended and such other reasonable and customary opinions as the Administrative Agent may request,  and such other documents or instruments as the Administrative Agent shall reasonably require, to the extent necessary  to continue the validity and effectiveness of the Liens granted and intended to be granted by the Mortgages.                                             ARTICLE VII                                      NEGATIVE COVENANTS          The Borrower and each other Loan Party covenant to the Administrative Agent and each Lender that, from  and after the Agreement Date, so long as any of the Commitments remain in effect, and thereafter until Full Payment  of the Obligations:          7.1     Limitation on Restricted Payments.                    (a)    The  Borrower  shall  not,  and  shall  not  permit  any  Restricted  Subsidiary  to,  directly  or  indirectly, make a Restricted Payment if at the time the Borrower or such Restricted Subsidiary makes such Restricted  Payment:                         (i)    a Default or Event of Default shall have occurred and be continuing (or would  result therefrom);                          (ii)   the Borrower is not entitled to Incur an additional $1.00 of Coverage Indebtedness  pursuant to Section 7.2(a); or                         (iii)  the  aggregate  amount  of  such  Restricted  Payment  and  all  other  Restricted  Payments since the Start Date (all payment calculations being made as if the provisions of this Section 7.1 had been  in effect as of the Start Date and at all times thereafter) would exceed the sum of (without duplication):                          (A)    50% of the Consolidated Net Income accrued during the period (treated as one                 accounting period) from April 1, 2016 to the end of the most recent Fiscal Quarter ending at least                 45 days prior to the date of such Restricted Payment (or, in case such Consolidated Net Income                 shall be a deficit, minus 100% of such deficit); plus                          (B)    100% of the aggregate Net Cash Proceeds or Fair Market Value of any asset                 (other than cash) received by the Borrower either (x) from the issuance or sale of its Qualified                 Capital Stock subsequent to the Start Date or (y) as a contribution in respect of its Qualified Capital                 Stock from its shareholders subsequent to the Start Date, but excluding in each case any Net Cash                 Proceeds (1) from Excluded Contributions and (2) from sales to a Subsidiary of the Borrower or to                 an employee stock ownership plan or a trust established by the Borrower or any of its Subsidiaries                 for the benefit of their employees; plus                          (C)    the  amount  by  which  the  principal  amount  of  Indebtedness  of  the  Borrower                 (other  than  Indebtedness  owing  to  a  Subsidiary)  is  reduced  upon  the  conversion  or  exchange                 subsequent to the Start Date of any Indebtedness of the Borrower convertible or exchangeable for                 Qualified Capital Stock of the Borrower (less the amount of any cash, or the fair value of any other                                                   89 

 

               property, distributed by the Borrower upon such conversion or exchange); provided, however, that                 the foregoing amount shall not exceed the Net Cash Proceeds received by the Borrower or any                 Restricted Subsidiary from the sale of such Indebtedness (excluding Net Cash Proceeds (i) to the                 extent constituting Excluded Contributions and (ii) from sales to a Subsidiary of the Borrower or                 to  an  employee  stock  ownership  plan  or  a  trust  established  by  the  Borrower  or  any  of  its                 Subsidiaries for the benefit of their employees); plus                          (D)    an amount equal to the sum of (x) the aggregate amount of cash and the Fair                 Market Value of any asset (other than cash) received by the Borrower or any Restricted Subsidiary                 subsequent to the Start Date with respect to Investments (other than Permitted Investments) made                 by the Borrower or any Restricted Subsidiary in any Person (other than the Borrower or any                 Restricted  Subsidiary)  and  resulting  from  repurchases,  repayments  or  redemptions  of  such                 Investments or repayments of loans or advances and releases of guarantees that constitute such                 Investments, in each case, by any Person, and dividends or other distributions or payments with                 respect  to,  and  proceeds  realized  on  the  sale  of,  such  Investments,  and  (y)  in  the  event  that                 subsequent  to  the  Closing  Date  the  Borrower  redesignates  an  Unrestricted  Subsidiary  to  be  a                 Restricted  Subsidiary,  the  portion  (proportionate  to  the  Borrower’s  equity  interest  in  such                 Subsidiary) of the Fair Market Value of the net assets of such Unrestricted Subsidiary at the time                 such Unrestricted Subsidiary is designated a Restricted Subsidiary (other than to the extent the                 Borrower’s  Investment  in  such  Unrestricted  Subsidiary  constituted  a  Permitted  Investment);                 provided, however, that the foregoing sum shall not exceed, in the case of any such Person or                 Unrestricted Subsidiary, the amount of Investments (excluding Permitted Investments) previously                 made (and treated as a Restricted Payment) by the Borrower or any Restricted Subsidiary in such                 Person or Unrestricted Subsidiary; plus                          (E)    the aggregate amount of any Retained Declined Proceeds since the Closing Date.                  (b)    The preceding provisions of this Section 7.1 shall not prohibit:                         (i)    any Restricted Payment made out of the Net Cash Proceeds of the substantially  concurrent sale of, or made by conversion or exchange for, or for consideration consisting only of, Qualified Capital  Stock of the Borrower or a substantially concurrent cash capital contribution received by the Borrower from one or  more  of  its  shareholders  with  respect  to  its  Qualified  Capital  Stock;  provided, however,  that  (A)  such  Restricted  Payment shall be excluded in the calculation of the amount of Restricted Payments and (B) the Net Cash Proceeds  from such sale or such cash capital contribution (to the extent so used for such Restricted Payment) shall be excluded  from the calculation of amounts under Section 7.1(a)(iii)(B);                         (ii)   any  purchase,  repurchase,  redemption,  defeasance  or  other  acquisition  or  retirement for value of Subordinated Obligations or Specified Junior Indebtedness of the Borrower or a Guarantor  made by exchange for, or out of the proceeds of the substantially concurrent Incurrence of, Indebtedness of such  Person which (x) is permitted to be Incurred pursuant to Section 7.2 and (y) satisfies the requirements set forth in the  definition of “Refinancing Indebtedness”; provided, however, that such purchase, repurchase, redemption, defeasance  or other acquisition or retirement for value shall be excluded in the calculation of the amount of Restricted Payments,  except  any  such  purchase,  repurchase,  redemption,  defeasance  or  other  acquisition  or  retirement  for  value  in  connection with a Refinancing of Indebtedness pursuant to Section 7.2(c)(ii) made on or after the Start Date shall be  included in the calculation of the amount of Restricted Payments;                         (iii)  the payment of any dividend, distribution or redemption of any Capital Stock,  Subordinated Obligations or Specified Junior Indebtedness within 65 days after the date of declaration thereof or call  for redemption if, at such date of declaration or call for redemption, such payment or redemption was permitted by  Section 7.1(a) (the declaration of such payment will be deemed a Restricted Payment under Section 7.1(a) as of the  date of declaration and the payment itself will be deemed to have been paid on such date of declaration and will not  also be deemed a Restricted Payment under Section 7.1(a)); provided, however, that any Restricted Payment made on  or after the Start Date in reliance on this clause (b)(iii) shall reduce the amount available for Restricted Payments  pursuant to Section 7.1(a)(iii) only once;                                                   90 

 

                      (iv)   so long as no Default has occurred and is continuing, the purchase, redemption or  other acquisition of shares of Capital Stock of the Borrower or any of its Subsidiaries from then current or former  officers, employees, directors or consultants of the Borrower or any of its Subsidiaries (or permitted transferees of  such  individuals),  pursuant  to  the  terms  of  the  agreements  (including  employment  agreements)  or  plans  (or  amendments thereto) approved by the Board of Directors of the Borrower under which such individuals purchase or  sell or are granted the option to purchase or sell, shares of such Capital Stock; provided, however, that the aggregate  amount of such Restricted Payments (excluding amounts representing cancelation of Indebtedness) shall not exceed  (x) $10,000,000 in any calendar year (with any unused amounts being available to be used in the following calendar  year, but not in any succeeding calendar year) plus (y) the net cash proceeds of any “key-man” life insurance policies  that have not been applied to the payment of Restricted Payments pursuant to this clause (b)(iv); provided further,  however, that such Restricted Payments shall be excluded in the calculation of the amount of Restricted Payments;                         (v)    the declaration and payments of dividends on Disqualified Stock issued pursuant  to Section 7.2; provided, however, that, at the time of payment of such dividend, no Default shall have occurred and  be continuing (or result therefrom); provided further, however, that such dividends shall be excluded in the calculation  of the amount of Restricted Payments;                         (vi)   repurchases, redemptions and other acquisitions and retirements of Capital Stock  (A) occurring or deemed to occur upon the acquisition or exercise of stock options or other similar stock-based awards  under equity plans, warrants or other Capital Stock if such Capital Stock or the proceeds thereof represents or are used  to satisfy a portion of the acquisition or exercise price of such stock options or other Capital Stock or (B) in connection  with a gross up for or payment of Taxes related to any such stock options or other Capital Stock; provided, however,  that such Restricted Payments shall be excluded in the calculation of the amount of Restricted Payments;                         (vii)  cash payments in lieu of the issuance of fractional shares or upon the purchase,  redemption or other acquisition of fractional shares, including in connection with the exercise of warrants, options or  other securities convertible into or exchangeable for Capital Stock of the Borrower or any share dividend, distribution,  share split, reverse share split, merger, consolidation, amalgamation or other business combination of the Borrower,  in each case, permitted by this Agreement; provided, however, that any such cash payment shall not be for the purpose  of evading the limitations set forth in this Section 7.1 (as determined in good faith by the Board of Directors of the  Borrower);  provided  further,  however,  that  such  payments  shall  be  excluded  in  the  calculation  of  the  amount  of  Restricted Payments;                         (viii) [Reserved];                         (ix)   payments of intercompany subordinated Permitted Indebtedness, the Incurrence  of which was permitted under Section 7.2(b)(v); provided, however, that no Default has occurred and is continuing or  would otherwise result therefrom; provided further, however, that such payments shall be excluded in the calculation  of the amount of Restricted Payments;                         (x)    any other Restricted Payment in an amount which, when taken together with all  Restricted Payments made pursuant to this clause (x), does not exceed the greater of (A) $65,000,000 and (B) 7.5%  of Consolidated Net Tangible Assets at the time of such Restricted Payment; provided, however, that (x) at the time  of each such Restricted Payment, no Default shall have occurred and be continuing (or result therefrom) and (y) each  such Restricted Payment made on or after the Start Date shall be included in the calculation of the amount of Restricted  Payments;                         (xi)   Restricted Payments in an amount that does not exceed the amount of Excluded  Contributions made since the Start Date; provided that such payments shall be excluded in the calculation of the  amount of Restricted Payments;                         (xii)  the  distribution,  by  dividend  or  otherwise,  of  shares  of  Capital  Stock  of,  or  Indebtedness owed to the Borrower or any Restricted Subsidiary by, Unrestricted Subsidiaries; provided, however,  that such payments shall be excluded in the calculation of the amount of Restricted Payments; and                                                   91 

 

                      (xiii) Restricted Payments in respect of the Borrower’s repurchase or other acquisition  or retirement of warrants existing as of the Start Date with respect to its Capital Stock; provided, however, that (A)  the aggregate amount of such Restricted Payments shall not exceed $15,000,000 and (B) such Restricted Payments  made on or after the Start Date shall be included in the calculation of the amount of Restricted Payments.                   (c)    The Borrower, in its sole discretion, may classify any Restricted Payment as being made  in part under one of the provisions of this Section 7.1 and in part under one or more other such provisions (or, as  applicable, clauses), or reclassify any Restricted Payment made under one or more of the provisions of this Section  7.1 as being made under one or more other provisions (or, as applicable, clauses) of this Section 7.1.                  (d)    If any Person in which an Investment is made, which Investment constitutes a Restricted  Payment when made, thereafter becomes a Loan Party or a Restricted Subsidiary in accordance with this Agreement,  then, in the case of a Loan Party, all such Investments previously made in such Person, and, in the case of a Restricted  Subsidiary that is not a Loan Party, the portion thereof that would constitute a Permitted Investment at the time, shall  no longer be counted as Restricted Payments for purposes of calculating the amount of Restricted Payments pursuant  to Section 7.1(a)(iii) above.          7.2     Limitation  on  Indebtedness.   (a)  The  Borrower  shall  not,  and  shall  not  permit  any  Restricted  Subsidiary to, Incur, directly or indirectly, any Indebtedness; provided, however, that the Borrower or any Guarantor  shall be entitled to Incur Indebtedness if, on the date of such Incurrence and after giving effect thereto on a pro forma  basis, the Consolidated Coverage Ratio exceeds 2.00 to 1.00 (any such Indebtedness Incurred pursuant to this Section  7.2(a) being herein referred to as “Coverage Indebtedness”).                  (b)    Notwithstanding the foregoing Section 7.2(a), the Borrower and the Restricted Subsidiaries  shall be entitled to Incur any or all of the following Indebtedness (any such Indebtedness Incurred pursuant to this  Section 7.2(b) being referred to as “Permitted Indebtedness”):                         (i)    Indebtedness Incurred by the Borrower or any Guarantor pursuant to one or more  Credit Facilities; provided, however, that, after giving effect to any such Incurrence, the aggregate principal amount  of all Indebtedness Incurred under, and then outstanding under, this clause (b)(i) does not exceed the greater of (x)  $550,000,000 and (y) the Borrowing Base at the time of such Incurrence;                         (ii)   Indebtedness arising under the Loan Documents;                          (iii)  the Existing Notes outstanding on the Agreement Date;                         (iv)   the Incurrence by the Borrower or any Restricted Subsidiary of the Indebtedness  existing as of the Closing Date that is described on Schedule 7.2;                          (v)    Indebtedness  owed  to  and  held  by  the  Borrower  or  a  Restricted  Subsidiary;  provided, however, that (A) in the case of any Indebtedness owed to the Borrower or any Guarantor by any Restricted  Subsidiary that is not a Guarantor, the corresponding Investment made by the Borrower or any Guarantor must be  permitted pursuant to Section 7.1; (B) any subsequent issuance or transfer of any Capital Stock which results in any  such Restricted Subsidiary ceasing to be a Restricted Subsidiary (or any Guarantor ceasing to be a Guarantor) or any  subsequent transfer of such Indebtedness (other than to the Borrower or a Restricted Subsidiary permitted by this  clause (b)(v)) or any pledge of such Indebtedness constituting a Permitted Lien (but not foreclosure thereon) shall be  deemed, in each case, to constitute the Incurrence of such Indebtedness by the obligor thereon not permitted by this  clause (b)(v), (C) if the Borrower Incurs such Indebtedness owing to a Restricted Subsidiary that is not a Guarantor,  such Indebtedness shall either be subject to the Subordinated Intercompany Note or be expressly subordinated to the  Obligations of the Borrower in a manner reasonably acceptable to the Administrative Agent and (D) if a Guarantor  Incurs such Indebtedness owing to a Person that is not the Borrower or a Guarantor, such Indebtedness shall either be  subject to the Subordinated Intercompany Note or be expressly subordinated to the Obligations of such Guarantor in  a manner reasonably satisfactory to the Administrative Agent; provided further that nothing in the foregoing clause  (C) or (D) shall prohibit the repayment of such Indebtedness at maturity or otherwise in compliance with the terms of  this Agreement;                                                   92 

 

                      (vi)   Indebtedness of a Restricted Subsidiary Incurred and outstanding on or prior to  the date on which such Subsidiary was acquired by the Borrower  or a Restricted Subsidiary or secured by a Lien on  an asset acquired by the Borrower or by a Restricted Subsidiary (other than Indebtedness Incurred in connection with,  or to provide all or any portion of the funds or credit support utilized to consummate, the transaction or series of related  transactions pursuant to which such Subsidiary or such asset was so acquired); provided, however, that (A) on the date  of such acquisition and after giving pro forma effect thereto, (x) the Borrower would have been entitled to Incur at  least $1.00 of Coverage Indebtedness pursuant to Section 7.2(a) or (y) the Consolidated Coverage Ratio is greater than  the Consolidated Coverage Ratio immediately prior to giving effect to such transaction, and (B) the Borrower may, if  it so elects, treat as Indebtedness outstanding on the date of acquisition of any such Restricted Subsidiary the amount  of any undrawn commitment to fund Indebtedness that such Restricted Subsidiary was entitled to borrow immediately  prior to the time of such acquisition; provided that, in connection with any such election, such undrawn commitment  shall  be  treated  as  outstanding  Indebtedness  for  all  purposes  under  this  Agreement,  including  for  purposes  of  calculating the Consolidated Coverage Ratio (including under Section 7.2(a)), for so long as such commitment remains  outstanding;                         (vii)  Refinancing  Indebtedness  in  respect  of  any  Coverage  Indebtedness  Incurred  pursuant to Section 7.2(a) or any Permitted Indebtedness Incurred pursuant to clause (b)(ii), (b)(iii), (b)(iv), (b)(vi),  this clause (b)(vii), (b)(viii), (b)(xii), (b)(xiii), (b)(xviii), (b)(xxiii) and (b)(xxiv), or any Indebtedness Incurred to  Refinance such Indebtedness; provided, however, that (A) to the extent such Refinancing Indebtedness directly or  indirectly Refinances Indebtedness of a Subsidiary Incurred pursuant to clause (b)(vi), such Refinancing Indebtedness  shall be Incurred only by such Subsidiary, the Borrower or the Borrower and such Subsidiary; and (B) in the case of  any Refinancing Indebtedness in respect of Indebtedness (or Refinancing Indebtedness in respect thereof) Incurred  under  clause  (b)(xxiii)  or  (b)(xxiv),  such  Refinancing  Indebtedness  shall  satisfy  the  additional  requirements  of  Permitted Unsecured Refinancing Debt, Permitted First Priority Refinancing Debt or Permitted Junior Refinancing  Debt, as applicable;                         (viii) Hedging  Obligations  Incurred  in  the  ordinary  course  of  business  designed  to  manage interest rates or interest rate risk, to protect against fluctuations in currency exchange rates or to manage  commodity prices, and not for the purpose of speculation;                         (ix)   obligations  in  respect  of  worker’s  compensation  claims,  self-insurance  obligations, performance, bid and surety bonds, indemnity, judgment, appeal, advance payment, customs, tax or other  guarantees or bonds or other similar bonds, instruments or obligations and completion guarantees and warranties  provided by the Borrower or any Restricted Subsidiary or relating to liabilities, obligations or guarantees Incurred in  the ordinary course of business;                         (x)    Indebtedness arising (A) 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,  however, that such Indebtedness is extinguished within five (5) Business Days of its Incurrence and (B) in connection  with endorsement of instruments for deposit in the ordinary course of business;                         (xi)   the Guarantee by the Borrower or any Guarantor of Indebtedness of the Borrower  or any Guarantor that was permitted to be Incurred by another provision of this Section 7.2; provided, however, that  if the Indebtedness being Guaranteed is subordinated to the Obligations, then the Guarantee thereof Incurred pursuant  to this clause (b)(xi) shall be subordinated to the same extent as the Indebtedness being Guaranteed;                         (xii)  Purchase Money Indebtedness Incurred to finance the acquisition by the Borrower  or a Restricted Subsidiary of assets in the ordinary course of business, in an aggregate principal amount which, on the  date of such Incurrence, when added together with the amount of Indebtedness previously Incurred pursuant to this  clause (b)(xii) and then outstanding under this clause (b)(xii), does not exceed the greater of (A) $100,000,000 and  (B) 15.0% of Consolidated Net Tangible Assets at the time of Incurrence;                         (xiii) indemnification,  Post-Closing  Payments  or  similar  obligations,  in  each  case,  Incurred or assumed in connection with the acquisition or disposition of any business or assets of the Borrower or any  Restricted Subsidiary or Capital Stock of a Restricted Subsidiary, other than Guarantees of Indebtedness Incurred by  any Person acquiring all or any portion of such business, assets or Capital Stock for the purpose of financing any such                                                  93 

 

acquisition;  provided  that,  in  the  case  of  a  disposition,  the  maximum  aggregate  liability  in  respect  of  all  such  obligations outstanding under this clause (b)(xiii) shall at no time exceed the gross proceeds actually received by the  Borrower and the Restricted Subsidiaries in connection with such disposition;                         (xiv)  Indebtedness  of  the  Borrower  or  any  Restricted  Subsidiary  Incurred  in  the  ordinary course of business under Guarantees of Indebtedness of suppliers, licensees, franchisees or customers in an  aggregate amount not to exceed $20,000,000 at any time outstanding;                         (xv)   Indebtedness Incurred by the Borrower or any Restricted Subsidiary consisting of  obligations to pay insurance premiums;                         (xvi)  Indebtedness Incurred by the Borrower or any Restricted Subsidiary related to  unfunded or underfunded Pension Plans and other employee benefit plan obligations and liabilities to the extent they  are permitted to remain unfunded or underfunded under Applicable Law;                         (xvii) Indebtedness of the Borrower or a Restricted Subsidiary in an aggregate principal  amount which, when taken together with all other Indebtedness Incurred pursuant to, and outstanding on the date of  such  Incurrence  under,  this  clause  (b)(xvii) does not  exceed  the  greater  of  (A)  $125,000,000  and (B)  17.5%  of  Consolidated  Net  Tangible  Assets  at  the  time  of  Incurrence;  provided  that  the  aggregate  principal  amount  of  Indebtedness that may be Incurred pursuant to this clause (xvii) by Restricted Subsidiaries that are not Guarantors  shall not exceed $10,000,000 at the time of Incurrence;                         (xviii) Acquired Indebtedness of Persons that are merged into or consolidated with the  Borrower or any Restricted Subsidiary in accordance with Section 7.8 (other than Indebtedness Incurred in connection  with, or to provide all or any portion of the funds or credit support utilized to consummate, any such transaction or  series of transactions); provided, however, the Borrower may, if it so elects, treat as Indebtedness outstanding on the  date of such merger or consolidation the amount of any undrawn commitment to fund Indebtedness that such other  Person was entitled to borrow immediately prior to the time of such merger; provided that, in connection with any  such election, such undrawn commitment shall be treated as outstanding Indebtedness for all purposes under this  Agreement, including for purposes of calculating the Consolidated Coverage Ratio (including for purposes of Section  7.8), for so long as such commitment remains outstanding; provided, further, that the aggregate principal amount of  Indebtedness that may be Incurred pursuant to this clause (xviii) by Restricted Subsidiaries that are not Guarantors  shall not exceed $10,000,000 at the time of Incurrence;                         (xix)  Indebtedness of the Borrower or any Restricted Subsidiary supported by one or  more letters of credit issued under a Credit Facility in accordance with Section 7.2(b)(i) above; provided that such  Indebtedness is in a principal amount not in excess of the stated amount of such letter(s) of credit;                         (xx)   Indebtedness of the Borrower or any Restricted Subsidiary to current or former  officers, directors, consultants and employees thereof, their respective estates, spouses or former spouses, in each case,  to finance the purchase, redemption or other acquisition of Capital Stock of the Borrower or any of its Subsidiaries  permitted by Section 7.1(b)(iv) in an amount not to exceed $20,000,000 at any time outstanding;                          (xxi)  Indebtedness  of  Foreign  Subsidiaries  in  an  aggregate  principal  amount  which,  when taken together with all other Indebtedness Incurred pursuant to, and outstanding on the date of such Incurrence  under, this clause (b)(xxi) does not exceed $65,000,000;                         (xxii) Indebtedness constituting Incremental Equivalent Debt to the extent permitted to  be Incurred pursuant to Section 2.12(g);                         (xxiii) Permitted Unsecured Refinancing Debt; and                         (xxiv) Permitted  First  Priority  Refinancing  Debt  and  Permitted  Junior  Priority  Refinancing Debt.                                                    94 

 

               (c)    Notwithstanding  the  foregoing,  neither  the  Borrower  nor  any  Guarantor  will  Incur  any  Permitted  Indebtedness  if  the  proceeds  thereof  are  used,  directly  or  indirectly,  to  Refinance  any  Subordinated  Obligations or any Specified Junior Indebtedness of the Borrower or any Guarantor unless either (i) such Indebtedness  shall be subordinated in right of payment to the Obligations or junior in Lien priority to all of the Liens securing the  Obligations (or be unsecured), as applicable, to at least the same extent as such Subordinated Obligations or Specified  Junior Indebtedness, or (ii) such Refinancing shall constitute a Restricted Payment pursuant to Section 7.1(a) that  reduces  the  available  amount  of  Restricted  Payments  under  Section  7.1(a)(iii)  by  the  principal  amount  of  such  Subordinated Obligations or Specified Junior Indebtedness Refinanced, as applicable.                  (d)    For the purposes of determining compliance with, and the outstanding principal amount of  Indebtedness Incurred pursuant to and in compliance with, this Section 7.2:                         (i)    notwithstanding  the  following  clauses  (ii)  through  (iv),  any  Indebtedness  outstanding under (A) the ABL Agreement (and any Refinancing thereof) will be treated as Incurred under Section  7.2(b)(i) above and (B) the Existing Notes outstanding on the Agreement Date shall be treated as Incurred pursuant to  Section 7.2(b)(iii) above;                         (ii)   in the event that an item of Indebtedness (or any portion thereof) meets the criteria  of more than one of the types of Indebtedness described above, the Borrower, in its sole discretion, will classify such  item of Indebtedness (or any portion thereof) at the time of Incurrence and will only be required to include the amount  and type of such Indebtedness in one of the above clauses;                         (iii)  the Borrower will be entitled to divide and classify an item of Indebtedness in  more than one of the types of Indebtedness described above and, in that connection, the Borrower will be entitled to  treat a portion of such Indebtedness as Coverage Indebtedness and the balance of such Indebtedness as an item or  items of Permitted Indebtedness; and                         (iv)   any Indebtedness originally classified as Incurred pursuant to Section 7.2(a) above  or one of the clauses in Section 7.2(b) above (other than Indebtedness described in clause (i) of this Section 7.2(d), if  any) may later be reclassified from time to time by the Borrower such that it will be deemed as having been Incurred  as Coverage Indebtedness pursuant to Section 7.2(a) above or as Indebtedness permitted pursuant to another clause in  Section 7.2(b) above, as applicable, to the extent that such reclassified Indebtedness could be Incurred pursuant thereto  at the time of such reclassification.                  (e)    For purposes of determining compliance with any Dollar denominated restriction on the  Incurrence of Indebtedness or any other covenant, limitation or ratio in this Agreement, the Dollar equivalent principal  amount of Indebtedness denominated in a foreign currency shall be utilized, calculated based on the relevant currency  exchange rate  in  effect  on  the  date  such  Indebtedness  was  Incurred.  Notwithstanding  any  other  provision  of  this  Agreement , the maximum amount of Indebtedness that the Borrower or any Restricted Subsidiary may Incur pursuant  to  this  Section  7.2  shall  not  be  deemed  to  be  exceeded,  nor  shall  any  other  covenant,  limitation  or  ratio  in  this  Agreement be deemed to be breached or exceeded, solely as a result of fluctuations in exchange rates or currency  values.                  (f)    This Agreement will not treat (1) unsecured Indebtedness as subordinated or junior to  secured Indebtedness merely because it is unsecured, (2) secured Indebtedness as subordinated or junior to any other  secured Indebtedness merely because it has a junior priority with respect to the same collateral or is secured with  different collateral, or (3) any Indebtedness as subordinated or junior to other Indebtedness by virtue of structural  subordination, maturity date or being guaranteed by less than all guarantors of such other Indebtedness.          7.3     Limitation on Liens.  The Borrower shall not, and shall not permit any of its Restricted Subsidiaries  to, Incur or permit to exist any Lien of any nature whatsoever on any of its properties (including Capital Stock of a                                                   95 

 

Restricted  Subsidiary),  whether  owned  at  the  Agreement  Date  or  thereafter  acquired,  securing  any  Indebtedness,  except for Permitted Liens.          7.4     Limitations on Restrictions on Distributions from Restricted Subsidiaries.  (a) The Borrower shall  not, and shall not permit any Restricted Subsidiary to, create or otherwise cause or permit to exist or become effective  any consensual encumbrance or restriction on the ability of any Restricted Subsidiary to (i) pay dividends or make  any other distributions on its Capital Stock to the Borrower or a Restricted Subsidiary or pay any Indebtedness owed  to the Borrower or any Restricted Subsidiary (it being understood that the priority of any Preferred Stock in receiving  dividends or liquidating distributions prior to dividends or liquidating distributions being paid on Capital Stock shall  be deemed to not be a restriction on the ability to pay dividends or make other distributions on Capital Stock), (ii) make  any loans or advances to the Borrower or any Restricted Subsidiary or (iii) transfer any of its property or assets to the  Borrower or any Restricted Subsidiary, except:            (A)   with respect to clauses (a)(i), (a)(ii) and (a)(iii),                  (1)    any encumbrance or restriction pursuant to the ABL Agreement or the Existing Notes         Indenture, or any other agreement in effect at or entered into on the Agreement Date and set forth on         Schedule 7.4;                  (2)    any encumbrance or restriction with respect to a Restricted Subsidiary pursuant to an         agreement relating to any Indebtedness Incurred by such Restricted Subsidiary on or prior to the date on         which such Restricted Subsidiary was acquired by the Borrower (other than Indebtedness Incurred as         consideration in, or to provide all or any portion of the funds or credit support utilized to consummate, the         transaction or series of related transactions pursuant to which such Restricted Subsidiary became a         Restricted Subsidiary or was acquired by the Borrower) and outstanding on such date;                  (3)    any encumbrance or restriction pursuant to an agreement effecting a Refinancing of         Indebtedness Incurred pursuant to an agreement referred to in Section 7.4(a)(A)(1) or (2) or this clause (3)         or contained in any amendment to an agreement referred to in Section 7.4(a)(A)(1) or (2) or this clause (3);         provided, however, that the encumbrances and restrictions with respect to such Restricted Subsidiary         contained in any such refinancing agreement or amendment are not materially less favorable, taken as a         whole, to the Borrower (as determined by the Board of Directors of the Borrower in its good faith         judgment) than encumbrances and restrictions with respect to such Restricted Subsidiary contained in such         predecessor agreements;                   (4)    any encumbrance or restriction with respect to a Restricted Subsidiary imposed pursuant         to an agreement entered into for the sale or disposition of all or substantially all the Capital Stock or assets         of such Restricted Subsidiary (including by merger or consolidation) pending the closing of such         transaction;                  (5)    any encumbrance or restriction pursuant to Applicable Law, rule, regulation or order;                  (6)    restrictions on cash, cash equivalents, Temporary Cash Investments or other deposits or         net worth imposed under contracts entered into in the ordinary course of business, including such         restrictions imposed by customers or insurance, surety or bonding companies;                  (7)    any encumbrance or restriction with respect to a Foreign Subsidiary entered into the         ordinary course of business or pursuant to the terms of Indebtedness that was Incurred by such Foreign         Subsidiary in compliance with the terms of this Agreement;                  (8)    provisions contained in any license, permit or other accreditation with a regulatory         authority entered into in the ordinary course of business;                  (9)    provisions in agreements or instruments that prohibit the payment or making of dividends         or other distributions other than on a pro rata basis;                                                    96 

 

               (10)   customary supermajority voting provisions and other customary provisions with respect         to the disposition or distribution of earnings or other assets, each contained in corporate charters, bylaws,         stockholders’ agreements, limited liability company agreements, partnership agreements, joint venture         agreements and other similar agreements entered in the ordinary course of business of the Borrower and its         Restricted Subsidiaries;                   (11)   any encumbrance or restriction contained in agreements governing or relating to Royalty         Interests made in the ordinary course of business;                   (12)   encumbrances or restrictions existing under or by reason of other Indebtedness (including         Hedging Obligations), Disqualified Stock or Preferred Stock permitted to be Incurred subsequent to the         Agreement Date pursuant to Section 7.2 and the provisions relating to such encumbrance or restriction         contained in such Indebtedness, Disqualified Stock or Preferred Stock are not materially less favorable to         the Borrower, taken as a whole, as determined by the Board of Directors of the Borrower in good faith,         than the provisions contained herein as in effect on the Agreement Date; and                  (13)   any encumbrance or restriction arising pursuant to a Cash Management Arrangement;            (B)   with respect to clause (a)(iii) only,                  (1)    any encumbrance or restriction consisting of customary nonassignment provisions in         leases, Licenses or similar agreements to the extent such provisions restrict the transfer of the lease,         License or similar agreement or the property subject thereto;                  (2)    any encumbrance or restriction contained in security agreements or mortgages securing         Indebtedness of a Restricted Subsidiary to the extent such encumbrance or restriction restricts the transfer         of the property or assets subject to such security agreements or mortgages;                  (3)    pursuant to customary provisions restricting dispositions of real property interests set         forth in any reciprocal easement agreements of the Borrower or any Restricted Subsidiary; and                  (4)    encumbrances and restrictions contained in contracts entered into in the ordinary course         of business not relating to any Indebtedness, and that do not, individually or in the aggregate, detract from         the value, property or assets of the Borrower or any Restricted Subsidiary in any manner material to the         Borrower and its Restricted Subsidiaries taken as a whole.          (b)     In each case set forth above, notwithstanding any stated limitation on the assets or property that  may be subject to such encumbrance or restriction, an encumbrance or restriction on a specified asset or property or  group or type of assets or property may also apply to all improvements, repairs, additions, attachments and  accessions thereto, assets and property affixed or appurtenant thereto, parts, replacements and substitutions therefor,  and all products and proceeds thereof, including dividends, distributions, interest and increases in respect thereof.          7.5     Limitation on Sales of Assets and Subsidiary Stock.  (a) The Borrower shall not, and shall not permit  any Restricted Subsidiary to, directly or indirectly, consummate any Asset Disposition, unless:                         (i)    the Borrower or such Restricted Subsidiary receives consideration at the time of  such Asset Disposition at least equal to the Fair Market Value (including as to the value of all non-cash consideration)  of the shares and other assets subject to such Asset Disposition (in each case, such Fair Market Value to be determined  on the date of contractually agreeing to such Asset Disposition); and                         (ii)   at  least  75.0%  of  the  consideration  thereof  received  by  the  Borrower  or  such  Restricted Subsidiary is in the form of cash or Temporary Cash Investments.                  (b)    For purposes of clause (a)(ii) of this Section 7.5, and for no other purpose under this  Agreement, the following shall be deemed to be Temporary Cash Investments:                                                   97 

 

                      (i)    the  assumption  or  Discharge  of  Senior  Indebtedness  of  the  Borrower  or  any  Guarantor (other than obligations in respect of Disqualified Stock of the Borrower or Preferred Stock of a Guarantor)  or any Indebtedness or Preferred Stock of a Restricted Subsidiary that is not a Guarantor and the release of the  Borrower  or  such  Restricted  Subsidiary  from  all  liability  on  such  Indebtedness  in  connection  with  such  Asset  Disposition;                         (ii)   any securities or other obligations received by the Borrower or any Restricted  Subsidiary from the transferee that are converted by the Borrower or such Restricted Subsidiary into cash within 180  days after such Asset Disposition, to the extent of the cash received in that conversion;                         (iii)  the Fair Market Value of (A) any assets (other than securities) received by the  Borrower or any Restricted Subsidiary to be used by it in the Related Business, (B) Capital Stock in a Person that is a  Restricted  Subsidiary  or  in  a  Person  engaged  in  the  Related  Business  that  shall  become  a  Restricted  Subsidiary  immediately upon the acquisition of such Person by the Borrower or any Restricted Subsidiary or (C) a combination  of (A) and (B); and                         (iv)   any  Designated  Non-cash  Consideration  received  by  the  Borrower  or  such  Restricted Subsidiary in such Asset Disposition having an aggregate Fair Market Value, taken together with the Fair  Market Value of all other Designated Non-cash Consideration received pursuant to this clause (iv) that is at that time  outstanding, not greater than 7.5% of Consolidated Net Tangible Assets 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.                  (c)    The Borrower shall apply the Net Available Cash from any Asset Disposition as required  by Section 2.3(b)(iii).          7.6     Limitation on Affiliate Transactions.                    (a)    The Borrower shall not, and shall not permit any Restricted Subsidiary to, enter into or  permit to exist any transaction or series of related transactions (including the purchase, sale, lease or exchange of any  property, employee compensation arrangements or the rendering of any service) with (which term, for purposes of  this Section 7.6, shall include “for the benefit of” where appropriate in the context) any Affiliate of the Borrower that  involves an amount in excess of $10,000,000 (an “Affiliate Transaction”) unless:                         (i)    the  terms  of  the  Affiliate  Transaction  are  not  materially  less  favorable  to  the  Borrower or such Restricted Subsidiary than those that could reasonably be expected to be obtained at the time of the  Affiliate Transaction in arm’s-length dealings with a Person who is not an Affiliate; and                         (ii)   if such Affiliate Transaction involves an amount in excess of $30,000,000, the  terms of the Affiliate Transaction are set forth in writing and a majority of the non-employee directors of the Borrower  disinterested with respect to such Affiliate Transaction have determined in good faith that the criteria set forth in  clause (i) above are satisfied and have approved the relevant Affiliate Transaction as evidenced by a resolution of the  Board of Directors of the Borrower.                  (b)    The provisions of Section 7.6(a) shall not prohibit:                         (i)     (A) any Restricted Payment permitted to be made pursuant to Section 7.1 or any  Permitted Investment (or any Affiliate Transaction that would constitute a Restricted Payment or Permitted Investment  but for the exclusions from such definitions and their component definitions) and (B) any Permitted Lien;                          (ii)   any employment agreement or other employment compensation plan in existence  on  the  Agreement  Date  or  entered  into  thereafter  in  the  ordinary  course  of  business,  including  any  issuance  of  securities,  or  other  payments,  awards  or  grants  in  cash,  securities  or  otherwise  pursuant  to,  or  the  funding  of,  employment  arrangements,  stock  options  and  stock  ownership  plans  approved  by  the  Board  of  Directors  of  the  Borrower;                                                   98 

 

                      (iii)  reasonable  compensation  (including  bonuses)  and  other  benefits  (including  retirement, health, stock option and other benefit plans), indemnification arrangements, employment and severance  agreements provided on behalf of directors, officers and employees of the Borrower or its Restricted Subsidiaries, in  each  case,  approved  by  the Board  of  Directors  of  the  Borrower  or,  in  the  case  of  indemnification  arrangements,  consistent with applicable charter, by-law or statutory provisions;                          (iv)   any  transaction  with  the  Borrower,  a  Restricted  Subsidiary  or  joint  venture or  similar entity that would constitute an Affiliate Transaction solely because the Borrower or a Restricted Subsidiary  owns an equity interest in or otherwise controls such Restricted Subsidiary, joint venture or similar entity;                         (v)    the issuance or sale of any Capital Stock (other than Disqualified Stock) of the  Borrower;                         (vi)   transactions  with  customers,  clients,  vendors,  suppliers  or  other  purchasers  or  sellers  of  goods  or  services,  in  each  case  in  the  ordinary  course  of  business  (including  pursuant  to  joint  venture  agreements);                         (vii)  any  transaction  on  arm’s-length  terms  with  any  non-Affiliate  that  becomes  an  Affiliate as a result of such transaction;                         (viii) any agreement as in effect on the Agreement Date and described on Schedule 7.6  and  any  amendments,  renewals  or  extensions  of  any  such  agreement  (so  long  as  such  amendments,  renewals  or  extensions, taken as a whole, are not materially less favorable to the Borrower or the Restricted Subsidiaries) and the  transactions evidenced thereby;                          (ix)   reasonable advances to or reimbursements of employees for moving expenses,  travel expenses and similar expenditures, in each case, in the ordinary course of business of the Borrower or any of its  Restricted Subsidiaries; and                         (x)    any  Affiliate  Transaction  with  respect  to  which  the  Board  of  Directors  of  the  Borrower shall have received a written opinion from an investment banking firm, accounting firm or appraisal firm of  national  standing  (provided  that  such  firm  is  not  an  Affiliate  of  the  Borrower)  to  the  effect  that  such  Affiliate  Transaction is fair, from a financial standpoint, to the Borrower and its Restricted Subsidiaries or is not materially less  favorable to the Borrower and its Restricted Subsidiaries than could reasonably be expected to be obtained at the time  in an arm’s-length transaction with a Person who was not an Affiliate.          7.7     Limitation  on  Line  of  Business.   The  Borrower  shall  not,  and  shall  not  permit  any  Restricted  Subsidiary to, engage in any business other than a Related Business, except to such extent as would not be material to  the Borrower and its Restricted Subsidiaries as a whole.          7.8     Limitation on Fundamental Changes.  The Borrower shall not, and shall not permit any Restricted  Subsidiary to, enter into any merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer  any liquidation or dissolution), or convey, sell, lease, assign, transfer or otherwise dispose of, all or substantially all  its business units, assets or other properties, except that:                         (a)    so long as no Event of Default has occurred and is continuing or would result         therefrom and immediately after giving pro forma effect to such transaction, either (x) the Borrower (or         Successor Borrower, as applicable) would be able to Incur an additional $1.00 of Coverage Indebtedness         pursuant to Section 7.2(a) or (y) the Consolidated Coverage Ratio of the Borrower (or Successor Borrower,         as applicable) is greater than the Consolidated Coverage Ratio of the Borrower immediately prior to giving         effect  to  such  transaction,  then  any  Subsidiary  or  any  other  Person  may  be  merged,  amalgamated  or         consolidated with or into the Borrower; provided that (A) the Borrower shall be the continuing or surviving         corporation or (B) if the Person formed by or surviving any such merger, amalgamation or consolidation is         not the Borrower (such other Person, the “Successor Borrower”), (i) the Successor Borrower shall be an         entity organized or existing under the laws of the United States, any state thereof, the District of Columbia                                                   99 

 

or any territory thereof, (ii) the Successor Borrower shall expressly assume all the obligations of the Borrower  under this Agreement and the other Loan Documents pursuant to a supplement hereto or thereto in a form  reasonably satisfactory to the Administrative Agent, (iii) each Guarantor, unless it is the other party to such  merger,  amalgamation  or  consolidation,  shall  have  by  a  supplement  hereto  confirmed  that  its  Guaranty  hereunder shall apply to any Successor Borrower’s obligations under this Agreement, (iv) each Subsidiary  grantor  and  each  Subsidiary  pledgor,  unless  it  is  the  other  party  to  such  merger,  amalgamation  or  consolidation, shall have by a supplement to any applicable Collateral Document affirmed that its obligations  thereunder shall apply to its Guaranty as reaffirmed pursuant to clause (iii), and (v) the Successor Borrower  shall  have  delivered  to  the  Administrative  Agent  (x)  an  Officers’  Certificate  stating  that  such  merger,  amalgamation, or consolidation and such supplements preserve the enforceability of the Guaranty and the  perfection and priority of the Liens under the applicable Collateral Documents and (y) if requested by the  Administrative Agent, an Opinion of Counsel to the effect that such merger, amalgamation, or consolidation  does not violate this Agreement or any other Loan Document and that the provisions set forth in the preceding  clauses (iii) and (iv) preserve the enforceability of the Guaranty and the perfection of the Liens created under  the applicable Collateral Documents (it being understood that if the foregoing are satisfied, the Successor  Borrower will succeed to, and be substituted for, the Borrower under this Agreement);                  (b)    so long as no Event of Default has occurred and is continuing or would result  therefrom and immediately after giving pro forma effect to such transaction, either (x) the Borrower would  be  able  to  Incur  an  additional  $1.00  of  Coverage  Indebtedness  pursuant  to  Section  7.2(a)  or  (y)  the  Consolidated  Coverage  Ratio  of  the  Borrower  is  greater  than  the  Consolidated  Coverage  Ratio  of  the  Borrower immediately prior to giving effect to such transaction, then any Subsidiary or any other Person  (other  than  the  Borrower)  may  be  merged,  amalgamated  or  consolidated  with  or  into  any  one  or  more  Subsidiaries of the Borrower (in each case, other than the Borrower); provided that (A) in the case of any  merger,  amalgamation  or  consolidation  involving  one  or  more  Restricted  Subsidiaries,  (1)  a  Restricted  Subsidiary shall be the continuing or surviving Person or (2) the Borrower shall cause the Person formed by  or  surviving  any  such  merger,  amalgamation  or  consolidation  (if  other  than  a  Restricted  Subsidiary)  to  become a Restricted Subsidiary, (B) in the case of any merger, amalgamation or consolidation involving one  or more Guarantors, a Guarantor shall be the continuing or surviving Person or the Person formed by or  surviving  any  such  merger,  amalgamation  or  consolidation  and  if  the  surviving  Person  is  not  already  a  Guarantor, such Person shall execute a supplement to this Agreement and the relevant Collateral Documents  in form and substance reasonably satisfactory to the Administrative Agent in order to become a Guarantor  and pledgor, mortgagor and grantor, as applicable, hereunder and thereunder for the benefit of the Secured  Parties, and (C) the Borrower shall have delivered to the Administrative Agent an Officers’ Certificate stating  that such merger, amalgamation or consolidation and any such supplements to any Collateral Document  preserve the enforceability of the Guaranty and the perfection and priority of the Liens under the applicable  Collateral Documents;                  (c)    (i) any Restricted Subsidiary  that is not a Loan Party may convey, sell, lease,  assign, transfer or otherwise dispose of any or all of its assets (upon voluntary liquidation or dissolution or  otherwise) to the Borrower or any other Restricted Subsidiary or (ii) any Loan Party (other than the Borrower)  may  convey,  sell,  lease,  assign,  transfer or  otherwise  dispose  of  any  or  all  of  its  assets  (upon voluntary  liquidation or dissolution or otherwise) to any other Loan Party;                  (d)    any Subsidiary may convey, sell, lease, assign, transfer or otherwise dispose of  any or all of its assets (upon voluntary liquidation or dissolution or otherwise) to a Loan Party; provided that  the consideration for any such disposition by any Person other than a Guarantor shall not exceed the fair  value of such assets;                  (e)    any Restricted Subsidiary may liquidate or dissolve if the Borrower determines in  good faith that such liquidation or dissolution is in the best interests of the Borrower and is not materially  disadvantageous to the Lenders; and                  (f)    the  Borrower  and  the  Restricted  Subsidiaries  may  consummate  a  merger,  dissolution, liquidation, consolidation, investment or conveyance, sale, lease, assignment or disposition, the  purpose of which is to effect an Asset Disposition (which for purposes of this clause (f), will include any                                           100 

 

       disposition  below  the  dollar  threshold  set  forth  in  clause (C)  of  the  definition  of  “Asset  Disposition”)         permitted by Section 7.5 or an Investment permitted pursuant to Section 7.1 or an Investment that constitutes         a Permitted Investment.          7.9     Impairment of Security Interest.  The Borrower shall not, and shall not permit any of its Restricted  Subsidiaries to, take or knowingly or negligently omit to take, any action which action or omission might or would  have the result of materially impairing the security interest with respect to the Collateral for the benefit of the Secured  Parties.          7.10    Amendment of Subordinated Obligations and Specified Junior Indebtedness.  The Borrower will  not, and will not permit any Restricted Subsidiary to, amend or modify the documentation governing any Subordinated  Obligations or Specified Junior Indebtedness, if the effect of such amendment or modification is materially adverse  to the Lenders; provided that any such amendment or modification will be deemed not to be materially adverse to the  Lenders  if  such  Subordinated  Indebtedness  or  Specified  Junior  Indebtedness,  as  applicable,  could  otherwise  be  Incurred  under  this  Agreement  (including  as  Indebtedness  that  does  not  constitute  Subordinated  Obligations  or  Specified  Junior  Indebtedness)  with  such  terms  as  so  amended  or  modified  at  the  time  of  such  amendment  or  modification.          7.11    Fiscal Year.  The Borrower shall not, and shall not permit any Restricted Subsidiary to, change its  Fiscal  Year  without  the  consent  of  the  Administrative  Agent  (such  consent  not  to  be  unreasonably  withheld,  conditioned  or  delayed);  provided  that,  in  connection  with  any  such  change,  the  Administrative  Agent  and  the  Borrower shall enter into any amendment to this Agreement necessary to incorporate such change in Fiscal Year and  maintain the intent of any provisions impacted thereby.                                            ARTICLE VIII                               EVENTS OF DEFAULT AND REMEDIES          8.1     Events of Default.  Any of the following shall constitute an event of default (each, an “Event of  Default”):                  (a)    Non-Payment.  The Borrower or any other Loan Party fails to (i) pay when and as required  to be paid herein, any amount of principal of any Term Loan or (ii) pay within three (3) Business Days after the same  becomes due, any interest on any Term Loan, or any fee due hereunder, or (iii) pay within five (5) Business Days after  the same becomes due, any other amount payable hereunder or under any other Loan Document; or                  (b)    Specific Covenants.  (i) The Borrower fails to perform or observe any term, covenant or  agreement contained in any of Section 6.2, 6.3(d), 6.4 (with respect to the Borrower only), 6.10, 6.11, 6.12 or 6.13 or  Article VII, or (ii) any of the Guarantors fails to perform or observe any term, covenant or agreement contained in  Article X; or                  (c)    Other  Defaults.   Any  Loan  Party  fails  to  perform  or  observe  any  other  covenant  or  agreement (not specified in Section 8.1(a) or (b) above) contained in any Loan Document on its part to be performed  or observed and such failure continues for 30 days after a Responsible Officer of such Loan Party has knowledge  thereof or receives notice thereof from Administrative Agent; or                  (d)    Representations and Warranties.  Any representation, warranty, certification or statement  of fact made or deemed made by or on behalf of the Borrower or any other Loan Party herein, in any other Loan  Document, or in any document delivered in connection herewith or therewith shall be incorrect or misleading in any  material respect when made or deemed made (provided that, to the extent any such representation and warranty is  qualified by, or subject to, “materiality”, “Material Adverse Effect” or similar language, the same shall be true and  correct in all respects); or                                                   101 

 

               (e)    Cross-Default; Cross-Acceleration.  (i) Any payment default shall occur with respect to  any payment of principal of or interest on any Indebtedness of any Loan Party, in each case (excluding the Term Loans  and any Indebtedness owed to the Borrower or any other Loan Party) in excess of the Threshold Amount and such  default shall continue beyond the period of grace, if any, provided in the instrument or agreement under which such  Indebtedness was created, (ii) any default shall occur with respect to the observance or performance by any Loan Party  of any other agreement relating to any Indebtedness of any Loan Party (excluding Indebtedness hereunder) referred  to in clause (i) above or contained in any instrument or agreement evidencing, securing or relating thereto, or any  other event shall occur or condition exist, the effect of which default or other event or condition is to cause, or to  permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause,  with the giving of notice or lapse of time if required, such Indebtedness to become due prior to its stated maturity (an  “Acceleration”) and such time shall have lapsed and, if any notice (a “Default Notice”) shall be required to commence  a grace period or declare the occurrence of an event of default before notice of Acceleration may be delivered, such  Default Notice shall have been given and (in the case of the preceding clause (i) or this clause (ii)) such default, event  or condition shall not have been remedied or waived by or on behalf of such holder or holders (provided that this  clause (ii) shall not apply to (w) 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, (x) any termination  event or similar event pursuant to the terms of any Interest Rate Agreement, Currency Agreement or Commodity  Agreement), (y) obligations arising due to the delivery of a notice of voluntary prepayment of Indebtedness if such  voluntary  prepayment  is  permitted  hereunder  or  (z) mandatory  prepayments  of  asset-based  loans  in  an  aggregate  principal  amount  not  in  excess  of  the  Threshold  Amount),  or   (iii)  there  shall  have  been  an  Acceleration  of  any  Indebtedness (excluding Indebtedness hereunder) referred to in clause (i) above and, if the Administrative Agent has  not  yet  commenced  the  exercise  of  remedies  under  the  Loan  Documents,  such  Acceleration  shall  not  have  been  rescinded; or                  (f)    Insolvency  Proceedings,  Etc.   Any  Loan  Party  or  any  Significant  Subsidiary  thereof  institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for  the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator,  liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or any receiver, trustee,  custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of  such Person and the appointment continues undischarged or unstayed for 60 calendar days; or any proceeding under  any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without  the consent of such Person and continues undismissed or unstayed for 60 calendar days, or an order for relief is entered  in any such proceeding; or                  (g)    Inability  to  Pay  Debts;  Attachment.   (i)  Any  Loan  Party  becomes  unable  or  admits  in  writing its inability or fails generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or  execution or similar process is issued or levied against all or any material part of the property of any such Person and  is not released, vacated or fully bonded within 30 days after its issue or levy; or                  (h)    Judgments.  There is entered against any Loan Party or any Subsidiary thereof (i) one or  more final judgments or orders for the payment of money in an aggregate unpaid amount (as to all such judgments  and orders) exceeding the Threshold Amount (to the extent not covered by independent third-party insurance as to  which the insurer is rated at least “A” by A.M. Best Company, has been notified of the potential claim and does not  dispute coverage), or (ii) any one or more non-monetary final judgments that have, or could reasonably be expected  to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement proceedings  are commenced by any creditor upon such judgment or order, or (B) there is a period of ten (10) consecutive days  during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or                  (i)    ERISA.  (i) An ERISA Event occurs with respect to a Pension Plan or Multi-employer Plan  which has resulted or could reasonably be expected to result in liability of the Borrower or any of its Subsidiaries to  the Pension Plan, Multi-employer Plan or the PBGC, other than liability that has been satisfied or otherwise is no  longer outstanding, in an aggregate amount that could reasonably be expected to have a Material Adverse Effect, or  (ii) the Borrower or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period,  any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multi-employer  Plan in an aggregate amount in excess of the Threshold Amount; or                                                   102 

 

               (j)    Invalidity of Loan Documents.  Any provision (not contemplated by Section 8.1(l) below)  of any Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted  hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Loan  Party contests in any manner the validity or enforceability of any such provision of any Loan Document; or any Loan  Party denies that it has any or further liability or obligation under any such provision of any Loan Document, or  revokes, terminates or rescinds any such provision of any Loan Document; or                  (k)    Change of Control.  There occurs any Change of Control; or                  (l)    Collateral  Documents.   Any  Collateral  Document  after  delivery  thereof  pursuant  to  Section 4.1, 6.12 or 6.13 shall for any reason (other than pursuant to, or as permitted by, the terms thereof) cease to  create a valid and perfected first priority Lien (subject to Permitted Liens) on the Collateral purported to be covered  thereby, which Collateral has a Fair Market Value in excess of the Threshold Amount; or                  (m)    Subordination.  (i)  The subordination provisions of the documents evidencing or governing  any subordinated Indebtedness of any Loan Party (the “Subordination Provisions”) shall, in whole or in part, terminate,  cease  to  be  effective  or  cease  to  be  legally  valid,  binding  and  enforceable  against  any  holder  of  the  applicable  subordinated Indebtedness; or (ii) the Borrower or any other Loan Party shall, directly or indirectly, disavow or contest  in any manner (A) the effectiveness, validity or enforceability of any of the Subordination Provisions, (B) that the  Subordination Provisions exist for the benefit of the Administrative Agent and the Lenders or (C) that all payments of  principal of or premium and interest on the applicable subordinated Indebtedness, or realized from the liquidation of  any property of any Loan Party, shall be subject to any of the Subordination Provisions.          8.2     Remedies  upon  Event  of  Default.   If  any  Event  of  Default  occurs  and  is  continuing,  the  Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders, take any or all of the  following actions:                  (a)    declare the commitment of each Lender to make Terms Loans to be terminated, whereupon  such commitments and obligation shall be terminated;                  (b)    declare the unpaid principal amount of all outstanding Term Loans, all interest accrued and  unpaid  thereon,  and  all  other  amounts  owing  or  payable  hereunder  or  under  any  other  Loan  Document  to  be  immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are  hereby expressly waived by the Borrower; and                  (c)    exercise on behalf of itself and the Lenders all rights and remedies available to it and the  Lenders under the Loan Documents;    provided, however, that upon the occurrence of an event described in Section 8.1(f) with respect to the Borrower, the  obligation of each Lender to make Term Loans shall automatically terminate, the unpaid principal amount of all  outstanding Term Loans and all interest and other amounts as aforesaid shall automatically become due and payable,  in each case without further act of the Administrative Agent or any Lender.          8.3     Application of Funds.  After the exercise of remedies provided for in Section 8.2 (or after the Term  Loans have automatically become immediately due and payable as set forth in the proviso to Section 8.2), any amounts  received  on  account  of  the  Obligations  shall,  subject  to  the  provisions  of  Sections  2.15,  be  applied  by  the  Administrative 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 Administrative Agent and amounts payable under Article  III) payable to the Administrative Agent in its capacity as such;          Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other  than  principal  and  interest)  payable  to  the  Lenders  (including  fees,  charges  and  disbursements  of  counsel  to  the                                                   103 

 

respective Lenders) arising under the Loan Documents and amounts payable under Article III, ratably among them in  proportion to the respective amounts described in this clause Second payable to them;          Third, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Term  Loans  and  other  Obligations  arising  under  the  Loan  Documents,  ratably  among  the  Lenders  in  proportion  to  the  respective amounts described in this clause Third payable to them;          Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Term Loans, ratably  among the Lenders in proportion to the respective amounts described in this clause Fourth held by them; and          Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Borrower or  as otherwise required by Law.                                             ARTICLE IX                                            THE AGENT          9.1     Appointment and Authority.                  (a)    Each of the Lenders hereby irrevocably appoints Bank of America to act on its behalf as  the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to  take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms  hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this  Article IX are solely for the benefit of the Administrative Agent and the Lenders and neither the Borrower nor any  other Loan Party shall have rights as a third party beneficiary of any of such provisions.  It is understood and agreed  that the use of the term “agent” herein or in any other Loan Documents (or any other similar term) with reference to  the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising  under agency doctrine of any Applicable Law. Instead, such term is used as a matter of market custom, and is intended  to create or reflect only an administrative relationship between contracting parties.                  (b)    The  Administrative  Agent  shall  also  act  as  the  “collateral  agent”  under  the  Loan  Documents and each of the Lenders hereby irrevocably appoints and authorizes the Administrative Agent to act as the  agent of such Lender for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any  of the Loan Parties to secure any of the Obligations, together with such powers and discretion as are reasonably  incidental thereto.  In this connection, the Administrative Agent, as “collateral agent” and any co-agents, sub-agents  and  attorneys-in-fact  appointed  by  the  Administrative  Agent  pursuant  to  Section  9.5  for  purposes  of  holding  or  enforcing any Lien on the Collateral (or any portion thereof granted under the Collateral Documents, or for exercising  any rights and remedies thereunder at the direction of the Administrative Agent), shall be entitled to the benefits of all  provisions of this Article IX and Article XI (including Section 11.4(c), as though such co-agents, sub-agents and  attorneys-in-fact were the “collateral agent” under the Loan Documents) as if set forth in full herein with respect  thereto.          9.2     Rights as a Lender.  The Person serving as the Administrative Agent hereunder shall have the same  rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the  Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the  context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity.   Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor  or in any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary  or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to  account therefor to the Lenders.          9.3     Exculpatory Provisions.  The Administrative Agent or the Arranger, as applicable, shall not have  any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties  hereunder shall be administrative in nature.  Without limiting the generality of the foregoing, the Administrative Agent  or the Arranger, as applicable:                                                   104 

 

               (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 Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number  or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents); provided that  the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may  expose the Administrative Agent to liability or that is contrary to any Loan Document or Applicable Law, including  for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or  that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor  Relief Law;                   (c)    shall not have any duty or responsibility to disclose, and shall not be liable for the failure  to disclose, to any Lender 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 Administrative Agent, Arranger or any of their Related Parties  in any capacity, except for notices, reports and other documents expressly required to be furnished to the Lenders by  the Administrative Agent herein;                  (d)    shall not be liable for any action taken or not taken by it (i) with the consent or at the request  of  the  Required  Lenders  (or  such  other  number  or  percentage  of  the  Lenders  as  shall  be  necessary,  or  as  the  Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections  11.1 and 8.2) or (ii) in the absence of its own gross negligence or willful misconduct, as determined by a court of  competent jurisdiction by a final and nonappealable judgment.  The Administrative Agent shall be deemed not to have  knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent by the  Borrower or a Lender;                  (e)    shall not be responsible for or have any duty to ascertain or inquire into (i) any statement,  warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents  of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith,  (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein  or  therein  or  the  occurrence  of  any  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 the sufficiency of any  Collateral or (vi) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm  receipt of items expressly required to be delivered to the Administrative Agent; and                  (f)    shall not be responsible or have any liability for, or have any duty to ascertain, inquire into,  monitor or enforce, compliance with the provisions of this Agreement relating to Disqualified Institutions.  Without  limiting the generality of the foregoing, the Administrative Agent shall not (x) be obligated to ascertain, monitor or  inquire as to whether any Lender or Participant or prospective Lender or Participant is a Disqualified Institution or  (y) have any liability with respect to or arising out of any assignment or participation of Term Loans, or disclosure of  confidential information, to any Disqualified Institution (other than any such assignment, participation or disclosure  made by the Administrative Agent in its capacity as a Lender hereunder).          9.4     Reliance by Administrative Agent.  The Administrative Agent shall be entitled to rely upon, and  shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document  or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed  by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Administrative  Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the  proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition  hereunder  to  the  making  of  a  Term  Loan,  that  by  its  terms  must  be  fulfilled  to  the  satisfaction  of  a  Lender,  the  Administrative Agent may presume that such condition is satisfactory to such Lender unless the Administrative Agent  shall  have  received  notice  to  the  contrary  from  such  Lender  prior  to  the  making  of  such  Term  Loan.   The  Administrative  Agent  may  consult  with  legal  counsel  (who  may  be  counsel  for  the  Borrower),  independent                                                  105 

 

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.          9.5     Delegation of Duties.  The Administrative Agent may perform any and all of its duties and exercise  its  rights  and  powers  hereunder or under  any  other  Loan  Document  by or  through  any  one or more  sub-agents  appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any and all  of  its  duties  and  exercise  its  rights  and  powers  by  or  through  their  respective  Related  Parties.   The  exculpatory  provisions of this Article IX shall apply to any such sub-agent and to the Related Parties of the Administrative Agent  and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit  facilities provided for herein as well as activities as the Administrative Agent.  The Administrative Agent shall not be  responsible  for  the  negligence  or  misconduct  of  any  sub-agents  except  to  the  extent  that  a  court  of  competent  jurisdiction  determines  in  a  final  and  nonappealable  judgment  that  the  Administrative  Agent  acted  with  gross  negligence or willful misconduct in the selection of such sub-agents.          9.6     Resignation of Administrative Agent.                    (a)    The Administrative Agent may at any time give notice of its resignation to the Lenders and  the Borrower.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right 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; provided that such successor shall, so long as no Default or Event of Default exists at such time, be  subject to the consent of the Borrower (such consent not to be unreasonably withheld, conditioned or delayed).  If no  such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within  30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed  by the Required Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may (but shall  not be obligated to) on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set  forth  above,  provided  that  in  no  event  shall  any  such  successor  Administrative  Agent be  a  Defaulting  Lender or  Disqualified Institution.  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 Administrative Agent is a Defaulting Lender pursuant to clause (d)  of the definition thereof, the Required Lenders may, to the extent permitted by Applicable Law, by notice in writing  to the Borrower and such Person remove such Person as Administrative Agent, appoint a successor; provided that  such successor shall, so long as no Default or Event of Default exists at such time, be subject to the consent of the  Borrower (such consent not to be unreasonably withheld, conditioned or delayed).  If no such successor shall have  been so appointed by the Required Lenders and shall have accepted such appointment within 30 days (or such earlier  day as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such removal shall nonetheless  become effective in accordance with such notice on the Removal Effective Date.                  (c)    With  effect  from  the  Resignation  Effective  Date  or  the  Removal  Effective  Date  (as  applicable)  (1)  the  retiring  or  removed  Administrative  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  Administrative Agent on behalf of the Lenders under any of the Loan Documents, the retiring Administrative Agent  shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed) and  (2) except for any indemnity payments or other amounts then owed to the retiring or removed Administrative Agent,  all payments, communications and determinations provided to be made by, to or through the Administrative Agent  shall instead be made by or to each Lender directly, until such time, if any, as the Required Lenders appoint a successor  Administrative Agent as provided for above.  Upon the acceptance of a successor’s appointment as Administrative  Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and  duties of the retiring (or removed) Administrative Agent (other than as provided in Section 3.1(g) and other than any  rights  to  indemnity  payments  or  other  amounts  owed  to  the  retiring  or  removed  Administrative  Agent  as  of  the  Resignation Effective Date or the Removal Effective Date, as applicable), and the retiring or removed Administrative  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 9.6).  The fees payable by the Borrower to a successor  Administrative  Agent  shall  be  the  same  as  those  payable  to  its  predecessor  unless  otherwise  agreed  between  the  Borrower and such successor.  After the retiring or removed Administrative Agent’s resignation or removal hereunder  and under the other Loan Documents, the provisions of this Article IX and Section 11.4 shall continue in effect for                                                  106 

 

the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in  respect of any actions taken or omitted to be taken by any of them (i) while the retiring or removed Administrative  Agent  was  acting  as  Administrative  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 (a) acting as collateral agent  or otherwise holding any collateral security on behalf of any of the Lenders and (b) in respect of any actions taken in  connection with transferring the agency to any successor Administrative Agent.          9.7     Non-Reliance  on  the  Administrative  Agent,  the  Arranger  and  the  Other  Lenders.   Each  Lender  expressly  acknowledges  that  none  of  the  Administrative  Agent  nor  the  Arranger  has  made  any  representation  or  warranty to it, and that no act by the Administrative Agent or the 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 Administrative Agent or the Arranger to any Lender as to any  matter, including whether the Administrative Agent or the Arranger have disclosed material information in their (or  their Related Parties’) possession.  Each Lender represents to the Administrative Agent and the Arranger that it has,  independently and without reliance upon the Administrative Agent, the 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 and to  extend credit to the Borrower hereunder.  Each Lender also acknowledges that it will, independently and without  reliance upon the Administrative Agent, the Arranger, 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 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 for the purpose of making,  acquiring or holding commercial loans and providing other facilities set forth herein as may be applicable to such  Lender, and not for the purpose of purchasing, acquiring or holding any other type of financial instrument, and each  Lender agrees not to assert a claim in contravention of the foregoing. Each Lender 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, 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.          9.8     No Other Duties, Etc.  Anything herein to the contrary notwithstanding, the Arranger shall not have  any powers, duties or responsibilities under this Agreement or any of the other Loan Documents.          9.9     Administrative Agent May File Proofs of Claim; Credit Bidding.                   (a)    In  case  of  the  pendency  of  any  proceeding  under  any  Debtor  Relief  Law  or  any  other  judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any  Term Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether  the  Administrative  Agent  shall  have  made  any  demand  on  the  Borrower)  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 Term Loans 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  and  the  Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances  of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the  Lenders and the Administrative Agent under Section 2.7 and 11.4) allowed in such judicial proceeding; andto collect  and receive any monies or other property payable or deliverable on any such claims and to distribute the same;   and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial  proceeding  is  hereby  authorized  by  each  Lender  to  make  such  payments  to  the  Administrative  Agent  and,  if  the  Administrative  Agent  shall  consent  to  the  making  of  such  payments  directly  to  the  Lenders,  to  pay  to  the                                                  107 

 

Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the  Administrative  Agent  and  its  agents  and  counsel,  and  any  other  amounts  due  the  Administrative  Agent  under  Sections 2.7 and 11.4.          Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to  or  accept  or  adopt  on  behalf  of  any  Lender  any  plan  of  reorganization,  arrangement,  adjustment  or  composition  affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the  claim of any Lender or in any such proceeding.          The Secured Parties hereby irrevocably authorize the Administrative Agent, at the direction of the Required  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 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 Administrative 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 Capital Stock or debt  instruments of the acquisition vehicle or vehicles that are used to consummate such purchase).  In connection with  any such bid (i) the Administrative 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 Administrative Agent with respect to such acquisition vehicle or vehicles, including any disposition of the  assets or shares of Capital Stock thereof shall be governed, directly or indirectly, by the vote of the Required Lenders,  irrespective of the termination of this Agreement and without giving effect to the limitations on actions by the Required  Lenders contained in clauses (a) through (h) of Section 11.1 of this Agreement), and (iii) 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 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 shares of Capital Stock 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.          9.10    Concerning the Collateral, Guaranties and Related Loan Documents.                    (a)    Each Lender authorizes and directs the Administrative Agent to enter into the other Loan  Documents, including the ABL Intercreditor Agreement and any Acceptable Intercreditor Agreement, for the ratable  benefit and obligation of the Administrative Agent and the Lenders.  Each Lender agrees that any action taken by the  Administrative Agent or the Required Lenders, as applicable, in accordance with the terms of this Agreement or the  other Loan Documents, and the exercise by the Administrative Agent or the Required Lenders, as applicable, of their  respective powers set forth therein or herein, together with such other powers that are reasonably incidental thereto,  shall be binding upon all of the Lenders.  The Lenders acknowledge that the Term Loans and all interest, fees and  expenses hereunder constitute one Indebtedness, secured pari passu by all of the applicable Collateral.                  (b)    Each Lender authorizes and directs the Administrative Agent to enter into (i) the Collateral  Documents, (ii) the ABL Intercreditor Agreement and any Acceptable Intercreditor Agreement for the benefit of the  Lenders and the other Secured Parties, (iii) any amendments to, waivers of or supplements to or other modifications  of the Collateral Documents, the ABL Intercreditor Agreement or any Acceptable Intercreditor Agreement, in each  case with respect to the preceding clauses (i), (ii) and (iii), in connection with the Incurrence by the Borrower of  Incremental  Term  Loans,  Refinancing  Term  Loans  or  other  Indebtedness  secured  by  a  Permitted  Lien  (each,  an  “Intercreditor Agreement Supplement”) to permit such Incremental Term Loans, Refinancing Term Loans, or other  Indebtedness to be secured by a valid, perfected Lien on Collateral (with such priority as may be designated by the  relevant Loan Parties, as and to the extent such priority is permitted by the Loan Documents) (it being agreed that any                                                  108 

 

Lien securing such Indebtedness (other than Incremental Term Loans and Refinancing Term Loans) shall be granted  pursuant to security documents separate from the Collateral Documents) and (iv) any Incremental Term Amendment,  Extension Amendment or Refinancing Amendment as provided in Sections 2.12, 2.13 and 2.14, respectively, and any  amendment as provided in Section 1.3(b) or Section 7.11.  Each Lender hereby agrees that, except as otherwise set  forth herein, any action taken by the Administrative Agent or the Required Lenders in accordance with the provisions  of this Agreement, the Collateral Documents, any applicable intercreditor agreement, including the ABL Intercreditor  Agreement  or  any  applicable  Acceptable  Intercreditor  Agreement,  any  Intercreditor  Agreement  Supplement,  any  Incremental Term Amendment, any Extension Amendment or any Refinancing Amendment and the exercise by the  Administrative Agent or the Required Lenders of the powers set forth herein or therein, together with such other  powers as are reasonably incidental thereto, shall be authorized and binding upon all of the Lenders.                  (b)    Without limiting the foregoing provisions of this Section 9.10 and Section 9.9, each of the  Lenders irrevocably authorizes the Administrative Agent, at its option and in its discretion,                         (i)    to release any Lien on any property granted to or held by the Administrative Agent  under  any  Loan  Document  (i)  upon  Full  Payment  of  the  Obligations  (other  than  contingent  indemnification  obligations), (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 Assets” or (iv) if approved, authorized or ratified in writing in accordance  with Section 11.1;                  (c)    to release any Guarantor from its obligations under this Agreement and the other Loan  Documents if such Person ceases to be a Subsidiary or becomes an Excluded Subsidiary as a result of a transaction  permitted under the Loan Documents; provided, however, that no Guarantor shall be released from its obligations  under this Agreement and the other Loan Documents as a result of it becoming an Excluded Subsidiary of the type  described in clause (e) of the definition thereof following the sale, transfer or other distribution of any shares of Capital  Stock or other equity interests of such Guarantor (and which clause is the only basis on which such Guarantor would  constitute an Excluded Subsidiary) unless such sale, transfer or other disposition is made in good faith to a bona fide  unaffiliated third party and not for the primary purpose of obtaining a release of such Guarantor from its obligations  under this Agreement and the other Loan Documents; provided, further, that no such release shall occur if such Person  is to become or remain an obligor or a guarantor in respect of any Long-Term Indebtedness of the Borrower or any  Guarantor in excess of the Threshold Amount; and                  (d)    to subordinate any Lien on any property granted to or held by the Administrative Agent  under any Loan Document to the holder of any Lien on such property that is permitted by clause (7) of the definition  of “Permitted Liens.”          Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the  Administrative Agent’s authority to release or subordinate its interest in particular types or items of property, or to  release any Guarantor from its obligations under its Guaranty pursuant to this Section 9.10.  In each case as specified  in this Section 9.10, the Administrative Agent will, at the Borrower’s 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 its Guaranty, in each case in accordance  with the terms of the Loan Documents and this Section 9.10.          The  Administrative  Agent  shall  not  be  responsible  for  or  have  a  duty  to  ascertain  or  inquire  into  any  representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or  perfection of the Administrative Agent’s Lien thereon, or any certificate prepared by any Loan Party in connection  therewith, nor shall the Administrative Agent be responsible or liable to the Lenders for any failure to monitor or  maintain any portion of the Collateral.          9.11    Certain ERISA Matters.                  (a)    Each Lender (x) represents and warrants, as of the date such Person became a Lender party  hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases                                                  109 

 

being a Lender party hereto, for the benefit of the Administrative Agent and not, for the avoidance of doubt, to or for  the benefit of the 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 Term Loans, 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 Term Loans, 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 Term Loans,  the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of  the Term Loans, 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 Term Loans, the Commitments and this Agreement, or                          (iv)   such  other  representation,  warranty  and  covenant  as may be  agreed  in  writing  between the Administrative Agent, in its sole discretion, and such Lender.                  (b)    In addition, unless 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 Administrative Agent  and  not,  for  the  avoidance  of  doubt,  to  or  for  the  benefit  of  the  Borrower  or  any  other  Loan  Party,  that  the  Administrative 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 Term Loans, the Commitments and this Agreement  (including  in  connection  with  the  reservation  or  exercise  of  any  rights  by  the  Administrative  Agent  under  this  Agreement, any Loan Document or any documents related hereto or thereto).                                             ARTICLE X                                            GUARANTY          10.1    Guaranty of the Obligations.  Subject to the provisions of Section 10.2, the Guarantors jointly and  severally hereby irrevocably and unconditionally guaranty to the Administrative Agent for the benefit of the Secured  Parties the due and punctual payment in full of all Obligations of the Borrower, when the same shall become due,  whether  at  stated  maturity,  by  required  prepayment,  declaration,  acceleration,  demand  or  otherwise  (including  amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy  Code or any equivalent provision in any applicable jurisdiction) (collectively, the “Guaranteed Obligations”). Each  Guarantor, the Administrative Agent and each other Secured Party, hereby confirms that it is the intention of all such  Persons that this Guaranty and the Obligations of each Guarantor under this ARTICLE X not constitute a fraudulent  transfer or conveyance for purposes of the Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform  Fraudulent Transfer Act or any similar foreign, federal, state or provincial law to the extent applicable to this Guaranty  and  the  Obligations  of  each  Guarantor  hereunder.   Each  Guarantor  further  agrees  that  its  guarantee  hereunder  constitutes a guarantee of payment when due (whether at the stated maturity, by acceleration or otherwise) and not of                                                   110 

 

collection, and waives any right to require that any resort be had by Administrative Agent or any other Secured Party  to any security held for the payment of the Obligation.          10.2    Contribution by Guarantors.  All Guarantors desire to allocate among themselves (collectively, the  “Contributing Guarantors”), in a fair and equitable manner, their obligations arising under this Guaranty.  Accordingly,  in the event any payment or distribution is made on any date by a Guarantor (a “Funding Guarantor”) under this  Guaranty such that its Aggregate Payments exceeds its Fair Share as of such date, such Funding Guarantor shall be  entitled  to  a  contribution  from  each  of  the  other  Contributing  Guarantors  in  an  amount  sufficient  to  cause  each  Contributing Guarantor’s Aggregate Payments to equal its Fair Share as of such date.  “Fair Share” means, with respect  to a Contributing Guarantor as of any date of determination, an amount equal to (a) the ratio of (i) the Fair Share  Contribution Amount with respect to such Contributing Guarantor, to (ii) the aggregate of the Fair Share Contribution  Amounts with respect to all Contributing Guarantors, multiplied by (b) the aggregate amount paid or distributed on or  before such date by all Funding Guarantors under this Guaranty in respect of the obligations Guaranteed.  “Fair Share  Contribution Amount” means, with respect to a Contributing Guarantor as of any date of determination, the maximum  aggregate amount of the obligations of such Contributing Guarantor under this Guaranty that would not render its  obligations hereunder subject to avoidance as a fraudulent transfer or conveyance under Section 548 of Title 11 of the  United States Code or any comparable applicable provisions of state law; provided, solely for purposes of calculating  the “Fair Share Contribution Amount” with respect to any Contributing Guarantor for purposes of this Section 10.2,  any assets or liabilities of such Contributing Guarantor arising by virtue of any rights to subrogation, reimbursement  or  indemnification  or  any  rights  to  or  obligations  of  contribution  hereunder  shall  not  be  considered  as  assets  or  liabilities of such Contributing Guarantor.  “Aggregate Payments” means, with respect to a Contributing Guarantor as  of any date of determination, an amount equal to (1) the aggregate amount of all payments and distributions made on  or before such date by such Contributing Guarantor in respect of this Guaranty (including, without limitation, in  respect of this Section 10.2), minus (2) the aggregate amount of all payments received on or before such date by such  Contributing Guarantor from the other Contributing Guarantors as contributions under this Section 10.2. The amounts  payable as contributions hereunder shall be determined as of the date on which the related payment or distribution is  made by the applicable Funding Guarantor.  The allocation among Contributing Guarantors of their obligations as set  forth  in  this  Section  10.2  shall  not  be  construed  in  any  way  to  limit  the  liability  of  any  Contributing  Guarantor  hereunder.  Each Guarantor is a third-party beneficiary to the contribution agreement set forth in this Section 10.2.          10.3    Payment by Guarantors.                    (a)    Subject to Section 10.2, the Guarantors hereby jointly and severally agree, in furtherance  of the foregoing and not in limitation of any other right which any Secured Party may have at law or in equity against  any Guarantor by virtue hereof, that upon the failure of the Borrower to pay any of the Guaranteed Obligations when  and as the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration,  demand or otherwise (including amounts that would become due but for the operation of the automatic stay under  Section 362(a) of the Bankruptcy Code or any equivalent provision in any applicable jurisdiction), the Guarantors will  upon demand pay, or cause to be paid, in cash, to the Administrative Agent, for the benefit of the Secured Parties, an  amount equal to the sum of the unpaid principal amount of all Guaranteed Obligations then due as aforesaid, accrued  and unpaid interest on such Guaranteed Obligations (including interest which, but for the Borrower’s becoming the  subject of a case under the Bankruptcy Code or other similar legislation in any jurisdiction, would have accrued on  such Guaranteed Obligations, whether or not a claim is allowed against the Borrower for such interest in the related  bankruptcy case) and all other Guaranteed Obligations then owed to the Secured Parties as aforesaid.          10.4    Liability  of  Guarantors  Absolute.   Each  Guarantor  agrees  that  its  obligations  hereunder  are  irrevocable, absolute, independent and unconditional and shall not be affected by any circumstance which constitutes  a legal or equitable discharge of a guarantor or surety other than payment in full of the Guaranteed Obligations.  In  furtherance of the foregoing and without limiting the generality thereof, each Guarantor agrees as follows:                  (a)    this Guaranty is a guaranty of payment when due and not of collectability.  This Guaranty  is a primary obligation of each Guarantor and not merely a contract of surety;                  (b)    the Administrative Agent may enforce this Guaranty upon the occurrence of an Event of  Default notwithstanding the existence of any dispute between the Borrower and the Administrative Agent or any other  Secured Party with respect to the existence of such Event of Default;                                                  111 

 

               (c)    the  obligations  of  each  Guarantor  hereunder  are  independent  of  the  obligations  of  the  Borrower  and  the  obligations  of  any  other  guarantor  (including  any  other  Guarantor)  of  the  obligations  of  the  Borrower, and a separate action or actions may be brought and prosecuted against such Guarantor whether or not any  action is brought against the Borrower or any of such other guarantors and whether or not the Borrower is joined in  any such action or actions;                  (d)    payment by any Guarantor of a portion, but not all, of the Guaranteed Obligations shall in  no way limit, affect, modify or abridge any Guarantor’s liability for any portion of the Guaranteed Obligations which  has not been paid.  Without limiting the generality of the foregoing, if the Administrative Agent or any other Secured  Party is awarded a judgment in any suit brought to enforce any Guarantor’s covenant to pay a portion of the Guaranteed  Obligations, such judgment shall not be deemed to release such Guarantor from its covenant to pay the portion of the  Guaranteed Obligations that is not the subject of such suit, and such judgment shall not, except to the extent satisfied  by  such  Guarantor,  limit,  affect,  modify  or  abridge  any  other  Guarantor’s  liability  hereunder  in  respect  of  the  Guaranteed Obligations;                  (e)    the Administrative Agent and/or the other Secured Parties, upon such terms as they deem  appropriate, without notice or demand and without affecting the validity or enforceability hereof or giving rise to any  reduction, limitation, impairment, discharge or termination of any Guarantor’s liability hereunder, from time to time  may (i) renew, extend, accelerate, increase the rate of interest on, or otherwise change the time, place, manner or terms  of payment of the Guaranteed Obligations; (ii) settle, compromise, release or discharge, or accept or refuse any offer  of performance with respect to, or substitutions for, the Guaranteed Obligations or any agreement relating thereto  and/or subordinate the payment of the same to the payment of any other obligations; (iii) request and accept other  guaranties  of  the  Guaranteed  Obligations  and  take  and  hold  security  for  the  payment  hereof  or  the  Guaranteed  Obligations;  (iv) release,  surrender,  exchange,  substitute,  compromise,  settle,  rescind,  waive,  alter,  subordinate or  modify, with or without consideration, any security for payment of the Guaranteed Obligations, any other guaranties  of the Guaranteed Obligations, or any other obligation of any Person (including any other Guarantor) with respect to  the Guaranteed Obligations; (v) enforce and apply any security now or hereafter held by or for the benefit of the  Administrative Agent for the benefit of the Secured Parties in respect hereof or the Guaranteed Obligations and direct  the order or manner of sale thereof, or exercise any other right or remedy that the Administrative Agent may have  against any such security, in each case as the Administrative Agent in its discretion may determine consistent herewith  or any applicable security agreement (including the Security Agreement), including foreclosure on any such security  pursuant to one or more judicial or nonjudicial sales, whether or not every aspect of any such sale is commercially  reasonable, and even though such action operates to impair or extinguish any right of reimbursement or subrogation  or other right or remedy of any Guarantor against the Borrower or any security for the Guaranteed Obligations; and  (vi) exercise any other rights available to it under the Loan Documents; and                  (f)    this  Guaranty  and  the  obligations  of  the  Guarantors  hereunder  shall  be  valid  and  enforceable and shall not be subject to any reduction, limitation, impairment, discharge or termination for any reason  (other than payment in full of the Guaranteed Obligations), including the occurrence of any of the following, whether  or not any Guarantor shall have had notice or knowledge of any of them:  (i) any failure or omission to assert or  enforce or agreement or election not to assert or enforce, or the stay or enjoining, by order of court, by operation of  law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy (whether  arising under the Loan Documents, at law, in equity or otherwise) with respect to the Guaranteed Obligations or any  agreement relating thereto, or with respect to any other guaranty of or security for the payment of the Guaranteed  Obligations; (ii) any rescission, waiver, amendment or modification of, or any consent to departure from, any of the  terms or provisions (including provisions relating to events of default) hereof, any of the other Loan Documents or  any  agreement  or  instrument  executed  pursuant  thereto,  or  of  any  other  guaranty  or  security  for  the  Guaranteed  Obligations, in each case whether or not in accordance with the terms hereof or such Loan Document, or any agreement  relating to such other guaranty or security; (iii) the Guaranteed Obligations, or any agreement relating thereto, at any  time being found to be illegal, invalid or unenforceable in any respect; (iv) the application of payments received from  any source (other than payments received pursuant to the other Loan Documents or from the proceeds of any security  for the Guaranteed Obligations, except to the extent such security also serves as collateral for indebtedness other than  the Guaranteed Obligations) to the payment of indebtedness other than the Guaranteed Obligations, even though the  Administrative  Agent  or  the  Secured  Parties  might  have  elected  to  apply  such  payment  to  any  part  or  all  of  the  Guaranteed  Obligations;  (v) the  Administrative  Agent’s  or  the  Lenders’  consent  to  the  change,  reorganization  or  termination of the corporate structure or existence of the Borrower or any of its Subsidiaries and to any corresponding                                                  112 

 

restructuring of the Guaranteed Obligations; (vi) any failure to perfect or continue perfection of a security interest in  any collateral which secures any of the Guaranteed Obligations; (vii) any defenses, set-offs or counterclaims which  the Borrower may allege or assert against the Administrative Agent or any other Secured Party in respect of the  Guaranteed Obligations, including failure of consideration, breach of warranty, payment, statute of frauds, statute of  limitations, accord and satisfaction and usury; and (viii) any other act or thing or omission, or delay to do any other  act or thing, which may or might in any manner or to any extent vary the risk of any Guarantor as a Guarantor in  respect of the Guaranteed Obligations.          10.5    Waivers by Guarantors.  Each Guarantor hereby waives, for the benefit of the Administrative Agent  and each other Secured Party:  (a) any right to require the Administrative Agent or any other Secured Party, as a  condition of payment or performance by such Guarantor, to (i) proceed against the Borrower, any other guarantor  (including any other Guarantor) of the Guaranteed Obligations or any other Person, (ii) proceed against or exhaust  any security held from the Borrower, any such other guarantor or any other Person, (iii) proceed against or have resort  to any balance of any Deposit Account, Securities Account or Commodities Account (each as defined in the Security  Agreement) or credit on the books of the Administrative Agent or any other Secured Party in favor of the Borrower  or any other Person, or (iv) pursue any other remedy in the power of the Administrative Agent or any other Secured  Party whatsoever; (b) any defense arising by reason of the incapacity, lack of authority or any disability or other  defense of the Borrower or any other Guarantor including any defense based on or arising out of the lack of validity  or the unenforceability of the Guaranteed Obligations or any agreement or instrument relating thereto or by reason of  the cessation of the liability of the Borrower or any other Guarantor from any cause other than payment in full of the  Guaranteed Obligations; (c) any defense based upon any statute or rule of law which provides that the obligation of a  surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (d) any  defense based upon the Administrative Agent’s or any other Secured Party’s errors or omissions in the administration  of the Guaranteed Obligations, except behavior which amounts to bad faith; (e) (i) any principles or provisions of law,  statutory or otherwise, which are or might be in conflict with the terms hereof and any legal or equitable discharge of  such Guarantor’s obligations hereunder, (ii) the benefit of any statute of limitations affecting such Guarantor’s liability  hereunder or the enforcement hereof, (iii) any rights to set-offs, recoupments and counterclaims, and (iv) promptness,  diligence and any requirement that the Administrative Agent or any other Secured Party protect, secure, perfect or  insure any security interest or lien or any property subject thereto; (f) notices, demands, presentments, protests, notices  of protest, notices of dishonor and notices of any action or inaction, including acceptance hereof, notices of default  hereunder or any agreement or instrument related thereto, notices of any renewal, extension or modification of the  Guaranteed Obligations or any agreement related thereto, notices of any extension of credit to Borrowers and notices  of any of the matters referred to in Section 10.4 and any right to consent to any thereof; and (g) any defenses or benefits  that may be derived from or afforded by law which limit the liability of or exonerate guarantors or sureties, or which  may conflict with the terms hereof other than Full Payment of the Obligations.          10.6    Guarantors’ Rights of Subrogation, Contribution, etc.  Until the Guaranteed Obligations shall have  been indefeasibly paid in full and all Commitments shall have terminated, each Guarantor hereby waives any claim,  right or remedy, direct or indirect, that such Guarantor now has or may hereafter have against the Borrower or any  other Guarantor or any of its assets in connection with this Guaranty or the performance by such Guarantor of its  obligations hereunder, in each case whether such claim, right or remedy arises in equity, under contract, by statute,  under  common  law  or  otherwise  and  including  without  limitation  (a) any  right of  subrogation,  reimbursement  or  indemnification  that  such  Guarantor  now  has  or  may  hereafter  have  against  the  Borrower  with  respect  to  the  Guaranteed Obligations, (b) any right to enforce, or to participate in, any claim, right or remedy that the Administrative  Agent or any other Secured Party now has or may hereafter have against the Borrower, and (c) any benefit of, and any  right to participate in, any collateral or security now or hereafter held by the Administrative Agent or any other Secured  Party.  In addition, until the Guaranteed Obligations shall have been indefeasibly paid in full and all Commitments  shall have terminated, each Guarantor shall withhold exercise of any right of contribution such Guarantor may have  against  any  other  guarantor  (including  any  other  Guarantor)  of  the  Guaranteed  Obligations,  including,  without  limitation, any such right of contribution as contemplated by 10.2.  Each Guarantor further agrees that, to the extent  the waiver or agreement to withhold the exercise of its rights of subrogation, reimbursement, indemnification and  contribution as set forth herein is found by a court of competent jurisdiction to be void or voidable for any reason, any  rights of subrogation, reimbursement or indemnification such Guarantor may have against the Borrower or against  any collateral or security, and any rights of contribution such Guarantor may have against any such other guarantor,  shall be junior and subordinate to any rights the Administrative Agent or any other Secured Party may have against  the Borrower, to all right, title and interest the Secured Parties may have in any such collateral or security, and to any                                                  113 

 

right the Administrative Agent or any other Secured Party may have against such other guarantor.  If any amount shall  be paid to any Guarantor on account of any such subrogation, reimbursement, indemnification or contribution rights  at any time when all Guaranteed Obligations shall not have been finally and indefeasibly paid in full, such amount  shall be held in trust for the Administrative Agent and the other Secured Parties and shall forthwith be paid over to  the  Administrative  Agent  to  be  credited  and  applied  against  the  Guaranteed  Obligations,  whether  matured  or  unmatured, in accordance with the terms hereof.          10.7    Subordination of Other Obligations.  Any indebtedness of the Borrower or any Guarantor now or  hereafter  held  by  any  Guarantor  (the  “Obligee  Guarantor”)  is  hereby  subordinated  in  right  of  payment  to  the  Guaranteed Obligations, and any such indebtedness collected or received by the Obligee Guarantor after an Event of  Default has occurred and is continuing shall be held in trust for the Administrative Agent and the other Secured Parties  and  shall  forthwith  be  paid  over  to  the  Administrative  Agent  to  be  credited  and  applied  against  the  Guaranteed  Obligations but without affecting, impairing or limiting in any manner the liability of the Obligee Guarantor under  any other provision hereof.          10.8    Continuing Guaranty.  This Guaranty is a continuing guaranty and shall remain in effect until all of  the Guaranteed Obligations shall have been indefeasibly paid in full and all Commitments shall have terminated.  Each  Guarantor hereby irrevocably waives any right to revoke this Guaranty as to future transactions giving rise to any  Guaranteed Obligations.          10.9    Authority of Guarantors or Borrowers.  It is not necessary for the Administrative Agent or any other  Secured Party to inquire into the capacity or powers of any Guarantor or the Borrower or any officers, directors or any  agents acting or purporting to act on behalf of any of them.          10.10   Financial Condition of the Borrower.  Any Term Loan may be made to the Borrower or continued  from time to time, without notice to or authorization from any Guarantor regardless of the financial or other condition  of the Borrower at the time of any such grant or continuation.  Neither the Administrative Agent nor any other Secured  Party  shall  have  any  obligation  to  disclose  or  discuss  with  any  Guarantor  its  assessment,  or  any  Guarantor’s  assessment, of the financial condition of the Borrower.  Each Guarantor has adequate means to obtain information  from the Borrower on a continuing basis concerning the financial condition of the Borrower and its ability to perform  its  obligations  under  the  Loan  Documents,  and  each  Guarantor  assumes  the  responsibility  for being  and  keeping  informed of the financial condition of the Borrower and of all circumstances bearing upon the risk of nonpayment of  the  Guaranteed  Obligations.   Each  Guarantor  hereby  waives  and  relinquishes  any  duty  on  the  part  of  the  Administrative  Agent  or  any  other  Secured  Party  to  disclose  any  matter,  fact  or  thing  relating  to  the  business,  operations or conditions of the Borrower now known or hereafter known by the Administrative Agent or any other  Secured Party.          10.11   Bankruptcy, etc.  (a) So long as any Guaranteed Obligations remain outstanding, no Guarantor shall,  without the prior written consent of the Administrative Agent, commence or join with any other Person in commencing  any bankruptcy, reorganization or insolvency case or proceeding of or against the Borrower or any other Guarantor.                   (b)    The  obligations  of  the  Guarantors  hereunder  shall  not  be  reduced,  limited,  impaired,  discharged, deferred, suspended or terminated by any case or proceeding, voluntary or involuntary, involving the  bankruptcy,  insolvency,  receivership,  reorganization,  liquidation  or  arrangement  of  the  Borrower  or  any  other  Guarantor or by any defense which the Borrower or any other Guarantor may have by reason of the order, decree or  decision of any court or administrative body resulting from any such proceeding.                   (c)    Each  Guarantor  acknowledges  and  agrees  that  any  interest  on  any  portion  of  the  Guaranteed  Obligations  which  accrues  after  the  commencement  of  any  case or proceeding  referred  to  in  Section  10.11(b) above (or, if interest on any portion of the Guaranteed Obligations ceases to accrue by operation of law by  reason of the commencement of such case or proceeding, such interest as would have accrued on such portion of the  Guaranteed Obligations if such case or proceeding had not been commenced) shall be included in the Guaranteed  Obligations because it is the intention of the Guarantors and the Secured Parties that the Guaranteed Obligations which  are guaranteed by the Guarantors pursuant hereto should be determined without regard to any rule of law or order  which may relieve the Borrower of any portion of such Guaranteed Obligations.  The Guarantors will permit any  trustee in bankruptcy, receiver, debtor in possession, assignee for the benefit of creditors or similar person to pay the                                                  114 

 

Administrative Agent and the other Secured Parties, or allow the claim of the Administrative Agent and the other  Secured Parties in respect of, any such interest accruing after the date on which such case or proceeding is commenced.                  (d)    In the event that all or any portion of the Guaranteed Obligations are paid by the Borrower,  the obligations of the Guarantors hereunder shall continue and remain in full force and effect or be reinstated, as the  case may be, in the event that all or any part of such payment(s) are rescinded or recovered directly or indirectly from  the Administrative Agent or any other Secured Party as a preference, fraudulent transfer or otherwise, and any such  payments which are so rescinded or recovered shall constitute Guaranteed Obligations for all purposes hereunder.                                             ARTICLE XI                                         MISCELLANEOUS          11.1    Amendments, Etc.  Subject to Section 3.3(c), Section 2.12, 2.13, 2.14 and the last paragraph of this  Section 11.1, no amendment or waiver of any provision of this Agreement or any other Loan Document, and no  consent to any departure by the Borrower or any other Loan Party therefrom, shall be effective unless in writing signed  by the Required Lenders and the Borrower or the applicable Loan Party, as the case may be, and acknowledged by  the Administrative Agent, and such waiver or consent shall be effective only in the specific instance and for the  specific purpose for which given; provided, however, that no such amendment, waiver or consent shall:                  (a)    extend  or  increase  the  Commitment  of  any  Lender  (or  reinstate  any  Commitment  terminated pursuant to Section 8.2) without the written consent of such Lender (it being understood that a waiver of  any Default, Event of Default or mandatory prepayment hereunder will not constitute an extension or increase of any  Commitment);                  (b)    postpone any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under such other Loan  Document without the written consent of each Lender entitled to such payment (it being understood that a waiver of  any Default, Event of Default or mandatory prepayment hereunder will not constitute such a postponement);                  (c)    reduce the principal of, or the rate of interest specified herein on, any Term Loan, or any  fees or other amounts payable hereunder or under any other Loan Document without the written consent of each  Lender entitled to such amount (it being understood that a waiver of any Default, Event of Default or mandatory  prepayment hereunder will not constitute such a reduction in principal); provided, however, that only the consent of  the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any obligation of the  Borrower to pay interest at the Default Rate;                  (d)    change (i) Section 8.3 or (ii) except as provided in Section 2.12, 2.13 and 2.14, change  Section 2.3(b)(v) in a manner that would alter the pro rata sharing of payments required thereby without the written  consent of each Lender directly and adversely affected thereby;                  (e)    change (i) any provision of this Section 11.1 or the definition of “Required Lenders” or  “Required Class Lenders” or any other provision hereof specifying the number or percentage of Lenders required to  amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder  without the written consent of each Lender;                  (f)    release all or substantially all of the value of the Collateral in any transaction or series of  related transactions, without the written consent of each Lender;                  (g)    release all or substantially all of the Guaranties of the Guarantors pursuant to Article X,  without the written consent of each Lender, except to the extent the release of any Subsidiary from its Guaranty is  permitted pursuant to Section 9.10 (in which case such release may be made by the Administrative Agent acting  alone); or                                                   115 

 

               (h)    directly, materially and adversely affect the rights of Lenders holding Commitments or  Term Loans of one Class differently from the rights of Lenders holding Commitments or Term Loans of any other  Class without the written consent of the applicable Required Class Lenders;   and  provided,  further,  that  (i)  no  amendment,  waiver  or  consent  shall,  unless  in  writing  and  signed  by  the  Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent  under this Agreement or any other Loan Document and (ii) the Fee Letters may be amended, or rights or privileges  thereunder waived, in a writing executed only by the parties thereto.  Notwithstanding anything to the contrary herein,  no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and  any amendment, waiver or consent which by its terms requires the consent of all Lenders or each affected Lender may  be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x) the Commitment  of any Defaulting Lender may not be increased or extended and the maturity date of any of its Term Loans may not  be extended, the rate of interest on any of its Term Loans may not be reduced and the principal amount of any of its  Term Loans may not be forgiven, in each case without the consent of such Defaulting Lender and (y) any waiver,  amendment, consent or modification requiring the consent of all Lenders or each affected Lender that by its terms  affects any Defaulting Lender more adversely relative to other affected Lenders shall require the consent of such  Defaulting Lender.                  Notwithstanding  any  provision  herein  to  the  contrary,  this  Agreement  and  the  other  Loan  Documents may be amended (i) to cure any ambiguity, mistake, omission, defect or inconsistency, (ii) in accordance  with Section 2.12 to incorporate the terms of any Incremental Term Loans and to provide for non-pro rata borrowings  and payments of any amounts hereunder as between the Term Loans or other loans and any Commitments or other  commitments in connection therewith, (iii) in accordance with Section 2.13 to effectuate an Extension Amendment  and to provide for non-pro rata borrowings and payments of any amounts hereunder as between the Term Loans and  any  Commitments  in  connection  therewith,  (iv) in  accordance  with  Section 2.14  to  incorporate  the  terms  of  any  Refinancing Term Commitments and to provide for non-pro rata borrowings and payments of any amounts hereunder  as between the Term Loans or other loans and any Commitments or other commitments in connection therewith, (v) in  accordance with Section 1.3(b) in connection with a change in GAAP or the application thereof or (vi) in accordance  with Section 7.11, in each case, with the consent of the Administrative Agent but without the consent of any Lender  (except as expressly provided in Section 2.12, 2.13 or 2.14, as applicable).          11.2    Notices; Effectiveness; Electronic Communications.                  (a)    Notices  Generally.   Except  in  the  case  of  notices  and  other  communications  expressly  permitted to be given by telephone (and except as provided in clause (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  facsimile  or  electronic  mail  as  follows,  and  all  notices  and  other  communications  expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:                         (i)    if to the Borrower or the Administrative Agent, to the address, facsimile number,  electronic mail address or telephone number specified for such Person on Schedule 11.2; and                         (ii)   if to any other Lender, to the address, facsimile 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 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 facsimile shall be  deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall  be deemed to have been given at the opening of business on the next Business Day for the recipient).  Notices and  other communications delivered through electronic communications to the extent provided in sub clause (b) below  shall be effective as provided in such clause (b).                  (b)    Electronic Communications.  Notices and other communications to the Lenders hereunder  may  be  delivered  or  furnished  by  electronic  communication  (including  e-mail,  FpML messaging,  and  Internet  or                                                  116 

 

intranet websites) pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not  apply to notices to any Lender pursuant to Article II if such Lender has notified the Administrative Agent that it is  incapable of receiving notices under such Article II by electronic communication.  The Administrative Agent or the  Borrower may each, in its discretion, agree to accept notices and other communications to it hereunder by electronic  communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to  particular notices or communications.          Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e- mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient  (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), and  (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed  receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such  notice or communication is available and identifying the website address therefor; provided that, for both clauses (i)  and (ii), if such notice, email or other communication is not sent during the normal business hours of the recipient,  such notice, email or communication shall be deemed to have been sent at the opening of business on the next business  day for the recipient.                  (c)    The Platform.  THE PLATFORM IS  PROVIDED “AS IS” AND “AS AVAILABLE.”   THE ADMINISTRATIVE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY  OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND  EXPRESSLY  DISCLAIM  LIABILITY  FOR  ERRORS  IN  OR  OMISSIONS  FROM  THE  BORROWER  MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY  WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT  OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY  AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.  In no event  shall the Administrative Agent or any of its Related Parties (collectively, the “Administrative Agent Parties”) have  any liability to the Borrower, any Lender or any other Person for losses, claims, damages, liabilities or expenses of  any kind (whether in tort, contract or otherwise) arising out of the Borrower’s, any Loan Party’s or the Administrative  Agent’s  transmission  of  Borrower  Materials  or  notices  through  the  Platform,  any  other  electronic  platform  or  electronic messaging service, or through the Internet.                  (d)    Change of Address, Etc.  Each of the Borrower and the Administrative Agent may change  its address, facsimile or telephone number for notices and other communications hereunder by notice to the other  parties  hereto.   Each  other  Lender  may  change  its  address,  facsimile  or  telephone  number  for  notices  and  other  communications hereunder by notice to the Borrower and the Administrative Agent.  In addition, each Lender agrees  to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an  effective address, contact name, telephone number, facsimile 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  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 Borrower or its securities for purposes of United States Federal or state securities  laws.                  (e)    Reliance by Administrative Agent and Lenders. The Administrative Agent and the Lenders  shall  be  entitled  to  rely  and  act  upon  any  notices  (including  telephonic  notices  and  Committed  Loan  Notices)  purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein,  were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms  thereof, as understood by the recipient, varied from any confirmation thereof.  The Loan Parties shall indemnify the  Administrative Agent and each Lender and the Related Parties of each of them from all losses, costs, expenses and  liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower.            11.3    No Waiver; Cumulative Remedies; Enforcement.  No failure by any Lender or the Administrative  Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder or                                                  117 

 

under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right,  remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right,  remedy, power or privilege.  The rights, remedies, powers and privileges herein provided, and provided under each  other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by  law.          Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to  enforce rights and remedies hereunder and under the other Loan Documents against the Loan Parties or any of them  shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be  instituted and maintained exclusively by, the Administrative Agent in accordance with Section 8.2 for the benefit of  all the Lenders; provided, however, that the foregoing shall not prohibit (a) the Administrative Agent from exercising  on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative Agent)  hereunder and under the other Loan Documents, (b) any Lender from exercising setoff rights in accordance with  Section 11.8 (subject to the terms of Section 2.11), or (c) any Lender from filing proofs of claim or appearing and  filing pleadings on its own behalf during the pendency of a proceeding relative to any Loan Party under any Debtor  Relief Law; and provided, further, that if at any time there is no Person acting as Administrative Agent hereunder and  under  the  other  Loan  Documents,  then  (i)  the  Required  Lenders  shall  have  the  rights  otherwise  ascribed  to  the  Administrative Agent pursuant to Section 8.2 and (ii) in addition to the matters set forth in clauses (b) and (c) of the  preceding proviso and subject to Section 2.11, any Lender may, with the consent of the Required Lenders, enforce  any rights and remedies available to it and as authorized by the Required Lenders.          11.4    Expenses; Indemnity; Damage Waiver.                  (a)    Costs  and  Expenses.   The  Borrower  agrees  to pay  to  the Administrative  Agent,  for  its  benefit, on demand, all reasonable and documented out-of-pocket costs and expenses that the Administrative Agent  pays  or  incurs  in  connection  with  the  negotiation,  preparation,  syndication,  consummation,  administration,  enforcement and termination of this Agreement or any of the other Loan Documents, including: (a) Attorney Costs;  (b) reasonable and documented, out-of-pocket costs and expenses for any amendment, supplement, waiver, consent  or  subsequent  closing  in  connection  with  the  Loan  Documents  and  the  transactions  contemplated  thereby;  (c) reasonable and documented, out-of-pocket costs and expenses of lien searches; (d)  documented, out-of-pocket  Taxes,  and  reasonable  and  documented,  out-of-pocket  fees  and  other  charges  for  filing  financing  statements  and  continuations  and  other  actions  to  perfect,  protect  and  continue  the  Administrative  Agent’s  Liens  (including  reasonable costs and expenses paid or incurred by the Administrative Agent in connection with the consummation of  this Agreement); and (e) reasonable sums paid or incurred to pay any amount or take any action required of the Loan  Parties under the Loan Documents that the Loan Parties fail to pay or take.  In addition, the Borrower agrees to pay,  during or after the existence of an Event of Default, (i) on demand to the Administrative Agent, for its benefit, all  costs  and  expenses  incurred  by  the  Administrative  Agent  (including  Attorney  Costs),  and  (ii) to  the  Lenders,  on  demand, all reasonable and actual fees, expenses and disbursements incurred by the applicable Lenders for one law  firm retained by such Lenders (and, in the event of any conflict of interest among (x) any applicable Lenders, on the  one hand, and (y) the Administrative Agent or the other Lenders, on the other hand, one additional law firm for the  Lenders subject to such conflict), in each case, paid or incurred to obtain payment of the Obligations, enforce the  Administrative  Agent’s  Liens,  sell  or  otherwise  realize  upon  the  applicable  Collateral, and  otherwise  enforce  the  provisions of the Loan Documents, or to defend any claims made or threatened against the Administrative Agent or  any  Lender  arising  out  of  the  transactions  contemplated  hereby  (including  preparations  for  and  consultations  concerning  any  such  matters).   The  foregoing  shall  not  be  construed  to  limit  any  other  provisions  of  the  Loan  Documents regarding costs and expenses to be paid by the Borrower and other Loan Parties.                  (b)    Indemnification by the Borrower.  The Loan Parties shall indemnify the Administrative  Agent (and any sub-agent thereof), the Arranger, each Lender and each Related Party of any of the foregoing Persons  (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses,  claims,  damages,  liabilities  and  related  expenses  (including  Attorney  Costs  of  the  Administrative  Agent  and  reasonable legal costs and expenses of the Lenders of one law firm retained by such Lenders (and, in the event of any  conflict of interest among (x) any applicable Lenders, on the one hand, and (y) the Administrative Agent or the other  Lenders, on  the  other  hand, one  additional  law firm  in  each  relevant  jurisdiction  for  the  Lenders  subject  to  such  conflict)) incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the 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,                                                  118 

 

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,  the  consummation  of  the  transactions  contemplated hereby or thereby, or, in the case of the Administrative Agent (and any sub agent thereof) and its Related  Parties only, the administration of this Agreement and the other Loan Documents (including in respect of any matters  addressed in Section 3.1), (ii) any Term Loan or the use or proposed use of the proceeds therefrom, (iii) any actual or  alleged presence or release of Hazardous Materials on or from any property owned or operated by the Borrower or  any of its Subsidiaries, or any Environmental Liability related in any way to the 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 Borrower or any other Loan  Party,  and  regardless  of  whether  any  Indemnitee  is  a  party  thereto,  IN  ALL  CASES,  WHETHER  OR  NOT  CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY  OR SOLE NEGLIGENCE OF THE INDEMNITEE; 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 determined by a court  of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence, willful  misconduct or bad faith of such Indemnitee, (y) result from a claim brought by the Borrower or any other Loan Party  against an Indemnitee for a material breach of such Indemnitee’s obligations hereunder or under any other Loan  Document, if the Borrower or such Loan Party has obtained a final and nonappealable judgment in its favor on such  claim as determined by a court of competent jurisdiction or (z) result from a claim not involving an act or omission of  the Borrower and that is brought by an Indemnitee against another Indemnitee (other than against the Arranger or the  Administrative Agent in their capacities as such).  Without limiting the provisions of Section 3.1(c), this Section  11.4(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising  from any non-Tax claim.                  (c)    Reimbursement  by  Lenders.   To  the  extent  that  the  Borrower  for  any  reason  fails  to  indefeasibly pay any amount required under clauses (a) or (b) of this Section 11.4 to be paid by it to the Administrative  Agent  (or  any  sub-agent  thereof)  or  any  Related  Party  thereof,  each  Lender  severally  agrees  to  pay  to  the  Administrative Agent (or any such sub-agent) or such Related Party, as the case may be, such Lender’s pro rata share  (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based on each  Lender’s Applicable Percentage at such time) of such unpaid amount (including any such unpaid amount in respect  of  a  claim  asserted  by  such  Lender),  such  payment  to  be  made  severally  among  them  based  on  such  Lenders’  Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is  sought); provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as  the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) in its capacity  as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub- agent)  in  connection  with  such  capacity.   The obligations  of  the  Lenders  under  this  clause  (c)  are  subject  to  the  provisions of Section 2.10(d).                  (d)    Waiver of Consequential Damages, Etc.  To the fullest extent permitted by Applicable  Law, the Borrower shall not assert, and hereby waives, and acknowledges that no other Person shall have, any claim  against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed  to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan  Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any  Term Loan or the use of the proceeds thereof.  No Indemnitee referred to in clause (b) above shall be liable for any  damages  arising  from  the  use  by  unintended  recipients  of  any  information  or  other  materials  distributed  to  such  unintended recipients by such Indemnitee through telecommunications, electronic or other information transmission  systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or  thereby.                  (e)    Payments.  All amounts due under this Section 11.4 shall be payable not later than ten (10)  Business Days after demand therefor.                  (f)    Survival.  The agreements in this Section 11.4 and the indemnity provisions of Section  11.2(e) shall survive the resignation of the Administrative Agent, the replacement of any Lender, the termination of  all Commitments hereunder and the repayment, satisfaction or discharge of all the other Obligations.                                                   119 

 

       11.5    Payments Set Aside.  To the extent that any payment by or on behalf of the Borrower is made to the  Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its right of setoff, and such  payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or  preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or  such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding  under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof  originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not  been made or such setoff had not occurred, and (b) each Lender severally agrees to pay to the Administrative Agent  upon  demand  its  applicable  share  (without  duplication)  of  any  amount  so  recovered  from  or  repaid  by  the  Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate  per annum equal to the Federal Funds Rate from time to time in effect.  The obligations of the Lenders under clause  (b) of the preceding sentence shall survive the Full Payment of the Obligations and the termination of this Agreement.          11.6    Successors and Assigns.                    (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  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 Administrative 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 11.6(b) and in the case of any assignee that is the Borrower, Section 11.6(f), (ii) by way of  participation in accordance with the provisions of Section 11.6(d), or (iii) by way of pledge or assignment of a security  interest subject to the restrictions of Section 11.6(e) (and, except as expressly set forth in Section 11.6(g), 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  clause  (d) of  this  Section 11.6  and,  to  the  extent  expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or  equitable right, remedy or claim under or by reason of this Agreement.                  (b)    Assignments by Lenders.  Any Lender may at any time 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 Term Loans 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  and/or  the  Term  Loans  at  the  time  owing  to  it  or  contemporaneous                 assignments to related Approved Funds (determined after giving effect to such assignments) that                 equal at least the amount specified in clause (b)(i)(B) of this Section 11.6 in the aggregate or in the                 case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum                 amount need be assigned; and                          (B)    in any case not described in clause (b)(i)(A) of this Section 11.6, the aggregate                 amount of the Commitment or, if the applicable Commitment is not then in effect, the principal                 outstanding balance of the Term Loans of the assigning Lender subject to each such assignment,                 determined  as  of  the  date  the  Assignment  and  Assumption  with  respect  to  such  assignment  is                 delivered to the Administrative Agent or, if a “Trade Date” is specified in the Assignment and                 Assumption, as of the Trade Date, shall not be less than $1,000,000.                         (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  Term Loans or the Commitment assigned;                         (iii)  Required Consents.  No consent shall be required for any assignment except to  the extent required by clause (b)(i)(B) of this Section 11.6 and, in addition:                                                   120 

 

                       (A)    the  consent  of  the  Borrower  (such  consent  not  to  be  unreasonably  withheld,                 conditioned  or  delayed)  shall  be  required  unless  (1)  a  Specified  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 Borrower shall be deemed to have consented to                 any such assignment unless it shall object thereto by written notice to the Administrative Agent                 within five (5) Business Days after having received notice thereof; and provided, further, that the                 Borrower’s  consent  shall  not  be  required  during  the  primary  syndication  of  the  credit  facility                 provided herein; and                          (B)    the consent of the Administrative Agent (such consent not to be unreasonably                 withheld, conditioned or delayed) shall be required for assignments in respect of (i) any unfunded                 Commitment if such assignment is to a Person that is not a Lender with a Commitment hereunder,                 an Affiliate of such Lender or an Approved Fund with respect to such Lender or (ii) any Term Loan                 to a Person that is not a Lender, an Affiliate of a Lender or an Approved Fund.                         (iv)   Assignment and Assumption.  The assignor or assignee party to each assignment  shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and  recordation fee in the amount of $3,500; provided, however, that the Administrative Agent may, in its sole discretion,  elect to waive such processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender,  shall deliver to the Administrative Agent an Administrative Questionnaire.                         (v)    No Assignment to Certain Persons.  No such assignment shall be made (A) to the  Borrower except in accordance with Section 11.6(f), (B) to any Defaulting Lender or any of its Subsidiaries, or any  Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this  clause (B), or (C) to a natural Person (or a holding company, investment vehicle or trust for, or owned and operated  by or for the primary benefit of one or more natural Persons).                         (vi)   Certain Additional Payments.  In connection with any assignment of rights and  obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to  the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the  Administrative  Agent  in  an  aggregate  amount  sufficient,  upon  distribution  thereof  as  appropriate  (which  may  be  outright payment, purchases by the assignee of participations or, or other compensating actions, including funding,  with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Term Loans previously  requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby  irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the  Administrative Agent or any Lender hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate)  its full pro rata share of all Term Loans in accordance with its Applicable Percentage. Notwithstanding the foregoing,  in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective  under Applicable Law without compliance with the provisions of this clause (vi), then the assignee of such interest  shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.                         (vii)  Subject to acceptance and recording thereof by the Administrative Agent pursuant  to clause (c) of this Section 11.6, from and after the effective date specified in each Assignment and Assumption, the  assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment  and  Assumption,  have  the  rights  and  obligations  of  a  Lender  under  this  Agreement,  and  the  assigning  Lender  thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its  obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning  Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue  to be entitled to the benefits of Sections 3.1, 3.4, 3.5 and 11.4 with respect to facts and circumstances occurring prior  to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected  parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder  arising from that Lender’s having been a Defaulting Lender. Upon request, the Borrower (at its expense) shall execute  and deliver a Note to the assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this  Agreement that does not comply with this clause (b) 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 clause (d) of this Section 11.6.                                                   121 

 

               (c)    Register.   The  Administrative  Agent,  acting  solely  for  this  purpose  as  an  agent  of  the  Borrower (and such agency being solely for Tax purposes), shall maintain at the Administrative Agent’s Office a copy  of each Assignment and Assumption delivered to it (or the equivalent thereof in electronic form) and a register for the  recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated  interest) of the Term Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).   The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and  the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender  hereunder for all purposes of this Agreement.  The Register shall be available for inspection by the 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  Borrower or the Administrative Agent, sell participations to any Person (other than a natural Person, or a holding  company, investment vehicle or trust for, or owned and operated for the primary benefit of one or more natural Persons,  a Defaulting Lender or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all  or  a  portion  of  such  Lender’s  rights  and/or  obligations  under  this  Agreement  (including  all  or  a  portion  of  its  Commitment and/or the Term Loans 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 Borrower, the Administrative Agent and the Lenders shall continue to deal solely and  directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  For the  avoidance of doubt, each Lender shall be responsible for the indemnity under Section 11.4(c) without regard to the  existence of any participation.          Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such  Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver  of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will  not, without the consent of the Participant, agree to any amendment, waiver or other modification described in the  first proviso to Section 11.1 that affects such Participant.  The Borrower agrees that each Participant shall be entitled  to the benefits of Sections 3.1, 3.4 and 3.5 to the same extent as if it were a Lender and had acquired its interest by  assignment pursuant to clause (b) of this Section 11.6 (it being understood that the documentation required under  Section 3.1(e) shall be delivered to the Lender who sells the participation) to the same extent as if it were a Lender  and had acquired its interest by assignment pursuant to clause (b) of this Section 11.6; provided that such Participant  (A) agrees to be subject to the provisions of Sections 3.6 and 11.13 as if it were an assignee under clause (b) of this  Section 11.6 and (B) shall not be entitled to receive any greater payment under Sections 3.1 or 3.4, with respect to any  participation, than the Lender from whom it acquired the applicable participation would have been entitled to receive,  except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the  Participant  acquired  the  applicable  participation.  Each  Lender  that  sells  a  participation  agrees,  at  the  Borrower’s  request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section  3.6 with respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits  of Section 11.8 as though it were a Lender; provided that such Participant agrees to be subject to Section 2.11 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 Borrower, maintain a register on which it enters the name and address of each Participant and the principal  amounts (and stated interest) of each Participant’s interest in the Term Loans or other obligations under the Loan  Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion  of the Participant Register (including the identity of any Participant or any information relating to a Participant’s  interest in any commitments, loans 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 or other obligation is in registered  form under Section 5f.103-1(c) 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 Administrative Agent (in its capacity as Administrative Agent) shall have  no responsibility for maintaining a Participant Register.                  (e)    Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or  any portion of its rights under this Agreement (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                                                   122 

 

assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee  for such Lender as a party hereto.                  (f)    Assignments to the Borrower.  Notwithstanding anything to the contrary contained in this  Section 11.6 or any other provision of this Agreement, so long as no Default or Event of Default has occurred and is  continuing or would result therefrom, each Lender shall have the right at any time to sell, assign or transfer all or a  portion of its Commitment or Term Loans owing to it to the Borrower on a non-pro rata basis through (i) one or more  modified Dutch auctions open to all Lenders in accordance with the procedures set forth below or (ii) open market  purchases on a non-pro rata basis, in each case subject to the following limitations:                         (i)    In the case of any Dutch auction, (A) notice of the Auction shall be made to all  Lenders and (B) the Auction shall be conducted pursuant to such procedures as the Auction Manager may establish  which are consistent with this Section 11.6(f) and the Auction Procedures set forth on Exhibit L and are otherwise  reasonably acceptable to the Borrower, the Auction Manager and the Administrative Agent;                         (ii)   With respect to all repurchases made by the Borrower pursuant to this Section  11.6(f), (A) the Borrower shall deliver to the Administrative Agent a certificate of a Responsible Officer stating that  (1) no Default or Event of Default has occurred and is continuing or would result from such repurchase and (2) as of  (x) the launch date of (I) the applicable Auction or (II) the open market purchases, as the case may be, and (y) the  effective  date  of  any  corresponding  Affiliate  Assignment  Agreement,  it  is  not  in  possession  of  any  information  regarding  the  Borrower,  its  Subsidiaries  or  its  Affiliates,  or  their  assets,  the  Borrower’s  ability  to  perform  its  obligations hereunder or any other matter that may be material to a decision by any Lender to participate in any such  Auction  or  open  market  purchase  or  enter  into  any  Affiliate  Assignment  Agreement  or  any  of  the  transactions  contemplated thereby that has not previously been disclosed to the Administrative Agent, the Auction Manager (in  connection with an Auction, if applicable) and the Lenders, (B) all such repurchases by the Borrower shall be made  at a discount to the par principal amount of the Term Loans assigned, (C) the Borrower shall not use the proceeds of  any loans under the ABL Agreement or any other revolving credit loan to acquire any such Term Loans and (D) the  assigning Lender and the Borrower shall execute and deliver to the Administrative Agent and, in connection with any  Auction, the Auction Manager, if applicable, an Affiliate Assignment Agreement; and                         (iii)  Following any repurchase by the Borrower pursuant to this Section 11.6(f), the  Term Loans so repurchased shall, without further action by any Person, be deemed cancelled for all purposes and no  longer  outstanding  (and  may  not  be  resold  by  Borrower),  for  all  purposes  of  this  Agreement  and  all  other  Loan  Documents, including, but not limited to (A) the making of, or the application of, any payments to the Lenders under  this Agreement or any other Loan Document, (B) the making of any request, demand, authorization, direction, notice,  consent or waiver under this Agreement or any other Loan Document or (C) the determination of Required Lenders,  or for any similar or related purpose, under this Agreement or any other Loan Document, and such cancellation shall  reduce the remaining installments of principal required by Section 2.5 in inverse order of maturity.  In connection with  any Term Loans repurchased and cancelled pursuant to this Section 11.6(f), the Administrative Agent is authorized to  make appropriate entries in the Register to reflect any such cancellation.                  (g)    Disqualified Institutions.                           (i)    No assignment shall be made to any Person that was a Disqualified Institution as  of the date (the “Trade Date”) on which the applicable Lender entered into a binding agreement to sell and assign all  or a portion of its rights and obligations under this Agreement to such Person (unless the Borrower has consented to  such assignment as otherwise contemplated by this Section 11.6, in which case such Person will not be considered a  Disqualified Institution for the purpose of such assignment).  For the avoidance of doubt, with respect to any assignee  that becomes a Disqualified Institution after the applicable Trade Date (including as a result of the delivery of a notice  pursuant to the definition of “Disqualified Institution”), (x) such assignee shall not retroactively be disqualified from  becoming a Lender and (y) the execution by the Borrower of an Assignment and Assumption with respect to such  assignee will not by itself result in such assignee no longer being considered a Disqualified Institution. Any assignment  in violation of this clause (g)(i) shall not be void, but the other provisions of this clause (g) shall apply.                         (ii)   If any assignment is made to any Disqualified Institution without the Borrower’s  prior consent in violation of clause (i) above, or if any Person becomes a Disqualified Institution after the applicable                                                  123 

 

Trade Date, the Borrower may, at its sole expense and effort, upon notice to the applicable Disqualified Institution  and the Administrative Agent (A) prepay any Term Loans held by such Disqualified Institution by paying the lesser  of (x) the principal amount thereof and (y) the amount that such Disqualified Institution paid to acquire such Term  Loans, in each case plus accrued interest, accrued fees and all other amounts (other than principal amounts) payable  to it hereunder and under the other Loan Documents and/or (B) require such Disqualified Institution to assign and  delegate, without recourse (in accordance with and subject to the restrictions contained in this Section 11.6), all of its  interest, rights and obligations under this Agreement and related Loan Documents to an Eligible Assignee that shall  assume such obligations at the lesser of (x) the principal amount thereof and (y) the amount that such Disqualified  Institution paid to acquire such interests, rights and obligations, in each case plus accrued interest, accrued fees and  all other amounts (other than principal amounts) payable to it hereunder and the other Loan Documents; provided that  (i) the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 11.6(b),  (ii) such assignment does not conflict with Applicable Laws and (iii) in the case of clause (A), the Borrower shall not  use the proceeds from any Term Loans to prepay Term Loans held by Disqualified Institutions.                         (iii)  Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement,  Disqualified Institutions (A) will not (x) have the right to receive information, reports or other materials provided to  Lenders by the Borrower, the Administrative Agent or any other Lender, (y) attend or participate in meetings attended  by  the  Lenders  and  the  Administrative  Agent,  or  (z)  access  any  electronic  site  established  for  the  Lenders  or  confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders and  (B) (x) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the  purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking  any action) under this Agreement or any other Loan Document, each Disqualified Institution will be deemed to have  consented in the same proportion as the Lenders that are not Disqualified Institutions consented to such matter, and  (y) for purposes of voting on any plan of reorganization or plan of liquidation pursuant to any Debtor Relief Laws  (“Plan of Reorganization”), each Disqualified Institution party hereto hereby agrees (1) not to vote on such Plan of  Reorganization, (2) if such Disqualified Institution does vote on such Plan of Reorganization notwithstanding the  restriction in the foregoing clause (1), such vote will be deemed not to be in good faith and shall be “designated”  pursuant to Section 1126(e) of the Bankruptcy Code (or any similar provision in any other Debtor Relief Laws), and  such vote shall not be counted in determining whether the applicable class has accepted or rejected such Plan of  Reorganization in accordance with Section 1126(c) of the Bankruptcy Code (or any similar provision in any other  Debtor Relief Laws) and (3) not to contest any request by any party for a determination by the Bankruptcy Court (or  other applicable court of competent jurisdiction) effectuating the foregoing clause (2).                         (iv)   The Administrative Agent shall have the right, and the Borrower hereby expressly  authorizes the Administrative Agent, to (A) post the list of Disqualified Institutions provided by the Borrower and any  updates thereto from time to time (collectively, the “DQ List”) on the Platform, including that portion of the Platform  that is designated for “public side” Lenders or (B) provide the DQ List to each Lender requesting the same.  Without  limiting  the  foregoing,  the  Administrative  Agent  hereby  agrees  to  make  available  a  current  list  of  Disqualified  Institutions of the type identified under clauses (i) and (ii) of the definition of Disqualified Institution and, to the extent  identified  in  writing  to  the  Administrative  Agent  by  the  Borrower,  clause  (iii)  of  the  definition  of  Disqualified  Institution, upon written request for such list from any Lender (other than a Disqualified Institution).          11.7    Treatment  of  Certain  Information;  Confidentiality.   Each  of  the  Administrative  Agent  and  the  Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be  disclosed (a) to its Affiliates, its auditors and its Related Parties (it being understood that the Persons to whom such  disclosure  is  made  will  be  informed  of  the  confidential  nature  of  such  Information  and  instructed  to  keep  such  Information  confidential),  (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 11.7, to any assignee of or Participant in, or any prospective  assignee of or Participant in, any of its rights and obligations under this Agreement or any Eligible Assignee invited  to be a Lender pursuant to Section 2.12 or 2.14 (it being understood that the DQ List may be disclosed to any assignee  or prospective assignee, in reliance on this clause (f)), (g) on a confidential basis to (i) any rating agency in connection                                                  124 

 

with rating the Borrower or its Subsidiaries or the credit facilities provided hereunder or (ii) the CUSIP Service Bureau  or any similar agency in connection with the application, issuance, publishing and monitoring of CUSIP numbers of  other market identifiers with respect to the credit facilities provided hereunder, (h) with the consent of the Borrower  or (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section  11.7,  (y) becomes  available  to  the  Administrative  Agent,  any  Lender  or  any  of  their  respective  Affiliates  on  a  nonconfidential basis from a source other than the Borrower or (z) is independently discovered or developed by a  party hereto without utilizing any Information received from the Borrower or violating the terms of this Section 11.7.   In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement and general  information about this Agreement to market data collectors, similar service providers to the lending industry and  service  providers  to  the  Administrative  Agent  and  the  Lenders  in  connection  with  the  administration  of  this  Agreement, the other Loan Documents, and the Commitments.          For purposes of this Section 11.7, “Information” means all information received from the Borrower or any  Subsidiary relating to the Borrower or any Subsidiary or any of their respective businesses, and in each case, from  their Related Parties, other than any such information that is available to the Administrative Agent or any Lender on  a nonconfidential basis prior to disclosure by the Borrower or any Subsidiary; provided that, in the case of information  received from the Borrower or any Subsidiary after the date hereof, such information is clearly identified at the time  of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this  Section 11.7 shall be considered to have complied with its obligation to do so if such Person has exercised the same  degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential  information.          Each  of  the  Administrative  Agent  and  the  Lenders  acknowledges  that  (a)  the  Information  may  include  material non-public information concerning the Borrower or a Subsidiary, as the case may be, (b) it has developed  compliance procedures regarding the use of material non-public information and (c) it will handle such material non- public information in accordance with Applicable Law, including United States Federal and state securities Laws.          11.8    Right of Setoff.  If an Event of Default shall have occurred and be continuing, each Lender and each  of their respective Affiliates is hereby authorized at any time and from time to time, after obtaining the prior written  consent of the Administrative Agent, to the fullest extent permitted by Applicable Law, to set off and apply any and  all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other  obligations (in whatever currency) at any time owing by such Lender or any such Affiliate to or for the credit or the  account of the Borrower or any other Loan Party against any and all of the Obligations of the Borrower or such Loan  Party now or hereafter existing under this Agreement or any other Loan Document to such Lender, irrespective of  whether or not such Lender shall have made any demand under this Agreement or any other Loan Document and  although such Obligations of the Borrower or such Loan Party may be contingent or unmatured or are owed to a  branch or office or Affiliate of such Lender different from the branch, office or Affiliate holding such deposit or  obligated on such indebtedness; provided, that in the event that any Defaulting Lender shall exercise any such right  of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application  in accordance with the provisions of Section 2.15 and, pending such payment, shall be segregated by such Defaulting  Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders, and  (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable  detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each  Lender and their respective Affiliates under this Section 11.8 are in addition to other rights and remedies (including  other rights of setoff) that such Lender, or their respective Affiliates, may have. Each Lender agrees to notify the  Borrower and the Administrative 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.           11.9    Interest  Rate  Limitation.   Notwithstanding  anything  to  the  contrary  contained  in  any  Loan  Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of  non-usurious interest permitted by Applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender  shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal  of the Term Loans or, if it exceeds such unpaid principal, refunded to the Borrower.  In determining whether the  interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate,  such Person may, to the extent permitted by Applicable Law, (a) characterize any payment that is not principal as an  expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c)                                                  125 

 

amortize,  prorate,  allocate,  and  spread  in  equal  or  unequal  parts  the  total  amount  of  interest  throughout  the  contemplated term of the Obligations hereunder.          11.10   Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by  different parties hereto in different counterparts), each of which shall constitute an original, but all of which when  taken together shall constitute a single contract.  This Agreement and the other Loan Documents and any separate  letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the  parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral  or written, relating to the subject matter hereof.  Except as provided in Section 4.1, this Agreement shall become  effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have  received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery  of an executed counterpart of a signature page of this Agreement by  facsimile or other electronic imaging means (e.g.  “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Agreement.          11.11   Survival of Representations and Warranties.  All representations and warranties made hereunder  and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or  therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been  or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the  Administrative Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any  Lender may have had notice or knowledge of any Default at the time of making any Term Loan hereunder, and shall  continue in full force and effect as long as any Term Loan or any other Obligation hereunder shall remain unpaid or  unsatisfied.          11.12   Severability.  If any provision of this Agreement or the other Loan Documents is held to be illegal,  invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement  and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good  faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect  of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a  provision  in  a  particular  jurisdiction  shall  not  invalidate  or  render  unenforceable  such  provision  in  any  other  jurisdiction.  Without limiting the foregoing provisions of this Section 11.12, if and to the extent that the enforceability  of  any  provisions  in  this  Agreement  relating  to  Defaulting  Lenders  shall  be  limited  by  Debtor  Relief  Laws,  as  determined in good faith by the Administrative Agent, then such provisions shall be deemed to be in effect only to the  extent not so limited.          11.13   Replacement of Lenders.  If the Borrower is entitled to replace a Lender pursuant to the provisions  of Section 3.6, or if any Lender is a Defaulting Lender or a Non-Consenting Lender or if any other circumstance exists  hereunder that gives the Borrower the right to replace a Lender as a party hereto, then the Borrower may, at its sole  expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and  delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by,  Section 11.6), all of its interests, rights (other than its existing rights to payments pursuant to Sections 3.1 and 3.4)  and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such  obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that:                  (a)    the  Borrower  shall  have  paid  to  the  Administrative  Agent  the  assignment  fee  (if  any)  specified in Section 11.6(b);                  (b)    such Lender shall have received payment of an amount equal to the outstanding principal  of its Term Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the  other Loan Documents (including any amounts under Section 3.5) from the assignee (to the extent of such outstanding  principal and accrued interest and fees) or the Borrower (in the case of all other amounts);                  (c)    in the case of any such assignment resulting from a claim for compensation under Section  3.4  or  payments  required  to be  made  pursuant  to  Section 3.1,  such  assignment  will  result  in  a  reduction  in  such  compensation or payments thereafter;                  (d)    such assignment does not conflict with Applicable Laws; and                                                  126 

 

               (e)    in the case of an assignment resulting from a Lender becoming a Non-Consenting Lender,  the applicable assignee shall have consented to the applicable amendment, waiver or consent.          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  Borrower  to  require  such  assignment  and  delegation cease to apply.          Each party hereto agrees that (a) an assignment required pursuant to this Section 11.13 may be effected  pursuant to an Assignment and Assumption executed by the Borrower, the Administrative Agent and the assignee and  (b) the Lender required to make such assignment need not be a party thereto in order for such assignment to be effective  and shall be deemed to have consented to and be bound by the terms thereof; provided that, following the effectiveness  of any such assignment, the other parties to such assignment agree to execute and deliver such documents necessary  to  evidence  such  assignment  as  reasonably  requested  by  the  applicable  Lender;  provided,  further  that  any  such  documents shall be without recourse to or warranty by the parties thereto.          11.14   Governing  Law;  Jurisdiction;  Etc.   THIS  AGREEMENT  AND  THE  OTHER  LOAN  DOCUMENTS  AND  ANY  CLAIMS,  CONTROVERSY,  DISPUTE  OR  CAUSE  OF  ACTION  (WHETHER  IN  CONTRACT  OR  TORT  OR  OTHERWISE)  BASED  UPON,  ARISING  OUT  OF  OR  RELATING  TO  THIS  AGREEMENT OR ANY OTHER LOAN DOCUMENT (EXCEPT, AS TO ANY OTHER LOAN DOCUMENT, AS  EXPRESSLY  SET  FORTH  THEREIN)  AND  THE  TRANSACTIONS  CONTEMPLATED  HEREBY  AND  THEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE  STATE OF NEW YORK.                  (a)    SUBMISSION TO JURISDICTION.  THE BORROWER AND EACH OTHER LOAN  PARTY  IRREVOCABLY  AND  UNCONDITIONALLY  AGREES  THAT  IT  WILL  NOT  COMMENCE  ANY  ACTION,  LITIGATION  OR  PROCEEDING  OF  ANY  KIND  OR  DESCRIPTION,  WHETHER  IN  LAW  OR  EQUITY,  WHETHER  IN  CONTRACT  OR  IN  TORT  OR  OTHERWISE,  AGAINST  THE  ADMINISTRATIVE  AGENT, ANY LENDER OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO  THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO  OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN  NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT  OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES  HERETO  IRREVOCABLY  AND  UNCONDITIONALLY  SUBMITS  TO  THE  JURISDICTION  OF  SUCH  COURTS  AND  AGREES  THAT  ALL  CLAIMS  IN  RESPECT  OF  ANY  SUCH  ACTION,  LITIGATION  OR  PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE  FULLEST  EXTENT  PERMITTED  BY  APPLICABLE  LAW,  IN  SUCH  FEDERAL  COURT.  EACH  OF  THE  PARTIES  HERETO  AGREES  THAT  A  FINAL  JUDGMENT  IN  ANY  SUCH  ACTION,  LITIGATION  OR  PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT  ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT  OR  IN  ANY  OTHER  LOAN  DOCUMENT  SHALL  AFFECT  ANY  RIGHT  THAT  THE  ADMINISTRATIVE  AGENT  OR  ANY  LENDER  MAY  OTHERWISE  HAVE  TO  BRING  ANY  ACTION  OR  PROCEEDING  RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR  ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.                  (b)    WAIVER  OF  VENUE.   THE  BORROWER  AND  EACH  OTHER  LOAN  PARTY  IRREVOCABLY  AND  UNCONDITIONALLY  WAIVES,  TO  THE  FULLEST  EXTENT  PERMITTED  BY  APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF  VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR  ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN CLAUSE (B) OF THIS SECTION 11.14.   EACH  OF  THE  PARTIES  HERETO  HEREBY  IRREVOCABLY  WAIVES,  TO  THE  FULLEST  EXTENT  PERMITTED  BY  APPLICABLE  LAW,  THE  DEFENSE  OF  AN  INCONVENIENT  FORUM  TO  THE  MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.                  (c)    SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO  SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.2.  NOTHING IN THIS                                                   127 

 

AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER  MANNER PERMITTED BY APPLICABLE LAW.          11.15   Waiver of Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE  FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY  IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS  AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY  OR  THEREBY  (WHETHER  BASED  ON  CONTRACT,  TORT  OR  ANY  OTHER  THEORY).   EACH  PARTY  HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON  HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE  EVENT  OF  LITIGATION,  SEEK  TO  ENFORCE  THE  FOREGOING  WAIVER  AND  (B) ACKNOWLEDGES  THAT  IT  AND  THE  OTHER  PARTIES  HERETO  HAVE  BEEN  INDUCED  TO  ENTER  INTO  THIS  AGREEMENT  AND  THE  OTHER  LOAN  DOCUMENTS  BY,  AMONG  OTHER  THINGS,  THE  MUTUAL  WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.15.          11.16   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 Borrower and each other Loan Party acknowledges and agrees that: (i) (A) the arranging  and other services regarding this Agreement provided by the Administrative Agent, the Arranger and the Lenders are  arm’s-length commercial transactions between the Borrower and its respective Affiliates, on the one hand, and the  Administrative Agent, the Arranger and the Lenders, on the other hand, (B) each of the Borrower and the other Loan  Parties has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate,  and (C) each of the Borrower and the other Loan Parties 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  Administrative Agent, the Arranger and the Lenders 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 Borrower, the other Loan Parties or any of their respective Affiliates, or any other Person and (B)  neither the Administrative Agent, the Arranger nor any Lender has any obligation to the 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 Administrative Agent, the Arranger, the  Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that  differ from those of the Borrower, the other Loan Parties and their respective Affiliates, and neither the Administrative  Agent, the Arranger nor any Lender has any obligation to disclose any of such interests to the Borrower, any of other  Loan Parties or any of their respective Affiliates. To the fullest extent permitted by law, each of the Borrower and  each of the other Loan Parties hereby waives and releases any claims that it may have against the Administrative  Agent, the Arranger 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.           11.17   Electronic  Execution  of  Assignments  and  Certain  Other  Documents.   The  words  “execution,”  “execute”, “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 Loan Notices, 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 Administrative Agent, 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;  provided  that  notwithstanding anything contained herein to the contrary the Administrative Agent is under no obligation to agree to  accept electronic signatures in any form or in any format unless expressly agreed to by the Administrative Agent  pursuant to procedures approved by it.           11.18   USA  PATRIOT  Act.   Each  Lender  that  is  subject  to  the  Act  (as  hereinafter  defined)  and  the  Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the 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  the  Borrower  and  each  other  Loan  Party,  which                                                  128 

 

information includes the name and address of the Borrower and each other Loan Party and other information that will  allow such Lender or the Administrative Agent, as applicable, to identify the Borrower and each other Loan Party in  accordance  with  the  Act.   The  Borrower  and  each  other  Loan  Party  shall,  promptly  following  a  request  by  the  Administrative Agent or any Lender, provide all documentation and other information that the Administrative Agent  or such Lender requests in order to comply with its ongoing obligations under applicable “know your customer” and  anti-money laundering rules and regulations, including the Act.           11.19   ENTIRE  AGREEMENT.   THIS  AGREEMENT  AND  THE  OTHER  LOAN  DOCUMENTS  REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED  BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE  PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.          11.20   Acknowledgment  and  Consent  to  Bail-In  of  Affected  Financial  Institutions.   Notwithstanding  anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any  such parties, each party hereto acknowledges that any liability of any Lender 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  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 any applicable Resolution Authority.          11.21   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 11.21, the following terms have the following meanings:                                                   129 

 

       “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) 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).          [Remainder of Page Left Blank]                                    130 

 

               IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of  the date first written above.                                               BORROWER                                                 U.S. CONCRETE, INC., a Delaware corporation                                                    by                                                        /s/ Paul M. Jolas                                                       Name:  Paul M. Jolas                                                        Title:  Senior Vice President, General                                                                 Counsel, and Secretary                             [Signature Page to Credit and Guaranty Agreement] 

 

               GUARANTORS                   ALBERTA INVESTMENTS, INC.                  ALLIANCE HAULERS, INC.                  AMERICAN CONCRETE PRODUCTS, INC.                  ATLAS REDI-MIX, LLC                  ATLAS-TUCK CONCRETE, INC.                  BEALL CONCRETE ENTERPRISES, LLC                  BODE CONCRETE LLC                  BODE GRAVEL CO.                  BRECKENRIDGE READY MIX, INC.                  CENTRAL CONCRETE SUPPLY CO., INC.                  COLONIAL CONCRETE, CO.                  CUSTOM-CRETE, LLC                  CUSTOM-CRETE REDI-MIX, LLC                  EASTERN CONCRETE MATERIALS, INC.                  HAMBURG QUARRY LIMITED LIABILITY                  COMPANY                  INGRAM CONCRETE, LLC                  KURTZ GRAVEL COMPANY                  LOCAL CONCRETE SUPPLY & EQUIPMENT,                  LLC                  MASTER MIX, LLC                  MASTER MIX CONCRETE, LLC                  NEW YORK SAND & STONE, LLC                  NYC CONCRETE MATERIALS, LLC                  PEBBLE LANE ASSOCIATES, LLC                  PREMCO ORGANIZATION, INC.                  REDI-MIX GP, LLC                  REDI-MIX, LLC                  SIERRA PRECAST, INC.                  SMITH PRE-CAST, INC.                  SUPERIOR CONCRETE MATERIALS, INC.                  TITAN CONCRETE INDUSTRIES, INC.                  USC ATLANTIC, INC.                   USC-JENNA, LLC                   USC MANAGEMENT CO., LLC                  USC-NYCON, LLC                   USC PAYROLL, INC.                   U.S. CONCRETE ON-SITE, INC.                   USC-NEW YORK PAYROLL, LLC                   USC TECHNOLOGIES, INC.                  VALENTE EQUIPMENT LEASING CORP.                   WMC IP, INC.                   A.B. OF SAYVILLE, LTD.                   BSLH REALTY CORP.                   CORAM MATERIALS CORP.                   MILLER PLACE DEVELOPMENT LLC                   MLFF REALTY CORP.    [Signature Page to Credit and Guaranty Agreement] 

 

                  by                            /s/ Paul M. Jolas                       Name: Paul M. Jolas                       Title:  Vice President and Secretary                 YARDARM, LLC                 POLARIS AGGREGATES INC.                   by                            /s/ Paul M. Jolas                       Name: Paul M. Jolas                       Title:   Secretary                 REDI-MIX CONCRETE, L.P.,                    by Redi-Mix GP, LLC, its general partner                     by                            /s/ Paul M. Jolas                       Name: Paul M. Jolas                       Title:   Vice President and Secretary   [Signature Page to Credit and Guaranty Agreement] 

 

               GUARANTORS                 NORCAL MATERIALS, INC.                   by                            /s/ Mark B. Peabody                       Name: Mark B. Peabody                       Title: President                  USC-Kings, LLC                 WMC OP, LLC                   by                            /s/ Mark B. Peabody                       Name: Mark B. Peabody                       Title: Vice President and Secretary                  OUTRIGGER, LLC                   by                            /s/ Mark B. Peabody                       Name: Mark B. Peabody                       Title: Secretary    [Signature Page to Credit and Guaranty Agreement] 

 

               GUARANTORS                 160 EAST 22ND TERMINAL LLC                  AGGREGATE & CONCRETE TESTING, LLC                  FERRARA BROS., LLC                  FERRARA WEST LLC                  RIGHT AWAY REDY MIX INCORPORATED                 ROCK TRANSPORT, INC.                   by                            /s/ Ronnie Pruitt                       Name: Ronnie Pruitt                       Title: President                  SUPERIOR CONCRETE MATERIALS, INC.                   by                            /s/ Ronnie Pruitt                       Name: Ronnie Pruitt                       Title: Vice President    [Signature Page to Credit and Guaranty Agreement] 

 

                  BANK OF AMERICA, N.A., individually, and as the                    Administrative Agent and Arranger                     By:                            /s/ Mollie S. Camp                          Name: Mollie S. Camp                          Title: Vice President                     BOFA SECURITIES, INC., as Arranger                     By:                            /s/ Mark Kushemba                          Name: Mark Kushemba                          Title: Managing Director    [Signature Page to Credit and Guaranty Agreement] 

 

                       SCHEDULE 1.1                     LENDERS’ COMMITMENTS          Lender                      Initial Term Loan Commitment  Bank of America, N.A.                    $180,000,000.00

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